john kernen is with us now ahead of that.ood to see you. >> thank you for having me. >> what do you have on the stock? what's gone wrong with this story? >> i have a buy on this stock for a long time. this valuation multiples are at the lowest point since 2017. that was when the business was at scale. margins were much lower. right now competition from some up starts is certainly changed sentiment. >> why aren't those issues that we mentioned more significant for the long-term that the market share that this company has had on the premium end of what they do is going to erode more than people think because of the increased competition? >> i think it's overpriced. this is one of the better financial models in retail. 50% -- they print cash. i think risk is actually to the upside for numbers for here. >> at least $2 billion in stock. that could add 40 cents. competition is real, but lululemon has grown 2.5 billion in sales in the americas the last two years on top of that competition scaling fromvery little to maybe $2 billion

john gibson, thank you. >> thank you. thank you for having me. >>> it's just before 7:00 a.m. on the east coast. you are watching "squawk box" here on cnbc. i am becky quick along with joe kernenross sorkin in washington. this is just a day after new product announcements from nvidia and amd. >>> a move at the border would temporarily shutdown the southern border when the crossings exceeds 2,500 people. the ftc preparing to file a lawsuit against southern tkpwhraeu surz wine and spirits. the suit is related to how the company prices wine and liquor around the country. the fdc is considering bringing the case under a 1936 law meant to prevent suppliers giving certain pricing over others. >>> 200 on the dow, and let's get to dom chu with this morning's premarket movers. >> let's get a check on computer chips. intel is moving higher, just over 350,000 shares of volume. some of the positivity is because of gayle zinger who took the stage saying the new line the chips rivals nvidia's offerings, and that processor will deliver better performance and high efficiency compared to previous generations of the chips. we will stick with the simi conductor trade and get a check on nvidia. r