Power Lunch - Major Stock Averages Surge 10/20/25

Episode Date: October 20, 2025

We discuss whether the market is overvalued with Greenwich Wealth Management's Vahan Janjigian. Apple is in the midst of its best iPhone upgrade cycle since the pandemic.  And what should you be keying in on as Big Tech earnings approach? It's all here on Power Lunch. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Stock starting off the week hot with a little light peeking through about a possible end to the partial government shutdown. Welcome to Power Lunch. Everybody I am Brian. Kelly is off. But investors, they are not off. Big tech popping. All bag seven stocks are higher. And a White House heavyweight telling us the shutdown is, quote, likely to end this week. We shall see. Apple also spiking some upgrades. optimism around earnings later on this week. But it is not all fun in games out there. Apollo investments out with a fast. data point on stocks and earnings. You're going to hear it here. Investing guru Muhammad L. Ariane jumping in, saying some investors may be reaching a little bit right now. Oh, and we've got a fun valuation comparison on some rareworth companies that you have to hear, and you will hear it and see it, but only here on Power Lunch. All right, welcome, everybody. Happy Monday. Let's jump right in. Stocks rallying again. You can insert your reason why. Take your pick. The NASDAX up 1.5%. The S&P up just over 1%. Whatever your rationale, earnings, certainly a big part of the story. And this week, things are ramping up as companies roll out their numbers. And how companies' earnings come in also has to do with market valuations.

And your first guest today says things may be getting a little bit hot right now. Bahan, Janjigian, is Chief Investment Officer with Greenwich Wealth Management and joins us now. Welcome. Good to have you on set. much? Too hot? Yeah, I think it's too high. You know, I'm hesitant to say we have irrational exuberance because when Alan Greenspan said that... I remember that term. Yeah, the market continued going up for a couple of more years. But yes, I think the market is a little bit too high right now. All the market or parts of the market? Well, not all of the market. There are lots of stocks that are out of favor, a lot of value stocks that I think are still worth owning. But

I think there's a little bit too much excitement about these AI names in particular. and technology in general. Is Nvidia worth owning? You know, Nvidia, I like to talk about Nvidia. I like to compare it to Cisco systems back in the 1990s. It was the biggest company in the world at the time. That's right. And it was the hottest stock on the market.

And it went up for quite a while. It went up sixfold, in fact, from 1994 to 2000. And then it collapsed. But if you look at Cisco today, it's still one of the best companies in the Internet space. It's posting record profits. but its stock price is 50% off its all-time highs. So as far as NVIDIA goes, I think the stock is too high,

but I don't think the business is... So, yeah, because there's a huge and important difference that whether you're talking about NVIDIA, Cisco, or somebody else, I think what you're saying is our viewers and listeners have to remember separate the company, the core business, from the valuation of the stock. Absolutely. Because sometimes they can diverge. That's right.

And I think NVIDIA's business will continue to do great for years to come, and it will be a leader in the AI space. But I'd be hesitant to buy the stocks. So you're not an NVIDIA hater. No. In fact, what I say to people is that, you know, I used to own NVIDIA in my client's portfolios. In 2022, I was convinced it was an undervalued stock, so I bought it. Right. But I sold it a couple of years later because my clients also owned ETS that NVIDA was the biggest component of, including SMH.

was at that time over 20% of the SMH. And one thing I would tell all investors right now is that if you own InVideo or you own some of these big cap stocks and you own ETFs and mutual funds, be careful because your exposure might be a lot more than you actually think. Yeah, so Apollo Investment Group, obviously very well known. They're cheap economists, Torsten Slocke.

It's great work. It puts out interesting stuff. We're going to show it to our viewers right now. He put out a note today saying that last couple of months, we've started to see companies with negative EPS, earnings per share, outperform companies with positive earnings per share. Now, if you're, the stock market is theoretically, you're buying earnings or future earnings. So this, this merits a look, but you also think there might be a good rationale for why this is happening. I do. Like, I think he's focused primarily on the

Russell 2000. It is. It's Russell 2000, negative and positive. Right. So about 40% of the stocks in the Russell 2000 have negative earnings. However, you know, many of these stocks are, you know, emerging technology stocks or biotechnology stocks that don't have any earnings. In fact, they may not even have much revenue to speak of. Biotech stocks, for example, might have, you know, one or two things in the pipeline. It's kind of like a lottery ticket. If the FDA trials prove out to be successful, the stock could really jump. So even though they still have no earnings, if you get any positive news about the trials, you could see the stock jump. So I'm not surprised that the negative earning stocks are doing so well right now. But keep in mind,

there's a lot of liquidity in the market right now, and people are overreaching a bit. So, you know, I think some of that's going on. So you view it, it may not be a market warning as much as it is, oh, people are just shifting to biotex because they didn't do anything forever, and now maybe you're betting on these positive outcomes. That's right. I think it makes sense to have some stocks like that in your portfolio. And one of the best ways to do it is to simply buy a small cap index like the IWM. But, you know. Been hot. It's finally gotten a little attention recently.

That's right. It's finally doing well. But, you know, there are other warning signals. Like, for example, when you have a situation when all assets are going up, including bond, stocks, gold, and the only thing that's going down is oil, I'd be a little concerned about what's going on. Well, maybe oil, which is something I know a little bit about, maybe oil has more to do with just the supply demand fundamentals. Or do you read it as a pure take on the global economy? No, I think it has to do with supply and demand. Right now, for example, you know, there's some hope, for example, that the Ukraine-Russia war may come to an end, not to the Ukrainians' liking.

But if that happens, all of a sudden we see more Russian oil on the market. So I think there's some concern about oversupply. Yeah, but to your point, everything's going. It's the everything rally, and it's not just the everything rally here. Stocks have outperformed the United States in many parts of the world. Throw a dart, hit an index in Europe, hit an index in Asia, and they have problems. not always, but probably outperformed us. Where is all this global money and liquidity coming from?

Well, there's a lot of money in cash. There's been a lot of money in bonds. However, the fact that both stocks and bonds are going up at the same time is a bit of a question. I think there's also a lot of leverage. I think a lot of people are using margin. A lot of institutions are using margin. We have leveraged ETFs now that are also buying very aggressively. So that's pushing up prices.

Some of them leveraged multiple times. Correct. Not just like two to one, but three to one and higher. Yep, that's right. So is right now, like peak gambling? I think there's a lot of risk in the market, and I think it makes sense for people to realize some profits. You know, take some money off the table, take some of your profits.

I wouldn't jump into bonds right now because, as you know, we've seen a big decrease in the yields. I expect that to reverse. So eventually, I think you might want to do some shifting from stocks to bonds when you see the yields go higher. Great, great interview, great conversation, great way to kick off the show and the week. Vahan John Giggyen. Really appreciate it. Thank you very much.

Speaking of bonds and yields, a 10-year treasury yield back below 4%. Let's find out why what's going on. Rick Santelli, with your bond report. Rick, what is going on? You know, I'll tell you, in terms of treasuries, it's pretty much an idol. story. Let's start at the beginning. We closed recently at the lowest yield that was on Thursday for a two year since September of 22, three years. Now, let's go to the intradate chart. On the left side is Thursday, and you can see we haven't had a very big balance since that

three-year low close. The right side of that chart is today's action. You know what the size of the range is? We've traded from 345 to 348, several basis points. That's it in our time zone. Now, let's look at a 10-year. Ten-year, well, it closed at the lowest yield since October of 24. Let's call it one year. Yesterday, Friday.

Now, let's look at the intradate chart. You can see, once in our time zone, same dynamic as a two-year, and the same dynamic that's been going on, really, for a week and a half. We're only trading in a range from 398 to 4%. This consolidation makes many, a little apprehensive as our just guests just pointed out about jumping in to this trading below 4%

by a little bit. It's not getting to follow through many thought. So we'll continue to monitor because that was a new low closing yield for the entire year. And one of the big dynamics we talked about last week, SOFER, not silver, SOFER, secured overnight funding rate. It was it 430? Now it's at 418. So we're seeing that the yellow flashing for funding markets is coming down a bit, and that makes sense. The equity markets seem to look past it while it was going on, and they're looking past it now as it goes into the rearview mirror. Brian, back to you. We might have to change the Burr Lives trade from silver and gold to sulfur and gold. I love that. Rick, always bringing us something new.

What is it, day 18-ish of the partial government shutdown? How much longer can this go before the bond market gets ticked off or worried? Well, I'll tell you what. There's a perverse side of this story that people are whispering about. If the government's closed and the bond market isn't paying attention, maybe there's large chunks of the government that aren't really doing enough to grab our attention, meaning, well, maybe the bond market's composed here because maybe there's a little bit too much fat in the government. Maybe there's too many people, even though we've been talking about layoffs.

So exactly where are we feeling the pain? And when we do experience a more accurate answer to that, maybe treasuries will pay a bit more attention. And one sidebar here on the 24th, even with the market and the government still closed, we're supposed to receive CPI because of cost-living increased issues embedded in Social Security. Day 20 is the actual count I was just told Rick Santelli. Rick, thank you. All right, folks, we are just getting started and on deck.

Why, Apple, Apple, suddenly one of the hottest stocks in the world again. We got to talk Apple because the stock is hitting a new record high, a lot of optimism around the new iPhone sales. And Wall Street is also chiming in. Today, loop capital markets upgrading Apple to a buy rating, raising its price target to 315, and Evercore ISI, adding Apple to its tactical outperform list, saying investors should be writing the iPhone wave. That's actually the title of their Apple report. Let's talk more about riding that wave with Steve Kovac, who of course covers the company and more for CNBC.

Is there an iPhone wave? Yeah, you could say Apple's going bananas today. Orange, you glad you said that. No, but seriously, yes, there is, and I got it. There is, there is a bit of an iPhone surge going on. And what we've been seeing, this is the same story we've been hearing about since launch day about a month ago, Brian, is that there is a surge in demand for these. You look at the wait times when you order an iPhone today.

They're actually longer than they were a year ago. So, like, that might be bad if you're really eager to get that new iPhone, but it's actually good news if you're an Apple investor because that means demand is higher. It's taking them longer to meet that demand. We'll look at all these headlines I'm showing you just from analysts and other financial outlets today, financial time, saying this is the biggest iPhone overhaul in years, an upgrade frenzy, best since COVID, Bloomberg citing double-digit percentage growth in China. And by the way, Brian, China is showing a lot of resurgence right now for Apple because of this iPhone

cycle, not just because people are excited about the new designs. The iPhone Air actually went on sale just a couple of days ago, already sold out. But it's awesome because- Why? What is it doing? What is it bringing that my, I guess, piece of crud iPhone 15 can't do it. How about a discount subsidized by the Chinese government? Oh, there's that. That helps.

That's been helping them quite a bit. So that base model iPhone, they actually took some of the pro features, brought them down to the iPhone, the regular base model iPhone 17. And that, in turn, is getting subsidies. So people are going for that model. And then the air just looks kind of cool. And Chinese customers seem to be gravitating towards that. And then here in the U.S., you get all those carrier deals. Get your phone free, trade in your old one, sign up for a two-year plan, et cetera.

It might feel like you're getting a free phone. but believe me, someone's paying it, you're paying it over time. And it's working out great. Let's start with the China side. This is really, really interesting because two things. Number one, having been to China a few times, the iPhone's very expensive. Okay, most people don't make what we make here. So you're talking about an $800 phone.

That's where the subsidies come in. They have to subsidize it because it's effectively us buying a $5,000 phone for many people's income levels. And I thought Huawei was supposed to kill Apple in China. It's clearly not. Not killing, but it has been, especially coming out of COVID, eaten in a very significant into Apple's market share. You got a bit of national pride issues going on, too. People want to buy the homegrown brand. And look, Apple benefited over COVID because Huawei wasn't making phones during that time. So there was no competition in China. As soon as Huawei came back online,

we started seeing them pick away at that market share. I saw one stat, I forget who put this out there, but in the last quarter, Apple is the only smartphone brand that grew that quarter, actually, including Huawei. So there is just a lot of optimism around here. Our Contessa Brewer, she was out in Cal a couple weeks ago. She sent me a video of iPhone lines at the Apple store there. There were bananas. And everyone there was going to buy the pro, the most expensive version. Is it because, so you are, you know, here in the United States, is it because the camera, I know the camera always gets better. It always gets better. Every time, if they had a worse camera, that would not be a great marketing slogan. But is there something I'm missing about design? Is it the design? So you can

chart this over time. And I did this in the run up to this iPhone. phone cycle, you can see where the surges and sales happen. It's when they change the way the phone looks and feels. That really spurses. Remember, they went to the big screens about a decade ago. Everyone was screaming at them. You got to make bigger phones. You got to make bigger phones. Samsung's going to eat your lunch. They did it. Boom. Huge super cycle right there. We saw it again with the iPhone 10. Brand new design. We see it now with the iPhone Air and this new design on the pro. Next year, folding phones. Year after that, a 20th anniversary edition of the iPhone that's going to have a radical new design as well. So there's a lot of forward momentum. My buddy's got one of those folding

Samsung's. Yeah. I have to say it's really cool. Now we're getting up there. Listen, we're getting up there. I'm not you, me up there in age where, you know, a larger screen. It's a little bit of a benefit. He folds this up. It's like a little tablet. I think it's really cool. I don't know how it's doing for Samsung. It's small. It's niche. Okay. So is it going to be niche for Apple? But the idea is if Apple starts entering that market, people here are going to get more excited about an Apple folding phone than they might be about a stand- because here's the difference. But get ready to spend $2,500 in that thing. Well, okay, that's a lot of money, but guess what?

I don't think price has been a huge limitation. Because of all the deals. Well, people also do it like a car. They stretch it out, you know, $29 a month. And buy now pay later it or whatever. Because for guys, a lot of guys carry their phone in their pocket. Yep. So there's a limit to the physical size of the phone.

You're not putting an iPad in your pocket unless you're wearing one of those like 1885, you know, MC Hammer, parachute pants. Otherwise, they are facing some design constraints, I think. Yeah. And that's, and that's why they're finally, it sounds like a year from now, we'll be talking about the folding phone. And that could be another catalyst. The price is going to be high. That's going to boost iPhone revenues right out the gate. And again, to your point, there are so many deals. The carriers eat so much of the cost of the phone up front when you walk into your Verizon or AT&T store. They're going to give you the phone, quote, air quotes, for free. You're paying it off over time. But that

makes you go for the pro instead of one of the baser models. Stocks up four and a half percent. And every time I see you, the Kovac's just so hype. It's great. You're dope on the floor and your magic on the mic. Steve, thank you very much. Appreciate that. All right. Up next, a valuation metric on some of these rare earth companies that you have to hear and you will hear it and see it, but only here. All right, welcome or welcome back. Let it stay on the rare earth minerals and metals story. Because as you know, it has been a super red hot, sector and stock story and America realizing just how far we've fallen in this critical area and ad insert headline here. Stocks like critical metals, USA Rare Earth and the metals company,

those stocks have been soaring the last couple of months. And earlier today, USA Rare Earth new CEO, Barbara Humpton, came on money movers with Carl and Sarah. And Carl asked Humpton how long it might take the company to get to their ideal level of production and some other questions. Listen to this. We have plans that stretch out across the decade right now. Magnet making will begin. In fact, my CFO loves to talk about this as the magnet to mine strategy as opposed to the mine to magnet strategy. We're going to be building magnets. We're going to be using supplies, feedstock from, you know, at home and around the world. And then ultimately, we need that whole supply chain to be growing and strengthening as we expand.

So what percent of ideal production do you think the U.S. is at right now, an aggregate? Oh, I don't think I have those numbers, Carl, but it is small. It is small. So in innings, we would be talking about the first day. We are in the early innings, and it's a great opportunity. Really quick. How many employees? Today, fewer than 100. Fewer than 100. Now, that was an important interview, because as we have pointed out, a number of times

of this program, many of these companies are still in the very early stages of business, with little or no sales, no earnings or revenue. And with that, many are also, as you just heard, lightly staffed. Humpton talked about it right there. Now, S&B Capital IQ, listing USA Rare Earths, is having 30 employees. The metals company employing 47. So we thought it would be kind of a fun exercise to compare how these companies compare to those companies that want to help power AI

and stack up with some industry giants in terms of how valuable the company is per employee. It's kind of fun stuff, right? So if you take the publicly available market cap data and just divide that by the number of employees as listed by S&P Capital IQ, it's pretty amazing. Invidia, it's worth just under $4.5 trillion. It's got about 36,000 employees, which means it is worth about $123 million per employee. Apple, which we just talked about is valued about $22.5 million per employee. But if you look at both USA Rare Earth and the metals company, it's an interesting tale. USA Rare Earth has a public market cap right now about $2.9 billion.

And S&B Capital IQ shows them having 30 employees. That's a value of about $105 million per employee. The metals company is similar with the market cap today, about $3.7 billion, give or take, and they listed 47 employees that is $70 million per TMC team member. All right, it's just for fun. Really two takeaways. Number one, maybe everyone at all those companies needs a big fat raise. Number two, it's an interesting and different look at the level of investor optimism around

some of these companies, which, again, are just starting some of them to ramp up production. It's important to note those employee changes may have. change since the last reporting period. They could change up or down when S&P 500 or S&P Capital like you got the information and we expect and hope that new updates may be coming on the company's results or more in the weeks ahead. Still kind of a fun exercise. Speaking of rare earths, take a look at that. Cleveland Cliffs up 17% right now on the news saying it is exploring rare earth production. This is the best thing. This is the best for Cleveland Cliffs since 2016.

So basically in eight and a half for almost nine years, best day ever for CLF. Lorenzo, if you're out there, your favorite CNBC anchor, you're welcome on the program anytime. All right. Coming up, why star analyst Mark Bahaney says some red lights may be starting to flash on other company valuations. That's next.

All right, welcome back. Bank of America, the latest Wall Street firm coming out with some valuation alerts or at least reference points. Listen to this. A Bank of America says it regularly tracks 20 different valuation metrics and now says that five of those metrics, price cap to GDP, price to book, priced operating cash flow, enterprise value to sales, and some others have hit new record highs and five other metrics are also now above the March 2000.com peak. All this is the largest cap tech stocks just keep getting larger. So is the head of Internet research at Evercore ISI worried about any of these data points.

Well, let's ask him. He is Mark Mahaney and Mark obviously Bank of America is not your firm. We don't expect you to comment directly on somebody else's report. But you just heard my other thing about valuation per employee. Is there any part of the valuation spectrum for your companies that you cover that worries you at all? Well, let's see. We have had a major re-rating. I mean, we're three years into a tech boom here, at least in the consumer internet stocks that I look at. We've had a really dramatic rally in these names. They were very interesting entry points. I thought earlier this year on Uber, earlier this year on Google, and I'm sort of struggling to find those great entry points on names now. They're good compounders. I think meta is a great compounder at 23, 24 times earnings. I think evaluation is very reasonable versus the market. But it's not. It's not dislocated in the way that I really like to hunt for stocks. Amazon may be the closest I have to a dislocated stock, despite today's outage. I think it's actually one of the,

it's underperformed year to date, which creates the opportunity if they can get AWS growth to accelerate. And I think they will. I don't think today's outage really impacts that. I hope it doesn't. I don't think it will. I've dislocated my shoulder. I've never dislocated a stock. What does dislocated stock mean, Mark? Well, it's what I hunt for is DHK. Dislocated high-quality names. So stocks that trade off 20 to 30 percent or trade at a discount to their growth rate, you had that with Uber at the beginning of the year. You had there with Google when it was trading at 15 times earnings. If you got a high-quality company that's generating earnings in line with or faster than the market, but trades at a discount to a market, that to me is dislocated. There's a little bit of art in there. There's a lot of science behind what's dislocated. So, yeah, stocks that are generally trading well off their highs or their recent highs. And there's just not that many of those in the internet space, we're broadly in tech right now. Does the brief Amazon Web Services outage that you referenced that we've talked about, does that change anything?

I don't think we know yet. Amazon's had, AWS has had large outages before in the last few years. A year ago, they had a seven-hour outage. I don't think this is going to be as long as that, but, you know, the AWS is so key to so much of Internet infrastructure that a lengthy outage like this, you know, in a time when AWS is perceived to be losing share, and it is losing share, other names like Google Cloud and Azure, you know, this certainly doesn't help. So in order to win that incremental client, they better recover fully and quickly.

So at the margin, it makes it a little tougher. Listen, stock's not impacted at all at least. I mean, I shouldn't say that. It's up 1.3% right now. Maybe it would be up more. But for this, you heard our kind of fun exercise in the segment before we talked about some of the rare earth. But we highlighted Apple and Nvidia. We weren't picking on those companies.

They're just some of the biggest in the world. And they're in the news, so he threw them out. Is $123 million in valuation per employee? I mean, obviously, everybody needs to raise their mark, but like, does that trouble you at all? Sure, it does. You know what I've focused on, though, is the first I

focused on the fundamentals. And look at what's happened to revenue per employee and to operating income per employee over the last couple of years. I referred to it as ROAI, return on AI spend. And if you look at the four major hyperscalers, Microsoft, Amazon, Google, and Meta, they've inflected up. Like, their revenue per employee all of a sudden gaped up, beginning in 23, and operating income per employee gaped up. Now, there's a lot of variables that go into that. And part is that these companies have just gotten much more

aggressive about managing headcount. But there's no doubt in my mind that you've seen these companies deploy AI and it's materially improved the productivity of each of their employees. So I look at the fundamental trend first, and then when it comes to the market cap, you know, I could do a lot of funny things. Look at the PE. And if I see a name like a Google and a meta trading at a modest premium to the market for what I think are kind of enduring consumer utilities, I think valuation is very reasonable. So I'll stick with my guns on those. I don't, I look at these, the major tech names. I don't see it, I don't see the 50 to 100 PE multiples or higher that I saw way back in the dot-com bubble. No, and I think if I was going to take the other side, if somebody said to me,

What's the most bull case for any of these companies? Because everybody's always trying to find holes, right? So let's take the other side. I guess my answer, Mark, talking to smart people like you and reading your great work, is that these companies are not just U.S. companies, the exception of some China issues, these companies are kind of running the world, right? I mean, Europe really doesn't have any of these types of companies. China's got kind of doing its own thing, but the alphabets, the Microsofts, the metas,

Amazon's, even the apples in China of the world, the NVIDIAs, these are the global winners. This is not an American story. No, far from it. I think most of these companies are generating half of their revenue, half of their profits from outside the U.S. The real competition is usually between them. I mean, the extent that AWS has lost share the last couple of years, and it has. It's lost it to Azure, first and foremost, maybe to Google Cloud at the margin and maybe to Oracle, too. of the competition is within these companies.

And now the biggest new competitor in private markets is this Chachy BT, OpenAI. We just published a report on it this weekend. I mean, that's a company that, in one hand, poses existential risk to Google. And at the other hand, highlights what I think is an amazing opportunity, if Google gets Gen.A.I. right. And some of the things I'm seeing with Gemini tell me that this company is really woken up. And I think they're doing some really amazing things in terms of regaining share with Gemini. So if they continue to do that, there's a lot of upside to Google even from here.

Wow, a lot of upside to Google, even from here. Doesn't sound like you think AI is going to kill the search, Mark. I don't think it will. Yeah. Well, the market clearly right now doesn't either. Mark Mahaney, Evercore ISI, head of internet research. Always a great interview, Mark. Appreciate your time. Thank you very much. Thank you, Brian. All right, thank you. All right. Let's get now over to McKenzie Sigalos for a CNBC News update. Hey there, Brian. The Coast Guard announced a surge in operations today on the Rio Grande River in eastern Texas. The agency says it will deploy additional response boats, shallow watercraft, and other assets along 260 miles of the river as part of Operation Riverwall. The surge comes after President Trump declared a national emergency at the southern border on the first day of his second term in office. New data suggests the September suspension of late night talk show host Jimmy Kimmel led to a spike in

cancellations for Disney Plus and Hulu. The analytics firm Antenna says the cancellation rates for the streaming services jumped from 4 and 5% respectively in August to 8 and 10% in September when Kimmel was taken off the air briefly over comments that he made in the wake of Charlie Kirk's assassination. And federal prosecutors may move to disqualify the lead counsel for former FBI director James Comey in his obstruction case. In a court filing, they claim Pat Fitzgerald leaked classified information to the press following Comey's 2017 firing.

Comey's legal team calls the allegation provably false. Brian, back to you. All right, Mac, thank you very much. All right, coming up, we know that America needs more housing, but how do we build it and in a more climate-friendly way?

We'll talk about just that. Next. All right, welcome back. Home building. Not exactly a climate-friendly process from materials to emissions, cutting the carbon footprint can be costly. But new technology is

trying to solve all those challenges. Diana Oleg has the details in her continuing series on climate-related startups. Diana. Well, Brian, let's talk about manufactured housing. These are homes built in a factory. It's been around for more than half a century, but hasn't really adapted beyond large-scale communities to small infill areas with unique building codes, the type of construction that often needs to happen after a natural disaster.

This climate-resilient triple condo wasn't built on this Boston. Street and it wasn't built just by humans. It was built in a nearby micro factory using robotics. Boston-based startup reframe systems is starting small with a big idea. You actually need to invent a new manufacturing system where you can produce different types of homes that meet unique side conditions like the one behind me, but also be able to produce these with really low fixed costs. NTN and his co-founders were former leaders at Amazon Robotics.

They're now using small local factories to build climate-resistant, homes faster at 35% lower cost and with 10 times fewer carbon emissions and less construction waste according to Enti. How? Design a system that allows us to produce any home that can fit that site for the least amount of architectural hours and enduring hours needed. So this is where our software and AI comes into play. Because they're built in a factory with robotics.

Enti says the homes are tighter and thus more energy efficient and fire resistant. Reframe currently has one micro-factor. one micro factory in Boston and is planning another in Southern California, where the recent wildfires in Los Angeles have homeowners like Jonathan and Marisol Talbot scrambling to rebuild a fire-resistant home and do it fast. When you think about, you know, building 8,000 homes all at once, the idea of building one outside of the area and bringing it in just seem to make a lot of sense to me. We've got our local codes and they're exceeding all of those codes.

It's not a matter of, you know, we just need to check a box here. Reframed Systems is backed by Eclipse, VOLO Earth Ventures, mass mutual catalyst funds, cubit capital, and planetary health at RA Capital Management. Total VC funding, close to $31 million. Now, there are others looking to innovate in construction and climate resilience, namely 3D printing builders like ICON and Mighty Builders. But there is definitely room for competition, given the number of, of homes needed to be rebuilt. Brian? It's a cool story. What about the cost? Are these homes,

like, way more expensive than sort of a stick-built home? They're actually way less expensive. In fact, the company was telling us that in Altadena, the average price per square foot is going from $600 to $800, whereas they're building these homes for about $450 per square foot. And they say they can bring down that cost when they get that new factory put up in California, because right now they're building it in Massachusetts, shipping it across the country. And so there's that cost for shipment that could go away once they get the new factory. Oh, really interesting stuff there.

Maybe changing building forever. Diane Olegh, thank you very much. All right, coming up, folks, can you identify this mystery chart? It was super red hot until recently a little bit. The name ahead. All right, welcome back at his power check time. By the way, the entire stock market could be a power check. today because we're pretty much just on session highs. Nice start to the week. All right.

We've got to start this segment with your mystery chart. And yes, it is Robin Hood. Robin Hood surging more than 400% in the past year. So let's talk more about that and more with Ava Ados, chief investment strategist at ER shares. Eva, welcome. Good to have you on Power Lunch. All right, we could kind of go on trading, crypto trading. So let's start with Rob. Robin Hood, obviously just an unbelievable year. What is your take now? We like it. It's one of our favorites. In fact, we believe that the next bank won't be a bank.

It will be an app like Robin Hood, a super app. And Robin Hood is a great example of showing that in the future, the financial powerhouses will not come out of Wall Street, but out of Silicon Valley. This is a company that went from $8 billion to $120 billion in a couple of years. It just joined the SNP 500. And when it comes to its size, it's now equal to Capital One. It's equal to UBS, 1.5 times Boney Melon, and four times State Street. This is amazing to see a company that just got started to reach that growth.

It's a super up. It's not just trading. This is a company that allows you to have a whole financial platform in your fingers, and you can trade, you can access credit. It has crypto trade. but it also has predictive markets, which is an area that we think is going to grow tremendously. Just since February, Robin Hood had 4 billion event contracts, and that's a great area for them. In Q3 was the strongest for them, and that shows in their fundamentals too.

Their net margin is now 50 percent. It's four times its peers. We like it. We think the future is Robin Hood. It's amazing. People used to poo-poo. And when I say used to, Eva, I mean like last year or two years ago, sort of poo-pooed what they call events gambling, you know, who's going to win this election,

what's going to happen over here. Now it's being traded like stocks. All right, let's stay with trading and the crypto future, just referenced crypto. Coinbase up next, that stock has doubled in the past six months, but you and your firm still think this is a buy. How come? Yes, for sure. Now they have the base L2 blockchain and that's changing the game.

Now, coin is not just the crypto platform. It has become part, an actual part of the infrastructure, and a significant part. So it's now the largest crypto chains in the U.S., but their business model has shifted from pure trading to now subscription and stable coin and custody. In fact, BlackRock and Fidelity both use coin for their custody. So there are many traditional old school companies that have engaged Coinbase. And so the next frontier for them is tokenization. That's another area we'd like, so we like prediction markets and we'd like tokenization. And the reason is this is not an area measured in the billions.

It's an area measured in the trillions. This is going to be a game changer for them. And now we also have regulatory clarity. The new administration is supporting this. And as a result now, coin is back to its pre-2020 levels. If you look at its revenue growth is 50% compared to 13% for the rest of the category. and it's growing in a very fast rate. All right, so we're going to round out now, Ava, the trading trifecta, as I will call it.

Interactive Brokers shares down, they were down a little bit over the past week, but the stock up today, and here's what's amazing about Thomas Petterfee's interactive brokers. Net income has more than doubled in five years or three years from $1.8 to $4.1 billion. This company is printing money, Ava. That's right. Their net income, as you said, more than double, their revenue more than double two in the last three years. And in the last five years, their top line went from 85 to 92 percent because they're cut. Even though we have inflation, they cut their SG&A costs from 24 to 16 percent.

And as a result, their earnings from continuing operations have gone from 52 to 69 percent. And that 17% growth is very significant. It's a huge number. We see an increase in accounts. We see an increase in trading volume. We also see an increase in the amounts people have deposited than IBCR. It's obviously smaller than Robin Hood. It's one-fourth its size.

But it's more global. It has more of an institutional orientation. It's different. We like both for different reasons. Yeah, I tell you what, everybody seems to like everything. Robin Hood, record volumes, record stock, interactive broker soaring, Coinbase is up. Interest in stocks, crypto and event trading has never been higher. Truly a remarkable time.

Ava Ados, ER shares chief investment strategist. Ava, thank you very much for coming on Power Check. Appreciate it. All right. Wow, folks, really, it is just record levels of interest in buying everything. All right. Next up, the names that maybe too many people. are buying up.

We're going to look at some CNBC Pro data on stocks that some may say are overbought. That's next. All right, we're almost done, but not quite, because we've got a nice stock screener from our friends at CNBC Pro for you today. By the way, if you haven't signed up already, what are you waiting for? Go to CNBC Pro and sign up. That team, taking a look at the most overbought stocks in the market today, they get that based on what we call the RSI or relative strength indicators.

topping the list, here you go. The most overbought stocks? Well, you got mining and machinery company Caterpillar, Bungi Global, one of the biggest soybean makers or producers in the world. You don't make them. You grow them. AMD, trucking company J.B. Hunt and Micron Technology. These names are all ones that have been bid up in recent weeks due to a specific positive catalyst.

For example, Caterpillar has been seen as a beneficiary. of the AI data center build out. You want to build a giant building? You've got to move a lot of earth around. Bungi popping Friday after a possible ban of U.S. purchases from Chinese cooking oil. AMD and Micron, obviously. They've been attractive semiconductor stocks for investors trying to play the AI boom from all sides. J.B. Hunt.

This is interesting. Trucking company shooting up after reporting strong earnings last week. In fact, it was the best performing stock in the S&P last week. Now, many of these names have also been trading well for the entire year. AMD, Caterpillar, Micron, Bungy, all pacing, outpacing the S&P 500 so far this year. The one outlier, the one that we just talked about, J.B. Hunt. It is a trucking company. It's down just fractually off about 2% this year with that big pop,

narrowing the gap. We'll see if J.B. Hunt can in the year on a positive note. Really interesting mix. Tractors, tractor trailers, soybeans, and semiconductors. It's made those four up, but they kind of go together. All right. Bitcoin, by the way, with a nice pop today. Bitcoin well off its record highs of $127,000 and change. It back, I think, on August 17th or 18th, don't at me, but it's right around there. We were earlier today back above 111,000, just below that right now. So kind of a rough run the last couple of weeks, trying to gain a little steam today. And guess what? All the Mag 7 are higher right now.

Markets are up, NASDAQ's up, mag 7's up, led by Apple, 4.5%. There is a lot of stocks that are on fire. And guess what, folks? This show is done. Closing bells up next. But I will see you tonight on Fast Money, 5 p.m. Eastern Time. It's going to be a big show. Look forward to seeing you there. Closing bell. Up right now.