Power Lunch - The 2022 Stock Draft 4/28/22

Episode Date: April 28, 2022

10 teams. 60 assets up for grabs. The 2022 Stock Draft is here. Our line-up: Actor Ryan Reynolds, Basketball Hall of Famer David Robinson, the St. Peter’s Peacocks student investment club, we have a Real Housewife of Atlanta, a Tik-Tok star, the former CEO of Macy’s and Delano Saporu. Kevin O’Leary, Stephanie Link and Tim Seymour make return appearances. Wait until you hear who’s swinging for the fences. Tyler and Kelly take us through the hour with Melissa Lee and Jim Cramer. The 2022 Stock Draft starts now. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Good afternoon, everybody, and welcome to the 2022 CNBC Stock Draft. I'm Tyler Matheson, along with Kelly Evans. Welcome everybody. Melissa Lee and Jim Kramer will join us as well in just a long. We've got a great lineup of competitors this year, as you can see them there over in the big wall. Lots of new faces this year, including Ryan Reynolds, you know him for many movies, one of the biggest box office stars of all time, more than $5 billion in box office. He'd like his next role to be stock draft champion.

Kelly? Yeah, I see Kayla like putting out a TikTok as we speak. David Robinson, the admiral, the basketball Hall of Famer, is here with us as well. And speaking of basketball, the St. Peter's Peacocks are joining us different team, different players, but hoping for the same success. Hi, everybody. But the first pick belongs to Candy Burris.

You have seen her on Real Housewives of Atlanta. You will see her making the first pick in the draft in just a moment. But first, we get to Melissa. Our 10 teams will make two picks each from a list of 60 investments, 54 stocks, two ETS plus gold, oil, and not just one, but two cryptocurrencies. We've got the blue chips, including Disney, Boeing, and Walmart. All the biggest names in tech are on the list. We've got stocks which have been on the way up and some which are struggling. Peloton, anyone?

We track the prices starting with today's clothes all the way until the Friday before the Super Bowl. the winner will have the highest combined appreciation of their two stocks. Now, before we can begin the process of finding a new champion, we have to crown the last one first. Andre Iguodala rode Tesla to the victory in the 2021 stock draft. He can't offend his titles today because his Golden State Warriors are still in the NBA playoffs. We just learned yesterday he's out with a neck injury. So congratulations, Andre, and we do hope that you get back on the court soon. We should also mention that at the end of last year's draft, we gave Jim the chance to pick from the best of the rest.

he picked Ford and AMC, and during the contest, they were up an average of 70%. That would have won, Jim. So that's your victory lap there. Well, thank you for mentioning that. And this is one of the most exciting things that we do. I have to tell you that when I look at this group, I see some people who have deep knowledge, particularly say of retail. We've got a ringer among the people here this year.

Retail, social media, right? Media in general. What's a strategy this year? It's very different from last year, given what we've seen in the stock market. No more meme. No more meme. Yep. If you can get 33%, I think you win this year.

33%. 30% wins. Yeah, I heard you're talking to Kelly. You want something that's a little more steady. Yes. And that is swinging from the fences. In your view, of 33% is swinging from the fences. Well, yes.

I mean, take a stock like Chipotle. I had them on the other night for mad money, okay? $1,500 to $1,500, that might be enough to win. Wow. Tyler. And we will explore more because I know one of the things Jim always says, and I think you're exactly right, is there's a lot of game theory that goes into this contest.

We'll talk about that. But that sound you just heard means that the first pick is in, and Candy Burris has it. Candy and the gang, get us started on the 2022 stock draft. What is your selection number one? Everybody's waiting. The floor is yours. Candy?

Candy Burris. You're ready. You're on. You're on the clock. Oh, my pick is, um, how, I'm sorry. My, I had it already. My pick is hollow out. Hello. Owlato.

Ouch. My pick is Palo Alto. Ouch. Ouch. That was one of my five. Palo Alto networks. And I just feel like I had talked to my advice about it. That's your second picket.

That's the world leader of cybersecurity for corporations. I feel like that's the one. That's the one. All right, Jim. Cyber. I see $800 all over that. Nikesha Roar is a genius. We have fights everywhere.

Will it be Ukraine, Russia, and North Korea? They are all going to make it so Palo Alto goes much higher. Really good pick. Very strong. Would you have picked that? Well, I had one, two, three, four ahead of it, but that's all. Oh, in the top five of Jim Cramer. Not bad candy.

Not bad candy. All right. That's the second. You hear that sound? I hear that sound. That means we're on to the second choice. The pick is in. Now on the clock is former Macy's CEO Terry Lundgren.

We are so thrilled you're with us today. Terry, is it going to be a retail? Is it going to be Macy's? I think they're on the list or do you go in another direction. Terry, what do you have today? My first pick is retail, but it's pet retail. I'm going with Chewy. Oh, geez.

What does that say about Macy's? Come on. Hear me out. Hear me out. Oh, I'm listening. The pet industry had an amazing year, right? They had an amazing year. People bought more pets than ever before during the pandemic.

They were clearly one of the winners. Those pets are going to need food. Those pets are going to need supplies. And I think Chewy is going to be all over that subject. And I also think that people are going to spend more money on dogs and cats and their pets than they are on themselves. So I think this is going to be a winner. And I'm excited about my first draft.

Chewy, Jim. This is very good. execution for them has been very poor. We, too, started chewy with our two muts, okay? And I've got to tell you, and this was the late Nvidia and bug, and we rapidly pivoted.

Really? Melissa, we rapidly pivoted when we got Ragu, all right? And we got Marley, and we went back to Amazon. And I'll tell you, we're happy customers. What does this tell you, if you're a Macy's shareholder now, that Terry Lundgren did not pick Macy's?

I think that that Jeff Connett, Macy's was on my list. I think that Terry is a very tough act to follow, but I got my first credit card at Macy's and I'm partial to it. Yes. All right. So there we've got now Palo Alto off the board, Chewy off the board. And there's that sound again, Kelly. Yeah, on the clock now. And next up here with our picks, Delano Sopuru, it's one of the several market pros in the draft this year. But a track record, well, Delano, let's just say it's been a good year for the retail. investor. So what are you going to do for this upcoming year to say, hey, the pros, we're getting back in the game? I'm going to go with Amazon here, Kelly. I like what was mentioning before about the retail business. I do think consumers are going to be spending more. If look at their cloud business, that's obviously been growing really well. And they've raised membership price for

Prime. So I think that's another potential tailwind. So I'm going with Amazon. Amazon is, is Delano's pick, Jim. That's kind of been a flattish stock. Yeah, but I really like this. It's the largest positions of my child of trust. I've got to tell you. Listen, betting against Amazon over the long term has not been a great call.

So I kind of like that he's catching it low ahead of the court. We don't know, but that's where the game theory comes in. Yes. Ahead of the quarter. So what are you thinking the quarter says? A good one then? Well, I got it because otherwise he's in the hole because it's at the close. Yeah, well, look, I look at it like

There's a Andrew Ross Sorkin, he went out. Jassy was terrific. It happened to be the same day that there were, let's say, turmoil on Twitter. And if you listen to Jassy, if you parsed his words, you would say, this guy has more game than you would ever believe. And the only thing about him that I don't like is he is such a diehard giant fan that I think he did not pick Philadelphia for the hub, because it would have been saying, listen, I like the Eagle.

more than the Giants. That's the only thing I don't like about chassis. Everything else I love. And it's very telling that you chose Amazon and not Chewy because you pivoted to Amazon with your newer dogs. Yes, I mean, look, the Chewy dolls are great and the drawings are great, but Amazon's price. I mean, come to. Can't beat them. No. The bell rang. All right, the bell just rang there. We're going to go now to the St. Peter's team who made such a historic run in the in the NCCAA playoffs. They have a investment team and welcomes. And your pick is Microsoft.

Microsoft. Explain why. They always are incredibly competitive. They spend a good amount of money on R&D consistently. They always post great earnings, and we think they have a good outlook for the future. All right, there you go. Jim, what do you think there of Microsoft? This is an unbelievable quarter.

There wasn't a single thing wrong with it. As a matter of fact, The only thing it was wrong with it was that the news headlines got it wrong. And she said it was a miss, gave you that incredible opportunity to make money. Now, it was all while you were on air, and your people correctly recognize. That it was a great quarter. Yes. And it should trade higher.

And your show got people in when the headlines got them out. Congratulations, you had the right story. I hope so. But in terms of where it's positioned here, it reported earnings, so you do have the benefit of knowing that they had a good quarter. But I would say, remember, the stock's still down substantially. And even after today's rally, I think you get it a nice discount. Nice discount for where it was.

Now, I mean, look, we look at these situations. We say to ourselves, ah, winner, winner. But this is the kind of thing I'm talking about this year that I think the Thai really alluded to, which is that you're not going to catch a double. This is not a meme stock. Those people went home. But this is going to keep your steady in this portfolio. of two stops. Every day you're going to be interesting because this thing could go to 450 without a problem.

Was this on your list? I did not pick it because it had just had a great quarter. I don't like. That's the theory involved in the soundtrack. I just had a great quarter. That bothered me. That bothered me. All right. Thanks very much. And Courtney, thank you as well. We'll be back to the St. Peter's University Investment Club a little later. Fifth pick now is Kayla Kilbride. She talks investing on TikTok and other social media. Her team is called Girls Talk Stocks. Pretty self-explanatory. Kayla, welcome to the stock draft. You are on the clock. What is your pick?

All right. So I actually obviously had a ticket to TikTok. For those of you that know, I've been, I'm pretty new to trading. So I don't have a whole lot of like financial analysis that goes into a lot of things. And I once heard someone say that if there's a theory behind it, if you have a theory behind it, odds are that is already priced in to where it is at right now. So this is from one of the TikTok. comments. I chose this one for two reasons, but obviously it's a volatile choose. But the second

reason is because a TikTok comment said, Ethereum with no financial analysis done to come to this conclusion. So I think that is probably the best way to start for me. No analysis, Ethereum. So do you invest in crypto at all yourself or have you have you sampled it? I do. Yeah, no, I do. And I think that's actually, yes, Ethereum. You do NFTs, which are based on Ethereum? Yeah, so Ethereum, NFTs, and yeah, that was my major pick. Those are your major picks. And so without any further analysis, Jim Kramer, she goes with Ethereum.

I have a big position, Ethereum. You do? Yeah, I do. Does that mean it's a good pick for the draft? Yes, it was my number seven. I didn't think anyone was going to go for it. I like it. I took my big gain in another crypto.

I took it. I bought a farm with it. Not bad. I think that that's a little bit of substance. I bought a farm with your games. I bought a place in Pennsylvania right near where I was born. And then I took what was left and I bought Ethereum. Now this just is like, you know, we're talking money.

So it's okay to say, hey, listen, made money. But I think Ethereum is terrific. I'm a believer. And I think that you can easily get 35, 40% in Ethereum. Can I ask, Jim, where Bitcoin? is on your list, or would that be... No, I was done with, you know, it was one and done. Made a lot of my Bitcoin, never looked back.

And it was that fellow pomp that got me in it. I did it. Anthony Pompliano. Yeah, I did a show with him, and at the end, he said, listen, I dare you to put $100,000 in this thing. A hundred thousand dollars. I said, you know what? Done.

And it was at 11. So you should call the farm, pomp farms? That's not a bad idea. That's not a bad idea. That sound means the next pick is in and we turn to Stephanie Link. The strongest link is her team name. Hightower Capital and the CNBC contributor in her second stock draft step. So a Bravo round for you.

All right. So what is your pick today? Meta. So Facebook. And I'm sure Jim will, I'm sure Jim will not be surprised. The stock is up a lot today. It's up like 18% because they had a better than expected quarter. But the stock is still down.

38% year to date. Trades at 13 times earnings and 8 times EBITDA, a 45% discount to its historical average average. They have just under 2 billion daily average users, just under 3 billion in monthly average users. Why is that important? Because they have 10 million advertisers that are looking for higher ROI, return on investments. And with numbers like these, I think that they will remain very supportive of Facebook. And then you have a kicker in the second half of the year. Hopefully they can get reels back on track. We do know that it was better than expected in the quarter that they just reported, but I think that this is a nice catalyst to hopefully propel the stock higher. You can't see him, but we just showed Jim in a split screen with you and his

head is in his hand. So listen, Stephanie, by the way, if we had given you yesterday to make this pick, you could maybe you'd win the whole thing with it, you know, being a 10% today, exactly. There you go. Well, listen, they're buying back a ton of stock. 30 billion in the last two quarters. They've got 20 billion more, so I need them all in, too. We, by the way, with the seventh pick on the clock now, Ryan Reynolds, we can't wait to see what he picks. But first, let's get over to Melissa and Jim for, I think you know what is this. Either you love it or you know.

With an 18%. Yeah, it doesn't matter. It's me and Steph. We always have thought alike. It's really kind of weird. We both like the oils at the same time, too. Steph's work is just not going to top her work, and she really understands. Zuckerberg is back.

He had that nice kind of, a little bit overconfident thing that I like about him. The buyback is good, but it was, you know, Dave Winter, untold, great CFO, calmly laying things out. They didn't need to spend the money. TikTok will be number two, second banana, to Reels by December. I'm not kidding. To Zool. Instagram, Instagram Reels.

No kidding. Wow. Yeah, Reels going to be better. All right. There you go. Up 18% today. All right. We've got the stock draft off and running.

Six picks are in so far. Coming up, we've got David Robinson, the NBA legend and a legend in his own mind, Mr. Wonderful Kevin O'Leary rocking the pink blazer today. That is fantastic. But up next, making his final preparations, his movie star Ryan Reynolds. He's also a businessman, and he'll put his business acumen on the line when the CNBC stock draft rolls on. And this year, you can get in on the action with the CNBC Stock Draft Challenge.

The challenge gives you $100,000 in virtual money to buy and sell assets and in the process win some prizes. For more information, go to CNBC.com slash stock draft challenge. Welcome back to the CNBC stock draft up now with the seventh pick in the first round is actor Ryan Reynolds and his partner Mark Douglas, the CEO of Mountain. Together they are known as the Mountain Goats. Gentlemen, welcome. It's great to have you with us. Ryan, what's your first pick here? Well, first of all, I just want to say kudos on your superhero music.

I know superhero music. You know superiors. You know superiors. Bargain basement, superhero stock music. I love it. My first pick is going to be Netflix. Why? All the irrational piling on.

It's still the largest streamer. It's going to be introducing an ad-supported tier. You know, and look, I have got to be, you know, full disclosure. I have three, three movies in Netflix's top 10, so I'm legally obligated to make this man. Well, that's good. You are dining at the right table then. Now, Mark, tell us about your partnership and your business with your friend Ryan,

how you guys came together to form Mountain, what it does. And, of course, we're a little familiar with it, but a lot of viewers might not be. Well, I met Ryan a year ago. We teamed up on Mountain to basically bring television to every, every advertiser, anybody of any size can now reach television as opposed to just the world's largest advertisers before. And I want to also add to Ryan's comment, you had me on CNBC last week, and I was buying CNBC like while I was on. So I'm buying Netflix, I should say, while I was on. So we're absolutely 100% bullish on Netflix. And I bought some more today. So we're all in there.

So did you guys huddle on this pick, or did you even need to, if you're so, lined here. It's like a mind meld. Well, with Brian, he mentioned, he had three of the biggest movies ever on Netflix. So, I mean, that's a pretty easy. We're betting on our, we're betting on Ryan, and that's a bet I would always think. Yeah. And he was

the sexiest man alive at one time. I'm told we can move on now that I've mentioned that. Pardon me, Ryan? I think it was the 1940s. 1940s. Oh, yeah, yeah, sure. I've always had a beef with them I've never won it. Jim, what do you think? Netflix, uh, down, down, down, but first I want to say that my 27 year old daughter just found out

that I have a TV show because she's, yeah, put it on. This is Ryan Relses's on. Put it on. And then she said to me, I bet he picks Netflix. Really? You have a second derivative trade that she got right. Wow. Look, I'm not going to, you know, I've become, he's the only guy who's made me into a gin-soaked vegetable with, with his incredible gym. And, um, and, um, What can I say? I think this is the kind of pick that you really want to roll with because Reed Hastings is not someone you can count out for full year. I like this call. I think a lot of people are wondering what the heck, how did it get there?

That was more Wall Street moving it down the last hundred. I am with him. This is a swing from the fences play. This is a $700 stock at one point, not too long ago. All you need is a little bit higher. It needs a couple of three hits. Can it do three hits? Three hits.

I think you can. Yeah, by the way, can I just say Canadian Malley's son, okay? One of my absolute heroes in business, but he also has this TV. He has this film thing going. This acting thing on the side. The guy is just a total hitter. And any guy who likes gin is a friend of mine, man. Not everybody does.

His gin. All right. Time now for a stock draft veteran Tim Seymour to step up with his pick this year. Tim, you had the first pick last year and took Bitcoin. I didn't quite work out. So you're further down in the order this time around, and what did you go with? Lost the farm.

And tough to follow the Green Lantern, but with the eighth pick in the CNBC stock draft, I'm going in a similar way. I'm going with PayPal. And ultimately, as Melissa and the fast money crew hear me say all the time, you know, you make a lot of money when things go from just, you know, terrible to bad.

And this is a case with the company that's reset the quarter. A lot of problems, but I think a lot priced into this stock. If you're not buying a stock in this draft down 50% or more, you're playing the wrong game. Wow, PayPal. By the way, David Robinson, the Admiral is now on the clock with the next pick. But Tim, let's talk about in a list of companies here, all the companies that we had to pick from, there's plenty of other stocks, you know, down in the range of 70%. So why PayPal? There's a whole other round. You know, give me some time, Kelly. I just think that, again, this is one of the premier payment companies in the world, a strategic

brand at about 25 times 2023 earnings. This is $135 stock. That's a very different downgrade from where we were even a year ago. So I think they're growing mid-teens. And with that, I think, you know, this is a company that's a premier, premier tech company that's been destroyed in really what's been a tech market crash. All right, Melissa, Jim? I mean, it's been a fintech disaster of late. Has this stock been re-rated enough? No. I don't think so. My child trust zones is one of the worst mistakes I've ever made. I believe when it was right here and I spoke with Dan Shulman, who's the CEO, who came on mad money when I was here. He gave a pretty great story, but they've reset twice since then.

And I just think that this is a company that is deeply challenged in an industry, frankly, where we are back in the visas and the master cards of the world. You also wonder what their strategy is given they wanted to buy Pinterest. Right. And how would that have worked with them? And so you question what their strategy is for growth. Well, unfortunately, I think they question what their strategy is. And John Rainey, the CFO, went to Walmart and I had great faith in him.

Wow. Ty. All right. Thanks very much, Jim. That was a somber analogy. It was. It really was a lot of money. Really killed the mood, huh?

Yeah. Hey, we can bring it back. Oh, definitely. I don't usually hear Jim so somber. Well, you never heard me lose that much money from my truck. That's one great thing. All right, let's go. If anyone can pick up the mood, I mean, our next guest.

Yeah, he should be able to. Up to the ninth pick now in the first round. It was from this position, David Robinson, that Andre Iigadala won last year's 2021 draft. Another NBA legend gets that spot, and that's David Robinson. Who was picked first in the 1987 NBA draft? What is your David first pick in the 2022 stock draft? All right. First pick in the in the 22 and two stock draft.

I think I'm going to go with Chipotle. I think it's more of an emotional pick just because my kids love it and I always follow the trend of the youngster. Are you a fan yourself, David, of Chipotle? I am. I absolutely. You know, see, Ryan's saying, he had three movies on Netflix. I had three meals at Chipotle this week, so I got to go with that.

You got to go with Chipotle. All right, let's go over to Jim Kramer with his thoughts on David's Pit. Brian Nichols, a genius, Jack Hartung, fantastic CFO. I believe that this was a breakout quarter for them. They are doing Chipotle, and they are doing the actual store, of course, and they're doing direct to consumer. They have pricing power. They were not hurt by the fact that avocado's actually literally doubled in the last year.

Most importantly, this stuff tastes great. And the people who work there get promoted, no unions. There is a joy to Chipotle. Melissa is one of my favorite companies. It can go back to 1900. I don't know if it gets to 2000. Wow. Oh, wow.

All right. We like that. There is the bell. On the clock was Mr. Wonderful. I guess it's time to turn to the pink blazered man. His pick is in. And his fifth stock draft, by the way. I think that makes him our longest serving, do we say?

I guess so. member and most tiresome one because he always complains about how we don't roll in the dividends right Kevin but it's even worse than that I want to complain about my position in this year's draft what am I chopped liver here like I'm number 10 I've been serving faithfully to the league for five years and I get thrown up behind the bar and look at this is an outrage it was it was a random isn't it a compliment if you're low in the draft who did it chew did it so blame him it is dumb What is your pick, Kevin, this year? All right.

I have to swing for the fences. I've got to get, I got to pick something that's been taken up behind the barn and shot, not just once, twice. And it's got to be arc. That fun has been slaughtered. And I'm still a believer in tech. This is a very concentrated index. The top 10 positions are 59%.

You don't do that very often in index. Tesla's the top of the pick. But I've got a lot of dogs in there too that have really been crushed like Shopify, by Roku. So I'm betting that these tech names come back and the index lifts and I beat everybody, even from the back of the car race. Like everybody's in a Formula One and I'm in a go-car back here. All right, that does it for our first round picks.

Let's go to Melissa and Jim for some thoughts. I cannot wait to hear this. Arc K is Kevin O'Leary's pick. This is swinging from the fences. We've been talking about Teledoc all day and how it's been taken to the woodshed here. This is either going to work or really not work, Tim. Jim. I think her work lacks rigor. I think she bought a huge amount of Teledoc just in the last two days. That's not the type of thing you do. You don't buy it ahead unless you have some sort of insight of which clearly there wasn't. I don't want to necessarily bet against a fund that's down this far. But the last, I'd say the last seven-rate picks indicated a lack of homework, a lack of understanding about how you pick stocks in this world. Teledoc, Roku, Hood, which reports after the bell today, which laid off 9% of its workforce because it's been just pummeled.

And the retail investor is out. Yeah. This is the kind of shoddy work that I'm not used to from professional and rather surprising. All right. Kevin, I don't think Jim likes the pick. Here. I'm not to say the last.

You know what that is? That's the short art. That's not a really big whiskey. That's a option. Jim. Jim, Jim, I am going to crush you like a cockroach on this pick. Watch what happens. Cockroaches are able to go three quarters the size of their body to lower and go underneath. something to watch.

Them's are fighting words. All right. The first round of the 2022 stock draft in the books, a little trash talking there too. Each team still gets one more pick. Right now the teams are getting ready for their second pick. So we'll take a quick break. When we come back, Candy Burris will kick off the second round. You're watching a CNBC special event.

The 2022 stock draft, don't go anywhere. All right, welcome back to the 2022 CNBC stock draft. We want to get you caught up on some of the market action right now. What you're seeing is pretty much session highs for the market overall. As you might expect, the NASDAQ is the outperformer on the day, up roughly 3% at this point, which now puts the overall drawdown from record highs in that composite trade down roughly 21%.

So it's still a lot of ground to make up. Every sector is in positive territory today led by, you guessed it, communication services and technology. Those two, by far are the best performers, energies in third place right now. Now, that comes as comm services and tech are being really led by none other than meta platforms, the company formerly known as Facebook, leading the way in both the NASDAQ 100 and the S&P 500. Other beaten up names as of late also getting a bounce. Check PayPal, check Nvidia, Netflix, and of course Teledoc, off-session lows, but still shedding 41% on the day after an earnings miss and weaker than expected guidance for that telehealth company. So, Melissa, as you look at some of those beaten up tech names, I know that some of them have already been taken up in the CNBC stock draft right now.

that's the market action. I'll hand things back over to you. Yeah, to Jim's dismay, I might add. We have reached the halftime of the 2022 stock draft. Each team has made one pick so far. Jim, I know you love Stephanie Link's pick. Of course, of course. Because your mind melded with her. Yes, as always, seven years working together. Yeah. But I want to tell you that there's a man out there, a person, because I don't want to be sexist, who has picked a company that is now being valued at $375 per sub, which is a little ridiculous, and that man is Ryan Reynolds and the stock is Netflix.

And Ryan, I've got to tell you that if you just were to, did not worry about antitrust, you know that there are at least a half dozen companies that would go buy Netflix town here just for the list, wouldn't they? I think so. Yeah, I think that's fair to say. Right? I mean, think about it.

You're not going to get that kind of, cable's not going to give you that kind of people worldwide, right? And they've got you. They've got you for three movies that we're all going to be talking about. that. Well, yeah, I like to think so. Look, it's Netflix at its heart is really storytelling, you know, and that's that's something that is never, ever going to grow out of fashion. It's something that I'm lucky enough to be a part of in a number of different ecosystems and businesses, but it's at the end of the day, storytelling. You know, like you said earlier, I don't think you sleep on Reed Hastings in this group. I think that they're incredibly smart and I'd never

bet against them, independent of me being involved with the company. I think that's very right. I think fit, that the stock is down so much. There's the one that you would say, you can game it, that that stock has just fallen so hard that people think it's toxic, but they won't think it's toxic three months from now. Here's the question, Jim, as we are on the cusp of the second half of the stock draft, which is the best stock available

that is still on the board? Shockingly, that Disney's still on board. I mean, here's a company that right now is in the process, there's a lot of politics, but you can't get into the theme parks. The ships are coming back. I've got to tell you, what the hell is Disney's doing? 100 or 120 that's that's goal all right the folks can think about that one tie all right somebody asked me before going in what would my first pick be and i said disney i said disney all right will anybody

take jim's advice on that a whole other round of the stock draft is coming right up candy burris is on the clock second round of the 22 cnb stock draft starts right after this stay with us all welcome back to the 2022 cnbc stock draft it is time to kick off the second round and Candy Burris chose Palo Alto for her first pick. Jim Kramer liked it a lot. Candy, your second pick. It is your time to shine. Okay, so my second pick is Zoom. I decided on Zoom because, I mean, it changes the way we work. We really depended on it for these last few years. It's growing rapidly and it has very little debt. All right. That's pretty good. Do you use Zoom a lot? Yes, I'm using it right now. You should have known. Dumb me. Anyhow, Jim, what do you think of this one?

This is another one that is a fallen star. I had them on recently. They need to do something with all that cash and no debt. If they were able to make an acquisition that could compliment them, I think, Otherwise, it is still based on earnings per share in the mid-30s price earnings multiple. And you know, Melissa, without any real growth, you can have that higher price earnings. Who doesn't have Zoom at this point is the question? I know. What could they buy, do you think, that would make it more attractive? You know, I've thought a lot about that.

And I think they should buy something involving with sports and gambling because you could put together and work. That's interesting. Sports and gambling. No one's doing sports and gambling at work, Jim. I don't know what you're talking about. never happened. Certainly not Terry Lundgren. All right, the second pick is in and the former Macy's CEO, Mr. Lundgren, did not pick Macy's. He picked Chewy, though, for his first pick. Terry, what's number two for you? Well, first of all, I thought I was being strategic. I thought this is my

first pick would be gone by the time I got around to my second pick. But without question, I was always counting on picking Macy's as my second pick. And it's not in order. It's strategic that I I thought I could get Macy's. I didn't think I could get the other. But anyway, I've got a lot of faith in Jeff Ginnett. He's surrounding himself with some talented people. They've made great investments during the pandemic. I like what they're doing. They closed a lot of physical stores. They've rationalized that physical space. They've one of the best online business, Omnuchannel business in the entire industry. And it got a five PE. Come on. Five. You just, you just acknowledge that you knew it would be left on the draft table. You knew no one else is going to take it. I checked out who I was betting against here, and I thought nobody's going to pick Macy. Shame on you. I'm all over it. All right. Delano Soporo is on the clock right now as we turn to Melissa and Jim, guys.

He picked it. Maybe we shamed him. Maybe so. I had it as by number three because of the low P.E. That Terry mentioned, also because I think Jeff's made it a very exciting place to shop and still got plenty of real estate, many things to do. You get a stronger, you get any sort of stronger cross-border. People love to come New York to Herald Square, and no one knows it better than Terry.

Terry, I bought these rock ports on the unbelievably good Macy's website. 92 bucks, normally 117, when I checked another rival that's bigger. Did you get star rewards with that? Well, you know, we're actually, my wife, every year at the end of this year, she goes to Bloomingdale. She has a personal shopper, and she gets gifts for everybody, and she has the person wrapped them, and it's one of the greatest services in the world. And I think people should avail themselves of it if you want to be able to have problems. picking things for people.

We were just kidding, Terry, by the way. We know you had Macy's already written down on your piece of paper. So, Jim, that was your third pick going into this. Yeah, I just like price starting to slow here. You can get the double. All right. Delano Sapporo is ready with his second pick in the 2022 draft. What is it, Delano?

Yeah, Tyler. So at the risk of upsetting Jim, who I obviously admire, I went with draft kings going for a little bit more value after picking a safe pick in round one. I want to take a shot here. Things I like about Draftkins, they're probably one of the few stocks that you've screened in this list

that has an addressable market that could be growing, right? So there's 23 states now that have the online sports betting. That could be growing. I think the customer acquisition cost goes down over time and they'll be able to get more

from their customers because not just the sports book, but they also have the gaming portion as well. So I'm going with Draft Kings. A lot of competition in that space, Delano. I mean, it's not just Fandul. It's MGM. it's Caesars, it's all kinds of different folks.

Yeah, 100% Tyler. I think what's going to differentiate right now is you're seeing the big marketing rush. And I think the winners in this space are the ones that win that marketing rush continue to draw value from the people that they bring in. I think Draft Kings will do that. All righty. St. Peters is on the clock,

their investment fund. But Jim, Melissa, your reaction to Draft King. The shadow of its former self, Jim. I do like Jason Robbins very much. And frankly, the idea that I have with Zoom is to put Zoom together with, with draft kings to be able to do parties where you could gamble here, gamble here, go against each other.

I haven't mentioned it's Jason. I did work for Jason for a little bit. The problem is, obviously, you need to bet that in the next year, the other guys all get wiped out. But his app is unbelievably good, and he's unbelievably good. So I think it's actually, it's a double-or-nothing pick. Last Man Standing, though, definitely other than Fandle. All right.

Great app. We're going to take a quick break right here. But when the CNBC stock draft continues, the St. Peter's Peacocks, they're on the clock for their second pick. The students, The students took Microsoft in the first round. Lots of excitement about their next selection. We will be right back.

Welcome back to the 2022 Stock Draft, everybody. The students of St. Peter's University. We learned a lot about them this year. They are on the clock with the next pick. They picked Microsoft in the first round. And here to select for them this time around is Tevin Eagleo. Tevin, welcome. And what's your selection?

So thank you so much. The selection is Apple. Ooh, Apple, why? So the reason we went with Apple was because of how solid of a company it seems to be, with a really solid consumer base that's been keeping up with its massive amount of products that are coming out, and an overall consistent reporting of profits, it seems like a really good choice for consistency and longevity within the market. Was there a big fist fight about this one?

What were some of the stocks left on the cutting room floor, Tevin? Oh, there were, there was a few issues here and there. There was Disney was a big one. Disney was up there. On top of that, we had the other financial firms like Goldman Sachs and JP Morgan. There were a few left on the cutting room floor, but overall, after analyzing all of it, it came down to Apple. All right, because no one's really picked financials yet. No one's really picked energy.

Taveno, St. Peter's, thanks. Let's see, who's on the clock now? Kayla Kilbride of Girls Talk stocks, Melissa and Jim. All right, so Apple reports earnings after the bell today, Jim. So what do you make of this pick? Look, Apple, and it's untraded. I think it just goes up over time. It is not a classic stock draft stock.

That's not. But at the same time, it's been my largest position with my travel test basically for years. And you just want to own Tim Cook. You want to own these guys. For the long run. Yep. But for the year. But look, it's not an NFL draft stock.

I mean, look, you know what it reminds me of? It's an offensive lineman, okay? And it's a Hall of Fame offensive line. But it's not going to be Tom Brady. Okay. It's not a goat. It's a goat as a stop, but not as in a season. It's not a season.

It's a longer season. Right. All right. The Phillies, I mean, are the Eagles going to pick an offensive linemen tonight? No, we're going for a wide receiver if we can trade up. It'll be the fellow from Ohio State. If not, we're going to just go a little bit lower and take a corner and maybe. Well, you got that good wide receiver from Alabama last year.

Oh, my God. I have an autographed jersey. Haven't washed it wearing it. Really? Yeah. If I wash it again. You haven't washed it. wear it every weekend.

During the season, yeah, I have to because it's good luck. That's how we made the playoffs because I wore the jersey. You want to hire Tevin, Jim? How about that? Oh, hold of he's coming up. He's going to trash. You know, Tevin here right there. I think you should hire him.

Okay, done. Done. All right, I guess. Up now with the fifth pick in the second round is TikToker. Kayla Kilbride. She picked Ethereum in the first round. Jim called it a terrific choice. Your second round pick.

I hope it is backed up by as much sheer dogged analysis as your first way. I love it. I will say it's funny that St. Peter said that Disney was on the chopping block because everyone on TikTok also said Disney. So it seems like it's a popular one. It's not the one that I chose. This one I did do a little bit more analysis on.

I actually was looking for anything that had like just a major beat down, like absolutely ridiculous. Unfortunately, Netflix is off of the table and so it was. Facebook. And although Peloton kind of falls into that range, I don't really trust a stationary bike to go uphill again. So my choice was Boeing specifically because it's trading around where it was after the crash in 2020. Very interesting choice. And of course, a big down week this week. That one takes some nerve, Kayla. Chasing fear in the market. That's what we do, right? Jim, Melissa. This is a self-inflicted. This is a self-inflicted.

beat down. Execution problems. Not just macro. No, this is kind of not unlike the forecast that Mr. T gave Rocky a long time ago, which was pain. And I've got to tell you, maybe she's relying on the fact that there could be a change at the top, changed at the board, but they may have to do an equity offering. The cash flow was quite terrible, and the execution was miserable. What do you think of an overall basket, though, with Ethereum and Boeing? Well, look, I mean, you want to roll the dice. This is a dice roll. Boeing needs to do, I believe, needs to do an equity over. if it gets near 200. Ethereum, I just, you know, look, I own it. When I'm going to trash it. When I own this for my charitable trust, it's like, hey, this says stupid all over it. Sorry. It's okay to be stupid if you're stupid. Well, we'll leave it right there because our next pick is in.

We turn to one of the best team names in the stock draft, the strongest link. Stephanie, we almost could and should have guessed that Meadow would be your first pick. So I'm thinking, what would I guess that Stephanie might go with here? And the only thing I'm thinking is we haven't heard anyone take an energy stock. yet. What's pick number two for you? And it's an energy stock. Oh, it is Chevron. And yes, it is, this one is a quality, integrated oil company with a good dividend yield, excellent assets. They've been shedding divestitures, shedding non-core

businesses, paying down debt. They're going to do $10 billion of a buyback this year. And they make money at $40 oil. So you could imagine the free cash flow that's coming their way. Chevron and Meta is the Stephanie Link portfolio. You think those are going to go well together, Steph? Yeah, I tried to do kind of a little one that was a little off the beaten path with the Facebook because we're waiting on them to fix reels and other things. And then Chevron's kind of a steady eddy, but I do still believe in the oil story very much. And I think we have years to go on higher oil prices, higher oil stocks.

All right, Melissa and Jim. What do you think of Chevron? It's not as leverage. I mean, we don't have on the list to be fair, a stock that is more leverage to the price of oil. No, we don't have diamond back. We don't have Devon. But frankly, I tell you, I really like this pick. Mike Worth said you'll buy up to 25% of the stock if the stock just stays right here.

We got a really good report coming up on Friday. What can I say? Chevron, huge position for my charitable trust. I think it's a terrific stock. So do reels and oil mix? We will find out in a little bit. Ryan Reynolds has been on the clock. Shall we go and get his next pick?

Why not? Ryan, you picked last time Mark Douglas. Why don't you take, Ryan chose Netflix, by the way, and it was kind of a mind meld there that both of you agreed. Mark, why don't you take the second swing? All right. Well, we're going to pick Ford Motor Company. It's an iconic brand, best-selling car in America for 40 years, Ford F-150, Liking. I pre-ordered.

I love the car. I think everyone's going to love it. There'll be a best-selling car for the next 40 years. So we're going all in. Did you, did you know Mark that Ford had been Jim's pick or one of them last year when you made this pick? And one of those good ones. Pardon? Yeah, it makes me feel better.

Yeah, it makes you feel better. How about you, Ryan, Ford? Well, I, like Mark, have an uncunchable thirst for Jim's validation. So, you know, I look, Ford has been around for 100 years. He found a way to reinvent itself using new technology. I'm also very excited about the new lightning. And that's exactly where we are at Mountain. What we're doing to elevate television as we're updating how they get made and delivered,

and that takes it out of the 20th century. And I just love that. I love that Ford has that same sort of ethos about it. All right. I think let's see who's on the clock. I think it's Tim Seymour is now on the clock. But Jim and Melissa, do you still love Ford as much, Jim? Absolutely.

I was in the F-150 lightning just today. I just love it. I think Farley's great. I was actually writing a piece during the break which says, don't bet against Farley. Do not bet against Farley. I think he had a much better call. I think the stock right now is just incorrect.

It should be at 15 and a half. At one point it was down 70 cents today. That was moronic. This pick is going to be a winner. Okay? It's going to be a winner. Do you also have an unending, unquenchable thirst for Ryan Reynolds's approval? Absolutely.

Is it mutual? Because my wife told me, my wife said to me, go up to him, tell him that he's the greatest. I said, no, I don't think he's going to be this. It doesn't matter. out where he is. So Lisa says hi. Okay. All right. Hi, Lisa. How are you? Oh my God. She's going to love it. She's melting as he's cheek. Oh, wow. I did it. I got it done. Impressive.

All right. Yeah. I'm just wondering why. I mean, I guess Tesla just doesn't have the same value appeal to anybody these days. But all right, Ford's the pick. Tim Seymour's pick is now in. Your first pick was PayPal, Tim. The stock, of course, was a noteworthy disaster. Jim called the company deeply challenged. What is your second pick here? Well, it was a noteworthy disaster. So was DoorDash, which is also a stock down almost 70 percent. And to me, a stock. Look, Seymour Alpha, we're here to win now. We're not building a long-term team. We're here to find companies that I think have been thrown out. They just announced fourth quarter. Growth was up 36%. It's actually a profitable tech company. I know people don't think

that they are. COVID changed the way delivery goes forever. And they're three-sided marketplace. They have north of 50% market share. So down 70% along with every other high multiple tech company. I think I've got room to run. DoorDash is pick number two. By the way, David Robinson is on the clock now with Admiral's crew. All right, DoorDash, Melissa and Jay. I feel like Tim wanted to pick draft kings, but that was picked up before him. That's just a guess. Yes. You felt me. I felt you, Tim. Yeah, I know you well. Nice picked Alano. Dash, Jim. I like Tony Shui. He's got a lot of character. It's an interesting pick and it's surviving post the pandemic.

I think I would have gone in that ilk. I would have gone, frankly, with Airbnb because I think Chesky's a winner and the stock's down a lot and people are going to be traveling again. But I'm not going to fight Tony Schu. I think he's a remarkable man. He's a very good CEO. Are you surprised that more sort of back-to-normal stocks are not picked up? The Disney's, the Airbnbs, the Royal Caribbean. I frankly believe that those would be the reopening stocks would be the first on someone's

just because I do believe, as we heard from so many different banks, that look, people want to travel, people, and do things they want to go out. But this group maybe is just uniquely closer watching CNBC all day. On Zoom, apparently. On Zoom. All righty. There you go. The ring is in, and that means David Robinson is on. You won two titles with the Spurs.

He used to think that the free throw shooting in front of 20,000 was simple or pressure. but now you got some real pressure. Chipoli in your first round. That was your first pick. Your second round pick is? Well, my second round pick is Rivian. Okay, so I felt like I had to swing for the fences here a little bit. I know they've gotten beaten up a little bit,

and they're in a good battle there with Ford. But I do like the energy around the electric cars, and I'm hoping that they can come up big. All right, Rivian. We're getting into those areas now, Ford and Rivian, but Tesla's still on the board. I guess it was one of our stocks here. David, you were one of the 75 greatest players in NBA history.

Congratulations on that accolade. Of the teams that are remaining, the Lakers are out, the Nets are out. Who do you like to win at all? Wow, with the way Janus is playing right now, I'd say the bucks are in the driver's seat. But injuries have played a big role in this postseason. And, you know, as great as Phoenix played during this season, Looks like they've got an uphill, uphill battle now.

They've got their missing Booker, their guard, and Milwaukee is missing Middleton, their guard forward. So it will be interesting to say, why don't we, Mr. Wonderful, Mr. Wonderful. May I, before we move along, David Robinson, can I ask you, you picked Rivian? We just heard Ryan Reynolds pick for it. Are you an electric car guy? Do you all, you know, can I give us a little glimpse here? You like Chipotle because you like the food, but what about Rivian?

I have an electric car and I absolutely love it. My brother just bought a Tesla. I have the Ticcan and I wouldn't go back. I mean, every car I buy from now on is going to be electric. So I do like the energy around it. So I think it's here to stay. How's a legroom, David? For me?

It's always challenging. I'm not the right one to ask. All right. Jim, Melissa, what do you think of Rivian? Down 70% Jim? Well, we've got that. I think the last few points have been because Ford pretty much indicated that it will

register its Rivian position, which is going to be a lot. But the Rivian ads are now running, and they're quite attractive. I drove in a Rivian, which was 0.85 at no time at all. How about the missteps about pricing? Look, there's missteps about execution. This is one where you have to believe that everything has to go right, And that's a tall order. It's a lot.

Yeah. So it's a swing for the fences, but a lot of things have to, you got to. And he's not Musk. Okay. Well, there is no one is Musk. All righty. The bell has rung. Kevin O'Leary, you are on.

Sir, your second pick. First pick was the ARC Innovation Fund. Your second pick is. Yeah, right here from number 10, last pick position in the go cart back here. So here's what I'm thinking. I'm going to take something that has tremendous upside for the potential that has also been taken back behind the barn and shot, Moderna. And if you don't think we're going to have new viruses and COVID 20, 21, 22, 23, who's going to save us? This technology.

And I think next time we get a variant, people will be thinking about Moderna again. So that's my plan. This, between Arc and Moderna, I'm going to clean up. Finally, I'm going to come back and win again. You have been a previous winner, Jim, Melissa, the final. pick, Moderna. Look, I like Moderna. I'll tell you why, because it does have a lot of cash,

because it absolutely has the next, it'll have a vaccine, it'll have a cancer vaccine at this time next year. And also, look, if the Chinese decided that 1.2 million people should be saved, they just, all they've got to do is call Stefan Benssel and it'll happen. What do you think is the best stock that is still left? What should somebody have picked? The fact that Disney wasn't picked is quite an insult, I think, to Bob Chaypec. They don't understand that I think.

The Chapech has got the support of the board. It's the support of America. And I know that there are issues in terms of politics. They will go away. You can't get in the theme park and cost a fortune. The movie slate is good. I defer to obviously at Ryan Reynolds. We doesn't agree with that.

But this is a great American brand that is so down on its luck that it's extraordinary. How about the streaming side of the story? I mean, you believe that Netflix still has a good business. And so therefore, it's not an indictment on the streaming business overall in the streaming industry. Okay. This is what destroyed. Disney, not Disney Plus.

The fact that they paid $71 billion for Fox, which I think is probably worth about maybe $15 billion, and that's what destroyed this. Nothing to do with Chaper. Which team looks the best to you? So, you know, because this is a team competition, Kevin O'Leary's got Arc and Moderna side by side.

Stephanie balancing out a little bit more, you know, with a meta-chevron. I mean, there's some interesting pairings here. I've got to go with candy. I'll tell you why Canning the game, because I happened to want, Palo Alto was my pick. Because I think the cash aurora is unbelievable, and I think that cybersecurity, unfortunately, is the gift that keeps on giving.

I know that people at Zoom very, very well. And full disclosure, my steps some work for Zoom. And I think that they are a brilliant company, but they need to make a deal. They happen to have a guy from JP Morgan that brought him from M&A. I think he's going to be brilliant. He'll do what I said. He'll merge it with Draft Kings, and the next thing you know, we'll have a winner. But you hated that Zoom?

Well, Zoom's going to do something. It's going to do something. It has too much cash. You will not, the Zoom you see today will not be the Zoom we see a year from now. And obviously you love Ryan Reynolds. Oh, right. His portfolio. I would have just owned shares in Ryan Reynolds.

I mean, if the guy comes public. Buy Ryan Reynolds. The Ryan Reynolds SPAC. Give me you as a SPAC. I'll just buy you. Okay. All right. I don't know if you would pay attention.

And that wraps up the 2022 stock draft, but the real fun begins right now. Tracking the stocks throughout the season, you can follow all year long at CNBC.com slash stock draft. And at CNBC.com slash doc stock draft challenge, you can play a version of our game and compete for prizes. And thanks to everybody for participating, to all of our teams, to Jim and Melissa for their analysis. And of course, thank you everybody for watching.