david einhorn says shareholders are hypnotized. packing g.m.with tesla, he has a shorter position. he wants management to do something. when she knows said it, he was talking about the tesla-solarcity merger. is a bubble, iis don't know when it is going to burst, but he thinks it is going to burst in a bushel of tech stocks that will burst at some point. you will see them in bigger numbers next year. that will be a litmus test. if that car sells well and makes bigy, it could justify a valuation. if it does not sell well, but it sells well on the margins are not there, you may see investors dialing back. you are looking at into 2018 before something might happen. you are looking at into 2018 before something mightscarlet: ? tellinge seems to be people on the call. scarlet: people buy it. let's get you some bloomberg business headlines. a look at the biggest business stories right now. the knob from elliott management , which owns a 15 million dollars stake in the company. they say the company is significantly undervalued and plan on encouraging

you have not heard a lot from einhorn. it is uncharted waters.seen investors to bet on. >> i want to talk about the trades that david einhorn has with the long on gm and the short on tesla. pair where he sees to virgins? does he see these as distinct? what has not talked about one means for the other. he says that tesla is a bubble hask and elon musk hypnotized investors and david einhorn does not believe. when gm wasbriefly recall,gnition switch but he is now the sixth largest shareholder and he believes that gm is pushing up guidance and hitting the guidance. if you take a look at it and view it differently, you could get the value up. pictureook at the big and auto sales seem to be declining. he is short on tesla. >> he says that he thinks the valuation is low, even though it is heading into a downward swing and the company is making money in china, cutting costs and the butations should be better, they are not doing enough to get the attention for the stock. the market says that this is as good as it will get and they sol not see a lot of gro

what is green light and david einhorn trying to get gm to do? has been a general motors on and off for five years, and he thinks the company is under fight because they pay a good dividend and a putting up record earnings, but they are not getting enough credit for that great dividend, and he wants to split this into two stocks, one that is a dividend stock that pays out the same amount of cash on a smaller issue, so getting a greater dividend yield and pushing up the value. the other which he calls a capital appreciation shares would playoff the earnings. gm plans to buy back $5 billion in shares this year. that is an earning stream on a smaller share base, basically adding more try you to each one and as they i up more shares, that also would appreciate. parts would be greater than the current some and he thinks it could get as high as $60 a share in combined value. gm does not like this at all. vonnie: i can imagine. david welsh. a quick reminder, you can get all of our interviews on the bloomberg at tv . the trump economy is next. this i

einhorn has nominated three directors urging them to vote for him. >> einhorn increased the stake so is upping the ante not just in terms of the letter but had his stake. >> this is a uniquely activist position for einhorn who traditionally serves as passive investors taking stakes with long and short and gets in them and has obviously been a big frustration of his, but he sees that this plan could increase the value. >> it seems there is just investing because this is how every hedge fund is operating. there's no way to make money unless you're a computer or a so-called activist. >> but, also, before it used to be they would announce a stake, a plan and the stock would go higher. we haven't seen that of late. >> it's true. and we're seeing this not just in hedge funds but family offices are getting into the t activist game. we saw with tpg last week getting into etsy. it's a very crowded space. the market is just discounting the fact that a lot of people are trying to do these things and they're really hard to do. >> etsy is one thing. gm is another. you talk about banks. you did in

are investors to optimistic about tesla, just like what einhorn said?orter: you know, that's the beauty of the marketplace. they get to debate and they do dollars. we still get to see about 20% of teslas flow is shorting. there are a lot of people who agree with mr. einhorn. based on the fundamentals, it shouldn't be worth more than gm or ford. but it is all about the possibility, what it could bring with model three, and as it builds beyond that, and if it can do so profitably. the profit margins are pretty darn good, but can you do that when selling 50000 and 30,000 other cars? that is the big test -- $50,000 and $30,000 cars? that is the big test. and worldwide, with china in the mix, is there going to be enough demand year after year, decade after decade? that is the real test. those who believe it is like henry ford in 1915, if you can get with him 30 years before the ipo, you would. that's the way they see it with elon musk. emily: let's talk about cash burn. is that a concern? always.: this corridor wasn't bad. they consumed about $600 million in

david einhorn presented with green light.ut his position in core laboratory saying that he sees the fair value of that stock as $62, about 45% below the price of that stock before he started talking, and you can see here the stock has declined quite significantly today as his presentation went on. now, i want to be clear. he has not specified his exact position in how he is trading laboratorie laboratories, but clear he's bearish on the company. outlook for its exposure internationally, the outlook for oil as well as the management team in charge. he even showed a picture of kanye and showed -- tried to explain that's a management team that loves itself as kanye west loves himself. a lot of break heart tunes in the presentation. watch that stock price as it continues today. kelly? >> yeah, and, leslie, viewers see that green blip. when he first started talking about the company, wait, long, short, and it became clear as the presentation went on, but this fits with his sort of long-running thesis now of being bearish on u.s. f

are investors to optimistic about tesla, like einhorn said?'s the beauty of the marketplace, right? they get to debate it out and they do it with their dollars. we still see about 20% of tesla's float is shorted. there are a lot of people who agree with mr. einhorn, that based on its fundamentals, it shouldn't be worth more than gm or ford. but it is all on this possibility, what he could bring, if the model 3 is a success, and if it builds beyond that in becomes a truly global maker of electric vehicles, and if it can do so profitably. selling the model s and x, the gross profit margins are pretty darn good. but can you do that when you are selling $50,000 and $30,000 cars? will there really be an ongoing 100,000 unit market worldwide, even with china in the next? is there going to be enough demand, year after year, decade after decade? that is the real test. but those who believe in it, this is like henry ford in 1915. if you could get in with him forty yearsor would.the ipo, you that's how they are seeing it. emily: let's talk about cash bu

keynote speakers include david einhorn and many more, plus unrest on france's streets following the macrontory. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. to be a nightmare! does nobody like the future? c'mon, the future. he obviously doesn't know intel is helping power autonomous cars and the 5g network they connect to. with this, won't happen in the future. thanks, jim. there's some napkins in the glovebox. okay, but why would i need a napkin? you could have just told me a bump was coming. we know the future. because we're building it. >>> david einhorn and other big names taking the stage at the investment conference. leslie picker is there with the latest. >> reporter: i just came from the next wave presentations. those are for the up and coming fund managers. the guys that want to be on the stage that bill ackman is on. we heard some pretty interesting picks from these guys this morning. some market movements already. one from

so did david einhorn's green light capital. conduent.vested $200 million in the bank of america in the first quarter. we found conduent very fascinating. janney montgomery scott chief investment strategist mark luschini will tell us. first of this conduent name, do you find that very interesting. they're selling apple to buy it. >> hardly a name you ask somebody on the sidewalk if they knew he it, that's for sure, relative to the two other names you mentioned, liz. it is interesting. anytime investment luminaries taking a big stake in companies whether in the bank of america in the case of appaloosa, somebody known by name brand in the other it warrant attention. there is worse places that you could shop for investment ideas in these gentlemen's portfolios. liz: i don't know if that is the right name for the retailer, the mom-and-pop investor but what do you suggest that they look at, if they get the idea from a guy like david einhorn or carl icahn? should they decide what is appropriate for their time horse son? if not, what names shoul

einhorn coined the term mother fraccers a couple years ago.he's bearish on the energy sector and in these areas in general. lastly we heard from jeff gundlach just a few minutes ago where he talked about broader macro plays. he's looking at some correlations between active returns versus emerging market returns. he sees significant correlation between those two. he predicts that active returns will improve and therefore is urging investors to take a long position in eem etf while shorting the s&p 500 and leveraging that one time. for cnbc business news, i'm leslie picker. >>> let's turn our attention to asia. sony shares have hit their highest in eight years as they rebound into the television market. >> sony stocks finished up nearly 1% today reaching the highest since september of 2008. it jumped 4% the day before lifting the market value to over 5 trillion yen. that is a level it had not reached since june of 2008, leaping far ahead of rivals like panasonic and mitsubishi electric. the firm announced on monday it will reenter the organic li

on monday big hedge fund investors like carl icahn and david einhorn will reveal their first quartertocks like snap, tesla and apple. we'll also get insight into market trends including whether billionaire investors took money off the table in us stocks especially financial stocks as the trump trade began to fade. the gap and home depot will be reporting earnings on tuesday and on wednesday, us retailer target will be reporting earnings. they've already warned of lower profits for this quarter and said it would lower prices to try and compete with rivals. one of those rivals is wal—mart, the world's number one retailer, and wal—mart will be reporting their earnings on thursday. with us isjeremy stretch, head of fx strategy at cibc. it is always nice to see you. what are you looking out for this week what is on your radar?” are you looking out for this week what is on your radar? i think markets are going to look at what the data will do over the next quartering the us, to validate the assumptions of a june rate hike. quartering the us, to validate the assumptions of ajune rate hike.

and david einhorn has two of the most frustrating trades, a position in g.m.ion in tess la. both are in dire need of a catalyst. we are halfway into the trading day and julie hymen

i think david einhorn is right. the question is when. eventually everybody is right.ink the stock is still a price. but i had been wrong. this is a very narrow metric. the best selling luxury large vehicle as you look at these numbers it shows that some people are ready to spend funds here. >> we're looking at a dow jones holding on here. with 39 minutes before the closing bell rings. we have disney as the biggest laggard on the dow 30 heat map. it's like a new digital network. but nothing wayne down weight watchers at this hour. shares hitting more than one year high up 19% after reporting a 16% gain in subscribers. they are loving oprah winfrey as much as she loves that. she has a big chunk of stock. she has a big chunk of stock. , france's version of the debate taking place at this very moment. the future. of the european union. please stay with me. they are there up seven. s. and then, change those places every few months. enough with that! (echo) with quicksilver from capital one you've always earned unlimited 1.5% cash back on every purchase, everywhere. welcome

. >>> david einhorn and bill ackman making news yesterday.eslie picker with the ripple effects from this year's event. >> reporter: we're still seeing those effects today. resnick said it's going bankrupt. a statement to cnbc that it has ample financial flexibility to pay down debt. and core laboratories down which einhorn said he was shorting. the long picks are moving as well. he sees shares doubling by 2020. >> a company is re-examining all the things that they're doing or whether it's denied boardings. >> reporter: gun lock took aim at passive investing saying the tide is turning to active management. >> active management, as i said, using the mark twain quote, reports of its death have been greatly exaggerated. >> reporter: how to play that. gundlach says when markets outperform the s&p 500, so, too, does active management. he's advising investors to go long emerging markets and short the s&p. leverage that one time. >> from smart money at sohn to tiger 21 the shift into real estate. the founder of tiger 21 to discuss the move and some o

> reporter: earlier this morning david einhorn hedge fund manager presented for core labs.ew corporate focus, always jumping on the hottest business trends. so, for example, on core's chew on earnings this year the ceo mentioned big data, neural networks, machine learning, artificial intelligence and data analytics all in one sentence. that got us thinking how many other firms are using these tech buzz words. it turns about contractor out about 60% have used buzzing tech phrases in the last ten years. before t four hot phrases this year are artificial intelligence, machine learning, data analytics and auto mnomous vehicles. some have flattened out in the last 12 quarters, the cloud and internet of things and virtual reality peaked a year ago and has been rapidly declining. ai is a health phrase. for health care it's data analytics. in data energy big energy has been the word. >> would mike construct a short basket to drop these in? >> you can overuse it. it's interesting virtual reality has ebbed, a bit. >> they're kind of over. whereas with the cloud, it became so much a p

vonnie: david einhorn was vicious about pioneer at one point.ou have a reaction to that, which -- it doesn't negate his argument. that he my thinking was wasn't wrong in looking at historical margins to try to figure out what was going to happen in the future, but we were in a different era p we were in the beginning of this multi-shale, multi-formation exploration. we are still kind of in that period. you apply historical margins to that or even economics that weren't going to improve, i think -- he was a little quick. but i'm not sure if he's involved anymore. vonnie: up 4% over the last year and down 4% since the beginning of january. michael mcallister, thank you for joining us. mufgis michael mcallister, senior equity analyst. we are happily into the trading session on mayday. abigail doolittle joins us with the latest market action. abigail: they for that reminder on may day, very celebratory. we do have gains for the major averages, dallas, -- dow, s&p 500, nasdaq all trading higher. what stands out is that divergence between the dow and

david einhorn as well. ackman said he's got a couple of new investments, can can only wonder if this is going to be the stage where he unveils them. >> one would hope that would be the case. >> whether he discloses one or both picks, that's something we'll be watching and this is the perfect platform for him to do something like that. >> we'll wait and see. going to be an exciting day. i know you'll be following the money. we'll hear from you in a little bit. we have a lolt more ahead from the halftime report. >>> next on live from the sohn investment conference. brad is one of the biggest in s investors in united airlines. get his thoughts on the problems, the solutions, the ceo and the stock. he's also a major investor in another company with trouble, uber. and later, keith meister fresh off revealing his big surprise stock pick. the halftime report, live from the investment conference is back in two minutes. trz i count on my dell small business advisor for tech advice. with one phone call, i get product

. >> in the face of these potential head windzs the auto makers could see, someone like a david einhornbreaking up the company. >> it's not breaking up, it's the financials. the pain, a part of the company. >> yes. >> and that helps gm shares. is that what you are hoping for, for instance in. >> it's not what i'm hoping for, i think gm is continuing to execute. i like the cost efficiency. phil said they have to cut back on production they are proposing to put a focus on where there are value parts in the chain. it will get you into some of the parts, which i think are cheap. this is a 5.5% dividend stock. >> i think it's smart. i don't think this flies at all. i don't think this is a chance this gets inactive. >> speaking with the auto, tesla reports, dan will move with the options market. >> the options market is implying ability a 5.5,% in their direction. which is shy of the average moved 10% since the ipo. we were talking about gm and ford. these are companies that sell thousands of cars globally. when you think about tesla having its market cap passed, both gm and ford over the las

be participating in the 22nd annual investment conference in new york city along with bill ackman, einhornundlach, plus more you see there on the screen. that is one of our certain highlights of the year. speaking of bill ackman, perschman began trading today on the stock exchange in london. >> now it's open for trade to go british investors. they can now own a piece of pershing square holdings. that's the publicly traded fund run by hedge fund manager bill ackman. it has been listed on the euro neck amsterdam since 2014. this fund in london is a second listing. so why list on the london stock exchange? well, ackman said in a presentation to european shareholders last month that the british market has a deeper pool of investors and he hopes that demand will narrow the difference between where the stock trades and the net asset value of pershing square's investment. to capture the popularity of index investing and in conjunction with the second listing, pershing square is about $4.7 billion. the firm manages will $11 billion total. half the amount of what it managed two years ago. pershing

you're new to the story as an analyst, but david einhorn, the hedge fund manager and tesla skeptic raised some interest in questions. i want to read you some of his quotes and get you to respond. he said markets are too optistic about tesla. for the time being, investors remain hypnotized by the ceo. he say we are skeptical the company will be able to mass model in margins that -- the enthusiasm for tesla and other what he calls bubble basket stocks is reminiscent of the march 2007.com bubble. as was the case then, the bulls rejected met methods for a happenedful of stocks that seemingly could only go up. we don't know when the bubble will pop. it will. how would you respond to that? >> well, look, on tesla, i agree there's a very robust set of asunlgss that are built in to its valuation. you effectively have to believe that tesla becomes bmw or mercedes in size with superior profit margins to justify valuation. now, the big debate is can they do that. now, i think there are a lot of questions about whether the model 3 can be delivered in volume and delivered profitably. we probably won't

. >> coming up, dave einhorn's report just released. what he's buying, right after the break. the global hack attack sending cyber names surging. the traders tell you which ones will keep your portfolio protected from big losses. that's next. >>> and there he is, getting ready. legendary investor steve eisman is here. he called the housing crash. does he see something similar brewing in the market right now? we'll hear from him right after this break. the show's about to start! how do i look? like a bald penguin. [ laughing ] show me the billboard music awards. show me top artist. show me the top hot 100 artist. they give awards for being hot and 100 years old? we'll take 2! [ laughing ] xfinity x1 gives you exclusive access to the best of the billboard music awards just by using your voice. the billboard music awards. sunday, may 21st eight seven central only on abc. >>> welcome back to "fast money." we've got a news alert with the littest on filings. hi, leslie. >> digging into activist plays here. green light increased stake in gm by 42 million shares, to 54.7 million share

einhorn made one of those points. the shale industry as such isn't making money. equity moneybags going? they are transporting trains of sand or gathering stuff. the trajectory of shale -- it goes up, and eventually begins to flatten out. we will continue to grow fast. there will be some second or third derivatives slowing down. we think that perhaps as early as two or three years from now, it all fits because demand doesn't fall off a cliff. this is a really cool debate. for the moment the market is winning. julia: we had a conversation earlier that oil was stuck in a range between $40 and $60. that everything you just said to us, people should be long oil? $47 a barrel? jan: i'm a classic technician. it is easier to be in that range . we should be long oil. the range isn't all that bad. we have in our long-range forecast something like the low 60's, the goldilocks number. that, tooher than many stores in the ground. stuart, all right, jan credit suisse, thank you very much for joining us. jan: anytime. scarlet: we have some breaking news. approvalning a judge's

we heard from david einhorn, given the enthusiasm we have seen in these stocks, it is reminiscent ofarch 2000 dotcom bubbles. is there truth in the analogies? michael: i think we were the only ones around in 2000, the rest of you were probably in grade school. the difference is, the company's leading the charge are quality companies. that facebook decision to report on the gap basis, that means they have real earnings. om, it is a pets.c real company with real earnings. i say netflix maybe not so much. google, alphabet, real companies with real earnings. it is not the same. we are not buying into the hype and hoping someday these guys will turn cash flow positive. they are there right now. betty: michael, thank you so much. we appreciate you joining us. you can turn to your bloomberg for more on this. you can see commentary and analysis from bloomberg expert editors. this is bloomberg. ♪ yvonne: this is daybreak asia, i am yvonne man in hong kong. betty: i am betty liu in new york. chinese internet lenders smart ,inance have consulted banks this could happen as early as this year. on

let's bring in bruce einhorn. it poetically, they call it the flower of the industry.im and breakup the monopoly -- two wobbly airbus and boeing have had for decades? duopoly airbus and boeing have had for decades question mark >> it cut, but this is a long-term play. this is the first -- it could, but this is a long-term play. this is the first test flight. we are looking at a 10-15 your program. -- year program. and it has been delayed twice. it was supposed to happen a couple of years ago. bring up thisto great diagram of all the different parts makers who made 919.e c they are from all over the world. that madee companies parts are in the u.s., ge, honeywell. this is very different they and what the japanese did when they were building airplanes. it was all japanese. why are they doing it this way? >> the chinese have decided it doesn't make sense to try to build a whole program from scratch. oute is a lot of technology there, a lot of companies out there that are happy to work with him. why do it all by yourself? they have a lot of partnerships and joint ventures

much.ce, thank you so bruce einhorn waiting to see what lawrence ho has up his sleeve there with casinoietnam's prime minister is confident his country will hit its 6.7% growth target this year. that exclusive interview is next. this is bloomberg. ♪ andhis is "daybreak asia" i'm betty liu in new york. >> hong kong's first-quarter butth at its lowest pace, the prime minister remains confident the annual target will be met. he spoke exclusively to haslinda amin ahead of a trip to washington to meet with president trump. true that first-quarter vietnamese economy is slowing down, but there are a few reasons for this. we have a detailed strategy to achieve growth of 6.7%, even in this scenario. concrete steps and measures at each industry down to the product level. the main goal is to create a and enablingen, business and investment climate. i will give you a hint of some very good news in the data in april and may that shows a strong pickup and exports, and also agricultural production, and that will lay the groundwork for growth in the third and fourth quarter this year. >> if growth were

to would know this or not, if ford is concerned about activist involvement and we know that david einhorn has been in gm advocating and here we have ford and the stock performance is worse and they have a fat dividend as well. >> reporter: there's certainly unhappy shareholders but it will be really tough and it always has been for any activist to do much with ford. the ford family, they control the majority of the voting stock. so you always hear people say this, the activists ought to get involved at ford. do you think you're going to change the mind of the ford family? you have another thing coming if you do. >> what had been reported in the past by various outlets that the dhs considering a laptop ban on flights coming from other countries. expanding the ban. >> reporter: this has been telegraphed not only to reporters in washington or those who cover the airline industry but the airlines themselves. one airline put up sign saying, oh, look, you're going to have to not have a laptop or it will have to be checked on a flight over to europe. we've seen this telegraphed for some time and

much more from the sohn conference including the best n investing ideas from david einhorn and bill ackman who you will hear from live in a few minutes right here plus we'll head back to omaha for more on becky's big interview with warren buffett, why he says he was too dumb to invest in amazon, which i find hard to believe. melissa? >>> a quick check on markets. stocks are lower but in a narrow range. the nasdaq set another high before moving lower. the s&p 57 managed to set its first interday record high since the beginning of march also before loss of gains. apple having the biggest impact, positive impact, on the dow hitting new highs once again. its market cap now close to $800 billion. tyler? >> and we begin this hour in omaha where becky quick sat down for three hours with the billionaire investor warren buffett. she was also joined for part of the conversation by charlie monger and bill gates. that is three in a row. he lamented he didn't really understand tech for a time. hi, becky. >> it's great to see you. you're right. this was a different berkshire hathaway meeting. so much fo

analysist's get more from bruce einhorn.is talking about is that there are big cities, global centers like new york, like london, like tokyo, where you don't need casinos to attract people to go there. right, just to put into context, this is getting ahead of ourselves a little bit. we have no idea about when this is going to go through and when construction can start, but it is a lot of speculation at this point. >> that's right. the parliament passed the initial legislation last december, but there is still more that needs to be done. there are more laws that need to be passed. the government has not come out with any clear rules and regulations on how it will work, so there is still one way to go. it does happen, who are the main players expected to be interested, and are we expecting this to generate and infrastructure boom, but a sizable piece of investment from these companies? there are quite a lot of companies that are clearly very interested in this market, so in addition to melco, you have the big names from the un

an old holding way back when of einhorn's. >> that's right. that was his. he was really excited about it. that's gone to single digits so many times in my life. >>> the s&p 500 and the nasdaq closing at record highs. let's talk markets with simien himen from pro shares and todd gordon, founder of tradi tradinganalysis.com. and a cnbc contributor. every morning i wake up and look at the futures. what's happening today. it just -- it's never down 150. you know, we have constitutional crises, all kinds of things happening. are people just worried that this is a bull market that we're in that will head higher because sooner or later tax reform gets done? is it earnings? was it already set up? everybody is complacent. the vix is at a 25-year low. >> a trading point of view, it's been boring. we're seeing a rotation back into large cap tech. the action is not in the u.s., which would make you think when you wake up in the morning futures are moving and they're not. we're at 0.0 now. we're flat. so i think a lot of it is focused back on a thin anemic rally. the ad

. >> phil, gm was a target of david einhorn who wants gm to break up into two different share classesa dividend, and one without a dividend. we talked about this just last week about ford and how it's pretty much immune from activist investors because of the control of the ford family. >> correct. >> at this point are there certain things ford could do such as spinning off certain units or buying a company or selling parts of its company that are sort of low hanging fruit? >> i'm not sure there are any low hanging fruits out there. unless they take the approach that gm has taken, which is to pull out of certain markets. now general motors made the decision with europe because not since 2000 did they have a profit in europe, they said forget about it, let's throw in the towel there. ford has finally turned profitable in europe, so the idea is that they're going to stick it out there. and in several other markets around the world. rath remember it was just in the last week that general motors has said we're not going to sell small cars there, we're not going to sell in south africa, we'