one of the cheapest large companies in the world trading at four times the firm's estimated 2022 ebitdaut it is important the note third point is not yet looking to nominate directors or overhaul management. there is no proxy fight outlined at this point in time. we reached out for comment. >> fascinating we could be entering an era of this kind of pressure on these companies. one of the questions investors have, if you separate the businesses you need the profits from the legacy business to fund the investments in the newer one, the future. >> yes. >> what happens if you split them up? >> that's an interesting point addresses this in the letter where he talks about how some of these higher growth renewables, the lng business, those currently represent about 40% of ebitda, but the entirety of the company's enterprise value at this point in time meaning investors are getting the remaining 60% more legacy businesses for free at the current share price. he believes if you separate that it could yield more shareholder value on both sides. but when you separate them they have different growt

even a smaller, faster growing chain like wing stop trades at 58 times ebitda.s than half what people are willing to pay for the dutch bros my chief concern is rather than being the next starbucks, it can be the next shake shack. that's another chain i love to go through the stock jumped to just under 46 again in the first day. within a few months it reached the 90s but a year later shake shack sunk to the 30s. if you bought shake shack down there, you have done well for yourself but you had to wait for the right moment shake shack did not have the kind ofgrowth ahead. nothing like the bros. b bottom line, it has super hyped ipo and the stock explodes higher because people like the product so much, you got to keep it on your shoulder. i think you start buying this one if it drops down to 40, some sort of crazy sell off i wouldn't be surprised if it gets there this is one of the rare times that i have to tell you, i want you in this stock. i just don't want you in the stock at this price. let's go to tyler in massachusetts. tyler. >> caller: hey jim i have a quic

, i don't know what you'll say for 2024 for ebitda, it sounds like plug power doesn't need any money,at way >> jim, with the buildout of our green hydrogen network, we'll be well, well-positioned from a financial point of view. >> what is going on with amazon? we know that they want 100,000 i met with the director of sustainability amazon is the leader right now in driving everything in our country. what else can you do, what else can plug power do with amazon? >> well, i can tell you we're looking at large scale stationary power products using fuel cells we're engaged in ground support equipment for their rollout in airports we're looking at drone activities so there's a lot going on with amazon, jim. as well as on-road vehicles, i should not forget what we're doing, what we're positioning with renault >> that's good, that's what i want, because i think, you know, that's the future. on-road is too inexpensive, you have to make it work we're looking forward to thursday's meeting we appreciate the heads up on what you're going to talk about. i get a sense this is plug power getting bac

, or adjusted ebitda is usually a pretty good metric to use.sted earnings per share growth was up 34%, and as a result, the number that we compared to analysts estimates was quite a bit higher than expectations. i saw it a little earlier. you guys are looking at this as well what was it? 80 -- 80 cents versus -- >> 87 cents versus 75 the estimate. >> and then, you know, the pandemic and the emergence from the pandemic, comcast is an interesting one to look at because of that, because of the theme parks. had almost record operations, even though people aren't coming from europe yet, really, and that was mostly orlando. studio saw revenue increase of almost 27% to 2.4 billion dollars. that was by "fast & furious 9" and "boss baby" family business. >> that i know our household. "boss baby" is big in our house. >> the company, when people look for a fly in the ointment they always look at video losses, which -- and the company always points out we've said again and again, we do not chase, or comcast is not chasing discounted video customers, and th

invesco six and a half times ebitda has $130 billion market cap.llion of aum. my point is there's a lot of room to continue to scale invesco and create a ton of value. >> and what about these reports of state street perhaps being in the mix in terms of an invesco partner in some way? >> i'm on the board of invesco and can't comment on market rumors but i will say we believe there's going to be consolidation, and it makes sense, david, because you need scale to compete long term you need to invest in people you need to invest in new products you need to invest in technology and distribution and solutions the channel partners, the morgan stanleys of the world, they want fewer partners who can do more for them so you're going to see, besides black rock, a handful of scaled players. and our job is to help invesco become one of those. >> in the time that we have left, i'd like to spend it on esg because you talked about it inside, and you've said, and i'm going to quote you that it is -- >> i want a footnote >> i've already quoted you once actually on a

show and they're pretty steep i mean, they've got to get to 70% occupancy to break even on adjusted ebitda% as of the end of the last quarter. so, they're also losing still billions and billions of dollars. so there's still a story after this moment, julia it will be just as interesting going forward. >> fascinating to watch but perhaps more of a real estate company than actually a tech company. >>> now shifting gears over to a tech company, facebook independent oversight board releasing its first transparency report today one interesting line in there, the board saying the company was, quote, not fully forthcoming about its cross check system that's its moderation system that shielded high profile users like donald trump from standard procedures it uses to police the platform it called that omission, quote, not acceptable and added in many of the decisions covered in today's reports, a clear theme has emerged. facebook isn't being clear with the people who use its platforms. we consistently seen users left guessing about why facebook removed their content. facebook saying in response to t

the enterprise value to ebitda is like a 3 and change that's a really, really low number for them.s a low number for anyone i know the macro is, oh, nike's going direct to consumer and that's going to hurt foot locker and all the other precissures, amazon and whoever else. that is all true that's why it trades at the valuation it does. when you back out the debt, because they have this -- there's a new accounting rule a couple of years ago. all your leases you have to put on as debt on your balance sheet. back that all off, as you should, and they've got a lot of cash the enterprise value is very, very cheap the last thing is goat, and i'm sure you're family with, besides being greatest of all time, it's a shoe business. they own a significant stake there was a new round of financing in june and july that was much higher than their cost. i think we'll see an ipo or a spac or something on goat at a much higher valuation than that. it's a trade, not investment but i really like it >> it's such a convincing argument, nadine, but at the same time, you know, it is subject to the supply

>> it was our biggest brand when i got here three years ago and had a 2% ebitda market it made no moneyt had been over extended we were in pizza bites and chicken nuggets and diapers and wipes. we consolidated to the core business we started adding marketing dollars and test been up over 20% now we're investing again. it's really good poetser child of what the strategy was intended to do and we're going to extend that to a lot of other brands i like baby food and snacks that don't make me fat and i like plant based meat that had been a a category one of 500 you emphasized this is going to work. it's a double digit growth category very well positioned there it's growing like crazy and we're very well positioned they had something made of oats and be like a yogurt in reality, there's method to the madness as you got it now. non-dairy is gigantic and only one company, oatly, is doing it right. >> we're only really penetrated in a meaningful way in north western europe we were focused on transforming and resurrecting the north america business >> they are delicious. you didn't have any mone

tom: they are, but the ebitda margin on dick's sporting goods's half of the big money makers in televisionck's sporting goods half of the big money makers. bed, bath & beyond, of course they got hammered. jonathan: i don't know of course they got hammered, but they were down 20%. tom: that's not the definition of cratered. jonathan: what is the definition, 25 percent, 30%? tom: 2%. jonathan: up 1/10 of 1% on the s&p. ♪ jonathan: remind me not to get involved in major league baseball banter. i am told the red sox are tied with the mariners, not the toronto blue jays. they are in the other corner. i appreciate that. from new york city, good morning. the price action, posited by more than 1/10 of 1%. -- positive by more than 1/10 of 1%. the russell up about 1/10. morgan stanley repeated yesterday, corporate america has some explaining to do when it comes to margins. earnings season will be fascinating, q3 as we look ahead to q4. credit suisse and andrew garth with a fantastic note, talking about the only major sector to outperform when inflation expectations rise and pmi's fall, energy. look

they will get up to $13 billion and what is so important in the gloom as they dropped down to a 33% ebitda they are persistently minting money and they go with a $4 billion buyback. we will see tons of this in the coming days, nothing else to do. speaking of gloom, that means washington. andy blocker joins us now. i love what you say, we've seen this movie before. i'm not sure i believe it. is the negotiation or compromise we see this movie before? andy: generally speaking, yes, but in specific, it's uncertain. we get the government open, hooray. we are going to be open through december 3. this bipartisan bill, there is a tension between the moderates and liberals in the democratic party and the question is, will they hang together or separately? tom: give us the historic precedent, what do they do? i don't believe there's any negotiation going on. they are just getting the deadlines and away we go. do you perceive true negotiation in a fractious democratic party? andy: i do. this was part of the sausage making process of washington that has not changed and political interests are aligned.

look out at the ratios, and as joe tries to get out to q4, he gets out to a 16% gross margin for ebitda at amazon. jonathan: here's one concern, and it comes from baird. the supply chain disruption, can the supply meet demand? what does that mean for an e-commerce giant like amazon? that is the concern coming into a name that hasn't done much this year compared to the likes of alphabet, up 50%, 60%. amazon has been a struggle. tom: it is amazing here how the conversation i am having with jon is removed from the wide set of other issues this nation faces. it is almost like corporate struggle in the pandemic is discrete and separate from every thing else. lisa: you mean the k-shaped recovery? tom: well said. where did that go? lisa: you are still seeing it in pockets. my issue is we still see some of the fiscal support, some of the checks we sent out to individuals in the united states, sort of come into the spending. you are seeing people spend down their savings a bit more, which is what people were looking for. what happens next? people are talking about the fiscal drag that will event

preliminary results for the third quarter look even better probably looking at 55% revenue, and 80% ebitdaich is nuts. put it altogether and there is a lot to look with this one. it is the only one with a truly global presence when chips are in short supply and the world wants to diversify everything in southeast asia as a matter of national security. they make full featured chips when other foundries don't want to go there. too worried about margins. they are off den nated as dumb chips, cost a dollar and change instead of the hyperscale computing chips, those are really what's in demand. you can get it at the highest end for like the cloud a dumb chip can become smart they are tied to some of the best secular trends on earth trends, by the way, secular only post pandemic. on top of that, after investing heavily in new capacity the last decade, global foundries is making a fortune they are in the process of selling one of their upstate new york facilities to onsemi. they plan to add more capacity in singapore, germany and new york, which means of earnings won't look great in 2022 that sai

but they're way, way above consensus on bookings and ebitda in 2022.s a big call today from callen >> it's a big call the question is what happens when people want to start traveling to places when maybe there are a lot more hotels than airbnbs. you think about the return of the hotel business obviously business travel is a whole other question and that is something that airbnb hasn't participated in. you have to think, user behavior has changed during the pandemic. a lot of people discovered airbnb which some of that business to shift back to the more traditional hotel market. i think if you look at the two companies, they have both benefited a huge amount from the digital transformation that's accelerated during the pandemic. but the question i would ask, how big are the competitive mode, different types of product, different modes >> it seems airbnb was well positioned heading into this some of that home cooked meal and experimental stuff that they were building into their travel offerings, that seems very much in line with what people want coming o

much, much too competitive without a clear path to generating return so if you look at the forecast, ebitda is going to be flat for these companies for the next few years so i think they're a bad investment period, end of story it was a mistake lost money i don't want to compound it by staying there, buying more >> all right i like putting you on the hot seat you sold ericson why did you do that? >> i did ericsson, china was a big market for it and when the swiss came out and said we're not taking hu wai and we want you to get out of here, they're revenues went down to nearly zero from china the stock's done nothing i made about 50% in the shares it's done nothing over the last six months or more i'm looking around saying, okay, where am i going to miss opportunity? if i sell it, it was one of them it's a fine company. it's been restructured i'll be back given my market position, i just want to get rid of it. z >> speak ing of china, you shorted baba and pdd what's up? >> actually, i pretty much stayed in baba their earnings estimates, people forget about this. they've declined nearly 50% a

. >> canadian producers, i get sales, i get ebitda, and i get savings. u.s., i just get an option like i don't get any benefit on my top line or my bottom line from med men today >> the u.s. market is forecast to grow to $30 billion in 2022 the canadian market, just about $5 billion obviously the u.s. market continues to be the holy grail, the ultimate goal, whatever you want to call it for the canadian cannabis producers but simon and other canadian producers have all said for now they are focusing on the canadian market and trying to develop packaged goods with cannabis that they can hope to bring to the u.s. market later. >> the consumer packaged goods would be the likes of what, beverages? edibles? what >> you know, all types of things beverages is one logical think drinkable cannabis simon talked a lot about having san business infused goods on the shelves of walmart or a target cookies, bread, all types of things, tyler. i don't think there is a limit to what people who want to use cannabis would put it in i think companies are trying to figure out what

. >> i like their international business and their digital strategy can they do ebitda i think they can i am looking forwarded to the call. >> do you think this is in general going to be the kind of earnings season that tells people this has to be a stock picker's market the better competitors versus the weaker links? that kind of thing or is it more about row nation and the macro variable like bond yields and how the cpi does and that kind of thing >> it has been such a rotation year the first part of the year was value into growth. then we got a growth scare with delta. mid part of the year -- excuse me we had into value from growth in the first quarter. then you had into growth in the second and third quarters. now you are seeing a rotation again. i think it's because the economy is on the mend and people feel better rates are going higher that usually favors value overgrowth. but to your question, i still do think it is a stock picker's market you are going to have the haves and the have nots. look for companies that have pricing power. that's going to be the most important thing so

and that has raised eyebrows because it is a core cost of the business, but remember that adjusted ebitda method has had a mixed response for ride sharing companies both uber and liyft. lyft trading near its ipo price. airbnb and doordash and this is a measure of profitability and they've seen their valuations soar as public companies john, julia, carl, rent the runway is an interesting indication julia, you and i were trading e-mails about the consignment model and that wasn't loved by public market investors either >> well, i think what's so important to acknowledge here is that tech companies are -- they hate having inventory. investors hate it when there's any inventory depreciates, but what rent the runway has been doing is acknowledging that they want to move from being relying on owning inventory and they've been shifting this model where they have brands that give them access to clothes without them paying any up front or any meaningful up-front fees and then they share in the revenues and they've been effectively eliminating that inventory ownership for a bigger piece of their bu

different, but the numbers have come down the valuations had come down to 20 times earnings, ten times ebitda, and i think they can grow at their ad business 20% on a sustainable basis. look, the quarter was mixed. i'm going to take the positive side, 35% year over year revenue growth u.s. and canada had used that which was a surprise, and i think the new disclosures for their breaking out their traditional businesses to, you know, some of the new earn nir ti initiatives in particular and i think that will get them a better rate, a re-rating we saw that with google, amazon, microsoft when they disclosed more so as facebook discloses more this is a great long-term story on sale. >> you say the quarter is mixed. the revenue missed and the monthly users missed and they met their daily user number so the story was more negative than positive i think we can objectively say that what i want to know from you is does this show there are cracks in what's been a fairly teflon story? >> i don't think so, scott i really don't i look at the u.s. and canada seeing growth for the first time in two years tha

with crypto, and if you compare coinbase, for instance, schwab, coinbase trades at roughly 18 times ebitda schwab trades it roughly 16 times today. schwab gross 10% to 15%. coinbase has been growing well over 100% a year, closer to 1,000% a year for many years and i think you hit on the question, what does it look like going forward and we look at the adoption of crypto and the speed that it's getting adopted by both consumers as well as institutions and large money managers and we see an incredible growth opportunity in front of us. will there be some ups and downs with let's call them less well-backed coins like a doge coin or a shiba coin and you will see bumps in the road and at the same time the bitcoin, ethereum and all of these up and coming defy coins, coin is the best place to make the investments in these coins and we see massive network effects coming into the business. >> glen, it's scott wapner welcome to our program it's nice to see you again with all due respect on coinbase, i still can't get over the move we're seeing in naked wines in real time it's up nearly 27% on this m

helicopter or plane, but out here in the middle of the desert, jovi aviation, a california-based ebitda making it a reality. meaning the aircraft can take off and land like a helicopter but also fly like a plain. >> so the aircraft does everything that a helicopter does, with none of the downsides, so it's significantly safe. significantly faster, and significantly quieter than the helicopters out there today. something that can be a brand-new mode of transportation that's usable by folks every day. >> reporter: joby says its aircraft to travel up to a max speed of 200 miles per hour. while other vehicles aim to be autonomous, the aircraft will allow for space for four passengers and one pilot. >> beneath identification rotors. >> reporter: and wanting to get places faster and skip the traffic isn't a new concept but they think it will improve on traditional helicopters. the company says a streamlined design means less maintenance. and electric batteries not only lower carbon emissions but reduce noise and costs. >> and generally thought about two-dimension and really bring that to thre

shell do more to decarbonize and they know it's one of the cheapest caps in the world trading at 2022 ebitda the idea here is that you have the esg investors on one hand who want them to decarbonize faster you have the regulators who want to decarbonize faster and then the shareholder base with inexpensive oil and gas and the ability to allow that to continue prospering in the meantime as they make that transition so they're saying, do this as separate businesses and not under one roof >> i know you were focused on the shell new position that he documents in the letter, and i'm looking at the letter, as well and i don't want to throw you off by throwing another thing at you, but what do you make of this comment early in the letter where he says we've increased the number of single-name shorts in our portfolio with the quality and compound equities. it's just an interesting position that dan loeb has taken. >> especially when you think of the long/short e quit managers who avoided shorts in the last years dealing with pain in the short position and that's still the case and you do hear this i

they also plan to grow their ebitda just in margins and get this, be the leader, the leader in ev marketere in the united states. just a few minutes ago i talked with mary barra about how she plans to grow the revenue. here's what she had to say >> we think it will be additive in the early days as people will want to adapt evs as early as 2035, we want to have the light duty fleet be all ev, but in that time we see growth. so what i will say is there are business plans behind everything that allows us to say those numbers with confidence. >> all right what about this target of being the leader in electric vehicle sales. we're showing you general motors shares and yes, those are gm at the bottom versus tesla over the last couple of years for some perspective. tesla has 63% of the u.s. ev market right now gm is third in the u.s. with 9% of the market. that's a daunting task to catch tesla. mary barra says they believe they will have a portfolio of evs to do that >> we start to launch all-new technology and all new battery chemistry and there is a steady stream between now and 2025 we'll ha

attractive business that should grow mid-single digits with margin expansion it trades at about ten times ebitdae where peers trade 15 to 20 times and i think it would be attractive to strategic partners we have a capable leader with non-cyclical growth at very attractive prices. >> midway through the list of say your top ten holdings. what jumps out to me is auto dealer basket, as you call it. asbury auto, group one, autonation we know what's happened with auto sales over the last 18 months or so and is that to play in that industry >> yes i mentioned this when i was on your show back in march. we own a group of them and none of them are particularly large capped and they're mostly service centers where about 70% of the profits come from the service of your car which will never be disrupted and that has secular tailwinds and the cars get more complex as people come back to the dealers more as they offer service brands and they want to protect it more, so that's a business that grows 5%, 6%, 7% and these are stocks that trade at six or seven times earnings and really cheap stocks and they're sli

we have a target of taking our net debt below three times ebitda we are firmly committed to that targetet of a 28% operating margin we are also firmly committed to that, and the 82% cash earnings. we are on track for this i think it is very, very likely we will meet these targets that's really re-establishing the company as a company without a threat from debt and with a solid profit and loss, solid margins, and ready to grow into the future and eventually some day start not just paying a lot of money to the bond holders we paid something like $16 million last year to the bond holders in interest rates and paying down the debts. eventually we can pay the shareholders it is just a couple years more people have to be patient just a few more years, just like i am. >> on that question with debt you issued some notes today tying esg and sustainability initiatives. tell us about that strategy, what these bonds will enable you to do, and the focus on esg here >> yeah. so we are very proud to have done this. we are the first generic company in the world to issue these sustainability linked bond

value the company and valuing it on an enterprise value to revenue basis and talk about adjusted ebitda. it is not earnings it is very much a growth company story and you have to believe to unfold for years to come interesting that this is being a sofi with an advantage over companies to become the all-inclusive financial services app to young people because they lend to take out student loan debt and maybe a better way in and stickier way. >> i'm interested your take with the notes and the valuation multiples that we know exist for the broader fintech space. on goldman sachs, whenever you usually mention goldman it is not because of the acquisitions and green sky or am i wrong? is that why you hold the stock >> no. you're right there goldman sachs is a growing part of it. werner vous going into a new business like this people value goldman as a multiple of book mike is right. valuing a financial services stock as a multiple of revenue is very much an alarm bell we look -- this is a business where you refinance student loans, bundle those loans and sell them off as collateralized loan o

. >> at the same time i'm seeing ebitda numbers well in excess of what wall street thinks you can do what are they thinking about >> our trough to peak was 6 to 12 bill chron. we're announcing another 3 to $3.9 billion, so that would take it to 9 to 15. we have strong demand right now. i don't see that abating i mean, as soon as we can keep up with the consumer demand, we have to restock the inventory pipeline i think we'll be doing that most of 2022. >> people are concerned with what it means because of the china cutting back i keep telling people, are you not looking at what they're doing. hurricane ida, plants coming back online, u.s.-based and canadian-based natural gas we are not stuck with $16 natural gas here >> this is why we say we knee all of the above plan. you can't do it with just one fuel right now china is tight they don't have enough coal supply natural gas can't replace all that coal right now. now, the good thing for us is the americas, canada, north america, latin america, middle east, willal be advantaged through this, because they have reliable sources of natural

we have 2 billion of near term ebitda growth coming on starting next year and rat ccheting up through we have laid out a compelling thesis for the investors. the cash flow story is phenomenal we have paid down another 1.1 billion in growth this quarter we paid 518 million of dividend and 400 million of share buy backs and we have the liquidity and just a remarkable cash flow sorry so we came out of this covid pandemic with a best balance sheet in the industry. and we're poised to be able to lean in to this and make investments starting now. >> finally, always like your view on the strength of the economic recovery that we have seen and how much longer it can touch. from autos to beauty to infrastructure, what are you seeing out there about how much staying power this economic growth has >> the consumer is still strong. i still expect china next year to give us numbers maybe 4 1/2 to 5% gdp growth next year i believe the u.s. consumer is strong we have southeast asia coming back we have emerging growth in africa and i think europe will see a better year next year. automotive even thoug

you don't get the sales until ebitda and the other knock is to pay a high price and not necessarily theumber one share as you just said. >> yeah. look it is in fact the number one brand across north america and we believe that we paid a very attract i ive price. this is a profitable business that operates out of colorado and into 12 other states and as relates to the ownership rights it is very similar in a way to our transaction where we effectively own the business and don't close until it's a federal per misability event but can continue to grow and enhance our position in the u.s. between now and per missability. >> some people in various analysts' notes suggest that other brands are ahead how do you frame wana as number one? >> we are looking at total dollar share in the category across north america so we're including canada in the met ricks and the u.s. we think that edibles are a way to bring new consumers into the category and it's a way to increase the number of occasions for cannabis so again we really think wana is a strong play to add to the portfolio. >> david, just on the

to make it worth the while compared to the other names at 18, is the times ebitda. >> and quickly let's for buy for longer and upgrading the estimates for. >> hostess is a small sweet baked goods company and better managed in recent years and see the stock beginning to act better i think the story is getting out. top line growth is outstanding there's upside to lot of upsideo consensus numbers too in products like baby buns. the fact is this thing trades around 12 times heebitda if it were a healthy snack company it would be trading at 20 times even peers like hershey and mondelez are trading in the high teens. you can dream some really big dream to the upside here pushing this through to $20. so we like hostess >> david palmer, good to check in with you, thank you >>> when we come back, tickets sales for one new release hitting a pandemic era record. and more highly anticipated title are on the way we'll have the details on the bounceback in the box office, next >>> and it is hispanic heritage month. we're spotlighting cnbc contributors, business leaders, and our own anchors and report

reported earnings that were actually considered to be good when i was talking to people this morning, ebitda quite strong, people seemed encouraged by the buyback, but look at comcast shares, they're down another four-plus percent. you've got to believe something was said on the call --. i left my phone upstairs, people may be texting me to tell me why, but regardless, the stock is getting hit >> i was being interviewed saying i don't think the bears would be respected, those headline numbers the bears are winning again. >> they are. they are they are and, you know, the concern there is there's continued competition, the overbuild to a certain extend from tea, concerning their fiber aspirations, oh, yeah, my phone. thank you. >> on the call, there was, according to variety a discussion of peacock where analysts asked for hard subscribers numbers and the ceo said peacock is doing well, expects a ramp-up of originals after the pandemic >> and always hard to talk about your parent company. it's the one stock we say we own, or many of us do, but there are questions about peacock in terms of the

we're going to very rapidly get back to our 2019 monthly ebitda and go beyond that. >> all right byrono much. thanks a lot. >> carl? >> thanks. >>> time for our etf spotlight, taking a look at the communication services sector, ticker xlc, up more than 20% this year. top holdings include facebook, alphabet and netflix twitter, shares rising after announcing the sale of the mobile ad unit for more than a billion in cash. twitter bought it in 2013 for an estimated $350 million shares of twitter up more than 35% from a year ago. best day for the s&p since july 20 and we're about 10 points away from the 50-day ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ before we talk about tax-smart investing, what's new? -well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪♪ we'd be closer to the twins. change in plans. okay. mom, are you painting again? you could sell these. lemme guess, change in plans? at fidelity, a change in plans is always part of the plan. >>> i'm christina and here is your cnbc news update at this hour in the la

very old school if i can't do a discounted cash flow analysis on the, a future projection on ev to ebitda expertise in and not something that i will 0pine on here. >> mike, in terms of the bounce it's shown similar to other asset classes with footing and like it always does much more of a jump than the broader equity markets. >> absolutely. it's always kind of pick your narrative why things happen and why now. why to this magnitude? there's a way to point at the highs and say this thing douse ian 14% in 6 months and most risk assets are higher had a move to the upside before that it gathered itself near the lows enough there is without a doubt an amazing amount of interest and capital and whether it's informed capital or not that's being thrown at this area and experimentation. it is hard to kill i wonder if a little bit of the edge taken off the regulatory noise. right? stuff out there. china banning crypto and then lawmakers as well as the s.e.c. chair not receptive to it and kind of said we won't snuff it out. it seems as if thatmight have said okay we stress tested this. i don't think

it came in at 47 million but las vegas sands points out in both macao and singapore, the ebitda has turneding point for this company that has been buffeted by coronavirus. we know there are strict restrictions in place. beijing has implemented stricter quarantines because there were two cases confirmed in macao early in october and they have just put in place vaccine mandates in singapore for guests there remember that las vegas sands is selling its las vegas property that is expected to close in the first quarter of 2022. that will go to vici in terms of the actual physical plant and to apollo for operations. we expect to hear more on the call about how they hope to turn a corner you can see there the stock down 2.5% at this point >> contessa, thank you >>> we're going to talk a lot about all these earnings movers including a deep dive on tesla and ibm. thank you both for joining us, josh and meghan. >> thank you >>> up next on the show, much more reaction to ibm's revenue miss when we are joined by someone who thinks the stocks are overvalued at these levels >>> and how ongoing supply is

we think it's about 40% too cheap the equity when you look at the trades nine times ebitda, we thinksix times. next year they're going to do probably a billion and a half dollars, and bottom line in earnings, and that's three times where they were coming into covid. and speaking about free times, also three times the margin. so it's a company based upon mobility they have mobility through technology to start delivering cars to your home or the location just in time, just like your uber driver might and you can take that car and leave. and we think it's a great business model we also, by the way, behind volkswagen are the second largest shareholders in europe car which is now currently being bought by vocabs waggen. we've had a big play on the resumption of travel and mobility and the rental car marketplace. hertz in the united states, been great investment for us. >> bruce richards, great to have you join us. thanks so much >> thank you >> vefz also got mark fields in there as their intern ceo. >>> logan roy making his return to "closing bell." and he had some choice words for us as

looking at talking $90billion of ebitda for both companies over $60 billion of free cash flow it's likeink what the s&p 500 looked like. looking at it today, by the way, we like the auto companies today you combine them, auto industry combined, u.s. auto industry a third of that cash flow globally about the same as cash flow of two companies. listen, i think tech, i think in and around tech, services that are even, in and around tech will continuing to the leader and we're looking at biotech yesterday, had pressure. i think some of the health care places are going to be some upside talk about autos hearing your interview today i think autos are throwing off a lot of cash flow today, and are reaping the benefits of the cap x that went into ev and will for a few years. >> there are so many currents, cross-currents coming out of washington right now talk about who to tax, what will happen with prescription drug care benefits. what will happen with the power to negotiate with some of the drug companies if you like biotechs does that mean you don't think those things come through or is that

we have an all-time record for los vegas strip ebitda in the second quarter out at ceasars. two of the three months. i know we're well on our way one of the examples is we've torn out the entrants to ceasar's palace. we are redoing the arrival experience it will finish early in the first quarter. it's about as much construction disruption as i can imagine. and we've seen no impact on our business people are still coming as strongly as they were before >> so that's the leisure segment. but the businesses, we just saw this announcement from the national association of broadcasters they were yanking their conference this fall this was happening next week what are you seeing in terms of delta disruption >> so we've seen very little in the leisure segment as you've discussed on the group side. the cancellation rate in terms of conferences that do come is higher than has historically occurred but we are seeing improving numbers here in nevada the governor sent metrics that counties need to remove the mask mandate and clark county is getting close in terms of covid numbers where ma

profitable, these guys aren't and this trades at 33 times price to sales facebook trades at 10 times ebitda it's hard for me, this is the problem you wake up and you're down 20% because the valuation can't support it i think it's going to take time, andrew these things take a bunch of -- kind of months and quarters to play themselves out. this was such a favorable name headed into the print. i think it's going to take some time that's why i say, i'd rather own facebook because the expectations are low even if they have the privacy issues, they will, the estimates have come down, the expectations have come down. >> is this a market that's going to have troubles when you have high prices you watch stocks climb so rapidly so many were priced to perfection i was listening to a stas you can statistic today even though the numbers have been beating you've seen the trading activity be lousy, the worst you've seen in a long time because so many of the stocks were kind of priced to perfection. >> absolutely. that's spot on that's why valuations do matter. i understand the momentum game i understand