Meta’s Latest AI Agent… And An AI-Powered Hedge Fund 9/8/26

0:00It's NFL kickoff time exclusive NFL team valuations with sports business expert Michael O's A.N.F.L. is by far the most popularly NFL team valuations now on CNBC dot com slash sport. Live to the Nance Eck Market site in the heart of New York City's time to spare this is fast money. Here's what's on tap tonight. That is moment shares of the social media giant C song after the company unveiled its much anticipated personal AI agent could news be a game changer for what individuals and businesses and what could it mean for the hyperscaler space. Plus copper prices hit new records one time retail darling T.J. X gets put on the discount rack. Everything we expect from Apple's big iPhone event tomorrow and AI at work. That's my friend Brian Kelly has reinvented the way he does business with the technology. He gives us the sneak peak at his new work life and how it's changing his trading landscape. I'm Melissa Lee Compton live from studio B. at the Nasdaq on the desk tonight Tim Seymour Karen Pryderman Dan

1:00Nathan and Guy Adami we are going to get to all of today's market action to minute but we start off with meta giving up early gains after the company unveiled its AI agent news would be its first personal AI bot not just answering questions but actually performing transactions on users' behalf for the latest on this let's bring a really abortion in LA Julia. Well Melissa meta is unveiling this personal AI agent that goes head to head with Open AI Google and inthropics agentic tools. It's a new app called Muse and also a tool you can use within WhatsApp it gives users a personalized agent which acts like an assistant it can monitor your security cameras fill in paperwork find items to buy or book t-times. Users can also create a feed to keep tabs on news social updates and the like. Now this new Muse agentic tools rolling out today with a free tier as well as more advanced tiers for power users for $20 and $100 a month for those two tiers. Now I spoke to meta AI Chief Alex Wang who said they see a huge opportunity in giving meta's massive user base access to personal AI agents

2:05with future opportunity to monetize shopping via its agents. Wang telling me quote we think the commerce business model is potentially really interesting for this product because of how much it enables people to actually find the things that they're excited about and ultimately fulfill a lot of those purchases. Now mid-growing concerns about AI cybersecurity risks. Meta says this agent is built to be private, safe and secure. It will ask for your permission to use your credit card and will draft emails but won't send them without explicit permission. Melissa? It will also hide your credit card number correctly. It's going to set up sort of like a fake card not a fake but I mean a proxy for your credit card so that actual number is not exposed. Exactly and they're doing the actual purchases and partnership with Stripe. Patrick call us in from Stripe Wang and on this today on X. So they are finding ways to enable you to make purchases. They obviously don't want your agent going rogue and buying a lot of things that maybe you're just thinking about but forging those partnerships with the likes of Stripe to help with that security there. And then does Meta only profit

3:11on the on the subscription for this agent or does it also get a cut of the transactions? Well so right now they are going to be profiting from the subscription. I asked Alex Wang if this is an incredibly expensive thing to operate. If this is going to be a real money losing endeavor for them and he said that because their AI models are so focused on efficiency they can offer a lot with for that free model without it being hugely expensive for them but they do see their opportunity to get those power users to pay for that $20 a month tier or $100 a month tier. As for the monetizing the shopping it seems very obvious that they could take a cut. He said there's that's something they're thinking about down the line so it does feel like that'll evolve. All right Julia thank you Julia Borsden also says how we should think about another way Meta could monetize its AI spend. Does it make you feel better about its efforts? Well it's good to see something gets okay it's out it's a product it not that they don't have other products they do but that it will see we'll see how quickly

4:11adoption happens and how much people like it and also I think we're going to see competing products as well but it's something right when when such a so much of the negative part of the Meta story is spend spend spend with no revenue no return on capital and site maybe there is one now I think the stock has been up ahead of this when it's had a nice run in the last couple of weeks you're way by the way I cannot tell you how excited I am. Yes. That's what it is. It feels kind of like the first day of like home room or something right? Yes it is. First I got a nice haircut. Yeah Melissa stop the hair. Not the tea for really but you're the leader. I don't know anyway. I heard cut. Anyway. It's good. Just check in. As for Meta. Yeah I look very consistent with what Mark Zuckerberg has been talking about this is links all the way back to his manifesto but really where they've been all along and and you know clearly trying to separate biz versus consumer oriented and if you think about Meta was the first

5:13really to rally of the hyperscalers on when we actually were starting to to understand who is going to benefit who is going to monetize and it's interesting and it's fascinating and to the extent that they are staying in their lane it is interesting. I mean who gets paid every time I buy something through my through muse I mean I think it's absolutely going to be met I don't know how this is going to work but why wouldn't it work that way that's kind of how they get paid now. So I they shouldn't be vilified but let's understand what's really going on here. So I don't know if it breaks the downtrend of the stock I think we're still worried about a free cash flow dynamic that's negative so you know it's exciting news but I'm not sure what it does in the stock. All things being equal this has the potential to be massive right there's two things going on here one a subscription base which I think again this is kind of the holy grail especially if you are met and you have multiple products that have multiple billion monthly active users right and what's app is one of them in for 10 years since this one what's app acquisition you know a lot of folks have been asking how are they going to monetize this and you know that whole B2C that was always the

6:16promise well here it is right now now as far as competition is concerned I'm Gemini has Spark Gemini also has distribution that looks like meta and this might come down to the models you know I've been using something called instinct this is you know another AI assistant guy you're you're on this thing right the AI assistant instinct and it is amazing so you got to trust these things I mean that's at the end of the day you know we've seen agents and swarms and all this stuff going on you know you're getting it for this thing to work properly you need to give it a lot of your information so I guess the question is who do you trust I don't trust Mark Zuckerberg I don't trust their ability to come up with products that are going to be able to compete with those who are more focused on privacy if you look at meta they failed us they failed we're focused on privacy I'm wondering do we have an idea well Apple might be and let's see what happens to see on the stood true but that's kind of their thing so again I mean I think it does come down to trust and I think if you look back over the last call it 20 years or so I don't think we can trust meta as it relates to our best interest and what they've been trying to do they hacked our brains they broke our brains and here

7:19we are right now but again I think the product in general has the potential to be huge for any of these large kind of distribution platform and clearly Gemini and Alphabet is one of them in Apple let's see what they got tomorrow with Apple Intelligence. Hi we missed you miss you any audience did us well more importantly yeah well not to cast aspersions because the no I's nothing to do with that job this is this is all about to be missing someone we care about it's nice after like six months away that Mel is back matter of trust after plan it exact is on 3.6 billion people right I mean so to Dan's point there's tremendous upside with this if you think about and I think there's limited downside and the stock that I think made its all-time high almost a year ago this week ish at 790 is this going to be the inflection point clearly on valuation you can say that it is then a report I think until April excuse me October 28th so this might be the point we go back and say finally Facebook is turned I think this might in fact be it it also sounds like it keeps you within the meta ecosystem and on its platforms longer and so to the extent where your eyeballs are

8:24engaged and locked on to a meta property that's a positive thing for the other properties as well well ever since the metaverse you just wanted you in the metaverse right maybe this is the new metaverse this is the different metaverse it's not I don't know that it's it the stock is up like maybe 13% in the last three weeks so that's not nothing yeah but I do think it's um I think sort of game on for them right now we'll see well I mean I don't know how long it'll take Dan maybe about how quickly this adoption happens and how long does one have for a product to come out and be voted as this is the greatest thing and this is the right or not I don't know it's not a lot of time right right but I this is something right I think it had a long time it did have a long time doing nothing that's true yeah 15 million 50 million seeds right that's true yeah um and now sort of on a not upswing yeah I think we're all saying the same thing I wouldn't count them out um I think the AG settlement right now is huge for the stock and for sentiment and if it needed that plus

9:27this um they may be right this may be a move yeah one thing I'll just say about Gemini and Spark I mean it works really well with Gmail it works really well with your calendar it works really well with like YouTube and that sort of thing and I think that when you think about meta they just don't have that they don't have email they don't have some of these other products so again if you love them digging through your social apps that they kind of own when it comes to the blue page or Instagram or Reels um that sort of thing um you know it might work really well but across platforms let's see because I think some of these folks are gonna start shutting out their competitors right if you're Gemini Spark do you want you know folks to be leaving there or to be integrated with Instagram or Reels that sort of thing so I'm not sure I think that this is uh pretty much a show me I we shouldn't get too geeked up about it right now because we're a ways away from the tip you see the most geeked up oh I think it's a game changer for the entire industry when we've been talking about how do you monetize you know this investment these things right we're going to look back in a few years and agents agentic sort of AI is going to be the thing so let's see who wins

10:32it doesn't have to be a winner take all all right meantime inflation back and focus to start the week as oil prices hit nearly three month highs biking late in the session after new strikes in the middle east new data from the New York Fed also showing inflation expectations remain elevated all this ahead of Fridays CPI print for August for more on what this all means for the markets let's bring a dance Skelly portfolio manager Morgan Stanley wealth management Dan great to have you with us good to be back how do you how would you characterize where we are in the markets given we we're sort of at the top part of the range that we've been in for the past three months we've had a lot thrown out the markets we had a great earning season we're entering seasonally tricky period so where are we and it's been tough to bet against seasonality lately this year in prior years and what I would say is the macro is going to matter more in the near term we're on in the headlines right now uh... warsh and the headlines with the fed coming up in a week or so and so look what we would say is you want to be selective at this point we think at an index level we probably trade sideways at best going into the midterms but selectively there are

11:33opportunities underneath the hood do you think about selectively in terms of sectors or actually on the stock level you can think about both ways at so i'll talk sectors at the moment so ironically i think a i capex winners the names that really imploded june through august could be safe place to hide out at the moment it feels like they've gone through an idiosyncratic and a positioning purging in the last several months i think all the micro updates and fundamentals we're going to hear during conferences in this month and certainly into the october prints are going to be quite positive so we actually think that could be a place to hide out damn what do you think about some of the trends we've seen across commodities and you know more physical assets but in terms of asset allocation for your clients uh... just curious because this is a time to you know you've had a resurgence maybe in bitcoin we talk about gold all the time where where do you weave that into this narrative that says there's some seasonality but there's just some big picture stuff so at really great points to him so stepping back we've been advocating real assets as a hedge on your index in s and p uh... product and s and p exposures for well over a year and look cyclically as i

12:36just mentioned we're getting eran geopolitical risk premium back in the price of many assets longer term if i think structure the entire a i build out which you guys where i think eloquently describing before i came on is incredibly resource in commodity intensive as we know as well so whether that be copper or other metals and so all those long term drivers are still intact so thanks for being here in person do you what do you think is the biggest risk is it is one of the known unknowns as rums weld would say or is it an unknown that's out there yeah so excellent point so if i look back the past year a lot of things that used to matter for markets for the economy frankly haven't matter as much i've come up with this term or this phrase pop up ads so if you look at the policy shocks of liberation day a year ago eran the past six to seven months the market has really look through through through through these catalyst and the main story the main narrative comes back to a i and so if you're asking like what's a real like longer uh... winding or potential downside scenario it's some type of implosion on the a i front and we're just not seeing

13:37anything like that the moment on a macroside it's clearly clear the treasuries concerned about the yen and then subsequently our bond market are you equally concerned we are we're not so i don't mean to punt on the question but i think like as an equity guy if i just look simplistically at the range of the last four or five years four to five percent has been pretty money good in terms of the range holding i know there's been a lot of criticism and a lot of consternation around american exceptionalism over the last two years in terms of some of our policy changes when i look at the capital inflows into the equity into the bond market this year and even into uh... the treasury market itself we really don't see big changes they are big uh... step changes and so i would just argue that yeah could we technically test the five percent level but we're pretty convicted that that that holds and lastly if i zoom out and think about our firm call on disinflation with some of the things we haven't talked about how is in other services components we continue to think the fed actually stays on hold for the remainder this year so that is a bit of out of consensus i acknowledge at the moment uh... and so if the fed stays on hold maybe that helps support five percent

14:42holding as well so dandy mentioned you know the potential and not the potential but like one of the worst case scenarios of we have like some sort of implosion as it relates to a i demand i mean that's really what comes down to it again i was very eloquent the way the way we were talking about i was your words your words damn okay i was more care and i get it um... and the hair cut let's just well let's just say you do see some sort of pullback in demand but you also have these huge multi-tillion dollar i.p.o's that are expected to come to the market do you see some sort of different makeup you know into the space i'm sorry we did see semis come in a little bit memory stocks that sort of thing and i haven't made up that much room i'm just curious do these i.p.o's pose a potential risk to existing concentrated holdings in the equity markets so it's a really interesting take and look i would say remember prior to space x you had google come out and jump them in terms of getting a very big issuance out which was very easily absorbed by the street and you know even though we've had rotation as i said under the hood earlier to equal weighted in two a i adopters and out of cap weight and out of a i spenders and a i uh... capex winner semis the

15:48markets have held in really well over the last several months i would i would argue the markets themselves the credit spreads on all the big spenders on the hyperscalers have all come in post tech earning season and so i would argue that it's less of a concern in our mind but i think back to your underlying premise right the underlying demand that we're seeing the fact that the private labs were trading at ten billion top lines a year ago now sixty to seventy billion the idea that frankly and we talked about this earlier in the summer when i was on i didn't think open weights in china risk within the price of semis enough in june now it is frankly i like having a little bit of pushback there i think it's a much cleaner trade in terms of the fundamentals in the positioning but that to conclude the underlying premises the cheaper and the more efficient models become the more prolifer proliferation of a i we see the more the infrastructure and cap expending we need so it all kind of flows through and look it's going to take more time for that to play out but we still feel that feel that way what is the hedge in your portfolio

16:48that i know you mentioned some of the bond out bond out areas but i mean you're sitting now with the client you're saying this is a hedge you're not going to point to those kinds of stocks you're going to say what yeah so it has been a roller coaster in terms of the oil price this year stepping back every time we've seen a ceasefire announcement of which we've had close to i think a dozen plus in the last four or five months we've added to energy right so going back to tims great point in terms of cyclical and structural dynamics underlying the commodity environment we like the long term factor there but we also would argue right now until november is probably a ron's maximum leverage point and we we see evidence of that with the hoothies earlier today in s outy arabian assets and so i would just argue energy continues to be a solid hedge yeah dan great to see you thanks like what i think we should have done on for the rest of the show i know sir thank you and if somebody who can poke fun at you guys i'm all for that easy by the way quiet i think that's true but i like the idea of sort of the maximum leverage point for a ron going into

17:52the midterms they could do whatever they can up the ante and what will our response being will have to be capped because of the midterms a lot of people first of all it is great to have dan and yes i believe that will continue which is one of the reasons why i think inflation continues to be a problem i think the bond market continues to sell off and i think at some point equities care we'll get into a commodity's conversation because it's important but the energy trade is going nowhere in my opinion but higher and it continues to sort of play out regardless of where the underlying commodity is trading yeah you know on the a i front and i think he makes a great point about really like the diversification but also what we're seeing this revenue ramp but here's the problem i mean we weren't really talking about debt i mean there's over a trillion dollars of debt that we can see on balance sheets as it relates to you know this build out and a lot of it has been accumulated over the last couple years or so but there's one and a half trillion dollars that are in s p v's these are off balance sheet that we cannot see they are not transparent commitments and commitments and when you see relative to that even with these hockey stick revenue growth that we're seeing of a handful

18:53of names in the major labs they don't add up to the spend that is going on at least the debt that is being accumulated for this and it might take a couple years or maybe five years to kind of see that match up and that will be a drain in my opinion on growth or at least from a multiple standpoint the way we look at these names i mean meta has that problem but going back to that terms s p v's two things we need to see obviously we want to see the revenue go up but we need to see the spend go down which i don't think it's going to see before 28 maybe 29 or maybe the maybe there's some rhetoric at some point where they're like we're getting to the near the end of the very big spend that would be a big positive yep um we mentioned uh the resources needed for the buildout copper um reaching a new high today a record high in fact the industrial metal rallying again on raised tariffs and supply concerns miners coming along for the ride i've in hoe free port southern copper b h p all ending the day well in the green guy dimspan on it southern copper looks like a biotech stock free port macemar and not nearly as much but it's a different company i think southern copper can continue to go higher despite the move that it's had but free port is the one where if you

19:56think copper is going to continue to do this which i do and there's a number of reasons why you got to stay long fc x i just think we don't talk enough about copper being at all time highs all time highs and and we've had a lot of buildout phases we've had a lot of cyclicality people forget also that commodities and investing in commodity cycles these are long tail cycles takes a long time we're in one uh i don't think this is just you know a trade i think there's a lot of investment to do um i do think b h p reo tinto integrated miners they have exposure across the board but i do think you know a glencore is another way to get a lot of beta to the space they are they are some of the best energy and commodities traders in the world and i also think silver is going to outperform gold at least in the next period i'm i'm wildly bullish on gold i think if you're bullish on gold you should be a little more bullish on silver here and that is a little bit more of a trade silver over gold it's an industrial metal so it has an end use as opposed to gold which is a commodity in name only so i'm with tin but it doesn't mean you're getting away from the gold trade which i think still works coming up the first test for ternis apples new chief taking the stage of the

20:58tech giants product event tomorrow can he breathe new life into the stock and the fresh fold that could be coming for the iphone plus fast moves in the drug making space the headlines hitting asterisanica nobo in novartus don't go anywhere fast when he's back in tune it's nfl kickoff time exclusive nfl team valuations with sports business expert michael osanian e-n-f-l is by far the most profitable league nfl team valuations now on cnbc.com s welcome back to fast money shares of apple down about a percent today ahead of tomorrow's big product launch event the company widely expected to unveil a folding smart phone with a bendable display marking one of the biggest changes to the design since the devices launch in 2007 it'll be the first launch since new cio john ternis took over from team cook last week there's also such a you know show off a lot of new watches and stuff like i mean a whole product

22:02refresh i mean i'm going to be down on this one i can be sleeping out like i used to for you know kiss tickets or something right i mean i i want i want that foldable you do i do i mean it's large no well in sports i can handle that i mean i think it's a case where you really have well what fitting your pocket that's important i mean i might buy new pants or something but but i i know let's get back to this product release cycle is incredibly important for apple we've been poo pooing the last five product releases you can make an argument this is the most important one they've had in forever um goes all the way back to ten i think that's the point that jeffries makes i like it and i let's be clear the ultra uh this pricing line is going to offset a lot of the issues they have with the sps and memory and you know i think it's it's going to put a little bit more of the you know the zinc back i spoke to crag moth at a moth at nathan mic and i didn't closing bell over time and he said the cost to manufacture the sphone including materials probably twelve hundred dollars so you know asps may go higher on this but the margins

23:03won't be great either i mean it's going to cost there's more materials involved in this phone and it's more in terms of the production of it too well let's see if there's also a different operating system that is vastly better right right which i assume there will be that there's a series like product series just given up at this point i mean it's terrible as it's been getting i feel even worse but any so um i think that that will be also something that could sort of get the stock not that it's not going it's going it's done nicely it's done nicely it's not a thirty-time support yes that's true i think the fold is more signaling where they're going to go um they've had really iterative hardware for a long time now right and this is going to be low single digits is my guess of of the iPhones that they sell and you know when you think about that vision pro and that was meant to kind of you know define spatial computing and how they were thinking about things go that was a disaster and they just didn't sell many and i suspect they won't sell a lot of these folds you know the average replacement cycle for an iMac or a Mac is like

24:05five or six years and those on average cost less than two thousand dollars they're probably in the fifteen sixteen so the idea that someone's going to go out and they're going to spend on the very first iteration of this product twenty two hundred dollars is not particularly likely so it's signaling and then to your point about Siri they should have dropped the name right so it's going to be called Siri yeah why are you trying to do that series off maybe they will by the connotation there is you guys going to be logged on he's going to be staring at this thing yeah what do you mean for like two and a half hours um and be fun but i i think there's again i think there's almost more risk to this as we've seen with wwdc if these are not inspiring products on the hardware front and then once we get this you know new ios and it's just not that differentiated then i think you do have a little bit of risk then we get a weight another year there was a period of time we'd be able to identify a johnson typically when he would pull his phone and flip it open and a restaurant or a sporting event now obviously yes i see what's going to change now a motor roll like a club yes and how it was start act when you say forget it no what we're going to

25:09say i'm just going to ask you what you mean by johnson well you know exactly what i mean it's a family show no i think this is you know this is what first of all over the weekend we saw a rival basically roll out the same thing so once again they're second but it doesn't matter because i do think there's a faction of people that long for things like this there are already out i mean they've been out for years with a full double phone yeah this is not a brand new giant there's a bunch yeah it's not like it we've never seen them before but this is the first from apple yes all right there's a lot more fast-minded come here's coming up next Farmer stocks on the move both negative and positive trial results sending key drugmaker shares lower today the details on the prints and how to play the health care trade from here plus the Bitcoin baller is back but it's not crypto fueling Brian Kelly's new venture how AI and the rise of a gentick trading shaking up how bk gets down to business you're watching fast money lie from the Nasdaq market side in time square we're back right after this

26:16it's nfl kickoff time exclusive nfl team valuations with sports business expert Michael losanius nfl is by far the most profitable league nfl team valuations now on cnbc.com slash sport well welcome back to fast money stocks lower to start the holiday short and weak as oil prices ticked higher on the latest tensions with Iran the Dow leading the loss is falling more than 600 points the s&p dropping half a percent than Nasdaq composite and Nasdaq 100 both the small losses slew of headlines hitting drug makers asterisantica releasing full results from two successful late-stage trials on its experimental drug for chronic obstructive pulmonary disease boosting hopes it could generate multi-billion dollar sales for the company shares of fell over 1.6 percent novonortis meantime scrapping two more trials for its experimental cardiovascular drug further diminishing the drug makers hopes to diversify beyond the weight loss market and shares of Novartis seeing their worst day on record after saying it's a drug for a muscle-wasting disorder failed

27:18in a late-stage trial what do you want to trade here guy well as Karen mentioned on the call structure therapeutics finds himself sort of in the crosshair of all this so as much as those stocks move this stock move seemingly a little bit more whether justified or not here we are it's had a miserable year so far it's had some signs of life but you know a 40 dollars you well below that level if you think about where was in December of last year I mean this stock doubled and now here we are below the levels that it double from so I think there's value I think they get bought but obviously today is not a great day yeah so today and it had a wide range of price today right 48 47 eight at the high and then 40 where it closed I thought the data was okay some mix some some some good some not as good but I think you know with the enterprise value they do have a billion four of cash or so with the enterprise value now at I don't know one and a half or so billion dollars to me that's sort of interesting I agree with with guy that this could be a takeover candidate and you know you and I were talking to the break about all right well two others are

28:21ahead way ahead but actually some of this is better than Lily's product but I can't imagine the rest of farm is seeding the seeding the whole game to those two yeah so to me this is still an interesting takeover target however I might be very you know slanted in my view because it isn't today that's right yeah I just got a point that I don't know yeah I think Nevada is the one you're talking about today because I mean again they they were collateral damage and it was $40 billion a market cap and this is a company that I realized that you know this was this was an exciting part of a pipeline but you know Nevada she's talking about five to six percent Kager EPS I mean you're not talking about a high growth story period and this was a massive move I'm along so I'm just to be clear coming up with the trader formerly known as Bitcoin Baller is back from Kelly her to lay out his new venture trading is healing the fun fast money's back and two good to see you okay good to see you okay

29:31you welcome back to fast money for months we have been hearing about the rise of agentic trading with brokerages from Robinhood to Wee Bowl letting retail clients make AI powered investments professional money managers are also leaning more on agentic investing tools and for one of our very good fast money friends it's already paying off AI is completely changed my office looks like every bot has its own memory I'm Brian Kelly I'm a hedge fund manager at bracket 22 that's my company bracket 22 is an investment and trading firm I basically replicated the staff that I had at the fund with AI agents AI agents monitors everything for me 24 hours a day thanks for that Houston they used to have about seven or eight employees all around the world modern were based in New York between their salaries and compute and healthcare my payroll is well into the millions of dollars per year now when I'm using AI I run somewhere around 30 to

30:3240 thousand dollars a year total and that's with every AI agent that's with all my compute that's with everything I need to completely replicate a hedge fund completely with AI so let's meet some of the staff here one of my agents is Steffi graph she's in charge of technical analysis Steffi did this earlier today her job is to be the smartest and the best technical analyst in the world hey Houston show me the charge from the work that Desmond did if you look at something like Desmond use my AI agent in charge of quantitative strategies he'll come back with a quantitative point of view they'll all bring that back up to Houston at Michel control he'll relay it to me and then I use my human judgment and human insight to make the final decision here's the corporate brain that's one agent talking to another I would estimate I'm at least 10 times more productive with my AI agents so now if you take a staff of a hundred you've got a staff of a thousand it's not necessarily just hey you can replace everybody with AI agents you can make your existing employees at least 10 times maybe more more productive joining us here on set is the man himself Brian Kelly

31:37founder in CIO of bracket 22 I guess Steffi graph and Houston couldn't make it no right in my pocket so it's funny we were talking about this at over a dinner over the summer and basically started this out of curiosity about what AI could do for you yeah absolutely yeah I you know what one day I just decided to copy and paste a chart into it and see what it would do and the next thing I realized is that hey wait a second this can start to do quantitative research this can do fundamental research and I just started going down this rabbit hole and it ended up building this entire basically a hedge fund research staff out of AI agents how do you view the AI trade differently knowing what you can do with AI yourself I think for me the most valuable thing is that corporate brain we showed about there are so many companies out there that are going to be able to use AI to take old assets and repurpose that maybe find something new that they can do it so I think we're just at the beginning of the AI trade yes could it be a bubble in the build out but the use cases for AI is a second wave that's coming along so beaks when you think about this

32:40I think all of us in agreement this is probably the first inning maybe it's the first pitch of the first inning how important though is the qualitative judgments let's say by you as the portfolio manager because someone has to create the infrastructure someone has to create the framework for these agents to go out and do what they do yeah there's no question about that this is not something where you're just going to replace trading with AI agents right then you still have to have the human in loop I call myself the meat and the seat but that's the human insight you say so yourself but you've got it you've got to have that let's be good to be back anyway I you need that human insight because everybody else is doing this right all the quant shops have been doing this for 10 20 years so you're not going to beat the quant shops where you're going to put value in is something that a human being can do where they can be creative where you can put two and two together and come up with a thesis and the research agents that's what they do they just go through and research everything for me so cost of compute yeah what's happening with that do you see spending more and more or using more and more but we're not spending

33:43more what do you think so no it's kind of interesting because now I use open router where I can choose different models so I have the frontier models are for Houston and maybe the quantitative stuff but then I can choose cheaper models some of the open source models are much cheaper so my cost to compute has stayed pretty steady at least on tokens I mean I might spend a couple hundred all of a day on tokens and then my cost to compute everything runs in the cloud on AWS and so that's a pretty steady number as well I would not anticipate my cost going up that much over the next year people will say how would the returns be case I'll ask the question to the meet and see the other returns so they've been better right I mean I've only been doing this for the last six months or so right and so it's hard to say was it was it just that the market was doing well not but I can tell you I'm making better decisions I can tell you what I built there is really a decision support system for me and more often than not it keeps me from making a mistake rather than putting me in in the right trade so I would say I'm a better trader because of it time will tell

34:44if the returns are there Brian I'm not sure if you're out raising money but the hedge fund space is all about it's a cult of personality it's also a lot of times people are investing in a team and I'm just kind of curious as you talk I don't know if you're out raising money if people have if if investors have a view about Stephanie Graf and Houston because you know in many cases having been in the hedge fund space for a long time yeah people sometimes are just looking at your orchard they'd love to be able to check a box and say you have that I'm just curious what you're hearing from people as they listen to your products so I haven't been out personally raising money as I talk to people though that that is a big thing right people still want to have a team behind it if you can somebody's going to give you hundreds of millions of dollars and you're managing billions of dollars they still want to see if you have a compliance team that you have a GC you have all these things I would say that really if you were out there raising money the pitches our team is going to be 10 to 100 times more efficient we're going to be able to find things faster and better but you will still have in theory that GC you'd have a meet in the seat for the equivalent

35:46right level jobs yes that those people we much more fish so I have I have a GC just in case and his job is to review all of the all of the contracts but then ultimately that goes to a real lawyer be okay it's so good to see you it's so good to have you on the desk anything has yet again can you just stay here for the rest I mean it's just leave him a question or no yeah really still here so I don't know but I want to go by the guess anyway Bitcoin used to be you know the Bitcoin baller I'm curious do you follow the space still what are you thinking I do and we actually talked about a month ago and I was like yeah it's a 50 50 shot things have changed completely I'm more bullish on Bitcoin than I've been in two years right now really and that is because of the treasury buyback financial repression so that's our tailwind but there's actual real use cases now so agente payments are going to be running on crypto rails as well as tokenized stocks are going to be running on crypto rails so I've got a macro tailwind while I wait to see what's going to happen with tokenization and agente payments so I actually have a full position in crypto that I haven't

36:49had in two years wow that's big so we miss BK we do you wrote the book 2014 the big bang yeah leading edge we are welcome back here anytime of course that goes with that's Brian Kelly coming up auto socks at a crossroads but which way is a char master steering where Carter worth sees Ford and GM driving next when fast money returns so welcome back to fast money shares of Ford and general motors both down today but the char master says it might be time to take both these automakers for a drive let's bring in Carter rax and worth worth trying to lay out the case high Carter all right let's get to the case go through several

37:49charts the first couple are a basket of these two stocks so if you were looking at a two stock basket equal weight of Ford and GM this is what that security this basket looks like that is an excellent setup basically a major move higher a big consolidation just now twang with a breakout another way to draw the lines this is the same set of lines but on the longer term chart and what's key here is only a little bit above where we were in 2021 so to make that point you can annotate it a different way next iteration it's a major obviously bottom out formation in the 2022-23 sort of sell off recovery and only slightly above the former high a little bit of funny metals for the next two take a look so here we are we have again that same chart look at the combined revenues for these two companies back in 2021 263 billion and here we are 374 future unknown we know predicting earnings and revenues are basically possible as well as

38:51we continue to try and take a look at that income then and now 16.7 versus 19 so are they cheap or they not maybe it's all about to come apart but the charts are good let's end with those two let's look at them on their own so here is General Motors again a double 40 to 80 consolidating and just now twang with the prospects of a breakout and Ford of course which was very jumpy back in April as you see they're moving sort of sort of overdone if you will but pulling back from that 18 to here 1314 and we like it higher we like them both and they've been handling outperforming other major manufacturers as all that will be mw or satis valks wagon toyota tesla the list goes on Carter great to see you Carter Braxton worth you know it's after labor day when Carter's wearing a tie again you like either of these I love the fact that that Carter's using some funny metals and also showing the you know the combined revenue inflection but I to me gets back to a couple of things GM started rallying in that that chart that he showed not just because the

39:54companies never been run better and their their EBITDA but really their free cash flow is continues to set record levels and so the stock becomes cheaper and cheaper but the the interpretation of what EV had to be what they had to be as Tesla no longer became a car company and I mean whatever you think Tesla is is when GM could finally start rallying based on its core business its ice business was given zero credit and meanwhile I think this is a company that at least in the auto space is on a leading edge coming up a rough day for retail adding to an already week year for the group the names to watch and our our traders giving them a try on who are fast money and two welcome back to fast money the consumer trade under pressure today with the XRT retail ETF dropping over 2% market is lowest close in June some notable lager today dollar tree Dick sporting goods at C and TJX which is now down nearly 25% from its all time high

40:55hit in June Karen what do you see in this weakness anything look good here so you know I think oil obviously doesn't help sentiment at all but TJX to me has been really disappointing I do own it they seem to have sort of lost their way a little bit they had a difficult last quarter it's now trading as a market multiple which it hasn't in quite some time so that sort of interest me except you know raw stores and Burlington have actually done a better job lately but I would think if I own no TJX I would buy some right here BKS stuck around oh yeah I'm gonna give you the I'm gonna go on the AI theme and I'm gonna say Etsy and it's gonna sound weird right but here's the thing everything digital is going to be abundant everything human made is not gonna be and it's gonna be extremely valuable and so what's the market space for human made stuff Etsy so that would be my call if it's not public right I mean yeah I can replace that yeah can I replace why would you want to replace that yeah capital one made its all time high in January American Express in

41:58December both have traded poorly since I'm not gonna make a big deal master carton visa lower today you mentioned the dollar stores I think it all speaks to this higher rates environment that we find ourselves in it has pressure on the consumer which I think will continue little bounce and Lulu but the carnage in athletes here is not something you want to be bottom picking here and and valuations you have no idea what the valuations are in these names I don't think you know what the growth trajectory is all right up next final trades it is time now for final trade and we have an extended one today because our friend Brian Kelly stuck around bk good to stick around I'm gonna go with Palantir for the final trade haven't done that a while uh Tim Bo we needed like six more boxes for his agents I'll go in Rio Tinto I think the integrated mining play has a lot to do I'm gonna have a steppe graph and Carter Brass and worth of go ahead Karen yes first of all thrilled thrilled that you're back just so to say it again

43:01mine is zoom communications and I always see the IGV come in a little bit stock was a 110 not very long ago 96 and changed today I like Sam yeah so last five years we've seen the empowerment of individual traders people like to watch our show that sort of thing I mean I think this really gives them that much more of an edge everything you're talking about I think it really does I think it's super cool um and wrist management too um IGV had this big run I don't think you chase it here we got Oracle we got to your Palantir but we got you know Adobe reporting this week too I don't like three four Mac Marin we missed you now thank you for watching fast money Brian Kelly again you're welcome back anytime that money starts right now all opinions expressed by the fast money participants are solely their opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by them on television radio internet or another medium you should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy but only

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