Carl Quintanilla, Jim Cramer and David Faber engaged in a wide-ranging discussion about what's next for Tesla after the company's shareholders ratified Elon Musk's massive 2018 pay package. The anchors reacted to what Musk said at Tesla's annual meeting about the EV maker's valuation and robotics. Also in focus: Adobe surges after AI demand fuels the company's quarterly results and guidance, broader markets coming off record closing highs, what Cleveland Fed President Loretta Mester told CNBC about rates, Apple and Microsoft ramp up their valuation battle, GameStop/Roaring Kitty update.
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Futures are soft or Europe's under some pressure. The focus once again on France equities not able to enjoy more disinflation today and import prices 10 year hugs for two lowest in almost three months. A roadmap begins with what what's next for Tesla and Musk as his pay package and the Texas incorporation resolutions were approved by shareholders. Well yesterday it was broadcom today it's Adobe riding that AI rally those shares are searching on quarterly results and guidance that was raised. And of course we'll stick with tech why not Apple and Microsoft continue to battle it out for the title of most valuable company in the United States. Let's begin with Musk's pay package being approved by Tesla shareholders Jim it was not close some 77% he's got Vanguard to think it looks like. Yeah I also think that there was a belief that there would be an existential crisis without Musk that Musk certainly could take his bat and ball go home. The energized Musk is very exciting for me because maybe he has something up his sleeve he tends to have something up his sleeve. I remember that Jensen Wong continuing to tell me do not call it a vehicle company this is autonomous machine David autonomous machine has many uses vehicle minimal uses. Yes autonomy has many uses and he believes will add to an enormous amount of market cap. Yes shareholder value obviously we're talking about a pay package which he has now again been has been bestowed upon him as a result of creating enormous shareholder value over the last six years not so much the last couple of years as we pointed out many times. Just remind people that pay package was at the time in 2018 worth some 2.6 billion on a 59 billion dollar market cap at the time obviously fast forward we're talking around 50 billion let's call it on the current market cap. 8% of the company. Yeah it's gonna be it's gonna be deluded. Yeah you're going back to a Delaware you're going back to Delaware court get this thing ratified and you know it's not completely clear what Chancellor McCormick is going to do here but with the re-incorporation in Texas and the fact that you put it to shareholders again and they have once again overwhelmingly approved it. Enough. We'll see right I mean but you'd imagine it just say okay fine. But what do you think about the energy eyes dancing you know obviously very home love of Tesla let's go beat the Chinese that's my own. You know what struck on any number of people of course to your point Jim was not just his discussion about autonomy remember he's already famously said I'm not we're not a car company right what he does appear to be focusing on now and I was at the annual meeting a year ago he makes claims that you know our our long-term in nature to say the least but what he is focused on it would appear in terms of what may be the main driver of value at Tesla over let's call it the next 10 15 years is robots and right he basically said optimists and we've shown you videos of it in the past and they continue to sort of advance in terms of what optimists is able to do. He sees a world in which you know you're talking about potentially as many as a billion robots a year being made they have 10 percent market share so just follow the map with me a hundred million robots are being made by Tesla he says we sell them for 20,000 bucks we make 10,000 in profit therefore we make a trillion dollars and I'll let him pick it up from there. I'm confident of the prediction that there will be more like the ratio of humanoid robots to humans will be greater than one-to-one so that there'll be you know more than 10 billion humanoid robots in the world probably 20 or more and Tesla is going to be by far the leader in that. He reiterated what we were hoping he would say and we have him obviously is they're going to get a 20 multiple on a trillion dollars in profit so it's going to be a 20 to 25 trillion dollar market cap opportunity. Well look this is this is the missing piece of the puzzle about what Nvidia was saying the GTC which is its robot robot robot robot but no one's taking them up other than this man and he has so many of the big chips from Nvidia that I have to believe that he is going to be the guy who creates the form factor that Jensen dreamed up to begin with. It's very big. It is. It's very big. But do you can you really imagine a time in which again there are a billion robots being made a year maybe he talked about as many as 10 billion robots eventually. Look there's no matter what they are 10% market share and therefore they're making 10,000 on each robot. I mean is that really a possibility? Well look I'm not gonna rule it anyway this guy but I would say and Carl this is being put his robots one of the things that that Jensen said over and over again is there's this notion that the robots can look like anything they have to look like humans they have to act like humans because they have to do human tasks and anything a human can do a robot can do if you just prolly on correctly and the only person who's doing this is Musk. So yeah I mean he has a lot of a hundred percent of some market he's the only one that seems to be doing it scale. He is throwing a lot of numbers out there Jim 50% gross margins you make it for 10k you sell it for 20k two to one humanoid human ratios I mean we take all this to the bank? I don't know when he told me that all of our power five years from now all the power in our country would be generated by a big solar field in Northwest Colorado 12 years ago and that's one he got angry at me because I can I actually question that I think he is a person who has dreams of possibilities and we got to appreciate that. People who think big but when they talk as big as thinking big it gets people a little too excited about the sucks. As for the EV business Jim he did say tough sledding but he did seem to ratify or endorse year-on-year delivery growth for the year. Well I had Patty Poppy on the other day she's from Pacific Kids to Electron since they still got great growth in China. I mean California is one-fifth of the country but if you had China the growth would be insane. I'm not following you. The Chinese cars are 10,000 so let me put a big tariff. The growth of what would be insane. The growth of EVs if we let actual Chinese. Oh if we allowed the Chinese to sell EVs here. They would just take over the market. I mean we I guess we technically do we just throw it we have a tariff. It's 10,000 so we're going to charge 20,000. Well then that would still sell. That's what I'm saying I think the take could be a real threat. They need to have more than 100% tariff it's not going to do enough. Which shows the cost disparity. Now they have been supported by the state and China of course that is certainly the attention of our country. Who's Musk supported by? Who's Musk supported by? Yeah the free market. Yeah that's right. The Chinese harder to operate. I mean Chinese BYD what they got a tariff under 20% Europe. I mean you can't beat the Chinese if they're subsidized. They can't beat them. The Chinese have lowered their price points by the way there. They're battery technologies where they really make it up because they're the leader in batteries. That's where all the stuff's made. Right? I'm not wrong. No you're right. And so they're and they're able to incorporate the batteries and I guess they continue to drive efficiency there. Well how many beats? And the quality of the automobiles is improved. Fantastic. I don't know they're fantastic. Have you been driving one? My wife just drove one for seven days in Italy and she said this thing was amazing in ten thousand dollar car. Ten thousand this is just so much better than Tesla. She's just fantastic. Don't look at me like that. She broke a ten thousand dollar car and said it was better than a Tesla. Kind of yeah. What? Well yeah maybe she was given to hyperbole. Well I don't know. Speaking of that part usually when we talk to CEO's Jim about their own stock they're like oh I'm trying not to talk about that. Not musk listen to musk talking valuation of Tesla. If the price earnings multiple is say on a 20 or 25 something like that that would mean a 20 trillion dollar market cap from Optimus alone. And probably 5 to 10 from autonomous vehicles. So like I think it's actually conceivable it's within the realm of possibility for Tesla to achieve valuation ten times that of the most valuable company today. Tony Saginaki a moment ago saying he just don't hear that very much. Well I think Cathy will say those are very conservative numbers. Thirty trillion dollars and we'll say why is he the boy. Within the realm of possibility that it will have a thirty trillion dollar market value. There's a lot of things within the realm of possibility. I suppose. Better do that and you'd better dream big and say listen I think they could go up ten percent. You're right. I think you have a ten percent increase. Dreaming. I mean what's Farley saying right now for three. We could do seven percent. That's the real thing. Dreaming big's never stopped this guy and that's how you get a giant rocket off the ground and you're gonna get tomorrow. So you got a dream big. Look there are I question the other guy mentioned it in video could have a five billion dollar market cap. Five trillion five trillion. It was sneered sneered at everybody. Now I reminded people that when Apple got to three trillion everyone laughed at that. I mean you can continue to laugh at the valuations. This guy if he can do the well Optimus what did you say the valuation of Optimus's. A lot. Twenty to twenty five trillion based on again one hundred million Optimus robots being sold per year by the company. At a profit of ten thousand. Maybe it's rice marks and it just gets the dollar gets the rice mark during hyperplation. By the time they're doing that anyway and I will fully take an over it will be exceeded our intelligence. They'll be putting it in the robots and we want to worry about any of this. And by the way who knows who's gonna be here talking about whatever because the market's gonna be run by machines too. Yeah don't worry about it. There's three. That's the three that I care about. That's what I care about. See them? I did. They're not stujes my friend. They're the winners. Speaking of which take a look at the pre market here we're gonna talk more about the broader market after a short break. Some good desk notes out of JP Morgan today Jim looking at whether or not you continue to barbell cyclical zintech. I don't know. Yep. Remember when the economy starts slowing down you have a cell companies like Newcor I guess. We do have a couple pre announcements new course one of them. We'll get to how bonds are responding to this morning's data and some of the feds speak that we'll get later on this afternoon and tonight. Stay with us. The most innovative companies are going further with T mobile for business together with Delta. We're putting 5g into the hands of ground staff so they can better assist on the go travelers with real time information from the Delta Sky Club to the jet bridge. This is elevating customer experience. This is Delta with T mobile for business. Take your business further at T mobile dot com slash now. What's on the horizon for financial markets. At P Jim it's a question that over 1400 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 shape tomorrow today. Pursue your tomorrow with P Jim a leading global asset manager. Certainly if you look at the effect of our policy so far you can see it affecting the economy right we've seen it affect housing markets we've seen it affect growth rates we've seen it affect and bring supply and demand in the labor market back together so it's definitely a common effect. Whether sufficiently restrictive that's why we need to be data dependent and sort of assess where inflation is going. We've always said that we really need to have that confidence that is moving down on a path to 2 percent. We're not going to it would be inappropriate to keep rates at current levels until inflation gets to 2 percent. As Cleveland Fed President Meister on squawk this morning to for her to say that the recent data set is welcome news is kind of a big deal. I thought to myself well wait a second maybe this is the new freed up. Meister she actually is not someone who has periodically done many bad things to the stock market in the bottom. There okay everybody good look at she served well the new person is very good but she did her job. I cannot say I agree with her very often rule. But you do now. Well I believe her goodbyes. Very sweet. And meanwhile I mean there's the tenure inching above 4.2 but it was below it was 4.19 a bit earlier. Even though we had these auctions this week that what the auctions went very well a lot of things happen this week that weren't supposed to happen. But I would point out before you to bullish. The three stocks almost the entire market. Yesterday at one point we had 80 percent down volume and the market was flat. I know these giants are doing Yeoman's work. Yes there was was Broadcom. Today will be Adobe Adobe was extraordinarily good. This can't continue. This being what? You can't have three stocks be the whole market. It's just not it just doesn't work. You have to be worried that I hate to have Meister be positive. Maybe a downer. But you have to be worried that the whole market's just five stocks. We were a lot of it. We've lost so many more. We've lost drugs. We've lost banks. We've lost rails. We've lost so much. We lost steel. No kidding. I wanted to come back to you with that. We will at some point. Yeah you're bigger than new core steel. No new core is the bigger. But you want steel. Deal or no deal. Not great. But there's just look. I mean the Huntington Bank down weight this all stood to sell this morning. It all started frankly with Huntington Bank. Which I said listen we're not they went to Europe two weeks ago with UBS as the things are good and then they came back at a rival conference and said hey we're sorry got to cut numbers. And that there it is. That's what everyone's worried about. We do have about 17% of the S&P bank sector at three month lows. That's the highest since October. Although Jim B of A getting an upgrade over at KBW. Yeah I thought that was interesting. They had some good things. They had actually been a bit of an underperformer. But I can't get excited about this bank group because I just feel like wait a second. We have to find out who else is Huntington. Huntington's a good back here. They're not you know it's not a joke back. It's a really good oh how back. You want do you want to tell people what it was that Huntington said specifically that inquiry people. They're paying too much for deposits. That interest income actually not bad. They're really growing but it was interpreted entirely as negative. That the net interest income went from like -2+2 to -1 -4 because every one of these banks is leaver to that. And it's been something that's been very very stable. So you can see all the banks going down and you know and then you're supposed to buy at this point. There's a pretty good equity strategy piece by Wells Fargo. This is don't forget when we have the downshift you're supposed to be buying the drug stocks. They have not performed particularly well this week. Obviously the outliers as we said many times Merck and of course Lily shares a which are up over 51%. You mean the piece about Ricks? I did. Did you get me into the fact about Ricks? Then you realize it's going to win. What was it? No you tell me Eagle Scout. Oh and Eagle Scout. I said oh my god the enemy's supposed to be trembling. You never go against an Eagle Scout. Remember those kids who are Eagle Scouts? I do. But you want of them? Hey yeah as I drank slits they promoted me. You were not an Eagle Scout. No that is a slits trick. Just slits. Never that. If it's a little bit more lucky famous. I don't know. Ryan Gold. You go in your Eagle Scout. Joe and make a drinking old Milwaukee this morning on Morning Joe. Really? Yes and in light of Trump's reported comments about the city yesterday. There you go. We'll get Kramer's mad dash count down to the opening bell. We'll dive further into Adobe. Got some upgrades of both that name. Zscaler has bro shot in a minute. 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. I think there's been more questions around you know does AI replace these folks and I've always maintained. It's actually people who use AI who may replace people who don't use AI and there's no replacement for human ingenuity. All right that was not known to Ryan. Last night on Mad Money. This is Jim Kramer. The host of Mad Money. Yes and my colleagues. Clinic last night. What he's done is that he's blocked both the top and the bottom guys. The bottom guys with this alpha Canva. He's introduced Adobe Express. I suggest you try it. It's an unbelievable J&A-I thing. You can get the low end still get and still get free. J&A-I. You pay a little bit more in this remarkable so he's going to shut off Canva well-played. On the top you had a threat from Open AI Sora and he's got that blocked by this incredible digital cloud that requires as he just said look so you have a little creativity. Right now Sora is maybe a picture of a rodeo. Well with Adobe you have to be a little bit more let's say thoughtful. It's like I want to make a picture and you describe it and it comes off and I just think that what you know what Chantony said that was really important is there's still us to be human creativity aspect and this is what you've been saying over and over again. You can't disassociate humans. You can't make them so they're not important and what Chantony says is that if you really want great gender of AI it's the human factor that makes this great not the gen fact. And it's an important point not having to do specifically with Adobe but the jobs right now even right now in the training being afforded younger people and organizations are those who really know how to use AI to Chantony's point effectively. Exactly. You are a query engineer which is what you're talking about. Yes. Because that becomes very important how you phrase the query what you ask the AI to do for you. Yes absolutely. If you go Adobe Fresco you can say look I want a mug that and I heart New York mug. Right. It can draw it like maybe a second. I'm not kidding it's really great. But if you want to do something that requires some thought well you got to program the thought. You can't just like and you you have to fool around with all the different there's you know there's many different clouds. If you were to go get the sweet David which I recommend the $600 suite. Yep. You can literally make you could do NBA pro you could create NBA players. All right let's come back to the stock. So what does this mean the strong quarter. Okay let's try the JP Morgan which is sat out this whole longer term here. Please. I'm using the JP Morgan goes from a from hold to buy. Shout out the other performance saying listen it's really going to come back. They do have the low end solve. They were worried people worried people worry that we're going to lose the imprimon or universities where it's all used. And then the high end their base was saying listen go ahead try to be just all gen AI have no creativity and that's not what we're about. We're about really beautiful stuff. He's always been the gold center. Toby is so much better than everybody else but we forgot about it because we felt that gen AI would make it so why do we need this enterprise so far. And the answer is if you want to be really creative but your stuff to look great you have to use it though. All right. I thought it was a tour to force night for him. We'll talk more about the quarter as well as the stock price course. So when we get an opening bell which is about four minutes from now. Don't forget of course you can catch us anytime and anywhere by listening to him following these squawk on the street opening bell podcast. Apple and Microsoft as Jim said a moment ago neck and neck for the title of the most valuable company in the United States. Jim this has been quite an experience watching this horse race right right and I know in videos coming in from the far term but both these companies are that we saw this week that Apple may have something that we must upgrade to and how there are companies that want to give them the gen AI just to be able to have the implementer which is amazing. Microsoft very interesting that in this period but we know that you did it in another 15 days with the opening bell wrap up this eventful week at the big board it is the block legislative leaders network ahead of Juneteenth of course next Wednesday at the NASDAQ it's Tempest an AI and precision medicine company going public on the exchanges. Breath once again here Jim pretty read a lot of chatter about France. CAC gains for the year are basically gone. Yeah I think that there's a big worry about their bomb market I think that that's probably a false worry because we don't I don't think it's going to be a vast sweep by the right but David the vast sweep by the right is viewed as being these days a repudiation of financial markets. Remember when it used to be a referendum. Yes you would have a little information. Yes Macron is seen as being very favorable to the financial interest so to speak in France because he's a stable character. Well yeah extended the retirement age he did any number of other things that upset I think the broader population to some extent. This is an it's a point being Jim that your is that there is a worry that if in fact as you point out the right far right comes in that it actually will be destabilizing things for the budget which is already not looking great. The word the word frecks it making the rounds today. Oh no and I think that that means slower growth than you and you'd ever expect. We know that that's what it does. If you just want to look at it from the point of view of just money I mean obviously there's much more to it than that. But look I can't believe our markets are just in tune with them but I also know that it's just a couple of stocks that got us here and I don't dislike the market because those stocks are great and tech is great but and I don't need necessarily important but there are not to give me a reason to buy some of these other sectors and they're aren't it. I'm going to buy the rails with the traffic numbers down and the freight numbers down and buy the drug companies with the IRA saying listen we're going to negotiate with you. You can buy Willie because they've got an amazing drug but that's just one drug. You mentioned new core and this this warning on on the quarter basically it's volume and pricing here Jim that's at work. Right and just so people know you really have to go back pretty far to March 20 March of the of 2021 to get to a number that's as bad as that. Remember March of 2021 but it's not exactly a great time for the country. So this is this is the country right now. Listen I mean you can take a look I'm looking at a note from Wolf out the other day. Demand sentiment sour seasonality or something more ominous they write. They did their 11th quarterly Wolf state of steel survey and it featured the most cautious demand responses in the three year history. I know 3% of respondents expect lower year over year demand. Just 8% of buyers expected demand to rise. That's a bottle. Yeah. What is that guy? It's commercial construction. Yeah. Well country too. There's a lot of negative negativity in there and then you go right over to you know to our age. You want to see some negativity. Our age David that's a you used to be restoration hardware. I'm aware of them. Yeah I've been I've been a one. I've been the one down here. Beautiful story. Are you remembering them? Yeah. We're members. I think we bought a couch I think. So we had to be. You know you've come a member. But that couch everybody has? I don't know. Now okay I was on this ball and this man's a visionary. Guy's a visionary. I don't know if we had the New York Times piece earlier. Very visionary. But that does not necessarily include near-term numbers. He does say look it's the worst housing market in 30 years. He is not mature. He's been consistent. But you know what without an improvement I don't know how you get a turn. Because he didn't give you much. Yeah. Q2 sales guide looking three to four street was at seven. They did say that rates would probably impact housing through the second half and maybe in the next year here's what Friedman said. We remain confident that our continued investments towards transforming our product and expanding our platform will generate significant long-term value for our shareholders. Every active creation is first an active destruction. We worked hard to destroy the former version of ourselves and are in the process of unleashing what we believe is an exponentially more inspiring and disruptive R. H. Brand inclusive of the most prolific product transformation and platform expansion in the history of our industry. A lot of transformations going on. I know that David loves who a name both Picasso. I mean you don't hear Picasso quoted too often in a conference call. So right there you get an A. You get an A. You quote Picasso. No she's saying you get an A. Because this is still life situation. Even though stock gets a C or maybe a D. You get an A for quoting Picasso. Mr. Me Rembrandt. What he's what he's saying is basically we don't have the mojo. You're changing genres and changing. Stick with modern. Okay when you want to gone with Lejay you could have gone with the whip with Rembrandt. All right Yolitsky one of my personal papers. Now look the problem here is that he has spent a lot of my now you notice his voiceless was horse because he had just come from a major party in Madrid. Now you see when he works things like that into the quarter how many seat yoes. Hey my voice is like welcome under the weather. No hey my voice is a little scratchy I was at a huge ranger in Madrid. It's just it's an unusual call. Who else was in Madrid this week? Well Edgar Brofmann leads in Madrid. And then we're going to Madrid. We're taking the show to Madrid. I want to go to Madrid Bailey. That's Spanko Santanderas. I am going to be in the Madrid Airport tonight. So I'll say hi for you. Yeah sadly I'm not going to spend time travel clothes on I see. Well Jim is a good one. Tush. If our age is about the consumer we have upgrades of Hasbro. We got a top pick pins. Well we got another upgrade of shop second in a week. Okay so Hasbro this is actually an extension of what was on the Costco call where they finally said they see toys doing better. It's a B of A. Yeah I thought that was a very good call. That has supposed to be a lot of great things under this guy Chris Cox. He's doing a good job. And it's good to see you get a little recognition. But it's really one of the few stocks that's doing well. Yeah not too many. Although Adobe is still the SMP leader Jim. Yeah. JP Morgan did talk about what they call this trough of disillusionment on Firefly. They upgraded by. Yeah well that firefly is fabulous. I can't use so much stuff with it. If you want to know how angry this market is. Caterpillar gave you a really big boost to the dividend. And it buy back stock. It's doing really well. And the stock is just getting crushed. Caterpillar. You have liked Caterpillar for a long time. Very much so. And I'm not moving away from it. But that is a picture of the market along with Newport. This is the real market. JB Hunt. There's one that is a largest truck. You look at the charter JB Hunt you would say well when is this recession started. Well you're right you're talking about things that are showing an expectation of a significance or maybe of a slowdown. Yeah I mean they already been away. I just mentioned that steel survey. Union Pacific one of my absolute favorite stocks can't live to save its life. All these stocks are what I would call heavy. And I just think that when you get it you get a floor into course it's just been crushed. So maybe Home Depot comes back or not. Your data center related you're done for. Yes and that can't it just be AI AI AI. There's got to be more to it than AI. You have to have reasons to buy others. That's why I don't like the broadening apps. That's is basically well it's going to get bigger. We need a reason. If you were to go into retail and then you listen to Gary last get Freeman. I think you'd say wow I got a redo I got to recheck everything. I mean maybe TJX works. Matthew boss. Thank you. 50 basis points off the 10-year yield high. Isn't that enough? And that that's not enough of a reason. We got to get cuts. We have to this week was a week to week data. Well that's actually David Rosenberg's point today is that the market is calling the Feds Bluff. Yes they are. And that even after import prices that the docs were maybe obsolete before they were published. They got their call in the Feds Bluff. And I look I think that as long as here's a big if. Yeah. If Nvidia stays up. Yeah. And AI if you listen to Adobe call does well then I think we're okay but I just think at a certain point we're gonna end up buying Procter and Gamble again. We'll go back to Colgate or Kimberly Clark as you pointed out. Michael Shoe has re might reinvented that company. He has reinvented that company. And it's almost at its all time high. And it's got a good yield. That's what I'm reading something. He's listening and reading. I can do two things at once. I hear everything you're saying Michael Shoe the Hunter though. He does not even know if there's already he's already in the Madrid. He's thinking DSW. If he's like you know fits wear it. I heard you the whole thing. Yeah. Yeah. You're thinking Porsche on doesn't trade. All right. But Decker's does. Oh Decker's just well that could be another one that I'm worried about. Really. I'm just a little I'm I'm antsy. I'm antsy because we just I just need something else to buy other than a video. Well I'll give you a Broadcom because it's up another two percent. Oh it'd be my channel so it's Broadcom and video Apple and and Apple's like so I think what's been a great vacation with us. Adding Oh and it don't trade it David. Oh and it doesn't be it. Those are two. I know Apple and Nvidia own it don't trade it. Yes. Well he wants R.H. and Newcorro and it don't trade it. Okay fine. You want to talk about GameStop and Keith Gill because that's what I was. He is. He's mentioned it because you know what he's now the man. He has so much money. He's become the man. He was stick it to the man. 100 that way is the man. He had options on 120,000 call options. They were going to expire on June 21st. He seemed to have sold about 80,000 of them. But he actually essentially exercised some and went from 5 million shares of ownership to about 9 million shares. That's a huge position. That is a big position in GameStop. You can figure out the math there. It's got to break all those leases and move into another business. He is now the third largest shareholder after Vanguard Black. Oh never mind Ryan Cohen has seen. Ryan Cohen. Yeah but he's the second largest individual shareholder. You've got to hope that Ryan's got a game plan David. What do you think he's sending plus billion dollar market value. They've raised three billion in new equity. They already had a billion in cash. They've got about four billion in cash. They can break every single lease. They can write a check to Simon Proprize. Write a check to everybody. Get out of that stupid business. Reinvent themselves that something is worth more than 30 and I think they'll do that. It makes too much sense. Okay. There's your man David. A. Einstein. There it is. It's a week ago since we got that great performance. Genius. Just pure genius. What's Picasso say about it? Yeah, Picasso has a lot to say. Or as I refer to him Pablo. Pablo? Yeah, Pablo. Do you take spots and dots at our appreciation? I do not. I should not. That was a gut. Is it a Pablo? What are you guys? You tend to know Frank Stella. You know Frank Stella. I just think in Spain. Everything's Spain. Everything's just a great country man. It's a great country. Are you going to drop in on a boutique? I don't believe I will. What's the important banker in here? I know you've talked about that. I think she's amazing. I think that bank's incredible. I think you know her father fired her, Chapin Moria. Really? Yeah. Little international scene. I would have fired the father, kept kept the kid. Kids should stay in the picture. Jim, today with the dollar index testing 106. And with Hershey, one of the best performers, those are typically signals of a nervous market. Yeah, exactly. Although Coco is Pete. And I think that sucks a lot. But it's followed by Campbell's in general. Yeah. Look, we're at the wrong juncture. This is what when you first when you're in that period between when you're about to get the first rain cut and not now people tend to start. I've been doing this series on drug stocks whole week. They look for drugs and they look for foods. Campbell's did had an okay quarter. Hershey had an okay quarter. The food group is not filled with okay quarters. General Mills was not bad. I'm a smart reporter number and people like it for about a day. Hormel, which is the one that's the protein company, member Dave Ricks released. Do you see what Dave Ricks said about? Soldie Snacks? They want to do better. He gives a challenge. You name me in one more Eagle Scout. I'm not going there. David, what about the NBA? You know, have you been following the NBA? NBA. Yeah. How'd you get to that? Okay. Well, how about, I'm looking at, I am looking at. Could you ask? Our brothers discovery shares were down yesterday. Yeah. They're up a bit today. What do you think is going to wrap? Well, I think the Boston Celtics are going to win the championship. I don't know. I don't know. I'm on that one. You know, it's never been. Yeah. Never. So we can assume that. And then the question will be what happens in terms of the NBA contract that we talked a lot about, where I'm going, our parent company, Comcast, NBC Universal, expected to obviously will be officially announced, Disney clearly. And then that other package that's going to Amazon for streaming, Jim, I don't know. I think it's possible that Warner Brothers discovery will try to match that economically. With what? With money? With the money that Sherry Redstone doesn't have? Well, I don't know. I mean, they can come up with 1.8 or whatever the number is for 1.8. You're going to leave her up again. And then, but I don't know that they're going to get it. And then the question is, would there be litigation in some way between Warner Brothers discovery and the NBA? We'll see. David, your group that you've been covering, this Paramount, Warner? Yeah. Yeah. I mean, after a model, a day move. Our parent company, as well, there's part of that. It's the stock prices have been disastrous. Can you modify that a little to make it less? Sorry. Not good. Somewhat disastrous? Not good. You wanted to own Netflix, it's up 36% this year. Well, that's what you wanted to own. But there is a story today about Amazon starting to make inroads on advertising. And that's what we need. Amazon Netflix, I mean, what happened to 3, 6, and 10? Or two corners? There's also some pieces that the political cycles not giving media companies the revenue boost that they got in a 18 or 20, I'm sorry. I mean, this is the last go-around where the, I think, where the traditional broadcasters are going to really have these deals. When the NFL renews many years from now, NBA, obviously they're signing the NBA deals a long one, but can you imagine any, I mean, they're not going to be able to stop them. It's going to be all Amazon, Apple, Netflix, which is moving slowly but surely into live sports. Well, one of the reasons why these keep adding stock market value is that the number of industries that they can just take over. It's especially if you have a different president who's not really interested in antitrust, it's not trying to break them off. I mean, you look, you could run for president on this theory that these companies are too valuable. Too big, too powerful, too large. Yeah, you could do. It's hard when the consumer likes the service. They love them. It's not a political winner. No, I just think that these companies can keep rolling because there's no one who can touch them. And, well, we've talked about this many times and we've continued to. They now are in a position to drive the AI world because they have the balance sheets to be able to do it. They can buy the chips, which, of course, at this point, a place where you can play as a smaller player because you need enormous allocations of capital to build these games. But we have this conversation with the power of the cloud to do all this. We did it the other day with retail and inventory management. I mean, it's permeating every sector, Jim. I've never seen it. Well, no, I shouldn't say that. There were times when standard oil was dominant. But you weren't around that. No, no. Fortunately, but I do think that when you look at Adobe last night and you say to yourself, you know what? They can compete. That's what you would think. Broadcom. You know what? Yeah, they can compete because that's what you have to have. You have to have companies that can compete and they have to have such tight-to-watch ledge or such huge financial edge, which is hot tents. Financially, broadcom at an $800 billion market value. There's a lot of power. It's not exactly a small company, it's the largest in the world. I just think that you're running into this situation where you have companies that are just nation-states and they do whatever they want and buy whatever they want. If they wanted to buy the NBA, they can do it. Oh, yeah. They get a kind of division. They want to buy their own power companies for their debt. They're going to have to buy a natural gas company. That deals going to happen in the next few weeks. I'm going to buy a natural gas company. Con, canter, and Kramer. Oh, there you go. You're starting to have the caters incredibly nice kindness for the record. Yes, you can't figure out what he wants. He's incredibly nice. It depends on the day. What is that about? Ticketmaster. It's about fees. That's what it's about. I agree with him on that. Those fees are too high. I agree. You got people going to France to watch Taylor Swift and they're paying the same for the flight and everything else. Two reports on Taylor's effect on CPI in Sweden in the UK. That was amazing. I'm trying to get to that restaurant in Jersey. She went to the short down to the LBI. B chable. Lost me on that one. Is that the black something or anything? I got to get to that place. Got it. As we go to break, watch Bonds. As we said, we're watching 4-2 on the 10-year. It'll be busy today. You missh in a few minutes and then later on today, Ghoulsby, Lisa Cook as well. Stay with us. Time for Jim and stop trading. There is one bull market met cyber security in Z scale, which is a very good company to do zero trust. Symbol Zs is actually up. I only mention this because I'm not a big believer. Again, you can have a bull market with that big broadening, but you do need more sectors that are doing well. Cyber security, of course, is an oddity. It's only doing well because there's so many bad guys. We need to see some good news somewhere. And right now, Carl, we don't have you just posting an excellent piece on Twitter of commodities from Goldman. They're not free for it, but they're all in the wrong direction. And that means that's great for the Fed to make its change, but they have to do it sooner rather than later. You want to cut? I know. Yeah. The date of this week was really... Yeah. Yeah. This date has shocked me this week. I said, wow, it's happened ahead of what I thought. That's a bit of a turn, Jim. I mean, I don't think you think July's live, but... No, it's not. But the data was incredibly weak this week, surprisingly weak. That's one of the reasons why I think the models just went so well. And you can't really... I can't find a lot of stocks I like. So that's why I did the drug piece all week because I will like it as they come down. Those are very... And they don't have any GOP... That's one problem. It's like, the blue companies, which are just... That David Rick's piece was brilliant. But boy, did he ever say, look out. Your drug treasure hunt this week has been good all week long. Thank you. That's really great stock. So we've got one more lap. This is terrific. David Dizzy's not really flying after Nelson Pelstin gets the seeds to it. No, it's not. Is that just a cheap shot? Would you just mention? Completely. Thank you very much. Now I'm going to raise them. See you later. I'm on a side. Keep an eye on parks. Have a great time. Thank you. Thank you. I'll go in camping like I was in Eagle Scout. That's unbelievable. I hope you make it back. All right, be careful. We'll see you guys soon. Down's down to 27 on this Friday. Don't go anywhere. You've been listening to the opening bell on CNBC's Squawk on the street. All 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. 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