Tech Surges Back 12/4/24
44:48 Share

I'm scot opener and you're listening to c nbc halftime report, the podcast the most profitable hour of the trading day. You record this live weekdays at twelve eastern. Listen in. Carl, thank you very much.

Welcome to the half time before i'm scotland ter front and center of this hour research in tech nasdaq in a new record higher day, salesforce oca several mega caps on the move. We're trading all of IT as usual, will joining me for the hour, brin talking to joke, turn novatians road safety. We will go to the market.

It's it's Green across the board. Not that far away from down forty five k there is the S P. Five hundred approaching sixty one hundred.

And of course the as that, as we said, new record high up near one percent brand of giving the first tech is back, right? X, L, K, hitting its first all time high since july. So we've been waiting a little bit here for what we call a resurgence. And IT feels like we are seeing .

IT yeah me I think check ever left. I think IT took a small breathe. And so you definitely see especially with the amazon's the matters even apple, right? We are all left apple out for dead after the iphone sixteen launch. IT just continues to move up pipsy with the market. And so I think what you're seen is that although we have this broadly out gently of the market, don't forget these big names have a tonic cash flow still growing.

And so I just think between the Q, Q, Q in the X, L, K, you're going to continue to see these stocks incremental move higher as people are excited about next year and they don't want to fully put that out of tech into other things because we know these companies are growing still, still. Earnings are growing mid tens going into next year. In the year after that.

will move in around a desk in a minute. But I want to go to birth cus right now as we are getting some new information at this moment on the fatal shooting of the united health care CEO this morning in midtown manhattan. Birth or what do we know?

Now up.

please just wrapping up and update on the murder of brian thomson, united health care CEO, head of the company's insurance division. They said that the shooter this morning had laying and weight for the executive and shot him as he was going across the street to the Hilton hotel where united health was holding its investor day conference. Here's what police have to say.

This does not appear to be a random act of violence. The victim was in new york city to speak at an investor conference. IT appears the suspect was lying in, wait for several minutes, and as the victim was walking to the conference hotel, the suspect approached from behind and fired several rounds, striking the victim at least once in the back and at least once in the right. Caf, many people passed the suspect, but he appeared to wait for his intended target.

Police say that he was taken to the hospital and pronounced dead shortly after seven this morning. Meantime, the suspect fled on foot. He duck between and an alway between two of the buildings, and they have tremendous surveilLance video of him, a abundant of him, showing him then grabbing bike, rental bike, electric bike and heading towards central park.

That's where they appeared to have lost in. They also say that they found a cell phone at the event, uh, at the location. And they are overlooking that and looking into that.

They are also working with minnesota police to find out whether there was anything else that may have been going on and spoke as well with his colleagues who he was set to meet with. United health did start the conference this morning a little after ATM, but about an hour into that event, IT was cancelled. Scott, alright, birtha, thank you.

That's birtha cooms. You'll let us know of any more developments as we get them, as we follow that tragic story right here in in manhattan will move on. I mean, no easy way, say way off off of that horrible story, but do what we do.

You want to talk about what's going on tech. We've called IT a resurge in that space. Just to remind everybody what I suggested earlier, the x lk hitting its first all time high since july, its sales force today, which is soaring ocd a is surging. You've got new hires, uh as well for some of the mega cap stocks which will get into apple metal and amazon to well.

Scott, there there is no reason that if your looking at coming into two thousand and twenty five and you're thinking about some of the things that are really driving the overall market forward, a more progress th stance from washington, lighter on regulation and just overwhelm the improving data from an economic perspective. There's no no reason to think that tech can't be caught up in that as well. The question is always ban.

Is you know the valuation appropriate given the deceleration that's in expected on a year with your basis for earnings? And the reality is, is that if you look at the absolute in terms of earnings growth for these large cap tech companies and earnings growth for the other large cap names as well as small caps from an absolute prospect, that the earnings is still gonna very robust. And so the question really becomes, you know what part of the A I.

Trade continues to be monodist able? And then I think that's why you're seeing the response in salesforce. I think you're going to continue to see investors critically at the tech trade in order to understand where the capital expenditure is going.

If you can convert into earnings growth in two thousand and twenty five and five creates a Better dynamic where we don't see the same deceleration in our growth that's anticipated, then you could continue to see this bump. But I don't think that's what's happening here. I think it's just and overall foundational improvement and expectations for growth next year. There is no reason that the top growers within our investible universe shouldn't .

participate that so it's a self force day to stock because in the IT hit a record high. Joe, you owit we don't have a tone of others ship if you dive. We're lucky to day. We've got used to rad has IT as well. You want to just talk about this one before we move on, to talk about these other stocks that are on the move today and helping tech overall there.

So good there so much to talk about here because IT is having such an incredibly positive effect on technology, but most specifically on software itself. I want to go back to may third of this year, on may thirty of this year, arat. What is sells force? Tell us.

IT told us that we'd ever going to see the slowest growth in the history of the company. This is a company that bought slack. This is a company that bought news soft.

This is a company that bought tabo. Why is the excitement there once again for this company? Because it's about AI. It's about the AI strategy. It's about agent force.

You buy here, not here. It's up thirty, forty five years. Yes.

yes, you here, me let me just keep going on. This Operating margins, thirty three percent first thirty years said, but no. But here's the in get here is what's so critical about this? okay.

Now if you are an investor, there are more places to think about the AI opportunity than semiconductors and polenta. Look at the effect today on the entirety of the software industry. You've got cats, you have synopses, which is coming back to life.

Two names we've talked about so frequently. You have data dog, you have oracle software. As we move into twenty, twenty five, I know a lot of people talked about, okay, let's make the pivot out of software in the semi conductors. No, I think you want to be in both places because it's clear from sales forces report that A I is having a beneficial impact on earnings and lifting the valuations. These stocks .

where etf is the I G V, and that's coming off its best month in a year that shows you the outperformance that software has had, especially relative to semis and IT really has been no contest a over the the last month or so. If you look at the performance of those stocks, by the way, oca CEO can be on mad with jim the night you don't know, miss, that's A P. M.

Exclusive, so will come off of that. You use the I have sales force. It's obviously giving a little of what you can talk more broadly to about the the tech space, which feels like it's now you know, it's spotted a little bit, slept for a little bit and now IT feels like it's back.

It's back and it's in your warehouse. It's the momentum play right now because what do you have? You have revenue growth and Operating margin growth and those of the things that we were looking for.

And then you add to other technical things such as money moving away from some conductors. Look what have with microchip, intel, right? Asset allocation within the technology sectors moving toward software.

The second party is if you look at count with the new administration, where's money flying? Well, it's not flowing consumer stables, health care. So where else are people going to start allocating money? You want growth .

and you going to urn with strong momentum. You time well too. I mean.

you you bought sales force two months ago.

Sometimes the ming worked out.

IT worked out and and you know, when we own oracle, we own work day, we looked at this one. We said, you know, we've never been in this one, but all the things were pointing towards they were using A I, they were using growing into their customer bases, which I really like expanding the total addressing market. So I still think to your question to would you buy IT today? Yeah, I wouldn't take a full position, but I would definitely .

label into IT today. Well, me, that becomes the question for a lot of these stocks. If you if you show, you could throw up again the the the I G V, the software tf, and you give me, I don't know, give me a one month, you'll see what has essentially ban a straight up to the right move.

Um do you buy more? Jose's, yeah because you bought more crowd strike and you bought more tWilly. O so you're planning right into that momentum story.

Yes, personally I own tWilly. O, I added to the position. I think finally, emerging software is participating now in what has been a large cap software story for the Better part of twenty twenty four crowd strike for sure.

Look, IT shook off last week. Last week's earnings report was very strong, but the earnings guidance had like a two cent miss. And the street was like.

oh no, you know that that's a problem .

for crowd's strike? No, IT is not. This stock is well positioned to exceed four hundred. Once again, cyber is clearly a thesis, and crowd strike is executed on that. So we have ten point nine percent ownership of software in the etf strategy. And I really believe it's it's the right place to be that, along with financials, is where momentum has built throughout the year, and it's the reason why we have those position.

Member bradburn, you're telling us so out a couple weeks ago and sanford, cco a shand software, clearly back after the year, one of the winners, we think it's just getting started, just we're still trading under that ten year average. He told us. Remember, he is the one who in many respects, at least for us and for all of you, call the bottom in in that space several, several months ago.

I think the other thing is that to jose point, I mean, sami's were the easy button for A I initially, right? And then there was this perspective that is likely to prove this guided that all you are going to see is that as a result of CoOperation of A I, that we're going to need less seats, you're going need less people, you're going need less software.

In fact, you're actually what you need is you need software that is incorporates these I tools. And so you think about the success that oracle is had so far, you think about what um sales works is guiding for. You're thinking about the extension of that land and expense is just the second phase of that. And I think that to jose point and I was going to ask, you know, glad you say to IT, you know it's not semis or software. IT really can be both, in fact, in this ability to show monodist able results out of sales force earnings here, Scott, that's the difference because now we're actually starting to see IT in action and we're seeing soft companies be able to incorporate IT, not lose seats and in fact, potentially get new customers and expand their wallet share as a result of incorporating this.

So mega caps, apple, amazon, meta all hitting record highs today. Will of research today talks about these stocks now coming alive. Those are are their their words.

It's interesting. You have testers up forty percent since the election. Meta is up seven percent alone since okba a went to maroo go to have dinner with the president elect.

Prisoners can be a line outside the gate, right? Ceos wanting to keister ring and you know, have a conversation with the president elect and then if you go there, then you're stock. It's prety remarkable, don't you think?

I think I think IT is remarkable. I also think from the perspective of being a portfolio manager, there's this trepidation last couple days, if I conversations with large cap growth managers who have said, oh, here we go. The concentration is back.

All of you talked about the broadening ing out the market in the breath of the market, not, uh, it's gonna the mag seven as we move forward. When I study, what I see right out of the earnings in all these companies are relatively strong. I don't see apple.

Having the type of earnings growth that you could see in a lot of the other max seven. But to me, IT is clearly, clearly tesla and amazon right now. And I know there's been a lot of members of the investment committee in the last couple days.

I know josh was talking about IT. He's long and apologized to forget the others. But I ve heard so many people talking about amazon and I think amazon is the right place to be. I do believe that. But i'm not so sure yeah.

i'm not so sure as you go into twenty twenty five that here we go, we're turning the page back to two thousand twenty three and you go to see that .

narrow concentration. Well, maybe maybe don't see the narrow concentration, but you can still see outperformance take from a group that many we're suggesting wasn't going to outperform the other part of the market this year. Remember, from a regulatory standpoint, you could go down the list of so many the different mega cap stocks and you see regulatory actions or retorted under the current administration.

Um and now you have, like I said, sucker berg going down a morale go. You have tim cook who we have suggested I think IT was Steve kovach as reported in the last several months about the unique way that tim cook has developed a relationship with now president elect uh, trump maybe the winds of of of that of regulatory headwinds, maybe Better said our changing. So for these companies and they see in opening.

they absolutely do. To your point of ceos coming to see the president leg, you know, country heads are coming to see in the president like so I think you get a broady of the economy and the mega caps are taking advantage of IT. And I think the fear for next year was, well, what's the earnings is going to be as a cop. And you're seeing that now slowly changing that we're getting Better forecasting into next year. And if that's the case, these stocks are going .

to stay where they are. Yeah, we have more action from the committee. Let's bring in Kevin simpson. He joins us now. He just bought more Better a speaking of that stock at a new record high today will say yet again, why do you do that?

I think for all the reasons that you've discussed, there's tremendous momentum behind these trades. And there's valuation here like this is a stock that we don't think is overvalued by any means. You look at the forward P E of twenty five and you think any type of double digit earnings next year are going to be a created to the bottom line.

They they so focused on shareholder value, the initiation of the dividend. Scott made this a really unique trade for us yesterday because not only that, we added to our new growth strategy in the Q D. Vo, but we also bought IT in our flagship division strategy.

Their buying back shares forty one billion dollars committed to shareholder by back and reduce the float by ten percent over the past three years. This is the first time. And you know who knows how long I will be again where we're buying a stock, both and gross strategy and a dividend strategy.

But I think that speaks a lot to meet IT how they check out so many boxes. Advertisers now approached over ten million. The daily users. The monthly users are increasing year over year by seven percent. And we also look at this is a true hardware play. The act, the glasses, the medical st, the the ray bands and and the new and someday down the road are legitimate products that are actually competing with apple products and really excited about this dog, not as a trade, but is a true company that's continuing to mature over the next .

rate to five years. You feel like people were too quick, Kevin, to write off tech only in the sense of not writing IT off totally not suggesting you sell the stocks, but saying that, well, there's no way that they're going to continue out performance. I'm not sitting here suggesting that they're going to that tech.

Is the assets going to do another thirty percent year. But if you you just look at where the puck continues to go and the rink, if you will, continues to get longer. Altman, with with under the day at deal book, think patch I is later.

I mean, these are the companies where the activity is. That's not gonna change. Are the growth rates gone to be as dramatic as they were this year in terms of their their revenue growth? Maybe not, but they're still going to outsize everybody else in in the market in terms of what they're doing.

You said IT perfectly. People always pay up for innovation and that's why you have to have growth exposure. And I say this is a traditionally value oriented dividend manager sort of staying in the slow lane for the most part.

But even within our flagship strategy to twenty five percent of technology because we know there and also with financials, I think moving forward that that's where the growth is going to be coming from. So will I be as concentrated and isolated in twenty twenty five as IT wasn't in twenty twenty three? I certainly don't think so.

I think the breath of the brought an story is real. But to ignore technology and to think that you can tie IT, I think is a fool's iron. And i'll say, IT, i'll say that again, you will always pay up for innovation and and that's where you want to be.

Yeah, kev, thank you. We will talk to soon. Kevin simpson britton in agreement.

Yeah I mean, to pay up for innovation, I think that's it's a great statement as an under statement because actually if you look at salesforce, I mean, sales forces numbers were were fine right there and their guidance was eight to nine percent revenue growth.

So it's like that's okay, but it's like the market is going to believe market benny off when he's like this digital workforce is coming and we will monetize IT because you are clearly not seeing that being monotoned in any part of their earnings call yesterday. But the market is sane. We will pay up for innovation.

The market with tesla is saying we will pay up for this future innovation with baLancer even. And so I definitely see the market has this animal spirits that they really want to believe that these companies in the future will monetize. And that's that's where it's still the jury still out longer term is will they actually will microsoft actually monitise copilot a meaningful way? Mark ennio says, no, he will. And so I think that looks an interesting time in the market is people are still invested or still willing to give these companies the benefit of the doubt if they're just talking in their book about the future.

Well, he's been dumping on on microsoft at every opportunity that, that he's been given. And even when he hasn't been given, he's still been dumping on microsoft. A couple of things I want to get to.

I think we can show let's show us six months of the I G V verse of the s image. Just to give you an of the outperformance IT leads me to a move that joes made IT sort of underscores the point that we're talking about outperformance of software relative to semma. You sold broadcom.

Look at the start up in a moment. Well, you because you can't do anything in the E T. And we ers know that quarterly rebaLance, these are all personal moves when we talk you right now.

And let me you sold IT personally, which to me is even more meaningful in some respects that you decided to do that now. And Y, S, K, two reasons. Number one.

purchase the stock at one of six when the valuation was much, much cheap. As we're showing .

you right here, what i'm talking about, right, forms, blue line software, born's line semis, much.

much cheaper valuation. I know a steps talked about how the valuation has gotten rich on broadcom as we've seen significant appreciation. So that's one reason of bringing the register.

But second, darling, I don't need the position in two places. And let me be clear on something. My selling broadcom is not an indication that i'm seeing a determination and quality factor or the momentum factor. Each of those conditions are still strong, but I do not want to have a position both in the etf, which is sizable and then as well owning IT, personally ring the register using those funds to purchase and add to existing position.

Let's show another chart that I wanted to hit before we take our first break through love in please record high today of JoNathan Christ ki writing about that stock today, he calls IT one of the strongest charts in the entire market. Ah yeah ah, so up eight hundred percent year to date. Take that that looks strong, right? Is that child looks strong to you, me, two, two and half percent of day. Joe, you.

The strategy bought IT at the end of july at seventy seven. You know, IT was all me, Scott. I thought of this company, apple love, and I did the research. I said, you know, we have to go into .

IT if you want IT personally. Would you sell here?

Would you sell some here? Such a great question. That's such a great question that it's counter to what's going on in the strategy.

I think I I think you have to .

risk manage the position. I do I think you have to risk manage the position. I don't know if you want to go to brines world and and utilize options in some regard, but I think you have to risk manage IT my way of risk management IT as I would have a trAiling stop .

on the ether OK row blocks, sea mentions as well does chen sky today says looks poisoned to trend higher into twenty twenty five bring you on the stock I know the hindon burg report, the short report made an impact on you in your view of of this company stock um what about now though if you play a technical take against whatever you fundamental .

view you have at this point, I think that dave zuko has come out or the company has come out from the safety of the kid aspects, and they have put meaningful levers for appearance to be able to see what their kids are doing. And I think that, that was really important and that was what was daring about the hindu port. They've clearly refuted the financial claims they're making.

And I think the market agrees with road blocks that they're doing the right things. And so I think this is one of those trades that hindon burg will get wrong that mean they do they do great work. But I do think the market has move past IT. And they are citing with the secular grow story that damage op in continue to be able to give robo x investors.

I mean, i've try to to take a head on, you can see how the market has judged IT since the I guess, the middle of spring in in may very go in the recovery that happens. So the stocks at fifty four boxes up another one percent. Today, I got another move will do, but we'd in a little while, and we're also going to a chart of the day coming up. It's a retail stock we need to tell you about because getting hammer today and the broad implications that IT may have for other stocks in the space in which IT place, let's talk about IT the next.

Alright, one stock not Green today, that's for sure. Footlocker, our chart of the day down six percent. Earnings miss for your guidance was cut.

Heavy promotions leading to weakness. Their CEO talking about softness out of nike. So nike's problems becoming others as well.

Joe used to own nike. You don't? You never own foot. Lucky that you did. No, no.

What I what do I make of of this story? And then how I think about other stocks within the space? Because it's all tied together.

It's all tied together. Nike y's weakness, which has been prolong ged, is hurting footlocker. Nike's weakness is giving opportunity for market share take by on by oka and by others.

Deckers today is a new high. It's a record high for that stock. It's up eighty three percent year to date.

Talk me. I mean and that's that's exactly the way that we are be playing IT in the strategy is through the ownership of deckers, and that's what this is about. Um those deckers have to promote to the magnet de.

That foot locker has to promote. The answer that I obviously is know that it's not there needs to be a change, a complete change in the strategy for footlocker. And I think this company is primed for some form of activists.

But if someone steps in here and really tries to turn this company around and get IT positioned in the right way, and i'm not necessarily sure how you do that because there's such a present in the old work and water framework and how do you break that down and vivid accordingly? So I think there's secular chAllenges here, not as cynical ical chAllenges. And I think you're correct. I think it's also hamstringing nike.

But I mean, can you bring have a Better footlocker without a Better nike or they just too attached?

Well, do you remember I guess I was two years ago, boolean er was down because nike was going direct to consumer and just use serving foot locker. And so I just think that the retail space, especially this space is investors. The consumers likes change, like right now everyone wants to buy on and that we'll probably last for a few years.

And so I think this whole space, especially within shoes, is incredibly cyclical. And so I think you have the time these trades, right? I don't think there are secular tail ones.

I agree with the show. There are secular head or secular headwinds. And so I just think this is for me in the two hard bucket.

I mean, look at lily lemon. It's like everyone loves little one lemon and then women, we change what we want to buy. We go to allow or a let exeter on. So I just think this space investors and like the airlines, more trade the space than invest in the space.

me. The problem is brings, like lack of innovation, which is what people tag nike with, isn't necessarily cynically at all. This could be a secular issue, which lasts for many, many quarters. Before you get IT, right, you can all of a sudden start, you know, innovating and produce shoes that that people want to buy at the snap of the fingers. I don't think it's .

innovation because I think it's about I don't think that's the right way. I'm thinking about IT because innovation to me is like china logy. I think nike is very innovative with their .

shoes have to themselves. I mean, people, that's part of the story and it's steal, right?

And so it's like the air Jordans were really popular, but they are most sold third party. And it's just like the investor the the consumers taste change and ninety has not been able to capture what we want to buy because clearly, if you listen to ones ones earnings call, they're gaining market share. Listen to um listen to deckers via hok a, they're gaining market share.

And so there's only so many consumers that are gonna buy shoes and thereby and hooks and awns and they are not going to foot docker, not going to nike. And I just continues to be in the two hard cap. And also with nike, you have to deal with china. And so why do you want to go into nike next year also with the .

china hangover as well? I just show the lift the new CEO has. Chen.

yeah, I think that I mean, do about this up the broken more to retail. I mean, if you look at broken more to retail that have been retail that have been successful is because there is a rational that there is something different there that is difficult for you to obtain. The e commerce or IT is a differentiated product.

And if you think about shoes that much easier to obtain. And even for a nike itself, I mean the director consumer aspect to be able to go on to an APP and get that drop and be able to buy those shoes without ever going setting put in a store. So I think when you're thinking about bricking more retAiling particular to be very thoughtful about why consumers are going into that store and if they still need to with an effective commerce china.

we will get the headlines now with savana. No.

hi, sooner he got. Good afternoon. Well, as birth is mentioned at the top of the hour, a manhunt is underway in new york for a gunman who shot, killed united health care CEO bryan thomson as he headed into an investor day of then add mental manhattan early this morning.

Police say the gunman was lying and weight and shot thomson and repeatedly from behind before fleeing on an e bike into central park. New york's police commissioner called IT a brazen targeted attack, thomsons wife tells nbc news that he had been receiving threats. Israel's defense minister suggested today a hostage deal with homos may advances during a visit to an airbase in central israel.

He said that a deal might be possible due to increasing military pressure. Homos is estimated to be holding around one hundred of the original two hundred and fifty hostages, though an estimated one third are believed to be dead. And president biden met with african leaders today to advance the plan to extend a railway in the continent that would channel minerals from congo and zambia to the west.

The us. Has provided in five hundred and fifty million dollars, one to refurbish the network. The president is now headed back to .

washington, heading E. S. Bit coin break down, slipping farther now from that one hundred thousand dollar level. But we remain on watch for that milestone. Plus the one financial services stocks soaring more than two hundred percent this year is too late to get in. Tell what IT is, and we will definitely debate IT next.

Are welcome back following bitcoin, of course, that march towards one hundred k or pull back depending on how you want to look at IT. The rally has stalled. Bring you in the space of how you think IT about this here?

yeah. I think that you know investors need to know inside of like egypto market, there's a tremendous amount of leverage, which I think is gotten exuberant with people's spirits have gotten exuberant. And from what i'm what i'm seen in the past twenty four hours, uh, there's been about six hundred million, which is in that big.

But still you you're seeing this like big on wine, which really is just a margin call of people get into levered. And so I do think investors need to understand this asset class has a ton of volatility, but IT also has a lot of leverage in the system. And when those margins called, you come in, you're gone to get magnified moves. I mean, bitcoin n's not seen a magnified moves, but underneath the surface, a lot of the other or several of the other currencies .

have been my speaking of crypto trading, Robin hod holding its investor day today, that stocks up more than two hundred percent this year. Our kate rooney is following that and joins us now.

Okay, nice guy. yeah. So this is Robin hood's first ever investors see LED tenant on stage laying out this ten year game plan for the company. And some pretty lofty goals. For example, they are aiming to be number one in options by twenty twenty seven, number one and equities by twenty twenty nine, and really going after active traders and the seismic wealth transfer.

So an estimated .

eighty four trillion of assets owned by older generations is gonna inherited by Younger generations in the next two decades, the largest transfer of wealth in human history. And this is significant, not because so much money is changing hands, but because it's changing minds.

Ten of saying that seventy five percent of clients now are millennial or genes y an average of sixty five hundred per account. That's double since twenty, twenty two hundred and sixty billion or sell under asset that's still pales in comparison to the trillions of shop. And but they are really trying to guard against what's described as graduation risk and the stigma they described among strangers that Robin hood is still for newbies.

They say they are trying to change that. The election prediction markets also came up and say they, that went pretty well, are going to launch new events markets in the future. Talk about opportunities in crypto o banking A I got some attention and an international big part of the bull case opening up in singapore, they said today also plan to expand in asia stock up slightly the day it's up more than sixty percent just in the past month.

Yes, yes, remarkable. yeah. Thank you. Kate, raining brain. How should we view this stock um given the prospects of what kate laid out for how they want to continue to grow, get new customers with the fact of stocks early up two hundred percent this year.

So I think to go back to IT glad was talking about I don't think you should underestimate that, that you're onna have over the next twenty years. This this eighty trillion dollar well to transfer is a huge, huge number. And then if you look at current, I think fidelity has about seventeen trillion and as such jobs somewhat similar.

Robin IT has, I think, one hundred and ninety billion in assets under custody right now. So just a fraction of these big behaviors. And so I think where Robin hood is interesting, I mean, to me you I didn't like Robin hood originally is like I don't think you should have balloons pop on your film when you buy a stock.

I think that whole came fiction um is not a good way to start investing. But as they've grown and matured, I mean, this company has earnings, they have cash flow, and that is able to capture this. They can capture coin base assets, they can capture the the traditional custodians, and I think also the easy abuse.

So I think this is an interesting name to watch. It's still as a relatively small market cap. So it's had a good movie here today. But I do think if you wanted to play the secular wealth transfer, um this is definitely a name to watch and IT is earnings positive. So this is not a speculative name from a baLanced perspective.

do you get enough momentum and quality here to buy IT?

So b brand highlights the fact that IT is low in terms of its market capitalization. If has now reached a threshold where IT could be considered for the strategy and IT does meet quality and momentum factors. I think this company is growing up right before our eyes.

I think this company, years ago, was clearly a technology company that was in great need of some season financial professionals and legal professionals. And they would dan gallaher there and Steve cork there. They're getting just that and they're getting to the right place. So i'm excited for them and at some point will see what the strategy does certainly with there right now a coin based interactive .

brokers and trade webs somewhat related. Um you bought new holdings, the digital banking holding company, which by the way got downgraded to sell couple of days ago at city Price target was cut to eleven from fourteen sixty. So why do you buy? And obviously.

I disagree with that cl call and most analysts, by the way, have a bike alban success a bye with the nineteen thousand dollars target. So this is a digital banking company with a focus in south america, specifically brazil, a little bit secondarily in mexico. This is a company that has hit the metrics in terms of a strong baLance sheet, strong fundamentals and IT has had momentum.

It's been in the quality momentum. M tf. It's pulled back thirteen percent over the last five days. So I felt taking a position on that pullback, going along with the strategy the rules were dictating, made sense.

right? Santa is next with his midday word right after this, right?

Singing Marks committed to my santa is here a post time for his midday word? I mean, we let our show on the idea of this resources and in tech yeah what you make that .

it's obviously got traction last couple of days but in particular um almost like the old favorites of tech from the first half of this year because if you look at some of the real hot stuff recently, pent tears back and off a little bit today.

And so IT does seem as if the shortest path between where you are and having more exposure at the index level is the stocks IT is constructive that the tape is kind of boring and rotational and allowing a lot of IT to cool off while the index makes new highs. It's definitely seeming like it's not yet time to overthink IT. You know, a lot of these things remain in effect for now. I'm just keeping an I on a lot of those things that maybe are suggesting that either were going to get some kind of an overshot or that we're letting our guard down. But IT doesn't seem to matter.

I thought you were going path to to stocks higher than where they are now. Like talking about this was the road metal logo, how you marvel yesterday. I think you the one who who said that made up seven percent.

basically in four trading days that take a lot of these stocks .

s are trading like .

as if there they have some kind of favorite status for one reason or another, whether it's not does that mean microsoft has a problem? Um I mean, I know that's the biggest problem, but I do think you're going to see folks trying to get .

on Better terms.

I wanted be a little like get .

a ticket to west pole beach.

your good post election prin auguries. What else are you going to do? But you make a gesture.

And again, the market is a seizing on these little bits of one excuse or another to buy something. And really, it's been the high turn. You together, you just talking about Robert od, I mean, that charts wild.

yeah. So is apple of water and apple loving and microstrip. Gy, so that kind of this high turn over high energy part of the market of key pointing out that's not really pulling the rest of the market in a scary direction or anything.

I'll see on closing down to my and tolly journey here, and i'll see in a couple hours four bullish calls on four committee stocks coming up next.

Okay, welcome back time for calls to the day. We'll start with uber a day reiterated by ninety books the target red burnett landy. Compelling value despite the need to improve the value proposition brand, you're first.

Yeah, I mean, I I agree. I I own this name. Listen, this time next year, we're expecting fifteen percent revenue growth, twenty percent earnings growth for twenty twenty five.

I think this pair trade between people being short tesla or or short uber long tesla. I don't think that makes sense going into next year. These are two great companies that can both do well. And I think that hair trade will somewhat descend a grate next year, especially when uber starts delivering earnings. Something it's a great way to pick up the stock here.

Seventy one joe sold IT personally and that I mentioned on air about a week half ago, I thought I probably had bottoms around the sixty seven levels, seemed as though myself and others had cut back on positioning. IT does seem as though since october earnings, it's kinds sideways. It's really no words between sixty seven and seventy six.

And i'm not so sure that the positive momentum, which I agree with brain, I expect will restart in twenty twenty five. I'm not sure that happens. A title february when you get the .

next earnings. I turned to two. I like IT, but I do think that they are a complete show me story at this point. Execution and the regulatory risk is the one side that I hope doesn't come in because that could be like to put the top, okay?

Apollo reiterated overweight one eight eight. Piper ser says stocks going there. Potential S, M, P, five hundred inclusion as a cattle is thin.

I think I should be, and I think IT is going to one eighty eight. Anything private I could be related has been phenomenal so far, year to date to a point earlier. Let's think about IT. We have the benefit as shareholders of Apollo, of mark roman still being the CEO and also obviously having the year multiple years at mora .

log o if I could jump in that all sector, if you take blackstone, K K R, Apollo areas that has a huge monetary in behind IT because wealth managers are looking for alternative products. And these are the fears. All of them really into them absolutely .

have accelerated realizations. Next year, I mean, we are going to start to get distributions.

which helps with fundraising and allows people .

to continue to comment and also add carlia.

The entire the industry .

is on fire still on A E S. I do body on social media want to take on the stock is up .

to almost three percent today over I was moody came out actually um yesterday and said we're not going to have downgraded its on watch. So yes is we don't think it's going to issue equity if you're buying A S purely on the utility value and is a single this multiple, you're getting all the renewables for free. So going into you and you're not going to see a lot of momentum behind IT because it's a huge tax ot cell.

We are buying IT. I own IT. We owner is a firm and I think going forward, it's got a five percent of a yard. So it's a good safety stock within you're perfuse ly OK.

Well, we try and be interactive. You ask, you get thank you for that. Finals are next.

Bring a neues alert. President elect trump says he will nominate crypto advocate paul atkins to head the c. Talk a lot about big coin that march towards one hundred k.

It's certainly been on the move since the election. Gary against ari had suggested january twenty he is going to leave his post. So that is the news we get in there is bitcoin as we watch IT pulled back a little bit today.

IT is at ninety five thousand four hundred and eighty three finals or next. Some quick final trades. Bring your first.

I'll stick with uber.

right, and finance the t trim. E, Q. Thank you very much. On the closing bell, you've been listening to c, nbc's halftime report, the podcast. You can always catch us live weekdays at twelve etern only on C, N, B, C.

All opinions expressed by the halftime report participants are solely their opinions and do not reflect to the opinions of C N B C. N B C universe sal, their parent company or affiliate, and may have been previously disseminated by them on television, radio, internet or another medium.

You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an impediment. Such opinions are based upon information. The halftime report participle consider reliable, but neither cnbc nor is the fillies and our subsidiaries warrant its completeness, accuracy and IT should not be relied upon as such. To view the full half time report disclaimer, please visit the N B C dot com forward lash halftime report disclaimer.