Closing Bell: Navigating the Tech Sell-Off 6/5/26

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**SPEAKER_3** (0:56)
All right, guys, thanks so much. Welcome to Closing Bell.

**Scott Wapner** (0:58)
I'm Scott Wapner, live from Post 9 here at the New York Stock Exchange.

**SPEAKER_3** (1:02)
This Maker Breakout begins with what else?

**Scott Wapner** (1:04)
The tech sell-off and what it might say about the market's potential next move. We'll ask our experts over this final stretch, including the Wharton School's Jeremy Siegel, Fundstrat's Tom Lee, Hightower's Stephanie Link, all joining me momentarily. There's the scorecard with 60 to go now in regulation. Big selling in chips again has led the NASDAQ to its worst day since last October. All of the big recent winners, they are down substantially, especially from the chip space. AMD is down more than 10 percent, Micron is down nearly 12
Broadcom has been a big loser on the backside of its earnings. Did it start this whole thing?
We'll investigate further elsewhere. Well, there's green in the most defensive areas of the market today, like health care and staples and utilities. But let's get right after this market, this late day slide, especially for Meta, that's new news. At least a report that it too is considering now an equity raise to fund its AI ambitions. Take a look at the stock. It's come off its worst levels. But nonetheless, it is a new story and a negative one, at least for the price action in this market related to tech. Let's bring in Hightower Stephanie Link. She owns the stock. Fundstrat's Tom Lee is with us as well. Both are CNBC contributors. Steph, it's great to have you here.

**Stephanie Link** (2:22)
Thanks.

**Scott Wapner** (2:22)
We were walking to the set and you stopped me and said, I just sold some of my meta. What are they thinking?

**Stephanie Link** (2:31)
Right. They're tone deaf.

**Scott Wapner** (2:33)
Tell me more.

**Stephanie Link** (2:33)
They're tone deaf. They're already gonna spend more than people wanted them to spend at $125 to $135 billion this year. It's up from 74 billion last year. I get why they're doing it. It's okay, but the shareholder base at meta, they don't want them to continue to spend like drunken sailors. And so this is a company, Scott, that has spent $82 billion since 2021 on reality labs with 80 billion in operating losses. And now they want to spend all of this cash, go through their free cash flow. Operating margins are under pressure. So I just felt like enough. Now I still own it, because I still think they're doing the right thing for the long term. And they are seeing some monetization in terms of time spent. We talked about that in price. They're getting some good pricing on their ads, but this is just enough, enough.

**Scott Wapner** (3:25)
Well, how do you want them to fund what you continue to believe is the good long-term story? I mean, if you're just running down your free cash flow, you need to look at alternative sources of capital, which is what Alphabet announced this week.
Now, this report suggests that Metta is looking to do the same.

**Stephanie Link** (3:46)
Right. Well, I don't want them to have negative free cash flow. That's the same thing with Amazon. I don't want them to have negative free cash flow, but they do. Same with Oracle. I have to be consistent. I don't need to be investing in these names while they're in this heavy investment mode, because you're not going to get the operating leverage. I talk about that all the time.
When you get done with the spend cycle and you have the revenues, and then you have the margin expansion, that's when you really do want to buy. Now, the stock is not expensive, but I just think it's probably stuck here for a while. And into this sell-off in tech, I want to be adding to positions in tech.