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As we said, Lanar, even dollar stores earnings on tap. And not so invincible in video, the chip giant notching. It's biggest stock reversal in nearly seven years, and it's biggest single-day percentage decline since last May. Plus, targeting TikTok. There's a bill that's moving through Congress pretty quickly that could ban the social media platform in the United States. President Biden says if in fact it passes Congress, still sign it. Let's begin with what will be a very busy week for the markets, ended Friday with a losing week for the S&P. Haven't done that. Only a few times this year, although didn't stop by your former employer from some pretty bullish coverage. That is true at Barents. Third down week in '19 or something like that since the late October low. So in the grand scheme of things, it looks like a hiccup on the charts. I do think the nature of the decline, though you mentioned the reversal in Nvidia. And the fact that we had a almost made-to-order jobs number, and everything was sort of filling in the blanks of the ideal soft landing scenario in the market, didn't exactly shrug, but it wasn't able to capitalize on it. So I think it really kind of highlights a couple of the things that people have been suggesting would be tests for this market, which is it's become a bit over-reliant on pure momentum in certain segments, meaning those types of stocks that have been doing well, that are had the highest upside velocity, have been performing the best. Nvidia is like number one in there, but it's part of every sector. I keep pointing out Lily in healthcare, Costco in consumer. And that sort of had a bit of a gut check. And so it's a flow issue. It's not a fundamental issue in this instance. And I think that it just raises the possibility that you'd see this little bit of an unwind of the trades that have been overplayed. And we don't know if it's going to continue in videos indicated a little bit down today, down a hundred bucks off the high on kind of massive volume, but no news. And that's always the way we do this. Mike, you know, on Friday, I was looking back at my house from a conversation with a fairly large investor. He was talking about momentum exposures off the charts. That's right. And we talked about this a bit on Friday. The market ahead of itself, just again looking at some of these notes, you can be a huge believer in the power of generative AI, but that doesn't change that fact. So when it comes to momentum in particular and this name, which you could make an argument is the most important single name in the stock market right now. I don't know. Does a day like yesterday have a significant impact in terms of that momentum overall? It does in the sense that it sort of tests exactly what's behind the momentum. Right. So no, it does. I think we should be clear that momentum is not just like, oh, you look at it, you know, when you see it. It's a statistical factor. It is the degree of, you know, leadership and outperformance over a period of time. And then you have people who decide if that's going to persist, you're buying the highest momentum and you're underweighting or shorting the lowest momentum. And that's why we've had the divergence within Magnificent Seven, right? You've managed to have Apple and Alphabet are anti-momentum right now and they've suffered, you know, because of it. So it's not going to be the whole story of the market this year, I think. But it does kind of touch a raw nerve, which is just exactly how aggressive are people going to be in discounting the same really good long-term secular growth story every day through higher prices. Yeah. We're obviously on watch next week for our GTC, Jenson Wong's keynote on the 18th. At the same time, Mike, we end up with journal headlines like the one today. Stronger U.S. growth prompting investors to scoop up a broader set of stocks. And we talked about the Goldman desk note last week about industrials and health care here today. This is the kind of silver lining piece of it or what we've been waiting for, which is markets really absorbing, you know, Friday it did too. I mean, Friday looked like we were going to have a substantial down day on the indexes. I think you ended up down two thirds of a percent as opposed to 1.2 or whatever at the lows because everything else picked up. Now, part of that is just a reversal of what's been happening. So the weaker stuff, the laggards rally. But yes, you've had new highs in the equated S&P. You have new highs in the mid cap index. So it has become more inclusive. It should happen that the earnings growth picture should broaden out. And that's what the market seems to be trying to look ahead toward. So it's not all about just seven stocks, but it is an unbalanced market in the sense of where the real buying aggression has been. And that's been in this subset of stocks. You know, the weekly call option volume in single stocks last week was the highest since November of 2021, which is around the NASDAQ peak. So you have to at least just be aware of, I think, some of the mechanical flow stuff, but say, does it really change the overall story? No, because the market's captivated by the idea that we're raising GDP estimates. Earnings growth is going to grow for a third straight quarter. Forward estimates are at an all-time high. And if it looks like it's going to look for an opportunity to cut by the summer into a strong economy with inflation not yet at the target and a record high stock market. Well, that stuff is not bad, and credit markets are incredibly generous right now, too. In fact, that sounds pretty good. Well, that's the day. Exactly. That's why it's hard to find people who say, you know, we're outright bearish on the here and now. It's much more about position and positioning, and sentiment have kind of gotten ahead of it. And this is always that moment where you're saying, you know, it's like when you reach the North Pole, every direction you look at South, so when you get to that point where it's like, yep, it's been great next, and the next thing might not be as good like that. Our next guest this morning just raised his target on NVIDIA after Friday's reversal. They did drag, as Mike said, the chip sector below the 52 week high. Let's bring in C.J. Meuse, counterfeit's jailed analyst. C.J. maintains a buy, raises his target from 900 to 1200. C.J. It's great to see you. Was Friday shot across the bell? You know, I think there was, you know, ample debate whether G.T.C. would be a sell the news event, and considering, you know, the stock move year to date, you know, pullback like we saw on Friday is not unreasonable, but for sure, you know, if momentum, you know, is a factor that you're focused on, you know, probably makes you a little bit more nervous coming into the week. But I think if you take a step back and you think fundamentally, you know, this is a company that's probably going to earn $35 next year. And if that's right, you know, you're paying 25 times today for one of the best growing best, you know, generative AI leverage plays, so, you know, shot across the bell, sure. But I still think it works. What do you think G.T.C. delivers? What do you think the keynote's all about? Sure. You know, I think it's interesting, right? They're moving into the SAP facilities. You're talking 16,000 people now. So, you know, it's going to be a big event. I'd say first and foremost, on the hardware side, they're going to launch their new Blackwell architecture. That is double the performance of the existing architecture. So, you know, you've got a big wave of growth there into 2025, which is really important. The second one is software, right? It's a billion-dollar business today. That'll be a 10, 15 billion-dollar business over the next five years. That gives you confidence. And then last would be on the inference side. I think they're going to give you a lot of use cases that help you understand that 40% of their mix will continue. So you put it all together. Once you get confidence that growth is sustainable into 26 and 27, you know, the stock's going to move higher. I guess, CJ, you mentioned, you know, going to earn, by your numbers, what, $35 next fiscal year. So you're talking about, you know, paying 30, mid-30s, multiple on that, which doesn't seem extreme on paper. You know, we've seen Amazon and Tesla as megacaps trade more expensive than that. But we haven't seen a $3 trillion company trade quite at that multiple. And it seems like the real onus is on the story being sustainable for multiple years. You know, it reminds me of the Tesla trade where it was, don't worry about the valuation as long as we feel like it's grow, grow, grow, and we have another story to follow the current one. Yeah, no, I think you're spot on. So, you know, right now we're looking at like a hundred plus billion dollar data center business for next year. If you think that half of the data centers will become AI architecture or AI enabled, you know, that's a $500 billion business for Nvidia. And so that's, you know, I think the direction that that Jensen sees, that's the direction that many experts see, it's the direction that I see. And so if you believe that, you know, we're going to surpass, you know, that mark. If you don't, you know, then obviously, you know, we're near peak. But, you know, I think if you believe in the generative AI, you know, building into data centers and driving AI infrastructure, then this is a multi-year trade. And we're still, you know, I don't want to say early on this because that's not true, but we're, there's still plenty of legroom higher. And I should point out that I was saying $3 trillion, that's at your $1,200 price target. You would have to do that math. And I guess for the consensus for next year is about 30, you think 35 is more likely as earnings. Yeah, but if it's 35, but you're paying 25 times today. And, you know, the last five years of stocks traded at a 40 times forward PE multiple. So you could actually argue as cheap, you know, again, to your point, you got to believe in the sustainability of the growth. I wonder how you see the broader space right now. There's been a lot of work done lately on the broader dispersion of returns of all the components within the stocks. Why the difference? Well, I think, you know, first and foremost, AI leverages what investors have wanted, right? So Nvidia, AMD, Broadcom, Marvell have really been outperformers. You know, in the last week or so, you know, we've seen, you know, maybe a bit more focus on value. So TSMC has done well. I've seen kind of a focus on the edge, trying to figure out what's next. Qualcomm, Terradine are names that come to mind and they have started to kind of push higher. So, you know, I do think that, you know, investors are now trying to figure out, you know, the N plus one, what is next for the group. And, you know, if I take a step back, you know, we're still only three to four quarters into this cyclical upturn average cycles nine. So, you know, I think you're safe to own the group all year. I still think AI is your best exposure. We do like front-end semi-equipment as the arms dealers to AI. You know, analog is a group where we don't think we get to, you know, the prior cyclical highs. So we would be very picky there. But the edge AI is probably a place, you know, to spend time. And, you know, that's where I'm definitely hearing from, you know, my clients, a greater focus. CJ, appreciate that. That's helpful. Hopefully we'll talk if not before GTC than on the other side. Thanks. Appreciate it. But we'll forget later today, don't miss John Ford's exclusive with AMD's Lisa Sue that's coming up on closing bell over time at 4 p.m. Eastern. When we come back, former President Trump speaking out on our network about TikTok, Facebook, entitlements, taxes, and tariffs, futures remain on the red side this morning as we kick off. We say it a very busy week. More squawk on the streets, straight ahead. What's on the horizon for financial markets? At P. Jim, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialized across asset classes, but united in collaboration. Our teams provide global and local expertise. Our investments shake tomorrow, today. Pursue your tomorrow with P. Jim, a leading global asset manager. Support for this program is provided by Chevron. Demand for energy is projected to continue rising in the future. To help keep up, Chevron is increasing their U.S. oil and gas production. And they're innovating to help do it responsibly across their operations, including their Gulf of Mexico facilities, which are some of the world's lowest carbon-intensity operations. Helping supply energy that's affordable, reliable, and ever cleaner. That's energy and progress. Learn more at chevron.com/meetingdemand. I'm not looking to make Facebook double the size. And if you ban TikTok, Facebook, and others, but mostly Facebook will be a big beneficiary. And I think Facebook has been very disarmed. I think Facebook has been very bad for our country, especially when it comes to elections. That's former President Trump earlier this morning on Squawk, saying that a TikTok ban would result in a more dominant Facebook, a company that he called an enemy of the people. And it does sort of raise the chapter once again about which companies face political risk under a Trump term. We've been down this road before, obviously, towards the end of the Trump administration. We discussed that there was an effort then being made by President Trump and his administration to potentially ban TikTok on national security grounds. That is the basis for the current bill that is moving through Congress. And it seems to have picked up a good deal of momentum. We talked on Friday about this at some length as well, in part because TikTok's actual effort to raise awareness amongst its community and have them contact their Congress people, seems to have backfired in a way. We'll see if and when it gets to the Senate what things look like. President has indicated that if in fact he is presented with a bill to ban TikTok in the U.S., he will sign it. Of course, then it brings us back, or it brings me back certainly to the reporting that I did some, I guess, three plus years ago, three and a half years ago, when there were any number of at least potential offers for TikTok in the U.S., remember Walmart sort of was in there briefly, Oracle, which conceivably would have hosted the servers, Microsoft. None of them happened and the whole effort fell apart, so to speak, or at least just momentum died. But here we are again, and then the question becomes, bite dance, the parent company. It's key owners. It's been one of the greatest investments of all time for those who owned it from when it began back in, let's call it, 2012, I believe it was, something along those lines, including Susquehanna, which we've pointed out on Friday, which owns as much as 15% of bite dance. Jeff Yaz, that's the gentleman that Trump was referring to. Part one of the owners you can see, Arthur Dancik from Susquehanna is a board member, along with the likes of Coteuse Philip Lafont, Philippe Lafont, and Bill Ford from GA. Mike, trying to understand exactly how it would work again becomes very complex. Do you have to rebuild the algorithm in the United States? Does that go along with it? I remember having done a lot of reporting on this previously, and I've got to revisit some of it. There's some reports that Bobby Kodik, the former CEO of course of Activision, would be interested in trying to put together an investment group, but it's very much unclear exactly how you value this thing, whether the best route is for bite dance to some fashion, take it public, then follow it off with a full spin. I sort of raise my hands right now, but a lot of reporting yet to be done, as this potentially seems to have a lot more possibility, I guess, than the previous effort. Yeah, for sure, and there's just such an enormous amount of daily activity and economic power in the product. I don't know what the precedent is for something like this. When you're banning a product that has been such a huge competitor to big public companies, everyone seems to have a push-pull interested in it. I mean, I did notice Mehta is trading off a little bit, but that's because I think it's in that same momentum basket that's backing off. There is no doubt that it would be a beneficiary. Obviously, Reels is its competitor to TikTok. It has gained certainly some share, and there is, I think, little doubt that if you really were to ban TikTok and prevent people from using it in the United States, a beneficiary would be Instagram and Reels for Mehta, not to mention Snap as well, perhaps, and other platforms. But understanding the transaction that would need to take place in order for them to actually allow TikTok to continue to operate becomes somewhat complex at this point in terms of how you value it, how you go about actually constructing it or reconstructing it in the U.S. so that it meets the objections of the legislators who are currently trying to get this man imposed. There has been some, I would say, early talk that has TikTok in terms of growth rates in terms of impact peak because of Reels and maybe because there's a little fatigue in terms of exactly how the user experience has developed at this point. It doesn't mean that the issue goes away, but maybe it's itself incredibly profitable. I've heard they have, I mean, the last number I used, Carl, on Friday was $2.70 billion because that seemed to be where they bought back some stock at that value, but maybe a bit lower, it's trading around $2.20 billion in the secondary market, in part because of these fears, but I think it has some, like, $100 billion cash, so incredibly profitable, as is TikTok in the U.S. It's quite a business. And we'll get to some of the other comments from former President Trump about EVs and meeting with Elon Musk and entitlement spending in Chinese tariffs. When we return, though, a look back at the market call heard around the world 15 years ago this past weekend, take one more look here at the pre-market as we get ready for this Monday. Now is the time to bring new ideas to your industry, and T-Mobile for Business has the advanced 5G solutions to make that happen. We're helping rethink patient-doctor interactions with real-time data sharing. We're tracking carbon with 5G sensors to help fight climate change. We're partnering with cities to connect roadways, cars, and drivers to minimize injuries. Disruptive thinking deserves a disruptive partner, so let's get started on what's next for your business. Step up your innovation at teamlevel.com/now. 15 years ago this past weekend, a legendary market call made on this very program by one of its anchors, the late Mark Hanes. Take a listen. However, I'm going to step out on a limb here. This is the big, hold on, everyone's waiting for this. I think we're at the bottom. I really do. Since what has become known as the Hanes bottom, the SMT 500 is up more than 650%. The NASDAQ, by the way, is up more than 1100%. They got me saying the Dow here as well, which you guys know I don't even like, but it is up, but not nearly as much. 490%. It didn't go down as much therefore, not up as much. That's kind of how the Dow works, but still pretty remarkable. I was just looking over the weekend, the annualized return for the S&P since that moment is 16.7% annualized total return. Wow. There have been 15-year stretches that are a little better, but not many, like the one I started in '82. I think it's a good lesson of, in retrospect, it feels like, well, sure, things have been so bad for so long, but there was every reason to doubt that the bottom was in at that moment. Oh my God, that was, I mean, I'm, I don't mean to catch up. Yeah, absolutely. We were all told people were still burying gold in their backyards. I mean, literally, what's the value of paper money? You remember all those conversations? Exactly. It's over. There's nowhere for the toxic acid to go. We have all the banks trading in single, low single digits. GE was a three, I mean, it was frightening. Pure wreckage and, you know, the S&P in the, in the 15 years up to that point had an annualized return of 4%. This just shows you how the pendulum swings over a long period of time, and the S&P was down, but lower it had been, you know, like 12 years earlier. So, if that ever happens again, you know, maybe rebalancing to stocks, not out. Yeah. You can make that call. Yeah. This is the hypothetical. Yeah. Now, Mark was definitely talking about the 200-day moving average and 66% of that. Even a longer-term moving average, I think. Yeah, very, very slow moving stuff that rounded into place. Yeah. Of course, we miss them every day. We'll get the opening bell here in a couple of minutes. And don't forget, you can catch us anytime, anywhere. Just listen to and follow the Squawk on the street opening bell podcast. Bitcoin extending its record run this morning surpassing 72K. We've got some upgrades of coin. Michael Saylor on a while ago from MicroStrategy. People saying it's now bigger than silver, bigger than the high yield bond market. Yeah. It's back to being a pretty substantial number. It still remains, it still eludes pure explanation as to why. Now, it's worth noting gold also making a record high. Obviously, a much slower moving asset up, much less. But there's something about the craving for as equity values go up. And as the entire world becomes a little more weighted in those type of risk assets, there is a flow in this direction. I was definitely a skeptic of the idea that the introduction of the ETFs would or should themselves be a big upside catalyst simply because we've seen this before. You know, the vehicle shouldn't matter that much. But it has at least psychologically been a pretty good backstop journal talking about Larry Fink at BlackRock and his conversion to this idea, which honestly seems to come down to. It's been around this long. There seems to be some appetite among traditional investors for some exposure to it. We're in the business of helping people get those exposures, right? Not like a doctrinaire. This is the future of money or anything like that. We'll continue that conversation in a minute. Let's get the opening bell here in the CNBC World Time Exchange and the big bullets. Ireland, Inc. supporting Irish investment in the United States at the NASDAQ. It's in VSCO celebrating the 25th anniversary of the investment. Some discussion this morning about how Bitcoin's performance might or might not be related to ongoing inflation data, right? Let's say you start to get a sense that inflation is cooling. Rates come down. Do people move into the crypto asset to get higher returns? It has been, if anything, somewhat correlated with things like the NASDAQ 100, with the overall disruption trade. But I also saw some stats this morning that its general connection to equity indexes has actually loosened a little bit. It seems to have a little bit more of a sort of mind of its own right now. But it is worth a reminder that in the entire inflation shock that was not a good period for Bitcoin. So whatever you thought it could do for you, being some kind of insulator against broader inflation simply because it's a scarce digital asset and it's almost like built in to kind of create this kind of scarcity deflationary type of fact. No, it did not really work that way. Although it is worth keeping an eye and a mind toward the CPI this week. In terms of whether that can change the story away from just some hot January data, a little bit flooky and something that continued through February and maybe changes the rates equation just a little bit. Well, certainly the jobs number did involve some payback from January. Although there's still some belief that tomorrow's number will err on the hot side. I know at least on core there's a couple of banks looking at three tenths and maybe some change. Yes, there's definitely I think a little bit of sensitivity in that direction. The other thing is I wondered the degree to which people will be willing to continue to kind of explain away parts of it and say we know that the rent component doesn't really reflect what's happening. Even the Department of Labor, the stats folks have been holding these calls trying to contextualize what it doesn't does in measure. So it feels like if the Fed decides they're going to pay attention to things that lay the groundwork for a potential summer cut, they're going to do it. Unless it's certainly just really a trend changer that says inflation's heating up again. We'll have to see. Also CPI versus PCE has become a big talking point as well. Facts are a conversation Mike at the top of the hour. Certainly we'll keep an eye on shares of Nvidia which did start down. Apple, interestingly, a bit of a bounce to it, a bit of a bid there. I'm sure you've seen this note from the JP Morgan strategists about large language model stocks. It's basically five stocks that include alphabet which has not been a great performer. Not all the names you'd expect. Nvidia, Microsoft, Meta, and the like, but an Amazon. But talking about the concentration of those stocks in particular and how they've outperformed the other mega caps, I just love you to weigh in again. No, it's been this extra energy source in the market that does not get really well explained by the broader macro or the earnings flow or anything like that. And you know, all bull markets need something like that where it's not just about, oh, we're going to ride the cycle and see how it goes and earnings are going to recover. It has to be more of an open ended. We're enthusiastic about something. The market definitely craves more names, more ways to leverage this trend, I think. It has been tough to have it be Nvidia as the kind of killer app, so to speak, and the winner and everybody acknowledges it has the momentum. So we haven't seen the IPO flow. Maybe we're not going to get it because it is such a scale business. But it's interesting that usually what you'd see in one of these super boom time sectors is everybody rushing. Right. It just seems to have happened so fast. It did. And to your point, at least the beneficiaries right now are the hyperscalers. Hence mega-cap companies that can spend enormous sums have the largest CapEx budgets we've ever seen in corporate America basically to spend on the new data centers and everything that goes into them, including of course a lot of Nvidia chips. You know, I have wondered, I mean, we've discussed why not more ideas, given there is at least a similarity between this period and the late '90s in terms of the excitement about the internet. But back then, of course, we had companies coming public endlessly, mostly them with underlying business models that made absolutely no sense in terms of getting a cash flow positive. Yeah, back then you could sort of be a website or software company that operated in this very sort of small part of the food chain and you could blow that up into being plausible enough business model for an IPO. You know, we're not seeing that. A lot of things don't quite line up in terms of seeing the level of broad-scale frenzy. You don't see a lot of margin debt, you don't see a lot of the IPOs. You do see a lot of concentration in the biggest names, and that was something we saw, you know, leading up to the 2000s. Also this momentum trade, I didn't have a C a chart. Three-fourteen research had this. The percentage of S&P market cap in the 100 highest momentum stocks is about 50% recently, and that's almost as high as it gets, right? So in other words, you know, the market has been leaning so heavily into the stuff that's been working best. That, you know, that's why maybe we've set the groundwork for just a little bit of a hiccup here. Morgan Stanley today does reiterate their view that global M&A volume will rise 50% this year. They talk about mentions of M&A on corporate transcripts, highest over the last two quarters. This was a call that was made a couple of weeks ago with refreshing it today. We'll see. They talk about better confidence. Yeah, and maybe some easing regulation. Confidence is a very important component of the M&A market, as we have said many times for many years, Carl. But right now, I don't know. You know, I had a lot more, I would argue, sort of, positive language from the bankers and lawyers I speak to towards the end of last year in terms of what they expected heading into this year than I've been getting a bit more currently. We'll have a pace. There was a hope, I think, and a thought that a lot of companies would be willing to face the potential regulatory risk with more boldness. But it's unclear that it's going to be the case. It's still potentially a headwind. Then, of course, you have the election. The hope, perhaps, amongst some, that there would be a change in regulatory tone, even if there was a continuation of the Biden administration. Yeah. So, I don't know. We'll see. There is a pace of M&A. There is a hope that it will certainly be better than last year. But I'd argue recent conversations, at least I've had, and they're not necessarily anything more than anecdotal, or that it may not be quite what people were hoping for as last year ended. Yeah. I mean, the Morgan Stanley-type analyses, you just look at how M&A activity right now, relative to global market cap, GDP, any metric you want to look at. It's 30-year-olds. It's really lagging. And so, it's probably hard to argue that somehow CEOs have gotten boards, have gotten religion and say, "Oh, M&A doesn't create value." It's much more about the very specific nature of, you know, we had this whole year of anticipating recession, and that kind of put people, you know, kind of in the freezer in terms of making any big moves. And then we were emerging out of that, and now it's sort of like, well, let's show what our AI strategy is, and let's show some capital discipline, and those are now the things that we're emphasizing. So, you know, we'll see. I mean, I think that the Capital One Discover deal is kind of interesting as an effort. I also feel like it's a little bit of a change to subject type of deal where it's like, "Oh, we're at this point in the cycle. All anybody wants to talk to us about is delinquencies and everything else, and we can create a growth story out of it and capture the Discover network and maybe sort of suggest that that's strategically, you know, more than the sum of its parts. But, you know, we'll see how that one plays. Yeah. And we'll see how long it takes to get these appropriate approvals, again, in terms of at least extending that timeline, something that many say companies are willing to live with, because this strategic imperative of doing a particular deal is simply that important. But, you know, we're waiting for more headlines. It's another Monday without a lot of major M&A. That's right. In fact, some deals that ostensibly could have happened likely will not now. Choice and Windham's a good example this morning. Yeah. I mean, Choice just keeps coming at him, sort of saying, you know, they're obviously quite disappointed in the fact that Windham is yet to choose to engage at this point. And the expiration of the exchange offer, as you said, in the withdrawal of independent director candidates for election at the 2024 meeting is the key here. They were quite disappointed, obviously, trying as they did to get Windham's attention and/or get them their shareholders to push them to the negotiating table. So you got EQT on your desk as well? Yeah, just taking a look at it, in part because EQT Carl is down. It's an all-stock transaction. They're buying a company called Equitrans Midstream. We've had Toby Rice on any number of times, of course, that runs the company. They're talking about it being a strategic and transformationally right for EQT. Once in a lifetime opportunity to vertically integrate one of the highest-quality natural gas resource bases anywhere in the world that you can see right now, at least shareholders, in part, again, all-stock deals. So you do set it up for the ARB as well, are not overly happy with it. ETRN is the symbol of the acquired company if we want to take a look as well. But, yeah, that is one of the few deals, at least, perhaps this morning. I wasn't sure we'd mention it, but we did. It was worth about $12.50 at the time, .3504 shares of EQT. You can see, though, the premium is being eroded very quickly by that move down in any QT share. It's going to say broad action in the morning is, again, the sort of unwinding of the momentum trade. You have Apple, Alphabet, as leaders on the upside, you know, meta-invidia, dragging things. So, continuation of what we saw from Friday morning is another one that has been a weak stock. That's one of the bigger upside contributors, just Nike. Got an upgrade from Guggenheim. Today, really just on a -- it's down a lot. It looks like there's low expectations built into the current valuation. I was looking, in terms of Nike's premium to the S&P on a PE basis, it rarely trades below a 20% premium, maybe for a few months over the last 15 years it's been there, and it is there now. So, barely so. So, it didn't seem like basically saying, you know, there's a competitive threat in running. We think that's discounted in the valuation right now, and Nike up 1.8% on that call. It has been a tough road for us. There's solid news flowing a bunch of down names. The Guggenheim call on Nike, as Mike mentions. Apple reports that it's going to build a new flagship store in Shanghai, which is interesting given some of the reports of weak iPhone sales year to date there. That would be the second largest Apple store behind New York City's Fifth Avenue. Proctor truest goes to buy, says that volume -- they might be on the cusp of volume growth and that they're already performing better against their peers than truest can remember in their recent memory. And then there's Boeing as over the weekend. The DOJ opens this criminal probe according to the journal on the door blowout from the Max9 jet. That coincides with the comments from Delta that maybe these Max10s do get pushed out to 2027. Yeah. I mean, it's not only the Max10s, but I mean, that's the entire trade at the moment, right? So, it's the castle that was supposed to be coming through. It looks like it's going to be deferred if nothing else. And no real help on the defense side of the business. So that has been very tough. It's also striking how Boeing has by kind of sitting out this tremendous run in broader industrials, how it's kind of somewhat shrunk in relative importance to the industrials trade to aerospace and defense. You know, 118 billion dollar market cap right now. In addition to that, some fresh IPO news today. Reddit's plans to go public made a little bit more clearer over the weekend and for that we're going to turn to our Leslie Picker. Morning Leslie. Hey, Carl. Yeah. Reddit kicking off its roadshow this morning with terms that value the company at $6.4 billion on a fully diluted basis. Here's what we learned in the amended filing this morning. The price range that Reddit is marketing is 31 to 34 share. The company is selling about 70% of the 22 million shares being offered while selling shareholders, mostly employees and executives are offering the rest. A $748 million IPO at the high end makes Reddit the second largest listing in the US this year, although it's perhaps the most anticipated. Reddit filed confidentially in December 2021, so a much longer than usual process here. Reddit defines itself as a global digital city where 73 million daily active users collaborate through communities with common interests. On its roadshow video, also posted this morning, Reddit estimates that its total addressable markets for monetizations will comprise trillions from advertising, AI and commerce by 2027. Topline revenue in 2023, mostly from advertising grew 21% to $804 million. And although the company was not profitable, its gross margin was 86%. Voting power will be highly concentrated in the hands of directors and executives due to Reddit's triple-class share structure. CEO and co-founder Stephen Huffman and COO Jennifer Wong plan to each sell about $17 million worth of stock at the high end of that range. And CFO Drew Valero is selling into the offering as well. However, venture investors such as entities affiliated with Sam Maltman, Tencent, Fidelity, just to name a few, they do not plan to sell. Reddit is reserving about 8% of its IPO for users, a so-called directed share program. They've also been present in other consumer facing deals such as Airbnb, Uber, Robinhood with mixed success there, guys. On those shares being set aside for users and moderators, lock-up picture is a little bit different on those? Well, those would be sold to retail investors. So basically it's the same as anyone who's buying into the IPO, where if you buy in at the IPO price, you're not subject to a lock-up. It's those VCs who aren't selling into the offering. They are therefore held to a lock-up for a certain period of time, usually about six months or so. But if you're a retail investor and you buy in to the IPO in the offering, you can sell on day one, should you so choose. And that's why sometimes we do see some volatility on day one when people decide whether or not they want to bulk up their exposure or they want to flip out of it if the stock is trending higher. Meanwhile, we got some information on their expected Tams for things like AI and advertising. And then, of course, this is down from a prior round and was it 21? Yep, that's right. In 21, they were valued at 10 billion, so it's about a 36% discount there. In terms of their total addressable market, right now they have 98% of the revenue coming from one source, which is advertising. They did just sign that Google licensing agreement, which should bring in about 60 million annually. So they say that Tams for AI is up to about a trillion dollars by 2027. And then they also mentioned commerce as being another source of revenue, both digital and physical goods being sold on their platform. That adds another few trillion as well as the, I think it's 1.4 trillion by 2027 for advertising. So I think that's kind of the pitch to investors that we've scaled our advertising program. 98% of our revenue is coming from that, but we have these other levers we can pull in the future for growth in our top line. Leslie, thanks. Good curtain razor as we keep our eye on that roadshow. That's our Leslie Picker talking some Reddit. Finally, Oscars last night, Oppenheimer obviously a huge winner with seven wins, including Picture, Director, Actor, Editing. Universal, our parent company studio, now the first studio this century to end the year number one at the box office and win Best Picture. The other big story of course is how the streamers, Apple, Killer Moon and Netflix Maestro kind of didn't perform this year. You wonder if that effort by the streamers to, you know, bankroll the kind of high prestige movies for the purpose really of using the awards as a way to market is getting a little blunted here. Maybe that was going to happen anyway, in terms of giving a lot of money to a director to do whatever they want. But interesting, but you can see the interest too in terms of broadcast. Yeah, even with the ratings. It started earlier. You had the very popular movies in the mix, we'll see. We'll be getting that later on today. We'll let you know when it breaks. Meantime is we go to break. Let's watch bonds today. Not a lot of data as we get braced for CPI tomorrow. Retail sales and PPI on Thursday, Empire, IP, U-Mish on Friday, and of course Fed in a blackout window ten-year, just out the 4-8. Don't go away. Stocks continue to pull back this morning. S&P trying to hold 5100 once again. Let's get to Babasani here at Post 9. A little bit of a pullback, but we're having some market rotation that I love to watch because I like advanced decline lines, folks. So take a look here. We got utilities. Not a great performer recently doing a little bit better today. Materials, which have been on a tear recently. That's been a really strong sector. Consumer staple is not one of the stronger sectors last year, obviously. That's doing a little bit better. Tech is lagging, so we have Meta, Micron, Amazon, Microsoft, AMD all down today. I think the important thing is that breath line. You want to look at more stocks advancing than declining. And if you're held abroad portfolio stocks, that's what matters. And here, look at the S&P 500 advanced decline line. This is a new 52-week high. The Russell 1000, which is a broader index than the S&P 500, obviously, new high as well. The Russell 2000 is not hitting the advanced decline line. They're not hitting a new high. It's below that. This is a pretty broad market advance that we've been seeing. All sectors are up here to date with the exception of real estate and utilities. Just take a look here. When I talk about broad advances, look, tech's up 11%, even with the recent pullback in big cap tech stocks like Nvidia and Apple. Financials have been strong. Health care has been strong. Here you have the three biggest sectors there, including industrials there, other than technology, all up 7% on the year. Energy's up, consumer staples of up four and a half percent. That's underperforming the S&P. But you get the point, your consumer discretionary was huge in monstrance last year, largely because of what happened with Amazon and Tesla. So you put it all together. The equal weight S&P 500 is at least marching in line with the S&P 500. Yes, we're getting a little more outperformance from the market cap weighted S&P 500 thanks to the outperformance of technology. But you see, it's holding its own here. We're up 5% versus 7% on the year for the S&P 500. Finally, on IPO front, I know there's a lot of excitement about Reddit. You hear all about it. I wish them well. I am not terribly excited about Reddit. Here's what I am excited about. This is a big one. Astra Labs is coming next week. This will be trading on Wednesday at the NASDAQ here. What these guys do is they provide advanced, the technical term is advanced conductivity semiconductors for data centers. What does this mean in English? It means they make semiconductors that make the data centers run more efficiently and faster. You move the data around faster than the data centers. By heavens, this has artificial intelligence and semiconductors all wrapped up in the one story. This is what everyone's been waiting for. Where's the big AI IPOs? Not Reddit. Where's the AI? Here it is. So keep an eye on that one in my opinion. Any time the IPOs this year, actually they've been doing fairly well. Now remember, don't mistake a market going up for being a genius in the IPO business. Here's the Renaissance capital IPO ETF. This is a two-year high for it. Just recently, again, overall market advance is what really matters here. But you see, it's been doing fairly well recently, particularly since February, against the S&P 500. So I guess overall, let's see if we get a real market advance here on IPOs. Clarna targeting the second half I see. We talked to Harry's racers. We talked about that last week. Viking Cruise filed confidential. I don't know what that means by and large, although the cruise business has been really hot. But let's be hopeful. I am. Watch Astra Labs. Yeah, we were talking about the lack of related AI IPOs. So there it is. Good to be excited. I'm excited about that. Okay. You're excited. I'm excited about that. Thanks, Bob. I'm Bob Busani. And Mike, thanks for the help this year. We'll talk to you later this morning. When we return the EU competition's commissioner on regulating Apple and Big Tech. In a moment. You've been listening to the opening hour of CNBC's Squawk on the Street. The opinions expressed by the Squawk on the Street participants are solely their opinions and do not reflect the opinions of CNBC, NBC Universal, or their parent company or affiliates. 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 opinion. Such opinions are based upon information, Squawk on the Street participants consider reliable. But neither CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such. To view the full Squawk on the Street disclaimer, please visit cnbc.com/squawkonthestreetdisclaimer. 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