Squawk Pod: Risk Play: Sports Betting, Prediction Markets, & Super Bowl LX - 02/04/26 | Audio Only
Speakers
Ron Josey
— Internet Equity Analyst, Citi
Contessa Brewer
— CNBC Correspondent
Bernie Moreno
— U.S. Senator (R-Ohio)
Dr. Jon Cohen
— CEO, Talkspace
Joe Kernen
— Co-Anchor, Squawk Box
Andrew Ross Sorkin
— Co-Anchor, Squawk Box
Summary
This Squawk Pod episode covers Alphabet's latest earnings and AI capex-driven selloff, Fed chair succession and political tensions, and the growing role of prediction markets ahead of the Super Bowl. Citi's Ron Josey remains bullish on Alphabet despite massive capex. Senator Bernie Moreno discusses Kevin Warsh's confirmation and criticizes Jay Powell. CNBC's Contessa Brewer and Jonathan Cohen examine sports betting and prediction market risks, benefits, and regulatory concerns.
- Alphabet beat estimates but shares fell on higher-than-expected AI capex guidance.
- Ron Josey stays bullish on Alphabet as a top pick, citing search/cloud growth and AI products.
- Senator Bernie Moreno calls Kevin Warsh an upgrade over Jay Powell and pushes for confirmation.
- Fed Governor Lisa Cook says she wants more inflation progress before another rate cut.
- Prediction markets like Kalshi are seeing explosive Super Bowl volume growth.
- DraftKings and Flutter shares have fallen sharply amid competition from prediction markets.
- Jonathan Cohen warns sports betting poses financial and mental-health risks, especially for young men.
- Paul Weiss chairman resigns amid Epstein-related email fallout.
Ideas
Alphabet remains top pick despite capex
Alphabet remains one of his top picks after a quarter with 17% search growth, 48% cloud growth, and strong cloud backlog. He argues its AI investments—Gemini, TPUs, and the agent side of the platform—are delivering better overall results, and he supports investing in growth to gain share even as 2026 capex guidance of $175B-$185B pressures the stock.
Prediction markets pressure DraftKings and Flutter
Prediction markets are filling the sports-betting void in states like California, with Kalshi volume up almost 1,400% year-over-year and users such as sharps and 18-20 year olds migrating from traditional sportsbooks. This is pressuring DraftKings and Flutter (FanDuel's parent), whose shares have fallen 40-50% over six months, though BetMGM says it has not seen a material adverse impact and research estimates only a low-to-mid single-digit handle impact so far.
