tv Fast Money CNBC May 13, 2021 5:00pm-6:00pm EDT
earnings here. resetting sentiment is probably the main thing the market is up to. >> and swings, coinbase now higher 2.5% was down 4% on the initial results. pretty bullish >> lots of after-hours movers. more analysis throughout the evening on cnbc we're out of time on "closing bell. "fast money" is next. >> i'm melissa lee this is "fast money" tonight's trader lineup guy adami, tim seymour, dan nathan and james mcdonald. we're all over after-hours action on disney, stock is moving lower on the back of earnings, the call is under way and we'll hear from bob chapek who will join us on a first on cnbc straight ahead. breaking news out of -- fisker to build cars in the u.s. fisker ceo joins us exclusively. and stocks rebounding from yesterday's big sell off we will tell how traders are
playing the turn around. starting with disney let's get to julia boorstin with the details. >> disney earnings per share grew 32% to 79 cents instead of falling 55% as analyst anticipated. the company's revenue came in a bit light. the stock is slower than expected streaming subscriber growth growing to 103.6 million lower than the 109 million analysts anticipated on the call i have to note that disney's cfo says subscriber growth in the third month of the quarter was faster than growth in the first two months. on the earnings call ceo bob chapek announced two sports rights to bolster the library on espn plus, including extension with major league baseball through 2028 with the option to
som simulcast on espn and la liga covering spanish and english language rights. as for the theatrical movie business, three movies will be distributed this summer on theaters and disney plus for $30 fee, disney will give a exclusive 45-day window for ryan reynolds free guy, and "legend of the ten rings" we'll discuss that and more with disney ceo bob chapek who will be joining me as soon as that earnings call wraps. >> we look forward to that thank you. let's get the trade on disney. guy, kick it off. >> tom rogers says it all the time and rich greenfield just tweeted it, i give a ht, is that what they call it, hat tip to
him. they have half the subscribers as netflix but one-sixth the revenue. not all subscribers are created equally, number one. and number two, for disney plus expected had 410 came in at 399 valuation the stock is trading 35 times next year's numbers where do you buy the stock final point. 162 is the 50% correction of the recent 120 low the and the recent high of 203 i think it might actually get there. that's where you draw your line in the sand. >> tim, yesterday we talked about the forward pe of disney which is about 61 right now. a lot of that pe gain had been on the back of hopes for streaming. here we are in a situation where subs didn't come in as high as forecasted so is this right for disney to be down 3%
maybe it should be down more >> i would have thought it would be down more i think it's a good show as a disney shareholder and i think it's about expectations. in march we heard from the company there were over 100 million subs the entire street reset the numbers higher, though we just heard the third month of the year was better than the first month of the year. i could also say that disney has half of the amount of subs as netflix in 1-20th amount of time great point went from 563 to 395 a very disappointing relative to the 410 expected to decline but nowhere near bringing in the top line from dtc netflix but remember the disney strategy and media and content and distribution companies there also to be a lubricant for the experiences business in a case whether it's parks or cruises or experiences, this is what disney has always done and the fact of
the matter is their content and content spend is going to rival anybody's over the next couple years. so i think if you value this on a multiple of dtc, on a sales number, which a lot of people used to do for netflix, and then you throw the core business on earnings multiple, listen to jpmorgan it's a 202 dollar stock. >> maybe i'm being obtuse, i understand it's driving the ecosystem of disney, when we say that are we implying part of that gain in pe shouldn't be that much of a gain because the accretion should be towards other parts of the business so the comparison is not fair at all when you compare disney streaming business versus netflix in terms of a pe. >> well, first of all, netflix pe doesn't make sense at all. >> yeah. >> it's never made sense they never made money. they burn cash so my point is disney ultimately what they prove with their studio it was a fly wheel for
three other core businesses, consumer product, theme, experience this is why the profitability in disney model is better than netflix model. meanwhile netflix has more competition than ever. i'm not would you rathering, but relative value -- i just did didn't i. >> you did. >> disney to me is a ultimately different story. i don't care they're dtc streaming business isn't as profitable right now. >> yeah, i guess my point is the argument for disney streaming business have a little more of the netflix pe may be a little bit false because you're looking at it, i don't want to say a loss leader but a way of boosting other parts of the business, not as a stand-alone business. >> you're not now because it isn't the main part of the business, that's why it's apples to oranges, talking about netflix versus disney plus, it doesn't make a lot of sense. the way tim lays out the bullish
thesis does make sense flywheel. i would add hulu did beat on the subs they renewed some sports deals i think that live, you know, deals, you know, programming is really important for that hulu property so to me that should be beneficial listen, you know, guy kind of laid it out here, it broke out the prior high last year, q1 was about 150 or so. it broke out that 150 to 160 range. it probably heads back there just a few weeks ago i was thinking when the stock was in the 180's that you would have a push back on the reopening trade towards the prior high of $200 but now it feels like it's in no-man's land i don't think it's about pe, i don't mean to sound obtuse but some movies it would get you thrown in the hole for calling someone obtuse, it just feels like we passed the rubicon it
should hang in the 170 to 160 range in my opinion 234 the near term what do you think james. >> i love coming last. -- starting with mid levels -- at 161.5 in this market where valuations have been bonkers, energy for buying has been unabated and every asset around the world is swelling up. you have to look at technical charts, not fundamentals or historical reference, we have to reference the environment. in this environment looking at the charts gives us some clues we seen last week break down of bitcoin falling through and other weaknesses in big names. disney is a company that will be successful no matter what but it carried itself into 2021 on the coattails or flywheel, to tim's point of this streaming business with everyone's favorite, mickey
mouse has been around for generation, it gathered subscribers faster than anyone else in the world could have, it got priced into the stock and now potentially into a transition into a late cycle we know my bear suit is fried but we have to assume disney will get pressure with the rest of the market, parks are opening, competition is there, disney is not going to continue its path because of the market environment but i think 161.5 is right for what guy is saying to the other point, as markets get choppy, we've all been in institutional desk and seen what money managers do, there has to be out of technical stuff and into dow, names we can count on, disney will get support where others weren't because it's a strong weapon. >> disney down 3.7% and reminder ceo bob chapek of disney coming up on the program.
meanwhile, fisker stock is soaring up 18%, ev maker revealing final details to do the final assembly of its cars here in the united states. let's get to live ceo of fisker. >> thank you henrik fisker ceo in california, let's make it clear you made it deal in february this deal was in the works, you signed a memorandum of understanding with fox con now that the deal is inked are you planning to build these vehicles in southeastern wisconsin. >> hey, phil, good to see you. well, of course, this is one of the places that we're looking at the truth is that fisker, we have received offers from three other states for manufacturing and we have to do possible due diligence as a public company spend couple months reviewing the best option, of course wisconsin is one of the options, that's clear
we'll announce the final site in two to three months. >> henrik, i'm sure you're aware, you mention the name fox con to a lot of people in wisconsin they will role their eyes there's elected leaders in wisconsin who say, wait a second, these guys said they will invest several billion dollars in our state and now it's going to be less than a billion dollars and they're not going to bring as many jobs as announced in 2017 and there's a fair amount of skepticism that fox con will follow through with building a plan the in wisconsin. what do you say to people with a lot of skepticism in fox con. >> we're an american car company, as you know we just went public with $900 million in the bank, and this program has been going on a couple months. we signed a final firm deal today. that's important fox con i believe is going to become more and more important in the automative world,
specifically because of the chip short shortage one of the deals with them is we will never be out of chips that's a big thing i've spent multiple times with teams on zoom and can tell you this foxconn deal is real. we have deals in the u.s., and it's signed off. it will be incredibly innovative so this is going to happen. >> henrik, will you owe-own the facility where the vehicle will be built or will it be a foxconn facility and you guys are going to be one of the first clients building at that facility in conjunction with foxconn >> so it's not a usual automative deal. the way i've structured this deal and we've mentioned is is kind of a khco-investment where we have divided
responsibility foxconn will own thefactory. we will own the tooling, of course branding to market and sell the vehicle, and then we're doing profit-sharing on this vehicle. so it is a joint investment. however, foxconn is owning the factory. they're also taking the lead in the global supply chain as you know as cars become more computer, foxconn has one of the most biggest electronic supply chains in the world, that's how we're going to drive cost down remember, phil, this is not another electric car it's premium electric car under $30 so it is high volume going to be sold globally. >> production of possibly quarter million vehicles last uestion, when you announced the memorandum of understanding in february, your stock was at 19. coming into today was down to $9 a share. whacked with the other ev stocks there's more than a few cynics who look ought ev spacs and say
they're a long ways away from profitability why should i get into it right now. what do you say to those people? >> i'd say don't put everybody in the same bucket we closed three deals in less than a year. first going public with the public spac. the second was the manufacturing agreement with mack ma and finally now with foxconn so one of the things we're doing different from all of the other spacs is we're lining up to have a complete product portfolio accelerated within only two years. is before 2025 we will have four vehicles on the road you can't exist with just one cool car i've been in this business for a while. i've had some difficulties and failures and i've learned from them and i think our investors understand that we're different. now we're going to get put in with everybody else and of course you have seen a lot of movement to do with tesla sales going down in china, but end of
the day, i think you will see a few winners coming out and i believe this is going to be one of them. >> henrik, fisker, ceo of fisker, thank you for joining us from california on a day, melissa, when they have finalized the agreement with foxconn to build a vehicle here in the united states exact location remains to be seen but no doubt, you see from the reaction of the stock that investors are looking at this saying, okay, let's see the next step between fisker and foxconn. >> phil, thank you we see the reaction of the stock in the after-hours session interesting time frame, seems to be very fast to get a car into the public and on to the market, guy, but at the same time goldman sachs points out by the time all-electric suv hits the market there will be a dozen other suv specifically out there as competition. >> and goldman down grade the stock few weeks ago, i think, to sell from hold $10 price target.
they are supposed to report earnings monday, the 17th, one of my questions would have been wouldn't it be cleaner to announce everything at once. with that said, maker double bond at that $9 october low, you mentioned we traded $32 at one point. i'm inclined personally to see what they say at earnings and see how the stock trades a lot of people negative in this name, had a huge run to the down side, held that low, but that catalyst on monday, watch out for. >> it's got 26% short interest as well, james, in a space that's been grim death in the past few months. >> right and i go back to the point of look at the environment we're in fisker has a varied story, checkered and interesting background story with this turn around it's a car people will like because it's less expensive than other ev plays it's a car and manufacturer that will be in the race for this ev market and i think the
environment and timing right now will be challenging for them because we had so much money made in so many areas. i think there's a proppencity of selling versus buying given the competition and the fact this particular car isn't necessarily going to make as much money as other manufacturer. >> up next, all over shares of coinbase and air bnb, both on the move right now, after reporting results, we'll break down the numbers straight ahead. and minutes away from can't-miss interview with disney ceo bob chapek to join us live don't go anywhere. much more "fast money" right after this yond ordinary etfs. and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. at cdw, we get these new ways of working for a prospectus containing this information. bring new threats. that's why we started an office commune. not a security concern around for 50 miles. unless you count the wolves. and all the llama milk you can drink.
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welcome back to "fast money" we have a double dose of earnings, air bnb and coinbase on the move after reporting results, we start off with more on air bnb's quarter >> ceo began the call acknowledging covid cases are surging in places like india he went on to talk about the strong recovery they're seeing in other places like the united states and pointed out the return of other travel segments will
further boost it's rebound, calling out urban and cross-border travel. investors in the q&a section are curious about supply especially as competitors like expediaia spend big to win on their platform air bnb says the total act of listings, they were flat quarter over quarter and working on getting the numbers up by making it easier to on board hosts and give them better tools and services, will it be enough for a hot back summer? i will ask that and many more questions when i speak to chesky fresh off the call in one hour back to you. >> all right let's trade, air bnb seymour i know you like it and wish you had the ability to buy it but beat out by petra so where do you stand on air bnb here? >> i like it down 40% from where it was out of that ipo there was still
froth to burn off but we have a case where gross bookings are up, margins up 52%, guided to adjusted ebitda what adjusted ebitda means, positive some time in 2021. very bullish for a company that's been burning cash for a long time. not terribly bullish on the first-quarter outlook. we'll wait and see i think you've taken a lot of the froth out of the stock and end of the day they're a big winner coming out of this and i think they've right-sized a lot of the op space, they cut cost and coming out of this leaner. that's what you want to see. >> do you buy, guy, it's a winner in the pandemic and a winner out of the pandemic as well as people go travel do you think they will reach out for air bnb in paris opposed to staying in a hotel? as one example. >> i'm not sure -- you know, i'm sophisticated enough to go to paris, but maybe yonkers. >> paris, texas, wherever you want. >> it's interesting when this
stock went public i said something quasi-negative about the name and deidre tell me in a intelligent way and i'm a believer in terms of the air bnb story. tim's right, it's traded really poorly but also held a recent low. we round trip the entire move, it seems like. this quarter i thought was really encouraging i'm with tim, you can own it here. >> air bnb up a percent after hours. earnings alert on coinbase let's get to kate rooney with details. >> coinbase crypto exchange reporting revenue tripling in the first quarter and says the current quarter is shaping up to meet or exceed q1 results. 94% of coinbase's net revenue did still come from transaction fees smaller category subscription services saw a 700% jump from the year earlier, same quarter a
year ago coinbase now has 56 million verified users the conference call is under way now, it started with q&a from customers, the first question no surprise here, was about doge coin, armstrong plans to offer dogecoin trading between six to eight weeks. they plan to move faster when adding new assets, so a lot of speed and focus from brian armstrong and cfo talking about moving faster in general and talking about trading volume getting boost in the bull market and recent price cycle, highlighting the risk and volatility don't miss coinbase cfo sitting with jim cramer tonight on "mad money." >> is that your dog, kate. >> we have our own doge here. >> is this the first time they said they're adding doge >> it is, yeah >> it is. >> so this had been a big --
within the dogecoin a lot of people look to coinbase as sort of a catalyst for the price. it doesn't seem to be moving much after-hours. >> interesting. >> until now they haven't mentioned adding dogecoin. >> thank you interesting the coinbase effect isn't taking effect in this case as we've seen with many other to be added to the platform that usually is a catalyst. aside from that what did i maybe of the coinbase quarter. >> it's a good point, the day when listing when they went public a month ago they have tremendous flexability to add more crypto assets on there and they're trading on other plat formalities that their 56 million users are one, the memes are really good, the doge mean was good for a bit, add it and people will trade it, like playing a game on the atari, right, guy adami it was a great quarter for all intents and purposes, they've
already told us their numbers are dependent on transaction fees end of the day you tell me what's going to happen to bitcoin and to ethereum over the next month or two, we see them having a tough time over the last 24 hours or so. i don't think you will buy or sell the stock based on what the two largest crypto assets are doing over a short period of time i do believe buying the stock here in 2021 will be like buying schwab at some point in the 80's something like that. to me i don't know what the price is i do think it's something you want to buy on a pull back though. >> james you have a more diversified way of playing crypto. >> absolutely. you mentioned atari, when we were teens we played video games, teens today,k.the economyo system is expanding we saw at the peak of mania,
catastrophic losses, it's important to be smart about crypto, i like b -- an etf that doesn't just invest in coins but in businesses in fact coinbase is 11% -- one of the top ten holdings, the top holding is 11% index approach is smart to get diversification. of course there's overlap in holdings the space isn't huge in terms of big names. we saw headline today with potential investors potential investigation on binance. there's a lot of risk in this market q is a way to derisk with someone smart at the wheel to manage the crypto space. i love coinbase, the first i got on as a standard, to tim's point, this is going to be around a long time but you want to own it intelligently and want to have somebody who knows what they're doing so i like an index approach. >> all right coming up. we're trading the turn around
from stock's big sell off yesterday, we'll break it down we're movements away from a first on cnbc interview with disney ceo bob chapek, get his reaction on the first quarter and big miss on disney subscribers. don't go anywhere. "fast money" back after this but this is worth. and that - that's actually worth more than you think. don't open that. wealth is important, and we can help you build it. but it's what you do with it, that makes life worth living. principal. for all it's worth. that building you're trying to buy, you should ten-x it. ten-x is the world's largest online commercial real estate exchange. and it's fast. if i could, i'd ten-x everything. like our lunch. (laughs) amazing! see it. want it. ten-x it.
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all backed by a dedicated team 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. welcome back to "fast money", stocks taking a rebound with dow jump 1.3% since late march, but the gains were not enough, with inflation still a concern, do you believe inflation was a big issue yesterday and not today when the cdc also relaxes masking guidelines which would seem to me, tim, to lead to an economy
that could reopen much faster and markets don't care about that today. >> they didn't care about ppi number that came in two times as hot up six-tenth after one percent last month, where furnitures and material prices, steel prices up 18%. yet bond yields, you saw the ten-year rally, 0.4% you had relief in terms of inflation, go figure what you didn't see, despite the vix fell 15, 16%, pressure was on high-multiple stocks, look at square, tesla, palantir, names that are under pressure because of the multiples and you saw gold rally which to me makes sense we've been waiting for gold to reaccelerate after the 10% rally. so, yeah i think certainly the pressure we've seen all week is alive and well and ppi
reinforces it doesn't change over night we saw second-derivative finished goods higher that doesn't unwind quickly. >> guy, yesterday your chirp to watch was amazon and amazon today under-performed technology. >> at one point today amazon was negative the nasdaq was negative. i would submit, but for that cdc headline, the nasdaq would have been down significantly more i think that bailed out the entire market today. it's not coincidental that the market basically took off from the time of that release so no i don't believe it i believe in what kevin believes in the movie "bull durham" and i want to say you let dan slide by with that obtuse thing, thinking of the great "shawshank redemption" and thinking of andy when he said obtuse he was thrown in solitary confinement you should have got right in his grill with that thing.
>> if i had known i would have got right in his grill but i didn't and i don't james your take on market action. >> 2% of selling across the board is rare, what that happens there has to be some recovery. i think we're in recovery today and will continue on the down side. >> all right don't go anywhere, up next, our can't-miss interview with disney ceo bob chapek with his -- is 's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. voya. be confident to and through retirement.
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welcome back to "fast money", disney shares down 3.5% on the back of earnings. the company's conference call just ended let's get a first on cnbc, interview with disney ceo bob chapek julia? >> melissa, thanks so much and bob chapek thanks so much for joining us today i'm gonna jump right in because i know we're tight on time on the heels of your earnings the stock is dropping about concerns about disney plus, subscribers not growing as fast as anticipated what are the trends at the end of the quarter and current
quarter and how's it impact your outlook for disney plus? >> well our outlook continues to be 230 to 260 million households by the end of '24. consistent with the guidance we gave last december we added 30 million new households to disney plus just in the first six months of the year so we're extremely bullish, in fact, this quarter's numbers were exactly as we projected internally so no disappointment here. if you want to look at the actual rate of net adds, we've added more in the last month than in the prior two months, in terms of households. so we see our net increases increasing we hit the number we project and we're looking towards a nice, long run here all the way to 2024 to hit the same numbers we projected back in december >> now looking, bob, at espn plus, you just announced two new
sports rights deals in extension of mlb rights through 2028 how important to have those streaming rights on espn plus and are you concerned that might canableize your core pay tv business >> well, we've insisted in every day that we've done in quite a few in last few months, our ability to pivot to espn plus when we see fit and it's extremely important to us because we know consumers are evolving and changing and that consumer is going to drive the rate of that evolution and we want to be on the front end of that wave, actually a little bit ahead of the consumer so if there's some canalablization effect that's driven by consumer demand and disney wants to not only anticipate that but be in front of that like we've done with our direct to consumer platforms on the entertainment side, if we
need to lead that, we'll lead that >> now shifting gears over to the parks. there was big news today from the cdc on loosening mask rules. what does that mean for your parks? how will it change your restrictions, your rules about masks, and how much people want to come to the parks? >> well, first of all, there's going to be a lot more comfortable people this summer in orlando you can only imagine what it would be like in 95 degrees and 95% humidity wearing a mask, so we're thrilled to be able to do that i think it speaks to the ability for our guests now to come in more significant way to our parks. right now as we speak we're already increasing the capacities to our parks given the guidance we've gotten. and i think we've seen no shortage in that whatsoever in terms of the pent-up demand. people have really missed our parks, they missed the magic, and they really crave that disney park experience and so
we'll supply that to them. in relatively short order you will see our attendance go up significantly. and you know, 80% of the cast members that we've called back that we unfortunately had to furlough or lay off are on their way back and have indicated, not only a willingness, but a zealotry in terms of coming back and making that magic for our guests. >> and bob, based on the bo bookings for the all-important summer season, based on spending that people are doing at the parks right now, what's your outlook when the parks will get back to pre-pandemic revenue levels >> well, we're not going to comment on either revenue or operating because we don't give that type of guidance, but i will say our demand for example at walt disney world is already back to 2019 levels in terms of forward-bookings so again, we see that confidence that we've been able to instill in our guests that we can operate our parks in a
responsible way during this pandemic plus the affinity for the content and all of the experiences we give them, and the magic that we create, that's all going to pay big definitely debds -- big dividends for us and shareholders going forward because they have confidence in disney and they can't wait. >> i want to get your thoughts on the theatrical business and how it intersects with disney plus you announced you will give a exclusive 45-day theatrical video opening in august, another in september, what's that tell us how you think about taking movies simultaneously to theaters and disney plus and exclusively to theaters what's the future look like for disney fans. >> right now the 0 90% of theaters in the market are open so there's plenty of opportunities for consumers right now to go see movies we've been very encouraged by
recent polling in terms of people's willingness to come back to theaters right now they're a little hesitant but we think that will change significantly in the next few months and while we've got this ability to hedge with our disney premier access strategy because over the next month or two we know that while there will be growth and willingness to go it may not be to the extent ha we want to put all of our eggs in the theatrical exhibition basket but we hope by the end of the summer more and more consumers will feel free particularly with the cdc guidelines today about relieving the constraint on masks, that that will give us the ability then to go ahead and return to a shortened window but at least an exclusive window where we can continue to build those disney franchises the way we have in the past and to continue to fuel the growth not only for theatrical exhibition business but most importantly to our disney plus business. >> most importantly to the
disney plus business i will remember that you said that, bob. fascinating time of transition for the theme parks as well as the theatrical movie business. bob chapek, i hope you will come back soon. really appreciate it >> thank you very much >> melissa, back over to you. >> all right, julia, thank you, julia boorstin with bob chapek, the stock is down 3.8% on the back of earnings tim, a lot came out of that interview, what stood out to me is disney was already revisiting capacity limits given the guidance given by the cdc today, which implies to me there could be some upside that analysts may have already factored into future quarters. >> i think that's right. i just -- i'm not getting too caught up in additional costs from the last quarter or what capacity they're at or will be in the next couple months because that's not the story here the story is, first of all, when she got into issues around
linear tv is the key, i think if becomes more promotional about driving streaming revenue and theatrical is interesting because people like to go to the movie theater. for disney it creates a impact a moment, a chance for those films to take part in the culture around them. i think it's good news for disney further establishes them yes they have pvod, they will use it again i think they're a victim of their own success the numbers will be choppy on the sub s. the rpu should be disappointing if people really want to see how profitable they will be. more importantly, disney's model long-term with the content and with their platform there's nothing here that should disappoint. >> the stock is just about at after-hours lows down 4% at this point, dan, the ending part of the interview julia under scored when he said most importantly, disney plus, that was a real
take away as well. >> no doubt. she's filed that one away. it's interesting, mel, when i look at the chart in this stock going back to early november, i look at december, there were two big gaps, both of those gaps were really about vaccines, right, and the roll out. so we can talk all we want about digital transformation and potential canablization of network business and all that stuff but this stock really got going late last year when the path became clear about when they could open the parks and the flywheel, open cinemas, that kind of thing. so to me i'm with tim, it's likely it will come in, i don't think people will poke hole s about valuations because the comp is like apples to oranges here i think james made a really good point too. at some point at a price maybe close to 160 then it is that stalworthy-sort of dow stock that people will buy at that point. >> yeah, guy, rich greenfield is
a fierce twitterer and he did tweet the question he would ask bob chapek, why not spin off espn and abc to focus on the streaming side of the business you wonder if that going through the minds of disney management, if that is at some point something they will revisit. >> yeah, i will give you two words for that for the answer, sports gambling. espn was dead in the water i remember the day, sports gambling was legalized in new jersey and disney stock has been off to the races ever since. that's the answer to that. first of all it's great 80% of the people that were furloughed are going back to get their job which is wonderful the other thing, we understand to a certain point discipline plus is a bit of a loss leader, we think it adds to the flywheel tim and dan spoke about. it all makes sense not saying it doesn't.
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. welcome back to "fast money. check out the q's bouncing back after the huge wash out yesterday. not all good news for tech, ark tony zhang what did you see. >> as you said it's been a tough time for ark investors down 20% in three years, during in three weeks during the sell off seeing 4 times the average daily traded volume just today and perhaps will see a bounce next week. we saw unusual 4,000 contracts of a call spread risk reversal a common strategy that we see but what's uncommon this is expiring next friday, may 21, the 85,
102, 109 reversal. so the trader helped finance the call spread this is a trade that's going to risk shy of $600,000 if ark is between $85 and $102 but pays a potential award of $2.2 million if ark rebounds and exceeds 109 dollars by next friday fairly interesting to play with 4 to 1 risk ratio of a short-term bet that ark will take a nice bounce over the next week. >> i will have to ask dan nathan about this risk reversal do you think it works out in this short time frame >> it's a good spot. i think the worst-case scenario for the trader is the etf is are bebelow 85, you lieu lose the premium yum and then lose below
85 you may see some of the holdings and see that tesla, largest holding at over 10% just broke the one-year uptrend from march 2020 lows, below 200 day moving average for the first time there's a ton of stocks in this etf that look god-awful. it went from new innovation to change the world, to the island of misfit toys the stocks just got overvalued and now there's a vehicle, daily redemptions with very volatility and liquid stocks this is big end of the pool stuff if you share puts like this, even short-dated. >> yeah, james i'm guessing this is not an etf you would recommend at all >> i think what's missing with ark is down-side protection. we have so many innovations in technology, there's invasions in finance as wel there's a lot of innovation in
finance as well. there was down side etf it would be perfect to own but in a single week $4 million in redemption will wraek -- this is a great basket of holdings we're in late cycle and ton of money will come out of those holdings and out of those etf. i would like to see risk hedging in this etf. >> tony, thank you see you tomorrow night for a full half hour of "options action", 5:30 p. etem.asrn time. up next, we got your final trade. when traders tell us how to make thinkorswim even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds.
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every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. final trade time, dan, what do you say >> yeah, door dash reported good results up 8%. keep your eye on this. >> ceo's on mad, by the way. tim? >> another high multiple stock has been published by draftkings finding support, talking about sports betting what it means for espn how about draftkings. >> james mcdonald.
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