Dan Ives: Q2 earnings will be the driver for mega-cap stocks

KIND OF A MUTED EVENT, WITH MOST OF THE ANTICIPATION BUILT INTO THE STOCK ALREADY. SCOTT. >> OKAY, LESLIE, THANK YOU VERY MUCH FOR THAT SETUP. THAT'S LESLIE PICKER. NOW LET'S BRING IN DAN IVES. HE'S PARTNER AT THE NEW FIRM YORKVILLE IVES. IT'S GOOD TO HAVE YOU BACK. GREAT TO BE HERE. GET TO THE NEW FIRM IN A MINUTE BECAUSE THAT'S NEWS IN AND OF ITSELF. BUT WE HAVE TO TALK TO YOU ABOUT THIS BECAUSE, REMEMBER, BEFORE YOU LEFT YOUR PRIOR JOB, YOU HAD JUST INITIATED ON SPACEX AND YOU WERE ONE OF MANY BULLISH ANALYSTS ON THAT STOCK. BUT WHY NO ANALYST BUMP AS LESLIE WAS JUST TALKING ABOUT? >> YEAH. >> LOOK, I THINK WHEN YOU LOOK AT SPACEX AND OBVIOUSLY YOU HAVE SOME IMPORTANT LAUNCHES COMING UP, I THINK THE MOST IMPORTANT THING IS INVESTORS. THE LONGER TERM ONES, THEY'RE GOING TO THEY'RE GOING TO VIEW THESE AS SPEED BUMPS BECAUSE YOU GOT TO ULTIMATELY LOOK AT THIS IS A STORY AND WE TALKED ABOUT IT. IT'S AN AI DATA STORY SPACE. MORE AND MORE IS GOING TO BE A HUGE PART OF THE AI REVOLUTION. I JUST MY VIEW IN COVERING TECH FOR DECADES, IF YOU LOOK AT THE FACEBOOK OR THE, YOU KNOW, THE IPO, WHAT IT DID, YOU LOOK AT AMAZON, IT'S VERY EASY TO GET VERY SHORTSIGHTED. YOU KNOW, THIS IS A 26 MILE MARATHON. I THINK WE'RE ONLY IN MILE 1 OR 2. >> YEAH, I HEAR YOU. I MEAN, AND A LOT OF THE THE COMMENTARIES AROUND THAT. BUT THE FACT REMAINS, IT'S JUST IT'S HARD TO VALUE. AND AT ITS CORE, THAT'S ONE OF THE ISSUES. NORMALLY YOU LOOK AT COMPANIES AND YOU CAN LOOK AT ALL THE DIFFERENT METRICS AND COME OUT WITH THE PRICE THAT YOU THINK IT SHOULD BE TRADING AT, RIGHT. THE VALUATION RELATIVE TO ITS EARNINGS. BUT THIS ONE'S DIFFERENT. SURE. IT'S HARD. >> LOOK, COMPANIES LIKE THIS, THEY'RE NOT GOING TO HAVE QUOTE UNQUOTE VALUATION SUPPORT. AND I THINK THAT'S PART OF THE PROBLEM. WHEN YOU GET INTO THESE, YOU KNOW, IT STARTS TO HAVE A CASCADE EFFECT. BUT AS WE'VE TALKED ABOUT, WHETHER IT'S SPACEX, WHETHER IT'S, YOU KNOW, TESLA, WHETHER SO MANY OF THE THE TRANSFORMATIONAL TECH STOCKS, YOU HAVE TO BE ABLE, AS FAR AS THE TREES TO LOOK OUT IN THE NEXT THREE, FIVE YEARS. AND WHEN YOU THINK ABOUT THE FOURTH INDUSTRIAL REVOLUTION, WHERE WE ARE, IT'S HARD TO SAY THAT WITHOUT SPACEX IN THE SENTENCE. >> WHAT DO YOU MAKE OF WHAT CONTINUES TO GO ON WITH CHIPS AND THEN WHAT THE MEGA CAPS ARE DOING IN TERMS OF THEIR TRADE TODAY AND OVER THE PAST MONTH? I MEAN, THEY'VE CERTAINLY WOKEN UP, BUT CHIPS REMAIN REALLY, REALLY HARD TO TO FIGURE OUT. >> I THINK IT GOES BACK TO SK MEMORY. THOSE ARE THE GOLDEN CHILD'S OF THIS AI TRADE. YOU'VE SEEN MASSIVE SELL OFF SINCE YOU KNOW SINCE REALLY SK WENT PUBLIC. BUT THEN ON THE OTHER SIDE, LOOK AT WHERE NVIDIA AND SOME OF THESE OTHER CHIP NAMES ARE. IT COMES DOWN TO TWO Q EARNINGS. I MEAN THAT'S REALLY GOING TO BE THE FLASH LINE THE DARK TUNNEL. WE'VE TALKED ABOUT IT 15 TO 1. DEMAND THE SUPPLY. THIS AI REVOLUTION IS STILL THIRD INNING. BUT THE HYPERSCALERS THOSE ARE THE ONES THE ONES THAT ARE FUNDING THE AI PARTY FUNDING THE CAPEX. THOSE ARE ACTUALLY THE ONES THAT ARE MOSTLY IN THE PENALTY BOX. THAT'S WHY IT'S SO IMPORTANT FOR ALPHABET, FOR MICROSOFT, FOR AMAZON. AS WE GO INTO WHAT'S REALLY JUST, I THINK, A FORK IN THE ROAD EARNINGS SEASON. BUT I CONTINUE TO VIEW IT. THE DEMAND STORY. IT'S STILL EARLY. >> I WANT TO TALK TO YOU ABOUT A NUMBER OF THOSE NAMES. LET'S GO ALPHABET BECAUSE IT'S SO TIMELY GIVEN WHAT WARREN BUFFETT SAID. THIS WAS MY PICK. AND HE THINKS THEY'RE GOING TO BE A WINNER. WHAT DO YOU MAKE OF THAT? >> WELL, BUFFETT HAS TALKED ABOUT VALUATION. YOU LOOK AT ALPHABET. A YEAR AGO, NEW YORK CITY CAB DRIVER WAS BEARISH ON IT. AND NOW AS IT PLAYS OUT IN TERMS OF WHAT THEY'RE DOING ON SEARCH, WHAT THEY'RE DOING ON CLOUD, SOME OF THE PARTS FOR THOSE LIKE A BUFFETT OR BERKSHIRE LOOKING FOR, OKAY, WHAT ARE VALUATION NAMES THAT YOU COULD RATIONALIZE IN AI? YOU GO BACK TO SPACEX AND SOME