so how do you invest in gold? sandstorm gold royalties is a publicly traded company offering a diversified portfolio of mining royalties in one simple investment. learn more about a brighter way to invest in gold at sandstormgold.com. ♪ good afternoon welcome to "power lunch. alongside leslie picker, i'm tyler mathisen glad you could be here a day after fed whiplash, markets are moving higher again. 255 points on the dow. a lot of anticipation for apple results after the bell we'll dig into what the company could possibly say that would satisfy investors. check out shares of carvana, up more than 31% today look at the number in the corner nearly 1,500% gain in a year

more and more analysts are becoming believers with these levels, should you join them? we'll trade that stock coming up. we begin with two big tech topics steve kovac covering apple earnings and ayeamon javers in washington we have a historic case wrapping up steve, let's start with you. >> reporter: yeah, leslie, we have apple earnings coming at 4:30 p.m. eastern. the real, top thing we're looking at here is what does it look like over there in china? we're expecting overall revenue to be down about more than 4.5%. a large part of that is because of these stung lruggles we've sn apple go through in china. sales for iphones down 13% in the september quarter, and since then, loads of data showing iphone sales have been down as much as 19%. we see other rivals like huawei grow significantly huge competition there

by the way, a lot of that data has caused some analysts to trim their estimates for the june quarter in addition to this disappointment they're expecting in the current quarter the question, of course, becomes, what can turn things around everyone is also going to be paying attention to any commentary about artificial intelligence unlike the other big tech peers, apple has not really told a clear artificial intelligence story about where it fits into this picture of generative a.i we've heard them talk about, you know, behind the scenes and how they use a.i. in their devices, but not necessarily generative a.i. any hints ahead of the big worldwide developers' conference next month that we could get from there will be worth paying attention to on the positive side, its services services is the one bright spot right now. huge growth there. double digit percentage returning again. the street is expecting 10% in services growth. i also expect to hear tim cook and company talk a lot about the install base, that's the number of devices out there that can take advantage of their

services those are all the numbers we're watching, guys. >> i know every quarter for apple is important, but this one certainly seems to stand out thank you, steve stick around our next guest says big tech companies have to deliver almost perfect results as investors get choosy about which ones to reward this bodes not too well for apple today. joining us now for more is daniel newman, ceo of future own group. thank you for being here, daniel dispersion a lot of people say that's a good thing but if you are an investor and you're in this market where investors are getting more choosy, as you say, how do you kind of know the good apples from the bad apples, not to use the well-known id iom there. >> apple is the seemingly bad apple. we've seen the nvidia trade, and that's getting a little tiresome right now. investors are getting a little fatigued you saw meta had a great result. investors ran away because they had too much capex in a future investment of reality labs

everyone wants perfect results, super fast growth, an a.i. strategy they can see the monetization path. at the same time, they also want to know these companies are managing opexwell well, are deag with the macro situation so we don't see interest rates suddenly pop higher, that these businesses can't continue to grow, deliver the high eps, and, heck, they're throwing in dividends to lure investors into the fray. >> can you still call apple a growth stock if you can't, what does that imply for the multiple and for investors? >> they aren't showing the trend line of being a growth stock right now. >> haven't for a long time. >> they haven't. right now, they're behind on all the trends and have been for some time. they've gotten away with it for quite a long while so all of a sudden, they're saying, what is the a.i. str strategy do they have one turning to google, to openai is that the best apple can do? i'm looking at microsoft,

looking at google, nvidia. even amd showed great results, growing their mi300 product. qualcomm is showing compelling opportunities on the edge with a.i. i'm not putting a dollar into apple right now. >> if you are seeking tech stocks that are already kind of delivering these perfect results, how are you able to get a good deal and provide a return in the future? is that perfection, in other words, indicative of future returns or better future returns, or are you better off looking at those who missed the mark, traded down, buy on those dips and capitalize in the future >> i think investors are in a pause moment they've seen that the macro environment isn't really stable. these jobs numbers are a little flimsy we see a gdp not growing companies have been rewarded for lowering opex. right now, they're looked at for a perfect blend of capex spend there are companies that had multiples pull back. i mention ed qualcomm.

several of the other stocks they're compared to, much lower. they showed some stability in the handset business and a boom in their automotive business people are saying, maybe there is an a.i. story there we'll pour into it it's up 15 bucks today, huge jump, after several quarters of falling, falling, falling. that's the kind of things that investors are going to be looking for. apple, you know, there's no story. there is no a.i. their handsets are declinidecli. their situation in china is really constrained. >> it's not just their handsets and it's not just one quarter. it's their ipads it's macs. we had a graphic up here of the revenue declines, and they're really quite something what can they do to turn it around >> i think the next m3 chip was interesting. you see the momentum for a a.i. pc. intel had a tough quarter but did show 31% growth in their pc business, the client business. amd had an 80% plus growth

this aipc trend is real, and apple almost missed that one they leaked this next generation chip, which is going to be their ai-enabled pc equivalent i don't know if there is a quick fix. right now with china showing constrain, showing its strength against the u.s. companies, i don't know, maybe tim cook needs to pull an elon musk and head over to china. >> well, he did. he just did. he was there maybe he needs to go back, yeah? stay with us, daniel and steve we want to move on now to the next tech topic of the day the justice department's case against google. eamon javers has the story for us from washington as this case may come to a crescendo very soon >> reporter: that's right, tyler. this is closing arguments today and tomorrow in the doj antitrust case against google. this is the last opportunity for both teams of lawyers to make their case to the judge who has been pri esiding over the previu

ten weeks of the trial we don't expect a decision until later in the summer, but everyone is watching today to see what questions mehta is asking the core of the case comes down to the tens of billions of dollars that google is paying to be the default search engine on a lot of platforms, especially apple platforms. is that anti-competitive conduct, or is it simply, as google would say, smart business we're watching what mehta says couple of red-hot questions for the department of justice side right out of the gate. mehta a little skeptical with the department of justice side he says, look, search today looks a lot different than it did in the past. a lot of that is due to google, isn't it suggesting that google has been innovating in search, despite sort of the assertion of the government he also says it seems a hard road for the department of justice to get him to conclude that google has not innovated enough over the past ten years also some skeptical questions, though, for the google side or some skeptical statements anyway for the google side.

mehta saying, i don't think the average person would look at google and amazon as being the same they are different that goes right to the heart of what google is saying here, which is, their broad market includes search from a whole lot of entities, including amazon and tickktiktok meta saying, wait a second, that is beyond what the normal person would think of a competitor to google mehta saying that there hasn't been real competition for these s slots, these exclusive slots for 10, 15 years, suggesting he sees the world in a similar way to how the government sees the world. we'll see ultimately whether he sees this whole case the way he sees -- the way thetice jusstict >> hang around we're going to bring back daniel newman and steve kovac for reaction daniel, i wonder whether you'd say this google case has lost a little juice because search, the

way google made search, isn't the future of search a.i. is going to be the future of search. >> that's a great point. i think we're at this huge inflection point where there is no circumstance in which search in a few years is going to look anything like it does today. we're already seeing it, whether you're using chatgpt or searching on your social network. you're seeing the growth of amazon's ads business because of how people are searching for goods and services not on google we're going to get these consolidated summaries which means click-through is going to be different google is looking inward, how can we monetize the behavior we've monetized for so long? they have worthy competition, which is part of what antitrust is going to focus in on. of course, consumers are looking for a better -- >> worthy competition where? in search, per se, or in a.i. related products >> yes >> yes >> i mean, microsoft for a long time is a worthy and capable competitive, has plenty of resources and tried hard with

bing they had an early lead with chatgpt, having access to that in bing. they made almost no real meaningful market shift. that was because it was early on the behavior now, we have this next set of behaviors that are going to be how people search, how they get the abstracted summary then, of course, the next policy battle is going to be how we actually regulate and give credit for the content that's going to be utilized to provide summaries, to make sure content creators like cnbc are monetized properly for the value that's going to be created when people get these abstract summaries and don't have to click through anywhere. >> this is at the heart of lawsuits that "the new york times" and others have brought against some of the artificial intelligence providers steve kovac, jump in with your perspective on this google case. >> reporter: yeah. i'm going to throw it right back into how it applies to apple the company right behind me here, they get $20 billion a year, at least that was the number in 2022, straight from google that's all tied to how many

people are searching on their phones using google as the default search engine. the remedy, if google is guilty, and one of the remedies of the case is that deal that google has with apple has to be weakened or go away or, in some other capacity, that means apple has to find a different way to make up for that lost revenue that it is doing in its services business i just mentioned services as the one bright spot right now that everyone is pointing to at apple because of its wealthy user base, because it has over 2 billion devices out there that give them chances to charge for services but without that $20 billion from google, what does that look like does that mean, you know, whatever a.i. announcements they have, the a.i. powered theory or search they have can augment or replace google at the same time, we're hearing reports that they're working on another deal with google on the a.i. front, and whether or not that deal can be at risk if the doj rules against google in this case, guys. >> cupertino is definitely

watching the goings on in washington closely here. eamon, i want to turn to you i'm curious how this google case, which is the first of its kind and kind of the big tech monopoly of this current era, how it has the potential to set precedent for other tech giants that have been sued by regulators, such as apple, such as amazon, such as meta, for potential -- or alleged monopolistic behavior. >> reporter: look, it absolutely has the potential to set precedent, and that's why so many eyes are on this case you know, so far in the court today, they've been reading back through the old microsoft case, going back more than 20 years ago now, looking for precedent there. you can imagine a court 20 years from now sorting through the a.i. industry, looking at precedent from this case it is very precedent setting as steve brings up the question of apple, apple faces its anti-trust case. the detail that got everybody's attention was whether the green

bubbles in the phone, when you text an android person, is anti-competitive, making the android seem less than apple has to face the department of justice there, as well. my guess is the department of justice is not done. we're in the last year here of the biden administration, or at least the biden administration's first term, but i don't think this department of justice, which has been focused on antitrust, is out of gas just yet. i would watch for further cases to be brought between now and the end of the year, as well. >> all right daniel, let me conclude. quick answer here. if the judge, and this is a judge trial, not a jury trial, if the judge sides with the government here, what is the -- what are the potential remedies that he could apply to google? >> it's really difficult to say what exactly could be applied. there could be an opening up of some of the amglgorithms and technology google uses for the better experience. they say, we're better, that's why people use it.

it is a cat and mouse between regulators and tech companies. a. a.i. is going to accelerate this, and they'll have problems regulating this in the long term. >> thank you, daniel newman. eamon javers and steve kovac in california, thanks. coming up, we'll take a dive into markets before tomorrow's very important jobs report plus, a ceo sound off. don fort sitting down with the aws ceo following amazon's earning beat we'll wrap the key highlights coming up. "power lunch" will be right back trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills

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welcome back to "power lunch. attention turns from the fed to corporate earnings and tomorrow's job report. our next guest says why you should pay attention to interest rates, you should rely on

earnings trends for long-term stock market gains let's bring in doug mckay, president and chief investment officer with broad leaf partners doug, good to have you with us. >> thanks for having me. >> the profit picture looks pretty good for the most part, and you say emphasize that. >> yeah, i think so. the fed is important, as you were just saying, but at the end of the day, you know, watching what the fed does and policy is a little like going to the dentist. no one wants to go to the dentist. my dad is a dentist, and i didn't want to go to the dentist. we get through whatever your procedure is, and you get out and you're done. jpmorgan said it best, or jamie dimon at jpmorgan said it best, there is an interest rate reset, and then it is earnings growth from there temporary pain we've noticed over time that the market then grows through. >> one of the things we hear a lot about is discussion and something you mentioned, as well, discussion about data

centers and data center builds and all the power that's going to be required to operate them largely, the people that build them is this a smart investment play for individual investors >> i think it's a play that matches both the industrial sector and the tech sector i'm from ohio. i've never owned so many ohio-based companies before. i'm not targeting ohio companies, but it just is a fact that we're in more of the rust belt companies like v ertive, sellin cooling systems to data centers, it is a part of the infrastructure we're renewing. yes, i mean, i think there's going to be a lot of money spent, you know. the microsofts and nvidias are monetizing things now. amazon yesterday on the earnings call talked a lot about how they have 100,000 sellers of products that can scan their url and have their products automatically uploaded onto their site massive productivity savings

unfortunately, i got hit in the rear end my car a few days ago, took some pictures through geico and had a claim within two hours i think the productivity benefits are quite immense obviously, building new data centers is a part of the path. yes, earnings are going to come from there. >> i hope you're okay and i hope your car is okay but just to hit on the earlier point about kind of what goes on with the fed versus focusing on fundamentals, there are certain pockets of the market, pockets of the economy where they're more inextricably linked regional banks, for example. the companies that have a lot of debt on them that are kind of part of this whole refinancing wall, this maturity wall that's going to take place the next 18 months or so would you be shying away from that in this current environment where the macro picture looks more uncertain, maybe murkier?

or are you focusing on how this translates into the fundmentals as you decide what stocks to invest in? >> i don't have a big participation in the financial sector there's a lot of competition there. there are a lot of good companies. as far as growth companies, the set is a little different. what i'd say about interest rates, dating back to the macro, i mean, economics is a soft science. so many people and strategists have been predicting a recession, soft landing, hard landing, the last two, three years. i subscribe more to what denney said, i used to work with him. you have this rolling recession through different sectors at different times. ever since covid turned on and off on the economy, as a result, a lot of sectors are out of sync from what they normally do, even the employment section i guess i'd say i'm not so confident in what interest rates will do to certain sectors, compared to what they have done

in the past. housing, there is a shortage i just think you have to be careful making generalizations like that. >> all right doug, thank you very much for being with us today. we appreciate it doug mckay. >> thank you. >> you bet >> bye. coming up, stubborn inflation remaining a concern for small business with 75%. 75% saying they expect it to climb even higher. that's further ahead. check out stair shares of paramount, now up 12%. cnbc confirming sony and apollo made a non-binding expression of interest to potentially buy the company for $26 billion in cash. "power lunch" will be right back (ella) fashion moves fast. setting trends is our business. we need to scale with customer demand... in real time. (jen) so we partner with verizon. their solution for us? a private 5g network. (ella) we now get more control of production, efficiencies, and greater agility. (marquis) with a custom private 5g network.

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for your full financial picture and personalized money management with the right balance of risk and reward. doors were meant to be opened. welcome back time now for a look at how bond yields are doing 24 hours after chair powell's press conference. the two-year yield holding just below 5% rick santelli has the details. hey, rick. >> yes not only that, short majorities, two year, three year, they're leading rates down post fed meeting. let's look at a two-day chart of the two-year note. currently at 4 h.88, down eight

basis points on the session. the right is lower than the left two-day chart. the 30-year bond is down three basis points and the right side is actually a little higher than the left side because we have not traded under yesterday's lows in the longest maturity there's definitely a curve implication. that makes sense the fed, for all practical purposes, was not very hawkish, and that's why short maturities are leading rates down now, if you look at the ten year, down about six basis points, it is on pace right now for a three-week lowyield close. going back to the 12th of april, as you see on the chart. what's maybe more important if you're really trading interest rates is the look at the year-to-date chart of the said ten year currently, and its current yield of 4.58, it is up almost three-quarters of a point from where it closed 2023 it is down a dozen basis points from the high yield close for

this year. so even though rates have gone down and even though we may close at a three-week slow yield close, you can see on the chart, they're much loftier than when we began the year. tyler, back to you. >> rick, thank you very much let's talk about uranium stocks, jumping this week after the senate passed a bill banning russian imports. now goes to president biden. it is a different element every day, pippa stevens. >> yeah, the stocks are 3w0u73w0u7bs i bouncing the senate passed the bill, and president biden is expected to sign it into law soon. it also unlocks $2.7 billion in funding to build out the u.s., you know, reshoring our nuclear fuel cycle this was a long time in coming in the sense that russia invaded ukraine more than two years ago. through all the rounds of sanctioning, their nuclear system has never been targeted that's because they are a very key player here. they control about 40% of the global uranium enrichment

market for the u.s. specifically, 24% of enriched uranium comes from russia they are the largest outside player there had been multiple bills raised looking at banning their influence on the u.s. and also on the world now, adam rodman from sacred capital who invests in uranium equities said this catalyst comes at a time when the fuel cycles were already very tight mining conversion enrichment in the u.s. is not what it used to be and doesn't cover all our needs. he said it should be supportive for the western miners already in production and those bringing production online. final point, russia could retaliate by deciding to ban exports all together that's why we're seeing a response in the stocks today. >> uranium, the importance there for kind of the u.s. economy, is what >> about 19% of our power grid is actually fueled by nuclear. enriched uranium is what goes into those nuclear reactors. while people, you know, might think all their power is coming from nat gas, nuclear is the

second largest power supplier. you cannot just turn off we have 93 reactors in the u.s you can't just turn them off overnight. important to note, this is a very long fuel cycle this will not have an immediate impact it's by no means turning the lights off tomorrow. these tend to have enough uranium for two years. now, they have to move away from russia and will probably turn to the u.s. players, those canadian players, australia, looking to build out production >> interesting thank you, pippa, for breaking it down for us pippa stevens, appreciate it. let's get over to julia boorstin for an update. >> the media is urging the house to investigate short-selling of shares president trump is the shareholder of truth social. former nickelodeon producer dan schneider is suing the production, saying they implied

he sexually abused the children with whom he worked. it named warner brothers discovery, where the documentary aired, and max, where it is streaming. the director of national intelligence, avril hanes, warned that ransomware attacks grew in the last year. u.s. entities were the most heavily targeted, with attacks on health care doubles from the year before. back to you. >> thank you. as we head to break, a quick power check. you can see there on the positive side of the s&p, aerospace higher by 15%. this despite the ceo warning of potential demand issues. on the negative side, qorvo tumbling the smartphone supplier offering weak outlook not a good sign for one of its biggest customers, apple that's your power check. we'll be right back.

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welcome back amazon's profits triplingquarte

says cloud growth is due largely to the a.i. push john ford sat down with the ceo and joins us now with more hey, john. >> yeah, i spoke with aws ceo adam selipsky after the cloudy vision crushed expectations, maybe shifting the narrative where aws is in the race amazon has seen measurable productivity gains internally in tasks like upgrading job environments, and customers are steady adopting a.i., as well. >> we saw 83% productivity gains. we did it in a few days, passed, like, 1,000 applications to migrate them, which would have taken months incredible efficiency gains. i think it'll be very powerful you're seeing it in other areas like customer service. delta airlines, united airlines are deploying amazon based generative a.i. chat bots or

consumer assistants. helping a lot of travelers answer a lot of questions and getting a lot of satisfaction. >> can i take it to microsoft and google much more coming up in "overtime" on that. >> were these typically current customers that are using aws in new ways, or are they able to generate business from new customers that are more focused in the gen a.i. space and using aws? >> i don't want to focus too much on a.i. while it is an important part of the business, it is just a piece of the overall cloud puzzle. enterprise customers had stepped back, right, this year in spending on cloud migrations now, they're stepping up again because they need the data in the cloud to take advantage of a.i. down the line it is not necessarily just to do a.i. stuff now, but it is like, okay, we can't flow down on the cloud migration because we've got to be future proofed. >> that's really interesting yeah, i was talking to a bank executive recently who was,

like, they're very much in that stage of just getting all the data together and, one day, being able to use that for a.i it really speaks to kind of that part of the process where a lot of companies are at. >> competition is just getting started. >> that's right. john, thank you. still ahead, inflation nation america's small business owners think inflation will continue to rise, and many are losing confidence in the fed's ability to control it. we'll get the results of our cnbc surveymonkey confidence index after the break. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close.

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welcome back to "power lunch. stock market investors, the fed, everyone wants to know if inflation has peaked we asked small business owners for what they're seeing. kate rogers joins us with the data of the survey monkey small business confidence index. sounds like inflation has not peaked in the minds of the majority of the small business owners. >> that's right. inflation remains a sticky and

top issue for our small business owners, according to our latest cnbc surveymonkey small business confidence index only one in four say inflation has peaked that's down from nearly a third last quarter m meanwhile, three-quarters expect inflation to continue to rise. that's also up from 69% last quarter. more than one in three said that inflation is their biggest threat to business right now that is three times as many who say consumer demand, labor shortages, supply chain, or interest rates are their top threats to business. also, there seems to be less confidence this quarter in the fed's ability to control inflation. 31% saying they are very confident. that's down from 35% last quarter. on the whole, some good news confidence is holding stable right now for owners at a score of 47 out of 100 that's on par with last quarter's score and up one point from the same time last year there is good news here, as well there's still economic optimism for owners 27% saying the economy is excellent or good. similar to 28% last quarter and

even higher than at 21% who said the same thing this same time last year, guys. >> maybe we have these results or maybe we don't. when you look at inflation and the number of -- or the percentage of people who say it is their number one concern, do we know whether it's different region by region or different industry by industry or anything like that, or do we just know that's what they're concerned about? >> we just know it is a top con concern, tyler great question maybe we'll ask it next quarter. >> interesting to know if people in the restaurant trades or construction trades are seeing more inflation than people in basic retail or whatever >> certainly i think in talking to different small business owners around the country, everyone is feeling it in some capacity whether it is having to raise prices, whether it is consumers pulling back a little bit, whether it is paying more for materials or having to raise your own prices, there's just so much of it that is touching each part of the economy in varying ways i think everyone is feeling it to some extent.

>> it sounds like they're still relatively confident this is an election year, so given what's going to happen in november, how does that factor into the sentiment from the small business owners? >> yeah, what is going to happen in november, leslie? something we just talked about, top of mind here for the election, as well, inflation three in five of our small business owners said inflation and economic growth are their top issues when deciding who to vote for this year those come in ahead of other issues, including tax policy, safety and crime, foreign policy, and health care costs. a lot of eyes on both inflation and the economy right now. >> kate, thank you very much kate rogers reporting. >> thank you. >> from san francisco. shares of carvana cruising higher on the back of record first quarter results. boosting ing pearlman in the wk since he picked it a mentalist leading the way. we'll trade that name ahead in the three stock lunch. join the financial adviser summit it is wednesday, may 22nd.

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♪ welcome back, everybody. time for today's three stock ll lunch. first up, we have your car vana shares on the rise, up more than 30% today alone. the used car retailer posting a record first quarter the stock has already had an incredible run your trade on this stock at these new elevated levels, scott? >> tyler, at these levels, it is a whole, you're right, they had a great earnings release eps of 23 cents when the market expected a loss of 64 cents. this time last year, the stock was just barely over $7 a share, now at 115, so up $1,500

-- 1,500% in 2022, they were road kill, stuck with expensive inventory when rates rose. while it's gotten upgrades and raised price targets today, some of the price targets are below the $115 a share the stock is at now. that's worrisome the fact it is up 1,500% in 52 weeks is worrisome the fact they're expected to lose money for the next two full years is worrisome so the stock is where it should be it's probably at value now it is much more expensive than the competition. realize, this is really just an auto retailer. much more expensive than both m penske and car max if you've been around for the ride, congratulations. >> it's a third of august 2021, as well.

qualcomm on the rise, as well, up about, oh, 9% today after giving a better than expected revenue forecast scott, what's your trade on qualcomm >> yeah, this is a buy they beat on revenue and pretty much in line on eps, which is fine this is reasonably priced access to the chip space. it is cheaper than nvidia. that's probably not the best scenario, but it is cheaper than intel and amd on a pe basis. those are much better analogs. it is tied to the phone space, which could be good, except it exposes to china what they really want to do is put a.i. on your phone if they can manage to do that, they are going to print money. qualcomm is a buy. >> finally, let's move on to metlife, announcing first quarter profit rising, higher premiums, stronger return for investments, that'll help. analysts bullish on the stock. shares are down 3% today is this a buy, scott >> this is a buy we can buy this one on a dip

they missed on revenue eps more or less in line the company has done a really poor job of meeting or beating eps recently they've managed to beat the consensus estimate only once in the last four quarters i think what we see today in the but the company should have a good eps growth for the next two years at higher rates should help. they just announced a $3 billion buyback. we can get excited about that. they did not equate the 2023 buyback allocation. this will only trade differently. we talk about stop loss orders regarding price. the company cannot figure it out in 18 months. is a time stop. if it does not move in 18 months. the company has not figured it out. >> scott before we let you go we learned that you appeared on

another tv program. it usually makes us jealous. not as prestigious as power lunch but you did a great job on jeopardy. let us take a look. >> what is brunswick? what is the pocket? what is laundry? >> the answer is the video daily double. >> what is meant marker? >> yes and suddenly you're in the lead. >> the answer is power lunch but what is the answer, scott? >> tyler, what is the best tv show on in the middle of the day? >> correct. >> you are the jeopardy champion for today. congratulations, thank you very much. >> that was fun. shares of rivian job on the news of new funding from the state of illinois. we are in illinois with those details. >> leslie, rivian will be

expanding its production edits plant in illinois. they will be chipping in $827 million that will help rivian as expands production and getting ready to build the next model. it will come out to compete with the r2. was going to be built in a new plant in georgia. and we are going to put that plant on hold. and move it to reduction. and we are going to have to expand production in the state of illinois is saying that we will chip in $827 million. that is why shares are moving higher. >> are there any contingencies on that money? is it a grant or a loan? what type of funding are they offering? >> as mere as i could tell it is a grant from the state of illinois. development fund grant, if you will. this is not a loan. >> they clearly want to keep

this production is close to home. close to your home, too. coming up, palatine sinkin . and a leadership change. we will get the details. and remember, you can hear us on our podcast. listen to power lunch on your vote streaming service. we will be right back. so this is pickleball? it's basically tennis for babies, but for adults. it should be called wiffle tennis. pickle! yeah, aw! whoo! ♪♪ these guys are intense. we got nothing to worry about. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? got him. good game. thanks for coming to our clinic, first one's free.

[crowd chanting] they ignored your potential, and mocked your ambition. but it's not the critic who counts.

with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them. because you know what it's always been. inevitable. ♪♪ ♪♪ no shortage of news from peloton. management changes and changes. we are looking on how we got here. here is a three dollar stock. >> yes. a bumpy road, ahead. shares are falling double digits. and the ceo of macon is stepping down. and another restructuring plan. it is clouding its global retail

count by 50% in consolidating global resources all to minimize expenses by $200 million. at the end of the 2025 fiscal year. but you get the full picture he had to go back to the ipo day. the stock is a pandemic darling. and in january 2021 and $167 we are far from there. for some expensive investments. some recalls on products. the company was hoping on the home fitness. in 2022 to help the company recover they started massive layoff. closing showrooms and develop an app to capture new members. but also the stocks were still down by 90%.

has not turned profit since december, 2020. but two big questions. what is the company? is it hardware, software? also, the second point is debt. debt is the big question. as the terms come up on that. we will have to continue to follow and feel the company will restructure its income. >> it is really apart from the debt. i am familiar with the product. it is a hardware. to me it is a hardware that sells subscriptions. if they do not sell the subscriptions to pay $44.99 per month that is going to be a big drain. >> they've tried to part her with those brands like retailers like dick's sporting goods and amazon to move the hardware but they really saw to bury the shift towards the consumer. to use the app. or maybe they were not at the price point to a $43,000 icicle or a $5000 treadmill. >> one of the big issues during the pandemic was they were not able to size up. they could see the previous demand.

is that still part of the dilemma? are still working through that inventory? it seems like multiple rounds of restructuring at this point you have to wonder. what is left to cut? >> also the recalls were there were taking place of the inventory they had as well. also looking with the gyms are doing. a lot of them are downgrading the replacement cycles for the cardio equipment. consumers want to go to the gym he has them. they are much more gravitating towards these open floor plans. so yes. there are sure some inventory concerns the company is sitting on. but is the consumer demand also there? that is the question. >> is the best bet to be purchased by somebody? and if so, who? >> there been conversations. even when mccarthy stepped in as ceo. perhaps amazon stepping in. and even apple and nike. all were rumors. no official bids or spoken

interest. but we will have to wait to see. >> the market size gap. >> yes. they need to get the debt under control. thank you for being with us. and thank you for watching power lunch. closing bell starts right now. thank you so much and welcome. i'm scott walker. from the new york stock exchange. this breakout begins all eyes on apple. it is ready to report earnings in overtime. and our experts on the case. watching for when this stock could exit. that is the big question. in the meantime, your scorecard with regulation. it looks like we are green across the board. making a bit of a post bump. even better as we enter this final stretch. and market clearly likes that and the interest rates are also l