Squawk Pod: Kalshi CEO on Super Bowl wins & NYC housing affordability - 02/10/26 | Audio Only
Watch on YouTube ↗  |  February 10, 2026 at 17:44 UTC  |  39:46  |  CNBC
Speakers
Scott Rechler — Chairman & CEO, RXR (Real Estate Developer / Fed Board Director)
Tarek Mansour — Co-founder & CEO, Kalshi (Prediction Market)
Becky Quick — Anchor, CNBC
Andrew Ross Sorkin — Anchor, CNBC

Summary

  • The AI CapEx Boom: Alphabet (Google) is raising $20B in debt to fund AI ambitions, with CapEx potentially hitting $185B this year. Amazon is also ramping spend. There is skepticism about whether this is a "high water mark" or the new normal.
  • Chip Tariffs Waived: The Commerce Department is reportedly planning to waive tariffs for hyperscalers (Tech Giants) on chips bought from Taiwan Semiconductor (TSM), acknowledging that onshoring 40% of supply is "impossible."
  • Housing Market Bifurcation: A clear distinction is drawn between "Top 20" public homebuilders and small regional builders. The latter are paralyzed because regional banks have stopped lending.
  • NYC Contrarian Bull Case: Despite negative headlines, NYC office leasing is having its best quarter since 2019, and luxury housing sales are up 30%.
  • Prediction Markets vs. Sportsbooks: Kalshi handled $1B in volume for the Super Bowl, signaling a shift where regulated prediction markets are competing with traditional sports betting, though the CEO argues they are fundamentally different products (hedging vs. gambling).
Trade Ideas
Ticker Direction Speaker Thesis Time
TSM
LONG Becky Quick
Co-Anchor, Squawk Box
"The Commerce Department is planning to waive some of the taxes for the so-called hyperscalers on chips that they buy from Taiwan Semiconductor." The threat of tariffs was a major overhang for TSM. If the US government admits that onshoring 40% of supply is "impossible" (as stated by Taiwan's negotiator) and grants waivers, TSM retains its pricing power and volume without the friction of trade war taxes. Bullish for TSM as it removes a geopolitical regulatory cap on their sales to US Tech Giants. The waivers are voluntary or conditional on US investment, which could drag on margins. 4:04
LONG Scott Rechler
Chairman & CEO, RXR (Real Estate Developer / Fed Board Director)
"The regional banks... are not lending today to the regional builders. So, the regional builders are somewhat paralyzed... The top 20 home builders, they don't need regional banks, right? They got their own balance sheet." A credit crunch at the regional bank level specifically hurts small, private competitors. Large public builders (DR Horton, Lennar, Pulte) have access to capital markets (corporate bonds/stock) and cash. They will absorb the market share of the paralyzed private builders who cannot get construction loans. Long the large incumbents who can build through the credit cycle. If interest rates stay historically high for too long, demand destruction could eventually hit the large builders despite their supply-side advantage.
KRE
AVOID Scott Rechler
Chairman & CEO, RXR (Real Estate Developer / Fed Board Director)
"They can't afford to compete with the big banks... they don't have the capacity to be able to be lenders there." Rechler, a board director at the NY Fed, is explicitly stating that the business model for regional banks is currently broken regarding commercial and construction lending. If they cannot lend, they cannot generate yield, and they lose their primary utility in the economy compared to "Too Big To Fail" banks. Avoid the sector until the yield curve normalizes or consolidation occurs. A sudden, aggressive Fed rate cut could rapidly repair regional bank balance sheets.
LONG Scott Rechler
Chairman & CEO, RXR (Real Estate Developer / Fed Board Director)
"New York's best quarter for office leasing in years... The facts are saying people and companies believe in New York... investing in New York, and aren't afraid." The market has priced NYC Office REITs (like SL Green or Vornado) for a "doom loop" scenario. Rechler provides proprietary data suggesting the bottom is in (leasing up, luxury sales up 30%). If the "death of NYC" narrative is wrong, these assets are severely undervalued. Contrarian Long on NYC-specific real estate exposure. Crime/Quality of life issues (mentioned regarding homeless encampments) could reverse the trend if not managed by the Mayor.
WATCH Becky Quick
Co-Anchor, Squawk Box
"Alphabet tapping the US debt market to raise $20 billion... capital expenditures this year could reach up to $185 billion." This is an unprecedented level of spend. While it shows commitment to AI, it drastically reduces Free Cash Flow (FCF) in the short term. The trade here is ambiguous: it's bullish for the *suppliers* of that spend (NVDA, Energy), but potentially bearish for Google's margins if the ROI doesn't materialize quickly. Watch. The stock may struggle to appreciate if investors balk at the massive CapEx bill without immediate revenue spikes. AI becomes a commodity and the $185B spend results in margin compression.