Changes In The Housing Market… And Fears After Netflix Earnings 7/22/25

Summary

Podcast Summary: CNBC's "Fast Money" – Changes In The Housing Market… And Fears After Netflix Earnings (07/22/25)

Introduction

In the July 22, 2025, episode of CNBC's "Fast Money," host Melissa Lee engages with a panel of top traders—Tim Seymour, Karen Feiderman, Dan Nathan, and Guy Adami—to dissect significant market movements and economic developments. The episode primarily focuses on the booming housing market amidst potential tax policy changes and analyzes recent earnings reports from major corporations like Netflix and Texas Instruments. Additionally, the show delves into the volatility surrounding meme stocks and the ongoing performance dynamics within the semiconductor sector.

1. Housing Market Surge and Tax Policy Proposals

Homebuilder Stocks Soar

The episode kicks off with a robust performance in the housing sector. The ITB Home Construction ETF surged nearly 8%, reaching its highest level since February, propelled by impressive earnings from Dr. Horton and Pulte Group. Specifically, Pulte Group's shares rose over 11%, marking their best day in nearly three years, while Dr. Horton saw a 17% increase—their best day since 2009.

Potential End to Capital Gains Taxes on Home Sales

Amidst this surge, President Trump indicated consideration of a proposal to eliminate capital gains taxes on home sales—a move that could significantly impact the housing industry. Melissa Lee introduces Amy Jabras from the White House to provide insights into this proposal.

Key Insights:

• Amy Jabras ([02:23]–[04:47]): Clarifies that the proposal is still under consideration and faces considerable hurdles in Congress. She emphasizes, “If the Fed would lower the rates, we wouldn't even have to do that,” highlighting the administration's interest in stimulating the housing market through tax incentives.

• Karen Feiderman ([05:22]–[07:41]): Criticizes the proposal, arguing it disproportionately benefits high-priced homeowners. “The average price of a home in America is like a half a million dollars... this only affects about 8% of homes,” she states, suggesting it could further reduce housing affordability for first-time buyers.

• Tim Seymour ([06:19]–[07:07]): Draws parallels to past political proposals, mentioning, “Remember during the campaign when the Harris team thought of a $25,000 cash for anyone buying a new home? Now that seemed highly inflationary.”

Current State and Future of the Housing Market

Darrell Fairweather, Chief Economist at Redfin, offers a broader perspective on the current housing landscape.

• Darrell Fairweather ([12:31]–[14:11]): Notes a shift towards a buyer’s market with increased listings and more negotiating power for buyers, especially in regions like Florida and Texas. “Sellers are waking up and realizing they need to meet buyers where they're at,” he explains, indicating potential price adjustments facilitating more transactions.

2. Impact on Home-Related Stocks

Despite the positive movement in homebuilder stocks, panelists express caution regarding the overall sector.

• Dan Nathan ([08:12]–[09:30]): Highlights that while earnings from companies like Pulte provided a temporary boost, underlying indicators such as declining mortgage applications suggest the sector isn't fundamentally strong.

• Karen Feiderman ([14:13]–[15:42]): Emphasizes the limited impact of tax cuts on housing affordability and expresses skepticism about the administration's ability to implement meaningful tax reforms in the near term.

3. Texas Instruments Earnings and the Semiconductor Sector

The discussion transitions to Texas Instruments (TI), which reported mixed results.

• Christina Parts Nevelis ([18:07]–[20:45]): Details TI's performance, noting that despite beating EPS and revenue estimates, the stock plummeted 11% due to concerns over the automotive sector and ongoing supply chain disruptions. “Automotive is not recovered yet,” she remarks, indicating persistent challenges.

• Market Reaction: The broader semiconductor sector experienced declines, with prominent players like Micron, Broadcom, and Nvidia also suffering losses amid reports of OpenAI and SoftBank’s Stargate partnership facing delays and scaling back plans.

4. Meme Stocks: Kohl’s and Potential Candidates

The episode explores the volatile nature of meme stocks, spotlighting Kohl’s recent dramatic price movements.

• Kohl’s Surge ([27:10]–[29:32]): Kohl’s shares surged nearly 40%, driven by a short squeeze as the stock had been the most shorted in the U.S. The rapid price increase led to trading volumes approximately 30 times the average daily volume, triggering market halts due to volatility.

• Potential Meme Stock Candidates:

  • Wayfair ([29:35]–[30:21]): Identified as a potential meme stock with a short interest ratio of 5.7 and shares up 150% over the same timeframe. Increased call volumes suggest speculative trading activity, although Karen Feiderman expresses caution, noting, “This is a dangerous game.”

5. Cryptocurrency vs. Precious Metals: Ethereum and Gold

The panel discusses the contrasting performance between Ethereum and gold, with insights from Carter Braxton Worth of Worth Charting.

• Ethereum's Outperformance ([40:58]–[42:09]): Ethereum has surged almost 40%, significantly outperforming gold's under 5% gain. However, Carter recommends harvesting gains in Ethereum and reallocating to gold, citing, “Gold is on the verge of a breakout after its 45-year adjusted all-time high.”

• Gold’s Potential: Panelists agree on the strategic advantage of gold, considering its resilience and the recent performance of gold miners like Newmont Mining.

6. Defense Stocks Earnings: Lockheed Martin vs. Northrop Grumman

The episode contrasts the earnings reports of major defense contractors.

• Lockheed Martin ([43:22]–[44:04]): Reported a $1.6 billion loss due to underperforming defense programs, leading to a stock decline to its lowest level in nearly two years.

• Northrop Grumman ([43:43]–[44:50]): Conversely, Northrop reported strong demand for military aircraft and defense systems, resulting in an all-time high for its stock and an uplift in profit forecasts.

7. Netflix Earnings and Future Concerns

A significant portion of the episode is dedicated to analyzing Netflix's recent earnings report and the evolving concerns from industry experts.

• Tom Rogers ([32:54]–[37:56]): The former NBC Universal executive expresses growing concerns about Netflix's engagement metrics. “The amount of viewing per viewer has gone down,” he observes, comparing Netflix’s 8% streaming share to YouTube’s 12.5%. Rogers warns that while Netflix remains a valuable media company, declining engagement could hinder future growth.

• Impact of AI on Content ([35:55]–[36:07]): Discusses the dual-edged nature of AI for Netflix. While AI can enhance targeted advertising and reduce programming costs, it may also enable YouTube creators to produce more professional content, potentially eroding Netflix’s market share.

• Panel Reactions:

  • Dan Nathan ([37:50]–[39:29]): Critiques Netflix's valuation, describing it as "ludicrous," yet acknowledges its operational strengths.

  • Karen Feiderman ([39:29]–[43:05]): Highlights YouTube’s substantial watch hours and suggests that AI advancements could exacerbate competition, impacting Netflix's performance.

Conclusion

The episode of "Fast Money" provides an in-depth analysis of the dynamic housing market influenced by potential tax reforms, the volatility within the semiconductor and meme stock sectors, and emerging concerns over Netflix's engagement metrics in the face of evolving digital competition. The panel offers diverse perspectives, balancing optimism with caution, and underscores the interconnectedness of tax policies, market sentiment, and technological advancements in shaping investment strategies.

Notable Quotes:

• Amy Jabras ([02:47]): “If the Fed would lower the rates, we wouldn't even have to do that.”

• Karen Feiderman ([05:22]): “If you're going to roll into a higher priced home and you think that you're not going to have taxes, I don't think it really does anything for affordability.”

• Darrell Fairweather ([12:31]): “Sellers are waking up and realizing they need to meet buyers where they're at.”

• Tom Rogers ([33:14]): “Engagement is what drives everything here.”

• Dan Nathan ([37:56]): “The valuation's hard and I'm long.”

Timestamp Highlights:

• Housing Policy Discussion: [02:23]–[05:22]
• Texas Instruments Earnings: [16:52]–[21:18]
• Meme Stocks Analysis: [27:10]–[31:09]
• Cryptocurrency vs. Gold: [40:58]–[42:36]
• Netflix Concerns: [32:54]–[37:56]

Final Thoughts

For investors navigating the complexities of today's markets, this episode underscores the importance of staying informed about policy changes, sector-specific earnings, and emerging technological trends. Whether it's the potential tax reforms affecting the housing market or the competitive pressures on streaming giants like Netflix, "Fast Money" provides valuable insights to aid in making informed investment decisions.

Transcript

[Melissa Lee]

What does it mean to live a rich life? It means brave first leaps, tearful goodbyes and everything in between. With over 100 years experience navigating the ups and downs of the market and of life, your Edward Jones financial advisor will be there to help you move ahead with confidence. Because with all you've done to find your rich, we'll do all we can to help you keep enjoying it. Edward Jones Member, SIPC this episode is brought to you by Huggies Little Movers. It's fun having a baby that loves to move, but it can be challenging to find a diaper that can keep up with them. Huggies Little Movers is designed to move with your baby. With either the double grip strips or the new HugFit360 degree waistband, you can be confident relying on Huggies Little Movers for your active little ones. Huggies Little Movers made with double grip strips or the new HugFit 360 degree waistband so your little double can keep Huggies. We got you baby. Live for the NASDAQ marketsite in the heart of New York City's Times Square, this is fast money. Here's what's on tap tonight. A builder boom. Housing stocks surging today on the back of strong earnings from a couple of names and a potentially big change to tax policy. What it means for investments in the space right now and time to harvest gains. What the Chartmaster says you should do with your theory and after the massive run it's seen this month. Plus, Netflix gets chilled by one long time bull is changing his tune on the streamer. A divergence what had Lockheed and Northrop going in very different directions today. And the newest meme stock. Karen digs in on the surge in shares of Kohl's and a look at the next name that could get caught up in this frenzy. I'm Melissa Lee. Come to you live from Studio B at the nasdaq. On the desk tonight, Tim Seymour, Karen Feiderman, Dan Nathan and Guy Adami. And we start off with a high for homebuilders. The ITB Home Construction ETF surging almost 8% to hit its best level since February. The group getting a lift thanks to earnings beats out of Dr. Horton and Pulte Group. Pulte rising over 11% for its best day in nearly three years, while Dr. Horton surged 17% for its best day since 2009. Separately, President Trump seemed to confirm today that he is considering a proposal to end capital gains taxes on home sales, a move that could be a game changer for the industry. For More on that, let's bring in Amy Jabras in Washington. Amen.

[Eamon Jabbers]

Melissa, it depends on how hard you hit the word considering there, Right? I mean, this is a proposal that's on Capitol Hill. Congresswoman Marjorie Taylor Greene has a bill that would eliminate capital gains taxes on home sales. So that's something that is kicking around in Washington. The president was asked about it by a person who was in the Oval Office with him today during a press availability. He said he's considering it. And he also had this to say, take a listen. If the Fed would lower the rates.

[Melissa Lee]

We wouldn't even have to do that. But we are thinking about, no, no tax on capital gains on houses. And I'm very impressed that you asked that question because nobody knew that.

[Eamon Jabbers]

How did you find that?

[Tom Rogers]

I wonder why there's somebody very close.

[Eamon Jabbers]

So the president joking there a little bit about there being a leaker who leaked that question out to the Oval Office. But look, the folks I've talked to here, I don't get an indication, Melissa, that this is sort of a top.

[Dan Nathan]

Of the agenda item.

[Eamon Jabbers]

It is something they like sort of rhetorically. They like it in terms of the actual tax cut nature of it. But the reality is it's got a long way to go on Capitol Hill. No indication this is coming anytime soon from here. But the president liked the idea in.

[Dan Nathan]

The Oval Office today.

[Melissa Lee]

Sure. And I know everything is kind of sketchy in terms of details. Amen. But as far as, as far as we know it, this would be no capital gains taxes on primary residences, not all houses. He just said all houses. Yeah, that's right.

[Eamon Jabbers]

I mean, the president here, the context is the president here is responding to a question that was thrown at him and he wants to, you know, sort of make a positive signal about it, respond positively to it. But I don't get the sense that there's a lot of traction behind the scenes on that, at least yet. And then the question would be like, what's the legislative vehicle for that up on Capitol Hill later this year? You know, a standalone bill, not likely to pass on that. So is there some other thing that they could attach it to later if the president gets behind it? You know, you could be looking at months and months before anything actually gets voted on.

[Melissa Lee]

Sure. Eamon. Thank you. Eamon Jabbers from the White House. Okay. There are a lot of caveats associated with this and of course, we don't know a lot of the details. But still, if we are to think about things that can facilitate transaction in this market it does seem like the administration is committed on some level to make the housing market better, to get people out of their, you know, 3% mortgage rates and get some deals done.

[Eamon Jabbers]

If you can't do it on the rate front, you do it some point somewhere else. So that's. Listen, the paltry report was fine, I think. I don't think it necessitated the kind of move you saw. I don't think the move is commensurate with the numbers in the guide. But this is exciting people. Clearly then if you get, if you do get rates lower, forget about rate cut. If rates move in the right direction, then maybe you get some tailwinds here. But to me, the mitigating factor continues to be what happens on the employment side of things. And although people will say the employment picture is still robust and it is through the lens of the 4.2% or 4.1%, there are things below the surface that are concerning.

[Karen Feiderman]

Yeah, I mean, I just think it's dumb this whole tax thing because if you think about it, I think the average price of a home in America is like a half a million doll dollars, about less than 10%, maybe 8% or over $1 million. Right. So if you're talking about a cap gain that you're not going to have to be taxed on that sort of thing, well, you can already roll a half a million dollars, a gain for a married couple into a new home on tax that exists right here. And I think that when you really break this down, the only thing it really does is make housing more unaffordable. If you think about it, right. If you're going to kind of roll into a higher priced home and you think that you're not going to have taxes, I don't think it really does anything for affordability that are looking to buy a first home and that's even.

[Melissa Lee]

Really that unlock supply because they're, they're rolling out of a house. So that house is now on the market.

[Karen Feiderman]

Maybe. I mean there's, there's. I mean this is stupid. Okay. It's not going to happen anyway. You know, I'm just saying. Let's talk about Pulte's earnings. Like, like this is dumb, you know, like that.

[Tim Seymour]

I don't know. I think it's sort of interesting, right? And the reaction to it, I mean, so Dr. Horton, the earnings were very good. The response in the stock I thought was excessive maybe a little bit. But you know what, it's come from a long way down. I thought this was actually an interesting Idea. Do you remember during the campaign when the Harris, the Harris team thought of a $25,000 cash for anyone buying a new home?

[Melissa Lee]

Yes.

[Tim Seymour]

Now that seemed highly inflationary. Right. Everybody then would have $25,000 and the price of all homes would go up $25,000. This I think is sort of interesting because I do think there are homes that would fall under the, that it would be meaningful for the sellers. They've been hanging on whether it's because they have a low mortgage or just because they would have a big tax bill. And so to unlock some supply, I think just when you have, why is they doing it?

[Karen Feiderman]

Right now you have the break. You have up to half a million dollars for married couples that you don't have to pay.

[Tim Seymour]

You don't want to buy another home. Let's say you are retiring, you're looking to size down. You don't want to buy another home. Maybe you want to rent. But those people, if you want to go, if you want to downsize, you don't need an extra. That doesn't, that doesn't really.

[Karen Feiderman]

We just do the math. If the average home in America is about 500 grand and you already have a $500,000 and there's only, you know, 8% of homes that are $1 million in, only 8% of the homes in America are overvalued over $1 million.

[Tim Seymour]

It's letting out one thing that I think would maybe make it a little more interesting if we said, all right, we're going to have this for two years and then that's it. And I think that would maybe give some impetus to sellers who are maybe on the fence. And so if you do unlock supply, I don't know, I sort of think it's interesting the response and all of the stocks related, the Home Depots and the furniture and Zillow, which is my sort of biggest position related to real estate. If you have more activity on a platform, that's great margin improvement.

[Dan Nathan]

I think the best thing about what happened to homebuilders today is that the chart, I mean to me ultimately they got about above the 200 day. They haven't been there in a long time. They've been basing, they've been reacting to interest rate dynamics. They really haven't been reacting to the macro. If anything, all the housing data that we continue to get show that new family starts and mortgage applications have ground to multi year lows. So I don't think the industry is on fire. I think as we've talked about here, the Earnings we got today from Pulte, they guided to lower third quarter deliveries. The best thing about their numbers were the margins were better. No question. That was a real bright spot and it was a reason for the stock to rally 2, 3, 4%. Did these headlines goose up the sector? Yes, they did. I think it happened also though, on a day when there was just massive rotation. Today was all about going into sectors that have been beaten up. Sectors, though, that have put in a base look at health care, look at what happened across some of the consumer staples names. So I'm going to kind of play that. I don't think that the fundamentals have changed all that much for either on the macro or the bottom up. And I just think this was a story of an oversold sector on a day when you had rotation, when you had decent earnings and the bar was low.

[Melissa Lee]

If we know that rates are coming down and we do know it's just a matter of when these stocks should theoretically move higher in advance, so. And so is part of this 17% move higher, part of this 11% move higher.

[Eamon Jabbers]

I would push a little bit on the. We know that rates are going. I don'. I don't know that. I mean, I think that there's a want for the Fed to cut rates. I don't think that means that rates are going lower, which sounds somewhat counterintuitive.

[Dan Nathan]

Or on the long end, right?

[Eamon Jabbers]

On the long end.

[Melissa Lee]

I mean, the Fed will deliver a rate cut, but they could cut rates.

[Eamon Jabbers]

Jerome Powell could come step next to me on the show and say, hey.

[Dan Nathan]

By the way, he's a big fan.

[Melissa Lee]

Of the show watching right now.

[Eamon Jabbers]

And I'm not convinced that the back end of the curve is going to go lower. So listen, if you just want proof positive, go back in September, 10 year yields were 3.6% when they started cutting rates. You saw what happened. I think there's a chance that happens as well. So I don't think the rate cut is this panacea that people think that it is.

[Melissa Lee]

So it sounds like nobody here is a fan of housing, the homebuilder stocks specifically, but how about the home related stocks? You can still be a bull on your Home Depot, Tim. I am without this.

[Dan Nathan]

I am bullish on Home Depot. I think this is a stock that's been kind of flatlining over the last six months. This is a stock that I do think is more is will be a beneficiary of the fact that people are staying in their homes and that actually the job market's more resilient that people are starting to spend. I do think inflation on some level has caught up to them, even though it does help the top line. And, and we've talked about their pro business and we've talked about some of the acquisition, you know, getting into distribution and broadening the business model. I like Home Depot. I think it's best in breed. I think Lowe's will for the near future be trading at a discount to Home Depot. And I would be taking the best stock in the sector that I do think has great exposure to the consumer here.

[Melissa Lee]

All right, for more on the outlook for housing, let's bring in Darrell Fairweather, chief economist at Redfin. Darrell, great to have you with us. I understand that this proposal is up in the air. We don't have a lot of details, but what do you think this would do to the housing market if there were no capital gains taxes on the gains from primary residences?

[Tim Seymour]

Yes.

[Darrell Fairweather]

Clear to me whether this would have a large impact. Like, if you are somebody who is really paying attention to capital gains tax, you would want to sell when you're approaching that current limit of having $500,000 for a married couple. It's about half that for a single cup for a single person. But once you're reaching that limit, that's when there's this big incentive to sell and to buy again, because then you can reset and your capital gains resets as well. If you extend the limit forever, then I am not sure, maybe people will want to stay in their homes even longer because now there's no downside to staying past when your value has gone up by more than that $500,000amount. So it's not clear to me this would help the housing market. If anything, I would like to see them reduce taxes on improvements to homes. Like if you're putting in an ADU and that's what increases the value of your home, it doesn't make sense that you should be penalized for that when we need as many housing units as possible.

[Melissa Lee]

That's interesting. What is that state of the housing market so far? It does seem like perhaps it's becoming a little bit more balanced. I mean, according to your competitor Zillow, 26.6% of list saw a price cut in June, and that's the highest in a June since 2018. I mean, it does seem like the market is. Is rebalancing a bit.

[Darrell Fairweather]

It is turning into a buyer's market. There are simply more homes for sale and there are buyers who want them. That's especially true in Florida and Texas and other states that built a lot during the pandemic. And that means that as a buyer you can negotiate a better deal. And if you don't even like what is for sale, you can go look at the rental market which has been pretty stable. So overall if you're in that first time home buyer or buy category, it's at least you have more negotiating power even though affordability is still quite poor.

[Tim Seymour]

Terrell, it's Karen, thanks for being on. So how much do prices. I know it's different in each part of the country, but how much do prices really need to come in before we really start to see more transactions happening?

[Darrell Fairweather]

I think we'll start to see more transactions happening later this year because we're starting to see prices come down. We're starting to see sellers wake up and realize that they need to meet buyers where they're at. And that's what's really slowing down transactions right now is sellers and buyers just not being on the same page. So now that we're seeing sellers react, hopefully that will facilitate more deals and they'll happen at lower prices, the prices the buyers are setting.

[Eamon Jabbers]

So there are what puts those people on the same page. Is it an unemployment rate that moves the precipitously to the upside or is it the much anticipated, much hoped for yields coming down on the back end of the curve?

[Darrell Fairweather]

I think it's just home sitting on the market and sellers realizing that their home isn't selling at the prices that they're putting it at. And with comps coming down, that means that when you're looking at what you could sell, you're seeing, you know, what your neighbor sold for and that's, that's a wake up for people. It's just reality. So I think it just takes a little while for reality to settle in for for sellers.

[Melissa Lee]

All right, Darryl, great to speak with you. Thank you.

[Darrell Fairweather]

Thank you.

[Melissa Lee]

Darrell Fairweather. To add to the price cuts, the listings in June. According to Zillow, the highest share of homebuilders have cut their prices in July and that is 38% since 2022. And that's the last resort for, for homebuilders, right, to cut their prices.

[Eamon Jabbers]

And you talked about them buying down.

[Melissa Lee]

Right, buying rates, incentives, incentives.

[Eamon Jabbers]

And we've seen average selling prices coming down along the spectrum of homebuilders. I mean it's all sort of lining up for the move that we saw until last week or so in the homebuilders lower, which absolutely made sense. This is, I think to Tim's point, at least with the five major home builders that are 45% of the ITB, I think this is just a bounce off an oversold condition.

[Karen Feiderman]

Yeah, we talk about the wealth effect all the time, right. There's two main things is the stock market and then the housing market. Right. And so the stock market, it's yolo, baby. Like get in there. You've seen the retail numbers. It's gone absolutely ballistic this year. They didn't kind of get shaken out in April. They actually bought the dip. And you'd think that some of that, I don't know, that vibe would kind of work its way into the housing market if there really was demand. But then if you're waiting for rate cuts, right, last year, September and into December, they cut interest rates or The Fed did 100 basis points and you know where the 30 year fixed mortgage was 6.85% and the year, you know, it is right now, 6.85% right now. So it just doesn't seem like there's too many incentives right now. And this seemed like a planted question. Obviously it's a talking point and it just doesn't seem like anything that's going to happen.

[Dan Nathan]

But it's, it's politically popular. So yeah, it may just be a headline. I don't think the macro change today. I do think if you look at homebuilders, the message I heard, I know that Pulte said that they had better gross margins, but I look at copper prices at all time high and I talk about that a lot, but I. The impact of copper in the price of a home is significant. The price of building materials, especially those that have to be sourced either abroad or ones that aren't as cheap to buy here but are bought here. I mean, the price of building a home is going through the roof. If you ask anybody who's building a home, their price per square foot is probably doubled since before COVID So I don't think any of that's attractive for the housing market market. The best thing about these housing stocks are the charts. And I'm not sure that's something I want to go chase.

[Tim Seymour]

I think though, to Guy's point about the labor market, right, that is a linchpin and if that were to loosen, I think that would have a very dramatic effect.

[Melissa Lee]

Coming up, wild action and shares of Kohl's department store stock surges in an apparent short squeeze. The details on that one ahead. But first, an earnings alert on Texas Instruments shares on the move after its report. The numbers from that quarter next. Do not go anywhere. Fast Money's back in two.

[Karen Feiderman]

This is Fast Money with Melissa Lee right here on cnbc.

[Melissa Lee]

This episode is brought to you by Huggies Little Movers. It's fun having a baby that loves to move, but it can be challenging to find a diaper that can keep up with them. Huggies Little Movers is designed to move with your baby with either the double grip strips or the new HugFit360 degree waist. You can be confident relying on Huggies Little Movers for your active little ones. Huggies Little Movers made with double grip strips or the new HugFit 360 degree waistband so your little double can keep moving like you. Huggies. We got you baby. On WhatsApp, no one can see or hear your personal messages. Whether it's a voice call message or sending a password to WhatsApp, it's all just this. So whether you're sharing the streaming password in the family chat or trading those late night voice messages that could basically become a podcast, your personal messages stay between you, your friends and your family. No one else, not even us. WhatsApp message privately, not all meals are created equal.

[Karen Feiderman]

For instance, breakfast has the spicy egg.

[Eamon Jabbers]

McMuffin for a limited time and lunch does it.

[Melissa Lee]

McDonald's breakfast comes first. Welcome back to Fast Money. We've got an earnings alert on Texas Instruments. Shares are dropping down about 11% right now despite the company beating EPS and revenue expectations. Christina Parts Nevelis has got the details on this. Christina. Well, investors are really surprised, Melissa, by the change in tone from management. Texas Instruments showed that auto was down sequentially. Gross margins, margins flat sequentially with the guidance that margins would continue to be flat in this current quarter despite what they're calling a cyclical recovery, especially in industrial. So on the earnings call which just wrapped up, the CEO warning that automotive is, quote, not recovered yet and that customers are just really cautious right now. They're not replenishing their inventories similar to what we saw with an XPI just yesterday. Investors really wanted to see that auto recovery. They didn't get it and the stock still sold off. Texas Instruments management saying tariffs and geopolitics continue to disrupt supply chains and that the CEO says, quote, I think that's not over despite the pause with the US And China. Speaking of China, management warning that they saw higher demand from China in the second quarter, up 19% sequentially driven primarily by industrial demand, not auto. The pop in demand, though, leaves management cautious for Q3 because they didn't say it directly but it's just really about a pull forward from the tariffs. People just, you know, rushing to order before they get put in place. Lastly, management warning that the guide didn't include the recently enacted tax tax legislation. They expect their tax rate to actually climb in 2025 and then should decrease in 2026 and beyond. But you can see the reaction in the stock because investors really had high hopes. Share price had increased almost 45% just over the last three months. But they didn't get that from management. On the call today. Guys, did you get, did you get any commentary on China specifically? I understand that 19% of its revenues are from China. There was some expectation that China demand could be improved which is curious to me given the trade war, but that auto specifically in China would be better. So it wasn't in this case he said that China followed what the global market was doing. So they are seeing an improvement in all the other facets which would be personal electronics, industrials, even enterprise which encompasses data centers. But auto was still weak which was surprising because I know that we've seen some auto strength coming from China but he was saying that's not necessarily, necessarily the case specifically for them. All right Christina. Thanks Christina. Parts in Novelis. All right, big decline here.

[Eamon Jabbers]

Well so let's. Yes it is and it's an expensive stock and you have a double top from last August when it traded like 215 to 20. So you don't have the technicals working for you. I don't think the valuation makes sense either. The guide though they talked about weak demand. They basic Texas Instruments supplies these critical power chips that powers in videos Blackwell. So if you start to do the read through and veto should be lower on this. If they're talking about weaker demand. I don't know where Nvidia is but I think more and more people over the next couple hours might start connecting dots here.

[Dan Nathan]

It's not a surprise given also what we heard out of GM this morning that the weakness in the auto sector, I mean it's essentially held hostage by what's going on with tariff uncertainty. And then you throw in the fact that the autos, despite the fact that the average life of a car on the road in America right now is probably significantly longer than it should be be. It's, it's not a case where I think we even know with the predictability even before tariffs where these companies are trading for. So I'm not surprised. Again Christine, hit this 45% move into that, into that number. This was a $200 stock in May of 24. It's $100 90. $190 stock right now. You guys can do the math.

[Melissa Lee]

Meanwhile, the broader chip sector not faring well in today's session. The SMH down nearly 2%. Big losses in names like Micron, Broadcom, Nvidia. The moves coming amid a report that Open Air and SoftBank Stargate partnership is struggling to get off the ground. The company has pledged to invest $100 billion into the project when it was announced back in January, but have now scaled back plans due to disagreements over key terms. This all according to the Wall Street Journal. We did see the impact on Oracle as well, Karen, and we saw this sort of overall rotation today and maybe this fed into that.

[Tim Seymour]

I think so. I mean, these group, you know, in video and Oracle and Dell amd. So I think this group got hit uniquely hard, not just rotation hard. I think it was a response to this story when they announced Stargate. It wasn't. It was met with some skepticism for sure. Right. But to have this update and say, all right, this is really not very far along, given that the run that this group has had, it's not surprising that you would have a little bit of, of steam come off the top, which seems appropriate.

[Karen Feiderman]

Yeah. Let's put some context around this. Right, so this was a $500 billion deal over four years, and it was Oracle, it was OpenAI, and it was SoftBank which was going to do a lot of the funding. And, you know, we saw this last week or a week and a half ago where Oracle was able to announce a $30 billion deal from open air. Right. So we're hearing a lot of these projects, especially ones that were meant to be somewhat political. Right. This all happened, I think, in and around the inauguration in January, early February. I just go back to the Stargate deal. Elon Musk was in the government. He tweeted out almost immediately during this press conference. He said they don't have the money. Okay. So let's be really clear about that. And then there's an article in the Journal today. Musk allies to raise up to $12 billion for X chips as startup burns through cash. So we're seeing a lot of this right now. We're going to see a bit of pullback here. And we're going to get at Google tomorrow night. We're going to hear what gcp. We're going to hear about Microsoft Azure. We're going to hear obviously from a whole host of other guys, including Oracle, IBM, you know, just Capex in general, whether they're going to be reiterating these numbers. But Stargate, it always felt like a bit of a fugazi and I think we're seeing that right now.

[Melissa Lee]

So this isn't necessarily a question mark over the AI story about the progress here.

[Karen Feiderman]

Here's another core weave. Okay. This is this pure play. Supposedly on data centers. They're buying core scientific. We saw that for $10 billion, they're going to cut out $9 billion in leases. They're vertically integrating, they keep raising debt. I think today was announced at one and a half billion dollars. When they ran, you know, when they raised 2 billion, I think a month ago, the stock went crazy. This is a heavy debt laden company, a heavy debt laden industry. The fact that X is doing it, if you get a slowdown, there's going to be a lot of negative leverage on this infrastructure, which is why I.

[Dan Nathan]

Just don't think you're buying the total beta in the space. I think you have to look. And I know most people know that Micron is not in video data, but just because it says semiconductor after their their industry sector does not mean that Micron, who gave you an extremely bullish guide on their numbers. And I said that night that I think Micron takes the pom poms out when they announce. And that stock's down 22% from that earnings number at a time when semis have gone through the roof. So I know it's obvious, but pick, pick stocks that are not just thematic, but pick stocks that are truly exposed to the space.

[Eamon Jabbers]

Intel on Friday. That's gonna be fun.

[Melissa Lee]

Yes.

[Eamon Jabbers]

Don't you think?

[Melissa Lee]

Oh, yes.

[Eamon Jabbers]

A lot to talk about.

[Melissa Lee]

Turnaround.

[Karen Feiderman]

Well, we didn't even mention ASML last week. So.

[Eamon Jabbers]

They did mention asml.

[Melissa Lee]

Yeah.

[Dan Nathan]

You just weren't conversation.

[Eamon Jabbers]

Not in this conversation.

[Karen Feiderman]

That's what I mean right here. I mean like I wasn't here last week, so I can't mention it. And I don't watch. But no, I do watch. I listen. You guys listen to Fast Money podcast.

[Melissa Lee]

It's fantastic.

[Karen Feiderman]

Go to your favorite podcast.

[Melissa Lee]

I do that after the show every day.

[Dan Nathan]

Guys, guy looks like.

[Karen Feiderman]

But today let's mention asml.

[Tim Seymour]

Okay, but last week you had tsm who made.

[Darrell Fairweather]

Right?

[Tim Seymour]

That was good.

[Karen Feiderman]

Okay, but they have a lot of interest. They make 90% of the chips.

[Dan Nathan]

Buyer of ASML.

[Melissa Lee]

Here's a lot more fast money to come. Here's what's coming up next. Kohl's cruising higher as an apparent short squeeze sends the retailer's stock soaring. Is This a sign the meme mania.

[Karen Feiderman]

Is making a comeback. Plus, Netflix finally chilling out why a longtime bull is flagging some concerns for.

[Melissa Lee]

The streaming giant and what it means for this stock. You're watching Fast Money live from the NASDAQ market site in Times Square.

[Karen Feiderman]

We're back right after this.

[Melissa Lee]

On WhatsApp. Your personal messages stay private between you and whoever you send them to. So things like the passport numbers for your honeymoon stay between you and your fiance. And that video call for your grand's 80th stays in the family. Even your streaming password stays between you and your college roommates, who still ask for it every week in your group chat. Because on WhatsApp, your personal messages are yours. No one else can see or hear them, not even us. WhatsApp message privately for the biggest news.

[Karen Feiderman]

And exclusive interviews from the business of sports. You know this is a multi billion dollar industry. Get the CNBC Sport newsletter delivered weekly to your inbox. Stocks Sign up for [e-mail] sport newsletter.

[Melissa Lee]

Welcome back to Fast Money. A wild day for Kohl's as shares of the retailer soared almost 40%. The stock was halted for volatility, traded nearly 30 times its average daily volume. The action likely thanks to a short squeeze in the name as Kohl's becomes the latest meme stock trade. It was actually the most shorted stock in the United States with its short.

[Tim Seymour]

Interest here a dubious honor, I guess. Right. For calls. I mean, they're in a tough spot, Right. We know the business, underlying business hasn't been going well. They have this giant short interest. So create this squeeze situation where if they can, they issue stock. Absolutely.

[Melissa Lee]

Like AMC did.

[Tim Seymour]

Yes. AMC did it. I mean, AMC did it. They were the master. I've never seen anything like it. That Stock is now down 99/ plus percent from when they were just in the frenzy of issuing and doing all kinds of stuff. So Kohl's can do it. I didn't see an S3. I don't know if they're in a quiet period, if they are able to do it now or not, but at least file a shelf and get ready. This can't be news to them. They do have a fair amount of debt. Nothing due right away that seems overly pressing, but the balance sheet is not in great shape. This is not news at all. And to have the ability to maybe save themselves, themselves, think what GameStop did, right? When GameStop first became a meme stock, it had some cash and a lot of debt. Now it has a ton of cash, lower earnings right so you know, what if this is what the market gives you make where the sun shines.

[Eamon Jabbers]

Does it? But is it a statement about the broader market where we are in?

[Dan Nathan]

Yes, yes, yes.

[Eamon Jabbers]

You know, 200 million shares in Kohl's on no news other than, you know, maybe some people out there in social media putting some stuff out and you see a kind of move like that. We have seen things like this before. Yes, they should have a shelf in place without question. I mean, this could last though. We've seen it before. If you look, you look at today's move, it looks parabolic. You look at it over the course of the last seven or eight years and it's merely a blip on the screen. So there might be some more giddy up in this name.

[Melissa Lee]

Meanwhile, let's get to Mike Co, who spotted some action in another name that could possibly achieve Meme stock status. Mike. And we say it could achieve Meme stock status because it does have a high short interest interest. This one that you're talking about, which is Wayfair.

[Eamon Jabbers]

We're talking about Wayfair. They have a short interest ratio which has doubled actually since mid April to about 5.7 times. So for those who don't know, the short interest ratio is basically how large.

[Melissa Lee]

The short interest is to the average daily volume.

[Eamon Jabbers]

Right now the short interest is about 22% of the float and the stock's up 150% over that same time frame. So call volume today was more than 60% higher than it the 20 day average and calls outpace puts by almost 3 to 1. And it was short dated calls such as the August 1 weekly 62s that was most active. 1650 of those were trading against an open interest of just 50 contracts or so for $1.20 apiece. So buyers of those calls are risking about 2% of the stock price, betting that this thing could also get some legs. And one of the things you'll notice in these types of stocks is that the options premium to the upside, the call prices are actually going to go up with the stock price. Usually we think of volatility coming down when prices rise, but not in situations like this. We've seen options premiums to the upside about 50% higher than they were a month ago.

[Melissa Lee]

Yeah, thanks for that, Mike. Really interesting because, you know, you can take a look at some other stocks out there with very high short interest as well. Rivian comes to mind. Birkenstock. These are all, you know, 20 plus percent or so short interest.

[Dan Nathan]

Birkenstock guy, you'll never catch Guy.

[Melissa Lee]

You'll never catch Guy.

[Eamon Jabbers]

First of all, you know my feelings about a pair of burks. No, I don't. I mean, I don't think you should with socks.

[Dan Nathan]

You're wearing a width.

[Melissa Lee]

Are we getting to a trade?

[Eamon Jabbers]

Wear a Birken.

[Melissa Lee]

Well, this could be a valuable teaching moment for the public here.

[Eamon Jabbers]

I mean, again. Well, I mean, don't buy Birkenstocks. I'm wondering. You're doing life wrong if you do. I'm sorry about that. That's not wayfare. No, you could. Listen, people will grab onto these short interests. There are people right now going through what are the highest short interest? Names. Names. Maybe we can get some stuff going there. Birkenstock is one.

[Dan Nathan]

There's no question the correlation to what's going on in the crypto world is this is. This is what. This is when Best Buy went crazy. This is when all these names either companies that were going out of business but somehow you're sticking it to the man by buying a bad company is when at least look, the last time we saw this in 21 when. When tokens were going through the roof and FTSE were going through. If I just say be careful out there.

[Tim Seymour]

Open door, open doors. Another one trader closed under 3. No news, nothing happened. It's just such a dangerous game.

[Melissa Lee]

Coming up, a bingeing bull could be heading into hibernation while longtime Netflix optimist Tom Rogers is now raising a warning flag on the streamer. More on that when Fast Money returns. Welcome back to Fast Money. Another mixed session for markets. The dow jumping nearly 200 points. The S and P eking out a fresh record close. But the Nasdaq falling about 410 of a percent. Shares of Alphabet up today now on a 10 day winning streak tying its longest rally ever. The stock up nearly 10% in that time. And some more after hours action. Capital One beating EPS estimates but missing on revenues and phase Intuitive Surgical both topping earnings and revenue estimates. And Cal Maine Foods higher after reporting significant progress on production capacity to help mitigate an egg supply shortage. Well, shares of Netflix dropping 3 1/2% today, now down almost 7% since reporting earnings last Thursday. And one self proclaimed extreme bull is starting to worry about the stock. CNBC contributor Tom Rogers is the former NBC cable president. He is now executive chairman of AI Company Clay Grid and Orbit Media and Entertainment. Tom, it's always great to see you.

[Tom Rogers]

Great always to be with you and the gang. Melissa, thanks for having me.

[Melissa Lee]

We're excited that you could be here. I Talked to you right after Netflix earnings were out on Squawkbox the next morning. And what's really stood out to me was the change in tone. So right here, right now, you are more cautious on Netflix at this point?

[Tom Rogers]

Well, I'm worried that no longer being a raging bull on Netflix will disqualify me for being a stud in guy's eyes. But let me try to out my worries. I gotta still say it's gonna be the most valuable media company out there and will continue to be for a long time. Some I predicted a number of years ago and it had great earnings. There was nothing wrong with its earnings at all. It did everything it said it was gonna do. But engagement is what drives everything here. The amount of viewing it gets, it drives price increases, which drive programming budget, which drives more great program. And there's some worries and worrisome signs about the level of viewing and engagement it is getting its share relative to YouTube which was about neck and neck with it not long ago. YouTube is 12 and a half percent viewing share. Total TV time. Netflix has been about constant at 8%. And as overall share has grown 6% of streaming viewing versus linear television, Netflix has been about stable. So some worrisome signs there, Tom.

[Eamon Jabbers]

There's nothing you could do that would take away stud status in my eyes, number one. Number two, is there anything Netflix can do to sort of mitigate what you're talking about? You know, the live events is a big deal for them. Do they have to sort of go further down that road?

[Tom Rogers]

Well, live events is certainly a big deal, particularly for their advertising business. But. But as they said on their call, even their biggest shows that run more than a single sports event may be responsible for 1% of total viewing. So you need a lot more behind it than any single show. And they used to be going back a few years. 80% of the top 10 of any given week of streaming shows in terms of viewership now they've dropped down to about 50% of their shows are in the top 10. They still have more hit shows than all the other streaming services combined. But when you look at the growth of their sub base and look at the amount of total engagement time from all viewers they get, the amount of viewing per viewer has gone down some. Now, am I that worried about it that I still don't? I believe that it's on the verge of, of really getting hit badly? No. It's got an enormous programming budget and its local production internationally really helps fuel it in foreign markets in a way that other services can't, but it's something to watch for sure.

[Tim Seymour]

Tom, it's Karen. Thanks for being on. I've been wondering about when we will see some efficiency from AI in their content cost us. How far on the horizon do you think that is?

[Tom Rogers]

Well, you make a great point because AI I think is going to be a double edged sword for Netflix. Certainly relatively near term it's going to have benefit when it comes to anybody who's engaged in targeted advertising because AI is going to allow for multitudes of spots to be created on any given product to even more zero in on targeting audiences with different versions of ads, which I can do incredibly cheaply. At the same time, a little further out there will be elements of programming cost which are reduced by virtue of AI production tools. But where I worry about is that YouTube has different programming obviously than Netflix. It has more creator generated content, shorter form content. And the line between professional and amateur content is going to get more and more blurry as AI tools in the hands of amateurs allow them to produce things that look incredibly professional. And if YouTube today is generating as much of a gap in terms of viewing share with Netflix as it already is, I think AI in the hands of the community of YouTube could create a level of professional programming for YouTube which drives its viewership even further.

[Melissa Lee]

We got to leave it there Tom, but hope you'll visit us here at the NASDAQ sometime soon.

[Tom Rogers]

I can't wait. Thanks for having me.

[Melissa Lee]

Tom Rogers, AKA Stud.

[Dan Nathan]

Yeah, the Godfather.

[Melissa Lee]

What do you think of the valuation of Netflix here? Given the challenges that YouTube is putting.

[Dan Nathan]

On up the valuation is ludicrous actually. I mean, you know, but, but it's been not great for the last 300 points on the stock. It's been north of 35 for the last 300 points on the stock and they still have such an advantage and the competitive, excuse me, the economies of scale, so the operational leverage in their business, maybe even with a little bit of extra AI is part of what makes it interesting. I think the most interesting play in kind of core media right now is at least that part of Disney, which is, which is used to be kind of where we put this. I think you still do, but I think Disney's more interesting considering the DTC profitability. It's hard to, to, to hate Netflix here because of the valuation, but I don't think you have to own it here if you don't.

[Karen Feiderman]

Yeah, it does seem to be not just time, but a sentiment term that's going on right now. And when you look at these YouTube numbers, 365 billion of watch hours per year. I think Netflix has about 200 billion or so. And so that's really what's going on in tomorrow. Tomorrow when Google reports are going to get some sort of sense for this. This is one of the huge bright spots especially where there's so much, I guess if you want to just say headwinds about so many other parts of their business, whether it's search advertising revenue or you know, some of the remedies as it might relate to these investigations by the DOJ and ftc. This is going to be a bright spot. But I do think it is weighing on Netflix right now.

[Tim Seymour]

It is expensive, no doubt. I mean the run up though into earnings, the setup into earnings was really not so good. I think it touched topped 1320 maybe before earnings were even announced. So it's cheaper now but it is not cheap. The valuation's hard and I'm long.

[Eamon Jabbers]

Can you imagine if Tom Rogers who's been bullish for years in this stock. Correct. Is the guy then subsequently says you know what I'm feeling differently and this thing trades precipitously lower. I mean that stud moniker that I don't know what's after.

[Melissa Lee]

Amplified.

[Eamon Jabbers]

Amplified.

[Melissa Lee]

Well we'll see.

[Dan Nathan]

How do you, how do you improve on.

[Eamon Jabbers]

I don't know. You would. You were the only person think about.

[Melissa Lee]

It when we take a break. That was a nice big month for Ethereum. The cryptocurrency surging nearly 70%. But the Chartmaster says it may be time to roll into a different store value. His technical take is next. Back into welcome back to Fast Money. Etherium far outperforming gold in the past two months soaring almost 40 versus just under 5% for the precious metal. And the chartmaster says it is time to harvest gains in the crypto and go long gold. Carter worth of worth charting joins us now to lay it all out. Carter. Oh yeah, it's been silver outperforming gold. It's been a theory and outperforming bitcoin. But at this point it's a little bit hot. We put out a note in early June with just this one chart you see here. Making the case for playing Ethereum is a catch up trade to bitcoin. What it looks like now and you'll see that in the second iteration is that we've returned almost to those former highs up at 4,000.

[Eamon Jabbers]

So the thought was harvest a little.

[Melissa Lee]

Bit, take some off and if one is looking to redeploy that capital gold seems Like a good setup here and we might have a gold chart that the key is this, that gold got so steep and extended in April and then on April 22nd it reached a 45 year ago all time high which is gold adjusted for inflation and literally stopped to the penny. Now after consolidating for three months we are in the apex of this very well defined formation. And the presumption is at least to my eye anyway that we now break out. You can call it a symmetrical triangle, call it a wedge, it doesn't matter what you call it, it's a standoff or said differently it's a good period of rest or consolidation after an extended move. More often than not not you have a big move in any security. You rest and then you have a resumption of strength in the direction of the preceding move. So the bet is long gold here taking profits, some profits in ethereum. All right Carter, great to see you. Thank you. Carter Braxton. Worth of worth charting. We set it up almost like a pairs trade. But which side of the trade would you go?

[Eamon Jabbers]

Without question. I mean and look at GDX. I mean I think it was a 13 year high today the gold miners, Newmont mining finally getting off the mat. Gold miners are working which I think lends itself to gold overall to me.

[Dan Nathan]

Gold miners for sure. I mentioned this last night so nice job because you got the fresh highs today. I just think you're starting to see the miners outperform the metal. But, but gold is. You look at the 20 year chart and gold looks like Microsoft. In other words you don't get a far away from gold for the next 20 years either.

[Melissa Lee]

Have you harvested any gains in crypto?

[Tim Seymour]

No, but the trade is interesting. If I also would choose gold. I think the run up in a theory is gold. I wouldn't go. I know but if I, if I had.

[Melissa Lee]

If you had to write right just.

[Tim Seymour]

What'S happening Etherium and you had last week, you know was such a huge week for the space and I feel like it's just really frenzied and all the reasons that you make that move would also be underlying helpful for gold.

[Karen Feiderman]

You know dollar looks like it's going to make a new low. That's probably a good breakout sign for gold.

[Melissa Lee]

Coming up a check in on some of this morning's earnings reports. Why two defense names are moving in very different directions. More fast money in today to. Welcome back to fast money to aerospace stocks making opposite moves after earnings. Lockheed Martin hitting its lowest level in nearly two years. Northrop Grumman meantime, at an all time high, Lockheed missing revenue estimates seeing a $1.6 billion loss due to some defense programs. While Northrop lifted its profit forecast due to strong demand for reports military aircraft and defense systems. Got to go to you guys off the roads.

[Eamon Jabbers]

Think about Lockheed Martin's a $610 stock I think prior to last year's election. Now looking at 410 juxtaposed with Raytheon, Northrop choose your defense stock. And those are both, as you just said, north of all time high. Raytheon is right there as well, so it's clearly a Lockheed Martin problem. At some point I think Lockheed gets interesting, but it hasn't been for a long time.

[Dan Nathan]

Now it's interesting. You said yesterday you, you're. You use head and shoulders or you like head and shoulders?

[Eamon Jabbers]

I didn't say shoulders. We talked about a head and shoulders chart. Okay. Then you said you use head and shoulders. I said no, I don't have scalp problems. I said, but if I did. And then would you sell some blue, which is more.

[Dan Nathan]

I was just reminded about yourself and blue call. Well, anyway, head and shoulders on that Lockheed chart. I actually think it's interesting. You don't need to buy it tomorrow.

[Melissa Lee]

Okay, how much do you extrapolate any of these to your B. Oh, to B to Boeing or the A carved for aerospace?

[Tim Seymour]

Well, it doesn't really give you. They're idiots. Idiosyncratic on the defense, right? You have some positives, some negatives. I wonder if it's kitchen sink on Lockheed. I'm not really sure. But Boeing, it is all about production. How much can they increase production? How does that look for them? So I don't think the defense part is what will move it.

[Melissa Lee]

I don't want to confuse the A is Alibaba, but I'm just saying that her acronym is so bad she should just make a Boeing on each other. That's a amazing.

[Eamon Jabbers]

That's a first.

[Dan Nathan]

So.

[Karen Feiderman]

Can I say something serious for.

[Melissa Lee]

Yes, please.

[Karen Feiderman]

Pretty soon SpaceX's valuation the private markets is going to be equal to Boeing, Raytheon, Northrop and what's the other loser, Lockheed? Well, no, I'm just. Losers in the markets. They're losers.

[Melissa Lee]

All right, up next, trades.

[Tim Seymour]

Oh, thank God.

[Melissa Lee]

Final trade time. Tim Seymour, Freeport McMahon.

[Dan Nathan]

Look at that flagpole chart in copper now. I think it's going higher.

[Melissa Lee]

Karen.

[Tim Seymour]

Yes, Citigroup, what a great, great run. But I'm selling some upside calls. Go Liberty tonight.

[Dan Nathan]

Yeah, go Liberty.

[Melissa Lee]

Dan.

[Karen Feiderman]

Lockheed, not a loser. Great American company today Losing target. It's not an option. They need to change that match.

[Eamon Jabbers]

We got Morgan Stanley. Make noise Morgan Stanley people.

[Melissa Lee]

I mean Future Finance Schlumberger all right, thanks for watching. Fast 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 media. 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 for the biggest.

[Karen Feiderman]

News and exclusive interviews from the business of sports. You know this is a multi billion dollar industry. Get the CNBC Sport newsletter delivered weekly to your inbox.

[Melissa Lee]

Sign up for [e-mail] sportnewsletter.