tv Fast Money Halftime Report CNBC October 27, 2022 12:00pm-1:00pm EDT
billionaire geniuses making billions of dollars disappear whether that's musk getting his hands on twitter, which he kind of didn't want, or zuckerberg spending on the metaverse. >> yep, going to cost him $11 billion today, john, and that brings his total wealth loss according to bloomberg $100 billion in just 13 months. let's get to the half. carl, thanks so much welcome coo to the half time report i'm scott wapner front and center the melt down claims yet another victim. we'll get you to those critical earnings reports and one of our committee members makes what we think is a pretty stunning trade. joining us amy raskin, josh brown. let's check the markets as we always do. just past 12:00 in the east. dow is green, everything else is red except for the ten-year -- ten-year is higher, 393 is where we are there but the dow is holding onto a nice gain and the
dow a nice point of contact. meta, that's down 1% what i said was we think is a pretty stunning move here given his history of dislike, frankly, for the stock and company itself is josh brown who bought meta. josh brown, you actually did it. i'm kind of surprised. i know you were teasing, you know, that you might do this, and you actually did why? >> yeah. i bought it like 8:00 this morning. i didn't buy a lot it's not that meaningful a position, but last night on closing bell overtime, i talked about some of the similarities between this situation and netflix, and, you know, netflix's refusal to listen to what the street was saying about doing an ad supported version to cleanup some of the people that would pay forth but didn't want
to pay that much like potential customers and a revenue stream, and they said no, no, no, the stock cratered and one day they said, okay, if we're going to do this, how do we do it, and that's i think the story behind a -- can we get a chart of netflix up as i'm talking? we'll take meta off the screen for a second the stock never looked back. it went from 180 it's over 300 today. it got into that post earnings gab from the spring, and it is now firmly toward the upper end of the range of that gap and the only reason that's possible is because there's an about face and management started to listen to outside voices, and i think that's possible with meta most of meta's wounds are self-inflicted i understand there's an advertising slow down, and that's cyclical. and meta and alphabet are both too big at this point to sidestep a slow down in global
advertising. it is what it is they're a duopoly and gigantic and have no choice but to succumb to a temporary slow down in advertising put that aside the issues with meta is spending on both the lack of focus, lack of clarity all that stuff i think is fixable. i'm not suggesting it'll be fixed tomorrow, but i think when you look at a stock that's lost $800 billion in market cap, which by the way is historic, never happened before, may never happen again, that is an incredible amount of market cap to lose. when you look at that, and you say to yourself, okay, what are they going to do they're going to keep selling the stock down on the same news? and at any point is management going to say, all right, let's fix some of the issues here and let's listen to someone besides mark zuckerberg's metaverse dreams like i think there is the potential now for that kind of turn around, and that's why i bought it. >> let me just jump in because
you've segued perfectly to the very issue of whether they'll make some some of the changes that someone like altimeter's brad gersner wrote an open letter suggestion to the board, getting more fit, getting more focused. gersner's first reaction to the earnings melt down that we're witnessing, and it speaks directly to what you're saying they should do, and the fact they don't really seem willing to do it yet here's what he told me the key metrics of the core business were pretty good. if he zuckerberg, kept spending basically flat the stock was up 10%. if he cut a little more and trade discipline the stock is up 20%. instetd he chose little regard for shareholders and went all in with unconstrained spending in the face of an uncertain economy. these decisions materially hurt his own chances of success
the best people in the world do not want to work in a company that feels like it is continually losing altimeter obviously supported major investments in ai and the metaverse. we simply recommend it, extending the runway on those investments to better match revenue and expense and avoid this huge loss of trust. he obviously disagreed with that, he being once again mark zuckerberg so, josh, given what you said, now given what you heard from gersner, this is a show me that you will make some of the changes that we shareholders are suggesting you make. what are your thoughts >> well, it's very difficult when -- when the founder ceo has all the voting power and that is the way this company was setup. it's the way it came public. it's the deal every long-term shareholder made when they signed on, when they bought the stock. there are other companies in the same situation
however, there are 80,000 employees in that building, and every one of them is compensated with the stock so this -- you know, things that are unsustainable and cannot go on probably won't. so i don't think despite the fact he has all the power, despite the fact cheryl's not there whispering in his ear anymore, i think at a certain point the loss in market cap, which by the way the reality on the ground is not just a wall street story but an employee compensation story, it's going to become too big, too obvious, too noticeable to continue to ignore and so there probably will be some sort of an about face i don't know when, i don't know what shape it will take, but if you don't -- if you didn't -- i don't own the stock from 300, 275, 210, you know, 180. i'm not in it. so i can come in today and make the bet this guy doesn't want to burn his own house down.
it's as simple as that >> you are in it at a lot of those levels he went down the list of, right so what's your reaction to what you witnessed here >> so we actually initiated our position at 116. we didn't trim as high as 8300 we're still holding on, and it's interesting because when i was on in september and brad joined i actually went back and listened to that podcast and listened to his argument which he maintained. the hard thing right now is some of the story hasn't changed. you still have a company producing $125 billion in revenues you have revenue growth that should start to improve. it's still crazy cheap i would actually say could almost be value trap territory but you have this founder and ceo who is not listening and isn't reading the room, and it doesn't look like the board's decided to intercept and be like, hey, this is out of control. this isn't what the market wants. and you know what, it's probably not the best route for the company, too i'm in that really tough
position of reevaluating yet again the math you know what it's like? it's like we all have these friends, beautiful and athletic and smart and got everything going for them, but they keep -- >> stop talking about me >> -- i'm not because i said they keep dating losers and we all know your wife is not. it's the same thing. they've got everything going for them and they can't get outright away >> at some point i think it's fair to ask, joe, whether arrogance and hubris overcome intellect, overtake intellect at some point nobody suggests that, you know, suckerbering is not some kind of genius who founded what is this massive company, now the market cap is $270 billion. it was a trillion dollars a year ago, september 7, 2021 it's been incredible melt.
that's what you get to gersner was trying to make some suggestions as a well-known shareholder and feels like they gave him the heisman and then some and maybe you can chalk up mistakes that end up being made through arrogance and hubris which overcome all of the traits and characteristics that jenny says still exists within the business, but nobody's focusing on those today >> so what brad stated was -- was perfectly spoken perfect. and it is logical. and it is thoughtful and it's exactly what this company needs, but it is not something that is being receptive from management. this is a terrible investment. it's been a terrible investment for the better part of the last year potentially for josh it's a good trade. i'm sure josh is not thinking about this as anything more than it is a good trade but this is something that has
been consistent for the better part of last year, so, scott, you want to ask that question? well, ask that question one year ago because you're going to get the same answer. this is a company that lost its direction, lost its focus. it was absolutely crystal clear to the marketplace, and i don't understand why today in late october we're talking about this being a great potential investment, what, because it's cheap? because the stock price went down there's something called mental capital. mental capital sometimes is more valuable than actual capital that you invest in the market. why struggle through this mental process? it's so complicated and so exhausting when valuations are set in the entirety of the market and technology itself why do you have to turn towards facebook, meta, whatever you want to call it right now, and bet there's going to be some characteristic change for mark zuckerberg >> i think the reason is that
120 -- that's where it's scloou trapping 125 billion, see revenues are going to start to turn positive, you see such a low multiple and you can't help without it. and you said these multiples are they irresistible, and they're irresistible to look at. are they ever going to get out of their way i don't know why the board doesn't step in and say no more. you know, it's not that easy -- it's not that hard to fix. >> well, i mean maybe the board is the board for a reason. >> yeah, that's right. >> i know you know what i mean by that. target cuts today are many i don't know, it looks like 20 of them in front of me i'm not going to count them in front of you on live television, but it looks like at least to. down grades i've got a few in front of me, most market performs, sector performs. nobody i see is moving to a sell i ges if you're already in the trap of being, you know, a believer here you're not going
to go to a sell today. i wouldn't -- i wouldn't guess amy, what's your view here >> i actually think josh is probably making good trades. we don't own it, and we haven't, and we're not going to it's not the type of stock i'm interested in from a company perspective, but joe's point about the mental energy, i don't think it's that complicated. if mark turns and changes his mind, which i think josh hit the nail on the head the employee compensation would probably be what makes him do that, i do think the stock goes up. that said josh is and correct me if i'm wrong he'd probably be really happy if this went to 150 and got out. i don't think this is a long-term secular call, but there's a lot of value here. >> my guess, josh, i'll let you have the last word on this before i pivot us is you're not going to be around long enough to even see 150.
>> no, no, no, this is on a leash. this is how i do these things. this is not how i normally invest it's a special situation for me, and it's on a leash, and i certainly am not going to struggle -- joe makes a really good point i'm not going to sit and expend a lot of mental capital here i'm willing to bet he's not going to burn his own house down out of spite or for the sake of, like, i don't listen to wall street i don't think that's what's going to be what happens here. i could be wrong, and if it ends up being the case in the aftermath there's absolutely no humility whatsoever and, you know, time goes on, i'll probably just say, all right, i'm going to do something else, so i think a lot of risk has come out of the stock but never all of the risk, right >> i pivot us, joe, if you look at microsoft and alphabet and meta and these melt downs we've
been seeing what's at stake then tonight in overtime? for apple and amazon according to bespoke, i mean there are so many startling stats around meta and the drop in market cap we're all witnessing they say a year ago apple's market cap was about 2.8 times the size of meta it's now close to nine times that's amazing, okay apple's now at 2.3 trillion. meta as i said earlier is at 2.66 billion we've had a big market cap decline run over the last year as these stocks have gotten hit, but let's take apple first all that is riding on these reports now must have more importance given what we adjust got from the other three how could they not some are suggesting megacap's dead >> so i hemain concerned and cautious i've said that before. i think the service business on apple is going to decline to potentially single digit growth, and that's clearly something to be concerned about i also believe and i'll raise my
hand because i'm one of those people that are guilty of this, that we have been intoxicated by the premium that exists in these megacap equities for a little bit too long, and that we've remained and utilized these companies but they were defensive holdings in an environment where the economy's contracting and valuations are resetting, right so i think you look at the entirety of these megacaps and say to yourself, okay, i own alphabet, i own microsoft, apple, can i own them all? because i think that's what a lot of people did. and the market is messaging that to you i think tonight will there be enough from apple and amazon to provide confirmation of the rally that we've seen so far in october? i don't know, probably not i'm not sure that you're going to get that. >> jenny, i wonder what the biggest question mark is is it amazon q1 they reported their first
loss in seven years. they backed it up in q2. now can they turn the ship around is that the one with the bigger question mark heading into overtime tonight >> probably because it's going to be a better reflection of the consumer at this point i think the bigger thing we say can they turn it around? what's turning it around is turning it around stemming like the blood flow, or is it actually going up? and i would say they have the chance to turn around just by being flat, just by not doing anything i don't think we need to see huge, wonderful reports from them i don't think we need to expect or hope they're up 20% just to stem the losses. can i get a dead comment you made before? scott, we've been arguing for two years about dead money and apple. the reality is these megacap tech stocks, the former faang, they really have ultimately shown up to be dead money for the past year and change and it's interesting because as we look at the market, yes, they're dragging the overall
market down but there are still pockets doing okay >> but there are a lot of things that look like dead money if you're going to use the year as a barometer of what you're trying to make a broader statement -- be careful if you go down that road. >> fair enough i think the point i was trying to make was they could stay flat, they could do nothing and the rest of the market could pick up the slack. >> hey, judge -- >> josh? >> i want to agree with jenny. look at the last two days, google and microsoft, two of the biggest stocks in the world, are down 10% each. in that same period of time the s&p 500 is only down 1%, and the dow jones is actually up 1%. if i would have told you three days ago that we would see google and microsoft down 10% each what would your guess have been for the s&p you probably wouldn't have said down 1%. it is remarkable the extent to which the old economy is picking up the slack in the stock market
as some of these massive market caps just get completely annihilated. >> it's funny you say that because that's kind of the point cramer was making today when he was watching what the dow was doing relative to the others look at the dow, this is money coming out, furiously coming out of companies that chose to lose money and going to companies with great discipline, that buy back stocks and pay good dividends. i want to hear from you as well on now is the bar higher tonight? do we need to see something extraordinary from apple and amazon to save the day for tech or not maybe the bar's lower because now we don't really expect much of anything given what we've gotten from the other three behemoths. >> i think the bar is lower. i wouldn't expect these guys to save the day i think -- i agree that large cap tech is overvalued it's overowned, and it's just
not going to be where you're going to generate alpha for the foreseeable future >> you trimmed apple now it's 2% for you? >> it's 2% i've been trimming apple all year we've had lot of discussions about it, we can talk about it later, and, you know, the contradiction there. but this is the first year that i can really trim apple. most of the money we manage is taxable money, and it's been really hard to trim it without generating significant gains we own it much, much lower so we've been trimming all the faang -- we're very underweight faangs and we'll probably continue to do that. >> so, josh, why don't you weigh in on this question? you own amazon is that the one that you think has the most at stake tonight? what do you think? >> yeah, this could get -- i mean i'm in the stock for a very long time. this could get really ugly tonight, so i don't feel
strongly that the ceo has yet figured out how to effectively communicate in terms of guidance amazon has never really been a company that has seemed particularly engaged in terms of spoon-feeding the street and bezos really always got away doing what he wanted as long as he had revenue growth. that's no longer the case with amazon i think the best thing you could say going into the print tonight is that expectations are low, stock has been in the doghouse for 2 1/2 years. nobody really seems particularly excited about anything they're going to hear, and sometimes that's a good enough setup so doesn't mean it can't get worse. i think there is a potential here if they don't have good things to say away from -- away from just the consumer and retail, if they don't have good things to say about trends in cloud, et cetera, this could get
real ugly. >> growth web services is going to be closely watched. >> we froze -- they froze hiring for aws which is surprising. >> right, that's where i'm going next, too, joe, is this, look, what can could we possibly hear so great at a time where they're freezing hiring. they're cutting costs, they're tightening their belt. the former guy is talking about battening down the hatches because of the economy the current guy has a lot to fix. >> so it's consistent with josh's remarks where it sounds like a lot of negative conditions has been priced into amazon amazon, you know, left the jot etf in july at a certainly better price than it is right now. and i think the reason behind that is the continued fundamental malaise, if you will, it was in.
i think there's a surprise tonight and i don't know if josh would agree with this, but maybe it's a little bit more of an aggressive buy back strategy they began to kind of flirt aa little bit with, okay, we're going to start buying back shares maybe they get a little more aggressive, they look at what alphabet was able to do with the buy back strategy following apple's lead >> let's take a quick break. straight ahead amy is making she said more moves in her portfolio. a lot of them. in fact, we're going to go through them when we come back in two minutes
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all right, let's welcome back everybody here. you alluded to this move but berkshire is one you said you bought you noted the irony of trimming apple so much but buying into berkshire which maybe you figure you can get your apple exposure that way along with some others. >> you can get your apple exposure cheaper i don't think berkshire is trading like apple, significantly outperformed apple this year and i think it will because it really trades predominantly on its other businesses so we generally have been making this move away from large cap tech we've trimmed google as well and apple before the quarters and we added to -- we initiated a position in snowflake for the
first time and i think service now sort of shows that the more nimble software related companies can do well despite what microsoft has done, and we added to costco and target and a few industrials as well. >> interesting the snowflake move take me inside that one, if you would. we're talking about a higher valuation stock, obviously i'm curious as to why you decided to buy that. >> so it's just really opportunistic. the chart looks great especially relative to the market obviously the stock got to 400, was down to 150. we really like to the long-term prospects for this company we think it's well-managed it will be incredibly profitable i mean listen to what microsoft said their customers are trying to optimize their i.t. spend. we think snowflake has a really
unassailable position in the crowd spending arena and will help customers do that, so we're following what customers are saying, and we thought this was an opportunity to get in it is expensive. we don't have a whole lot of really expensive positions now, but given the pull back in the market in general we're trying to pick our spots. >> you picked them in retail, too, costco and target >> so target is just really cheap. you know, we're giving them the benefit of that the doubt that they can really turn this around and clear this inventory you know, costco we like the defensive nature it's not cheap, obviously, but they're a subscription sort of business and recurring revenue >> yeah, visa, you bought it before the earnings report >> yeah, we bought visa. generally we think the consumer's strong. we're trying to increase our financials exposure. visa obviously had a great quarter.
again, not a super cheap stock but has participating in the downdraft of everybody else and we think has a nice moat around it, you know, with its competitors, and if i look in where i want to be in, quote, the fin tech world visa is certainly the place. >> you trimmed regeneron and are we talking about profit taking in two areas >> regeneron got to be the largest position in our portfolio, and we just trimmed it we're really -- it did close some of the valuation gaps it had with other but we think we still like the stock it's still a big position. energy has been our work course all year we've been very overweight we're still probably at least double weight, but we're just taking some of the winners and redeploying the money in stock that hasn't held up. >> okay, you owned regeneron
>> we do and we're optioning it. we'll take a quick break check out this mystery chart it's down 35% this year, soaring double digits today, though, and a new note says it's a new home for megacap investors. we're going to reveal the name, debate the trade in our call of the day next apple adding pressure on suppliers this week with plans to track their progress to decarbonize by 2030. nearly a third of suppliers have not committed to using all renewable energy for apple production apple will also invest more in renewable energy projects in europe and a carbon renewable initiative rng acoin--re three suppliers that have made the commitment. that's your esg fast fact of the day. it takes a village to support society and businesses have a responsibility
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welcome back to half time. i'm bertha coombs. here our cnbc news update this hour russian president vladimir putin says moscow has no intention of using nuclear weapons in ukraine, but at the same time he also repeated his unfounded claims that ukraine was preparing to detonate a radioactive dirty bomb and also said at an event this morning that it was western leaders who were threatening russia with a nuclear attack the new york post verified twitter account was hacked this morning with a number of vulgar tweets designed to look like headlines that the since deleted tweets contained offensive messages about new york governor kathy hochul, democratic representative alexandria ocasio-cortez, and president biden's son, hunter. a spokesman for the company says the company was investigating the cause. and prince harry's long
awaited memoir will be out january 10th the book will be called "spare" in reference to the fact his brother is the heir to the crown. piz publisher says it'll be filled with inside revelations, self-examination and hard-won wisdom about the eternal power of love over grief scott? >> bertha coombs, thank you very much servicenow, take a look at those shares surging best day since january 2019 that's after posting a third quarter earnings beat. that stock to outperform today and they are looking for 30% more up side, and they say -- josh brown, quote, megacap investors have a new home. what do you think? >> i mean i guess it's conceivable. i always have a hard time with that kind of thematic, you know,
approach and saying, all right, this is now the next new thing everyone is going to go migrate to do. i think i'm a soft no on that. >> i think they're just suggesting that, look, they can deliver. you know, mcdermott's ceo, rockstar and maybe this is a place that deserves your money over some of the megacap tech stocks that people have been piling into and maybe as joe suggested, overstayed their welcome >> well, listen, it's certainly possible because the money does have to go somewhere, and i don't know that -- i don't know that i would hop on that bandwagon just yet, but we'll see. >> joe, not servicenow specifically what it says about the space. >> i think josh is right, and i think overall you still have to have a defensive view of enterprise software. the economy is contracting it's clearly in the beginning stages of economic contraction is gathering momentum. how do corporations look at the
enterprise spend do they begin to cut back on software and remember in the spending cycle software is generally late cycle for the contraction. so i think you still have to have defensive positioning you look at a name like oracle, that represents what diversify defensive software companies can be and i also think you go back to the cyber theme, scott, and that's been a dominant thesis for software for the better part of a couple years. >> and crowd strike. >> without question and it's ford strike, palo alto it's all of those names. >> you can't cut that -- joe's right, you can't cut your side -- if you can believe me that everyone in any kind of business cyber is like the first and last topic at every board meeting, and it's the thing we can't cut because if you do and something happens -- >> you're out of it.
>> it wipes out everything else that you're doing. so we spend a lot on cyber security everybody does you have no choice i agree with joe that is a defensive way if you want sass in your portfolio, that is a defensive way to do it >> which is why, jenny, you want palo alto. >> palo alto actually had a great quarter and we need to think about as we get into a trickier economic cycle where the chief technology officers and chief financial officers where are they willing to spend? and they have no choice but to spend in crowd strike and palo alto they could skimp on sierra, they could skimp on servicenow and get away with it for a while so it's going to be dicy >> you're choosy, amy. cadence design systems, obviously microsoft talk to me about those. >> no, i think companies are going to be looking to optimize their spend and there will be
companies that will benefit, and i think -- we don't own servicenow but i think the others you mentioned i think a couple weeks ago which also a relatively expensive way of playing that but i think there are pockets and the baby poured out with the bathwater and there'll be a lot of good investments here >> josh, we're working on it we'll take a quick break and fix it during the break, bring josh back in. coming up meta is still spending on capx big time, a couple firms think that's going to be good for stocks which we'll tell you about when we come back.
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on the metaverse is a sore spot with investors maybe it's a boom for chip stocks that's what wells fargo was talking about today. josh, they say meta is expected to be a big arista networks customer you've got nvidia, amd, which makes the cpus for meta, already provides the flash storage for meta should we think of this spending in a reverse way what's bad for meta is good for these chip names >> you know, it's an interesting question i don't think that will turn out to be the case because i think there is a recession happening in tech. it's not everywhere within tech, but this is not an environment where even as companies say they're going full speed ahead i wouldn't believe them because i just don't think the demand is going to be there. so as consumers have continued
to move away from goods and towards services and that shows no sign of reversal anytime soon, i just don't think you're going to have a great year for growth in the semis. so i still think the semis are a good bet here. they're down substantially i like them as a group there are some names absolute outright buys right now, but as a group i just think share prices are reflecting a much worse situation. but that doesn't mean all of a sudden you know what, meta is going to keep spending if i were to take it that far, that seems like a step too far joe, you do own amd and nvidia does it make sense to you? >> it's not just a 516 thing between josh and i but his
comments totally spot on overall as a group even the price performance this week, scott, so i sat with you on overtime tuesday we heard from texas instruments. we saw, you know, the decline for both barbell and semi and texas instruments. and there was this resilience i think you have to follow what adam said where you have to be stock specific, highly selective. you have to study where the double ordering is actually occurring, where is the retention of pricing power in a weakened demand environment? so it's an idiosyncratic decision on which names to own >> that leads me to intel, jenny, in overtime, which maybe we'll hear from you on the backside of the report how do you feel going in >> well, i think it's the kind of thing where, you know, you think that everything impossibly in this stock and sector and
company. >> all the bad news. >> all the bad news. and there's a bigger story, too, which josh touched on which tech is in recession. specifically are semis in recession? we know pcs are in recession if we use this as a microcosm for the broader economy, you could say intel, everything we own, these stocks have been -- i'm sorry, their earnings have been in recession. and so if the market looks at 6 to 12 months in advance and if investors do, then perhaps these share prices have already bottomed, because if you look out past 2023 their earnings starts to pick up. for intel you go into things saying -- >> is that your bet? i know you're hoping they bottomed, but -- it's just been bad. >> bits in really bad. i think the reality is they probably have because you can now start to see the improvement in their earnings expectations
for later in '23 we'll start to see '24 and the share prices so unenthusiastic but hopeful. >> i hear you. you've endured the pain. it is what it is i think we'll hear from you. you're a trooper up next mikean stoli joins us with his midday word we're back after this. as an independent financial advisor, i stand by these promises: i promise to be a careful steward of the things that matter to you most. i promise to bring you advice that fits your values.
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commentator mark santoli with his midday word. how do you feel today? three down, two to go. we're talking about the megacaps, and i guess once a megacap in meta. >> for sure. we talked last night the top 20 stocks in the s&p 500. it continues the story, you know, you have the small caps up 1% today, the equal weighted s&p up 1% per the market cap weighted version apple has been completely its own species. it's not really behaved like a tech stock it's not even really behaved like a consumer staples, so it's essentially been the answer for everybody fleeing something else, and we'll see if that can continue because what's fascinating is nobody went into this earnings season and keep saying with high hopes it's going to be a beat and raise type story across the board. i also don't think that's the
case when the comes to apple you obviously don't want to see, you know, further negative commentary about what indemand is whether they're going to have be belt tightening more than people thought i think it's its own thing >> out of meta, alphabet just yet >> if you look at the dow up 320, psychology has shifted. so the companies that are just doing different things, that are more focused on what's working now, in the market >> right exactly. and, you know, you were still having this process underway all year of the top 5 of the nasdaq, which were the top 5 of the s&p. they just had these massive premiums that had to come out. they're no longer special fundamentally in terms of their growth rates i think that's kracorrect. therefore, regular stocks are doing fairly well. by the way, can we also please
stop saying yields down means tech up? i've been saying for two years it's just not as simple as that. and you're seeing that in the last couple of days. >> we didn't say that at all today. we're listening. we hear you. >> good job. >> i'll see you in a few hours that's mike santoli down at the stock exchange cong umip, wealthy investors are making big bets on one risky area of the market we're following that investment next you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities. it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there.
all right. welcome back to "halftime. high net worth investors boosting their exposure to cryptos this year, despite the crash. kate rooney is following that money for us what do we know here, kate >> scott, that's right professional and wealthy investors are still buying crypto this year that's according to an annual survey from fidel ty digital assets 58% of institutional investors, they say, bought cryptocurrencies in the first half of the year, even as bitcoin at the same time fell about 60%. that data was up about six points from the same time last year meanwhile, 74% say they plan to invest in crypto in the future high net worth buyers drove those results, almost half of those surveyed say they now own crypto financial advisers were the next biggest group and pension funds and endowments still have the lowest allocation and they tend to be the most risk averse of that group the top reason for buying right
now, more than 40% see crypto as an asset with high potential upside or an innovative tech play, and despite its correlation with the nasdaq, a quarter of institutional investors are still panicki bann crypto as something they say is uncorrelated the other assets. i asked the head of research over at fidel ity and he says these clients tend to be longer-term investors who are willing to wait. the biggest barrier to entry, half of respondents still say it's price scvolatility they also mention lack of fundamentals to gauge its value and security, possible market manipulation, and regulatory risk >> kate rooney, thank you very much for that. take a prbreak, come back and d final trades, next
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it's big on overtime today, as you know, apple and amazon. and kerry is more important. after what we got from microsoft and alphabet and meta, stephanie link will be with me on set along with dan ives. he'll break everything down along with alex kantorowitz as well i'll see you then, a few hours from now jenny, give me a final trade >> if you've been tracking my final trades, you know my theme for the whole year has been keep you safe, keep you out of harm's way, this is in the same category it's not a home run. clearway energy is a producer of renewable energy with a 4.25% yield. >> okay. amy, what do you have for us
today? >> i have impinj the company reported last night. it's a small cap semiconductor company making all-time highs. great technology, great positioning. look at it if you don't know it. >> okay, josh? >> u.s. aerospace and defense etf, ita this thing is up on the year with the s&p down about 20%. also would like to say, it is amazing. we made it an hour without talking about the fed even for a second i love it. >> this is true. this is true joe? >> so, merck, and i've been talking about merck now for the better part of the year. forget that i own it personally. it's indicative of the market environment that we have now if you're not willing to change, if you're not going to have success in the market, it was there for you in q1. there are stocks that are working in this environment and merck is the type of stock it's defensive look at it, up 30% year-to-date at an all-time high. >> give us a last thought here,
30 seconds that we have left, less than, 20, on what lies ahead tonight and the importance of that. >> i'm not overly excited. >> which is a shocker, because normally, this is like the super bowl >> bwell, i just don't think there's the potential for the market to mover a lot higher on this >> yeah, it's the super bowl, put your helmet on >> i'll see you all in overtime. the exchange is now. scott, thank you very much welcome, everybody, to the exchange i'm tyler mathisen in for kelly evans. here's what's coming up. mark zuckerberg's metaverse spending spree the stock sinking as the company burns through cash but we are looking for opportunities, when meta spends, others are taking that research. we're going to look at the companies that are benefiting from meta's big money moves. plus, wing stop up 30% chicken wing prices down 42% from last year