Power Lunch - The 2023 CNBC Stock Draft 4/27/23

Episode Date: April 27, 2023

The 2023 CNBC stock draft is officially here! 10 teams of athletes, celebrities and investors competing for stock-picking supremacy.  Actor Ryan Reynolds and his partner Mark Douglas, the MNTN Goats will try to defend their title. WWE Superstar Charlotte Flair, TV host Tom Bergeron and NFL stars Ndamukong Suh, DK Metcalf and CJ Mosley are among the competitors this year.  Each team picks two investments from a predetermined list.  We’ll track each stock's performance from the day of the draft until the Friday before the Super Bowl in February, and the team with the highest average appreciation wins. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

All right, folks, forget the NFL. This is the draft you should care about. The 2023 CNBC stock draft. I'm Tyler Matheson, along with Kelly Evans, Melissa Lee, Tim Seymour, here in studio for pick-by-pick analysis. And we have Jim Kramer. He's going to join us with his take as well. Got a great lineup of competitors this year. You can see them all in our big wall.

There they are. Our champions, the mountain goats are back to defend their title. Tom Bergeron. Mike Drop. We've got several athletes this year, an Olympic swimmer, a WNBA star, and on NFL Draft Day, we have three NFL players. And Domokon, Sue, D.K. Metcalf, and live from the New York Jets facility, the linebacker, C.J. Mosey. We'll ask him about his newest teammate, a guy named Rogers. And we're happy to have with us here in the studio, the Rutgers Investment Club. Cheers! Go! All right. Welcome.

to Rutgers. And welcome everybody. The first pick today in the 2023 stock draft belongs to WWE superstar Charlotte Flair. If she wins, should we get her a belt instead of a trophy? Yes. She will be making the first draft pick in just a moment. But hi Charlotte, welcome, by the way. Before we can play the game, though, we've got to explain to everybody the rules.

Here's a quick rundown of how this all works. By the way, we can do our best to explain it as well. Let's explain. Let's go ahead and explain. Our 10 teams will each pick two stocks today. the two stocks they think will perform the best between now or maybe tomorrow and the Super Bowl next year. That's the period of time in which they have to decide which two names or assets will do the best. There's a lot of strategy that goes into this. We've culled down the thousands

of stocks that there are to about 60 different stocks and asset classes, including oil, cryptocurrencies of various types. And they get to choose two, two. And so they've got to be flexible because they may go in thinking their first choice is, let's say, Chipotle, and Chipotle may have already gone off the board. Bingo. So the draft order, just like any draft order, really makes a difference here. Melissa? Yeah.

Before we get into the first pick, we got a review last year. It was a very big year here. Ryan Reynolds and Mark Douglas, the Mountain Goats. They pick Netflix and Ford from draft day to the Friday before the Super Bowl. Netflix rose 74%. A small drop in Ford, though, wasn't enough to drag them down. And Tim, we gave our contestants a list of 60 stocks to choose from your former stock draft participant yourself. So if you're playing, what would be your first pick?

Well, it's great to move from the playing field to the booth. Maybe I don't know what that says about me as an athlete. They make a lot more money that way, brother. Anyway, apparently, I tell you what, so the game is all about the performance. Sometimes it's not about fundamental. Sometimes, you know, I've chased the company that really was maybe on its way down and it went down further. Or those are the companies that you make the most money when things. things go from terrible to bad. But if I'm looking at this

year's draft, you know, Pfizer is one of these names. I never would have drafted, but this is that 360-pound Ohio State lineman that you build your team around. Down 30% into the draft, trades cheap to itself, et cetera, et cetera. I actually like Pfizer here. Second round's got to be Schwab. And if you think about it, again, a stock that's

down on its luck. It's kind of the Jalen Carter of this draft, and I know you've been thinking you were going to say the same thing. Totally. Jalen Carter. There are problems here, but there is a first-class franchise. There's a lot of talent. And then if you're going Anthony Richardson, I think you go Carvana. Again, this is a pick that you could strike gold. He could be out of the league in three years. This could be a zero. You don't know, but that could be how you win this type of contest. You like to swing from the

fences. That's your playbook. It works. All right. You're going to hear that sound a lot, and that sound means that the pick is in. And for the first pick in the 2023 stock draft, let's go to Charlotte Flair, WWE superstar. What's your pick, Charlotte? What? Envidia. Hey guys. Invita. All right. Give us a phrase on why you like it, why you pick it number one. Because they are at the forefront of the AI space, which we know is growing day by day. I think he got that right. Let's go to Melissa and Tim for reaction as Olympic swimmer Erica Sullivan is now on the clock. But let's get Tim and Melissa, your reaction to this pick.

So, you know, to me, look, Nvidia's been on fire. Again, this is a company that's actually rallied into draft. We could make an argument that AI put 50 billion or 80 billion of value cap into Nvidia. It's not cheap. It's obviously one of the most exciting companies out there. It's not surprising that this is a person for the draft. You don't need cheap. You don't need cheap. You need runs. You need momentum. Can we continue? Yeah, well, look, AI right now, based upon what we've had in the last three months in terms of what that's meant for stocks, we called it the AI pixie dust on fast money a couple nights ago, it sounds good to me. All right. So an endorsement there, Charlotte, of that that first pick of Nvidia.

All right. There's the music. We know what that means. It's time now for the second pick in the draft. Erica Sullivan, Olympic swimmer, silver medalist in the 1500 at Tokyo. I can't even make it across the pool. I'm training for even more hardware in Paris next summer. She's also a movie buff.

Will she go Netflix? Erica, your pick. Over to you. I chose Amazon. Ooh, why Amazon? I'm going by what I, like use the most and as a college student in Austin I use Amazon a ton and so I'm going to hold on and hope that they pull through for the next couple months for me and video wasn't on your list was it

Charlotte didn't get in your way there did she no it was not that was my top pick so luckily I'm number two picks I was able to slide in my top choice in there based on the swoosh on your shirt there I would have guessed maybe Nike would have come in there maybe you're saving that one for later I'm not going reveal my strategy here. Ah, a good move. A very good move. Let's find out when Melissa and Tim think of that pick is our first NFL player, Nadam Kong Su, Sue, gets ready for his first pick.

A couple nights ago, you're saying you were worried the most about Amazon going into earnings, which is, by the way, tonight. Yeah, having said that, this would be my number one of the mega-cap stocks on the board. In other words, if you think about mega-cap tech, Amazon's the one, they're kind of like the, you know, the L.A. Rams of the mega-cap techs.

You know, they've been high, they've been the cream of the crop. They're down. They're crazy. talented. And if I look at the chart, they're starting to break out. I think in this environment of all the mega-cap tech stocks, this is the one. It's a solid pick. Because it's down 20% for the year. Yeah. And if you look at the chart, it's moving above that 200 day. I think there's probably more bad news price into Amazon and the e-commerce and cloud peaking and some of the saturation there. And I think this is a good time. Another endorsement there. Thank you, Tim.

All right. So there we go. On the board now is Endomicon, Sue. Where you go, Endomicon, Super Bowl. seem to follow, I have to say, whether you've played your last game or not, a certain Hall of Famer, let's find out your Buffett disciple, University of Nebraska grad, that's where you got to know them. What's your pick? My pick is going to be United Health. I'm excited about this one. I think it's a very, very strong company. I'm not going to reveal my strategy, very similar to Erica. But I like United Health and what they've been able to do in their growth. They're being able to grow 10% over the last 10 years. And they're a strong company, so I like them a lot right now.

Would you describe yourself as a kind of value stock picker? I know you're an active investor. Buffett likes great companies with enduring earnings power. Yeah, there's no question. And this has free cash flow, so it's one of those great things to get to reinvest. This overall competition is very difficult because I have to not be my normal self and understand all the different tools that I've learned throughout the years,

as you mentioned from Mr. Buffett, from all the other mentors I have. So this one's a little difficult for me as I'm changing my normal strategy to things. To be more of a traitor. Yeah, a trader swing for the fences here. We're going to go now to Melissa and Tim as our next NFL player, C.J. Mosley.

C.J., you are now on the clock. Melissa and Tim. First of all, and Domokung is a fan of Fast Money. He's a friend of the show. So we're maybe a little bit biased, but put up a longer-term chart of UNH, and this is a chart that Carter Brax Worth has called Godlike. I mean, if we go back 10 years, 20 years. A five year on this is Godlike.

And Domicong's Godlike. And in fact, I'm not even sure if I didn't like this pick, I'd even say I didn't like it because of all that. And the bottom line here is, this has been one of the great company stories. If you think about the market that we're in, we think about companies as he talked about generating free cash flow. Again, this has traded largely sideways over the last year. You're not chasing this one into the draft here. Love the pick. I think healthcare's been beaten up over the last week. And tactically, it's not a bad place to be putting this on right now. Wow. Accolades pouring in. No pressure, C.J. Mosley. Let's go live to New York Jets trading facility where there has been so much attention and press just this week, even on the arrival of one certain

Aaron Rogers. CJ, we turn it over to you for your pick. You're our number four pick in the stock draft this year. What will it be? For our fourth pick, we're going to go with Procter and Gamble. Ooh, okay, why P&G? The main reason why, you know, it's one of the world's largest consumer packaged goods in the United States and the world. Between, you know, being at home, being in the facility, being in the locker room, we use most, you know, PNG-type products. So every single day, we're using half of their products. They're grossing every single year. Like I said, you know, just my daily routine, it comes down to, you know, some of that product.

whether it's tie pods, whether it's crest, breast of my teeth, washing my face, using the body wash, with O. Spice, all those type of things. So that just makes a lot of sense to go with that. It's a very strong, number one. This is a sponsorship in the making. This isn't a cheap one. You are going to get so much endorsement money, CJ, right now. They're going to be beaten down there.

Kind of this sort of, in theory, sort of like Erica Sullivan's pick, buy what you know, by what you use, right? Yeah. That's where we're going on. Hopefully we use it. And hopefully we're all using toothpaste and soap and tied pods. Send a man some soap, by the way. Send him some soap. Exactly. Melissa, Tim, what do you think of the pick?

This is interesting. It's, you know, defensive. It raised prices a bunch, but it's nearing the end of that price hiking ability in the face of inflation here, Tim. We've heard from every Staples company, their ability to pass on this. And if you think about the market we've been for the last 18 months, Staples have been very defensive. I tell you what, I don't love the P&G's going into the, a draft here within three or four percent of a 52-week high.

This is the kind of stuff that I think a lot of great news has been pricing. Look, CJ, keep it clean out there on the field, as I know you do. Keep it clean in the locker room. But I'm a little worried about being a little topy here on Proctor. All right. Well, we shall find out. Let's go on now to pick number five. Time is up.

D.K. Metcalf and your partner, Joe McLean. Own not loan is your team. What is your pick, gentlemen? I mean, I would be a little word if I was a Jets fan as well, but we're going Charles Swab. Charles Schwab was one that Tim mentioned earlier today. I got to say this. A friend of mine said that actually Aaron Rogers has retired from professional football. He's now going to play for the Jets.

That was the line I heard. But I'm not saying that. I think he's a great player, and the Jets are the better for it. All right. So why do you like that one, Schwab? Why that pick? Everyone is pessimistic about this space, and I feel like this stock is passed up in the draft, kind of like me, so a little personal. A little personal.

All right, let's get some reaction from Melissa and Tim. What do you guys make of it? Well, it sounds like D.K.'s made it pretty personal with Mr. C.J. But I tell you what, I said this is one of those picks that this is how you play the game. This, to me, would be a number one pick based upon the performance of what's happened with the banks, and tactically. And the question, and we talked about this, we talk about it on fast, what does Schwab need to do to bring the confidence back into the franchise?

Some talk about debanking. And that would completely de-risk this story. I know the CEOs out there saying they won't do that. But I tell you what, I think a lot of the banks are beleaguered. It's going to take some time. I love this pick, especially for this draft. It falls into the category of things just need to go from terrible to not so bad, right, in order for it to be a winner.

I like it. He likes it. Charles Schwab, going out a little bit on a limb here from safer consumer products, now to a much debated financial. All right, it's time now for the students from the Rucker's Investment Club to make their pick. We're excited because for the first time since 2019, we have a stock draft team here in studio with us. So before we get to that, here's Becky Quick of Squawk Box of Rutgers alumna with some words of encouragement. Today is the day. It's the big day we've been waiting for the CNBC Stock Draft,

and I am wearing red from my home team. Ruckers University, Ruckers Investing Club, participating today, and I want to give you guys a big shout out. Say, good luck. We are rooting for you. Go are you? All right. Come on. With that kind of backday, there you got. You know, you had the house money going for you, folks. That's right. And so for the next pick here, we turn to the Ruckers Investment Club. Tell us your name and what you would like to draft here. Sure. My name is Ruth Vick Sharma. Thanks for having us, first of all, and we're going to pick J.P. Morgan. Wow. Two financials in a row. Okay, different kind of story. Why does this one jump out to you? Yeah. So J.P. Morgan is as a fortress of a balance sheet. They're leading an American bank. And we believe that the choppy waters are ahead,

but what better CEO to choose and believe in than Jamie Diamond? Wow. Bet the jockey, not the horse there, I guess. Exactly. What year are you, Rithick? I'm a junior, so I'm a third year here at Rutgers Business School. Third year, in the business school there. Exactly. Well, congratulations. Let's get a reaction before we take a quick break. Let's get reaction from Tim and Melissa on that one, J.P. Morgan. What do you think of Ritvick's pick? Well, I tell you, this is kind of like the franchise, the elusive franchise quarterback. J.P. Morgan is that. And again, because of the banking turbulence, J.P. Morgan's played right into that place. Everybody's looking for this anchor to their team. I just wonder with the macro around banks,

money center banks, and this gets into just picking in the financial sector right now when so many concerns around credit are there, net interest margins, net interest income. And that's the case where I think a lot of people are worried that banks are going to be performing in the second half of the year. J.P. Morgan is the name in the group. So it's a conservative spot. It's a portfolio pick, maybe not a stock draft pick. Yeah, for sure. All right. Very interesting. Very interesting. We have come to our, we're going to take a break. The first

round is moving right along. Still to come, our defending champions, the mountain goats, plus Flynamic, a Flynamic duo featuring a WNBA star and a CNBC star. The first, TikTok star and financial feminist, Tori Dunlop.

She's on the clock and she'll make her selection when this special edition of Power Lunch rolls on. Welcome back, everybody, to the 2023 stock draft, six picks. Already in the books, it's now time for our seventh pick of round number one. And speaking of books, our next guest is the author of The Financial Feminist, with a subtitle, we really can't say fully on TV. Her name is Tori Dunlop.

She's a financial planning expert with a big following on TikTok. Millions, actually, 2.3 million followers there. And her partner is Elias Rothbeck. They are the financial feminists. That's the name of the team. Tori, what is your selection and why? And for the financial feminists, we got to go with AMD, one of two companies of the stock picks that are run by women. So we are going with AMD for that reason. We got a back women CEOs. What's the other one? Oh, wait. It is Weight Watchers is the other one. Okay. I was like, I don't want to steal your pick next round there with that question.

It's also on the list. Weight Watchers. WW is on the list. See. Oh, okay. So Elias, tell us how you and Tori partnered up to come up with this pick and come up with this team. Yeah. Well, I think, like Tori said, we think great things happen when women have more financial knowledge, wealth.

And so we want to vote with our values and pick one of the two companies that has a women's CEO on this draft. But we also like, we think AMD is an underdog in the space. Obviously, Nvidia went first pick in the draft this year, but we think AMD benefits from the same trends around AI, around gaming, around everything digital and every aspect of our life. And so we're excited to back this company. All right, Melissa and Tim, we're going to break down the pick as former Dancing with the Stars host Tom Bergeron consults with his secret partner on the first pick there. You know, Melissa and Tim, AMD has been in this competition, I think practically every year. It's been a winner. It's been a dog.

I'd say it's been more of a winner. And if you think about the moves they've had, really, in those couple of years where they blew past Intel, blew past against everybody else. The concerns I have are going to always be about valuation. They're going to be about the move that semis have had. Remember, semis are probably up 30% as an asset class since that CPI low back in October. 24 times relative to itself, not terribly expensive. A little worried about data center. But at some point, we're going to get that bottom in semis.

I'm not sure we've had it. I'm a little cautious on this one. It's cyclical, of course. It follows the economy. If you think that we're headed for some sort of a recession, maybe this is not where you want to be. But Lisa Sue, what an executor in terms of in the CEO's suite, right? She's crushed it. So good that you guys flagged her.

She deserves it. Yeah, can hear Jim Kramer cheering. I will see what he thinks about this one in just a moment. But that sound means it's time to move on and to hear from Tom Bergeron. You've seen him on America's Funniest Home Videos or Dancing with the Stars. You've even seen him on the show with us. Yeah, he came over for a while. But you've never seen him competing with NFL players.

the stock picking contest until now. Team mic drop. Tom, what is your selection? Kelly, my first pick is Warner Brothers Discovery. I think the stock itself has gotten beaten up a bit. I know Succession is ending on HBO, but I'm a big James Gun fan, and I think he's going to revitalize all of that DC IP. Were any of your stocks, Tom, already off the table? Yeah. Were they? Which ones? Let's see. Amazon and United Health were among my list. A eclectic list. All right. And Tom gets the media name.

How appropriate. Melissa and Tim, what do you think? Streaming's tough. Streaming's been tough. And maybe that's the reason you want to own this. This is a stock that's down 40% year over year. I think we've seen a lot of bad news of the cyclicality of ad spend, et cetera, price into streaming.

Profitability, everybody knows they're all having trouble making money. And the question is, is that in the stock? I like the pick because I think you are getting out there and making a call in a company that they show a little bit of. progress on profitability, I think it's going to move. All right. It's one of those swing for the fences kind of stops, right? Sometimes

you swing, sometimes you strike out, Ty. But I know what that's likely. Tom, we'll see you in just a bit. It is now time for our defending champions. They are up. Ryan Reynolds has had a pretty exciting year. His soccer club, Rexham, won their league. His wireless company,

Mint Mobile, being bought. He and his wife, Blake lively had a new baby, but none of that, of course, none of that. compares with winning the CNBC stock draft. Unfortunately, all that stuff is keeping him pretty busy, too busy to join us today. But here he is nonetheless. Hey, CNBC, I'm so sorry that I can't be there live to defend our stock draft crown. I'm in feverish prep on Deadpool, so I can't participate in this year's money pool.

Anyway, Mark and I, we've discussed our picks, and he has my full faith and he has my confidence, unless, of course, we lose, in which case I'll blame him entirely. I will see you next year for the three Pete. All right, Mark Douglas, welcome. Good to have you back. Of course, sorry Ryan couldn't be here, but he has left it all in your hands. It is up to you.

What's your pick? Well, when we went with Netflix last year, I think it was kind of the perfect pick. Ryan has some of the biggest movies ever on Netflix, and I know ads obviously really well. So we're going to double down on Netflix. Yeah, I think it's priced into the stock. that there was an overcorrection last year,

but it's not priced in how big their ad business can get. This is a stunning pick. Yeah, going back, a double, doubling down. Has we ever had someone pick the same name? Now, maybe they should have if you were, you know, picking InVIDIA over the years. Mark, really, really? Two in a row?

Two in a row, although InVibio was my first pick. So Netflix moved up a slot. So I think that was an excellent thing. I was jealous right out the game. Number one pick. Well, at least you're honest and confessing that V-Vidio was your first pick. All right, Tim and Melissa, as you get your thoughts ready, what do you think here? I mean, I kind of feel like you start talking three-ped even before this year,

and I worry about just, you know, the hex factor there. Well, I mean, up 50%, 54% on Netflix year over year. Like, I'm long in the stock. I love what they do. I love the fact that they're one of the few streamers making money. Clearly, the content, what's going on out of the, there. It's Netflix, I think, and everybody else right now. And so I love the pick. I hate what they've done on the charts for this draft. And therefore, I'm going to say, you had a great

run with one. I'm not sure I would have done it again twice. Very interesting. Little criticism there, but we'll come back to Mark in just a bit. All right. And last but not least here in the first round, a partnership that could only happen at CNBC. Diamond DeShills of the WNBA's Dallas wings, teaming up with Gina Sanchez of Chantico Global together, they make up the Flynamic duo Diamond. Welcome. What's your pick? Yeah, you guys, y'all gave me the 10th pick, but Gina and I are still holding on.

So we're going to go with PayPal. Ooh. Why do you like that one? We like PayPal just because it's got a really high upside. But the revenues growing faster than expected, right? Like the cross-border transactions are making a comeback after the pandemic. And on top of that, they're launching the e-commerce platform, which hopefully we'll see some upward ticks there. You've done your homework.

Yeah, we feel good about PayPal. All right. Gina, what do you think of PayPal? Why do you like it? Look, I think that one thing that we've seen over the last couple of years is wage, growth for the first time. And that results in a lot of spending. And PayPal is a payment platform that benefits by transactions. And the more you grow wages, the more transactions you get, because it's growing wages. It's sort of the lower end of the spectrum. You're going to get

quite a bit of purchasing across all payment platforms. And PayPal is doing everything they can from an operational perspective to get their operational game, you know, and keep that operational game down. So we think they're poised for profitability. Very, very interesting. Melissa, Tim, your thoughts as we regroup now for the second round. Well, we got positive data points out of visa the other day. We did. And if you look at payments, it's a case where I think we have priced in a lot of negative news. I look at PayPal and I think the FlyNAMICs have it down here. This is a company that actually is priced not terribly expensive and certainly relative to itself. It's a PE I can get behind. I'm not sure if this is my first one, my first overall pick, but I like the first round pick or the 10th overall.

I think there are other diamonds in the rough here, but I do think it's a great place to be. Payments been beaten up. All right. Diamonds in the rough. I'm surprised no one's, you guys, what do you think? Cash app block? Blocks on the list, but I'm not here.

No one's jumped up on that one. We'll see. There's still a lot of stock draft to come. You guys just give them some people their winning picks there, Kelly. This is in fact just the first round. The first round is in the books here. We'll get once more through the order of our teams for the second selection. But first, the halftime entertainment.

Jim Kramer has been watching and listening will get his take on what we've seen so far in which stocks still out there. He thinks so much to snap up. The 2023 CNBC's stock draft continues right after this. Welcome back to the stock draft, everybody. If you're in the markets today, you could pretty much draft anything because we are up across the board and sharply. The Dow is now at 465 points, and that's the underperformer up 1.4%. The S&P up to 425, 1.7%. And the NASDAQ leading the way up 2.5% on the back of those strong earnings from META last night. All right. Here's a recap of what we've seen so far in our stock draft. We're going to look at some of the picks. Yeah, well, I'm just going to toss it over to our friend Jim Kramer for his

thoughts. Jim, we miss you in studio this year, but I know you've been watching every second of it. Which first round pick did you like the best? Well, first I have to say I'm riveted. People know the stories. I love that. Everything's cogent. There are some incredible, incredible ideas here that people have picked. And I've got to tell you, I know it's too boring, but I'll do it. But I have to go with the one I say, oh, don't trade. The one I named my late dog after one and only NVIDIA. I had a, I just asked our control room, your late dog. Wasn't the dog's name, NVIDIA? Invidia. And Charlotte, listen, when I went to NVIDIA, I guess maybe been there many times, a nice pilgrimage, the last time Jensen Wong,

the CEO gave me an identity card, and I said, oh, I can get in here anytime I went. But it was a picture of my dog in Vindia. That's the kind of CEO has attention to detail. This is a stock that has been a favorite of lots of people. It has also been one that had a rough year in what? Was it last year? Oh, yeah. Yeah.

But has come back a lot. Does it still have that quality that you taught me long ago for this kind of competition, that kind of home run potential. Well, look, it's interesting because Tom Bergerone picked a sink or swim idea, Warner Brothers. I like that, too, because I like the optionality. But what I say about Nvidia is I started liking at 16 when I saw that there were the chips in an Audi car. Literally, the Audi North American guy said you got to look into the stock. And what happens is it reinvents itself.

It is a cycle business. But what's in the hopper there, I don't mean that happens to be the next. chip basically as a hopper is so powerful. And if you go on eBay right now, one of the H-100s that powers the almost all of Geno of AI is on there for sale for $45,000. And you need both loads of those for if you're Microsoft, if you're Amazon, if you're Alphabet. And of course, the one that hasn't been picked yet, and I'm waiting, if you're meta, Metaverse. That's Mark Zuckerberg and Jensen Wong have a great relationship. All right, so that's a hint. Jim, thank you very much for your time. That's a hint of the stock that's left on the board out there that Jim might lean toward, were he here and competing. All right, round two of the CNBC stock draft is on the way. All our teams get one more pick. On the clock is our WWE superstar team.

Who! Charlotte Flair, who gets the Kramer endorsement for best pick of the first round. Her next pick is right after this break. All right, welcome back to a special edition of Power Launch. Our favorite day of the year, the stock draft. Round one is in the books, but all of our teams have one more pick to make. And let's get now to WWE superstar Charlotte Flair with the first pick of the second round. She picked Invidia in the first round, and you got the Kramer endorsement there for that big. Number one. And everyone else was upset about it.

Yeah. So what's your second round pick? Actually, number two is meta for me. I did think in the intro mentioned. Yeah. Are you on the phone with Kramer by the way? No, I'm actually embarrassed. But I think Instagram, WhatsApp and Facebook are great products.

But it's really what Meta is doing in the metaverse and with VR spaces. And that's what's going to take the company into the future. So Charlotte, we should add, you're not a rookie here. I mean, you know the stock market. Tell us a little bit about that. No, no, no, no, no. I've had great coaching. My friend, Steve, and then my financial planner, Linda.

So thanks to them, I can't take any credit. I actually think it's easier to wrestle in front of 80,000 people than be on Zoom picking these drafts. So no, no, no. I give them all the credit. If you do win, we're going to give you a belt like this one here, because I know it'll make you feel. It's heavy, man.

I need to work out like Charlotte. Yeah, just do a few pearls. I think I have one or two of those in my time. time. Yes. All right. It spins. All right.

Well, Melissa and Tim, we're going to get your thoughts on that pick as Sully's superstars. Sully, you are on the clock. Melissa and Tim, what do you think here? This. Meta. Yeah, that seems to be the problem with this stock as a stock draft pick. No, I mean, look, the stock's up 85% year to date.

Charlotte's got a flare for picking the companies that have had a major move. Of the, of the Fang, Mang stocks, this would probably be number five for me. Again, it's just based upon the move. I feel like the year of efficiency, Mr. Zuckerberg. How much more efficiency? We sprinkled some AI pixie dust, as we said the other night. I just feel like you've done the cost control. You've started to show some top line growth in Facebook.

That was the key to yesterday's move. But I think you've done a lot. And there's the sound. Thank you both. That indicates the next pick is in. We go back to Erica Sullivan, the Olympic silver medalist. She took Amazon in the first round. That's what Tim said would have been his number one pick in the mega cap tech space.

Erica, what do you pick for round two? This is probably my shot in the dark, but I'm going to do General Electric. Wow. Oh, why? I mean, it's had a pretty good year. I don't know. Go ahead, Erica. Yeah, so I'm looking a little bit more on, like, the further growth more than the last year,

and I think it only has places to improve. So I think I'm going to stick to that growing trajectory and just hope it holds on for a little bit longer. General Electric. General Electric. Wow. Not usually like a millennial. Do you have General Electric? I mean, Erica, that's not like a product you use every day like Amazon or maybe.

Definitely not. But I talked to a few people in my life. I feel like being Gen Z, I'm not very educated on the stock market. So I reached out to my peers. And they said that this wasn't too bad of a pick. Yeah, we had a guest on earlier this week, Erica. Oh, who liked it? I mean, it was Stephanie Link?

I think it was. I think the Stephanie Link, who like GE because she said spin-offs, which is what they're in the middle of, are often good ways to go. As Indomicon gets ready for his pick, let's go to you guys for reaction here. Well, boy, GE, one of the proud old franchises of their league, so to speak. I mean, this could be the Steelers or the Cowboys or one of these teams that's been there for years and always been there. What they've done over the last couple of years, it's been about selling down Baker Hughes. It's been about GE health care. It's been about these places where there are some of the.

parts is actually starting to be valued. You've moved 50% though. So this is not the kind of a pick I could make at this point of this draft. I'm a GE shareholder. I'm happy to see what we have here, but I think we've done a lot. All right, time for the third pick of the second round,

and we turn to the Super Bowl champ. Once with the Tampa Bay Buccaneers, last year he's with the Eagles. And Domican Sue, he chose United Health last round, and Melissa pointed out that technician Carter Worth has called, it's called it godlike UNH.

So what's your, I've got to say, Endomicon, I have enjoyed watching you play for so long. It's really a pleasure to watch all these guys play. But you've been a real game changer wherever you've gone. But anyhow, let's get back to your pick. I definitely appreciate that. I try to be a game changer. And I'm thinking this pick that I have will be a game changer in Peloton. All right.

Ooh, wow. I'll be doggone. Because you know what? If somebody asked me, what would I pick as my long shot shot? it would have been exactly that. Really? Warren Buffett would not pick that. Yes.

Warren would probably not pick it, but I got faith in Barry, their new CEO, the thing that he's looking to do with the company and restructure and hopefully get them to break even and cash flow positive. And I think there'll be an opportunity

for them to be acquired in the future. So I've got good hopes and I think Barry will get the job done over there. And he has those roots of Spotify and Netflix as well. All right. C.J. Mosley is now on the clock. but Tim and Melissa, what do you think here? This is a long, long, long shot. Definitely in the category of Swing from the Fences.

So Mr. Swing from the Fences, because you've done this before. I love swinging for the, I love what he did here. In my power rankings, I had this as the number nine overall pick in the draft out of the 50 or so. So I love the pick. Very different than UNH if you think about where he went with his first round. And if you think about this company, this is now about where I think they might start to show some top line growth again for the first time. If you see even a little bit of that, this is where things go from terrible to, just bad and you outperform. So I love this pick. Very, very interesting. And making the point

that they could be an acquire, an acquisition target as well. Interesting little more catalysts. A little carbonation in the drink there. Let's go back to the New York Jets training facility now. Yesterday hosting Aaron Rogers introductory press conference. Today, the CNBC stock draft, busy time, CJ and Florin Park. You pick PNG first round sticking with the adage of Buy What You Know. Got us all rooting for maybe a sponsorship here. What's your second pick? Second pick, we're going with Goldman Sachs. Wow!

Is that a buy-what-what-you-know thing as well? Not so much by what you know. More of a, I'm a captain of a New York Jets. Goldman Sachs is a company that's based out of New York, one of the largest investment banks. You know, I deal with investments with my off-field, off-field brands and with my company. And speaking of investments, speaking of, you know, banks breaking the bank, you know, we just got Aaron Rogers. So speaking of investments, there we go right there. Yeah, you guys. That's another way to go. Just speak it to my heart.

You've got a really cool team that's in the middle of, I mean, I'm telling you, if the New York Jets were a stock in the draft, I'd pick it because you guys are going up. How important is Rogers going to be to you all? And what kind of game changer do you expect him to be in the huddle? You play on the other side of the ball, but what kind of teammate? I mean, I expect him to be, you know, be an instant captain, an instant leader, you know, guys that's going to, you know, ignite the fire that some people may not have had in the past in the building or, you know, wherever. But, you know, just him, his presence being around, you know, just going to build something, you know, for us to keep believing in and keep fighting for, you know, the last two, three years since Coast Solid got here, you know, we always talked about, you know, trying to, you know, build up to this spot and get to this spot and stay consistent, you know, with the quarterback. like Aaron like we have, you know, we definitely have that chance to do that. You know, it's easier said to done.

No, just because he's here, just because we signed it doesn't mean, you know, one thing. Like, nobody's afraid of us. We know that for sure. So we got to really go out there and put into work this offseason and, you know, moving forward. I don't know about that. I mean, I think there's some teams that are afraid of you and your defense last year was one of the best in the league. We don't want them to be afraid. We don't want them to be afraid.

Well, promise me this. You'll just let you'll go up and you will kick the Patriots, you know what, okay? That's what we really care about here. All right. Yeah, they got us a few times. Yeah. We got it. Well, you've got good loyal fans who've had some lean years, but I think that the trajectory is up there.

Let's, what do you think of the pick here? I just say something. Speaking of being afraid, I think D.K. better be afraid coming across the middle on C.J. After the shade, he's been throwing here on the stock draft. If we're doing this at the stock draft, you can imagine what we're going to do on the field. That's awesome. I love the Goldman Sachs. pick just because, again, I think you're getting Goldman a little cheaper than you might based upon

Nesvon. I do because I also think that you never count Goldman out. And in the year that we are all pricing banks not to perform, but it is a little bit out there for me. There's a little bit of hair on this in terms of the consumer bank and capital market's not doing what you want it to do in the next year. But, you know, I just feel like you don't count Goldman out. We've seen that over and over again, and I wouldn't count them out here. But you like that pick. Yeah, I like the pick. It's, again, it's consistent. CJ's, I see what he's doing there between the P&G and the Goldman. He's playing it safe.

Sometimes that's the best way to win. All right. Let's turn now. Let's go across to the Seahawks and D.K. Metcalfe second pick. He chose Charles Schwab, I think it was in the first round. Charles Schwab, D.K. and Joe McLean, what's your pick in this round? I'm out. Tim, don't bring me into your beef now.

It's between you and C. But, no. I mean, I got a newfound, you know, respect for GMs and head coaches. This is a tough decision. But we're going to Disney. Oh, wow. Okay. Disney.

Joe, what do you like about Disney? You know what? I love the fact that my kids own it and we get to go to Disneyland and they see all the other kids buying tickets. And they know a little bit of that revenue is going into their pocket. And if we look at the next six, seven months, we may get back to those 21, 22 highs. Joe, do you work with Chris Grissanti over there? at MAI? We do. That's, you know, it's a person, his team's in the back room helping us right now. That's amazing. And I was going to ask, Joe, I mean, we look at kind of banner guys like you who get

to work with the NFL players. I mean, this is probably the most important role. We talked to D.K. last hour about, you know, his ambitions. What's your advice for everybody, whether it's, he said the team is named, oh, not loan for a reason. Just explain that for a minute. Yeah, I mean, as D.K. wants to do, he's building his own enterprise for life off the field and ownership and everything you do, I think, is super critical and not just use other brands as an endorsement or a path-through entity. This is really exciting for D.K., getting out of our comfort zone a little bit, and hopefully we'll be back next year as champs. D.K., you had a quarterback in Gino Smith who really came through in the last year. How do you explain that? I mean, it was just

really a remarkable season that he had. Yes, sir. I mean, it was just him. all along, man. Just his work ethic and how he came into the building every day. You know, when people capitalize on their second chances, man, it just really shows and just blessings to him and his payday that he got. But, you know, just looking forward to building with him in the future.

Yeah, well, it was an inspiring season to watch. Tim, Melissa, what do you think? You own this one. I own this one, and I know I'm going toe to toe right now with DK, but I mean, I think you got to, this is a great pick. This is number seven or eight on my power rankings. Never count

out. He's got a lot of levers to pull. If you look at this stock, $95 going back five years is a great level on the stock. I think you've priced, again, Disney can beat you in so many ways, whether it's the parks, whether it's the streaming, whether it's the studio. And I love what, no one's counting on Disney for anything right now. And I think it's a good time. Can you believe we are halfway through the second round of the CNBC stock draft? On the clock now, the students of the Rutgers University Investment Club. He'll make their pick next on the CNBC stock draft. Welcome back to the CNBC stock draft. We only have five picks remaining, if you can believe it. Up next, the Rutgers Student Investment Club,

they chose J.P. Morgan in the first round, banking partially on Jamie Diamond's leadership. They called the Bank the Elusive Franchise Quarterback. Here to make this pick, Rahan Marad rejoins us. Or Rahan. So, all right, time's up. That's the sound. What is your second and final draft pick today? So first, thanks for having us.

And Becky, thanks for the support. With our second pick, we're going with a bit of a hidden gem. We like Boot Barn. Ooh, wow. Boot Barn. Into the cowboy boots? Yeah, so we think that there's a resurgence of interest in the Western culture, and we think that Boot Barn, which sells cowboy boots, cowboy hats, overalls,

and basically everything Western is going to have a strong year moving forward. We think that it's growing like its weed. Its customers love the product, and really it's cheap. So we think that this is the stock that can finally dethrone Ryan Reynolds and the Mountain Goats. Was there a stock that fell off the board that you would have liked to? have picked. Yeah, there's a lot of football players here today, and unfortunately, I think CJ and D.K. intercepted our pick. We liked Schwab in the first round. Really? You would have loved to have that. All right. All right. Well, let's get, as Tori Dunlap gets on the clock for

her next pick, let's turn to Tim and Melissa. What do you think here, Boot Barn? I wonder if anybody out there saying, oh, Boot Barn's taken. What am I going to do now? I mean, it's really, I mean, that much of a hidden gem here. You love a good cowboy hat, Mel. I've seen you It's from boot barn, actually. Well, I mean, think of all the folks from California who are now moving to Texas and need to get their gear on. This is exactly what's going on. I actually love this pick because it's 12 times earnings. It's not expensive relative to itself.

It's down 20% going into the draft. And again, I think there are new people wearing overalls and boots and hats and, you know, might even be us soon. A lot of those bankers at J.P. Morgan, their first round pick, will be wearing boot bar and boots as we move forward. That sounds means it's time for Tori Dunlap. She's also cited the CEO of her first pick as the reason they chose it, putting their faith in AMD and Lisa Sue. Tim warned on valuation and the semispace in general, but Mel was also a fan of Lisa Sue.

So what's your second pick? Yeah, we're going in a bit of a different direction. We're picking Microsoft. All right. We are Seattle natives ourselves, and we really are interested in their partnership with OpenAI, and, of course, they have a good bread and butter product. They've been here for a long time.

And so we're really excited to see how they perform. Elias, your thoughts on Microsoft. Like Tori said, we have to go with one of the hometown favorites as Seattleites. It's been really inspiring to watch Satinadella in his 10-year-as CEO, take the company that's something that many people, I think, had a little bit written off and have one of the most inspiring comeback. stories. And like Tori said, we like the combination of a really strong enterprise business with some of the best distribution in the world and then the ability to make exciting new bets like

they're doing with Open AI and I think more things to come. All right. There's the explanation, the rationale. Tom Bergeron's getting ready to drop the mic for his next pick. But Tim and Melissa, what do you think here? Microsoft has been a winner. This is AI. Wow. This move is AI. And this move is outperforming the S&P by 23% from that bottom. So it's really moved. I mean, you can't stop. You can only hope to contain Microsoft. But I feel like this is one that's had a massive, massive run with a lot of great news priced in.

We still haven't heard about any weakness in Enterprise. Maybe that's maybe you're not going to. I think this is one who's had their best days, at least from a stock draft perspective, in the last 12 months. Very interesting. Well, all right. A little critical point of view there. I mean, it's hard not to agree, right? Can it keep getting better?

Maybe it can. Let's turn to Tom Bergeron. Mike drop team for your second pick. Warner Brothers Discovery, one of the kind of flyers of the first round, the streamers have been having a tough go, but you're cautiously optimistic saying bad news could be priced in. Kramer liked it, too. He really singled this one out, Tom.

What's your second pick? Yeah. Well, I'll be interested if Kramer likes this one. I'm going with gold. Because we have a recession, a soft landing, a stagflation, or God forbid, the stock market goes right in the crapper. You're going to want to hug some bullion. So I'm going with gold. For a second, I was trying to think of what ticker that company was because we have gold in here.

By the way, we have crypto, Tom. No love for crypto this year. We have oil. Why not oil? I almost went with crypto instead of gold. But, you know, I don't understand it at all. I have no idea. I watched a whole documentary about crypto and all I got out of it was a migraine.

Yeah. Some would say that about gold, you know, that it doesn't really, you know, have any real basis for its value. Well, it's just, you know, it has some history. I'm going with that. All right. There you have it. Melissa and Tim, what do you think? We know you like gold.

I like gold. I feel also in this environment for the reasons Tom pointed out, you know, gold is like drafting a cornerback from the SEC. You're good here. Like, no matter what, you're going. going to be fine. Gold's also really challenged those highs from last year and actually a breakout level. There's a lot of reasons to own gold. We joke about that. Almost any reason is the reason to own gold when you want to advocate. But again, lower than expected inflation, some inflation, some stagflation, and central banks diversifying. I think this is all the gold

recipe. All right. So an endorsement there for gold and Tom Bergeron. Time now for the second to last pick of the 2023 stock draft. Ryan Reynolds putting all his face, in Mark Douglas, the name that led them to victory last year in the draft. Netflix, that was the first round pick. Tim Seymour, not so sure it's going to lead to a three-peat, not loving the chart there. Mark, your second round pick. Yeah, so I really believe my investment philosophy is invest in products, not stocks. And so the product I'm going to invest in, which happens to be a stock, is Lulu Lemon. Wondering if Lulu was ever going to come off the board. Tell us why.

Well, I think that the product, the athleisure market still has a lot of growth. And the Lulu is literally the premier company in that market. And I think as people can start to go to work, stay home. There's a lot, still stay home also. There's a lot of room for growth there. You go to their stores and they are invariably not packed with people, but they're doing a brisk business. You can see that they have good quality products.

and the crowds, like an Apple store, there are people in them all the time. Yeah, exactly. And I go to the stores that's the exact same thing. I've never gone to Lulu Lemon store and was number one online to check out. So that's a stock I just wanted to invest in. All right. Downward Goat with Lulu Lemon. All right, we've got Diamond DeShields.

You're on the clock. We just want to warn you. Melissa and Tim, what do you think of the mountain goat pick of Lulu Lemon? They got past a huge inventory problem. earlier this year. So they work through that. And so that's part of what this most recent run is here. But what do you think? Well, but again, you're looking at, you know, maybe this is a double top of 360 of discretionary. Lulu and Nike are the names. Ty, I know you probably do throw those yoga pants on and look great in them. And that's the story here. Because again,

whether you actually are someone that practices yoga or you just like to look like you do, this is where you go. It's cream of the crop discretionary. It's not cheap. And that's what I worry about here. All right. Yeah. Yeah. The yoga pants. I pair the yoga pants in my case with weight watchers and then we'd be good. All right. You're looking good. All right. Last but certainly not least, Diamond DeShields and her partner, Gina Sanchez, the FlyNAMIC duo. You guys are up. PayPal in round one. Tim saying the Flynamics have it down here and saying payments are a great place to be. Diamond, you're on now. What's your picking round two?

Yeah, so we're just going to cap. We're just going to cap this year's stock draft off with a Google pick. Oh, wow. Google. Yeah. Gina, what do you think here? And why? What's the rationale?

Well, Google has tremendous products at command eyeball. And even though ad spending is down, Google is a defensive place where people still want to spend ads. And they're making huge investments into continued AI and deep computing. And, you know, this is the company that brought you Google. Maps. This is the company that brought you, you know, Google search. And, you know, we think that they're going to continue and they're expanding into the cloud space. And that, that world is only getting bigger. You know, Diamond, I was really struck during March Madness this year that some of the women's games were like the most highly rated things on TV, outranking, all other kinds of

things that were going on, WMBA's, but on the rise, too. If we wanted a stock pick about WNBA success or something, you know what do you think? What do you think? Give us some investment advice, I don't know. What's driving this interest, do you think? Oh, man, you know, I just think that the product is finally getting put out for people to see. I think that exposure is really important. So as we continue to have games that are being accessible to, you know, the average person, I haven't met a person who has come to a WMB game, NBA game and didn't leave a fan of the game. So I think that as we continue to just be more televised,

in front of, in households across the globe, really, the game is going to continue to grow because it's just such a great product. All right. All right. Let's get some reaction to the Google choice there. Melissa and Tim, take it away. Cloud is profitable, finally. If they can get the AI narrative right in terms of talking about it in a tangible way,

how they're making money off of it, it feels like it could be a little bit of Microsoft in it. Well, and yet it's Google, and somehow we don't believe they're going to get AI right. I mean, come on. I look at the stock. It's down 15% year over year. If I'm putting a team together and putting a franchise together from scratch, Google is clearly a foundation of that. Five tool player, double D got it right. In addition to the NBA, WMBA hitting new heights here. I actually think Google's going to hit new heights. And I think of, again, of the mega cap tech names. This and Amazon are the ones that are best positioned going into this draft. So I would call that an endorsement of that pick. Diamond, congratulations. We should have had diamonds on the list of possible investments. But we didn't. All right. That brings us to the end of the picks in the 2023 draft. Let's bring in Jim Kramer now. Jim, come the Friday before the Super Bowl next February, which team do you think will be the winner? Well, I understand, of course, it will be in reality the Eagles, and I'll be there.

I'll tell you, first I just want to say, I learned so much from our contestants. They're just extraordinary, and their insight to their industries are really great. I have to tell, I'm going to go. I think in Dominic's student, not just because he was an eagle, and I sure hope he comes back, but I don't know. Remarkable. Just fantastic calls. I like them because they are all weather calls. We have to worry a little bit more about the economy than most of the folks do out here.

And I'm going with him. I think he wins. And United Health. And Domica, that's, yeah, and I was saying, I thought, you know, as I said, I've learned from you, that you've got to throw some long bombs in this game to win. There's no longer bomb here, Tim, than that. Again, I look at the balance in this portfolio. It's a true barbell approach here.

So love what the upside could be in Peloton. And UNH to me is one of the great companies out there. Jim? Unbelievable. Is there, Jim, a stock that is still on the... Why do people not pick Caterpillar? Yeah, why is there the shorts today? Why would they?

We've got the shorts. But listen, we've got the shorts trap like rats right here, right now. And I got to tell you, Jim Muppel, he's going to spring the trap when he comes on mad money this evening. All right. Well, awesome stuff. Thank you very much. That does it for the 2023 draft. But the season starts now.

Follow along all year at CNBC.com slash stock draft. The winner will be crowned the Friday before the Super Bowl the 9th of February. Thanks to everybody here for joining us today. Guys. We really appreciate it. Thanks to Rutgers. Mr. Chairman for their analysis. Tyler, it's been a pleasure.

Thank you, everybody, for tuning into the stock draft. Thank you.