and i think between those two things, that really puts pressure on market valuations in total, which are at record highs, and tech in particular which is the highest segment within that. >> mike wilson at morgan stanley said market has been slowly pricing this in over time. and argues again for a 10% to 20% correction from the highs which i think you think you're pretty much in line with, right? >> yeah, i mean, i really do i hope it is only 10% to 20% if you look at valuations, we track about nine different measures, and the one that we like the most, which is market cap to gdp, market cap on the entire stock market, that is about 1.9 times. the peek during the tech bubble was 1.4. and over the last 50 years that is 0.8 so valuations, seven out of nine metrics we track are in the 90th percentile to 100th percentile in the case of market cap to gdp. it is hard to make a case that this market doesn't have a lot of risk priced in, because of those multiples. we hope it is 10% to 20%, it could be a lot more if unemployment comes down the way we think it could be and forces the fed to ac

i understand fundamentals are fundamentals and valuations are valuations but are we missing something? >> again the analyst community down graded imax too you have a dynamic here, look, capital market dynamics are very powerful and let's also be clear institutional investors are very much voluntaried mudry capital made $75 million on a major, major stock flip you've seen it from all sides. capital markets dynamics to the extent a balance sheet can be improved, whether it could be cleaned up is a different story. we applauded at $9 at a share raise, why not yesterday into today. you have a case here, yes, it's all good news for the company but hard for me to argue with what's been said interest expense simple significant for these guys still significant for these guys what kind of cap x what is the story tomorrow being optimistic buying a theater or two and taking a leadership position in small eraddressable market even with theaters and things i'm sure disney will do but no, we are not missing the fundamentals. >> i agree, to dan's point, the business model was broken. this maxed out

you do not have the same valuation opportunity. we do not see valuations versus the s&p. that is important. we did see -- it was not just about the secular growth narrative. what you think about the fundamentals, fundamentals are fine but they are just not all that special. that is when i go back to this idea of a high economy. we had an economy that ran cool for quite some time. that is the environment that secular growth does well in. looking down the barrel of 6% or 7% gdp, getting back closer to average in 2023. it is not the same kind of post crisis environment we had back then. these secular growth names are not that special anymore. jonathan: you are special. we love catching up. we start happy on monday and progressively get worse during the week. lisa: this is a happy jonathan ferro. jonathan: we had -- 245 on high-yield debt. lisa: that is high-yield, not so much. why not just buy stocks? tom: the number of the week, lobster roll, $39. that is the statistic. lisa: triple leverage lobster rolls. jonathan: are you broke already? tom: i did not get 8000 shares of g

high valuation high growth names.s is important from sentiment standpoint, it's not about name stocks, it's about companies that will change the world, that's what she thinks will happen but high valuation. >> again, it all comes back to interest rates so does this trade, grasso? >> it does when you look at the chart i was looking at the 50-week moving average and is the same as the 200-day moving average 10 it's stagge so it's stagger there right below and playing games, it does this a lot, it does look set up to fame but fail to fail. if interest rates move lower you will see the bids dan pointed out. >> do they fit on the bar bell you. >> i think you can you have names like square that will do well going forward we think they'll do well like the credit cards will do well as part of the reopening trade. you have volatile names like tesla we don't own, we don't want to own it, you have to be careful, it comes to down to rate if we come to one and quarter on ten-year and it stays there then this is the opportunity to

>> docusign, valuation is ridiculous, will probably trade 100 times next year's numbers.those secular trends that's not going away soon i understand the concern about valuation. i'm fascinated to see how it reacts post-earnings, i think docusign is worth a look here. >> yeah, james >> i like crowdstrike. this is a company that's been on fire throughout the pandemic and coming out of the pandemic with a good business plan, solid management team and growing market >> grasso? >> lulu lemon, people are putting ands back on to walk around the office, so much competition, declining trend lines, interesting to see what they actually print. >> steveo you put pants on one at a time. >> not today. >> people actually -- -- >> carter uld come on the show and talk about his abc's, i was going to mention lulu too, i think the consistency of the brand is more an just i covid fenway phemenon, they're expected to do north of 68% growthevenue, the valuation doesn't make a lot of sense, i think they'll trade to the upside, the stock's been trading side ways looking for wayso break higher. >

taking the company's valuation to $4.2 billion. soon companies in the crypto space raise lots of money doubling, tripling valuations in the private market but still questions over how public market investors will value them coin base down over 50% do you think that money and valuations is more flush in private markets than public markets at the moment? for crypto companies >> so i think that is part of the trend of course, but i think that one of the things that is very important to look at here is we're different from other companies in in b 2 bsas softw service. software built on top of our data platform. and that helps inform government agencies and other public sector institutions in 150 countries worldwide. and 30 countries worldwide 150 of them. and we also help on the private sector side by selling data from our data platform that informs the markets. so some of the stories we just heard about ether and so on, we can help and predict and inform and terms of trading advice. we are selling data that tells you how the market mo

software is a generally high valuation sector. on average, let's say, if the software universe is trading at times, cloudera was only about four times forward sale. i am not saying that these couldn't go private, but i am merely mentioning the valuation. dropbox trading at about five times. so, you know, what happens in the private equity world is you look at these valuations. they are agnostic about a lot of other things, but when you have a relatively low valuation compared to the sector and interest rates are so low. alix: within the market, how does market share shape up? there's a lot of players. sonali mentioned it snowflake. who is in the lead, how did they get there and what do they do now? >> snowflake is trading at 50 -- 15 times forward sales. that is massive compared to cloudera's four times. in software, when you have one or two market leaders, in this case snowflake or amazon or microsoft, but then you have dozens of other companies that do one specific function, whether it be sector specific or function specific. no

right now, but at least justify a higher valuation.o perhaps -- i know we'll talk about this -- a scenario in which amc is able to use the capital its using more m & a have more pricing power perhaps for a monopoly carl, you spoke to be the ceo saying they're not for sale. i wonder there's always a price isn't there? what could amc do with this money to at least go some ways in justifying this valuation >> yeah, yeah. also making a point they have known each other an awfully long time speaking of valuations on amc, pleased to bring in nyu school of business professor at the dean evaluation talking about what it might actually be. welcome back great to see you >> good to see you, too. >> so lots of people are running all kinds of numbers for the time when fundamentals matter again which is obviously not right now. but you're talking about, you know, depending on your forecasts for box office, maybe $4 billion in revenue. it would be selling at ten times earlier in the week. what is a fair price >> i think that at the moment there is a f

that's a precarious situation when the valuations are at the level that they are. the one thing i'm looking for that we'll talk about later in the show, but as you look at oil because even though oil is not in the cpi, it does filter into inflation expectations, something to keep an eye on. >> buy concerns a big issue and remember morgan stanley, that could be the hick on in the rally back guy adami where do you see the best opportunity we talked about airlines being jammed up, that doesn't necessarily mean those are the right places to be >> no, i don't think so. maybe the opportunity is buying the retailer who sells the slick vest that tim has on and i'm sure he's tethered to the desk so he can't go over and hug you. >> i mean, we're back five minutes. >> i apologize, i do wish i was there, i'll be there soon enough the way tim talked about it, banks make a lot of season premiere blac sense. blackstone probably best suited to handle everything going on. the retail trade is back on the horse, cleveland cliff, free port, steel, you stay there, and caterpillar withi

it is interesting, now that it trades with a growth valuation and jeff was there and tim was there andwere surprised that earnings release the stock was trading 138 and we collectively said this is interesting price action but you mentioned down five out of six weeks three good days an it is right back to all-time highs. >> the 121 level important for the stock. but who knows, because $220 billion in cash and a few other levers they have to pull, there is reasons why this is as solid as dare as i say bulletproof of a company and while we pulled forward a ton in terms of holiday spending and the laptops and the kids staying at home and new ipads and what not, i think this 5g refresh that is going on out there is something that we still haven't really come to proper terms with and i think it will continue to drive the stock. >> think about this, guys, the apple services revenue is probably going to be close could $60 billion soon facebook total revenue is $85, $90. apple's second business, their back-up business is bigger than most s&p 500 companies sales it is opportunitying how big it

they still trade at what i would consider to be a decent valuation.d say real quic about rh, yes, the multiple looks high but when you look at the forward multiple and the kind of growth they've had going into the whom thing, the multiple is closer into the 30s. it is a little more palatable when you look at it from that perspective. i think we all missed this one unfortunately, because when you look at restoration hardware and what they were able to do, it fit perfectly into the conditions we found ourselves in and to josh's point, those roof decks, those are some of the best places to eat you can ever be they're doing everything right >> yeah. yeah, they seem to be for certain. pete, thanks ask halftime is coming up next section questions in by video, we will play them on the air e-mail us, askhalftime@cnbc.com. we'll do it next folks the world's first fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride! i invested in invesco qqq a fund that invests in the innovators of th

valuation is compelling. valuation i think for a company like goldman. a premier product. you've got the investment banking piece is working very well and the fact, you know, they're going to be a major player in the crypto market. i don't see it as not a lot alike in the financial sector. the yield curve screams financials get involved i don't care how you do it, even in etf >> and you've got -- by the way, a little bit of everything is a great group dawgs. i've posted that on my instagram. finally viacomcbs, what are they doing right? >> look, paramount has one of the finest film libraries on the planet we've seen the appetite for streaming assets you you and i can debate what the multiples would be at ten times earnings i would suggest you're getting the streaming assets for month ago >> another dawgs line, most people don't talk about how lucky they are we're lucky to have you,david nelson of belpointe, thank you very much. viac viacomcbs. goldman sachs, i post songs on the gram if you care, you mhtinig f

the final valuation could change depending on the price of bitcoin.afee has been found dead in a spanish prison cell shortly after it was announced he would be extradited to the u.s. to face charges of financial crimes. the creator of antivirus software has been in jail in spain since october. the spanish newspaper reported that he appeared to have taken his own life. global news, 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. manus: thank you very much. a little more on the economic forum and a conversation with the blackstone ceo steve schwarzman. he says the risk and that gains tax has led to explosive growth and potential targets for his alternative investment firm. as corporate owners seek cash ahead of the legislative changes. >> we have been through these periods of higher multiples and at least leads to a certain type of caution but it also prevents -- presents a lot more opportunities because prices are higher and more people will sell. what

for a guy that's not quite as high-growth stock valuation a verse as karen, but i do care about valuations a lot, and i think this is a case you have to pay up. >> two things here gross margins for most corporations in the u.s. are at all-time high and taxes at all-time low so there is plenty of opportunity to invest in the security apparatus and avoid high profile iwundus, you mentioned target, i'm sure plenty of companies figured it out yes some companies trade at ridiculous multiples, palo alto growing 27% per year, we know there will be demand for those products for years and years so there's plenty of places to play in traditional metrics may seem expensive but enterprise software trading 7 times the outyear sales seems reasonable. >> good point. another layer we want to talk about, the use of bitcoin to pay the colonial pipeline hackers sending crypto prices plunge ago cross the board, will this be a problem for the industry let's bring in executive director of the blockchain a t.j. oshie iation the blockchain association, thank you for being here you don't think getting the access t

they are struggling with valuation. that creates downward pressure we told people if you want to play defense, you need to think about valuation here we like something like health care in the short-term which is giving you really tremendous valuation appeal at this moment in time. i'm wary of technology which has become the second valued sector in the s&p 500 i will tell you investors care about valuation in the way they did not in the past. you have to take that concern seriously. >> maybe not the meme stock investors or crypto areas of the market lori, i wonder from your standpoint, are there any tea leaves that you look at or leading indicators that you think could signal things as we talked about transportation stocks and companies doing that thing. we talked about semiconductor stocks being an indicator. are you keying on certain industry groups that say you should pay attention to these? they could be a leading indicator? >> i would say, you know, we always watch the banks closely after the fed announcement the ot

the first is valuation.ok at price-earnings ratios based on projected profit for the s&p, tsx composite, and the s&p 500. when they ran the numbers, you find out that at the end of last week, the s&p tsx based on projected earnings had a 23% discount to the s&p 500. you go back a couple of months, you were talking more like 27% and that was the biggest going back two decades. there is a valuation piece and there is also the economic argument. if you buy the idea that we are getting a period of global expansion, then canada, at least in bank of america's view is in a better position to benefit. given the kinds of industries that are traded publicly, think about energy companies, mining companies, that is the other piece of the puzzle for them. it is valuation and economy. amber: tech is a relatively smaller portion of the canadian index relative to the u.s. if we are going to see that our performance in the value sector, which seems to have toggledd -- paused lately, part of the thesis -- is that part of the

i'm comfortable with those i'm comfortable with the valuations i look at something like a facebook you back out the cash. these are really value stocks. i don't think so much about rotating into value over growth or one over the other. i'm not good at picking trends i'm he not good at jumping on the sentiment. i just want to own the things i think are good a lot of these faang names are good like that maybe they went briefly out of favor. i like them. i'm going home long. >> okay. guy, what do you make of this move in microsoft, $2 trillion that's an elder states men of the group. >> guy's an elder statesman. >> a number of times you've said -- by a multiple unfortunately. it's better than the alternative, i guess in terms of microsoft, we've said it a number of times. probably the most important country in the world that's true. it's deserved of that market cap. we haven't waivered on this name for the last couple of years it continues to grind higher you have the growth. by the way, whatever their ceo seems to put his mind to, they're successful at, number one. number two, tim is rig

this is obviously a company that has indeed grown well into its valuation.roblem using a trade like the one in adobe is because the share price is just under $3500 where it closed today so will the options be expensive. so we're trying to identify a trade structure to make a bullish bet without an enormous outlay of premium. it won't be cheap because it's not a cheap stock but maybe we can make it cheaper. i'm looking at august 3650, 3850, 3950 broken wing call butterfly. buy the 3650 calls selling two of the 3850s and buying one of the 1950s. when i look at it the total outlay would be $31.40 a share $3,140 to put the whole trade on to get exposure to 100 shares worth. that's less than a single share of amazon stock. that doesn't mean necessarily that the risk is comparable to owning a single share of stock but is a way to reduce options to reduce the outlay to make a bullish bet. peak profits would be achieved if you hit $38.50 short strike reason you use broken wing call butterfly instead of symmetrical one if it goes beyond that short strike will you see

valuations are full across the board and so with markets at all-time highs, i think we're vulnerable to surprises from a policy perspective then when you look at what might be the biggest surprise, it's really what the fed does and the fed has told you that they'll pivot a little bit and they're going to be a little more hawkish, but it's relative to how hawkish they need to be if they have to come early, i think markets are not going to like that. so we are expecting some near-term volatility, and we have a barbelled approach where we have these quality growth names and you see that they've been working episodically and certainly over the last few months the quality growth. but we also have the cyclical bet on because we believe that the reopening of the economy is going to overpower all these risks we see earnings are good. and when people re-engage, we think they're only going to get better >> did i hear you say that tech is the -- big tech is the new defensive, or is a defensive >> quality familiar tech is the new defensive. >> like microsoft, which all of you own. tiffany, tell

the valuation is way over its skis here. the regulatory risk is scary >> didi and baba are fun to say, just on a silly note to krispy kreme. they have great doughnuts. they used to have two krispy kremes grilled topped with vanilla ice cream. it was heaven after a night of, well, you know, after a night. what do you think of krispy? >> i think it will be really tough to compete with starbucks, mcdonald's, dunkin' donuts it's giving them credit and being close to four times as profitable as wendy's already. and, look, the private equity guys that are trying to sell now have not done a great job. they paid around $1.5 billion for krispy kreme looking to sell at the midpoint while profits have nose-dived. the business profit wise looks a lot worse. the profits are way worse. and so those are the good old days, tyler, we could eat doughnuts and things like that consumer preferences have changed these days we think that's a big headwind >> so this $3.6 billion valu valuation, implied valuation, you think is wildly overpriced give

that valuation. to an ipo, they came up with a very narrow range of 13 to $14. it has the narrow range and they seem to be very confident to get the deal done. morgan stanley and -- i mean, there's no doubt. they are very confident that the deal will get done. they can always also just elevate the range and place and increase the stocks that they are selling so this may not be the done deal but it's lower than what people expected. haidi: our deals reporter in new york, didi -- crystal tse with the latest on didi. it is the latest in a series of asset sales aimed at overhauling the e-commerce company. the business yields more than 1/10 of ebay's global revenue and is seen to reshape the online shopping arena. it commands a 12% market share. tesla supplier -- lithium says -- could push prices back towards a record high. the company is aiming to capitalize on a rebound from a more than two-year slump that ended in september. it says it will step up exploration of lithium resources as well as seeing dem

two things to pay attention to, obviously market capitalization, top valuation, but also how does it compare to the historical valuation for these businesses some of these companies, high as they are, are actually trading at lower multiples than the last two to five years. >> sticking with tech, cloud security company okta had a nice run this week but tony thinks there's too much fog in the forecast, tony, what do you see? >> that's exactly right. while security is at the top of mind for a lot of investor i think on this particular cloud security stock there's potential down side here we look at the chart itself, the stock is trading at a very wide range between 210 257bd -- and 290. it did have strength this week, i think it's the opportunity to look for short exposure as it tests the 210 support level. the reason i think it could break that major support level because if you look at the stock relative to the sector slk it's already broken those support levels, that's a suggestion we could see some further declines. if you look at the business itself, it's basically almost the exact

but i still think we're in the first third or first 40% of the move when you look at valuations, youl economy rapidly expands, i think this is really the space where you are going to see the best price performance. and you still see huge discounts on these value oriented names, whether they be industrials, financials, material companies and in many cases these are still trading at single-digit price earnings ratios going into a period of what should be very, very strong earnings growth. so i do believe that even though there has been a little pause in the spectrum, that this is where you'll get revaluation given the positive news over the next 12 to 36 months >> this moderation in that leadership in those areas did coincide with treasury yields topping out for a bit. now we have this somewhat unexpected reduction in yields a question about whether, in fact, global growth is going to remain as strong in all parts of the world, whether or not it's far ahead on vaccines. has anything change thad the bond market is indicating to you or is it more noise? >> i think it's more noise because

taylor: you mentioned valuations.martin adams writes in and says the entire wage inflationary pressures are the next thing to hit margins when it comes to some of these companies. is that a valuation concern as well, the squeeze we might see on margins? jeffrey: it is, and in the equity market it is a huge theme because it is about inflation protection. so much of what we talk about in the fixed income market, yield curve steepeners, how do you find inflation protection for your portfolio? in the equity market it is about margins and identifying which companies have the pricing power to pass through and not absorb that increase in wages, increase in commodity prices, increase in prices across the board, and not affect their margins. that is where you are seeing the winners and losers, you are seeing the inflation basket focus on these companies where there is pricing power and pass-through as an effective place to put investments for this inflationary fear for inflationary hedges. it is about margins and identifying w

but also how does that compare to the historical valuations to some of these businesses some of thesenies are trading at lower multiples than they have on average over the last two to five years. >> tech here, cloud security company okta had a nice run but tony things there's too much fog in the forecast for this company. tony, what do you see? >> yeah, that's exactly right. security is at the top of mind for a lot of investors i think on this particular cloud security stock there is potential downside here. if we take a look at the chart itself here, the stock is trading very wide range between 210 and 290. recently we have seen lower highs here it did have a strong week and the strength here this weak is the opportunity to look for some short exposure as a test that 210 support level. the reason it could potentially break that major support level because if you look at the stock relative to its sector, xlk, it's already broken those support levels that is a suggestion we could see some further declines. and if you look at the business itself, it's basically almost the exact opposite

it's getting there it just driesed at $60 billion valuation.s ipo reportedly delayed by an s.e.c. probe into its crypto trading. their valuation could be upwards of $30 billion when should we expect these to go prime time? >> dede's sooner robinhood probably after labor day. dede's should be going in a few weeks, maybe july 4th messes with that a bit so it's three weeks. the thing about dede is the shareholder base, namely uber. it's the second largest shareholder with a double digit stake. uber, despite what it is, it's an etf for ride hail companies in other countries and dedeis by far the largest. >> it'll be interesting because we've talked about this before these companies have received very high valuations in private markets. they were the best example of that remember when we thought it might go public at $120 billion valuation that got quickly scaled down. it's trading below $100 billion. public market investors have not been so excited about ride sharing. uber and lyft have underperformed didi has a tough road ahead of it some thought

because valuations will matter. that's why tech has gone down, when inflation fears are high. and so investors can't be complacent and with the valuation, it is a matter of the portfolio, it will eventually, it just takes time. >> really quickly, michael, just as we dig into that for a second here, i mean amc and gamestop, we're going to talk about that in just a moment, actually david and michael, thank you for kicking off the hour for us. david faber, i will go to you on amc. >> okay, what would a week be or a show with us getting, without us getting to amc. we are waiting for an open the stock looks to be more or less flat just after more or less losses, following the movie operator's second share sale in a week adam aron trying to gain support for an issue of another 25 million shares they basically reached their full argument ration, around 520 million share, that's all they can issue and last night he sat down with trey colin, the owner of the trade channel on youtube. take a listen. >> if you arm us with the

valuations they still looking very compelling. a treatment for muscular atrophy has been approved by the nhs. you are seeing attractive valuations in that part of europe. it has been left behind. alix: let's look deeper. you brought up france and spain. a couple weeks ago, it was like spain will outperform. that is where you want to go. then the ecb said spain is one of the countries where it will take more than three years for per capita output to return to pre-pandemic levels. value or value trap? >> the thing with spain is it is geared toward tourism. when everything shuts, it was hard. if you have other parts of europe more diverse in that sense, then they will have had -- there would have been a lesser impact there, so we saw a big move in the likes of a madea's, for example -- of amadeus, for example, which is a travel software company. now it we will have to see is tourists moving back to, coming back to, spain, the economy recovering, people spending money there, and the economy reopening rather than waiting around to see

it's getting off the mat they report in seattle valuations are reasonable.n as well in terms of the last quarter. it was an extraordinary quarter. i mean, their inventories are under control, their margins are improving, it's in a new range through that 148 level so i think nike is a monster as well. >> okay. i like how you did door number two and it was completely off the board. i will let that go >> you know. >> and he stole door number three. it is nike and so again north american comps up 32%, margin improvement 450 a share makes this not as expensive as it was a month ago and the price action after those earnings, despite 13% and consolidate, if anything, the technical folks would, maybe you call that a flagpole of sorts. there is an opportunity for the valuation of this company to be something you can get excited about for the first time in a while. >> nike does -- you like to look at those charts, dan so when you look at nike and you see it move even higher off of that big spike, that's a good sign. >> that move last week in nike was one of the most a

but will the valuations be sustainable?nk through the hard questions like this what answershave you come up with >> i do, yeah. it is difficult i would say to sustain the valuations we are at given unprecedented demand my guess is that you'll see a little bit more of a decline next year and then by the time of 2023 to 2025 i would sadie min misdemand and th >>> and this technology of the future, what would you say in response >> you know, we have an underperform on moderna. it's not that we are cheering for covid. it is literally a function of valuation. i get it the company did a great job during the covid development of their vaccine. but it just takes a lot of time. their cmd product, their flu product. it will take time to work through the clinical trial process. a lot of the vaccine makers i think it is going to be very difficult to really translate the recent benefit into long term benefit. >> you like lily and vir why? >> there are other things going on portfolios and pipelines lily have a great diabetes business up

we talk about -- i mean, you know, the valuation of p.e. basis is cheap, and that is when you put the cash back in that is another $50 billion. they're growing and i mean the margins here are phenomenal. so to me this is nice but one multiple point is not -- that is a minor hoorah it is hardly spiking the ball. so i still like it here. i think this is marginally good news it ain't over, though, the whole threat, for sure so it is still there i don't know how much the rest of that thread is worth. but this isn't saying it is trading like the threat is completely over. >> they could refile they have until july 29th is what julia said. one thing that the judge picked on was the length of time between and when facebook acquired instagram and what's app. it was years and yet they decide to go after them now at this point. and that is not a remedy with any refiling. >> look, and i think there is other potential football teams looking to put the pressure on facebook in the form of a number of state legislators and essentially state courthouses to

>> let me ask you a little about valuation.electric products that really do compete meaningfully with tesla and we've been having that conversation for a very long time, and we haven't really reached that moment. when do you think that moment is going to happen? >> well, two things, andrew, on the valuation side, it's not so much that tesla is going to be undermined it's really, even if you give tesla the benefit of the doubt, that they will become as large or larger than volkswagen, sell more than 10 million cars. that's going to be at some point in the future. and you have to discount back those cash flows, so the fact that the stock is worth, you know, two or three what car companies are today, that are making 10 million units means it has to make a lot more than that in the future. at much higher margins to justify the valuation. so that's the issue. but you know, tesla has 20-plus percent market share in electric vehicles today invariably, that will go down. it may go down to 10%, which will mean it will sell 10 million ca

i say this is a valuation story. if you give it a market multiple or something close, it should be a $400 stock it is not going there tomorrow but think fed etch is cheap here. >> i think that this earnings season we're going to be faced with the question of how are the stocks priced in the relationship to where businesses compared to the peak, right. that is peak business for fedex and for ups a couple of quarters ago and it is not and probably won't be. >> and people remind about historical valuation, guy just made a case why this is a cheap stock toward the market. but why is it trading so far below a market multiple. very cyclical. they've had some head winds, some secular shifts that sort of thing. to me, i think value traps are value traps and it is consolidating like this for a very long time it didn't even get to break out when ups broke out after their last quarter but to your point about what desh we have the precursor we talked about it last night on the show the ups analyst told you what these guys were g

so you understand traditional valuation metrics.inly using them all of these stocks are oversold. how do you justify, there is a diamond hand approach to this, holding them long term. what are you using to say this is justified holding these names for one, two, three, four, five years? because you can't do it using traditional valuation metrics. >> yeah, i completely agree. in my personal opinion with this is more after swing trade to see how this particular short squeeze narrative plays out. the discussion for a long-term hold is better taking place when this particular story line is done because right now it's a smaller time frame. it is that classic david versus goliath. retail versus wall street. 99 versus one. at the end of the day you love the underdog story but with that being said this is not a long-term underdog story. we're doing the fight right now for that swing trade, the dumb money versus the smart money, throw both of those in quotes. to me this is a swing trade just to see how far we can really, really push this narr

wells, bank of america and this is pretty much the highest levels that we've seepn in ten years but valuation is only part of the story what i am thinking about the fourth quarter for 2018. for anybody who doesn't remember how that turned out. xlf dropped by about 23% a 23% drop in xlf from the $28.5 high that we recently saw could get us down to 29.5. playing on the charts that carter is talking about and we have some pres cancedent given weakness the 35 were about $1.37 when i was looking at that earlier today. and 31 for 37 cents and spending a dollar for that quick spread and that gives me a 3-1 payoff we saw, obviously, some weakness in the market broadly but the financials were one of the areas we did see considerable weakness and i'm not saying we'll get that again but this does have some similar vibes to me if you ask me this is a way you can play to hedge your portfolios or limited amount of risk >> tony, what do you make of this trade >> i find it quite difficult sometimes to push brand-new shorts when an index like this is down 9% in just two days. but as carter showed you, the ind

viva republica lands it a $7 billion valuation. you go, toss >>> dow futures up 51.itcoin up 100 we're back after ts.hi plans for the long term, and plans for a long weekend. assets you allocate, and ones you hold tight. at thrivent, we believe money is a tool, not a goal. and with the right guidance, you can get the financial clarity you need, and live a life rich in meaning, and gratitude. to learn more, text thrive to 444555, or visit thrivent.com. this is dr. arnold t. petsworth, he's the owner of petsworth vetworld. business was steady, but then an influx of new four-legged friends changed everything. dr. petsworth welcomed these new patients. the only problem? more appointments meant he needed more space. that's when dr. petsworth turned to his american express business card, which offers spending potential that's built for his changing business needs. he used his card to furnish a new exam room and everyone was happy. get the card built for business. by american express. (vo) conventional thinking doesn't disrupt the status quo. which is why t-mobile for busin

valuation is at the heart of everything we do, so if valuation becomes disconnected

. >> does that mean that multiples in valuations have receded on the list of concerns >> well, look, you know what you've seen, even in the last couple of months, where you saw slight corrections, if you will, on some of the multiples, but then they come right back up i think what investors were looking for right now is growth. you know, we're in an environment where we have relatively low interest rates and, yes, there are some fluctuations that happen around that, bond yields are moving around, some concerns about inflation. but broadly speaking, we're in a very low interest rate environment. and when you have that kind of an environment, growth stocks forum weperform well you're seeing companies growing very quickly and to the extent we can maintain the same macro economic environments they're going to be viewed favorably and you'll see fast growers perform well in the market. >> put a filter on that for us if you can it seems like you want companies small enough not to be considered big tech, but strong enough they can survive compe competition, with these big tech players, and t

-- well, that's my take on it and that's right valuation is not a catalyst. however, it does provide support. and what brynn was saying is right. you look at the chart on this. if this gets above 135 it's going to release its hold on the earth. it came close to that back in april. it's been consolidating for this entire year. it gets above 135 which is like 2% more, this horse is going to run. it's a technical matter. the valuation is a support we know how good the company is. >> see the stock moving up a bit. how about northrop, jimmy? >> yeah, you know, scott, this is a stock picker's stock because i can sit there and say as i have that the defense sector is catching a bit it is as we realize that defense spending is not going to be cut as draconianly as we thought under president biden. but northrop grumman is one where you look under the hood. it has two major programs it's building on. the b-21 bomber called the raider, the air force's new bomber and the grond-based strategic deterrent, the new intercontinental ballistic missile they're developing these

marilyn: it is based on valuation.hen you look at the huge amounts of liquidity in the market, when you look at where it is going, the fact that the u.s. economy is doing incredibly well, we have been talking about not so much coming from the fed in the next few weeks and overall inducing. eventually, the fed will let us know they will be tapering. we are already gearing up for a continuation in economic data.

since alibaba in 2014 and concert companies are rushed to capture the lucrative valuation seen in the us stock market. here to discuss this further, as our financial corresponded, ashtosh pandey, as your tosh, us investors seem to be back in dd, despite its regulatory troubles back home. why is that? well, investors clearly want to buy all the huge vi healey market in china. where d d is a dominant player and they also bought into it's actually easy ambitions, which are actually quite ambitious. and the fact that it to unprofitable just last quarter was so boarded. well, we all know that not many, right? healing companies are actually posting profit. but you also go to see that not on the board, this company was expected to command evaluation of a $100000000000.00. so this is a case of expectation new to the expectations been exceeded because the offer then the trust issues or concerns on the future growth. profit margins also remain muted . so these are the concerns, and that's the reason why the prices had to be brought down the ideal price and the low ideal price meant that the dee

the valuation isn't typical. >> guy, when you look at these other names, match group. >> pinterest is the one. all of the stocks had the huge runs they made all-time highs i think people realize they're paying up for growth these companies have that growth twitter makes sense. i get what dan is saying pinterest is the one people haven't focused enough on. >> i'm surprised they haven't monetized their relationships with retailers it's annoying when i go to a pin and you can't buy it >> dan nathan has talked about that it's never about daily average users, monthly average users, it's their growth rate and to pinterest to your point, they have levers they can pull. >> dan, are there other names you think there might be more opportunity and room to run? >> it's interesting. we're going to get q2 earnings for most of the names in the next month or so it depends how far they run into it expectations and tim's point about the february analyst meeting, they got high usually costs go up and new offerings. you could see pinterest which has been moving and trading. i think you'll see them go bac

like it was in 2009 followed the financial crisis then you get a transition from valuation driven gainso maybe a little bit of indigestion. we saw that in april 2010 when qe1 ended. we're in that little similar stage now. and then from there you get into the mid cycle phase, earnings are carrying the market rather than valuation increase. we've had these rolling corrections since february it was the meme stocks, whether it's the index of nonprofitble tech stocks or just, you know, retail favorites or like recent ipos, they all kind of peak after spectacular gains and they've all corrected significantly. the correction in bitcoin doesn't really surprise me in that sense because obviously there's a lot going on in terms of the technology and, you know, a new aspiring asset class, et cetera, but also that part where towards the top a lot of tourists are chasing it and those get shaken out and that is what is happening now? >> in the case of amc when you have 80% of the investor base, retail investors, many of which say they're going to hold no matter what, can you apply this kind of analys

an earlier guest talked about valuation seemed rich or not cheap. an individual stock investor i can't remember anymore 5,000 publicly traded companies. you are always going to find something that is not trading where it should be that is at a discount valuation. there is a lot of opportunity in the energy sector although it had the big one in the first six months that is a comfortable place to continue to put money. >> okay. i think the only thing that is more hated than oil and gas has been new york city real estate companies. what we just talked about. a year ago, the mortgage reits, looked like they were going out of business. we were watching bonds getting crushed and equity destroyed this sounds like a few others are still money to be made in the names which got hammered last year. >> right i love your previous guest kirsten jordan it supported the thesis we have in the portfolio two investments of the surge of real estate in new york. one is green realty and nycb sl green has a 4.5% dividend yield. got crushed last year. trading as if no one

that means we can assume we will see some of these valuations perhaps supported for a time to come. the surge of earnings we are seeing coming through, valuations for once may actually be brought down not by the pe relationship shrinking, but by the e growing. guy: when a look at the skew, i see people buying protection. do you think that a reasonable thing to do at this point? how do i protect my portfolio? we've come an awfully long way. we may have a period where we go sideways. but what i have learned today, and i learn almost on a daily basis at the moment, is there are plenty of things that are unnerving the market. do i just look through that, or do i buy protection to keep my portfolio with a little bit of optionality on the downside? john: you assign your risk appropriately, and other than applying a very wide volatility spread which means markets can be very expensive, you choose to moderate your risk downward. that's certainly the view we would take. this is about the long game here. last year was a crazy year in the markets. we saw markets selloff very rapidly. there's a

shares when you compare valuations.ey did was look at forward price-earnings ratios on the s&p 500. you are talking about the canadian index being 23% cheaper as of friday. only up to go back a couple of months. see that discount was 27%. tom: what is the catalyst that moves that? dave: think about earnings. you are talking about a stock market that has much more tied into energy and metals. talk about a couple of areas that have benefited along with the economy. that is part of bank of america's argument. in the canadian market, you stand to benefit more by being in canadian shares that you do in u.s. shares. so they are looking at it in terms of where the market is as opposed to just valuation. lisa: does this mean that the sell side analysts see the balance of complacency as not necessarily being complacent enough? that people haven't bought into the reflation trade and need to double down, and this is one way to express it given the fact that canada is way behind the u.s. and other nations when it comes to vaccinati

the bears are screaming about valuations disjointed from fundamentals bulls scream as loudly about future growth prospects. whether it is bitcoin or dogecoin, amc, spacs or the nasdaq overall can investors draw okay rat analogies between the dotcom bubble and the global coordinated central bank easy money policies the nasdaq at 1570 by march of 2000 over 5,000. the recovery from the great crisis was quite v-shaped but the covid pandemic market recovery even more impressive. took three november months to get everything lost in the pandemic so many assumptions. let's take a look at individual stocks cisco to the high in the dotcom era. right? a huge ramp up overall 136% gain. now just after the highs to the lows and you can see a steep drop tesla to the upside. meanwhile check out cisco going from the highs down to the lows. a 51% drop in the months after that and then follow tesla with the same story because it is a similar type move to see. "wall street journal" dove into investor behavior then versus now. james joins us now on the phone to talk about it thank you very much for being with

so it suddenly shows that the investors did buy in at that valuation.the -- that $14 it will basically have a valuation of about $67 billion. so this is still at the lower end of a range that has stretched up to $100 billion a few months ago. but obviously prices of its comparables have come down. the markets have been a little bit more jittery since then so didi has had to adjust the target valuation so that might be why coming with a lower valuation it can still now price at the top and hopefully upsize the share sale. shery: equity capital markets reporter julia fioretti in hong kong. more on the outlook for i.p.o.'s later as a debut in hong kong an exclusive conversation with the company's executive director. and the co-founder of x.a.g. china will look at how the country's biggest agricultural drone maker is leveraging ag retek for farming. a con core schum led by alibaba group and the jung-su provincial government will near a deal to buy a stake, bloomberg saying the sources could be announced as soon as this week. the empire is one of china's big

for me, it is a question of valuations. we will see progress, but it is -- at the moment.ousef: we had a german government bond selloff, and clearly that got to the shores of the ecb, the markets live team was speculating it had gone too far. italian and german government bonds coming down again the last 24 hours. i am wondering what your analysis is on that and the conclusions you are making. henrietta: so the move we saw more recently was probably driven by the slight risk off movement we have seen. the ecb is in a different position from the fed, the inflation pressures in europe much less than we have seen on the others of the atlantic. they've got more scope to keep an easing stance, and that's what we've seen in their tone as well. we expect that to continue. and for europe to benefit at this juncture on of the monetary and fiscal side, with some of the packages that are coming, that will look to invest in the second half of this year. so from our perspective, this is positive for european growth, and we may see a capex cycle kick off, something we've not had for a w