Here’s a full recap of CNBC’s 2022 Stock Draft: Ryan Reynolds likes Netflix, Kandi Burruss buys Zoom
CNBC's annual Stock Draft kicked off Thursday on "Power Lunch" where candidates opted for a slew of beaten-up technology stocks to play the market over the next several months. The annual stock-picking competition pits financial professionals, athletes and celebrities against each other. Each of the 10 participants pick two names from a list of 60 investments. Who wins the annual competition depends on which stock picker boasts the highest average return based on the closing prices between April 28, 2022 and February 10, 2023. Here's the rundown. Palo Alto Networks The No. 1 overall pick of the draft went to television personality and producer Kandi Burruss, who selected Palo Alto Networks. But it was her second choice, pandemic beneficiary Zoom, she spotlighted given its role in shifting the way employees meet. "I decided on Zoom because I mean it changes the way we work," Burruss said. "We really depended on it these last few years. It's growing rapidly and it has very little debt." Shares of the videoconferencing company traded around $104 during afternoon trading on Thursday, nearly 75% off its 52-week-high of $406.48. Shares are down about 44% since the beginning of the year. Netflix Actor and producer Ryan Reynolds bet on Netflix as he thinks the streaming giant can make a comeback as one of the largest names in the space and introduces an ad-supported tier. To be fair, the award-winning actor noted he has three movies in the top ten, but he thinks CEO Reed Hastings and the group are "very smart" and would "never bet against them." "Netflix's at its heart is really storytelling and that's something that is never ever going to grow out of fashion," said Reynolds who was joined by Mark Douglas, Mountain president and CEO. Shares of Netflix have cratered 46% since the start of April following a shocking loss in subscribers in the recent quarter. Year-to-date the streaming giant's stock has plummeted 67%. DraftKings Delano Saporu, CEO of New Street Advisors Group, chose DraftKings in his second round, saying it's one of the few stocks CNBC screened for that has an addressable market that could continue to grow. "There are 23 states now have online sports betting – that could be growing," he said. "I think the customer acquisition cost goes down over time and they'll be able to get more customers because it's not just the sports book, they also have the gaming portion as well." Sports betting stocks, including DraftKings, have been hit hard this year even as major sports event schedules heat up. DraftKings is down almost 50% for the year. ARK Innovation ETF Kevin O'Leary's first pick was ARK Innovation, even after Cathie Wood's flagship fund took a hit Thursday as shares of Teladoc cratered 46% on poor revenue forecasts — and a $6.6 billion impairment charge. With a 6.8% weighting, Teladoc is ARK Innovation's third largest holding. "I got to pick something that's been taken up behind the barn and shot not just once — twice — and it's got to be ARK," said O'Leary. "That fund has been slaughtered." Still, the businessman and co-host of CNBC's "Shark Tank" said he still believes in the tech-heavy index, projecting names such as Shopify and Roku will eventually make a comeback. "I'm betting that these tech names come back and the index lifts and I beat everybody," he said. ARK Innovation is down nearly 30% this year through March 31. PayPal Tim Seymour, founder and chief investment officer of Seymour Asset Management, selected PayPal as his first pick. He called the payments firm a "strategic brand" as it trades at about 25 times 2023 earnings. "You make a lot of money when things go from just terrible to bad and this is a case with a company that's reset the quarter," Seymour said. "A lot of problems but I think a lot priced into the stock. If you're not buying a stock in this draft down 50% or more, you're playing the wrong game." PayPal's stock surged 11.8% on Thursday even after posting weak guidance for the second quarter and full year. The stock has tumbled 51% since the start of the year. Ether Kayla Kilbride, better known as the TikTok star Robinhoodkid, picked ether in her first round. The self-described beginner to investing highlighted the cryptocurrency's volatility and said she crowdsourced the pick from TikTok. "I'm pretty new to trading, so I don't have a whole lot of financial analysis," she said. "I once heard someone say that if you have a theory behind it, odds are that is already priced in to where it's at right now." Ether, like all cryptocurrencies, suffers from notorious volatility, a quality some investors say can present good opportunities for big returns if they can stomach it. The second largest cryptocurrency by market cap is scheduled to undergo a big tech upgrade this year that some say could set it up for a big price rally. CNBC's Jim Cramer said it was his number 7 pick. Chewy The pet stock may be a pandemic winner-turned-loser but former Macy's CEO Terry Lundgren is still optimistic about the future of retail and said consumers will only put more of their dollars to their pets in the future. "[Chewy] had an amazing year," Lundgren said. "People bought more pets than ever during the pandemic. Those pets are going to need food, those pets are going to need supplies, and I think Chewy's going to be all over that. I also think people are going to spend more money on dogs and cats and their pets than they are on themselves." Chewy shares are down about 44% this year and sit about 66% from their record. Meta Stephanie Link, chief investment strategist and portfolio manager at Hightower, chose Facebook parent Meta in her first round pick. Meta's stock price surged about 18% on Thursday after reporting earnings on Wednesday, but is still down 38% for the year. Still, Link said she liked the stock, saying "They have 10 million advertisers that are looking for higher ROI, return on investment, and with numbers like these, I think that they will remain very supportive of Facebook, and then you have a kicker in the second half of the year." The investor is also hoping for an improvement in the company's Reels business. Chipotle David Robinson, San Antonio Spurs' legend known as "The Admiral," picked Chipotle for his first round pick. He called the restaurant stock "more of an emotional pick" as it's a favorite in his household. Chipotle's stock price got a lift this week after the restaurant reported earnings that topped earnings and revenue estimates. Jim Cramer said he likes company's pricing power, saying, "They were not hurt by the fact that avocado actually literally doubled in the last year." Shares for Chipotle are down 14% year to date. Apple Apple was the second round pick from the investment club of NCAA tournament Cinderella St. Peter's University given its "overall consistent reporting and profits," representatives said. The university participants said they liked the tech giant's solid consumer base and great number of products, making Apple a good choice for consistency and longevity in the market. Apple's stock price jumped 4% as investors await the tech giant's earnings after the bell on Thursday. Here's the full list of CNBC Stock Draft picks Kandi Burruss: Palo Alto , Zoom Terry Lundgren: Chewy , Macy's Delano Saporu: Amazon , DraftKings St. Peter's University: Microsoft , Apple Kayla Kilbride: Ether , Boeing Stephanie Link: Meta , Chevron Ryan Reynolds: Netflix , Ford Tim Seymour: PayPal , DoorDash David Robinson: Chipotle , Rivian Kevin O'Leary: ARK Innovation ETF , Moderna
CNBC's annual Stock Draft kicked off Thursday on "Power Lunch" where candidates opted for a slew of beaten-up technology stocks to play the market over the next several months.
The annual stock-picking competition pits financial professionals, athletes and celebrities against each other. Each of the 10 participants pick two names from a list of 60 investments.
Who wins the annual competition depends on which stock picker boasts the highest average return based on the closing prices between April 28, 2022 and February 10, 2023.
Here's the rundown.