i know you've been following the soft bank story for some time now. he's really prided his exiskilln private startups now we are hearing about the public sector they are following what is going on here in terms of soft bank's strategy? >> clearly in a world that struggles for yield, income and growth, the soft bank portfolio and investment approach needs to look for these returns the asset management arm they announced on the 11th was one of prudent and financial management and prudent and defensive actions were mentioned on the call at the time this would be called as a gamma gamma and potentially wagging of the market would be huge for investors of the stock >> what do we know about the head of the team that was established on august 11 >> so he's been a specialist in investing over a decade now and behind some structured assets for soft bank for which have been successful. looking to sell part of the alibaba holding, the structure product makes sense because you can't indicate to the market, you can't be a big seller of the stock. this is a measure

it's not soft bank i don't know who the whale was that triggered the trades. all i know is that particular buying activity, billions of dollars of additional upside pressure on the markets basically pushed a lot of folks like me out of some of these stocks you just couldn't justify it zoom, tesla, juniper, there's a host of stocks over the last three or four trading days i had to exit either because they just became way too extend eed and ta call skew was so extreme again, i'm throwing this back to you because you're the one last week that really noted that first when we were looking a t this, you said, is this just hedging or what the heck is going on why is the vxx moving up so dramatically at 26% while the market was flat to rising. it's willing to provide that upside call speculation except at very, very dear prices. it goes back to getting more of the men and women back onto the trading desks at jpmorgan, deutsche instead of these pods all over the country as well as the trading floors riep right now what you don't know really could kill you. i think a wi

we had the soft bank news.uge buyers come into the market at the end of the day, we are eight week as way from the presidential election. there is a lot we could break down further but i'm optimistic about tech pal >> you really are even after thursday and friday may continue today. >> let's break this down this is a long gamma trade that is the rate of change in delta. what is delta? a measure. we are talking a lot of greeks here i want to break this down. delta is the change in the option prices in relation to the underlying stock if that option is delta 50, if apple would move up $1, the price would move up $50. when you see the velocity come in like softbank, every time they spend $1 billion on a premium, once we saw that come in, that made some waves of hedgers having to buy back some stock. this is a bit of the unwind. you put that in conjunction with the buyer to come in $100 billion at a time puts them at the s&p 500, you saw some anomalies last week that disturbed some people. we saw a big rock get thr

that's not what soft bank is alleged to have done soft bank is alleged to have been doing the types of trades that are looking out to next month, the month after and they are opening call strpreads which doesn't require quite as much hedging because of the nature of that set up. it's not quite the same as the robinhood folks saying tesla reports earnings in two days let me get long some options here >> that's worrisome. you're making the case of why it's -- >> i was on the show scott, scott i was on the show screaming about stock splits and how that's the wrong reason to be buying stock and the worst -- you and i debated this the worst possible catalyst for new highs was this stock split mania. all of the gains from before they announced these stock splits in apple an tesla that juiced the price, all of those gains are being washed out now people that bought after the split announcement and leading up to it, are absolutely dest y destroyed. that is what should happen this is how you learn. i did those stupid trades when i was 22 this is how you learn how the market works unfortunately,

and in that way, guys, we're seeing soft bank act less like a vc with a 300-year vision, more like ar quicker gains key question is how much soft bank still holds or has unwound and whether its shift in strategy will lead to more transparency. they declined to comment when i asked if they could share anything relating to the current equity position. investors, they are getting jittery. this week in tokyo, soft bank shares, tyler tlslid nearly 10%, erasing billions of dollars in market value >> let's talk more about soft bank it and ma son had a rough go with the biggest bets like uber and we work. he looked to be scaling back ris thk year but he was making big bets in equities should shareholders his partners in business be worried >> tyler, i think that's a really good question we did see jitters so far this week in tokyo while we still don't know the extent. i he mean softbank could be sitting on some very big gains due to the bets. however, you know, i reached out to elliott management right after this investor that took a significant stake in softbank last year and really push fo

it is certainly at a profit and that seems to have been somewhat elusive for soft bank in recent times actually turning a profit and things we saw the debacle with they didn't cover themselves in glory with. just last week or 2 weeks ago we were talking about what sort of plant was doing with this equity derivatives don't look like a little hedge fund within the organization without letting anyone know so yes that they preach team to rack up some wins and show that they can actually learn and sell high the way they have in the past or bear in mind. it's a 1000000000 selling for 40000000000 between 2016 and now is not terribly impressive i mean just announced that went up over 130 percent in the same time in the s. and p. 500 is up over 70 percent so a 30 percent return for your positon crude is not that impressive so it looks more to me like soft bank is trying to shore up its capital position and trying to generate some cash to absorb the losses that have to have as a result of the poor trading. and i want to add on this quickly gilliard is actually obviously been at the for friend of

semiconductor manufacturing affects your arm from soft bank for $40000000000.00 no arms intellectual property is used in processors for mobile device manufacturers like apple samsung and qualcomm now in the announcement of the deal the company said it would continue to operate its open licensing model while maintaining its global customer neutrality now on the news and video stock shot up as much as 9 percent at points throughout the day meanwhile pharma giant gilliard sciences announced a $21000000000.00 deal with purchase biotech firm immuno medics and its breast cancer drug should l.v. now immuno medics shares closed at just over $42.00 per share out of friday gilliatt agreed to pay $88.00 a share in all carry cash option for the company a premium of 108 percent now on news gilliam stock popped as much as 4 and a half percent throughout the day and another deal for. as a communication has agreed to buy track both a prepaid cell phone provide a service provider from mexico's america movil in a deal worth as much as $7000000000.00 now trac fone boasts more than $20000000.00 prepaid

one, nvidia buying arm holdings from soft bank for $40 billion and oracle -- tik tok, the latest, as you pointed out on our call, julia, don't call it a buy out. it is not a deal what exactly is it then? >> well, it's not an acquisition. it's definitely not an acquisition, brian, but what they're doing is saying they've chosen oracle as their trusted technology partner and part of tik tok's restructuring, not the sale of tik tok's assets but rather oracle is to become tik tok's cloud provider the proposal was received over the weekend and trump will have technical discussions with oracle ahead of the september - 20th deadline for when the deal would be done. as cloud provider oracle would take responsibility for privacy and data security issues and would be key to address u.s. government concerns about china -- -- this in response to president's demands. sources tell me things are definitely citile fluid and could be others participating in this deal such as walmart who continues to have an interest in tech it okay investment and -- tik tok investment and now things are in talks and

so according to the wall street journal soft bank spent roughly $4000000000.00 buying call options which due to the embedded leverage in options it's basically the equivalent of buying hundreds of billions of underlying in stocks so that sparked this massive upward movement only a handful of tech names so now soft bank is actually exiting the train stop and disclose that it quote spent $10000000000.00 on public equities and have already sold 7000000000 dollars of them so that's on thursday and friday that can now be attributed to the gamma squeeze unwind by soft bank so this will start to become a major problem for that we tell day to day traders who are about to see the rally that they've been enjoying since march come to a screeching halt well that's exactly what we're seeing here in the now seeing some lows we haven't seen since even before march michelle let's talk about the latest stimulus for those talks ended obviously in the stalemate congress is set to return to session today but how optimistic are we that anything substantial is really going to get passed this time around mccon

if there was very large positions being taken by other traders like soft bank, for example, on the marginseople taking very large positions in options, particularly call options, that at the margin can have an effect of frothiness and add a little more to the market. i think it is extremely interesting and we should take a look at that >> we will look for others to match that reporting thank you for watching us start the power. apple is watching the interday low of 110 touching that would be the first time since then. the street is just getting lady on apple and joins us to explain. >> thank you for having me long term i would say it is trying to help investors figure out how they play year after year and they have positions for the 5g cycle, and what we learned, and what is in the reportings is that their consumers have been very strong. it is they are v not lost that much power they spent less on travel and restaurants. and i think that is the set up as the new product cycles, it is being launched on 4g and 5g phones, and what we're hearing is they're preparing for it to be launched. so

them so that's on thursday and friday that can now be attributed to the gamma squeeze unwind by soft bank so this will start to become a major problem for that we tell day to day traders who are about to see the rally that they've been enjoying since march come to a screeching halt well that's exactly what we're seeing here in the now seeing some lows we haven't seen since even before march michelle let's talk about the latest stimulus for those talks ended obviously in a stalemate congress is set to return to session today but how optimistic are we that anything substantial is really going to get passed this time around mcconnell says he's ready to pass something smaller bill how optimistic are you. where we are in the election year and it's coming upon us rather quickly with a lot of issues circumventing the election just here domestically with social unrest and then internationally with the china and u.s. trade tensions threats from china to reduce their buying of the u.s. dollar or even more of their their fear of inflation they've already sold $109000000000.00 worth of all bonds as t

and there we re 2016, to japan's soft bank and there were guarantees thatjobs would stay in the is being acquired by a company nvidia which is in the same field, it is the world's most powerful chip maker. arm's klein, 500 client, it has been described at the switzerland of the chip world, they rely on access to its technology, some may be concern they will no longer get that. arm's co—founder has said this is a disaster, this deal, it almost is certain the headquarters will be moved to the united states. i have spoken to the boss of nvidia, he said he will guarantee it stays in the uk and there will be major investment in an artificial intelligence centre in cambridge, lots of questions still to be asked, the government being asked to intervene in this deal. thank you. thank you. president lukashenko of belarus is in russia for talks with vladimir putin. moscow has offered support for his regime — despite weeks of mass protests over the disputed election there. 0ur correspondentjonah fisher is in minsk. what is he getting in moscow, a pat on the back % a slap on the wrist? —— o

we've written on soft bank and the others in our case, it is not just soft bank, 120% of all share purchasesill share on options. not much option going on in the single stock option world where we have seen before. >> a lot to unpack there, first off, there have been the creation of weakly expiring single stock options they used to be only monthly now weekly, so i expect that plays into volume. if i say, you want to sell me a car, i'm going to pay you 1.2 times the value. should the theory of options be more than the stocks because there is not enough asset to cover the trades >> yes i don't want to make any direct comparison you saw that in the financial crisis where they the contracts and they were much higher than the underlying what is important, you get all the stock option trading in buying and selling, the banks, the dealers that have to sell this stuff they do respond by buying more of these shares. let's say you and i buy the options for the dealer they don't want to get caught short. so they buy the underlying shares they add we suggest this is the only reason markets go higher and

soft bank sinks as the japanese investment giant is branded the nasdaq whale buying off massive bets on tech shares as the european commissioner tells cnbc europe needs an answer to u.s. tech dominance >> it is a major problem we all know that the giants of the digital platforms are the real winners of this we can't manage this problem with a single digital taxation. >> he is worried about difficult talks with the u.k. amid reports the british government can override parts of the divorce deal >> let's get a check on european markets. we're about an hour and a half into the trading session and it's all systems go here we have a rebound underway now about 1.3% last week we did see it underperform broader europe. a bit of a catch up trade there. the cat 40 holding up well up about 1% we'll take a look at the sectors and what the break down looks like this morning. the banks are turning lower. the best performing part of the market, real estate up 2%. strong performance there reanult getting a boost on the back of an upgrade we got the banks underperforming. spanish banks on hopes of con

sanctions >> soft bank shares jump as they agree to share to nvidia for $14 billion. the japanese investment company is looking to go private >> japan's ruling party leadership race setting him up to take over as prime minister placing the country's longest serving premiere shinzo abe. >>> thanks for joining us. let me take you to the european market but we haven't got 6,000 points which is very difficult territory in recent months so the dax chasing almost half of a percent and looking solid. near 5,000 points last week and holding on to that leadership with another .7% italian stocks also in the green. we saw last week that these markets would try to hold on to some of the gains despite selling on wall street very serious patches of volatility on the u.s. markets but european stocks did try to put a little bit of distance between themselves and the market action. let's take a look at the better performing parts of that market. that's very close to a theme from a number of fund managers looking for the recovery stocks. we had the rally in technology and health care.

into the numbers move over microsoft as the saga takes a turn ahead of the deadline call it the soft bank stunner. it's spinning off one of the most highly sought after assets. a possible move that could help the company steer clear of investor scrutiny and astrazeneca's trial is back on track. you're watching worldwide exchange right here on cnbc. >>> good monday morning. here's how stock futures are looking on this monday morning you can see a solid amount of green on the screen. the s&p higher by 32 and the nasdaq by 127. the key index to be watching over the last several months now this after the s&p posted it's worst week since late june and coming off the first two week losing streak since may but the focus remains on technology. closing down more than 4% since the worst performance since the weekending march 20th and the first two week losing streak since july the nasdaq is now down more than 10% from the most recent 52 week high it was also a record by the way. a number of key events in the week ahead for the markets and your money they include a very big day tomorrow and a few fo

the aqcuisition announcement of armed holdings from soft bank. with both ceos says it's the most important daily in semis he's seen hey, pat >> how you doing >> i'm doing pretty well i got to say, this one, arm is kind of this ultimate platform, neutral company. getting together with nvidia, if jensen can figure this out, it's powerful i don't buy his argument there's no conflict here what if arm wants to take license here when it's already competing head to head with nvidia in graphics there's all kinds of potential problems >> there are a will the of problems i do think that many of nvidia direct competitors will say they have issues with this and will try to derail this at the regulatory level the way he's organizing the company as an independent avenue reporting as a subsidiary into him and by coming out strong saying he wants to run it independent makes me feel a little bit better. the way that i think it's going to shake out is nvidia will have to abide by a certain set of rules. this comes with every acquisition that i've seen i do see thi

i think it was noted in your report, he has been selling down assets such as alibaba, soft bank mobilecompanies to restructure so some of the inflow of billions of dollars that are earmarked for that particular strategy it might have made sense to them to say hey, while we're in this transition phase, let's use that cash and bet on the future of technology in a big way for the public stock market. they could become the berk shsh hath hathaway of the private market that particular plix might be appealing to softbank. >> deirdre mentioned that he did start playing in the public markets, how much more do you think you will have to see tr s transparency about what they're doing in the public markets? >> i think it commends on if it will be something that is s opportunistic. some degree of secrecy is necessary. you might be doing harm to yourself at some point in the next few weeks disclosures will have to be made and we'll see if it is more of a long-term plan >> that is true, they might see more value as well thanks, good to see you. >> my pleasure >> let's get another check on the market

the report is soft bank was large and constant buyer in recent weeks of call options on stocks like those it's fascinating because for that period, we have been observing massive volumes in the options market kind of indiscriminant buying of the big momentum tech stocks a lot of people have been splicing it up and saying there's been an unusual number of rather small orders a proxy for retail orders coming in it was assumed it was small traders speculating on continuing of this tech run. they do have a new fund and dealers are saying they do detect their activity there. it says there was a collective one way bet that in the options buying acted as an accelerate on the up side. >> do theysee the big trades and think they must know something? >> there's definitely a way they grav state toward what's moving and what's moving fastest. a call option is just kind of a fraction of the cost and individual share. there's no doubt about it that it was a multiple factors driving a lot of the speculation across here. the big question is, two days of short set back to essentially flush a lot of that a

it's not right to soft bank. clearly the market likes it.reaction of nvidia stock up 6% it is a big portion of what they're paying for this company, so pretty good risk reward it seems for nvidia. it may not be much of a home run. >> mike, there are serious questions here it is regulatory approval from the uk, from china, and from the u.s. we've teen them in trade wars and fights around semiconductors some competitors are concerned about it >> nvidia can be up 6% in a day when nasdaq is up 2% no matter what i don't know that people are saying it's a make or break for the company. but perfectly willing to see if it they can navigate this process. i you he don't know if it's a deal breaker on any of the fronts there are a lot of hoops to jump through. >> i also add on the save arm front campaign in the uk, you can understand the rational for that and wanted to keep jobs, wanted to keep the expertise and cambridge and not lose that innovation that said, that argument would have been better made when it was originally sold to soft bank at that t

soft bank was the owner.ce tag 40 billion in stock and cash although c there is pushback from arm's co-founder. we talked to jensen haung, ceo, about a couple of key questions about whether they would maintain neutrality or lose potential customers by providing chips to what would be considered competitors asked about china approval he had strong answers. >> he did. in a way i would have to push back on what jensen said about there not being a competitive issue there. arm has been such a neutral player qualcomm has an architectural license, apple amd might want to take an architectural license for arm. are you telling me why wouldn't have second thoughts about taking a license from nvidia this is their only competitor for high powered graphic chips if they knew they were also putting money in the pockets of nvidia for r&d how do they make sure nvidia doesn't get early access to arm's work on the core technology going into the chips that folks like amd are going to have to compete against in the market and the

soft bank has not always been the most transparent it tends to be driven very muc by son and does heh him. it is important to note that we gather they have actually made a lot of money on the option trades so far. the question is, of course, is this big conglomerate, should it be run as a poorly risk controlled hedge fund rather than the conglomerate that it is supposed to be >> clearly there is quite a lot more to this story we know you and others will try to uncover it. robin, we appreciate you staying up late in norway for us softbank wasn't alone in getting bullish on big tech right before the selloff. we have the story of some analyst who's made some fairly untimely calls in that space eric >> that's right. the selloff cut many tech analysts flatfooted. a lot of them had just raised their price targets. in late august morgue an stanley rauzed the prits target price target on apple. and that reiterated that $130 target on august 28. today apple is at $113, down about 14% since the nasdaq high. jeffries on august 26th, more than doubled the target on tesla. up to $500 on a split a

all the other sectors and kind of lifted them up too but then all of a sudden the market turned soft bank exited its texture of the trade so now the market the tech sector looks best and unfortunately it's a really bad timing for all of the scheduled i.p.o.'s that we have on deck so some of the biggest names that are poised to hit the market including database vendor snowflake gaming company you need a unity software and tele health provider am well so these companies originally planned to go public earlier this year back in april and may but they have to put their plans on hold due to cohabit so when the market then subsequently bounced back and next hit all time highs again these companies restarted the prep work to shoot for post labor day i.p.o. but in their haste to restart the process and sell shares tech companies could find themselves bumping up against a shifting market condition since reaching a record high on september 2nd the nasdaq has now dropped more than 9 percent volatility back and news offerings are not immune to the general market sentiment and it doesn't look like it'

cliff that wall street and wall street has already gone over when i hear the story about they had a soft bank who took a huge loss with as we work and vestment gaming the options market to such an extent where he is inflating the n.o.i. in tech stocks by engaging in what is called a gamma squeeze in terms of the options forcing the specialist to buy stock and meant wholesale manipulation in these markets and by any made billions of dollars in this manipulation scheme where were the regulators michael are there any regulators working today is the f.c.c. is that there are those yes you see that what happened i often ask myself that you know when when the day before. was a major as a vaccine announcement that the trading day before their volume explodes the options explode paul paul williams explodes and start afresh is up and you know who wouldn't is it you just this maybe is that when students next well i even deeper than that you know i did we do have regulators that are are working but the rest the regulators are working against the middle class. for example let's talk about one of the big r

about $12000000000.00 in market value softening shares held by 3 percent on one thing is close its soft bank acting like a hedge fund here where when it's not supposed to be won. well i don't know if some banks not supposed to be ads fun and they can certainly set up a hedge fund and trade away all they want if that's what they would like to do it would be sort of nice of them to inform their shareholders that that's what they're doing which they didn't do they sort of keeping their shareholders in the dark and this will came as a big surprise bank is an old conglomerate of different things going together it's a telco business and it has a huge venture capital than it has now it seems from the trades it was huge or it was it was in large home says so i think investors look at the company it's a bit of a surprise they don't like surprises and this is a downside surprise and they like those even less now if soft money is going to become largely edge from them was driven by those kind. then i think its value racial come down quite significantly because going to go from a company that has a more

. >> a couple of big stories on soft bank this morning that we should also be talking about buying chiparm have softbank for $40 billion in cash and stock. of course a key supplier to apple and others that's going to happen this morning at 9:40 eastern time meantime they're also reporting that soft bank executives potentially take the firm private. this is driven by frustration over the persistent valuation discount given to softbank shares i want to talk to you about soft bank. >> yeah. >> let's start here. what do you think on softbank, what do you think the chances are that they actually go private? this is a company that's so deal oriented is this just talk or do you think this is real >> i think that it's real. what you need to understand is you remember when the stock market tanked. softbank suffered a serious blow it's shares collapsed. it fell to a 4 year low. he owns well over 20% of the company's shares is heavily exposed to margin loans so he feels extra pressure and he has it in the stock as an activist that has been pushing him to do share buy backs so there was a lot going

soft bank is now selling u.s.stributor bright star the japanese group's latest move to raise cash. bright star now the vice chairman of that company and helpedtake over wework delta looking to reduce the amount of pilots on furlough and facebook is being sued for allegedly spying on instagram users. a report that says the app appears to be using the cameras when the app is not in use claiming the app's use is intentional and done for the purpose of collecting valuable user data. >> throw one other thing into the mix. did you see the news that potentially one of the ceos in contention to run tiktok is kevin sistrom who founded instagram and what kind of battle royal that would be he was on a couple of months ago because he's working on this covid website that is track. founded instagram and left and is unhappy with mark zuckerberg and now in contention to run the biggest competitor that would be a story. >> just so i understand, they compete directly i know my kids use a little tiktok but not anything like they do

the banks index up is 2% the yields are higher. the ten year is back above 0.71%. oil is softdustrials, materials joined financials in positive territory. the underperformers are tech and consumer discretionary and communications services. of course, as we said around 11:00 a.m. we were down 5% so well off the lows the dow is down 150 points or .5% the s&p 500 down 0.8%. >> it could have been worse. still lower. welcome back, everyone i'm sara eisen with wilfred frost and mike santoli take a look at how we finished up the day on wall street. down 160 points on the dow goldman sachs, positive contribution on the dow. but you had names like salesforce, crm which is a huge winner lately. dragging on the average. take a look at the s&p 500 down .8% which does leave us lower. more than 2% for the week. so just if you're talleying it up, we're up 6% on the year. only 4.5% away from a record hichlt you did see weakness in the tech names, communication services names, consumer discretionary names. all the winners in the market with financials, industrials, and materials closing up nas

add we regain the trust on the street if everybody is trying to out do soft bank of japan?ladim: there will always be investors interested in shorter horizon trading that believe they might have a point of view on things like gamma or delta. that is a relatively small minority. significanttion of liquidity we have seen in the market as well, as well as low interest rates. there is a propensity to try to seek out incremental investment. i want to keep coming back to the point. if you believe that 85-90% of your outcome is about product design, that is where people should spend 85-90% of their time. tom: how does will daniel do it? has is the message that made that fund do that for all this years? vladim: hard work and natural talent. that is a generally good recipe for success. he has done a remarkable job. his 30th year at fidelity this year. it has been a remarkable run. tom: i want you to take us back to george and jeff and the rest of them, who from time to time would make bets in the bond markets. bigyour equity guys making bets on fixed income or is that in the past? v

. >>> nvidia's $40 billion purchase of soft bank arm holdings has sparked a rally in several chip stocksoday as investors bet on more in the sector there's some concern that some of nvidia's competitors will try to block this deal what do you think? does it cross the finish line and how are you trading the stock right here >> nvidia is exceptionally expensive which is not to say it can't go up or will go up. we're interested in valuation along with fundamentals. i think the transaction looks like deal on paper edged to data center dominance those are strong and compelling reasons to own the stock i am concerned, at least in near term until we get more clarity on a regulatory basis if this will go through. we're overweight and have been for some time. we are playing the space with names like broadcom and texas instruments. companies that have been growing their dividends are more attr t attracti attractive really showed leadership during the covid crisis and built inventory so there could be no supply chain disruptions for underlying customers we like companies like that that have a capit

have been moving up to the extent that they were it's also a very serious decision it would seem by soft bank we've been reporting on this company for some time in terms of the asset sales, the huge sale of the stock in t-mobile, they were also selling some stock in their softbank mobile unit in japan. they have trimmed the alibaba position armed holdings, they may look to monetize some of it in some fashion. but i think, jim, the expectation that they would go out and buy $4 billion of options to control some $50 billion of stock is unexpected it does go to this point that perhaps it is no longer a 100-year vision they have there but perhaps more of a minute-by-minute vision. the man who runs -- who is -- well, technically ceo of softbank investment advisers has a history in that area, at deutsche bank. his old friend at cantor fitz is having an impact but it's unclear about how much of an impact it may have. >> i think they're using a research firm that has a reputation of excellence i think they're using barstool honest to god, i think they came in on top and feel that stocks can only go u

perhaps soft bank rumored to purchase, once that bet was unwound, the selling pressure vanished maybe it doesn't matter. here is the bottom line. tomorrow expect the apple bulls to resurface, the zoom accolades to speak up and semi conductors to raise numbers the restoration hardware to boost numbers and the ksu chatter bingo. sooner or later we'll figure out what is driving the retailers and the railroads, i think what i just said. we might get an explanation for the puzzling run in caterpillar. until then, though, we don't really know what this rebound is made of or if it has staying power. now let's just see what awaits us s suzette in illinois. >> caller: boo-yah how are you today? >> good, good, thank you for calling. what is going on >> caller: i have a question about slack. i have been hearing about it for the past year and i just bought some shares last week. the drop since then, do you think i should hold on or let it go >> well, i didn't like the quarter. they did talk about how there were actual macro issues, there are people being laid off. there are people who not as many

another noted that soft bank's sale in stakes like mobile bank and chip maker arm has changed the assetg may be masa son's next big gamble. a few years ago they became the biggest venture capital in the world disrupting the startup ecosystem for everyone in it now it's looking like a hedge fund we have to see how that's going to play out, joe. >> we will one report though, deidre says the company bet billions -- sitting on billions of profits we don't know how much of the original position softbank is still holding. wi why are investors selling off shares so quickly in the company? >> reporter: as you have been talking about this morning, you see the nasdaq and big tech sells off. perhaps some jitters there softbank was selling off before we knew what stocks were doing so part of it comes down to transparency and lack of it at softbank i've been covering the vision fund for the last few years. i'll be honest, it has been difficult to figure out how much of a position softbank has when it's getting in, when it's getting out, how they're marking the valuations now that it's acting like a

i was reading about the soft bank options play in that we can press and since the weekend softbank shares. and as you say, shares in softbank are down some 5% this morning. but, as you say, this is their fifth consecutive session of losses and the fall all started when it was reported last week that the company had built up massive steaks in us tech firms by making big bets on what is known as equity derivatives tied to them. and according to the reports, the company's founder was behind their aggressive bets, by spending something like 4 billion us dollars over the last few months on option premiums focused on those tech shares. so over the last few months us shares so over the last few months us s ha res we nt so over the last few months us shares went up as in softbank started buying those options and it is very risky. now a fall on wall street we are seeing has been eating away all softbank‘s returns. the japanese company has been under a lot of pressure since its shares fell because of the coronavirus pandemic and this was just one of many, if you like, strategy reversals. softbank h

whether you believe that this rally was fueled by, you know, the nasdaq like soft bank or retail investors how do we gauge if we've come to the end of that? onathan: that's hard to say. we are fundamental analysts and are paying attention who to the what companies have been saying, what's been happening in their businesses. many of them are seeing a strong acceleration in the fundamental trends we've been talking about around digital happening during the crisis. so it's no wonder to us that investors have been coming to the sector to partake in not only that cyclical growth from the covid crisis but the structural acceleration in some of these themes. so you know we haven't dug much into the options activity that's been talked about here of late. the fundamentals in the companies that we're invested in look very strong. we feel very good about the acceleration we've seen in some of these multiyear themes. yvonne: you menged what you've been doing with the fund. you're still outperforming most of your peers out there but still hold some of these big stocks like apple, amazon, microsoft. hav

that was finished by last week until the market today the volatility in the option market, we no soft bankwill be interesting if they have held onto their stake with this price action and jam nikola news, you can imagine with this type of competition gm investing $12 billion in the truck maker and their releasing badger with gm expertise in two years. i think that also represents the pretty significant competition and the snub which was shocking to see a near guarantee with tesla in the seventh biggest company in america with over $400 billion they posted four straight quarters of profit and they were in and i took the market by surprise. ashley: i think it did in the entry was to the price, word seeing a big selloff on tesla's morning. thank you, take a look at facebook, they reportedly paying some users to delete their accounts before the election. susan: 10 - $20 a week, that's part of the research project that facebook is launching so they're looking at 200 - 400000 voluntary participants across facebook, and instagram to deactivate their account, facebook in the research project to se

and pay a premium to do that but it adds so much to the volatility, not so much the whales in the soft banksn tech stock options, these are small time traders often with a two week type of time. to get in, make some money and get out. stuart: volatility. susan: looks like volatility spikes about four points on the day before the election and that will probably be the case this time around in 2020, looking at the outstanding options, that means the position people are taking on the s&p 500 ahead of the november 3 vote, get this let's say the biggest price range or the most amount is bedded that the index will fall through december. stuart: really, because of the disputed election? >> the last time we heard that, we went down 11% in the five weeks of the dispute. susan: that's what people are betting on this time. stuart: look at this 930 eastern time, we are up and running, nonetheless i happened, the dow right from the very start, it's up 160 odd points but check that out, 190, that's about two thirds of 1%, the vast majority of the dow 30 are in the green, as for the s&p 500 coming off two