← CNBC's "Fast Money"
CNBC's "Fast Money"
Another Day In The Green For Apple… And The Next Move For The Energy Sector
00:43:36
Apple closing at a record high, as the tech giant continues its recent outperformance over the broader market. But could Apple get left behind as the AI race speeds higher, or can the company keep up with its mega cap peers? Plus, What the Chartmaster Carter Worth sees in the energy sector’s technicals, the comments sending shares of Boeing soaring, and all the after-hours action in names like Crowdstrike, Marvell, and more. Fast Money Disclaimer
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- [00:00]
Tim Seymour
Introducing Fidelity Trader Plus. With customizable tools and charts you can access across all your devices, try our most powerful trading platform yet@fidelity.com TraderPlus investing involves risk, including risk of loss. Fidelity Brokerage Services LLC Member NYSE SIPC.
- [00:15]
Sempra Energy Announcer
The world runs on energy and as demand increases, Sempra is rising to help meet the challenge. Through our Texas and California utilities, we're investing billions to help power these booming economies. We're building tomorrow's energy infrastructure today, modernizing one of North America's largest energy networks with next generation technology to power the everyday lives of nearly 40 million people. That's positive energy. Learn about Sempra's financial results@sempra.com investors.
- [00:49]
Dan Nathan
Live.
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Brian Sullivan
From the NASDAQ market site right here in the heart of New York City's Times Square. This is fast money. Here's what's on tap. Another record for Apple. It's been on a bit of a stealth rallied the last couple of months. We'll ask the traders of Apple still has appeal, an energy inflection point. What the Chartmaster sees in the oil world that makes him a buyer right now. Plus a big bitcoin bounce back above 90,000. Boeing takes off on optimism over strong deliveries. And what happened to Costco? The once unstoppable, unflappable warehouse retailer has been lagging Walmart all year. We'll talk about why and what to do now. I'm not Melissa Lee. Hi everybody. I am Brian Sullivan coming to you live from Studio B at the nasdaq. On your desk tonight, Tim Seymour, Carter Worth, Dan Nathan and Guy Adam. We have got a lot to do this hour but let's start with another record close for Apple shares up again today. Apple now has a market cap of more than $4.2 trillion that is close to taking the crown for from Nvidia. And Guy, if you go for the ground, you best not miss. And that is a title by the way that Apple has not had since April. Now it was a rough start to the year for Apple. You know that. In fact, many people out saying this stock was rotten because the company does not have a clear AI strategy. But all Tim Cook and company have done lately was to outperform the broader market over the last 1, 3, 3, 6 months. All this as you may have heard. Guy Dami we're in an epic multitrillion dollar battle over technology and AI. Good to see you Guy. What did maybe people get wrong about the Apple store?
- [02:36]
Guy Adami
Great that we like to welcome you as you know hello to Munchkin welcome.
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Evan Brown
Brian.
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Guy Adami
No, just the show.
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Brian Sullivan
Okay, good.
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Guy Adami
By the way, I want people to know that we all came in, everybody seems to be in a bit of a mood, but we're going to turn that frown upside down right now.
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Brian Sullivan
It's a smile, not an upside down frown.
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Guy Adami
No, people like me have gotten it wrong. People like Tim Seymour have not. And what I think is happening now is the fact that maybe they were late to the game is actually an advantage for them. And some of these other companies that have been spending wildly are now being, I don't know, punished in a way. And Apple sort of winning to this. And listen, I've had a problem with valuation with Apple for quite some time. Obviously that's been misguided. Apple wins to passive investing. It's in over 400 ETFs of which it's one of the top 15 holdings. It wins on down days as well as it's a flight to safety if you can sort of wrap your head around the valuation. I mean it's, it's a great story right now.
- [03:31]
Tim Seymour
Well, it's definitely a valuation that has been, you know, a big part of at least the pushback in a world where they're not going to give you the kind of growth even that they might have given you the last couple of quarters. Whether it was a bit of a pull forward, whether it was a liberation day, pull forward when and certainly where we are in the holiday season. But, but Guy nailed this. This is, this is a stock we've seen rotation, people were underweight. I think it's as much technical in terms of how owned, how under owned, some of the dynamics of a chart that took two years, maybe three years. And Carter has probably the exact dates on this where this stock was struggling to get to 200, came up against that level a couple of times, then got through there and slowly started to build higher. It's moved from 200 to 280 since April without any real news other than the DOJ, other than some much better follow through in demand on the new iPhone over other than ASPs on the 18 offsetting the 17 and the fact that this company doesn't need to spend on AI because ultimately it will be the vehicle that serves it up for most people. That's why I own it. And that's why is the idea then.
- [04:32]
Brian Sullivan
That what you just said, is Apple going to be a winner? Because we all have this. Nonetheless, we don't care who the AI bot is, we're going to use it on this thing anyway.
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Tim Seymour
I think until there's something other than a smartphone. And I know there's been some threats of that over the last 18 months from some other people, including people that used to be inside the Apple bubble. But yeah, I think the smartphone is the way that most people will actually be engaging in AI. I think the app community, the developers community, all the places where Apple has an enormous amount of power. I think we still haven't even seen them go there.
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Dan Nathan
Yeah. So not to beat a dead horse, it really is about that 8% of revenue of R and D. Right. Relative to let's say 25% of these major hyperscalers. And even better, right. That they've been spending over the last couple of years. And again, it started out as something. Well, they're behind the eight ball here. They don't have a product that they can actually put on this huge distribution platform. They have basically 2 billion iOS devices out there in the world. And when you think about it right now, I mean Most of the Mag 7 other than Apple and Google are down about 10% from their recent all time highs. So you've seen a little bit of a, I don't know, you know, a dispersion if you will, and a focus on a couple of names that are right now perceived to be the winners and maybe because they actually are attached to the hip in many different ways. Right. So Google pays $20 billion a year for exclusive search on IO iOS devices on Safari. Apple just turned around and paid $1 billion. It's a rounding error to Google to use certain Gemini technology for their new series whenever they launch that. Right. So it's about spend, it's about distribution. And the Apple thing to me is kind of curious that there's so much focus on a company that actually doesn't innovate on this front. Right. Like Siri is a disaster. And we actually have a lot of questions about what they are going to be able to do with this existing platform. But in the meantime, folks seem to be pretty happy about this upgrade cycle. I didn't think we're going to see a super cycle, but we clearly had. Maybe what Tim's talking about is a little bit of a pull forward.
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Brian Sullivan
We'll get more on Google in a second. And Carter, I want to come to you because I want you to look at the chart.
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Carter Worth
What it really is is remember, it's all about where the money wasn't. Apple as you cited is outperforming one month, three months, six months. But Apple since Q4 of 2022 to now, Q4 of 2025 has gone up 85%. The tech sector is up 160. This is one of the biggest laggards in the sector that's simply playing catch.
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Brian Sullivan
Over what time period?
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Carter Worth
Last three years. Okay, right. So the tech sector up about 180 this, up half that. So this is a stock that's lagged, that was out of favor, meaning its relative performance peak was over three years ago. It's simply playing catch up. That's all this is.
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Brian Sullivan
Can we throw up a 10 year chart of Apple? Because I think this will go right to Carter's point. So a fair point, but. Okay, let's go back further. I want to go back 10 years. Apple is a $25 stock 10 years ago. Today $25 stock, it's not 286. It's gone up tenfold in that time. But your argument is in the last three years, not the performer. So how much of this performance do you think Carter is just technical catching momentum?
- [07:39]
Carter Worth
Meaning people know that the other things were quite full. Right? Think about the other big laggard. It was Google. Apple and Google were the huge laggards. It was Matter, it was Netflix, it was Vago, it was, it was in video. And then the two biggest laggards are the ones that have been the best performers.
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Guy Adami
You know, we're talking about 10% EPS growth and I'm probably being a little bit generous there. And we're talking about high single digits revenue growth with margins that have been improving slightly but been flatlining for the last couple of years. I get it's a remarkable, remarkable company. The installed base is historic. However, I think the market is rewarding them in the form of the valuation. So you know, we talk about this when it was a growth stock seven or eight years ago, it was trading at a value stock valuation. Now that it's a value stock, theoretically it's trading with a growth multiple. Something I think has to give at some point.
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Brian Sullivan
You know the comment that Carter made Tim about Alphabet is. And we could maybe throw up Alphabet as well, Google's parent company. It's so interesting because Alphabet's been another name that is just the last couple of months, kind of like just come, I don't want to say come out.
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Tim Seymour
Of nowhere because it's stratospheric. No, but you understood my point.
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Brian Sullivan
I wonder how much of that is just the catch up trade versus looking for a fundamental reason why this is happening.
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Tim Seymour
Well, because Google's core business and search and the existential threat from AI to what They've always done at their core when was that much more extreme than it was for Apple. That's why this parabolic move is that much more extreme than that move of Apple. But both of these, as we've said, were laggards. You can't underestimate that day. And the DOJ took the pressure off of a relationship that as Dan pointed out, is very symbiotic for both sides and very beneficial for both sides. And by the way, the optionality for Apple is that, that, that, that that relationship was carved out, but it doesn't mean that they don't have optionality to go in other places going forward. So they're kind of in a position to be a consumer themselves of the best air trade through the vehicle that we all know, which is this 2.4 billion installed base. So I just think the Google to Apple move is very much reminiscent of the Google Apple pessimism which on the downside was that much more for Google than Apple.
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Dan Nathan
Yeah, I'd say also on the Google they've been building out gcp, right. So that's their cloud business. There are number three behind Azure and us. And so we think about this spend, you know, they're going to actually have this compute this infrastructure that other companies are going to be able to rent. They're going to be able to access the Gemini models. And then you think about, they have three properties. If you think about Android, you think about Workspace and you think about Chrome that have over 3 billion monthly actives. So they're able to distribute all of this technology, the Gemini throughout that. I don't know about you guys. I'm done with chatbots, I'm done with.
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Guy Adami
No, I agree, done with the guy.
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Dan Nathan
Guy had all of, the guy had all of them. He had Claude, he had GPT, he had perplexity. You know, if you use Google products, this Gemini is working really, really well. You're not going to need multiples. And also the other thing about, you know, Gemini, it's going to be throughout this whole system. Folks over the last 25 years have gotten used to searching for free. I don't think chat GPT main revenue driver right now, which is subscription to do searches and obviously to do a whole host of other things is going to be something that has in my opinion a lot of longevity based on the might.
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Brian Sullivan
One of the lead stories, the lead story this morning on cbc.com, you probably saw it was that Sam Altman who runs OpenAI, kind of issued an internal memo, a code red Internally, basically. Like we've got a. We've got a challenge. They've been the leader for three years.
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Carter Worth
Yeah.
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Brian Sullivan
Open AIs, chat GPT kind of strutting around in the. And all of a sudden Alphabet and Google have come out. I don't want to say again, come from behind. But they have. They have come out of semi dormant because people said they were dead.
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Dan Nathan
Yeah, but they all do.
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Brian Sullivan
Dead money.
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Dan Nathan
They all do.
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Brian Sullivan
They've lost the.
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Dan Nathan
Hold on. They all do different things. Right. So Claude from Anthropic, it's a good coding assistant. Right. Gemini works really well on this suite of products that we just described. Right. Chat GPT was that first search experience. Right. Now all of them are moving into images and video and all that sort of stuff. It's my view, and I'm not a technologist, that a lot of these are going to be commoditized right. At the end of the day. So, you know, you can pick your horse right now, but pick the horse that is actually most useful to you and the things that you need it for, whether it's personal or. Or whether it's for professional reasons. Does that make sense?
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Brian Sullivan
I love. Yes. Because I love to use the horse analogy because I was actually going to reference Seabiscuit in the race against War Admiral when it came from behind. But then I realized I don't think.
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Tim Seymour
You can reference Seabiscuit as if it's so common of a reference that people understand what you're saying.
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Brian Sullivan
That's why I didn't do it.
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Tim Seymour
Okay, well, we just did.
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Dan Nathan
It's a great comeback story, though.
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Tim Seymour
Can I just get back to the trade here on Google and Apple? I'm not sure you're chasing these things right here.
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Dan Nathan
Okay.
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Tim Seymour
After a 50% move in Google and after a move in Apple that I'm very happy about, I'm not sure this is time to pile in. I don't think what I'm hearing on this desk is something suddenly changed on the fundamentals. And we all know the valuations are challenging. I think there are two stocks you can be long. And I think what we've established here is that these are two companies that are going to still be strategic and core in the air space for a long time, but this has been one.
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Dan Nathan
Heck of a move.
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Brian Sullivan
Well, let's stay exactly on that because your first guest tonight says you got to put money in the market, of course, but you don't just throw it against the wall of AI and hope that it stays sticks. You have to stay focused. Evan Brown is head of multiasset strategy for UBS Asset Management. You've been very patient. You've been listening to this conversation. Where do we put money right now in AI, given what Tim and everybody here has just talked about good companies, but concerned about valuations and were you.
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Tim Seymour
Lost on the Seabiscuit reference?
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Evan Brown
I was not lost on the Seabiscuit. Great movie.
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Brian Sullivan
Great movie.
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Tim Seymour
And I stand corrected. You know what?
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Brian Sullivan
Sorry. One man doth not a true. It's okay.
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Evan Brown
No, look, I mean, I think what we're seeing right now is really, really encouraging in that it's not everyone throwing all this money at the wall. They. While we're seeing more discerning price action, we're seeing a little bit more like a decline in correlations between these, these names. And so for the market that's been talking about a bubble and this and that, I think what we're seeing is quite healthy. We've seen the hyperscalers. Their correlation has gone from 80% three months ago down to 20%.
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Brian Sullivan
Why?
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Evan Brown
Because we're seeing some, you know, in the, in the Gemini ecosystem that. Doing a little bit better, and you're seeing in the, in the Chatbots ecosystem a little bit. A little bit worse. And so, you know, the market is becoming a little bit more discerning.
- [14:12]
Brian Sullivan
So the idea being, and if I'm hearing you right, for the folks in back, if everybody had just put a bunch of money into all six or seven of these companies, they made a fortune. They made a lot of money the last five years. There are better and more strategic and targeted ways to make money now than doing that.
- [14:28]
Evan Brown
Yes. So I think, you know, what we've seen since Chachi Beat was released is all these names have just, you know, shot higher, some underperforming, some outperforming, but overall, you know, if you own the index, that was, that was enough. But now I think we're turning to an environment where there's. There's more stock selection. This debate that you guys are having right here, I think is an important one, and it's showing that there's going to be a lot more dispersion within these names.
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Guy Adami
Evan, do we spend too much time talking about the Fed? Is it a bit of a sideshow now, or is it as important as people like me make it out to be?
- [15:02]
Evan Brown
I don't think it's that important right now. I think right now the main story is earnings. And, you know, everyone was focused on the, on the Fed and sounding a little bit more hawkish. But in the meantime, we had a Q3 earnings season that was just knock the doors off once. Once again, look, I think the Fed will matter if the labor market deteriorates further. We are seeing it continue to cool. It's not unraveling yet. And so then we'll become a little bit more focused on the Fed. But over now, I think right now I still think the story is just earnings and them remaining strong.
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Dan Nathan
So I'll go back to the thing, right, so you just mentioned the term dispersion, right. In the public markets. But there's a pocket of risk that I don't think is properly appreciated. And that's like a name like OpenAI, right. So you have this Code Red you just talked about. Now, Sam Altman, when he puts out that memo, he knows it's going out to the world. So let's be really clear about that, his intentions, who know. But if you think about all of these private companies that are chasing after the same thing, which is AGI, right, there's probably $1 trillion worth. Where do they raise all that money from VC? Where do they raise all that money from? Pension funds and insurance funds. There's. So my opinion there's a pocket of risk that is not being appreciated. If you ever got real marks after a Code Red, after you see what all the customers of Open Air and all the interchangeable, if they get marked down, then a lot of those folks who have these investments in private markets, what do they have to sell? They sell the things that are liquid. Do you see something coming in 2026 where all of this circular investment in everyone else, maybe you see air come out of the private markets which causes some sort of, I don't know, some in the public markets.
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Evan Brown
Yeah, I mean, I think there, there's pockets of excess in the private markets. There's also pockets of excess in the public markets as well. And we've seen that. And you know, whether it's, it's crypto or quantum, all these things coming down to earth. And so I think they're kind of public market proxies for, you know, excess and speculation. No doubt it's happening in private markets as well. And there can be winners and losers in this game.
- [17:03]
Tim Seymour
Evan, real quick, where's the consumer? Are you allocating and are you thinking about places in retail and discretionary, which there's argument on both sides of the fence here?
- [17:11]
Evan Brown
Yeah, I mean, UBS just had a conference today on the consumer. And really what we're hearing is that the consumer is doing a lot better than what you're actually seeing in the macro data, this is what we're hearing from, from companies. And so you know, we still have this split between those better off and the low income consumer. But coming into next year we'll have the tax rebates coming through. I think that'll support the consumer. And I think also just the politics are shifting in a way that tariffs are probably going to be actually coming down and that there's all this focus on affordability. We might see the effect of tariff rate actually coming down next year as opposed to going up.
- [17:50]
Brian Sullivan
Evan Brown of ubs, Evan, really appreciate your views. Thank you very much. Very quickly, Guy Evan talked about tariffs coming down. There is a chance if it's up to the Supreme Court, tariffs go away and then like Costco suing today and we'll talk about it in a second with Eamon Javers, there might actually be a lot of money coming back to companies which could pop eps.
- [18:09]
Carter Worth
Yes.
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Brian Sullivan
If the Supreme Court rules terror is.
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Guy Adami
Legal, a lot could happen here. Like what does it mean? What does it do to inflation? What does it do to the broader. There's a lot of unknowns. I don't know if it's a good thing or a bad thing. By the way, Evan Brown, who has now left the set, attended and graduated, oddly enough, Brown University.
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Tim Seymour
Brown University, yeah.
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Guy Adami
No, it's, I mean it's beautiful the.
- [18:32]
Tim Seymour
Kind of stuff you learn here on fast.
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Brian Sullivan
No.
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Tim Seymour
1 otherwise.
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Dan Nathan
Well, here's the other thing on the EPS front of Seabiscuit or Brown University.
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Guy Adami
Let's sell part of it at Brown.
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Dan Nathan
Let's bring it back. Bring it up.
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Tim Seymour
The horse was brain too.
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Dan Nathan
This is, you know what, so this tax bill, you remember this, this BBB thing, you know, that was put through earlier in the year. I mean that's going to be a huge, I think tailwind obviously for eps. So if you also have this issue with the, you know, I mean, listen, at the end of the day politically, one of the best things that could happen for the Trump administration is the Supreme Court striking these things down and then seeing that tailwind from obviously the tariffs and the money coming back and then obviously, you know, the benefit of the tax.
- [19:09]
Tim Seymour
Did you order the code red, the.
- [19:11]
Brian Sullivan
Protest, the pro Trump view from, from Dan Nathan over here.
- [19:14]
Tim Seymour
Yeah, well, sorry, I was thinking about Colonel Jessup for a minute.
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Guy Adami
That was tremendous.
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Brian Sullivan
Colonel Mustard in the library with the candlestick. In the meantime, President Trump holding a cabinet meeting earlier today. Amy Javors has the latest from the White House. Also talking all day about what we just talked about Eamon, of course, tariffs.
- [19:32]
Guy Adami
Yeah.
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Dan Nathan
Hey there, Brian. There was this, you know, burst of attention back on Sunday when President Trump told reporters that he decided on a Fed chair and a lot of speculation that we could see that announcement coming this week. But in this Cabinet meeting this afternoon, the president said even though he's down to just one name for Fed chair, he won't name that official until early next year. So no announcement coming this week. And on a separate economic issue, the issue of affordability that's been motivating voters at the polls this fall, the president bristled when he was asked a question about whether the American people are getting impatient with high prices. Here's what he said.
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Brian Sullivan
You talk about affordability is going forward. Are the American people, do you believe, getting impatient with the reforms that you're making? They've talked about it's about, I think they're getting fake news from guys like you.
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Carter Worth
Look, affordability is a hoax that was started by Democrats who caused the problem of pricing.
- [20:32]
Dan Nathan
So the president there dismissing the whole political issue of affordability as a hoax ginned up by Democrats who were to blame in the first place. He's taking a risk in doing that. Of course, with midterms coming up next year and Democrats really building their campaigns on the idea of prices for just about everything in America are too high. In the end, voters are going to decide which party they trust the most to lower those prices. Brian, back over to you.
- [20:56]
Brian Sullivan
All right, Amy Jabers at the White House. Amy, you've had a long day. Appreciate it. Thank you very much. All right, folks, there is a lot going on right now. Coming up here on Fast Money. We're going to get results that are moving. CrowdStrike, Marvell and more. Plus, all today's fast movers, the big bitcoin bounce back, the surge in Mongo, DP and why Boeing suddenly. Tim, flying high again. Yes, Brian, all that when Fast Money returns. The heaviest metal credit card of all time, rumored to be one of only 18 in existence, plated with the very.
- [21:36]
Tim Seymour
Same tungsten that forged the International Space.
- [21:38]
Brian Sullivan
Station and wielded at business dinners like a samurai sword. It's a classic corporate power move. But the real power move, having end to end visibility on your most critical shipments, FedEx. The new power move, Sling is the.
- [21:59]
Dan Nathan
Live TV service that puts you in charge.
- [22:02]
Brian Sullivan
Choose your plan.
- [22:02]
Tim Seymour
Orange for sports and entertainment favorites, blue.
- [22:05]
Guy Adami
For news and reality.
- [22:06]
Dan Nathan
Or select for the essentials. Only pay for the stuff you actually watch and pause your subscription anytime. Because paying for TV or not watching that's just rude.
- [22:15]
Tim Seymour
No long term contracts, no nonsense. Pick your plan, add what you want.
- [22:20]
Dan Nathan
Sling lets you do that. Visit sling.com to learn more.
- [22:24]
Sempra Energy Announcer
The world runs on energy. And as demand increases, Sempra is rising to help meet the challenge. Through our Texas and California utilities, we're investing billions to help power these booming economies. We're building tomorrow's energy infrastructure today, modernizing one of North America's largest energy networks with next generation technology to power the everyday lives of nearly 40 million people. That's positive energy. Learn about Sempra's financial results@sempra.com investors.
- [22:56]
Brian Sullivan
All right, welcome back. It is time now for an earnings alert. We've got one on Crowdstrike stocks not really moving much. Down a touch. It posted top and bottom line beats the CrowdStrike conference call kicking off at the top of the hour. The Seema Modi here with more on the details. Sima.
- [23:11]
Seema Modi
Hey, Brian. CrowdStrike CEO George Kurtz reinforcing this idea that the company is becoming a key enabler of securing AI with the right architecture and how that is driving enterprise adoption. There's two metrics that really illustrate this in the earnings report. Third quarter annual recurring revenue and subscription sales, both beating estimates with its fourth quarter guide coming in higher than analyst consensus. I guess the question now is how much of this growth story is priced in which shares up about 130% from that August 2024 low, outpacing its peers in the cybersecurity space. Wall street remains bullish with 27 buys. Wells Fargo has a $550 price target and analysts there, they remain focused on how CrowdStrike plans to make security fully autonomous and how its acquisition of Pangea, which secures AI agents, is being integrated across the entire stack. That's a big question going forward. Brian.
- [24:03]
Brian Sullivan
Seema Modi. Seema, thank you very much. Dan. Nathan. CrowdStrike stock's not moving right now. I know it's very, very early thoughts macro CrowdStrike.
- [24:11]
Dan Nathan
Yeah, I mean this is something and we've talked about this name going back to two summers ago when they had that huge leak or what was it Guy, what was that thing? It was a hack, not a leak. You can see how you get those mixed up. But, but again, this is a company that has always traded at a multiple and you know, one that's kind of uncomfortable. So you better believe, I guess in the fact that we're going to keep getting hacked one way or another. And it just seems like a space where folks come back to because of the demand across so many different industries. So to me, the fact that it's not moving, I think was an 8% implied move in either direction is pretty fascinating.
- [24:43]
Tim Seymour
I think buy side expectations on this were pretty reasonable going into this and therefore you could have set up for a disappointment. You could also have been picking on the valuation for the last five years in this name and trading at 20 times sales. It's something that I think the growth rate sustainable. I think as we talk about the different pockets of where people are spending and aren't going to stop. Stop spending. This is one of them.
- [25:05]
Brian Sullivan
One of the. It's. It is amazing to me though that you had one of the biggest hacks of, of all time happen to CrowdStrike. I mean, it literally shut down airlines.
- [25:14]
Guy Adami
Yeah.
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Brian Sullivan
And this like it mattered for a.
- [25:17]
Guy Adami
Day, longer than a day.
- [25:18]
Brian Sullivan
But yeah.
- [25:20]
Guy Adami
No, no. But yeah.
- [25:20]
Brian Sullivan
Point.
- [25:21]
Guy Adami
They were in the penalty box for quite some time. But then you come to the realization that, wait, this is a pretty remarkable SaaS business. And you look at the, look at the revenue growth chart. I don't know if our crack staff can put it up, but it's a thing of beauty. And now you're talking about 22% revenue growth year over year. And yet the valuation is ridiculous. But you know, this is one in the space probably behind Palo Alto. But I think you stay with the.
- [25:43]
Brian Sullivan
Name, Stay with the name. All right, we've got, we're going to stay on the chips. We got another earnings alert, this one on Marvell Technologies. It reported earnings, it reported revenues. They both slightly beat Wall Street's primary estimates. Shares though initially lower, but now for some reason sharply higher. We brought in Christina Parts and Evolis to tell us what that reason for the reversal may be.
- [26:06]
Seema Modi
Part of that has to do with them guiding their data center revenue. So data centers contribute roughly 73% of total revenues. This according to management. On the call, they said the revenue is going to be up 25% in fiscal 2027, which ends January 2027, not counting any revenue from Celestial AI. So they also announced in their press release that they're going to be acquiring Celestial AI for about $3.25 billion. They said on the call that they would not be taking out any extra debt to fund it. They have a strong balance sheet. I know that is very topical in this day and age. So that's point number two. And we can talk about what Celestial AI does if you want. Third one is the custom business. And this is where they compete with Broadcom. They said on the call that the customer revenue forecast. They've already seen a transition to their next generation AI chip with a large customer. They didn't name the large customer, but that customer. There's already been purchase orders for the entirety of next fiscal year's current forecast for this next generation program. In other words, somebody's bought a bunch of next generation AI chips, custom AI chips, a big company. So this could be perceived as a win for the firm and this data center growth also.
- [27:14]
Brian Sullivan
Fair point, but Tim Seymour stock is asking acting Marvell us right now. But I will say it was $124 stock at the beginning of the year. It's popping to 107. I'm not a math whiz, but 107 is below 124. The stock's not been a hot performer this year is my take.
- [27:33]
Tim Seymour
No, but I think it's the expectations here were, you know, something like 18 to 20%. And I think the delivery of that is something that's not only a big relief, but I think it really does show that there is growth that's relative to the valuation. So we've seen a ton of volatility in this space and I do think that's warranted given where things have been moving around. But this reaction based upon expectations going into the numbers, to me, totally expected.
- [27:59]
Brian Sullivan
Is it just me, Carter, Are we seeing more big companies and Marvell is a big company have these 10 and 20% moves on earnings? It just feels, it feels that way.
- [28:09]
Carter Worth
But historically you see typically when something is such an outsized beat or miss, it's 10 to 20%. For instance, if you look at the 50 analysts that cover this stock, their 12 month price target is $93. It's printing one of seven right now. So all of them will raise their price targets tomorrow morning in response to the price. But Wall street doesn't expect much of this. This kind of thing is what you get when people are caught sort of offsides.
- [28:35]
Seema Modi
Interestingly, the CEO in September bought $1 million worth of stuff stock and the stock has gone up ever since then because people are wondering what did he, what does he know that we don't and I guess now we can see as an example is a datacenter win with their new custom design and celestial AI.
- [28:51]
Dan Nathan
And this goes back to some of the excitement around Metta obviously, or not obviously, but potentially buying these TPU's from, you know, from Google, which would be competitive to Nvidia. But when you look at Marvell and you look at their expected revenue this is $9 billion in fiscal 2027 and that is a rounding error on the 200 billion that Nvidia is going to book this year and possibly 300 billion. So when you want to kind of make that argument about competition coming for Nvidia, Marvell is not part of it. And yes, I get it. Metta, Microsoft, Amazon, Google, they're all their largest customers. And to K parts point is like one of them are probably this customer, one of those big hyperscalers and they're trying to get a second source from Nvidia or a third source, that sort of thing. But right now I think Nvidia is probably more worried about TPU's and more worried about what Broadcom is doing with some of their biggest customers.
- [29:35]
Brian Sullivan
But they're in there.
- [29:36]
Seema Modi
But Marvell, I wouldn't discount like I understand that this is no major threat to Nvidia, but it's part of the greater conversation that the customer market is getting stronger and stronger. You have various examples like you said, Google and we know Broadcom has been in the game for quite some while. Broadcom, Marvell doesn't compare in size, but I do think it's something to take of note because then that would take away from the magnitude of beats from for Nvidia and that's all investors seem to care about.
- [30:03]
Brian Sullivan
Christina, thank you very much. Marvella. 15%. All right. Going from AI to crypto because we had a big crypto comeback for Bitcoin and others today. We'll also talk more about the shares. A surge in Mongo DB and the delivery promises giving Boeing a big boost lately as well. It is 530 here on the nose on the east side coast. You're watching Fast Money live from the NASDAQ market site. We are back right after this.
- [30:30]
Guy Adami
Jazz hands, everybody.
- [30:32]
Tim Seymour
Jazz hands.
- [30:38]
Brian Sullivan
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- [31:08]
Sempra Energy Announcer
The world runs on energy. And as demand increases, Sempra is rising to help meet the challenge. Through our Texas and California utilities, we're investing billions to help power these booming economies. We're building tomorrow's energy infrastructure today, modernizing one of North America's largest energy networks with next generation technology to power the everyday lives of nearly 40 million people. That's positive energy. Learn about Sempra's financial results@sempra.com investors buy.
- [31:39]
Tim Seymour
The dip with Pro's best deal of.
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Brian Sullivan
The year, including exclusive access to Pro Live events. This is my first time at the.
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Tim Seymour
Stock exchange and it's been awesome.
- [31:48]
Brian Sullivan
Go pro@cnbc.com ProBlackFriday terms and restrictions apply. All right, welcome back to fast money. It is December 2nd. We had kind of a lousy December 1st. Stocks rebounding after yesterday's pullback today. The dow jumping nearly 200 points. The S and P up a quarter of a percent now just about 1% away from its record high because we're actually up six of the last seven sessions. The NASDAQ leading the gains up more than half a percent. Inside the market, shares of American Eagle, the clothier jumping after hours up more than 10%. They topped earnings, they topped revenue estimates and they raised their forecast after the, yeah, Sydney Sweeney ads. Guess what? They brought in a lot of business in the meantime. Mongo DP, DB whatever. Surging more than 22% during the regular session. That on the back of yesterday's earnings report. Apparently software provider lifting its forecast on its cloud database platform. It's gaining tractions with customers. MongoDB up 22.23%. And we had a big bounce in crypto. Bitcoin climbing back above 93,000 after posting its worst day since March on Monday. Other crypto currencies like a theorem, Solana Ripple also jumping as well. Bitcoin was at $80,000 two weeks ago. Meantime, shares of Procter & Gamble nearing two year lows. The CFO giving a warning about consumer spending at a major conference this morning and described the American market as the most volatile he has seen in a long time. Pretty, pretty big words for a consumer products company that pretty much everybody uses or at least sees in the marketplace. And a major move in Boeing today, shares jumping 10%. Its CFO saying the company expects higher 737 and 787 deliveries next year as well as free cash flow growth in the low single digits. Tim Seymour, you've been on the Boeing story for a long time. This has been quite a comeback as.
- [34:02]
Tim Seymour
Well. And like the volatile consumer the P and G CFO was referencing, this has been not a name that hasn't been all over the place but the middles or the high single digits. Maybe they are even a little more conservative than that. Free cash Flow growth next year on top of the expectation that you get the 7, 3710 max 10 recertification. These are huge, huge events for Boeing. So I just. You hang in there and you hang in there and you hope that new management team better attention to detail. Obviously a different relationship with their regulator and one that seems to be much less arrogant, much more focused on whatever we have to do. Right. Are part of the reasons why this is a multi year holding of mine and one I think, you know, I expect we're going to be in this trade for a.
- [34:45]
Brian Sullivan
While. Quickly, guy, can we go back to P and G? Throw that up. I know we got to go, guys. These are concerning the world's biggest.
- [34:51]
Guy Adami
Consumer. Essentially one of the most important consumer products companies. CFO saying things and he's probably sort of pulling the reins a little bit. But when you hear comments like that, it makes you say Seabiscuit. No, it didn't make me think. Or say.
- [35:03]
Tim Seymour
Seabee. You said pulling the reins. Oh, oh, I see what you did.
- [35:06]
Guy Adami
There. See what I did there? I didn't even think of.
- [35:08]
Brian Sullivan
It. Back in the saddle. All right.
- [35:09]
Guy Adami
Coming. Which by the way is a great Aerosmith.
- [35:12]
Brian Sullivan
Song. Coming up, a few months in Energy, but the chart master here, Carter Worth. Carter Worth says the sector is at a major inflection point. We'll talk about where the energy may be heading when Fast Money returns. All right, welcome or welcome back to Fast Money. The S and P energy sector is up 18% since April low this year, but still underperforming the broader market. However, the chartmaster says energy may be reaching an inflection point and it could be higher from here. Carter Worth looking at the charts on Energy.
- [35:51]
Carter Worth
Now. Let's get right to it. So we've got five identical charts. The first, as is always the case, has nothing on it. Now let's put some things on it. The next shows converging trend lines. We've reached a point where something is likely to happen. My judgment is up, but let's take it back a little further. The next you'll see is a longer term chart. Again, this is one of the biggest winners over the preceding three years, only to stall and been sideways for the last two and a half. Let's take it back even further. And here is that same circumstance. We're coiling for something to happen. We're essentially where we were 10 years ago, last iteration. And you'll see that essentially the sector is the exact same level it was in 2000, basically a decade ago. So the question Is is the entire S&P 500 sector, which is only 2.83% of the S and P worth more or less than it was 10 years ago? My hunch is it's worth more. That's what causes a.
- [36:54]
Brian Sullivan
Breakout. The idea being that while the weighting in The S&P 500 may be less than it was because it was.
- [37:01]
Carter Worth
14% about five years ago and fit as high as 30 and 80.
- [37:04]
Brian Sullivan
82. Wow, great, great poll there by you. But I would expect nothing less. The argument is that why is it such a small part of the market when now thankfully we're talking about energy of all kinds every.
- [37:16]
Carter Worth
Day. Yeah. It's just there's no growth. If you think about over the past 10 years, the sales are about the same as they were a decade ago. The net income is about the same. But I would say there's probably. If you were to look at valuation, which is a terrible timing tool, price to book is.
- [37:32]
Guy Adami
Lower. Real quick I look at. Oh, I think it's about to break through a three year downtrend. You look at Howard Burton and Schlumberger to the biggest components of said oh appearing to make a bearish to bullish reversal. I'm with Carter on this and valuation, as Carter said, it's not a timing tool but at least it's not in your face right now. It's actually pretty.
- [37:50]
Brian Sullivan
Compelling. It is amazing that the things that are going to power a lot of the stuff we talk about every day have not had anywhere near the.
- [37:58]
Tim Seymour
Returns is the other than the presumption of nuclear being a big part of it. And you know it is fascinating and I would just adding to the OI and to what Carter just said about the chart. I mean the oh relative to the S and P has been basing and sideways now since all the way back into May, which to me tells me that, you know, again, drillers, offshore drillers, hardly sexy here, but.
- [38:18]
Brian Sullivan
Interesting. You know I'm going to be here tomorrow night and there's a new.
- [38:21]
Guy Adami
Etf. Oh, wait a second, is that breaking.
- [38:23]
Brian Sullivan
News? That is breaking.
- [38:24]
Guy Adami
News. We're excited about you excited.
- [38:26]
Brian Sullivan
Tim? Negative.
- [38:28]
Tim Seymour
Against. We're getting. We're getting the sequel of Seabiscuit.
- [38:31]
Brian Sullivan
Tomorrow. It's called Secretariat. All right, coming.
- [38:33]
Guy Adami
Up. Nothing to do with these going.
- [38:35]
Brian Sullivan
Further. How do you know they're not related? Are you. You a bloodstock.
- [38:42]
Dan Nathan
Agent?
- [38:43]
Carter Worth
Whoa.
- [38:43]
Brian Sullivan
That's. You know what that was tough words. I can never take that back. Coming up, we're going to talk about giving back at a time when A lot of people needed as well. A great, great charity, great leader. Next. Welcome back to Fast Money where it is giving Tuesday. The global philanthropic movement started back in 2012, and last year helped raise $3.6 billion for charity. Your next guest is the CEO of a company whose goal is to help some of the world's biggest companies push their philanthropic donation dollars even further by just being smarter about how they do it. Groundswell CEO Jake Wood joining us now here on set, teaming up with a pair of big banks. Jake, good to have you on set. Really appreciate that. So how, how does software and charity come together? How do you help and encourage companies to do more with their money through.
- [39:39]
Jake Wood
Software? Well, first, I think most employees today are looking for their companies, the companies that employ them to do more than just drive profits. People are looking for purpose in and out of work. And so I think the companies that are looking to best compete in that talent war are meeting that expectation. What we're trying to do with Groundswell is to build a platform that allows companies to empower their employees to give back, whether that's their time, their talent, or their treasure. Specifically, we're doing that through donor advised funds, trying to make these tax advantage giving accounts, an employee benefit more accessible to the everyday.
- [40:11]
Dan Nathan
Employee. All right, great founder. I met Jake, though, prior to. To.
- [40:15]
Jake Wood
Groundswell.
- [40:15]
Dan Nathan
Yes. And you got a story that started out with giving back in many different.
- [40:20]
Guy Adami
Ways.
- [40:20]
Dan Nathan
Right. You were in the Marines and then you started Team Rubicon. And I think a lot of folks who are watching this know what amazing organization that is. Talk to us a little bit about the through line from being the CEO and starting a firm or an organization like Team Rubicon and then moving into, let's say, founding a company like.
- [40:36]
Jake Wood
Groundswell. Yeah, I'd say service has always been at the core of what I've wanted to do in life. And that started with serving in the Marine Corps. After college, I served in Iraq and Afghanistan with the Marine Corps. You know, tremendous experience serving my country. Following that, I actually accidentally started a nonprofit organization after the Haiti earthquake called Team Rubicon. Does disaster response, humanitarian relief work, mobilizing military veterans to serve communities before, during, and after disasters. And I ran that for 11 years. The organization is thriving today. Over 200,000 volunteers, over a thousand disasters and crises we're seeing responded to. But about four or five years ago, I decided I was ready for that next, that next entrepreneurial adventure. Decided to start Groundswell and raise venture capital Money back in 2021, really just looking to disrupt corporate philanthropy and Identify how we can unlock more generosity from these companies so we could drive more impact where people live and.
- [41:27]
Brian Sullivan
Work. You know, it's all about teamwork too. You came from University of Wisconsin, played on the football team. There go Badgers. You join the Marine Corps. Amazing work. All about team, right? Literally you're keeping your partner alive. He or she is keeping you alive. You join Team Rubicon. You created that. What can corporate America do better to become more efficient, like a team, One of those teams that you've been on to succeed. Because a lot of companies we talk about around this table, they don't operate like.
- [41:54]
Jake Wood
Teams. Well, I think one of the things that we're seeing as a trend specifically in how companies give back, you know, historically companies have said, hey, this is what matters to the CEO. So we're going to cut a big check to this.
- [42:05]
Carter Worth
Organization.
- [42:06]
Jake Wood
Bingo. And this is really about how do we democratize what companies are supporting by empowering employees to support what matters to them. Then having, having companies double down on that by matching those donations, you know, to really demonstrate, hey, what you care about, we care about.
- [42:21]
Guy Adami
Too. Well, Jake, thank you for everything, number one. Number two, tax reform, charitable contributions. That has, one would think that's going to sort of serve you well moving forward. Is that something you pay attention.
- [42:32]
Jake Wood
To? We're paying a ton of attention to this going into 2026. You know, the one big beautiful bill I, I don't think I know has a bunch of implications for charitable giving. You know, a new 1% floor threshold for corporate tax deductibility. Never seen that before. So I think there's going to be a lot of pressure, particularly on small and medium sized companies. Their margins have already been compressed with tariffs. Are they going to be able to eclipse that 1% floor to continue to get that deductibility? I think we're waiting to see.
- [42:58]
Tim Seymour
What that looks like real quick. We want to get the captains of Jake's team right here. I can tune in on.
- [43:03]
Dan Nathan
These. They're all.
- [43:04]
Jake Wood
Girls. All right, Love you.
- [43:06]
Tim Seymour
Girls. Look at that. By the way, with the changes to the big beautiful bill and the focus on tax DAFs. So donor advised funds are becoming a big deal and it's a great way to do well by doing.
- [43:17]
Jake Wood
Good. Yeah, it's a huge part of the strategy. I mean, the opportunity to, to run what's called a bunching strategy, where you're pushing multiple years of donations into a tax advantaged fund, taking that immediate deduction, eclipsing that floor, giving that money out in subsequent years, a Huge.
- [43:32]
Brian Sullivan
Opportunity. Great stuff. Glad to come on here Giving Tuesday. It's an important day to be here. Hope companies all around the country and world really are looking at their giving strategy. Jake would do appreciate that. Thank you very much. Right, coming up back to the markets, what happened to Costco, right. We all talk about the company, the retailers kicking, you know what but yet Wal Mart stock is kicking its. You know what more about Costco, Wal Mart and more right after this. Costco today joining the dozens of companies that have sued the Trump administration, they want money back from the impacts of tariffs. In their filing on Friday, Costco claimed it is no guarantee it will get its money back even if the Supreme Court does rule that the tariffs are illegal. But tariffs are not the only issue around Costco. Costco, great company, a lot of people shop there. But the stock's been underperforming. Its biggest competitor Walmart up just fraction this year. Walmart Dan, at all time highs.
- [44:36]
Dan Nathan
Makes new highs every day. And you know Wal Mart, you know from a business standpoint you think they're kind of similar, right? They both trade at kind of interesting multiples that are higher than the market. And you know you look at Costco and as Carter would say it was kind of godlike for the last few years and now it's rolling over, it's down 15% from those recent all time highs. And you say to yourself this sort of headline that just came out today a week before their earnings, what are they kind of setting up for? So this one is really curious to me. It's especially when you think about what the Proctor CEO just said. Costco is the second largest holding behind Procter in the xlp, the consumer staples etf. So this one very curious to me what they're going to have to say about a consumer and how the stock reacts.
- [45:13]
Brian Sullivan
Next. Great points and referencing some cautious comments on the consumer from the CFO of Procter and Gamble. Up next, it is your final trades. All right Tim, kick off final.
- [45:34]
Tim Seymour
Traits. Brian, great having you. The B in Sea Biscuit is.
- [45:37]
Carter Worth
Boeing Carter Alcoa a stealth.
- [45:41]
Brian Sullivan
Sleeper. Buy it.
- [45:43]
Dan Nathan
Dan. Yeah, it looks like Netflix is not going to win this little lottery for Warner Brothers. That stock probably pops over the.
- [45:49]
Brian Sullivan
Next couple weeks if they don't.
- [45:50]
Guy Adami
Win. Guy Jake Wood for those playing guy's a stud. Yeah, I mean not only is he a stud, I mean he's a tall good looking.
- [46:00]
Brian Sullivan
Badass. Good shot too.
- [46:03]
Guy Adami
Sniper. I didn't know that. But isn't it nice to have him on set? We'll take a picture with him in a few.
- [46:09]
Brian Sullivan
Minutes. Adorable girls too. Those are.
- [46:10]
Guy Adami
Cute. Adorable. SLB Yes I do. We'll see you tomorrow Brian. I mean, lose the attitude.
- [46:16]
Brian Sullivan
Slb. Alright folks, thank you very much for watching Fast Money. I might see you tomorrow night. Mad Money starts right now. 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 the World.
- [47:05]
Sempra Energy Announcer
Runs on energy and as demand increases, Sempra is rising to help meet the challenge. Through our Texas and California utilities, we're investing billions to help power these booming economies. We're building tomorrow's energy infrastructure today, modernizing one of North America's largest energy networks with next generation technology to power the everyday lives of nearly 40 million people. That's positive energy. Learn about Sempra's financial results@sempra.com investors.