Hey, Fidelity. Can I get a second opinion on stocks in the Fidelity app? With Fidelity, it's easy to get an outside opinion from independent experts in a single score. And then? When you're ready, trade US stocks and ETFs with no commissions. That's right. I am always right. Investing involves risk, including risk of loss. Sell or assessment fee not included. A limited number of ETFs are subject to a transaction-based service fee of $100. See full list at fidelity.com/commissions. Fidelity, Broken Services LLC, member NYSE SIPC. Market insight and analysis. You're listening to the opening bell of CNBC. Squawk on the street. Good Monday morning. Welcome to Squawk on the street. I'm Carl Kington Ayo, which I'm Kramer. David Faber at Post9 of the New York Stock Exchange. Pre-market steady as we brace for a week that has something for everyone. Inflation data, CPI Wednesday, retail earnings, Google I/O conference. S&P is less than 1% from a record high. That's where our roadmap begins. Stocks look to build on this rally. Dow is coming off the best week of the year. And as we said, S&P awfully close to some fresh records. Plus, the AI arms race continues as a new report reveals British chip maker Arm Holdings is planning on launching AI chips next year. And remember this name? GameStop. It shares a surging in the pre-market after famed meme stock trader, Warren Kitty, posted online for the first time in roughly three years. Busy day, I guess. Let's begin with the market setup. As we said, Dow is riding an eight-day win streak. Jim, a story in the journal today. Investors crowd into soft landing trade ahead of crucial inflation data. Well, okay. That makes it sound like if the data is bad, no crowd out. I've been watching the stocks have been going up. Dave costs them with a very good piece today about it's not the ones that are unprofitable. They're going up. They're actually going down. What's going up are the profitable companies. And I think that we keep seeing that. But David, David, I do think that if GameStop is the leader today, that would signify perhaps a speculative peak. And I didn't know that we were in a speculative hike. Yeah, I'm not sure we should draw too many conclusions from what may happen at GameStop. So it's kind of interesting and fun to look back in an old name that we talked a great deal about a number of years back. Well, I went to the pin, you know, when you go to Twitter, you get the pin piece. They had the old piece there about 100% short. And so if I'm listening, I'm saying, wow, this sounds like a great situation. And I realized it was what got it going the first time. That's amazing that he can come roaring back like that. Well, David, if you post a picture of, let's say a couple of lazy boy recliners. I know and paramount. That thing goes to 22. Oh boy, paramount. Yeah, that's its own saga, isn't it? Yeah, it is. There it is. Look at that. Diamond hands. That is, that's us. Is that bite is thrown by? I don't know. I think that's what takes it. U.S. One list. And I'm looking at all this research and they all probably say, we're spending millions on this. All we have to do is put a chair up. Yeah. Meantime, Jim, there is a bit of a nice game over the weekend looking at CPI coming our way midweek. Stiefel, next 500 points are down. You know, I have that that note in front of me. And mid quarter correction too many. They talk about sustained PCE inflation, the Fed's Fed seeks, they call it a pipe dream, a pipe dream. And meantime, I go over David's sections of the economy, after sections of the economy, and everything's down a little bit. And that does not say to me, pipe dream. It just says to me, steady as she goes, pipe dream implies that it's never going to happen. Yeah, but it's unlikely. I think that's a pipe dream. That's a pipe dream in that piece. And pipe dreaming, that pipe dream piece. We have been talking for weeks now about brown shoots, about fines in the economy, a weakening consumer in particular, mid to lower end, but even with some signs above that, not as much in experiences. We talked about it so often, but reflected in any number of earnings that we saw, although again, not all across the board, Jim. Right. And so I don't know what we get this week that sort of can help confirm or deny. I was doing a piece for the investment club and one of the things I saw that was daunting. I was looking at auto nation and car max, then of course reading about the home builders. There's not enough used cars out there, and they're not enough used homes out there. It's kind of interesting, isn't it? That we all lack use. We all, and this again is just so covid that we lack use. I mean, there's always had a lot of used cars around. There was a used home component and they're just gone. Used home being an existing home. Well, I'm saying thing. I know you're using the word just making sure people knows trying to be a little more cinematic. I like that. No, I like that. Yeah. Nobody's selling their used homes, right? They're just living in them. Exactly. They're using them. Someone approached me on my used second time on my my 2006 Lexus wagon and made an offer for me. Second time. I mean, I'm not a car dealer. I mean, I actually use that of the blue. Yeah, I kind of just driving the car and somebody says I'd like to buy that from you. Yeah. Oh, that's fascinating. This is a big part of Ed Yardini's note this morning where he's looking at car. He's looking at boomers having been done paying college tuition, right? Bane almost in some many cases done paying their mortgage loans with 40% of homes now mortgage free. And he says they're going to spend the rest on themselves. And he points out many are buying large ticket items like light trucks in cash. Really? Yeah. Well, that should reflect on Ford's stock, which happens to be, you know, you ever go to Harper's store, a hardware store? Yes, I have a boxy. A boxy. Yes, because it's a boxy to 12. And I keep trying to just stop it. Yeah. Well, it's a boxy. I mean, it's not it's not Elmer. Right. Somebody just stuck it there. Yeah, it's got a boxy. Maybe it's built for maybe it's chairman. So it doesn't matter of how many baby boomers buy light trucks. How many baby boomers does take to get an epoxy of Ford off of 12? I don't know. You already own one of those trucks. You're a boomer. I have a Maverick. Yeah. And I enjoy it greatly. You're not going to be able to get that for me. No, I made you an offer. I have like 7,000 miles on it. Oh, really? That's it? So nobody's coming up to you and asking you to buy that one. How about McDonald's wire piece Friday on a five dollar meal? Because that gets your interest going in terms of this is where this is where I was going. But we don't know, although the company does kind of indicate that somebody got ahead of the story. But this is what I'm waiting for. I'm waiting for the people and companies that raise prices too much to own it by rolling back. And that would be the beginning of the major rollbacks because McDonald's burgers have gone up hugely in prices 2019. So this would show that McDonald's is absolutely in sympathy and is what I'm now calling an inflation fighter. I'm looking for those who are inflation fighters and inflation lovers. Are you a lover or are you a fighter? McDonald's is a fighter. I would be curious to who the lovers are. You got to be in mind? Oh, yeah. Why don't you just wait a second partner? Oh, you're not going to do it again, are you? I don't know what he's talking about. I love Dutch bros. Dutch brothers. The Dutch bro? Yes. Dutch brothers. This is just, I had them one. I got to tell you, they had 10% cops. I mean 10% for a coffee company? That's extraordinary. And a lot of it was their new annihilator with protein addict. Do we know ticket versus traffic? Yeah, what is their average? It was a little bit more weighted toward ticket. Yeah. Ticket, but they had a lot of traffic. And they're expanding nationwide. They think there's room for 4,000. They've got about, I don't know, 500. I'm going to be in the room for more coffee outlets. Well, that's even, you know, David, that's a great question. And I think the answer is just that the ones that are existing happen to have a lot of lines. Because of too much mobile ordering? Absolutely. A lot of lines. Yeah, I know. So nobody goes there anymore. It's too crowded? Well, I mean, okay, Yogi. He's really Yogi me. I guess. Yeah, I don't know if you caught them that Nick's, the patient. Oh, they got to walk off. Got to walk off. Okay, so let's just go over this. Dutch bros has been cutting. They have a low price offering and that's what matter. They come in under some of the big guys. They do. They come in under. But there's a block that's for sale here that's crushing me. 13 million share block. I don't know what that is. I don't believe that. 13 million shares. That's not possible. Since that's like the whole stock float. Anyway, Carl, that's where I am on this now. Let's talk some chips this morning as well. A new report out of the case is that soft bank groups arm holdings looking to launch AI chips in 2025. Of course, we talked to Renee Haas last week about the company's latest results and artificial intelligence. I believe that AI is absolutely not a hype cycle. I think AI is going to be able to unleash capabilities and innovations that we've never seen before. One of the areas I'm most excited about, frankly, is around health research, biomedical. When you think about what it takes to simulate a drug or a protein, how difficult that is today, advanced solutions going forward will enable that. Arm will be right at the heart of it. Meantime, Jim, we are going to get Google's IO. A lot of discussion about Apple's reported deal with chat GPT on the phone. I know. I read Dan Ives comments. She's calling it a golden goose. While Apple has been in discussions with Google AI partners for Gemini, the golden goose for Cook and Cupertino, would be exclusive open AI and chat GPT. So if he's calling it golden goose, I can't get in the way of a man who wears a pink jacket. You know? I do. I do. Are we done talking about arm and their plans for a new AI chip? No, they're not. They just move on past that. So let's be careful because I know that's been reports that the AI chip is up against NVIDIA. I don't believe it. It'd be different, right? Well, they're partners with NVIDIA. But then again, Cisco reports this week, they're partners with NVIDIA. David, I look around, you're the only person that's not partnered with NVIDIA. How do you deal with that? What are you doing that you're not partners? I do go home every night and I'm like, what are we doing wrong here? That we haven't got that partnership with NVIDIA yet. It would be a great headline though. Family, what are we thinking? Faber has partnered with NVIDIA. Yes, sources say. Yeah, I think we do it. I'm on part here. You're part of what are you doing? Well, we're going to design something. Don't get more specific. We're going to design something. It's designing something. And we're going to send it off to a contract manufacturer once we've designed it, whatever it is. Well, here's what you want to do. You want to say that you are partnered with recursion pharmaceuticals because if you listen to what we just heard, okay, from Rene? Yes. He talked about healthcare. Now, the company that's most linked with healthcare other than you is a $50 million state that NVIDIA put with a company called Recursion Pharmaceutical. That's R-X-R-X because that's a Jensen name. Me and others, Jensen really apparently had a great meeting with them, put money with them. And you can see that they've put together that they've got to deal with with NVIDIA. So, David, you want to crash that. Okay. I got a lot of things on my to-do list, suddenly, Carl. Meantime, guys, Jeffery's gym resumes NVIDIA. They were at 780. They go to 1200. HSBC goes from 1050 to 1350. Right. I thought Melius' piece was the best because he's talking about, you made 22nd, which is when they report. Yes. We'll be good. A lot of that is the H-200 and the kind of what, the fenestrated Chinese thing that they send over there doing well. But you look, we're worried. He's worried about August, we're worried about November. But he says, stay in touch with Dell. Now, Michael Dell has been this single member. Michael Dell was in the front row at the GTC Congress. David, the front row. It was kind of like, get solvent, stand out. Remember how he used to put people in the front row? Yeah. He's key. It was a really big show. He's the key to the market. Michael Dell. Yes. Yeah. Into his partnership. Defenestrate means throwing somebody out a window. I like that. I just wanted to use the word. When we come back, the Biden administration planning to increase the pressure on Chinese EV makers, a story that got leaked last week. We'll talk more about that. Got some calls today on names like Walmart on our way Thursday, Penn, the airlines. The future has taken another crack at all time highs. Don't go anywhere. 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. Earning your degree online doesn't mean you have to go about it alone. At Capella University, we're here to support you when you're ready. From enrollment counselors who get to know you and your goals, to academic coaches who can help you form a plan to stay on track. We care about your success and are dedicated to helping you pursue your goals. Going back to school is a big step, but having support at every step of your academic journey can make a big difference. Imagine your future differently at Capella.edu. Welcome back to Squawk in the street. The Biden administration preparing to raise tariffs on Chinese EVs set to roughly quadruple within the next coming days. We'll look for that official announcement. Jim, meantime, stories about forward cutting orders from battery supplies, is a piece of the information about Tesla and whether the Model 2 was really ready to go into pilot. Yeah, that's scrapped according to the information. Forward losing more than $100,000 per car. That's obviously not a that's a good way to epoxy your stock to 12. I thought it was interesting when Zieker comes public, okay, on Friday. Yeah. And this was in the wind that this would happen. And all that happens is that the stock goes even higher. So I'm really trying to figure it out. What is the American game plan, American investor game plan, toward these? What is it? I mean, why is this stock up even more if there's going to be I mean, is that because they make it so cheap that 8,000 and if they put 100% tariff on it, 16? Well, Zieker is not coming here, nothing's coming here. Come on. No, there are no Chinese EVs that realistically are going to be entering this market, especially given the recent potential for even more in tariffs. Zieker, since we had the CFO join us last week, I mean, they're higher in and they're obviously around the world to the point that you've made. It's not just the Chinese domestic market. It's other markets outside, obviously, of China that don't have their own automakers. Right. And they talked to me, he talked about significant margins. I don't know, 15%. I think is what he said if I recall, right, Carl? 15% potential operating margins, which is not terrible. No, I thought it was fascinating. I love the interview. And I do think that their cars and trucks were fantastic. It doesn't have to be David. So it doesn't have to be have this market in order to be successful, to be any market. So the idea, you might want to invest in it, you know, it doesn't have U.S. There's a lot of questions from U.S. And it's a reflection of trade policy overall and how it's changed. Remember, when we embraced free trade many years ago under both Democratic and Republican administrations through the 90s and early aughts, it was about lowering the cost of things for consumers here in the United States. And therefore, that flood of Chinese exports, which then hollowed out our own manufacturing abilities here in the United States, that's different now. Right. But we're not going to pay less for our automobiles. No, no, we're not. My chat with the CFO after that excellent interview, I came up, came down and I said to him, look, this is how we get cooperation. I mentioned that my father word for the Chinese, no, great it was. And that if we would have, if she would see this, I think he could say, you know what, I, the U.S. markets are open. I've got to be a little more, let's say, less antagonistic, because he's antagonistic. And why doesn't he see what we've done here? It wasn't, look, now the CFO obviously was inclined to agree that things could be better. But I just felt very badly that this doesn't matter to the Xi, that we open our markets. It just doesn't matter. David mentions the deed globalization part, the other part's unionization, which is why Phil's all over this Mercedes vote this week. Oh my, I know. But my short Hill small apple voted against the union. I saw that. That was pretty interesting because it's a great store, not that I'm probably into a union. I mean, been to a bunch of unions, been in unions, but you know, look, the store is fantastic. I'm glad people feel like that they don't need a union. But you know, if they have a union, maybe that's because they're overworked. I know the Maryland thing. I mean, it's entirely possible. We've seen stored, we've seen whole chains where people feel that they're overworked. Yes, we have. Yes, we have. I'm just trying to go through some of my mind, some of the union efforts, obviously Starbucks, Amazon's unionization efforts have largely failed, correct? Yeah, I think so. Yeah. But, you know, look, unions are, it's a tough issue. Obviously, I mean, when I was member of my union, I helped call wildcat Striken. And then everyone got fired. Hey, you know, we made our point. I mean, you didn't have jobs. Well, but we made our point. There you go. Well done. Well, they call a Pyrrhic victory. Yeah. And then we went against JP Stevens and we showed them we got them. Well, oh, they shut down everywhere after that. All right. So maybe it was suboptical solutions. We'll get Kramer's mad dash countdown to the opening bell. We'll see if we can put together some record highs at the open and completely get even on this drawdown the last few weeks. Stay with us. Imagine earning a degree that prepares you with real skills for the real world. Capella University's programs teach skills relevant to your career so you can apply what you learn right away. Learn how Capella can make a difference in your life at Capella.edu. Let's get to a mad dash as we begin the week here at the New York Stock Exchange and we start trading about seven minutes from now. Want to talk a little micron? Yes. Now, there are many multiple pieces about why the semis are good today. But this is the most salient. This is a Barclays piece, which talks about this time it's not going to be the same peak trough peak trough because of the high bandwidth memory chips that they're doing, which are, of course, AI. And what it says, David, and I really like this is that the cycle truly is different. And now that's historically been a dangerous thing to say. But I know Sandra and Marocha and I know the company well, and I think there's just a lot of truth. They're ahead of everybody else, which is terrific. They, by the way, made in America, which is really great. They may end up with money from commerce, but this is a very powerful piece, which tells me the stock is going to go much higher. The price target's 145. It's up a hundred percent. This is the stock that I think the portfolio managers want to. Really? Yeah, this is it. Not too expensive. Even though it feels as though with micron, there is, I mean, the volatility that's behind us. They're saying that's going away. They're just saying, look, it's been like this, right? Yeah. But this time it's going to be like this. And if that's the truth, then the stock's going to converge. And it's all it's all because of AI. Yeah. Well, it's just that they have the high bandwidth memory. You need high bandwidth memory chips in order to really do great with everything that's coming. You just what memories more important for semis in the new world. I really kind of like it. Look, David, they say that Moore's law is dead in this piece. Now that's something that Jensen has said in his videos. Now, it's not what Intel says. Intel just got to think, Intel's doing this Apollo thing and rumored to be in Ireland for 11 billion. Yeah, that's a financing for their chip manufacturing. Well, I went to the one that opened in Dublin years and years ago. My god, it was the Abbey Tavern. And my wife is a river dancer. So look out. She can river dance. No kidding. Things you learned. And I thought I knew him well. Nope. All right. We got an opening bow, a little less than five minutes from now. And by the way, don't forget, you can catch us anytime and anywhere by listening to and following the squawk on the street opening bell podcast. Who wouldn't want to do that? Right. We're back after this. Interesting note, Jim, this morning from Morgan Stanley, how to navigate the consumer downshift where they want a bunch of different names that they say the market doesn't fully appreciate yet as pricing strategy changes. I agree. Now, Walmart, it's been stuck at 60. I think that's a fantastic opportunity. Pepsi started moving up not that long ago. Co-gate broke out on its quarter. McDonald's with the $5 burger would be big. Hasbro had the first good quarter in ages versus in versus Mattel. And then Wayfair, I think there's nothing. There's no there's no hair in the Wayfair deal. It's a where Wayfair did well during the pandemic and it's continued to do well. But so was William Sonoma. So you got high end and low and the only company that has not profited its RH because I think they're too high a price point. But I like that list very much. Watch Co-gate. That's been the store. Quiet store. No one talks about Co-gate because Co-gate doesn't really seem to encourage talk. Oh, wow. What a horse that is. Yeah. Co-gate's had a great, a great year so far. Quick. As a stop, anyway. Yeah. No, no. Everyone had a lot of different things. Yeah. Well, watch for Walmart's come in Thursday. Retail sales later in the week as well. Give us some macro numbers on how much the consumer's spending at least in nominal terms. Let's get the opening bell and the CDC real-time exchange of the big board. It's the Brazilian-American Chamber of Commerce. Everything has got crisper therapeutics focused on gene-based medicine. Watch. I think they do a good job. Just back from Walmart, I go to a lot of Walmart with my kids. People don't seem to realize that Walmart has become a kind of chic place to go. It's a reverse chic, admittedly. But a lot of, they have a lot of incredibly inexpensive but high-quality fashion. So, my daughter, my fashion daughter, went to Parsons. We go there and it's like, "Holy cow. Nine dollars for something that might be $870 if you don't get it right." We talked to Chris Horvers of JPM on Friday about Walmart. He said they'd normally don't up guidance on comps coming out of Q1. That's right. So, maybe be a little cautious. Wow. That'd be a great opportunity to buy. Walmart has rolled back prices incredibly Dave. When you go to Walmart, I bought a Dickies jacket that I sold for $100 and what for $25. Wow. Yeah. You're really quite incredible that is. Well done. Yeah. Well, you know, it just was one of their featured rollbacks like the old days, where they're like selling this stuff seemingly at cost. It's just so exciting. Did you see the journal story actually today about Timu pulling back in the United States? Oh, this is what's hurt some of the online companies. Well, I mean, Timu spent two billion dollars alone on advertising on meta last year and so the idea that they paired back their budget in the U.S. Now, that said, these are global platforms. They're still doing a lot in Europe and expanding, but the journal story was an interesting one. It's basically saying things have sort of flattened. I mean, the growth is still there to some extent from Timu, but nothing like it had seen previously and they've cut back in terms of spending on marketing here in the U.S. market as well. I mentioned it because obviously they provide very cheap goods in general. Do they ever? But Timu was a boom for Amazon because if you order something for Timu, it's open about how, when it will come, but if you order from Amazon, you get the right day and people really love that. They have very limited selection and the stuff I like. I want to recommend a stock off them that is much better, much better play and it's waste management, the old WM. Didn't you have them along last couple of weeks? Yes, but I mean, this stuff goes right from your house to landfill. To the landfill. And I think we should just send it right to WM and that will raise their quarter. Yeah, no Chinese factories to our landfills since an old story. Well, I just think that this doesn't bring back, you know, it's kind of a redox. Yes, because I've ordered some stuff from them and it's rather amazing. Including my daughter got 20 dollars in suit for your wife, which was just one of the biggest mistakes I've ever heard somebody make. It was a very bad mistake that I'm very ill-advised mistake to buy that bathing suit. I thought it looked kind of, you know, oh yeah. Speaking of journal stories about retail, there was the advertising spend story. Yes. About advertising on a retailer's website and how that model will overtake traditional TV spend next year. Well, that was crazy. I know that these were all articles which say TV is now radio and radio is now newspapers. I mean, there's without a doubt the money is going. As we're in the up front season, the old up front season, which seems a little odd today, that they still actually even have these events, but it's nice. Amazon's website, and we talk about advertising in Amazon, what an important component it's become of the company's overall earnings. Amazon for, so Carl's point in this, the story was basically saying that that's where many, many are choosing to spend their ad dollars there, or even Walmart.com back to what we started the conversation and/or the digital advertisers. Obviously, then you also want to be on the meta platforms and alphabet and YouTube, but not the traditional media. I'll give you some interesting though. You have an outfit like Wingstop, which is just doing incredibly well. High comps, football, NFL, live games, they want to put money in. Wingstop's also been doing a lot. I've been watching a lot of NBA playoffs. They have been doing a lot of traditional. Yes. Do they pull back if the Pacers win? I knew that was coming. I don't know, Jim. How about if Brunson doesn't play? Do they say, listen, is Brunson playing? I don't listen. We played seven guys until they basically, the sprockets fell off, so to speak. Still early, but I do think that that's the one thing it transcends, which is why we got to keep in front and center the NBA contract. Yeah, the NBA contract's fascinating. Nothing beyond what I was hearing last week. I'm afraid to say it this morning. You don't want to ferment anything. You're going to get different spins from different constituencies in terms of the importance of the contract, the importance of the NBA. Is it all year to the games really rate all year? Is it really only about the six week period that we're in right now, where people really watch the playoffs? I watch Oklahoma City Dallas. It was one of the greatest games ever. What are you spending the money for? Is it worth it? You're going to start hearing that from those who don't get it. I think the most interesting component is the possibility that Warner Bros. Discovery, as we discussed last week and reported last week, will compete for the match matching rights on the Amazon package as opposed to potentially what is... On the Amazon package? You were here? I know, I'm just trying. You were here. Can I make it a little more exciting than just... Oh, you're pretending that you hadn't heard that initially. Thank you. Right, as opposed to competing for what has been reported to be NBC's deal to acquire those rights as well. Well, I will tell you that the piece last week that said that it's a win-win for Zastlob, if you get that for Warner, if they win it or not. Yeah. David, how can something be a win-win? I know. Others say it's a lose-lose. But it depends who you're talking to. As everything does, doesn't it? So I can talk to some people, as you might imagine, who are telling me why. It's a win-win and then others are saying... It's a very good point. Oh, no. It's actually a lose-lose. It's a very good point. Speaking of Amazon, Jim, a couple stories about investing in Europe. One was a report on Amazon investing $1.3 billion in jobs in France. And then there's this Intel Apollo chip report in the journal today. Well, I got to tell you that it was the... What international turned and was positive for Amazon and the CFL had Brian Oslowski had in this great moment where he was talking about Memphis. It could lose... Now it's inflecting. If it inflecting, it's going to get... Once it inflex in it's Amazon, then it's just money. So that was very smart because there are people who are going to say, "Wait a second. We don't want them here." There's the Apollo one. We don't want them here. And they're here. What do we do? And at the same time, Amazon's saying, "Here, why don't you take these jobs?" So Amazon, and Amazon doesn't do anything for the fun of it. That's going to be very good. The Apollo to expand for Intel and Intel's expanding everywhere. So far, it's been empty calories. Their expansion has not been to... They are building a lot. This deal that is reported where Apollo essentially is helping to finance the construction of these chip-making facilities, in part because Intel doesn't have the balance sheet to be able to pull that off on its own. And I would reference a deal back in 2022, April, August of '22, in which Brookfield, also one of the large giant alternative asset managers that we talk about, at least with some frequency, probably should talk about all of these more frequently as they start to dominate the financial landscape in some ways. But Brookfield did a similar deal with Intel in which it provided $15 billion for a 49% stake in Intel's manufacturing expansion. At its campus in Chandler, Arizona. So Intel retains the majority position at 51%, but this is how they bring in the outside capital. And then you basically split revs coming out of this thing once it's up and running. So it's a model that has been potentially being replicated here by Apollo and Intel for this facility in Ireland. Guys, we got one go private this morning of some size. It's a real company. The square space deal, $6.6 billion equity, $6.9 billion when you throw in debt, $44 a share from Myra, large private equity firm, does a lot of business in Europe as well around the world. But what is interesting here, a couple of different things. One is when you take a look at square space, it went public almost exactly three years ago via a direct listing at 50. So it's getting taken out at $44, which is below the price at which it went public three years ago. And it's not alone. Jim, there are a number of companies. Endeavor comes to mind. Maybe some others wear. They were public for a relatively short amount of time before saying, "We're done. We're done with this public thing, and we're going back to private hands." Square space, they look actually, they had revenue. The market cap says a little bit up from where it was. But the revenue has been flat for two years. It's been up since 2020. Now, if you go to the website, which is one of the most poorly designed websites I've seen, given the fact that they help you just hide your website, I think that we went to WEX. I went to WEX. I'm sorry, WEX is just go to wix.com WEX is just joyful. It's how you design your website, your business, and we went to WEX and for like a fraction, WEX has been, of course. For very little money, you can get a help for website. You've got an artist, we used them for our restaurants. We had to give the restaurants up because you can't own a liquor company and a restaurant in this country. But WEX is just a fabulous, fabulous design company. And to Jim's point, Square Space, they say, has been at the forefront of providing services to businesses looking to establish themselves online for the last two decades. The company's largest share, Anthony Castellina, its founder and CEO, is going to continue as CEO. He's rolling in most of his equity into the new deal. But they've done it. Daryl Lannick was one of the early investors here. Really build those? Yeah, being sold at six-time sales. So, I mean, you're still talking about a multiple of six years worth of the company's sales. And the final thing I would mention that sort of was notable, but perhaps not nearly as notable as it was a few years back when we sort of first focused on it. Private credit is financing the deal. I don't have the terms, but it's Blackstone, Blue Owl, and Ares that are all stepping up for the financing for Primira that is taking this company private. Well, they only did, they never, you know, the e-bittage would be good, but the net income is not as good. Not as good. Now, David, I think you ought to mention. What? Should I mention? You have to mention the prevalence of private credit as being something where people wanted to go. Young people. You get out of school, you want to do private credit. It's the new thing, right? No, I mean, private credit. I mean, when you get with younger people, what they want to do, no matter what they're doing, they're thinking, except for my kids, they're thinking, which is good because I don't want them to go into this, but private credit. And so, you'll meet people, younger people, and I say, "What are you up to?" I said, " do they say it like that?" Yeah, they say it private credit. They're kind of like, they don't want to let everyone know they're going, private credit. And we, but they also want to let me know they're going. We've talked about it to some extent, obviously last week, Mark Rowan, last Monday from Milkin. That was great. A lot about that. They're one of the giants in private credit as a follow-up course, in part through their insurer theme. He also though talked about the fact that there are 4,000 public companies, not 8,000, and how important the private markets are and are going to continue to become. This is another sign of it when you're taking out these companies that just went public three years ago and taken them back to the private market. So, yeah, private credit is a giant right now and is only growing. If rates go back to a very low level, I don't know that it will continue to quite offer the same opportunities, although maybe it will. There's a spread and it's... Well, if you've got a little more for investors when you can get potentially double-digit returns. Yeah, you had a nice day today, if you owned it. I mean, let's not... I mean, I understand it, if you can't, if you held it the whole way. You mean Squarespace? Yeah! Yeah. It's what's a nice day, man. You were sitting on... you were at the end of last year, you were 27. So now you've got this price and, you know, you didn't know you were sitting on a gold one. Well, we got a brief pause for volatility on GME, Jim, just resumed back up 68%. Well, that, you know, you call out there, here's what they'll tell you. Nothing. Nothing. Unless Ryan Cohen's more of a... Maybe we should just give Ryan Cohen a call. So this is Roaring Kitty. Yeah, with the chair. With the chair. Right. Okay. In the study with the... No, it's Colonel Mustard. Colonel Mustard. This will take you back, Jim. I don't know. Maybe July or June of last summer, basically. Well, they got this thing going. I know that there's a belief that there is a new gaming cycle coming, so you can foam in for the second time using networks. And for that, this time, it's a violation of the 34 Act. You can create something that makes it so that you have a thesis. I know, listen, a thesis. All I know about Roaring Kitty is from the movie "Dumb Money." You star in that movie. Yes, which I had a major role in, of course, yes. You're in the course of the movie. His thesis... It never came down to... Don't tell me you're going to go fundamental. No, it didn't ever come down to fundamentalists. It didn't. You were sold fashion. This is a breakout. This is a breakout. Okay. Yeah, it's been... Now, you've got a fellow traveler, Ryan Cohen, who's the CEO, who's not going to say issue a statement saying, "We don't understand why this is going up." Although he should, right? Because it has nothing to do with him, I hope. I hope. Meantime, guys, airlines are definitely worth watching. Oh, yeah, we have positive note there. HSBC initiates Delta American United at buy. The Delta charge, Jim, doesn't connote any decline or slowdown in spending. No, I mean, travel's been the dispute, right? Because domestic travel's been not that good. Overseas travel's still holding up because they... It's kind of a rolling situation of how far away you are from when you had COVID. I like you in airlines, and I like Delta. I think it's very interesting that once again, Southwest Air held up as just a hold because of the Boeing problem. Meantime, you've got gasoline prices down three straight weeks, Jim. The average now of 358 will take you back to April 8th. Extraordinary interview this morning, Spock, talking with, I believe, is the Goldman commodities analyst, talking about how Chinese demand for gasoline down because of the EV market, no one's ready for that. No one thinks that the EV market can take over that quickly, but who am I to dispute the Goldman? I'm just speaking of oil and gas. Chuck Schumer, Senate Majority Leader, takes a shot at Chevron Hess. Yeah, what was it? I think we may have the... Was it sounding the alarm? There it is. Sounding the alarm. Now, obviously, Exxon has already closed its deal with Pioneer. I wonder what he said. We've talked a great deal about the hostility currently in place between Chevron and Exxon over the joint operating agreement that Hess is a party to in Guyana. They're going to arbitrators. It's UK law. They've got us to look at a third arbitrator. I think Chevron continues to be confident in its position about the language in that JOA, but as does, of course, Exxon as well. But this was weird. Yeah, but they now... With a Trump reference to Big Will, why is Chuck Schumer saying this now? Do we know? Any ideas? Frankly, mystify's me. Okay. Yeah. I'm mystify. Made the point a number of times, by the way, if the deal were to break, Hess probably goes higher. Definitely. And so you're not seeing any real movement here or any dislocation in terms of the spread. I would also add a week or two ago, I was talking about a number of shareholders and Hess who were somewhat disconsulate with the idea that there was no real premium in this deal and at least thinking about writing letters and trying to galvanize opposition during the shareholder vote that's upcoming will be upcoming for Hess shareholders. That never happened. Those letters, if they were written, I think they've been written and not sent and doesn't appear they're going to be. So that did not amount. Not that it would have necessarily been able to mount true opposition that would have resulted in Chevron coming back to the table, but it doesn't appear that effort has really happened. Elliot would have been the most likely given they know Hess really well, having undertaken a proxy fight there many, many years ago and they didn't. And a number of other shareholders I was hearing about and talking to decided not to. Did you look at the Wall Street Journal editorial about the FTC throwing Scott Sheffield under the bus? I didn't see it now. It's really brutal about the FTC is Scott Sheffield's probably the dean of the oil group. He was the CEO of Pioneer very widely respected man. And that's when they said they have letters showing that he went trying to fix price and the people I deal with say well he was in communication with everybody at all times. But the journal said this is just a classic overreach the FTC just throwing them in the bus. It seems like Exxon was not necessarily standing up first. They just wanted to get their deal done. They want to deal them now. As we're going to break watch bonds today pretty data light except for mester on the table and get PPI tomorrow. As for equities almost all sectors are green comm services getting dragged down by Google meta. If you're looking for closing highs 52 54 would be that number we're just about 30 points shy. Stay with us. Watch GE today down a bit although JP Morgan does reiterate and overweight they were at 148 they go up to 175 as they boost some of their target multiples in the aerospace space. Dows up 113 and we're close to 52 30. Stop trading with Jim coming up next. Let's get to Jim and stop trading. I like Zellman on housing and I think it's very interesting they went to a cell on KB homes. KB homes really really good home builder and all the home builders have been trading together. So it would be very interesting to see if this one does take a dive. A lot of people have been like KB for a long time. This is a new cell. I happen to think KBH is very very good. They have tremendous tremendous handle in California. So I just we were the cell piece but I just wear any cell in homes because I think there's just too few homes being built and they do well. Do we know what her uh her thesis was? No I did they're not readily accessible. I'll get it later today. I just felt it was important to bring it to light because what a group that has been and there's just no stopping the home builder. So maybe this is she's been really good at picking peaks. So I've got to go to her but I don't I just like the group way too much to go against Annie. My toll is my favorite by the way because they do high end and then I do like Lenore very very much. I know I think the D.I. Horton is very good but I toll is just dug yearly. It's just been extraordinary. How good is it? Extraordinary CEO. How are you going to start the week off tonight? I'm looking at the gig economy. We had a number of reports last week about different gig economy stocks and they're not all equal and I think they're presenters being equal and we're certainly disagree with that. What a day. It turns like there's just like today would have been a quiet there would not in earnings period but my god the research has just been extraordinary today. Yeah interesting seeing meta and alphabet both down. That's gotta be on that boom the story that we discussed. And by the way marketing spend here. Renee has gotten back from you. Renee Hudson the fellow who runs ARM. Yeah. So book no comment on that story. That makes me think I got a good story. The ARM AI chip story which was in the UK. So it was out of Japan. Right Renee Haas but maybe we can focus on I know you've got good sourcing there. So what are you laughing at? What is it? The deep deep deep throat with some around the world. Around the world. I have good sources. I know you're out of town Friday. I know where you're going. I'm out of town. Yeah. Hey you're going to see you're going to see softback are you? No. I'll play that game all week. Jim we'll see you tonight man when he's 6 p.m. Dows up 100. A quick break here is that's going for nine straight gains. Stay with us. You've been listening to the opening hour of CNBC's Squawk on the Street. 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