← CNBC's "Fast Money"
CNBC's "Fast Money"
Alphabet, Intel, And Gilead On The Move After Earnings… And China Hits Back At Trump 4/24/25
00:42:45
Earnings roll in from Alphabet, Intel, Gilead, and more as earnings season rolls on. The Fast Money traders break down the numbers and where they see those stocks heading next. Deepwater Asset’s Gene Munster joins to dig into the big themes around the tech. Plus, China responds to Trump’s latest tariff threats, as contradictory comments come out of both parties. Fast Money Disclaimer
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- [00:00]
Melissa Lee
Hey Fidelity, Can I get a second opinion on stocks in the Fidelity app?
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Tim Seymour
With Fidelity, it's easy to get an outside opinion from independent experts in a single score. And then when you're ready, trade US stocks and ETFs with no commissions. That's right. I am always right. Investing involves risk, including risk of loss.
- [00:20]
Karen Feiderman
Online US equity trades and ETFs and.
- [00:22]
Tim Seymour
Retail fidelity account sell order assessment fee.
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Karen Feiderman
Not included some account types and securities excluded.
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Tim Seymour
Details@fidelity.com commissions Fidelity Brokerage Services, LLC member.
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Karen Feiderman
NYSE SIPC.
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Tim Seymour
Our state has changed a lot in the last 140 years. We know because Multicare has been here guided by a single making our communities healthier. That comes from making courageous decisions, partnering with local communities to grow programs and services, and expanding healthcare access to those who need it most. Together, we're building a healthier future. Learn more@mycare.org live from the Nasdaq markets in the heart of New York City's Times Square. This is fast money. Here's what's on tap tonight, a monster night of earnings from big tech to big pharma and more. We're breaking down the results in all of tonight's reports and what they could mean for the broader market. And tough talk, Chinese officials with some harsh words for President Trump on tariffs and trade, how the White House responded and what it says about the state of negotiations, if there are even negotiations going on. Plus, Hasbro's winning day in the face of tariffs. Pepsi goes flat after its earnings report and the mislabeled R in Karen's acronym gives a boost to the carbs trade. Who knows what the R is really? I'm Melissa Lee comes to you live from CEO B at the nasdaq. On the desk tonight, Tim Seymour, Karen Feiderman, Steve Grasso and Guy Adami. And we start off with Alphabet earnings, the first hyperscaler to report this quarter. Jumping on a top and a bottom line beat. It also upped its dividend, announced a 70 billion share dollar share buyback. The conference call is now underway. Deirdre Bosa has been listening in. She joins us with all the details. Debo hey Mel. So shares moving a little bit higher after we just heard from CFO Nat Ashkenazi. She just gave some color around guidance which was highly anticipated. She said that in cloud they're facing a tight demand supply environment so they could see some variability in cloud revenue growth rate. She also said that given the significant increasement increase in investments in Capex over the last few years, they're going to see higher depreciation. She also said that to expect some headcount Growth in 2025 in key investment areas. Aside from the cloud stuff, none of that is particularly new. So maybe some relief. Shares before she started talking were at around 3%. We're now higher by about 5% overall, though. Melissa broadly some relief for investors as Google's ad revenue came in largely in line with expectations and there was some worry that increased activity on AI chat bots tariffs might impact its core negatively. I want to point out another comment from Chief Business Officer Philip Schindler. On the call. He said that for overviews, overall, this is the AI that they're feeding to search users. He said they continue to see monetization at approximately the same rate, which gives them a strong base shares, though I will note they're only up about 5%, barely denting that 15% loss year to date. And that is because there are still risks on all sides of Alphabet. You've got the two major antitrust lawsuits that go straight to the heart of its ad and AI strategies. Tariffs, monetization of Gemini, competition. No doubt some of these are going to be asked about in the Q and A portion which just kicked off. We will be listening and bring you any news from that portion. Back to you. All right, keep us posted. Debo, thank you. Deirdre Bosa in San Francisco. A few flash reports have crossed into my inbox and they all say better than feared. Better than feared.
- [03:46]
Steve Grasso
Karen a little bit even better than better than fear. I think there was a lot to like. You know, she touched on a lot of it. You know, Top Line was better, I think, teeny, teeny Little Light on YouTube, but really not, not even enough to make a difference at all. Subscriptions a little bit better. That's a nice business. So I like what the commentary that I heard so far about AI, about hopefully being able to monetize that. Remember they did talk about depreciation, so that goes into the gross margin. So that's sort of something to be aware of. Oh no, I liked it. I think it's, it's not trading up as much as one might think because it's a pretty good beat and better than feared. But remember it's $15 off of the bottom. Now granted the bottom was pretty terrible, but so I'm long, I'm feeling a little like an exhale. But we still don't know and we're not going to have any resolution in the near term on what is going to happen to search. Is it going to be Dismantled.
- [04:44]
Tim Seymour
Right.
- [04:45]
Steve Grasso
So that's big.
- [04:46]
Karen Feiderman
I think it's a huge exhale and I think it's a huge exhale for earnings season. And I realize this is one name, but I think it was also on a day when we happened to have heard from Amazon and Nvidia, they reaffirmed that they're not seeing any let up in AI demand. So I mean, you know, this is, this is the story is Capex falling off. What does it mean for the hyperscalers? What does it mean for Nvidia? But, but what we heard here is a story that at least for Google, I think gets you at least comfortable with their core model. Now ultimately the question for Google I still think comes down to search and where people are once again challenging the, the, you know, how relevant, how potentially obsolete it could become in an AI world, etc. Etc. And then you just get to Google in terms of valuation. And I would reiterate, in a world where we're probably by the end of this earnings season, I think, I think, I think the street, I think what we're hearing from investors is that the multiple you want to put on stocks is less than it was three months ago. And when you're talking about Google, which is one of the cheapest companies in the world, certainly relative to its market cap, it's great for Google. And we, we had these conversations also about Waymo, we've had these conversations, we heard from Netflix about how YouTube was really outperforming on some level in terms of engagement. This is really positive stuff for Google.
- [05:59]
Guy Adami
It's also 40. So Karen said it's 15 off the bottom, it's 40 from the top. Why are they buying back stock if they've got so much investment to do?
- [06:08]
Tim Seymour
Because it's down 15%.
- [06:10]
Steve Grasso
They got the cash, so they go back.
- [06:13]
Guy Adami
So antitrust is two years away. They've got a ton of cash. Why not just make. So they think their best investment is to buy their own stock. Isn't that a little.
- [06:24]
Steve Grasso
I think they have enough money to invest in whatever they want to buy. They're doing whiz. That's $34 billion. That still leaves them, but I think about $60 billion, not including the cash they got from this quarter. And so I think they can do it. They can afford to do it all.
- [06:39]
Karen Feiderman
Yeah.
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Guy Adami
And the only negative I would see is that search is coming in. So they used to be between 90 and 95, it's called 93. Now they're around 90. I think people are going to the perplexities people are going elsewhere. They have their own AI but I think it's cutting into them a bit.
- [06:56]
Melissa Lee
At least for this quarter. As Mark Twain once said, the rumors of his death greatly exaggerated. And that's the same thing. You see what I did there?
- [07:04]
Karen Feiderman
You are a philosopher, Diane. It's great. We expect those things.
- [07:07]
Melissa Lee
No, do you come so it's not even. You don't even flinch anymore.
- [07:10]
Steve Grasso
It's lovely.
- [07:10]
Melissa Lee
Thank you, Tim. I appreciate that. And I'll say this, I don't know what this one was but maybe they should hire these gals and guys because their hedging book was up $260 million and the series over 23. I know that's not a big deal, but somebody doing something right on the hedging front. Trade it down. Held the September low like a boss. I think they should be buying back stock because I do think it's cheap and have that kind of confidence. I mean with that low in place, I think the stock goes higher.
- [07:35]
Tim Seymour
They also can't do huge acquisitions anyway. I mean it's all going to be small. Their hands are tied.
- [07:40]
Steve Grasso
Yeah, their hands.
- [07:40]
Tim Seymour
They got to do something with that.
- [07:41]
Guy Adami
Spending Capex like what is there other stuff that you could do under with that though?
- [07:45]
Steve Grasso
They're doing $75 billion ish, give or take of Capex. So I don't know. This is read through for Meta though is very, very good.
- [07:52]
Tim Seymour
Very, very. Yeah, very positive.
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Steve Grasso
Right.
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Tim Seymour
I wonder what they're going to say about China in terms of advertising. I mean everything seems to be good, but going forward, 6% of their advertising revenue is China related. A lot of it Temu and Sheehan. And we know that the de minimis loopholes might be closed and therefore that revenue stream might be shut off.
- [08:11]
Karen Feiderman
Of course and they have every reason to at least communicate that kind of caution in this environment. But again I guess you know that revenue on cloud came in at 28.1% more or less in line. I think that's, that's a huge relief. Again we're talking also about really high margin business that I think in some level for Google, their cloud doesn't get the benefit of the margin uplift that gives to Amazon. And I think that's at some point part of why you want to own Google.
- [08:39]
Tim Seymour
All right, for more on Google, let's bring in Fast Money friend and Deepwater Asset Management managing partner Gene Munster. Jean, great to see you.
- [08:46]
Guy Adami
Hello, Melissa.
- [08:47]
Tim Seymour
Good. Good but not great, you say because growth is slowing.
- [08:51]
Guy Adami
Good but not great. We didn't get any clarity on that critical question that we're all talking about, what's going to happen with search? I just want to put some quick parameters on that. A year ago, GPT, 200 million weekly users, it's probably about 600 million weeklies today. I mean that is off the charts growth. At the same time, if we compare that to what Google said on the call related to monetization of AI overviews, it's basically unchanged over the past few months. And so the users are going up, they're rolling it out to more countries, but in other words, we still haven't learned much about how this whole search question comes out. Besides the other competitors, GPT in particular Grok are getting a ton of traction. Grok, top app in the iOS and Android store. And so I think, Melissa, as I say, good but not great. It's going to be really tough for long term investors to get comfortable that this in fact is going to move in a different direction over the next few years. They've been at it two years now and still aren't seeing meaningful uptake. And if I was going to kind of put this all in the most basic terms, Google is becoming ebay effectively. Its energy is getting zapped out. Before ebay it was Amazon kind of taking its energy out. Now it's GPT anthropic and Grok doing the same.
- [10:10]
Tim Seymour
So do you think that this is just early innings and so there's time for Alphabet to catch up in this or what's your takeaway from all of this then for, for Google's AI business?
- [10:21]
Guy Adami
I think, I think it's going to be very, it's going to be a tough road. And so I've been positive on this for a long time and I've shifted my view more recently. And specifically, just the question about, it's not just about having a great chatbot. The problem is that they've got a trillion dollar search business that they have to somehow create a monetization that feels a lot like what everybody wants right now, which is a really simple result. And so not only are you facing competition for these other bots, but you also have to answer this question about the monetization. And so my sense is that Google is going to be an important part of our lives for a long time. Two billion daily users, over two billion. They said that's not going away. EBay's didn't go away either. EBay is a $30 billion company today and so I think that this one's going to be really tough over the next several years. And just to kind of put a bow on it. I don't know what a long term, again, what a long term investor is going to pull out of tonight. That's going to make them comfortable that they're going to successfully navigate that monetization.
- [11:23]
Melissa Lee
Question since Gene, because what you're saying there is hauntingly familiar to what Ben Reitz said about a month and a half or two months ago. And he used a comparison of Google, the Eastman Kodak, which I thought was an interesting choice by him. And I might. I'm not pushing you down that road, but you're saying similar things.
- [11:42]
Guy Adami
Yeah, it's again, a company that's near and dear to all of us. But let's just rewind and look at what's happened for the search growth over the last year. March of 2023 or 2024, it was 20 or 14% growth. 14. And it's just continued to go down as 10%. YouTube kind of the same trend. And so a really important company that's just not growing that still has a really big question to answer. Just like ebay had a question to answer was they were a third party. Amazon was coming in as a first party doing fulfillment. They had to make a hard decision about how to go after that. They stuck to their road and that's where they are today.
- [12:18]
Steve Grasso
Jean, it's Karen. Thanks for being on. So a lot has been said about breaking up Google, but what about. I'm not talking about from an antitrust standpoint, I'm talking about actually letting the pieces float or spin or whatever, however you want to do it. What do you think of that as a possibility and would you be in favor?
- [12:37]
Guy Adami
Yeah, to unlock some of the value at this point. I think there's probably some mechanics around that. On the Chrome side didn't seem like there was much of a bidder, but OpenAI wants to bid for that. I think that that just shows you how these two companies are fighting for the consumer. That's the bid on Chrome. So Karen, I think that there are opportunities to kind of spin these out. I still think that the central question is kind of like intel is like what's your central question? You know, how are they going to grow, compete in the AI? We know what it is in the central question relative to search and I think a breakup isn't going to change that equation.
- [13:14]
Tim Seymour
All right, Gene, thank you. Thank you. Posted on the conference call. Gene Munster, Deepwater Asset Management Gene had mentioned the comparison to ebay. I thought that was interesting since they spun out PayPal and PayPal was a very fast growing part of the business and it really unlocked the value of PayPal. That was a P and bly sep by the way. So that's why I naturally was P.
- [13:33]
Karen Feiderman
And blycep and I'm glad we brought it up again. I'm someone that plays the acronym game the way it's supposed to be played and that's okay. You know, look, I guess I don't agree with that. I guess it's a very obvious. Let me restate that. It's not obvious and I understand where people are going with this. But I also part of the reason I feel comfortable with Google is I think that's priced in I think the market at a time when you've seen multiples put on the mags, the rest of the Mag 7 that, that I think are put them into kind of a new era over the last couple of years in terms of even a higher multiple relative to themselves. I look at the pieces of the Google business including YouTube which on a really tough comp is now 10% of revenues. It's not insignificant, but I think it could be 20 because based upon the strength of it, not because the rest of the business is, is falling. So I know just an environment to me where I think it's a lot easier to hold. It's a lot easier to hold Google. When I look at the mag 7 the numbers here today are I think going into next week, which is really important with Amazon and Microsoft next week and then later Apple and then, you know, it's pretty positive. By the way, speaking of Mag 7, we had the stock draft today over in Englewood Cliffs. It was a very exciting day. And it was, you know, Guy Adami was teamed up with Sebastian Maniscalco which what a parody. Talk about twin sons of different mothers. I mean, look at that. I mean how great is that? I mean these guys too good looking people separated at birth.
- [14:58]
Melissa Lee
Well, he's Sicilian. I'm Sicilian, right? Lovely conversation. You know you made fun of me last night. I said Sebastian and I had a lovely conversation. Turns out we had a lovely conversation.
- [15:06]
Tim Seymour
And your picks were firmly.
- [15:08]
Karen Feiderman
They were mag 7 firmly.
- [15:10]
Tim Seymour
This whole thing relates to this seeming tangent.
- [15:12]
Karen Feiderman
And Guy, being the humble man that he is, wanted to take zero credit for those picks. I believe him by the way. Sebastian, the guy does his homework. He watches Fast Money all the time. And the bottom line is he made the call on those companies based upon he was looking at valuation, he was looking at where they are relative to the cycle and guy was just tagging.
- [15:29]
Melissa Lee
Along as I typically do, as I do often on this show. But I'll say this as well to sort of piggyback on some of Tim's earlier comments about Google. What Gene is saying could absolutely be true, but it's not happening over the next couple of weeks. I mean this is probably longer term stuff in the here and now. Google just proved, you know what things are okay, valuation is okay. They seem to be pretty convinced that they're headed in the right direction. The stock should bounce from these levels.
- [15:53]
Tim Seymour
All right. We are also getting results from intel after hours the chip maker lower despite beating on the top of the bottom lines. The conference call kicking off at the top of the hour. Christina parts Nevilles got the latest. Hey Christina.
- [16:03]
Karen Feiderman
Hi Melissa.
- [16:03]
Tim Seymour
Well the earnings beat is partly driven.
- [16:05]
Guy Adami
By demand being pulled forward due to looming tariffs.
- [16:08]
Tim Seymour
Like you said, the call just started.
- [16:09]
Guy Adami
But I actually spoke to Intel's CFO.
- [16:11]
Tim Seymour
About an hour ago and he acknowledged likely quote pull ahead purchases and that uncertainty is adding to the weak guidance you alluded to. The company is cutting 2025 OpEx from 17.5 billion to 17 billion, including workforce reductions which will begin in Q2 and move quickly over the next several months.
- [16:28]
Guy Adami
Quote the CFO said we have not.
- [16:30]
Tim Seymour
Come up with a number.
- [16:31]
Guy Adami
And he said that despite the 20% number that was reported just a few days ago, CEO Liputan releasing a memo.
- [16:37]
Tim Seymour
Telling employees they're required to be back.
- [16:39]
Guy Adami
In the office four days a week starting September 1st.
- [16:42]
Tim Seymour
The CEO has only been in the role for about five weeks or so.
- [16:45]
Guy Adami
But in this memo he's calling it.
- [16:47]
Tim Seymour
The quote most challenging role of his career. He plans to streamline management layers across the organization while refining their AI strategy. And lastly on the call, the CFO call with me. He said that they remain committed to their foundry business while planning to cut non core products.
- [17:04]
Guy Adami
Didn't specify specifically what he meant by.
- [17:06]
Tim Seymour
Non core but said they have about 10 to 15 non core products.
- [17:09]
Karen Feiderman
So a lot of news would get.
- [17:11]
Tim Seymour
The shares price is still down about 5% percent. All right Christina. Thank you Christine. Apart to Nevilous Seagrass what do you make of this quarter?
- [17:17]
Guy Adami
So I own it and I would be a buyer here. You buy, you buy these companies because the CEO you buy ServiceNow because of Bill McDermott you used to buy T Mobile because of John Ledger. You buy now because of Mike Sievert. You buy the story when he was at Cadence Design the Stock was up 30 200%. That's what I'm buying here. I'm buying a turnaround. This was, I don't, I hate using the term kitchen sink but this is the bottom I think in Intel I'm looking for efficiencies, I'm looking for spend the right way. That Silver Lake injection of over 3.
- [17:48]
Tim Seymour
Billion I think helps the commitment though to the foundry business. That's a big capital drain. I mean people were looking to them.
- [17:53]
Karen Feiderman
To maybe co co manufacture with Taiwan.
- [17:57]
Tim Seymour
Semi or some of the burden of the foundry business.
- [18:00]
Karen Feiderman
Look, I think capital and balance sheet are a really important part of this story and I recognize that. Think of the world we live in. Think about what's going on with tariffs. It really almost seems like it was all about companies like intel falling so far behind Taiwan semi and global players. So I know they have to have an important role going forward. I wonder how they're going to do it. And I agree with Steve that the CEO is certainly for the first time you've got a CEO at the helm that you believe is can engineer a turnaround. But this is a turnaround that is so extraordinary that I think you have to be patient.
- [18:31]
Steve Grasso
I'm intrigued by the kitchen sink part of it. Why not? Right? It's any environment this is the one to just say, you know, we can't give you any guidance, anything like that.
- [18:41]
Melissa Lee
Look at the quarter and I agree that second quarter guide was not good but why wouldn't they to everybody's point but when was the last time and sure somebody at me their data center was up almost 8% year over year. That's been a huge drag for a long time. So it's seemingly there is a little bit of a turnaround going on and if that is a sandbag I think intel is pretty interesting right here.
- [19:01]
Tim Seymour
Well the latest batch of tech earnings coming on the heels of another strong day for the markets. The S and P jumping 2%, the Dow adding nearly 500 points and the Nasdaq leading the charge surging 2.7%. It's a third straight day that the tech heavy index has posted a gain of more than 2%. It's only done that four times in history, most recently in April 2001. The NASDAQ now down less than 1% this month. So what will today's earnings do for the recent momentum that we've had? You alluded to it. It's good news, particularly ahead of all of the other big tech earnings that we're looking for next week.
- [19:32]
Karen Feiderman
Yeah, I think we could. This is a time I think to talk as Much about just some of the technical dynamics of the market. I mean We've had a 12 and a half percent rally in the S and P off that intraday low on the seventh. It's pretty remarkable. Now we're right up at the top end of a down channel that goes back to February 21st and for semis back to January 7th. So that's what's fascinating to me. I think if you look at the move that the markets had and there's some arguments and I'm reading some pretty interesting data out there, that a lot of the sell off has been all about hedge fund repositioning and then CTA is following them that you haven't heard retail sell. You haven't necessarily seen foreigners leave our markets. And those are two points that are either, oh, that's really bullish or it's actually very bearish because you haven't seen, you know, the type of capitulation that you could see.
- [20:16]
Steve Grasso
It's shocking that it's almost back to flat. Ish. That's sort of amazing. This is so much worse though than flat or flattish or down slightly.
- [20:25]
Tim Seymour
It's like staying flat.
- [20:26]
Steve Grasso
Yes, that's a, that's way, way less treacherous than this.
- [20:31]
Melissa Lee
I look at it and you know, 5500 Steve's talked about this. I think we've collectively mentioned this is basically that 50% retracement of that low that we made, by the way, which was the bottom of a three, a four year trend line, I think from 2020 or so. So we held the trend line that we should have. The uptrend problem is what we've seen here is just, I think a textbook retracement. I don't think we're out of the woods yet though, Mills.
- [20:53]
Guy Adami
So we're above the 20 day moving average, which is your momentum indicator. The 50 day moving average is 5,646. So that's the big one that we have to breach or cross over to the upside. Look at a long term chart in the S and P. We've had collectively across this desk every crisis. This is going to be another one that the market shrugs off. And I think we're going to be at 6,000 pretty quickly.
- [21:18]
Tim Seymour
Pretty quickly. Like when.
- [21:19]
Guy Adami
Four months. Four to six months is that quickly? I don't know. I don't know.
- [21:23]
Karen Feiderman
Some, some people.
- [21:24]
Steve Grasso
You're going to say Thursday.
- [21:25]
Guy Adami
Yeah, not Thursday, not Thursday. Points, not Thursday.
- [21:27]
Tim Seymour
But it's points. Yeah. Okay. Four to six months. All right. Always love interesting calls.
- [21:32]
Karen Feiderman
Yeah, get out there.
- [21:33]
Tim Seymour
Coming up. More after hours action to bring you Gilead, Gilead, Agnico, Eagle T Mobile and Boston Beer all on the move after reporting the details and numbers out of the quarters. Next and the latest on tariff talks or lack thereof. The contradicting comments from President Trump and China and what it all means for the state of trade don't go anywhere. Fast Money's back into Every day, thousands of Comcast engineers and technologists create connectivity solutions that change the way we work, live and play. Like Kunle, a Comcast engineer who is focused on revolutionizing the in home Wi Fi experience today and for the next generation. Kunle builds powerful Xfinity WI Fi devices that deliver a fast, reliable connection with capacity to connect hundreds of high bandwidth devices at once and next level latency for the applications of the future like augmented and virtual reality and cloud gaming. Learn more@comcastcorporation.com wi fi how will you.
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- [23:04]
Tim Seymour
For 140 years MultiCare has been in Washington prioritizing long term solutions, partnering with local communities and expanding access to care. Together we're building a healthier future. Learn more@mycare.org welcome back to Fast Money Earnings Alert on Gilead. The stock falling after reporting an earnings beat but revenue missed. Angelica Peebles joins us now with more on the quarter. Angelica hey Melissa. Yes this was really a mixed Q1 for Gilead in HIV deskovi for HIV prevention beat estimates but Biktar V for treatment came short in oncology yes Scarta beat but then Tridelvi that missed by almost $54 million and they reaffirmed their full year sales and adjusted EPS guidance and they're saying that that guidance did include what we know, the known tariffs at this point and how that will increase the the input costs. And they're saying that it does not include any potential pharma specific tariffs. Of course we are watching for those but we haven't gotten any of them yet so we'll have to see and that could of course change throughout the year. Guys, do they have manufacturing overseas? I'm just trying to figure out if they, you know what sort of potential exposure they might have. So they do have manufacturing overseas but they are really making the case on the call that's still going on right now that they are less exposed than some other pharmaceutical companies. They're saying that the majority of their manufacturing is here in the US and that also their IP is domiciled here. And they're saying that 80% of their profits are recognized in the US which would make them less exposed than some other companies. Of course it is a very complicated supply chain and they note that it's not necessarily all in the US but they are trying to paint that picture that they are less expensive exposed and some others. All right, Angelica, thank you. Angelica Peebles. In fact Cantor coming out with a note I think it was today, basically putting out their top picks that are the least exposed to tariffs. Gilead is one of them. Vertex is another. They're saying that Vertex has no overseas manufacturing. It's all manufacturing in the United States. Abbvie, another one, Regeneron. But obviously this is a huge issue hanging over the so stocks selling off.
- [25:11]
Melissa Lee
I get it. I mean their HIV business is still best in breed. People are looking at big to larvae and they're saying, you know, it down I think marginally in terms of what the street was looking for, but still up 7% year over year. That's a big drug, $3 billion drug. And then they look at oncology a little bit disappointing but you lump it all together and I think this is still a company that's very reasonable on valuation, doesn't have some of the obstacles you just mentioned. And this sell off which is probably down from 1:18ish or so, I think you buy Gilead wasn't a huge, huge.
- [25:39]
Tim Seymour
Miss on Tarvy either. 3.15 versus 3.254 billion.
- [25:43]
Karen Feiderman
But, but I, you know, I don't think anybody really is putting the valuation of the company in the hands of HIV or HCV or you know, hepatitis at this point. I mean this is all about oncology. That's why I think the oncology miss in this stock performance. I'm just talking about how the stock has reacted to a miss in oncology. I think it's pretty decent given the fact that it's been, as we've all just said, somewhat resilient, somewhat defensive even in the face of more broader pharma weakness.
- [26:07]
Tim Seymour
Yeah, you have some pharma names too.
- [26:09]
Steve Grasso
I do have some pharma names. Well Merck today is one, you know, so they guided a little light. The street didn't really love that it traded down but actually by the end of the day it was up. I think just the there's so much bad news already priced in. I mean keytruda a miss for sure. But I'm long I just think of this valuation.
- [26:29]
Guy Adami
It's Gilead has outperformed the two closest competitors they always put in comps with them are Amgen and Bristol. It's outperformed by a large margin both of them. Merck has the worst chart so obviously you've been suffering from from that but if you look at the patent cliff, the patent cliff is two years out to three or four on most of these. Merck actually has the biggest exposure to patent cliff. Gilead has the least exposure to the patent.
- [26:55]
Tim Seymour
You add the patent cliff plus the potential tariffs plus just totally washed out sentiment. I mean how many times has Jared holds come on here saying that he just can't say to buy pharma at these value even at these valuations it's impossible and you can't find anybody who wants to buy them either.
- [27:11]
Steve Grasso
I disagree Lilly. I still think right.
- [27:14]
Tim Seymour
Well it's really right.
- [27:16]
Steve Grasso
Well so they did have very good news on that oral drug so. But the valuation's rich.
- [27:21]
Tim Seymour
Yeah. Coming up even more after hours action to bring you Agnico, Eagle T Mobile, Boston Beer all on the move after their reports.
- [27:29]
Karen Feiderman
The guys clam the clam.
- [27:31]
Tim Seymour
Well that was last I'm always playing.
- [27:34]
Melissa Lee
The game by what is Blythe.
- [27:36]
Tim Seymour
What is that I love 2025 details numbers out the quarter next. You're watching Fast Money live from the NASDAQ markets and Times Square back right after this.
- [27:45]
Karen Feiderman
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- [28:23]
Guy Adami
Access any market, anytime, anywhere.
- [28:26]
Karen Feiderman
Start Streaming. Go to cnbc.com stream now.
- [28:31]
Tim Seymour
Welcome back to Fast Money. We wanted to introduce CNBC's newest subscription streaming product, CNBC Plus. It's where you can stream Fast Money and any of your other favorite CNBC shows anytime, anywhere, on the go and also on demand. So if you can't catch Fast Money in real time, you can watch us later on cnbc. What you're seeing on the screen right now is our CNBC data feed which gives you an enhanced data view the latest headlines all throughout the business day. So you get fast money plus lots of additional headlines and extra market information.
- [29:00]
Guy Adami
And it's like a reality show so they follow us all home. You get a little bit of that too.
- [29:04]
Karen Feiderman
After hours right over.
- [29:05]
Tim Seymour
Promising some more after hours action to bring you here. Agnico Eagle mines topping estimates as gold production surges. T Mobile beating top and bottom line expectations. But down after hours in Boston Beer also coming in better than estimates but giving back much of its early gains while Skechers is sinking after the company withdrew 2025 guidance due to trade uncertainty. I got to hand it over to Guy for Agnico.
- [29:28]
Melissa Lee
Oh, well, best run the first of all, as.
- [29:31]
Tim Seymour
Did you think I was going to say sketch?
- [29:32]
Guy Adami
Yes.
- [29:32]
Tim Seymour
Yeah.
- [29:32]
Melissa Lee
Well, I could, I could go the sketches route but as Tim will point out, Agnico was the in my clan last year.
- [29:39]
Tim Seymour
Yeah.
- [29:40]
Melissa Lee
A wonderful see the.
- [29:42]
Karen Feiderman
Why do you have to make that face? Well, you know, but just unbelievable sitting.
- [29:49]
Melissa Lee
Here I think is making a new all time high. So they're the have and have nots in the gold mining space. This is clearly a have. I still believe in a name regardless of the move.
- [29:59]
Tim Seymour
Mm. Where would you go, Tim?
- [30:01]
Karen Feiderman
Well, I guess we've done gold and you. I would like to talk about gold too, but I'll go to Skechers. I mean I'll go, I'll go to where at least you, you have a lot of pressure I think in discretionary and particularly a particularly competitive athleisure footwear space. That's where Skechers lives. And I think you're, you're fading any of this.
- [30:21]
Tim Seymour
All right, coming up. We didn't, we were very nice to sketches. We didn't say anything disparaging about the fashion. Well, they're all of you guys got.
- [30:29]
Melissa Lee
To really got to sort of rethink life.
- [30:32]
Tim Seymour
Contradicting comments the latest on the tariff talks between the US And China and why we're hearing different things from President Trump and Beijing. The details on that when Fast Money returns. Welcome back to Fast Money. Treasury Secretary Scott Besant this afternoon saying trade talks with South Korea may be moving faster than thought. This after President Trump said earlier that U.S. and Chinese officials have had met to discuss. Let's get to Eamon Jabers who has the very latest. Eamon, you know, I don't know if.
- [31:00]
Melissa Lee
I have the very latest. Melissa, it's been a confusing day here at the White House because we had the denial by the Chinese overnight that there were any talks at all. And then we heard from the president later in the day saying that in fact there have been some talks here. Take a listen to what the president had to say earlier.
- [31:17]
Steve Grasso
Well, they had a meeting this morning.
- [31:19]
Tim Seymour
So I can't tell you.
- [31:20]
Karen Feiderman
It doesn't matter who they is. We may reveal it later. But they had meetings this morning and.
- [31:26]
Guy Adami
We'Ve been meeting with China.
- [31:30]
Melissa Lee
So the president there saying they had a meeting, but he's not going to reveal who they is. So we have really no information on which officials are meeting with which officials and at what level or if any.
- [31:40]
Tim Seymour
Of that is happening.
- [31:41]
Melissa Lee
The president simply suggesting that that's a detail that he could provide later. And then we heard from Treasury Secretary Bessen, as you said, in the Oval Office with a meeting with the president.
- [31:51]
Karen Feiderman
And the prime minister of Norway today.
- [31:54]
Melissa Lee
Taking some time to alert reporters to the fact that he thinks talks with the South Koreans are going better than expected and he expects a memorandum of understanding and he expects some technical, detailed discussions to happen next week with the South Koreans. So the White House showing some signs of progress there, but very much unclear in terms of China, who's talking to who, if anyone's talking to anyone. The White House is insisting they are. The Chinese are insisting they're not.
- [32:20]
Tim Seymour
Melissa. Yep. Eamon, thank you. Amy Jabbers. Well, you know, the tariff talk sparking a fiery early reaction out of China. CNBC's Eunice Yun in Beijing with more on this. Mel, China has rebuffed President Trump's claims that China and the US Are in ongoing talks about tariffs. The Commerce Ministry today said at present there are absolutely no negotiations on the economy and trade between China and the U.S. in addition, the ministry used stronger language saying if the US really wants to resolve the problem, it should cancel all the unilateral measures on China. The tougher stance comes as the government encourages the public perception that China has the upper hand. And Trump is in retreat. The hashtag TrumpTickeningOut is trending with 250 million views when mocking his falling popularity among Americans. Chinese state TV referred to President Trump by one of his nicknames, 10,000 Tariff Grandpa.
- [33:21]
Steve Grasso
Other names on social media, King Knowitall.
- [33:24]
Tim Seymour
And Trump the nation builder when the nation being built is China. Mel Eunice, thank you. Eunice Yoon in Beijing. Interesting how much daylight there is between the story that the White House is telling in terms of where the talks are and what we're hearing. Out of China, whether it be from the commerce minister, the foreign minister, or just the people in China and their willingness to acknowledge the United States as being friendlier, there doesn't seem to be any acknowledgement there.
- [33:52]
Karen Feiderman
Well, it was two days ago at this time of day on Fast Money when we had an Oval Office set of questions that led to Powell and then also some sense on tariffs, especially as it related to China, that things were in a very different place. And, and what's at least interesting, I think, for the markets is that the Trump administration is at least trying to represent that there's progress, especially with China, who at one point it was like, look, we'll talk to everybody else. Right now China's just out there and we'll, we'll deal with them later. So whatever is truly going on, part of it is, I think for the markets, just the posture that the administration is looking to, to, you know, have some kind of a constructive talk, because I don't know that that was really what was felt at some point. It's again, part of, you know, what really from Liberation Day onward was the markets really being unclear about really what the goal was. What was the goal from Chinese tariffs? What was the goal from all these other tariffs? And the rhetoric that we're getting from the White House, whether they're having chats or not, is that they have something in mind.
- [34:54]
Tim Seymour
The headline in the Wall Street Journal, trump has met his match. The markets, which, you know, he's talking positively because he sees the, the just shambles.
- [35:05]
Guy Adami
I think he has to, you have to fight even with a decline in the markets. I think what he's not tolerant of is the tick up in yields in the 10 year. I think that 450 number is where he's going to really start to move some things around. It always established, whenever I look at the market, I think how many handles? Or is this going to be higher when this gets resolved? And it's probably a 3 to 5% move higher. I'm playing it for that.
- [35:35]
Steve Grasso
If you think it is resolved in one shot as opposed to.
- [35:37]
Guy Adami
Yeah, once they're talking.
- [35:39]
Steve Grasso
Either way, right? No, either way. I think also the dollar, but that's just, I guess, collateral damage from the selling of Treasury.
- [35:45]
Melissa Lee
Yeah, I think they're probably quietly okay with the weakness in the dollar. Quite frankly, we'll never admit that. But to Steve's point market, it's a bond market that scares them. The market, the stock market's a nuisance. The bond market is what scared him and that scared him. Whatever that Tuesday was a couple of weeks ago when the bond market was melting down. That's when he basically acquiesced the next day, having said that, he saw the Jamie Dimon interview and he heard some internal talking and that's why he decided to back off.
- [36:10]
Karen Feiderman
The stock market and the bond market are intertwined and I mean, we all know that. I guess I do feel that this is an equity market blank as well. I think it's a combination of really looking at the disorderly moves. Maybe they could have been even more so. But I think, you know, I don't know what that number is. But you know, we, a month ago we're starting to ask, hey, what's the strike on the Trump put? Hey, what's the strike on the Fed put? The Fed pit was lower than the Trump put. Then they flip flopped. And now at this point, I think the Trump strike is definitely higher. The Fed who's going to meet in two weeks has very little room to go and very little they can do here.
- [36:47]
Tim Seymour
Coming up, a few fast movers catching our attention. Today's market, how the traders are handling the jumps and drops in Pepsi, United Rentals and Hasbro. That is next. Plus two media names streaming in very different directions. Why the latest numbers out of Peacock aren't helping boost Comcast stock while Netflix sets a new record when Fast Money returns. Welcome back to Fast Money. Pepsi shares dropping almost 5% today. The food and beverage maker cutting its outlook after reporting mixed earnings before the bell. Pepsi expressing concerns business about the impact of tariffs as well as a more cautious consumer. They have the snack business obviously. So I'm wondering Coke versus Pepsi in this environment, Tim?
- [37:26]
Karen Feiderman
I like Coke. I think Coke's a little bit more of a domestic model. Pepsi also just the the some of the margin pressure from tariff dynamics I think are very significant. I think you have to be very careful here. Even with Coca Cola though. I mean we're looking at this reaction to Pepsi in the after hours. But Coca Cola has been a hero. And I think a lot of these, you know, call them consumer staples plays, even though these have a little bit, I think more stickiness, pardon the expression to them. But I mean I think be careful, I wouldn't be chasing them here.
- [37:55]
Melissa Lee
Despite the move low over the last year and a half, we're at levels we last saw in 2021, which is remarkable. And as much as you want to say this is cheap, it's not really all that cheap either given what they're expected to do. GLP1s are clearly not helping. Snack business not helping. I still think there's more room to the downside.
- [38:12]
Tim Seymour
Pepsi United rentals jumping almost 10% a day after posting record first quarter and announcing a $1.5 billion buyback. URI is obviously the obvious carved acronym.
- [38:26]
Steve Grasso
Yes. Yes, it is. Now you are. I was. It was a good day for uri. You know, it seemed like a little bit of a noisy quarter. The revenue was good. The gross margin was a little late. They did talk about why that is, which is the Yak acquisition, of course, causing the depreciation to be higher. But really it was the guidance, which is good. I have not since I've been following this company, which is a really long time. The balance sheet has not been in as good a shape as it is now. And these guys are, they are always under promise over deliver. So it's a good day for you.
- [38:56]
Guy Adami
That's a good, good sign for the economy. What do you do? You rent something before you actually buy equipment. So I always use them as a leading indicator in the economy. The chart has been on a declining trend line, but this latest pop sort of breaks you out of that. And it's been outperforming some of the names in the group as well.
- [39:13]
Tim Seymour
I would think that you rent if you can't afford to buy or financing to buy was. If you're worried. No.
- [39:18]
Steve Grasso
That people don't want to do it anymore. It's just the sharing economy. They'd rather have the capital elsewhere. And so the. So it's a much less lumpy business than it used to be.
- [39:27]
Guy Adami
Yeah.
- [39:27]
Melissa Lee
I borrowed Tim's backhoe.
- [39:29]
Tim Seymour
How did that work?
- [39:31]
Karen Feiderman
I tell you what, I tell you what, you kind of beat it up a little bit. I mean, you weren't gentle with my back.
- [39:36]
Tim Seymour
I don't know what you're doing with that. Hasbro meantime surging nearly 15% today. The toymaker maintaining its full year guidance after posting better than expected quarterly earnings. The company did cite tariff uncertainty in its guidance. It predicts a $300 million hit to its bottom line if President Trump's 145% levy against China imports holds about 15% gain here.
- [40:00]
Steve Grasso
I'm shocked, particularly with that headwind. Even though you talk about diversifying away, it sounds like they still have a lot of exposure.
- [40:05]
Tim Seymour
Right.
- [40:06]
Steve Grasso
I was surprising.
- [40:07]
Tim Seymour
Yeah.
- [40:07]
Melissa Lee
Hasbro is. No, I mean, look at a long term chart in Hasbro. You make heads or tails of this thing.
- [40:11]
Tim Seymour
Yeah.
- [40:11]
Melissa Lee
Maybe we just got down to levels that should have held, but, you know, there's no rhyme or reason. My Instincts suggests given the last year and a half, two years of the price action, you sell rallies in this name.
- [40:22]
Tim Seymour
Coming up, a tale of two streamers. Comcast taking a leg lower despite a peacock pop. But Netflix still winning the streaming wars. Can anyone make a dent in that run? Next, more Fast Money to welcome back to Fast Money. A mixed message in the media space. Shares of Comcast dropping after reporting results this morning despite some positive peacock updates. Meanwhile, Netflix continues to see strength after earnings last week closing at a new record for the first time since February. Julia Borson's got all the details. Julia? Hey, Melissa. Well, it's a tale of two very different media stocks. Comcast shares fell over 3 1/2% today to a 52 week low despite beating on the top and bottom lines, bringing the stock down nearly 18% in the past year. Weighing on shares, the loss of 199,000 broadband subscribers amid growing competition. Plus, the cable TV business continues to suffer from cord cutting, losing 427,000 customers. One bright spot though, the company's mobile business growing revenue 16%. The company is bullish about its parks business ahead of next month's opening of Epic Universe in Orlando. Full disclosure here. Comcast is of course our parent company, but not for long because Spinco is happening later this year. Now in sharp contrast to Comcast, Netflix shares gained about 4 1/2% today to a new all time high on pace for its longest winning streak since November after far better than expected earnings a week ago, prompting a number of analysts price target increases. The streamer is seen as a defensive play insulated from tariff risk. Piper Sandler calling it the best position name in consumer Internet. Shares of Netflix are Now up nearly 97% in the past 12 months and analysts are still bullish. 71% have a buy rating on the stock, 27% have a hold and only one analyst, Comcast is underweight on Netflix. Melissa? Julia, thank you. Julia Boorstin, Once upon a time Comcast was a very defensive stock.
- [42:16]
Melissa Lee
Once upon a time I was now Netflixes.
- [42:18]
Tim Seymour
But I mean it's amazing how things have changed in terms of what is viewed as defensive and an insulated business.
- [42:24]
Melissa Lee
Netflix is defensive. Netflix Netflix is more than defensive. I think it's if you want to play offense, I mean do a Netflix outside of maybe a couple stumbles over the last decade. They've done everything right and I think consistent consistently around this desk. We have said to stay with Netflix and the fact that it closed above that prior all time high from a couple of months ago is Very encouraging.
- [42:42]
Tim Seymour
We've got some headlines off the Alphabet call shares near after hours highs. Let's get to Gene Munster. Jeanne, you flagged us on Waymo here.
- [42:49]
Guy Adami
Yes, Melissa, and special thanks to Mark Mahaney for asking this question at the very end of the call. What is Waymo's go to market strategy? Something I've been thinking a lot about. There's 4 billion rides hailed every year in the U.S. big opportunity. They basically said that they want to perfect the driver and then there's many opportunities that they're going to have. And one that they highlighted that was totally new to me is that offering it to the consumer. So maybe some current OEM producer powered by Waymo, for example, that that type of an option. They also notably this caught my attention. They said that they are pleased with their relationship with Uber. I always thought that that relationship was a convenience, one that was going to end over time, but those jumped out for sure. The most exciting thing going on at Google right now is way more.
- [43:37]
Tim Seymour
All right, Gene. Thank you, Jean. Sir, we were just talking about what if we apply the same valuation or something near what Tesla is getting for Robotaxi to Waymo.
- [43:46]
Karen Feiderman
Look, we had an interesting conversation with Brett Winton earlier in the week where his, his call was, hey, I don't really care that much about the car business. It's like, ok, I mean I get that. And that's consistent what they've been saying all along, by the way. But I'm not sure the market always does that. But if it's ultimately about hardware, who cares? It's really about the software and it's about the data and the power of that. Why not Waymo? Why be worried about who their hardware partner is if that's secondary?
- [44:12]
Tim Seymour
Up next, final trades, quick programming note. Former NEC director and Goldman Sachs Ex President and CEO Gary Cohn will join us June 5th, our next fast Money live event. He was also President Trump's chief economic adviser during his first term. So you will not want to miss that interview. And of course you can catch it live. A few tickets are still available. Scan the QR code on your screen to sign up. You can also head on over to CNBC events.com/fast money. All right, final trade time. Let's go around the horn. Tim.
- [44:41]
Karen Feiderman
Stock draft today. Carly Lloyd nailed it with Nike. In fact, that was my number one pick overall. I think she nailed it. She's, she's a winner. Nike. He's a winner.
- [44:49]
Tim Seymour
Karen.
- [44:50]
Steve Grasso
Yes, breathing a big sigh of relief on Google, which is a great look through for Metta. That's my final trade.
- [44:56]
Guy Adami
Stephen, have you seen Lyft for the last two days?
- [44:58]
Tim Seymour
No, I bought it.
- [45:00]
Guy Adami
I bought it and I think Bold call.
- [45:02]
Melissa Lee
I think the stock doubles guy, Sebastian Maniscalco, acquitted himself extraordinarily well, not surprisingly, given his heritage. That, of course, hailing from Sicily, the U in my tube, as you know, is Uber.
- [45:17]
Tim Seymour
Yep, it is. Thanks for watching Fast Money all opinions expressed by the Fast Money participants are solely their opinions and do not reflect the opinions of CNBC, NBCUniversal, their parent company or affiliates, and may have been previously disseminated by them on television, radio, Internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information the Fast Money participants consider reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Fast Money disclaimer, please visit cnbc.com fastmoneydisclaimer Introducing CNBC, the.
- [46:02]
Karen Feiderman
New streaming platform from the number one.
- [46:04]
Guy Adami
Source in business news.
- [46:06]
Karen Feiderman
Watch live or on demand. Access any market, anytime, time, anywhere. Start Streaming.
- [46:11]
Guy Adami
Go to cnbc.com stream now.