Josh Brown and Dan Ives: Where Tech & AI Stocks Go Next

Blue cloud trading [singing] through the night. >> Welcome [music] back to the channel everyone. In just a second, I'm going to play a few CNBC clips from today's episode of the halftime report. I'm going to pull up the charts and dive into the technicals of some of the mentioned stocks. We're going to look at the key support, resistance levels, momentum, and see if the price action actually backs up what the talking heads are saying. Hit that like button, subscribe if you haven't already, and let's roll the tape on the first clip. >> Yeah, I appreciate that, Carl. Thanks very much. We'll hit the financials during this program. Welcome to the halftime report. I'm Scott Walker. Front and center this hour. Rates down, stocks up, the Fed's Waller [music] says he's likely a hold at this month's meeting. Snowflake Broadcom, they're moving in opposite directions. We're trading everything with the committee today. Joining me for the hour, Josh Brown, Jim Leventhal, Jason Snipe, Brenn Talkington. Let's check the markets. Highs the day. Dow, look at that. 1 and a4% better than 650. Uh tech is doing quite well. So, Governor Waller not as hawkish as feared. Yields down, rate hike, expectations down, stocks up. I mean, it's pretty simple. And we needed this rate relief, didn't we? >> Yeah, I guess it helps, Scott. I think that's I think that's a fair assessment of what stocks are keying off of today. I I really never thought that there was a heavy appetite for a rate hike from anyone at the Fed. And uh I think just keeping it on the table maybe is important just to keep the markets a little bit uh in line. But this idea that there's some emergency need um or something where it's going to impact the price of oil which obviously is up for a very specific geopolitical reason. I just don't get like what is the rate hike meant to accomplish and if it's just one then what is the signaling value in that? I think if and when there is a time where they look at services inflation, they look at goods inflation, they say, "We got to go right this minute." They're not going to be talking about one. They're going to be talking about a new cycle. Well, I don't know what one 25 basis point rate hike means, whether they do it or don't do it. So, this was always the sideeshow. The main attraction has been the earnings. This is what's kept the market where it is. It's what's been feeding the rotation. Um and and this this talk about the 30-year, the 10-year, it's really just sort of in its own lane and I think not the main thing for investors to be focused on. >> You know what is Snowflake? Let's look at that chart right now. We will do it right now. Uh because it deserves to be done right now. Look at that. 21% that stock is up. Blowout earnings. That's a new 52- week high. I'll stay with you, Josh, for a moment because you flagged this in late May at when it was 205. Okay. in best stocks in the market in late May. The stock was trading at $25. UBS today goes to $500 was the highest one that we saw out of the group of of target increases today. This is exactly what you're talking about. And this is also playing a big role in why you see green all over the place today, especially in software, especially in the NASDAQ and tech. >> That's right, Scott. And I don't want to downplay the magnitude of this call that I made because [laughter] >> allow allow me >> I I'm full disclosure I'm long the stock obviously we we've been talking about it but um in late May when it came on to the best stocks in the market list. It's a very difficult thing to come on and talk about a stock that has just reported earnings and has gone up 36% in one day which is what Snowflake did. I came to it a week or two later and I'm talking about the name as this idea. We have all these software stocks that have been blown to smitherines. A lot of them didn't deserve it and this was one of them. And what's even more gratifying um than the fact that the stock has almost doubled is the reason why it's working is exactly what we laid out at the best stocks to the market column on CNBC Pro. Net revenue retention 120% to 130%. That is this range this company's in. Let me explain to you what that means. That is existing customers continuing to spend or spend more well in advance of any customers who are dropping off. Nobody's dropping off. And the reason why is because it is becoming very obvious the agentic era of AI which we're heading into requires data governance. And this is the data governance layer. Why do we think that corporations want to move their data elsewhere, pull it onto different platforms, duplicate it when they can just carry out agentic workflows directly in the governance layer? That is what Snowflake does. They have 9,000 customers currently doing something agentic directly inside of their data lakes with Snowflake. And that is what the street has woken up to. And that's how you get a stock go from 205 to 371 in the course of a single quarter. You've been playing this game in this one too, Jason. 100%. >> Tell me your thoughts as you see the stock do what it is doing. Again, 500 bucks on at UBS. >> Yeah, >> it's been a standout for sure. >> Yeah, man. I mean, what an unbelievable quarter. I think that the major takeaways for me is product revenue growth. Product revenue growth was in the low 20s, you know, over the last year. It was up 37% this quart. >> Wow. Right. So, that's a humongous number. I think the other thing as you think about product revenue growth and companies like Snowflake who are investing heavily in AI, their op margins are also expanding at the same rate, similar rate to to their growth rate. And to to Josh's point on net reoccurring retention revenue 126%. That just means that folks that are on the existing platform are only consuming more. Once you get in, you're just buying more products and services. That's why Snow is running like it is. It was up 50% prior to the print. It's now up 70% year. >> The tide is lifting a lot of boats uh today in in that space. I mean Bren Palunteer is good for eight uh% today. You got the cyber names working like Crowd Strike is up 4.5%. Salesforce which really took off last week after its own earnings up 3%. Uh Octa plus 3%. Oracle plus 5 1.5%. This is what a blowout report like this does in a space that really has been trading well of late >> trading so well and I think you know these hedge funds so many but in addition to the situational awareness have been short these names let's say the software basket you know rich at large that that is the danger here of getting too bearish you know on any of these technology sectors and letting the narrative uh take place of your price and So, I mean, all of these names have had V-shaped bounces off the bottom, and I, you know, continue to think, you know, IGV is about to make it make race back to its highs. And so, I just think that that software narrative has somewhat died, that they're all going away. And to Josh's point and and and Jason's like, Snowflake, they are a core part of the Agentic ecosystem, which is just now getting started. >> Yeah. I mean, what SAS apocalypse? Well, you is it fair to is it fair to ask that at this point? Let me hear from Jim first. >> Yeah, I I think Bin just nailed it. And I'm going to I'm going to quote from Chris Veron, a friend of yours on the closing bell, who often says that the narrative follows price. And that's what happened with software stocks earlier this year. That's where the SAS apocalypse came from. The idea that all of these companies were going to basically go to zero. Their profit picture was going to go to zero. And I'm not I'm not using hyperbole here. I mean, these stocks were trading as if they were going out of business. What we've found since, and Bin was just saying this, is that if you actually track what was causing the price to decline, if you actually looked at the cause, it was situational awareness with huge leverage and other people piling on that bet. Now, what we're seeing in the earnings report is frankly what we were seeing all along, which is that these companies were doing just fine. And this thing got so crazy that even Microsoft was caught up in this. I mean, if we can remember that Microsoft was below $400 for a lot of the first half of this year. I think what we're seeing now is if you actually think about what's driving price, i.e. the fundamentals, there's a lot of reasons to be in these spaces. >> Well, if I told you now, right, you wouldn't have thought this may be possible by this time. The IGV year to date is now positive. Okay, it uses the move today that it's made and it because the sector itself is up quite nicely as I as I ran through the list of individual names. We're positive year to date uh by a little more than 1%. I don't think people had that on their bingo cards in the midspring when it looked like this was a disaster. So, I was forced to average down into Toast. I was forced to average down into Service Titan. Um I I bought into Snowflake. I did my best to look for the situations where um the market narrative had it backwards. And this is what I mean by that. The disconnect between Silicon Valley and actual businesses and actual people who are running business. There's this assumption and the hedge funds bought into the Silicon Valley story. The Silicon Valley story was these companies are going to obiate the need for all of these quote unquote middlemen. They're going to rip that layer out. everyone's going to go direct to Anthropic to do all of these workflows and they're going to have IT people working at Fortune 500 companies um actively ripping wires out and and cutting costs. It's a great story. The problem is it's not actually how the world works. Number one, I was reminded recently one of the benefits of SAS software is not just that it does the thing that you need it to do. It also gives you somebody to yell at and somebody potentially to sue when things go wrong. is a very underrated part of why people want to work with Fortune 500 software companies. The other thing is most business customers are not themselves equipped to vibe code their own solutions and they need 100% uptime to run their businesses. So when I looked at Toast and I looked at Service Titan, I said who are the verticals? One is bar and restaurant owners. Is that who we think is going to get into um the the the software creation process? Probably not. That's a buy. And of course, Toast will be the company that sells AI to uh those customers. The other one, Service Titan, do we think house painters and contractors and landscapers are very excited to start creating their own software solutions? I'd say probably not. And in fact, Service Titan is now selling AI services to that customer base. This was the disconnect that the hedge funds got wrong and that Silicon Valley gets wrong, but investors who know these companies and know the end markets realized this is a no-brainer. >> Scott, go ahead. >> Yeah, I just >> we can continue to cycle through Titan Sea on that guys. Please go ahead. >> If we're going to debunk and I think we should debunk the SAS apocalypse uh narrative, I think there's another narrative that went handinand glove with it can't be separated from it, which is the private credit uh that this was going to be a systemic risk. Now look, you look at these stocks that were at the epicenter, Blue Owl, uh, Apollo, they're up 30% as well. They have done the same thing that these software stocks have done. And all I'm pointing out here is a lot of times where people say, "Hey, there's smoke, there's smoke, there must be fire." If you dig a little deeper, maybe there isn't. For all of those who were saying chips over software, semis over software, it's really been a stark reversal. And then that just takes us to Broadcom. How can you not go there next? Look at that stock today. U it's not like the earnings were bad. Okay, so the revenue guide was a little weaker than anticipated. Um going in there was a commentary around the street that Broadcom needed an Nvidia-like quarter [snorts] to erase the big losses that this stock has had. So 4% down today. Take a look at it over a broader stretch though. Look at it year to date. It's been one of those names that just has not done well. that speaks volumes. It's up not even 2% on the year. I'm wondering how you think about this name. Now, >> I think um we are all subject to something called the recency bias where we look at what's gone on in the last 6 months and we can't help but overindex to that as though it's some sort of a new reality. I think the thing that a lot of people are now being reminded of is the fact that historically software stocks have had higher multiples than semiconductor stocks. Two very simple reasons for that. One is margins for enterprise SAS historically much better. And the second is very little cyclicality. Like if the economy is not great, I can complain about my Salesforce bill, but there's probably not a lot that I can do about it. I'm not exactly going to sit and spend hours sitting with five other providers that aren't as good and then going back to renegotiate every time there's a downturn. And companies just don't. So this is the reason why historically software stocks had a better multiple than semis and then that flipped this year. We had software giants selling at 16 17 times earnings and semis that we know no matter what eventually the cycle peaks and then goes into decline. All of a sudden we want to buy these stocks for 25 30 times earnings no questions asked because they're selling into a capex buildout. This is a little bit of a comeuppance now in the last 6 weeks a little bit of a rethink. Wait a minute. What were we doing? What were we thinking? I don't think anything is wrong with what Broadcom reported. I just think the market is coming back to the longer term reality and shaking off some of that recency bias. >> Yeah, Bren. So, how do you see this now? Semis versus software, just the semis in general. Momentum obviously plays a huge role. Broadcom's part of the MTUM. Other names today that are in the the news, HPE, Sienna, NetApp, they're in there, too. They had earnings. But what was a decided vote for semis over software feels like now it's flipped. >> I think that not only semis but also like I own DRAM and you would think with all of the conversation whether it's Dell, Broadcom, Nvidia that the Microns, SKHEX would actually have like picked up momentum but the opposite is true. And so I do think there's this rotation underneath the semi AI buildout. I mean Dell as a ju just position continues just to get stronger after earnings. And so I think people are like picking and choosing and I think Broadcom just like didn't didn't meet the expectations on the call. I do think to Josh's recency bias if you go back broadcom a little bit longer one or two like three years you know Broadcom's obviously rerated to the higher but I just think people are skeptical. I still say people are skeptical about all of this AI. I think that is a wonderful thing that actually prolongs the cycle because of this skepticism that makes us stay away from that 2021 and the n late '9s like ebulence that just, you know, gets out of control. So, I like seeing these kind of names pull back. It gives to me confidence that the cycle can last longer than the other two periods where it really just kind of blew itself out. Yeah, it's a record high today for Dell, uh, by the way, uh, which really took off after its earnings, but it's worth highlighting which Bin initially bought, uh, back in November of 24. You still own it, right, Dell? >> I I do. You know, I sold half of it before it rerated to buy Salesforce like in the 170s, so that doesn't feel so great. >> But, uh, glad glad to still glad to still have some. >> This another one you highlighted, right? Best stocks and not too long ago. Was that just a week ago? It was Tuesday >> before before the print. >> It was Tuesday. Were you here? >> I was here. >> I was here. >> Oh, no. I was remote. That's probably why I didn't make as much of an impact on you as I should have. Yeah. >> Um Yeah. No, >> I was like watching the guitar on the wall and everything behind you. >> We wrote we wrote up uh we wrote up Dell four times. >> So, this is like been a this is since we started doing best stocks to market for pro, this has just been a perennial member of the list. The stock just acts incredibly well. I think people trust management uh and Michael Dell generally. I think people like the idea that we're back in the business of selling physical equipment. Um, and and the reality is whatever equipment is being bought in all these data centers, it doesn't have a a a lifespan of forever. It all has to be replaced. It's like built-in future demand for this company's products. The chips burn out, the servers burn out, and if you're doing training, it's like twice as bad as inference. Dell is going to feast not just on new data center construction, but on the replacement parts and equipment needed for the total installed base that already exists, which is monumental, obviously. So, they like this stock. We wrote it up for best stocks once again and a new breakout. Here we go. Microsoft's back, too. Um, let's guys, we made that chart the other day, I think, in real time of what Microsoft has done since that earnings report. And that that was the sort of the mark the line if you will of when the stock seemed to get a rerating here. Um let's look at that. Back that up if you could from the day that Microsoft reported cuz it's a it's a significant gain from there. There it is. 30%. Thank you. Uh that really says it all. Wells Fargo today says it's going to 700. They're overweight on that. Um I think that speaks to the renewed optimism in what was a name that hadn't done a whole heck of a lot. They also say Microsoft does they're going to start disclosing Azure quarterly revs as they consolidate their business units. Jason Snipe first then Jim. >> Yeah, listen I mean you you're seeing a flurry of upgrades now. You saw you saw a flurry of them after the print. I think they went from this AI monetization promise to proof right and I think that came as a result of the print. Q4 sales rose 18%. Azure is now topped hundred billion hundred billion dollar business um and 30 million paid seats on co-pilot. So the other thing for me is commercial RPO jumped 84% to almost 700 billion, 678 billion to be exact. Um, so the breath of the businesses continues to be strong outside of AI as well. Microsoft 365, commercial consumer, LinkedIn, all up double digits. So I really continue to like this stock. They're going to stay cash flow positive. We obviously heard from Amy on the call. So I I I like this call and I think it will continue to see momentum into year end. Jimmy >> Jason, you just did a good job of explaining there's multiple shots on goal with Microsoft. I think the one that matters the most is the Azure business. And I say that because I think back about two or three quarters ago then they reported Azure growth of 38% and the street was disappointed. They were looking for 41 42% something like that and that was a major part of the decline earlier this year. Um what South Jennella said at the time is look this is all supply constraint. If we had more data compute we would do more business. The market didn't believe them at the time, but since then they've been able to bring on more data compute and we see that the revenue growth is accelerating to the last quarter it was over 40% just over 40%. So the market is believing that this is a business that is supply constraint and when you've got Azure with high margins growing as as I said 40% plus year-over-year that's something people want to buy at a low 20s multiple. >> Jeffre takes a look at their top a AI ideas today. They say they favor companies position to capture AI spend across compute, data security, and applications. We've obviously talked a lot about data security. We don't need to do that again. But Bin, their top picks do include Microsoft and Amazon and Google and Oracle and Coreeave. >> Yeah. Well, I think that I mean kind of like the top holdings of the Q at least the fir the first three, you know. I think that Oracle the juryy's still out by the way because they went allin with open AI and I think if you look at Microsoft as a as a juosition to Oracle they went open open model meaning that they have enthropic now built into co-work and as users of co-work inside of co-pilot it now just is so much more useful and so I think that Microsoft when their next quarter's earnings come out we're going to see incredibly incredibly strong co-pilot numbers really that benefit came from the benefit of putting anthropic inside of there. So I think in the private markets anthropic's getting getting stronger. Companies that are aligning more with Enthropic in the public side are also going to get stronger versus I think open AI is getting weaker and those companies are susceptible like an Oracle that has a huge partnership obviously or RPOS with open AI. What do you think about this this list from Jeffre favoring companies to capture AI spend across compute data security and applications? >> Yeah, look, it's it's the trade that everyone's been doing all year. I don't think it's a novel idea like, oh, they're they're building a lot of data centers. Let's figure out which companies are going to benefit. I feel like that's what we do. Um I I continue to think though the most underestimated part of this software comeback that we were just talking about is the cyber. Um because the more AI we're using, the more surface there area there is for things to go wrong and for attacks. >> You said underestimated. >> Underestimated meaning a lot of software stocks made really big comebacks, but the cyber companies really outdid themselves. Most of them have doubled off those lows. Um and and CrowdStrike in particular, we saw an announcement um between Jensen Wang and George Kurts this week talking about creating LLMs that are specific um for cyber security. multiple models using Neotron which is at um Nvidia like this is really the area where if you're worried about will the spending continue judge if you're worried about will the profits actually be captured by public companies like this is the in my view this is the ironclad version of that we know nobody in their right mind is going to invest a trillion dollars in capex over the next few years and not spend the appropriate amount of money to secure that infrastructure ffstruure. We also know on the customer side companies are not going to take any chances as they experiment with new technologies inside under the hood. So I I feel really good about the visibility that you're going to get on a crowd strike and some of the data security. >> One of the best comebacks of the year that that group back that out again guys from from where you >> and this thing split uh this thing split four for one. This would be like an $850 stock right now. Um, people forget that it got sold all the way down to like $200 or $300 a share. >> Well, I mean, you had the the whole group for, you know, seemed for a small period of time at least caught up in that whole disruption, the Claude news that came out, hit everything, and then the comeback has been so incredibly severe. >> So, so Claude came out and said, "We have a model that's so dangerous, we actually have to put it in the hands of Jamie Diamond for some reason before we release." Okay, fine. So, they named like eight companies that they're going to work with on Project Glass Wing. Crowd Strike was one of them. If that wasn't the buy signal, I don't know. I don't really know what is. What are you paying attention to? >> The other news I want to hit real quick before we uh take a break is the financials cuz we need to get away from technology. It's not the only thing doing well today. Uh the XLF hits an intraday all-time high and that that's notable. Uh and many of the names in in that space. Now, I maybe it's, you know, related to the yield curve. uh what what yields are now doing over the last couple of days. Jimmy, you got City, Black Rockck, JP Morgan. You can talk about City and JPM. >> Yeah. Well, I you know, look, they are doing well, but I'll note with City that it's kind of hit a a flat spot here for the last few months. So, I'm hoping that it's going to gain some traction here. Um it set a new high earlier this year. There's a lot of uh a lot of catalyst, particularly the Banamex spin-off. But City is just one of several financials that are doing well and JP Morgan has done very well in the last few months. Why? Because there's a lot of economic activity. Uh whether that's IPOs, whether that's funding data center buildouts. You know, you mentioned Black Rockck as well, Scott, and that's heavily involved in the financing for these data centers that are being built. I'm going to simplify this. There's a lot of economic activity that needs financing. That's why the banks and financials are doing well. uh Robin Hood today is up 15% on a pretty big upgrade. Crypto is back. All the trading that we're seeing in markets, [clears throat] etc., etc. Like this is the this is the type of stock that's overlooked, overlooked, and then all of a sudden becomes a darling again. [clears throat] >> Yeah, look at that. Uh 15% for Hood. All right, we'll take a break. We're coming up calls of the day. We also have best stocks in the market, a new uh version. We're going to talk about a name uh in there as well, and we'll do that coming up. All right, we mentioned a lot of software stocks today and we talked about this name the other day. Maybe it was yesterday. Adobe the target today gets raised at Barclays and that's ahead of earnings next week 295. Not a huge jump, nonetheless a jump. Maybe that's news in and of itself. Uh so they report on the 10th. Okay. So you have high hopes, medium hopes? I don't think you have to have I don't think you have to have high hopes with where this valuation is. I think you can have medium hopes. I mean, Scott, and to our viewers, if I told you that over the last 3 years, this is a stock that's compounded revenue at 11% compounded earnings per share at 18.5% annualized and it's trading at 10 times forward earnings, you would say, what's wrong? Well, you know, the bears will say, okay, the 11% revenue growth is down from 13% a few years earlier. Fine. Okay. others and you know we had this conversation with Jenny a few days ago about she's using replacements for Adobe again fine my company just re-uped with Adobe and I ask everybody watching how many Adobe's do you open in a given day for me it's probably close to 100 >> well that'd be messed up right if you were like in this you love the stock and you keep making the case for it and then the company canceled the deals >> I've had a conversation with our technology I've had a conversation with our technology guys did they squeeze them on price sure they did and that's why the stock's trading at 10 times earnings Frankly, I think you have to have just medium to low hopes. This is a bar that can be easily cleared. Also, let's not forget that with all the free cash flow that they've been generating, they've shrunk share count by 10% over the last just year and a half. Most of that with the stock trading at 8 to 10 times earnings. So, um, look, it's not a slam dunk, but as I said, you don't have to have high hopes for this to work. >> Can I ask you one more question? You said that revenue growth had gone from 13 to 11. >> Yes. What is the outlook for the print which is coming up as we said on the 10th? Do you know what the current quarter is supposed to be? >> You know what? I looked that up and I didn't Can I come back to you on that? I don't want to I don't want to swag that. >> I only asked that cuz I'm Am I to assume that that's a continuing decline that's forecast out of their revenue growth. And that's why the stock trades at the what you consider to be too cheap of a multiple, but that's why it's there. >> Yeah, it's a fair enough point. How about if I use what to me is just a little bit more relevant. Not that revenue isn't relevant, but the projected earnings per share growth over the next coming years is 14.4%. >> I know, but it's your revenue growth is everything. >> I would do the homework. >> I would actually say earnings per share, >> but that's you know what makes a market. >> Earnings per share are more important than the revenue growth for these companies >> for any stock. For any stock. Why? This surprises me. This >> Well, I'm saying if they're if they're in a declining screwing a bottle of water. >> Okay. They're [laughter] in a declining revenue growth environment. >> How can you make >> You want to bail Jimmy out? >> Uh, hold on, Brenn. But, right, I mean, if you're in a declining revenue environment, >> yeah, >> how can you make an argument that the stock deserves to rerate higher from a multiple standpoint? Like, what are you paying for? >> Okay, >> hold on. Let let me let me get Bren in on that. >> So, Adobee's looking to grow revenue 12%. But going back to Jim's revenue versus earnings. I do think where it depends which company. I mean Apple which I own, we all love Apple has game the system because it's earnings per share. And so to me where revenue is really important is you do want to see that topline growth because like Apple which is just like eating all of their shares that per share number is gooseing earnings. And so I do think you have to look at both of them. But that revenue number with Adobe at 12%. I mean I I do think Adobe is a battleground stock. Not as much as Salesforce does, Salesforce was, but I do think if they have the the market has created this environment today with the SASopelix, you know, kind of over where Adobe actually can have good numbers and actually have a really nice pop. But I do think that revenue number is incredibly important, especially if a company's buying back shares. >> 11.8% is the projected growth this quarter over last year. >> Okay. Thank you. >> Thank you. Yes, of course. You want to talk about Costco, Jason? Uh reiterated buy at BFA and that's post their sales beat uh from this month. What do you think? >> Yeah, it's been it's been an interesting story for me with Costco. It's up 7% year to date. And I think if I think broadly about the retailers, right, Target is obviously the banger winner, up almost 70% year to date, and TJX and Walmart, not so much. Right. Um Costco's obviously a value player. I think they they're kind of um you know, it's somewhat of a mixed bag, I would say. I I think for me the catalyst for them going forward, they obviously focus on the higher end. I want them to kind of focus on a little bit of the younger consumer um you know from a value perspective and you know retention rates to reoccurring uh membership rate that that's always been solid. Um but I think that's has to be a focus for them going forward. But I continue to like it. They're performing well given the greater context and kind of what's going on from a discretionary. >> You want to hit Uber real quick outperform reiterated today. pay wet bush 91 bucks the target there. >> It's the cheapest this is the cheapest growth stock in the market in my in my opinion. This is a company where they are expected to be growing earnings as far as the I can see and it's got a 17 forward earnings per share multiple. The the knock on the stock is obvious. Everybody thinks Whimo is just going to take over the entire business which I don't think is realistic. Um I'm not even sure who Whimo is going to make money like by the end of this decade or even beyond. whereas Uber is incredibly profitable. Um, so people think that that's in jeopardy. The other problem now for people is that Uber is making its own investments. So they are seeding other autonomous vehicle manufacturers and providers. I think it's a smart move strategically. It's no different than what Nvidia is doing, seating um the Neoclouds and uh I think it'll all come out in the wash. The stock will end up working. I just don't know when that sentiment cloud will lift about the competition. So here we are. >> Okay. All right. Let's do these best stocks in the market according to Josh Brown. You say we're revisiting today an old favorite. >> Yeah, this is uh like Dell. This is the fourth time we've written up deer. Jim, can you help me with the segment a little bit? >> Great, great stock. Love it. >> All right, so it crop prices, but crop prices are the issue here. Keep going. >> Okay, >> we'll let you cosplay as a farmer in one second. [laughter] >> No, I do need you. Um, on June 5th, 2025, we came on and did a segment. We called this an AI wolf in sheep's clothing with a great entry point for investors. The stock was 500. It's up about 40% since then. This is a fresh breakout happening right now. We wrote it up in July of that year. Then we wrote it up in April of this year. And now we're talking about it again because it is a double beneficiary of AI. Not only is their equipment basically sold out for the building of data centers and the moving of Earth and all of the things that like Caterpillar, Deer in a similar lane, not exactly the same, but they're also now pointing to AI as a driver of earnings growth within their own company and inside of their own products. So, this is the this is really the key thing. You all know the data center story. I don't have to rehash that. Um, they have an 8R line of autonomous tractors. This is not Jim sitting in the in the cab of the tractor. It's literally driving itself. It knows where to go. It's navigating. >> It sits in the cap of a of a Japanese tractor anyway. >> That's right. That's right. >> You know, when I saw this on the lineup, [laughter] I should have taken a bet. I should have gone on Kali. Well, Scott mentioned that I have a Japanese tractor. I'm sorry for the >> Well, this apolog is is self-driving. They also have things like um there's a a thing called see and spray which coincidentally was my pledge name in college. [laughter] The C and spray is a computer vision system that it can look at the difference between crops and weeds and only spray um the weeds. This is AI technology built right into the products. These things are becoming musthaves for commercial farmers all over the world. Um, so not only are they getting this data center build out, but they're utilizing AI within their products, within their company. Um, I think the stock can get to 800 bucks. I really do. There's there's really no reason. Look at this breakout here. So, I'm not saying there won't be a pullback or a red day. >> It's just it it's it's become a a it's become a tech company. I know it's an industrial, but it's basically become a technology company. People are paying them monthly subscriptions just like they do to Apple. >> Record high today, by the way. We should note that. upgraded uh Evercore ISI to outperform too. Go ahead. >> Yeah, I I have owned this in the past and made money, but there's a fundamental basis going on right now. We know what's going on. The crop prices have been going up because of Ukraine. Diesel prices are at almost record levers. I mean, they'll be there in a minute uh as I'm speaking and that plays into crop prices as well. It also Josh plays into the need for very efficient tractors whether it's the engines or as you're pointing out the precision farming technology. So, there is a fundamental. I think we could have an egg cycle next year, too. We We could be like at a low. >> We've been >> Well, there goes the you know, Joe the other day, right? Was it nutrient that that he added? He loves the egg play. U So, I think more and more investors are in fact talking about exactly what you gentlemen are uh and making moves, you know, across the the spectrum of that trade. >> You good? >> Yeah. Cool. >> All right. Great. All right. 3:00. Dan Ies, Kevin Simpson, Chris Harvey, Brian Leven. I'll see you then. We'll track this final trade. Dow's good for more than 600. Bin, what's your final? >> Capital One. Next stop 227. >> Thank you. On a big day for the financials. Who's Service Now? >> Service Now, it's me. Solid earnest growth. I like this one here. >> Yeah, look at that one. The software space ripping today. Nvidia, who's got that? >> That's me. It's just obvious it wants to take out a new high here soon. >> Why Spotify? >> Spotify is about to have a golden cross 50-day, crossing the 200 day. This stock's been consolidating since January. I think it could break out. >> All right. All right. Welcome to Closing Bell. I'm Scott Wer live from Post 9 right here at the New York Stock Exchange. Good to [music] have everybody with us today. This makeorb breakak hour begins with the Waller rally after the influential Fed governor said he's inclined to hold at the September meeting. Yields dropped, hike expectations dropped, stocks, they moved higher. Take a look at the scorecard here with 60 to go in regulation. We've been green all day long and it's more than [music] 1% for everything but the Russell discretionary com services tech leading the way today. Another [music] nice day for Meta as well. We're going to have a report coming up on why that stock is suddenly surging, especially over the last couple of days. Different directions today for both Snowflake and Broadcom. [music] One soaring, the other sinking following their respective earnings reports. We'll dig a little deeper into [music] both those two. Welcome back. The data center debate taking new turns today. The backlash growing. A conference in Austin, Texas, drawing protesters demanding a moratorum there while a 100 billion dollar planned project near a historic battlefield in Virginia sacked. For more, we're joined now by Dan Ies of Yorkville Ives. Just back, by the way, from Nebraska after seeing some data center sites in that state. Welcome. Why'd you go out there? I mean, to me, it's really it's trying to understand this the AI data center buildout. A lot of it's happened in the Midwest and I think it's really trying to get a pulse of, you know, in terms of people that live there, the investments that are happening and when you think about the AI revolution, the hearts and lungs of this are going to ultimately be the data centers. And I think we're going to see this accelerate as we go into the next few months and especially into the midterm election. >> What did you find? There's a good note from Oppenheimer on this topic today in which they say 241 new US data center projects are facing backlash as of the first quarter of 26, more than double the prior quarter. Washington Post today how the data center backlash is growing in state houses across this country. I referenced in the intro to your segment what happened in Austin, what happened in Manasses, Virginia. What' you find? I mean to me look call it a thousand on the low end maybe 1500 data centers that ultimately are either in the process or in motion. Our view is probably about 10% of those potentially 12 15% could get ultimately cut. My view is what I see in Nebraska. You're talking about Southwest Nebraska, the amount of innovation that's happening there on data centers from Meta, from Google, the jobs that ultimately be created, not necessarily in the data center, but the engineering talent, the companies that are going to invest there. And I think part of it for me is that for the first time in 30 years, the US is ahead of China when it comes to tech. But these data centers are they are the key. And I think as we go into the midterms and I see it in the beltway as well, you know, talking to, you know, so many politicians that I view as the biggest threat to the AI revolution. It's not capbacks. It's not use cases. It's not what I view as the bull. It's really politicians getting involved in the AI buildout. >> Okay. So, if that's the biggest threat, are you also suggesting that it's it dies down after the midterms? doesn't feel to me like the people of this country irrespective of what the politicians say and when they say it and how they say it are ready to let the issue die anytime soon. >> Yeah, it's not going to die anytime soon. I do believe we are going into a critical 6 to9 month buildout because if we sit here and you start to have 25 30% of those data centers get voted down then I think the calculus changes. I think that's why this is a key few months ahead, especially what we see in Midwest, Southeast, and a lot of the data center buildouts that we're seeing in key states because what we're seeing play out today is enterprises are accelerating that as they accelerate the AI demand and it goes to the hyperscalers and it goes to neoclouds, it comes down to you need data centers to get built. When you say the calculus changes, if if things you know go the way that you fear uh that they could what does that mean in in terms of what for what does the calculus change? Yeah, I think base case 10 to 15% get cancelled and I think that's something that wouldn't drastically change the bull case if that doubles. What that affects ultimately is customers are going to have to pay more churn could happen. Data center buildouts as that ultimately goes throughout the system. There's going to be a musical chairs where some could be left without a chair. Right. >> Stocks pay a price for that. No doubt stocks would pay a price when you think about hyperscalers when you think about some of the neo clouds even derivative on the software side. My view is it's why we want we're going to continue over the coming months be out there across Midwest across southeast across west to understand in this country to get a pulse from ourselves what's ultimately going to happen. I came away from from our view over the last few weeks, Midwest, Northeast, and what I see, I do think you're seeing ground swells within a lot of these states. They do want to see the data centers built because of the jobs, but we go into the midterms, it's going to be a boxy match debate. >> What do you make of what the Treasury Secretary said from the the G20 that the companies you cover, right, the AI companies, he said, have done quote, a horrendous job of explaining themselves to the American people. And I think we need a big reset on this. They're going to have to take some of the blame. What do you make of that? >> A black eye moment for big tech. Big tech's created a lot of the PR issues. If you tell the average American that they're going to lose their jobs in the next 18 months and their electricity bill is going to go higher, why why would they be happy about data center? Now, you're starting to see a change from Daario, from Almond, from others. But I do agree. I think this is a PR issue with a lot of misinformation, but a lot of it's created by doomsday type of scare tactics that we saw from big tech and now they're trying to course correct. >> Can they do that and and how do they go about that? I mean, I remember gosh, what was it? Bill McDermott, I think, right, the CEO of Service Now, I think, sat on this set within the last 6 months and said there was, you know, for the the job prospects for college graduates was, you know, terrible. That's a paraphrase, but it's the point that that he was making because of what AI means. People hear that, that's your point, and then they grow more scared of a technology they can't physically get their arms around. Yet, I could tell you 15% of college grads that I know, they're working at either a data center in the Midwest or some engineering related job relative to that buildout. And I think that's why Mcderman, I have strong respect for him. But I think that was a tech narrative and job glosses are definitely there. But now you're starting to see that curtail a bit. And this is look, this is a key debate because guess what? Every data center that gets voted down, you know who wins? China. >> China. >> Good to talk to you as always, Dan. Thanks. >> Hey everybody, welcome to Blue Cloud Trading. I'm George. It's Thursday, September 3rd, 4:17 p.m. Eastern time as I'm recording this. We just saw Josh Brown and Dan Ies on Closing Bell. Josh Brown was on the halftime report and some other guests discussing a number of stocks. Now, in this segment, what I'm going to do is go over about Let me just show you very quickly. It's going to be about um well, we're going to look at the indices and gold, silver, we're going to look at oil. We're going to take a look at about 26 stocks and ETFs listed in here. I've highlighted some of the strongest ones with a blue flag, and I'll explain why. And then we'll take a look at one of our members requests, AMAT, Applied Materials. We'll take a look at that as well. Uh why don't we first though before we get started, let's take a look at the indices. And you can see that the S&P 500 was up 1.06%. Gapped up, created this little triangle that you see right here, popped, continued to the upside. NASDAQ, same situation right there, up 1.4%. The Dow Jones gapped up here. You can see it created a little bit of a box right there and then popped above that rectangle. Continued up 1.18%. The Russell 2000 actually gapped up, dropped, created a little bit of a V type recovery right there and it was only up4%. So, uh, if we look at the heat map, we can see here what individuals uh, what's it say? A director of the market pick a sector drop into an industry. Okay, we got some new things going on here. I'll check that out later. Um, but basically what we've got here is Nvidia, Google, Microsoft Meta Palanteer Oracle Apple, Amazon, Tesla. Look at Tesla up 5.42% today. Utility stocks did well. Walmart was up. Industrial stocks did well. The energy stocks declined a little bit today. Basic materials declined a little bit. So, except for gold. Okay. So, let's take a look, folks, at the um at the stocks and and we're going to start off with the S&P 500, the SPY ETF. We can see here it was up 1.04. So, on the daily, I'm sorry, that's the weekly chart you're looking at. Still in a very strong uptrend, as I've mentioned in recent videos, here's that pullback that we had. Of course, what happened? It it popped again, right? So, there we have that pop up today above the 9 period once again. Hence, it gets the blue flag. So, what we're what I'm looking for essentially is in order to basically throw a little blue flag onto any of these stocks or ETFs is I'm looking at the weekly chart and I'm using the Ichimoku indicator which is a rules-based system. It's looking for price to be above the 9 period, the 26 period, above the cloud and we want that chico span, the lagging line to be above the candle 26 periods ago. That's how this indicator works. You can see the future cloud is also bullish. That's when the synchro span A, let me show you what that line is. It's the light color blue line is above the synchro span B. So all that on the weekly, we got all that going on here on the daily chart as well. And so that is what qualifies it for that blue flag. The QQQ ETF. Let's look at that next. I'm just going to go through the daily. I've already reviewed the weeklies on these so I can tell you that the the weekly on the Q's is still very strong. And uh so on the daily chart here we get the cloud bullish price above the moving averages looking strong. Got back basically you know was inside the cloud here for a couple of days and then a pop today. Dow Jones DIA ETF same situation popped back above these moving averages. The expectation now is there's going to be a continuation to the upside just like there was over here or here. you know, when price got back above the 9 period, you'll see a little move back up before it slows down again. EFA um is an ETF that also was up 1.07%. Okay, that looks pretty strong. Uh Russell 2000 on the other hand. It was up4, but the technicals are not on its side. The Russell 2000, um as you can see here, is under the 26 period moving average. The faster moving average, the 9 is under the 26. That's also bearish. Uh so I would hold off on the Russell. Look at the future cloud. That's also bearish. We get the sync span A under the SP span B. So the daily chart does not give us uh the uh green light yet. But the weekly chart, I mean even the weekly charts under the nine period right now. So I'd hold off on the Russell, guys. Okay, Russell looks a little weaker than the rest. Uh the VIX dropped again. Let's look at the daily chart. You can see it's at level 14.29. As I've mentioned before, that's that represents the fear index and the fear in the markets. And if that's dropping, the markets tends to do well. So, we want that inverse reaction. FE the Euro stocks 50 is also looking pretty strong. U but it does need to break back above that 9 period. It's still under it. It's also under the 26. On the weekly chart, it's everything is still good. GLD on the weekly is inside the cloud. On the daily, it's under the 200 and the nine. So, no on that even though it did pop, right? So, found some support here on the 26th period in the cloud and popped up, but we don't have a buy signal yet. Silver, same thing. It's inside the cloud SLV. Bitcoin had a nice move today, up 5.85%, broke through that 9 period. The problem is we're still under this 4668 level, goes back to these prior highs here back in May. Okay. So, I'd hold off on Bitcoin for the time being. Ethereum on the on the other hand did break back above that 2342 level from back in uh April the highs there. The the only thing is it's kind of stuck right now in this box. I call that a base that it's building. So we can break above these um right above those highs there. I think we can um we'll probably see it continue to the upside. The weekly chart is still relatively weak though because the cloud is bearish. So I don't you know suggest the Ethereum unless you're thinking of very short term and you're trading this based on the daily time frame and then you can also you know use another alternative uh time frame like a 30 minute to help you to get a better uh pinpoint you know an entry point and exit when it's time to get out. Oil K is the ProShares K1 free crude oil. Here's a 30-inut chart on the daily chart. We're still above the cloud. Everything looks pretty bullish here on the weekly chart. The reason it doesn't have a blue flag is because the green line here's the nine period is under the 26. All right, let's get into the stocks now. 26, folks. And out of those 26, it was just four that qualified on both time frames, the weekly and the daily. We've got Global X Cyber Security ETF. There's the daily. There's the weekly. So, I like this ETF. I like DE, which is Deer and Company. That was Josh Brown's um stock of the week or whatever. Um and it is looking pretty strong here. In fact, it also broke above this high today, which is a good sign. The ADX down here, the directional movement index is looking bullish. That's when the white line is moving up, the green line is moving up, and the red line is moving down. That's what you're looking for when looking at when using this directional movement index. When you have the opposite, for example, the red line is above the green line and the white line is moving up like it did right there. You'll see a decline occur. Okay, snowflake. And I just use that as a secondary confirming um indicator. I don't I put most of my emphasis on the Ichimoku Japanese indicator. If you're unfamiliar with this indicator, Google it. Very interesting. The history of this indicator is very interesting, too. Excel. Uh, so I like Snowflake looks pretty good on the weekly. On the daily chart today, what's interesting it even though it jumped 16.5% got up to these levels. What happened? Profit taking when you start when you see a gap up and then the the price immediately starts dropping. That's telling us that okay, they people who were holding here decided to to exit their positions. Uh, so I wouldn't be adding a position on this based on the candlestick that's formed here. Let's look at that three minute. That's going to show you guys all the what transpired throughout the day. This is snowflake today. So again, you see the after hours gap. Price gapped up and then just moved sideways for a bit. You can see that little box right there. And then what happened? It got under the box in the 3minut and continued lower higher lows and higher lows. I'm sorry, higher lows and higher highs. That's not good. Uh but if you look at the weekly chart, that's strong. If you look at the daily chart, we're still technically above the moving averages in the cloud. And I would be waiting for a bullish candlestick to form first. Financials, the XLF ETF is currently above 5798. This is at an old level. Let me get rid of that, folks. And let's take a look at um so we're looking at a daily chart here. So let's go ahead and throw on the highest level. It looks like 5840. Yeah, 5840 or Yeah, 58.40. So let's fix that. Let's put that time that specific price in there. Okay, we're using TC2000. That's the charting platform I'm using here. If you're interested in playing around with this, you can get a free uh month by using the the coupon. Okay, guys. Coupon in the description segment. It's an affiliate link. Um I I'll talk about that at the end. But basically, we're stuck inside this box right now. Okay, we're stuck inside this box. And then what happened today? Boom. Popped up above it. It was up 1.54%. I think the financials is going to start to expand some more. Now, that's my prediction. Here's the weekly chart. Still very strong. Here's a 30inut chart. You can see it more clearly how it broke that level that 5840 and it's continuing to the upside. All right, let's go to the next one. Adobe fine on the daily. No problems here on the daily chart, but on the weekly, look where it's stalling right under the cloud. I wouldn't add position here because of that fact. We're still onto the cloud on the weekly and you're taking a higher risk trade unless again you're interested in trading this just solely on the daily and maybe the 30 minute but as you can see even the 30-minut doesn't look particularly great right now. Broadcom, I'm sorry. Yeah, Broadcom AVGO is under the cloud. So I'd skip Broadcom and not interested in that one. BLK is under the two moving averages but we got a nice bullish harami pattern. There's a higher probability the price tomorrow will go up based on this large red candle followed by a small bullish candle. I'll just show you guys the cheat sheet that I like to use and I I share this with you folks as well. Let's go to my profile here. That was pretty funny. BlueCloud Trading. Okay, so I'm under at BlueCloud Trader and what you want to do is just scroll down to the very front of the page. you'll see the candle pattern reference sheet. There's also this um patterns cheat sheet as well. But what you want to look for here under the double candle patterns is this bullish harami pattern. Again, what I just discussed a large red candle followed by the small bullish candle. Okay, that fits within the body. And harami in Japanese stands for pregnant. So, it's easy to remember this this pattern. and you can I I would recommend that you learn about candlesticks. It's really important, folks. Okay? It will help you with your trading. So, BLK has that right there. It's still under the moving averages. Um and uh let's take a look at the weekly chart. The weekly chart, the cloud is still bearish, but it looks like it's going to pop above pretty soon that segus span A is going to pop back above sep. Croup is above 13529 right now. Again, I popped right back above that 9 period. Looks good on the weekly. Here's a daily chart. The daily, we've got a bearish cloud, so I would hold off on Cityroup. Um, Sienna Corporation is still under the cloud. You can see that it broke under the lows here. That's not good. It's probably going to continue to the downside. COF, we've got uh price above the moving averages, but the nine is under the 26. So, no on that one for the time being. uh DR AM the Roundill memory ETF is under the cloud. So no Google is uh just entering the cloud. So that's a good sign. It was up 1.59%. But notice how the directional movement index has been crisscrossing itself. That's when price isn't there's no clear direction here. So I'd hold off on Google. Robin Hood on the other hand up 16.57% on the daily chart. Looks great. Uh it even broke and closed above these highs right here, right? that high of uh one what was that 1205. So it's at 12472 now. Why does it not have a blue flag? Um it's the weekly chart. The cloud is still bearish here. But overall I like this chart. I think there's a high prob higher probability than some of the other ones that don't have all the elements in place. And here's a 30inut chart. HPE on the 30 broke through that cloud. It was up 5.03 03 on the daily chart. It's under the 26 and the faster moving average is under the slow. So I'd hold off on Hila Packard. IGV the software index fund is above the moving averages and above the cloud on the daily. But on the weekly chart the cloud is still bearish. We got resistance at 11085. In it is under the cloud and under the 26 on the weekly chart. I would certainly not add a position in this particular stock. JP Morgan is breaking up above these all these moving averages. As you can see, it's been moving up steadily since it broke over here above both of the moving averages and it's up a little over 13%. Here's a daily chart giving us actually a nice buy signal right there. Um, so I kind of missed that one. I should have uh given this one also a blue flag. So there we go. Microsoft looks good here on the daily chart. What about the weekly? The cloud is still bearish. What about Service Now? That's inside the cloud. So, no on that one. NTP or NetApp Inc. looks good here on the weekly. It passes all the tests. But on the daily chart, it's u under the 26th period. So, no on Entap for the time being. But I like the the type of candle that formed here today. The fact that it gapped down and then buyers stepped in and buying it up. That's really a good sign. It really tried to retake that 26 period was what was it was unsuccessful. Uh it also made because of that big down move. Notice how it affected the directional movement index making it bearish. Oracle is still inside the cloud. Nothing happening here really except for the fact it was up 5.69%. And and one of the rules of Ichimoku is you shouldn't be adding positions when price is inside the cloud or under the cloud or under the moving averages. And it's always important to take a look to see where that 200 day that dotted yellow line is in relation to price. If it if price is under it, that's also bearish. Spotify looking strong here on the daily chart. Very strong on the daily. Breaking through some highs here. Was unsuccessful over here and breaking above this high though. Let me go ahead and throw on that level. The high there was 57064. Okay. And it is a weekly level. We'll color it light blue to signify that. So let's see if it can break through that level. But on the weekly chart, we're still inside the cloud. Okay. So no on Spotify for the time being. Toast is inside the cloud. So no on Toast. TTAN Service Titan Inc. is inside the cloud. No on that one. Uber is under the cloud even though it broke this downward channel. I would hold off because it's under the cloud. And we got workday, which is WD-Y is the ticker symbol. Broke above the cloud but under the 200. And the future cloud is still bearish. So no on that one. Let's take a look at one of our members request. Here's the weekly chart for applied materials. It's been pulling back a little bit here for a little bit. Uh it is still above the cloud. That's bullish the fact that it's above the cloud. But would I be adding a position here? I wouldn't because of the fact the price is still dropping. Uh look at the daily chart here. It you know you can see it's under the cloud on the daily. The 200 is rising. It will probably find some support right there and I would be watching these levels. Now you can see here there's a low right there of 43633. Whoops. So you throw in a level there. What was that again? 430. Let's see. 430. 43633. Yeah. And so it got under that level. It closed under it with a bullish candle though, a reversal type candle, a hammer. So when you see that little body and the white or the wick that you see right there, that's a hammer. We'll see if it can pop back above tomorrow. Guys, that's going to do it. If you like what you're seeing and you want to learn a little bit more about my channel, go to my channel here on YouTube, BlueCloud Trading, up here. There's a whole bunch of links. Click on more. You can read about my channel. Scroll down. If you want to join the community, become a member. Click on the YouTube or this first top link right here. If you do, it will bring up this box. All right. And if you want to see the promotional, I'm sorry, if you want to see the exclusive member only videos that I post, become a Blue Cloud Trader. If you want to get daily trade updates on my trades, BlueCloud Legend is the level that you want to select and hit the join button. So, make sure you select the right one. Okay. Under BlueCloud supporter, you can request a stock to be analyzed on an upcoming video. Let's see, what else should I tell you? Click on the 10 more links right here. Scroll down. There's a $25 coupon for the TC2000 software, the trading platform that I was just using. Click on that link, enter your email here, okay, and download it for Windows. You can also run it on a web on the web or a Mac. And here, as you can see here, you'll receive a $25 coupon towards TC2000 courtesy of BlueCloud Trading. And here's the pricing structure. So if you want to upgrade say here so if I select monthly for example you can see you can use the basic for free for one month but with that coupon as long as you haven't used the service in the last 12 months if you select premium you'll get a lot more features and you may want to consider doing that if you find the basic to be pretty basic which you will uh there's a lot of features here under premium and if you want to go all out premium plus is the way to go really uh that's what I use and there's a whole lot more features here. As you can see, all the features plus you can track up to a thousand stocks with alerts. Under the under this level, premium, you get up to 100 alerts. And under basic, you do not. So, that's going to do it, folks. Thanks for watching. Thanks for supporting my channel. I appreciate you all. We're getting very close getting very close to hitting 33,000 subscribers. So, help me get there and I'll catch you all in the next video. [music] The ichimoku guiding [singing] light. [music] Blue cloud traing [singing] through the night.