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tv   Mad Money  CNBC  May 3, 2024 6:00pm-7:00pm EDT

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to growth, but probably will be by the end of the year. >> disney. channeling my inner buffett, chevron. >> i'm cautious, let's hear what they have to say. thanks for much
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>> the oil giant reported on tuesday after the close. warren buffett loves it. and he has his wise to that. he is going to hold on to the stock. he also talks about berkshire hathaway gets cash. it cannot find anything to purchase. but it is worth more than not. monday morning should be a good day. bears, beware. on monday morning we heard from my favorite, tyson foods. this is a bounce biplane.
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too cheap. that was many moons ago. i like this setup of tyson foods. and we have been correct. and after the close one of my absolute favorites. it is going to report and the put up a terrific set of numbers. but the yield the risk seems low. but the reward? i think, sensational. this is the highest volume in the world. southern properties had a fantastic story. and the influence of the cfo from pepsico that leads what casinos, the chinese would put
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up good numbers. but they seem to be willing to travel locally. also this is a new one. and i do not think that they got the numbers right out of the chute. those are good comparisons. and i anxiously await a very positive story in my humble opinion for reddit. now, wednesday. wednesday we hear from uber. and i wonder what they could be seeing some impact from lyft. and possible sign that uber is becoming too expensive to use. i worry about these things. i keep thinking of the negative report from door dash this week . it might be a bit is similar to uber. in some optimal traffic numbers. when it comes to cars were also fascinated with elon musk. and tesla. maybe we should sober up and listen to toyota. because it is been come increasingly clear the sweet spot is not easy.
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it is not really matter. but it is hybrid. hybrid vehicles. toyota has long been a leader. they put up great numbers. like what we use to expect. but it is going to be hybrid. after the close i really like these holdings. we could see some strong numbers. that is the advanced semi conductor design firm. and i also expect from airbnb. that is after listening to the expedia coverage last night. they talk about the air having some technical issues that hurt business. the airbnb competitor, vrbo. and robin hood had a really good quarter last time. and perhaps another one. given how popular they are. as we learned from block. also he is doing very well. they could deliver a good quarter as there's been so much
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advertising money spent on streaming. they offer digital act six. and also, we do not want to miss the tremendous production that will be the amc entertainment. i cannot believe this traded at $380 just three years ago. i saw came stock going up at the end of the day. there is no accounting for taste. but my experience is there could be a good company. and there is probably another good quarter. that is why i was going to be looking into roadblocks. purchase. also the report coming out on thursday morning. sometimes stocks can be lightning rods. the thursday report was warner brothers for discovery. under $10, he cannot resist. they keep the contract that keeps it relevant. they have lowered the debt they need to go 2 for 2 if the stock is going to make it back to double digits. the next is tapestry. the old coach. but i think the could be onto
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something to block this. but for once, they are generally trying to keep prices down for the consumer. even it is for something that i would not describe as a necessity. it is more of an accessory. i thought of that of myself on- the-fly. tapestry could prove there is a huge amount of choice in the category. they would make a strong case. but it needs to be a big deal to make as much is money for shareholders. and after the close, tech this is one of the three content delivery technology companies. the other two are both disappointing horribly. wall street thinks here could be slowdown in his department. but what if there is no slowdown? what if they could take shares from cloud. the problem could be the equivalent wager. finally on friday my favorite report provided some skepticism.
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and this gives it a 7.3% yield. i think the dividend is safe. but we need to see more growth. that is what i want out of a stock. i hope for next week. we do not get sidetracked by different officials that i cannot resist. they cannot resist talking. and the confusion that they give us by talking about the next move is just to rent us. it is pretty much for everything and everyone. you know, it is amazing that they are allowed to talk about the economy. have you ever seen at the supreme court justice talk about ongoing cases in public? that would be a huge scandal. but the bottom line is that now is that the economy is having a slowdown. we need to worry about the fed coming our enemy again. we can go back to the glorious mode at least for a few days. with employment numbers. and i say we go to brad in texas.
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>> hello, kramer. how are you? >> i am great. >> the last time was about nrg at $29. it is now over 100%. >> i like that. congratulations. >> and the ceo of that one coffee company. i do not remember who it was. it does not matter. but san antonio has the most locations in the country. i physically went to all 28 locations. i spoke to the orkers. the line does not stop. the experience is a 10 out of 10. customer experience, 10 out of 10. collar workers are here every day. with 177 million total shares in 69 million share pre-flow. with a 10% short. and earnings coming up. how do we heal about dutch brothers? >> let me give my one problem with dutch brothers.
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every time it lifts its head there is some insider selling. but i share your appreciation. but remember, i say it is gotten a bit crowded. with the labor report behind us we are back to stop it for a couple of hours. and last night you called and i looked at the stock closely. and i am giving you my take. and the travel has been a dependable theme. now that a few companies. and generally, that ell 6%. if you are turning in the top and bottom line this week. and it should investors take this opportunity or get out? let us talk to the company's top brass. stay with me.
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and they're all coming? those who are still with us, yes. grandpa! what's this?
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your wings. light 'em up! gentlemen, it's a beautiful... ...day to fly. i watched it drop steadily. now it is 89% dividend. they have good food, and good management. >> i know. let me do this. i myself have been amazed that the stock has dropped like a rock. i am amazed they can cover that
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dividend. we are going to do some work on that. i used to read back nto it. it has been horrendous. so we will come back and do that. kevin from missouri asks and you shall receive. and a great question last night. in fact i have done some homework about cracker barrel. the restaurant change with the retail. it is usually off-highway locations. like i said in the old days it was a great stock. for 4 decades. and it is steadily marched higher. i used to coffee talk about it. do you use to see it go up all the time. but during the financial crisis it was a medical horse. from $10 in late 2008 to $10 in late $2008-$185 in the late 2018. that is just 10 years. but however, an epidemic hit. stack to get. but april 2021 it was back to pre-covid levels. like teflon. but now it has been rolling downhill. $56 right now.
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so what happened? when you think of the numbers it is clear. the pandemic had a weaker time. but they've had some regular growth for 2019. because the acquired maple street biscuit company. and that brand was the only real source of new store growth. more important, the earnings are still nowhere near with a 2019. because the profitability never recovered. these guys earn more than nine dollars per share in 2019. but this year, just $4.59 per share. that is substantially down. in the cash flow trajectory is similarly subpar. so what is the problem? first, consumers have been working towards quick service. rather than full-service restaurants like cracker barrel. the clientele is usually older. many people are on a fixed income they are more resistant to price hikes. but every other restaurant
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raised prices. cracker barrel has not done much. even though they have the same cost of inflation. also they only deduced this program late last year. they have not had success with younger people. and maple street biscuit can give them some growth. it is still too small to really move the needle. they are locked in. and cracker barrel is a company specific with issues. and in order to get people in and out of that is called throughput. cracker barrel with attached retail stores like the rocking chairs. so getting you out the door faster means that you are likely to purchase the stuff. and that is where the money is. that is why the stock is been a nightmare. but what are we doing with it now? first thing you need to know. it is understanding the problem. and the ceo is only taking over
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in november. she's only been on the job for 5 months. already signs of improvement from the latest report. cracker barrel saw improvement in traffic and sales. thank you to labor and marketing. she is worth it. but management got it from a meaningful decline. and if they continue to spend more money. wall street did not like that one bit. that was a bad forecast. they want to focus them on profitability. but this spending is part of the initial turnaround plan that she rolled out late last year. they are spending more on labor. but there's still a lot of work. but she wants to reposition the brand. bolster the marketing efforts. and on top of that, masino has new menu items as well as value oriented menu available on weeknights from 3 p.m. to 6:00 p.m. that is the senior citizen
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crowd. they can raise prices on the early dinner weight without losing too many people. finally find ways to reduce the labor needed to run the stories. that is a great deal to get the march is expanding. and on may 16, they hosted a strategic transformation of a call. we will hear more details. but frankly, i want to hear the plan. i need to wait. i cannot give it a full endorsement without listening. but i would say wait. there was one big caveat. when they called in about cracker barrel. the yield was at 9%. that is a great return to me. but that was only $150 million per year which is about one half of their expected free cash flow. they can cover the dividend. but now, the new ceo. do they want to pay it? with the new ceo in place with expensive issues in front of them. it would not shock me if cracker barrel cut the dividend. in order to free up some cash for investment i expect that to
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hurt the stock. keep in mind it is been selling for months because people need the dividend cut. on the other hand, it reconfirms this which is surprising. this stock good is war if the yield would be more reasonable. in the transformation. and perhaps risking the downside. but i want to recommend cracker barrel. i really do. i'm not quite there yet. i got comfortable. i am afraid of the dividend cut. yes, the company is come to terms with its structural issues. and also julie masino and her
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turnaround plan to sound smart. but before i pounded the table i need to hear what the ompany says in two weeks during the two strategic transformation update. especially on the dividend front. until we get more clarity on the dividend. we need to wait. there is a good chance we will find out what they're doing in two weeks. if they cut the dividend or keep it. and we will make up our minds. thank you to our collars. kevin, you are no longer the show mode. we are back. right after this break.
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last night we heard from expedia and booking holdings. they painted very different pictures. booking holdings rallied nicely. so what is going on with the travel business? for the last few years this is been one of the most reliable themes. the report came right back. parts of travel have changed dramatically. that is my take away from expedia. and marriott which also reported the travel business needs to check up right now. so let us check it and first marriott. that is a largely publicly traded hotel chain. spent most of april and it always delivered a solid quarter. better-than-expected revenue up by 6%. worse than expected earnings per share. the four year forecast was strong.
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the report was surprisingly light. and on the headlines, there were some disparaging trends i would admit. this is a key measure. that is revenue per available room. marriott was 2% year over year. that is 40 basis points lower than what they were looking for. occupancy rate was light. pricing was light. but not ideal. when i listed they talk about trends between domestic and the rest of the merit business. the company said the travel demand has normalized. it is a bad word. in the u.s. and canada. the post-pandemic is now over. but also the rest of the world is doing great. marriott international revenue is up by 11%. the 60.5% in asia pacific. international is on fire. and on this news, marriott stock fell a couple. but a nice bounce yesterday. but when i am focused on is the internal from domestic to
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international. that brings me to the two of my travel agencies that both reported last night. the short version is expedia bad and booking is good. that is a fair assessment. there is an important context. when you really drill down into these two. in terms of expedia the quarter was missed. not entirely a disappointment. but it was a little bit unnerving. which is what you expect from that stock. the bookings came in light of the revenue was better-than- expected. up by 8%. $.21 per share. even looking was not demanding. but this is what mattered. expedia home rental platform, vrbo and the airbnb knockout have some technical issues. it took the platform off-line. it was a sustained period of time. that was devastating. they are trying to migrate everything on the same platform. and it went wrong.
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however, expedia had good things about the rest of their business. and also some acceleration in the rest of our business to consumer. and the company expects to continue throughout the year. but because of the tech problems from vrbo, expedia cut its four year forecast. rather than double digit bookings, and expedia is looking at a mid to high single digit bookings growth. that is why the stock had absolutely pulverized. yes. let me ask you something. do they overreact? honestly, i would say yes. this appears to be just one official. and now it is a cheap stock. less than 10 times its earning estimate with plenty of growth for the next three years. but with these vrbo issues. the consumer travel . it is hard to get a read on the state of the issue from expedia. but the swing factor. the ceo is on his way out. they have a new ceo, kern. we have had him on the show.
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will be passing the rains to the previous head of expedia for business. and effective just 10 days from now. but that is not what i hope for. so would have to say expedia and booking holdings. but the star of the entire stock market. but perhaps even including apple. but booking grew by 10% year over year. coming in better. room was up by 9% total revenue. 17% earnings up 76%. all, better-than-expected. wall street was only looking for $30 but they gave you $20.39. not even the same zip code. that is where the stock just took off rallying by 3% today. booking is giving us some guidance. i am not too concerned about this because they will promise
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and over deliver. what is the key difference between booking holdings and expedia? expedia has a domestic travel. 63.5% from the united states. but booking is mostly international. just 11% from the united states. huge in europe. and marriott so that domestic is normal but the post-pandemic is still booming. asian rooms would went to mid- teens. during was up by the single digits. the president and ceo is on squawk box and this is what he had to say. >> we came out of the pandemic there was the revenge travel. it has petered out a little bit. more of a normal travel. asia is still recovering. which is why we had such a nice number last night to nnounce about asia. with the mid-teens growth over last year. that was more of a post- pandemic benefit. people want to travel or provide great services to them. >> i think i saw my book back there.
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i am not kidding. but putting it all together for marriott and expedia and booking. remain for travel is solid but leisure is waning a little bit. they are framing this as a normalization after some big ears. that is a fair description. but the global travel shows growth. the recovery started later is unfolding more slowly. and take us to international travel. for this incredible thing i do not want to lose. just there are different times from six months ago. the international oriented could keep working with the domestic bookings and hotel chains are a worse spot. that is where we are right now. i want to take calls. let us go to true in idaho. >> i am a charter member of the investment club. >> great. we are going to keep delivering for you. >> i'm trying to ask about the stock that started. i started volunteering covid. closed today at 15.
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the synergy is and an opportunity or trap? >> look. if you're going to go down that area? win for because you know what you want to go draftkings for gambling. those are the two that i'm offering. i would like to go to peter in new hampshire. >> how are you? and thank goodness it is friday. >> i have nothing at all this weekend i'm pathetic. what do you have cooking? >> some extra work. hopefully getting some kid outside. >> remember you want to go for the 12 force. there are only 11. go ahead. >> i am looking at stl a. i get in for a ouple of dividends. however, it retracts by 25%. >> yes. the quarter was not that good. i was surprised. they have been as consistent as
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can be. i would recommend that you do this. it would be nuts if they're not doing a buyback. it is not bad but i was surprised they did not deliver on the quarter. the travel theme is still has legs. but you need to consider international oriented like american express. compared to the domestic counterparts. and does this energy tech have what it takes to power your portfolio? i'm giving the latest. apple. there was one aspect that is not being mentioned at all. and i think it is a tremendous potential. i will reveal what it is. stay with us for the lightning round.
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[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. ♪♪ ♪♪
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there is some big business taking batteries for renewable energy. he reported a top to bottom of the stung. the residential businesses is likely doing worse this year. they were being offset by fewer years in the commercial and industrial side of the business. and the stock is made up most of the ground that was lost on wednesday. and the market shares reaction or is this the chance to >> reporter: the register? let us check in with the chairman and president ceo. welcome back. >> how are you? >> i been thinking a lot about you and your position. the one thing that we know. because of global warming and climate change. everything is not only unpredictable. but it is unpredictable to the
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extreme. that makes me want to know. how can you possibly make a forecast when you're in the most high risk forecasting job in the world? >> it is a tough business. and it always has been to forecast. there are things that happen that are out of our control. but we have to be prepared for when they happen. and i think the one thing that we can say about the forecast. we know that power outages are going to happen. because they been having for the last couple of decades at a higher rate. which is to not know hen they are going to happen or where. other than that, we are in good shape. >> you talk about the idea that we are seeing events that used to happen just once every 100 years. now they are happening every five years. how is that possible? because of extreme climate change. >> absolutely. the science is clear here. temperatures are warming, air and water is warming. this is leading to a greater range of severe weather. everything from hurricanes to ice storms but also about heat
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waves and droughts. you are talking about flooding it. all these things are having a major impact on the infrastructure the company. including the power grid. >> at the same time, you are aware of this. it seems like everything cannot even have one minute down of power. we have so many different things that cannot possibly go off. they would really go wrong. this is different than 10 years ago. >> pick up everything in your home or a business. the loss of powertoday is much more than just an inconvenience. you are talk but a loss of productivity and your ability to work. how many people are working from home today? even a hybrid work schedule. you cannot even do that if the power is out. and it will electrify everything and transportation. he will not be able to take your car out of s not charged.
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we are putting in heat pumps, electric ranges and stoves. trying to get rid of gas appliances. the more that we electrify things the more this is going to become a problem. people have a backup strategy. >> will i be in a situation because i have things that cannot go down. i have to start thinking about my power company. perhaps they can my power company has had a lot of irregularities. i cannot afford to be there without a generator? >> absolutely. this is the decision that everybody has been taking. whatever it is in your life, everyone has something that is so important to them from a power standpoint. they cannot risk interruption. they cannot depend on a single source for power anymore. you have to have a backup. it could be a generator, or a battery. it all depends on your needs and your situation. >> when i look at some of the people. we have this great guy that said 50% of our power is going to come from renewables. 25% will be solar and 20 from wind. and 100% nightmare. sometimes it is not sunny or windy. what else to do then have a generator? >> this is a real problem.
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the grant things is that -- the grid is changing. and utility is going solar. it is coming in right on par for a cost perspective with some of the traditional thermals that we have used such as thermal and gas. but the good news. the bad news is those new nobles are intermittent. the very nature of that word they do not operate 24 seven. how do you cover that gap? it is becoming incredibly complex for utilities and grid operators to balance supply and demand. demand spikes occur in the middle of the day or on a weekend. need to be ready for that. today they use reserve margin. it is the amount of production over the peak demand. the reserve margins have slowly been shrinking. this is before we even get to the explosion that is ai. >> yes. we are all at that point. how about this notion that people are losing interest in your ev. what does that mean for
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generac? >> today, the ev penetration rate is going to slow a little bit. driven ev charging product. it is not a huge part of our business. it is an important part of our ecosystem. more people electrify everything in the home including the transportation. i think it is going to be through a period where it slows down. but it was speed back up. in the end the internal combustion vehicles and internal combustion cars and trucks are converting to ev. there is going to be an ev charging long term. >> what do i do in this situation where i been sending power to the utility. the utility says i do not need any more power. where do i put that power that i was sending to the utility? >> put it in a battery. you can still have your system. you are exactly right.
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utilities are saying i do not want the power. or i'm not going to pay you as much for that power as i would've paid you one or two years ago. this is going on in california and other states. they are changing reimbursement rate. because of what is producing your own power during the day. they cannot purchase it from you and have nobody to sell it to. but if you put it into a battery. you can save that for later and discharge that battery as the sun was setting. your solar production curtails. bring the battery online. now you are self-sufficient and yours and se your own power that you generated during the day. instead of purchasing it from the utility. >> that is good. one last thing. what is ai doing in the process of electricity? >> so, ai is incredibly incredibly energy intensive. we are just on the tip of the iceberg. but a single jet gpt request takes 17 times more power and
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more energy intensive than a google search. think of that for one second. one chatgpt discussion the 17 times more. the amount of power that ai is going to consume through data. data centers are coming online for the next five years. it is going to be the equivalent of adding 40 million households to the u.s. grid. we are not prepared for it. >> that is insane. i must have done 100 searches today. personally, my footprint was get gigantic today. >> massive. >> look. you are just a breath of fresh air. and i love my generac. as much as i love my power company. because they are inclusive. and thank you the generac president and ceo. thank you for coming on. >> thank you. we are back after the break.
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it is time. are you ready? glenn in florida. >> good evening and thank you for taking my call. the stock that i'm looking at is
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for healthcare. >> last quarter good. i know it is been uneven. it is been a great long-term worker. sharon in minnesota. sharon? >> and i really appreciate it. what i want to tell you is thank you so much to rescue pets. >> my daughter is doing cats. i'm doing dogs and she is doing cats. >> great. but my question is about villanova. it is really shutting up or is it the future? >> this is an interesting thought. because right now it is when natural gas distribution. i know people are going to talk it about nuclear. believe it or not natural gas is very strong. i think the stock is a purchase but it could not be the environmental play that people think it is. and now south carolina.
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>> hello, jimmy. and i would like your opinion. >> it was not the fact that i fear government investigation i would say to purchase it because they on this market. but the government does not want them to on the market. market in wisconsin. marker? >> dr. kramer. >> i have a stock for you. but i need more interest if you had the insight or the guidance as to who might win tomorrow's kentucky derby. >> it will not be mainstay. i am not really allowed to offer that type of advice. but i am going to be making my bed. you can check on twitter. >> okay. this tech is in the i.t. sector and is not making money. >> the last two quarters have been terrific. schroeder has done a remarkable
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job. it has been going higher and higher and higher. and i think that martin is going to continue to deliver and it is a good delivery. a good opportunity. let us go to joe in new york. joe? >> what is happening? >> i'm looking at this stock. >> if you want to own a very expensive enterprise software company. you can on this. because it is a really good company but it is really expensive. let us go to deborah in connecticut. deborah? >> hello coming thank you for taking my call. this is my first time. >> excellent. >> i would like to get your thoughts on dorian. >> it seems so cheap. my problem is that i've never made any money with these shipping stocks. it is almost like i'm a jinx. i know that it looks like it is going higher. but i had to stay away. because
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i cannot value them correctly. let us go to county in california. connie? >> hello. now is a good time to purchase api? >> they got bought. it left only apa as the one that i thought was one to be bought. because it is too much natural gas. i will send you to my favorite. and that is our lightning round. a vision for the future. apple, after the break.
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apple stock is a complex beast. there are so many variables. and thank you to last night's quarter it rallied. they should read the positive response. to the 110 in billion-dollar buyback. but they explained that the scale of the buyback is less about the stock and more about the apple attempt. at $150 billion at the end of the quarter. the currently have $105. in is in line with what you would expect. what they have given you. is that ceo tim cook judging at the stock is overwhelmingly
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cheap. i think apple is because the chinese sales defined the coasters. and he keeps tracks of these things are the two best sellers were the iphone 15 and the iphone 15 max. and they went from bad to worse but it actually improved. i thought was finding it very encouraging. and it also helped apple with double-digit growth. that is a heck of much better than what would expect if you were listening to the skeptics. that apple was a no growth company from a 1%. but these numbers out of the way, the stock is pretty clear. first, the all empowerment developers talk and the launch of the new phone. because of all of the ai that will be loaded into it. cook has ensured me that i love the android which is also very impressive. i will go crazy for the apple take on the ai. also, no surprise was the vision pro.
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do you for this new device that had just come out. i cannot find a single word in the wall street research even mentioning this $3500 gadget anywhere. nowhere. but i did read that a computer media on how it is a bust. as the pc gamer said today in a vicious headline. horribly negative story more than one half of the fortune one at companies have bought units. so at least sold 50 of them. but for the record i am going to be entirely different. i'm hearing that the vision pro and the space computing are both with the enterprise. and the business to business applications are going to be used in all sorts of industries. i cannot stress how important this is. when i went to the event two months ago i saw the vision pro hooked up to the supercomputer. let me check out a nissan without leaving the room. but it was just a chair but it works just as well.
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but i would have not had to leave my house. i understand that the consumer might not be crazy about this $3500 headset. but the vision pro is going to be an expensive toy that can be used for flying across the country and watching a movie nothing else but i keep telling you. spatial computing is the enterprise. it is the only consumer product for those with a lot of money to burn. attached to a video and on the diverse the business applications are endless. really bountiful. you can use it to create digital in var to solve the potential problems. in real life. any company can construct this. that is the largest total market in the world. most likely demand that all involved will be wearing a vision pro. they can build things together saving time and energy reducing waste. hospital is perfect. selling cars is amazing. homes, perfect. i think the joke is going to be
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retired next year. when the enterprise adopts it. and hundreds of thousands are at a high price .in which this would be an actual needle mover for apple. be ready. the possibility is not baked into the share price at all. vision pro laugh now, pay later. and there is always a summary. we will see you monday. right now on last call, biden's economic dilemma . what today's jobs report could mean for inflation and is chances of reelections. lights, camera, but no action. paramount's long-awaited deal with skydance appears in jeopardy at this moment. we have the latest. woodstock for capitalists. what to expect from tomorrow's first annual meeting without the legendary late, great, charlie monger. ceos going on a buying spree. we will reveal which executives are betting on themselves in a big way. just days away

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