← CNBC's "Fast Money"
CNBC's "Fast Money"
Dell’s Massive Month, and Countdown to ASCO 5/29/26
00:43:15
Dell surged after earnings last night, bringing its gains for the month to more than 100% and leading the S&P and Nasdaq to records. But can the gains last? Plus the world’s biggest oncology conference kicks off this weekend. What to expect in pharma deals and data. Fast Money Disclaimer
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- [00:00]
Melissa Lee
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- [00:31]
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- [01:00]
Melissa Lee
Live from the NASDAQ marketsite in the heart of New York City's Times Square, this is fast money. Here's what's on tap tonight. Dow doubles up. We dive into the massive move in this legacy tech name this month and what it says about the sustainability of the trade. And we are counting down to the kickoff of the year's largest conference for cancer research, the deals and data we can expect from Asco this year and the stocks that could see big moves as a result. Plus, Robinhood rallies another 11%. Wal Mart loses ground in the battle versus Target and Broadcom gains ahead of earnings. But what should we expect from next week's results? We'll dig into the options action to find some answers. I'm Melissa Lee, come to you live from Studio B at the nasdaq. On the desk tonight, Tim Seymour, Karen Feiderman, Steve Grasso and Julie Beal. And we start off with a tech led rally sparked today of course by Dell. Shares of the computer and server maker soaring 33% after earnings last night, adding nearly 70 billion to its market cap in just one day. The move brought the stock's gains for May to more than 100%, its best month since coming back to the market in 2018. But it wasn't just about Dell this month. Check out these moves in the other big tech stocks, CrowdStrike and Datadog, seeing their best months dating back to their respective 2019 IPOs. And Micron, up nearly 90%, having its best in more than four decades. Those gains Helping lead major markets to another set of records. Tech's 2% gain leading the S&P 500 even as nine of the 11 sectors were down today. And check this out, all but one member of the Mag 7 was down today. Microsoft the only winner, up more than 5%. So what does this kind of action tell you about the market overall right now, Tim? What do you say?
- [02:33]
Tim Seymour
Well, we see overshoots and I'm not saying that what's going on to the upside is an overshoot but, but certainly I think there's a sense on. We've had a reaffirmation of software, we've had delineation of what's working, what's not in software. If you look at Microsoft as the, as the leader of that group and obviously a week where we had reaffirmation whether it was Snowflake, there's a number of other names that actually really told you that this is a story where agentic plus what they were doing plus enterprise build out plus demand is actually we overestimated to the downside. So when you look at the stories that we're working today and I'll let the expert to my left, to your right on tv, Karen Feynman talk about Dell. I'll just say what I liked about Dell is it, I think it reaffirmed what I love about Cisco which is that I think you've got a case here where enterprise is really just going and this is, I mean Enterprise server up 92% for Dell etc. But I just think that this is the story, the rotation within tech, it continues, it continues onward. And it doesn't mean that those names that are not rallying like this doesn't bother me that Nvidia had a flat to sideways week. I mean I don't, that doesn't bother me at all. And we get tales of what Nvidia might be investing in also that's also maybe kind of the next leading edge. But I liked this week and I like this week then just to drop it into a market which is obviously dealing with lower oil, which equals lower yields, which equals possibly lower inflation, which equals lower volatility. It's a great time for investing in growth.
- [03:58]
Melissa Lee
What do you do with Dell now, Karen?
- [04:00]
Karen Feiderman
With Dell I think Dell I think profusely. So what do I do with it? I think, you know, the call was very, very, very optimistic as the stock reflects. I think the guidance was lower than where they will end up probably by a meaningful amount. One of the things that they talked about was someone Asked them a question about well you gave us numbers in October, what do you think now? And they said that we are in a whole new world just from October, since October. And he's saying, you know, we were very keen on the back of Q1 momentum that what we see where the growth is, it's real, it's durable, it's accelerating, it's broad based and it's expanding beyond the GPU and so many parts of their business, the PC parts of the business, you know, the isg, csg, all of it extraordinary. The margins are even with their expenses going up, they managed to also be able to maintain margins. So it was an extraordinary quarter, no question. And it makes me think it was light guidance. And they talk about, they give you the sense we are so in the early innings. So the whole, the whole trick of this whole game of AI and everything related is what is the thing that's finally going to cool it down? Right. And I think it's where the second derivative of growth is negative but this is positive, right? It's growing and it's growing at a faster rate and I think that is going to continue for a little while. So what do I do? I long the stocks are biggest position going to. I have some calls against it though. I'm going to cover those and roll up and out but still keep a very substantial position.
- [05:37]
Melissa Lee
I mean if you believe in the fundamentals behind these vertical moves in tech that we've seen this month, then these are not overshoots. Steve, things are rerating.
- [05:45]
Steve Grasso
Yeah. I do think though that markets do overshoot to both to the downside and to the upside but they've overshot so extreme to the upside in a stock like this or Micron. I'm probably more concerned with Micron than this but I always go back to what Karen says. If I own it today, it's like buying it today and you're doing a lot of optionality around it to hedge yourself. But if there's only a couple of reasons why you wouldn't own Dell here and it's just the valuation of the price increase. Everything else seems to check every box.
- [06:19]
Melissa Lee
Julie, how do you feel about the market rally that we've seen over the past? Do you feel better? I mean we've gotten the earnings reports to back up these moves. So do you actually feel better about where we are right now versus you know, three weeks ago or two weeks ago?
- [06:34]
Julie Beal
I mean, I think, I feel similarly, I think that the earnings reports of surprise to the upside and we're seeing so much breadth across companies that were pretty left for dead for a lot of us. And I think it's interesting to see this level of broadening. It's encouraging. And on the one hand it's really encouraging because a broader market we know is a more stable, more robust, stronger and resilient market. My one concern is that as AI continues to proliferate, it becomes and touches more and more parts of our economy. That's great. If it really can deliver on the promise, that's a problem. If it can't, though, if we have more and more companies that are really dependent on this theme, it's totally changed the valuation for a lot of them. And so there is just that little bit of vulnerability to it. But I think broadly speaking, when we're talking about the next 12 months, they certainly look very robust from here, it's hard to see where the fly in the ointment is.
- [07:29]
Melissa Lee
And I guess, you know, should we question projecting out what we saw this quarter, that the level of demand, like let's say in Dell's case that the revenue growth that they saw in sales of PCs to corporate customers, will that, will that continue? I mean, it was up 18%.
- [07:49]
Karen Feiderman
Right. Well, there's a little bit of a. Well, there's a refresh. There's a Microsoft refresh. So that's a little bit of a. That tends to write an extra bump. But I do think about the questions. Are you getting it sort of pulling forward? Yeah, and I think that we're. It's not pulling forward. I think we talk about hyperscales and the giant spend, but we haven't seen enterprise spend, really. We don't know how big it is. And it's going to get a lot bigger. It's small relative to hyperscalers right now, but I think it's going to get a lot bigger. So I, I'm surprised at how surprised. I would think Dell would have a great look, but they're shocked by the amount of growth, so I think there's more to go.
- [08:31]
Tim Seymour
The two things about Dell that Karen sitting on and we've, we've kind of danced around, but just to cut right to the chase, they've never had a beat this good. Okay, this is as good as it's ever been for Dell. And as Karen said, they just told you recently, not that far recently, at least that, you know, their business was X and now it's, it's X plus. Extraordinary. The other side of this is the server refresh has just begun and this is not hyperscalers. This is everybody and this is why again I get back to other kind of hardware names, old school tech, Cisco, you know there are other people in this space, even IBM that are well positioned for this. And so we know that demand is there. We know there is a little bit of a FOMO and a fervor and a risk of actually being left behind. I'm less. This is also a week where I think we've had a chance to evaluate Qualcomm and Techsin and like the second kind of wave of the cpu, whether it's industrial or Internet of things. And, and I think from listening to a lot of analysts over the last couple of weeks, the one thing that I don't think is happening is I don't think you're going to have a shortage in cpu. I don't think you're going to have this like mad dash. I think they're getting pricing power but I think again that gets back to some cyclicality and whatever that ratio. Remember we've been doing this CPU to gpu I don't think anybody really knows but I think you can over this is where I think you can overshoot it a little bit that CPUs suddenly are going to be scarce and you're not going to find those core chips.
- [09:51]
Melissa Lee
Yeah, we have seen a little bit of the sort of I guess broadening out or going to the areas that haven't participated. I mean you were making that point. Julia was making that point too. But you see that in the IGV very clearly. With Microsoft up Finally and up 5% today we saw CRM off the back of its earnings managed to go higher finally and this after we got some snowflake which had good earnings and servicenow which I mean so we're seeing better stories spreading out but, but it does
- [10:17]
Steve Grasso
make me feel like that's the extended story and that we're maturing in the story because then where do you go after? Do you go back to where you were trying to avoid? Do you go back to the semis? Like where does it, where does it start? Where does it stop? Is it cyclical? But I think the backdrop is important to look at the macro backdrop. When you look at the two year back to around 4% you look at the 10 year below four and a half percent and the 30 year is below 5%. So I don't think you could have had these runs if you didn't have that backdrop and if there's not going to be a deal with Iran. So I think there's A lot of stuff in the geopolitical scope and a lot of stuff in the treasury market that has made it possible for all these to really overshoot and extend their runs already.
- [11:01]
Melissa Lee
So this tech move was dependent on rates?
- [11:05]
Steve Grasso
No, no, no. They have specifics but if we had things that were going, if we had the 30 year way above 5% or the 10 year way above 4 and a half percent, I think it would have muted the price action. These companies have record earnings EPS at 20% growth and depends on where you are on the spectrum is the reason why the stock market continues to grind higher even with geopolitical fighting against you. But I think the fact that we're coming to an end quote unquote, it benefits.
- [11:38]
Melissa Lee
I also want to bring up Apple, which is slightly down today, but it's still notching a tenth straight week gains. Its longest run hit a record intraday high during yesterday's session. The stock is up 15% in May and that's its best month in almost four years. We're coming up upon WWDC of course it is one of these other plays just outside of the core trade where if investors are looking for another stock not yet participating. We saw apple with this 10 week winning streak as that next stock.
- [12:04]
Tim Seymour
Yeah, and I think Microsoft is rallying because Apple's rallying. And what I mean by that is nothing's really changed in Microsoft story. Nothing's really changed in Apple's story. But we know with Microsoft there's probably going to be AI capex. With, with Apple there's been very little and we see the ASP acceleration. We see, you know, by the way, at some point they're going to have to pay the piper on more memory pricing. And if anyone though can pass it on, it's probably Apple. WWDC feels like this might be the one where we get something and once again I think, you know, back to the future or you know, meet this new boss, same as the old boss. I love quoting the who Mel, because you love the who so much. And, and, but it's a case of where I think Google, Apple, Microsoft, you can't tell me that their installed base, their, their user base, their, their legacy business which is, is dominant, not just, you know, it's going to be the same thing with Apple. So I'm bullish Apple, I'm bullish Microsoft, you like Apple.
- [13:00]
Julie Beal
Julie, I, you know, I'm surprised quite by the level of activity. It is interesting to me that we have moved a little bit away from this idea that you know, Capex at all costs is worth doing. You rem. The thing that got those stocks to really move and to really go up higher was when they announced bigger capex budgets. And now that's changed a little bit. And I think it's really interesting because many people were very critical of Apple for not participating more actively in the CapEx cycle. And it really feels like a recognition that their best place in this is to really monetize the user base that they already have and pick and choose from the models as they see fit. It still remains to be seen because we still haven't seen a good integration of AI into their products and. And there's only so much time they can really delay that before people start to say, you know what, like maybe this is a company of the past
- [13:53]
Melissa Lee
at a premium multiple to the S&P 500.
- [13:56]
Karen Feiderman
Yes, at a premium. I mean there's a lot resting on series shoulders.
- [14:00]
Melissa Lee
Yeah.
- [14:01]
Karen Feiderman
Which is unable, strikingly, shockingly unable even have shoulders. I don't know at this point the stick figure with really a voice that doesn't understand. But I mean I could see, see where Apple comes out with something great. It's surprising to me though how long this has taken.
- [14:18]
Steve Grasso
It's worked in favor though.
- [14:20]
Karen Feiderman
It has. Not spending the money, you mean, or just that the stock has gone up.
- [14:23]
Steve Grasso
I mean not spending the money.
- [14:25]
Karen Feiderman
So I mean, I don't know, expectations are high. They're not crazy, super crazy high. But so, you know, good for you, Tim. Good for you. Hanging on. And I don't own it, but I would like it a lot better. I would like the product a lot better if there were actually something that
- [14:43]
Melissa Lee
was really useful and can understand you
- [14:45]
Karen Feiderman
and, or anyone could understand that's asking
- [14:48]
Steve Grasso
a lot of services though. Are 70% margins better than hardware? And if you believe that China sales have troughed, then I think that there's an upside. And then to Julie's point, everyone, the desk point, if you have AI as an optionality to the stock, it's only a tail, it's only a possible.
- [15:07]
Everpure Representative
For sure.
- [15:08]
Karen Feiderman
Yes.
- [15:09]
Melissa Lee
Well, one longtime money manager says stocks are defying traditional economic gravity. CNBC contributor Michael Farr is chairman of Far Crest Capital. Michael, it's great to see you.
- [15:19]
Michael Farr
Nice to see you, Melissa. Thanks.
- [15:21]
Melissa Lee
So defying gravity implies that maybe there's a crash on the other side of things. I mean, how, how should a, how should an investor sort of navigate these sorts of astronomical moves?
- [15:31]
Michael Farr
Well, I wouldn't, I wouldn't get to the crash that quickly when things are going up you know, when the sun's shining and everything's, you got to enjoy the sunshine. Things are going up and they're being driven by fundamentals and they're really defying the gravity of some economic headwinds in the economic news and the oil prices and everything else that's going on in the world, including at the Fed and with the PC number sort of suggests that you'd see, you should see stocks blinking, but they're not because they've been driven by these hugely powerful earnings. And I think we're getting more complacency setting in. People are seeing their portfolio values go up and they're looking at the retirement values and plans going higher and they're like, hey, for all of the doom and gloom I've been listening to for the past couple of years, it's not happening. Maybe I should take on some more risk. Maybe I should add to some of these positions that are on fire and maybe I should get in on this. Those are danger signs. So it's time to get grounded, I think, even though the prices are becoming lofty.
- [16:30]
Melissa Lee
So what does getting grounded mean then, Michael?
- [16:35]
Michael Farr
For me it means getting disciplined because these things happen to money managers too, right? I mean, you look at, you buy a stock, you expect it to do well and then it does fabulously well and you think you want to say, geez, I'm really smart. You're not that smart. You did get lucky with a bull market. Don't confuse brains with a bull market. So what you have to do though, when you're starting to say this isn't that hard and this feels really great, is to go back to your discipline. And it's been only six months, of course, here in the year, five months into the year, it might be time to rebalance. I normally only say you do it at year end, but we've almost had a year of returns in many of these stocks in just five months. So take the risk out of your portfolio, stick with your discipline, and if this is not in your risk tolerance, get back to the point where you can sleep at night and make sure you're on target for your long term goals without excessive risk.
- [17:28]
Tim Seymour
Hey, Michael, it's Tim. It's great having you. You've been doing this a long time and that kind of advice, which is really just matching as a fiduciary, matching up goals with objectives and thinking that way and letting your winners run is really tough. What part of the market here though do you think offers your clients this opportunity where things have been either either overlooked. I mean, health care at times should have been really defensive. In a time when it was. When it was. It was time to be defensive. Staples have actually had a run and don't trade very well. I'm just curious, outside of tech, you're allocating across the board, what do you like?
- [18:04]
Michael Farr
You know, Tim, it feels so weird. To your point, when you're managing risk and you're doing this for clients and you look at a position in Google and a client's accounts at 10% and you have to tell them that they're underweight, the benchmark. I mean, that's wild that these things, I mean, really. And then when you think about the capital gains that you're going to incur if you have to sell it in a taxable account, it really gives you pause. Certainly certain areas of health care, I still own some of the staples. I still own Procter and Gamble in certain positions. They've kind of been laggards. But boy, it's hard to sell some of these companies that seem to be driven on earnings. But what I'm worried about is that the dismissal of risk that is going to save us from everything. If, if your portfolio is on track for meeting your retirement goals, it's no time to take on more risk. But yes, diversify and don't give up on those other names. You need a balanced portfolio because every tide turns.
- [19:07]
Melissa Lee
Michael, great advice. Always good to see you. Thank you.
- [19:10]
Michael Farr
Thanks for having me. Great to see you too, Melissa.
- [19:13]
Melissa Lee
Michael Farr, you have discipline in your portfolio as well. So what are you doing now?
- [19:18]
Karen Feiderman
I do well, you know, we talk about Dell selling some calls. I do have some other things for sure. I have banks. I've talked a lot about energy, which has not worked for the month or the last few weeks. But I really do believe that is a place where money will flow and I do think things are changing there.
- [19:34]
Tim Seymour
The first time I was ever on financial TV, I was on with Michael Farr probably in 2001 or two. And he was a gentleman and a wise guy then, and he is today. So good to see him.
- [19:44]
Melissa Lee
There is some thought that once the war is resolved, that there will be a broadening of the market and that these other parts of the market, which Michael, you know, provide the diversifying element to your portfolio will actually do better. Equal weight S&P 500 over.
- [19:59]
Steve Grasso
Well, if the economy does better, then cyclicals are going to do better and then small caps are going to do better. So I think you look down the, the food chain. I'm just nervous that it's all factored in. So if we get an end to the an end to it, the market is always six to eight months ahead. And if the market is already priced in a smooth outcome, then it's the hiccups that actually because that caused the problem.
- [20:23]
Melissa Lee
Coming up, Robinhood goes all in on AI trading and the stock is already reaping rewards. But the latest shift for the trading platform means for its future. But first, Wal Mart is feeling the heat as Target mounts a comeback attempt. What is next in the clash of the consumer titans? Next? Do not go anywhere. Fast Money's back in two.
- [20:42]
This is Fast Money with Melissa Lee right here on cnbc.
- [20:50]
Everpure Representative
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- [21:17]
Tim Seymour
Gigo presents a 30 second podcast between your podcast Today's story is shared by one of our listeners. It's called Betrayed by Bill.
- [21:26]
Steve Grasso
It was in that moment I caught who was staring back at me in
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Tim Seymour
betrayal or more like what, my insurance bill. With trembling hands I grabbed my phone and switched to geico, saving about $900
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Steve Grasso
in the process and never to be betrayed again.
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Tim Seymour
Now that was bloody riveting.
- [21:44]
Melissa Lee
It feels good when the story ends with savings. It feels good to Geico.
- [21:48]
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Karen Feiderman
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Melissa Lee
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- [22:49]
Welcome back to Fast Money. A recent reversal in the battle between Target and Walmart. Though both stocks were down today, Target is up 30% this year. Wal Mart meantime, only 4% in the green. Things look much different longer term. Wal Mart is up almost 150% in five years while target is down more than 40%. You know, since its earnings it really has had a hard time. Karen?
- [23:10]
Karen Feiderman
Yes. And I didn't think the earnings were bad at all. The guidance was a little muted and I always say why not, why not have muted guidance when we're in the middle of the Rand situation, we don't know where oil is going to be, we don't know how the consumer is going to do so. There was nothing wrong with that earnings and if you take the idea, I believe the guidance was modest. However, what was wrong was the 45 multiple and so that's at 39 and change now that might be wrong as well. I'm still long, I'm staying long because I'm sort of a long term investor. But I do think at the moment and it's, it's that here, what would you say?
- [23:53]
Melissa Lee
Yeah, I have some math.
- [23:54]
Karen Feiderman
I'm diversifying out of. Great. Into math.
- [23:56]
Melissa Lee
Right. Yeah, good. Julie, your take?
- [24:00]
Julie Beal
Yeah, I agree. I think that its biggest hindrance is just its multiple and expectations around that. And that's the really, really tricky thing when you own these businesses and they are, you know, four, five, ten turns off of their long term averages which it has started to get to and they're not necessarily growing in a materially different way. So I think that's its vulnerability but I think it's a core holding in any portfolio. It's really, it has demonstrated an ability to capture that trade down customer not just in its stores but online. And while that's not as profitable for them necessarily, I do think that it broadens their addressable market of consumers. So I think they're really well positioned fundamentally. It's one of those kind of great companies, tricky stock.
- [24:44]
Melissa Lee
Sometimes you think it's overvalued.
- [24:46]
Steve Grasso
I think it's a reference point. You have a new CEO. It seems that they did everything wrong with the old management team and now this one's getting an extended honeymoon period. I don't think so. Earnings I don't think were great. I don't think that they were good enough to forget about all the bad missteps that Target had. And I think the most, the, the most. Oh, what are we talking about?
- [25:09]
Karen Feiderman
I thought you were talking.
- [25:10]
Melissa Lee
I was.
- [25:11]
Steve Grasso
Should I be talking about Target? I apologize. I was talking about. I was talking about Target. Yeah, that's what I. Yeah, so, so
- [25:16]
Karen Feiderman
what I think now it all makes it okay.
- [25:18]
Melissa Lee
Yeah, I was like Walmart was.
- [25:19]
Steve Grasso
Because I actually, I actually looked up and I thought, I thought Julie was talking about Target when Walmart was showing on the screen.
- [25:25]
Tim Seymour
So that's why I went back.
- [25:26]
Melissa Lee
I'm sorry, I know it's Friday, but.
- [25:27]
Steve Grasso
Yeah. So, you know, would you rather. Because I made it this way. I would pick, I would, I would still pick Walmart even though it's underperformed Target. I think Target's in a honeymoon grace period right now.
- [25:37]
Melissa Lee
Is it the T in Timbo?
- [25:38]
Karen Feiderman
Come on.
- [25:39]
Tim Seymour
Why do you ask that question? Rhetorical, Timote. Yeah, it's, it's, it's a relative value story. And when, when the whole sector is under a little bit of pressure for reasons that are related to maybe the positives possibly of again, maybe the economy for. We're really breaking out of war. That was another one of the big themes this week. Lower yields, less inflation, less pressure on the consumer. I still think that some of those, that should be good for Target and Wal Mart, but I think Staples and some of those defensive trades had a tough week. And I agree, I wouldn't run too far away from Wal Mart, but I think I'd rather be longer Target.
- [26:15]
Melissa Lee
All right. There's a lot more fast money to come. Here's what's coming up next.
- [26:19]
Robinhood rocketing to its best level since February as the trading platform goes all in on AI.
- [26:26]
Steve Grasso
But can the big gains last?
- [26:29]
Melissa Lee
Plus, all eyes on big pharma as the world's largest oncology conference kicks off. What we could learn about drug pipelines, M and A and more. You're watching Fast Money live from the NASDAQ market site in Times Square. We're back right after this.
- [26:51]
Everpure Representative
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Karen Feiderman
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Karen Feiderman
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Everpure Representative
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Melissa Lee
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- [28:02]
Melissa Lee
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- [28:45]
Ask a rheumatologist about Cosentyx welcome back to Fast Money. Robinhood soaring another 11% today, bringing its gains for the week to 28%. Mizuho raising its price target on the stock to 115 from 110, citing excitement over the trading platform's new agentic tools announced earlier this week. The company's agent can now trade for you and even make purchases with your credit card. This week also saw the launch of the Trump accounts for which Robinhood was tapped to build out the infrastructure. So basically have to have a Robinhood account in order to have one of these things. It's interesting because in the earnings really, you know, they still they outline how much money they're going to spend to build that out. For the Trump account the stock fell like I think 13% or something like that on the back of that and now it's, it's up to where it was before.
- [29:31]
Tim Seymour
Well it's interesting because again it is somewhat decoupled from Bitcoin. It was one of these, you know, one to one correlation plays. But, but I think what's clear is, is that their user base, their target base and their target acquisition base which is I think is relevant to this story which is that you know, you have agent trading. That's something that the current, the current customers of Robinhood want to do more of and they've indicated that. But it also is a great way to go out and win new customers. I also just think who are some of the folks that have done best in these markets and if I had to kind of categories, the plot, the trading platforms. It doesn't matter what size they are, which client base is like the Robinhood clients have made a lot of money in this client in this market and because they're exposed to a lot of these high growth high tech trades and they just have more money. In other words their asset base has grown. So I'm along Robinhood. I haven't been long for years. I've been long over the last few months and I think this is a really exciting time.
- [30:27]
Melissa Lee
I mean to that point Mike in The, in the 4 o' clock hours pointing out, you know, the discrepancy between Hood trading and Schwab trading. I mean it's a completely different story for Schwab. So you can really see how. You know. Right. Exactly how that client base is really done.
- [30:41]
Karen Feiderman
I mean they've done an extraordinary job I have to say. I mean, you know, we all first became familiar with Robinhood when they were on the verge of collapsing maybe during the whole GameStop thing. And yet they've built a huge business. I mean they seem to really understand what the clients want and have captured them. It's impressive. It's. I've always found it expensive. What Good hair.
- [31:02]
Melissa Lee
Speaking of somebody with good hair.
- [31:05]
Tim Seymour
I wasn't fishing for compliments but you'll accept it.
- [31:08]
Karen Feiderman
Yeah. So I mean it's impressive but I've always found it too expensive which has been the wrong thing. The growth has been extraordinary. Good for them but I'm not long. It.
- [31:16]
Steve Grasso
It's just about volume on their. On their platform. And if you can get stablecoins on your platform, real world assets on your. On your platform, private companies on your platform. That's why it's decoupled from a bitcoin. And there's plenty of other markets they can play in.
- [31:31]
Melissa Lee
Yeah.
- [31:31]
Karen Feiderman
I just had one other thing. Yes. Interactive broker Peter Fee is a very different guy.
- [31:38]
Melissa Lee
Right.
- [31:39]
Karen Feiderman
Tenet and yet he also has been really aggressive. They've grown tremendously.
- [31:44]
John Flavin
Do offer quietly.
- [31:45]
Steve Grasso
No one ever talks about they don't
- [31:46]
Karen Feiderman
get as much play. But still the stock's done extraordinarily well.
- [31:50]
Melissa Lee
Yeah. A lot of the same sort of clientele I mean yes, very active traders on interactive. Coming up, the world's largest oncology conference kicks off the today and it might kick start some major M and A in the biotech and pharma spaces. What to expect right after this
- [32:07]
Missed
- [32:08]
Steve Grasso
a moment of fast.
- [32:09]
Melissa Lee
Catch us anytime on the go Follow the Fast Money podcast. We're back right after this.
- [32:21]
Welcome back to Fast Money. Major averages posting record closes today. The Dow up a percent for the week, closing above 51,000 for the first time. The S and P gaining a percent and a half in the Nasdaq almost two and a half percent higher and rates taking a big breather. The ten year treasury yield down two and a half percent on the week. The TLT treasury bond ETF locking in its best week since early April. Shares of Yum Brands are up in the after hour session by about 2% after Bloomberg reported the company is in talks to sell Pizza Hut to private equity company Long Range Capital. Bye bye Pizza Hut.
- [32:55]
Tim Seymour
That's too bad. I mean, although maybe it's great, but it's probably great for Yum shareholders. It's just, it's so interesting to me because Yum is the name we used
- [33:01]
Steve Grasso
to talk about all the, all the time.
- [33:02]
Tim Seymour
Time. Well, because of the China play and KFC going wild and Taco Bell. So not so great on the hut.
- [33:09]
Melissa Lee
Yeah. Meantime, the world's largest oncology conference kicking off today. Pharma giants like Merck, Moderna, Eli Lilly sharing results from their vaccine and therapy treatments for one of the key developments in the state of Pharma M and a portal innovation CEO John Flavin joins us now. John, it's always good to see you.
- [33:26]
John Flavin
Likewise. Great to see you.
- [33:27]
Melissa Lee
Melissa, when we start seeing those abstracts dump, the data dump, which ones are we going for first?
- [33:34]
John Flavin
Well, you know, I think vaccines are becoming more important. Again, this is a field that's been studied for many years, but some of the science is enabling more possibility in this regard. Moderna and Merck reported some good results with regards to their melanoma vaccine. They're particularly useful potentially in really high risk genetically predisposed patients in melanoma. So I think that's an important field to watch. New modalities are really the hit, you know, at asco and even beforehand if we think about what happened with Revolution Medicine and their breakthrough therapy going after a key protein called Kras, which is really transforming pancreatic cancer therapy, doubling their survival time at a medium level in patients and with a fairly benign safety profile. So it's an improved Quality of life. So that's a really important story to watch. And that's, you know, just a few years ago, came out of Greg Verdine's lab at Harvard, spun into a company called Warp Drive Bio Revolution Medicines, bought it, and lo and behold, you know, that's, you know, a great story, you know, both from a stock performance perspective and for patients as well.
- [34:44]
Melissa Lee
You said vaccines are more important. I know we're talking, we're focusing on cancer because this is asco. But with, with the purchase of vaccine makers by Eli Lilly, overall, are they more important or specifically only when it comes to cancer?
- [34:58]
John Flavin
Well, I think certainly a big application will be cancer. And a lot of the reason for this is scientifically a lot more of the antigens involved in some of these key cancer targets are known and characterized. And so the vaccines can, you know, put those in play using now what are much more de risked delivery methods like mRNA as we're well aware of. So I'd say the key driver that's moving toward the vaccine field is definitely in the cancer space. And I think we'll see a lot more activity in this regard. And again, I think primarily in areas where there's a high unmet need and particularly in areas where patients are predisposed genetically to these kinds of mutations.
- [35:40]
Melissa Lee
M and A, we've seen a lot in sort of the, you know, two to $7 billion range. And I'm wondering, John, if you think ASCO will yield probably some more deals in the pipeline?
- [35:52]
John Flavin
I think so. I mean, we saw, you know, the news around. Pfizer is a business development deal, but, you know, it's up to $10 billion focused on 12 potential therapeutic programs in the ADC space. So that's been a big story for biotech as well. China, 30% of licensing this year is attributed to Chinese assets. Predominance almost as a whole has been in the oncology space. ADC's antibody drug conjugates are really a hot space because they go very focused around key tumor types without the deleterious side effects of chemotherapy. And if you look at, you know, some of the things that are happening in that space, we had a company, Crossbridge Bio, that just exited to Eli Lilly. So of large pharma is on a buying spree. Some of this is driven by filling pipelines not just for the patent cliff, but ironically, the inflation reduction act has driven a lot of pharma into making deals as well, because that window for being able to monetize the huge investment is shortening. And so you're seeing just a lot more activity in M&A 75 billion up to, up to this particular date in, in 2026.
- [37:01]
Tim Seymour
Hey John, Sam, thanks for joining us. I mean that China stat is shocking. It's amazing. And, and I guess help us though like boil down to the major players. You just, you know, we've talked about Pfizer, some of the major players, J and J. I mean who on a delta year over year do you think has made the biggest advance and whether it's you know, drugs that are coming through pipeline? Who do you think is the most misunderstood of the majors in terms of their, their core oncology business?
- [37:29]
John Flavin
Well, I think, you know the, you look at Lillian, clearly they're, you know, really doubling down. A few years ago they acquired Loxo Oncology. That's been a key platform for them to acquire many more assets and programs. You know, I look for them, I know they're you know, a very large market cap company, the biggest in life sciences. But you know, I like their vision and I think there's still upside in that story, particularly as they integrate AI with their innovation and AI factory collaboration with Nvidia for example. You know, some of the companies that we focus on a lot are the mid tier pharma that you know, are growing very quickly. Astellas Pharma has a key franchise in oncology, particularly around prostate. They did a deal with Veer earlier this year, a biotech company. So I see them as being an up and comer in the space. Certainly they've been active in the field for a number of years. I think a nice pipeline.
- [38:25]
Melissa Lee
John, great to speak with you. Thanks.
- [38:28]
John Flavin
Thank you. Take care.
- [38:29]
Melissa Lee
You too. John Flavin Portal, how are you feeling about health care?
- [38:32]
Steve Grasso
So if you look at the patent cliff and you look at Merck in particular, losing key Trudeau look at xpi, that's a small cap biotech ETF and ibb, that's the larger cap biotech. And XPI is outperforming by 6 to 1 because all of these companies are going have to be buying every little company. You said 2 to 6 billion billion dollar acquisitions. Probably within that, within that space. But I would look for a host of M and A to ripple through. XPI is going to be more effective than ibb.
- [39:04]
Melissa Lee
Yeah. Aside from Novo.
- [39:06]
Karen Feiderman
Just looking at Novo. Yeah. Perennial disappointment at this point. I mean I just can't believe how cheap it is relative to hang in there. Hang in. Well, they, they I think should do an ac, but I think they should
- [39:19]
Tim Seymour
do an acquisition I'm hanging, I'm hanging tough on Novo. I'm hanging tough on, on, on Pfizer, who again, you know, has an interesting flag planted in the oncology space. So. But I do think it is about having a vision for why you're owning some of these names. It's not just because of the valuation. It's not just because the patent cliff looks like it's tapped out.
- [39:38]
Melissa Lee
Yeah, I mean, it goes to the, what we were talking about at the start of the show, and that is diversification. Julie. Right. I mean, this is, this is a place to be.
- [39:47]
Julie Beal
I agree. I think you find a lot of really good values in health care right now. And I think if you're just a little bit thoughtful about the types of names that you want to own, I'm wary with this fda. It really feels like it's still pretty turbulent in terms of how drugs are getting approved. I'm not as interested in pharma as I am in companies that are adjacent, that are in devices or that have already well approved pipelines, that are clear and that are really competitively differentiated. That's a better place for me to be.
- [40:17]
Melissa Lee
Coming up, big bad Broadcom, the heavyweight on deck to report earnings next week. How options traders are setting up for the print and whether it's make or break for the semi trade, that's next. Welcome back to Fast money. Broadcom may have been up today, but it heads into Wednesday's earnings report wildly underperforming the broader chip space. The SMH up nearly 20% this month. Broadcom just 7% higher. But options traders are feeling far more bullish on this laggard into the print. Oliver Reddick is on the trading floor at Stebo in Chicago with more. Hey, Oliver.
- [40:52]
Michael Farr
Hey, Melissa.
- [40:53]
Steve Grasso
Broadcom is indeed in a really unique position as a big tech hardware play that's been lagging, which might sound funny considering the Stock is up 25% this year and 80% the past 52 weeks. But keep in mind, the semiconductor sector is up 145% the past year. Now, Broadcom also stands out right now because the options flows look much more bullish here than in the broader group. To rewind for just a moment, we started this week reporting on the heavy put trading activity in the sector fund SMH. And that actually continued throughout the week despite another 4% gain in the ETF. In fact, today, almost 10 times more puts traded than calls in SMH. But in Broadcom, it's the opposite. Calls outpaced puts 2 to 1 and 80% of the half billion dollars worth of premium was tied to calls. Implied volatility is pricing in a sizable near 8% swing for the stock. But $1 million bet we spotted in the 480 strike calls today is looking for twice that move between now and mid July. Melissa.
- [41:57]
Melissa Lee
All right, Oliver. Thanks. Oliver Renick, it's not just Broadcom underperforming smh. I mean, Nvidia is also, I mean, basically flat for the past. Up a percent for the past month.
- [42:08]
Karen Feiderman
Well, Nvidia, you know, it's. That's old school. It's. It's so broadcom GPUs, not CPUs, but, you know, Nvidia also CPUs, but it's just out of favor right now. I like the valuation. I don't own Broadcom. I like the valuation of Nvidia. Hanging on to in video.
- [42:24]
Tim Seymour
Yeah, I think Broadcom is interesting going into the numbers because of the trends that we've seen. Other people, they just haven't been able to impute them upon, to. Upon Broadcom. And I tell you that the valuation isn't terrible here relative to the group.
- [42:36]
Steve Grasso
You know, you worry about customer concentration. They're guilty of it as well. I think their five clients are probably responsible for 40% of revenues. But that's nothing in the customer concentration bucket that we've seen. I think you're just looking at something that might be priced to perfection. And if the market continues to roll higher, this will too. But as soon as the market turns around, the chunk are going to be taken out of companies like this.
- [43:00]
Melissa Lee
Julie?
- [43:01]
Julie Beal
Yeah, I'm with Steve. I think that when you're looking at any of these names that have rallied, you're exposed from a valuation standpoint and you're exposed from a customer concentration standpoint. You want to own the absolute highest quality. This is actually, I think, not the time to be super valuation sensitive. If you're going to be invested in these semiconductors, I think you want to be with the ones that have the strongest and most durable themes and the least cyclicality.
- [43:24]
Melissa Lee
All right, here's a question, Tim.
- [43:25]
Tim Seymour
Okay, I'm listening.
- [43:27]
Melissa Lee
Nvidia and Broadcom or memory.
- [43:31]
Tim Seymour
Wow. It's interesting. It's almost like a, it's like, it's like a kind of a barbell trade. I mean, it's kind of. You've stacked a couple things on one side, so. Boy.
- [43:44]
Steve Grasso
Want to answer on Monday?
- [43:46]
Melissa Lee
Yeah, I mean, it's like the lagger, the laggers of the chip sector for the past month.
- [43:51]
Tim Seymour
I wish you had. I wish you hadn't strapped Broadcom to Nvidia, because I would say Nvidia, I feel a lot better in terms of the core business and again, the places that they're investing. So I'm going to just answer it that way.
- [44:00]
Melissa Lee
Yeah. Yeah.
- [44:01]
Karen Feiderman
Okay.
- [44:03]
Melissa Lee
Coming up, way more than just a cap and a gown. How new 529 savings plans are helping parents with much more than college savings. Yeah, that story right after this. Welcome back to Fast Money. New laws for 529 education savings plans allow funds to be used for more than just college tuition. Sharon Epperson is here to give us some of the details. Sharon?
- [44:29]
Sharon Epperson
Melissa, 529 savings plans can now help people save not only for a child's education, but also for their own career training or professional credentials. Under new rules, you can now withdraw Funds from a 529account tax free for tuition, books and fees for credential programs, testing fees to earn or maintain a certification or license, and continuing education costs needed to renew a credential. Certified financial planner Nathan Sebesta used funds from a 529 plan to help pay for his master's degree in financial planning and now advises clients to consider using a 529account to pay for classes and programs to help them switch careers or grow in their field. More workers may need to tap these resources as they face layoffs and job transitions. But you can't just withdraw the money for any AI boot camp or online credential program. The new law requires that 529 plan money be used for credentials, licenses, and programs from authorized agencies and organizations. You can find a lot more on education saving strategies by checking out my Money 101 newsletter. Use the QR code right there on the screen or go to cnbc.
- [45:41]
Melissa Lee
And to be clear, Sharon, it is for the person, the child, who has the 529 plan to use in their adulthood, Correct? I mean, when we're talking about credentials and licensing. No, no. Okay.
- [45:53]
Sharon Epperson
This is for the parents we're talking about. You change.
- [45:55]
Tim Seymour
This is you, Mel.
- [45:56]
Sharon Epperson
You can change the beneficiary of a 529 plan to anyone you want, including yourself. So you can open one up for yourself and then start using it. You can have one in your child's name and change the beneficiary to yourself because they don't need it right now, but you really do. So it depends on who the beneficiary is. So adults certainly can have a 529 plan in their own name with themselves as the beneficiary. And that's the new part that has really opened the door for all of those people that are now facing job transitions, career changes, or they just want to increase their skills to keep the job they have. So it's a really, really great perk.
- [46:34]
Melissa Lee
Sharon thank you so much for bringing that story to us. Sharon Epperson up next, final trades, Final trade time.
- [46:49]
Julie Beal
Julie Beal Speaking of those nice little small cap healthcare companies, eradimed is worth a look.
- [46:55]
Tim Seymour
Tim Boat Low oil prices, lower yields, lower dollar, higher gold, higher gdx oh,
- [47:03]
Karen Feiderman
I thought they were all trades. Okay.
- [47:05]
Melissa Lee
Karen.
- [47:06]
Karen Feiderman
Yes, Dell. First of all, thank you very much. Very appreciative. Second, though, I got to roll up and out. That's what I'm going to be doing. All right, Steven I feel like the show went quick.
- [47:15]
Steve Grasso
That means it was a good show, right? It was a good show, good weather. Enjoy the weekend. I have a trophy asset reit. Do you know it?
- [47:25]
Melissa Lee
SL Green.
- [47:27]
Steve Grasso
You should have looked SL Green.
- [47:29]
Melissa Lee
Thank you for watching Fast Money. Have a great weekend. Mad Money with Jim Cramer starts right now.
- [47:36]
Everpure Representative
All opinions expressed by the Fast Money participants are solely their opinions and do not reflect the opinions of CNBC or its 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 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 Real talent is
- [48:09]
Melissa Lee
defined by what people can do, not where they learn to do it. So by stopping at the education section of a resume, you might throw away the perfect hire skills first. Hiring helps you see talent others miss. Like more than 70 million stars skilled through alternative routes, let their story unfold and gain a competitive advantage. Because hiring managers who start with skills are 60% more likely to find a successful hire. Hire skills first. Learn why at tear the paper ceiling.org brought to you by opportunityatwork and the ad Council.