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tv   Fast Money  CNBC  April 12, 2021 5:00pm-6:00pm EDT

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inflation tomorrow earnings dominate the rest of the week? >> yeah, they will i don't remember a big anticipated number where economists where everybody including the white house saying hey, don't pay attention to the details because it's because of base effects we'll see if the market they cans that to heart >> we know year-over-year is going to be a big theme. that does it for us. "fast money" begins right now. i'm melissa lee and this is "fast money. trader lineup, guy adami, tim seymour, dan nathan and karen finerman microsoft shelling out $16 billion for nuanced communication. so that got us thinking, what should be the next tech tie-up our traders have some ideas. we'll bring them to you straight ahead. plus, an all clear for alibaba. why one trader is calling the fine the best news we've seen in a while. and later, time to ante up draftkings falling 6% today. the stock is down nearly 26% in the past month so you double down on this
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pullback a semi smackdown the gloves coming off in the battle of the chip giants as nvidia fires a shot at intel hey, josh. >> so melissa, ceo jenson wong has transformed nvidia into a true powerhouse with that company's graphic chips. these are protests that generate images and accelerate ai now they plan to make their own servers, the primary brains in most computing devices saying first quarter revenue is tracking above its previous outlook of $5.3 billion. and that stock posted its best day to year in over a month. some investors clearly saw the announcement as a direct shot at intel, which reported $26 billion in revenue from its data center group in 2020 that was a jump of 11%. that stock just had its worst day since late february. so how bad is this news for pat gelsinger? capturing that his company still does boast certain advantages. nvidia with the new server cpu
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is targeting more of a niche market patrick says and intel is still the giant. dominates about 90% of the market no response from intel on that nvidia news. there was also that big white house chip summit today. president biden's infrastructure plan does include $50 billion for the american chip industry melissa, back to you >> josh, a question on the niche market point how profitable is it to make such a big deal that they're going after this narrow part of the market >> you're going after what is called the hpc market. so that is a market that would include things like national laboratories like los alamos. that's why patrick moorhead is saying these are different intel is dominating about 90% of that server cpu market and patrick's point is intel's focus is different it's really targeting more general business uses and cloud providers. but we'll see how it plays out, melissa. >> josh, thanks. josh lipton. guy adami, it's interesting to
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see how intel traded as soon as this release crossed from nvidia, stock dropped like a rock >> zero sum gain not only in terms of intel's move, but qualcomm got a downgrade. stock didn't trade well. amd didn't trade particularly well texas instruments has been hanging in there what the market is saying who is the leader here and who are we really going get behind in terms of growth? nvidia has a huge valuation, i think we would all agree, but it also might be the most exciting tech name or chip name bk spoke than in early march by the way about 20% or so ago. i still think there is value in an amd i am surprised how well texas instruments trades with 8% eps growth at a 27 multiple. and just for you playing stock market at home, note that today's high in nvidia was basically the same high we made back in february, and we did it on three times normal volume if you're trading it, trading around it, today is not a bad day the take some chips off the
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table, no pun intended >> for all the folks that thought pat gelsinger was going to mark the start of a intel turnaround, does that go away or become diminished because nvidia is going after this niche market >> i'm not sure because i don't know that he has really gotten time i know the market really likes him and is comfortable he is not new to the company but this wasn't entirely unexpected, i don't know but we're also not going to see the effects for a couple of years. and then it sort of makes you wonder, all right. what else could nvidia do after that so i mean, intel is inexpensive. should it be relatively inexpensive, but this penalty, i think i'm starting to get a little bit interested. it's sort of -- the valuation when i look at nvidia, obviously nvidia is kicking on all cylinders. they talk about every line of their business doing better than they thought when they had that
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$5.3 billion number they put out today. the stock reflects a lot of really great things. intel, not so much so i'm more drawn to that value proposition, even though this isn't great news for them, this also isn't great news for amd, but they're sort of in between the two in terms of valuation and momentum thinking new grace chip that n riddia is going to make isn't going to be on the market until 2023 a couple of years. in that period of time, intel has some leeway to sort of prove itself, tim, don't you think >> look, we know that the amount of money intel told you the amount of money they need to reinvest or invest in their business and in innovation so this shouldn't be a surprise. now this is the largest chip company coming after them. and it's based, as we said dominate, over 90% so to the extent that there's expected to be competition, how can you not have expected something like this? and look, intel was at all-time highs hen that news hit.
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let's be clear i actually think that the performance isn't that bad from a trading perspective on a day's basis as a trader. i think intel had a very strong move off that gelsinger announcement, off that investor day. it's not surprising it needed a catalyst to pull back a bit. but i wouldn't be running from this stock >> so i guess this really begs the questions, most obvious segue into a game of would you rather at this point, part of nvidia's move was not just this announcement of this new grace chip but also that first quarter was tracking a head of expectations, it's firing on all cylinders when it comes to graphics chips ai got the kicker from crypto and crypto mania that is going on, dan. so would you rather at this point, nvidia, which seems to be firing on all cylinders with the wind at its back, or intel where you are to bank on a turnaround? >> yeah, mel, i think i'd retardant amd right here guy adami pitched this thing a few weeks ago. >> okay. >> and i really like the
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relative underperformance right now to the smh and i think there is obviously some overhang about the xilinx deal and what that means for this company going forward so i'd rather amd here i'm with guy and i actually agree on the nvidia that you probably take profits at that prior all-time high right here. i'll just make one point you just said it, mel, that these chips are not going to be on the market until 2023 when i look at estimates for nvidia going forward, i'm expecting or at least the street is expecting low 30% eps growth and sales growth this current fiscal year. and then they're expecting it to decelerate meaningfully to about 10, 11% for both in fiscal 2023. well, that's the year that these cpus that are going to start hitting the market from a competitive standpoint so it seems like at this valuation, about 17 times sales, 45 times earnings with that expected deceleration, nvidia needs to do something here to me, this makes sense, but there is a lot of time that's going to happen between here and then and i think intel and amd
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probably trade okay in the meantime given the shortages that we're seeing right now in the space. >> guy, will you please play my ranger game? intel or nvidia? >> yes, i like what dan did. he went off the board for 500. but to answer your question in terms of the way you framed it, i would rather intel it's got nothing to do with what i think about nvidia it's everything how the stock traded today the run it's had off 495 and the fact it traded up to and failed at the 614 and change level. i think tim's point about intel is right as is karen's in terms of valuation so given today's price action where both stocks are, the answer is intel and the game of who you rather. >> okay, thank you for that. our next guest moves on to intel's turf makes a lot of sense. let's bring in jared weiss field at jeffrey's good to see you again. >> good to be here thanks, melissa. >> why is going after this niche market so important? >> i think it speaks to what nvidia is focused on over the
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next 5 to 15 years they're in the middle of an acquiring arm or trying to for $40 billion. they know the battle for data center is at risk. and by acquiring arm, they're going to get access to a lot of this technology. they're showing innovation that is occurring before they're even getting through this acquisition. so you think about the benefits that they're talking about, they're talking about ten times improved performance utilizing their own grace cpu combined with their own accelerators, their gpus that's a meaningful amount so you start with the niche like hpc, high performance compute and ai, artificial intelligence, and then what you do is you build credibility before you start going into the larger total adjustable market. so it makes a lot of sense and it also makes a lot of sense that they're partnering with amazon they're partnering with media tech they're partnering with marvel as they're going through this regulatory process so it certainly speaks to the long-term structural growth within data center and how they're attacking the market
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from an arm architecture perspective. >> hey, jared, it's tim. does this do anything or add complexity to the antitrust around nvidia a.r.m. in? is that something you think makes this deal more complicated? obviously not challenging or a challenge to intel and data center, that's welcomed i'm sure on some level by the industry. but to the overall dynamics going on between this, as you said, takeover they're trying to get done, do you think complicates that >> i think if anything it can speak to the fact that they're innovating so aggressively within the arm ecosystem if you're a partner and you're seeing them innovate like this and deliver this kind of product road map, you're going to be happy. and they're quartering their partner. i take that as an incremental progress with the progress they're trying to make with respect to regulatory. can they get approval. you say applied materials got rejected a few weeks ago
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this is going to be a long drawn-out process. they lay out an 18-month timeline we're still early days it's a incremental step in the right direction. >> hey, jared, it's dan. thanks for joining us. so as far as semi equipment stocks go, how would you see this changing any of the deck chairs that are set up we know that taiwan semi keeps raising their cap back so there is some major tailwinds happening right now. how would nvidia's entrance into this market and the enclosed arms deal what does it mean for any equipment stocks in particular >> for sure. when you take a look back and look at the semiconductor equipment landscaping 10 core, et cetera, they're in a very good position right now when you think about the fact we're in a significant shortage we obviously have the summit at the white house today with multiple executives from the automotive industry and the semiconductor industry talking about when they can alleviate that shortage. it plays into the fact that
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we're going to be in shortage for at least the next six to nine months. cyclically they're a very good spot from a structural standpoint, you think about artificial intelligence and hpc type workloads. they're going to be using and leveraging silicone that's significantly larger in nature on a millimeter square basis what that means is that the demand for semiconductor capital equipment, the intensity is only going to increase. so this is no doubt a long-term structural positive tailwind for the entire semiconductor land landscape. >> it sounds like you think there is more upside to equipment as opposed to semiconductors >> they're in a very sweet spot right now. if you listen to applied materials analyst that was hosted last week that. >> talked about $85 billion in wafer fab equipment spends over the next few years and you also have multinationals, right. you have china you have the u.s., europe looking to add capacity from a national perspective in terms of just nation-backed foundries
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so they've got very significant tailwinds at their barracks while we have you, jared, got to get your quick thoughts on microsoft and nuance >> second largest market acquisition in microsoft's history behind linkedin. and it's all about augmenting their total adjustable market. so augmenting microsoft health care cloud, they're doubling their town, their totalable addressable market to $500 million, combining nuances to ai algorithms with microsoft's leadership in azure on the cloud side so not only are they attacking the health care market in a pretty meaningful way and leveraging the existing microsoft capabilities, but they're bringing very significant and critical ip toward microsoft teams so if you think about microsoft teams, which is the competitor to slack, microsoft is all in on teams. the package is based on teams performance. so they're going all in, increasing and augmenting the capabilities from a teams standpoint and they're going to integrate that seamlessly with nuance it makes a lot of sense.
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>> jared, dwret to see you thanks for your thoughts. >> thank you >> that was in terms of satya nadella's compensation is tied to teams and what would that mean to not just a slack, but also to a zoom, let's say. dan, what do you think >> yeah, this is a pretty sneaky little acquisition here, you know $20 billion with debt. it's a rounding error on microsoft's market cap and even on their balance sheet, and i think jared laid it out why they're doing it here. they're adding some capabilities, azure is becoming more and more of a competitor. that's one of the reasons microsoft is almost a $2 trillion market cap. to me this makes sense they can basically do whatever they want. they were looking attic together, discore, a few thins this is 1% of their sales, but it means so much more to them if it's done properly and gives them access to some of the markets where they can flex with their cloud. >> yeah, they wanted to do something. it was very, very apparent and karen, maybe the biggest
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tell is the movement or the lack of movement in microsoft's stock in response to this deal >> right well, if you think about it, it's an all cash deal. so they had cash sitting on the sidelines basically earning nothing, and they can buy this, which is strategically really important. they said it would be a dilute of 1% in the first year and accretive thereafter, and still there would be no change in the company's $20 billion buyback. to dan's point, they can defer what i they want this makes sense to me >> all right well, this $16 billiondeal for nuance got us thinking who should be the next tech tie-ups. we're going to play a game of let's make a deal tech takeover. each trader comes up with their perfect pair we want to kick things off with karen. what are you think >> yeah, i got it. perfect pair it's peloton and tonal you think of thor, the of course it's tech. it's not just a bike, right? it's a consumer tech product they already have the bike
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obviously. they have the treadmill. they have the class, but what they don't have is serious weight training, and that's what tonal. and it fits on your wall so dan, you could have it next to your treadmill, and it makes perfect sense that they would integrate all these aspects of being fit and have your own little gym and if peloton buys tonal, they can be pelotonal see? meant to happen. >> well, the name is pretty catchy dan, what do you think since you are a peloton user >> well, i'm obviously do the weights too. you can just tell. i think that makes sense we were talking about it earlier. i think the lulu mirror thing was really interesting obviously peloton is buying that p precor they're looking to beef up what they already have, but i'm already beefed up here. >> your suit will rip off your body if you continue to do what
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you're doing tim, in terms of your tie-up, what do you think? >> so mine's a fintech tie-up. and to me this is square buying lending tree and to me this deal makes a ton of sense for both capital markets reasons, and i think it fit. square's cash up is the one-stop stickiness that aloud the company to grow and ultimately you never have to leave. why not layer in lending tree, which is a $3 billion company well off its high. had a lot of run in to its last fourth quarter numbers disappointing on margins and earnings the stock has collapsed. and yet this is a full suite of products in consumer finance and whether it's lending, whether it's insurance, this makes a lot of sense to me i think for the profile that square is building and again, square in terms of that stock, using that as as a currency, effectively being three times where it was precovid we know what they're doing in terms of this overall strategy and i think this makes a ton of sense. >> all right dan, your tie-up
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>> yeah, so there was a headline last week that amazon is about 10% of the u.s. admarket right now. they're just a behemoth. they're going do $16 billion in sales here i think twitter and snap ultimately have to merge those two combined have about $9 billion in expected sales, most that of is obviously digital ads right here now listen i used to think that an alphabet or a facebook or maybe even an apple might buy one of these guys but with the regulatory oversight on some of those big social ad names, i just don't see it so with amazon coming up here, they're going to become a behemoth and i think you're going need to see twitter and snap which really don't have overlapping products i don't think that would be an issue with regulators here i think they need to beef up and i think they could be a meaningful competitor to facebook and some of the properties that google has >> that's an interesting one guy, how about you >> well, i should say pick me,
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monty, for you odd couple fans out there. that's a homage to monty hall. number two, all these deals are fantastic, but they all have integration risk, potentially regulatory risks they'll get past them, and i love the deals here is one that has no integration risk and no regulatory risk, and this company would spend 10% of their cash, that would be apple buying the bitcoin. it's interesting you hear michael saylor talking about balance sheets being basically turning a negative into a positive when they transform their cash positions into bitcoin positions $25 billion for apple is 10% of their cash it's nothing i think the ramifications would be huge not only for apple stock, but for the industry as well that would be my sort of off the chart tech wrap-up, or what did you call it meet up or something >> let's make a deal . >> let's make a deal >> would the indication be that apple eventually accepts bitcoin
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as payment or will use it as part of its payment system >> does that not make sense? isn't that seamless in terms of what they're doing going forward? go back and look at some of the things michael saylor said about balance sheets and the transformation thereof and for apple it would be a small foray into snag could be potentially huge i think it makes a loft sense. pelletier feeling the pain we saw something in the options market that suggests a turnaround is in the works we'll bring you the trade. if you don't on it, buy it if you do own it, buy some more. that's what one trader says we should do with alibaba why the $2.8 billion fine is actually great news for investors. all that and more when "fast money" returns need better sleep? try nature's bounty sleep 3 a unique tri layer supplement,
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welcome back to "fast money. alibaba topping the tape today hit with a $2.8 billion fine by chinese regulators as a result of an anti-monopoly investigation. now karen, you're saying that it's the best news we've seen for baba in a while. why? >> yes, because basically, they were -- think of them as a metaphor, being on trial and the trial is over now, and they got the tiniest slap on the wrist, and it's over that's it. when we look at december 20th,
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the stock was 256, and then this announcement of this antitrust investigation was announced. traded down to 220 that day. now if i had told you or me, because i was a sad holder that day that there would be a less than 1% penalty and then the investigation would be over, i'd be pretty happy with that outcome. so i'm pretty happy with this outcome. and i think that were the stock open today, it really wasn't fully reflecting i think it's on its way back up now. financial had some clarity there as well. i do think ant financial, the value has been sweepstake diminished, but not nearly as much as the overall stock in baba has i was long going into today. i bought some more today and i didn't quite get as much as i wanted and it kind of took off a little bit but this is very, very good news >> we got to go to the ambassador as well for his thoughts on baba, tim. and is it too early or too soon to say it's an all clear for
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chinese tech in general, or is there still an overhang that regulators go after other tech companies? >> look, i think this investigation is close as someone who has been investing in emerging markets for a long time, i love to see these kind of settlements. what i didn't want to hear them say is we dispute the findings of the anti-monopoly group and we're going contest this that's the worst thing they could have done. i love the fact that the headline i saw said something along the lines of we thank them for their guidance and they will move on. and they willthank them. thank you, sir, may i have another. this is great news this is what you want to see in an emerging markets environment where big brother can do what they want here i said all along i actually think they're guilty of this i think what the regulator is doing in china to build a proper both support the tech industry, to build an ecommerce industry i think is the right thing to do and i also am long alibaba
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and i think buying it on this news is important. >> yeah, so guy, what do you think? is this the all clear for alibaba or does this tell you that regulators can effectively come in and fine you for anti-monopolistic practices, et cetera, et cetera, any time they want you >> it could happen again, right? but the market has learned how to deal wit. i think karen makes a great point. i love it when she sites level that 220 level she talked about, january 2020, the stock made an all-time high and sold off precipitously. past resistance becomes support. and we found it in the wake of $220 a share so i think you have something to trade against. and i do think it's the all clear. so i'm with k-fine on this one for sure. >> what do you think, dan, a basket of chinese stocks or a basket of u.s. internet stocks >> probably china here and i think a lot to do with the fact that sentiment is really bad. they performed really bad. i don't know if you remember this, mel, i used to have a
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graphic. remember the triangle of death. >> yes >> this chart really does have the triangle of death chart. now 220 is clearly that neckline if you want to look at a one-year chart, and you look at the left and the right shoulders. and guy, you know that this left shoulder can have two shoulders here i look at that downtrend you may have clear saying up to 250. but if it gets rejected there, you might see another retest of the 220 level. that being second, i prefer the chinese internet because of the underperformance over the last few months. >> the left shoulder could have two shoulders. that sounds pretty bad that sounds awful. sounds like an awful formation we've got a lot more ahead here's what's coming up. >> uber shares driving higher as the ride hailing company posts record bookings. is this the ultimate reopening signal that trade ahead but first, one stop strategist is calling this market the strangest he has ever
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seen one odd phenomenon is he referring to and what's his playbook? those details neck we've got that and a l me enfa meyreturns.
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visit to find your cfp® professional. ♪♪ welcome back to "fast money. stocks finishing the day in the red as investors gear up for earnings season, and the setup has been strong. the dow and s&p 500 sitting here record levels. our next guest is questioning the level of market exuberance, calling it the strangest melt-up he has ever seen julian emanuel is bti ace chief equity and derivatives strategist good to have you with us strangest you've ever seen in your entire career why? >> basically, if you look at the month of april, it's just an incredibly strong month and
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really almost straight up. today was a tiny, tiny pause in the uptrend. and when you think about that kind of melt-up type action, what you would normally expect is rising volumes, rising enthusiasm, rising call volumes, especially since call buying on the part of the public has been a big story the last nine months and we've got just the opposite. and so it really is a puzzler. on the one hand, we think it's actually a positive sign because what it says is that bigger picture, this isn't sort of the end of end rallies of what's all new 12-month bull market when the average bull market lasts almost four years and rises 150% we're up 85% 12 months but at the same time, it's a little bit more cautionary when we think about the potential for earnings season to be an upside catalyst that's not likely going to be the case in the weeks ahead.
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>> julian, it's karen. let me ask you when you say about volume so if the volume were much greater, would you be thinking the market is reaching a peak? >> we would be thinking likely there is more explosive upside given the fact that when you think about it, we've overcome just a number of things, you know, rises and falls in the mean stocks, rises and falls in eb, spacks, solar stock, all of these things that essentially have been quite speculative. but if we were seeing rising volume and rising price, we would say there's more to it, but that having been said, the vix down around 16 and 17, you're still looking to put on downside hedges in case the music stops. and when the activity gets frenzied like that, you don't ever know when the music's going to stop.
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>> julian, elon musk asked kathy wood a pretty much rhetorical question, i think at least he knew the answer about the s&p market cap over gdp, does it matter we had an interesting conversation last week about it. does it matter because as we sit here, we're somewhere between, i don't know, 165%, 180% s&p over gdp. market seems not to care should we? >> when it comes to valuation metrics, what we've seen is the market doesn't care until it cares. the question is what's going to get it to care and if we go back to the beginning of the year, we've had these hiccups every now and then when yields started rising perhaps a bit too strongly now, we go back to chair powell on television last night, that's not likely going to be the case that we're going to have yields rising strongly. what it says is if you're committing new capital to the market right now you shouldn't
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expect a profit right away what we've seen, though, is that when you've had a paradigm of the market's sustained valuation at this extreme for a long period of time, again, this early into the bull market cycle, what we're likely going to have is a period of digestion before we move higher. but it is the market saying that it expects earnings and particularly now economic growth to catch up with valuations. >> you know, the notes that i got from our producer here, julian, were very interesting because it says that you are very, very, with the very, very in call caps, bullish on bitcoin. and so i'm wondering if let's say somebody hat home had some a sum of money, let's just say $10,000 for argument's sake, to put some place from now until the end of the year, would that be in u.s. equities or would that be in bitcoin >> so here is our view on bitcoin. long-term we think it's the story is very sound.
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we that it is likely to become an increasingly more percentage of someone's assets. we think for now there is some digestion to be done there is a very important ipo coming out this week we want to see how digital assets respond we would say that with both u.s. equities and bitcoin, you need to think long-term we do think both are going higher we do think that bitcoin looks quite strong into next year, but don't buy it just because you think this ipo is going to be successful this week >> okay. julian, thank you. julian emanuel at btig for somebody who thinks bitcoin is going to be a 92 grand next year, tim, i don't know. it sounded like bitcoin to me. what do you make of julian's assessment of this melt-up >> well, first of all, april is seasonally always a great month for the market, often is and may and june often can be awful months
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so, look, the expectation of this earnings season being remarkable is something that i am concerned about i'm more concerned about the point in which analysts and companies themselves have actually started to talk about normalized earnings. so i do think you have, for example, let's take the financials banks have rallied dramatically into this. i own money-centered banks do i expect their numbers to be good i think they're going to be great. i think banks if they follow the script that they typically followed in the last six or seven quarters, they're going trade down on this news. and it's going to take three weeks into earnings season for them to pick up steam again. i think that's kind of where yes with the market. >> by the way, it always seems like they trade down on earnings, dan. >> yep >> that's the pattern. >> yeah, they do i think it's like tim outlined i think it's a particularly hard setup for a lot of companies, especially sectors that have outperformed i'll mention one thing about julian's caution near-term about this what feels like euphoria. it's really hard to find bear cases for the market right now
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like really hard he talks about in his career he hasn't seen this or that i can't remember a time where just the universal bullishness because of so many odd things that have happened, specifically over the last year, mainly, $6 trillion in stimulus, which is about 30% of the market cap that we have here in the u.s. and i'll just make one last point. this year, although we are up nearly 10% in the s&p 500, we've seen two massive dislocations in the market which is really actually should be very worrying to a lot of people about market structure. the first one in january about shorts and the other one obviously about longs. if you think rkegos is the only fund that has very concentrated levered bets in stocks that have appreciated a lot, you got another thing coming if have a reason for the market to sell off, remember that whole thing about total returns swaps and the kind of opaqueness that we see there this is going to be an issue here so i don't know what the reason
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will be. i'm not calling for a big decline. but the market structure has been tested this year in both ways and i don't think it's really held up particularly well right now. coming up, best month ever uber driving in a record number of bookings for march. we got the trade ahead plus shares of draftkings dropping the stock is now down nearly 20% in just a month. time to ante up. stick around we've got all that a mh renducmo when "fast money" comes right back some say this is my greatest challenge ever. but i've seen centuries of this.
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welcome back to "fast money. shares of uber jumping 3% today. the company announcing a record gross bookings in march, a sign things might be getting back to normal in the ride hailing business we heard from uber's ceo earlier today. here's what he said about the path to profitability. >> we talk about adjustability profitability getting there this year, we mean profitability after overhead on a ebitda basis. all-in profitability and that will include businesses that we're leaning to where we will be losing money in investing just because the opportunity is so big. and then we will have businesses like our mobility business that are a bit more mature where we
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have stronger margins essentially able to fund some of these growth businesses. >> what i thought also was really interesting, dan, it wasn't just gross bookings for rides, but it was also record bookings for food delivery, because the premise had always been, well, it's going to do really well in food delivery during the pandemic. and then when things change around, that's going go down >> yeah, i've heard him speak. numerous times he had a really great interview with kara swisher a couple of months ago listen, some of this behavior that a lot of wall street was betting against in the throes of the pandemic has accelerated and it's here to say i think you can actually count on that food delivery. they've made some moves. they bought postmates, right so they're consolidating around that so, you know, it seems like they have it firing all cylinders someone in new york who has been there the whole time during the pandemic, it's still a seven-minute wait time to get an uber i'm just a little skeptical about that record rides number >> interesting
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should we draw any conclusions with lyft just last month saying ride levels have reached prepandemic levels versus record levels where uber saying record levels, tim? >> look, i believe they will both see beyond precovid demand as we get into the early summer, not the late summer. i think the pent-up demand means we overshoot i actually love hearing uber talk about their investment into grocery. it reminds me a lot of amazon. i realize very different, but low margin business where at some point that investment gives them a major head start over a lot of other people. and i think it's something that's worth investing in now while they have gross bookings at record levels also across the other business i like the uber story here i like for both ride share companies, the dominant ones the backdrop i think for reopening is strong. >> but which one, guy? >> lyft.
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i think lyft -- see, i played that game so well that time. i didn't even hesitate. >> you didn't stray. >> lyft learned from uber's mistakes i think their pathway to profitable is clearer than uber's lyft hasn't trade as well as uber recently, but i think on earnings lyft, not uber. all right. a double dose of opportunity draftkings going cold recently the stock down nearly 20% in a month should you bet on this pullback plus, pelletiers pulling back, but a betting on a turnaround soon when we come right back. ♪ i wish that i knew what i know now ♪ ♪ when i was younger ♪ you need a financial plan that fits the way you want to live in retirement. a plan that can help grow and protect your money.
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welcome back to "fast money. time for today's buzz kill check out draftkings, dropping more than 6% lady luck not helping the sports betting stock recently draftkings is down nearly 20% in the past month and we also saw some weakness from the other recent spacks today. virgin, lordstown all seeing big losses tim, you flagged this one. what do you make of it >> i think draftkings has a couple of things i'm long draftkings first of all. the thing here is about growing market share and some formulaic
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reputation of how they will participate in that. the new york gambling proposals and the legislation coming through looks really cloudy at best very confusing i think that's a negative. look, in terms of broader money into the spac market, if -- it is a spac, but trading on the fundamentals of the company, in spac land, there have been a lot of issues with essentially the pipes that are funding a lot of these spacs and the punctuation on how emphatic the investors have been on the deal or not i think the pipe market is going through some pain right now. i think there is a lot of deals out there. there is a lot of indigestion there is a lot of folks that are pulling back and thing is a lot of folks in the capital market side that are pulling back on those deals because they don't see an appetite >> yeah, karen, you also -- you all were talking about this on the call earlier today but karen, what specifically are you seeing >> i'm seeing what tim's seeing, which is the pipes, so a spac,
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they may sell shares to the public, but also they want to have investors that they know will vote with them. and those are called pipe investors. i think it's private investment and public entities i think is the acronym. so they help secure the deal and get more money and enable the sponsor to know that they're going to get a deal done so i think the word tim used indigestion is perfect so many of the pipe players have more than -- maybe more than they want given how some of the spacs are trading now. when they're all trading up great, sure, everyone has an appetite for more. but now that they're getting close, in many cases to 10 or even below 10, it's not as enticing so that indigestion needs to work its way through before we see more in spac market. i don't know if it's fully thawed yet, this cold streak a little more time i think >> i don't know if you guys caught the cover of "new york" magazine, but this seemed to me like a sign of the top when
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spac, the acronym, makes to it the cover of "new york" ma magazine can i spac my stonks with nfts, guy? >> you say that to me knowing full well the response you're going get. >> it's like wind him up yep. go >> you wind me up. you wind me up right. you create -- now it's in my head it's going to upset me the rest of the night despite the yankee outcome tonight. i'm now not happy. we've seen a number of things like that should in theory be a sign of the top, but the market doesn't seem to care just quickly in terms of these pipes being clogged, it would be fascinating to see metamucil rolled up in a spac. think about that that would clean up those pipes in a second. >> i don't even know how to respond to that. i'm just going let that go coming up, is palantir primed to pop this we spotted somethin today in the actions market that could point to a turnaround in the works. we'll break that down when "fast
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money. palantir pulling back today, falling more than 3% but a lot of retail trader activity in the options market seems to be pointing to a very quick recovery let's bring in my mike khouw fo more what did you see >> palantir options saw above average call activity today, about 90,000 contract morse than it trades on average and the most action was seen in the 24, 25 and 26 strike calls, april that expire this coming friday the 24 traded about 45,000 contracts trading for just under 70 cents buyers are betting the stock could recover by the end of the week >> mike is going to stick around dan, what did you think of palantir >> well, it's really interesting based on that other conversation we're having about spacs this stock is down 50% from its all-time highs here. can't get out of its own way it's down in the year versus a nasdaq and s&p up nearly 10% thing is another sign of just some enthusiasm coming out of some of these once very hot
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parts of the stock market. >> yeah, if memory serves, guy p., in your hope trade where is palantir >> hope springs eternal and your memory is well served. clearly and to dan's point, listen, after trading up to 39 and change, the stock's tread 23 now and has not been a performer at all but kathy wood keeps talk about how much she loves the stock and then decide on another million shares i think in the earnings on may 11, you buy the stock. listen, it's been very difficult. i get it i think people have a concern they can't scale down their offering for medium-sized businesses i think they'll figure it out and i think it's still worthy of the p. in the hope trade >> all right mike khouw, thanks for that and for the full show "options action," it's friday 5:30 p.m. eastern time coming up next, your final trades when traders tell us how to make thinkorswim even better, we listen. like jack. he wanted a streamlined version he could access anywhere,
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right now, you're planning for your future. whether it's employee number two, or employee number two hundred. you deserve to work with a team as invested in your future as you are. learn more at check out shares of chipotle mexican grill hitting an all-time high. guy, you flagged this one on our call >> because i'm a huge chipotle fan. they do wonderful things you talk about a great turnaround story this will be in the harvard
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business review. you'll be reading about this 20 years from now, how they turned what was really a dire situation in probably one of the best fast food companies throughout. people are knocking on valuation. ray james gave them an $1800 price target i think nicole miller, prime ministerer jaffrey a $2,000 price target you stay long into earnings i believe on april 21st. burrito blowout. it is time for the final trade. let's go around the horn tim seymour? >> i don't think this news by nvidia is a blowout for intel. the turn around at intel is about investment in their core businesses and i think cpu and servers still remain so. >> karen finerman? >> yeah, my final trade is viacom i think the dust has settled and i think we'll see some analysts who had to bow out during the whole craziness start to come back in. it's a good value at this price. >> dan nathan? >> yeah, so one game i did play well for you, mel, was would you rather chinese versus u.s. stocks one way to play the chinese
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stocks is fxi. some of the big names make up a big weight of that >> i appreciated that, dan guy adami? >> amen. that whole thing we did got me thinking, amat >> all right thanks for watching "fast money. see you back here tomorrow at 5:00 for more "fast. meantime, don't go anywhere. my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make a little money my job is not just to entertain you but put it in context. call me at 1-800-743-cnbc or tweet me @jimcramer. why do i like techno


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