Kingsview CIO Scott Martin On Fox Business The Big Money Show 6.3.2024
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TAYLOR RIGGS: GameStop is surging. You’re only up 31% today. Earlier, you were up as much as 100%. This comes after the Reddit user, Roaring Kitty, revealed a $116 million bet on the meme stock. Joining us now is Kingsview Wealth Management CIO and Fox News contributor, Scott Martin. What do you make of the memes?
SCOTT MARTIN: The meme? It’s crazy, Taylor. I mean, this is kind of getting out of control, I guess. Like you said, I love how you set that up. We were up 100% earlier, but deal with it. You’re only up 30% in one day. Now, I’m happy for Roaring Kitty. I’m glad that he got over the rabies or distemper that he had for the last couple of years and came out and posted on Twitter, rallying the stock like crazy. I mean, this stock was at 10 bucks, boys and girls, at the beginning of May, rolled up to 50, and now it’s down to 30. So he’s got some bets in there, roughly. I think some call options at 20. So he’s doing okay. The point is this: Are you buying GameStop because some kitty cat feeling guy tells you to do that on air or on Twitter, on the internet, on the gyrosphere, wherever he is? Or because this company barely makes any money, sells games to the retail investor, and probably doesn’t have a typical future in this environment, or certainly a company that at one point was going bankrupt? For me, I like stuff that’s a little more tried and true, so I’m going to avoid this one. Okay?
JACKIE DEANGELIS: I’m glad we hit that because it’s very real and it’s happening in the market right now, Scott. But I want to get to something that I consider a little bit more real, which is the chip stocks now outweighing software stocks on the S&P 500 for the first time. We’re looking at this AI situation. Here are the early innings of this. Some people on our show have called it batting practice. Still, these stocks have been on fire even on days where we sell off. It hasn’t been as pronounced as it could be. What’s the next stop?
SCOTT MARTIN: Deserved replication, I guess, like you said, Jackie, and the S&P 500, because the future is chips, AI, cloud, and storage. So it makes a lot of sense that this is happening. The thing that we all probably remember, though, is when we’ve gotten to points like this in the past. Not to say the past is going to repeat, but it does seem a little similar yet. Financials doing the same thing before the financial crisis, internet stocks to some degree doing that in the late ’90s, early 2000s, and even oil prices or oil companies. So the reality is that you probably need to take a breath or two here if you’re at these levels just putting first-time money into chips and AI. But I do like it going forward, and we still love NVIDIA as our best play, but we like Google and Microsoft as backups to that.
BRIAN BRENBERG: Scott, I know this summer we’re going to find you in front of a grill most of the time, but I want to know what your summer stock picks are because I know people want to invest this summer. What are you going to be buying?
SCOTT MARTIN: Well, Brian, you know me very well. I’ll be in front of a grill anytime people let me be in front of a grill—eating, cooking, just having a good time and carrying on, probably singing and doing some karaoke. I’ll admit that too. Hello, Roaring Kitty. We can go on a tour or something. But the point is this: There are some companies out, Brian, that I especially like this summer. I like AMD on the chip side. That’s another way to play this whole excitement over Nvidia, Microsoft, and all those guys. And how about some summer travel, guys? Airbnb? Airbnb is a company that has started to turn on the charts. It’s one that’s come down a little bit in the last couple of months because of regulation and a slowdown in the consumer, yada, yada, yada. Summer travel is going to be the busiest I think we’ve ever seen it, sports fans. So Airbnb is still a company that’s a big part of those plans that everybody’s making, and therefore we like the stock here as well, given that it’s pulled back some in the last couple of months.
TAYLOR RIGGS: Scott, really appreciate it. Thank you so much.
