♪ welcome to "power lunch. and why am i smiling because i'm alongside kelly evans. welcome back. >> great to be back. >> it's just like riding a bicycle. nothing to worry about it. >> i can do it. coming up, huge stories in the tech space tons of apple headlines. washington targeting tech

platforms and stanley weighing in on ai we'll break that all down in just a moment. plus the future of the ad space. why amazon's approach to retail media could redefine advertising. first, a check on the markets. all three indexes up slightly with the dow higher right now by .03, that's 13 points s&p higher by 5 points nasdaq moving tore way by a little down 10 points. down big is disney after its results. streaming showing some improvement, the company's digital strategy may be helping out here. plus, telehealth plat tomorrow hims and hers higher after reporting strong revenue guidance. >> wow and on the tech front, palantir down big after reporting weaker than expected guidance, down 15%. we'll hit that name in three-stock lunch further ahead. speaking of tech, a new law aiming to hold tech firms accountable for online child abuse. emily wilkins has more emily? >> reporter: hey, tyler.

yeah, president biden is expected to sign a bill very soon that would hold big tech companies more accountable for crimes involving children that happen on their networks these are things like sex trafficking, grooming, enticing kids for sexual acts now currently tech companies do have to report child sexual abuse materials on their website. but the soon to be law would also increase fines for failing to report, exploitive content up to $1 million and also allow for evidence to be stored up to a year that's going to allow more time for investigations into these cases. and then allow more cases and evidence to be quickly sent between the national center for missing and exploited children and law enforcement. several big tech companies including google have come out in support of this legislation, but one of the bill sponsors, senator marsha blackburn said that social media companies are not doing enough to ensure all forms of abuse are dealt with. >> they have chosen the just turn that blind eye and not report it. and not police it, not clean up

their network. now, that excuse is taken away and they're going to have to look for this. >> reporter: blackburn is also hoping to pass some larger bills dealing with kids online safety require social media sites to develop tools and protections to keep kids safe, but several of the measures are caught up in a wider debate on data privacy laws and it's just not clear at this point, guys, whether we're going to see some more information this year or if this bill is kind of the biggest thing we can expect congress to pass in this space >> in any case, it seems to be a clear move in one direction. emily, thanks. joining us to talk more about the regulatory push, alex, the founder of big technology and cnbc contributor alex, just anecdotally speaking, there are events every week in my town that seem to be about kids and technology, teens and social media, anxiety, depression, and you name it. if that's any tell on what's coming, there's going to be a lot more than what we've seen thus far coming at big tech. >> definitely. look, i wouldn't say that

congress is ready to act across the board. they've been talking about the problems with these companies for quite some time. and they've taken some incremental action i do like this bill today. i find it to be more cooperative than necessarily antagonistic toward these companies requiring them to store this material for a year so investigators have time to work through it before it was just three months. i think this is a really positive step. if we're going to see more legislation, we're going to see good stuff coming on this front and i think this is a very good start. >> when you say good stuff, it's stuff supposed to help end users, i imagine what are the implications for the technology companies >> send a clear message. congress is saying f you're not going to clean this up on your end, we're going to push you towards it that could have been stronger. the bill could have been stronger for instance, maybe could have mandated that if there are nudes being shared on the platform, there's no way to forward them now the companies are really trying to figure out a way to do that on their own. but it's a signal to say, look,

you clean it up or we're going to force you to clean it up. here is step one and wait for step two. >> how would this apply to websites that may traffic in pornography or grooming or provide platforms for the same that are not based in the united states and are not per se social media companies? >> well, it's going to be tough for the u.s. congress to reach far outside the u.s. now, if your outside the u.s., say telegram, for instance, you might be able to skirt around these rules but there are also ways for the u.s. congress to come and sanction these companies. i think that they are taking this seriously and i think that if companies try to get cute around these type of things, this is a very serious issue. they'll find ways to punish them. >> i suppose if you were the operator of a browser, for example, you could block access to some of those overseas sights i guess that could be one way you would go about it. what are the likelihoods that

these pieces of legislation move through both sides of the house and the senate and move to the president's desk, alex >> well, we're already seeing this one that is basically ready to sign. that's a good sign to show that congress can act in a bipartisan fashion. if you think about the broader package of big tech anti-trust and big tech regulation, some of the problems we have seen up until now are still going to fester and i wouldn't expect a broad package of legislation to hit these companies, but i have to say, congress did something and that's more it's been doing recently so you have to hand it to them there. >> all right, alex let's pivot to apple the company announcing new tablets today at its let loose event. there are also reports they're developing ai chips for data centers. basically this was a push to get people to come to an updated ipad, a product that has not been updated in a couple years

how important is this as a revenue stream for apple, which, of course, makes most of its money selling phones >> it's a small revenue -- part of the revenue stream, but it's important. and the problem is for apple that it's been declining right? we saw in the most recent quarter, 17% decline in sales year over year partially that's responsible for the fact that they haven't updated the model in so long but i think the ipad is really suffering from this problem. where it's stuck in this in between stage. the phone is doing a lot of what the ipad was supposed to do. the actual laptops are doing the more powerful computing. today's event they tried to show you can edit movies and do things you might do on an laptop do you need a phone, an ipad and laptop i think that's a tough sell. >> you can clip a keyboard with an ipad to turn it effectively into a laptop with a touch screen let's talk a little bit about

their chips. and how important i believe it's called an m4 chip, which is supposed to be more accommodating to ai applications what do you know about that? and how important is that for apple? >> yeah. i think this m4 chip is huge what apple is doing today is setting up its wwc event in june where it will tell developers, i believe, we have the best technology to run ai applications on the phone. we just released this m4 chip. if you're going to build an ai app, build it on the iphone. it's not the same strategy that the rest of big tech has been taking sell to picks and shovels. sell the compute power for apple, an tiesment to developers to say we are going to be the platform you'll build this ai revolution on top of the m4 is the beginning of that. saying this is how we're going to differentiate our operating system having the best apps that run the ai. we have another report

surrounding the partnership between apple and rivian and phil lebeau is on set to talk about some of those details. >> this came out of asia talk about a potential partnership. immediately steve kovach with apple and me with rivian, we started running this up the tree didn't get any take at all i don't put any credence to this but it does raise the question, is apple completely done when it comes to the auto companies? remember, they have essentially shut down project titan. they're not going to plan on building a car adam jonas with morgan stanley brings up a great point in a note he put out today and essentially says this, although apple has confirmed it has nixed its apple car project, project titan, it does not mean there may not be any number of areas where apple's broader ai efforts could encompass the automotive value chain. is it possible that somebody in rivian in asia is having a conversation with somebody at apple? you bet. i would hope they're doing that. that's what auto companies are doing with tech companies every

single day so, this report by itself, no reason for the stocks to move higher, though you can bet that when rivian reports its results after the bell and during the analyst call, r.j. will get this question >> for rivian's case as well, didn't they have the ford investment that went sour. >> correct. >> so i can't imagine they're overeager to go partner with another major company. >> guess who owns a big chunk of rivian, amazon. >> oh, right. >> it's not like these guys are out in the wilderness of illinois and not interacting with tech companies. they are so, it's just that this report started moving the stocks before the market today you'll notice the stocks really haven't done much since then because it hasn't been fleshed out. there's no there there if you will. >> so the idea of the two working together, quote, on a car, no uptake there but the possibility that rivian might employ or work with apple on making apple software a technology -- >> there's apple car play out

there. >> absolutely. >> for sure. >> absolutely. or other products in the future. look, ai opens up number of opportunities not just through rivian but other automakers as well you can bet that apple, while it is not doing project titan, it is certainly still in communication with auto companies. >> i'm curious about rivian as well as we talked about tesla struggles lately, there's not enough demand to meet the supply of evs we thought there would be this time and point. but rivian still survived the challenge of higher interest rates and the initial period of plethora of start-ups. >> right. >> how does it stand now competitively speaking >> it's number two in the u.s. in terms of pure ev companies. the question becomes, will they have to raise capital between now and when the next product, the r2 comes out, which they're going to build in illinois that's not coming out until well into '26, probably start production late '25, early '26 then you start looking at, do you have the capital needed? they already said they're not going to build the plant in

georgia for now. eventually they plan to. that's where the r2 was going to be built cash preservation and getting through this period where demand is not as strong as many people thought it would be. >> alex, what do you think about the possibility of apple working in the car business in some way if not to manufacture an automobile >> yeah. i think that their project titan, the self-driving program they had, if it was worth anything, it would have been sold already i think it was worth so little they just decided to shut it down and cut ties with it. now i can see rivian seeing the improvements that tesla made and get on the phone with apple, that self driving thing, is that working anymore and apple being let's have a conversation about it that to me is as far as it probably got i think that apple and rivian could combine in an impressive partnership if apple car play's more deeply integrated into rivian cars. by the way, there's been all the rumors about apple one day could have had a conversation with

elon musk acquiring tesla and never did. is rivian a target with all that cash it has and need for growth? that's something to keep thinking about. >> interesting thought to leave it there on. alex, thank you. >> phil, thank you and emily wilkins who is long gone thank you her as well. apple is not the only company unveiling new ai hardware today deirdre bosa has more in today's tech check hi, dee. >> hey, tyler. google is taking a very different tact the latest pixel is a mid range phone starting at 499 bucks, that's cheap in the smart phone world. it includes some of the genai bells and whistles of pricier models becoming a feature of hardware ai upgrade cycles but to put this in context, this is small potatoes for google they claim less than 5% of the u.s. market. the real battleground, of course, is search as investors parse through every data point, every talking point for signs that gen-ai dominance.

speaking of that, love of chat bot the comments on squawk could be fodder for the bulls. have a listen. >> i love perplexity, although kids on the west coast weren't using chatgpt or goople anymore. they're using this thing called perplexity ai. so, i, of course, tried it out and it was just unbelievable it's an answer machine, but the speed but the depth of the answers and the quality and then the fact that they give you the sources, if you want to go deeper, it's nothing like i've ever seen. >> he added that there's a land grab going on in the answer machine business i like the ring of that. and it is, of course, a big test to take on google. now the latest numbers from stat counter suggest that google is pretty resilient people like druckenmiller, kids

and the west coast, they may use gen-ai chat bots over usual searches but most users are using google with search generative experience, sge, getting traditional users familiar with genai before fully jumping in on the cloud side, reprioritization of work within ai continues adding head count and building out its sales team. >> remind me, dee, what is google's principle venture or the tip of its spear into the consumer market with ai? is it gemini, what is it >> the fact that you are asking that question, tyler, kind of tells you everything you need to know it's not obvious it's not perplexity, not chatgpt. the answer is it's gemini. but, and this has tripped me up, sge, search generative experience is separate that goes into their search engine gemini is something different.

they're different teams within the organization and that there is part of the problem is that it doesn't really have this cohesive message with one chat bot that people know and use. >> deirdre, the sge thing you google something and now has all the drop-down arrows. >> yes. >> yes >> you're trialing it. i don't know, kelly, if you have to opt in or not. >> no, you don't. >> this is how they're getting people to -- >> i do it -- >> used to the chat bots. >> it's so funny it's uncanny you say that i've been using it lately. i ask it usually for recipes and i'll say, you know, give me something corn bread and it will say are you asking -- and it's kind of prompting me through it. and i'm thinking, i don't remember it being like this in the past. >> kelly, here is an important question for you, are you seeing advertisements >> no. actually -- i don't know i try to ignore -- conditioned to ignore them but i use perplexity all the time as well i love it. druckenmiller was exactly right. but the only friction i find is opening the app. so you just wonder at some point if i could just ask siri, hands

are busy so defaulted to go to google it's hard to untrain myself. >> everyone is starting to get your go-to chat bot. i'm chatgpt 4 girl myself, you like perplexity. >> my husband use chat or caleb. so many of them. deirdre, thank you we appreciate it. >> thank you, kelly. >> caleb, alexa -- >> there's a name for -- i can't think of it. speaking of ai, morgan brennan sat down with honeywell ceo. he weighed in how he sees the industrial sector. >> when we talk about ai, revenue risk when they can't produce something more, can't maintain something properly. potentially a risk of production loss or operations loss. and this really, you know, mitigates risk for them. so for us, it's a top line and not a bottom line reduction strategy >> more of that interview is coming up on closing bell overtime at 4:00 p.m. eastern.

meantime, coming up right here, bernstein's sober thoughts the firm out with a new note explaining why gen z tends to gravitate away from drinking. first as we head to break a first power check on the consumer side. kenvue says it sees ample runway for the china business on the negative side, builder's first source, reporting 22% decline in first quarter profit. that is your power check for this hour. we'll be right back. trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more - all crafted just for traders. and with guided learning paths stacked with content curated to fit your unique goals,

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welcome back some new exclusive cnbc data showing younger generations are not very optimistic about the economy. our youth and money survey finds that 44% feel bad about the job

market 68% feel homes arenot affordable well, one thing younger americans are not apparently spending as much income on is alcohol. inflation could be partly to blame but bernstein says there's more to it laying out a few reasons why gen z is drinking less in a new note, naydean joins us to discuss welcome. good to see you. how much less are gen-z people drinking and is there any suspicion that once they pass through this phase of dryness, let's call it, they might return to what we would say more traditional drinking patterns? >> thanks for having me. that's the question on every investor's mind. underage drinking has been falling in the u.s. for decades. this is great but not new and shouldn't be what investors

focus on what is new is that over the last few years 21 to 22-year-olds have been seeing modest declining alcohol consumption. yet over that period, the frequency of drinking amongst 23 to 30-year-olds has held constant so crucially, this implies once younger consumers enter full working adulthood, they appear to revert to historical trends in consumption patterns for now. >> so, let's ask what is, if anything, remacing traditional alcohol as the intoxicant of choice, if anything, or is this more a movement toward i want to take care of my body i don't want to put things into it that could potentially damage my body? >> i would not say intoxicant of choice i like to say social lubricant of choice. great question >> fine with me. >> what's driving the reduction in that 21 to 20-year-old cohort a couple of things to highlight.

first the awareness about risks of alcohol has increased over the last decade. and that's especially driven by younger consumers. but the data is mixed. and we found conflicting views depending on what survey we looked at. remember, just because perception of risk increases, doesn't mean we actually clang our behavior because of it now the second thing to your point, substitution, we have seen a rise of legal cannabis in the u.s. as an alternative to alcohol. legal cannabis could be impacting u.s. beer volumes by about 75 bases points as a head wind in states where recreational cannabis is legal 50% of the u.s. population lives in a state with legal recreational cannabis. so at the national level that would be about a 30 bases points head wind. but what else is going on? i think it's important to highlight that consumers drinking less could simply be a by-product impact. >> right. >> in other words, consumers

attitudes toward alcohol may be unchanged but macro head winds are affecting the occasions that alcohol is usually consumed in in the chart we showed prior to me being on, touched on a lot of those. the economic burden on young americans has increased significantly, whether from inflation or the rising student loan debt burden, the nature of socializing has dramatically changed for young americans. those under 22 are spending less and less time interacting with friends. also we see that more young americans are living at home than ever before and my hunch is consumers are far less likely to want to drink or entertain their friends or partners when they're living with their parents. >> something my house -- >> young consumers came of age during covid many schools did this virtually, they missed out on crucial years of social bonding with peers, bars and restaurants were closed it's really a once-in-a-lifetime

external disruption that we're seeing for young consumers today. >> we have to go, but of the companies you cover because you cover all of the major ones affected by this, are they seeing it firsthand? >> not yet the impact is slow and i would say we've had a lot of corporate and investors reach out to us for the fact based element of our analysis that they appreciated since we dug into the facts. but nothing so far to cause huge alarm. >> maybe because they're reverting back as they get a little older nadine, thanks we appreciate it further ahead, even as restaurants struggle during earnings, they are seeing one bright spot, chicken sale. no alcohol but lots of chicken we have details when "power lunch" returns

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share with love. welcome back to "power lunch," everybody. treasury is on the move. rick santelli is tracking the action hey, rick. >> hi, tyler, indeed seeing more buying than selling pushing rate downs but as the session goes on, seeing a little bit less buying and a bit more selling, pushing yields towards the higher end of today's range, especially in

short maturities, like the 3 year note which we just auctioned off 58 billion of to kick off the first leg of the may refunding, which would total 125 billion, 3s, 10s and 30s as you look at that chart, you can see that we are now back to the yield levels that we had about 9:00 this morning. but we didn't get a whole lot of volatility at 1:00 p.m. eastern, post auction we're seeing some of the gains in the equity market slip away in the dow and the s&p. nasdaq had some red. now, if you open the chart up for 3 year for one month, something interesting shows up we are on pace for the lowest yield close of the 3 year since the 9th of april matter of fact, let's throw the whole cast in. tomorrow we have 10s thursdays we have 30s. let's show 3s, 10s and 30s all on one chart for one month they're all on pace for the lowest close since the 9th of april. the reason, the 10th of april we had cpi for march and that put

yields up because it was warmer than expected. so, it's very unusual to have the whole curve comping at the same point in time but it does underscore how important those numbers are and we have both ppi and cpi coming out next week kelly, back to you. >> rick, thank you very much rick santelli. >> turning our attention to commodities. now pippa stevens has the energy check. >> hovering around the highest level since january, meaningfully above it's an untrend in the down market in the sense that inventory is above 35% the five-year average. however in the short term a couple catalysts are working this they said, production cuts as well as building heat across texas and the southeast as well as maintenance on the highway pipeline and then the return of lng feed gas backstopping all this is what else but data centers and ai and the power demand there we did hear from chevron

yesterday who told cnbc he thinks nat gas will be a big part of that going forward he thinks that demand for natural gas is likely to be hire than what people have been estimated up until now and that of course, a common theme throughout earnings season from both the upstream producers as well as the pipeline companies. >> so interesting. a country of data centers. >> pretty much. >> driving down the highway. it's all turning into data centers. >> hardware stores are converting to data centers the whole thing. pippa, thanks. over to bertha coombs for a cnbc news update. the white house is pushing for a cease-fire deal between israel and hamas israel sent a negotiation team to kawhi row today to consider the proposal from hamas but said it was far from meeting israel's demands. meanwhile, hamas officials says the agreement represents the minimum it would accept. the white house claims the gaps can be closed. comes as israel forces seized the main border crossing between

gaza and egypt, escalating military operations in rafah. u.s. power use is forecasted to hit record highs this year and next year. power demand is growing from, what else, data centers. and for people using electricity to heat their homes and power their cars and toronto police say a shooting outside of drake's mansion this morning left a security guard seriously injured. representative for the rapper says he was not injured but it's not clear whether he was actually home around 2:00 a.m. when the shooting occurred police say the shooting was caught on video but they don't know yet how many suspects there are or what kind of car actually drove off from the scene tyler? >> you've been following but he is in a rather acrimonious despite with kendrik, i believe.

>> that's a rap battle but i hope it wouldn't get violent. >> let's hope this was a random matter thank you. coming p, disney's mission to make streaming profitable is no easy feat remains lower. we'll discuss with mountains mark douglas next. ♪ when it comes to investing, we live in uncertain times. some assets can evaporate at the click of a button.

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♪ welcome back to "power lunch. two big headlines in the media world today, first, disney, it topped earns estimates as it nears full streaming profitability but soft guidance sent shares down nearly 10%. they reported decline for ad revenue for linear networks. barclays is out with a new note today saying retail is the future of advertising. amazon the top contender to dominate, instacart up there as well for more, let's bring in mountain ceo mark douglas. mark, how much do you know about grocery shopping advertisements? >> i know a fair amount. i will say that what amazon is doing and what everyone else is doing is quite a bit different

amazon basically turned the home page website into a big search in engine they have the volume everyone else they just don't have that volume they're in a different game, more data centric that's actually doing search advertising like google. >> i guess to sort of ask the question differently and i wonder as i read through the note and they're talking -- i think we're talking about a lot of times pushing products and getting the online store to be more like the traditional brick and mortar shopping store, is there a sense in which streaming media reached saturation or something to that effect or maybe it's too expensive and the rise of the other platform i even think of uber >> yeah. i mean, i don't think that's occurred at all. obviously there's still a lot of people moving over to streaming. also the prices on social, like instagram and on search, you know, we're talking about amazon and instacart and stuff like that the prices are not actually that much cheaper so it's really about finding the

right consumer and getting them right at the moment when they made the interest in buying. that's what makes it valuable is for amazon and for some of these other players that are hitting them right at the moment that they're expressing interest and making a purchase, which is obviously going to be very valuable to them and other retail. >> where in -- i guess, my basic question is where and in what kind of media is advertising going to grow the fastest? and where is it going to shrink? in other words, as a piece of the whole advertising pie, is television, whether it is traditional linear television cable or on the air or i stream, is that going to be a smaller piece of the pie and something else going to take its place if so, what? >> well, television, if you think of brand advertising, that's been slow growth for a while. 1% annually. the growth has come in performance television, what mountain does and even amazon is

doing, which is bringing direct response marketers to tv what's going to shrink is display advertising on publisher sites. like "the new york times" or any other site where you read content. that form of advertising is going to really, really struggle and those dollars are going to go in the retail media or into television but the performance tv, not the brand advertising tv >> why is that what changed where we all used to go to ny times.com and no longer where did all of that -- those eyeballs go? >> well, essentially what's changed is that the retailers got much better at figures out who the consumer is. when you go to "the new york times," one, you don't have the same kind of targeting capabilities using them as an example. and two, you're not catching the consumer necessarily at a moment where they're engaged. in other words, a consumer is not there to shop. they're there to read an article. and they start to become what we

call ad blindness. they just start to ignore the ads but it's really hard to ignore 30 second tv commercial and it's really hard to ignore the search results on amazon.com or instacart or websites like that and so you're seeing that direct response advertising make up the gap and display advertising which is what publishers rely on kind of where you read content, they're the losers in this and they've been losing for a while. that's not new. >> they sure have. this sounds like another nail in the coffin of traditional print media basically is what we're talking about. whether the print is displayed on your ipad or the print is displayed on a sheet of paper. >> right, because they might migrate content over as i have seen, mark, to instagram or other social media platforms guess what they don't get the ad dollars when users engage with it that. >> exactly. >> yeah. exactly. there are even court cases and they lost them instagram -- yeah, yeah.

>> a parting word, we're out of time, disney, thumbs up, thumbs down, what do you think about the quarter? >> i think for the quarter -- well, i'll give you a summary. i don't think it's a good idea for this streaming business to become profitable yet because if it becomes profitable they're going to under invest in content and stall their growth they need to keep investing to really build scale on a netflix size people should be booing the profitability and cheering for more losses for another year or two or three. >> the investors are going to boo you. focus for the long run. >> mark, thank you we appreciate it. the lone bright spot in the otherwise rough quarter for the restaurant sector. we'll be back in two minutes

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earnings reports, but results did reveal one bright spot for some chains. chicken. kate rogers didn't balk at that story at all she has the details. >> that's right. as mentioned, this was a rough quarter for a lot of the big restaurant chains, but chicken really was a bright spot for some restaurants that had strong quarters this season chipotle had both better than expected comps up 7% and traffic growth as well due in part to the return of chicken al paster. it was such a success they issued internal message to temporarily select another protein for their meals to preserve supply for several days wing stop had a huge quarter, same store sales up 21.6% with traffic growth there as well the ceo said all they need is more chicken to support their growth they have no through-put issues and guests are really treating themselves to wing stop. seeing it as a special occasion in a challenging environment popeyes was another success

story. same stores sales growth up and boost thanks to wings to its menu in recent months. analysts pointed to the relative lower price point of chicken and gen z loves it for some of the sustained success since the big chicken sandwich wars of several years ago. on the point of pricing, chicken prices increased more than beef per cpi data this comes after a drop of nearly 1.5% january into february back to you. >> what about chains with more challenging quarters did chicken help them at all >> yeah. so, we talked about mcdonald's they did see some success with their chicken nuggets. those are kind of a core menu item and a staple on the mcdonald's menu. people do tend to flock to those. they tend to be a lower price point. that was one bright spot for them but you also mentioned yum brands kfc was challenged and its ceo david gibbs did mention there was a lot of discounting and competitiveness in terms of pricing back and forth in this quarter. that was one of the reasons they pointed to for a little less than stellar quarter on that one

brand. >> kate, thank you very much kate rogers reporting. and palantir getting crushed on lower than expected guidance despite posting fifth-straight quarterly profit should you buy the dip with the shares down 14%? we'll trade it in three stock lunch next (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. our customers get what they want, when they want it. (jen) now we're even smarter and ready for what's next. (vo) achieve enterprise intelligence. it's your vision, it's your verizon.

time for today's three stock lunch. you remember the segment? >> yes. >> three. herewith are trades according garcia, -- chairs up of palantir, your trade? >> welcome back and congratulations on number five. great to see you here. >> i would not stay on the sidelines with palantir, i would be cautious, they had some strong earnings but the problem is going forward, is the momentum slowing. you saw

corporate revenue growth up 40%, down from 70% the previous quarter. a company that trades at a premium to its peers and the u.s. government and european government contracts are slowing. they have done very well, the bar is set very high with shares tripling over the last year with excitement over artificial intelligence. where valuations are in a slowing growth momentum, i was stay on the sidelines. >> quite a year palantir has had. what about him and hers? second quarter revenue guide topped estimates, what would you do with the stock? >> i think this is an interesting opportunity. they had positive earnings that just came out nd showing 46% revenue growth year after year. looking at the revenue growth and margin expansion is impressive and why you can look to them as an opportunity. they have shown a good brand loyalty. one interesting thing is they have stated they will have glp 1 products later this year. take that with a grain of salt

because some is probably already in the forward guidance. watch that because it could be a further positive catalyst. >> take those with a grain of salt. chase it with water. finally, citi upgrading gap on consumer demands with shares higher by more than 1%. your trade on the gap? i would stay on the sidelines, they are in transition and closing less profitable scores, as opposed to old navy, which is where a lot of their income comes from. the discount retailer space are seeing a lot of competition, like old navy. in the retail space, consumers are strapped with inflation and you have to choose and be selective of where you are spending your money. they have not demonstrated plan loyalty -- brand loyalty is enough to keep the consumer.

althelta has been the bright spot but that is less than 10% of the revenue. i would stay on the sidelines. >> in my town, the gap store converted to athleta and it is much more crowded. thank you, courtney garcia. >> join our experts at the financial advisor summit on wednesday, may 22nd where they will discuss the bull market. scan the qr code to register. if you missed the show or want to listen to it again, catch the podcast, follow it on cnbc podcasts . we will be right back so this is pickleball? it's basically tennis for babies, but for adults. it should be called wiffle tennis.

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welcome back. less than three minutes to go. let's get to the stories, the great wealth transfer, reportedly underway as baby boomers are passing on more than $60 trillion to their fortunate children. why the disconnect between what they expect to inherit and what their parents plan on leaving them, a survey found 60% of younger people expect to receive $320,000 or more. 55% of boomers will pass on less than $250,000. the reason is longer life expectancy, rising healthcare costs, and financial insecurity. >> interesting. i am suspicious of these big megatrend ideas that all this money will transfer. >> never feel like we have seen that. >> speaking of gen z, younger americans starting out with more credit card debt than any generation before them. the average card balance for 2022 -- 22 to 24-year-olds was

$2800 in the last quarter of 2023 and $600 increase and that is adjusting for inflation from the same time 10 years before. no surprise. >> the ballots they are carrying, never want to carry it, that is where you want the link with the rates. >> one of america's biggest gym chains is leaning into the fastest growing sport lifetime fitness expanding its pickle ball offerings, including a new partnership with lululemon to sell pickle ball clothes. adding courts to many of its 200 locations. that is a game changer in the gym space. andre agassi is one of their connections. >> now there is jr. -- junior pickleball.

>> also a growth industry for orthopedic surgeons. achilles, knees, hamstring. enjoy the pickleball, good social game and easier than tennis. great to have you back >> great to be back "closing bell" starts right now. welcome i am scott wapner. make or break hour begins with a rally, stocks going for the fourth consecutive day of gates but he moved back from the april bottom which some suggest is a sign there could be more to go. we will asked experts over the final stretch whether they agree. the scorecard with 60 minutes to go in regulation looks like that, a big green for most of the day but it has been leaking over the last 30 minutes. nasdaq is red. bond yields are mostly lower which has helped the russell 2000 outperform