Were pretty active in the investment committee. Amy raskin, i start with you. You sold nike. Yep. Seems to me from the notes here you had it. We trimmed half our position, we spoke about a couple months ago, but were done. The company is just not executing as well as it should. The brand is still great. We could come back to it at some point, but theyre not executing right now. China is a risk for them, and, so, were out of the position. The stock is down 14 year to date, down more than 20 over a year. They certainly have had what i think people would suggest is an innovation slowdown. Yep. The company sort of acknowledged that. They blamed remote work. Which was terrible. For that. Their competitors somehow figured it out. Hoka, on, new balance can you sort of go down the list lulu are rising competitors. Theyre all sort of part of the sell pie . All part of the sell pie. I really did not like the explanation we couldnt innovate over zoom. Everybody else sort of figured it out. They just made a bunch of missteps, and hopefully theyll come back from it, but i see no signs of that right now. Okay. I want to get a comment, josh, from you on this. This is obviously one of those, josh, these blue chip brands that the stock has done terribly. I know you dont own it, but im sure you have thoughts regarding amy getting fed up and just saying, enough is enough. I feel like there are a lot of stocks right now just like this in the market, and were seeing this happen one by one. It actually really reminds me of starbucks, and i was talking to someone who was pulling the trigger on starbucks because its a great brand not executing, just like this situation. And my comment was like, look, there have been five turnaroundsish that i can remember in the last ten years in that company, but typically you have time because theyre not a one quarter phenomenon. So whats plaguing these companies, i think, is just fatigue on the part of the consumer. In some cases prices are too high. In other cases theyre being outexecuted or theres more creativity at a competitor, which is, i think, whats going on here. But, regardless, it typically takes more than one quarter to turn a ship this big. I would say i dont disagree with amy saying, you know what, i need to move on and do something different. And for those who are looking at this as an opportunity, you might be right, but dont think that its going to happen right away because these things take time. So that would be my stance here. I have no position nor am i particularly running to get involved here regardless of how much its down off the high. Amy, you also sold another stock thats had a lot of trouble. Thats cvs down 30 year to date. Jim recently sold it. Had enough of that. Why did you sell it . The execution is just terrible. They zigged exactly when they should have zzagged. This was never a thematic position. We didnt have a lot of love for it. I might be selling at the bottom but, again, i think when something happens like this, you either have to double dounl or sell it and we werent prepared to double down. It says a lot to me, sarat, amy acknowledges, hey, maybe i am selling at the bottom but i dont care. Theres been enough missteps and i dont trust a turnaround is in the near future. You still hold this stock and maybe a collection of our viewers do as well. I do. Youre getting almost a 5 yield, trading at seven times. I agree with amy, bad, bad execution. And messaging all rong. Even a month ago they didnt announce what we just found out when every one of their competitors including United Health said, hey, this is all were going to expect. I bar belled it. I have cvs on one side, United Health on the other this is a devalue play now. Its not like United Health has been a bar burner. Their Management Team has more credibility. Im not calling for a catalyst, but you could see something happen at cvs. In other words, my point was, if thats your bar bell, the bar bell is falling on your chest. Well, you had some external issues with unitedhealth beyond their control, which is medicare advantage. I do think they are executing well within that. Cvs has not been. And i am adding more to cvs. Its one of my deep value plays and at a valuation of seven times. Talking about nike and starbucks, theyre trading at 20 plus times earnings for a turnaround for those, you need a lot more. Here im not looking for a triple but im looking for the stock to come back to the 70s and 80s and at that point depending on who is still running the ship, it will be whether i stay or go. Its interesting to me, you you have bought more of a stock thats down a lot year to date yes. Rather than throwing in the towel like amy has done. Lamb weston is down 20 plus percent year to date. You bought that. We did. Lam weston, they have had a couple things happen. One is the glp issue that we think is more noise, and the second one is historically you have a couple quarters where things are not as well executed. Its a great business. Its 12 times earnings, high cash flow, good dividend growing. And at 20 down its a high Quality Company we want to own. Speaking of Health Care Related things, you bought more vertex and novartis. We trimmed vertex. We like the new alpine acquisition. They have a lot of shots on goal. The holy grail will be for their Pain Medicine, we wont find out until next year. We think they have catalyst between now and then. What about novartis . Novartis has underperformed for a little while. We think thecompany they had a really good earnings report. Theyre focused on shareholder returns and returning and streamlining the business. We think they have some patent expiration issues coming up, but theyre still 13, 14 times, and we think the company can get through them. The other thing to watch for in pharma, so much has gone to eli lilly and to novo. If some other companies can execute, you get a lot more capital at a much cheaper valuation. Its going to become that big four, the big two in pharma. If some of the others can execute, youll see some cap. They have been going to glp1. Hard for anything else to raise its hand, hey, take a look at us. Were developing some potentially lifechanging drugs as well, but thats where the story has been. And it used to be you get credited phase 2 coming into phase 3. Now you dont get credited until the approval. The risk curve a big Pain Medicine that could be huge. You want to buy it now if it happens not when it gets approved. Farmer jim, you sold reit, Camden Property trust. Its my only reit. Im not too enthusiastic about reits. Camden property is an apartment reit. I hate having intellectual conflicts. Were sitting here hoping for inflation to come down and one of the major components that will make that happen is apartment rents coming down. I cant be hoping their rents go up, that just doesnt make sense. What did you say, josh . Its a hedge. Okay, fine. To me i hear you. To me its a conflict. The other thing, im just not passionate about it. Josh, you said something really interesting a second ago about the companies out there that are not executing, and as you were saying that, i was trying to myself, theres a lot of other companies that are executing. I want to focus on those. There are so many stocks doing well. Camden properties, ive held it for three years, ive gotten the dividend. Nothing else. Im not excited. I dont wake up about it excited so im damming it. I like what josh said, its a hedge. Why dont you look at it more like that where you obviously seem reasonably unemotional about it where like a weiss, for example, reminds me yesterday he owns a lot of the mega cap tech, but he sold the qs. Just as a hedge. Nothing more. Yeah, i heard him. I thought it was a good argument. I cant im not excited. Do you hear the lack of excitement . I want to be exciting on the show. Give me something else. A position used as a hedge against a long in other areas . I should have it as a hedge, thats a mistake im willing to take. I mean this seriously. Im not being snarky at all. I actually think the economy is doing very well. I think inflation will be coming down. All these other things, these citigroups, these wynns, general motors, will be doing fine. Sitting in cash, you know, i have things that i can do with that cash if i feellike my tune on the economy changes. Josh, im going to get to you in just a second but i have some news i have to get to with steve kovach regarding oracle. What have we learned . Reporter this is shares up 3. 5 or so or a little over 3 after an information report citing one Single Source, that exa. I. Is closing in on a 10 billion deal to host a. I. Activity on oracles cloud servers. This would be over a course of a number of years. By the way, x a. I. Is probably trying to raise billions of dollars and give massive amounts of equity to backers as part of that big fundraise. As we know it takes an enormous amount of cash to run these a. I. Systems, but it sounds like at least, according to the information citing one Single Source here, that it would be a 10 billion deal to run x a. I. Thank you very much. Sarat, you have oracle, dont you . My reason for owning oracle was the ability for the Cloud Business to keep on growing. And this is an example of why we want to own it. Once they went over the Implementation Phase moving from database to cloud, the stock is reflecting it and the multiple isnt where the others are. I can get excited you own it, too. They built all those data servers, remember two or three quarters ago when the stock got sold off hard, because they were doing the capex to build out the data servers, two or three quarters later theyre reaping the benefits from. Folks, thats what investing is. Traders are awesome, but sarat and i invest. We look at the capex, say its going to pay off, and here it is. Josh, you used to have oracle. What were you going to say prior to the report from steve kovach . I forgot already. Can i weigh in on oracle, though . Of course. Okay. I think whats really great about the situation for longterm investors in oracle is that you really have a stock that is on the verge of taking out a new valuation level, but its not overbought at all. One of the big problems that we ran into in february and march is that there were so many Great Stories like a. I. Related stories, et cetera, software as a service story, semiconductors, but most of them were, like, at 75 and 80 rsis and, quite frankly, thats just not the case here. So im not in the stock, but if i were, i would be sticking with it right now, because i feel as though theres going to be room. So, like the shortterm moves, maybe dont pounce on them right away, but this is a chart in an up trend and i like it a lot. Josh, get in it. This is your type of stock. Get in it. I know you. Youre going to be in it. I think youre going to get 150 on this. He was in it. He is in uber which, by the way, jason snipe joins us now, another committee member, because you bought more of this stock, jason. Tell us and well get reaction on the other side from josh. I did, scott. Good to see you, man. For us, we missed this one last year. The stock is up close to 70 the past year. Its down, however, 18 in the last three months. And when i looked at the print last week, the stock was down around 6 , and this is a relatively new position for us, so weve been looking for small pullbacks in terms of trying to add here. We took that opportunity and, guess what, Audience Growth was up 15 , still growing the top line at 20 plus percent. Really strong ebitda margin expansion. There were a couple slight misses on delivery and freight, but i think those will be temporary scott, and theres a lot of Forward Momentum in the stock. We decided to add to our core position here and kind of play it out and game it out over the next couple of quarters. What do you think, josh . Look, this is a stock thats now in a 21 drawdown from its recent high, and is an rsi 35, which looks pretty washed out. So i like it as an entry point right here, i think its a smart buy. Sarat . Look, we trimmed it earlier this year because we had luckily enough or fortunate enough to buy it last year. Were watching this one for cash flow. They were supposed to buy back shares to make it net neutral. The question is the cash flow growth. They had an agreement overseas today, so i do still like it. Its lesser positioned. They just need to execute and, by the way, they use oracle for their cloud server. Good stuff. Jason, thank you for joining us. Well keep it quick because i want to keep everything moving along. Well see you soon, im sure. Jason snipe adding to uber and joining us to tell buus about i. How about these markets . I feel like now weve digested ppi and waiting for cpi tomorrow morning. Ppi he called mixed and the market is sort of acting that way. The market itself is mixed. Bofa in their may fund manager survey, amy, says sentiment is the most bullish since november of 21. Whats it driven by . Optimism on rate cuts other than earnings. What do you think . Ive been reading a lot of notes. If earnings if Economic Data is bad, its good because were going to get rate cuts. If data is good, youll get earnings growth. So everybody does seem pretty bulled up and theres no downside in the market, which is a little scary. I do think as long as were pending rate cuts, its hard for the market to go down a lot. The debate seems to be, guys, centered around sarat, the broadening of the market, whether that is actually sustainable or if all of these a. I. Related announcements that we seem to be getting every day and well talk about google in a minute if that is just more evidence of why the money is going to continue to gravitate towards that trade and dont forget nvidias earnings are on may 22nd, so those are fast approaching, too. Well, thats going to be very important for the overall market, but i do think the broadening is more important than just a. I. Announcements, and if we can keep on seeing that and within the market, if you do get stocks selling off but the market continues, thats very positive for the market. Were not having just stocks selling off. No, but bank of America Equity client flows today, clients have been buyers in 27 of the last 28 weeks. Tech also seeing inflows, true in eight of the last ten weeks. The money continues to go to these stocks. And even when some of these names have been pushed lower, alphabet was a good example yesterday, the stock rallied back, and that was when open a. I. Held a refresh day on its chatgpt. Deirdre bosa is following this story for us today for alphabet, and she is in Mountain View, california, with the story. Dee . Thats right. Im at the shoreline amphitheater and the keynote is supposed to kick off about 45 minutes from now. And let me give you some context. At times over the past 18 months, scott, theres been a perception that google has been playing catchup in a. I. Even though it was there first. Look at the stock price. Since november of 2022, thats when chatgpt was released to the public. Google stock is up about 80 , and thats actually a slight edge over microsofts performance. Microsoft which, of course, has a partnership with open a. I. And tells you how neck and neck this race is. This week were getting a glimpse of the next battlefield here. Thats a. I. Agents and voice assistance. Open a. I. Showed us it can emote and reason and tutor you in math. Today we are expecting similar capabilities from googles gemini. Will they go beyond that even . Will google leverage its massive scale in distribution to roll gena. I. Out more widely . As we look ahead to the other big tech conference this is season, the potential of an open a. I. Partnership looms large, so can google get ahead of it today . Do not miss my interview with ceo sundar pichai. Well be talking about that and a whole lot more and reacting to the event happening very soon here. Good for you. Good get. Well look forward to that 4 30 eastern, deirdre bosa in Mountain View for us. Dont forget about that interview coming up later on. Jimmy, its your biggest tech position. And its easily i find this so easy to own it. Whatever the forward multiple looks like, 22, 23 times, they have so many shots on goal here. They have the search business. They have youtube. They have google web services, wamo, everyone is trying it. Maybe theyll succeed. They have other moon shots, buying back shares, actually has a dividend, and the whole thing where for many times the last year and a half people have sold the stock saying theyre a laggard in a. I. Is just preposterous. Its flatout preposterous. They bought deep mine many years ago. They have the resources. And every time the stock has sold off on perceptions of being a laggard in a. I. , its been a huge buying opportunity whether it was february this year with the a. I. Generator or february of last year when bard first came out and blew some question. Those are buying opportunities. At this multiple with all shots on goal, its easy to own. Amy, you say youre not overly excited . You call it a showme story. You want 45 a year versus 33 from microsoft . We own google but i do think google is potentially most at risk if a. I. Takes off in a huge, huge way. Now thats not our bet, but they own search. Search is a natural monopoly. They make so much money from it. We think that lasts longer than other people. I dont think theyre selling off because theyre behind on a. I. , i think they get selloffs when people get excited about a. I. Because people are worried about that franchise of their business. The hype around a. I. Is to the detriment of google or puts negative sentiment on google because they think thats the company that will be most disrupted. Again, im not necessarily saying im in that camp because i think a. I. Is from a profitability perspective you feel about it like i feel about Camden Property trust. I dont know why we have a dissidence on this. I cant tell if you want to own it or not. I do own it, so i do want to own it because i own it. Its not a huge bet for us. Josh, do you want to settle this one . You own the shares. On alphabet . Well, its no Camden Property trust, but, i must say this is one of the best performing large cap stocks in the market. Again, not quite yet overbought here. Actually has a lower rsi right now than most of the mag 7 including apple, believe it or not. So i think look, i think this is i think this is a situation where if youre going to be a shareholder, youre just going to have to repeatedly contend with these periodic outbursts on twitter about how google is losing to blank, fill in the bla