if you run chanos' hypothetical scenario, four time the revenue, then you use the annualized margin ofu come up with an operating income of more than 300 million again, this is drawn out version of what would happen if they made rev new four times what it currently is but of course, chanos is standing by his map. and after the last segment he tweeted that draft kings has lost 1.48 billion in the last month. jason robins is also standing by his numbers. he said draft kings will be profitable in each state where it operates two to three years after it launches in that state and it alreadyhappening in new jersey so it looks like this would be a virtue >> i sue at the back and forth volleying that you referenced. contessa, thank you very much. >> if you share jim chanelos' view, the negative one on draft kings, you could go ahead and short the stock here how to in the call to action >> first of all, i have to give a lot of credit to jim chanos. he's one of the most well known short sellers. and selling stock short over the long term is a challenging thing to do. and a couple of reasons. nu

if you run chanos' hypothetical scenario, so four times the revenue, marketing spend gets reduced to annualized margin of 40%, there you come up with an operating income of more than $300 million again, this is the drawn out version of what would happen if they made revenue four times what it currently is but of course, chanos is standing by his math and his short. and after the last segment he tweeted that draft kings has lost 1.48 billion in the last month. i totally understand it. jason robins is also standing by his numbers. and his outlook. he said draft kings will be profitable in each state where it operates two to three years after it launches in that state and he said it's already happened in new jersey so in this situation, dom, it looks like patience would be a v virtue >> i also see the back and forth volleying that you referenced. contessa, thank you very much. >> if you share jim chanelos' view, the negative one on draft kings, you could always go ahead and short the stock. or you can use the power of options to express a bearish view without the risk of losing your shi

jason robbins was not pleased with jim chanos' math and told me all about it in a "squawk box" exclusiveaid it himself it's totally insane, the math makes no sense obviously, if we quadruple profit, gross profit and cut marketing to 10% of revenue and kept overhead flat we would not be losing $200 million a quarter and we are not trading anywhere near 30 times revenue, it's less than half of that. >> chanos responded to that on twitter, pulling out the third quarter earnings release let me show it to you. the problem is the third quarter and there's the tweet, the third quarter is the weakest seasonally with a margin of 20% and that's the basis of chanos' math if you run chanos' hypothetical four-times revenue marketing spend close to 10%, but use an annualized margin of 40% look at the right-hand column now you would end up with 300 million. chanos pointed out to me he cut the marketing spend to 10% currently it's at 143% jason robbins reiterated he anticipates the state by state profitability will happen in two to three years in each state he's in it the long haul to a appease the shor

and chanos is very smart, knows his numbers.in this industry is so substantial. my only issue is, there's a lot of competition everybody is going after this. so it's -- we'll have to see, but they certainly have kind of first mover advantage, if you will, so we'll have to see if they can execute >> do you own that stock or any of the competitors, fanduel or any of them? >> i don't the closest thing i own is wynn, and they -- wynn bets, but i don't. but quite frankly, i missed the group. that's why i like what wynn is doing. at least they're entering the marketplace, too, but it's very competitive. we have to keep our eye out for that >> stephanie, great to see you, and i love your christmas tree it's beautiful >> thank you >> we'll see you soon. >> i need a full shot. i wasn't looking we got ours. i can't believe how much it drinks i fill it up every day tons of water. that's a good sign, i think. >> coming up, dr. scott gottlieb gives us the latest on the spread of the omicron variant and the push for vaccination >> plus, the n

jim chanos calls that collapse the biggest of his career. joining us is vanity fair beth me mclean and co-wrote the book "the smartest guys in the room." the amazing rise and scandalous fall of enron. it's good to have you both with us thanks for being here today. >> hi, guys. >> jim, i'll start with you, in looking at the research and looking back at history, you were first turned on to the enron story, i think, in october of 2000 because of an article that was written in the texas version of "the wall street journal" about accounting practices at large energy trading firms, is that correct that's correct, it was a piece in the texas journal by reporter john weil who many years later came to work for us. it talked about enron getting approval from the sec for so-called mark to market which was much more appropriately called marked to model for the energy derivative business and what that led was aggressive accounting on their derivatives book in lots of areas, but that was just sort of the opening chapter and what got us to open a file in s

proud to help them help you everyday. >>> a reminder tomorrow our cnbc "halftime" exclusive, jim chanosiversary of the enron situation. we are looking forward to it it will be a big day our scott cohen will be there today. what do you have coming up >> i have a box of peppermint bark because you know today is national peppermint bark day >> i love peppermint bark. >> william & sonoma, the stock is now down from 220 to 192, and it had an amazing quarter just two weeks ago. buy williams and sonoma. >> tell laura thanks for the look but i didn't get any. >> tonight unity software. >> unity >> it has your name on it. >> yeah, you and this is on the omni verse, metaverse. it is very, very big i don't know if you know john. john is the man that can put cameras on every single person in the nfl and you want to do your fantasy, you get your guy >> that's cool steph, looking forward to tonight. steph, bath and body works is a new buy. >> ooh >> takes new buy i think it positions well for the holiday and 2022 they have the products people want, new extensions in terms of products and 90% will be

tonight, e thc cdis maki nga r majo chano ge tits quartianne s.rule the itswch comes idam a ikspe in cases rehe in focalirn iaand nation. wide the stte positivity rate risen to 5.4%. that is2.8% jump in justth e lastee wk. ghtonit, can pix --kpix y bett yu e spokto . many >> tonight, the cdc shortened the mmrecoend detime r foisoln atio after geg ttin vicod-19fr om 10 ysda to 5 as nglo as peoe pldon't veha symptoms. >>it is odgo things and bad gsthin fr om going fr0-om 15 days of isatolion. gein nel rait is a odgo g.thin we can t geit ready as fast as ibpossle the secothnd ing is, u yohave to be arweing that ma. the remain5 ing days and not just any mask. a lyreal good mask. >> those that are exposed to cod- 19but boosted will no longer ne ed to quaran. tine ucsfdoorct added based on early tada from peeuro about half oofmioncr cas are asymatptomic. >> it is spreading fa. st i inthk that youget a sense of wh atit looks li keto be a llwe ccinated city that is l stilbeg inrecaful. a lot of masks t outh ere. and the ernumb of s casein the city has go from 40 a day to a bout0 35 a day ju

. >> jim chanos trash talked the amount of money spent on markets.r draftkings ceo said chanos forgot how to do math. >> he said it himself. totally insane the math makes no sense. quadrupling marketing and cut profit and kept overhead flat we would not lose $200 million a quarter and not trading close to 30 times revenue. >> responded on twitter. the premise rests on the third quarter results. the third quarter is the weakest seasonally a margin of 20% and running the hypothetical four times market, but then use analyzed margin of 40% look on the right-hand side there's operating income $300 million. then tweeted to me pointing out look in my scenario he slashes the market spend to 10% but right now it's 143%. jason robbins stood by the number and the outlook saying they will be profitable in each state where it operating in two to three years after being launched in the state but took it on the chin today. >> thank you i give credit for the response not everybody does to the short seller investors do we know how long he's been short? a stock cut in

after its ceo fires back at atort seller jim chanos. th's not the only gaming stock falling today. right back. every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities. >>> welcome back casino stocks lower today, getting hit hard over the last month. contessa brewer joins me now with what's behind that. >> john, good to see you sports betting stocks are getting punished today let's show the chart of penn's stock. it was down 8% -- i have to be hobbs, i need my glasses penn is down 5% draft kings is down by more than that let's look at the same stocks over the last month. down 20 to 40% a couple more names slamme