1 00:00:00,800 --> 00:00:04,040 Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside 2 00:00:04,040 --> 00:00:06,920 Speaker 1: my co host Matt Miller. Every business day we bring 3 00:00:06,960 --> 00:00:11,520 Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along 4 00:00:11,560 --> 00:00:15,600 Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast 5 00:00:15,600 --> 00:00:18,479 Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and 6 00:00:18,480 --> 00:00:22,919 Speaker 1: at Bloomberg dot com slash podcast. My question is where 7 00:00:22,920 --> 00:00:27,360 Speaker 1: do we go with these markets in I'm gonna spend 8 00:00:27,360 --> 00:00:29,440 Speaker 1: the next you know, some of the next few days 9 00:00:29,480 --> 00:00:31,680 Speaker 1: of you know, getting some free time to maybe read 10 00:00:31,680 --> 00:00:35,239 Speaker 1: some of those forecasts for an outlooks for Let's check 11 00:00:35,280 --> 00:00:37,920 Speaker 1: in with a professional here, Marked Oubting, Chief Investment Officer, 12 00:00:37,960 --> 00:00:40,920 Speaker 1: Blue Bay Asset Management. Mark, thanks so much for joining 13 00:00:41,000 --> 00:00:44,040 Speaker 1: us here. Heck of a one, we've still got another 14 00:00:44,080 --> 00:00:46,240 Speaker 1: month or so ago, but just looking at the equity 15 00:00:46,280 --> 00:00:52,319 Speaker 1: induicries for example, another just stellar year of performance from 16 00:00:52,320 --> 00:00:56,480 Speaker 1: a risk asset perspective. How are you envisioning two at 17 00:00:56,480 --> 00:01:01,160 Speaker 1: this point? Yeah, so it's it's certainly been a strong 18 00:01:01,240 --> 00:01:04,400 Speaker 1: use for risk assets in one, following on from a 19 00:01:04,480 --> 00:01:07,480 Speaker 1: very good I guess the concern that I would have 20 00:01:07,520 --> 00:01:10,520 Speaker 1: as we look forward into two is that one of 21 00:01:10,520 --> 00:01:12,920 Speaker 1: the big factors that's been pushing markets up, of course, 22 00:01:12,959 --> 00:01:17,000 Speaker 1: has been the liquidity coming from global central banks, and 23 00:01:17,040 --> 00:01:20,000 Speaker 1: with policy now starting to turn, with the FED tapering, 24 00:01:20,560 --> 00:01:23,479 Speaker 1: with the FED likely to to raise rates, we think 25 00:01:23,520 --> 00:01:26,240 Speaker 1: a couple of times in two. We do think it's 26 00:01:26,240 --> 00:01:28,640 Speaker 1: going to be a much more challenging landscape next year. 27 00:01:28,720 --> 00:01:31,920 Speaker 1: So in terms of beta returns, a much more subdue 28 00:01:31,959 --> 00:01:36,520 Speaker 1: market we think in UM and potentially one which is 29 00:01:36,520 --> 00:01:38,680 Speaker 1: going to be a bit more volatile as well as 30 00:01:38,720 --> 00:01:41,600 Speaker 1: central banks step back, expect to see a bit more 31 00:01:41,680 --> 00:01:45,320 Speaker 1: volatility and markets. And you mentioned, of course that the 32 00:01:45,400 --> 00:01:47,240 Speaker 1: risks here is that a lot of the valuations of 33 00:01:47,360 --> 00:01:52,600 Speaker 1: liquidity driven and we have issues about margins and COVID perhaps, 34 00:01:52,680 --> 00:01:57,120 Speaker 1: but maybe the bullish case, just to be devil's advocate, perhaps, 35 00:01:57,160 --> 00:01:59,320 Speaker 1: is that saying that yeah, there might be peat growth, 36 00:01:59,680 --> 00:02:03,000 Speaker 1: but that doesn't mean that it's doesn't mean low growth, 37 00:02:03,040 --> 00:02:07,800 Speaker 1: does it. They're not necessarily the same things, that's correct, 38 00:02:08,120 --> 00:02:11,080 Speaker 1: And look, exty markets do love to climb a wall 39 00:02:11,120 --> 00:02:15,280 Speaker 1: of worry, so um, I guess many people have tried 40 00:02:15,320 --> 00:02:18,440 Speaker 1: to to write stocks off before uh and I do 41 00:02:18,520 --> 00:02:21,160 Speaker 1: think we live in a financial sort of landscape where 42 00:02:21,160 --> 00:02:24,760 Speaker 1: there is inflation in the presence of inflation, it's it's 43 00:02:24,760 --> 00:02:28,480 Speaker 1: difficult to own cash, it's difficult to own a lot 44 00:02:28,520 --> 00:02:31,680 Speaker 1: of sort of high quality fixed income. So as a 45 00:02:31,680 --> 00:02:34,760 Speaker 1: allocators haven't got too many places to go. And of 46 00:02:34,800 --> 00:02:38,079 Speaker 1: course equities do have the protection of the fact that 47 00:02:38,160 --> 00:02:43,160 Speaker 1: earnings will grow in line with prices, and so from 48 00:02:43,200 --> 00:02:45,480 Speaker 1: that point of view, I still think we're looking at 49 00:02:45,480 --> 00:02:49,720 Speaker 1: healthy earnings growth in a context of two. And from 50 00:02:49,720 --> 00:02:52,480 Speaker 1: a growth standpoint, I think we can look forward to 51 00:02:52,560 --> 00:02:55,919 Speaker 1: soon continued recovery of the global economy as we move 52 00:02:55,919 --> 00:02:59,639 Speaker 1: away from the pandemic. All of these are obviously plus factors. 53 00:03:00,240 --> 00:03:02,280 Speaker 1: I guess the one thing that you would say is 54 00:03:02,320 --> 00:03:05,080 Speaker 1: that the wind which has been blowing on your back 55 00:03:05,639 --> 00:03:07,720 Speaker 1: in terms of given you a boost in terms of 56 00:03:08,360 --> 00:03:12,640 Speaker 1: liquidity and policies or is now starting to turn, and 57 00:03:12,720 --> 00:03:15,799 Speaker 1: that that children starting to blow into our faces as 58 00:03:15,800 --> 00:03:19,200 Speaker 1: we moved into two and Mark, you mentioned earnings, and 59 00:03:19,400 --> 00:03:22,200 Speaker 1: you know you've just come through a stellar third quarter 60 00:03:22,360 --> 00:03:25,040 Speaker 1: earnings period, and you know, I guess the question is 61 00:03:25,680 --> 00:03:29,480 Speaker 1: was it enough? And are the profit outlooks enough to 62 00:03:29,600 --> 00:03:33,000 Speaker 1: allay valuation concerns that I think a lot of investors 63 00:03:33,040 --> 00:03:36,800 Speaker 1: do have. Yeah, well, it really was a very good 64 00:03:37,080 --> 00:03:39,600 Speaker 1: scenes and and we we don't think we're done with 65 00:03:40,000 --> 00:03:42,920 Speaker 1: good news in terms of earnings. I think the one 66 00:03:42,920 --> 00:03:45,040 Speaker 1: thing that you would look at, maybe as an equity investor, 67 00:03:45,160 --> 00:03:47,440 Speaker 1: is that you're you're looking at long dated bond fules 68 00:03:47,480 --> 00:03:53,240 Speaker 1: as effectively equities are long duration assets. You're you're discounting 69 00:03:53,320 --> 00:03:56,920 Speaker 1: cash flows over many years, given the very elevated levels 70 00:03:56,920 --> 00:04:00,480 Speaker 1: of PE. And in that context, if you do see 71 00:04:01,200 --> 00:04:03,360 Speaker 1: a move up in long dated bond yelds, that could 72 00:04:03,360 --> 00:04:06,240 Speaker 1: be the one thing which could strain those valuations to 73 00:04:06,320 --> 00:04:09,600 Speaker 1: a greater extent. Perhaps could also pumpt a bit of 74 00:04:09,800 --> 00:04:13,920 Speaker 1: a rotation maybe away from growth towards value. Perhaps, So 75 00:04:14,000 --> 00:04:16,479 Speaker 1: there may be some interesting thematics, but I do think 76 00:04:16,520 --> 00:04:19,640 Speaker 1: that the equity markets will probably take quite a lot 77 00:04:19,680 --> 00:04:21,800 Speaker 1: of their queue not just from what the FED is doing, 78 00:04:22,320 --> 00:04:24,520 Speaker 1: but rather than what the long end of the bond 79 00:04:24,600 --> 00:04:27,080 Speaker 1: market is doing. Yeah, and I think that's interesting because yeah, 80 00:04:27,160 --> 00:04:30,080 Speaker 1: stocks are expensive when you look at them, perhaps on 81 00:04:30,160 --> 00:04:32,280 Speaker 1: the PE ratios, but then when you compare them to 82 00:04:32,360 --> 00:04:35,000 Speaker 1: bonds they look a little bit cheaper. So it is 83 00:04:35,040 --> 00:04:39,480 Speaker 1: a confusing time for asset allocators. And in this confusing time, 84 00:04:39,520 --> 00:04:45,279 Speaker 1: how do you allocate Ino, Well, I think, per my 85 00:04:45,279 --> 00:04:47,599 Speaker 1: my earlier comments, I'll tell you with a degree of caution, 86 00:04:47,680 --> 00:04:49,480 Speaker 1: I think there has been a time where it wanted 87 00:04:49,560 --> 00:04:53,120 Speaker 1: to be uh sort of position inquired a bullish fashion 88 00:04:53,760 --> 00:04:56,080 Speaker 1: over the course of the past eighteen months. I think 89 00:04:56,120 --> 00:04:59,760 Speaker 1: it is a smart time now to take some risk off, 90 00:04:59,760 --> 00:05:02,000 Speaker 1: to take able to to honker down a bit and 91 00:05:02,040 --> 00:05:05,200 Speaker 1: actually be prepared to buy dips if you do see 92 00:05:05,279 --> 00:05:08,200 Speaker 1: dips occur in the months ahead, if you buy the 93 00:05:08,200 --> 00:05:11,279 Speaker 1: thesis that there's going to be volatility, I think maybe 94 00:05:11,279 --> 00:05:13,240 Speaker 1: you're you're you're you're happy to try and sort of 95 00:05:13,800 --> 00:05:15,960 Speaker 1: pick your moments to try and sort of add risk, 96 00:05:16,320 --> 00:05:19,320 Speaker 1: but otherwise act with a degree of caution. But I 97 00:05:19,320 --> 00:05:21,440 Speaker 1: guess the one thing that you say about the high 98 00:05:21,480 --> 00:05:24,120 Speaker 1: quality fixed income is that once upon a time we 99 00:05:24,200 --> 00:05:26,240 Speaker 1: used to talk about the risk free asset. Well, that 100 00:05:26,480 --> 00:05:29,560 Speaker 1: risk free asset now looks like more of a return 101 00:05:29,640 --> 00:05:33,760 Speaker 1: free risk given that rates of a nothing and obviously 102 00:05:33,800 --> 00:05:36,440 Speaker 1: yields are well below what we see on inflation. So 103 00:05:37,000 --> 00:05:39,400 Speaker 1: in many respects, I think it's hard to be underweight 104 00:05:39,440 --> 00:05:42,880 Speaker 1: stocks and overweight fixed income. You probably want to remain 105 00:05:43,000 --> 00:05:46,680 Speaker 1: overweight stocks, but I would perhaps be sort of rotating 106 00:05:46,680 --> 00:05:51,080 Speaker 1: towards more cautious names, more defensives, more and more valuation players. 107 00:05:51,120 --> 00:05:53,880 Speaker 1: For example, European banks I think are really cheap and 108 00:05:54,200 --> 00:05:56,400 Speaker 1: could do pretty well in a rising rate environment. So 109 00:05:56,440 --> 00:05:59,200 Speaker 1: there will be areas of the market that you say, yes, 110 00:05:59,240 --> 00:06:02,839 Speaker 1: these are ones that we gotta like, but otherwise I 111 00:06:02,880 --> 00:06:05,800 Speaker 1: think more of the cautious stance in twenty two. All right, Mark, 112 00:06:05,839 --> 00:06:08,520 Speaker 1: thanks so much for joining us. Really appreciate getting your thoughts, 113 00:06:08,760 --> 00:06:12,159 Speaker 1: your perspective on these markets. Marked doubting, Chief investment officer 114 00:06:12,240 --> 00:06:15,679 Speaker 1: for Blue Bay Asset Management, getting a little bit cautious 115 00:06:15,720 --> 00:06:24,120 Speaker 1: but still constructive and overweight on equities. Okay, you. We 116 00:06:24,120 --> 00:06:27,080 Speaker 1: had some retailers this morning, Gap and North from disappointing results. 117 00:06:27,120 --> 00:06:29,640 Speaker 1: They called out supply chain issues and that kind of 118 00:06:29,720 --> 00:06:33,520 Speaker 1: raises an issue for holiday spending going forward. If in 119 00:06:33,560 --> 00:06:35,279 Speaker 1: fact I go to a mall, and that is a 120 00:06:35,360 --> 00:06:38,640 Speaker 1: huge if will there be stuff on the shelf. Let's 121 00:06:38,680 --> 00:06:41,719 Speaker 1: check in with Elizabeth Ebert see I O advisory partner 122 00:06:41,760 --> 00:06:46,719 Speaker 1: for CpG Retail and Logistics for Infosis Consulting Influsis is 123 00:06:46,760 --> 00:06:50,839 Speaker 1: a huge company nine billion dollar market cap to stocks 124 00:06:50,880 --> 00:06:54,919 Speaker 1: up year to date. So these folks kind of have 125 00:06:55,040 --> 00:06:56,880 Speaker 1: their finger on the pulse here, Lizaba, thanks so much 126 00:06:56,880 --> 00:06:59,560 Speaker 1: for joining us here talk to us about kind of 127 00:06:59,600 --> 00:07:03,200 Speaker 1: white you're seeing from your retail clients as they try 128 00:07:03,400 --> 00:07:09,960 Speaker 1: to navigate this really unprecedented disruption in the global supply chain. Absolutely, 129 00:07:10,000 --> 00:07:13,239 Speaker 1: and and thank you very much for that introduction. After 130 00:07:13,360 --> 00:07:18,000 Speaker 1: last year, everyone was hoping that this year's Christmas season 131 00:07:18,160 --> 00:07:21,000 Speaker 1: was going to be, UM, a lot more predictable, we 132 00:07:21,040 --> 00:07:23,400 Speaker 1: are going to be past covid UH. There was going 133 00:07:23,440 --> 00:07:26,040 Speaker 1: to be a lot more certainty and transparency into what 134 00:07:26,080 --> 00:07:29,240 Speaker 1: the season was going to look like. And unfortunately, UM, 135 00:07:29,280 --> 00:07:33,200 Speaker 1: it's absolutely not that. So there's been a convergence really 136 00:07:33,480 --> 00:07:36,200 Speaker 1: of of covid UH. You have to remember, and I 137 00:07:36,240 --> 00:07:38,240 Speaker 1: think someone just said under the hood. Under the hood 138 00:07:38,240 --> 00:07:41,640 Speaker 1: of what supply chain problems include are are very much 139 00:07:41,680 --> 00:07:45,000 Speaker 1: the workforce issues, and supply chain does not have many 140 00:07:45,040 --> 00:07:49,520 Speaker 1: opportunities for working from home, so those roles are being filled. 141 00:07:49,560 --> 00:07:53,000 Speaker 1: Even with this morning's great employment numbers, the supply chain 142 00:07:53,080 --> 00:07:55,600 Speaker 1: roles are being filled very slowly, and that's very much 143 00:07:55,600 --> 00:07:59,120 Speaker 1: affecting what we see with retail and retailers are having 144 00:07:59,160 --> 00:08:02,960 Speaker 1: to pay more UM and the retail experience, what customers 145 00:08:03,000 --> 00:08:05,560 Speaker 1: are going to see in the stores is going to 146 00:08:05,600 --> 00:08:07,720 Speaker 1: be a bit more fraught. There's going to be more 147 00:08:07,800 --> 00:08:11,360 Speaker 1: challenges in and getting any associate help, There's going to 148 00:08:11,480 --> 00:08:16,320 Speaker 1: be inventory gaps, so there's there's really more headaches than 149 00:08:16,360 --> 00:08:18,120 Speaker 1: opposed to what we're hoping for at the end of 150 00:08:18,200 --> 00:08:20,680 Speaker 1: last year. UM. The other thing I'd like to point 151 00:08:20,680 --> 00:08:24,600 Speaker 1: out is that retailers stock and plan based on prior 152 00:08:24,680 --> 00:08:28,800 Speaker 1: year's performance. So last year was an unusual year, and 153 00:08:28,920 --> 00:08:31,920 Speaker 1: to plan over last year's performance and those trends and 154 00:08:31,960 --> 00:08:34,960 Speaker 1: have this year be completely off the rails in terms 155 00:08:34,960 --> 00:08:39,000 Speaker 1: of expectations. Some of those demand forecasting models are simply 156 00:08:39,200 --> 00:08:42,240 Speaker 1: broken again, and so there's just a huge amount of 157 00:08:42,280 --> 00:08:44,520 Speaker 1: uncertainty and that's going to be reflected really in the 158 00:08:44,600 --> 00:08:48,559 Speaker 1: customer experience through the holiday season. And of course it's 159 00:08:48,600 --> 00:08:51,199 Speaker 1: Black Friday coming up and blee Back intelligence saying that 160 00:08:51,240 --> 00:08:55,040 Speaker 1: are expecting robust holiday sales despite a lot of these 161 00:08:55,040 --> 00:08:57,400 Speaker 1: supply chain issues that we have a lot of items 162 00:08:57,440 --> 00:09:00,320 Speaker 1: are on the shelves if you go and see tailers 163 00:09:00,320 --> 00:09:02,520 Speaker 1: seemed to be prepared. But there are a few special 164 00:09:02,600 --> 00:09:06,720 Speaker 1: discounts and office this year, uh, and those don't seem 165 00:09:06,720 --> 00:09:09,040 Speaker 1: to be quite as eye catching. Is this all down 166 00:09:09,040 --> 00:09:13,800 Speaker 1: to the supply chain? Absolutely? And I think what is 167 00:09:13,800 --> 00:09:17,439 Speaker 1: the primary motivation with retailers and those promotions and um 168 00:09:17,559 --> 00:09:20,199 Speaker 1: you may have noticed I certainly have in in my 169 00:09:20,320 --> 00:09:24,000 Speaker 1: email is uh, Black Friday has seemed to be every 170 00:09:24,000 --> 00:09:26,520 Speaker 1: Friday for the past couple of weeks. Cyber Monday just 171 00:09:26,559 --> 00:09:29,439 Speaker 1: seems to be Monday. Um. But my sense of it 172 00:09:29,640 --> 00:09:31,920 Speaker 1: is is that retailers are simply trying to lock in 173 00:09:31,960 --> 00:09:34,640 Speaker 1: the sales as quickly as possible because as you think 174 00:09:34,679 --> 00:09:37,000 Speaker 1: about that supply chain with all of the different links, 175 00:09:37,080 --> 00:09:39,200 Speaker 1: those links are going to go right out to FedEx 176 00:09:39,200 --> 00:09:43,199 Speaker 1: and ups and those deliveries. Uh. Today there's announcements about 177 00:09:43,840 --> 00:09:48,239 Speaker 1: shipping deadlines on December fifteenth for normal, non expedited shipments. 178 00:09:48,800 --> 00:09:52,240 Speaker 1: So I think the the strategic objective with the retailers 179 00:09:52,640 --> 00:09:55,640 Speaker 1: is to move product as quickly as possible and then 180 00:09:55,679 --> 00:09:57,800 Speaker 1: if things managed to work out, as we're starting to 181 00:09:57,840 --> 00:10:00,600 Speaker 1: see some of the supply chain issues in the poor workout, 182 00:10:00,960 --> 00:10:05,520 Speaker 1: that hopefully that help the enthusiastic US consumer just keeps 183 00:10:05,520 --> 00:10:08,440 Speaker 1: on buying right through the holiday. Let's overall, what do 184 00:10:08,440 --> 00:10:10,280 Speaker 1: you what are your clients telling you about what they 185 00:10:10,280 --> 00:10:13,520 Speaker 1: expect here? For retail sales during this holiday period this year. 186 00:10:14,760 --> 00:10:18,120 Speaker 1: You know, they're they're feeling very positive and very robust. 187 00:10:18,160 --> 00:10:21,040 Speaker 1: They recognize that there's going to be some complexities with 188 00:10:21,120 --> 00:10:24,840 Speaker 1: the inventory management issues. Um what they've done is adapt 189 00:10:24,920 --> 00:10:28,640 Speaker 1: by maintaining more inventory and their distribution centers versus pushing 190 00:10:28,640 --> 00:10:30,959 Speaker 1: it out to stores, and that's going to push more 191 00:10:31,120 --> 00:10:34,520 Speaker 1: e commerce volumes or as a customer is in the 192 00:10:34,600 --> 00:10:37,760 Speaker 1: store than being to order from the store and ship 193 00:10:37,800 --> 00:10:42,640 Speaker 1: from from a warehouse. Um. So they're they're expecting robust sales. 194 00:10:42,800 --> 00:10:47,439 Speaker 1: Certainly they're expecting, um uh, the the inflation numbers to 195 00:10:47,440 --> 00:10:51,160 Speaker 1: to drive up the total sales numbers just simply because 196 00:10:51,200 --> 00:10:54,080 Speaker 1: things are a bit more expensive. But they are feeling 197 00:10:54,120 --> 00:10:57,200 Speaker 1: the ability to lighten up on the promotions and even 198 00:10:57,240 --> 00:11:00,640 Speaker 1: raise prices and still capture those sales. Elizabeth, thank you 199 00:11:00,720 --> 00:11:03,440 Speaker 1: so much for joining us. Really appreciate getting your broad 200 00:11:03,480 --> 00:11:06,640 Speaker 1: perspective of retail sales as we head into this all 201 00:11:06,640 --> 00:11:11,040 Speaker 1: important holiday shopping season. Elizabeth Ebert, c I, O advisory 202 00:11:11,080 --> 00:11:15,679 Speaker 1: partner for CpG Retail and Logistics at Infosis Consulting. This 203 00:11:15,760 --> 00:11:19,520 Speaker 1: Elizabeth was mentioning her clients expecting very strong retail sales 204 00:11:19,559 --> 00:11:22,200 Speaker 1: the challenges that we're seeing from the likes of the 205 00:11:22,240 --> 00:11:25,280 Speaker 1: Gap and the Nordstrom is to actually have stuff on 206 00:11:25,480 --> 00:11:31,400 Speaker 1: the shelf to meet that demand. President Biden this week 207 00:11:31,840 --> 00:11:35,559 Speaker 1: tapped the US oil reserves to try to bring down 208 00:11:35,640 --> 00:11:38,360 Speaker 1: the cost of energy, particularly gas at the pump. What 209 00:11:38,440 --> 00:11:39,959 Speaker 1: was interesting to a lot of people was, Hey, it 210 00:11:40,000 --> 00:11:43,679 Speaker 1: doesn't happen very often, and b there was some coordination 211 00:11:43,800 --> 00:11:46,440 Speaker 1: with some other countries out there suggesting that the this 212 00:11:46,480 --> 00:11:48,120 Speaker 1: could have a little bit more bite. But it kind 213 00:11:48,120 --> 00:11:51,120 Speaker 1: of goes to the whole issue of managing energy. Transitioning 214 00:11:51,440 --> 00:11:54,880 Speaker 1: to renewable energy, how is that going to play out 215 00:11:55,120 --> 00:11:57,920 Speaker 1: in a global economy. Let's check in with Nick blitters Wike, 216 00:11:58,120 --> 00:12:03,040 Speaker 1: chief executive officer and founder of UGE International. UG distributes 217 00:12:03,120 --> 00:12:06,760 Speaker 1: renewables to address the world's energy and environmental challenges. Nick, 218 00:12:06,760 --> 00:12:10,080 Speaker 1: thanks so much for joining us here. Where are we? 219 00:12:11,080 --> 00:12:14,920 Speaker 1: I guess in this transition to renewables, it seems like 220 00:12:14,960 --> 00:12:16,320 Speaker 1: we kind of had a little bit of a hiccup 221 00:12:16,360 --> 00:12:20,440 Speaker 1: here because boy, we still need the fossil fuels houses 222 00:12:20,480 --> 00:12:24,560 Speaker 1: playing out. Yeah, good morning. Um, Well, I think you know, globally, 223 00:12:24,880 --> 00:12:27,720 Speaker 1: the US now is number two to China in terms 224 00:12:27,760 --> 00:12:29,959 Speaker 1: of solo that's being deployed. I think the stat a 225 00:12:30,000 --> 00:12:33,080 Speaker 1: lot of people wouldn't fully appreciated that the last couple 226 00:12:33,120 --> 00:12:36,920 Speaker 1: of years U asked about of all the energy being 227 00:12:37,000 --> 00:12:39,439 Speaker 1: is told is solars. So solar is coming quick. Um, 228 00:12:39,440 --> 00:12:42,040 Speaker 1: it's not gonna get pent right away, but um, but 229 00:12:42,120 --> 00:12:45,960 Speaker 1: it definitely it's it's coming quick. Here. Um, we saw 230 00:12:46,440 --> 00:12:49,840 Speaker 1: a COP twenty six that there's still big divisions between 231 00:12:49,920 --> 00:12:54,760 Speaker 1: countries in terms of meeting targets. Uh. For instance we 232 00:12:54,760 --> 00:12:57,280 Speaker 1: saw with India and China, and also you know there 233 00:12:57,360 --> 00:12:59,640 Speaker 1: was no agreement on cobb impermits and what more do 234 00:12:59,640 --> 00:13:03,439 Speaker 1: you think needs to be done so that everybody is 235 00:13:03,480 --> 00:13:07,400 Speaker 1: more aligned? Yeah, it's a good question. You know, it's 236 00:13:07,400 --> 00:13:09,600 Speaker 1: funny you mentioned China and India, which are number one 237 00:13:09,600 --> 00:13:11,680 Speaker 1: and number three in terms of amount of solar being 238 00:13:11,679 --> 00:13:15,000 Speaker 1: installed these days. So you know, I think, Um, politically, 239 00:13:15,640 --> 00:13:18,160 Speaker 1: for whatever reason, the world's at a point where it's 240 00:13:18,200 --> 00:13:20,720 Speaker 1: having a difficult time coming together on some of these 241 00:13:20,720 --> 00:13:22,840 Speaker 1: big picture of policies. But you know, I think on 242 00:13:22,920 --> 00:13:26,000 Speaker 1: the ground, what we're seeing as solar, it's projected to 243 00:13:26,000 --> 00:13:27,800 Speaker 1: be eight percent of all new energy by the end 244 00:13:27,840 --> 00:13:31,160 Speaker 1: of this decade, and so I'm hopeful as people start 245 00:13:31,200 --> 00:13:33,559 Speaker 1: to realize that this decade really does belong to renewable 246 00:13:33,640 --> 00:13:37,080 Speaker 1: energy UM becoming the main source of energy, Hopefully people 247 00:13:37,080 --> 00:13:39,880 Speaker 1: will start to realize that UM, it's it doesn't need 248 00:13:39,920 --> 00:13:41,520 Speaker 1: to be as hard as some people maybe think, and 249 00:13:41,679 --> 00:13:44,439 Speaker 1: hopefully we can get together and set those set those priorities. 250 00:13:45,240 --> 00:13:50,679 Speaker 1: Is the US the leader in transitioning to renewables or not? 251 00:13:52,920 --> 00:13:55,240 Speaker 1: Or not? UM? Well, of course the US has always 252 00:13:55,280 --> 00:13:58,920 Speaker 1: had a great technology advantage, in an entrepreneurship advantage, I 253 00:13:58,920 --> 00:14:01,160 Speaker 1: would say, UM, and so on that basis, you do 254 00:14:01,240 --> 00:14:04,560 Speaker 1: see a lot of innovation from American companies, UM. And 255 00:14:04,920 --> 00:14:06,520 Speaker 1: I like to think of you g as as being 256 00:14:06,600 --> 00:14:09,240 Speaker 1: right within that right UM. And so you know, US 257 00:14:09,360 --> 00:14:11,520 Speaker 1: leads the world that I would say in a number 258 00:14:11,559 --> 00:14:14,319 Speaker 1: of aspects. Within solar UM. You know, I will say 259 00:14:14,320 --> 00:14:17,000 Speaker 1: though that China's installing about three times as much solar 260 00:14:17,040 --> 00:14:18,400 Speaker 1: as the US right now. So we do have a 261 00:14:18,440 --> 00:14:21,160 Speaker 1: long way to go. And in that transition period that 262 00:14:21,160 --> 00:14:24,680 Speaker 1: we're talking about towards renewable energies, there's also that question 263 00:14:24,680 --> 00:14:27,680 Speaker 1: of affordability for the likes of solar, for the likes 264 00:14:27,680 --> 00:14:32,160 Speaker 1: of wind, and how we get around that given those 265 00:14:32,240 --> 00:14:36,280 Speaker 1: cost issues well, you say cost issues, I would I 266 00:14:36,280 --> 00:14:38,680 Speaker 1: would take offense to had to be honest. You know, 267 00:14:38,720 --> 00:14:40,800 Speaker 1: at this point in time, solar has become the cheapest 268 00:14:40,800 --> 00:14:43,440 Speaker 1: source of energy and more and more places. Um, you know, 269 00:14:43,480 --> 00:14:46,760 Speaker 1: I think the use cases are are increasing quite quickly here. 270 00:14:46,840 --> 00:14:49,520 Speaker 1: So um, you know, a number of years back now, 271 00:14:49,800 --> 00:14:52,600 Speaker 1: residential solar became cost effective to a number of people, 272 00:14:52,680 --> 00:14:55,760 Speaker 1: but not everyone can install solar on their rooftop. UM 273 00:14:55,840 --> 00:14:58,520 Speaker 1: and so where we come in as we developed community 274 00:14:58,560 --> 00:15:01,760 Speaker 1: solar projects and in essence making it as easy for 275 00:15:01,800 --> 00:15:05,560 Speaker 1: anyone to get solar energy, just just like signing up 276 00:15:05,560 --> 00:15:07,840 Speaker 1: for Netflix and um. And so what we do is 277 00:15:07,880 --> 00:15:11,400 Speaker 1: the installed projects and then distribute that energy to subscribers 278 00:15:11,440 --> 00:15:14,520 Speaker 1: within a community, which typically tends to be utility zone. 279 00:15:14,560 --> 00:15:17,120 Speaker 1: And and our model is has been for years providing 280 00:15:17,160 --> 00:15:19,760 Speaker 1: cheaper energy to two people that we uh we sign 281 00:15:19,840 --> 00:15:23,640 Speaker 1: up Bloomberg. We actually have a partnership with Bloomberg. If 282 00:15:23,640 --> 00:15:26,200 Speaker 1: we announced back in the summer, or Bloomberg employees can 283 00:15:26,200 --> 00:15:28,280 Speaker 1: sign up and save ten percent on their energy bill 284 00:15:28,320 --> 00:15:31,360 Speaker 1: as well. So you know, solar and of course we're 285 00:15:31,360 --> 00:15:33,800 Speaker 1: we're focused and the cost here has come down so 286 00:15:33,880 --> 00:15:36,600 Speaker 1: much over the last decade that it is cost effective 287 00:15:36,640 --> 00:15:39,360 Speaker 1: for for many many people around the world. Now, Nick, 288 00:15:39,440 --> 00:15:43,360 Speaker 1: we've had a lot of UM fiscal stimulus. UM, We've 289 00:15:43,400 --> 00:15:47,560 Speaker 1: got the Build Back Better UH legislation coming through Congress 290 00:15:47,600 --> 00:15:49,960 Speaker 1: here give us a sense of kind of where the U. S. 291 00:15:50,000 --> 00:15:54,400 Speaker 1: Government is in terms of supporting UH, this transition to 292 00:15:55,040 --> 00:15:58,400 Speaker 1: renewable energy. Yeah, well, I would say that right now, 293 00:15:59,280 --> 00:16:03,720 Speaker 1: the the benefits of the fine administration winning for our 294 00:16:03,760 --> 00:16:06,480 Speaker 1: sector are finally kind of coming to fruition here. So 295 00:16:06,840 --> 00:16:10,240 Speaker 1: of course, we had the bipartisan Infrastructure Built signed into 296 00:16:10,280 --> 00:16:13,240 Speaker 1: law last week that includes about seventy three billion for 297 00:16:13,320 --> 00:16:15,520 Speaker 1: upgrades to the electric grid, which will have some knock 298 00:16:15,520 --> 00:16:19,760 Speaker 1: on benefits to renewable energy. But the Build Back Betteract 299 00:16:19,960 --> 00:16:23,880 Speaker 1: really is what focuses on the movement towards renewable energy. So, 300 00:16:24,160 --> 00:16:26,720 Speaker 1: you know, for solar, it provides a ten year extension 301 00:16:26,720 --> 00:16:29,800 Speaker 1: of the investment tax credit, something that was initially put 302 00:16:29,800 --> 00:16:33,640 Speaker 1: in place by by by President Bush Um but but 303 00:16:33,680 --> 00:16:35,680 Speaker 1: it's something that would give us a long term certainty 304 00:16:35,720 --> 00:16:38,160 Speaker 1: and there are some other benefits there as well. And 305 00:16:38,200 --> 00:16:40,840 Speaker 1: I think we've also seen a nice switch in terms 306 00:16:40,960 --> 00:16:44,680 Speaker 1: of UM, the US government's approach to trade UM. You know, 307 00:16:44,720 --> 00:16:47,120 Speaker 1: we've in the industry called it the solar coaster here 308 00:16:47,160 --> 00:16:50,280 Speaker 1: for a number of years because it's been a bit 309 00:16:50,320 --> 00:16:53,160 Speaker 1: of a target I think from different different governments in 310 00:16:53,200 --> 00:16:55,880 Speaker 1: the US and elsewhere. But it is the last two 311 00:16:55,920 --> 00:17:00,360 Speaker 1: weeks we've had three different trade uh things go through 312 00:17:00,680 --> 00:17:03,960 Speaker 1: that have made it probably cheaper for US to import 313 00:17:04,040 --> 00:17:07,000 Speaker 1: import solar panels um in the next in right year 314 00:17:07,040 --> 00:17:09,120 Speaker 1: and years to come here as well. All right, Nick, 315 00:17:09,240 --> 00:17:13,040 Speaker 1: very exciting, very interesting. Nick Blitterswike, chief executive officer and 316 00:17:13,040 --> 00:17:16,159 Speaker 1: founder of u g E International that is a publicly 317 00:17:16,160 --> 00:17:19,480 Speaker 1: traded company. U g E is the symbol trades in 318 00:17:19,680 --> 00:17:23,560 Speaker 1: Canada's got a market cap about sixty million dollars uh, 319 00:17:23,640 --> 00:17:28,240 Speaker 1: So very interesting there as they manage and distribute renewable 320 00:17:28,359 --> 00:17:32,280 Speaker 1: energy across the communities. And again it is a trend 321 00:17:32,560 --> 00:17:35,399 Speaker 1: that the folks of Nick Blitzwike have believe will be 322 00:17:35,480 --> 00:17:43,680 Speaker 1: a long term trend. This, folks, is the Conversation of 323 00:17:43,720 --> 00:17:46,320 Speaker 1: the morning. Mark Mahaney you know him as the senior 324 00:17:46,359 --> 00:17:49,760 Speaker 1: managing director and head of Internet Research Forever Core I 325 00:17:50,119 --> 00:17:52,560 Speaker 1: s I. I consider him to be one of the 326 00:17:52,560 --> 00:17:55,919 Speaker 1: best most thoughtful analysts out there on Wall Street. Discover 327 00:17:55,960 --> 00:17:58,760 Speaker 1: the Internet names for you know, twenty plus years since 328 00:17:58,800 --> 00:18:01,120 Speaker 1: the beginning of this whole thing we call the Internet. 329 00:18:01,119 --> 00:18:03,280 Speaker 1: He has also got a new book out entitled Nothing 330 00:18:03,520 --> 00:18:07,040 Speaker 1: but Net ten Timeless stock picking Lessons from Front of 331 00:18:07,040 --> 00:18:10,120 Speaker 1: Wall Street's top tech Analysts. Hey, Mark, thanks so much 332 00:18:10,119 --> 00:18:12,120 Speaker 1: for joining us. To really appreciate you taking the time. 333 00:18:12,200 --> 00:18:14,000 Speaker 1: I'm really fascinated to read this book as I was 334 00:18:14,040 --> 00:18:17,160 Speaker 1: an analyst for twenty years. I managed analysts for ten years, 335 00:18:17,200 --> 00:18:18,640 Speaker 1: so I can't wait to get a look at this thing. 336 00:18:19,240 --> 00:18:21,679 Speaker 1: What are some of the key lessons you learned in 337 00:18:21,720 --> 00:18:26,040 Speaker 1: your career picking stocks? Okay, well, thanks for the setup, 338 00:18:26,080 --> 00:18:29,360 Speaker 1: and I very much appreciate the opportunity to talk about it. 339 00:18:29,359 --> 00:18:31,600 Speaker 1: It's a new book, but it's also my only book. Uh, 340 00:18:31,760 --> 00:18:34,200 Speaker 1: it's uh. It's kind of a culmination of twenty five 341 00:18:34,280 --> 00:18:36,600 Speaker 1: years of looking at tech stocks, and one of the 342 00:18:36,720 --> 00:18:40,560 Speaker 1: single simplest but most important lessons is that the fundamentals 343 00:18:40,560 --> 00:18:44,119 Speaker 1: really do matter. I've seen cases where stocks and fundamentals 344 00:18:44,119 --> 00:18:46,200 Speaker 1: to be divorced near term, you know, for a couple 345 00:18:46,280 --> 00:18:48,679 Speaker 1: of months, but a long term there's no doubt in 346 00:18:48,720 --> 00:18:52,159 Speaker 1: my mind that stocks follow fundamentals. So that's stronger the 347 00:18:52,240 --> 00:18:55,119 Speaker 1: revenue growth, the larger the profit pools, the higher the 348 00:18:55,160 --> 00:18:58,480 Speaker 1: stock price. You find a company that can be materially 349 00:18:58,480 --> 00:19:01,280 Speaker 1: bigger three years down the road, and almost always its 350 00:19:01,280 --> 00:19:03,640 Speaker 1: stock price is going to be materially higher. So that's 351 00:19:03,680 --> 00:19:06,520 Speaker 1: kind of this one most important takeaway. And then in 352 00:19:06,600 --> 00:19:08,840 Speaker 1: terms of the the advice, and I try to really 353 00:19:08,840 --> 00:19:11,920 Speaker 1: feel through the initially of the successes and the failures 354 00:19:12,359 --> 00:19:15,080 Speaker 1: in in the Internet space, both my own stockpics. It's 355 00:19:15,119 --> 00:19:18,520 Speaker 1: also just the doxyconominally well, the Amazons and the Netflix 356 00:19:18,520 --> 00:19:22,280 Speaker 1: and the one that didn't eBay and Yahoo and uh 357 00:19:22,480 --> 00:19:25,080 Speaker 1: and grub Hub, names like that. UM. I tried to 358 00:19:25,160 --> 00:19:26,560 Speaker 1: draw some lessons and at the end of it, I 359 00:19:26,600 --> 00:19:28,920 Speaker 1: really had people try to focus on d h ds 360 00:19:29,000 --> 00:19:32,640 Speaker 1: dislocated high quality companies. I tried to describe what high 361 00:19:32,680 --> 00:19:35,200 Speaker 1: quality companies are and when to get them when they're dislocated. 362 00:19:35,240 --> 00:19:37,360 Speaker 1: And that's the one thing to keep in mind from 363 00:19:37,359 --> 00:19:40,400 Speaker 1: the book. It's that hunt for d h ds, well Mark, 364 00:19:40,440 --> 00:19:42,439 Speaker 1: if you look at valuations right now that they were 365 00:19:42,560 --> 00:19:45,320 Speaker 1: sky high, so earnings this isn't really going to need 366 00:19:45,400 --> 00:19:47,840 Speaker 1: to keep up, So how does that play into your 367 00:19:47,880 --> 00:19:52,040 Speaker 1: outlook as well? Well? UM One of the lessons I 368 00:19:52,080 --> 00:19:55,960 Speaker 1: also learned is that they have a title called evaluation 369 00:19:56,080 --> 00:19:58,879 Speaker 1: is in the eye of the tech stockholder. Valuation is, 370 00:19:58,920 --> 00:20:01,359 Speaker 1: of course an important factor, but I think it actually 371 00:20:01,359 --> 00:20:03,639 Speaker 1: should be one of the last factors you really want 372 00:20:03,680 --> 00:20:07,480 Speaker 1: to focus on finding high quality companies WE really that 373 00:20:07,520 --> 00:20:10,520 Speaker 1: really had platform potential, and then you know, when they 374 00:20:10,600 --> 00:20:14,320 Speaker 1: show that they've got an excellent track record or product innovation, 375 00:20:14,720 --> 00:20:17,840 Speaker 1: that they face large slams total addressable markets. I don't 376 00:20:17,880 --> 00:20:20,159 Speaker 1: want to say that valuation takes care of itself, but 377 00:20:20,720 --> 00:20:24,480 Speaker 1: and oftentimes can companies that can really scale, that can 378 00:20:24,480 --> 00:20:28,800 Speaker 1: maintain super premium growth called plus revenue growth for multiple 379 00:20:28,880 --> 00:20:31,399 Speaker 1: years from a position of scale, I think the market 380 00:20:31,440 --> 00:20:34,880 Speaker 1: generally ends up undervaluing those names. I think for many 381 00:20:34,960 --> 00:20:39,639 Speaker 1: years Netflix was undervalued, Amazon was undervalued because people weren't 382 00:20:39,680 --> 00:20:42,200 Speaker 1: able to appreciate just how they're how large their market 383 00:20:42,200 --> 00:20:45,280 Speaker 1: opportunities were, and how well they could execute against those 384 00:20:45,320 --> 00:20:48,880 Speaker 1: and sustain that premium growth. So that valuation is important, 385 00:20:49,000 --> 00:20:50,760 Speaker 1: but I don't think it should be the most important 386 00:20:50,760 --> 00:20:53,760 Speaker 1: factor when it comes to picking text stocks. Hey, Mark, 387 00:20:53,800 --> 00:20:56,320 Speaker 1: talk to us about management, Like I always thought of 388 00:20:56,359 --> 00:21:00,119 Speaker 1: my career that you know, management really does matter, or 389 00:21:00,119 --> 00:21:03,200 Speaker 1: even if you've got a great technology. I really need 390 00:21:03,240 --> 00:21:05,600 Speaker 1: to get in there and spend time with the management. 391 00:21:05,600 --> 00:21:07,960 Speaker 1: How do you think about that as you kind of 392 00:21:08,119 --> 00:21:13,000 Speaker 1: look at companies that you're going to cover. Yeah, if 393 00:21:13,040 --> 00:21:15,879 Speaker 1: you do, you you prefaced it perfectly. My factor is 394 00:21:15,880 --> 00:21:20,639 Speaker 1: actually called management matters UM and uh so it's one 395 00:21:20,680 --> 00:21:22,680 Speaker 1: of the most important criteriaon and determine what a high 396 00:21:22,720 --> 00:21:24,920 Speaker 1: quality companies. I'm not sure you can get a high 397 00:21:24,960 --> 00:21:27,399 Speaker 1: quality company that doesn't have an excellent management. So what 398 00:21:27,440 --> 00:21:29,280 Speaker 1: are you looking for? You're looking for companies that are 399 00:21:29,320 --> 00:21:31,840 Speaker 1: long term oriented management teams that are long term oriented. 400 00:21:32,160 --> 00:21:35,639 Speaker 1: I've always had a bias for founder led companies. I 401 00:21:35,720 --> 00:21:38,879 Speaker 1: just think that they're able to make a decisive decisions 402 00:21:39,400 --> 00:21:42,760 Speaker 1: in ways that professional managers just don't just don't have 403 00:21:42,800 --> 00:21:45,800 Speaker 1: the ability, the gravitas in order to do that division. 404 00:21:45,800 --> 00:21:47,680 Speaker 1: In order to do that, I love to see companies 405 00:21:47,720 --> 00:21:51,280 Speaker 1: with great vision. I think about Read Hastings and Netflix, 406 00:21:51,280 --> 00:21:52,880 Speaker 1: and I've always been struck by the fact that Read 407 00:21:52,880 --> 00:21:56,959 Speaker 1: Hastings started Netflix, and and the name itself conjures up 408 00:21:57,040 --> 00:21:59,960 Speaker 1: some sort of idea of Flix or movies film coming 409 00:22:00,040 --> 00:22:01,879 Speaker 1: over the internet. But it was a d D by 410 00:22:01,880 --> 00:22:04,680 Speaker 1: mail business for the next ten years. But Read absolutely 411 00:22:04,680 --> 00:22:08,439 Speaker 1: new retastings. Absolutely knew that the future was in streaming, 412 00:22:08,720 --> 00:22:11,480 Speaker 1: that we just needed the infrastructure and home WiFi systems 413 00:22:11,520 --> 00:22:13,680 Speaker 1: to be set up. But to have somebody who could 414 00:22:13,880 --> 00:22:15,760 Speaker 1: look out, you know that we had that kind of 415 00:22:15,760 --> 00:22:19,440 Speaker 1: basi in five or ten years and realize where home 416 00:22:19,560 --> 00:22:22,520 Speaker 1: entertainment was going. That was truly impressive. So you find 417 00:22:22,520 --> 00:22:25,920 Speaker 1: people like that who can kind of call correctly industry 418 00:22:25,960 --> 00:22:29,680 Speaker 1: pivots the new generation, the development of a new generation 419 00:22:29,720 --> 00:22:32,800 Speaker 1: of industries. That's really impressive. It's extremely rare. But if 420 00:22:32,840 --> 00:22:35,040 Speaker 1: you find those people, you want to stick with them. 421 00:22:35,080 --> 00:22:37,280 Speaker 1: And Mark, speaking of pivots in the industry. In the 422 00:22:37,320 --> 00:22:40,760 Speaker 1: future of tech, we've all been talking about meta metaverse 423 00:22:40,840 --> 00:22:43,199 Speaker 1: seems to be all the rage, even though it is 424 00:22:43,840 --> 00:22:47,960 Speaker 1: potentially years away. Even semi stocks have been rallying on 425 00:22:48,080 --> 00:22:50,879 Speaker 1: just the mention of this. Uh So, is that something 426 00:22:50,920 --> 00:22:54,879 Speaker 1: you think investors want to be thinking about getting mettos into. 427 00:22:56,400 --> 00:22:58,600 Speaker 1: I think so. I think it's going to be a Ritica. 428 00:22:58,680 --> 00:23:00,919 Speaker 1: I think it's going to be more options value, you know, 429 00:23:00,960 --> 00:23:04,800 Speaker 1: for theinic several years. Uh And you know, I think 430 00:23:04,800 --> 00:23:07,560 Speaker 1: it's gonna we're gonna be We're gonna I think it's 431 00:23:07,560 --> 00:23:10,440 Speaker 1: five to ten years before we really know what miniverse 432 00:23:10,560 --> 00:23:12,560 Speaker 1: is going to be. Like, I do think when you 433 00:23:12,600 --> 00:23:15,720 Speaker 1: find these large tech platforms, you want them to have 434 00:23:15,800 --> 00:23:18,439 Speaker 1: some sort of option value. You want them to have 435 00:23:18,640 --> 00:23:22,760 Speaker 1: some sort of long term investment um priority. Whether it's 436 00:23:22,800 --> 00:23:27,159 Speaker 1: alternaty and closing Google, whether it's robotics with them it 437 00:23:27,200 --> 00:23:29,800 Speaker 1: is not, whether it's metaverse with with Facebook. I think 438 00:23:29,800 --> 00:23:33,200 Speaker 1: it just makes the underlying asset more valuable. I also 439 00:23:33,280 --> 00:23:36,280 Speaker 1: think that in a way Facebook needs to invest in 440 00:23:36,320 --> 00:23:39,680 Speaker 1: the metaverse um because if there's something, if there's something 441 00:23:39,680 --> 00:23:41,960 Speaker 1: that's going to change our social networks and then they're 442 00:23:41,960 --> 00:23:44,000 Speaker 1: going to become what's called verse sold in they are today, 443 00:23:44,320 --> 00:23:47,119 Speaker 1: I mean, that could create systemic risk for Facebook. So 444 00:23:47,240 --> 00:23:49,399 Speaker 1: I think it's mostly an offensive investment, but there's a 445 00:23:49,400 --> 00:23:52,160 Speaker 1: little bit of defensivelopment to uh to it. I think 446 00:23:52,200 --> 00:23:54,840 Speaker 1: that given the amount of effort and energy and resources 447 00:23:54,960 --> 00:23:57,800 Speaker 1: dollars that are going into the metaverse, I would probably 448 00:23:57,880 --> 00:24:00,520 Speaker 1: I'm long the concept the winner is aren't going to 449 00:24:00,560 --> 00:24:03,200 Speaker 1: be determined. Cur five to tend is I think Facebooks 450 00:24:03,200 --> 00:24:05,920 Speaker 1: in a decent position, but that it's one to mark 451 00:24:05,960 --> 00:24:12,080 Speaker 1: what's your best idea for I like these dislocated. Um uh, 452 00:24:12,200 --> 00:24:14,639 Speaker 1: you know, high quality companies. And so there's three names 453 00:24:14,720 --> 00:24:18,400 Speaker 1: I think in megacap that are reasonably dislocated here. One 454 00:24:18,520 --> 00:24:21,240 Speaker 1: is Uber, which I still still think it's a great 455 00:24:21,240 --> 00:24:25,560 Speaker 1: recovery play. There's their racturing business is still below pre 456 00:24:25,680 --> 00:24:27,840 Speaker 1: COVID level, So I think there's a lot of recovery 457 00:24:27,960 --> 00:24:30,200 Speaker 1: juice in that stock. And I think it's a high 458 00:24:30,240 --> 00:24:33,000 Speaker 1: quality asset. It's not Founder let go. That's the one negative. 459 00:24:33,040 --> 00:24:35,760 Speaker 1: But but I think the rest of the huge end 460 00:24:35,800 --> 00:24:39,119 Speaker 1: markets really compelling value proposition. I still like Amazon and 461 00:24:39,160 --> 00:24:42,040 Speaker 1: the Facebook, I think, and I look at Amazon and Facebook, 462 00:24:42,040 --> 00:24:45,439 Speaker 1: both is reasonably dislocated stocks, high quality assets. When they 463 00:24:45,440 --> 00:24:48,520 Speaker 1: get dislocated, you should be adding or binding those Mark, 464 00:24:48,560 --> 00:24:50,840 Speaker 1: thanks so much for joining us today. I really appreciate 465 00:24:50,880 --> 00:24:53,399 Speaker 1: you taking the time. Mark Mahaney, he's a senior managing 466 00:24:53,440 --> 00:24:56,439 Speaker 1: director and head of Internet Research forever Core. I s 467 00:24:56,440 --> 00:24:59,640 Speaker 1: I he's got a book out now, is a new book. 468 00:24:59,640 --> 00:25:01,399 Speaker 1: It is his first book. As Mark said, it is 469 00:25:01,560 --> 00:25:05,720 Speaker 1: entitled nothing but net ten Timeless stock picking lessons from 470 00:25:05,760 --> 00:25:08,479 Speaker 1: one of Wall Street's top tech animals. And again, as 471 00:25:08,520 --> 00:25:10,480 Speaker 1: I can say, having been in this business for thirty years, 472 00:25:10,480 --> 00:25:13,479 Speaker 1: Mark absolutely is one of the top annials out there, 473 00:25:13,520 --> 00:25:16,120 Speaker 1: not just for tech but just in general. Very thoughtful 474 00:25:16,720 --> 00:25:20,200 Speaker 1: in his analysis and his approach to looking at stocks 475 00:25:20,200 --> 00:25:25,280 Speaker 1: and picking stocks. Thanks for listening to the Bloomberg Markets podcast. 476 00:25:25,680 --> 00:25:28,879 Speaker 1: You can subscribe and listen to interviews at Apple Podcasts 477 00:25:29,000 --> 00:25:32,920 Speaker 1: or whatever podcast platform you prefer. I'm Matt Miller. I'm 478 00:25:32,920 --> 00:25:36,959 Speaker 1: on Twitter at Matt Miller three. Pet On Fall Sweeney 479 00:25:37,000 --> 00:25:39,639 Speaker 1: I'm on Twitter at pt Sweeney. Before the podcast, you 480 00:25:39,640 --> 00:25:42,040 Speaker 1: can always catch us worldwide at Bloomberg Radio.