tv Fast Money CNBC September 16, 2021 6:00pm-7:00pm EDT
hey there, "mad money" fans. i'm melissa lee. jim is off, but you're in luck we have a bonus hour of "fast money" coming your way tweet us at "fast money. we'll try to answer your live on the air. here to help tackle your burning questions. guy adami, jeff mills, and mike khouw. before we dive into those questions, let's find out what you guys out there have been buying and selling christina is tracking the action on wall street bets. christina. >> well, the number one most talked about stock right now on wall street bets is iron net
cybersecurity. this is a company only recently public after the spac merger last month it was founded by a former director of national security or the nsa, and shares closed 28% higher today but over 90% of the spac shareholders redeemed their initial investment, and the short interest is rohuge it's almost 50% of the flow. others, we have to talk about the others in the reddit realm the metals company, real estate tech start-up offer pad solutions closed 35, look at that 58% higher right there so could be because jpmorgan is down with the opad offering them a new credit line. a reference there for those that know, and then you got the regulars like game sstop, palantir, getting mentions as well as amc, clover, and dutch brothers ticker, bros the coffee company only went public yesterday but has over 450 locations across the united
states, and word on the street is people like working there turnover rate is 40% versus over 100% average for fast food and coffee chains. so definitely some big jumps today. there's no telling what a group of mobilized retail traders can do >> that is for sure. christina, thank you let's dig deeper into one of the names with our first question. and here it is >> my name is cordell, calling out of ohio. i want to thank you for the advice you have given over the last month, helping me get in such positions such as disney, and today, the stock i'm calling in on about is the position i currently hold it's a cloud computing stock also cybersecurity that recently ipo'd last year. stock is palantir. i was wondering should i buy more shares, just hold the position, or should i sell currently? thank you. >> great question from cordell
guy adami, about nine months ago, palantir was the p in your hope trade don't know if you still stand by that >> like an elephant you are, you remember yes, palantir was the p, and it remains. listen, theiest level we have seen in the stock since february, i think it closed north of $28 i read something where they call it the single best data analytics play out there i happen to agree with that. people say valuation is expensive and they're too levered to the government, which i also agree, but that'll have downstream offerings which will help margins which by the way, were great last quarter. i think palantir will continue to go higher i can't tell you if you should add more, but i don't think you should sell. thank you for watching and thanks for the question. >> mike, what say you? >> yeah, i mean, guy just hit on a couple key points. it is true they have a little more exposure to government, but they are within the segment probably well positioned to have
sort of above segment average. market share growth, so i think that's definitely a positive a lot of people are saying basically their product is a better one when you take a look, for example, at the visualization that they have around their product they have unfortunately with the government a slightly longer cycle, but that may be it presents a more stable customer base the valuation is hard for me to get behind, but it doesn't look like the stock is a great risk so you can hold that position. >> in a world in which high valuation stocks may sell off, does palantir hold up? >> i don't know that it holds up in the near term, but i don't know this is a stock you should be playing for the near term it's growth over multiple years. you're going to hear criticism about share issuance, about insiders not buying, insider selling. i don't know that that matters in the long term, the criticism is valuation the stock would probably have to compound at 20% revenue growth
over the next couple decades to get to a typical sass price to sales multiple, but i think the bull case is intact. you're talking about a company with current revenue growth of 50%. they're in an exploding industry, and i think their foundry business is just starting to accelerate, so if you see momentum there, i think they could hit those growth rates to make the valuation worthwhile over the long term. >> let's get to our next question >> hey, this is matt coming to you from boston, massachusetts and my question today is about verizon. it's down about 10% year over year and its pe is around 10 i'm wondering if it represents a good value opportunity at this stage where the yield is around 4.75, and if it keeps going lower, for the rest of september, is this a good entry point or something to stay away from >> mike, is this a value stock >> yeah, i mean, it is a value stock. it could also potentially be what we call a value trap.
this is a company that has a great deal of debt, obviously. they have some legacy businesses that continue to struggle, but they represent a very decreasing portion of their overall revenues, i'm talking about wire line i mean, the real issue for them lately has been the fact that they are post paid net ads have trailed at&t, have trailed t-mobile, and that obviously is a problem. the good news is we have the 5g rollout, they are probably the best brand in the business i think the dividend actually does create some buying support for the stock. so actually, if it comes in a little more, i wouldn't expect it to take off because the problems are going to continue to persist, but 5g will provide a tailwind, and the dividend is going to create some level of support for people who are seeking yield. >> value trader, value trap? >> i think it depends why you're buying it. mike sort of said what i was going to say in a different way. it's interesting here if you're playing it for dividend and for yield. i think 54 is an interesting
price. it's been supported for about three years. second quarter results were solid. guidance was good, so i don't anticipate any violent moves to the downside in the stock, but like mike said, i'm not convinced it's going to be a home run, so price appreciate plus dividend, but for a stable dividend play, i do think it's a pretty good entry point. >> guy >> trap. remember, i was a kid, we used to play this game, mouse trap. it was a board gam mike khouw might remember it great game that's what i think this is. i mean, jeff just said it, it's been basically trending sideways for three years. think about the market we have been in over that time, and oh, by the way, take a look at what t-mobile has been able to do over that same period of time. i don't think you're going to get obliterated being in this name i happen to think there are better places to be, and oh, by the way, good luck up there in fenway this week >> oh, you're talking to matt. okay, yes. got it >> well, that's who asked the
question that's who asked i'm not talking to you i'm talking to the viewers >> yes, matt from boston okay, from value to growth our next viewer wants to know about big tech am amazon >> this is justin from portland, maine. fast is my favorite show on tv thank you guys for having me it seems like every day another analyst initiates amazon as a buy or hikes its price target. the average of which is currently $4300 roughly. what do you think amazon has to do to convince investors that it's worthy of these lofty price targets? >> a split >> thank you >> jeff, how do you tackle this one for justin in portland >> so to answer the specific question, i think it's a time issue right here you know, they have been underperforming for a long time, but i do think its p's part of i quality growth trade that probably does okay in this
market and does well over the long term. what's been going on lately, tough comparables from last year, that's clear, but they have also been investing really heavily in physical infrastructure so when you think about their last investment cycle five years ago, that was aws, a much quicker return investors could see the benefit of that investment much more readily. i think now it's just going to take time for investors to be convinced that what they're doing is the right thing, but i think giving amazon the benefit of the doubt at this point as a capital allocator probably makes sense given their track record, so i think you just stay patient with the stock, but there's definitely room here if you hold it over the long term. >> i think there are also two questions in justin's question and that is what it should do to grow into a valuation, and a second question on stock splits because these are two separate issues, right, guy >> you know my view on stock splits, but it doesn't matter my view if they were to announce one, the stock would go higher, whether it's justified or not, just the way the world works
right now, number one. number two, to answer his question, what do they need to do, i'll give you two answers in my opinion they need to show margin improvement which has sort of big stagnating the last couple quarters and they also see a reacceleration of growth in cloud, which i think they can do the stock has been basically sideways in a pretty narrow range, $3,000 to $3400-ish since last july. i think it breaks out to the upside do those two things and you will have a stock north of $4,000 >> we have a news alert on a possible big deal brewing. let's get back to christina. >> this could be a very big deal if it goes through invesco looking to merge with state street this is according to the "wall street journal." just hitting the wires right now. state street is a massive company, it's been around since 1792 it has about $4 trillion in assets it's the banks for the bankers the deal, though, we don't have the details. it's according to "wall street
journal," it's not imminent, so it may not necessarily go through, but we have reached out to both companies and we're seeing share price after trading for state street climbing ever so slightly, up 1% so again, this could poteningally be a very big deal, possible merger between invesco and state street >> thank you mike, what do you make, invesco is a big etf business. state street, one of the largest custody banks on the street. >> yeah, obviously,those two businesses sort of go hand in hand r so just for people who aren't really familiar with the mechanics of all this, you have the etf sponsor companies, those are the ones issuing the shares. when you create new funds, the custody banks, banks like bank of new york, mellon, and state street, are the ones that often are going to custody those assets that's going to exclude potential liability issues like derivatives and things like that which they don't typically custody, unlike commercial and
investment banks and so on this is sort of a very stable business, evidenced obviously by state street's length of existence. could it be a big deal i think it is. is it the most exciting part of banking? i don't think it is. >> all right, the stocks are excited by the potential deal news invesco shares are up 4.5% >> coming up, we're drilling down on energy, where our traders stand in the sector and if now is the right ti tmeo buy. don't forget to tweet us at fast money. we'll be right back. ♪ ♪ wealth helps you retire. worth is knowing why. ♪ ♪ principal. for all it's worth.
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they gotten their financing squared away for their driftwood lng exports facility, construction is yet to begin they should be exporting in 2025 i bought when it was less than a dollar, and they went above $4, they had some pullbacks lately, but is now a time to buy more, hold what i have and wait, or sell what i have for a profit? >> all right, thank you, patrick. jeff, this is not a name we typically talk about what's your take >> yeah, not a typical name, but i think for me, i would be taking profits here. i'll start with the chart and i think maybe you can play it for a trade, but more fundamentally, i think i would want to reduce my position here, but the chart looks pretty good. in the near term, it's making higher highs, higher lows. it looks like there's resistance in the upper $6 range, so maybe you get some upside from a
technical perspective, but fundamentally, i think you have seen some of the contracts with the buyers relative to driftwood go from longer term fixed fee to something that's a little more variable so at current lng prices, the profitability looks good, but five years from now, i don't think you really know. you saw them pull that debt offering a couple weeks ago, sort of unclear why in my view in terms of why that happened. i think if you want exposure to the lng space, you actually play in ticker lng cheniere, a company i liked for a long time. it's more stable, still some upside, looks like it's going to break out to new highs i would rather be there. >> guy, what do you tell patrick? >> what's that animal that has a memory like an elephant. it always escapes me >> an elephant >> look at you that's why i ask you the questions. i think it was september 14th the great jim cramer had the ceo
of the company on and he talked about potentially being the largest net gas play in the country. they did do that $25 million share secondary, i hear you, but to answer your question, remember this, it doesn't matter where you're long, it only matters where it's going i think it's going higher because i think nat gas and has been a rocket ship higher can go even more -- even go higher than where we're currently trading. i like this play listen to that ceo interview if you missed it. i think it goes higher from here >> let's get to our next viewer question >> i have a question about exxonmobil natural gas, they're saying it's going to go up i think inflation is going to take off because the government's dumping so much money into the system. and the printing presses are going. so therefore, i think exxonmobil will do quite well what do you think? >> what do you think, mike
>> well, obviously do think there is some potential upward pressure on oil prices and on the product prices, and of course, that can be a bit of a tailwind of course, they also have costs as well. so this is a little bit of a double-edged sword really the issue is whether they can preserve or expand their margins. for exxon, they have several demands, massive cash they have to cover, dividends, share repurchases. these are things the company has done, wants to do, but they don't really have the excess cash flow to do all three of those. i think really comfortably, so i'm not hugely excited about exxon, but i think it's going to track with oil prices and i do think in the near term oil prices are going higher. >> yeah. guy. >> i agree with the oil prices going higher i think jpmorgan the other day took them off their focus list, remained a $65 price target. i think valuation for exxon at least is on the lower end of the scale. you don't have the same leverage as you do in some of these other
companies, but i don't think you're going to get hurt in exxon. with that view with oil going higher, which again, i agree with, i think you want to be in more levered names the oil service names and some of the names like psx that we talk about from time to time i think exxon is fine here, but i think you can get more bang for your buck in some of the other highly levered names >> i think that's probably true, guy. you're going to have exxon trade with the sector. i think if you look at the chart, that's pretty clear i think right now, it might not be a bad place to be in a name that has beta to the sector if you're not looking for something super high octane. it's bumped up against the 200-day moving average as has the entire energy complex. you saw a flush there a couple months ago and now you're starting to see investors come back in the picture. i do think there's support for oil in the $70 range, so that's a support. whether it's just a recovery in global demand generally, whether it's the hurricane refiner outages. i think there's more incremental
draws on inventory, and then opec, it's rising production but maybe not as quickly as some of the more oil bears were anticipating so i think you play the name here i feel generally good about energy spreads continue to tighten, so i like exxon for an energy beta trade. >> all right, up next, game on video game stocks falling over the last few months wrrbs some seeing double digit losses is it meti to buy the dip or sell
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i wonder how the firm's doing without its fearless leader. you sure you want to leave that all behind? yeah. stay restless with the rx. crafted by lexus. experience amazing at your lexus dealer. welcome back to a special edition of "fast money" where traders are answering your burning questions. let's get to our next viewer question on a sector that has been under pressure. >> hi, i'm john from kentucky. the quarantine created a massive increase in the value and interest in old video games. and as a longtime gamer, game
collector, and first time stock buyer, is there a video game stock to buy right now >> before we get to the question to the answer, let's get to frank colin who has new reporting on where analysts see the nebs big opportunity in the space. frank. >> hey, there, melissa chinese video game maker billy billy down 13% over the last week as chinese regulators have cr cracked down on the entire industry pushing for restrictions on use by minors and even delaying the approval of new games. tencent down almost 8% roblox down 6% on concern over what this could mean for the $150 billion global gaming market but web bush is saying the biggest u.s. developers, that's activision, ea, the maker of the madden franchise, and take2, the maker of grand theft auto, they have limited exposure to china michael pacter says investors
should buy the dip on the u.s. stocks that he forecasts will see double-digit revenue growth for at least the next decade as people game later into life and get more diz posable income. >> 40-year-olds play game, 6-year-olds play games the demographic is playing longer and longer. interestingly as they age, they have more disposable income. >> and here in the u.s., the average age of a gamer is 35 to 44 years old that's the range web bush says streaming games is the next big thing and those mega cap tech companies, talking amazon, google, they're all working on projects in that area melissa, back to you >> 35 to 44. i did not know that. that actually shocks me, frank thank you. guy, i feel like you have a comment about this in addition to an answer to the question >> well, i mean, listen, i know that we used to enjoy gaming
before the show when we were at the nasdaq together. some your skills, people would be shocked to see your abilities in some of these games number two, activision is what sticks out to me they just hired, i don't know what this means but interesting, julie hodges came from walt disney to be their chief people officer. clearly, something is going on here stock sold from $105 down to the $76 level. if you go back and look, this $75, $76 level is where we exploded to the upside late last year i think valuation is reasonable. and quite frankly, i think the risk/reward sets up as well as it has in a while. i get the china thing, they're limiting hours people are playing vid quo games. i think it's in the stock ati. >> gaming, sports, and music trivia all right in my alley jeff, where do you stand on gaming >> i talked about this in the past, but i'm a big believer in
these virtual universes, the metaverse. it's going to be explosive going forward. i talked about my daughter before every new friend she has, what's your user name in roblox, do you play this game, that game? i understand the problems with china, but the amount of money spent in those worlds is unbelievable, and of the three major players, take-two is most levered to the open play metaverse with grand theft oauto red dead the valuation has come down from 37 times to 27 times so i would want to be in that stock going forward. >> mike. >> activision, which is one of the names we just talked about, that thing is trading probably 19 times full year eps for next year these things are growing very nicely they have enviable margins electronic arts, of course, with their madden franchise, this is one of those things i don't really understand what makes a game popular or what makes it
fall out of favor, so atvi, i think they had candy crush i think my wife played candy crush for about three days what goes on with those games and why they fall out of favor i don't know, but i can tell you the game makers that follow along with professional sports, that tie-in to me is one that actually has some staying power, and it's trading at a very similar multiple, also about 19 times eps for full year 2022, so i think electronic arts is a good supplement to activision here >> after the break, going nuclear. looks like wall street bets is getting into a surprising space, and it's got the sector booming. we'll break down the details nextand n't , doforget to tweet us your ques questions @cnbcfastmoney this spegz edition of "fast money" will be right back.
welcome back to the special edition of "fast money." good-bye, amc and gamestop, hello, uranium with prices at multi-year highs, their stocks are the new hot ticket on wall street bets that brings us to our neck question >> hi, my name is terrance in san francisco, california. and i got a question what do you feel about the uranium bull run that's going on right now? and do you think uranium stocks are a good buy and a hold for the long term? >> so what's got uranium going nuclear? here to break it down is rohahn ready, the main analyst of the globalx ticker ura great to have you with us. prices are actually at nine-year highs. so what's fueling this >> it was all set up to start
from the initial output of 2020. what we saw was initially, the market was very soft to begin with it was very oversupplied when covid hit, the market became very tight right away so we are seeing right now a lot of physical buyers stepping into the stock market, which is sort of a new phenomenon, and we are seeing recontracting from a lot of utility companies that use nuclear for power plants we're seeing a combination of technical buying and also buying from financial buyers as well who see uranium as a very undervalued asset class. just for a note on our etf, ura, we have seen over $400 million traded this week on that etf, for an etf with $1.1 billion in assets, that's a huge amount of volume >> camico, 23% of the etf. what other sorts of names are there in this etf, and how should investors thing about the array of companies in the
uranium space? >> uranium is a very top heavy industry in terms of the producers. you have camico, tamprawn, those are two of the largest producers in the world, and so typically when those companies start to halt production or they change their capital allocation core production, that drives a lot of the supply on the uranium side because the companies have been very conducive in holding back supply of uranium, in fact, they cut back on production growth for the next two years, and we are seeing that that's also been driving some of the gains. so right now, we're seeing a combination of both higher demand in the market and then also really cut back supply. >> jeff. >> yeah, quick question for you. so we mentioned camico, it's interesting in the sense the price is back to pre-fukushima around that 2011 area, but back
then, it was trading at 25 times, today, something like 700 times. i know maybe that calculus changes given the price of uranium, but how do you start to think about the valuations relative to the move in a stock like that? >> sure, there's been a lot of technical buying as we have seen with reddit, that we also have seen a couple funds, hedge funds step into the space that have brought some financial assets into it that weren't there before, but we're seeing right now if you look out decades or two, we're seeing a lot of companies right now think about using nuclear that have not before so for example, uranium, it doesn't use any greenhouse gas emissions or emit any. what we're seeing is a lot of companies that are looking to reduce their fossil fuel imprints as part of the 2050 paris climate accord we saw, we're seeing a lot of companies right now and countries and governments start to think about
reducing fossil fuel footprints and that's also driving future growth plans for some of these companies. so even though the valuations look pretty frothy today, we expect they'll build into their valuations >> does uranium typically fall into esg investing, into that purview, rohan >> it was never thought of that way, but it's actually building into a nice story for esg, because after fukushima, people thought this can't really fall into the esg category. a lot of countries will move away from that because of the nuclear waste aspect, but we're seeing because it's one of the few power sources that does not emit fossil fuels, in terms of compared to the greenhouse gases, relative to solar and wind, it's actually pretty attractive and also on a levelized cost basis, it does emit less greenhouse gas emissions from that standpoint it is a pretty clear esg story right now, considering what we're seeing both politically and also from esg investors who
are looking to divest from oil and gas. >> thanks for your time. rohan reddy. guy, back to terrance's question, which is how do you feel about uranium stocks? what do you tell him >> a great question. it's funny, well not funny, but last week, we do a meeting every day, and karen actually mentioned uranium. i know you remember that, and karen has been on top of this for a while. this one, if you have a five-year view, this is potentially one of the biggest places you can be in terms of upside gains i will say, jeff sort of alluded to this, you go back and look at camico ccj chart, we topped out pretty much where we topped out in 2014. although this story is intact, i think you're going to do a back and fill i wouldn't be surprised to see it trade down to the low 20s >> theater stocks get a big boost. i caught up with amc ceo adam
aaron, and we want to hear from you. tweet us, and we might just answer your questions on the air. this special edition of "fast money" will be right back. i wonder how the firm's doing without its fearless leader. you sure you want to leave that all behind? yeah. stay restless with the rx. crafted by lexus. experience amazing at your lexus dealer.
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i wonder how the firm's doing without its fearless leader. you sure you want to leave that all behind? yeah. stay restless with the rx. crafted by lexus. experience amazing at your lexus dealer. welcome back to this special edition "fast money" edition we're continuing to take your questions. let's get to the next one. >> hello, "fast money" team. i'm brian from upstate new york. just want to get y'all's take on a stock, amc i know a lot of people are very bullish on the stock also it continues to be heavily shorted. the hedge funds are losing a lot of money, so want to get your opinion on that. do you think they'll continue to lose a lot of money?
a lot of them have said that they think it's going to go back under $10 per share, although it continues to rise to near $50 per share. so i want to get your outlook on that also, in regards to the ceo, adam aaron, he continues to make great moves for the company in trying to rebound from the pandemic implementing cryptocurrencies as the latest news. also, a lot of great movies coming out so just want to get your take, you know, is a squeeze inevitable at this point is it something to put my money in or people -- you know, should other people put their money in, in the long term, short term just what's y'all's opinion. thank you for your time. >> that's aer rallying cry for lot of people in amc, the mother of all short squeezes. they're waiting for the short squeeze to happen. what's your take on the stock in general? the story has changed considerably in the past year.
>> it has changed quite considerably first of all, you know, i think the company is really doing the best it can with the hand it's been dealt and you know, obviously, floating secondaries on the stock has been elevated. that's a big positive. the problem i have with any narrative that talks about a return to profitability on a slate of good movies is that this was not a tremendously successful company before they basically saw a big uptick in their debt level even before all of this. so that obviously continues to be a problem the valuation here is very hard to get one's arms around if the movie business is what you're going after. now, of course, you know, he is basically latching on to a lot of key concepts, so i think that's obviously a positive, but this isn't a stock that i would be reaching out for here >> maybe we're thinking too narrowly about movies. it is called amc entertainment, and he has said he has reached out to or that amc has reached
out to gamestop about potential partnerships there is some movement to show live sports, for instance. jeff, could the company actually maneuver into other streams of revenue that could help it, you know, grow into the valuation? >> i'm skeptical and first of all, i don't have a position in amc. i don't have an interest in it going up or down this is going to come off as grouchy, but it feels like pandering to that community. it's reaching out to gamestop. a correction there, it's cryptocurrency, nfts, all these things that are going to galvanize the momentum that pushes the stock higher. i don't know if it will hold it there or drive it higher over the long term. you're talking about a stock that had a market cap under $1 billion in 2019. now $20 billion stock, and sales probably aren't going to return to 2019 levels until 2024. you know, i think some of the
news with disney moving back to theaters for the second half of 2021, that's good news at the margin, but to mike's point, paying nine times sales for a stock that traded an average .6 times sales before all of this happened, i just can't justify it i don't know what has changed to justify that price over the long term so i have said it before, i'll say it again know the game you're playing i think it's musical chairs. so just be careful >> i actually spoke with the company's ceo, adam aaron, last week about potential new revenue streams. his plans for the future take a listen to what he told me >> there are some ideas that have surfaced. which i think could create real value for amc. and -- and you know, one of the ones i particularly love, which i haven't commented on before publicly, which i haven't commented on before publicly, is
to make commemorative movie tickets as an nft. and you know, that's a really smart idea that's a really smart idea because we probably pay 50 to 100 big movies a year. could we make 50 to 100 nft commemorative tickets that mean something to people and mean something to us? that could drive our business going forward? i think the answer is yes. >> nfts, now accepting more than just bitcoin, but also ethereum, lightcoin, showing sports, video game tie-ups he's open minded about different areas that the business could take >> no, i respect that, and if you want to be bullish, that's the reason to be bullish, quite frankly. the open mindedness. let me say quickly once again, and we have discussed this, the short thesis, you know, the short squeeze thesis to me, it doesn't really make a lot of sense. this is a stock that's average
trading about 105 million shares a day. if you're short the stock, you have ample opportunities not only on a dilly basis but almost on a minute by minute basis to cover your short, number one, and the whole hedge funds blowing up in amc, i'm not sure that's the case. the short squeeze thesis to me is not so i think it is a failing business i think, listen, you go back to 2016, when the stock was sort of at a zenith at the time, business couldn't be better, and they still couldn't figure out how to get things going. so again, i don't love the business model i love the fact that he's starting to skate where the puck might be going but that whole short squeeze thing to me is just -- i don't want to say folly because i don't want to offend anybody, but at 6:45 p.m., folly. >> we'll have much more of that interview in an upcoming documentary on amc
we'll have details on the documentary including where you can see it a little later on >> up next, we're answering more of your questions and making some quick trades. we'll break down the most popular names you have been asking about a special edition of "fast money" will be right back. for mike's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime. wealth is watching your business grow. worth is watching your employees grow with it. principal. for all it's worth. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap!
let's keep it going. here's our next question >> hi, my name is michael from tennessee. my question is in regards to amd and the current supply chain issues with this stock being up 26% in the past six months, do you see current catalysts such as the closing year end already priced in thank you. >> jeff, what do you tell michael about amd? >> it's a stock we own and we're going to continue to hold it for the long term. i think the deal may be priced in at this point you're talking about amd trading at 37 times forward right now, so maybe not a perfect comparison, but there's definitely a premium in the stock. i still think looking out past a couple quarters, there are catalysts. they have made an entrance into the handheld gaming console market that could be an area of glorow. continued growth in their data center business, i think that's important for the company. so it's a good long-term
investment, but the zi links deal maybe not >> guy, what do you think of amd? >> we love it on the show, we will continue to love it i think she's one of the best ceos in the country, and each quarter, they seem to build on the prior one. what you have seen over the last four or five quarters is a little bit of a sell-off post earnings those sell-offs have been bought you can continue to old this i get it in valuation, they're rich compared to where they have been, but i think they deserve that valuation >> mike, amd, another chip name, or none of the above >> i think amd is one that you want to own, certainly over intel. as jeff pointed out, they have exposure to the right segments, and those segments are growing, so are they. we're looking at 20% annual eps growth, something along those lines. the valuation is justifiable there. >> let's get to our next viewer question now >> what is your thoughts on
microsoft's outlook in the future when you have competitors like amazon and google >> mike, what do you think back to you. >> well, they are competing in some areas but they're not competing in others. and all of the areas are good. so i do happen to like amazon a lot, but i also like microsoft, despite the fact that certainly in the cloud area, they compete, but they're both growing tremendously i would favor both companies >> jeff. >> yeah, agreed. i think it's part of the growth at a reasonable price tech trade. i think microsoft definitely falls into that bucket they continue to do well you want to be in the quality names. they're returning money to shareholders mike mentioned the cloud business they're competing against aws there, but still growing for microsoft at over 50% year over year so i think there's room for more than one, and microsoft has been extremely capable there. could the stock pull back? absolute re. it's 30% above its 200-day
moving average it's not particularly cheap, but the fundamentals are really strong >> people got all geeked up when they announced that $60 billion buyback, which sounds like a big number, and quite frankly, it is, but when you look at it in terms of market cap, it's not that big of a deal they're probably deserving of the valuation they get this a name we have talked about seemingly for the last year and a half in terms of staying with it i think microsoft, listen can a pullback happen? we have seen it happen you buy any pullback this is best in class. this is probably in my opinion the most important company in the country right now, is microsoft. not apple, not amazon, microsoft. >> well, we're almost out of time, before we go, we want to get to some of the tickers that you guys out there want answers on we have a lot of questions about these. first one, ford. jeff mills, what do you say? >> yeah, ford, i like it we talked about evs earlier. they have a lot of exposure
there. pulled back, holding its support. i like owner ford at this price. >> next quick trade here, apple. guy, what do you say about apple? >> listen, everybodyloves it, get it jim says to own it, don't trade it i understand that as well. over the last 3 1/2, 4 years you have seen four 25% to 30% peak to trough declines i think that court ruling is a bigger deal than people are making it out to be, so i think you could see it lower when i say lower, not $115 lower, but you could see $138 lower. >> i think apple is one of these companies that obviously they're firing on all cylinders operationally, but the valuation here, it essentially is the market, but these are the kinds of levels where i would typically turn a better seller on apple just as a trade that i would be a buyer >> let's get to wynn skrx a lot of operators in macao getting hit hard on the china crackdown. what do you think, wynn?
>> i kind of alluded to this at the end of my 5:00 show, but the uncertainty in china, it translates into lower multiples not only for the technology companies but potentially companies like wynn as well. i like penn right now versus a trade. >> guy >> las vegas sands over wynn lvs is trading at levels we saw in march and april of 2020, but clearly, the china headlines which i didn't see coming earlier this week, are still out there. so buyer beware, but lvs for trade for me >> next up, alibaba, mike khouw, we talked about this one a lot >> yeah, obviously, alibaba is facing many of the same headwinds some of the other chinese names are facing the thing is that it's getting down to a cheap enough valuation, and this is a speculative long side bet if you're going to go that way, but i have been dipping my toe in the water myself on the stock even though we're facing all those chinese headwinds. i think this is a halo company for them and the valuation is
tempting me enough to get at least a little bit into it >> guy, what say you on baba >> listen, i thought on august 13th we had that big reversal, i think it was the 13th, $153, traded then higher on the day, and i thought that was the all clear sign, and quite frankly, i think it got close to $180, but here we are again, headline risk i think valuation is compelling, but the headline risk outweighs it it feels like it wants to take another leg lower unfortunately. >> jeff, how about you risk/reward here, what is it >> i still don't think it's great. we have been doing a deep dive into china to figure out where we want to be, but i agree with guy. i think you could have more downside here. if you look at china growth, the overall index, still trading at a forward pe of 31 times, so you're getting lower, but i don't think you're low enough yet to bring me into the trade >> let's round things out tonight with good old mcdonald's mike, what do you say?
>> yeah, i'm not a buyer of mcdonald's and that's despite the fact they have been doing everything right, and that's part of the problem. they did all of the refranchising. they have done a lot of things they said they would do and in many cases ahead of schedule, but i'm not sure what the next thing operationally they can do to propel it higher, and of course, the valuations aren't exactly terribly cheap for it, and i don't see a lot of top line growth. i'm not a buyer. >> mike doesn't like the golden arches how about you, guy >> come on you know -- i mean, stop i mean, i might go there after this show i'm so geeked up about the football game. >> you will not. you will not liar liar pants on fire. if you're wearing pants. i don't know if you're wearing pants. but presbruuming. >> you know that i am, and i do like mcdonald's. mike is 100% right they have pulled just about every lever they can, but they continue to pull rabbits out of
their hat. i would like them to ditch this mcflurry thing >> that's a lot of money to fix those machines >> exactly so ditch the machines. make more cheeseburgers. stock goes to $375 >> throw in some mcnuggets guy, jeff, mike, thank you for being here tonight that does it for us with this specia now there's video of the missing woman, gabby petito, during what cops called a breakdown. i'm shepard smith. this is the news on cnbc. >> we've been fighting all morning. >> body cam footage released by the cops showing gabby petito physically upset and emotional. >> i've been trying to get him to stop talking about this. >> two weeks before her disappearance. >> right now, this is a missing person case. our focus is to find gabby the powerful lawyer at the center of a bizarre murder mystery arrested and in