SOTS 2nd Hour: Delta Flies High, Shark Tank’s Daymond John, Exclusive: MP Materials CEO 7/10/25

Carl Quintanilla (0:06)

Good Thursday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with David Faber, Leslie Picker at Post 9 of the New York Stock Exchange. Sarah Eisen has the morning off. Bit of a mixed bag today. Indices are split. Sectors, a few up, a few down. Industrials leading the charge, along with some consumer discretionary. Yield backdrop, a little constructive. We'll get some FedSpeak beginning this hour and into the noon hour as well, with a 30-year note auction at one. Ahead this hour, Fundstratz Tom Lee is going to join us. We'll get his view on how much more upside he sees in the market as the Nasdaq and Bitcoin set record highs. And then shares of Rare Earthminer MP are surging this morning on news of a major investment from DoD. Company CEO is going to join us exclusively.

Leslie Picker (0:48)

But first, we're 30 minutes into the trading session. Here are three big movers we are watching. Small cap consumer products maker Helen of Troy is sinking this morning on week second quarter guidance. The company says it's working to mitigate the impact of tariffs, but those shares down 21.5% right now. Delta is jumping after the airline topped quarterly earnings and revenue estimates and reinstated its 2025 profit outlook. We'll have much more on that move up 13% ahead. And Kellogg is spiking on news. Italian food company Ferrero has agreed to buy the cereal giant for around $3 billion. Lots of deal activity, but in the meantime, WK Kellogg up 30.5%.

Meantime, the Nasdaq coming off a record close, boosted by NVIDIA, which just became the first company to hit $4 trillion. $4 trillion in market cap. Joining us now here at Post 9 is Tom Lee, Fundstrat Global Advisors, Head of Research in Fundstrat Capital, Chief Investment Officer, also a CNBC contributor. Good to have you, Tom. So how are you, if we could just take a step back, how are you thinking about the whole NVIDIA phenomenon at $4 trillion? $4 trillion against this backdrop of just broad AI demand, as well as just appetite in the market for kind of this risk on sentiment as made evident by the Bitcoin move.

Tom Lee (2:07)

Well, to me, NVIDIA being the most valuable company in the S&P makes a lot of sense. I mean, that's scarce. I mean, how many NVIDIAs are there in the world, right? There's 50,000 stocks. There's one NVIDIA. And so it is scarcer than Da Vinci. So I do think the multiple at around 30 times is actually not that extended, given how important they are to the AI ecosystem. So I think there's earnings visibility and then there's multiple expansion potential.

Leslie Picker (2:36)

Multiple expansion potential for NVIDIA, as well as just the broader Nasdaq from here. Do you think there are significant catalysts to the upside?

Tom Lee (2:43)

Yeah, I think to the extent that there's companies that are producing durable, sustained earnings growth, whether it's the Palantir's or the NVIDIAs or the Teslas of the world, they do deserve higher multiples and, you know, something that we've been writing about is how this market endured six, essentially, black swans in the last five years, thrived in terms of earnings. Normally, we would assign a higher market multiple to that. And believe it or not, the mean S&P PE, so if you do the S&P equal weight, was 17.9 on the eve of COVID. It's about 0.7 turns lower today. We're like a 16 mean multiple, meaning the market got cheaper after six black swans. I almost think we should be expanding that PE.

Carl Quintanilla (3:26)

There are some complaints this morning about, again, market concentration, right? When you got the top 10, is it 40% of market cap? NVIDIA loans, almost 8%.

Tom Lee (3:35)

That's right. But then again, these exact companies are a huge share of earnings growth, you know? So I think that the S&P is benefiting from the fact that it is sitting at the center of AI, which is a huge global driver of cap expenditure. And it's going to help S&P earnings. And then the other piece is, of course, financial innovation, which is taking place. I mean, Circle and the cryptos have shown that that's another piece where there's a lot of earnings growth. And again, that's a, you know, that's a growing share of the S&P.

David Faber (4:06)

Tom, I wanted to spend a minute, if I can, talking about a company called Bitmine Emergent Technologies. You recently became chairman of that company, correct? That's right. I want to ask you a few things and just see if I got this right. Now, the stock I mentioned hit 161 very recently. It's been very volatile. The company did a pipe, 250 million I think sold as many as 55 million shares at, I guess, 450 or so a share, correct? Yes. Those shares have not yet been registered, is that correct?