it is obviously off session lows we talked with mark mahaney at the top of the show, jon, and also going to a buy saying, look, a lot of this pull forward was expected we were simply waiting for the quarter that would make it evident. by the way, not a huge amount of tech earnings tonight. we will get chipotle, but tomorrow will be interesting working our way through at&t and, of course, intel tomorrow night. let's get to the judge and "the half." all right, carl. thanks welcome to "t"the halftime report." i'm scott "the washington post"ner what apple and amazon and netflix's under performance means to your money and whether stocks can continue to climb if they keep struggling joining me, jenny harrington amy raskin joe terranova and pete najarian rounding out the four today. let's go to the stocks today yields holding in on the ten year, 157. obviously a lot of focus today

on the tech trade, that after netflix earnings, that stock slide. pete, apple is flat on the year. amazon is barely up on the year. netflix is today's biggest loser in the s&p, the nasdaq 100, it is negative on the year. how much of a problem is that if the big-name tech stocks continue to struggle >> i don't know that -- yeah i don't know that that's a problem at all, scott. i mean quite frankly i think it is healthy for the markets it is not just the four or five names we bring up all the time and it seems like have been the leadership for so long i think it is great we are seeing some form of rotation that's actually sticking i mean just take a look at, for instance, the financials, how well they've been trading. you go all the way back to november, but year-to-date they're doing extremely well you look at the materials space, you look at some of the other names in the energy space, particularly the beta names in the energy space, but even the big names. i think it is very, very healthy we are seeing a market that's not so dependent it doesn't mean we don't want these names to participate i think we do. many of us own a lot of these various stocks, but i think the reality is that it is great to

see the markets don't have to depend on those four, five, six names we bring up all the time there is much more diversity out there. even the consumer discretionary, you look at a lot of different areas in the marketplace we have seen that performance that is being made up. let's not deny the fact a few days ago again we were setting record highs, right? so it does say a lot about what is going on i think underneath and it is not just a faang trade anymore. >> let me ask you this though, pete what happens if the other areas of the market that you just cited are overextended and these aren't performing at the same time isn't that a problem >> that would be a problem i don't know that i would say that the financials by any measure are overextended i think there's a lot in the energy space that's not overex peblded, especially when you consider the fact where is crude. it was 38 bucks in november and we were 63 a couple of days ago. we are still somewhere above 60.

so i think there is support out there, scott, for a lot of what the moves have been in a lot of the different areas, different sectors. we talk about semiconductors all of the time. many of those names trade at a fair value, but there are many obviously that are probably extended i think there's within some of these sectors we have individual names that certainly reflect what you are talking about, which is, hey, some of these are extended, they're overpriced i specifically would say that the high multiple names that had such a great run have certainly been an area that always makes me scratch my head and makes me a little bit scared because of the fact that they've run with absolutely nothing that can really, truly support it other than the potential into the future but outside of that, i think that there's a lot of different areas of the marketplace right now that still feel very comfortable for me to buy. >> let's be real though, jenny i mean it certainly makes it harder for the nasdaq to do well if apple and amazon and netflix can't pull their own weight. these were the ones that were driving the train.

now they're, you know, at risk of being the caboose don't go anywhere, camera. i'm here there we go. we're back jenny? >> and i think how wonderful is that i've been arguing for a long time we don't need them to continue to be the driver of the trail. it is okay if they take a turn being the caboose. i think the way pete phrased it is really well we are broadening the base, and that's creating a healthier market i was writing when he was speaking, but that diversity of leadership builds a stronger, more resilient market. that's what is happening now when we talk about over valuation, one of the things amy and i were talking about the call is how many pockets and little areas in the market there are that aren't over valued. you can look at many of the banks, and pete was mentioning this, too, and they're still trading at ten times earnings, twelve times earnings, eight times earnings there's plenty of energy stocks out there trading at a fraction of the market multiple as those grow from ten times

earnings to 12 times to 13 times, you are just building a stronger market that's good for everybody. it is okay a faang takes a break and is the caboose they have done their work over the past five years. give them a break. let them take a breather let them grow into the multiples. it is healthy and good for everybody. >> unless, joe, you are wondering where the next leg of the rally is going to come from, right? like i said before, the recovery story at this point is obviously well-known, and i don't know how much of it is already in the market but you have to believe a good portion of that is already in the market. so maybe those gains are a little muted going forward like i said before, if you have faang gains that are muted going forward, do you not have a problem? at some point apple and amazon need to start performing, don't they >> well, you're making the assumption that looking forward microsoft, alphabet, apple, they are going to begin to underperform because actually they're outperforming over the

last six weeks they are doubling the s&p 500 and it is about that rotation that pete is identifying earlier in the year we were gearing towards high cyclical, high beta, low quality type of equity names, and that's where the underperformance was occurring for the faangs now we are back to focusing on quality. i think the question becomes looking forward, it goes back to treasuries, scott, and it goes back to are you able to continue to have this rotation within the equity market. if you are not, if you begin to see in treasury yields decline even further, money is going to come out of equities and go back into fixed income. i think it is at that point that you are going to see this consolidation to a correction phase for the s&p 500 that over the last week or so people are beginning to talk about. >> okay. so that's not really -- i mean it is a good point you make, and it certainly feels like it matches what scott miner was saying on the network this

morning on worldwide exchange. you get some new york turn chop, you will get morbid into bonds because some of the money will be coming out of equities. amy, how do you see it what should we make of the fact that those three faang stocks have done nothing for, you know, since the beginning of the year? i mean they're either flat over the last three months or slightly negative. >> well, i don't think it is surprising towards the end of last year i was talking about trimming the faangs, and we did that. so i think during the pandemic when there was massive liquidity and no story that people felt comfortable with, you have money rushing into the faangs, and now you have some of it coming out and diversifying and going into other places in the masrket i think that's completely normal and to be expected i like the valuations better down here relative than i did before, but with some of the faangs, we don't own all of them and in general we're underweight, but i think it is to be expected i think the market is searching

for a leadership right now i don't think it is clear where it is. there's a tug-of-war between the liquidity and people looking for stories and something that they feel comfortable that they're going to earn a return versus a very, very expensive market in general. certainly there are pockets here and there that are attractive, but in general the market's expensive. in general, right now the s&p is 50% growth so you are going to need growth. maybe not the faangs specifically but growth overall if you want the overall market to go up. >> let's talk about netflix more specifically i did mention it is one of the biggest losers today out of the 100 and also the s&p stock is down about 7%, maybe a little less than that at this point. it certainly recovered off the lows the subs were a problem. the pull forward as you know was rather significant because of the pandemic jenny, you say this stock was priced for, quote, delusion. tell me what you mean. >> whichen you have a company tt

reports as unbelievable numbers as they did, 24% earnings growth, they added 3 million subscribers and it is down 7% on those earnings, the stock before that wasn't priced to perfection it was priced to delusion, delusion a delusional expectations for that level of growth to continue to go into the future one of the things i have been thinking about a lot lately is how there needs to be a concert between the valuation of the stock and the story of the stock to make a great investment what we focused on a lot, particularly over the last year, was the story. i always focus on the valuation. maybe i need toincorporate the stories more, but you need to marry that valuation and that story to actually have a great investment so let's not argue about what a wonderful story netflix is we all love watching it, i loved "the queen's gambit" but the valuation was delusional it was as if it was going to continue for eternity and they're not at that level. there's competition here we will see it with all of the

super cap tech stocks as they start to report. there's competition. when you get that big a piece of the pie, everybody wants some. they actually said on the earnings call, oh, no, we don't think it was from competition, but there's a lot out there. i don't think it is winner takes all. i think there's plenty of room for disney and hughlu and apple tv, there's room for all of those guise, but there is competition and that's competition. when there is competition there needs to be a correct valuation and that's what they did not having going into the earnings call so i think it was going to go -- >> i wrote this down, i wrote that down, what you said netflix was, quote, priced for a delusional level of growth, and i wrote it down because i'm guessing that our guest right now is going to disagree with you. it is one of our own tiffany mcgee, she says she bought more netflix before the drop are you on the phone >> yes how are you guys >> man, jenny just hated all over netflix what is your counter to that.

>> only the valuation. love the story. >> yeah, but only the valuation, but you said it was priced for a delusional level of growth that's hating on where the stock price is right now and the valuation. so, tiffany, what is your counter to that because clearly you disagree with what jenny just said. >> absolutely. i'm just going to remind everybody that somebody else hated on this like blockbuster, right, there's a whole story behind that. first, i think that we really need to remember, you know, this is a company that started in 1997, and when they started, you know, they were thinking about their evolution from dvd by mail to streaming, right. and they've really powered through with this evolution, from u.s. only to global, from license to original content. so that's how i'm thinking about this but in terms of competition as you mentioned, you know, i really disagree. so their biggest competition is with linear tv, right. they still have 10% less -- actually less than 10% of the

linear tv viewer share so their second biggest competition is youtube, right, and disney really pales in comparison so i'm looking at the whole story, right so they've been expanding in their international market, really focusing on producing that original content in those markets, not sitting in the u.s., introducing what we think are good for those markets, and they're able to spend less on content. there is a direct line between the amount of content, original content that netflix makes and their revenue. of course, they have this -- they had this pull forward with those subscribers so they also had a shut down in production, so i expect this they also said in their earnings card it is hard to forecast in a traditional forecast much less a crazy five quarters like we had in the past year so this is right in line really

with what i was thinking i'm not looking at this from, you know, a q1 perspective i'm looking at this in terms of netflix going forward. there was really in my mind -- you know, we sit and talk about disney plus being competition. i don't see that as competition. this is netflix's sole business. they just did adeal with sony that gives access -- i'm sorry, sony ip, and they're really focused on continuing their production of original content across the world. >> right and we had a big debate yesterday, you know, you and me, about what to expect going into the number you were not negative going into the print. like you say now, you were expecting this sort of thing but you weren't looking for as big of a sub miss as they had. there's no way given what you said to us yesterday i don't imagine that you were looking for as much of a pull

forward, because part of the conversation that we had yesterday was on what the impact of the post pandemic is going to be on netflix's ability to continue to grow its subscribers. the other issue of what you just said is that they're spending less on content. they're spending a ton on content. they're going to spend $17 billion on original content this year they're going to say -- they're going to spend, say analysts, $26 billion on content by 2028, and the fact is they have to spend more on original content than some of the competitors like disney because they don't have the kinds of catalogues that disney or viacom or comcast, our parent company, have through nbc universal isn't that an issue as well? >> with respect to the amount that they're spending on content, what i'm talking about is the difference between -- remember, they had the transition from licensing content to producing original content, and so that is a better situation for them

so when i say they're spending less, i'm not talking about their overall spend. i'm saying that it costs them less to produce original content than it does to license the content. so for them, that's definitely the thing. to kind of get back to your first point, yes, in our conversation yesterday i wasn't expecting this big of a miss but, you know, all in all i'm okay with it because i really do see the long-term picture. i'm not judging netflix solely by this quarter and their misses because it really is hard to predict, to forecast. >> i understand. look, you're backing it up with your dollar because you bought more into the number and you bought more today on the drop. so that says more than anything. tiffany, i appreciate you calling in see you back on the desk soon. that's tiffany mcghee, pivotal adviser. joe, you have netflix in the etf.

what are we supposed to think about this now >> exactly what you highlighted in your question to tiffany. scott, let me ask you something. you have a bunch of companies that offered a digital product or service in 2020 how are these companies ever going to be able to comp in 2021 against the numbers that they were posting in 2020 in q1 of 2020, netflix had 15.8 million new subscribers. so the expectation was they would have 6 million in this quarter. they missed badly. the guidance looking forward is for another quarter where they are going to miss again. here is the question can they recover from that and here is where netflix, to tiffany's point, has some support. they're finally fixing the balance sheet. they're free cash flow positive, they're buying back their stocks you're correct, they're going to spend $17 billion on new

content, and they need to focus specifically on international growth in that new content, and they're going to spend even more next year. so over the course of time, netflix is going to be able to recover. >> of course. >> i think the real question is how many -- but how many of these companies, scott, that pulled forward all of the expected revenue growth in 2020 and now have to comp against the critical numbers. >> okay. >> do they have balance sheets like netflix does in which they recover? the answer to that is no. >> i'm glad you went there because that's sort of where i wanted to go next, but let's just point out one more thing on netflix. churn was low. cramer thinks this is an opportunity. the company is betting a lot on the second half of this year so, you know, that needs to be mentioned as well. but to your point on the pull forward, michael batnick, a goo follower on twitter, was suggesting today netflix can't be the only one with a massive

pull forward, right? so -- >> right. >> -- is that now going to be an issue, amy, when we hear -- >> of course. >> -- from other companies, the zooms and the pelotons and whoever else you want to lump into that group of stocks that just thrived incredibly over the last year with the stay-at-home, who pulled forward so much of their business that the next couple of quarters may look a little lumpy, do we need to rethink now based on what netflix just said? >> yes it is going to be a huge issue we've been expecting this to be an issue for a lot of the beneficiaries last year of the stay-at-home trade everyone who benefited is going to have a tough comp and we will see it going into 2022, that a lot of the companies that are going to benefit now from some pent-up demand are going to have a tough comp next year so the pandemic caused havoc in a lot of our numbers and forecasting, in a challenging

environment, but especially for the companies, as jenny says, that are priced to delusion. i'm not going to comment really on netflix because we don't own it, but there are a lot of companies out there that are going to disappoint. >> next week, pete, you better not get disappointments from microsoft and alphabet on tuesday or apple and facebook on wednesday or amazon on thursday, given what we've gotten from netflix now and the fact that the stocks, like i mentioned at the top of the program, are either flat or negative. i am talking, of course, about amazon, apple and now netflix. facebook and alphabet have been setting, you know, new records it seems like almost every week. of course, the street is now out with notes ahead of earnings katy huberty who dropped her price target a couple of weeks ago, she raises it back by a buck to $158 but goldman, pete, today reiterates their sale. their price target, i mean it is incredible when you look at the price target that they have just

relative to not only where everybody else is but where this street and where investors are overwhelmingly in their own minds. $83 is the goldman price target that represents a 37% down side. you have got positive notes on microsoft, positive notes on amazon, but i can't get past this goldman $83 price target, pete. >> well, and they've been there for a long time, scott, and they've been wrong for a long time i think it is always good to point out who has been right and who has been wrong, who do you want to follow that's why for i don't know how many years you got tired of me saying, hey, look, i listen to katy huberty you just mentioned katie hubertie she was looking at not just the phone and not just this or that. she went directly to services. that's where the margins are, that's where they continue to grow wearables, the same story. and she is talking about how they're seeing ipad sales as well, and that sort of category where we didn't have that in the past maybe they've pulled forward a

little bit there, but i think going forward for a long period of time now, i think we're going to see that folks are going to go more and more and more, especially in the hybrid society, they're going to need to upgrade they're going to need more memory, they're going to need more speed all of that i think bodes well for companies like apple, for microsoft and some of the others that are in that, you know, world of competition i think on the apple side, you've got to listen to katy because she has been far more right than just about any other analyst out there, and she has been talking about and pounding the table about some of the different growth aspects she sees going forward and if she is right on some of the growth she is projecting going into this next quarter, talking about an 80 billion quarter and she is also talking about adding to and buy backs, putting the dividend deal that much higher, maybe jumping it by 10%, there's a lot of different categories that i think apple really interesting going forward. i understand what you are saying about the goldman sachs.

i don't understand how long they've been wrong and how long they want to wait on this particular call on apple, because they have not been close for a long period of time, scott. this has been a stock that's been trading plus 120, you know, plus 125 for this year, even though they haven't really produced much and, like you said, unchanged essentially for the year. >> yeah. >> but, still, that's $40 away, right. >> i hear you. look, i would have a counter, i would try to come up with some counter for you as i try and do. i don't have one though. i mean the numbers don't lie. >> right. >> that's just the fact. however, the weakness in the nasdaq, pete, is one of the reasons and one of the warning signs that jonathan krinsky is watching closely, the chief market investor with bay crest good to see you, by the way. thank you for coming on today. you say the breakdown in the nasdaq internals is either a warning for the broad market or an opportunity for those names to catch up to the indices

which do you think it is that matters >> it does i think -- we think it is a bit of a warning, and part of the reason so just to kind of flesh it out a little bit, you have the nasdaq composite which has about 3,000 securities it was near 52-week high it is above its 50-day moving average, but for the last few weeks we've seen deterioration in breadth and we now only have about 30% of the index above their 50-day moving average. a lot of the weakness is coming from the more speculative areas of the market, the spacs, some recent ipos, some of the china tech names, clean tech, you know, the electric vehicle names. all of this stuff though was kind of viewed as a bit frothie and parabolic in the early part of the year. it has come down and it hasn't been able to bounce back with the nasdaq that's where you are seeing the deterioration. when we look back historically when you see these types of divergence in the nasdaq, there's been a couple of times,

notably november of '07 and october of '18 where this divergence obviously led to a meaningful pull back in the market the other times actually was what you said. it was more just a time for those lagging stocks to kind of catch their breath and play catch-up to the index. on almost every occasion, even if it was within a strong cyclical market, you saw some weakness over the ensuing couple of weeks i think it is consistent with what we've seen in the year-to-date pattern so far which you have seen very strong gains in first half of the month and you have given back, retraced some of that in the back half of the month we were up over 5% by the midpoint of april. i think a lot of good news is priced in. you are coming into earnings season you saw what happened with netflix. i think there will be a little bit of a choppy pullback here and we think the s&p could actually pull back to 3950, which sounds like a big pull back, but it is really just, you know, kind of retest that trend line and shakes out some of the new longs here. >> and then you think we would

reload and have another go at it >> yeah, so some of the other things you have been talking about over the last couple of weeks is that we actually -- well, the nasdaq breadth is very weak on a short term basis, you have long-term breadth, like 95% of the s&p is above the 92-day moving average there's a divergence we're getting, short-term weakness within a long trend. i think if you bet back to 3950 up to 4,000, ill think it would be a good point the reward just here the risk/reward is not very good. >> that's jonathan skrikrinsky h the call there joe, i wonder what you think of that and also in looking for areas of froth in the market, some are clearly looking at crypto i mentioned scott miner at the top of the show who was on the network this morning he is looking for a major correction in the near term. he calls bitcoin, for example, quote, very frothy he is looking for a pull back, a

significant one, 20,000 to 30,000, 50% decline in bitcoin. >> oh, wow. >> i wonder what the broader stock market would do if that happens. he is bullish over the longer term i bring this all up because before i go i want to talk about coinbase which you bought. we mentioned that, right your order was filled at 325 you sold yesterday at 315. that's it? that was quick. >> yeah. no, it was quick, but i told you the other day i was uncomfortable with it and i was going to be very impatient, scott. basically coinbase spent 90 minutes trading above 350 on the first day that it is open. in the six subsequent days it has not developed any positive price momentum i still think fundamentally the company in the long term is going to have the ability to grow its earnings and see a higher share price, but in the near term i didn't want to accept the risk that there could be a further deterioration as this company tries to find what the right pricing coming off this ipo is. i didn't want to take that

exposure in this environment, so i'm going to move to the sidelines. i will take another look at it at some point. >> we are going to take a break. before i do that, i want to show you uipath, a new ipo today. it has just begun its trade. there it is. it was just shy of 17%, and right before i did that, of course, it burst above a 17% gain 65, pushing $66. we are going to talk more about that come up up. we will debate software stocks as well. back in two minutes. the world is going hybrid. so, why not your cloud? a hybrid cloud with ibm helps bring all your clouds together. that means you can access all your data, modernize without rebuilding, and help keep things both open and secure. that's why businesses from retail to banking are going hybrid with the technology and expertise of ibm.

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♪ welcome back i'm rahel solomon. here is your cnbc news update at this hour. president biden wants businesses to give their employees paid time off to get vaccinated and for recovery time if needed. he's announcing a new tax credit to pay for it. that will be offered to small companies and nonprofits with fewer than 500 employees a dozen governors are urging the white house to set a path to eliminate green house gas emissions from cars and trucks by 2035 for most vehicles and 2045 for larger truck goes in afghanistan u.s.-backed peace talks have been postponed. taliban leaders dismissed the conference and no new date has been set winter apparently not letting go buffalo, new york, was covered

in snow by the time rush hour was over this morning. up to 5 inches is expected, blowing away the previous record for april 21st, which was just over one inch. scott, apparently it is rare but clearly still possible i'll send it back to you. >> i don't even want to see those pictures get them out of here. >> no energy like that over here. >> exactly rahel, thank you shares of uipath as i said before the break are trading now. it is one of the biggest software ipos ever our leslie picker following the money on this ipo as she does for all of them. how are we supposed to think about this one >> this one is a perfect reflection of what is going on with its peers in the public marketplace. you look at the recent activity among the stocks recently, we have a chart showing you the bigger names off the recent highs. you can see a major revision is how investors are valuing software right now uipath is reflection of that

snowflake, off 46% qualtrix is off 39%. the way these are valued is they basically take companies that are similar, whether it is business model or customer base or so forth, and they pull together all of the inputs they say, this is how we should value a company, a new issue like uipath in the public markets. well, when you have those peers, those comparables in the publicly traded markets that are down significantly like they are here, you have to take a step down in the valuation for these ipos maybe more than they would have wanted for example, uipath right here is at 65.48. that is just about in line with where they raised money back in february at a $35 billion valuation. their ipo pricing however during the roadshow, they were actually looking to price significantly below that round and then raise the price range and then priced above that price range, but still below their latest round

from february, which is just the perfect microcosm of what we are seeing in the software industry as a whole right now in the publicly traded markets. >> there is a lot of talk, too, about the private down round, right. >> uh-huh. >> when sort of looking at that company and then gauging what the ipo was going to look like do you know off the top of my head, and forgive me for throwing this at you if you don't, what kind of price to sales we are talking about with a company like this? >> yes. >> only because it was such in focus with the snowflake, for example, which was in the stratosphere. >> in the 70s. when snowflake went public i think it was about 70 times. this one is about 52 times annual revenue at the ipo price. so trading a bit above that right now, maybe about 53 times. so significantly higher than most software stocks you think of still below that of software, but higher than almost all cloud stocks that we've been tracking. so it is certainly not cheap on a price-to-sales metric by any means, but, you know, from a

psychological standpoint if you are an investor and you say, okay, well, it is still coming below its latest private round so, you know, maybe we are getting a bit of a deal here another important kind of technical factor for this one, they're only floating about 4.5% of the stock oftentimes when you see that, you do get quite a bit of pop because of the various supply and demand dynamic now, had is a billion dollar plus ipo so there is that. but, you know, 17%, we are not used to seeing 17% pops for software ipos within the last year, especially the bigger ones that were heavily anticipated such as this one now, i think people who look at the ipo process would say 17% pop is perfect because it means they didn't leave as much money on the table but kind of noteworthy for, you know, especially as we look at what is going on with ipos in the software space over the last few years or so. >> yeah, you can't win either way. >> you can't. >> lesley, i appreciate it that's leslie picker joe, i don't think we have any takers on this one on the desk,

even though as we said it is one of the biggest ipos ever nobody is raising their hand saying, i'm buying this thing, right? i know pete is not from what he said about the other high-flying names. joe, no? >> no, i'm not going to buy this one. i'm going to take a look at it i have been watching snowflake i think what you want to do is let there be several quarters where you get to understand not only what the earnings are going to look like but also how management communicates with investors. i think that's critically important. that's been what i have done in the last couple of years as it relates to ipos. i think it is more of the prudent strategy up next, our call of the day. it is on a financial stock it has doubled over the last year we will see how much more room is ahead plus, as you know by now, april is financial literacy month. we hear a cnbc are committed to sharing messages from business leaders about the importance of financial education. here is dallas mavericks' owner mark cuban. >> the best financial advice i ever got, number one, don't use

credit cards number two, spend less than you make number three, invest in understanding finance. if you don't understand finance, it is awful hard to know what you are doing. good luck, everybody

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all right. our call of the day. morgan stanley upgraded at bear and burg to buy. price target at 91 bucks they say it has more room to run. joe, you own morgan stanley. is it getting to $91 and beyond? >> i sure down own morgan stanley. what took them so long to finally come around to it? they've had a hold on the stock since 2017 the average 12-month price target is $91. yes, i think it is going to get there. it is going to get there on the strength of capital markets and global wealth management and clearly the integration as it relates to e*trade. i like they're finally coming around i wish they would do the same with goldman sachs they have a hold on goldman sachs. i don't understand that. >> speaking of goldman, amy, you old goldman and jpmorgan. >> yes we have been underweight financials for a long time,

closed that towards the end of last year a little bit still a little under market weight, but financials, it is time to shine. if they don't work now with yields rising, i don't see what makes them work. they're still over capacity in the industry in general, lack of demand for loan growth is a problem, but they're cheap, relatively -- shortly relative to the market and even absolutely and this is their day. this is what we've been waiting for for financials. >> rahel is back with us she has more calls that we need to talk about and trade as well. rahel. hi, again, scott let's start with pepsi upgraded to buy at ubs. target bumps up 20 bucks to 165 a share. analysts here expect further revenue and earnings growth from investments already underway also thinks compared to peers pepsi's valuation is compelling. shares up half a percent right now. deutsche bank, shares down in the last two weeks

the firm sees recovery in travel demand also continuing and then citi is opening a positive catalyst watch on abbvie and bristol-myers analysts say both stocks have been held back because of concerns related to one of pfizer's drugs which could lead to more labelling restrictions on products. but citi thinks they will be able to escape the labels. analysts like that both companies, their acquisitions with allergen's commercial getting it back to you. >> thank you very much, rahel. pete, let's talk pepsi first. >> right. >> you also own coca-cola. >> sure. >> but for the purpose of the upgrade, upgraded the buy, 165 from 145 do you buy it? >> it does it makes sense to me, yeah, scott. when i look at this name, they have grown so well into where they are that they trade virtually at the same pe level they've traded at in the past. so they continue to grow they continue to grow in many, many categories. so, yes, i think there's plenty

of upside and i think that 165 might be a little bit light in terms of depending on what their time frame is for that but, yeah. i know everybody has a little bit of a different one, but i think there's plenty of room here still to the upside for pepsi and coke. >> jenny, abbvie and bristol are in yours. >> yes, it sounds according to city as of next week the concerns would be removed which would be a boost to potential revenues for abbvie and bristol-myers even though it is different drugs at both companies. we own both and happy to see the clouds lifted ahead. think there's room for upside. >> both stocks in the green today. teas usupe hnual activity coming up next we will be right back.

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and that ending was so intense. usaa. what you're made of, we're made for. i know, i didn't even see it coming. are you gonna watch? eventually! you know the drill. (humming) never fear, girl-who-has-yet-to-watch-her- friends-favorite-shows -and-films-of-the-year, it's time to celebrate the biggest week in television. now you can see these shows. and their unforgettable moments, for free. so you can finally talk about them with your friends. get ready for watchathon week, free starting april 27th. download the xfinity stream app to get ready to watch. unusual activity, pete what do you have for us today? >> yeah. i'm going to start off with one everybody knows. you men'tioned it earlier as well, facebook facebook was under pressure today, stock trading around $300 we had a buyer of the april 30, so not this friday but the following friday, expiring options.

the 305 strike calls they bought 9,000 of these, scott. there's a fair amount of premium there as well, but also a little bit of time for these to work. they were paying anywhere between 7.30 up through $8 for options that expire in a week and a half, including earnings on the 28th. next i have fxi which is the china large cap etf. had this is one if you look year-to-date started the year around 46.5, about where we are right now. it did get up towards 54 in february but it pulled right back down to the level again like i mentioned at 46 so a big buyer of july 49 calls, about 7,000 of those getting bought there for about 80 cents. last week or a couple of weeks ago they were buying the june 49s, now they're buying the july 49s and hedging those off as well somebody out there expecting some sort of recovery in the fxi in the next couple of months. >> good stuff, pete. appreciate that. thank you. "ask halftime" coming up next, send questions by video. we will play them on the mail.

e-mail us at askhalftime@cnbc.com back after this break. a. e-mail us at askhalftime@cnbc.com back after this break. i. e-mail us at askhalftime@cnbc.com back after this break. r. e-mail us at askhalftime@cnbc.com back after this break.

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energy and change came to every part of our universe. seismic or small, it continues. change is all around us. shaped by technology and human ingenuity, we can make it work for you and your business. all right. we're answering your questions now. first up, joey, we have a video question for you my name is mark marshall from sarasota, florida my question is carparts.com. after doubling in price recently and having two good quarters, the stock the now floundering around 14. i was wondering, is that a victim of the reopening trade or just temporary

thank you. >> thank you for the question. joe, what is the answer? >> mark, that's a great question yes, it is a victim of the reopening trade. this is a pure play ecommerce auto parts store they next report earnings on may 10 it. if you are long the stock, i want you to put a stop in below the earnings on may 10th let's wait to hear what's going to occur on earnings what's really cool about this company, scott, is they do earnings call in the traditional sense and then an hour later, ta jump on clubhouse and talk to the retail investing community >> that is cool. thank you for that, joe. pete, a video question for you now. >> this is carlos from new york city i want to ask about space. i would like to hear your perspective. >> pete you own virgin galactic.

what do you think in. >> the problem has been that sir richard branson has been selling some of his stock. there's a bit of pressure on the company now. they believe some cash but they have great balance sheet, scott. i continue to own this stock i sell options against it. it gives me a bit of comfort, some downside protection by getting the premiums i am for selling upside calls i like the company and i still think there's plenty of upside >> amy, she says i hold chevron which is 17% of my portfolio that's a big number. have $46 shares a cost hold, buy or sell? what do you think? >> at 17% of the portfolio, i would trim congratulations on great purchase at 46 you have more than doubles your money. i think 17% is a big part of any portfolio, probably too big. i would diversify a bit. in general, we like the energy sector

there's been years of under investment we still think the stocks are attractive i'd like to fundamentals for chevron but you made a lot of money and it's probably too big of of a percentage of the port portfolio. >> thoughts on your medical properties trust what do you think? >> i was researching medical properties and it was interesting because they are both fantastic stories medical property owns hospitals. physicians realty owns medical office buildings they are both really good businesses with medical properties trust you have something that trades at 14 time, 5% dividend yield.

one has a great valuation thans medical properties i would go with that all day long >> story has to match the valuation. i like that. we'll talk about that. final trades are flexion did you know that petco, is now a health and wellness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. they deliver high quality food the same day. i was outside digging, what'd i miss? just everything regarding our physical, social, and mental health. exciting. i'm gonna take a spin around the room. great idea. ♪ ♪

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final trades in a moment pete, you do have a new buy and it is toro tell us. >> i love this name. they do a great job. they have incredible growth. it continues to accelerate to the upside throw in that the pros inspire the sales gro. that will be up about 9% you look at the residential. that's up about 30 plus percent. there's nothing but growth going on here. they bill themselves an incredible business. that just continues. i love this name right now that's my most recent buy. >> have to talk to farmer jim to see if he agrees with this one for obvious reason he's a big tractor supply guy. not even a toro or deere or anything like that pete, thank you. amy, do you have a final trade

>> sure. asml this is a big winner with cat. >> jenny >> viacom. nine times earnings at the 2.5% yield. great content library. >> joe quick and then pete >> iha >> pete, quick >> first solar >> thank you the exchange is now. thank you, scott hi, everybody. i'm kelly evans. here is what's ahead of us today. buy the dip is something you're told from strategists on wall street what if there aren't any dips to buy? we're speak with a key researcher behind the pfizer vaccine and why she's not overly concerned about those covid var variants a key suppliers was suffering a multi-million dollar