>>> IT'S 9:00 A.M. HERE IN NEW YORK CITY. THIS IS YAHOO FINANCE'S FLAGSHIP SHOW, "MORNING BRIEF," HELPING YOU THE INVESTOR MAKE SMARTER DECISION. >> GUESS WHAT? WE SAID IT YESTERDAY, AND WE'RE GOING TO SAY IT AGAINST. WE HAVE A PACKED SHOW FOR YOU TODAY, HOWEVER, LOOK AT THE FUTURES, WE COULD BE SET FOR OUR FIRST OPEN ABOVE THAT LEVEL. WE'LL SEE WHERE WE CLOSE ULTIMATELY, BUT A LOT OF ECONOMIC DATA. >> AND FOR NOW THE CPI REVISIONS OFFERING SOME RELIEF FOR INVESTORS. THIS COMES AS THEY DIGEST THE LATEST ROUND OF EARNINGS. EXPEDIA AND PEPSI AMONG THE COMPANIES SETTING THE TONE AHEAD OF THE BELL. >>> LET'S GET TO IT WITH THE THREE THINGS YOU NEED TO NO. JOSH SCHAFER, BRIAN SOZZI AND JOSH LIPTON HAVE MORE. >> HEY, BRAD, STOCK FUTURES EDGING HIGHER AHEAD OF THE OPENING BELL, INVESTORS WATCHING TO SEE IF THE S&P 500 WILL CLOSE ABOVE 5,000. THEY CROSSED THAT SCLOJ LOOK LEVEL ON THURSDAY, AS MANY COMPANIES SURPRISE TO THE UP SIDE. PEPSICO REPORTING SOME SIGNS OF WEAKNESS ACROSS THE BEVERAGE AND FRITO-LAY DIVISION. THE CEO HAD UPDATE MOMENTS AGO IN MY CHAT WITH HIM A SHORT TIME AGO. >>> AND SOCIAL MEDIA PLATFORMS FOURTH QUARTER REVENUE MISSING THE STREET'S EXPECTATIONS AND ISSUED WEEK GUIDANCE. PINTEREST FOLLOWING SNAP WITH A SLUGGISH HOLIDAY QUARTER, AS THE COMPANY CONTINUES TO STRUGGLE WITH GROWING ITS AD DOLLARS. ♪ >>> OUR TOP STORY THIS FRIDAY MORNING, STOCK FUTURES MOVING TO THE UP SIDE. WALL STREET WAITING TO SEE IF THE S&P 500 CAN CLOSE ABOVE THAT HISTORIC MARK. WE HAVE TO OPEN UP BEFORE WE CAN CLOSE. HERE AT THE DESK JOSH SCHAFER IS WITH US. >> HEY, BRAD. I SPENT A LOT OF YESTERDAY AFTERNOON STARING AT THE S&P 500 PAGE, JUST LOOKING AT IT, AND IT DIDN'T MOVE THAT WAS. IT WAS INTERESTING, ONE OF THE LOWERS RANGES -- ONE OF THE SMALLEST RANGES WE HAVE SEEN FOR THE S&P 500 IN 2 1/2 YEARS. IT WAS ROUGHLY FLAT FOR ALMOST THE ENTIRE DAY. IT REALLY DIDN'T MOVE THAT WAS. IT WAS SORT OF A FUN DAY IF YOU'RE, YOU KNOW, MAYBE TOO INTO THE MARKET LIKE I AM, BUT THERE WASN'T A LOT OF FIREWORKS TO COME WITH THAT. I THINK, GUYS, WE'VE BEEN TALKED ABOUT THIS TO START THE SHOW, WE HAVEN'T SEEN A LOT OF CATALYST COME THROUGH HERE. WE HAVEN'T HEARD A NEW NARRATIVE REALLY FROM THE DIFFERENT FED OFFICIALS THAT HAVE BEEN SPEAKING. WE HAVEN'T HAD A BLOWOUT EARNINGS MISS THAT MAKES EVERYONE PANIC A BIT. CPI REVISIONS CAME IN FINE, SO REALLY WE HAVEN'T HAD ANYTHING TO THE DOWN SIDE YET. >> IT SEEMS LIKE YOU NEED MORE GOING ON IN THE PERSONAL LIFE BUT, JOSH, AS WE SHIFT OUR FOCUS, OBVIOUSLY THERE WILL BE A LOT OF VERY CLOSELY WATCHING THIS WEEK, BUT THE MAIN DRIVER OF THE MARKETS WILL BE THE INFLATION PRINTS WE'RE GIDGET. REVISIONS, A BIT OF A RELIEF, HOW DOES THAT SET US UP AHEAD OF NEXT WEEK'S REPORT. >> YOU LOOK AT THE CPI ESTIMATES FOR NEXT WEEK, APPEARED WHAT WE'RE LOOKING FOR IS PRETTY BIG, A PRETTY BIG JUMP DOWN. MONTH OVER MONTH COMING IN AT 2%, AND CORE PCI EXPECTED TO COME IN ALSO LOWER AT 3% YEAR OVER YEAR. SO WE'RE GETTING TO THE POINT WHERE IT'S EXPECTED THAT INFLATION IS GOING TO BE COMING DOWN. THAT'S SORT OF WHAT PEOPLE HAD PRICED INTO THE MARKET. THAT'S THE EXPECTATION. WE KNOW INFLATION IS DOWN IN THE PATH, SO YOU HAVE A BIT OF A RISK. MAYBE THAT'S WHAT FINALLY SENDS US DOWN TALKING ABOUT RECORD HIGHS EVERY DAY. >> 5,000 TODAY. >> BRING A FRIDAY VIBE, C'MON. >> I'M TRYING. WE HAVE ABOUT 25 MINUTES TO THE START OF TRADE AND WE HAVE SOME TIME UNTIL WE CAN ULTIMATELY CLOSE AT THAT MARKET. JOSH, THANKS FOR SETTING UP THE TRADING ACTIVITY FOR US. >>> WE'RE ALSO TRACKING SHARES OF PEPSICO, AFTER REPORTING A RARE DROP IN REVENUE. THERE WERE SOME BRIGHT SPOTS IN THE QUARTER, AS THE COMPANY POSTED A BEAT ON PROFIT, THANKS TO LOWER CHARGES AND CONTINUED PRICE HIKES. FOR MORE WE GO TO YAHOO FINANCE'S EXECUTIVE EDITOR BRIAN SOZZI. INVESTORS SNACKING ON SHARES OF PEPSICO, RIGHT? A BIT OF HUMOR? >> I LIKED IT. >> PEPSICO SHARES INITIALLY BID DOWN AS A RESULT OF THESE RESULTS. THE BEVERAGE UNIT AND THE FRITO-LAY DIVISION MARKETS, INVESTORS NEVER LIKE TO SEE ANY WEAKNESS RELATED TO FRITO-LAY. VOLUME DECLINE IN ALL SEGMENTS. I THINK INFLATION WAS A BIT STICKIER THAN INVESTORS EXPECTED. THAT IMPACTING A LOT OF DIVISIONS, WHETHER IT'S SUGAR PRICES, CORN PRICES, WHATEVER IT IS. SO I CAUGHT UP WITH PEPSICO WE TALKED TO HIM A COUPLE WEEKS AGO IN DAVOS, AND HE HAD AN UPBEAT TONE. PERHAPS GRAVITATING TOWARD MORE AFFORDABLE -- I THINK HE'S STILL OPTIMISTIC ON THE CONSUMER. I THINK I WOULD TAKE THIS QUARTER LIKE THIS. THESE ARE SOME OF THE BEST OPERATORS IN THE ENTIRE STOCK MARKET. SO PEPSICO COMES OUT AND MAYBE REPORTS A MIXED QUARTER. THERE'S SOME CONCERN ABOUT THE GUIDANCE, HOW GOOD OR HOW HIGH QUALITY WAS THAT EARNINGS OUTLOOK. THEY'RE LIKELY TO GET MARGINS WHERE THEY NEED TO BE. PEPSI HATES NOT DELIVER ON THE EARNINGS EXPECTATION, AND THEY HATE NOT -- SO NOT A PERFECT QUARTER, JEFFRIES SAYING IT WAS AN OKAY QUARTER. I WOULD AGREE WITH THAT, BUT THE MARKET HAS TAKEN A WAIT-AND-SEE APPROACH. >> WHAT DO YOU THINK ABOUT THE APPROACH TO PRICING? OBVIOUSLY THEY'VE BEEN FORCED TO RAISE PRICES, BUT FROM YOUR CONVERSATIONS HERE THIS MORNING, BUT HOW CEOs ARE WALKING THAT FINE LINE, THEY NEED TO RAISE PRICES, BUT THEY'RE ALSO HANDICAPPED, BECAUSE THE CONSUMER, ON THE OTHER HAND IS UNDER PRESSURE. >> LOOK, ALL THESE FOOD COMPANIES RAISED PRICES, BECAUSE THEIR OWN COST OF DOING BUSINESS ARE GOING UP. THEY HAVE ALSO RAISED PRICES BY TAKING A COUPLE CHIPS OUT OF THE BAG. THIS IS WHAT FOOD MAKERS DO. IT'S CALLED SHRINK-FLATION, THAT'S ONE WAY TO RAISE THEIR PRICE. PEPSICO IS FOCUSED ON SMALL PACK SIZES AND USING THAT TO GET A LOT OF -- BY AND LARGE, GIVEN THE INFLATION THEY SAW, SOME OF THE PRESSURES, THIS WASN'T A BAD QUARTER, JUST NOT ONE OF THOSE OLD-FASHIONED BLOWOUT QUARTERS. >> SOME INVESTORS STILL PUSHES HIPS ONTO THE TABLE HERE. >> WOW. >> WHAT'S YOUR SUPER BOWL SNACK? >> IT'S GOT TO BE WINGS. >> OH, MY GOSH, YOU GUYS ARE MISSING OUT. >> YOUR TRADEMARK GUAC? >> NOT ONLY THAT, BUT -- I'M INTO BUD LIGHT. THAT'S MY TIP FOR EVERYONE. SOZZ, THANKS. >>> THE BIG MOVER THIS MORNING TO THE DOWN SIDE, IS PINTEREST, UNDER PRESSURE, OFF ABOUT 7%, A BIG SALES MISS IN THE FOURTH QUARTER, POINTING TO A SLOW REBOUND OR STRUGGLING DIGITAL ADVERTISING BUSINESS. THE SOCIAL MEDIA COMPANY PROVIDING A SOFTERS REVENUE OUTLOOK. LET'S BRING IT ALL DOWN WITH MORNINGSTAR'S SENIOR EQUITY ANALYST. FIRST, NOT TOO MUCH FOCUSING ON THE STOCK AND SHARE PRICE REACTION TO THIS REPORT, BUT WHAT WE DID LEARN HERE FROM PINTEREST. WE WERE DRAWING COMPARISONS TO SOME OF THE WEAKNESS WE SAW IN SNAP. WHAT WAS YOUR TAKEAWAY FROM THIS QUARTER, AND JUST THE ABILITY OF SOME OF THESE SMALLER PLAYERS TO COMPETE? >> MY OVERALL TAKEAWAY WAS PRETTY POSITIVE. I THINK IN TERMS OF MAKING PROGRESS BY THESE SMALLER PLAYERS, YOU SAW A FEW THINGS. ONE, USER GROWTH CONTINUED TO THE MONETIZATION OF THOSE USERS CONTINUED, PARTIALLY BECAUSE THERE'S ENGAGEMENT AND THREE, OF COURSE, THE AD SPENDING BY THE ADVERTISERS, YOU KNOW, THEY SHOWED MORE LOYALTY, I SHOULD SAY, TO THE PLATFORM. THEY'RE UTILIZING MORE THAN ONE OF THEIR AD TOOLS TO LAUNCH CAMPAIGNS AND TO PURCHASE AD INVENTORY. THE FINAL THING WAS MARGIN EXPANSION. I THINK IT WAS PRETTY IMPRESSIVE, WHICH SHOWS WHAT WE'VE BEEN SAYING ALL ALONG, THAT THESE GUYS, ALONG WITH META, THEY HAVE A NETWORK EFFECT. THERE IS THAT FLYWHEEL, AND IT'S STARTING TO TURN FOR PINTEREST. WE UPPED OUR VALUATION TO $43 A SHARE, AND WE STILL THINK IT'S CURRENTLY FAIR LIVER VALUED. >> WHAT DO YOU SEE IN TERMS OF THE ABILITY FOR PINTEREST TO CLOSE THE GAP OVER TIME BETWEEN ADVERTISING REVENUE RELATIVE TO EMBRYOS GROWTH? IT SEEMS LIKE THEY'RE PRIORITIZING THAT, TO MAKE SURE THEY FEEL LIKE ADVERTISERS ARE GETTING MORE BANG FOR THEIR BUCK, BUT INVESTORS, AT LEAST WANT TO SEE THAT RECOGNIZED IN REVENUE AND FLOWING THROUGH TO THE AL MIGHTY NUMBER, AND WHAT STEPS DO THEY NEED TO TAKE TO GET THAT DONE? >> I THINK BASICALLY INCREASE THE LOYALTY OF THE ADVERTISERS TO THAT PLATFORM, SO, TAKE SOME STEPS, PROVIDING THEM VARIOUS TYPES OF AD TOOLS IN ORDER TO HELP THE ADVERTISERS MEET THEIR OBJECTIVES. THEIR OBJECTIVES VARY, RIGHT? YOU HAVE THESE GUYS THAT STARTED OFF A FEW YEARS AGO WITH ATTRACTING MORE BROAD-BASED OR BRAND ADVERTISING. NOW, OF COURSE, MOST OF THE ADVERTISERS ARE LOOKING FOR THE SHORT-TERM OBJECTIVE, LOOKING FOR THE CONVERSION OR DIRECT RESPONSE TYPE OF ADVERTISING TO TAKE PLACE, AND THEY HAVE PROCESS OF ON THAT FRONT. IF THEY PROVIDE THE -- THAT OVER TIME YOU COULD SEE ADVERTISERS MORE PERMANENTLY OR MORE LONG TERM ADVOCATE THEIR BUDGET TOWARD THAT PLATFORM. WE'RE SEEING THAT TO START, AT LEAST BASED ON THE Q4 NUMBERS. >> SOME OF THE BIGGEST CHALLENGES HERE FACING PRINT TRE, OBVIOUSLY, SLOWER GROWTH HERE IN THE U.S. AND GLOBALLY. HOW ARE YOU FACTORS THAT IN? THERE IS A LOT OF UNCERTAINTY WHEN YOU THINK ABOUT WHAT'S HAPPENING HERE IN THE U.S., BUT ALSO WHAT'S HAPPENING AROUND THE WORLD. >> THERE IS, ESPECIALLY THE INSTABILITY IN THE MIDDLE EAST AND, OF COURSE, SLOWDOWN IN THE ECONOMY AS YOU MENTIONED. I THINK WHAT THESE GUYS ARE FOCUSSING ON, THAT DIRECT RESPONSIBLE, RIGHT? IN TIMES OF UNCERTAINTY, THE ADVERTISERS LOOKED FOR THAT IMMEDIATE OR SHORT-TERM CONVERSION. THEY WANT THAT CLICK FROM THE WEBSITE FOR THAT USER TO MAKE A PURCHASE RIGHT AWAY. THAT'S THE DIRECT RESPONSE. THESE GUYS ARE PROGRESSING ON THAT FRONT. AGAIN, OF COURSE, YOU KNOW, MORE ADVERTISERS BASICALLY ALLOCATING BIGGER TRUNK OF THAT BUDGET. THAT BUDGET, THAT ENTIRE PIE MAY BE REDUCED A BIT BUT ALLOCATING A BIGGER SLICE TOWARD OF PINTEREST PLATFORM. WE'RE SEEING THESE GUYS PROGRESS ON THAT FRONT. >> 40% OF THEIR USER BASE, NOW, FROM YOUR PERSPECTIVE IS IT SAFE FOR PINTEREST TO BET THE HOUSE ON GEN-Z? >> I DON'T THINK THEY'RE BETTING ON GEN-Z. THEY NEED TO ATTRACT VARIOUS USERS OF VARIOUS GENERATIONS. I THINK THEY'RE DOING THAT. YOU NEED TO MAINTAIN THOSE USERS AS THEY GROW, AS THEY MATURE, AS THEY OF COURSE BECOME FULL-TIME EMPLOYED, AS THEY START TO SPEND MORE, AS THEY START TO FOCUS MORE ON DECORATING THEIR NEWLY PURCHASED HOMES, AND SO FORTH. I THINK THEY WANT TO MAKE SURE THEY MAINTAIN THAT BALANCE. GROWTH ON THAT GEN Z FRONT WAS PRETTY IMPRESSIVE. >> ALSO A NEW PARTNERSHIP WITH GOOGLE ADS. HOW BIG OF A BOOTH TO SEE THAT FOR USER MONETIZATION. >> I THINK IT IS. THESE GUYS HAVE BEEN WHAT WE REFERRED TO AS A WALLED GARDEN FOR A WHILE. THEY'RE SELLING THE ADS TO ADVERTISERS THEMSELVES. GOOGLE HELPS THEM IN TERMS OF INCREASING MONETIZATION ON THE INTERNATIONAL FRONT AMAZON HERE IN THE UNITED STATES HAS DONE WELL HERE, BUT I THINK GOOGLE WITH HELP THEM MORE ON THE INTERNATIONAL FRONT, BUT YOU LOOKED AT THE RPUs OR AVERAGE REVENUE PER USER, COMPARED TO WHAT THEY DID IN THE UNITED STATES, THE GAP WAS VERY, VERY BIG. SO, I THINK THAT PARTNERSHIP WITH GOOGLE WILL HELP TO NARROW THAT GAP OVER TIME. >> ALI, ALWAYS GREAT TO TALK WITH YOU THIS MORNING. MORNINGSTAR'S SENIOR EQUITY ANALYST, THANKS. >> SURE. >>> COMING UP, BIG INTERVIEWS OVER THE NEXT COUPLE HOURS. FIRST UP, MICHAEL LYNNFORD. WE'LL BE RIGHT BACK. >>> WE WANT AS TO BRING IN THE COMPANY'S CEO STORKS FOR MORE, DAVID, IT'S GREAT TO HAVE YOU HERE. THERE WHAT IS YOUR MESSAGE TO THE STREET? AS WELL AS COMPLETE ING I THINK THAT ALL IS STRONG FOR YOU ARE IN BUILDING ON THE BALANCE SHEET, WE PAID DOWN A BILLION WORTH OF DEBT. WE ARE ABLE TO SCHEDULE OR SHAREHOLDER VOTE. ALL IN ALL, AN EXCITING QUARTER FOR US. >> SO THE GOOD NEWS FOR US IS THAT IT'S BEHIND US, IT'S WHY WE'RE ABLE TO DELIVER GOOD, WE GOT OR FOOTPRINT RIGHT. , AND SO OVER THE LAST YEAR, WE CLEANED THAT UP AND FEEL GOOD ABOUT THE ENTERPRISE WE HAVE HERE TODAY NOW THAT WE HAVE GOOD -- WHICH IS A TOP LINE GROWTH. >> HOW DO YOU DO THAT? >> IT REALLY IS EXECUTING IN THE MARKET. WE BROUGHT NEW STRAINS TO MARKET, WHICH REALLY RESONATE WITH CONSUMERS. WE'RE GOING TO CONTINUE TO DO THAT. >> YOU JUST MENTIONED THE NEW PRODUCTS, AND HOW ARE YOU READY FIGURING OUT WHAT WILL RESONATE ON WINNING BACK THAT CONFIDENCE? >> YEAH, SO I THINK IT'S REALLY ABOUT GETTING PRODUCTS IN THE HANDS OF CONSUMERS THAT THEY WANT, SO A CATEGORY THAT'S DOING REA REALLY CONSUMERS WANT CONVENIENCE. WE'RE RIDING THE BACK OF MASSIVE TRENDS. RESEARCH SHOWS PEOPLE BETWEEN THE AGE OF 21 AND 35 ACTUALLY PREFERS -- WE JUST NEED TO PUT PRODUCTS IN THE HANDS OF CONSUMERS THEY CAN EASILY ENJOY. >> OF COURSE, HERE IN THE GENERAL ELECTION HERE, THERE'S SEVERAL STATES WHERE CANNABIS IS ON THE BALLOT, BUT MORE IMPORTANTLY FEDERALLY, FOR YOUR BUSINESS, WHEN THINK THINK ABOUT THE BALLOT OF POWER IN D.C. AND SPECIFICALLY THE WHITE HOUSE, IF THERE'S A CHANGE OF GUARD IN THE WHITE HOUSE, WHAT DOES THAT LIKE FOR THE BROADER CANNABIS INDUSTRY? >> I THINK THERE'S A COUPLE THINGS TO THINK ABOUT. >>> THAT HAS A DRAMATIC POSITIVE EFFECT, AND THE WAY WE SAID UP OUR OPERATIONS IN THE U.S., WE CAN BE SUCCESSFUL ON A STATE-BY-STATE BASIS. WE'RE BUILD TO SUCCESS AS THE ENVIRONMENT EXISTS TODAY. WE WOULD LOVE TO SEE MORE SOFTENING AT THE FEDERAL LEVEL FROM A REGULATORY STANDPOINT, BUT THAT WOULD BE JUST ICING ON THE CAKE. >> WOULD A TRUMP PRESIDENCY THEN BE BETTER FOR YOUR BUSINESS? >> I THINK THE WAY THE BUSINESS IS SET UP, IT REALLY IS EXECUTING IN EACH STATE THAT WE'RE IN FROM A POLITICAL STANDPOINT, I WOULD SAY THE OVERWHELMING MAJORITY OF AMERICANS FAVOR CANNABIS LEGALIZATION IN SOME FORM. WE HAVE SEEN MOMENTUM BEHIND REPUBLICAN INITIATIVES TO LOOSEN REGULATIONS AND SEEN MOMENTUM BEHIND THE PROPOSALS FROM THE DEMOCRATS. SO WE'LL JUST HAVE TO SEE HOW IT ALL PLAYS OUT, BUT WE'RE PREPARED TO DO WELL IN ANY ENVIRONMENT. >> 70% OF U.S. ADULTS SAYING MARIJUANA SHOULD BE LEGAL ACCORDING TO A GALLUP POLL LATE LAST YEAR. DAVID KLEIN, THANK YOU FOR TAKING THE TIME. >> THANKS. >>> CLOUDFLARE, SHARES JUMPING IN THE PREMARKET AFTER REPORTING A 30% RISE. SHAR ARE UP 24%. ONE OF THE HUGE THINGS WE'RE TRACKING HERE WITH CLOUDFLARE, WAS THE FACT YOU GOT AN ELECTION YEAR HERE WHERE INTERNATIONAL REST THERE'S GOING TO BE SO MUCH MORE FOCUS ON CYBERSECURITY. A RECORD NUMBER OF PEOPLE HEADING TO THE POLLS INTERNATIONALLY. >> AND MORE SPEND ON CYBERSECURITY WAS ONE OF THE TRENDS WE SAW IN 2023, AND A TREND WATCHERS ARE EXPECTING TO CONTINUE, THE LEADUPS TO THE ELECTIONS AROUND THE WORLD. DIGGING INTO THE RESULTS FROM CLOUDFLARE, BETTER THAN EXPECTED DRIVERS HERE BOOSTED BY NEW DEALS AND RENEWALS. THE UP SIDE WAS DRIVEN IN A LARGE PART WITH A MERIT DEPARTMENT DEAL, SO THAT HELPED LEAD THE COMPANY TO BETTER MARGINS, WHICH WE SAW ON A YEAR-OVER-YEAR BASIS. THAT STOCK JUMPING ONCE BEN. >>> COMING UP NEXT, WE HAVE THE OPENING BELL, JUST FIVE MINUTE TO SAY GO. WE'LL BE RIGHT BACK. >>> TODAY'S STOCK TO WATCH IS EXPEDIA AS THE COMPANY ANNOUNCED INVESTORS WITH A CEO CHANGE. MADY HAS MORE. >> THE DECLINES WILL NOT MAKE SENSE WHEN I RUN THROUGH THE NUMBERS, BUT I HAD CONVERSATION CONVERSATIONS WITH MY SOURCES, AND GOT SOME CLAIR WOULD YOU THIS LED TO SUCH A TUMBLE. THEY HID A 52-WEEK HIDE YESTERDAY, THEN THE EARNINGS PRINT RUNNING THROUGH A COUPLE AMAZING WINS THEY HAD HERE. THEY CAME IN AT 37%, GROSS BOOKINGS UP 6%. AN ANNOUNCEMENT OF A C-SUITE CHANGE-UP, CHANGING OUT FOR THE PREVIOUS PRESIDENT. THAT'S WHAT SOME FOLKS BLAMED ON THE TUMBLE. BUT OTHERS SAID IT'S BUY THE RUMORS, SELL THE EVENT. MAYBE IT'S AN OPPORTUNITY FOR SOME INVESTORS TO SHAVE THEIR HOLDINGS IN EXPEDIA, MAYBE TAKING IN SOME PROFITS. INTERESTING TO NOTE ALSO, THE CFO SAYING TO OTHER NEWS BLAMING IT ON SOME OF THE BOEING EXPERIENCE I'M HIS TAP TO TOTALLY BUY INTO THAT, SO WE'LL SEE WHAT THAT LOOKS. FOR NOT JUST EXPEDIA, BUT THE AIRLINES. ARE WE SEEING THE BOEING PICTURE WITH A READ-THROUGH FOR SOME OF THE OTHER CONSUMER DEMANDS ON AIRLINES IN THE TICKET BUYING PICTURE MOVING FORWARD. >>> MADY, THANK YOU. WE'RE ABOUT 30 SECONDS AWAY FROM THE OPENING BELL FOR THE WEEK. IT LOOKS LIKE WE'RE GOING TO OPEN TO THE UP SIDE. A LOT OF THAT FOCUS TODAY IS ON THE S&P 500. WE BRIEFLY CROSSED THAT MARKET YESTERDAY IN THE INTRADAY TRADING DAY THE QUESTION, THOUGH, WHETHER WE'LL STAY THERE THROUGHOUT THE CLOSE. >> IT'S NOT HOW YOU START, BUT HOW YOU FINISH. OF COURSE, CAN YOU TUNE INTO OUR 3:00 TO 5:00 HOURS WHERE WE'LL COUNT YOU TO AND THROUGH THE CLOSING BELL. >>> FOR NOW, LET'S WE'RE ROCKING PURPLE FOR PSI I LOVE YOU DAY, RUN BY OUR OWN BROOKE DiPALMA. >> AN AMAZING CHARITY, ALSO BRINGING ATTENTION TO A GREAT CAUSE SURROUNDED FOR MENTAL HEALTH. CERTAINLY P.S. I LOVE YOU DAY. >>> MADISON MILLS IS STANDING BY. MADDIA? >> IT'S AN INTERESTING DAY. AFTER A VERY MAD WEEK, HONESTLY I DIDN'T HAVE A LOT TO COVER ON THE OPENING BELL. WE FINALLY NOT GOOD ECONOMIC DATA THAT I CAN DIG INTO, THE CPI REVISIONS. HAVING THAT, THEY CAME IN EXACTLY AS EXPECTATIONS REMAINING COMPLETELY FLAT. WHAT DOES THAT MEAN? LAST YEAR WITH REVISION WE ZOO SAW A BIG UPWARD SURPRISE. THE CPI REVISIONS THIS MORNING COMING IN FLAT. THAT IS GREAT NEWS FOR FOLKS BANKING ON THE FEDERAL RESERVE TO HAVE SOME CUTS MOVING FORWARD. THE MARKET IS PRICING IN ABOUT HALF A DOZEN OF THOSE CUTS. WHETHER OR NOT THAT WILL COME TO FRUITION REMAINS TO BE SEEN, BUT IT COULD BE ENOUGH TO MOVE THIS MARKET OUT OF THAT 5,000 RANGE TODAY. YOU GUYS MENTIONED WE BRIEFLY HEAD OVER THE 5,000 MARK YESTERDAY. THE QUESTION IS WHETHER WE'LL BREAK OUT OF THAT RANGE OF TIGHTNESS, AND THROUGHOUT THE WEEK, AND REALLY SEE THAT 5,000 MARK BECOMING THE NEW BOTTOM LINE FOR THE S&P. I ALSO WANT TO POINT OUT A CHART FROM RYAN DIETRICH THIS MORNING. AS WE KNOW, YOU GUYS, HIGHS BEGET HIGHS. YESTERDAY WILL LEAD TO MORE HIGHS MOVING FORWARD. THIS IS KIND OF MIRRORING THE PICTURE WE HAVE SEEN THROUGHOUT THE EARNINGS CYCLE. WE'RE OVER HALFWAY THROUGH THE EARNINGS CYCLE. WE HAVE SEEN CONTINUED BEATS ACROSS A LOT OF THE MAJOR NAMES. I THINK ABOUT A META, FOR EXAMPLE. I'VE MENTIONED THIS BEFORE, ADDING THE ENTIRETY OF McDONALD'S TO ITS MARKET CAP IN JUST ONE DAY. THINK ABOUT THAT, $200 BILLION ADDED TO THE MARKET CAP JUST IN A SPAN OF A DAY, BE IT ANNOUNCING DIVIDENDS. WE'VE SEEN THE COMPANIES THAT HAVE THE CASH ON HANDS ARE DOING REALLY WELL. MY NEXT QUESTION WILL BE WHAT DOES NVIDIA LOOK LIKE COMING UP ON THE 21st. THEY HAVE ADDED THE ENTIRETY OF TESLA TO THEIR MARKET CAP JUST IN THE PAST TWO MONTHS. >> MY QUESTION, MADY, DO WE SEE ANOTHER MESA VERSE-LIKE ADS ON THE SUPER BOWL PLATFORM? WE'LL SEE. THEY DIDN'T HAVE LEGS AT THE TIME. NOW WE LEGS IN THE METAVERSE. MADY, WE APPRECIATE IT SO MUCH. >>> SWITCHING GEARS, S&P 500 OPENING ABOVE 5,000 THIS MORNING. EARNINGS, ESPECIALLY FROM MEGACAPS BRINGING THE INDEX HIGHER, BUT THERE MIGHT BE DANGER IN BEING OVEREXPOSED. FOR MORE, WE HAVE JOE MAZOLLA. GREAT TO SEE YOU HERE THIS MORNING. WHEN WE THINK OF SOME OF THE NEW HIGHS WE'RE LOOKING TO STRIKE AT TODAY'S CLOSE AND WHERE WE'VE BEEN TRENDING TO GET TO THIS LEVEL, WHAT DOES THAT SET UP FOR INVEST OFFERS WHO ARE TRYING TO FIGURE OUT HOW TO POSITION THEIR PORTFOLIO OFF OF HIGHS? >> YEAH. ROUND NUMBERS ARE A REAL THING. I WOULD LOOK AT THIS FROM A SENTIMENT INDICATORS, BUT ALSO FROM THE CONCENTRATION OF THE MOVE. SO, YOU KNOW, OUR OWN SENTIMENT INDICATOR THAT WE HAVE, WE CALL IT STATS, AND THAT SHOWS THAT OUR RETAIL INVESTORS WERE, YOU KNOW, MODERATELY BULLISH IN JANUARY, SO WE BASICALLY TRACK OVER 30 DAYS, 35 MILLION ACCOUNTS, AND THEN, YOU KNOW, WE CREATE AN INDEX, AND THE SCORE IF IT GOES UP, IT SHOWS MORE ACTIVITY ON THE BULLISH SIDE -- IT'S NOTHING GLARING. IT DOES SUGGEST SOME POSITIVE SENTIMENT AND BULLISH INDICATOR. I WOULD ALSO SAY THAT FROM IN A PERSPECTIVE, YOU KNOW, WHERE WERE CLIENTS MOVING THEIR MONEY INTO, WELL, IT'S KIND OF WHAT YOU'RE SEEING IN THE OVERALL MARKET. THERE WAS A LOT OF CONCENTRATION TOWARD THE MAG 7. YOU SAW BUYERS OF TESLA, NVIDIA, AMAZON, THOSE WERE THE THREE BIGGEST BUYS. THEY SOLD IN SOME OF THE INTEREST RAE SENSITIVE SECTORS. THE SAME TRANSITION THAT YOU'RE SEEING GOING ON, THAT STARTED END OF DECEMBER INTO JANUARY, WHERE, YOU KNOW, THERE WAS A REALIZATION WE MAY NOT GET THE FIGHTS TO SIX RATE CUTS WE WERE HOPING FOR, WHERE OUR CLIENTS DECIDED THEY WANTED TO STICK WITH SOME OF THE GAME PLANS THAT WORKED IN 2023. >> JOE, IN TERMS OF WHAT YOU'RE HEARING FROM MANY OF YOUR CLIENTS, YES, THERE'S A LOT TO BE EXCITED ABOUT, BUT THERE IS A HECK OF A LOT OF UNCERTAINTY. EVEN LOOKING AHEAD WHEN IT -- HOW -- WHAT IS THE BIGGEST CONCERN, THE BIGGEST WORRY FROM CLIENTS, AND HOW ARE THEY THEN HEDGING SOME OF THOSE BETS? >> A GREAT QUESTION. WHAT WE'RE HEARING IS THERE IS A BIT OF CONCERN ABOUT MAYBE SOME OF THE CONCENTRATION, EVEN THOUGH, YOU KNOW, THEY ARE KIND OF MOVING INTO THE DIFFERENT POSITIONS. WHAT WE KNOW FROM THE SCORE I MENTION, 4473, IF YOU LOOK AT THE RANGE ON THAT, THAT'S KIND OF MODERATELY LOW. YOU'RE SEEING THAT CLIENTS ARE BUYING, BUT NOT LEVERING UP. WE ASPLIT KIND OF LIKE A BETA TO THAT. THE MORE THEY'RE LEVERING UP, THE HIGHER THAT WOULD BE. THERE'S ALSO THIS BELIEF, YOU KNOW, WHAT'S GOING TO HAPPEN ONCE THESE RATE CUTS KIND OF START. YOU ARE TALKING ABOUT BUY THE RUMOR/SELL THE NEWS. IS THAT SAME THING GOING TO HAPPEN IN THE MARKET AS THE RATE CUTS START? AS WE MOVE INTO WHAT WE'RE PREDICTING MAY IN THE RATE CUTS. THEY'RE ABOUT THREE TO FOUR FOR THE YEAR, AND HOW ARE THEY LOOKING TO HEDGE SOME OF THE THAT RISK. I WOULD SAY THE MARKET AS A HOLE, WE'RE NOT SEEING, YOU KNOW, THE SAME TYPE OF HEDGING. IF ANYTHING, THERE'S A BIT OF COMPLACENCY IN THE UPSIDE CALL BUYS. WHAT I'VE BEEN TELLING INVESTORS, IF THEY ARE CONCERNED, THERE'S DIFFERENT WEIGHING TO HANDLE THAT. ONE WAY MAY BE TRIMMING, AND ROTATING INTO CALL SPREADS BECAUSE OF THE FACT THAT THE CALL PREMIUM, THE CALL SKU IS HIGHER. IT'S ABOUT THE FIFTH PERCENTILE. IT'S NOTICEABLE. >> JOE, WE HAVE A WHOLE SUPER BOWL AND WHOLE NBA ALL-STAR, UNDER THE -- IF WE GET ANOTHER HOT JOBS PRINT, WHAT DOES THAT SIGNAL FOR THOUSAND HER MAY EVALUATE THE ENTIRE SITUATION. >> IT'S INTERESTING, BECAUSE, YOU KNOW, THE WHOLE MANTRA OVER LAST YEAR WAS, YOU KNOW, GOOD NEWS FOR THE ECONOMY MIGHT BE BAD NEWS FOR THE MARKET, WE STARTED TO SEE A SHIFT IN THAT. INTEREST RATES ARE CLIMBING UP. YOU'RE STILL SEEING THE MARK PUT TOWARDS HIGH. MAYBE INVESTORS ARE SAY, YAW, THE MARK CAN HANDLE THAT. I WOULD SAY NEXT WEEK'S NUMBERS ARE IMPORTANT. IF THEY COME IN HOT, WAY ABOVE EXPECTATIONS THAT COULD BE SOMETHING THAT COULD DEFINITELY STALL THIS RALLY. >> JOE, THANKS FOR TAKING THE TIME HERE TODAY. >> THANKS SO MUCH. >>> ALL YOUR MARKET ACTION IS AHEAD. STAY TUNED TO YAHOO FINANCE. >>> EARNINGS SEASON FOR CAR MAKERS WERE THE HOT TOPIC, SOME COMPANIES STRUGGLES, OTHERS CLAIMING VICTORY. LET'S LISTEN TO WHAT SOME OF THE BIGGEST CEOs HAD TO SAY. >> IT HAS SLOWED. >> SOME HAVE PORTRAYED THE CHANGING EV MARKET AS DARWINIAN. THAT COULD BE A SLOW EVOLUTIONARY CHANGE, BUT WE THINK IT'S BEEN A SEISMIC CHANGE IN THE LAST SIX MONTHS OF LAST YEAR. THAT WOULD RAPIDLY SORT OUT WINNERS AND LOSE NER OUR INDUSTRY. >> WE ARE FOCUSED ON EXCITING NEW PROJECTS THAT WILL I THINK ULTIMATELY, IF WE EXECUTE ON ALL THESE THINGS, AND IT IS VERY HARD TO DO ALL THESE THINGS, BUT I DO SEE A PATH WHERE TESLA -- WHERE IT WOULD BE THE MOST VALUABLE COMPANY IN THE WORLD. >>> LET'S BRING IN PRAS SUBRAMANIAN TO BREAK DOWN WHAT THIS MEANS. >> WE SHOWED JIM TARLY THERE. I WROTE ABOUT THIS WEEK ABOUT HOW THEY PIVOTED. I THINK THAT'S WHAT'S HAPPENING WITH THE TRADITIONAL, MAKE THEM SMALLER, SPEND LESS MONEY, MAKE SURE THE CARS THAT COME OUT ARE AT LEAST IN THE NEAR TERM. TESLA, OF COURSE, THEY'RE SORT OF WINNING ON MAKING THE MONEY, BUT THEY'RE STRUGGLING WITH THE FACT HOW MUCH CAN WE GROW IN THIS MARKET. IS THAT SORT OF THE BARRIER AND MORE PEOPLE DON'T WANT TO BUY THEM? HE THINKING IT'S MORE OF A PRICE ISSUES. >> PRAS, WHEN IT COMES TO THE STRATEGY, THE COMPANIES MOST AT RISK, OUT OF WHAT WE HAVE HEARD OVER THE LAST TWO WEEKS AND THOSE AT LEAST SHORT-TERM PLANS TO NAVIGATE WHAT'S TURNING OUT TO BE AN EXTREMELY CHALLENGING LANDSCAPE, IS ONE BETTER POSITIONED THAN ANOTHER? >> I WOULD SAY FORD AND GM ARE IN THE DRIVER'S SEAT, BECAUSE THEY HAVE STRONG TRUCK BUSINESSES. STELLANTIS WILL REPORT NEXT WEEK. WE HAVE THE RAM TRUCK FRANCHISE, BUT IT'S NOT AS BIG A MONEY MAKER AS OTHERS. SO I THINK IF THEY HAVE A STRONG TRUCK AND SUV BUSINESS, WAIT UNTIL OIL PRICES GO BACK HIGH, AND CONSUMERS SHIFT OVER TO CHEAPER CARS. RIGHT NOW I WOULD SAY THOSE GUYS ARE IN A BETTER SPOT, IN AMERICA AT LEAST. >> AUTO GIANTS WARN OF A NEW REALITY FOR EVs, COMPANIES IN A HAVEN'T GONE ALL IN, ARE STARTING TO REAP IN BENEFITS. MAZDA HAVING ITS BEST YEAR IN NEARLY 30 YEARS. HERE TO TELL US MORE IS TOM DONNELLY, MAZDA'S NORTH AMERICAN OPERATIONS CEO, AS WELL AS PRAS SUBRAMANIAN. GREAT TO HAVE BOTH OF YOU HERE. TOM, IT'S AN EXTREMELY TOUGH TIME FOR AUTO GIANTS TRYING TO NAVIGATE THE SHIFT OR SLOWER THAN EXPECTED SHIFT TO ELECTRIC VEHICLES. HOW ARE YOU THINKING ABOUT THIS AND APPROACHES THE TRANSITION AT MAZDA? >> NO QUESTION, IT IS A DYNAMIC MARKETPLACE RIGHT NOW, BUT WE'VE HAD A STRATEGY ALL ALONG THAT WE CALL MULTI-SOLUTION APPROACH, MEANS ALL ALONG OUR PLANS WERE AROUND HYBRIDS AND ULTIMATELY ELECTRIFICATION LATER THIS YEAR, WEE INTRODUCE A THREE-PHASED APPROACH. BY 2030, WE WILL HAVE A FULL LINEUP OF ELECTRICRY FID VEHICLES. MAZDA WAS CRITICIZED IN IT IS PAST FOR NOT GOING FULLY IN. AND IT WAS A TREMENDOUS MONEY ISSUE TO INVEST. AND OR DID WE FALL INTO THIS MORE? >> GREAT QUESTION. WE THINK OUR STRATEGY IS THE RIGHT STRATEGY, AS I SAID A MINUTE AGO. THE TERM I USED IS INTENTIONAL FOLLOWER. AND MAKE SURE WE INTRODUCE POWER TRAINS , A SLOWDOWN IN ADOPTION, AND AN ACCELERATION IN HYBRID DE DEMAND, AND WE THINK THE INTRODUCES OF THE TWO PLUG-INS THIS YEAR WE THINK THE TIMING RIGHT. AGAIN, WE'LL HAVE A FULL LINEUP OF EV VEHICLES BY THEN, BUT WE THINK OR STRATEGY IS RIGHT FOR TODAY'S MARKETPLACE AND REALLY FOR THE NEXT COUPLE YEARS. >>> COMING OFF OF 2023, WHERE YOU DID SEE RECORD SALES, I WONDER WHAT FEEDBACK EAR HEARING FROM THE DEALER NETWORK, SPECIFICALLY ON PRICING THAT THE CONSUMERS ARE GRAVITATING TOWARDS? >> GREAT QUESTION. WE'RE JUST COMING OUT OF THE N.A.D. APPEARED THEY'RE VERY ENTHUSIASTIC ABOUT THEIR BUSINESS AND OUTLOOK FOR THIS YEAR. THERE'S CLEARLY BEEN A SHIFT IN THE MARKETPLACE BEONOF ELECTRIFICATION, BUT WE THINK WE HAVE GOTTEN AHEAD OF THAT IN TERMS OF ACTION WE HAVE TAKEN. THEY FEEL VERY UPBEAT ABOUT THE ACTIONS WE HAVE TAKEN TO REALLY ENHANCE THE CUSTOMER EXPERIENCE BY OUR RETAIL EVOLUTION SHOWROOMS. WE THINK THE BUILDING BLOCKS WE HAVE LAID POSITION US WELL FOR THE NEXT FEW YEARS, FOR SURE, AND WE'RE REALLY PLEASED WITH, AS YOU ACKNOWLEDGED, COMING OFF REALLY STRONG CALENDAR YEAR OF 2023 WE HAD OR BEST DECEMBER AND JANUARY EVER IN TERMS OF RETAIL, AND WE HAVE A FEW NEW PRODUCTS WE'LL INTRODUCE THIS YEAR. WE FEEL UPBEAT ABOUT OUR PLANS AND OUTLOOK FOR THIS YEAR. >> TOM, YOU KNOW, THE CX-70 JUST ANNOUNCED AND REVEALED LATE LAST MONTH, IT'S A POPULAR VEHICLE AMONG IS THE MAZDA FAITHFUL, BUT IT'S ALSO A COMPETITIVE LANDSCAPE WITH THE MID SIZED CROSSOVER. WE JUST SAW FORD TALK ABOUT HOW THEY'RE GOING TO EXIT THAT MARKET. HOW DO YOU FEEL ABOUT THAT? DO YOU FEEL MAZDA HAS THE RIGHT THOUGHT PROCESS TO ADDRESS THAT? >> YES, WE FEEL LIKE WE'RE WELL POSITIONED, IN THE RESPECT THAT, WHEN YOU THINK ABOUT WHAT BUYERS IN THAT SEGMENT DESIRE, WE THINK THE CHARACTERISTICS OF THE PRODUCT AND MAZDA BRAD SET US UP FOR SUCCESS THERE. MORE SPECIFICALLY, THE IMPORTANCE OF STYLING AND DRIVING DYNAMICS. THE CUSTOMER PROFILE IN THAT SEGMENT IS LARGELY EMPTY NESTERS, FAIRLY AFFLUENT. THEY HAVE OPTIONS AND THEY HAVE CHOICES, AND WE THINK THAT, AGAIN, THE DESIGN THAT HAS ALWAYS BEEN MAZDA, AND THE DRIVE DYNAMICS AND WHAT IS UNIQUE FOR US IS SIGNIFICANT CAPACITY AND UTILITY IN THIS VEHICLE. WE THINK THAT HITS THE SWEET SPOT WITH WHAT CUSTOMERS IN THIS SEGMENT ARE DESIRING. >> TOM DONNELLY, THE MAZDA NORTH AMERICAN CEO, THANK YOU SO MUCH FOR JOINING US. >> THANK YOU. >>> TWO MEMBERS OF THE MAGNIFICENT 7 BATTLING IT OUT FOR THE HIGHEST MARKET GAP ON THE OTHER SIDE OF THIS BREAK. .. >>> BANK OF AMERICA'S WEEKLY ROUNDUP OF FLOWS SHOWS INVESTORS ARE STICKING WITH WHAT WORKS. MYLES UDLAND IS HERE. >> I THINK WHAT'S BEEN INTERESTING IS FUN FLOWS AND THE CONVERSATIONS WE'VE BEEN HAVING ON THIS SHOW IS HOW MUCH OF EARLY GOING OF 2024 RESEMBLES WHAT HAPPENED IN 2023. THE STAT FROM THIS WEEK'S NOTE FROM BANK OF AMERICA, NVIDIA, ITS MARKET CAP IS DOUBLE THAT OF TESLA. TWO PARTS OF THAT STORY, OF COURSE, THERE'S THE NVIDIA RALLY THAT WE HAVE SEEN, ALL-AROUND A.I., ALSO THE DECLINE OF TESLA NOW, I THINK THEY'RE DOWN, WHAT, 25% THIS WEEK, GIVER OR TAKE, DEPENDS ON THE DAY. I DON'T KNOW HOW MUCH TIME YOU HAVE SPENT ON THE MAGNIFICENT 6, ARE WE DOING THAT YET? IT WAS ABOUT THIS TIME HARTNETT STA STARTED THIS IDEA OF THE MAGNIFICENT 7. WE WERE STILL TALKING ABOUT OFF AND ON FAANG, AND NOW IT FEELS LIKE WE NEED A NEW SHTICK TO GET US THROUGH 2024.pBUT THE FUNDAM MARKET, MONEY IS OUT OF THE STOCK MARKET, PEOPLE ARE STILL SCARED OF THE STOCKS OVERALL AND MONEY GOING INTO NVIDIA. IN A WAY THE CALENDAR TURNED, BUT NOTHING REALLY CHANGED. >> AND, YES, PEOPLE ARE OPTIMISTIC IN TERMS OF AT LEAST A HANDFUL OF NAMES, BUT THERE'S CERTAINLY A LOT OF REASONS TO BE SKEPTICAL. THE FLOWS WE SAW OUT OF SOME OF THE REGIONAL PLAYS WAS ONE OF THE STICKING POINTS, AND THEN ALSO JUST THE INTEREST THAT CONTINUES TO HAPPEN INTO THESE MONEY MARKET FUNDS. >> YEAH. I'M HOPING WE ALL SEE IT IN OUR LIVES. I HOPE WE ALL HAVE HIGH-YIELD SAVINGS ACCOUNTS. I SPENT ALL OF LAST YEAR MENTALLY PREPARING FOR THAT TO GO UNDER FOUR, SO HERE WE ARE. LOOK AT THAT AT AN INSTITUTIONAL LEVEL, I THINK MAYBE LET'S KEEP IT OVER HERE, NOT AS MUCH, I'M NOT SURE HOW MUCH THAT INFLUENCES IT BEYOND THE FACT YOU CAN STILL GET NOW SIGNIFICANTLY ABOVE, 100 BASIS POINTS NORTH OF INFLATION BY HAVING YOUR MONEY IN A MONEY MARKET FUND, SOME OTHER SAVINGS VEHICLE, AND THAT DYNAMIC CONTINUES TO PUSH OUT ALL THE DRY POWDER WILL RUSH INTO STOCKS, BUT THIS IDEA OF WHERE CAN PEOPLE PUT THEIR MONEY, YOU HAVE PLENTY OF OPTIONS RIGHT NOW. >> YOU HAVE TO THINK OF SOMETHING MORE CREATIVE THAT IS THE MAGNIFICENT 6. >> YEAH, RIGHT. BUT SOMETHING THAT RHYMES? [ LAUGHTER ] >> YOU KNOW, THERE'S NOTHING WRONG ABOUT SAYING THAT WORD. I KNOW IT'S A FAMILY PROGRAM, BUT IT DOESN'T EXACTLY VIOLATE THOSE RULES. >> THAT'S TRUE. >> WE'LL THEREONO GO THROUGH ALL OF OUR Ss, AND THINK, WHAT DO YOU GOT? >> I DO LIKE TO COME IN ON MONDAYS. ON MONDAY WE CAN CIRCLE BACK -- THIS IS FOR YOU GUYS. WHAT DO I KNOW? >> WE'LL WORKSHOP AFTER THE SUPER BOWL. I'M THE GUY YESTERDAY THAT I CAN SAY, WE CAN PASS ON ARM. >> JUST LIKE THAT. >> HAVE A GOOD WEEKEND. >>> ALL RIGHT. MYLES, THANK YOU. GET READY HERE. MUCH MORE OF YOUR MARKET ACTION, TAKETWO INTERACTIVE FALLING AFTER ISSUING DISAPPOINTING GUIDANCE. WE'LL BE RIGHT BACK. ♪ >>> LET'S GET IT. TOP OF THE 10:00 A.M. HOUR HERE. I'M BRAD SMITH ALONGSIDE SEANA SMITH. WE'RE 30 MINUTES INTO THE TRADING DAY. LET'S LOOK AT HOW THINGS ARE SHAPING UP RIGHT NOW. THE S&P 500 TOPPING THAT 5,000 MARK ONCE AGAIN, SETTING STOCKS UP FOR A FIFTH CONSECUTIVE WEEK OF GAINS HERE, THE RISE DRIVEN BY SOLID EARNINGS REPORTS. AS OF RIGHT NOW, WE'RE HOLDING JUST ABOVE 5,000. >>> ALL RIGHT, WELL, LET'S TAKE A LOOK AT SOME OF THOSE INDIVIDUAL MOVERS. FIRST UP, L'OREAL DROPPING ABOUT 7%, A MISS ON SALES IN THE FOURTH QUARTER THAT WAS DRIVEN BY A DISAPPOINTING PERFORMANCE IN ASIA AT THE END OF THE YEAR. LUXURY COSMETICS COMPANY SEEING SALES GROWTH IN ALL REGIONS EXCEPT FOR ASIA WHERE THEY WERE DOWN ABOUT 6.2%. THAT'S WHY WE'RE LOOKING AT A STOCK UNDER PRESSURE. THE COMPANY DOES SEE THINGS IMPROVING THIS YEAR, CEO SAYING THE PERFORMANCE IN CHINA HAS BEEN PRETTY POSITIVE SO FAR THIS JANUARY. >>> AND EXCITEMENT AROUND "GRAND THEFT AUTO VI" CAN'T SAVE TAKE TWO STOCK. SHARES OF THE VIDEO GAME COMPANY RIGHT NOW, EXTENDING DECLINES TODAY AFTER ISSUING A DISAPPOINTING FORECAST, SAYING IT SEES WEAKNESS IN MOBILE ADVERTISING AS WELL AS IN REVENUE FROM ITS NBA 2 K 24 BASKETBALL GAME. TAKE-TWO'S CEO TELLING ANALYSTS THE COMPANY IS WORKING ON SIGNIFICANT COST REDUCTION IN AN EFFORT TO MAXIMIZE MARKETS. >>> AND NEWEL BRANDS, UNDER PRESSURE THIS MORNING. ITS SOFT OUTLOOK WEIGHING ON SHARES. THE COMPANY EXPECTING NET SALES TO FALL BY UP TO 8% THIS YEAR AND THIS COMES AS THE COMPANY UNDERGOES A MAJOR RESTRUCTURING TO REDUCE COSTS AND STRENGTHEN ITS BRANDS. >>> OIL PRICES ARE ON TRACK FOR ABOUT 5% IN WEEKLY GAINS. CRUDE FUTURES HAVE BEEN STEADILY CLIMBING AS PERSISTENT TENSIONS IN THE MIDDLE EAST SHOW NO SIGNS OF ABATING. INES FERRE IS HERE TRACKING THOSE MOVES. >> WE ARE LOOKING AT WTI ABOVE $77 A BARREL. BRENT CRUDE OVER $82 A BARREL. A COUPLE OF DEVELOPMENTS THIS WEEK. ONE IS THAT ISRAEL REJECTED THE PROPOSAL FROM HAMAS FOR A CEASE-FIRE, CALLING IT DELUSIONAL, BASICALLY, SO THIS HAS BEEN LIFTING OIL PRICES BECAUSE THAT AREA, THE MIDDLE EAST AREA, TENSIONS, THERE'S NO CLEAR SIGNS OF WHEN THOSE TENSIONS WILL BE ABATING, WILL BE STOPPING. YOU'VE GOT, ALSO, THE RED SEA ISSUES WITH CARGO SHIPS THAT ARE AVOIDING THAT RED SEA AND ALSO THE STRAIT OF HORMUZ NEAR IRAN. REMEMBER, ALSO, THAT IRAN PRODUCES MORE THAN 3 MILLION BARRELS OF OIL A DAY, SO WERE ANY OF THAT TO BE KNOCKED OFF, YOU WOULD SEE HIGHER OIL PRICES. I DO ALSO WANT TO MENTION THE EIA DATA THAT CAME OUT THIS WEEK, BASICALLY LOWERING ITS GROWTH FORECAST FOR U.S. OIL PRODUCTION. THOSE HIGH LEVELS THAT WE SAW IN DECEMBER 2023, THE EIA ISN'T FORECASTING THAT TO COME AGAIN UNTIL FEBRUARY 2025. SO, THAT CONCERN THAT WE SAW IN THE MARKET ABOUT, PERHAPS, OVERSUPPLY IN THE MARKET THIS YEAR, THAT CONCERN IS ABATING WITH THOSE FORECASTS. I WANT TO PULL UP A YEAR TO DATE CHART FOR WTI AND BRENT CRUDE. WTI, UP MORE THAN 9%. REMEMBER, WHEN WE STARTED THE YEAR, KIND OF BEARISH WHEN IT CAME TO OIL, BUT REALLY, SOLIDLY ABOVE THAT $75 THRESHOLD THAT WE HAD BEEN WATCHING FOR SO LONG, AND BRENT CRUDE, SOLIDLY ABOVE THE $80 THRESHOLD, UP MORE THAN 8% YEAR TO DATE, GUYS. >> INES, THANK YOU SO MUCH FOR TRACKING THE MOVES THERE AND BRINGING THEM OUR WAY. APPRECIATE IT. >>> PRESIDENT BIDEN GETS TO AVOID THE COURTROOM. A SPECIAL COUNSEL HAS FOUND THAT PRESIDENT BIDEN WILLFULLY RETAINED AND DISCLOSED CLASSIFIED MATERIALS AFTER HIS VICE PRESIDENCY WHEN HE WAS A PRIVATE CITIZEN, BUT UNLIKE FORMER PRESIDENT DONALD TRUMP, THE COUNSEL WILL RECOMMEND AGAINST CRIMINAL CHARGES. HERE TO BREAK DOWN THE DIFFERENCES IN THESE TWO CASES AND WHAT IT MEANS FOR THE UPCOMING ELECTION, WE'VE GOT OUR VERY OWN RICK NEWMAN. HEY, RICK. >> HEY, GUYS. WELL, THIS WAS TECHNICALLY A GOOD FINDING FOR BIDEN, BUT IT TURNED INTO KIND OF A POLITICAL DISASTER, BECAUSE THE MAIN TAKEAWAY HERE IS THAT THIS PROSECUTOR DESCRIBED BIDEN AS AN ELDERLY MAN WITH POOR MEMORY. I THINK WE'RE GOING TO BE HEARING THAT PHRASE OVER AND OVER AGAIN UNTIL NOVEMBER. SO, WHAT THIS FINDING ACTUALLY DID IS, I MEAN, IT BASICALLY EXONERATED BIDEN. IT DID FIND THAT HE DID BRING CLASSIFIED MATERIAL TO HIS HOME AFTER HE LEFT THE VICE PRESIDENCY IN 2017, BUT IT BASICALLY SAID IT COULD HAVE BEEN AN INNOCENT MISTAKE, AND IMPORTANTLY, WHEN PROSECUTORS OR WHEN THE GOVERNMENT CONFRONTED BIDEN ABOUT THIS, HE FULLY COOPERATED. HE SAID, COME ON IN, LOOK AROUND, AND HE IN NO WAY CAUSED ANY PROBLEMS. THE DIFFERENCE BETWEEN BIDEN AND TRUMP IS THAT TRUMP KNEW THAT HE TOOK CLASSIFIED MATERIALS. HE SHOWED IT TO PEOPLE, AND THEN WHEN THE GOVERNMENT SAID, HEY, WE THINK YOU HAVE THIS TOP-SECRET OR EVEN MORE CLASSIFIED MATERIAL, TRUMP TRIED TO HIDE IT. THAT IS WHY THE CHARGES AGAINST TRUMP INCLUDE SEVERAL COUNTS OF OBSTRUCTING JUSTICE, AND HE MAY EVEN HAVE DESTROYED EVIDENCE, SUCH AS SECURITY CAMERA FOOTAGE AT MAR-A-LAGO WHERE ALL THESE DOCUMENTS WERE HELD. SO, TRUMP BASICALLY DID NOT COOPERATE, SHE TRIED TO PREVENT THE GOVERNMENT FROM GETTING THOSE DOCUMENTS BACK, WHEREAS BIDEN SAID, JUST COME ON IN AND GET THEM. THERE'S A BIG DIFFERENCE HERE. IN CAMPAIGN YEARS, VOTERS OFTEN DON'T NOTICE SUBTLETIES, AND THEY JUST KIND OF NOTICE THE MAIN TAKEAWAY HERE, AND THE MAIN TAKEAWAY HERE, POLITICALLY, IS THAT THIS PROSECUTOR SAID, BIDEN'S MEMORY STINKS. >> CERTAINLY WORRISOME HERE FOR DEMOCRATS, AND BIDEN SUPPORTERS, HEADING INTO THE 2024 ELECTIONS. RICK, LET'S TAKE A STEP BACK.pV SHIFT THEIR TONE JUST A LITTLE BIT AHEAD OF THE NOVEMBER ELECTION. THERE WAS A NEW POLL OUT FROM NBC, POINTING TO THE FACT THAT NOW WHEN PEOPLE LOOK BACK AT TRUMP'S PRESIDENCY, THEY'RE MORE OPTIMISTIC OR POSITIVE ABOUT WHAT HE DID DURING HIS FIRST TERM THAN THEY WERE WHEN HE LEFT OFFICE. WHAT DO YOU THINK THIS TELLS US JUST ABOUT HOW VOTERS ARE STARTING TO SHIFT THEIR THINKING AND ANY IMPLICATIONS HERE FOR THE 2024 RESULTS? >> WELL, LET'S REMEMBER THE TRUMP PRESIDENCY WAS BIFURCATED. THERE WAS A GENERALLY CALM PERIOD FOR THE ECONOMY IF YOU PUT TRUMP'S TRADE WARS ASIDE LEADING UP TO 2020, AND THEN THERE WAS COVID. SO, TRUMP LOST IN 2020, I THINK IT'S FAIR TO SAY, PARTLY BECAUSE PEOPLE THOUGHT HE DID A LOUSY JOB HANDLING THE COVID PANDEMIC, BUT YOU KNOW, VOTERS ARE RIGHT WHEN THEY THINK BACK TO, IF YOU JUST GO BACK TO THE PRE-COVID DAYS, THEY ARE RIGHT, THERE WAS NO MEANINGFUL INFLATION BACK THEN. GAS PRICES WERE LOWER THAN THEY ARE TODAY. THAT'S NOT REALLY BECAUSE OF ANYTHING TRUMP DID. HE ACTUALLY INHERITED A PRETTY GOOD ECONOMY FROM PRESIDENT OBAMA, AND THOSE TRENDS JUST CONTINUED UNDER TRUMP UNTIL COVID, AND NOW WE KNOW, YOU KNOW, BIDEN CAME IN AND ALL OF A SUDDEN, BIDEN GETS STUCK WITH INFLATION THAT GOES ALL THE WAY UP TO 9%. SO, VOTERS ARE KIND OF RIGHT ABOUT THAT. I THINK WHERE PEOPLE MIGHT BE MAKING THE MISTAKE IS THEY ATTRIBUTE THE -- WHAT THEY WERE ABOUT A PRETTY GOOD ECONOMY UNDER TRUMP, THEY THINK THAT WAS TRUMP'S DOING. THIS IS ALWAYS THE CASE. THERE'S THIS BIG QUESTION, DOES THE PRESIDENT DESERVE BLAME OR CREDIT FOR WHAT HAPPENS IN THE ECONOMY UNDER HIS WATCH? AND THE ANSWER IS, GENERALLY, NOT REALLY. BUT THAT'S NOT THE WAY IT WORKS IN REALITY. THAT IS A BIG PROBLEM FOR BIDEN, IS INFLATION, BUT THE TREND IS BIDEN'S FRIEND AT THIS POINT. WE HAVE INFLATION COMING DOWN, AND THE ECONOMY'S ACTUALLY IMPROVING, AND LOOK AT THE STOCK MARKET RALLY WE HAVE HAD DURING THE LAST FEW MONTHS. I MEAN, THAT'S TERRIFIC TOO. BUT VOTERS ARE NOT GIVING BIDEN CREDIT FOR THAT YET, AND I DON'T KNOW IF THEY WILL. >> RICK, YOU MAKE A GOOD POINT, AND OUTSIDE OF US IN THE MEDIA AND REPORTING LANDSCAPE, WAKING UP WITH A COLD SWEAT IN THE MIDDLE OF THE NIGHT, WONDERING WHETHER OR NOT THE PRESIDENT TWEETED SOMETHING THAT MIGHT PISS OFF ANOTHER COUNTRY, 2019 FELT PRETTY GOOD. BUT NOW, WE GOT TO THINK ABOUT WHAT THIS INVESTOR MINDSET IS GOING TO LOOK LIKE GOING INTO THIS GENERAL ELECTION YEAR, TOO, WHAT YOU STARTED TO LAY OUT. IS THERE ANY CLEAR INDICATION AS TO WHETHER OR NOT EITHER SIDE WILL WADE INTO THE CAMPAIGN DISCOURSE, USING THE STOCK MARKET IN ONE WAY OR THE OTHER? >> YES, THERE'S A LOT AT STAKE FOR INVESTORS HERE IN THIS ELECTION. I MEAN, GETTING BEYOND, YOU KNOW, WHICH PRESIDENT IS FLUBBING HIS -- EXCUSE ME -- WHICH CANDIDATE IS FLUBBING HIS LINES WORST, WHO'S THE LEAST SENILE BETWEEN BIDEN AND TRUMP, THE BIGGEST THING COMING UP IS THE EXPIRATION OF THE 2017 TRUMP TAX CUTS, WHICH EXPIRE FOR INDIVIDUALS AT THE END OF 2025. SO, THE NEXT PRESIDENT IS GOING TO BE THE ONE WHO EITHER SIGNS A TAX CUT EXTENSION INTO LAW OR EFFECTIVELY PRESIDES OVER A DE FACTO TAX HIKE, AND YOU KNOW, THERE'S A BIG QUESTION OF, LET'S SAY BIDEN WINS. I THINK IF BIDEN WINS, I THINK THERE'S A GOOD CHANCE HE WOULD NOT EXTEND THOSE TAX CUTS FOR WEALTHY AMERICANS, AND THOSE ARE THE PEOPLE WHO ARE MOST BENEFITTING FROM THE STOCK MARKET RALLY RIGHT NOW, AND THE ONES MOST LIKELY TO BUY STOCKS. SO, THAT IS JUST ONE ISSUE. THERE ARE MANY OTHERS ON TRADE, OTHER TYPES OF POLICIES, WHAT TO DO ABOUT THE GIGANTIC NATIONAL DEBT, AND WE'RE GOING TO BE TALKING ABOUT THIS A LOT, GUYS. >> WE WILL. WHAT DO WE HAVE, TEN MONTHS UNTIL THE ELECTION? >> TOO MUCH TIME. >> WE'RE INSIDE NINE, I THINK. >> THERE WE GO. I KNOW. HALFWAY THROUGH FEBRUARY ALREADY. IT'S HARD TO KEEP TRACK. RICK, THANK YOU SO MUCH FOR BREAKING ALL THAT DOWN. >>> COMING UP, AFFIRM SHARES SINKING AFTER ITS GUIDANCE DISAPPOINTED THE STREET. WE ARE GOING TO SPEAK WITH THE COMPANY'S CFO NEXT. >>> AFFIRM SHARES, UNDER PRESSURE THIS MORNING OFF NEARLY 10% AFTER ITS FULL-YEAR GUIDANCE FOR GROSS MERCHANDISE VOLUME FELL SHORT OF THE STREET'S EXPECTATIONS, BUT THE BUY NOW/PAY LATER COMPANY DID SEE REVENUE JUMP 48% FROM A YEAR AGO. WE WANT TO BRING IN MICHAEL, THE CFO OF AFFIRM. MICHAEL, IT'S GREAT TO HAVE YOU. THANK YOU SO MUCH FOR JOINING US HERE ON YAHOO! FINANCE THIS MORNING. >> THANKS FOR HAVING ME. >> SO, LET'S TALK ABOUT THE RESULTS THAT YOU GUYS JUST PUT OUT. IT DID DISAPPOINT THE STREET IN SOME METRICS, BUT REVENUE GROWTH WAS STILL UP 40% ON A YEAR OVER YEAR BASIS. WHAT DO YOU THINK YOUR RESULTS TELL US JUST ABOUT THE STATE OF THE CONSUMER RIGHT NOW AND THE RESILIENCE OF THE CONSUMER? >> YEAH, WE HAD AN EXCEPTIONALLY STRONG QUARTER. WE WERE ABLE TO GROW GNB 32%, WHICH IS ABOUT FOUR TIMES THE RATE OF E-COMMERCE GROWTH. AS YOU MENTIONED, WE HAD 48% GROWTH IN REVENUE. OUR UNIT ECONOMIC MEASURE, THE REVENUE LESS TRANSACTION COST, WAS UP 66% YEAR ON YEAR, POSTING REALLY GREAT RESULTS AT THE TOP PART OF THE P&L, AND THAT GROWTH IS REFLECTIVE OF THE LONG-TERM TREND WE'VE BEEN TALKING A LOT ABOUT. CONSUMERS ARE VOTING WITH THEIR WALLETS, FINDING HONEST FINANCIAL PRODUCTS THAT ALLOW THEM TO GET THE THINGS THEY WANT OF OTHER CREDIT PRODUCTS. AND THE THING THAT I'M MOST EXCITED ABOUT IS WE WERE ALSO ABLE TO DO THAT WHILE DRIVING REAL OPERATING LEVERAGE IN THE BUSINESS. WE HAD $188 MILLION GROWTH IN OPERATING INCOME BECAUSE WE WERE REALLY FOCUSED AS A TEAM ON THE OUTCOMES THAT WE WERE TRYING TO DRIVE. AND WE DID ALL THAT WHILE KEEPING A REALLY TIGHT EYE ON CREDIT, OUR DELINQUENCIES WERE FLAT QUARTER ON QUARTER AND YEAR ON YEAR, AND WE STAND OUT IN PRETTY STARK CONTRAST TO SO MANY OF THE OTHER LENDERS OUT THERE WHO ARE SEEING SHARP RISES IN DELINQUENCIES, AND WE THINK THAT'S REFLECTIVE OF THE BETTER MOUSE TRAP THAT WE'VE BUILT. >> MICHAEL, WE CONTINUE TO TRY AND GET A SENSE OF WHAT THE HEALTH OF THE CONSUMER, WHAT THE RESILIENCE OF THE CONSUMER IS RIGHT NOW, AND READING THROUGH EVEN DATA LIKE YOUR OWN AS WELL AS KIND OF PAIRING THAT WITH SOME OF THE ECONOMIC DATA AND CONSUMER CONFIDENCE READINGS WE'RE GETTING FROM THE CONFERENCE BOARD TIME AFTER TIME, AND THEY'RE SAYING, FROM THEIR POSITIONING AND WHAT THEY'RE SEEING, THIS IS A CONSUMER THAT'S ALSO WAITING PENDING INTEREST RATES TO START TO GET CUT AS WELL. FROM YOUR OWN GAUGE, WHAT WOULD YOU SAY THAT THIS CONSUMER IS LOOKING FOR ON THE INTEREST RATE SIDE AND HOW THAT MIGHT FLOW THROUGH TO EVEN YOUR PRODUCTS AND SERVICES? >> YEAH, I'M NOT SURE I CAN SPECULATE AS TO WHAT CONSUMERS ARE THINKING ABOUT RATES. I KNOW FROM OUR PERSPECTIVE, WE'VE REALLY RETOOLED THE BUSINESS TO OPERATE IN THIS RATE ENVIRONMENT IN A WAY THAT'S PRETTY POWERFUL. WE WERE ABLE TO SERVE A LOT OF CONSUMERS LAST QUARTER AND FEEL VERY WELL POSITIONED TO CONTINUE TO DO THAT IN THIS ENVIRONMENT. THE CONSUMER IS STILL OUT SPENDING, HIGHLY ENGAGED, AND WE THINK THE MOST IMPORTANT THING TO POINT TO THERE IS JUST REALLY STRONG EMPLOYMENT DATA, AND SO WHILE THE CONSUMER IS FULLY EMPLOYED, WE FEEL LIKE THEY'RE GOING TO BE ENGAGED IN THE ECONOMY, AND WE'RE THERE TO SUPPORT THEM WITH FINANCIAL PRODUCTS. >> MICHAEL, WE HAVE THIS HIGHER FOR LONGER INTEREST RATE ENVIRONMENT. ARE YOU STILL CONFIDENT JUST IN YOUR ABILITY TO EXPAND AND KIND OF WEATHER SOME OF THE CHALLENGES THAT ARE ASSOCIATED, ESPECIALLY WITH YOUR BUSINESS IN THIS HIGHER FOR LONGER ENVIRONMENT, WHICH COULD POTENTIALLY STAY FOR LONGER THAN WHAT THE FORECASTERS HAD INITIALLY ANTICIPATED? >> YEAH, I THINK SO. THIS QUARTER WAS AN EXCEPTIONALLY STRONG QUARTER IN OUR UNIT ECONOMICS. WE POSTED WELL WITHIN OUR RANGE OF 3 TO 4%, AND WE TOOK UP OUR OUTLOOK FOR THAT REVENUELESS TRANSACTION COST, DESPITE THE FACT THAT WE'RE IN A HIGHER RATE ENVIRONMENT, AND THAT'S REFLECTIVE OF THE REALLY GREAT WORK THE TEAM HAS DONE. OVR THE PAST YEAR, WE'VE PUT A LOT OF EFFORT INTO MAKING SURE THE ASSET WE'RE GENERATING HAS THE YIELD REQUIRED. WE'VE EXECUTED EXTREMELY WELL IN THE DEBT MARKETS. WE PRICED AN ABS DEAL THIS WEEK WITH AN 108-BASIS-POINT HIGHER THAN AWAY WE DID IN DECEMBER, WE THINK THAT'S REFLECTIVE OF THE DEBT CAPITAL MARKETS GIVING US CREDIT FOR THE OUTSTANDING RESULTS WE'RE DRIVING IN OUR BUSINESS RIGHT NOW, AND WE THINK THAT WILL CONTINUE. WE FEEL VERY WELL POSITIONED, ESPECIALLY VIS-A-VIS COMPETITION. WE FEEL LIKE WE CAN BE AHEAD OF THE COMPETITION IN THIS ENVIRONMENT. >> IS THERE A SPECIFIC MERCHANT SUBSET YOU'RE SEEING HERE WHERE YOU'RE SEEING A RISE IN USERS OR PEOPLE WHO ARE TAKING SOME TYPE OF ADVANTAGE OF USING AFFIRM SERVICES? >> YEAH, THE GROWTH IN Q2 WAS REALLY BROAD. IT WAS ACROSS ALL MERCHANT CATEGORIES. THE ONLY CATEGORY THAT WE TRACKED THAT WAS DECLINING WAS SPORTING GOODS, AND WE THINK THAT HAS A LOT TO DO WITH SOME OF THE SECULAR TRENDS THAT ARE STILL PLAYING OUT FROM THE COVID AREA, BUT THE REST OF THE CATEGORIES ALL SHOWED REALLY STRONG GROWTH ACROSS ALL OF OUR MERCHANT TYPES.pWE WERE ESPECIA THE GROWTH THAT WE SAW IN OUR SMALL AND MEDIUM-SIZED BUSINESSES, AND THOSE BUSINESSES SHOWED REAL RESILIENCY IN Q2, AND FOR US, THAT MEANS WE WERE ABLE TO DRIVE PRETTY HEALTHY GROWTH IN MERCHANT NETWORK REVENUE, WHICH FOR US IS A REALLY KEY INDICATOR OF THE HEALTH OF THE BUSINESS. WHEN WE EARN THOSE FEES, WE CAN POST STRONG UNITS, AND I THINK THE STRONG UNIT ECONOMIC PERFORMANCE IS A FUNCTION OF ALL THE WORK WE'VE DONE AS WELL AS THE TRENDS WE SAW IN Q2 WITH RESPECT TO THE SMALLER BUSINESSES. >> IT SOUNDS LIKE AS WELL YOU'VE BEEN ABLE TO LOOK ACROSS MANY OF THE IN-PERSON SHOPPING EXPERIENCES AND TRY TO GET A SENSE OF WHERE YOU MIGHT BE ABLE TO ENTER INTO THE CHECKOUT LINE. WHAT DOES THAT ADD ON TO THAT NET MARGIN AND ULTIMATELY THE FINANCIAL PERFORMANCE, AND HOW DOES THAT KIND OF INCREASE THE PERSPECTIVE FOR THE BUSINESS OVER THE COURSE OF THIS YEAR AND PERHAPS EVEN FURTHER OUT? >> THAT'S A GREAT QUESTION. THE BUSINESS THAT WE'VE BUILT TO DATE HAS REALLY BEEN FOCUSED ON SERVING E-COMMERCE TRANSACTIONS. THAT'S BECAUSE WE'RE A SOFTWARE COMPANY, WE BUILD SOFTWARE PRODUCTS THAT SERVE THOSE TRANSACTIONS REALLY WELL. WE REALLY HAVEN'T CRACKED THE NUT INTO GETTING OFFLINE. WE WERE PLEASED TO ANNOUNCE OUR PARTNERSHIP WITH WALMART WHERE WE HAVE GOTTEN INTO SOME STORES, AND WE'RE ALSO EXTREMELY IMPRESSED WITH THE TRACTION WE HAVE ON THE AFFIRM CARD WHERE WE HAD 29% OF OUR GMV HAPPENING OFFLINE IN Q2. REALLY EFFECTIVE WAY FOR CONSUMERS TO TAKE ADVANTAGE OF THE AFFIRM FINANCIAL PRODUCT IN AN OFFLINE CONTEXT THAT IS -- USES A FORM FACTOR CONSUMERS ARE VERY FAMILIAR WITH AND DOESN'T HAVE A LOT OF FRICTION AT CHECKOUT LANE. IT'S A HUGE OPPORTUNITY FOR US. OBVIOUSLY, DESPITE THE FACT THAT E-COMMERCE IS STILL GROWING VERY QUICKLY, MUCH FASTER THAN OFFLINE COMMERCE, MOST COMMERCE IS STILL CONDUCTED OFFLINE, AND FOR US, WE THINK THAT'S A HUGE PIECE OF UPSIDE FOR OUR BUSINESS, AND WHY WE'RE SO EXCITED ABOUT THE LONG-TERM HERE. THE FACTORS THAT ARE DRIVING CONSUMERS TOWARDS ADOPTING OUR PRODUCTS, THEY'RE NOT LIMITED TO THE ONLINE USE CASE. THEY'RE ALSO VERY RELEVANT OFFLINE, AND YOU'RE GOING TO SEE US CONTINUE TO FOCUS, WHETHER IT'S THE CARD OR WORKING WITH MERCHANT PARTNERS ON DEVELOPING SOLUTIONS, TO SERVE THAT USE CASE. >> WHEN YOU TALK ABOUT THE TIMELINE OF THAT, HOW QUICKLY CAN YOU AND DO YOU PLAN TO SCALE THAT PART OF YOUR BUSINESS, GIVEN THE FACT THAT IT'S SUCH A HUGE OPPORTUNITY? >> I THINK WE'RE PRETTY HUMBLE ON THE CHALLENGE HERE. IT'S NOT AN EASY PROBLEM TO SOLVE. I DON'T THINK VERY MANY HAVE BEEN ABLE TO MAKE A LOT OF PROGRESS THERE. AND SO, WE'RE PATIENT. WE KNOW THAT THE LONG-TERM TRENDS IN OUR BUSINESS ARE IN OUR FAVOR. CONSUMERS ARE GOING TO CONTINUE TO ADOPT OUR PRODUCTS. OUR JOB IS TO MEET THEM WHERE THEY ARE AND MAKE SURE WE TAKE OUT ANY FRICTION SO THEY CAN USE THE PRODUCTS IN ANY QACASE, IN Y ENVIRONMENT THAT THEY WANT. >> MICHAEL, ALWAYS A PLEASURE TO CATCH UP WITH YOU AND GET A SENSE OF HOW YOU'RE VIEWING THINGS FROM THE C-SUITE PERSPECTIVE. MICHAEL LINFORD, THANK YOU SO MUCH. >>> COMING UP, EVERYONE, THE AMERICAN GAMBLING ASSOCIATION, GAMING ASSOCIATION, RATHER, THE AGA, ESTIMATES A RECORD 68 MILLION AMERICANS PLAN TO WAGER THIS WEEKEND. $23 BILLION IS THE TOTAL. BIG GAME SUNDAY. WE'RE TALKING SPORTS WITH THE CEO OF FANDUEL NEXT. >>> FOOTBALL FANS GEARING UP TO WATCH SUPER BOWL LVII WHILE SPORTS BETTERS PLACE THEIR FINAL WAGERS. A RECORD 68 MILLION AMERICANS PLAN TO WAGER APPROXIMATELY $23 BILLION ON THE GAME. FANDUEL EXPECTING THIS SUPER BOWL TO BE ITS BIGGEST SINGLE EVENT IN 2024. FOR MORE ON THIS, WE BRING IN FANDUEL CEO AMY HOWE. AMY, GREAT TO CATCH UP WITH YOU. BIG WEEKEND HERE AHEAD AS WE'RE EXPECTING SO MUCH EYEBALLS, IMPRESSIONS, FANFARE AND DOLLAR FLOW AROUND THE SUPER BOWL. WHAT IS THE HANDLE THAT FANDUEL IS ANTICIPATING GOING INTO THIS EVENT? >> WELL, THANK YOU FOR HAVING ME. IT'S ALWAYS SO FUN TO BE WITH YOU GUYS. LISTEN- NO DOUBT WE ARE GOING TO SET SOME RECORDS THIS YEAR. EVERY SUPER BOWL IS A RECORD FOR US. WE'RE HEADING INTO IT WITH PHENOMENAL MOMENTUM. WE JUST CAME OFF THE NFC CHAMPIONSHIP, WHICH WAS THE SINGLE BIGGEST DAY WE'VE EVER HAD. I THINK, AT OUR PEAK, WE HAD 60,000 BETS PER MINUTE, BUT THERE'S SOMETHING FOR EVERYONE. IF YOU GO ON THE FANDUEL APP, YOU'LL SEE OVER 600 PRE-LIVE MARKETS, GREAT LIVE BETTING OFFERINGS THIS YEAR, AND AS YOU CAN IMAGINE, THERE'S A TREMENDOUS AMOUNT OF EXCITEMENT AROUND THE PLAYER PROPS, TRAVIS KELCE, OF COURSE, PATRICK MAHOMES, CHRISTIAN McCAFFREY, BUT THERE'S REALLY SOMETHING FOR EVERYONE. ONE OF THE BIG PLAYER PROPS THAT'S REALLY TAKEN OFF IS THE CORRECT SCORE. TOOK OFF ON A SOCIAL CHANNEL. IT'S ONE OF THE MOST POPULAR, FOLKS THINKING THE CHIEFS ARE GOING TO WIN 31-21 TO THE 49ers. SO, GO ONLINE, AND THERE'S LOTS TO LOOK FORWARD TO. >> AMY, I'M SURE YOU'VE GOTTEN A LOT OF QUESTIONS ABOUT THE TAYLOR SWIFT EFFECT, BUT I'M CURIOUS IF YOU HAVE SEEN IT DRAW IN MORE FEMALE INTEREST OR MORE WOMEN USING FANDUEL TO BET BECAUSE OF THE INTEREST THAT'S BEEN GENERATED BY TAYLOR SWIFT? >> YEAH, WE REALLY HAVE. IF YOU LOOK AT OUR NEW ACTIVATIONS, CLOSE TO 35% OF THEM ARE WOMEN. THERE'S NO DOUBT IT HAS REALLY ATTRACTED A NEW USER TO OUR PLATFORM, AND IT'S SUCH A PERFECT TIME OF THE YEAR TO DO IT, RIGHT? WOMEN AND MEN GET THE OPPORTUNITY TO SEE WHY PEOPLE ARE SO EXCITED ABOUT SPORTS BETTING. IT'S REALLY KIND OF CREATED A GAME WITHIN A GAME. SINCE TAYLOR SWIFT HAS BEEN ON THE SCENE, THE PLAYER PROPS FOR TRAVIS KELCE HAVE MORE THAN DOUBLED, SO IT'S BRINGING THAT EXCITEMENT, AND IT'S ALSO BROUGHT MORE WOMEN TO NFL AS WELL. SO, IT'S HAD A REALLY POSITIVE EFFECT. >> WE WERE ALL WATCHING WITH GREAT ANTICIPATION THE IPO OF YOUR PARENT COMPANY, FLUTTER. WHEN YOU THINK ABOUT HOW YOU LOOK AT THAT MOMENT AND NOW TRY TO FIGURE OUT, OKAY, WHAT IS THE NEXT GROWTH INITIATIVE THAT WE PUT FORWARD AT FANDUEL FROM HERE TO CONTRIBUTE TO THE THAT LARGER BUSINESS, YOU KNOW, WHAT DOES THAT ROAD MAP LOOK LIKE FOR THE YEAR? >> I MEAN, GOSH, THAT WAS JUST LAST WEEK. WE WERE STANDING ON THE FLOOR OF THE NEW YOK STOCK EXCHANGE RINGING THE BELL. ROB GRONKOWSKI WAS THERE. BY THE WAY, DON'T FORGET TO GO PICK WHETHER ROB'S GOING TO MAKE OR MISS. BUT LISTEN, IT'S A HUGE MOMENT FOR US RIGHT NOW. FLUTTER'S THE LARGEST GLOBAL GAMING COMPANY IN THE WORLD, AND SO NOW, U.S. INVESTORS REALLY HAVE AN OPPORTUNITY TO BUY INTO THE LEADING NOW MOST PROFITABLE BRAND IN THE U.S., AND THAT IS GOING TO JUST FURTHER FUEL OUR COMPETITIVE ADVANTAGE. IT ALLOWS US TO REINVEST BACK INTO REALLY STRENGTHENING OUR LEAD ON PRODUCT AND INNOVATION, AND AS MORE OF THE U.S. MARKET OPENS UP, YOU KNOW, 50% OF THE MARKET STILL HAS TO OPEN UP, CALIFORNIA, FLORIDA, AND TEXAS OVER TIME, IT GIVES US TREMENDOUS RUNWAY, AND IMPORTANTLY, IT GIVES US AN OPPORTUNITY TO ATTRACT AND RETAIN THE BEST TALENT IN THE WORLD. WE COULDN'T BE MORE EXCITED ABOUT THAT INFLECTION POINT, AND THERE'S EVEN MORE RUNWAY AHEAD. >> AMY, WHEN YOU TALK ABOUT ATTRACTING NEW AND RETAINING YOUR CURRENT USERS, WHAT DOES YOUR MARKETING SPEND LOOK LIKE, AND HOW ARE YOU TRYING TO BUDGET FOR THAT GIVEN THE FACT THAT WE ARE EXPECTED TO GET MORE STATES TO COME ONLINE OVER THE NEXT COUPLE YEARS? >> WELL, MARKETING IS SUCH A CRITICAL PART OF WHAT WE'RE DOING. WE'RE TRYING TO BRING CONSUMERS OVER FROM THE BLACK MARKET, AND WE'RE TRYING TO DO THAT SAFELY. AS NEW STATES OPEN UP, IT'S IMPORTANT TO MAKE SURE THAT WE CAN CREATE AWARENESS AROUND OUR BRAND BUT ALSO, YOU KNOW, CREATE AWARENESS AROUND HOW YOU BET RESPONSIBLY. SO, IT'S A CRITICAL PART OF HOW <u>E BRING USERS ON TO </u> PLATFORM, AND WE HAVE HAD THE OPPORTUNITY TO PARTNER WITH THE BIGGEST LEAGUES IN THE WORLD. WE HAVE A GREAT PARTNERSHIP WITH HE NFL, THE NBA, ALL THE LEAGUES THAT YOU SEE UP ON THE SCREEN RIGHT HERE. AND WE'RE WORKING WITH SOME OF THE BIGGEST MEDIA PARTNERS TO MAKE SURE THAT WE CAN REACH THE SPORTS BETTING CONSUMER IN THE RIGHT MOMENT, AND SUPER BOWL, THERE'S NO BETTER TIME. THIS IS ONE OF THE SINGLE BIGGEST EVENTS TO BRING NEW USERS ON TO THE PLATFORM AND SHOW WHY THERE'S SO MUCH EXCITEMENT IN SPORTS BETTING. >> AMY, THERE'S A LOT OF STATES WHERE, THIS YEAR, WE KNOW THAT GAMBLING MAY BE ON THE BALLOT, BUT SPECIFICALLY, WHERE THE SUPER BOWL IS BEING HELD AT THIS YEAR, IN LAS VEGAS, NEVADA, IN VEGAS, THE STATE LAW STILL DOESN'T ALLOW FOR PEOPLE TO USE AN ONLINE OR MOBILE SPORTSBOOK WITHOUT FIRST REGISTERING IN-PERSON, PHYSICALLY, AT A SPORTSBOOK. SO, I GUESS, WHILE YOU'RE THERE, WHAT TYPE OF CONVERSATIONS ARE YOU HAVING WITH LOCAL REGULATORS THERE TO TRY AND FIGURE OUT HOW THAT CAN CHANGE, KNOWING THE AMOUNT OF PEOPLE THAT COME TO VEGAS FOR AN EXPERIENCE BUT ALSO WANT TO BE ABLE TO USE WHAT THEY USE, PERHAPS, BACK HOME? >> WELL, FANDUEL DOES HAVE A SPORTSBOOK AT THE FREMONT CASINO, SO IF YOU'RE HERE, STOP BY. IT'S WITH YOUR GREAT PARTNER, BOYD. BUT YOU'RE RIGHT. IN NEVADA, YOU HAVE TO REGISTER IN-PERSON. WE HAVE A GREAT RELATIONSHIP WITH THE NEVADA GAMING COMMISSION, AND WE'RE CAUTIOUSLY OPTIMISTIC THAT OVER TIME, YOU'LL BE ABLE TO BET LEGALLY ON FANDUEL. SO, IT'S AN IMPORTANT MARKET FOR US, JUST LIKE MANY OF THE OTHER MARKETS THAT HAVE YET TO OPEN UP, BUT LISTEN, WE'RE FIVE YEARS IN -- >> AMY HOWE -- >> -- ALMOST 50%. >> I LOST YOUR AUDIO THERE. APOLOGIES. >> THANK YOU. >> APOLOGIES FOR THAT. WE LOST YOUR AUDIO FOR A SECOND. CEO OF FANDUEL. THANKS. >>> ALL RIGHT, WELL, NVIDIA REPORTEDLY AIMING TO CAPTURE A GROWING MARKET HERE FOR CUSTOM A.I. CHIPS WITH A NEW BUSINESS UNIT. YAHOO! FINANCE'S DAN HOWLEY HERE WITH THE DETAILS. DAN, WE'RE LOOKING AT THE STOCK MOVING TO THE UPSIDE, UP JUST ABOUT 2%. >> THAT'S RIGHT, SEANA. NEARING AMAZON'S MARKET VALUE HERE, WELL PAST THE $1 TRILLION MARK. THIS IS AN EXCLUSIVE REPORTING FROM REUTERS, BASICALLY, THEY SAY THAT THEY'VE SPOKEN TO SOME FOLKS AND THAT NVIDIA'S MOVE INTO THE THE CUSTOM CHIP SPACE. NOW, LET ME JUST KIND OF BREAK DOWN WHAT THAT WOULD MEAN. NVIDIA CURRENTLY SELLS ITS H-100, ITS HIGH-END CHIP, TO BIG CLOUD COMPANIES, A.I. COMPANIES, THINGS LIKE THAT. THAT IS BASICALLY -- THINK OF IT AS LIKE A LAMBORGHINI. IT'S PROBABLY PRICED ALONGSIDE A LAMBORGHINI. IT'S MEANT TO BE THIS, YOU KNOW, MASSIVE MACHINE THAT'S CAPABLE OF DOING TONS AND TONS OF PROCESSES CONSTANTLY, SIMULTANEOUSLY, RIGHT? SO, THAT'S THE BEAUTY OF A GPU. THE PROBLEM IS, LIKE A LAMBORGHINI, IT EATS THROUGH ENERGY. SO, A LOT OF COMPANIES, MICROSOFT, AMAZON, META, ALPHABET, THEY'RE BUILDING THEIR OWN CUSTOM CHIPS. THEY'RE CALLED ASICS, AND ESSENTIALLY, WHAT THEY ARE IS JUST SPECIFIED CHIPS DESIGNED FOR SPECIFIC NEEDS. SO, YOU HAVE THESE LARGER CHIPS THAT NVIDIA HAS, AND THEY'RE KIND OF ALL-PURPOSE FOR GGPUs AD A.I., WHEREAS ASICS MIGHT MEET A SPECIFIC NEED THAT'S DIFFERENT FOR MICROSOFT OR META. THOSE COMPANIES ARE INCREASINGLY LOOKING AT THOSE, AND THE FEAR, AT LEAST FOR NVIDIA, IS THAT THAT WILL EVENTUALLY EAT INTO THEIR MARKET SHARE AS WELL AS THEIR TOTAL ADDRESSABLE MARKET, BECAUSE IF YOU HAVE A COMPANY THAT'S BUILDING ITS OWN CHIPS AND THEY'RE SPECIFIED FOR THEIR NEEDS, THEN WHY DO THEY HAVE TO GO AND BUY THE LAMBORGHINIS THAT NVIDIA OFFERS? NOW, IT LOOKS LIKE NVIDIA IS TRYING TO WORK WITH THESE COMPANIES AND SAY, HEY, WE CAN DO THAT TOO, AND WE CAN DO IT BETTER THAN WHAT YOU CAN DO BECAUSE WE ALREADY DID THE BIG STUFF ON THE LAMBORGHINI SIDE OF THINGS. AND SO, THAT SEEMS TO BE WHAT THE COMPANY IS GOING FOR HERE, WHERE THEY'LL BE ABLE TO HAVE THESE MORE CUSTOMIZABLE CHIPS, AND THE BIG DEAL IS THEY USE LESS ENERGY. THESE ARE REALLY ENERGY INTENSIVE APPLICATIONS AND CHIPS WHEN YOU'RE LOOKING AT THE BIGGER ONES, SO WHEN YOU LOOK AT THESE MORE CUSTOMIZED ONES, THEY'RE LESS ENERGY INTENSIVE, AND THEY'RE SPECIFIC TO THESE COMPANIES' REQUIREMENTS, AND SO AS WE SEE THAT, WE COULD SEE NVIDIA REALLY KIND OF PUSH THOSE COMPANIES' OWN INTERNAL PROJECTS ASIDE, AND BECOME THE LEADER IN THAT AS WELL. IT DOESN'T MEAN, BY THE WAY, NECESSARILY, THAT NVIDIA IS UNDER THREAT AT ANY, YOU KNOW, POINT RIGHT NOW. THERE'S -- THE ONLY COMPANIES THAT ARE MAKING THESE CUSTOM CHIPS ARE THE MASSIVE SUPER CLOUD PROVIDERS, MICROSOFT, AMAZON, META, THINGS LIKE THAT. THERE'S STILL COMPANIES ALL OVER THE WORLD THAT ARE FIGHTING FOR ACCESS TO NVIDIA'S BIG CHIPS, AND SO THOSE ARE GOING TO CONTINUE TO SELL. IT'S JUST THEY'RE BEING PROACTIVE ABOUT THIS AND SEEMINGLY TRYING TO GET IN FRONT OF MORE COMPANIES GOING TOWARDS THIS MORE SPECIFIED KIND OF CHIP DIRECTION. >> ALL RIGHT, HOWLEY, THANK YOU SO MUCH FOR BREAKING IT DOWN. WE HAVE SEEN, CERTAINLY, A LOT OF INVESTOR EXCITEMENT SURROUNDING NVIDIA STOCK WITH THE -- WITH SHARES MOVING TO THE UPSIDE ONCE AGAIN TODAY. DAN, THANK YOU. >>> WELL, EARNINGS HAVE BEEN THE BIG DRIVER OF THE MARKET THIS WEEK, AND LOOKING AHEAD TO NEXT WEEK, WE'VE GOT NAMES LIKE AIRBNB SET TO REPORT THEIR QUAR QUARTERLY RESULTS. LET'S TAKE A LOOK BACK AT HOW THE COMPANY GOT TO WHERE IT IS TODAY. ♪ >> AIRBNB, A COMPANY THAT'S BECOME SYNONYMOUS WITH TRAVEL AND LEISURE. AIRBNB'ING IS NOW A VERB IN ITS OWN. THE LAST TIME THE BOOKING PLATFORM REPORTED A SOLID PERFORMANCE, IT WAS OVERSHADOWED BY A LESS THAN ROSY OUTLOOK FOR THE FOURTH QUARTER. SO, WHAT SHOULD YOU LOOK OUT FOR THIS QUARTER? HERE ARE THREE THINGS YOU NEED TO WATCH. NUMBER ONE, BOOKING GROWTH. LOOKING OUT FOR TWO KEY METRICS. FIRST, GROSS BOOKING VALUE. THAT'S THE TOTAL AMOUNT OF PAYMENTS PROCESSED ON THE PLATFORM. EVERYTHING FROM HOST PAYMENTS TO CLEANING FEES, BUT IT DOES NOT INCLUDE CANCELLATIONS. LAST QUARTER, GROSS BOOKING VALUE LANDED AT OVER $18 BILLION, A 17% GAIN FROM THE PRIOR YEAR. THEN, THERE'S NIGHTS AND EXPERIENCES BOOKED. THE PLATFORM REPORTED OVER 100 MILLION BOOKINGS FOR THE QUARTER, WHICH TOPPED WALL STREET ESTIMATES. NOW, AS WE TURN TO THE FOURTH QUARTER, THE REVENUE FIGURE WILL BE CLOSELY WATCHED AS THE COMPANY GUIDED A LITTLE BELOW EXPECTATIONS. NUMBER TWO, INTERNATIONAL EXPANSION. IN THE LAST QUARTER, AIRBNB SAID THEIR EXPANSION PLANS INTO INTERNATIONAL MARKETS IS GAINING MOMENTUM. KEEP AN EYE OUT ON WHAT IS CALLED UNDERPENETRATED MARKETS. THAT MEANS A MARKET WITH LITTLE COMPETITION FOR THE SAME SERVICE. ASIA PACIFIC IS ONE. BUT ALSO, TAKE INTO ACCOUNT MARKETS LIKE GERMANY, BRAZIL, AND KOREA. BEYOND THAT, IT'S IMPORTANT TO HAVE A PULSE ON ANYTHING THE COMPANY HAS TO SAY ABOUT A.I. AND HOW IT COULD BE A GAME-CHANGER FOR INTERNATIONAL GROWTH IN THE COMING MONTHS. LASTLY IS REGULATION, ANOTHER KEY AREA TO WATCH. IN THE THIRD QUARTER, AIRBNB SAW HIGHER PRICES FOR SHORT-TERM RENTALS, SO THIS AREA COULD BE HURT BY CHANGES IN THE REGULATORY LANDSCAPE. FOR EXAMPLE, NEW YORK CITY'S NEW LAW REQUIRES ALL SHORT-TERM RENTAL HOSTS TO REGISTER WITH THE CITY. THEY MUST SHOW WHEN THEIR GUESTS ARE STAYING AND ONLY TWO GUESTS CAN STAY AT A TIME. THIS APPLIES TO ALL OTHER PLATFORMS LIKE VRBO AND BOOKING.COM. THE BIG QUESTION HERE, WILL OTHER CITIES FOLLOW SUIT, AND WHAT COULD IT MEAN IN THE LONG-TERM? THERE'S A LOT TO DIGEST AS WE LOOK AT AIRBNB'S FOURTH QUARTER EARNINGS, AND YAHOO! FINANCE WILL BE TACKLING THE LATEST DEVELOPMENTS. >>> ARE YOU? >> THE BUD LIGHT GENIE. >> '80s METAL HAIR. >> FILTHY RICH. >> I WISH PAY PEYTON MANNING WAS MY BEST FRIEND. >> HOW'S IT GOING? >> OH, POST MALONE. >> HEY. >> WHO WISHED FOR A T-REX? >> GUILTY. >> LET'S GO TO SUPER BOWL LVII. >> NOW WE'RE TALKING. >> A FUN ONE TO LOOK FORWARD TO ON SUNDAY BECAUSE BEER GIANTS ARE SPENDING HUGE ONCE AGAIN ON THE SUPER BOWL. THEY'RE DOING EVERYTHING THEY CAN TO WIN BACK SOME OF THEIR LOST CUSTOMERS, AND THE BRAND WITH THE MOST ON THE LINE WAS ARGUABLY BUD LIGHT. STILL STRUGGLING TO RECOVER FROM A CONSUMER BOYCOTT LAST YEAR. TAKING A LOOK AT THE BROADER INDUSTRY, DATA OUT FROM BANK OF AMERICA SHOWING THAT THE SECTOR REMAINS UNDER PRESSURE. SHIPMENTS FALLING TO THE LOWEST LEVEL WE'VE SEEN IN ABOUT 25 YEARS. WE WANT TO BRING IN PETER, BANK OF AMERICA'S FOOD AND BEVERAGE ANALYST. IT'S GREAT TO HAVE YOU. FIRST, I THINK WE GOT TO TALK REACTION TO THE AD. WHAT'D YOU THINK? >> FOR BUD LIGHT, IT'S ABOUT GETTING BACK TO BEING FUNNY. THAT'S WHAT THE BRAND MEANS TO MOST CONSUMERS, AND SO THEY'VE ADDED HUMOR BACK INTO THE EQUATION. YOU HAVE POST MALONE AND PEYTON MANNING, WHO HAS HAD A GREAT SECOND CAREER. WE ALL REMEMBER THE "SNL" WITH PEYTON MANNING WAS ONE OF THE ALL-TIME VIEWED. I THINK IT'S GREAT AD COPY. IT'S GOING UP AGAINST, THOUGH, REMEMBER, 15 YEARS AGO, COORS LIGHT ROLLED OUT THE COLD TRAIN. WE'RE BRINGING THE COLD TRAIN BACK. THIS IS A TRUE HEAVYWEIGHT KNOCKDOWN, DRAGOUT FIGHT BETWEEN THE BEER COMPANIES. THIS IS THE MATCHUP. BUT GREAT AD. >> YEAH. LOOK, I WAS GIVING THE REST OF THE TEAM MY UNSOLICITED AD REVIEWS EARLIER TODAY. I THINK IT COMES DOWN TO HOPE, HUMOR, SERVICE, VALUE PROPOSITION AS WELL, OR PRODUCT, AND THEN JUST GOOD DELIVERY HERE. SO, THE JURY IS OUT, AT LEAST WITH BRAD EQUITY PARTNERS, ON WHERE I'M RATING THAT ONE. WHILE WE HAVE YOU, PETER, AND YOU THINK ABOUT THIS OVERALL INDUSTRY AND WHAT THE CONSUMER IS LOOKING FOR, FOR THESE COMPANIES TO DELIVER UPON, YOU KNOW, WHAT IS IT? IS IT SOMETHING JUST, LIKE, A GOOD AD SPOT WITH A GOOD SALESMAN AS WELL? BUT THE PRODUCT ITSELF TOO, WHERE IS -- WHERE ARE THEY LOOKING FOR DIFFERENTIATION? >> I THINK THE VALUE PIECE THAT YOU MENTIONED IS IMPORTANT, BUT REMEMBER THAT WHAT BEER OR WHAT ALCOHOL, PARTICULARLY IN THIS SETTING, IS SUPPOSED TO PROVIDE, ESSENTIALLY AN ESCAPE FOR PEOPLE. AND IF YOU'RE ENJOYING THE GAME, THAT'S WHAT PEOPLE ARE LOOKING FOR. FOR BUD LIGHT TO GET BACK TO ITS ROOTS, EVERYTHING IN HUMOR, THIS GOES BACK A FEW YEARS AS WELL. BUD LIGHT TOOK SOME SHOTS AT MILLER LITE IN THE 2019 SUPER BOWL. KIND OF GOT OFF MESSAGE. BUT LOOK, THE OVERALL CONSUMER, PARTICULARLY YOUNGER CONSUMERS, ARE KIND OF SHUNNING BEER. THIS IS A CHANCE FOR THEM TO KIND OF START TO GAIN NEW ENTRANTS INTO THE CATEGORY. >> TALK TO US ABOUT HOW HIGH THE STAKES ARE. THERE'S GOING TO BE SO MANY EYEBALLS ON THIS GAME. DO YOU HAVE CONFIDENCE THAT BUD LIGHT IN PARTICULAR IS GOING TO BE ABLE TO RE-ESTABLISH SOME OF THAT CUSTOMER CONNECTION OR WIN BACK THEIR CUSTOMERS THROUGH THEIR AD PUSH HERE DURING THE GAME? >> I THINK THERE'S A CHANCE. BUD LIGHT, ANHEUSER-BUSCH, GETS COVERED OUT OF OUR EUROPEAN TEAM AS WELL, SO I'LL SPEAK MORE TO THE CORE SIDE. I THINK THE BIGGER QUESTION WE GET A LOT OF IS, HOW MUCH OF THE MARKET SHARE THAT MILLER LITE, COORS, GAINED AT THE EXPENSE OF BUD LIGHT? HOW MUCH OF THAT CAN THEY RETAIN? MO MODELO IS NOT GOING TO BE ON TV, BUT HAS TAKEN OVER THE NUMBER ONE POSITION IN BEER. WE'LL SEE. I THINK THE BIGGER RISK IS, IS THE COORS LIGHT AD EFFECTIVE IN RETAINING THOSE CONSUMERS THAT THEY WON OVER IN THE PAST YEAR? >> I KNOW IT'S AHEAD OF THE AD HERE, BUT DO YOU EXPECT MODELO TO BE ABLE TO RETAIN SOME OF THAT NEW CUSTOMER BASE THAT THEY WERE ABLE TO ATTRACT FROM BUD LIGHT? >> I MEAN, IT'S STILL THE FASTEST-GROWING BEER IN AMERICA. IT'S A HUGE BENEFICIARY OF CHANGING DEMOGRAPHICS WITHIN THE U.S., AND THERE'S STILL A LOT OF OPPORTUNITY, WHITE SPACE OPPORTUNITY, PUSHES FOR MODELO OUTSIDE TRADITIONAL MARKETS LIKE CALIFORNIA. BIGGER PUSHES IN NEW YORK, BIGGER PUSHES IN TEXAS. >> WHICH OF THE BEVERAGE COMPANIES HAS THE BEST EXPANSION STRATEGY THAT DOES NOT OVER-RELY ON BEER OR WINE OR SPIRITS? >> I THINK IF WE'RE GOING TO TALK TOTAL BEVERAGES, THERE'S STILL A LOT OF WHITE SPACE OPPORTUNITY IN ENERGY DRINKS. YOU KNOW, WE'RE GOING TO SEE HOW, NOW THAT MONSTER OWNS THE BANG PLATFORM, IF THEY'RE ABLE TO REJUVENATE THAT TO COMPETE HEAD-TO-HEAD WITH CELSIUS. I THINK IN BEER, THOUGH, IT'S STILL A PRETTY CHALLENGING CATEGORY. YOU'RE SEEING THAT DECLINE. YOU'RE SEEING THE MODELO AND PCIFICO TAKE SHARE WITHIN THAT CATEGORY. GIVEN THE FAVORABLE DEC DEMOGRAPHICS, MAYBE A LITTLE BIT MORE OF A BETTER TASTE PROFILE, ACCORDING TO CONSUMERS. >> PETER, HOW RECESSION-PROOF IS THIS INDUSTRY OVERALL? YOU TALK ABOUT THE FACT THAT CONSUMERS ARE STILL UNDER A BIT OF PRESSURE. THEY'RE STRUGGLING WITH HIGHER PRICES. WHERE DOES THAT, THEN, POSITION THESE NAMES? >> SO, YOU DO SEE SOME TRADEDOWN FOR SURE. I THINK THAT AS CONSTELLATION BRANDS HAS TALKED ABOUT PRETTY OPENLY, THEIR CONSUMER TENDS TO BE A BIT MORE INCOME SENSITIVE, AND THEY WERE MORE RETICENT, AND THE BEER INDUSTRY IN GENERAL WAS MORE RETICENT TO TAKE PRICING VERSUS SOFT DRINKS OR PACKAGED FOOD COMPANIES. >> WITHIN THAT ENVIRONMENT, WHICH IS BEST POSITIONED TO OUTPERFORM ON A STOCK BASIS? >> WE LIKE CONSTELLATION BRANDS THE BEST OF THE NAMES. AND AGAIN, DEMOGRAPHIC TAILWIND STORY, STILL A GROWTH STORY WITHIN THE CATEGORY, ABILITY TO BUY BACK SHARES. THAT'S WHERE WE WOULD PLACE OUR BETS. >> PETER GALBO, GREAT TO HAVE YOU. WHO DO YOU HAVE WINNING ON SUNDAY? >> MY HEART SAYS 49ers, BUT IT'S TOUGH TO BET AGAINST MAHOMES. >> IT IS. THAT'S BEEN GENERAL CONSENSUS. >> I'VE ONLY BOUGHT ONE NFL JERSEY IN THE PAST SEVEN YEARS, AND GUESS WHO IT'S BEEN? MAHOMES. MY KELLY GREEN JERSEY WAS SOLD OUT. >> MY BILLS CAN'T SEEM TO GET PAST MAHOMES. >> THANK YOU SO MUCH FOR JOINING US ONSET. >>> LET'S SHIFT GEARS JUST A BIT, WE ARE MORE THAN JUST ABOUT AN HOUR INTO THE TRADING DAY. WE GOT TO GET BACK TO THE MARKETS. THE S&P HOVERING RIGHT AROUND THAT 5,000 LEVEL, JUST ABOVE THAT LEVEL HERE. THAT'S SO CRITICAL HERE. WE'LL SEE WHETHER OR NOT WE ARE ABLE TO CLOSE ABOVE THAT MILESTONE FOR. JARED BLIKRE IS STANDING BY AT THE BIG BOARD FOR US. >> THAT'S RIGHT, SEANA. WE'LL SEE IF WE CAN GET THAT CLOSE. IN THE MEANTIME, TECH IS LEADING, AND THE DOW, THAT'S IN NEGATIVE TERRITORY, BUT THE NASDAQ COMPOSITE, UP 86 BASIS POINTS, THE RUSSELL 2000 UP A LITTLE BIT LESS THAN THAT, AND I WANT TO KIND OF FOCUS ON THE RUSSELL 2000 FOR A MINUTE. THIS IS A THREE-YEAR CHART, AND YOU CAN SEE OVER THE LAST TWO YEARS, ROUGHLY, BEEN TRADING AT A VERY FLAT RANGE, VERY SIDEWAYS, AND IT'S FRUSTRATD A LOT OF TRADERS. OVER THE LAST THREE MONTHS, THOUGH, WE HAVE KIND OF BEEN CONSOLIDATING IN THIS PENNANT FORMATION, AND WE'RE JUST NOW BREAKING TO THE UPSIDE. IF WE CLOSE THERE, THAT WILL BE A MILD BREAKOUT. THE REASON I MENTION THIS, WE HAVE HAD SOME OF THE SMALLER INDEXES LIKE THE RUSSELL IF2000 ALSO THE TRANSPORTS, NOT CONFIRMING THE VERY BULLISH ACTION WE'RE SEEING IN OTHER MARKETS, INCLUDING TECH, INCLUDING THE DOW INDUSTRIALS THEMSELVES, BUT THE DOW TRANSPORTS HERE TRYING TO BREAK THROUGH THAT THREE-MONTH HIGH. I'LL SHOW YOU A THREE-YEAR CHART. YOU CAN SEE WE HAVE HAD HIGHER HIGHS IN THERE, BUT FOR THE MOST PART, THIS IS A VERY IDEWAYS MARKET AS WELL. WELL, LET ME SHOW YOU A MARKET THAT IS NOT GOING SIDEWAYS. THIS IS THE NASDAQ 100. PUT A LINE CHART ON HERE. ONLY YESTERDAY DID WE BREAK TO THE UPSIDE FOR THE FIRST TIME. NOW, THIS IS THE NASDAQ 100 EQUAL WEIGHTED. IF YOU'RE LOOKING AT THE NASDAQ REGULAR WEIGHTED, THAT WOULD BE MARKET CAP WEIGHTED WHERE YOU HAVEALL THE BIG NAMES LIKE APPLE WEIGHTED MORE ACCORDING TO THEIR SIZE, YOU CAN SEE THIS BROKE TO THE UPSIDE QUITE STRONGLY, AND THAT WAS LATE LAST YEAR. BUT THEN, YOU GO DOWN THE TECH SECTOR. YOU TAKE A LOOK AT THE F.A.N.G. INDEX. THIS IS LARGELY CORRELATED TO THE MAG SEVEN. THIS IS EVEN MORE BULLISH THAN THE NASDAQ 100, AND THEN YOU TAKE A LOOK AT THE SEMICONDUCTORS. THAT'S A SIMILAR SITUATION AS WELL. AND I HAVE BEEN TRACKING THE SEMICONDUCTORS. IT'S NOT JUST NVIDIA. IT'S A WHOLE SLEW OF THEM. BY THE WAY, THIS IS THE SECTOR ACTION THAT'S TECH IN THE NUMBER ONE SPOT, FOLLOWED BY CONSUMER DISCRETIONARY. LET'S STICK WITH THE SEMICONDUCTORS HERE. NVIDIA AT ANOTHER RECORD HIGH. THAT'S PROBABLY GOING TO HAPPEN MOST DAYS, AT LEAST IT HAS HAPPENED MOST DAYS THAT I HAVE SEEN. TAIWAN SEMI HERE, THIS IS AN INTERESTING STOCK. IT'S DOWN A LITTLE BIT TODAY, BUT HERE IT IS ON A THREE-YEAR BASIS, AND IT IS RIGHT UP AGAINST THESE HIGHS THAT WE'VE SEEN. HERE'S A FIVE MORE YEAR. AND YOU CAN SEE IT'S THREATENING TO TAKE OUT THIS TOP RIGHT HERE. THIS WAS A PRETTY BIG M-TOP, BUT THIS IS THOROUGHLY COMPLETED THAT PATTERN, AND NOW WE ARE IN AN UPWARD TREND WITH HIGHER HIGHS AND HIGHER LOWS. WE HAVE APPROACHED THESE LEVELS VERY QUICKLY, SO I WOULD EXPECT A LITTLE BIT OF A PAUSE BEFORE BEING ABLE TO BREAK THROUGH, IF THAT HAPPENS, BUT NEVERTHELESS, LOOKING PRETTY BULLISH THERE. AND I WAS ALSO TAKING A LOOK AT ASML. THIS IS A STOCK THAT JUST RECENTLY BROKE TO ITS OWN NEW RECORD HIGHS, AND JUST LOOKING AT THE TECH SEMICONDUCTOR SPACE OVERALL IN THE YEAR, LET ME PULL UP THE YEAR-TO-DATE FIGURES FOR YOU, AND YOU CAN SEE, NVIDIA, NUMBER TWO NEXT TO SUPER MICROCOMPUTER. THAT'S UP 161%. LOOK AT TAIWAN SEMI, ASML, EACH UP MORE THAN 24%, MORE THAN AMD. SO, THE CHIP SECTOR ALL AROUND IS JUST ON FIRE, GUYS. >> YEAH, CERTAINLY HAS HAD A TREMENDOUS START TO THIS YEAR. JARED, THANK YOU SO MUCH FOR BREAKING THAT DOWN FOR US. >>> KEEP IT RIGHT HERE ON YAHOO! FINANCE. MUCH MORE OF YOUR MARKET ACTION AHEAD. WE'LL BE RIGHT BACK. >>> X, FORMERLY TWITTER, IS PARTNERING WITH THE WWE, LAUNCHING A NEW WEEKLY SERIES CALLED "WWE SPEED." THE PLAN, TO RELEASE 52 EPISODES OF FIVE-MINUTE MATCHES ANNUALLY FOR THE NEXT TWO YEARS. X HAS BEEN PUSHING FURTHER AND FURTHER INTO THE VIDEO SPACE SINCE MUSK'S TAKEOVER IN 2022. NOTABLY, SIGNING SOME FORMER ANCHORS TO NOW THEIR OWN PROGRAMS ON THAT PLATFORM, BUT NOW ALSO TRYING TO GET FURTHER INTO SOME OF THE SPORTS REALM AS WELL WITH CONTENT AS WE DO KNOW THAT WWE, FOR ITS OWN RIGHT, HAS BEEN PRETTY BUSY RECENTLY FOR TKA HOLDINGS. WE KNOW WWE HAS ALSO BEEN ABLE TO NET A DEAL WITH NETFLIX RECENTLY, TOO. >> CERTAINLY. I MEAN, IT IS A HUGE PUSH HERE. THEY'RE TRYING TO GET MORE EYES ON THEIR PROGRAM. THE FACT THAT THEY'RE DOING THIS ON X, I THINK IT'S A WIN FOR BOTH PARTIES. YOU'RE GOING TO POTENTIALLY, HERE, EXPAND YOUR CONSUMER BASE IF THEY ARE ABLE TO WATCH MATCHES LESS THAN FIVE MINUTES. WHAT DO YOU CALL THEM, A MATCH? >> IT'S A MATCH. >> I WAS RIGHT. A MATCH. MATCHES THAT ARE LESS THAN FIVE MINUTES. IT TIES BACK TO WHAT WE HAVE HEARD FROM ELON MUSK TIME AND TIME AGAIN. HE'S LOOKING TO SPEND AND GENERATE AND HAVE MORE CONTENT ON THE SITE. HE'S LOOKING TO DO THAT IN WAYS THAT WORK ON A PLATFORM. A LOT OF THAT IS BEING DONE IN SHORTER VIDEO CLIPS, SO HE'S DOING IT THROUGH SPORTS. I THINK IT COULD BE A WIN-WIN. ALSO, WWE FANS, THEY'RE DIE-HARDS. >> FOR ADVERTISERS WHO HAVE SPENT DECADES ADVERTISING UP AGAINST WWE, YOU KNOW THE PRODUCT, YOU LARGELY KNOW WHAT YOU'RE GETTING. YOU'RE GETTING SOMETHING THAT IS SOMEWHAT OF A SCRIPTED SERIES, DON'T COME AT ME FOR THAT ONE, BUT YOU ALREADY KNOW WHAT THE EYEBALLS ARE GOING TO LOOK LIKE, SO YOU KNOW THE IMPRESSIONS, YOU KNOW THE REACH YOU MIGHT BE ABLE TO EXPOUND UPON. THAT, PERHAPS, FOR X IN ITS OWN RIGHT IN TRYING TO GET ADVERTISERS BACK AFTER ELON SAID "GO F YOURSELF," THIS IS A WAY TO SAY, HEY, WE HAVE WWE. >> THEY'RE DOING EVERYTHING THEY CAN TO WIN BACK THE TRUST AND CONFIDENCE OF ADVERTISERS WHO HAVE SIMPLY SAID THEY CANNOT AND WILL NOT BE SPENDING ON X RIGHT NOW. WE KNOW THAT HAS BEEN A JOB FOR LINDA YACCARINO, AND SHE IS DOING EVERYTHING THEY CAN. THIS IS A STEP IN THE RIGHT DIRECTION FOR X. >>> LET'S TAKE A QUICK CHECK OF THE MARKETS HERE. HOUR AND A HALF INTO THE TRADING DAY. THE S&P, WE DID OUR PART. >> WE DID IT. >> CLOSING OUR SHOW. >> ALMOST. >> ABOUT 5,000. WE WILL SEE IT TRADES THE REST OF THE DAY. AKIKO AND RACHELLE HAVE YOU FOR THE NEXT HOUR. HAVE A GREAT WEEKEND. >>> WELCOME TO "YAHOO! FINANCE." IT'S 11:00 A.M. ON THE EAST COAST, 8:00 ON THE WEST. I'M ROCHELLE OCUKO. PARAMOUNT PREPS TO AIR SUPER BOWL LVIII LIVE FROM LAS VEGAS. THEIR CHIEF EXECUTIVE OFFICER WILL JOIN US LATER TO DISCUSS. >>> AND DRAFTKINGS ALSO GEARING UP FOR THE SUPER BOWL AS MILLIONS OF AMERICANS PLAN TO PLACE THEIR BETS ON THE BIG GAME. FOR MORE ON HOW THE SPORTS BETTING GIANT IS GEARING UP, WE'RE GOING TO SPEAK WITH DRAFTKINGS COFOUNDER AND CEO JASON ROBINS AHEAD. p>>> AND AS CLOSE, A STREAM OF WELL RECEIVED QUARTERLY EARNINGS HELPED TO BOOST STOCKS. >>> FIRST, LET'S TAKE A LOOK AT WHERE MARKETS ARE TRADING ON THIS FRIDAY. A BIT OF A SPLIT PICTURE HERE EMERGING, ALTHOUGH WE ARE SEEING THE DOW, THE ONLY ONE IN THE RED. DOWN ABOUT 87 POINTS HERE. THE S&P 500 OF COURSE CROSSING THAT 5,000 MILESTONE YESTERDAY, HOLDING ABOVE THAT NOW, UP ABOUT 14 POINTS, AND THE NASDAQ UP 136 WITH TECH SEEING SOME OF THE BIGGEST GAINS ON THE DAY. LET'S TAKE A LOOK AT WHERE TREASURY MARKETS ARE TRADING. WE DID GET SOME ENCOURAGING INFLATION NEWS THIS MORNING WITH REVISIONS TO DECEMBER'S CPI POINTING TO INFLATION COMING IN LOWER THAN EXPECTED OR AT LEAST INITIALLY REPORTED WE SHOULD SAY. TREASURY YIELDS THERE, THE 30-YEAR YIELD COMING DOWN SLIGHTLY, THE TEN-YEAR YIELD AT 4.18%. >> WE'RE WATCHING THE CHIP SPACE THIS MORNING. A NUMBER OF HEADLINES COMING THROUGH. THE WHITE HOUSE COMMITTING $5 BILLION TO FUND RESEARCH AND DEVELOPMENT OF ADVANCED CHIPS. THAT NEWS CAME ON THE HEELS OF A "WALL STREET JOURNAL" REPORT THAT OPEN AI SAM ALTMAN IS LOOKING TO RAISE TRILLIONS OF DOLLARS TO BOOST CAPACITY OF CHIPS FOR ARTIFICIAL INTELLIGENCE. AND WE'LL START ON THE WHITE HOUSE NEWS BECAUSE THIS IS ABOUT THE ADDITIONAL FUNDING COMING THROUGH FROM THE CHIPS ACT, WHICH WAS OF COURSE PASSED BACK IN 2022, BUT WHAT WE'RE LOOKING AT HERE IS REALLY THE U.S. ON THE ONE HAND FOCUSING ON BOOSTING MANUFACTURING OF CHIPS BUT ALSO SORT OF REALIZING THAT THE MARKET ISN'T EXACTLY THERE RIGHT NOW. SO PART OF THAT, THE MONEY WE JUST POINTED TO, THE FUNDING COME ATHROUGH OR BEING ANNOUNCED TODAY BEING PUT TO TRAIN THE WORK FORCE AS WELL. WE HAVE HEARD FROM THE LIKES OF TSMC, WHO IS BUILDING OUT THAT FAB IN ARIZONA SAYING THEY DON'T HAVE THE WORKFORCE IN PLACE. WHEN YOU THINK ABOUT WHERE THINGS ARE GLOBALLY, JUST 10% OF CHIPS PRODUCED IN THE U.S., MANUFACTURED IN THE U.S. THE REST OF THAT LARGELY PRODUCED IN TAIWAN. SO THE U.S. REALLY TRYING TO GET THE MARKET TO WHERE IT NEEDS TO BE TO BE ABLE TO BOOST OUTPUT. AND THIS IS JUST THE VERY LATEST IN THE WHITE HOUSE EFFORT TO DO THAT. >> IT'S TRUE. AND OBVIOUSLY, WHEN YOU THINK ABOUT THE TIMELINE FOR WHEN THIS IS GOING TO HAPPEN, THERE'S A LOT OF ENTHUSIASM ABOUT THIS CHIPS BUT YOU NEED THE SEMI-CONDUCTOR ENGINEERS TO BE ABLE TO DO THAT. YOU NEED TO BE ABLE TO HAVE PEOPLE WILLING TO LEAVE THEIR JOBS AND START SOMETHING NEW HERE. IT'S ALSO ONE OF THE THINGS THEY MENTIONED IS HAVING A LOW-COST WAY FOR INNOVATORS TO REPLICATE AND EXPERIMENT WITH SOME OF THESE PHYSICAL MANUFACTURING PROCESSES BECAUSE OBVIOUSLY, R&D VERY EXPENSIVE, BUT IF YOU HAVE A WAY TO TRIAL AND ERROR IT IN A CONTAINED ENVIRONMENT THAT DOESN'T COST YOU MILLIONS OF DOLLARS THAT'S ALSO AN ENTHUSIASTIC RESPONSE. AS WE LOOK AT WHAT SAM ALTMAN IS DOING, HE'S PUSHING AHEAD. HE'S TALKED ABOUT THE LIMITED CAPACITY TO PRODUCE THE ADVANCED CHIPS NEEDED TO HELP WITH OPENAI'S GROWTH. THE "WALL STREET JOURNAL" REPORTING HE'S LOOKING TO RAISE AS MUCH AS $5 TO $7 TRILLION IN FUND-RAISING FOR A GLOBAL CHIP MAKING CAPACITY. THAT IS INCLUDING SOME INVESTORS FROM THE UNITED ARAB EMIRATES. IT'S INTERESTING WHEN YOU THINK OF THE SCALE OF THAT, WHERE CURRENTLY GLOBAL SCALE OF CHIPS ARE, $527 TRILLION LAST YEAR, EXPECTED TO BE AT $1 TRILLION ANNUALLY BY THE YEAR 2030. WHEN YOU THINK OF THAT NUMBER, IT'S PRETTY MIND-BOGGLING. >>> WELL -- >> WHEN YOU THINK ABOUT THE CAPACITY -- >> GO AHEAD. >> I WAS GOING TO SAY, WHEN YOU THINK ABOUT THE CAPACITY ISSUES, I MEAN, YOU LOOK AT -- YOU'RE TALKING SPECIFICALLY ABOUT ADVANCED CHIPS, AI CHIPS. NVIDIA IS REALLY, YOU KNOW, ALONG WITH AMD AS WELL, BUT REALLY SORT OF THERE DRIVER IN HERE. BUT AS WE HAVE SAID BEFORE, THERE'S ONLY SO MUCH WHEN YOU THINK ABOUT WHERE THE POTEXAL OF AI IS, THE RATE OF GROWTH THAT SO MANY ANALYSTS HAVE PREDICTED, YOU HAVE TO HAVE MUCH MORE THAN THAT. INTERESTING TO ME TO HEAR ABOUT THE JOURNAL REPORTING THAT OPENAI IS HAVING THOSE CONVERSATIONS WITH THE UAE. YOU KNOW, AT THE END OF THE DAY, IT FEELS A BIT LIKE A LAND GRAB RIGHT NOW IN TRYING TO REALLY GET THOSE DOLLARS THROUGH IN ANTICIPATION OF WHAT THAT AI PIPELINE LOOKS LIKE. >> INDEED. A LOT OF JOCKEYING FOR POSITION THERE TO BE THE LEADER IN THIS SPACE. >>> WELL, A RISING TIDE IS MEANT TO LIFT ALL BOATS BUT THAT DOESN'T SEEM TRUE FOR THE ADVERTISING MARKET. INDUSTRY GIANTS SEEM TO BE REAPING THE BENEFITS OF AN AD RECOVERY. MEANWHILE, SNAP AND PINTEREST SAW THEIR STOCKS UNDER PRESSURE AFTER THEY LATEST EARNINGS REPORTS POINTED TO SLOWER SALES. HERE'S TO BREAK DOWN THE KEY DIFFERENCES IS OUR VERY OWN DAN HOWLEY. HEY, DAN. >> YEAH, I THINK THE BIG TAKEAWAY HERE IS THAT THE BIG GUYS ARE GETTING BIGGER AND THE LITTLE GUYS ARE KIND OF STRUGGLING TO KEEP UP WITH EXPECTATIONS. IF YOU LOOK BACK AT ALPHABET, WHICH BY THE WAY, DID MISS ON EXPECTATIONS FOR ITS AD REVENUE DESPITE VERY GOOD STRONG GROWTH AND PERFORMANCE OVERALL. IT DID TAKE A HIT AS A RESULT OF THAT. BUT IF YOU LOOK AT META, BLEW AWAY EXPECTATIONS. IT ALSO DIDN'T HURT THEY HAVE THAT DIVIDEND AS WELL AS THE BUYBACK BOOST THEY HAD FOR $50 BILLION AND AMAZON, WHICH HAS AN AD UNIT THAT REALLY HAS CONTINUED TO GROW AND BE A FORMIDABLE FORCE IN THAT SPACE. THEN YOU TAKE A LOOK AT WHAT SNAP AND PINTEREST DID, TO YOU KNOW, BIG COMPANIES, BUT RELATIVELY SMALL POTATOES COMPARED TO THOSE OTHER THREE. THEY'RE JUST NOT REALLY HITTING WHAT ANALYSTS ARE HOPING FOR. NOW, THEY DID BEAT PINTEREST DID BEAT ON REVENUE BUT MISSED ON EARNINGS. SO I THINK -- EXCUSE ME, MISSED ON REVENUE AND BEAT ON EARNINGS. I THINK THAT'S SOMETHING THAT, YOU KNOW, THEY'RE LOOKING TO THE KIND OF AMAZON DEAL AND THE GOOGLE DEAL TO REALLY BOOST THEM AND THEIR ABILITY TO GET ADS OUT. THEY SAID DURING THEIR EARNINGS CALL THAT THE MONETIZATION FOR THE GLOBAL MARKET WHERE THE VAST MAJORITY OF THEIR USERS ARE JUST ISN'T REALLY WHERE THEY WANT IT TO BE. THE IDEA IS FOR THIS GOOGLE DEAL AND THE EXISTING AMAZON DEAL TO KEEP OF HELP WITH THAT. AS FAR AS SNAP GOES THEY'RE CONTINUING TO DEAL WITH ISSUES AS WELL. THEY HAD THEIR FAILED EFFORTS WITH THE DRONE THAT THEY HAD. THEY RECALLED THAT. THAT'S NO LONGER FOR SALE. AND THEN WHILE THEY'RE GROWING USERS, THEY JUST MISSED ON REVENUE EXPECTATIONS FOR AN OUTLOOK FOR THE QUARTER. SO I THINK THE THING THAT YOU HAVE TO LOOK AT FOR THOSE SMALLER COMPANIES IS MAYBE WALL STREET IS JUST EXPECTING TOO MUCH OUT OF THEM WHEN THEY SEE WHAT OTHER COMPANIES, THE LARGER COMPANIES ARE DOING. I THINK IT'S ALSO WORTH POINTING OUT, WHEN THE DOWNTURN IN THE AD MARKET HAPPENED, THE BIGGER GUYS HAD A LEG UP. THERE WAS KIND OF THE DUAL PROBLEM OF HIGHER INTEREST RATES AS WELL AS APPLE'S APP TRACKING TRANSPARENCY. I BROUGHT THAT UP SEVERAL TIMES. IT'S KNEECAPPED META AT THE TIME IN PARTICULAR.pSINCE THEN, THEY TO RECONFIGURE THEIR ADVERTISING MOVES AND HAVE OVERCOME BOTH OF THOSE ISSUES. NOW, SNAP ALSO AT THE TIME HAD POINTED OUT THAT WAS A PROBLEM. SEEMS LIKE IT MIGHT NOT BE AS MUCH ANYMORE. BUT OVERALL, THEY JUST DON'T SEEM TO BE ABLE TO MEET WHAT WALL STREET EXPECTS OF THEM FOR THEIR AD MARKET. >> YEAH, DAN, IT FEELS WRONG TO QUAL A COMPANY THAT HAS AN $18 BILLION MARKET CAP A SMALL COMPANY, LIKE SNAP, BUT IT FEELS LIKE WE ARE SEEING THAT DIVERGENT IF WE'RE TALKING STRICTLY ON ADS. SORT OF THE BIGGER COMPANIES THAT HAVE SCALE LIKE A META GETTING EVEN MORE LUCRATIVE, GETTING BIGGER AND BIGGER. AND SOME OF THE OTHER COMPANIES BEING LEFT BEHIND. IS THAT WHERE THIS TRAJECTORY IS GOING? >> IT LOOKS THAT WAY. I THINK, YOU KNOW, OBVIOUSLY, THINGS COULD CHANGE UP, YOU KNOW, IF INTEREST RATES START FALLING FURTHER. OBVIOUSLY, THAT'S NOT EXPECTED IN THE NEAR TERM. BUT IT COULD IMPROVE THE AD MARKET OVERALL, AND PERHAPS WE WILL SEE KIND OF A COMING TOGETHER OF THE AD MARKET AGAIN WHERE IT'S EVERYBODY DOING INCREDIBLY WELL, BUT I THINK IMAGINE YOU'RE A SMALL COMPANY. YOU'RE LOOKING TO ADVERTISE ON A PLATFORM. ARE YOU GOING TO GO FOR THE BEST BANG FOR YOUR BUCK, WHICH IS USUALLY META OR GOOGLE, OR ARE YOU GOING TO GO TO A PINTEREST OR SNAP? I GUESS IT DEPENDS ON WHAT YOU'RE SELLING, BUT GENERALLY, I MEAN, I WOULD THINK THAT MOST PEOPLE WOULD GO FOR A LARGER PLATFORM LIKE A META. >> ALL RIGHT, WE'LL CONTINUE TO WATCH THAT STORY PLAY OUT. CERTAINLY BEEN AN INTERESTING EARNINGS SEASON SO FAR FOR SOME OF THOSE NAMES. DAN HOWLEY, THANKS SO MUCH FOR THAT. >>> WELL, TIME NOW FOR TODAY'S TRENDING TICKERS. WE HAVE OUR EYES ON SPORTS BETTING STOCKS, ALL MOVING HIGHER AHEAD OF THIS BIG BETTING WEEKEND WITH THE SUPER BOWL ON SUNDAY. WE HER FROM FANDUEL'S CEO EARLIER ABOUT HER EXPECTATIONS FOR THE WEEKEND. TAKE A LISTEN. >> THERE'S NO DOUBT WE'RE GOING TO SET SOME RECORDS THIS YEAR. EVERY SUPER BOWL IS A RECORD FOR US. WE'RE HEADING INTO IT WITH PHENOMENAL MOMENTUM. WE JUST CAME OFF THE NFC CHAMPIONSHIP WHICH WAS THE SINGLE BIGGEST DAY WE HAD. AT OUR PEAK, WE HAD 60,000 BETS PER MINUTE. >> SO ROCHELLE, 68 MILLION AMERICANS EXPECTED TO BET A RECORD $23 BILLION. THAT'S THE NUMBER WE'RE LOOKING AT. AND WE HAVE BEEN TALKING ABOUT COMPANIES LIKE FANDUEL AND OF COURSE DRAFTKINGS WHICH WE'LL TALK ABOUT LATER. YOU KNOW, ALSO THE BIG PLAYERS IN VEGAS, WHETHER THAT'S MGM, THEY TAND TO WIN IN A BIG WAY AS A RESULT OF VEGAS HOSTING THE SUPER BOWL. AND AGAIN, WORTH NOTING THAT, YOU KNOW, TEN YEARS AGO, MAYBE A LITTLE MORE THAN THAT, THESE LEAGUES WERE SAYING WE DON'T WANT ANYTHING TO DO WITH VEGAS. NOW THEY HAVE GONE ALL IN WITH SO MANY STATES LEGALIZING SPORTS BETTING. >> IT'S TRUE. "THE WASHINGTON POST" CALLED IT THE ULTIMATE VEGAS WEDDING WHEN YOU HAVE THE SUPER BOWL AND SPORTS BETTING IN VEGAS. IT MAKES ABSOLUTE SENSE. OF COURSE, IRONICALLY, YOU WERE TALKING ABOUT SOME OF THE STATES WHERE SPORTS BETTING ARE LEGAL. IF YOU'RE IN CALIFORNIA, YOU'RE A NINERS FAN OR A CHIEFS FAN, YOU CAN'T BET IN THOSE STATES. IT IS STILL ILLEGAL IN THOSE STATES. I KNOW CALIFORNIA IS THAT BIG ONE THAT A LOT OF SPORTS BETTING COMPANIES HAVE BEEN TRYING TO GET ON THE BALLOT HERE. IT HASN'T GOTTEN MUCH MORE MOMENTUM. AND IT'S NOT JUST SPORTS BETTING, IT'S THE ENTIRE HOSPITALITY ECOSYSTEM THAT GETS TO BENEFIT FROM THIS AS WELL. >> YEAH, AND WORTH NOTING THAT IN JUST A BIT WE'LL BE SPEAKING WITH JASON ROBINS, DRAFTKINGS' COFOUNDER AND CEO. INTERESTING TO SEE WHAT NUMBERS HE IS ANTICIPATING GOING INTO THE BIG GAME COME SUNDAY. >> INDEED. >>> COMING UP, WE WILL HAVE MORE SPORTS BETTING TALK FOR YOU, THEY'RE SPEAKING WITH JASON ROBINS, DRAFTKINGS COFOUNDER AND CEO. FIRST, HOW CAN YOUNG INVESTORS FEEL MORE SECURE IN THEIR FINANCES? WE'LL DIVE INTO THAT ON THE OTHER SIDE OF THIS BREAK. >>> WELL, THE NEW CHAIRMAN OF NEW YORK COMMUNITY BANK CORP HAS BOUGHT UP MORE THAN TH$200,000 THE COMPANY'S STOCK, AFTER THE BANK REPORTED A SURPRISE QUARTERLY LOSS ON THE BACK OF THOSE LOANS AND COMMERCIAL REAL ESTATE. AROUND 25% OVER THE LAST. THE SHARES ARE DOWN ABOUT 25% OVER THE LAST FIVE TRADING DAYS. LET'S BRING IN DAVID TO TELL US MORE. DAVID, WHAT'S THE VERY LATEST? >> YEAH, SO THE NEW CHAIRMAN IS TRYING TO -- HE'S PURCHASING MORE STOCK. AND HE IS OF COURSE THE PREVIOUS CEO OF FLAGSTAR, WHICH NYCB ACQUIRED IN LATE 2022. AND HE SAID ON AN INVESTOR CALL EARLIER THIS WEEK THAT, YOU KNOW, THEIR MAIN PRIORITY RIGHT NOW IS TO SHORE UP CONFIDENCE WITH THE STREET. AND THAT MAKES A LOT OF SENSE BECAUSE THEY'RE IN A TOUGH POSITION. A LOT OF THEIR LOAN EXPOSURE IS IN COMMERCIAL REAL ESTATE. PARTICULARLY IN MULTIFAMILY, WHICH WE DON'T HEAR ABOUT QUITE AS MUCH. IT'S SPECIFICALLY IN MULTIFAMILY IN NEW YORK CITY, RENT CONTROLLED APARTMENT COMPLEXES. OR LOANS TIED TO THOSE PROPERTIES. AND SO THAT'S BEEN DIFFICULT GIVEN A 2019 LAW WHICH HAS EFFECTIVELY CAPPED THE PACE AT WHICH LANDLORDS CAN HIKE THE RATES OF THOSE APARTMENTS. NOW, THAT WAS A LONG TIME AGO, BUT YOU KNOW, GIVEN THE COMBINATION OF INTEREST RATES, LANDLORDS ARE LOSING THEIR INCEPTIVES ESSENTIALLY TO RENOVATE THESE PROPERTIES. THEY'RE BECOMING MORE AND MORE VACANT AND THEY'RE ALSO DETERIORATING IN VALUE A LITTLE FASTER THAN WOULD BE EXPECTED. SIGNATURE BANK ALSO HAD A HIGH EXPOSURE TO THESE PROPERTIES. AND JUST TO GO BACK A LITTLE BIT FURTHER, NYCB SORT OF MADE A NICHE FOR ITSELF CATERING TO THESE LANDLORDS WHO ALSO TYPICALLY ARE LARGE DEPOSITORS OR SERVE A LARGE PART OF THEIR DEPOSIT BASE. SO THAT'S KIND OF THE DYNAMIC. WHAT WE'RE SEEING NOW IS THAT THERE'S NO EASY FIX TO THIS. BUT THAT BEING SAID, DANILO IS KNOWN FOR HAVING TURNED AROUND FLAGSTAR AFTER HE STARTED AS CEO IN 2013. SO HE'S REALLY GOING TO COME IN HERE AND HE'S GOING TO DO EVERYTHING HE CAN, WHICH I THINK THAT HAS BEEN THE CASE SO FAR, TO SHOW THAT THE BANK HAS A PLAN MOVING FORWARD. ONE THING BLOOMBERG HAS ACTUALLY REPORTED EARLIER THIS WEEK WAS THAT THEY MAY CONSIDER DOING SOMETHING KNOWN AS A CREDIT RISK TRANSFER WHERE THEY ESSENTIALLY TRY TO IMPROVE THEIR CAPITAL STANDING BY TAKING OFF BETTER ASSETS ON THEIR BOOK, BUT AGAIN, THEY CAN'T SELL THEIR MULTIFAMILY RENT REGULATED LOANS ANYTIME SOON, GIVEN THEY WOULD PROBABLY FETCH A PRETTY HEFTY DISCOUNT. >> SO DAVID, WITH THAT IN MIND, HOW MUCH SHOULD INVESTORS READ INTO THIS AS A STORY OF WIDER BANK TROUBLES WITH COMMERCIAL REAL ESTATE, ESPECIALLY AS THE EMERGENCY LENDING PROGRAM THE FED PUT IN PLACE AFTER THE LAST REGIONAL BANKING CRISIS SET TO EXPIRE MARCH 11th. >> RIGHT NOW, IT IS REALLY AN ONGOING DEBATE ABOUT HOW UNIQUE NYCB'S SITUATION IS. OBVIOUSLY, I THINK IT'S SAFE TO SAY THEY HAVE THE HIGHEST EXPOSURE TO LOANS TIED TO PROPERTIES IN NEW YORK CITY THAT ARE RENT REGULATED AND SORT OF FACING THIS DEVALUATION ISSUE. THAT BEING SAID, OFFICES OBVIOUSLY HAVE BEEN A TOPIC FOR MOST OF THE PAST YEAR IN TERMS OF THAT KIND OF EXPOSURE FOR REGIONAL BANKS. SMALLER BANKS OBVIOUSLY HAVE A LOT MORE EXPOSURE COMPARED TO THEIR CAPITAL STANDINGS AS OPPOSED TO LARGER BANKS OR THE BIGGEST BANKS, FOR EXAMPLE, REALLY DON'T HAVE THIS PROBLEM. BUT YOU KNOW, WE ARE SEEING HIGHER RATES OF DEFAULT IN OFFICE BUILDINGS IN DOWNTOWNS ACROSS THE COUNTRY, SO WHEN WE TALK ABOUT COMMERCIAL REAL ESTATE, IT'S OBVIOUSLY VERY NUANCED. THERE'S A LOT OF DIFFERENT PARTS OF THAT BOOK. AND MULTIFAMILY GENERALLY, IT'S LOOKING A LOT HEALTHIER THAN WHAT WE'RE SEEING IN THIS PARTICULAR SITUATION, BUT THE OFFICE SITUATION IS OBVIOUSLY GOING TO BE HIGHER OF AN ISSUE FOR THESE REGIONAL BANKS. SO GENERALLY, WHAT EVERYONE IS DOING RIGHT NOW IS THEY'RE LOOKING AT INTEREST RATES AND KIND OF DEBATING ABOUT HOW LONG BANKS CAN HOLD ON AND WORK OUT THESE LOANS THAT ARE POTENTIALLY LOST VALUE WITH THEIR CUSTOMERS. >> CERTAINLY CONTINUING TO SEE REGIONAL BANK STOCKS UNDER PRESSURE THIS MORNING. APPRECIATE YOU BREAKING IT DOWN FOR US. >>> WELL, A RECENT SURVEY FINDS 13% OF AMERICANS ARE UNSURE HOW THEY WILL FUND THEIR RETIREMENT, ACCORDING TO THE TIAA INSTITUTE. THERE ARE STEPS YOUNGER INVESTORS CAN TAKE TO SHORE UP THEIR FINANCIA SECURITY AND HAVE A BETTER RELATIONSHIP WITH MONEY. LET'S BRING IN ABBEY, LENNOX ADVISER SENIOR VICE PRESIDENT TO DISCUSS MORE. THANK YOU FOR JOININ US. SO FOR A LOT OF PEOPLE, THEY THINK ABOUT RETIREMENT. IT'S FAR AWAY, NOT A THOUGHT AT THE MOMENT. HOW SHOULD YOUNGER INVESTORS WHEN THEY'RE PLANNING FOR RETIREMENT, HOW SHOULD THEY VIEW THIS PERIOD, ESPECIALLY AS WE'RE STILL IN HIGH INFLATION? >> I'M SO GLAD YOU ASKED THAT QUESTION. I THINK THE RELATIONSHIP WITH MONEY IS A VERY IMPORTANT CONVERSATION TO HAVE. SOME PEOPLE HAVE MONEY, BUT THEY MAY NOT BE ABLE TO HANDLE THE MONEY. AND I BELIEVE AT AN EARLY AGE, IT'S IMPORTANT TO DISCUSS THIS, BE COMFORTABLE WITH IT, CONFIDENT, AND NOT MAKE THAT MONEY CONVERSATION TABOO. IT'S AS IMPORTANT AS DISCUSSING FUTURE FAMILY. SO AS WE KNOW, MONEY CAN'T BUY LOVE, BUT IT CAN CERTAINLY TEAR IT APART IF YOU AREN'T COMFORTABLE SPEAKING ABOUT IT. AND WITH THE CURRENT MARKET LANDSCAPE, IT'S JUST AN EXAMPLE OF SYSTEMATIC RISK, WHICH WILL ALWAYS BE THERE. IT WILL ALWAYS BE SUBJECT TO IT, NO MATTER WHAT PHASE OF LIFE YOU'RE IN. INFLATION, INTEREST RATES, MARKETS, EXCHANGE RATE RISK. AND AT LENNOX, WE TALK TO OUR CLIENTS ABOUT IT, NOT NECESSARILY BEING ABOUT ASSET ALLOCATION SO MUCH AS IT IS ABOUT ASSET LOCATION. WE TALK ABOUT INVESTING IN THREE BUCKETS. TAXABLE STOCKS, BONDS, FUNDS, ETFs, ET CETERA. TAX DEFERS. YOUR COMPANY 401(k) AND MATCHING CAPABILITIES. IRAs, AND THEN THE TAX-FREE BUCKET, ROTH IRAs AND WHOLE LIFE INSURANCE. I THINK UNDERSTANDING THOSE THREE BUCKETS WHILE HAVING NEW MONEY TO CONTRIUTE TO EACH AND HAVING A PROFESSIONAL ADVISER TO HELP RECALIBRATE AND PIVOT WHEN NEEDED IS VERY IMPORTANT. >> AND AS WITH OTHER INVESTORS WHEN WE SEE SOME OF THESE WILD SWINGS IN THE MARKETS, A TECH RALLY TO END OUT THE YEAR AND NOW UNCERTAINTY DEPENDING ON WHAT THE FED DOES NEXT, WHAT ARE SOME MISTAKES YOU SEE YOUNGER INVESTORS MAKING? >> YEAH, I CAN'T STRESS ENOUGH THAT INFLATION IS TRULY ONE OF THOSE SYSTEMATIC RISKS THAT YOU CAN'T DIVERSIFY AWAY FROM. BUT WHAT YOU CAN MAKE SURE YOU UNDERSTAND IS YOUR BUDGET. YOUR INFLOWS AND OUTFLOWS AND NOT LET LIFESTYLE CREEP OVERCOME THAT. THERE ARE SMALL THINGS THAT YOU CAN DO TO SAVE MONEY. MEAL PREPPING IS A VERY SMALL EXAMPLE OF BEING MINDFUL OF HOW MUCH IT IS TO BUY LUNCH INSTEAD. ANOTHER TIP IS TO TAKE ADVANTAGE OF THE AFFORDABLE CARE ACT. I DON'T KNOW IF PEOPLE KNOW THIS, BUT PARENTS CAN KEEP THEIR CHILDREN ON THEIR FAMILY HEALTH PLAN UNTIL THEY TURN 26. SO THEY DON'T NECESSARILY HAVE TO PICK UP THEIR CURRENT EMPLOYER'S PLAN, AND THEY CAN SAVE A TON OF MONEY THAT WAY. AND INSTEAD, DEPLOY THOSE DOLLARS INTO THEIR SAVINGS AND INVESTMENTS. >> AND AS YOU MENTIONED, TALKING ABOUT YOUR FINANCES, IT CAN BE A TOUGH CONVERSATION TO HAVE. IT CAN BE TOUGHER FOR PEOPLE TO FACE IT THEMSELVES. IF YOU'RE GETTING MARRIED OR THINKING OF PARTNERS WITH SOMEONE AND YOU'RE NOT SURE ABOUT THE DYNAMICS OF HOW MUCH DEBT OR WHAT THEIR SAVING APPROACH IS, WHAT ARE SOME OF THE TOP THREE THINGS YOU THINK PEOPLE SHOULD LAY ON THE TABLE AS THEY'RE THINKING ABOUT FINANCIAL HARMONY. >> I THINK BUILDING OUT GENERATIONAL WEALTH IS A PRIVILEGE THAT CAN BE DISCUSSED VERY EARLY ON. HAVING THOSE CONVERSATIONS AT THE DINNER TABLE TOGETHER HELPS CHILDREN UNDERSTAND THAT MONEY DOESN'T GROW ON TREES. IT'S ABOUT BUILDING WEALTH BUT ALSO RESPECTING HOW IT GOT THERE AND HOW TO HANDLE THE MONEY. IT'S ABOUT UNDERSTANDING THAT IT'S NOT AN ENTITLEMENT BUT IT'S A PRIVILEGE, AND LEARNING HOW TO RESPECT IT. >> JUST QUICKLY, WE SHOWED A GRAPHIC THERE ABOUT GEN Z HAVING A HIGHER RATE OF SEPARATE ACCOUNTS. IS THAT A TRUST ISSUE OR IS THAT SORT OF JUST THE DAYS OF HAVING JOINT ACCOUNTS, YOU KNOW, IF YOU WERE A BABY BOOMER, ARE JUST DONE? >> I DON'T KNOW. I THINK IT'S DIFFERENT. I LIKE THE FACT THAT WE CAN HAVE OUR OWN ACCOUNTS. I THINK IT'S A FORM OF EMPOWERMENT FOR PEOPLE. YOU CAN ALSO HAVE A JOINT ACCOUNT. I DON'T THINK THERE'S ANYTHING WRONG WITH THAT. I THINK ONE OF THE BIGGEST DANGERS THOUGH POSING YOUNG INVESTORS IS THIS LIFESTYLE CREEP. IT'S BIG. AND UNDERSTANDING THE BEST TIME TO SAVE IS WHEN YOU DON'T HAVE OTHER FISCAL RESPONSIBILITIES LIKE A HOME OR A FAMILY THAT YOU'RE GROWING. I THINK CREATING A BUDGET THAT IS SUSTAINABLE WITH THE INCOME THAT YOU'RE EARNING AND NOT OVERLEVERAGING DEBT, I MEAN, YOU COULD REALLY GET STUCK WITH REVOLVING DEBT, SO PAYING OFF CREDIT CARDS WHEN THEY COME DUE, THEY ALSO HELPS BUILD YOUR CREDIT AT THE SAME TIME. >> CERTAINLY IMPORTANT. EARLY STEPS PEOPLE CAN BE TAKING. APPRECIATE YOU JOINING US. LENNOX ADVISER SENIOR VICE PRESIDENT, THANK YOU SO MUCH. >> THANK YOU FOR HAVING ME. >>> ALL RIGHT, COMING UP, BETTING BIG ON SUPER BOWL LVIII. WE'LL HEAD TO LAS VEGAS TO SPEAK WITH DRAFTKINGS CEO JASON ROBINS NEXT. >>> WELL, THIS SUNDAY'S SUPER BOWL IS EXPECTED TO BE ONE FOR THE HISTORY BOOKS. WITH A RECORD 67.8 MILLION AMERICANS EXPECTED TO WAGER $23 BILLION, ACCORDING TO THE AMERICAN GAMING ASSOCIATION. AS THE GAME HEADS TO LAS VEGAS FOR THE FIRST TIME EVER. FOR MORE ON WHAT TO EXPECT, WE'RE JOINED BY DRAFTKINGS CEO JASON ROBINS. IT FEELS LIKE ARE THE FORCES HAVE ALIGNED FOR DRAFTKINGS GOING INTO THE SUPER BOWL. YOU'RE IN VEGAS, YOU HAVE THE SUPER BOWL. ALL THE FANS LOOKING TO BET HERE. TALK TO ME ABOUT THE WINDFALL YOU'RE LOOKING AT. HOW BIG ARE THE NUMBERS GOING INTO THIS WEEKEND? >> WE REPORT EARNINGS NEXT WEEK SO I CAN'T GET INTO NUMBERS BUT THIS IS THE BIGGEST WEEKEND OF THE YEAR FOR US. IT'S NOT JUST THE BIGGEST WEEKEND FROM A BETTING VOLUME STANDPOINT, IT'S ALSO WHEN WE AWIRE AND ACTIVATE THE MOST CUSTOMERS. YOU SHOWED THE HUGE NUMBER OF AMERICANS THAT ARE BETTING. MOST STILL BETTING IN THE ILLEGAL MARKET. STILL A TON OF ROOM TO GROW JUST BY TAPPING INTO PEOPLE WHO ARE ALREADY BETTING WITH MORE STATE LEGALIZATION, MORE ADOPTION OF LEGAL SPORTS BETTING. >> JASON, HOW MUCH ARE YOU SEEING OUTSIDE OF THE SUPPORTERS O THE TEAMS WHO ARE ALREADY SUPPORTING THIS GAME, FOR YOUR REGULAR NONFOOTBALL VIEWER, OF COURSE, BECAUSE OF TAYLOR SWIFT ALSO COMING IN TO WATCH THESE GAMES AND PERHAPS WANTING TO PLACE A FLUTTER THERE. HOW MUCH OF AN EXPANSION ARE YOU SEEING IN TERMS OF GETTING NEW AUDIENCES INTO SPORTS BETTING? >> ANECDOTALLY, WE'RE CERTAINLY HEARING IT. IT'S STILL EARLY. BELIEVE IT OR NOT, MOST OF THE ACTION COMES IN IN MORE OF THE SATURDAY, SUNDAY TIMEFRAME, SO I HAVEN'T ACTUALLY GOTTEN UPDATED STATS YET ON CUSTOMER ACQUISITION AND IF WE'RE SEEING NEW DEMOGRAPHICS, BUT ANECDOTALLY, YOU'RE HEARING MORE INTEREST FROM A WIDER VARIETY OF FANS. I DEFINITELY GIVE TAYLOR CREDIT FOR THAT. SHE BROUGHT NEW FANS TO THE GAME AND THE SUPER BOWL IS A PERFECT MOMENT WHERE ANYONE REALLY CAN BET BECAUSE YOU CAN BET ON THINGS LIKE THE COIN TOSS OR THE COLOR OF GATORADE DUMPED ON THE WINNING COACH AT THE END. AND ALL SORTS OF STUFF THAT EVEN IF YOU'RE NOT ACTUALLY A FAN OF THE SPORT, IT'S FUN STUFF TO BET ON ALONG WATCHING DIFFERENT ASPECTS OF THE GAME. SO I THINK IT'S A GREAT OPPORTUNITY TO NOT JUST BRING IN NEW FANS BECAUSE OF THE TAYLOR IMPACT WHICH IS OBVIOUSLY REAL, BUT ALSO BECAUSE OF THE FACT IT'S A SUPER BOWL AND IT'S SO MAINSTREAM SXANCHD WATCHES IT AND THERE'S ALL KINDS OF COOL STUFF YOU CAN BET ON. >> JASON, YOU MAY NOT BE ABLE TO REVEAL THE NUMBERS GOING INTO THIS WEEKEND, BUT I'M CURIOUS WHEN YOU LOOK AT PAST SUPER BOWLS, HOW CRITICAL THE EVENT IS FOR A COMPANY LIKE DRAFTKINGS IN GETTING NEW USERS, NEW PEOPLE ONBOARD. AND HOW STICKY IS IT? IS IT JUST ONE AND DONE FOR THE GAME OR DO OFTENTIMES THOSE USERS STICK AROUND? >> WELL, IT'S A GREAT QUESTION. SO DEFINITELY THE SUPER BOWL IS THE DAY THAT WE ACQUIRE THE MOST CUSTOMERS, ACTIVATE THE MOST CUSTOMERS, AND YOU KNOW, FROM THAT REASON ALONE, JUST CAST A WIDE NET. YOU'RE GOING TO GET MORE CASUAL PEOPLE IN THERE, SO YES, THERE ARE PEOPLE THAT JUST KIND OF COME FOR THE SUPER BOWL AND MAYBE THEY COME BACK FOR MARCH MADNESS OR SOMETHING LIKE THAT, BUT THEY'RE NOT REGULARLY BETTING ON NBA OR OTHER SPORTS. THEN THERE'S PEOPLE THAT HAVE BEEN BETTING ALL SEASON THAT THIS IS OUR CHANCE TO ACTIVATE THEM, MAYBE THEY WERE PLAYING WITH COMPETITORS. MAYBE THEY'RE DOING OTHER THINGS. ALSO, THERE'S PEOPLE THAT HAVE BEEN WITH US ALL YEAR AND IT'S JUST A GREAT OPPORTUNITY TO CONTINUE TO ENGAGE THEM AND GIVE THEM FUN STUFF TO BET ON AND HOPEFULLY GET THEM EXCITED ABOUT COMING BACK AND BETTING ON OTHER SPORTS OR AT LEAST COMING BACK FOR NEXT NFL SEASON. >> JASON, SPEAKING OF FUN THINGS TO BET ON, HAVE TO TALK ABOUT THE KICK OF DESTINY HERE. HOW MUCH IS RIDING ON THIS? FOR PEOPLE WHO AREN'T FAMILIAR, ROB GRONKOWSKI DOING THE KICK OF DESTINY. >> THAT'S NOT US, THAT'S OUR COMPETITOR, SO I'LL LET THEM TALK ABOUT THAT ONE. >> MY APOLOGIES. IN TERMS OF THINGS YOU CAN BET ON OUTSIDE OF THE GAME, KEEPING IN MIND FOR PEOPLE TRYING TO BET ON SOME OF THESE TAYLOR SWIFT OPTIONS, IS ACTUALLY ILLEGAL, THE AMERICAN GAMING ASSOCIATION SAYING THIS ISN'T SOMETHING YOU CAN ACTUALLY DO. FOR FANS WHO ARE SITTING AT HOME IN CALIFORNIA AND SAN FRANCISCO, WHAT CAN THEY DO TO GET IN ON THE ACTION? >> YOU KNOW, I THINK FOR PEOPLE WHO ARE IN CALIFORNIA, UNFORTUNATELY, THE ONLY OPTIONS THERE ARE ILLEGAL ONES. AND THE SPORTS BETTING WORLD. BUT WE DO HAVE OUR DAILY FANTASY SPORTS PRODUCT THERE. ANYONE INTO FANTASY SPORTS, IT'S A GREAT OPPORTUNITY. REALLY AN EASY GAME EVEN IF YOU HAVE NEVER PLAYED. YOU PICK SOME PLAYERS AND THOSE PLAYERS HAVE TO SCORE, AND OBVIOUSLY, IT'S A SKILL GAME, SO IT'S EASY TO FIGURE OUT HOW TO PLAY, HARD TO WIN. IT'S SOMETHING I THINK ANYONE WHO IS INTERESTED IN THE GAME SHOULD CHECK OUT IF YOU'RE IN A STATE LIKE CALIFORNIA WHERE YOU CAN'T BET LEGALLY ON THE SPORTS BOOK SIDE. >> FINALLY, JASON, I'M THINKING BACK TO WHEN THE SUPREME COURT DECISION CAME DOWN IN 2018, REALLY OPENING THE DOOR TO LEGALIZATION OF SPORTS BETTING IN SO MANY STATES. THERE WAS CONCERN AT LEAST IN LAS VEGAS ABOUT POTENTIAL FOR SO MANY OTHER STATES TO TAKE AWAY THAT BUSINESS. I WONDER WHEN YOU THINK ABOUT THE NATIONAL LANDSCAPE RIGHT NOW, HOW MUCH OF THIS IS STILL VERY MUCH CONCENTRATED IN A PLACE LIKE VEGAS, HOW MUCH OF IT IS WIDESPREAD? >> WELL, I THINK LAS VEGAS CONTINUES TO BE, YOU KNOW, A GREAT HUB FOR GAMING IN THE U.S. AND I THINK IT'S HISTORIC THAT THE SUPER BOWL IS HERE. IF YOU THINK ABOUT IT, YEARS, FIVE, TEN YEARS AGO, NO ONE WOULD HAVE GUESSED THIS WAS IN THE CARDS. I THINK IT'S A PRETTY BIG MOMENT, BUT THERE ARE A LOT OF OTHER STATES NOW THAT ARE EMBRACING GAMING. IT'S BECOME MUCH MORE OF A THING. ONLINE SPORTS BETTING, WE NOW OPERATE IN 24 STATES. TWO OTHER STATES FOR A TOTAL OF 26 WHERE WE HAVE RETAIL BETTING ONLY. AND THEN WE'RE ABOUT TO LAUNCH I HOPE NORTH CAROLINA IN THE COMING WEEKS. SO I DO THINK THAT IT'S GONE WELL BEYOND VEGAS, BUT VEGAS IS STILL, YOU KNOW, ALL YOU HAVE TO DO IS TAKE ONE WALK DOWN THE STRIP AND SEE THAT VEGAS IS STILL VERY MUCH A CENTRAL POINT OF GAMBLING IN THE UNITED STATES. >> EXCITING STUFF. WE'LL BE LOOKING FORWARD TO WATCHING ALL OF THAT. THANK YOU FOR JOINING US, JASON ROBINS, DRAFTKINGS CEO AND COFOUNDER. >> THANK YOU FOR HAVING ME. >>> ALL RIGHT, COMING UP, THE COUNTDOWN TO THE SUPER BOWL SUNDAY IS ON. "YAHOO! FINANCE" EXECUTIVE EDITOR BRIAN SOZZI WILL SPEAK WITH THE CEO AND PRESIDENT OF PARA PARAMOUNT GLOBAL ABOUT HOW THEY'RE PUTTING THEIR GAME FACE ON AND KEEPING THEIR EYE ON THE PRIZE. MORE ON THIS NEXT. >>> SUPER BOWL LVIII KICKS OFF THIS SUNDAY BETWEEN THE KANSAS CITY CHIEFS AND THE SAN FRANCISCO 49ers, WITH OF COURSE SOME TAYLOR SWIFT MIXED IN. WHAT LOOKS TO BE STRONG AD DEMAND COMES AT AN OPPORTUNE TIME FOR PARAMOUNT WHICH WILL BE SHOWING THE GAME ON ITS CBS NETWORK AND WITH A HOST OF NEW TECHNOLOGY FOR VIEWERS. SOME MAY INCLUDE THE FAMILIAR FACES REPORTEDLY INTERESTED IN PURCHASING ALL OR PART OF THE ICONIC MEDIA COMPANY. JOINING ME IS BOB BAKISH, PARAMOUNT GLOBAL PRESIDENT LIVE ON THE LAS VEGAS STRIP. ALWAYS NICE TO GET TIME WITH YOU. LOOKS LIKE A TOUGH ASSIGNMENT FOR YOU, BUT WE APPRECIATE YOUR TIME TODAY. TALK TO US ABOUT THE DEMAND FOR ADS FOR THE SUPER BOWL. ARE YOU AT RECORD-BREAKING LEVELS FOR THIS GAME? >> SO BRIAN, GREAT TO BE WITH YOU FROM VEGAS. APPROACHING THE BIGGEST WEEKEND OF THE YEAR WITH THE SUPER BOWL, AND THAT'S COMING OFF OUR HIGHEST RATED SEASON SINCE NFL CAME BACK TO CBS IN 1998. COMING OFF OF THE HIGHEST RATED DIVISIONAL PLAYOFF GAME IN HISTORY FOR THE NETWORK, AND TO YOUR QUESTION ON AD SALES, YES, WE HAVE ALREADY SET THE HIGH WATER MARK FOR A SUPER BOWL WITH RESPECT TO AD REVENUE, AND WE'RE LOOKING FORWARD TO POTENTIALLY SETTING THE RECORD FOR VIEWERSHIP AS WELL. SO REALLY EXCITING TO BE IN VEGAS. THE CITY IS ELECTRIC. AND IT'S GOING TO BE A GREAT WEEKEND. >> IT SOUNDS LIKE ELECTRIC. IT LOOKS LIKE THEY'RE STILL PUTTING STUFF TOGETHER BEHIND YOU WITH THAT CONSTRUCTION. THE GAME IS ONLY A COUPLE DAYS AWAY. WHEN YOU TALK TO ADVERTISERS, WHY DO YOU THINK THEY HAVE REALLY STEPPED UP HERE AND SPENT, WHAT, $7 MILLION FOR A 30-SECOND AD? WHY HAVE THEY OPENED UP THEIR POCKETBOOKS? > WELL, LOOK, THE NFL IS EXTRAORDINARY PRODUCT. IT REALLY CAPTURES THE AMERICAN FOR THAT MATTER GLOBAL VIEWER. PEOPLE LOVE THE SPORTSMANSHIP AND TRACK THEIR TEAMS, ET CETERA. IT'S A GREAT WAY, A GREAT ENVIRONMENT FOR MESSAGING FOR ADVERTISERS. WE SEE VERY STRONG DEMAND. BY THE WAY, WE'RE DOING THE FIRST EVER NICKELODEON ALTERNATE TELECAST OF A SUPER BOWL. THAT PRODUCT TOO IS SOLD OUT. THE AD BUSINESS AROUND SPORTS IS VERY STRONG. THE AD BUSINESS AROUND THE NFL IS PART OF SPORTS IS OBVIOUSLY THE TOP SIDE OF THAT. AND IT'S JUST A PRODUCT PEOPLE WANT TO BE PART OF BECAUSE VIEWERS WANT TO EXPERIENCE IT. >> WHEN I HEAR YOU SAY RECORD-BREAKING AD DEMAND FOR THE SUPER BOWL, I CAN'T HELP BUT THINK TAYLOR SWIFT HAS SOME ROLE IN THIS. HOW DO YOU VIEW IT? >> LOOK, TAYLOR IS A PHENOMENON AS WE ALL KNOW. SHE'S A FORCE IN THE MUSIC INDUSTRY. HER TOUR HAS BEEN MASSIVE. AND SHE'S CAPTURED THE IMAGINATION OF FANS INCLUDING NFL FANS AND IS DEFINITELY BRINGING SOME INCREMENTAL AUDIENCE TO THE GAME. AND WE'RE FORTUNATE THAT SHE'LL BE PART OF IT THIS WEEKEND AS WELL. YEAH, THAT'S A PLUS. >> PRETTY FASCINATING WEEK THIS WEEK, BOB. OF COURSE, YOU HAD THAT DISNEY WARNER BROTHERS AND FOX SPORTS BUNDLE. A LITTLE UNCLEAR HOW THAT WILL ULTIMATELY SHAKE OUT, WHAT IT IS AND WHAT IT WILL MEAN TO THE INDUSTRY, KNROUT LED THE CHARGE IN NEGOTIATING THE NEW 11-YEAR DEAL WITH THE NFL A COUPLE YEARS AGO. HOW DO YOU THINK THAT NEW ENTRY FROM SOME OF YOUR COMPETITORS IMPACTS THE VALUE OF YOUR DEAL? >> SO LOOK, THERE'S A LOT OF QUESTIONS ABOUT THE SPORTS CALL IT JOINT VENTURE ANNOUNCED THIS WEEK. HOWEVER, OUR FOCUS CONTINUES TO BE ON A BROAD OFFERING, PARTICULARLY IN DIGITAL. WE HAVE LOOKED AT SPORTS ONLY PLAYS ON A STAND-ALONE BASIS AND WITH PARTNERS, AND WE CONTINUE TO SEE THE SIGNIFICANT VALUE OF A BROADER PLAY. PARAMOUNT PLUS, NEWS, SPORTS, AND A MOUNTAIN OF ENTERTAINMENT. IF YOU LOOK AT IT, THE AVERAGE SPORTS VIEWER ON PARAMOUNT PLUS FULLY 90% OF THEIR ENGAGEMENT, IE, TIME SPENT, IS WITH NONSPORTS PROGRAMMING. SO SPORTS IS GREAT FOR BRINGING PEOPLE IN. AND CERTAINLY, OUR AUDIENCE ENGAGES WITH THAT, BUT KEY TO SATISFYING THE VIEWER AND BUILDING THE ECONOMIC MODEL, QUITE FRANKLY, IS BROADENING THAT BEYOND SPORTS. SO THAT IS THE STRATEGY WE HAVE HAD REALLY SINCE OUT OF THE GATE. THAT IS THE STRATEGY WE CONTINUE TO PURSUE BECAUSE IT IS CLEARLY WORKING FOR US. SO AGAIN, WE'LL SEE WHAT HAPPENS WITH THE SPORTS JOINT VENTURE, BUT WE LIKE PARAMOWN PLUS AS A BROAD SERVICE OFFERING WHERE SPORTS IS A PART OF IT, JUST LIKE IT IS ON CBS. >> IT DOESN'T SOUND -- IT DOESN'T SOUND LIKE YOU'RE FORCED TO RESPOND TO INITIATIVE LIKE THIS. >> WE'RE EXECUTING OUR STRATEGY. OUR STRATEGY IS WORKING. WE'RE VERY COMFORTABLE WITH THE DEVELOPMENT. BY THE WAY, IF YOU GO BACK TO OUR THIRD QUARTER CALL, WHERE WE TALKED ABOUT PARAMOUNT PLUS, PARAMOUNT CONTINUES TO GROW. AND ON THAT CALL, WE NOTED THAT WE NOW SEE 2022 AS OUR PEAK INVESTMENT YEAR IN STREAMING. VERSUS THE 2023, WE HAD GUIDED TOWARDS. I'M CHOOSING MY WORDS CAREFULLY BECAUSE WE HAVE OUR FOURTH QUARTER CALL IN ROUGHLY TWO WEEKS. AND WE'LL HAVE MORE TO SAY, BUT SUFFICE TO SAY, WE'RE VERY EXCITED ABOUT 2024. AND WE'RE CONTINUING TO BUILD PARAMOUNT PLUS INTO AN IMPORTANT BUSINESS FOR US. >> BOB, THE LAST TIME I TALKED TO YOU WAS AT THE GOLDMAN SACHS TECH CONFERENCE IN SUNNY CALIFORNIA. WE TALKED A LOT ABOUT THE HEADWINDS THAT THE LEGACY MEDIA IS FACING. AND SINCE THEN, IT WASN'T THAT LONG AGO, THESE HEADWINDS SEEM TO BE GETTING STRONGER. THE STREAMERS CONTINUE TO GET STRONGER. DO YOU FEEL AS THE INDUSTRY IS AT SOME FORT OF TIPPING POINT? >> LOOK, WE'RE DEALING WITH AN ECOSYSTEM AND WE'RE DEALING WITH CONSUMER CHANGE. BUT YOU GO BACK TO YOUR NFL. YOU TALK TO THE NFL, AND I BELIEVE BRIAN REMARKED ON THIS EARLIER THIS WEEK WHEN HE SPOKE IN VEGAS. BROADCAST IS KEY. BROADCAST PROVIDES YOU WIDE REACH. AND YOU SEE THE NUMBERS ON CBS THIS YEAR. AND I THINK ALL LEAGUES ARE LOOKING AT THE POWER OF BROADCAST AND WANTING TO BE PART OF THAT. BUT WE ALSO, YOU KNOW, WE DUAL LIMIT IT, BROADCAST AND THE FASTEST GROWING STREAMING SERVICE PARAMOUNT PLUS TO PROVIDE THAT CHOICE FOR CONSUMERS. AND THAT IS THE ROOT -- AND THAT IS SUCCESS IN TODAY'S MEDIA LANDSCAPE. FRANKLY, BOTH PARTS ARE IMPORTANT TO SERVING AUDIENCES. >> WHAT, OF COURSE, THERE'S BEEN A LOT OF SPECULATION ABOUT PARAMOUNT OVER THE PAST I WOULD SAY MONTH AND A HALF OR SO. NOTHING NEW TO YOU AS SOMEONE AROUND THIS INDUSTRY FOR A WHILE. WHAT'S YOUR BAR TO ENTERTAINING SOME OF THE DEALS OR DOING SOME FORM OF TRANSACTION? WHAT DO YOU NEED TO SEE? >> A COUPLE THINGS. ONE IS AS A MANAGEMENT TEAM AND MORE TO DIRECTORS, WE'RE FOCUSED ON SHAREHOLDER VALUE AND CREATING SHAREHOLDER VALUE. THE MOST PREDICTABLE ROUTE TO DOING THAT IS THROUGH EXECUTION AND THAT'S WHY WE'RE LASER FOCUSED ON EXECUTION, INCLUDING BY THE WAY, MAXIMIZING THE VALUE OF THIS WEEKEND HERE IN VEGAS AT THE SUPER BOWL FOR PARAMOUNT GLOBAL. YOU SEE US SHOWCASING A LOT OF OUR PRODUCTS. YOU SEE US INTRODUCING A NEW BRAND CAMPAIGN FOR PLUTO. YOU SEE US LAUNCHING THE FALL SLATE ON CBS, LAUNCHING HALO ON PARAMOUNT PLUS. WE'RE REALLY USING THIS AS A FUNDAMENTAL PART OF OUR EXECUTION. THAT SAID, IN PARALLEL, WE'RE ALWAYS LOOKING AT ALTERNATE WAYS OF CREATING SHAREHOLDER VALUE, INCLUDING POTENTIALLY THROUGH TRANSACTIONS. WE'LL HAVE TO SEE IF ANYTHING HAPPENS IN THAT REGARD. BUT OUR FOCUS IS ON SHAREHOLDER VALUE CREATION. >> JUST LASTLY, QUICK CLARIFICATION, HAVE YOU RSKED EXPRESSIONS OF INTEREST FROM PARTIES OR FIRM BIDS OR BOTH? >> I'M NOT GOING TO COMMENT ON THE SPECULATION THAT'S BEEN IN THE PRESS OTHER THAN TO SAY WE'RE FOCUSED ON SHAREHOLDER VALUE CREATION AND WE WILL LOOK AT ANY OPPORTUNITY THAT WE DEEM POTENTIALLY INTERESTING. >> DO YOU HAVE A PICK FOR THE BIG GAME? >> I DON'T. OTHER THAN TO SAY WE'RE VERY HAPPY WITH THIS TWO-TEAM CONFIGURATION FOR THE GAME. IT'S LOOKING LIKE IT WILL BE A CLOSE GAME. CERTAINLY THERE ARE FANS ON BOTH SIDES. I WAS REMARKING WITH ONE OF MY TEAM MEMBERS BEFORE WE CAME ON AIR, WE WERE DEBATING DID WE SEE MORE NINERS OR CHIEFS FANS OUT THERE. IT'S A LITTLE CONFUSING BECAUSE THERE'S RED INVOLVED WITH BOTH, BUT IT SHOULD BE A PHENOMENAL GAME. AND WE'RE PRIVILEGED TO HAVE IT AS PART OF PARAMOUNT GLOBAL. >> I'LL SHARE MY WINNER, BOB. I THINK IT'S GOING TO BE TAYLOR SWIFT. I THINK IT'S GOING TO BE A TAYLOR SWIFT BOWL. LAY IT OUT ON THE FIELD FOR YOU LITERALLY, BECAUSE I KNOW OUR TIME IS BRIEF. ALWAYS APPRECIATE YOUR TIME, BOB BAKISH. ENJOY YOUR TIME OUT THERE AND WE'LL CATCH UP SOON. >> I WOULD CLOSE IT DIFFERENTLY, THE BIG WINNERS ARE CBS, PARAMOUNT GLOBAL AND THE NFL. >> I'M NOT SURPRISED YOU WOULD SAY THAT. THANKS SO MUCH. ENJOY THE BIG GAME. >>> ALL RIGHT, TAKE CARE. HAVE A GOOD ONE. >>> MUCH MORE MARKETS ANALYSIS STRAIGHT AHEAD, MAYBE SOME ANALYSIS OF TAYLOR SWIFT'S IMPACT ON THE SUPER BOWL. I DON'T KNOW. IT'S FRIDAY. WE'LL BE RIGHT BACK. . >>> THELIEST JOBS REPORT SHOWS UNEMPLOYMENT AT 3.7%. WHAT DOES THIS MEAN FOR TAXES? TO BREAK IT DOWN, REBECCA CHEN IS JOINING US NOW. SO REBECCA, GIVE US THE LAY OF THE LAND HERE. >> HI. SO THIS IS A VERY -- ONE OF THE MOST COMMON QUESTIONS THAT ACCOUNTANTS GET IS HOW ARE EMPLOYMENT BENEFITS TAXED. AND THIS IS REALLY RELEVANT BECAUSE ABOUT TWO MILLION AMERICANS ACTUALLY GET A BENEFIT, AND THE AVERAGE WEEKLY PAYMENT IS NEARLY $400 A WEEK. SO THAT CAN REALLY ADD UP TO A BIG CHUNK OF AMOUNT. HOW IT WORKS, THE SHORT ANSWER IS UNFORTUNATELY, IT IS TAXED AT THE FEDERAL LEVEL. AND HOW IT WORKS IS NORMALLY, YOU GET SOMETHING CALLED A 1099G IN YOUR MAIL. AND YOU WILL GO TO BOX ONE AS YOU CAN SEE HERE, IT'S CALLED THE UNEMPLOYMENT COMPENSATION. WHATEVER AMOUNT IS IN BOX ONE, YOU FEED IT INTO YOUR TAX RETURN. AND THAT IS HOW THAT WILL BE TAXED. AND THE WAY THAT THE RATE WILL WORK FOR YOUR PERSONAL RETURN IS YOU HAVE TO ADD IT TO OTHER EARNED INCOME. AND THAT WILL DECIDE YOUR PERSONAL BRACKET. SO FOR EXAMPLE, LET'S SAY IF WE DO -- IF YOU WORK FOR TEN MONTHS AND YOU RECEIVE AN EMPLOYMENT CHECK. YOU COMBINE THOSE TOGETHER TO DECIDE WHAT RATE YOU'RE CHARGED FEDERALLY. >> REBECCA CHEN -- REBECCA CHEN THERE WITH A LOOK AT WHAT TO KEEP IN MIND HERE AS WE GET CLOSER TO THAT TAX DEADLINE. THANKS SO MUCH FOR THAT. >>> WELL, A SLEW OF EARNINGS ARE OUT NEXT WEEK. WE HAVE YOU COVERED ON WHAT TO WATCH FOR WHEN AIRBNB REPORTS EARNINGS NEXT WEEK. >> AIRBNB, A COMPANY THAT HAS BECOME SYNONYMOUS WITH TRAVEL AND LEISURE. ABNB IS NOW A VERB ON ITS OWN. THE LAST TIME THE BOOKING PLATFORM REPORTED A SOLID PERFORMANCE IT WAS OVERSHADOWED BY A LESS THAN ROSY OUTLOOK FOR THE FOURTH QUARTER. SO WHAT SHOULD YOU LOOK OUT FOR THIS QUARTER? HERE ARE THREE THINGS YOU NEED TO WATCH. NUMBER ONE, BOOKING GROWTH. LOOKING OUT FOR TWO KEY METRICS. FIRST, GROSS BOOKING VALUE. THAT'S THE TOTAL AMOUNT OF PAYMENTS PROCESSED ON THE PLATFORM. EVERYTHING FROM HOST PAYMENTS TO CLEANING FEES, BUT IT DOES NOT INCLUDE CANCELLATIONS. LAST QUARTER, GROSS BOOKING VALUE LANDED AT OVER $18 BILLION. A 17% GAIN FROM THE PRIOR YEAR. THEN, THERE'S NIGHTS AND EXPERIENCES BOOKED. THE PLATFORM REPORTED OVER 100 MILLION BOOKINGS FOR THE QUARTER, WHICH TOPPED WALL STREET ESTIMATES. NOW, AS WE TURN TO THE FOURTH QUARTER, THE REVENUE FIGURE WILL BE CLOSELY WATCHED AS THE COMPANY GUIDED A LITTLE BELOW EXPECTATIONS. NUMBER TWO, INTERNATIONAL EXPANSION. IN THE LAST QUARTER, AIRBNB SAID THEIR EXPANSION PLANS INTO INTERNATIONAL MARKETS IS GAINING MOMENTUM. KEEP AN EYE OUT ON WHAT IS CALLED UNDERPENETRATED MARKETS. THAT MEANS A MARKET WITH LITTLE COMPETITION FOR THE SAME SERVICE. ASIA PACIFIC IS ONE. BUT ALSO TAKE INTO ACCOUNT MARKETS LIKE GERMANY, BRAZIL, AND KOREA. BEYOND THAT, IT'S IMPORTANT TO HAVE A PULSE ON ANYTHING THE COMPANY HAS TO SAY ABOUT AI AND HOW IT COULD BE A GAME CHANGER FOR INTERNATIONAL GROWTH IN THE COMING MONTHS. LASTLY, REGULATION. ANOTHER KEY AREA TO WATCH. IN THE THIRD QUARTER, AIRBNB SLIGHTLY SAW HIGHER PRICES FOR SHORT TERM RENTALS. THIS AREA COULD BE HURT BY CHANGES IN THE REGULATORY LANDSCAPE. FOR EXAMPLE, NEW YORK CITY'S NEW LAW REQUIRES ALL SHORT-TERM RENTAL HOSTS TO REGISTER WITH THE CITY. THEY MUST SHOW WHEN THEIR GUESTS ARE STAYING AND ONLY TWO GUESTS CAN STAY AT A TIME. THIS APPLIES TO ALL OTHER PLATFORMS LIKE VRBO AND BOOKING.COM. THE BIG QUESTION HERE, WILL OTHER CITIES FOLLOW SUIT, AND WHAT COULD IT MEAN IN THE LONG TERM? THERE'S A LOT TO DIGEST AS WE LOOK AT AIRBNB'S FOURTH QUARTER EARNINGS AND "YAHOO! FINANCE" WILL BE TACKLING THE LATEST DEVELOPMENTS. >>> AND OF COURSE, AIRBNB ALWAYS A REALLY GOOD GUIDE WHEN YOU THINK ABOUT WHERE THE TRAVEL SPACE IS, BUT ALSO WHERE THE CONSUMER IS AND THAT PACKAGE WE WERE TALKING SPECIFICALLY ABOUT WHAT HAPPENED WITH AIRBNB IN THE PREVIOUS QUARTER. THEY HAD A REALLY GREAT QUARTER BUT REMEMBER THAT BIG STOCK REACTION ON THE BACK OF IT BECAUSE OF THE GUIDANCE COMING IN WEAKER THAN EXPECTED. THEY HAD GUIDED ON REVENUE BETWEEN $2.13 BILLION TO $2.17 BILLION. A BIG THING WE'LL BE WATCHING ON THAT FRONT AS WELL. YOU KNOW, WE SAW A NAME LIKE EXPEDIA TODAY TALK ABOUT SOFTNESS THEY HAVE BEEN SEEING IN THE TRAVEL SPACE. CERTAINLY GOING TO BE A BIG BELLWETHER AT LEAST IN TERMS OF WHAT WE'RE LOOKING FOR IN THE DIRECTION OF WHERE TRAVEL IS HEADED. >> IT'S TRUE. WE KNEW THERE WAS GOING TO BE THAT POST PANDEMIC BOOM, BUT THEN WE HAVE SEEN IT SORT OF START TO PULL BACK AS THE TRAVEL DEMAND STARTING TO WANE A BIT, BUT WE HAVE SEEN AIRBNB CONTINUING TO EXPAND ITS OFFERING, DIFFERENT SORTS OF EXPERIENCES AND SEEING IT ON THE INTERNATIONAL PLAIN WILL BE INTERESTING TO SEE, AND LAST MONTH, AIRBNB'S CEO SOLD ANOTHER 82,000 SHARES LAST MONTH AS WELL. SO IT WILL BE INTERESTING CITY THEIR PLANS NOT JUST TO STREAMLINE BUT ALSO HOW THEY PLAN TO FACTOR IN AI INTO THE GROWTH STORY AS WELL. PROBABLY LOOKING FOR SOMETHING MORE TANGIBLE, INVESTORS AND ANALYSTS, AS THEY LISTEN TO THAT CALL. >> YEAH, I MEAN, THAT'S SOMETHING BRIAN CHESKY HAS TALKED A LOT ABOUT. HE'S QUITE CLOSE TO OPENAI'S SAM ALTMAN, SO HE'S HEARD AT LEAST IN THE BACKGROUND ABOUT THE REAL POTENTIAL THERE. THE INITIAL THOUGHT BEING THIS COULD BE A REALLY BIG WAY FOR ESPECIALLY WHEN YOU THINK ABOUT AIRBNB BEING IN MORE THAN 200 COUNTRIES, A WAY TO STREAMLINE THE CUSTOMER SERVICE PART OF IT BECAUSE OF THE LANGUAGE BARRIER. THAT'S SOMETHING THEY HAVE TALKED ABOUT, BUT CERTAINLY, BRIAN CHESKY HAS HINTED AT MUCH MORE IN THE PIPELINE UTILIZING AI. WE'LL SEE IF THERE'S ANY ADDITIONAL HINTS COMING THROUGH ON THAT CALL. >> INDEED. BEFORE WE GO, LET'S GET YOUR FINAL CHECK OF THE MARKETS. LOOKING AT A MIXED PICTURE. THE DOW STILL UNDER PRESSURE THERE. THE S&P HOLDING STEADY ABOVE THAT 5,000 MARK, CURRENTLY UP ABOUT A THIRD OF A PERCENT. THE NASDAQ UP ALMOST 1% ON THE DAY, UP ABOUT 150 POINTS. TRACKING THE MARKET CAP OF NVIDIA AT 1.7 TRILLION, CLOSING IN ON AMAZON AT 1.8 TRILLION. WE'LL CONTINUE TO WATCH THAT AS WE WAIT FOR THEIR EARNINGS COMING OUT ON FEBRUARY 21st. ALL RIGHT, THANKS FOR WATCHING AND STAY WITH US ON "YAHOO! FINANCE."
