we had a little reset in valuations at the time and then a bigger reset in valuations as the year went on, but the economy didn't slow down and then it continued to over heat to a point where we are now where the fed continues to try to save it and i heard you say earlier in the show that the fed -- >> the treasury put. >> the treasury put. >> that may be true, but here's the problem -- >> he's the one that quoted you correctly. i did not. apologies. >> even if that is there, if it occurs in the next call it two months, it's going to occur with an inflation problem that still exists and that's really what the fed has been trying to avoid, which is exactly what happened back in the early '80s where we didn't get a handle on it, and it took off even more. we're stuck right now in a period where we almost need to hear some of this negative economic data, we need confirmation that things are slowing down and demand is a problem, perhaps because credit has contracted, in order to reset the cycle. i think the question right now isn't necessarily are we going to have a contraction. it's, how

but i don't know that the valuation's ridiculous, given some of the things you said. right things. i think the growth is there. so, in asking the question, can they hold this current multiple and ride the growth here going forward? i think the answer probably is yes. >> you have further data points coming from amazon tonight about advertising still being there, advertising growth still being there, so, do you feel better about this move in meta? >> i do. i remember a conversation i had with karen -- i don't know, maybe six months ago, and she's been right with this meta trade. i think, as jeff said, monetization is really what you want to see. and the whole real situation or concern that i had around the stock was that they were investing to much into this metaverse, which, to me, was an implicit admission that they were chasing growth, or running out of growth engines. reels has proven to be just that 30% and 40% respective monetization over instagram and facebook, so -- a lot of those costs have been kind of pulled back my concerns have much -- have calmed down quit

sonali: i want to talk about valuations. you did work on stripe. $4 billion fund raise and a lot of money came from goldman's own private clients. there was a down round. have we hit rock bottom across the industry? do we have more to go when you look at how much further down the valuations are heading? nishi: stripe is a fascinating example. they really bit the bullet and did the right thing for the capitalist structure. they wanted to create enough incentives for retention for the employees to continue this growth journey even at reduced risk. in terms of actual valuations, i think what you are seeing are many companies hoping to survive this period by managing costs and expenses and preserving as much cash as possible at the expense of growth to not have to test evaluation environment. as an investor, you are hoping what stripe will do is unlock more so you can help recapitalize the companies on the next leg of their journey. sonali: do you see that we are in a credit crunch? the reality is it is not just silicon valley b

you wonder how long that can last valuation is the reason. i think you want to continue to own it, that's why karen, i'm sure, continues to own it. question is, what level do you pull the rip cord? i think 118 is probably right. >> let's get to microsoft now. results in the cloud better than feared steve kovach has the latest. >> the other ai company, right microsoft showing growth in the segments that matter revenue, overall, up 7% year on year net income up 9% intelligent cloud beating expectations, too, with $22 billion in sales that's up 16% year on year now, this is the division that includes azure cloud, but azure cloud growth keeps decelerating. it is up 27%, but keep in mind, azure was growing nearly 50% this time last year. could be a sign companies are trimming their i.t. budgets. and in more personal computing, beat expectations, with over $13 billion in revenue, but still down 9% year on year and take a look at windows licensing revenue. that's down a whopping 28% that follows all those reports we got from research firms like idc

i mean, valuation can't just keep going and going you are already at ridiculous levels for valuation> if i am going to make the turn and look at fundamentals, i am more focussed on what the revenue growth is and what is the return on equity and the debt to equity the valuation story is a story that has been so convoluted and conflicted over the last 20 years, and you can make the argument that valuation on certificate stock matters and then there are others that never matter, and you look at it and ask yourself, how does it continue to trade at that va valuation and it goes beyond -- >> well, the classic example is nvidia, and you can't make as a compelling argument for the evaluation of intel and equate it to -- >> i am not making that -- >> i know you are not comparing that >> i want no part of intel all i said was there is an explanation as to why somebody has optimism about the stock >> my discipline is more value or growth at reasonable prices >> you bought the qs last week on momentum. which was great. >> yeah, i did the qs are not as over valued as inindiv -- it's not my strat

what is your current read on that one with regard to valuation?ng off two really bad reports. the last two earnings calls. they kind of surprised the market with overinvestment and distribution centers and struggling with theconsumer transitioning in the face of the recession. i think it's unlikely that they're going to have three in a row. you know, this is not a snap-type company. i think chances are better they'll surprise to the upside expectations have been taken down valuations are pretty unheroic here at these levels for amazon. i think they're one to watch definitely the aws story of cloud deceleration is important. and are they -- where are they exactly in terms of the rate of decel? do they guide to a bottoming in deceleration for aws later this year with talk about a resumption of acceleration in cloud growth if they speak to that on the call that will be a surprise and would definitely help the stock here i like it a lot going into earnings this week >> all right we'll be watching out for all of it appreciate you setting it up for us t

valuation doesn't mean a whole lot. if anything, sometimes, as they go up in waiting in an index, they pull down the index with them but i think this is about those companies that have some kind of reasonable long-term, you know, project management chevron, even exxon, those are the places, i think, benefit today. >> we had before, you know, in a time when money was cheap, and you can basically fund exploration or at least making old wells more efficient or finding ways to tap old wells, that doesn't exist anymore in terms of that cheap money, so -- >> nor does that willingness to drill as much, right >> exactly >> we talked about how disciplined they are now in sort of not your father's oil companies anymore, and they've been the beneficiaries of that sometimes the stocks haven't, but the balance sheets have, the dealt has. and the valuation -- they give a lot of money back to shareholders, as well. >> yeah. gas prices tick up and the companies are so disciplined now, ie, not drilling anymore in helping the u.s. consum

hey professor, subscriptions are down but that's only an estimated 15% of their valuation.ink the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. from big cities, to small towns, td ameritrade. and on main streets across the us, you'll find pnc bank. helping businesses both large and small, communities and the people who live and work there grow and thrive. we're proud to call these places home too. they're where we put down roots, and where together, we work to help move everyone's financial goals forward. pnc bank. sfx: [alarm] every day you get to choose. do i want more? can i grow stronger? can i get better? bodyarmor lyte. more than a sports drink. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. >>> welcome back, e

it's not as expensive as it sounds with a $250 billion valuation. >> that the valuation for the companythe chinese company that owns tiktok. if you carve out tiktok, the back of the envelope, it gets you to $50 billion but then you can back out some of that, 60% of it is owned by large institutional investors, american venture capital firms, probably 15 or 20 billion to make this an american company. jack hough: carleton: you have alexandria ocasio cortez and rand paul coming together on this point. i'm curious on the business side of it who would be the winners? >> there's a couple of obvious winners, at least 3 other apps that look like tiktok. the one that wins the most is meta which -- reels is a clone of tiktok you can find in facebook and instagram. these should boost their earnings by as much as a dollar a share if they were to take half the current tiktok traffic, they would be a big winner. youtube shorts is similar that would also benefit and so would snapchat which has a service called spotlight that looks the same. they would get additional traffic in the event. jack otter:

which is a more reasonable valuation. but that chart does look troublesome. >> up next, the name that's dominated this week's conversation -- tesla. the big drop in shares and what is next for the stocks falling margins and falling profits. "options action" back in two >> announcer: "options action" is sponsored by thinkorswim by td ameritrade. good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. t

when valuations skyrocket they have little impact. when the levy is capped the valuations increase in the does nothing to stop overspending. our valuation system of our property tax is the problem and it must be changed. our first step is addressing valuations of ag and porter croaks roland, the market value this land goes up almost every year. creating more and more money for government and its. simply vaporizing into thin air before her very eyes all with out any regard to how much value the land creates for the family farms are ranchers. that's totally wrong that needs to be changed. by changing this for market-based income-based assessments and capping a gland by wishing growth we can cut property tax and we can keep government growth in check kind of like living within our means at home. [applause] my top priority and that of all nebraskans is our kids. it's our kids. we all agreed they are our future and that's why today in proposing the creation of an education future fund. with an investment of $1 billion in fiscal year 23/24

valuation is essentially the cost of the work. the next slide we have here--so, in march of 2023, one permit application was estimated valuation of 5 $5 million or more filed with dbi. this application was for 126 unit affordable housing development at 3485 cesar chavez street and the estimated valuation on the project is $51.4 million. and last month we issued one high value permit with valuation of $23.5 million. this permit was for a significant expansion of university high school at 3150 california street. next slide, please. and lastly, dbi finaled four high value projects. these completed projects have a construction valuation over $78 million and they added 108 new housing units. one of the projects was a 108 unit affordable housing development unit at 500 turk. another is office tenant improvement splaning 7 floors at 1 maritime plaza. thank you. that's my-- >> thank you. commissioners have any questions on that? next is 9c, update on dbi finances. >> good morning commissioners. alex, deputy director of administration. can

in certain places i think what i like about what kevin said is he is looking where valuation is high, but momentum is still strong, like a microsoft, like a mcdonald's, and he's saying listen, i'm going to write some covered calls against those because i'm going to get some downside protection out of that if stocks trade off, and by the way, i'm going to get a little premium in my pocket if we keep going that is what they have to do when i think about, you know, tech, not all tech is created equal. and i know it trades in communication services, but meta is a stock we picked at year end because of fundamentals, because of drastically and dramatically changing fundamentals. where they were able to outperform expectation driven by a combination of a focus on their core business, right, and a reacceleration in operational efficiency as a result ad spending coming back gave them huge operating leverage and that's allowing the efficiency theme to play out, but remember, it was a cheap stock. with microsoft, they have to execute flawlessly flawlessly, right? where as there's a lot more roo

the valuation be?lf before, what do you do without berkshire hathaway in there? you don't hold support you are not even close it's 12% of the xlf. you should know what's in all of these things and i just think banks are going to be range bound. i don't think there's any way they can rally through this, especially -- we still don't really know what the securities portfolios look like, where they would have losses. they don't have an obligation to report them, per se, or, you know, maybe some of them will. this is a chance that some of these guys can point out that we're inviesting in aaa treasuries i just think the credit dynamics that i think we all talk about that have yet to really hit, i think regionals are more exposed than anybody we're talking about a world where there are credit problems that come from the consumer and smaller companies. that is where they are exposed and that's where people that were shorting regional banks before they even knew about svb, or those same guys are the same kind o

valuations have gone up but they've come down from 21 times last year. >> they need to be supported, though, by earnings. >> if we want to jump away from that, i will bet you that earnings for 2023 don't end up being as dismal as expectations could be and i think that as we get into the next three and four months, we might see expectations for 2024 start to solidify and that's where you said you need a base to work off >> based on what i'm not saying they won't. >> you have material costs coming down. you have foreign exchange working in favor you have china reopening you have supply chains normalizing. you have some wind at the back of earnings, but then, really, you take that idea what's going to win out what's going to be good news where are the currents going to hit and where are they going to end up i'm starting to -- i've been pretty negative, i don't know, for a year and a half now, and i'm starting to feel okay. and part that have is because we're seeing yields come down. with the ten year at 10.3%, suddenly stocks become attractive >> but yields are coming down for the wrong

in 2022, valuation was a big risk for tech.ech earnings weren't bad last year, but the valuation started the year so high, so that's where you have to be very cautious that quality at any price doesn't work >> so, would you be a fader -- there's the xlk, right we can show it again we're looking on the screen. that's the tech sector etf it's up better than 20%. there it is. 21% year-to-date, reflecting the move we've seen, which, by the way, you can really boil down to essentially five stocks, give or take a couple. >> exactly i mean, the market's been extremely top heavy, and so if you do remove those stocks, you do see a market that's trading at less of the multiple. even the equal weight s&p 500 is trading at about 16.5 times. that's near the prior high in the pre-pandemic ranges, so it's not as stretched as tech is, but it certainly speaks to this big rally we have had-yea year to d has all been multiple expansion. >> people are wanting to know if the rally can continue or not, whether seasonality is enough of our friend, so

we are hearing of some companies that have cut valuations i maybe try to raise them again.acart is in your portfolio. what you make of companies having to realign the benchmark of how you value them? >> i would say generally, the four of ninea or in --409a is something they utilize to create a price to issue stock options to new incoming employees. initially when startups start doing that value, they do it typically about once a year. then as a company grows and it gets closer to a formal exit event, that valuation and that 409a is typically done more than once a year to two or three times a year. that means a company like instacart might be doing there valuation reporting based on the reports we are seeing a lot more than once a year and at that level of frequency. with that said, we expect companies who experience high-growth in quarterly increments for even in have here increments to see that fluctuation as material things and milestones happen within the company. i would expect we see that kind of gyration across maine of the later stage startups that are doing more fre

you have elevated valuations and expectations for weaker relative growth for tech. i think as we get in earnings, investors are processing that and pausing and saying, look, does it continue to make sense in an environment where the macro is questionable and where we have elevated valuations, and some questions ate the relative growth. >> that's the broad sort of 50,000 foot view let's bear down on a couple of stocks that you follow that are very popular in a lot of people's portfolios and probably own them if they own mutual funds and certainly own them if they own index funds start with apple and your thoughts there. >> sure. so apple is an incredible company and has a, you know, a dominant consumer franchise. as an investor articulately said, they have a monopoly on the most important thing or nearly the most important thing in most people's lives and that's a pretty powerful franchise. that said, if we look at apple's valuation, it's trading at about 28 times this year's earnings. the market is a little bit around 20%, so we're looking at a 40% premium, which is

i think you have to look at valuations, right?ugh to where you can overcome some of the things that, you know, maybe history says aren't all that great, fine but you're trading right now at almost 20 times peak earnings, so you have a market that's still counting on 2023 coming in around 220, so bringing us right in line with last year you still have the market paying close to 20 times on that peak earnings number. the tricky part is there's no margin for error in this market. >> so, aside from preferring fixed income at the moment, within the stock market, are there places to get some shelter? >> i think you can still participate in the larger-cap, higher-quality areas we like tech, energy, and health care, so some of the pullbacks in tech and quality is an opportunity. we took it from a most unfavorable to a neutral we think as the year progresses, people will view especially developed markets being just as high quality but trading at some really nice, attractive multiples. i go back to what i said a few minutes ago, if you can

one valuation skyrocket, they have little impact. when a levee is kept but valuations increase, the cap does nothing to stop overspending. our valuation system of our property tax is the problem and it must be changed. a first step is addressing valuations of cultural land. the market value of this land goes up almost every year. creating more and more government money for government. and it is spent, simply vapourizing into thin air before our very eyes. all without any regard to how much actual value the land creates for the family or farms or ranches. that is totally wrong it needs to be changed. by changing this from market based to income based assessments and capping a gland devalue growth, we can cut property tax and we can keep government growth in check. kind of like living within our means at home. my top priority and that of all nebraskans is our kids. it's our kids, we all agree, there are future. that's why today, i'm proposing the creation of an education future fund. with an investment of one billion dollars in a fisca

>> mel, it's really all about valuation. tim just framed it in some of that, some of the move that it's hard. it's surprisingly not as its peak it hit its peak back in november of 21 with the rest of nasdaq, so, it has been around 325, that's kind of where it's peaked at but so, this is a really tough position to be in, because we've seen this before, companies that fundamentally are doing all the right things i just want to quickly go through the right things they're doing. this is about as good as you get when it comes to a company that has a pole position in the i infrastructure of ai ai is going to have some hype initially, but ultimately, i think, there's going to be a ton of substance in the decade ahead. and it's not just the excitement around nvidia. tim hardware talked about their ecosystem, 400 ai models they give away to developers, but they have to develop on top of the nvidia hardware. and so, that is the fly wheel. and it's hard to imagine that that fly wheel -- i would say this, is that there is a potential lo

the movement has been about valuation expansion.ur market models suggest valuation expansion is dependent on the rate of inflation and interest rates. to me, the equity and bond market are telling you the same thing. they are telling you recession is coming, but recession is going to result in much lower inflation pressures and a reversal in fed policy rates. from that perspective, maybe they are both wrong because inflation is running hotter than anticipated. the fed is yet to signal a backpedaling. that is the risk at markets at large. alix: basically, they are both saying the same thing but what they could be saying is wrong. this data proves that, the inflation is stickier. michael: what she said. [laughter] the problem is, the fed is taking things month by month and meeting by meeting trying to figure out what is going to happen with inflation growth in the economy. the markets are trying to figure it out on a five minute basis. they react a lot more than the central bankers react. they are suggesting that we are going to see a

hey professor, subscriptions are down but that's only an estimated 15% of their valuation.o you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. dude, what're you doing? i'm protecting my car. that's too much work. weathertech is so much easier... laser-measured floorliners up here, seat protector and cargoliner back there... nice! out here, side window deflectors... and mud flaps... and the bumpstep, to keep the bumper dent-free. cool! it's the best protection for your vehicle, new or pre-owned. great. but where do i---? order. weathertech.com. sfx: bubblewrap bubble popped sound. you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire "halftime report." i am contessa brewer top g7 diplomats vow they will take a tough stance on china's increasin

i think on the valuation, it's where the concern is it trades out 42 times next year's earnings.and a gm are at seven and five times next year's earnings. and i think it's just -- eventually it's got to become closer to that >> tesla options far and away the most active in the market today. mike khouw's got the action, it usually is, mike, but what did you see today? >> yeah, it usually is, number one. it actually wasn't two days ago when we highlighted some bearish flow ahead of earnings it was very busy yesterday, but today was far and away the busiest. traded 4 1/2 times as many contracts as the second place, which is nvidia. it was more than 4 million contracts, in fact, in contract terms, it was the second-busiest option out there after spy unspur unsurprisingly, the flow, the sentiment, was generally bearish. much of the activity we saw today actually expires tomorrow, but when we look further out to the end of next week, the flow we were seeing is a lot of activity in the 160 puts, almost 55,000 contracts there, trading for a little over three bucks a contract those buyers

>> well, lower -- clearly as tim pointed out earlier, big cap high valuation tech, which apple is, by the way, is a fight to quality is what we're seeing over the last couple weeks when banks are a scary place to be, people want to go to balance sheets valuation is slowing growth. that's been the story about apple over the last few requests regardless what people want to believe, if you look at the number things are slowing down and the valuation tends the get lower. so lower lows, higher highs, makes sense taking profit. >> every other mega cap tech stock, depending what they did afterwards, but the numbers were such it was a relief week. interesting, apple's report so much later than the rest of mega cap tech not sure why that is we usually get them the same day. apple is sitting mid next week put my carter hat on, on a relative basis to the s&p, we're back to the level it's been a couple times on a ratio chart where i think you run into resistance, and outperformance of the s&p 23% over the last four months is heroic, and it makes sense. we know why, and a lot of that came after sv

the relative valuations is three times their peers.o note is in an environment where oil prices and energy costs have been rising, and that has benefited the overall category, i don't understand how this company cannot make money when everyone else in their sector is making money in fact, also the revenue growth is negative 10% when the rest of the category is averaging plus 50%, and their ebita growth is negative 100% when the rest of the category is up 40% so, the fundamentals do not look good they cannot make money i would say it's a sell for this reason >> ava ados, we'll leave it there. thanks for your time >> thank you >>> coming up, ryan reynolds busy weekend, a soccer championship, and a potential snag for his mint mobile dl.ea all the details when "power lunch" returns mountain? a tree weathering a storm? (thunder) lions? nope. (lion rumbles) we do it with our people. welcome to the place... where people go to learn about their medicare options... before they're on medicare. come on in. you're turning 65 soon? yep. and you're

shery: is em valuation -- when will em valuation get cheap enough, and how do you gauge that?e metric that you follow at goldman sachs? caesar: we become more bullish when valuation comes in line. if i were to predict it, the way that i like to calibrate these things is on growth differentials. that is why we pay a lot of attention to these revisions. unfortunately, growth differentials have moved against em. basically saying that, the u.s. outlook consensus has moved from thinking about a recession to a soft-ish landing, or a positive level of growth. the chart in front of you -- -- normally people would say that em looks cheap relative to higher growth levels and so on, but it has really come from underwhelming growth coming down to em valuations. are estimate forecasts some improvement into 2024 and 2025, but i am quite skeptical on the near-term performance title for em. very importantly, we should recognize that the global economy is still fairly fragile. we think the u.s. will have a soft landing, but we are talking 0.6% growth the next couple of quarters. we think the s

>> it's trading at a very high valuation, mostly relative to the s&p. some of that may be justified because nasdaq has a lot of tech stocks in it which has earnings durability to the downside you actually get to participate, though, in the upside. should valuation trade at a higher premium that's the question that raises the issue of vulnerability if the fed delivers on more interest rate hikes. >> if that's the question, what's the answer? >> numbers, they ripped the band-aid off the new safety sector. green life for tech, especially the set up -- >> undeterred by the fact that mega caps are up by pinminimum f 20%. >> fang could still be up 15 to 20%. i think we'll look at earnings and think stabilization happened and still underinvested. >> nicole, do you look at the nasdaq as being vulnerable or not? >> very much so in that it seems that investors are looking through earnings contractions in 2023, looking for a strong recovery on 2024 and are paying high multiples on value earning numbers. we're starting to look at some of these more cyclical names w

netflix is close how big of a factor is valuation this quarter >> it matters a lot.se bleeds the last couple years that although they have come down quite a bit and now starting to rally again, a lot of the earnings are just so high that it is hard to justify the cost and see the growth. there is a recent interesting morgan stanley note which is rewarding big tech for layoffs and cutting bloat during 2021. the reality is they held steady. we may see revenue fall off the cliff. cloud kpoocomputing is slowing . there are problems under the hood for companies as that companies, it is likely there is a lot of room for the stocks to fall further >> we have to talk about a.i you have your finger on the pulse in the bay layoffs. in the year of efficiency or quarter of efficiency, what defines the quarter of reports is it a.i. or is it cost cutting and work force reduction >> a.i. sounds great it is slick and fun. if you use google as paid office product, you use chatgpt competitor they send emails nonstop at the end of the day, companies are still burning more money than ma

that means that the story is about adjusting valuation. that would not be coming at a lower rate. >> what about external threats to the trajectory policy. stability or lack thereof of some parts of the banking system as we all watch first republic or the ongoing question around the debt ceiling and whether or not it can be raised in time? how do you factor in that, and it could affect the rate outlook . >> there is a big disconnect to the point you are getting at which is you could have a scenario where it deteriorates to the point where the fed might be tempted to cut rates, but that scenario could unfold if we were to see a tightening of credit that is outsized, and there are reasons to believe that this cycle is heightening since the 1980's and could create more cracks than we have seen so far it that is a scenario where the fed would be cutting rates and one where the backdrop would be deterring to a level that would be by itself a devaluation of equities. it is difficult to -- either rates don't come down with multiples, or we have a

the valuation is not crazy cheap anymore. lost two-thirds and you've taken a lot of that back but to me, this is a really important time, and china gdp the other night, better than what we expected and brokers are talking about where macao jgr will be where it was pre-pandemic, you stay in the stock. >> all right another earnings alert ibm shares higher after posting a beat revenues came in below expectations frank holland is listening in on the call frank? >> melissa, artificial intelligence and ibm's experience using it in enterprise and business, that was the focus of the ceo's remarks. he just wrapped up and he wasn't shy about dropping the names of headline customers like the boston red sox and the cleveland clinic that was really the story of this quarter consulting was in line i'm expecting some commentary about the global demand for consulting this after some layoffs. so, during this so-called year of efficiency in tech, ibm raised free cash flow guidance, that's a sign of real confidence, especially with the $300 mil

we are trying to see a row rationalization in valuations. some may argue there is still room to go there but when you look at the peak of the markets in 2021, private valuations are 3.5 times more expensive than the nasdaq on average. you saw some companies raise the aar or even higher than that and valuations have rationalized. great businesses and valuations making a lot more sense and we see a lot of opportunity. ed: i think you and i try to get a more global perspective as well. not just which sectors are more interesting also geographically rated debates about china, the middle east. caroline: i think that is right. perhaps when garnering a little emotion is twitter. i am interested of global allocation of money. where are the evaluations the best? >> it is a great question. the reality is there are great opportunities globally as it does not always come down to valuation. a lot of what we are focused on is what is the total addressable markets for business? what type of problem is that business solving? do they have a real, durable com

alix: is a valuation or is it fundamental? what is going on.eynep: at this point now that we are just starting with the earnings it is important to see where we will end up when we are looking at the pretty earnings announcements. there is 80% negative earnings numbers that are being expected. will it be that case or not? it is important to see. the backdrop we are able to see with this stress in the banking sector has impacted the sentiment. having a bit of a recovery from there until now has been great, but we now look into the future, core macro. core inflation is still elevated. ecb is not coming up with saying we are done, no more rate hikes. i think they will continue with the rate hikes. it is not a negative view on europe but we have already performed really well in the european equity market. there might be more upside but it will not be too high. dani: do you think investors are being complacent on the likelihood we get persistent inflation? zeynep: i do not think it was complacency but more week by week month by month data view. when

hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back. >>> welcome back to "options action." small caps having a rough couple of months. the russell 2000 underperforming the broader market and on pace for its second negative month in a row. our next guest has a way to play the group if you think the small cap carnage will continue. kevin kelly joins us now to lay out a trade. w

united health, not really beaten up but valuation was low enough. maybe i get another chance to add when they report, and i have no idea what the quarter will be, but it's a perennial compound it's not a good time to buy the pe stocks -- >> you are talking about a six-month time period? is this the late '70s where the market gives you 4% and inflation runs at 9% >> no, and i will tell you why the inflation will stay high and the fed will keep hitting the economy, but you have to completely have a different type of investment groups looking at the market, and so it's going to put a floor into the market because stocks don't get cheap enough and they don't buy it however, i can't tell you what they are going to do, but i can tell you the economy is weakening, and to have the market at 4100 and stocks at this level, it makes no sense. >> kerry >> i think we are all saying a version of the same thing, which is 4100 is not cheap for the market we are not selling at those earnings, and selling it at 18.5 times this year. however there are parts of the mar

it impacts the cost of capital which impacts valuation.is really interesting to see a raise where the valuation has gone up because the backward looking data shows that v has had the brakesc. that chart tells the story. dani: the magic of tv. [laughter] it is also fascinating this has debt. even before svb's collapse it was difficult to try to get debt from a bank. not one of the most major banks in silicon valley is gone per what you make of that? ed: i will point out the bloomberg reporting was according to a source and they did not say what the portion of it was debt. but venture debt was more commonplace among startups of all sizes perhaps ban people appreciated. in the case of svb depositors took other services from svb's other arms, including its venture arm through venture debt. but it is an option. when you think about the terms a founder is presented with debt and not giving up as much equity is an interesting option. alix: before we let you go, let's be honest, everybody is talking about bobly. ed: the tech community talking abou

the privatization organization of the country, referring to the beginning of the operation of valuation and production of surplus properties , announced the identification of more than 3,800 properties. one of the most important obstacles to the implementation of this plan is more than 3,800 immovable properties that have been identified in different provinces and the work that is being done in the stages of ownership stabilization, value addition , valuation and productivity methods that are used to promote half-finished construction projects at the provincial level. the most important point of support in this plan is the special support that should be given to the decision-makers and the special powers that should exist. it should open up the space for immovable property. in fact, it should be given to the private sector . a dynamic economy and the people were confronted, the ministry of silence says that the preparations for the operation of two new writing paper production units have been completed, and with this measure, a large part of the country's needs will be met. according to

valuation is essentially the cost of the work. the next slide we have here--so, in march of 2023, one permit application was estimated valuation of 5 $5 million or more filed with dbi. this application was for 126 unit affordable housing development at 3485 cesar chavez street and the estimated valuation on the project is $51.4 million. and last month we issued one high value permit with valuation of $23.5 million. this permit was for a significant expansion of university high school at 3150 california street. next slide, please. and lastly, dbi finaled four high value projects. these completed projects have a construction valuation over $78 million and they added 108 new housing units. one of the projects was a 108 unit affordable housing development unit at 500 turk. another is office tenant improvement splaning 7 floors at 1 maritime plaza. thank you. that's my-- >> thank you. commissioners have any questions on that? next is 9c, update on dbi finances. >> good morning commissioners. alex, deputy director of administration. can

they really have been executing, but it does seem rich valuation wise. >> yeah. what does the chart look like? >> we talked earlier about hiding wrappers from sausage mcmuffin and eggs and things like this. but any way, to mcdonald's itself, the chart, the temptation i think -- and to some extent we heard why, maybe it's a little overdone but it's one thing when an individual stock is overdone, but the group is so strong yum is making new 52-week highs, darden, chipotle this is an important circumstance on the screen here, switching subjects, mcdonald's has lagged something like domino's. domino's is up triple what mcdonald's is. mcdonald's, since its ipo, this is one of the steadiest performers in the busy only real drawdown was in the financial crisis my hunch is to actually stay long mcdonald's. >> do you have a drawer where you put these wrappers or take the stuff in your briefcase out of the house and dump it around the corner? >> this conversation was like, if you just happened to did a drive in and then your wife just happened to get into the car, there mi

what did you make of what he said that these valuations, you know are maybe aren't as stretched as theyon paper? >> i think that he brings up a good point people will tend to pay up to growth if you are looking at multiples in the 20s, not talking about the 70s or 80s, that could be tough, but at 28, a little pricey 26 for apple, a little pricey. but not unbelievably price y. and love to talk about ai. so expectations for microsoft and all these companies have a low bar and we'd expect them to beat but we have been trending along the way and i think that at some point you may get another opportunity to get the stocks a little cheaper but i'm not trying to time the market we like the position long term and certainly a high quality name for us. >> and interesting week for a crude. an 8 handle on crude oil back at 77 chevron, how does it look for you? >> they have been weak, but anything over 70, 75 bucks, they are just printing money. and this is not a stock that will mistakenly go into cap ex-and start spending like crazy. they are committed to dividends, dividend growth and shareholder

what it was about at the end of 2022 was falling victim to the tax loss selling you saw and the valuation reset for a lot of the mega caps. this is just a reaffirmation of a very strong fundamental company that focuses on the cloud, and it's difficult to find a triple cloud stack like they have when you think about applications, platforms and infrastructure and i think that's all being realized in the earnings report and the reaction to it this morning. >> joe mention add re-acceleration in azure growth, jenny. do you think we need to have a re-acceleration or just need stability in sort of stable growth here? bears will say that an environment where we are entering a possible recession be it mild or shallow, whatever you want to call it, we have layoffs coming still down the pike, but that's not a place where we're going to see a re-acceleration per se >> the problem for me with microsoft -- and i don't think i'm the one you should listen to it because i'm wrong i've been wrong the whole time in not owning it the problem for me it trades at 27 times next year's earnings. when joe says th

it got a upgrade from ubs saying valuations are really attractive.ere concerns about performance fees, but at the moment all of that is baked into the picture. again and upgrade. also looking at veolia. this one comes from deutsche bank saying in this space, earnings are going to be improving. it is trading higher by 1.1%. finally, we have been talking a lot about eb's. -- evs. this is an upgrade from deutsche bank showing there is more demand for electric vehicles which might be more confusing considering some of the elon musk and tesla stories we have heard that perhaps demand isn't as robust, but deutsche bank sees it as robust. there needs to be more ev charging stations. alfen is a company that makes them, so which a bank gives them an upgrade saying it's going to be doing better. up almost 3% today. one more that i want to mention is lvmh. despite the individual stocks that are higher, it really is luxury that has been powering your. alix: there was a great story, the luxury fortune of the big guys like lvmh and chanel jumped $93 billion on the

that could weigh on the valuation.to tango and sometimes more but who could buy mirror? we mentioned the changing habits for remote fitness and working out at home and a lot of companies are challenged right now so peloton makes sense as a buyer but they don't have the money given the challenges they have. tonal is another company and they switched out their ceo and cut their valuation so it's kind of unclear if there is a strategic competitor out there that can by this. potentially private equity with loves to look at unloved assets to see if they can do a turnaround. i would imagine the investment bankers working on lululemon are casting a wide net to find a potential buyer. ed: very quickly, do we have a timeline on this deal? >> at this point, it's pretty early. we know a bank is engaged on this so i would say probably a few months from now but it's hard to say with deals. lululemon can always hold onto the asset if they don't get what they like. they might just shut it down or do something else with it, we will ke

valuations.resting because one of them has to correct in the public market valuation don't have much lower to go in some cases. alix: you think the private would be overvalued, the public not yet. ankur: in some cases you will start to see an m&a wave occur whether it's an energy or intact , software. i do think we will see some activity. alix: i think were starting to see around the edges. we really appreciate it, ankur crawford . southwest airlines has requested the agency to pause its departures due to a tech issue. that has session lows under 2%. goldman sacs missing out on the fixed income bonanza. we will get more analysis from devon ryan from a jmp securities. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a par

the company is trading at a slight discount to its own historical valuation, much more material discountthe group the bad news, the company has stumbled a little bit. we've actually seen earnings disappointment the last three reported quarters. another thing, this has kind of been fairly dead money, i think carter can probably speak to this you haven't seen a whole lot of progress other than the dividends you've seen over the course of the last six years that said, i am inclined to play it to the upside we own the equity. if you want to play it with the options, i think a simple way to do that, at relatively low cost would be of buy a relatively tight call spread. may 235 and 245, you could spend less than a quarter of the $10 difference between those two strikes, spending $2.35 to make a bullish bet. risking -- in case this quarter turns out better than the last three did. >> carter, six years is a lot of coronas. >> for somebody. >> mike characterized it so well basically this is one of the great winners of all time. it's made no progress. like it was in 2017. what you see in the chart