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Plus, we're going to give you our retail roundup. That's by seeing sluggish electronics demand, coals with a massive miss, and Footlocker saying its turnaround strategy is showing signs of life. And as well, of course, that takes us to the consumer. Cruise lines, the latest to turn to discounting, while McDonald's pushes back against reports of runaway prices. Let's begin with the markets set for a lower open here, and Salesforce tumbling pre-market. Q1 revenue and the current quarter guide does come in below street forecasts, overshadowing and Irving's beat. Jim and Mark Benioff did discuss the market reaction last night on Mad Money. You can't control the stock, but the environment is not so bad. You're not giving me the look. The environment's gotten weaker, it's gotten tougher in Europe, it's gotten tougher in Asia. I'm not hearing that from you. Jim, you can't control the buying environment. The reality is you're going to have heterogeneous buying environments. It's going to happen and we're in this post-pandemic reality where the buying environment has been. We've talked about this now for a few quarters, been very measured for enterprise software companies, not just a company like Salesforce, but many companies. So what are we going to focus on? We're going to focus on improving our cash flow and our margins. Jim, we've talked about softness and software all week, but this decline is relatively historic for CRM. Yes, okay, so it's single digit growth. Mark was a little more bullish than his CFO on the call, so I want to just give you some of the points that on the call, they talked about sales moderating after a strong fourth quarter. They talked about a constrained sales cycle, Mark did not give me that. They talked about elongated budget scrutiny, Mark did not give me that. They talked about licensed revenue volatility, he did not give me that, and they talked about measured buying environment, he did not give me that. And so what he did say was overall things have been tougher. And I think that to get this granular as to what the CFO would not be appropriate necessarily in the interview, but I did want people to understand, that's why the selling, because otherwise what he's saying is, hey, kind of be seen this for two years, they've not seen that level, which I think is related to chat. >> To chat, well, let me let's make the point more clear here, because what the question I'm hearing is, all right, if there are longer deal cycles, are companies starting to repurpose some of their spending away from these companies to AI, to whatever they may need? I don't know, you say chat, I'm not sure what that means. >> Okay, no, you're absolutely right, let's get more granular. There is a repurpose, there is a fear that maybe we don't need as many people. A war firm instead of hiring a hundred might be hiring 80. There's a belief that maybe one to 3% of the people that you might be bringing on are not needed, so let's hold back, and let's not buy a really big software package, because we may not have as many people next year, it won't be hard. >> That's an interesting point, because what I've also heard is some people saying, well, I need, I'm repurposing my business to a certain extent to using AI. At some point, I may be buying $6,000 PCs that are completely AI enabled, bring it to the edge for my employees. Do I really need Slack? You know, I'm going to get buy with Microsoft Teams. >> Cash Rankin, who actually wrote a very positive piece of gold, he did say, look, and it was crystallized everything. Quote, "Maybe there's a structural change that is going on." So in other words, we think it's cyclical, it's in the fourth quarter, it's very strong for sales forces. Then things dropped off. So the question is, did they drop off because the environment, and you just say Latin America, Europe, and United States, this week, or which leaves you like only Asia, where you're from, from last week. But what I was struck by the fact that while Mark said it was kind of, they've seen this for two years, this was not the same. >> This was not so right in here. >> This was not the same. >> Wasn't the same. >> Because that's a very big tumble for them. >> Yeah, you did express some frustration this morning about, you're tired of hearing elongated sales cycles. Just say the macro's worse. >> Just say, look, we don't have the demand. I mean, I'm waiting for an executive to become the ones that says, look, we thought, we budget for X demand, we don't have that much demand. The reason why we don't have that much demand is because people are reconsidering whether they need our product. >> Right, but is it a reallocation of cash or is it a pullback? In other words, is it the dollar spend going to be the same? It's being spent differently. >> I think it's deflationary. I think that there's simply not as many people needed to do the same task. But it's not a lot, it's not a big decline. I'm getting one to 3%. That's the number I keep hearing. We're hiring one to 3% fewer just because we don't know what's going to happen. I think the more expensive the AI, we heard it from HP last night. I mean, you get these things that are, these computers and they're terrific. And again, all you're doing is you're, if you're the CFO, you're not saying there's license revenue volatility. What you're saying is, we may need not as many people. And this is happening right now. So I mean, I've read some article in the journal about how Nvidia, I've read a lot of how Nvidia may not be made up. But the journal's got a big piece about AI assumptions. >> I read that, it was very kind. It was the tale to cities. It was like, they gave you the worst of times. Let me give you the best of times. The fact is, is that every major company is trying to reassess things because of Nvidia. So you may think it's not, it's next year or the year after. It is this quarter that they're trying to figure out how much Nvidia should reallocate people. And now Martin, say FedEx, no. >> You also said maybe Google shouldn't go after HubSpot. >> God, I mean you go after HubSpot. >> Ruth Porret, you go after HubSpot, I'm the downgrade to right here right now. >> Well, they are going after it. I mean, you know, for the question is whether they get to go. >> They were going after Informatica, Salesforce. >> That was Salesforce. By the way, Mark did, Mark once. >> Mark Spot, but it's also good. >> Mark did comment on acquisitions, at least he said what. We're looking at Lars. >> You do? >> Yeah. >> On acquisitions? >> No, about HubSpot. >> Oh, specifically about HubSpot. >> Oh, all right. >> Come on in. >> Come on in. >> Thank you. I didn't hear it. >> Listen to what he says about HubSpot. >> Thank you. >> Actually, I didn't tell him we were going to do that. >> No. >> We think that the penetration of EIPC is going to be growing over time. The impact will be more relevant in 25 and in 26. In fact, we expect that EIPC and at that point will be our new generation will be between 40 and 60% of our sales three years after launch, that's kind of how we're looking at that. And as we had discussed before, we continue to believe that they will drive an improvement in average selling price of between 5 and 10%. >> I think that Mark is buying HubSpot. >> All right. As you saw, and I see, can you never call for the sound? I mean, Carl does or I do, and that's why. >> It's highly unusual, but because you didn't realize I asked about HubSpot directly, because of you. >> Do we have it actually cut because that was clearly and we couldn't make it. >> I have not been told that we have it. >> Come on, it's in. >> Quarter, we don't have it cut, you know, in your own mind they had it ready, but they didn't. So, will you tell us what he said? >> Okay. You said this, well, first of all, my partner, right? >> Right. >> They're my partner. And Google's my partner. It's implying that this is not going to happen because they're both his friends. So, it may be a frenemy situation, or it may be one of these situations where nothing's going to happen because he knew not to overpay for Informatica, so Ruth Porat knows not to overpay for HubSpot. >> That at least is Mark's opinion. >> That's Mark's opinion. >> Okay. >> Do you have another opinion? We can play Enrique version against him, he's thinking, we can't ask Enrique what he thinks about HubSpot. I'm sure he doesn't really have much of an opinion. Mark did go as well, continue to say, listen, when we look at large scale acquisitions, we're going to make sure it's not to lootive, not to shareholders, but he said not to our customers. >> Wasn't that strange? >> That it's a creative. >> That it's a creative. >> I was like customers? >> That may have been a mistake. >> It may have been. >> Now, yeah. >> You don't usually say a creative to your customer. >> Earlier, I said, look, the stock's down 15, 16, 17, kind of auctioneering, as Scott Wapner was talking about yesterday for another company. And the fact is, is that Mark came back and said, look, the cash flow's big. But David, I come back to you and say, did the Elliott's in the world make it so that the focus was more on cash flow, and yet the street didn't want the focus to be on cash flow? The cash flow's gigantic here. >> I think they wanted it. I mean, they wanted the focus on margins, right? >> Margins. >> It was all about margin improvement, which they delivered on. >> They gave it to you. >> That's why they, Mark was a little conflicted on the fact that he gave the activist what they wanted, but it turns out, you know, he gave them tuna with good taste. >> Right, well, you can't do anything if you're, well, maybe you can, but in this case, your customers are ordering a little less or taking longer than cash. >> He's 50 billion cash. He's 50 billion cash. He's going to make an acquisition. That's what he's saying. That's his subtext. >> So he's going to buy HubSpot. >> Believe it. >> He loved the buy HubSpot, but we even know the FTC won't even let the booksellers join the lawsuit. >> Yeah. That is a key question for Alpha. >> Well, according to you, the FTC's doing tapestry, a big favor. Well, the FTC is on my team, okay, because tapestry, they're going to have to buy Capri also known as Capri, but, you know, we'll get to retail for sure. >> You'll be blocked. >> More importantly, though, Jim, software's waiting in the S&P is now lost at the number one ranking, two semis. >> Okay, so I went over yesterday with my partner, David Faber, the question about how bad enterprise software was. He mocked me. I took it firstly, I said nothing, but it is enterprise software that's a problem. Now, David. >> I did mock you when you said that. >> Play the tape about it. >> I didn't. >> Play the-- >> Just play it on Lori's side again. >> --about how he mocked me. >> Just give the show to him. >> He mocked the heck out of me. >> Because of him. >> I'm not. >> There are two kinds of engineering software going on. I mean, two kinds of software. There's engineering software, which is cadence, and that's on fire. It's 12,000 people, like 2,000 salespeople, 10,000 engineers. >> Yes. >> They're all engineers. They don't do any selling because they don't need to because the product sells itself. >> Correct. >> But enterprise software, which is, frankly, all the software that you need and you have huge number sales. >> It helps me run your business, whatever it may be. >> Yes. >> That's the one where it's most impacted by Chatch. Because Chatch EPT has just gotten better and better. I mean, I'm using it yesterday to try to figure out whether I should have the chicken apple store or the barbeque, the barbeque is starting yet. >> Would you throw a UiPath into this? >> I swear to the bus, they are under the Chatch bus and then put it back in reverse under. That thing is, and then my man dies is bad. >> Yeah. >> But welcome back, Carter. >> Yeah. >> Octa though. >> Okay. So Octa 5. >> Okay. So Octa 5. >> You have really good current performance. >> So that buffed your friend, doesn't it a little? >> Well, you know, I mean, identity is still being stolen, so you need, you need him. >> You need that. >> This is that long recovery from when he was hacked. >> Right. >> Remember, he was hacked. >> I remember, yeah. >> You know what he came on? He did something, David, that was shocking. I said, "Well, you hacked the US. Oh, I was hacked. They crushed me." You know what he used to put to say, "Well, actually, if you want to look at the enterprise value of my oper--" No, he said, "Like, they crushed me, but I'm going to recover." And I thought it was so refreshing to hear that something was bad. >> You know, I agree. Take them head on. >> Those did. Tom Kingsbury, I'm looking at the numbers. You know, that's not so bad. And then he says, "We did badly." So then I didn't have to worry. >> Yeah, Cole's one of the blow-ups in retail. We're going to get to a lot of those. Take a look at the pre-market. As for retail, we'll get to Foot Locker. Cole's Burl, Best Buy, Burke, Dollar General. >> Burke. >> Burke. >> Burke was great, dude. >> Yeah. >> How much of it is the movie? >> Barbie. >> Yeah, Mattel, how they doing? >> I lost you. >> I lost you. >> I lost you. >> I lost you. >> They wear Birkin's stocks in California. >> Oh, Birkin's stocks. >> They're the only beneficiary of Barbie because Mattel didn't do well. >> Hey, you know what? Gosling, he didn't do well in the whole guy. I mean, no one did well except for Birkin's stocks. And David marked my words. Mattel and Warner Bros. Discovery. Uh-uh. Are you going to kill Warner Bros. Discovery? >> Today? >> You kill Paramount. >> I kill Paramount every day. >> Yeah, it's just like HubSpot. >> It's like South Park. >> We're going to kill this. >> We're going to kill this. >> We're going to kill this. >> We're going to kill this. >> We're going to kill this. >> We're going to kill this. >> You're going to kill this. >> You're going to kill this. >> You're going to kill this. >> Every day. >> Why not? >> Roger Ailes taught me that you have to say it 18 times before anybody broke his hurt. >> That is true. >> I feel he's going down that to be the case. >> That's our part. It's all for David. >> Thank you for that. >> Service now is the one everyone is. They're still saying good things. >> They are. >> Okay. >> Obviously going to have a big impact on the indexes today. Let's get straight to the point, you want to grow your portfolio to fight rising costs of inflation or pay off your debt or anything standing in the way of you and financial freedom. Right? 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Best buys up after issuing some decent guidance. Footlocker, of course, we mentioned some of the other names, Jim. But Coles will be maybe the biggest percentage moves. Yeah, because we love him. Kingsport was so great at Burlington, brilliant had great numbers, plus two growth. And it is surprising. Coles is really challenged because that's part of what we're talking about when we discuss a company like A&M. And if it's sunny, you go right by Coles, use some stopping support. But we know that cosmetics are weak, except for ELF, to talk about Best Buy is interesting because Best Buy was down initially. But then Corey Barry came on and said, we will have the PCs. AI PC, they'll have it back to school. It's going to be used. They still can't sell the appliances, but that's just what more Bernousels have said. We had a rate cut and sell that. But this is huge that they've got the AI PC. Yeah, we mentioned HP before the break, where PCs were up three. Commercial up six and consumer down three. I assume we're still in early innings. Well, they don't have it in the stores yet. When they have it in the stores, you're going to see Best Buy go to 90. As it is, they have a four percent yield right here, four and a half. Corey Barry is fantastic. David, these AI PCs, it's going to be as HP is set. I don't know if we've written up to have a lot more of them, right? But it is going to be the largest PC refresh in history. And you're going to have to go to Best Buy to see whether you want to tell. Yeah, or an HP. So dude, listen to me, that stock is going much harder. Dude, you're getting a Dell? Yes. Yeah. I would get a Dell. You see that stock? That stock, well, that stock is benefiting not as much, I would argue, from the refresh cycle you're talking about PC's. But from the server business and Nvidia. Thank you. They put the servers together that include the GPUs from Nvidia that are in the data centers that we talk about so often. The power, all the large language models, just to take you through here, that we talk about that are destabilizing the enterprise software business to take you back to our first segment. Who's hit your blackwell? I don't know. Who is currently Ruben from Philadelphia? A woman from Philadelphia, Ruben, who is DeepMind. You know, she's, you know, the Apple show, DeepMatter, DeepMatter. She's like, discovered DeepMatter. So you're saying the next new of the next generation chip from Nvidia is going to be called the Ruben? Yes. And I'm saying... Not like the sandwich. Did he go to Michigan? They have a great Ruben out there. Yeah. That's Zimmerman? Oh, that's part of you. The Xamarin comes after the Ruben. Got it. No kidding. Jensen already has the next generation. And apparently, according to Cadence, it's entirely possible that the next generation has a trillion, trillion semiconductors. What? A trillion microns. Wow. A trillion. The lithography. Yes. It's not done level. And Dr. Devgen said it's not done by... It's mathematical. He said it's too big to be done anyway other than that. I don't even know what that means. We have a digital twin called the palladium, and you fool around on that and put a trillion transistors on it. A trillion transistors. And that's what Jensen has in mind for us. It's a trillion transistors. Meantime, by the way, NVIDIA is done according to German. I like how we were trying to talk about specialty retail and consumer and it just gravitated back toward NVIDIA's next chip. My partner is on the case when it comes to NVIDIA. You were on NVIDIA, and you were going... Now, when the dog came out, he thought the dog was artifice. I still continue to say... Yeah, listen, we'll talk about it every day as we should. Every day, every segment, we'll talk about the impact of AI and what it's going to be. We'll have to come back and talk about that. The AIPC is the next big thing. And by the way, you know it's in the AIPC. It's a twin switch. Both AMD and NVIDIA. And David, worlds are colliding to Mil Velkask. Why don't we get in these PCs? It's September. It's September. Back to school. Get us the whole point of what I was talking about. Best buy? Best buy to 90. Yes. That's the point. I mean, we'll talk to my computer. No, you talk to Enrique. Don't forget the monthly meeting either. Enrique, we'll talk to man. That's what... That's today at noon. The European feed was electric this morning on wax, and they had the CEO of Nestles. GOP-1's boiling up the whole business. We are going to get to this new Goldman target on Lily. We'll talk to some Disney and Pelt, some McDonald's, of course, in their year-to-date. Great Kramer's mad dash in the opening belt after a break. The market doesn't joke around, so why would you? Get serious. Choose tasty trade. Tasty trade gives you the tools you need to make smarter moves. Dig into data with advanced charting, track profit accurately with order chain trackers, see risks clearly with curve analysis, and trade with low-cap commissions, stocks, options, futures, and more. All-on-one platform. No wonder serious traders choose tasty trade. Join the club genius. Tasty trading is a registered broker dealer and member of FINRA and SIPC. The customer has been under pressure, so there's no question about that. Pro-lond inflation, interest rates that affects everything from your house payment to your student loan payment, less savings, right? So that's all true, but people tend to have discretionary categories that they care about. So if you care about sneakers, our job is to offer up the best and the best way. All right, that was Foot Locker CEO Mary Dillon, a guest on Squawkbox, and that was a good place for us to start on your mad dash. That's a good executive. Mary Dillon did not create false expectations. She said, "Listen, we're on plan. The plan is going to take a long time." They did positive comps and actual foot locker. Champs is bad. But that's what you do. When you're an executive and you see your plan coming to fruition, you don't come on and say, "Listen, we're way ahead in planning." It's just a good situation better than people thought. I've been waiting for Mary to get a real handle on it. I think she's got it. That doesn't mean her two-year recovery has pulled ahead. But she had, I felt, the way, the hand of a winning, finally it's a winning hand, but it's going to take a while to play out. But I just think she was very strong this morning. Signs of life, that's for sure, all right? Not the same at Coles, as we said earlier, which is going to be down sharp. It's been a very mixed bag recently in retail overall. Yes, American Eagle versus an A&F. But Dick's very strong. Dick's right. Dick's was good, but at the same time, you look at them all, and you say to yourself, "Why is everyone going to Abercrombie and Hollister, not the other stores?" You know, Macy's was good, but that was because of Bloomie's. And the 50 Macy's that they picked them are good. Anyway, I was surprised that Coles was this bad, and that was the company coming forward and saying that. But I do think that Mary Dylan has a lot of stores, Total Pro, Turnaround Ulta, which could use her again, by the way, Ulta's struggling. But wow, it's great to see the executive know it. It makes me feel it. Let's get the opening bell here in the same BC real-time exchange. And the big board, it's logistic properties of the Americas, celebrating a listing via SPAC at the NASDAQ. It is apparel and footwear online retailer Lands End, celebrating its tenth listing anniversary. ♪♪ Yeah, my guests will keep our eye on CRM. The show points out, this is the first revenue missed since 2006. [ Cheers and applause ] Yeah, I mean, these are amazing. We are seeing some companies that are just missing the mark as you can't believe. I don't know. I mean, let me see. This is a have-have-not like I haven't seen. I mean, I know that the sense is that there are four companies now that are moving. So that's not true. There are companies in industries, anything connected with electricity, anything. As everyone of these people, whether it's a Zuckerberg or the people of Google, they know that you have to have more data. That business, anything connected with electricity is so great that I just cannot stand to hear that this mark is about one couple of stops, because the electric grid involves so many. Goldman yesterday, MAG7 exposure, net exposure, now 21% of the prime book. That's the highest on record. That's your passes last summer. Their point is that as long as that continues to trend, the index is going to be fine. Yes, that's true. The overall index is going to be good. It masks a lot of things. I mean, David, you know that we do not have enough electricity in this country. And you know that the grid is in sad shape and it's finally got plus 5% growth here and here and here and here. There are companies that do nuclear that are doing well. I don't regard this concentration as all that bad, because you know why? These companies are spending tens of billions of dollars on the grid and on chips. And that's why they are the engine of the economy right now. Now that the government is kind of just doing some infrastructure. Pay a lot of it. Well, yeah, Microsoft alone spending $50 billion. Alphabet can have spent $40 billion. I mean, the numbers are enormous. We point them out during video. We all pointed them out during their earnings when they came up with those numbers, which we've never seen the likes of in terms of CapEx. And to your point, a lot of it is going towards building data centers and putting in the infrastructure. They're not building the power plants per se. No, but they're begging the power companies to come to the grid. Please be solar now. Right. Well, they want renewables to power the data centers whenever possible. Although to your point, it may not be fully possible. It's not. And then there's simply the larger question of whether the grid is going to have enough capacity to power all this AI to begin. Oh, I remember back in the .com boom. We were all worried that the Internet was going to destroy the grid. Oh my God. David, two words for you. Dark fiber. Yes. Dark fiber. Now, who needed to light that fiber the most? A burning quest. Joe Nachio. Oh, Joe Nachio. He was fun. Yeah, a lot of doors. Those were the house. Well, Quest was created by they put it next to the rail lines and answers. Owned, right? Yeah. That was Jack Ruppen. Why Denver is the city of success? All those old rail lines made it easy to lay fiber. Did that? Yeah. See, you never know where you're going to go on this show. You're going to always learn a little something about this. Dark fiber to today, so maybe this will all be overstated. Maybe we'll be able to meet these needs. But I will tell you, Carl, there are plenty of executives, not just in the power industry who are at least somewhat concerned about it. Yeah. Well, look, we're getting over and over again. That some guys... Meta. Meta is concerned. Because they want to have expansion plans that are required with much poorer electricity. They're the biggest buyer than Amazon. Yeah. Chips. Yeah. You buy the chips, you got to have somewhere to put them, and then you got to have power to actually get it and make it work. But you can't buy the chips without putting the use. Because Jensen won't sell them to you. You can't stockpile the chips. You know, you can't do that. You can't play that game. I didn't know that. You can't stockpile them. No. There's no stockpiling them. No. He monitors your extra money. Oh, yeah. You cinch. Yep, he does. Really? He's not giving them to people and just say, "Listen, I'll get to it." And Michael Dell will tell you that. You know what? For whom the bell tolls, it tolls for Enrique Lawrence. You know, you mentioned the Nestle CEO who was a guest on... That was the oldest of all the shows in Europe. So you can see... Fabulous interview. Talking a bit about GLP1s. You know, we've had two major trends here, obviously, over the last year, year and a half. One, of course, we talk about every moment, which is AI. The other is GLP1s and what they've meant. Yes. We've watched Novo Nordisk shares and Eli Lilly shares sore on the success of their drugs to treat obesity. Obviously, diabetes, initially, but obesity. And potential for so many other indications as well. Jim's pointed this out many times. Could it be helpful for alcoholism? Could it be helpful for a number of other... High blood pressures, NYU main goal. High blood pressures. And so I would note A note from Goldman Sachs in which they raise their overall forecast for worldwide sales of the next generation of primarily GLP1 receptors to $130 billion a year by 2030. They had been at $100 billion, so they raised it by 30% in terms of it. Why? Well, they just think more people are going to be using them. Not the total addressable market necessarily going up as much as the number of adults who will be treated regularly with them for chronic weight management and a number of other potential diseases, Jim. As for Nestle's CEO, he said, "Listen, they seem to, you know, when you're on them, you have different nutritional needs and therefore you may need more protein to retain muscle mass." He's got something for that. But he was the first CEO who came out and said, "Yes, there's major impact." And I was listening to him. I said, "Oh, my God, what? Didn't you get the number that says you're supposed to be in total denial? How about you if it does once?" But I guess when you're the largest confectionary company in the world, you've got to say, "You know what? We've got to pivot." Now, his pivot is being reflected in the... Well, not yet. That's...no. Okay, but he is admitting, Carl, that they have...everybody's not to address it. And there's not enough protein, so elderly people get frail. They have to put more protein, I guess, chocolate bars. Well, we did talk about... And the S-L-S makes for GLP. We were talking about their new food line called Vital Pursuit last week, which is for GLP-1 users. Yeah. And God leaves theory that there'll be a whole industry of consumer products for people who are on those medicines. Yes, Abbot Labs has the drink right now, the protein drink. Now, Abbot Labs has a couple lawsuits that are vaccine record, thank you. There's a lawsuit about formula that is suppressing the whole group. But Goldman Sachs came out this morning with the most bullish Abbot report I've seen. No one's going to buy this thing until this, or I'm telling club members, that until you see a couple of lawsuit wins, which they haven't even come to trial, but they have a lawsuit in Missouri, which is Missouri's the most pro-plaintive state in the union. So, if you bring a case there, people just presume you're going to lose. But speaking of their counsel's pretty popular. Speaking of this space, Jim, McDonald's, the U.S. chief with this memo about what he would argue is pricing misinformation. You talked to Chipotle last night. I don't know if you've seen McDonald's versus the S&P so far this year. It's remarkable. It is remarkable. And I got the note last night, and I felt terrible about it, because, look, McDonald's... This is from Joe Erlinger, who's a terrific guy, and he says that the reports of the Big Mac is really $4.39 in 2019. It's going to $5.29. That's an increase of 21%, not 100%. There was a report of an $18 Big Mac meal being sold. Even if it was one location, $13,700 or not doing that. So, I read this note, and I said, "You know, McDonald's is not being reported on correctly." So, I felt like when I got this, I would certainly come forward to say that this is a significant change from what a lot of people are saying. That's a reminder that franchisees set the prices. Yes. Unless it's a corporate-owned store. But this is, I don't know if it's reflective of inflation or employment trends or GOP ones or something else. Well, I have to tell you, I have Brian Nickel on last night from Chipotle, and they've got the most expensive so-called fast food. And they've seen an accelerant, they've seen amazing numbers, amazing numbers. It's incredible. I mean, they have a chicken out bus store, which I really recommend to you right now. It's a limited time only. I asked him if he was going to do the same thing that Red Lobster did with the shrimp. He said no. That's a smart move. He doesn't want to bankrupt the enterprise. What he is saying is that they've had no degradation in sales. And so, maybe that David, the question is, if you make the food fresh and terrific, maybe the people will. People keep coming. Yes. Yes. But I hadn't liked McDonald's. And I never, but you know what? I read this. I said, oh, God. All right. I make a lot of money, so maybe it doesn't, I don't see it. And that's not the way America is, because only 6% of the people in this country make worth $100,000. Because we are in a have, have, not society. Lenin. Yes, that is very much the case. But that's for another day in another show, I think. Right here, we're just all about capitalism and markets. I don't know if you've got some memo there. I was going marks and angles. These things, it's morning angles. Yeah, no, I'm not going, I don't know where I'm going. How about I go to... And we said that people are like the sack of potatoes. Who said that? Actually, it's angles about the peasantry. Like a sack of potatoes. Yeah. Hmm. Come on. Really quick. The wage gap has actually closed. Not broadened. That's true. And lower cohorts are actually... I know. You're a lump in proletariat. It's now lump in crab meat. Yeah, but it's still pretty significant, isn't it? Compared to the 1970s. Or the 80s with Ray. Or the 80s. We talked about compensation for CEOs versus the average worker. We're so far. We're so far fueled here. Could you bring us back to reality? Sure. You want to talk about the NBA and Warner Brothers Discovery? It's about time you killed Warner Brothers Discovery. I'm not going to kill them. David Zazlop, the company CEO, is at a Bernstein conference talking about what we've reported and namely this continued conversation with the NBA about whether Warner Brothers Discovery will come up with something here. He said we continue to talk to the NBA. I'm hearing Sam, of course, they continue to talk. They're focused, as I've reported previously, on that potential package that Amazon has. That so-called streaming package. Yes. At the NBA has not on the package that our parent company Comcast seems to have more or less sewn up and not on the Disney package with ESPN but on the Amazon package. But it's unclear whether they will figure something out there. Is there going to be a dispute about not just meeting on the economics but on what the NBA wants in terms of a streaming partner and whether that could be represented by Max? Because that doesn't make necessarily economic sense for Warner Brothers Discovery just to sign up to just to stream on Max and not have it on TNT. So will there be some sort of a dispute around that if in fact they are even willing to meet the economics of the deal itself? These match rights were written ten years ago before sort of streaming, certainly streaming for sports was really a thing. So we'll see how that goes. They're still talking. But Zaz Love went on to say as he often does, we've got a lot of other stuff. We've got NASCAR. We've had a lot of college football, including a lot of college football playoffs. We've got hockey. When you put it together with March Madness and baseball and soccer, it has a very robust offering for consumers and that's our job. So that's what he's saying. That's pretty bullish. I don't know. There's also his quote, "There'll be some players that want to get out of the business. They'll look to consolidate their streaming business with others." And so we will look to be opportunistic during that time. Yeah. Well that's a hope that he's still hoping somehow there's a shot at getting at Paramount. Not that they would buy Paramount, not that they would, even though I think there's enormous potential synergies there, but that there'll be some opportunity to pick either pick Paramount plus up or do something if in fact, well, who knows? Do you have a Peacock bit of knowledge? What would you like to know about Peacock? Just trying to see how quickly your broom from the... No, a Peacock just got sports. No, I don't. The Peacock has sports and I have to tell you that the NFL, how they determine the schedule for Peacock, because I was out there in Kansas City and the people want NFL in any place. NFL is the key product. It's the key product. We talk about it. We talk about it. Less than a hundred days away. Here come. Olympics. Got it. And that's only available on the Peacock, so to speak. Look, I know you're... You're a baby. You're a baby boomer. The Gen Z is addicted to Olympics. To what? The Olympics. The Olympics. No, I'm not kidding. Olympics are great. They're great. And we're not just paid to say that. They really are. They're great. No, you were paid to say that. I felt, on the other hand, having tried out for the Olympics and failed. Yes. Well, the rowing team was their loss. I had a... I ran a 48-quarter mile. That's not so bad. No, you were very fast in the day. I was in Penn Relays. Or you just... Everything collapsed on you. While we're in the media circle, how about pelts? Yeah, Nelson is out. Nelson's out of Disney. Good prices? How much money did he actually make? I, Perlmutter's stock, remains. That's my understanding. Right. So, Perlmutter's stake was most of the overall stake at play here in terms of the proxy fight. But try and stake his console. He made a lot of money. He made a lot of money away. Really good basis. And a lot of good money. A lot of good money. No good basis. Real good, though. Really? Yes. Actually, they only have like 6 million shares, right? Of the 31 million or something like that. Well, how much do you look if you spy something in the 180s and you sell it at 220? That's a nice win. Yeah. But it's 100 now. Where did they sell? I don't know where they bought it. No, they sold at like 19-20 dollars above this. Right. And they bought it maybe in the 80s? Yeah, they bought it continually on the way down. Yeah. Because they thought it was a good buy-in. It was. Ike, on the other hand, is, you know, obviously just a very frustrated shareholder. I mean, he's been the longest-term shareholder. I mean, he's been there for a very long period of time. That's where most of the stake was, that we made the point many times. He's focused on the political regime. Yeah. Peltzes. No. Well, Peltzes too. Well, it's just that. I mean, you saw the journal reporting. I think Maggie Habermann, also at the Times, reporting about Peltz having them meeting it in Palm Beach. Musk attended Trump. Well, there's. And bringing them together. It would have been interesting if he was on that Disney board. Given that. Schwartzman's come out, yes. Waiting for a verdict, I guess, right? Yep, potentially. Guys, on, you know, we showed Paramount, I might as well just give a very quick update. Very quick. Because I don't, I may have more lane on the week. But the Ellison Red Bird Camp, they continue to do their work. Remember, exclusivity expired on them some time ago on Paramount, but that's where the focus is. Who knows? Will they get something? Will they get to the finish line in the next couple of weeks? Certainly they've been working at this for so long. One would expect that they're running out of time. I'm hearing from all sides that they would love to at least have something either done or know that they're not going to get there within what's called early, early June. And who's running? Three different gentlemen. Three. Three different gentlemen. Three had a company there. It's not a recipe for success to have three, three non-CEOs. The Pep Boys. Yeah, the Pep Boys. Just like the Pep Boys. By the way, Sony and Apollo, I mean, they signed an NDA, took two weeks and nothing, nothing. Crickets. So that's what you got. I'll have more, hopefully, if and when they, they're trying to narrow the gap between the Special Committee and what they want to deliver for the B Shareholders, for everybody. They're trying to narrow that gap every day. We'll see if they can. You kind of a DNR there. Did a DNR. A DNR. Yeah. Do not recess to you. Well, it's a tough business, man. But what will happen if they don't get a deal done? They've got three guys running this thing. I mean, none of whom are the CEO and they... But what do they mean paid? Because they are in the medium. I don't. You've got to pay me each 30 mil. You guys mentioned Musk. Jim, there's a ton of news in the auto business. There's this report that they're seeking to register FSD in China and will sell it as a monthly subscription. You've got BYD with this 1300 mile range hybrid. That's unbelievable. You got Jeep saying they're going to roll out a $25,000 EV quote very soon. Look, I think Tesla is in league with NVIDIA to create autonomous machines that are going to do far more than be cars. And that's going... That has to be the savior. But I do think it can happen. I think on an autonomous machine that we just try to figure out what all the great things it can do. Yeah, well, I think the autonomous machine is going to say, "Go to Wingstop. Get me some wings and bring it back." That's what's going to happen. Will that be the Optimus robot? Will it just run down there for you and hand them to you? Do you have Amazon getting FDA clearance to operate drones outside of the line of sight? Yeah. I think that... Look, Amazon... We haven't talked about Amazon nearly enough lately other than that about the NBA rights. Yeah. There's spending a huge amount of money to do so many different things in AI. Now, I don't like Claude right now nearly as much as Jack because Claude... And that's their funding anthropic, which is Claude, right? Because Claude does... There's no good from my 20... In the last six months, Claude has nothing. I mean, it says... Claude's not trained on current... What do you think? You Google about how NVIDIA is going to do, it says it's like unlikely to do well. I see. Unlikely to pass it. You know, it just doesn't... It's no good. That's what I'm saying. Yeah. Tesla shares are up another two percent. Don't forget. We're in the midst of that important shareholder vote, not just on his compensation, but also in re-incorporation in Texas, where there are two separate votes. The Texas one, they need people to vote because they need to get 50.1% to vote in favor of the outstanding shares. Wouldn't you want that tour? The plan, if you vote... Well, you get a Gigafactory tour, if you vote or you're put in a... I left the tour the limit. You put in a... Any factory is... A lottery to get a tour. I was going to buy a share, I'm not allowed to buy a share, just to be able to see. I got a tour... I got a tour last year when I ended up in Moscow. It was cool. Really cool. Amazing. It's worth it. Is your name... What? Montoya? My name is not Montoya. One of the greatest views ever. Princess Bride. Come on. Let's give it. Princess Bride? One of the greatest. Rob Reiner? Great. If you have one take, we're here. Quick reminder. Don't miss the next Investing Club monthly meeting happening at noon today, as Jim has been talking about. You can join the club for members only access to Jim's next big moves in this portfolio. Meantime, watching bonds back below four six on the ten year. We got pending homes in a few minutes and claims did run a little hot, 219 K, a little above expectation. Stay with us. Jim, you've got your monthly investing club meeting today. Very exciting. There's been a lot of time on Best Buy because I think that that is the one that has the most opportunity of the companies that we follow, obviously for a sales force. Foot Locker, I think, is on target. But we have a new name that we're going to be discussing, which is Dover. And Dover is at the heart, again, of the data center. You have to have data center in your portfolio in some ways, even if it's solar. There's a few different ways to get there. Yes, there is. Solar's important. We're not yet as much, but I've got to tell you natural gas, too, and no one wants to talk about that. No, but that's going to have to be used. And then nuclear, of course, takes forever to build these things. They can put the open three mile on again. That'll be something, right? I'd love to take and run that tour. Jim, we look forward to it. We'll see you at midday and then again later tonight with Hormel on Mad. Meantime, S&P, down about 15. The Dow is taking the brunt of the beating today. Don't go anywhere. You've been listening to the opening hour of CNBC's Squawk on the Street. 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