tweaking valuation around the edges of a big player. >> sticking with a tech story.ys the story bring in webex deputy. this is too much >> oversold tech stocks i've seen in the last five years. i view this as a massive buy table pounding on cybersecurity names. names like crowdstrike, tenable. names like microsoft on the cloud side, cloud valuations of a google as well amazon. sara, i think at this point the new york city cab driver knows the path over the next 18 months now nerve-racking investors we're talking to risk/rewards, buying these names heavy the next few weeks. >> here's the problem. since you recommended v-scaler last time. now 9% other names even worse picked it, down 50%. not to pick on you a problem. looking at fundamentals and valuations and this market focus and the macro. >> no doubt. look, i view it this is not a call on these names for the next week or the next month it's, where do we see us over the next 12 to 18 months playing outside and the last few years i believe the digital transformation in terms of growth tech is two to three what we've

we do struggle with valuation.esla produces about 2% of last year produced 1% of the world's cars and had 50% of the total value of all car companies so all other legacy car companies make 98% of cars and yet they have the same value of tesla who produces 1% of cars. >> so toni -- go ahead >> it's about the sustained -- the ability to sustain the 50% growth rate. particularly since tesla really only has two cars right now and doesn't have anything that's high vol that's planned. they have cyber truck, but that will be expensive and lower volume and they have what they talk about a robo taxi last night but we're skeptical about tesla's ability to deliver by 2024 or even 2025. >> what do you think the appropriate growth rate is do you not think a few years from now tesla cannot double or triple its market share? >> well, i think tesla's market share is likely to go down of the ev market the fortune news is the ev market is growing very quickly so, tesla believes, and i think bullish shareholders believe, that tesla c

standpoint and some have not the market is giving those names some credit for better valuations i do think that's important. today was also indicative of that i think the qs were down 4.5%, facebook down 2.5% if you have to be long, i think the valuation is important now. >> i saw what you tweeted about this -- the big swings being a sign the market doesn't know how to price in the risks that we face right now, but i think that applies to the big moves upside that we have seen. it works both ways i think we just don't know what the upi'side is, what the downse is, we don't know if china is going to get worse, not to bring the laundry list as to why you should be gloomy, but this is what -- this is the struggle that the markets are having in terms of finding a valuation for the names. >> and i think apple would be the place i would go right there too. it is a company that extraordinary numbers, but let's look forward we know how great of a quarter it was i look at a company that ultimately at 27, 28 times, which is a hybrid multiple between hardware and software business, do i pay the

and google is very defensive on a valuation. so i think you got a case google down 17% and 13 sessions and we haven't lost apple yet, but i'm sure wee're going to talk about that. >> you have a stock that has a reasonable valuation and that is the first one that is now breaking to the downside what about the other stocks? what about apple, microsoft, tesla that has levitated and then no place to hide. healthcare, energy, places where investors were going and you've seen weakness there too. a lot has to do with the fact they were simply overbought, way above the 200 day moving average. they're feeling the pain too the thing i think is very important going into next week relative to earnings, think about stock like microsoft, the exact same price it was heading into the earnings last quarter i think you were on the show, they reported bang out earnings, the stock went up, but it failed at that rising -- sloping 200 day moving average to the yun side so now i think two things changed and they're not good the fed is more hostile, a

congress should also provide federal valuation agency rulemaking authority to ensure all valuation methods are fair, unbiased, transparent and consistent. to address appraiser shortages and lack of diversity congress should encourage the revision of appraiser criteria. congress should provide the federal valuation agency with rule-making authority to set reasonable criteria to require fair housing training and require national registration with unique id. finally, to improve research compliance and enforcement congress should encourage regulators to enter into a data sharing agreement and provide the cfpb with rule-making authority to developer public valuation database. thank you for the opportunity to appear before you today. i look forward to answering your questions. >> thank you. mr. peters, your recognized to present your testimony. >> chairwoman waters, distinguished members of the commit. thank you for the opportunity to testify today. thank you for the nice introduction. the case for centralizing appraisal standards and criteria under the new federal agency as opposed to appraisal

higher valuations on equities.f you have a positive real yield, there are alternatives. so what does it mean for valuations? what does it mean in terms of portfolios? for most managers at the moment, it doesn't seem there's an alternative to equities. >> alternatives are becoming more widely available to individual investors and smaller institutions more than they were a decade ago or five years ago. because we have been in this low interest rate environment for some time, everybody has been stressing for yields, and if we get high real yields, it is true that equities are not as attractive on a relative basis, so you would be diversifying into real assets, looking at infrastructure, timberland, farmland, real estate, metals, other real assets. another way is take a look at a company like blackstone, an alternative asset manager with a number of real products, and as equities might no longer benefit , if there is no alternative as you suggest, people will look for other areas and a company like blackstone has a lot

>> right it goes back to valuation.s is an exact highlight of what i mentioned before where it's not about the stories and it's about the valuation. for us, we own western union and pfizer both of those are trading at valuations and it's fascinating to see in the face of this positive upgrade you have the two that were upgraded, paypal and square down 8% and 5%. you have the two that are rational valuations and fiserv are flat on the day. it's about the valuation and the stories are less important right now. >> it's been a rough road for shares of citi and a new 52-week low today. lee cooperman telling me on overtime why he is hanging onto it which is why we'll debate it ahead of earnings next week. all of april cnbc is celebrating financial month and here is why it's important to invest in latinos. >>> u.s. latinos are a massive undertapped market one in five americans are latinos. 63 million and growing did you know that twefrl% of latino households are unbanked and another 22% are underbanked. this financial literacy

public companies tend to lead private company valuations and we are starting to see private company valuationsne. you have a lot of crossover hedge funds that have entered the space over the last five years and we're looking at large deals right now. it six months ago, they would have been swarmed. by crossover public investors. depressed valuations and less competition should be a good time to deploy money. emily: how do you plan to put this new $1.95 billion to work? guest: the same way we have been for many years. we deployed our last fund in like 15 months. we want this fund to take 2.5 years to three years to invest. continuing to do what we do. we are primarily western european north american investors. we have done some stuff in asia. primarily, u.s. and western european and israeli based companies. emily: when you look at valuations, are you changing your own bar in terms of what is reasonable? do you think more broadly we are going to see a lot of air get let out of the balloon? guest: since -- our biggest mistake to be clear over the last five to 10 years was not predicting multiple

a valuation from a multiple perspective. looking at forward pe, how much will you pay for an amazon share today for the amount of money it generates next year, anticipated, that's what they call the forward p/e it stands around 69. if you look over the last five years, at one point we were kind of closer to like 165 times, forward earnings, or estimated earnings from an analyst perspective, and now we're kind of closer to 69. so tilting towards the lower end of that valuation range in a variety of different reasons going into that. maybe slowing growth maybe cost concerns, and whatnot. so that's something to keep an eye on now, as for how amazon has performed versus some of its -- is it really appear? we'll try to put it in context with names like microsoft, a big cloud competitor over the last two years. amazon is up 7%. microsoft is up 60%. even walmart, from a retail/e-commerce perspective is up 25% in that two-year span, an interesting way, jon, deirdre, to look at amazon from a lens of valuations from a number of differ

we'll seen for a year high valuation stuff getting destroys ed what needs to happen is the broad market to come in. >> when do earnings estimates come in, i suppose we'll get lower revisions, bank of america tripped its estimated for '22 and more deeply for '23 but not by much so how do you think of inflation particularly when it seems to be entrenched in consumer's minds that's what we're talking about. the impact on the consumer and their behavior because if according to the new york fed consumer survey the one year looking out expectation inflation 6.5% is terrible as a consumer i don't want to be spending a lot of extra money on things. >> no, it's terrible that's what they wanted all along, for years they want inflation and i said for years be careful what you wish for because you're going to get it like in the scene in "jaws" when the mayor was talking to brodie he said you yell shark and there's a panic. same with gasoline, people don't notice the eggs but when gas goes from $3 to $5 everybody talks about it that's what impacts consumer behavior i will say this, i think bk will a

we need valuations to kick in.e's a big difference steve used a word discipline that's another word i pick on, which is what is the discipline? is this just to increase positions or is the discipline to say hey, we invest in innovation but we do it at the right price for companies making money. you can look at zoom which will earn $4 a share, trading now at $100, that's a 25 times multiple that has real earnings like where is the difference there between a teladoc that's just a story with earnings and zoom where there's earnings and real valuation i think that we need to remember this year stories are out, valuations are in. and the stories, they were as you said, scott, they're not going to get better than what they were. might have a long runway, never will be as glossy and perfect as they were the last couple years. >> the question is, how much more do the valuations of companies like this need to come in they correct so severely, then you say okay, come down a lot. maybe time to buy. then the earnings and funda

the valuation range gets a lot narrower >> mark, it's tim. you make me want to jump out a window on this the story on netflix was really saturation in north america. that actually they were d developing localized content they were able to meet an audience in india and asia pac pacific. if you're telling me they are questioning the ability to have that, shouldn't we be questioning the high teens growth number. i'm with you there i think we totally reset expectations but i'm very concerned on your outlook for their foreign growth >> well, i think that's the issue. i think that's where my 25 million subs went. i think netflix itself wasn't sure they had big number whence they launched in india. they talked about getting to 100 million subs they are lowering prices in india. you don't lower prices if you got a great demand problem like you've got in other parts of the world. it's a lot of local entrenched competition. i was struck by our japan survey results. i know these are different countr countries. it's hard to gain the sub growth they did n

names are trading at trough valuations. have seen over the past couple years but it's also holding up still relatively well that could certainly move in the direction if rates keep going higher and the macro weakens, especially around the consumer but so far, we're seeing still pretty solid healthane lot of pockets. and a lot of valuations that i think you can consider pretty attractive right now >> like what which one do you like the best >> so, if i think about that combination of highest quality with most attractive valuations, you know, i would put alphabet up there, near the top, one of the highest quality names we cover. still, fundamentals there are in good shape you can kind of go further down the curve with names that might be riskier, but the valuation there is even more attractive. staying within that digital ad space, pinterest is up there you know, we cover shopify, that valuation has come in quite materially consider them a best in class. e-commerce operator. so there are a lot of high quality companies with v

microsoft has a bigger valuation premium than apple apple got expensive, but it was microsoft that peopleelt like it was a one decision stock, trading well above 35-times earnings what is going on is compression valuation that has hit the area that had richer areas. >> interesting where that compression hits and when. mike, thank you. >>> let's stick with stock for today's feed next guest saying cash flow is king and queen with names like alphabet and adobe are ones to watch. it's good to see you why adobe and alphabet in particular is it really the cash flow part or is there something else to it >> john, first, thanks for having me. when we think about what's happening in the economy, all much the doilsials being turnede inflationary environment, the interest rate hiekes upcoming, e feel like that environment has punished the stocks responsible for a lot of the growth, mainly those technology stocks. those are valued more looking ahead to future earnings we feel now is the time to focus in and start to pick certain stocks i think back to your comment about is it time to unbundle i think

that's where you have a valuation that makes a lot of sense. you're not going to see dramatic hits to earnings but it trades about six or seven times the s&p 500. >> let's say you don't want to bet against the consumer and you think consumers will buy apple products no matter what and watch apple tv, et cetera, tim the timings of the china lockdown appeared the impact is interesting because it didn't affect the quarter that they reported it will probably impact the quarter that we are in right now. >> yeah. and again, the extraordinary nature of the quarter was that they were not impacted as others were and, you know, look, china and moderating consumer growth everywhere, add those two together i would be taking an opportunity to talk about that i would be guessing we're still going to hear some of that hold on to your hats and back to the multiple, it really comes down to that. jpmorgan has a 30 multiple on it do you pay 30 times for this stock today? i get you paid it yesterday. you pay 30 times multiple when in fact the high multiple part of

quite hawkish in the markets, dan. >> if we start to listen to fed governors and listen to high-valuation tech stock brings us back to last time contemplating what it felt like to tighten in 2016, concerned about global growth, i realize this time is different, i'm not liking the prospect of, you know, even on day like today with crude down, back to $100 or whatever, if we start to see the dollar go up, crude go down, and stocks pick up in volatility like this with the back drop of uncertainty, europe is likely to be in a recession and likelihood we're pricing in a recession in 2023 at some point stocks only down 5% are going to start to actually have to price that in a little bit and don't think we've really done that appropriately i don't think a 15% peak to trough decline in s&p 500 from january 4 atto low of few weeks ago adequately encapsulate lates the market. >> some have been annihilated, igb, high-flyer names, software etf that is sort of indicative of the high flyers so to me i feel like that's already deep in bear market despite the rally we had last two weeks and i think it sh

i still believe inflation will -- the sector is leaving us to find cheap valuation -- good valuation,e like some industrial, they're making good numbers, is a market investment, that is going to be helping some of those stocks in the space. some of the cyclicals look to have a two negative macro. francine: thank you so much for all your insights, emmanuel cau, berkeley, head of european equity strategy. -- barclays, head of european equity strategy. this is bloomberg. ♪ tom: welcome back to the open. let's focus in on the u.k. now, there seeking to work quickly, discussions on the free trade accord remain frozen. the uk's secretary of state for international trade joins us now, what progress has been made , given reluctance from the biden administration enter formal free-trade agreements and discussions, what has moved in terms of your talks? and where do things go from here? anne-marie: good morning. we've had some good discussions over the last two days, in london, and month ago in baltimore. where i went to listen to stakeholders across the u.s. to what is important to them to grow

they had originally raised a 15 billion dollar valuation. not sure if that valuation will hold up.t do you imagine is going on behind the scenes at a company like go puff right now? >> some very stressful board meetings, for sure. i think you will see some valuations come down. one of the scary things is that a lot of companies raised a lot of private capital in 2021 at really high valuations, and now they are probably effectively underwater and a little bit behind strategies and projections, so the big day of reckoning is going to be when companies admit it and start layoffs, and you are going to have to hear the d word in silicon valley, which is the down round. it is really if you want to be the first to kind of tear the band-aid off or if you want to wait and hope things are going to get better, but i always say, hope is not a strategy. emily: we saw instacart sort of tear off the band-aid, lowering their lua should voluntarily. they are not in the process of raising money, at least not right now. you are seeing -- you are saying mass layoffs, mass down rounds. are we going to

norman: valuations are an issue.ech has been hit since the start of the year, most valuations have come down. i think high quality tech with high quality earnings, big cap tech names to present an opportunity from here. investors will have to deal with multiple the ratings. what you need to focus on is companies that can generate earnings growth the offset much of the writing that lies ahead. tom: how much duration you want to be adding at this point? norman: we are not adding duration at this point. it is getting tempting as we get percent on treasury yields. instead what we are looking to do is manage credit risk. we think that is the next cuda brought in the bond market -- coup de grace and the bond market. long-term credit, not taking directional positions within the bond market currently. francine: what kind of credit arbitrage? norman: we think there's an opportunity for active credit to kirk now. quite a lot of banks are running some challenges in terms of the credit markets. investors, where they have benefit

>> so mel, i am not going to say that i prefer amd because of valuation.t would be a stock would you rather i would never do that especially on a friday. but relative to enindividualia i will trade this one. i think it falls under the quality defence team that i have been talking about we all know it's a great company. steve pointed that out the stock is not cheap, but it's no longer ridiculous i just think investors are going to pay up for 30% eps growth 30-plus percent mar jens as the overall markets earnings picture starts to slow down. obviously, long term is hard to bet against. so trade this one. >> i think that's worse. you acknowledge the law exists and openly defy it >> he has the headlines in his head so we're not dealing with a seen person tonight >> perhaps not we will move on, though, do pen gaming, which jeff will fade or trade, what do you say >> so this is stock i have been in and out of. i am out of it right now so i don't have any skin in the game i do think you can trade it here it's strong for euphoria to now in my estimation utter disd

and i know it doesn't matter where a stock has come from i understand that, but it speaks to the valuation in january, this stock was trading double the earnings multiple as disney, and now they're on par so i'm not suggesting netflix should -- should have a premium to disney necessarily, but there are a lot of reasons that you can come up with why it would and why it has historically and now you can basically buy the stock for 20 times earnings and it's a 100 billion in market cap on 30 billion in revenue and they dropped 5 billion in profit for the bottom line and last year they could have dropped a whole lot more and they insisted on big budgets and big production and maybe to some extent now they'll get some religion on how they've been spending on programming while at the same time going after the long-hanging fruit like monetizing and sharing so i'm not saying that netflix is out of the woods and there are no problems buying it here at 220, 210, 240, whatever it is, but this stock has come down substantially already and in my view, discounts the idea that it's not going to be a great

. >> yeah, the valuations specifically of the bellwether of the group, jpmorgan chase, it's down more date obviously, concerns about investment banking and trading revenues on top of the credit story. the forward pe for jpm is down around this floor since 2019 call it 12 times, a little under that obviously, not as cheap as it has been at some points over the past seven years or so this down here under 10 or so was around the dimon bottom where jamie dimon bought shares in the company and the market and shares shot up also the dividend yield back above 3% obviously, this is the covid crash when the yield shot higher because the stock crashed. it shows you some value is being rebuilt if you can have confidence about the outlook for the consumer and obviously markets in general >> overall financials have held up better than some of the other groups down about 4% on the year. mike, thanks >>> up next, levi strauss ceo chip bergh fresh off earnings on what he's seeing from the consumer right now and how much flexibility he has to keep raising prices inner voice (furniture maker): i'm cons

but i think it's -- i mean when you think about the valuation. the $100 billion 225 million subscribers, it's not that much per month compared to something like a peloton, i know it's not apples to apple but at $2700 for subscription, i don't know i think this is kind of a unique property i realize it was a giant, giant -- you don't need to jump in but starting to get compelling >> buyers -- >> of stock, of stock may be interested >> there should be google should buy it if they're going to do ang add supported product -- >> they can't -- >> because of youtube. maybe? i don't know there could be a big platform that could do it though it's not really -- i don't know why the justice department would care if something doesn't have a huge overlap so google wouldn't make a whole lot of sense quickly, if you look at the margin structure that you have over at roku with their ad supported business this would help netflix's margins if they would have a real meaningful add supported business that captures a bunch of those users were not paying on their fami

if quality improves, valuations go up. reasons which have always eluded me, interest rate changes tend to impact bank valuations. it's basically earnings changes. the problem i have with the interest rate theory is that it just doesn't make sense. if you take a look at interest-rate movements against bank earnings, the correlation isn't there. the correlation with earnings comes if the banks so more products. people don't seem to understand that banks are like other commercial entities. they taken raw material, money. they manufacture that money to create products, loans and investment banking. they have to sell those products. that drives earnings and stock prices. interest rates tend to dominate bank valuations. shery: let's talk about what goes into these products. what can we expect in terms of cost for these banks? >> i mean, the banks have spent literally hundreds of billions of dollars to lower their operating costs, investing in robotics, investing in the look and feel of the product, investing in the distribution

i think those days of over i think there is room for these stocks to reprice that valuation. would be cautious right now. from a seasonality perspective remember the s&p 500 as a whole in may and june can be volatility months. there is other areas of the market that i think are overpricing the pessimism on economic growth we would focus on. >> like what >> the shawl and mid cap area of thing market if you look at those valuations, if you look at how much they have declined, small cap growth down almost 30% from its high. small cap value. these areas. market have priced in i think a lot of this negative news and if you can withstand the volatility as we kind of figure out where we stand from economic growth standpoint, these can look good from a long-term perspective. >> small cams are underperforming again today. victor, what do you think? down 23% from the high on small caps, worse than the nasdaq, and that is with a domestic economy that is faring better than the rest world and also where stocks are ultimately doing better than even bonds. >> yeah. it's true. i think that t

how do you think valuations are hanging right now? are they too high? what is next?dy watching the market has obviously seen that especially in the software internet world, valuations have come down fairly dramatically. we don't know how much of the indices is way toward microsoft, facebook and google and stuff like that but underneath those companies like octave, these companies have come down hugely. public companies tend to lead private company valuations. you had a lot of crossover headphones. we are looking at some large deals right now. these are $60 million revenue companies. it should be a good time to invest. emily: how do you plan to put this new 1.5 one million -- $1.5 million per work? course we want this fund to take 2.5 years to invest. we are primarily north american investors. we were early investors. primarily u.s. and israeli based. >> when you look at valuations, are you looking at your own bar? are we going to see a lot of air get that out of the balloon? >> our biggest mistakes over the last five or 10 years was not predicting multiple expansion.

watch other valuations of other retailers because this could be the opportunity. to me, this is more gap specific, and whether it's other things that are interesting like a ralph lauren, like an ulta, like the estee lauders, that's what i'm watching. >> that's what you like better, ralph lauren, estee lauder, and ulta >> yes >> dana telsey on the retail stocks want to hit another consumer name that is actually a big winner today which is kimberly clark. the company which makes kleenex tissues and huggies diapers beating on the top and bottom lines, raising the full years sales forecast for growth. the stock is jumping 8.5%, but the company warned prices would rise higher than anticipated even though we got the same kind of numbers prom pro proctor & gamble, it was seen as the leader in the group when it came to sales growth and taking market share what we got from kimberly clark was really strong. i want to highlight two points of strength. north america and also the business segment and it was a mix of higher pricing so they are able to pass it through, and also

with berkshire's other tech invests investor dan niles with us this hour speaking of deals and valuationsresh off a more than $10 acquisition orlando bravo is going to join us and buffett on the heels of elon musk joining twitter's board and moderation with the former ceo of reddit. >>> we're going to kick off with warren buffett's new investment. berkshire hathaway with an 11% stake worth more than $4 billion. investors like buffett are making big calls about what has value. mike, a lot of the commentary today is what is hp? is it an apple or an ibm it is interesting because these legacy tech plays are a little easier to understand typically. >> no doubt. i think there's a little bit of both of apple and ibm in the investment proposition when it comes to hp, the cheapness of hp and the fact that it's more of a cash flow buyback story, hp has done a little bit better in te terms of preserving cash flows apple is worth more than 20% of berkshire's current market cap at over $150 billion you see berkshire stock and apple have tracked well over the past year. union pacific, the railroad a bi

it is down call it 50% from high, still has a $30 billion valuation and not many revenues to speak of so we are in a new environment where even though it's down 50% as an example, still a $30 billion valuation that looks far too high from my perspective. >> lucid, one of the biggest losers today off the tesla slide. eric, phil, thank you both >>> we'll have much more on the sharp sell-off throughout the show down 600 on the dow after the break we'll talk to an analyst about the pain specifically in tech ahead of the big name results coming after the bell from microsoft and alphabet you're watching "closing bell" on cnbc. ♪ ♪ well would you look at that? ♪ ♪ jerry, you've got to see this. seen it. trust me, after 15 walks it gets a little old. i really should be retired by now. wish i'd invested when i had the chance... to the moon! [golf ball bounces off rover] unbelievable. ugh. [ding] so, who's it going to be? tom? danny? guess it's on maggie. plan today. feel comfortable about tomorrow. massmutual. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi,

just a valuation reset as the fed increasingly, expeditiously is the word, looks to raise interest ratesst hikes >> i will not deny the market is telling you we have rushed into some version of a late cycle environment. that's what the sector leadership tells you it's what it tells you when the fed is in a hurry to try to restrain inflation it doesn't mean late is on a clock. it could stay in late for a long time you could also mean -- the leading economic indicators today at a new high. on average, it's been like almost a year after those peak before you get a recession so it's not as if there's only a few grains of sand left in the hourglass here >> i also want to point out, chris, the dollar which is strengthening. another byproduct of all this fed hiking up another .25%. hitting multiyear highs against currencies like the chinese currency, the japanese yen, more than 20-year high, the euro even have investors factors that into the earnings outlook >> that's not in earnings estimates yet. that hits some of the multinational companies. certainly some of the relative strength in the u.s

bad news, you still have sell rating eps it's hard you can't knock it on valuation.ed here. the stock is able to close above 138 aways away, you might get a break out. i think it's a fine quarter. don't think there's anything to hate not a lot to love either other than the cloud growth. got to close above 138 in my opinion. >> is a read through for the cloud sub sector which has been clobbered this year. the cloud etf is down, what, 19% year-to-date is this a good thing or bad thing, pete? >> well, i think, that's a really good question when you look what they did with the cloud, hybrid cloud up 17% or cloud itself up 14%, mel, those are decent numbers, i'm pretty impressed. i think why they are pushed against other cloud companies those were a lot of names with extremely high pe's or no pe at all type of names in that category outside of microsoft and some others, it's an interesting or odd comparison to be honest with you because it lines up more when you look at the cloud side of companies you like amazon, microsoft, those kind of names. with the five percent divi

. $54.20 a share, at a valuation of 43 billion. today we're going to look into is that the right price? what's the right strategy for the business and the right process and who is the right leadership for this company? twitter's board holding an all hands meeting at 5:00 p.m. eastern to discuss the bid you know, this is quite a story, julia. i know that you've been talking about it this morning as well. you've been covering following twitter for a long time. back up for a bit and 54.20 a share, not necessarily a bad price for a lot of people, but there's a question how is elon going to come up with that money? he could sell some of what he's got to do it, but will he? >> it seems like he's unlikely to do this by financing it all himself and selling shares we do see some pressure on tesla shares as a result of that question, but really so many questions here, jon, and guys about what's going to happen next the ultimate question is what does elon musk want to do with twitter? is he interested in it as a business venture he says he ca

maybe even ex growth as they say an converged valuation on an erntdnterprise basis, forward with disney almost got together a couple years ago at a significantly higher valuation right now down 15 times forward to cash. a good way to value these media businesses when they have a little bit of debt on them it tells you, of course, we have caveats. cash flow estimates could go down disney is not all streaming. have the parks a different mix of businesses, but pure media companies even cheaper than this. looked at paramount, ten times, comcast, eight, seven times, something like that. showing people are essentially saying can't count on it being a growth business. >> and cascade selling across names. disney down a lot and paramount and in warner brothers discovery. nearly formed company. the question is, if these are growth stories on streaming, is this a ceiling >> the growth at expense of, what expense of the more stable cable linear cable business for sure for some businesses. other piece for netflix, model was going to work at a certain subscriber number. continuing to spend this heavi

treasuries, those interest rates should be a tail wind for valuations, yet they are not right now. in fact, those moves are even more exacerbated than the downside so if that is the case, that we are seeing right now, it may just point to this notion that there is a, again, general risk aversion people are trying to de-risk their books, get to a point where they feel as though cash is better put to use somewhere else down the line because they think more downside moves are coming, guys. >> that's a great point. we spoke to morris mark yesterday, he said he is in an increased cash position, a number of hedge funds are doing the same, dom, last week, i think we talked about heading into earnings, you're looking at some of the stocks that have been beaten down so much, that even a little surprise to the upside could put a floor under their stocks but that isn't even looking like the case. especially in today's market you see names like paypal, and shopify, the big megacaps but the big tech names are getting killed. >> not just that, a lot of traders like to look at the statistics arou

they have better valuations. >> sure. and some of the individual names may surprise people. for instance, foodline's parent company, a hold, you also have general electric in here, a battle ground company far long time truist financial let's start with the food line parent company why this name? >> so this is ahold. and they are well-positioned as a retail grocer. they have a 60-40 split between the u.s. and europe, and they're number one in the neterlands and belgium, and their strategy consists of increasing the risk of higher margin items like fresh food and private label building a mini amazon in countries and improving their omnichannel offers a decent balance sheet and a 3% dividend >> would you describe others as differently? >> i describe them as different. but they underperformed lately, and we think they have good risk reward ge, diversified industrial with leading market share aircraft, engines and medical diagnostic equipment and the strategy is to streamline the operations, strengthen businesses they decide to stay in. strengthen their balance sheet by paying do

we'll have glimmers of hope, but the bigger picture says that valuations are contracting and that is painful and also unbalanced so what we will continue to see is the tostocks with extended multiples continuing to contract they will make up the market >> we made this opponent in a few times, if you say don't fight them when they have the fire hose out, but then you say fight this own the way because we all know it is coming and in the market, that doesn't work. maybe we're learning that. >> yeah, i think we are, slowly. not very vfast, but slowly i think the most important part of the week, and joe hit is exactly on that doesn't mean you turn and burn to the downside, either i think a lot of people just expected that. look at gold, look at all of the various different commodities and especially natural gas we have sun taned and built on some of the inflation products that we're looking at each and every day, right when you go across and you look at erg, yeah, there is still inflation. did it peak? maybe a little bit, but if it has, that does not mean it doesn't sustain, and right no

they are the 25th percentile of their valuation metrics over the last five years. you juxtapose that with consumer staples that everybody has flocked to or utilities, they are on the expensive end of it. i think the market participants are going to need to be selective here. it's really a -- an approach where you want to look for bargains as we are at the bottom of the trading range. they are going to be in software and semiconductors. there are headwinds on technology. i would couple that with dividend paying stocks. that's where you focus on the environment. as we are talking about valuations, it's going to be a story of relativity and bond yields have a role to play. kailey: we are at 287 on the 10 year. have we seen the peak already? anastasia: i think it's hard to say that. it's hard to rule out this is it and the fed is not going to be more hawkish. the numbers are still strong, inflation has not shown signs of picking. the fed is going to have to be decisive. they want to do more, not less. they want to frontload rate increases. the fed has this itch to be m

we know mechanically valuation at higher interest rates will make stocks worth less we still don't know how these company will function in that environment the fed is going to hike 50 bips next week, and probably next month. i think the market needs to sort through some of it, and i don't think it happens overnight. >>> let's turn to china. the impact of lockdowns are affecting tyson. let's get more from the senior policy analyst at longview global great to have you with us. great to be back, melissa. it's so reminiscent of the early days of the pandemic, what are you telling clients, or how are clients planning for continued supply chain disruptions have we learned anything from living through the supply disruptions during the pandemic? >> i hope we have learned what it means to have a situation where china goes into lockdown i'll tell you, melissa, there seems to be no end in sight. xi jinping has maid it clear pandemic control will remain in place, die speed the pressure internally and externally to try to have a more reasonable control policy i don't see that changing anytime soon i

when valuations come down because of inflation concerns and general market reset, people tend to be morethinking of going public, even filed confidentially, put it on hold some think the window could open as early as june, others thing the fall time will tell generally, what's happened historically, a major company goes public, and that opens the door for others to follow. i suspect it'll happen, but i'm not sure whether it is a dynamic for summer or fall. >> put more confidence in the ipo market. >> exactly. >> thank you for joining us. appreciate it. >> thank you. >>> we have much more from here in miami after the show, we have another "tech check" plus livestream ceo of crypto exchange is happening at 12:30 p.m. eastern time >>> wbitcoin hovers around 40k. twitter, (vo) for me, one of the best things about life is that we keep moving forward. we'll be right back. basically, choose what we want our future to look like. so what's yours going to be? - hiring is step one when it comes to our growth. we can't open a new shop or a new location without the right people in place. i couldn't k

the valuation is going to be $100 billion.world's most valuable startup after to others. this is a fast fashion brand. it is an interesting funding round we have to watch out for. haidi: how could they manage to achieve such a high valuation or expectation despite covid? >> a number of factors. according to sources, they jumped a lot in 2020. a lot of shoppers were at home and buying online. also supply chain success, they can turn around lines to production in 10 days. it helps a lot in fast fashion commerce. we don't have information on their revenue, but we can imagine $100 billion, their revenue really jumped again in 2021. haidi: let's get you a quick check of the latest business flash had kinds -- headlines bid the u.k. planning to nationalize gas pumps of a company. they may take over a struggling utility if they fail to secure financing. the gas supplies roughly 30,000 u.k. customers put -- customers. a takeover proposal was abandoned, if the company doesn't get due diligence it has been requesting since november. it s

denise: it is the relative valuation. it is the starting point. it is correlated to macro factors. there are certainly times when you see macro factors get linked up to valuation, if you look at them together what you will see is relative regulation is almost more of an impact than macro factors. investors have to make less of a macro called and look at the odds of outperformance from valuation. lisa: based on that look, how much more does big tech have to fall? simply based on what is big into the market with fed rate hikes? denise: in some ways it depends on earnings at the end of the day, and this could be a long process. it doesn't have to go down by a lot, it may not outperform for a sustained period of time. on the other of the ledger is what is happening in value stocks is strange. value stocks are always cheaper than the market, if you measure them in terms of how many standard deviations they cheaper versus the market, what you will see is we are pinned to the 90th percentile. this is rare for coming out of an economic recovery. what you see is the counter opposite you saw

that is somewhat normalized and the valuation of equities, u.s. equities, is more consistent with the average for the last many decades. therefore, inside the market where does one think about stability? and the idea of stable growth and low volatility, those are the attributes that are likely to outperform. we think about it in the context of why are real rates at the levels they are? the fed is looking to tighten financial conditions in the economy is slowing and that is our forecast. that combination of slowing growth and a tightening financial environment, that would suggest more stable will outperform. anna: you like stable stocks. good to see you. let me ask you more on the relevance of the positive real yield. it was brief. we are not trying to read too much into one number when it crosses 0% into positive territory. but does this make you increasingly less keen on technology stocks, for example? that is one of the more obvious trades people .2. david: i think you want to think about it in two pieces. there is a group of highly profitable,

valuations have adjusted for the inflation.nies have to address the current pipeline situation with all the disruption they definitely have to have their ducks in a row. there is no rush to go to the public markets at the moment. there are plenty of ways to raise capital. people want to make sure they are ready. what i would say is we see a healthy pipeline. the pipeline for companies is greater than it was this time last year. we are very optimistic about that. caroline: talk to us about whether or not there is a disconnect between the public markets and the private markets. >> i think we are starting to see that close. what i would say is public markets tell you exactly where they think things belong. private markets respond a little more slowly to that. i don't think that is a bad thing but that is one of the key differences between the public and the private markets. companies that are looking to go public understand that and they have gotten their heads around their current valuations and what the market expectations might

also, if you look at valuations on those same measurements, relative to small caps, it is trading at steeper discount. i think that perhaps small caps would be a little cushioned here to the downside from value investors. but i think that the trade structure that mike is using is what you want to use as he said, we're down 20% already we're selling lows, hoping that the market goes even lower you want to protect your risk in that particular example. he's risking 3% of the value to trade a debit put structure like this, and he's targeting that 170 level, which is from a technical perspective where i would target i like the trade structure i do have some concerns from a valuation perspective. >> all right up next, we're streaming right into some tweets on netflix. that stock's wild week "options action" is back in two. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g networ

the one thing i think is a little different this time is really if you look at the valuations of theussell 2,000, right now it trades at a fairly substantial discount on both a trailing and forward p/e basis relative to its history. if you look at valuations on those same measurements relative to small caps it's trading at a steeper discount small caps could be a little cushioned to the downside for value investors, but i think the trade structure mike is using is exactly what you want be to use. as he said, we're down 20% already. we're effect ly selling lows hoping the market goes even lower you want to protect your risk in that example he's risking just about 3% of the ets value to trade a debit put structure like this. and he's tar guesting that 170 level, which is from a technical perspective where i would target so i like the trade structure. i do have some concerns from a valuations perspective >> all right up next we are streaming right into some tweets on netflix and that stock's wild week "options action"s back in 2. the sleep number 360® smart bed is on sale now. why choos

even though you would think of it as a growth and has potential for its valuations to come down.e to maintain consistent growth and consistent operating margins but the real reason to get in the stock is if it can lower the 30% commission so that apple's been most popular of 30% fees but really paid across the board ea sports is a top profit line they're in a position to negotiate the lower commission rates and with the pressure from regulatory and competitive if they can get the lowered fee, increase the margins that's where we can get that valuation expansion and the higher prices. >> what about d r horton hearing about the tailwinds for generational demand for housing but it is a tough year in this area. >> yeah. from a very long term trend they might be great i don't get into the stock while the 10-year is rocketing. you can see if you look at home builders and particularly horton against the 10-year yield almost perfectly inversely core lated seeing higher interest rates it is not a sector to get into. as long as the fed is as hawkish as it is i don't want to be in the indus

higher rate will make that cash less valuable and its valuations as well. look at what this is doing to the bond market, the two year yield. it is starting to flatten the curve once again. some steepness on those rate hike bets but now some worries about how aggressive the fed in market pricing is. therefore you are seeing some curve flattening going into the weekend. as we talk about inflation here in the states, we have to talk about inflation abroad as well, especially ahead of the french election where you could see movement in the euro. chairman powell said he prefers to frontload the rate hikes. president lagarde diverging from that and says instead we will do a gradual increase. we will be watching that. anna: thank, kriti gupta. let's take a look at oil, heading for its third weekly loss due to tumbling chinese demand. jp morgan is watching the eu ban on the potential for it. it has warned brent crude could get higher, $185 a barrel. joining us now is the analyst who wrote the report, natasha kaneva from j.p. morgan chase. nice to see you, thanks fo

jonathan: when you thing about valuations you think about the real yield in the body -- body -- bond market. lisa: people a been watching this because it changes the dynamic. to put this in perspective, real yield was positive. it was normalcy. now it is an abnormal see, but we are getting back to that place. how does that move the dial and some of the various calls -- bearish calls which mark is a reflection not only of fund metals but valuation. jonathan: did you see bank of america get long treasuries over the 10 years. lisa: we have not abandoned the low-inflation trend that we saw pre-pandemic, but how long does it take it, and how long does it take the fed to disrupt the near term to to get there? jonathan: to 25 on the 10 year after coming close to 3%. tom: everyone has a different in pinion -- opinion, and it will keep us employed for the rest of the year. you can bring that over to netflix, quite frankly, but it is about growth in the american economy. if we get growth statistics that the imf was talking about yesterday, that is not all that bad. the market did a little bett