Closing Bell - Closing Bell Overtime: Musk vs. Trump; CEOs of MongoDB, Rubrik 6/5/25

Episode Date: June 5, 2025

President Trump and Elon Musk’s bromance is over. The two sent scathing attacks from their respective social media sites against each other—and Tesla shares tanked. We have you covered with reporting from our Eamon Javers, plus analysis from shareholder Brenda Vingiello, WSJ’s Tesla reporter Tim Higgins and analyst Craig Irwin from Roth Capital. Earnings from Lululemon and Broadcom. Plus, interviews with the CEOs of MongoDB and Rubrik as investors continue to look for clues on tariffs impact. 

That's the end of regulation circle ringing the New York Stock Exchange closing a bell from their headquarters And yes, they did ring the opening bell as well NASDAQ global retail executive forum doing the honors at the NASDAQ will stocks closing in the red But off the lows it was another seesaw day Tesla the big name in focus today after having its worst day since March This after Elon Musk's public spat with the president that continues to unfold will have more on that ahead PVH falling as it cuts full your EPS guidance largely due to tariff related pressures those shares down 18% on the flip side though Five below jumping on an earnings beat and raising full your guidance plus MongoDB jumping after reporting better than expected earnings and raising its 2026 outlook will be speaking with the CEO straight ahead.

That is a scorecard on Wall Street, but welcome to Closing Bell Overtime, where winners stay late. I'm John Fort along with Morgan Brennan. We got a big lineup of earnings this afternoon. Broadcom, a trillion dollar market cap company, still reporting moments from now. We'll also hear from Lulu Lemon, DocuSign, and Rubrik.

After those results, but before the company's conference call, we will talk to Rubrik's CEO and founder Bipple Sinha. But let's begin today with that escalating war of words between President Trump and Elon Musk. Our Aiman Javars is at the White House with the latest. Aiman. John, I don't even know where to begin with this, right? I mean, this has been an afternoon like no other at the White House, a battle of the words between two billionaires with enormous egos with enormous amounts of money at stake with enormous political influence at stake the president responding to Elon Musk's criticism of his big spending bill Elon

Musk had called it a disaster and said has been urging people to kill the bill that the president views as his signature legislation for this year the president responding uh... to elon musk uh... after elon musk uh... was live tweeting the president's overall possession with the german chancellor earlier today here's what the president said in his response he said elon was wearing thin i asked him to leave i took away his e v mandate

that forced everyone to buy electric cars that nobody else wanted, that he knew for months I was going to do, and he just went crazy. The other thing the president says here, and this one has an implication for Tesla stock and maybe for SpaceX as well, the easiest way to save money in our budget, billions and billions of dollars, is to terminate Elon's governmental subsidies and contracts. I was always surprised that Biden didn't do it. And then Elon Musk also this afternoon tweeting out some frustration politically saying, without me Trump would have lost the election, Dems would control the House and Republicans would be 51-49 in the Senate.

And then this from Elon Musk, which gives you the sense that this battle is really a battle for control of the soul of the Republican Party for the next generation. Elon Musk saying, oh, and some food for thought as they ponder this question. Trump has 3.5 years left as president, but I will be around for 40 plus years. So Musk there implying, guys, that he's going to be an active figure in American politics with his massive amounts of money, with his massive platform, with his oversized personality for another 40 years and Trump is effectively a lame duck. That to me indicates that this is a person in Elon Musk who is thinking about leading

this Republican Party maybe not as presidential candidate in 2028 but certainly as a potential kingmaker with his vast amounts of money. And he sees now Donald Trump as in the way of those ambitions that he has politically for the country. And that is a fascinating and high stakes thing this afternoon, guys. Aiman, and on the threat to government contracts, specifically SpaceX, Elon Musk replying, go ahead and make my day on X.

I guess the implication I wonder most about here is now that Musk and Trump's relationship has deteriorated, you've got some voices in the GOP raising questions about Palantir's work with data on US citizens, is there potential fracture within the GOP on the Trump agenda and with money flowing both from Elon and from pro-Trump forces, does that complicate one-party dominance before the midterms? I think it does.

I think it does create a problem. You see Elon Musk now tweeting against Speaker Mike Johnson, right? And Mike Johnson now forced to respond, saying he's been consistent for years on his view on big debt, big government debt, right? So with Elon able to sort of turn on the funding spigot in a way that maybe no other figure in American history has ever been able to do, that makes him an absolutely formidable figure in this era of unlimited political spending. has ever been able to do. That makes him an absolutely formidable figure in this era of unlimited political spending.

It used to be, back when I first started covering politics, that there were caps on how much you could donate in politics. Those caps have been completely eliminated, and now a single billionaire with nearly unlimited money can spend nearly unlimited money in a presidential campaign. And that changes the dynamic entirely and makes it to some extent the political parties both sort of vulnerable to, you know, hostile or non-hostile takeover by a billionaire. We saw Donald Trump take over the Republican Party and remake it in his image starting

in 2015. And now the question is whether we're going to see Elon Musk take over the Republican Party and remake it in his image here in 2025 and going forward into 2028. I think that's what's at stake here. Fascinating. We're going to see the president here at a 4 p.m. event on camera here at the White House where he is going to be potentially taking questions from the press on camera. So we'll see if he has anything else to say about this. But it doesn't feel like this spat is over, certainly for today and certainly maybe not for this political season It does certainly seem that way. I mean Javers. We're keeping you busy and if we get headlines from there We will bring you back with all of the latest. Thank you. I'm in Javers from the White House

Let's get reaction to this war of words between President Trump and Elon Musk Sandhill global advisors chief investment officer Brenda officer, Brenda Vangelo, she is a Tesla shareholder. Tim Higgins from the Wall Street Journal and a CNBC contributor. He wrote a book about Musk and Tesla called Power Play as well. Brenda, I'm gonna start with you because we saw shares of Tesla plunge today

and it wasn't just shares of Tesla, it was ETFs tied to Tesla, it was also things like the DXYZ, which is the Destiny Tech 100 ETF, whose largest holding, top holding 50% of it is SpaceX as well. Just the fact that we're seeing

this shakeout in the markets, if you will, what does it tell us about this very public spat and the politics of politics as it relates to the flow of money? Well, I think it's, you know, certainly Tesla has always been a pretty volatile stock. So this is a next level in terms of, you know, Musk's involvement with the current administration and this falling out, which clearly is very public. You have two parties with very unconventional communication styles here that are also coming into play.

But I don't think we think about, how does this affect Tesla, the company? Well, I think we've certainly seen some impact from Musk's involvement in terms of buyer perception of the brand Tesla, which is somewhat concerning. But when we take a very big picture view of the growth drivers that still exist at Tesla,

we are sticking with it when we look at what's coming down the pipeline in terms of the robo taxi, the next generation lower cost vehicles. the robo taxi, the next generation lower cost vehicles. And, you know, so there's a lot there outside of just the Tesla EV market to work with. So we do think that it's worth sticking with it. But know that this is a long term holding for us, but is incredibly volatile company and stock. But I do think that some recent shareholders have been ringing the alarm bell really asking for Musk to refocus on the company, or to put through a succession plan for CEO,

which I think is completely relevant thing to ask for and that the board should be considering. Yeah. I should note that DJT, Trump Media and Technology Group also sold off today Closing down 8% in the regular session. So just a lot of de-risking around anything it would seem tied to This dynamic we also have Craig Irwin of Roth capital with us too and Craig. I'm gonna go to you Because Brenda just raised some key points succession at Tesla and what that talent pipeline looks like and also more attention focused on the companies of Elon Musk by Elon Musk. Does this get him there? You know I've been saying for

years put Elon in one of his rockets send him to Mars he's still the most important guy at Tesla right so CEO succession is important the board has fiduciary around that, but how do you fill those shoes? I don't think you can. Today, we have two very important men for America putting distance between each other. But I think if we step back and pay attention to the key details here, the interests are still aligned. Trump has to govern and Elon Musk has to operate Tesla and his other investments. And the two of them are kind of retrenching to their core obligations to their constituents. So I think the shareholders get a win at Tesla today.

The stock's not saying that, but the attention that Elon's going to have on Tesla and SpaceX and his other investments is going to be that much greater going forward and less on Doge and the other ways that he can help the bigger mission for the U.S. federal government. Let me break in here. Let's get back to our Eamon Jabbers. The president has more to say. Eamon? Yeah, the back and forth continuing here, John.

The president just posting a message here on his social media platform. Remember, both of these titans are battling each other by posting message on social media platforms that they own. So this one on Truth Social about Elon Musk. The president's saying, I don't mind Elon turning against me, but he should have done so months ago. This is one of the greatest bills ever presented to Congress. It's a record cut in expenses, $1.6 trillion and the biggest tax cut ever given. If this bill doesn't pass, there will be a 68% tax increase and things far worse than that.

I didn't create this mess. I'm here to fix it. This puts our country on the path of greatness. Make America great again. And just as I'm literally reading that post, another one coming in here from Elon Musk, who says responding to the president's threat to cut funding for SpaceX and Tesla and Elon Musk's other companies Elon Musk says in light of the president's statement about cancellation of my government contracts SpaceX will begin decommissioning its Dragon spacecraft

immediately obviously the Dragon spacecraft is vitally important to the US government and obviously spacecraft is vitally important to the U.S. government. And obviously you saw this tweet from Elon Musk earlier today in which he agreed with a user on Twitter who suggested that he had the power to de-orbit the International Space Station and the United States couldn't get to the space station without Elon Musk. That's certainly true, Morgan, as you know, and Elon Musk here now threatening to decommission the Dragon spacecraft. Not clear if he's serious about that or if he's just fooling around. He does like to fool around from time to time. But for all those people who are Tesla shareholders who thought that, you know, Elon Musk leaving the White House and getting out of politics was a good thing for Tesla and its shares, more importantly,

you know, here you see Elon back into politics in full force, engaged in this debate over this particular bill, but also engaged in a mono-mono punching match rhetorically with the president of the United States. This adds a lot of complexity to this situation indeed. Eamon Javars, thank you. I want to bring Tim Higgins into this conversation because he hasn't had a chance yet. Tim, you wrote a book on the subject, and doesn't this add a lot more uncertainty into the environment for Elon Musk's companies?

We're hearing arguments that this is good for Tesla now, but I could see some ways it could be bad. Yeah, absolutely. Investors were excited at the idea of getting Elon back involved in the company. Remember, in the next few days, weeks, we were expecting Tesla and Elon Musk to launch their robo taxi service in Austin, Texas.

This is a multi-year promise that he says has always been around the corner to finally kind of do it and show that Tesla can have robot cars on the roadways, something that Waymo's doing in San Francisco and Zucs is doing. And so investors have been betting on that. So a lot of the reason why Tesla's valuation has been so high, that future that he was promising.

And now the suggestion, these tweets today really kind of question if he's really all in and getting back into those companies. He was talking about doing politics maybe one or two days a week. This looks like a war that he's preparing to go on for the next at least few years, or that one tweet, 40 years. Morgan, with Starlink, with Dragon,

Elon Musk simply has some technologies that he controls that nobody else can exactly equal here. So for the US government- Dragon is a very good example of this. Right, and Starlink, we've talked a lot about the impact on war fighters and the global geopolitical and war fighting scene. It's not an idle threat, right?

Or an easily replaceable, hold on, quite a bit more, coming from the White House back to Eamon Javers. Eamon? John, Elon Musk has just agreed with a user on social media that President Trump should be impeached. This user had posted the President versus Elon who wins my monies on Elon. Trump should be impeached and JD Vance should replace him. Elon Musk just responding to that yes within the past 30 seconds or so. So as we're talking about, you know, the future of the Republican Party, where is JD Vance in all this is an interesting question, right? Because JD Vance is somebody who does have a longer political timeline than Donald Trump.

He is widely seen as the heir apparent to the MAGA movement, given that he's Trump's vice president. Does JD Vance draft more closely to Elon Musk? Does he draft more closely to Donald Trump in this fight? Does he position himself as a candidate for 28? Does he close the office door and not come out and not talk to anybody for a week? You know, we'll see.

But, you know, Elon here raising the prospect, at least rhetorically, not, obviously we have to say, not likely, but raising the prospect of replacing Donald Trump with JD Vance, guys. Wasn't that, thank you, Eamon, once again, I'm sure it won't be the last time. Wasn't it just Friday that Elon Musk was in the Oval Office wearing a Trump hat? Things escalate quickly. Things escalate quickly, especially online. We're watching it in real time.

It's obviously not just affecting the public discourse right now and what's happening on both of these websites, but also it's affecting markets as we've been talking about here. I do want to go back to this dragon thing for a minute because here's why. When you talk about something like decommissioning dragon, John, you're talking about a capsule that's used to deliver cargo back and forth to the International Space Station. You're talking about a capsule that's used to deliver cargo back and forth to the International Space Station. You're talking about a capsule that's used to deliver astronauts back and forth to the International Space Station. Remember, it was like the big hullabaloo last year, the whole idea of stranded astronauts, because the Boeing spacecraft had not worked according to plan, and it was SpaceX that went and used its Dragon capsule to bring those astronauts back home. SpaceX did return the ability to fly people from U.S. soil. We had not had that for a number of years.

So these are different types of leverage points from a business standpoint, as well as from a national security standpoint, that Elon Musk is raising in his tweets, and of course, in response to the contracting comments from President Trump. What's not really clear to me is what that process would entail. I need to dig into this.

If the president was actually serious about canceling contracts, because to your point, the technologies of Musk Inc. are vast and cutting edge and we've seen that in the last yes and we've seen that in the last, yes. And we've seen that in the last five months as it interacts with this administration and the administrations before it. Which I guess Brenda is gonna bring us back to you as well to get your reaction to this.

Because how much of this is noise? How much of this is mudslinging? How much of this is politics? How much should investors and corporate America be paying attention here? Yeah, I think, you know, this year has been a lot of mudslinging and a lot of threats. And I think if we look at what President Trump's style has been like so far, it tends to be very damaging threats that aren't always followed through, but it's part of a process of getting the other side to kind

of step down or back down. And so we would assume that this is probably more of the same, although it's hard to really stand behind that exactly because we don't know how every situation is going to play out. I would think that would be the case, given how important so many of Musk's companies are to the United States and to the government and to the military. So I do think that this is probably going to blow over and that both parties will back down to a certain extent.

But in the meanwhile, it certainly is causing volatility. So I don't think there's a lot to do here as a shareholder other than to focus on the longer term perspective. Craig, I see the possibility here that the longer term relationship between Silicon Valley's right-ish wing, the libertarians out there, and the Trump administration could break down a bit, and with Elon Musk's encouragement, they could start to look beyond the Trump years in a way that might not be friendly to his agenda and really might not be friendly to their stock values in the near term. Is that an outcome that you could see as well?

Anything is possible. But you guys just made the point minutes ago with Musk's tweet in the last five minutes that he's saying impeach Trump and elevate Vance. He's pulling Vance closer. He's expressing confidence in Vance. He's not heading to the left. He's very clearly in the camp of, let's not waste some federal dollars.

He's very purist. And I think that Trump is pragmatist. Trump's got to govern and he's saying we're going to save 1.6 trillion. That's a lot of money. It's not perfect, but it's one heck of a step forward. Screw this up and we've got a 68% tax increase. Musk is on the path of saying, let's get it all done.

Let's save 2 trillion, 3 trillion if we can. And for them to be fighting over that, it's kind of sad, right? There's tremendous egos in play here. I mean, the bromance was so strong, it had to come to an end, but the interests are still incredibly well-aligned, and they're both really good at what they do.

And it's a very healthy thing for them to have a little bit more distance because it allows them to both focus on their core responsibilities, governing and running their portfolio of companies. Tim, I do want to stay with this line of thought and that is the last five months, we'll say six months, even before the inauguration,

the relationship, the intersection, the growing expansion of the relationship between Silicon Valley and Washington, for better or worse, Musk was sort of seen as the figurehead of that, but we know there have been a number of technologists and venture capitalists and innovators who have been either engaged directly and officially or indirectly and unofficially

with this administration. Does this moment change that dynamic? Today's probably really good for Sam Altman at OpenAI, right? He becomes the tech guy that is welcome in the White House. They've already done some events together. This is probably good for those people in the tech sphere who perhaps were antagonists of Elon Musk. And maybe this is good for Jeff Bezos and his space ambitions. These are folks who were

trying to take a play out of Musk's playbook and get close to Trump in the last few months before he took the White House, kind of trying to catch up to what Trump was doing. So we'll see. That said, we know that in the first administration in Trump 1.0 that Big Tech was the bad guy. So when you think of that Facebook, you think of Google, and you think in some ways a little bit of Apple when you talk about kind of antitrust issues with these companies and the DOJ under Trump is still being very aggressive.

The FTC is still being very aggressive in that area. So if you're big tech, probably still kind of stormy waters. If you're a startup that's trying to make big names or big headlines with investments for the US, that's probably a good place to be. This gives new meaning to the term tech disruption, but to your point, disruption can also breed opportunity for others.

Tim, Brenda, Craig, thank you for kicking off the hour with us with all the major averages, finishing the day lower. Well, Broadcom earnings are out. Kate Rooney has the numbers for us. Hi, Kate.. Hi Morgan. So it was a beat for Broadcom. This is their fiscal second quarter both on the top and bottom line and guidance is looking stronger than expected as well. Adjusted EPS this is a dollar 58 on that adjusted number two cent beat versus what the street was expecting. Revenue of 15 billion growing about 20% year over year,

also stronger than expected there. And then in terms of a couple of the key segments, investors are going to be looking at semiconductor revenue, $8.41 billion coming in ahead of expectations, infrastructure revenue, $6.6 billion. That was a beat. Adjusted EBITDA, $10 billion, also stronger than expected. Q3 revenue, $15.8 billion. That was a beat. Adjusted EBITDA at $10 billion, also stronger than expected.

Q3 revenue, $15.8 billion. Street was looking for $15.7 billion. So that was strong there in terms of guidance. And then I do want to bring you a comment here from President and CEO Hock Ton. He does talk about robust demand for AI and AI networking really driving the quarter. And then in terms of forward-looking statements, he says, we do expect growth in AI semiconductor revenue to accelerate to 5.1 billion. In Q3, he says, talks about 10 consecutive quarters

of growth as our hyperscaler partners continue to invest. Shares down though on these results, almost 3% after hours, guys. Back to you. Kate, thanks. Lululemon earnings out as well. That stock is tanking. Julia Borsten has the numbers, Julia. John thanks Lululemon earnings out as well that stock is tanking. Julia Borsten has the numbers Julia. John Lululemon shares tanking despite beating on the top and

bottom lines earnings of two dollars and sixty cents per share beating estimates by two cents revenues of 2.37 billion pretty much right in line with estimates of 2.36 billion but the stock is down about 16.5 percent on disappointing same store sales up 1% versus the 3% estimated, as well as the fact that guidance is weaker than estimated. The company guiding to second quarter earnings between $2.85 and $2.90, far below the $3.29 as the consensus estimate with the second quarter revenue guidance also in a range below estimates, guiding to a range of 2.53 to 2.56 billion. The estimate is at the high point of that range, also guiding to full year earnings

below, reducing full year earnings guidance to between $14.58 and $14.78 versus an estimates of $14.89, also guiding to revenue in a range pretty much in line with expectations, so reaffirming the full year revenue guidance. But it's essential here that the reduction of the full year earnings guidance is what's really weighing on the stock here, as well as those disappointing same store sales numbers. Back to you. All right, we'll of course wait to hear

how much of that has to do with tariffs. Julia, thanks. Rubrik earnings are out as well for the cybersecurity, cyber resilience company. That stock is heading higher in overtime by a little more than 3%. Revenues beat coming in at $278 million versus $260 expected. Earnings per share also a beat.

The loss was 15 cents versus a loss of 32 cents expected. Gross margins came in a couple points higher at 80.5% versus 78.6%. That's the non-GAAP gross margin. Also for Q2, the guide is above the street expectations, guiding to a range in Q2 on the revenue side of 281 to 283 million. So 282 at the midpoint versus 274 expected. Loss per share range of 35 to 33 cents

versus 36 cents loss expected. Also raising the full year expectation for revenues and pulling in the expectation for the loss is going to be less than expected. With that, let's bring in Rubrik CEO Bipple Sinha, head of the earnings call. Bipple, good to see you. So these results beating across the board, 54% increase in subscription revenue. Describe for us the environment that led to the upside here in these results. John, great to be back with you. We had an excellent last quarter and a great start to

our fiscal year. As I have been saying for the last five years, that we have spent so much money and so much focus on cyber attack prevention and detection, that we have almost forgotten cyber recovery and resilience. And that's the focus of Rubrik. And we are educating CIOs and CISOs around the world that without their recovery and resilience, there is no real complete cybersecurity story.

And cyber resilience is turning out to be the top cybersecurity priority. That's what is propelling our business. What's the relationship with the hyperscalers? Amazon, certainly Microsoft, Google, in so many areas, and getting ready to talk to MongoDB as well on the database side, they both compete and act as a platform for you.

How do you view it in a cyber resilience space? We have excellent relationship with all four major hyperscalers. Google recently gave us a Partner of the Year award, because what we do with hyperscalers is we are driving data security and cyber resilience, whereas they are driving cloud infrastructure security. We have completely complementary offerings, and that's why we have a deep relationship with Microsoft, AWS, Google,

and this quarter we launched our offerings for Oracle Cloud Infrastructure. So we now have comprehensive cyber resilient solution across all four major hyperscalers. What gives you the confidence to guide as you have in an environment where, certainly, not speaking specifically in cyber, but even if we do look at CrowdStrike, some others, pure storage, in the hardware business,

there's some questions about how that's gonna pan out with the macro environment and tariff impacts. Why is that not affecting you? Or is it despite the strong guide? Our core strategy is to help businesses understand that attacks and breaches are inevitable and they need to assume breach posture. And this is not discretionary. This is not something that depends on economic cycle.

This actually is mandatory for their business. In my conversations with cyber leaders around the world, cyber resilience is the number one priority. We do not see any change in our demand environment, and we have a very unique product offering, and we are winning the cyber resilience space. We feel very strongly about about the finishing this year is strong and that's why we have put up the number that we have put up.

Is that accelerating your time frame for profitability? We had a great quarter not only we had a very strong top line growth we grew our ARR by 38 percent but we we had positive 12 percent free cash flow margin and over 1800 basis point improvement in our contribution margin. So we are really building a long-term profitable business, and our belief is that we are in a unique marketplace with a unique offering and accelerating our business and profitability. Well, investors certainly paying attention.

Stock now up five and a half percent in overtime. Bipul Sinha, thank you. Well, investors certainly paying attention. Stock now up 5.5% in overtime. Bipple Sinha, thank you. Thanks, John. Well, coming up, a huge pop for Circle in its market debut. More than huge. We're gonna check the stock out and hear from the CEO. Plus, markets pulling back on the Tesla turmoil

and it comes ahead of tomorrow's jobs report. Where do we stand heading into the potentially market moving events? Had some mixed data so far this week. That's coming up next on Closing Bell Overtime. Welcome back to Closing Bell Overtime, a straight lineup for Circle and its IPO today. The stock closing at 83.23 per share. It priced at $31. It opened at 69.50.

This is by the way after it issued more shares. Circle issues stablecoins. And is IPO capitalizing on the interest in crypto as one of only a handful of pure play publicly traded crypto names. Earlier, I spoke with CEO and co-founder Jeremy Allaire about the company's mission. I think we're building a major new Internet platform infrastructure company. We're bringing the infrastructure of the Internet to the financial system. We are trying to upgrade the dollar to the Internet and we're trying to make this all

work whether it's capital markets or how money moves. And so our mission has always been around this. And of course, USDC, which is Circle is circle stable coin is tied to the dollar. Now, despite today's interest in circle, Bitcoin falling below 102,000, but still up 23% since the beginning of April. Yeah, big move for that IPO indeed. Well, S&P 500 got as high as 5999 early this morning.

It's not been at 6K since late February, but that faded as President Trump and Elon Musk started trading insults. So where does that leave us before tomorrow's jobs report? Let's bring in Mike Santoli. Mike? Yeah, John, so it's fascinating. The S&P 500 down about half a percent on the day.

Half of that loss was Tesla alone. So if you just took its own percentage decline, it's waiting in the index. So the rest of the market was more or less trying to hold its ground and essentially just hesitate. We've been hesitating for three days in the S&P 500 ahead of this jobs number. We're up 23% off the lows from early April.

Treasury yields have kind of calmed down a little bit. They remain in their range. So now what are we looking toward in terms of that jobs number tomorrow? The estimates are in the range of 130,000 net new jobs for last month. That would be a bit of a downshift, but still a healthy enough number,

I think to satisfy the market. Probably the case that investors on balance want to see a firmer labor reading rather than weakness. We're not in the mode right now of bad news is good news because the fed's not in any hurry necessarily to move to cut rates and offset things right now. So maybe the market is just kind of, you know, a little bit kind of tired needing a pause,

but it's been impressive in its ability to rotate into stronger hands and other parts of the market when you have had these big isolated sell-offs in the sector or like today in a class of stocks like Tesla. Yeah, S&P did flirt with 6K today before it, ultimately turned lower. We've been talking a lot about how range-bound stocks are.

Mike, yesterday S&P range was the smallest since Valentine's Day to your point. We go into a Fed media blackout starting on Saturday as well. I guess the key is given some of the mixed data we have gotten with jobs tomorrow, a move lower in treasury yields as we've seen this week is not necessarily a good thing for stocks or otherwise.

No, at least within limits, right, Morgan? So we don't want to see yields really start to crash and essentially the bond market to assume that we have a rapid weakening in the economy. We are in that range I mean if you're above four point two percent on ten years you're still in this range but that's that's exactly

right so we are you know trying to maintain this balance we've been in right now I'm not sure six thousand even though round numbers sometimes take a couple of attempts to get through I'm not sure that's really the boundary we got to that level

for the first time, you know, a few days after the election. That's seven months ago. And since then, we've had two quarters of pretty strong earnings and yields are about the same spot. So there's nothing weird about us trying to get above that again.

The question is whether we've come a little far in a hurry and therefore, you know, you get some buyer's fatigue before too long. We've come a little far, maybe. Some people going a little far today, maybe. I'm like saying totally thank you. Yeah, testing it. Yeah.

Well ahead on Overtime, shares of MongoDB soaring today as the company reports better than expected earnings and raises guidance. One analyst writing today that Mongo is finally finding its AI mojo. We will speak with the CEO, David Aceria, just ahead. Welcome back to Overtime. Stocks sliding late in the session today, giving up gains as the war of words between President Trump and Elon Musk escalated,

Tesla losing 14% and its trillion dollar market cap. Trump media shares also lower, down eight, and checking on names that reported earnings this hour in overtime. Broadcom slightly lower, small beats on earnings and revenue, down eight and checking on names that reported earnings this hour in overtime Broadcom slightly lower small beats on earnings and revenue guidance slightly ahead of consensus Lululemon down 20% wow almost 21 ahead of estimates for the quarter but it's the guidance that's sinking the stock second quarter EPS

well short of the analyst estimate DocuSign also lower the top line numbers look good but Billings for this quarter and next seen below what analysts were looking for. Finally, Samsara ticker IOT for Internet of Things. Slightly better than expected. Revenue guide for Q2 coming in slightly ahead, but the stock is down almost 12%. We're going to talk to Samsara's CEO and co-founder Sanjit Biswas on overtime tomorrow. Well, the big story of the day today, though, is the escalating feud between President Trump and Elon Musk. Elon Musk posting again on X just moments ago.

Eamon Jabbers has the latest. Eamon. Yeah, Morgan, that war of words is not over. Elon Musk just posting on his social media site a short time ago. He says this, the Trump tariffs will cause a recession in the second half of this year. So Elon Musk, sharply critical now of the president's signature economic initiative, his tariffs also sharply critical of the president's singular legislative goal for the year, his big beautiful bill on the spending. Elon Musk also coming

out swinging. I'm sort of at a loss for words here how to characterize this at this point, guys, suggesting that he agrees with a user on social media who says that the president should be impeached and should be replaced by JD Vance, his vice president, who we haven't heard from, by the way, as all of all this has been going on Elon Musk also suggesting that President Trump's name is in some Epstein files that are being hidden and that's why they're being hidden I mean this is getting very deep and very personal and much of the country has been watching this this afternoon Kanye West weighing in trying to be sort of a peacemaker here maybe the the the same man in the conversation suggesting uh... that he's upset that the two are arguing saying we love you both so much

uh... that we also saw the new york times just popping the story within the past couple moments suggesting that steve bannon uh... has been watching this the long-time conservative advisor outside advisor to president from bad inciting with president trump here saying that uh that he is urging President Trump to begin an investigation of Elon Musk. He wants the president to cancel

all of Musk's contracts and launch investigations into Elon Musk's alleged drug use, saying he believes that Elon Musk is an illegal alien and should be deported from the country immediately. Also Bannon saying that he wants an investigation of Elon Musk's attempt earlier this year to go to the Pentagon and get a briefing, a classified briefing on China. Bannon's saying that Musk's security clearance should be suspended during these investigations. That according to the New York Times, obviously a security clearance, vitally important if you're an enormous defense contractor who deals with some of the nation's most sensitive intelligence guys. So the fallout here, national, global, epic, it deals with politics, it deals with business, and a good portion of the country

is just watching it with their jaws on the floor, guys. Yes, quite a few people I think right now, Eamon Javers. Thank you for bringing us the latest on all of it. What is very much a developing story. Well, Berkshire Hathaway shares falling more than 9% since Warren Buffett announced he will be stepping down at the end of the year. Up next, Mike Santoli looks at whether the stock is losing the Buffett premium. Plus, MongoDB, one of the big winners on Wall Street after its earnings beat. We're going to hear exclusively from the company's CEO coming up on overtime. We debated it yesterday and Core Weave, still one of the hottest stocks in this market,

though down big today, that while money has been moving out of Berkshire Hathaway, what might all that be telling us about the broader markets? Well, let's bring in senior markets commentator, Mike Santoli, Mike. Yeah, John, I like to sort of track these things for shifting investor preferences and also evidence that usually the market sort of adapts to play a certain theme when one mode of doing that starts to falter. So here is Berkshire Hathaway against SPHQ. That's the high quality subset of the S&P 500. High quality stocks, strong balance sheets, etc. You see how they both move very much in tandem until early this year when the overall market

hit a peak and what specifically happened was MAG-7, Mega Cap Growth Stock started to really fall and that's dominant in the SPHQ. So MAG-7 goes down, market went to the next best thing which is like the eighth biggest stock in the market, Berkshire Hathaway, which is ultimate high quality and crowded into it. Now what also happened here, of course, Warren Buffett announced in early May that he would be stepping down as CEO at the end of the year. So probably also some of that Warren Buffett premium

might be leaking out of the stock too, but this really shows mirror image. What's going on is a quality rotation. Take a look here, same chart Berkshire, but against the NASDAQ 100, just to emphasize that the NDX is mostly also a proxy for those high quality companies. Now, when it comes to other ways of playing

the similar theme, imagine CoreWeave, take a look at CoreWeave in its very short history as a public company, that's at the end right there against Supermicro, when it was discovered as a possible derivative play on the build out of AI infrastructure went up at a very similar angle, a very similar percentage before things started to get a little bit more scrutinized at the company and it just sort of lost that wave of enthusiasm. So not a

prediction, but a little bit of a rhyme here, Morgan. All right. We'll keep an eye on it. Mike Santoli, thank you. Up next next the CEO of MongoDB joins us exclusively To discuss what's driving growth after beating Wall Street's earnings estimates and guidance and Brown forming investors drowning in their sorrows The Jack Daniels maker the worst performer on Wall Street today after reporting weaker than expected earnings and guidance and warning of headwinds From tariffs and consumer spending and we are moments away from a special Fast Money Live. Coming up at the top of the hour, a special edition of Fast Money, Melissa and the gang will be joined by a live audience of the Fast Money faithful. They'll also be joined by former Trump NEC director and current IBM vice chair Gary Cohn.

Good day to hear from him. They're going to get his take on the epic battle royale today between Elon Musk and President Trump, plus how this will ripple through the entire Trump agenda. Welcome back to overtime shares of MongoDB soaring almost 13% today after a strong earnings beat yesterday. The company boosted guidance on growing confidence in its Atlas database from also raising share buyback plan by $800 million. Stock's more than doubled over the past month and joining us now exclusively is MongoDB CEO,

David Eceria. Dave, good to see you again. So strong quarter, stock up nicely. You got a number of questions on the call about database competition from Snowflake and Databricks and the broader embrace of Postgres as a threat to Atlas. Outline for me how you think the technology that you have in Atlas is better positioned, particularly for this AI era.

Well, John, first of all, thank you for having me. What I would say is that people need to understand that Postgres is built on a technology called relational or SQL databases that was really came out almost 50 years ago. In fact, over 50 years ago. And in that time data was very organized and very uniform and very predictable. Well, fast forward 50 years later and data is represents the modern world

which is very complex, very messy, changes all the time and constantly evolves. And so trying to force fit today's world into a tabular structure just doesn't make any sense and people struggle with doing that. They've tried to fix that problem with providing some support, but MongoDB is designed out of the box to be able to model the real world, today's complex world, where data, 70% of data is unstructured, where the data constantly changes and evolves, and is highly distributed to support elastic scale.

And we feel like we're really well positioned for this emerging, not just for today's applications, but for the emerging applications of tomorrow. And so how are we seeing that reflected in the size of the customers that you're engaging with? In the quarter, you seem to see growth in self-service, which I tend to think of as those smaller customers, maybe a lot of AI there, but you've also been focusing strategically on selling into larger enterprise accounts, right?

Exactly. So just on AI, we have thousands of AI apps running on MongoDB today. And a lot of the small customers tend to probably build AI applications. Most of them are small, but some of them are hitting escape velocity with hypergrowth. And those include customers like Cursor, one of the most popular cogen tools in the marketplace. But we also are serving the large end of the high end of the market. We have very sophisticated, in fact, 75% of the Fortune 100 and 50% of the Fortune 500 are customers today. So we have a wide range of customers across various geographies, industries, and using us for a wide variety of use cases. And so we serve both markets and it speaks to how big our market is and how popular MongoDB is.

I want to go back to something you just said, and that is emerging applications of tomorrow. What do you see those as being? So what we're seeing today is that enterprises starting slowly with the adoption of AI. A lot of them are what I call low-stakes use cases, conversational AI, chatbots, data summarization, data extraction, data classification. But what I think is gonna happen,

much like we saw in the cloud, and much like we saw with the internet, over time people wanna build much more sophisticated custom solutions that truly transform someone's business, either to seize new opportunities, to respond to new threats, to drive more efficiency. And we know that that's coming, because you've seen this movie before,

and we think we're well positioned to do that. But today, the adoption's early for two reasons. One, there's limited experience with AI technologies and so people are kind of getting up to speed on some of these new technologies as well as there's also a risk of what's called hallucinations. AI systems are probabilistic so you can't always guarantee the output of AI systems and if you're a financial services customer or healthcare customer you get very nervous when you don't know what those systems are gonna produce.

And so you wanna be very careful and guarded about how you deploy these technologies. If we stick with the topic of data for a moment here, I was interviewing Alex Wang from Scale AI at a conference down in Washington yesterday. And one of the things he said, he's keeping him up at night is data poisoning. Is that something that you are thinking about as well too in this new, I guess, era of AI

and data being the future gold rush? It's not a thing that we see, but one of the things that we've done is we acquired a company called Voyage AI, which helps people basically bridge their private data to the LLMs. The LLMs have already trained themselves on public internet data. What they don't have access to is the private data of a bank, a telco, a tech company, or any other company. Embedding models essentially enable you to convert your private data into essentially machine readable numbers that capture the semantic meaning and context of that data. So it's a bridge between your private data and the LLM.

So you can guarantee the output and ensure that the output is of high quality. And Voyage produces the best embeddings in the industry. It's incredibly popular. And what it does is really improve the efficacy and quality of the outputs of these AI applications. And we think will really help people drive the use of AI broadly. All right. Dave Ilocerri, the CEO of MongoDB.

Thank you. Good to see you. Thanks, John. Thanks, Morgan. Take care. Well, let's get a check on some of this hour's big earnings reports. Lululemon down 20% here in overtime. The guidance is what's dragging that stock down, lowering its full range.

Lowering its range, I should say, for full year earnings by nearly 40 cents a share. Company's saying it is reviewing pricing scenarios due to tariffs, it's now down 22%. Broadcom, slightly lower following its results, which narrowly beat estimates on earnings and sales. The company expects AI semiconductor sales will top $5 billion in the third quarter,

which would be 10 straight quarters of growth in that division. But those shares are down about 3%, John. And of course we know this has been sort of one of the more recent AI darlings, so maybe some profit taking here. Got to think about the macro now, that jobs number, which, you know, there's been a lot of rumbling this week about what that might be because of the various signals,

beige book soft data, hard data from ADP. Now we really get to see what is happening both on wages and it seems now more important just on the raw number of jobs out there and whether this adds fuel to the president's argument that the Fed needs to cut sooner than later, even as the Fed seems to be holding power, waiting to see what tariffs do to prices and inflation. Yeah, and I think that's the key question here. Is this the calm before the storm? We got a lot of Fed speak as well today, a lot of the same messaging we've been getting, which is that, yes, the economy is slowing, but it's still holding up

enough for the Fed to feel like that they can take their time with future decisions. That said, this jobs report is going to mean a lot because we've had a lot of softening data throughout this week and jobs have really been what have been holding things steady despite some of the other issues in the soft data for example up into the course will be watching X and true social