Power Lunch - Self-Driving Car Backlash, Super Bowl Ads & The Biden Campaign Joins TikTok 2/12/24

Episode Date: February 12, 2024

CNBC’s Tyler Mathisen and Kelly Evans take you through the heart of the business day bringing you the latest developments and instant analysis on the stocks and stories driving the day’s agenda. “Power Lunch” delves into the economy, markets, politics, real estate, media, technology and more. The show sits at the intersection of power and money. “Power Lunch” gives viewers a full plate of CNBC’s award-winning business news coverage, plus a healthy dose of personality from the show’s anchors and the network’s top-notch roster of reporters and digital journalists. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Good afternoon and welcome to Power Lunch alongside Morgan Brennan. I'm Tyler Matheson. Good to have you with us. Stocks smashing more records today. The S&P 500 soaring past 5,000. Nasdaq getting close to its all-time high. And it is big tech leading the way in Vidiya of nearly 20% Morgan in February. Yeah, fresh high for that name. Speaking of the stock, which drove WWE superstar Charlotte Flair to a runaway victory in the CNBC stock draft. She's going to join us a little later to claim her title. But first, let's get a check on the markets, which is a little bit of a mixed picture. You can see the NASDAG basically just below the flat line right there, as it did kiss a new 52-week high earlier in the session. S&P 500 firmly above 5,000, 5034 there, and the Dow is actually the outperformer up half a percent today. Speaking of today's gains in NVIDIA, moving it past Amazon is a fourth most valuable

company in the world. That's now behind Apple, Microsoft, and Alphabet. The NVIDIA effect having a huge impact on Beamer imaging today. The two companies partnering on a new standard for videos. And as you can see right there, Beamer is up, wow, 800%. Oh, wow. Those numbers like that calling to mind the 1990s.com mania. But is it just the beginning as in 1995 or are we closer to the end of the cycle?

More like 1999. Mike Santoli joins us now from the ever. NYSE for that comparison. Take us through the numbers, Michael. Yeah, Tyler, should start by saying none of these historical analogies ever matches up perfectly. It's not going to be a pure rerun, but it's instructive and maybe interesting to go through why there's so much chatter, for example, about 1999 echoes in the last few weeks. Now, this would, of course, be a tech-dominated, relatively narrow rally to a new record high. That's what happened throughout the course of 99, even before that, actually. So the concentration of this market

maybe in a late economic cycle, it's causing people to believe that things like Nvidia looks similar to the parabolic charts of Cisco systems, for example, into the peak back then. 1995, on the other hand, is really the perfect soft economic landing. 94, very frustrating corrective stock market year. The bond market crashed because the Fed was tightening aggressively. Fed rhetorically pivoted in early 95. The stock market took off.

It would only trim rates a little bit. We got a productivity boom. You know, eventually you got the big. internet revolution and the stock market rally to go along with it. But you had years ahead of growth in the economy and the market. So I would argue that the 99 comparisons just don't really add up in terms of magnitude and speed of the advance in the market, as well as really the speculative activity, the frenzied retail investor activity. We're not really there. We probably don't get there. And I don't think that means you can't have the market be overheated and overvalued in certain

pockets, as you guys have been talking about with the moves in Invidia, in some of the smaller and lower quality tech stocks as well. So probably somewhere in the middle and arguably we're not really at the very, very beginning of some kind of multi-year employment cycle like we were in 95 as well. So it's worth kind of figuring out which threads are showing up today.

My memory is a little faulty, but as I recall in the mid-1990s, toward the late 1990s, there were a lot of stocks that were participating in that rally of companies that just didn't make any money at all. They weren't profitable. That's not the case today, is it?

Certainly not with the NASDAQ now versus then. Back then the NASDAQ really was largely emerging growth, and then even the profitable companies like Microsoft traded at much higher valuations than right now. And yeah, I like to point out in 1999, there were 400 IPOs, almost none of them had profits already, and the average one day, first day pop in the stock was like 90%. So we don't have anything like that kind of frenzy going on right now. That doesn't mean the market, you know, cannot. give back some here. All right, Mike Santoli, thanks very much. And despite stocks hitting new highs

today, both the Dow and the S&P, a set fresh interday records. My next guest thinks the rally led by a handful of big tech companies is too narrow. He favors sectors with more reasonable valuations and macro tailwinds, and he brings us some of his top names. David Speakers, Chief Market Strategist at Turtle Creek Wealth Advisors. David, as always, good to see you. Are you concerned that the market has too much speculative froth in it or is something else bothering you? Well, the last conversation you had was very instructive. If you'd ask me six months ago, I'd have said, yeah, this feels a lot like 99. But as we've moved further through the cycle, it is starting to feel more like 95. This immaculate disinflation that's coming about without a recession

and it doesn't look like we're going to have one now is clearly fueling the market. So broadening out would be nice. Generally, in a recovery, you have small caps. outperform. We're not really seeing that yet. But you know what? Turn back the clock a year. Let me tell my clients to load up on the mag seven. I'd look like a genius. But today it's really, really hard to bet against this market. And I think you have to be invested. Have to be invested. But you are steering a little clear of the mag seven and toward more sort of consumer discretionary or stolid names like Visa and Caterpillar. That's right, Tyler. At this point in time, when you're looking at companies,

in the market and what has the best opportunity to outperform over the next 12 to 24 months, you really have to consider valuation and you have to consider macro tailwinds. Now, a company like Visa has tremendous macro tailwinds because of the broad consumer strength, not only in the U.S., but we're starting to see it around the globe, consumer spending is going to continue to be strong. Visa will benefit from that. They're going to grow earnings at 13 and 14 percent this year. A very, very solid, consistent grower. Caterpillar is a more defensive name, but they're going to benefit from increased demand for commodities. And we're going to see that as EVs start to gain traction more and more. And as we see global economic growth rebound, particularly coming out of China,

so a couple of names that are not represented in the MAG7, but both had really good recent quarter earnings results and have a lot of optimism around earnings growth over the next 12 months. And of course, we love when folks like yourself named names. But just to go back to this idea of the rally needing to broaden out further, what is going to be the catalyst for that to happen? Is it is it rate cuts? Is it the dollar starting to weaken at some point, which I know is related to rate cuts? Is it something else? That's an excellent question, Morgan. So what we saw on the fourth quarter was, is when the Fed started to take more rate cuts off the table and really started to pivot, you started to see the market broaden out. And I think then it was more, okay,

we can start buying some of these names that don't have a strong earnings growth opportunity and that maybe have a little more of a longer-term play in them because the Fed's going to help us out. And so I think that's part of it. Once the Fed starts cutting rates, what probably won't be until May or June, I think you're going to see more optimism around the broad market in general. And you won't see people wanting to own the names that have outperformed over the past 12 months and that have that really, really strong earnings growth. They're going to see more demand for a variety of companies in an environment where stock picking is going to pay off. You say you'd like to see small caps start to participate more.

Do you think they will? Well, if they don't, Tyler, that's going to be a red flag. Because one of the things that's going on right now is we're seeing interest rates rise more than anybody expected. In fact, big part of the bullish story is lower interest rates. We've seen three and a half percent 10-year yield expectations from a variety of places. And we think we know the Fed is expected to cut rates three, four, five times. that needs to happen. And if that happens, then we're going to see a true recovery rally.

And in a recovery rally, investors seek more risk, kind of like what I was saying earlier. They want to own more risks, small caps, emerging markets, some of these more risky parts of the market should benefit. And that'll be the sign that we are truly in a recovery rally. And the investors have a lot of confidence about what's coming up. David, thank you, as always. Good to have you here. David speaking.

Thank you, Tyler. Well, the Treasury Department just releasing federal government budget numbers for January. Megan Casella in Washington now with the details. Megan. Thanks, Tyler. That's right. Treasury is out with new budget data this afternoon, and it shows the monthly budget deficit for January came in at $22 billion. That's 43% lower than the same month a year ago. For the fiscal year to date, however, the deficit is rising. It's up 16% from the same period a year ago. Taking a look at January specifically, the government's receipts set a record high. Receipts totaled 477 billion.

last month, that's up 7% from the same month last year, and it's mostly due to 14% more revenue coming in from corporate taxes. Government outlays were up just 3% from last January. A major line item here was interest payments on the public debt, which were up 35% year-over-year. But that was offset by a drop in individual refunds, which were elevated last January because the IRS was working at the time through a pandemic backlog. Big picture, guys, the government's budget just keeps growing for the fiscal year to date, receipts at $1.6 trillion and outlays at $2.1 trillion have set records. Guys, what's a conversation we've been having and we'll continue to have in the reason

things like Treasury refundings become market-moving events that everybody's watching. Megan Casella, thanks for joining us with those latest numbers regarding the deficit. Coming up, a TikTok lip-lop. President Biden's reelection campaign debuting an official TikTok account, despite the app still being banned on most government devices over China concerns. Plus, another Chinese platform getting some publicity. Tamu going all in on Super Bowl ads. We're going to explore how they and other retailers may benefit from the big game.

Power lunch. We'll be right back. President Biden's re-election campaign creating a TikTok account to reach younger voters, but the app is banned on government devices because of security concerns. Let's tackle that topic in today's tech check with Deirdre Bosa. Hi, Dee. Taylor, I don't know how active you are on TikTok. but I believe we have some video that we can show you. This was the Biden administration's first

post on the platform, captioned, L.O.L. Hey, guys, and it's him answering. Here you go, a series of questions, like, does he like games or commercials better? Which Kelsey? He chose Mama Kelsey, by the way. Very Gen Z TikTok forward. And as you said, Tyler, it comes amid all of these security concerns and an actual ban of TikTok on government devices because it is thought that TikTok is owned by ByteDance, a Chinese company. Chinese companies have to share their data with the Chinese government. So the administration says that, you know, they're doing it in a secure way, but it really tells you the lengths to which the Biden administration is going to reach young voters.

The base on TikTok is 150 million Americans, most of them younger. And maybe explains as well why we haven't seen a TikTok ban so far, despite this really being a bipartisan issue. It's incredible to me that we're seeing this, because to your point, dear, it is young folks that are on TikTok, and we know that that is dominating in terms of social media and engagement with those folks. But we also know that in what is potentially a Trump Biden rematch, China is very much on the docket with both of these presidents or potential presidential candidates, I should say, looking to be talk tough on it as well. there's such a disassociation here because before TikTok, there wasn't really a Chinese app that was really popular here in America. TikTok was the first to do so.

I think a lot of users still don't really understand that this is a Chinese company and it potentially shares data with the Chinese government. You've seen the rise of other Chinese apps as well, like Tammu, Tammu, excuse me, as we learned in the Super Bowl, and Shian. Those have also become very popular here. and I'm not sure how much people associate it with China. And maybe that is what the Biden administration is hoping as well. They can talk out of both sides of their mouth. They can post on TikTok to reach those younger viewers while still sort of highlighting the risks of it

and being a China hawk into lawmakers and to people who do understand that connection. All right, Deirdre, thank you very much. Deirdre Bosa, reporting on TikTok and associated websites. Thank you very much. All right, another Chinese company made a big splash during the Super Bowl, and that is Tehmu. We just talked about that briefly. But while a lot of people are talking about the company today and how to pronounce it, do Super Bowl ads really drive traffic?

This is always the question, especially when you see the numbers paid for those ads continue to tick higher. Courtney Reagan joins us with that story. Hey, Cort. Hi, Morgan. Yeah, Tamu just like Taylor, right? I mean, that's the easy way to remember it for me. It was the second year for Tamu actually running an ad in the big game last night. actually had three of them during the game two afterwards.

And according to the vice president of research, Tom Grant at Apptopia, TAMU apps did see a 34% download increase on Super Bowl Sunday. That's the fastest day-over-day growth since November. However, this year, TAMU saw fewer new users download the app on Super Bowl Sunday compared to last year's Super Bowl Sunday when they ran the ad for the first time. Captify, though, did show online searches for TAMU grew 263% compared to last week. so it looks like it did drive some internet traffic. Now, Elf also advertised during the game

for the first time last year, and its app downloads grew 63% this Super Bowl Sunday, so its second Super Bowl ad compared to last. Albeit off a small base, again, this is according to Apptopia, and then online searches for Elth Cosmetics grew 52% compared to last week, according to Captify. So Etsy and L'Oll's Knicks advertised

in the Super Bowl for the first time. Last night, Nick's makeup owned by L'Oreal, saw 63% more online searches compared last week, according to Captify. Etsy's search data fell 90% from last week. Mountain Dew Baja Blast, that took the top search data spot with 550% 553% growth over last week. Back over to you guys. I have to say I saw those TAMU ads, and I knew about TAMU,

but I was rather surprised that they were as frequent an advertiser last night as they were. I think they had three, as we say earlier. Three different ads. And they stood out. And then two after. Yeah, they did. They did. I mean, I think it's very interesting that, again, you have this other Chinese company that's really sort of taken a lot of our attention here.

I know that Dee just talked about Xi'N and then obviously TikTok. Pretty fascinating. They did stand out. And clearly some people are at least interested in learning more with the app downloads and the online searches. We'll see if that can translate to sales based on what they may or may not review. to us, of course. Tamu as in Taylor. Exactly.

That's a good way to remember. Very good way to remember. You know what I'm wondering, Courtney? If it's not you, I wonder who is going to get the big interview with Taylor and Travis? Oh my gosh, right? Can you imagine that is the big one? The competition for that behind the scenes. I've been wanting to meet and interview her since she was 15.

Yeah. Gosh. Well, she's interesting. She's good. She's good. All right. Thanks. Courtney.

head. The NFL has a new Super Bowl champ. CNBC has a new stock draft champion. WWB wrestler Charlotte Flair, body slamming the competition. She will join us when Power Lunch return. Welcome back to Power Lunch. Stock's breaking records today while bond yields are slightly lower. Let's get to Rick Santelli in Chicago for more. Hi, Rick. Hi, Morgan. Indeed, you know, with tomorrow's CPI coming out, you could see so many things going on in the markets that are a bit unusual. Let's start out with year-over-year CPI core. Hovering just below 4%.

You can see on this 10-year chart that even though we've made significant progress, we want to see exactly how much closer to the 2% mark we're going to get tomorrow. And do keep in mind, many have been watching and reading all the Fed Whispers really advertising about the annualized rates, three months, six-month,

and how they're going to be so substantially lower on these year-over-year numbers tomorrow. So it's going to be an important, to see if the words match the numbers. And we had benchmark revisions last week. And just to point out, if you looked at the actual CPI index for Core, which was non-seasonally adjusted, it's at all-time highs. Now, year-to-date of two-year, year-to-date of 10-year.

You can see both are hovering at the highest yield closes for 2024. And that's because on Friday, every maturity but 20-year and 30-year bonds closed at fresh 20-24 high yields, and we're only down a smidge across the curve today. And maybe the most telling sign of how the markets are so focused on inflation numbers tomorrow, if you look at a week plus six sessions of the 2s 10 spread, it's basically settled within one basis point of minus 30 the entire run. Tyler, Morgan, back to you. All right, Rick Santelli, thank you very much. Shares of Diamondback Energy jumping as the company agrees to buy Endeavor for nearly $26 billion. Big price there. This continues the consolidation we've seen in the

Permian Basin. Pippa Stevens here now with more on the deal. That's where the action has been. Yep, the Permian Basin is where all the action has been in what's been a record year for energy M&A. And so this deal again, Diamondback buying Endeavor, energy for 26 billion is once again all about securing that acreage, especially in the Permian. And so Endeavor has a footprint in the Midland Basin, in the Permian Basin. So a reminder, there you see. see, Midland is on the western, West Texas portion of the Permian, which of course extends from Texas to New Mexico. And Rob Thummel at Tortoise Capital called Endeavor's acreage some very good, sorry, some of the best real estate in the best neighborhood. And so they have very attractive

assets, which was why they were an attractive opportunity. Also, Endeavor is private, and that's notable here because it comes at a time when private players have actually been able to increase their output, while public companies haven't, because they're beholden to shareholders, who don't want drill, baby drill, and want their CAPEX to be in check. And so the private players are now about 35% of total U.S. oil output, according to Enveris. And so it's a sizable number there, and they are a sizable player. Have the other recent purchases been of private players? Hess, was Hess was private?

No, Hess was public. Yes, Hess was public. But some of the others were private? Yeah, so we saw Oxy buying Crown Castle. That was a notable one. EPA bought somebody. Yeah, they bought Calum Petroleum. Exactly.

There you go. Oh, look at that. We ask you show. Yeah, all the deals there. But so once again, you know, Exxon didn't have the best acreage in the Permian. Pioneer did. And so that's why that was an attractive target. And the biggest.

Exactly. And for Chevron, Hess has Guyana. And so not exactly in the Permian there, but once again, a focus on how can you diversify your portfolio. How can you have the best player in each of these specific regions? All right. Lots of M&A activity. We'll see what's left. And we know you're going to cover it closely.

Pippa Stevens, thank you. Well, let's get over to Julia Borson. Now for a CNBC News update. Hi, Julia. Hi, Morgan. Former President Trump faces a deadline today to ask the Supreme Court to further delay his trial on charges of plotting to overturn the 2020 election. It comes four days after the justices heard a separate Trump appeal to stay on the Colorado presidential ballot. And a potential Valentine's Day strike for ride-sharing drivers from Uber Lyft and DoorDash. That's according to driver advocacy groups who say they are striking for fair pay and will

midday airport rides in 10 U.S. cities. Drivers who are considered independent contractors have long accused the platforms of taking disproportionately high commissions. And just in time for Valentine's Day, cocoa prices are at record highs. That's a headache for Hershey, which has warned about weaker profits this year. Coco futures have doubled over the past year, with bad weather and West Africa being blamed for damaging crops. And according to analysts, with inflation still top of mind, many people are pulling back on spending. Oh, I hope people aren't pulling back too much on chocolate this Valentine's Day. I mean, I'm just looking at this video and it's making me want some right now. We'll see. Julia Boreston, thank you. Me too.

After the break, San Francisco Citizens setting a self-driving Waymo vehicle ablaze. A billionaire running Tesla boycott ads on Super Bowl Sunday and anti-autonomous sentiment. It seems to be growing. We're going to discuss that on the other side of this break. Welcome back to Power Lunch while some companies including Apple are ramping up autonomous driving efforts in California. There's a growing backlash against existing vehicles. This weekend in San Francisco, a crowd vandalized, there you see it, a Waymo self-driving car and set it on fire. It's not the first time people have attacked a self-driving car, but this incident may show growing public hostility toward them. And last night, the Safety Advocacy Group, The Dawn Project, aired two Super Bowl commercial,

in some major markets, highlighting the supposed dangers of Tesla's self-driving software. The group calling for the American public to boycott Tesla following a series of fatal crashes. We should note we did reach out to Tesla for comment but have not heard back. Here now is Dan O'Dowd, a tech billionaire and founder of the Dawn Project. Dan, welcome. I should point out in the interest of full and self-disclosure that I am an owner of a Tesla vehicle and Model Y. Are we talking about accidents caused by the full self-driving software or the autopilot software, which is something less than the full self-driving or both? Both are problems, though our focus has been primarily on the full self-driving, which is really the modern product. The autopilot product is essentially obsolete.

It comes for free. It's not a great differentiator. It really, we've tried Ford and GM systems, and they're comparable in that regard. The full self-driving is the problem where it tries to work on all roads, but it does so very poorly. You get in that car and you drive for a while, turning on FSD, full self-driving, and after a while, it will do something crazy. It's right there in the manual. It tells you it might do the worst thing at the wrong time, and that it does. It will steer into oncoming traffic, try to crash into something, drive the wrong way on a roundabout, something very, very scary.

Where is the federal government on this, the National Transportation Safety Board, the Transportation Department? And where has Tesla failed to act? Well, NTSB is furious about this. The director of NTSB said something like, do they not care about how many people have died? And they've said this is completely ridiculous. Then why don't they shut them down? Why don't they shut them down? Sorry, NTSB has no power to shut anything down.

That's NTSA, the other agency that has power. NTSB is an investigative organization. They look at crashes. They write reports and say why they happen. But they have no regulatory authority. They can't shut it down. Only NTSA can. And they have many ongoing investigations.

I've heard they've had 20 or 30 ongoing investigations. They have made some reports, but they've been all been very mild. So why doesn't NHTSA act? They just haven't, they're not, they're not agreeing or they're not, they're just not acting because of bureaucratic, um, um, um, inability to act or what? And then, and then Tesla, as I understand it, did a major recall, uh, of two million plus cars, uh, in, I think it was December to address the deficiencies, some of the deficiencies I, I'd gather that you point to. Uh, right. So NHTSA has all these investigations. If you ask them, actually, Senator Blumenthal sent them a letter asking where they stood on this?

When are they going to be done? Have they reached any conclusions? Their answer is always the same. We're in the middle of an investigation. We can't comment. We don't comment. When you get the report. When we're done, we'll get a report out.

You'll have a report. That's simply their answer. So we have no idea where they are in their investigation. The recall recently was very mild. part of the issue. A key issue is that, which we highlighted one of our Super Bowl ads, is that there have been a number of lawsuits of people who died driving with autopilot. And Tesla has escaped liability.

They've been sued a bunch of time. They escaped the liability by saying, well, right on page 119 in the manual, it says that you can't use this on roads with cross-traffic or stoplights or anything can only be used on a freeway. But most people didn't read that paragraph. don't know that, and they use it on things which are not a freeway, and then many of them have crashed and died. NTSB, seven years ago, almost eight years ago, said, put in, make it so the autopilot cannot engage unless you're on a freeway. They know that. They have mapping software, right, drives you all around, so knows what a freeway is and says, I'm not on a freeway,

and just disable it. It won't turn on. They've refused. Then more people died in 2019, and TSB said, again, we told you three years ago to make it so it will not operate. Let me just jump in here because as an owner of one of these cars, I know you're probably much more familiar with these cars even than I. My autopilot will not engage on residential streets, for example, which is something different than a limited access freeway, number one. Number two, there are lots of roads that go at high speed that have side traffic coming into them. I think of places in Florida where those kind of roads are everywhere. But mine won't engage on residential streets. It will only engage with their proper line markers.

So like a residential street, it won't engage. But if you get on a highway that's got some traffic light or cross traffic, places where people go across, it will engage and run. And when it comes to a truck, like basically stopped or stalled across the freeway, it will just smash into it. That's what's happened on multiple times. All they have to do is tell it not to turn on unless it's on a freeway. I could write that software in days. I could fix it if they want me to fix it. They refuse to fix it, not they don't know about it.

They've said no. MTSB has said, do it. They just ignored that. That's why people have done. Simple solution, trivial fix. Just do it. Dan, it does raise a question because you're also the president and CEO, the founder of Greenhill software, which I know some folks have.

pointed out, sells software to Tesla competitors, like, for example, MobileI. Why pick this fight with Tesla specifically? What's the driving force for you behind it? Well, this, there isn't, I've never seen software from a company, a big company, a substantial company that is this bad. It's simply, it's terrible. If you get, I guarantee you, if you get in a car with me and we'll go for a drive, at the end of it, you'll tell me this is terrible. Why is this on the road? We've done that with our congressmen and our state senators. We've done it with journalists.

We've done it with everybody. It will try to kill you. It's amazing. It will go past the school bus. We proved that. We showed the school bus, the lights are flashing, the sign is out. The kids are getting off the bus. It will just blow by that.

It won't even slow down sometimes. And we showed it would hit a child. We made that up. We showed that. We demonstrated that. We did a New York Times ad showing that. Dan, do you have financial stake in all of this? That's what I'm trying to understand.

Do you have a financial stake in all of this? Is there a business reason for doing this? No, this is just awful software. I started a project. It's called the Dawn Project about two plus years ago. And it's dedicated to basically finding and rooting out the software, the bad software that is unreliable, that is defective, that is running systems that millions of people depend on,

not just small systems and where don't care about your phone and your desktop. But these are systems like self-driving cars, like the power grid, big systems that millions of people depend on, and some run very bad software. This is the worst I've ever seen. Okay. This is the experimental baseline software that will try to kill you. And we sold it.

They sold it to 400,000 consumers telling them it will make them safer. Okay. Four times safer. And it does not make you safer. It drives like a drunk teenager. That is my best characterization. Dan O'Dowd, thanks for joining us. Good ahead.

Good be here. Still ahead. A new champion has been crowned, and no, we do not mean the chiefs. We're talking about the CNBC stock draft. We'll talk with 2023 winner, Charlotte Flair, when Power Lunch returns. Welcome back to Power Lunch. After nine months, today is the day. We crown a champion in the 2023 CNBC Stock Draft.

We tracked our 10 team picks. from April until Friday's close, and with the biggest average return is Team Wu. Wrestler Charlotte Flair, up 130% thanks to huge gains from Nvidia and META. She joins us now to discuss her victory in the draft and more. W.W.E. Superstar Charlotte Flair. I just have to start by saying, my daughter is your number one fan.

She actually asked for me to bring her T-shirt in today, just so I could show you that she has it and she wears it to school. Oh, this made my day. We'll have to get it signed. Well, so it's good to have you on the program. Congrats on being number one on the CNBC stock draft. InVIDIA and meta. I mean, we're talking about AI. Nine months ago, these stories were still just emerging. Why did you decide to pick both of these names?

And how do you like them now that they're up triple digits each? Well, I can't take all the credit. I happen to surround myself with a lot smarter people than myself, like my friend, Steve K. and Linda Pallonan. But with Navidia, AI is here to stay. They're the number one in the chip market. And with meta, they have matured a lot as a company. And not many tech companies can say that they're providing dividends to their shareholders for the first time. And I think it's obvious with how much they've grown. Yeah. And of course, we're going to get Nvidia earnings next week. So that's going to be a key one to watch, not just for investors in Nvidia, but also for the

broader market, given the fact to your point, it has been such a powerhouse in terms of the gains we've seen in things like the S&P 500 and the NASDAQ. Do you follow the markets more broadly? I guess what are your thoughts here as we do see record highs for stocks? Honestly, I leave it to Steve K and Linda Polonan. I can't take credit, but I think that we see what AI is turning into. And with meta, um, it speaks for itself. Do you, do you happen to own a portfolio of individual stocks or, you know, in your name and are meta and V-D-Intyre among the stocks you own?

I'm just curious. Yes, sir. Yeah, so you own, you own both of those stocks. So you've, you've not only talked to talk, you've walked a walk and put your money to work there. Good for you. Yes. We hear that you're recovering from an injury. How is your recovery going, knee injury?

I am. I'm six weeks out Thursday. I'm ahead of schedule and every day all I can think about is returning back to the ring, especially with all the excitement with Raw going to Netflix, WrestleMania 40 and Philadelphia. All I can think about is getting back and winning that number 15. Yeah, this is a big year too for TKO, which is the company now of the newly merged WWE and UFC. there's been the recently announced media deal with Netflix, which means that the streaming rights are going to move away from our parent company Comcast to Netflix starting in 2025. That's a big deal. And then, of course, the Rock joining the board of TKO and moving back into WW.

A lot of buzz there around the WrestleMania event that will be coming up in April. Your thoughts? Well, Netflix has 250 million subscribers. So it's only going to make WWE's content more popular. And WWE has always been revolutionary in whether it's raw, smackdown, our pay-per-view schedule and The Rock coming back, I think bringing more eyes to the product. I think sports entertainment is on a rise right now,

and it's just getting more and more popular every year. And I think Netflix is going to be huge for everyone involved within the WWE from talent to creative to everyone that works with the programming. I can't wait to see where it was. Yeah. I mean, there's a lot of buzz around WrestleMania coming into Super Bowl weekend, given the event we saw, given the Rock's role in all of that. I guess any sort of preview or thoughts on what we should expect?

I'm looking forward to seeing how it plays out. I hope that Cody Rhodes, who's right now supposed to face Roman Raines, I'm looking forward to seeing his story come to an end and win that championship. but with the rock being in the mix and the bloodline, I'm interested to see where it goes, especially being a legacy talent, myself, generational talent, having the rock back with his family just makes it feel even bigger for the company, for the storyline, for everyone involved.

Will you come back and defend your title in our next stock draft? It begins in April. I will come back and win my title. I love it. I love the deter. Maybe you're going to invest in Netflix. I don't know. you know, we'll figure it out.

But you're a fantastic athlete, by the way. I mean, just watching what you do. It's really something, man. And it clearly, a restrained personality as well. I'm not so restrained in the rain. I'm just kidding. This is why I really athletic, man. This is really athletic.

I truly believe is what separated me from when I started in 2005. The women went from being eye candy to legitimate superstars from main eventing WrestleMania to stealing the show almost every time. I, yeah, just being out right now injured with everything going on from Netflix

to WrestleMania 40. It's very hard to watch from the sidelines, but it just makes me work that much harder. Make you want to come back sooner. Thanks for being with us, and congratulations on winning the stock draft. Charlotte Flair.

Thanks for having me. You got it. Be sure to tune into WrestleMania 40, April 6th and 7th, live from Lincoln Financial Field in Philadelphia. That one is exclusively on people. Look at that piece of hardware that she's going to get. Look at that. Is that lovely? I mean, it's not a, it's not a championship belt. It's not a wrestling belt, but it's pretty, but it's pretty nice. It's very pretty. All right, see you soon. All right, still ahead. What's the Super Bowl without the ads? We'll trade some of the

companies behind this year's biggest commercials in today's three stock lunch. Welcome back. It's time for today's three-stock lunch. Today we are looking at some of the companies making a splash with their Super Bowl ads. Here with our trades is Malcolm Etheridge, CIC, a wealth executive vice president and a CNBC contributor. Up first, DoorDash in its ad. The company promising to deliver an item from every ad in the game to a sweepstakes winner. Malcolm, your trade on DoorDash. Yeah, so I consider DoorDash a hole. My big concern here is that they've kind of gotten too far out over their skis by the share price, I mean, they. And really, a lot of the positive momentum we've seen 20% year to date is probably based more on Uber's bang-up quarter than it is on DoorDash's

ability to continue to grow earnings. So let's switch and talk about Uber. What do you think there? Good quarter. You like to stop? I think goods and understatement, Tyler. I think their quarter was awesome. And I think one of the things that's lesser reported in there about Uber, they confirmed something that the airlines have been telling us for some time, which is that corporate travel is not on its way back. It's actually back here. And the reason I say that is because they focused a lot on the fact that luxury rides and also black car rides were up substantially. So I really like Uber going all the way through the remainder of this year based solely on that corporate travel. So they're selling more rides and selling higher priced rides, a good recipe. Absolutely.

And they also added a significant amount of new drivers to the platform, which is going to help keep costs low in that lower tier as well. All right. Finally, Squarespace, Martin Scraise SquareSpace Super Bowl ad. A lot of alien themes this Super Bowl commercial season. You put your phone down, pay attention, find the aliens. Malcolm, should we be paying attention to the stock? Yeah, so I like Squarespace.

I consider that when a buy primarily based on the acquisition of Google domains last year. I think that they'll be able to cross-sell and bundle additional features to that 10 million new customers that they acquired. And so from now till maybe September this year, because typically businesses keep their subscriptions for a year, not month to month. So it'll take us until about September to get to a year-over-year tracker. But I think Squarespace is going to do a great job of selling additional products to all of those customers they just took over from Google.

All right. Thank you very much. Malcolm Etheridge. We appreciate it. Coming up, things are looking pretty sunny for Jeff Bezos. The billionaires moved to Miami just saved him millions in taxes. We're going to share those details when Tyler returns. We've only got about two minutes left in the program and one big story you need to know about,

starting with Jeff Bezos's money-saving move. Robert Frank joins us with those details, moving from Washington State to Florida, Robert. Well, Tyler, a big story and a big number. So Jeff Bezos selling the first of that 50 million shares that he's going to be selling over the next year. Now, he's sold about $2 billion worth. In the end, over the next 12 months, he's going to sell about $8.5 billion worth of shares. So by avoiding that new 7% capital gains tax that they just started in Washington State, he is going to save at least $600 million in taxes.

And by the way, that number is based on Amazon share price, staying where it is now. If it goes up, that savings will be even more. So just to put it in perspective, just the tax savings that he gets from moving to Miami, he will more than pay for that new $500 million yacht just with the tax savings. He lived in Florida long enough to establish state residence there? I assume he has. That's the big, yeah, that's the big question I have, Tyler. You know, he announced it toward the end of last year.

Now, my guess is he probably started his official tax residency early, because as you know, you leave New York, California. Maybe Washington, the auditors there are not as aggressive, but you typically have to be somewhere at least a year to establish the tax residences. My guess is he already did that earlier by the time he announced it. He may have already received that residency. All right. We're going to have to watch this one.

I'm curious how much. I'm curious how much of this sale is going to go towards Blue Origin. Speaking of Florida and the space coast, Robert Frank, thanks for joining us. And thanks for watching Power Lunch. I'm going to see you at 4 p.m. Easter on overtime. We've got Bitcoin topping 50,000 today. we're talking to Michael Saylor of Micro Strategy. Stocks up 9% today.

All right. Thanks for watching, everybody.