Closing Bell - Closing Bell Overtime: Fubo CEO on Streaming Shakeups; Former Cisco CEO On AI 01/06/25

Episode Date: January 6, 2025

It' an action-packed hour starting with market insights from Sameer Samana of Wells Fargo and Kristina Hooper of Invesco. Fubo shares soared on the back of announcing a combination with Hulu + Live TV; CEO David Gandler discusses the company’s new deal and what it means for streaming competition. Jason Furman, former CEA Chair, breaks down tariffs, the Trump economic agenda, and a rejected steel deal. Former Cisco CEO John Chambers weighs in on Sam Altman’s AI blog and the future of innovation. Plus, Oshkosh CEO John Pfeifer on the company's EV and robotics announcements.

That's the end of regulation. Eagle Point Credit Company ringing the closing bell at the New York Stock Exchange. Yushin Technology doing the honors at the Nasdaq. Nvidia potentially closing at a record and Bitcoin leaping back above 100K to start this week as tech takes the driver's seat. Well, that's the scorecard on Wall Street, but the action is just getting started. Welcome to Closing Bell Overtime. I'm Morgan Brennan with John Ford. We have got a big show coming your way in just a moment. The CEO of FuboTV joins us in a first on CNBC interview as that stock more than triples today on news of a deal with Disney to reshape the streaming live TV market. Plus, AI stocks

getting a bid as OpenAI's Sam Altman lays out a future where AI agents join the workforce and boost productivity. We're going to talk to former Cisco CEO turned venture capitalist John Chambers about the potential AI driven gains that are coming for investors. But first, let's break down today's market action with Samir Samana of Wells Fargo Investment Institute and Christina Hooper of Invesco. It's great to have you both here. Basically a mixed session to start this first full week of the new year. But Christina, I'm going to start with you because we did have the S&P finish up about half a percent here. The Nasdaq more than one percent. I know NVIDIA has been flirting with a record close

ahead of that CES keynote too. What are you watching in this new year, especially after such a strong 2024? Well, I'm watching to make sure that the factors that made 2024 successful are still in place. And we certainly have some of those factors. We have supportive central banks that are likely to continue easing. We certainly have the potential for improvement in earnings, because I think we will see a reacceleration in the economy. But we do have to worry about the risks. The risks to me are twofold. One is the potential for the economy to falter. We've seen some small cracks form, but those could worsen. I mean,

let's face it, monetary policy tightening was very aggressive. We never really did see a significant impact. Are we going to avoid it? Probably. But I think there is that small chance that it's just late to come and that we could see greater cracks form this year. The other issue, of course, is the potential for a resurgence in inflation and what that can do in terms of changing monetary policy, which is part of what has made this environment so supportive for risk assets. And certainly it's something to watch. Samir, as we have seen the 10-year Treasury yields flirting with key technical levels and highs of last year, want to get your thoughts on the setup here for 2025, especially after a failed Santa Claus rally. And I realize you can argue how much stock to put into that after the strong gains of last year,

but also given the fact that it really has been in many ways the US versus everything else, whether that's a trade that continues. Sure, so I would say at a high level, look, we do think there's more room to run. Our year-end target is 6,600 for the S&P, so that's about 11, 12% total return, especially given kind of today's modest session.

So I do think there are more gains. Now, that being said, with the 10-year having crept up here to kind of 4.5%, 4.6%, the gains from here probably come by a little bit more in a more difficult way, right? You're probably going to see a little bit more chop. Today showed you that, especially with rates up here, you're going to have very narrow leadership. You had small caps. A lot of the rate sensitives have a very difficult day. You had China down yet again, right? So for everybody hoping that there's going to be some additional source of stimulus from the Chinese, they're still kind of going at very slow. So I think you do lean into some of these trades that have been in place for some time because I think that's where the earnings growth is. Not such a tough day for NVIDIA,

though it does close 149.43, I believe, above that 148.88 level. That would have been a record level. So, Christina, that makes me wonder. NVIDIA was the big name last year, and mega caps really led things. Should investors be looking outside of those big domestic stocks for growth, for diversification in 2025, and then particularly internationally, how would you do that? So absolutely, they should be looking outside the mega caps because you want to diversify even just in valuation terms. And there are far more attractive valuations if you look in the small and mid cap space. I also think they're likely to benefit the most if we do see that economic reacceleration. They're more sensitive to the economy.

We could also see the same same come from cyclicals, which also, by the way, are lower valuations. Now, when you go outside the U.S., I think there's certainly a lot of potential there. And you just have to keep in mind that the economy doesn't have to look great for markets to look attractive. And so, for example, the U.K., to me, stock market looks very attractive right now. Valuations are low. Dividend yield is high. Buyback yield is high. That's an environment

where we could see some strong individual players, especially those with more global exposure, do very well. So I think it's about being actively managed to a certain extent outside the U.S. Be selective. There are a lot of opportunities. Samir, how are you thinking about bonds and fixed income in 2025, both in how they affect stocks, certainly smaller cap stocks, but then also to what degree do they belong in investor portfolios? Sort of what's the new rule of thumb for how those get treated? Yeah, I mean, look, I think with rates up here, you know, at multi-year, if not, you know, multi-decade highs, I think you've got to have full allocations to fix income. Now, that doesn't mean you need to get out over your skis with the respective duration. Right now, we're more neutral. We like kind of the middle part of the curve. We think you can pick up quite

a bit of the yield without that additional duration risk that the very long end, you know, poses. So, yeah, I think it's a great ballast if some of these things don't quite pan out the way people anticipate. But then I think it's also worth kind of noting that, look, with rates up here, it still makes the U.S. more attractive on a relative basis because of those rate differentials. We think the dollar has kind of an upward bias to it. So we think the U.S. continues to outperform emerging markets. Developed might be kind of in between the two. From a sector standpoint, what that means is you want to be what we've been calling anything but defensives, right? So communication services, energy, financials, industrials are the areas

that we like, and we're avoiding utilities and staples. Those face a lot of headwinds, both from commodity prices and higher interest rates. But I guess from our standpoint, there's a lot of compelling opportunities. You just have to be a little bit careful as to how much mean reversion you expect this year. I think this year, at least the first half could look a lot like last year. Okay. Samir Samana and Christina Hooper, thank you both for kicking off the hour with us. With the Dow finishing basically flat, down fractionally, but the S&P up half a percent, the Nasdaq up more than 1%. Let's bring in Mike Santoli now for a look at three key parts of the market that are trading at inflection points. Mike.

Yeah, outside of equities, Morgan, you have a lot of these threats of escaping a longstanding trading range or maybe having already done so. Here's the 10-year Treasury yield you're just alluding to. We're above 4.6%. It approximates where we got a few months ago here. Now, I don't think the absolute level is some kind of magic tripwire. If you remember back in late 2022, it was actually 4% felt like it was kryptonite for the equity market. That's where you finally got your bear market low. We got to 4 or 6, above 5% in the spring. And that was just associated with a fairly routine equity pullback. The issue is the cyclical parts of this market are acting as if they're having a hard time believing the economy and the housing market can withstand rates much higher than this, even though credit markets remain very strong.

This is a level where, on paper, it should attract some bond buyers. Real yields are very generous right now. Here's the dollar. Actually, the dollar index has broken out above this two-year range ceiling, although we did get much higher than that when the inflation was raging and the Fed was going to have to really ramp rates.

So keep an eye on that. We've curled lower. Maybe we'll get some relief on that front. Finally, oil. Very bearish positioning among hedge funds and others coming into this year, so nobody expecting it to do much. You see this nice little pop right here, but it puts it in perspective.

This is still kind of a downtrend and you're in there until you get up into the mid 70s. So, so far, nothing in absolute terms to worry about right here, even though there has been a pretty sharp lift along with natural gas. Morgan. So we've been having these conversations, Mike, about concerns and fears of the reigniting of inflation. We heard it from Governor Kugler on the show on Friday and some Fed speak in general in recent days about this on one end, on one side of the equation and on the other, the possibility of stronger economic growth as well. In terms of these charts that you just showed and technical levels, what are the key catalysts that could drive testing of those levels? Is it really those two buckets or is there a third dynamic or factor that could be at play as well?

Certainly, I think those are the two main ones. The growth differential between the U.S. and expected growth levels around the world is really what seems to be at work with the dollar. Policies here may be going to actually push in that direction. The moving yields in Treasury yields does not mostly seem to be a repricing of inflation expectations. Yes, inflation expectations, according to market-based measures, are up from where they were in September, but that doesn't seem to be the incremental driver higher. It's much more the real yield level, the term premium, whatever you want to call this kind of catch all factor that's in there that maybe is just demanding more compensation for holding government debt.

Or it's about thinking what we're at, a sort of generally higher nominal growth economy. So it's all those things mixed into what I would just say. I don't think oil, commodities, goods really have it, what it takes right now to drive another big burst higher in inflation. I think it's much more just being sticky at these levels that is supporting things like yields in the dollar. All right, Mike, thank you. We'll see you in just a bit. Well, Fubo having its best day ever,

surging 250% after announcing a combination with Disney's Hulu Plus live TV business, creating the second biggest internet pay TV company in North America behind only YouTube TV. Hulu's subscription service with its catalog of on-demand shows and originals is not part of the deal, but one big part of the agreement is that Fubo is dropping its lawsuit against Venue, the sports streamer planned by Disney, Fox, and Warner Brothers Discovery. Joining us now is David Gandler, Fubo co-founder and CEO. He's going to continue to lead the newly combined company. David, good to see you. John, thank you for having

me. Great to have you back. When we last spoke back in August, you were suing Disney and its partners over Venu, saying it was anti-competitive, deprived consumers of choice. Now under this deal, Disney's beefing up Fubo, becoming a majority owner in the company you'll be running. So how does this fix those issues? Well I think the combined company first of all will have about 6.2 million customers and as you said it will be the second largest virtual MVPD in the space. And for me, that's an important moment because it significantly intensifies the competition in the space. And we'll be able to negotiate deals together, get better pricing,

more packaging flexibility, and that ultimately helps consumers. And, you know, as part of our deal, we've amended our carriage agreements, which allow us to launch skinnier bundles to attract customers that are more price sensitive and looking for greater value. And what will the capital being injected into this venture do for you? So, as you know, we've gone from being an upstart, should this deal go through. As part of the signing, we've had a cash injection of about $220 million and a term loan of $145 million. So that gives us significant capital to continue to march towards our growth plan. And I think together, we'll be able to really focus on three areas. One is sort of the content cost,

advertising optimization, there's marketing efficiencies, and we'll look to leverage Disney's resources and support to help us grow our business and compete vigorously in space. David, it's Morgan. It's great to have you on on the heels of this news. As we just mentioned, as John just mentioned, your stock finishing up 250 percent. It just surged. Investors are certainly wrapping their arms around this and seem to be very excited. But I am curious, if we take a step back, how did this deal actually come together? I get this question a lot. Look, as I've always said, our goal has always been to provide value for all of the stakeholders in our industry. And we've said that that was for shareholders, for our media partners,

and obviously for our customers. And, you know, we initiated, I personally initiated, I thought it was a good idea. And, you know, I think that, you know, we initiated, I personally initiated, I thought it was a good idea. And, you know, I think that, you know, given where Hulu Live is and, you know, what Disney was doing with it, I think it made a lot of sense. And, you know, the key, I think, for the industry right now is to look for ways to continue to monetize programming. And I think this is, again, it's an important deal. It certainly changes the landscape. It's more competitive. And I think this is, again, it's an important deal. It's certainly changing the landscape. It's more competitive. And the big winner today, I think, is the consumer. How does it speak to how quickly the media landscape is changing and evolving here right now, especially as you start to see things like, I mean, we're even experiencing it, Comcast,

our mother, you know, our parent company with Spinco. You're seeing it with other deals happening among more traditional media companies as well. But even just tonight, you have Netflix broadcasting its first WWE Raw episode as well. So how does it speak to what we're seeing in terms of cord cutting, in terms of cord nevers, and in terms of this tv 2.0 i'll call it landscape yeah look i think you're right i mean it's it's a very complicated space uh the dynamics are quickly changing um everyone's looking to try and reposition themselves for success to be able to attract more customers we've been very focused on super aggregation it's a it's an area that i've talked about several times now over the last year.

You know, we want to be able to provide consumers with different price point video services along the demand curve. And we want to provide them that flexibility. And I think everyone, including Netflix, is looking for ways to ensure that they remain at the top. You know, as it relates to Disney and our relationship, I think that, you know, what we're able to do right now is to offer two very distinct brands. One is Hulu, which will provide a more fulsome entertainment cable replacement service, which obviously has sports, news and entertainment. to double down on its sports offering. And now with these amended carriage agreements, we'll also be able to afford consumers, you know, skinnier sports bundles. So we're very excited about this.

I think you'll continue to see significant competition, but what you learned today and what we were able to secure today, I think is really important as it relates to consumer choice, affordability, and value. David Gandler, FUBU CEO, thanks for joining us. Thank you so much for having me. Well, we have some breaking news on Ulta Beauty, and Courtney Reagan has the details.

Hey, Courtney. Hi, Morgan. So Ulta Beauty announcing a CEO transition effective right now, right here today. So Ulta CEO Dave Kimball is effectively stepping down from his position today. We'll stay on with the company through the end of June. The current COO and president, Keisha Steelman, will take over as CEO of Ulta Beauty Effective today. She has been with the company since 2014, held a variety of roles. So very familiar, of course, with how the company is going.

And another thing that we should note is within this same release, the company is giving a fourth quarter update. The fourth quarter full results won't be out until March, but they are saying that they are increasing the fourth quarter outlook because of the better than expected performance during the holiday season. Comparable sales increasing modestly. That's the expectation now. Operating margin to be above the high end of the company's previous expected range of 11.6 to 12.4 percent. So shares here of Ulta Beauty are jumping about three percent on perhaps both the update and maybe also the announcement of the new CEO, the current COO. Again, Keisha Steelman is stepping in. Morgan. All right. Courtney Regan, thank you. I think it's all those tween girls like my eight-year-old asking for skincare on

their Christmas list quote unquote a pathetic and Craven cave to special interests that's what former Council of Economic Advisors chair Jason Furman is calling President Biden's move to block Nippon Steel's takeover of U.S Steel he's going to explain why plus our tariff risks easing we will talk about a new report saying President elect Trump's universal tariff plan could be scaled back and what that means for investors. And more deal news just crossing. Medical device maker Stryker making it official, saying it's acquiring Inari Medical for $80 per share in cash. You can see shares of both companies up right now. Overtime is back in two. We've got breaking news on Meta. Julia Borsten has details. Julia. Mark Zuckerberg announcing three new appointees to Meta's board of directors.

Dana White, president and CEO of UFC. Zuckerberg saying he's admired him as an entrepreneur and brand builder. John Elkin, the CEO of Exor and the chairman of two of his portfolio companies, Stellantis and Ferrari, noting that he brings an international perspective to Meta's board. And also Charlie Songhurst, a tech investor who previously led strategy teams at Microsoft and joined the Meta Advisory Group later, excuse me, last year to advise on AI and technology roadmaps, now officially joining the board. Zuckerberg saying that 2025 will be a big year for Meta and he's excited to have these new board members. John? I would expect he would plan for it to be a big year, Julia. Thank you.

Well, investor uncertainty about Donald Trump's proposed universal tariffs might be easing a bit today after a new report from the Washington Post said the tariffs would be universal in that they would be applied to every country, but they may only focus on certain sectors critical to national economic security. But President-elect Trump shot down the report in a truth social post, saying the story incorrectly states that my tariff policy will be pared back. It's just another example of fake news. Well, joining us now is Jason Furman. He is the former chair of the Council of Economic Advisers. Jason, how are you factoring the effect

of tariffs into your outlook for the U.S. economy this year when we don't know to what extent there might be tariffs where they might hit? Look, if Donald Trump is right, he has a set of tariffs that would be awful. If The Washington Post is right, he'd have a set of tariffs that were merely bad. Either way, this just isn't what we want to see at this point in the economy. But how much does it matter to how the economy actually does in 2025? People disagree about the extent to which tariffs, depending on the goods, depending on where they're, the extent to which they're made domestically, would actually affect the economy. Can you sort of lay out how you're thinking about where they might hit that would be particularly

bad and where it might matter less? Yeah. So first of all, there's inflation. That's gotten a lot of attention, but it's probably not a huge impact on inflation. But even a few tenths on the inflation rate could be the difference between the Fed being able to cut rates and it having to hold off or even partially reverse. The bigger issue is that with tariffs you get less imports and you get a stronger dollar and so as a result you get less exports. That's bad both for consumers and jobs. And finally, according to the Washington Post report, even these limited tariffs would include

tariffs on things like steel. That would actually hurt manufacturing because we have many more workers that work in industries that use steel. It'll make those industries like the auto industry less competitive, have a harder time globally. And so it wouldn't help manufacturing. It would actually hurt. I'm glad you brought up steel because we do already have tariffs on steel and quite a few different aspects of steel and steel products in this country. And one of the things it's actually done over the past however many years has reignited a domestic steel industry and has actually raised the prices of domestic steel and some of those steel products higher than other parts of the world, which in turn helped spur Nippon Steel's takeover of or attempted takeover, I should say, of U.S. Steel. So I was surprised to see your comments. You were very blunt on X

last week about the fact that that deal was being dashed by President Biden and wanted to get your take on why his move was the wrong one. Yeah, look, U.S. steel is just not a competitive, highly viable enterprise right now. They got this enormous gift of a large investment from a foreign company that was committed to continue to make steel in the United States. That would be good for our economy. It would be good for our national security. Japan's a really important partner. But most importantly, we have rule of law in this country. And the law says that you have a narrow set of national security considerations. CFIUS, which assesses these things on behalf of the president, did not seem to think this was a national security risk. And so to me, this really looked like an

abuse of the law, a very arbitrary thing. When other countries do stuff like this, we object. We shouldn't be doing it ourselves. Yeah. And it speaks to geopolitical dynamics, too, since Japan is a key strategic ally of the U.S. and is one of the top investors in businesses here in the U.S. So how does this speak to how you're thinking about the U.S. economy in 2025 and beyond, where fiscal policy is concerned, where monetary policy is concerned, given this geopolitical backdrop?

Yeah, look, I mean, the president has a long list of things that he wants to do that would raise the budget deficit. Extending tax cuts is trillions of dollars, lots of new tax cuts. On the other side of the ledger, he has tariffs, which are a harmful way to raise revenue. And then he has this commission, which I'm skeptical will generate real budget savings. The backdrop against this is the 10-year Treasury is above 4.5%. It's risen since the Fed started its cutting cycle. It's rising, you know, not because of what the Fed is doing, but because of what investors think about the budget deficit, about inflation. And at some point, I think the Trump administration is going to need to pay attention to that and figure out how to error correct on these big deficit plans. Jason Furman, thank you for joining us.

Thanks for having me. Speaking of the blocked deal, U.S. Steel and Nippon Steel filed separate lawsuits against the Biden administration, Cleveland Cliffs, and the United Steelworkers, accusing them of interfering,

interference in the deal. Cleveland Cliffs hit back at the lawsuit in a statement earlier today, saying in part, quote, today's lawsuits against the U.S. government, the U.S.W. and Cleveland Cliffs represent a shameless effort to scapegoat others for U.S. Steels and Nippon Steels self-inflicted disaster. Now that it is clear that they have miserably failed, the very shareholders they always say they work for, they are lashing out with petulance as

a result. The United Steelworkers telling CNBC, quote, by blocking Nippon Steel's attempt to acquire U.S. steel, the Biden administration protected vital U.S. interests, safeguarded our national security, and helped preserve a domestic steel industry that underpins our country's critical supply chains. We are reviewing the complaint and will vigorously defend against these baseless allegations. So, John, this story continues to unfold in real time, and we are not anywhere near the end. We'll see what happens in court. Well, are massive corporate AI investments about to pay off? OpenAI's Sam Altman says 2025 could be the year that artificial intelligence agents join the workforce. We'll talk to former Cisco CEO and venture capitalist

John Chambers about where the biggest opportunities lie. We'll be right back. Welcome back. OpenAI CEO Sam Altman making some headlines this weekend with a blog, hinting that massive corporate investment in artificial intelligence could be about to pay off. One of the key takeaways, Altman says 2025 could be the year AI agents join the workforce and, quote, materially change the output of companies. Joining us now is John Chambers, founder and CEO of JC2 Ventures and CEO of Cisco for 20 years. John, it's great to have you back on the show.

I'm going to start right there with you because there were quite a few comments, including those that we just cited from Altman that got my attention. The fact that he talked about the fact that the company knows how to build AGI as they have traditionally understood it got my attention too. So after such a strong 2024 from an investor standpoint and expectation and investment into AI, what does 2025 bring from your vantage point? Well, Morgan, it's a pleasure to be with you again and 11 years of watching you on CNBC and John, 15 years of working together on it. When I look at the marketplace, I'm good on market transitions. This is a movie I've seen before. You saw it with the internet, which ushered in a decade of the best productivity we've had in my lifetime from 1990 to 2000. I think what Sam is alluding to, and by the way, I agree with it, this is when you begin to see the results of AI.

I personally think that AI will drive productivity of a well-run company, 7% to 10% a year on productivity increases. You all know what that means in terms of earnings. AI will move from something that we kind of read about and we play with to affecting most of us in our daily jobs and our lives by the end of the year. In short, it's going to go mainstream in terms of the direction. I believe it will drive the stock market for this year and kindly for the next decade. And I think he's already thinking what comes afterwards. So I'm in agreement with his principle. And I think you've also seen AI have a huge implications with the U.S. being well positioned, where half of the world's compute power and data centers for this next generation are in the U.S., excluding China.

So I think we're very well positioned as a nation on innovation. I think it's going to affect each one of our lives. I'm the optimist here. When you do talk about what comes afterwards, the fact that you just cited the 1990s, does this feel like a similar cycle to you to the 1990s and the advent of the internet, or is it something different? How much can we hearken from that time period to understand what the next stages and next phases will be? Morgan, perfect setup question. It is very similar to the 1990s, except it's going to move at a dramatically different speed. My view is five times the speed

and three times the output or the economic benefit from it. So having been on stage with the president of the U.S. in the 1990s talking about the role the Internet would have in our economy and having watched it built that decade of productivity. I think it's very similar to what we see today. You see a president that's focused on how the economy is going to be driven by technology. How do you get efficiencies into the system? You now see CEOs when they go to Davos here very shortly, they're going to be focused on how do they take AI and bring it to economic outputs and results. And I think those companies that move rapidly here are going to break away. Those that do not will get disrupted and left behind. That will be true of startups, but also very large companies. So I think it's a very similar playbook,

just at a faster speed and much higher, much more positive outcomes than even what we saw with the internet. Productivity, think what it would mean, 5% to 7% a year in terms of productivity growth for a company's earnings. Go ahead, John, I apologize. No, no, fine. Shifting a bit, I know you're a lot more focused on these use cases for AI versus, say, quantum computing. Every few years, certain companies that have invested in quantum research try to make the argument that this time commercial uses for quantum are right around the corner. You're very well versed in security as a business where quantum threatens to break encryption. How would you know when it really is starting to be quantum's time and when that would be

something you're more interested in investing in? All right. Well, let me break it into two questions if I could, John. First of all, quantum will be a major force in the future. As you articulated very well, normally people get excited about it, then lose interest, get excited, lose interest. And about the time they give up on it, it comes back. And you've seen that in some of the quantum stocks. Where you hit that is actually my sweet spot is I have eight major startups in security at the present time. That field, I think, has positioned itself to grow very rapidly this next year.

People have not been investing in it as much. My average security company is growing to 40% year over year. And using AI to move as an example, John, to the questions earlier. One of them, if I were to use an example your viewers would get, would be a safe securities where they develop their products in a month now and then take it to market and became the leader in risk management measurements and implementation. They've grown their business two years in a row at 100% growth. And you talk about productivity, they've increased their headcount by 0%.

Now, quantum will be one of the ways that will put pressure on, if you will, security. But also AI will be one of the ways we deal with these technologies and address it. So I'm optimistic about quantum, but I'm much more interested in the short term in terms of security. And I think we've dramatically underinvested as a country on this category. And that's where I'm putting a fair amount of bets. All my bets are AI and cybersecurity. All right. We will watch that as well. John Chambers, thank you. Good to see you. John, it's a pleasure again. Morgan, thank you all.

Well, now it's time for a CNBC News update with Seema Modi. Seema. John, the U.S. cyber watchdog announcing today it found no indication that other federal agencies were affected in a breach at the U.S. Treasury. The Treasury Department reported late last month Chinese hackers breached a highly sensitive office that handles economic sanctions against countries. A federal judge today finding that Rudy Giuliani in contempt of court for delays in turning over assets to comply with $148 million defamation case against him

by two Georgia election workers. Giuliani testified today that he sometimes didn't turn over everything because requests were either too broad or a trap set by plaintiff's lawyers. And McDonald's is the latest company to roll back its diversity practices, joining companies including Walmart and John Deere. The fast food chain said today that while its ending goals to achieve diversity within its senior leadership and for its suppliers, it remains committed to diversity and believes it keeps the company competitive. John and Morgan.

Seema, thank you. While Nvidia closing at a record and Bitcoin surging to start the week, but could there be signs of a double bubble forming in those assets? We're going to look at what history has to say next. Welcome back to Overtime. Nvidia notched a record close today. Bitcoin hit December highs. So what are these moves?

Tell us about the current risk appetite. Let's ask Mike Santoli. Mike? Yeah, John, well, for a certain type of asset with, you know, kind of open-ended potential growth and maybe a world-changing kind of future embedded in it, it looks like risk appetite's pretty high. I tracked this for a while. This goes back a year and a half to the middle of 2023. Nvidia and Bitcoin moving very much in sync.

Then they diverged. This was after the Bitcoin ETFs were introduced. It was consolidating those gains and then was held in check right up until before the U.S. election. Caught up to Nvidia. Now they're back in sync again. Of course, it doesn't mean that they're always going to stay this way, but they feed off, I think, of a very similar stream of investor energy, I guess,

is the way I would put it, where it's a little bit less valuation sensitive and more about let me just buy a piece of the future. Now, take a look at a longer term view comparing those two assets, along with very, very widely acknowledged sort of bubble prices of past eras. This would be NVIDIA over the last few years, Bitcoin, of course, Cisco, which peaked in 2000. These are lined up to their peaks and RCA, Radio Corporation of America, in the 1920s. You see a lot of synchronicity. This is from Uri and Timmer over at Fidelity. Not really saying that NVIDIA and Bitcoin are similarly vulnerable bubbles,

because especially with NVIDIA, the earnings have grown just stupendously, especially even relative to what Cisco did in the 90s. Cisco earnings were only up like 4x over the second half of the 90s. And the stock was up many multiples of that. You also see starting to diverge to the upside. But keep in mind that there's certain rhythms to these parabolic moves. And if they don't cool off for a while, they do become a little bit more fragile as hot money keeps piling on top of each other, Morgan. All right. We'll continue to watch it.

Mike Santoli, thank you. The Consumer Electronics Show kicking off this week. Up next, speaking of NVIDIA, we will tell you about the big consumer tech trends and companies that you need to keep an eye on right now. Welcome back to Overtime. As we kick off 2025, two ideas dominate consumer technology, that the surge of interest in artificial intelligence will boost sales of a new generation of phones and PCs, and that it'll improve the way we navigate the world in smarter cars and smarter glasses. Well, we're dubbing this Consumer Tech Week on Overtime to help you cut through the noise. The big name launching at CES

is NVIDIA CEO Jensen Huang in the keynote tonight, but Huang's most strategic consumer tech moves for 2025 might not get the focus there. Tech industry insiders are watching for NVIDIA to make a more aggressive move in PC chips, positioning its graphics processors as a more important player in PC computing the way NVIDIA has in data centers. Now, if Jensen does that, it'll have more significant ripple effects than the niche super powerful graphics card expected to grab headlines tonight. Now, at the same time, Qualcomm is pressing its AI PC strategy, announcing lower cost Snapdragon X chips for co-pilot plus PCs in Vegas.

Qualcomm is also the platform provider behind Meta's Ray-Ban augmented reality glasses, which have gained buzz in tech circles over the last year, if not mainstream popularity. So can AI-powered glasses break out? There are plenty of competitors, including Solo's ErgoVision and now Haliday Glasses, trying to make the case,

but take it with a grain of salt. Then there's Apple, the king of the hill in consumer tech. The two big questions there, can Apple intelligence AI software fuel demand for new iPhones as AI and Apple intelligence matures in 2025? And will the company lower the price of entry for its Vision headset? Potentially trillions of market cap at stake there. Now, tomorrow on Overtime, don't miss a First on CNBC interview with the CEO of SiriusXM, Jennifer Witts, who's going to join us from the CES show floor.

Morgan. Yeah, one of the original communications companies with space-based infrastructure. Up next, the CEO of specialty trucks and military vehicle maker, Oshkosh, on how he is using EVs and AI to introduce new offerings, including this self-driving garbage collecting robot that you see on your screen. The company just unveiled that today. You can join us on the other side of this break. Welcome back. Take a look at shares of Kratos Defense and Security Solutions. The aerospace and defense stock popping after the maker of drones and missile propulsion, among other things, winning a five-year contract worth up to nearly $1.5 billion from the Defense Department

to help advance the nation's hypersonic technology. Think hypersonic test beds to test all of this technology. That's the largest contract in the company's history. Kratos trading at a record high today, finishing the day up 7.5%. Up next, more on the defense industry and beyond when we talk to the CEO of high-tech vehicle maker Oshkosh about its new AI, robotics, and EV products. We'll be right back.

Welcome back. High-tech vehicle maker Oshkosh making its debut at CES this year and just making a number of announcements, too, including this autonomous garbage and recycling robot, along with electric and autonomous work vehicles and an AI collision avoidance system. So joining us now in a first on CNBC interview is Oshkosh CEO and President John Pfeiffer. John, it's great to have you back on the show. I am very curious how a company such as yours that's known for making all of these big heavy machines, for example, fire trucks and armored vehicles on battlefields,

why you're now at CES and unveiling all of this capability there. Yeah, well, first of all, Morgan, thanks for having me on. We're really excited about being here at CES. The first time we've been here, biggest thanks for having me on. We're really excited about being here at CES. The first time we've been here, biggest technology show in the world. We are an industrial technology company. So we lead with pretty advanced technology in every end market that we serve. And we serve everyday heroes who do really tough work. And we thought it was about time that we'd come and show off what we're doing with autonomous vehicles, moments of autonomy, artificial intelligence, electrification, and not the

least of which is digital connectivity. So we're going to show here as a result of all the investment we continue to make and will continue to make, what does the neighborhood of the future look like as a result? What does the airport of the future look like as a result? What does the airport of the future look like as a result? And what does the job site of the future look like as a result? So we've got some exciting things to show here. So how quickly do we start to see these of the futures actually transpire, whether it is on the autonomy front or the electrification front or the connected front? And I ask that knowing that we have port workers who are pushing back on automation on the east and Gulf Coast ports

right now as risks of a strike have been looming. Well, first of all, in our booth, you will see both brand new products that are on the market today and you will see futuristic products. You showed a little video of our autonomous refuse and recycling collection robot. That's a little bit more futuristic. You'll see it in the market in the future, but we're showcasing what's possible, this on-demand type system, in the future going forward. But we'll also have brand new current products as well,

such as our fully electric municipal fire truck. We'll show you IOP systems that do connectivity at the gate of an airport. We do all the ground surface equipment at an airport, and there's a lot of complexity to getting an airport in and out of a gate consistently thousands of times a day. And our IOP system helps to take all that and make it much more productive and much more efficient for an airline. And that matters to you and I because we all fly. Nobody likes delays. So that's another important thing that we're doing. That's an actual product on the market today that's just starting to gain traction. So we've got both in the booth. John, speaking of operations, one of the interesting industrial uses of sensors and AI that I'm hearing about from companies like Samsara is efficiency.

The idea that a lot of heavy equipment sits idle and your customers might do well to rent it out. Do you need to adjust your business model if that becomes a reality, if fewer customers perhaps need to buy new equipment, and it's more an understanding how the equipment is being used and who else might use it when your customers aren't. That's why I think our digital connected solutions are so important, John. We're connecting job sites like nobody's ever done before. So job site is, you think of a construction site or a manufacturing site. We've got a lot of equipment on these job sites. We're able to do connectivity for the entire job site, not just our equipment. I'm talking about people, materials, equipment, to make sure when a piece of equipment needs

to be used, it's very productive and efficient. The materials are there. The people are there when it needs to be used. Those types of systems are what's going to drive productivity in the future. That's a little bit of how our business model is continuing to change and we're applying technology to help it change and to help our customers be more productive with equipment. I think that's a really good point. Do you need to adjust the use of APIs so that you

actually have the appropriate amount of software voice in the situation? Well, we do that. We'll do that over time as the product continues to develop and evolve. I don't think it's going to be a light switch where all of a sudden we go from one business model to the next. I think it's going to continue to be gradual and our engineers continue to develop it and apply it where it makes sense for our customers and it solves problems, solves friction points for them and how they operate. All right. John Pfeiffer, CEO of Oshkosh. Thank you. It's interesting. CES has a lot of different companies. Not all consumer focused, but all kind of taking their lead from the consumer revolution.

Yeah, in some ways, this kind of reminds me of Deere, which goes to CES and makes its announcements, including around its Starlink-enabled connectivity of its heavy machines, too. So you're seeing more and more of this industrial tech piece play out in real time. Yeah, I remember talking to Deere on the CES floor. Interesting stuff. Yeah, NVIDIA tonight. We start to get jobs data tomorrow.

That does it for us here at Overtime. Fast Money starts now.