← CNBC's "Fast Money"
CNBC's "Fast Money"
Fast Money Live! The Desk Trades the Holidays as the S&P and Dow Close at Records 12/11/25
00:46:17
In our last Fast Money Live event of the year, the traders dig into Broadcom and Lululemon earnings, as well as Disney’s deal with Open AI. Plus, we’re answering our biggest fans’ most burning investing questions, and bringing you a couple holiday surprises! Fast Money Disclaimer
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- [00:01]
Tim Seymour
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- [01:03]
Melissa Lee
Here the audience live from the NASDAQ markets in the heart of New York City's Times Square on the night that the S and p Dow and Russell 2000 all close at records. This is a very special edition of Fast Money, the studio jam packed with traders. Take a look at that in the NASDAQ standing room only for a final Fast Money live event of the year. We are trading the holidays with fans from across the country and around the world. Here's what's on tap tonight. Too big after the bell. Earnings at the two most critical areas of the market, AI and the consumer. The latest on Broadcom and Lululemon straight ahead. Plus, Disney's big bet, what the entertainment giant hopes to gain from its OpenAI deal and the potential risks and rewards involved. And later, guys heading down to see the Fast Money faithful and get answers to their questions about everything from pharma to crypto, nuclear power and much more. I'm Melissa Lee. So excited you could join us here tonight for this festive night of Fast money. As I mentioned, a big show calls for a very big desk. So here tonight, Steve Brasso, Tim Seymour, Karen Feinerman, Dan Nathan and Guy Adami. As I catch my breath. Happy trading the holidays, everybody. Great night. Great night.
- [02:09]
Tim Seymour
Great sweaters, everybody.
- [02:11]
Melissa Lee
Oh, yes. Who wore it best?
- [02:12]
Tim Seymour
Ladies look great.
- [02:13]
Melissa Lee
I'm sure it's going to be a gigantic.
- [02:14]
Tim Seymour
That'll be on the Twitter without question. Notice, I have the zipper. Tim's very zipper. Quarter zip, quarter zip. You know what? Give me the. You've got some scissors in front of you. I'll customize mine.
- [02:22]
Melissa Lee
But this is always a great event to meet everybody, to meet our fans who Interact with us on a daily basis on the screen, on the phone, on the iPad, see them in person.
- [02:32]
Tim Seymour
It's fascinating to hear also the areas that these folks are really focusing on and some sometimes they're a step ahead of us too. So this is an exciting night for us. This is our third one and I expect this is going to be the best one ever.
- [02:43]
Melissa Lee
Yeah. Let's kick it off here. We start off at the latest reads in the consumer and the AI trade with Lululemon, Costco, RH and Broadcom all on the move after earnings. We'll dig into Lulu in the retail space in just a moment. But first to Broadcom. Shares are jumping after the chip maker reported earnings and revenues ahead of Wall street expectations. Also saying chip sales are set to double in the current quarter. The conference call kicked off just moments ago. The stock is higher by a couple of percent in the after hour session. And interestingly this is the backdrop of Oracle last night and some other data points.
- [03:12]
Tim Seymour
Huge high bar for this one. Right. Especially in the backdrop, to use your word, of what's going on in the ecosystem. Right. With a lot of these trades in the mag, seven are down at least 10% from those all time highs. You know, Broadcom coming in is up 7, 75%, 200% from the lows. And you look at a beat in the revenues of 3% and a guide higher for the current quarter up 3% and you say to yourself it's really hard to get behind this thing right now. Despite this good quarter is good growth. They're guiding to doubling their, you know, a semiconductor business there. You know, software is a big part of it, 75% gross margins, you know, really good earnings and sales growth expected for 2026. So it's hard to kind of shake a stick at it. But by the same token, I'm not sure there's much more for this thing to go higher right now.
- [03:55]
Melissa Lee
Christina Parts Navalis has joined us here.
- [04:00]
Tim Seymour
Everybody's here tonight.
- [04:01]
Melissa Lee
Yeah, hence the delay. To your point though. So Q1 revenue guide was 19.1 billion, which is almost what, 700 million higher than what we were anticipating. We beating the Street. So that is a positive. The other positive was AI revenue. Specifically they guided to 8.2 billion. Why do I bring that number up? Because it seems to be growing at least by $1 billion sequentially every single quarter. And hock 10 the CEO's pay package is tied to AI revenue. Right. And so every time they hit these bars, he makes a little bit more money. He wants to stay on board, etc. The other third point too is they increase their dividend by 10% so that doesn't hurt investors too. They enjoy that. I think on the phone call though which is just underway right now, we're going to be wondering who is that fourth customer? They have Google Metta ByteDance, the parent of TikTok. Three big players. Google contributes a lot to their custom chip revenue. Who's that fourth player? Is it anthropic? Are we going to be hearing a little bit more about that custom business? Does that custom business get cannibalized because of that relationship with Google and the GPUs, the custom chips that they make for them? Because a lot of their custom business does use those TPUs as well. So I think that's a big factor that maybe it hasn't been addressed thus far. Yeah. What do you make of the stock reaction in light of what Christina said?
- [05:10]
Tim Seymour
I think it's this is the stock that gives a lot of relief across the sector. I mean and by the way for all the negativity that seems to be around the chip space and Oracle we're going to talk about but, but really semis continue to outperform. I'm just going to remind everybody where the leadership in the market has been even in the last four or five days. But back to Broadcom, I think it gets back to the Google TPU relationship and where suddenly this company and the custom dynamic of what they are doing and where people believe the industry is going to be is part of what makes this stock more resilient than others and why the multiple which is does not make sense. Dan, he's got kind of a smirk on his face. Maybe it's my sweater.
- [05:46]
Melissa Lee
I think that's the biggest space and that's fair.
- [05:49]
Tim Seymour
But anyway I think this brings some relief across the space especially those folks that are not committed to Mega Capex.
- [05:57]
Melissa Lee
Is does this bring relief to Nvidia or is its success and TPU seen as bad for Nvidia?
- [06:04]
Tim Seymour
I don't think it brings relief to Nvidia. Nvidia is down like 16% since its all time high. So that's a different story. I think if there's anything to sort of you want to sort of pick apart the quarter free cash flow was light and the valuation at 44 times next year's is expensive. That said operating margins were up significantly year over year so they're doing everything right there. In high margin businesses you got to wrap your head around the valuation. The market seems not to care Right.
- [06:28]
Melissa Lee
Now I agree with Dai on the dominance. I mean that it's bad for Nvidia. So the pie is growing. I believe that. But Nvidia was, it was all their pie for a while. Right. And so the margins reflect that and you have to think that as you know, it becomes somewhat. They give up, they don't have all the share, that margins would suffer. Two things for the margin comment, high bandwidth memory. The prices keep climbing really high. So I think that that was a big factor of these margins stay high pretty good given the price that we're seeing. The second point just with Nvidia everybody keeps talking about, this is the first inning, it's only going to grow from here. So that to me could read as maybe slightly negative for Nvidia because if it's the first inning, Nvidia has that pie. To your point, the pie keeps growing but now that pie is being shifted and everybody's taking slices. Even just like Rivian today. The fact that Rivian was creating their own AI chip and not going to use Nvidia or even for Broadcom. One small point. Broadcom makes chips for Google. They make these TPUs. The problem is that Google's next iteration of that TPU is going to be more, more in house. So that's actually could be a negative for Broadcom. And hats off to semi analysis reporting that out in a research report just over the last 24 hours. But something to keep in mind when you're talking about the stock maybe 12 years, 12 months from now.
- [07:39]
Tim Seymour
Only because you asked would I rather.
- [07:42]
Melissa Lee
Broadcom versus I did not, but go ahead.
- [07:44]
Tim Seymour
I'm sitting for where I thought I heard it. I would go with Broadcom. Despite the valuation, Dan said It was up 75% and video is only up 35% year to date. Custom chips, that's where the puck is going. I think that's what's scaring in video and I think that's where they're going to give up the volume. And to, to Christina's point, Rivian is a testament to where the puck is going. And I think in video has pulled a lot of rabbits out of a hat. I think they might be out of rabbits.
- [08:10]
Melissa Lee
I think it's interesting. We've been talking so long about the dynamic of custom chips entering into the fray. And all of a sudden with Gemini and the recent success of Gemini. Have we talked really about the success of, of that TPU which has been in the works for the past 10 years? Yeah, but all of a sudden it happened and all of A sudden it's here and all of a sudden Nvidia is not responding well.
- [08:29]
Tim Seymour
Yeah, and I think we're all making a point, but I'll clarify my point. I do think that there are threats to some of the folks that have outperformed at this point. But, but the message here is that those folks that are lean and mean evolving and are able to either customize or be able to move with the way the industry is going and are not Capex and Asset heavy are the ones that, that actually should feel some relief today. There's never a question about demand and that's what this comes down to. So. And I don't know that we are all here questioning any of us the demand story, but that's the part of this that I think brings some relief today. Unless you're one of the legacy folks that we're talking about, that really has been the lion's share. Yeah. So to Christine's point about who is that fourth customer? Right. Well, it's likely Open air. When you think about demand, people say anthropic. Okay. I mean, you know, I mean whatever it is, what I'm saying is like they're both the same thing except that OpenAI is obviously has a lot more demand for these chips right now. And we've been talking about this. I mean, listen, if open air falters, right, if this Stargate thing doesn't happen the way we all expect it to, I mean demand's going to come in. You know, it's just that simple. And so a lot of this is tied to open eyes demand. Anthropic obviously is a much smaller name and I know that they're out there and they're doing a lot of this stuff. But to me, Sam Altman, we're all, all, you know, you got to do this thing, you got to make this happen. Otherwise this whole trade really does come, I don't want to say crashing down, but it comes in pretty hard in.
- [09:50]
Melissa Lee
2026 micron, I think to your point on high bandwidth memory, microns higher in the after hour session. So that's the link there. But in terms of how the trade reacted today, you know, before Broadcom, what we saw was Microsoft was up by a percent. Matt A caught a little bit, but still it was a little bit of a bit. I mean it's an interesting sort of rotation that we, we saw today in terms of going into the AI plays that have been beaten down.
- [10:15]
Tim Seymour
Microsoft, I think a bit of a relief rally, it sold off pretty significantly over the last Couple of weeks. So that's where I'll go on that front. In terms of Facebook, it actually does make sense. I mean I think Karen would agree with this got down to levels that what doesn't matter if it should have been there or not. It got there. But I think the market realized, well, wait a second, we get the spend but they have still such a huge moat and the valuation is still compelling. I think people are piling back in and probably correctly so, so core we've.
- [10:41]
Melissa Lee
Opened down a fair amount and I think that was related to Oracle, but it actually came back closed down a little bit, maybe 1%. That was impressive. But I think of them as a, a proxy as well. For the debt. For the debt.
- [10:57]
Tim Seymour
Right.
- [10:58]
Melissa Lee
The whole structure of how this demand is going to be.
- [11:01]
Tim Seymour
I think this, you know, we are maybe not having our market conversation right now in the show, but this really just speaks to the broadening of the market and this really speaks to the fact that Some and Dan may be right. I mean the core trade that was the AI trade for much of 25, I guess was that the year we're in is, has been relatively concise and there's definitely been a narrow bent to it. But I, what we're hearing from companies and what I think even Broadcom is telling you is that there is the demand and the companies that are seeing it and that need the customization will continue and that plays very well and for margins and the breadth we've seen in the market overall.
- [11:35]
Melissa Lee
Christina, thank you. Keep us posted on the call. Christina. Parts Neville Stock is up 3.4% right now. Let's get to Lulu Lemon. Results. The stock is surging after the company beat top and bottom line estimates. Lulu also announcing that CEO Calvin McDonald will step down next month after more than seven years at the helm. Courtney Reagan's been dialed into the earnings call. Joins us here with the latest. Hey Court. Amelie. Yes. That CEO knows that's what's really driving the shares higher here. It's really overshadowing the disappointing Q4 forecast which kind of is getting worse. When we're hearing the details on the call. Lululemon has shed more than half of its market cap year to date as competition and internal inventory missteps have really eaten into the yoga wear makers market share. So Calvin McDonald will step down at the end of its fiscal year. That's January 31st. He will stay on as a senior adviser through March. Current CFO and Chief Commercial officer will take over those co CEO duties in the interim as the company looks for a permanent successor. And then on the call near the topic, Donald said he and the board, quote, agreed that the timing is right for a change as we near the end of our five year planned cycle. I'm incredibly proud of what we've accomplished together over the past seven years. Lululemon is a very different and much stronger company today than when I first joined the organization in August of 2018. Now Wall Street Journal is reporting separately, citing sources that Lululemon founder Chip Wilson has recently tapped some advisors for a potential proxy campaign. Remember, he took out that full page Wall Street Journal ad in October criticizing the company. It was titled Lululemon in a Nosedive. Mel, Karen and the dudes in sweaters, back over to you. Sweaters on this desk tonight. Courtney. That's for sure. In terms of the Lulu story, the narrative had been that there would be newness coming in the spring and Calvin McDonald stepping down. Jan 31 before the spring tells me that maybe the board wasn't pleased with whatever newness was being promised. Yeah, that's very possible. And that's sort of what they're talking about in the call here, that look, this newness is coming. They're saying, look, when you look at the stores right now, it's not reflective of the go forward plan. Some of that inventory is not what it's going to look like. But to your point, we knew that it wasn't there yet, but Calvin McDonald is stepping down anyway. They sort of talked about the cadence of the quarter, said August was the strongest month, October was the weakest, then said Thanksgiving weekend traffic was pretty good. But then it slowed down after that, which is also reflected in the guidance. And one more point I'd like to make. They said even the fourth quarter quarter here, the CFO pointed out that the drag from the elimination of the de minimis exemption and tariffs will be a 410 basis point drag to margins in the fourth quarter. That's kind of big court. Thank you. Courtney Reagan from the NYSE and Lulu, your thoughts on the new CEO. Yeah. So in his tenure there, the stock has gone from like 125 to, I mean, I mean, it's seven years though, so it's not whether the spring was going to be good or not.
- [14:28]
Tim Seymour
I don't think that it mattered.
- [14:29]
Melissa Lee
And I'm wondering, all right, who should they get? The first thing that popped into my mind was Richard Dixon from the Gap. Gap is smaller, but he's done a great job there. I'm sure they, I mean, this is a plum job for A retail executive for sure. They'll have a lot of opportunities to interview someone good. But that's the first one I thought of.
- [14:47]
Tim Seymour
It's a plum job, though, at a terrible time. I mean, you know what we're just seeing out of the company. There's some relief here even in these numbers. Better than expected. And I would reference even some of the main points that Randy Connick from Jefferies, who's been on the show multiple times and has nailed this. Although, you know, Lulu's had a nice rally up the bottom. But if you look at what's going on with gross margin, it's really falling apart. This newness dynamic is on some level, and this is Randy's quote, something along the lines of ruining the esthetic of the brand. That's a dynamic here that I think is something to think about. It's the ubiquity of Lulu. You don't want at a time that VRE and Alo are still taking market share. So I don't think you're jumping in here. I think the dynamics in terms of the core parts of the business, the competitive landscape and the margin profile of the company, even though it's the sentiment's been so bad they're not getting better and they're not going to change anytime soon. Look at Nike on a change in CEO is not the answer. We had a double bottom that we talked about. It happened over the summer. We flatlined from August into the fall, and now we're starting to elevate off that double bottom from March of 2020. That makes sense. Tim's right about gross margins deterioration there. And inventories are up about 11% year over year, which suggests that margins are not going to get better. But with comps double what the street was looking for, this rally probably can continue a little bit. You got to figure out where to pull the ripcord. And I think it's probably another 10, 15% higher.
- [16:06]
Melissa Lee
I agree with you. There's definitely some trouble here. But I think you get a great CEO, you wait for them to kitchen. Kitchen sink the quarter.
- [16:13]
Tim Seymour
Cheap to itself.
- [16:14]
Melissa Lee
Right.
- [16:14]
Tim Seymour
Cheap to itself.
- [16:15]
Melissa Lee
Cheap to itself. True. And then it looks interesting. I mean, if you're the new CEO, why not? You got a free pass. Do whatever you want. And you know kitchen sink.
- [16:25]
Tim Seymour
When Guy Adami starts buying Lululemon, he'll get. You have to wonder now, I've been saying I wear the boxer brief underwear every day. Brain. Not in front of a live audience. Guy or America about execution and more about style. I mean, isn't that what we're talking about?
- [16:43]
Melissa Lee
I mean just athleisure in general.
- [16:44]
Tim Seymour
Well, and their athleisure in general. You know, and Tim just said it. You wear the aloe. You know what I mean? But like course I do taste. I'm on the leading edge about how the stocks this is an aloe in the last few years and we've been talking about how athleisure styles have changed. Yeah, but Ralph Lauren is the is the polar opposite of that. It's up 60%. And if you look at the Tim touched on it. It's the private brands that no one's talking about that are stealing all the fun.
- [17:08]
Melissa Lee
Coming up, Disney's blockbuster bet on AI, what its billion dollar investment could mean for the entertainment industry. And Eli Lilly's latest obesity drug trial. Data shows more than just big time weight loss. But could some smaller competitors be the stocks to buy? Now the fans are some burning questions about the GLP1 space and we've got answers for them. More of this special night of Fast Money in two minutes at Capella University. Learning the right skills could make a difference. That's why our business programs teach you relevant skills you can take from the courseroom to the workplace. A different future is closer than you think with Capella University. Learn more at capella. Edu. What made you confident that you could do something that hadn't been done before? I have no fear of failure. Trailblazing women, changing the game. One of my favorite pieces of advice, think about what your boss's boss needs. Leadership can look in many, many different forms. It really does come down to just trusting yourself. Life is short and you just got to think big to accomplish big things. Julia Boorstin hosts CNBC Changemakers and Power Players. New episodes every Tuesday, wherever you get your podcasts. Welcome back to the special edition of Fast Money. We've got a news alert on Do Kwon, the co founder and former CEO of crypto company Terraform Labs. Mackenzie Segalis has got the latest Mac. Hey Mel is a Terraform Labs co founder and former fugitive Doe Kwon has been sentenced to 15 years in prison for his role in the 40 billion doll collapse of the Terra USD stablecoin and Luna token. Back in 2022, it was one of crypto's largest ever failures. The judge called it a fraud on an epic generational scale. Prosecutors said Kwon's deception helped trigger the 2022 crypto winter and contributed to FTX's downfall. The sentencing also comes as the Trump administration faces scrutiny for easing Crypto enforcement, including President Trump's October pardon of Binance founder Changpeng Zhao. Mel Mac. Thanks, Mackenzie Seagallos. Let's get to Disney announcing a $1 billion investment in open Air today. The deal will allow copyrighted Disney characters to appear on the Soar video generator. Disney shares climbing more than 2% today are now up 5% over the past week. In a CNBC exclusive today, CEO Bob Iger said the deal will help Disney reach younger audiences.
- [19:29]
Tim Seymour
It gives us an opportunity really, to play a part in what is really a breathtaking, breathtaking growth in essentially AI and new forms of media and entertainment.
- [19:44]
Melissa Lee
So do Disney shareholders like this deal?
- [19:46]
Tim Seymour
Tim? I think this could help unlock some value of the ip. I mean, that's the story. And the ability also to generate some content, some videos. It's certainly great news for the creators of content out there. I mean, there's a dynamic here with AI that if it is enforced. By the way, this is. I don't if it happened today or if it was recently, but Disney's got a, you know, an IP infringement against Google, who is using their characters to train their large language models. So I think this is good news for IP everywhere, by the way. I think this is good news for Disney. I think to the extent that they. This is their ante into being more involved in taking their IP outward, yeah, I think it's good news.
- [20:24]
Melissa Lee
The structure of the deal, though, raise your eyebrows?
- [20:26]
Tim Seymour
Yeah, it's just weird. I mean, I don't know why they have to invest in it. Right. They have warrants to, you know, buy more. So even if they didn't buy it at the $500 billion market, let's say they got a discount, you know, they're doing a commercial deal. I mean, this is what companies do, right? If you're Disney, you license their API, you build on top of it. And on the flip side, a company like OpenAI, they want to partner with a company like Disney to get greater adoption of their products. I just find it curious. And I also find it curious relative to where Microsoft, which is not meant to be or hadn't meant to be a really innovative company over the years. They invested $10 billion, I think, think back in 2023 or late 22 when the valuation was like under $50 billion. So this just seems kind of odd to me.
- [21:03]
Melissa Lee
It's also kind of circular, which is what you pointed out, vendor financing, sort of to me. Right. We'll sell you RIP, so you could buy RIP. We'll pay $1 billion for. We will pay you a billion dollars. Right. So then they can pay you can pay us.
- [21:17]
Tim Seymour
That was the way to be happening everywhere these days.
- [21:19]
Melissa Lee
Exactly.
- [21:19]
Tim Seymour
And it seems like OpenAI is involved in a lot of them.
- [21:22]
Melissa Lee
Yeah. Yes. Also to me, to your point, a billion dollars at this point, is that a Good Housekeeping seal of approval for like. It's got to be a billion, right? No, it's so small for them. I don't. I was sort of curious, you know.
- [21:39]
Tim Seymour
We have a live studio audience. I swear, I can't hear them. You'll hear in a second. But they were clamoring for the great Carter Braxton Wirth, who, as you know, is sort of on the Parthenon in terms of his. And he would say that if we can get above sort of 120, which I think we will, we will have a bearish to bullish reversal from 2022. So you get a little momentum here in Disney. And I think that momentum can continue longer than people realize.
- [22:03]
Melissa Lee
Well, you heard them back there. There is a live studio audience here tonight. And Guy, in fact, is going to head back to them. They've got a boatload of burning questions for us. Among the topics, Eli Lilly, AI, hyperscalers, a burrito blowout, of course, and much more. You ask. We answer right after this. Is it time to reimagine your future? The right business skills may make a difference in your career. At Capella University, we offer a relevant education that's designed to focus on what you need to know in the business world. We'll teach professional skills to help you pursue your goals like business management, strategic planning, and effective communication. And you can apply these skills right away. A different future is closer than you think with Capella University. Learn more at Capella. Edu. What made you confident that you could do something that hadn't been done before? I have no fear of failure. Trailblazing women, changing the game. One of my favorite pieces of advice, think about what your boss's boss needs. Leadership can look in many, many different forms. It really does come down to just trusting yourself. Life is short and you just gotta think big to accomplish big things. Julia Boorstin hosts CNBC Changemakers and power players. New episodes every Tuesday.
- [23:41]
Tim Seymour
Wherever you get your podcasts.
- [23:47]
Melissa Lee
Welcome back to this special Fast Money Live event. Guy is on the ground with our fans. We got some burning questions. A couple of stocks in the news today, so we want to kick it off with Eli Lilly shares jumping nearly 4% at its highs after the pharma giant reported its next gen obesity Drug retatrutide delivered what appears to be the highest weight loss yet in a late stage trial while also reducing knee and arthritis pain. Guy, you've got a question on health care?
- [24:10]
Tim Seymour
I do. This crowd is ridiculously excited to be here. We have Nagy here. Stand up. By the way, as Tim knows, there's a great Joe Cocker song. You can leave your hat on. I think I'll leave this on the rest of the show. But Nagy, thanks for being here. You came all the way from Markham, Canada. Where is Markham, Canada? Markham, Canada is a little bit north of. Everything is north of here. So half an hour north of Toronto, Canada, half an hour north of Toronto. Tim, I think you're familiar. What's your question? My question is Larry Fink said every single asset will be to conized. What that mean? Every new benefit from it, Every single asset tokenized. What does that mean? Karen Feynman, that's right up your alley.
- [24:54]
Melissa Lee
Well, that's a good question. I think you should go with Larry Fink. Right. I think if that's going to be the case, he's going to be in the middle of it as he seems to be in the middle of everything. And so BlackRock, really quickly, I would.
- [25:09]
Tim Seymour
Just Rock Sutra trade. Yeah. And really quick, I would just say that I think tokenization for the markets we are trading today is an inevitability and probably our friends here at the NASDAQ are going to be in the middle of it.
- [25:18]
Melissa Lee
Yep. Meantime, let's get to G for Nova. Guy, pulling back from yesterday's record high, the nuclear power company gave strong guidance in its earnings report earlier this week. Popped 15% yesterday. Guy, what do fans want to know here?
- [25:29]
Tim Seymour
I'm here with Dorothy. Dorothy, stand up. Now, Dorothy won't say this on air, but she said it to me. She said, you know what, Guy? Tim Seymour is a lot better looking than you are. And I said, that's a really low bar. So go ahead, Dorothy, what's your question?
- [25:44]
Melissa Lee
My question is, with the race to power AI data centers, who would be better? A 40p like Constellation Energy or an an 84p like which you just had on the screen?
- [26:04]
Tim Seymour
Yeah. Well, we are anticipating your question, Dorothy. Well, Tim Seymour, that's for you. Well, Dorothy, first of all, you've got great taste and. But Guy is a great personality. I mean, he is. Anyway, so great question, especially in the world of data center AI, what's been going on in nuclear? And of the two, as much as GE Renova has been one of the most extraordinary Stock breakouts. In fact, in fact the spin off of ge. We could do a whole show on it and the value that's created by Mr. Culp. But ultimately I would say Constellation. I'm long the name. What I love about it is this is a nuclear and a nat gas story. It's Texas, it's real power. I don't think you need data center to drive this story. It's a valuation that makes a lot more sense. They just got through some important kind of DOJ concerns in terms of where that deal could close. I think this is a name that goes higher. Ron is here. Ron, stand up please. He's in from Michigan. And Ron said to me before he goes, I'm not here to see Steve, you Dan, Tim. I'm here to see Karen and Mel. Smart man.
- [27:03]
Melissa Lee
Oh, thank you.
- [27:05]
Tim Seymour
What's your question? My question is about 10 years ago my 17 year old son said buy Nvidia. And we bought it but unfortunately we sold it before it went parabolic. So what's the next Nvidia?
- [27:18]
Melissa Lee
You.
- [27:18]
Tim Seymour
Well congratulate your son. He's 27 now. Well done by him. Steve Grasso, you're really the guy on the floor. You're the guy that's in and out of trades. What's your thoughts on this? Yeah, so if you, if you look back at Nvidia when it was a gaming stock that was the easy money but you didn't know is the easy money. And then when you looked into AI, it looked like pixie dust. And now what looks like pixie dust, guy Quantum. So I would say if you really want to knock the COVID off the ball, buy yourself a basket of Quantum stock stocks. There is high risk for high reward though, so be careful. Yeah, I'd say this, the choice I have is a company that's not even public yet. They're exploring an IPO that would be Space X. I don't love what they're suggesting. It's going to go public at one and a half trillion dollar valuation. But when you think about 15 years from now what this company might be, they're talking about data centers in outer space. You know, there's a whole host of things here. They basically was a winner take all and they won and they got Starlink. They had a whole host host of other things. So to me that one would be interesting when it goes public next year. Janet flew out, Mel from California. Now Janet is nervous. So everybody give Janet a round of applause. Come on Janet. She's got a beautiful blouse on. There's Nothing to be nervous about. Janet, what's your question? Hello, guys. I want to thank you so much.
- [28:31]
Melissa Lee
For having us here.
- [28:32]
Tim Seymour
Of course.
- [28:33]
Melissa Lee
This is like my favorite show and.
- [28:35]
Tim Seymour
It'S been so fun just being here. Well, we love having you. And thanks for. Thanks everybody for joining us.
- [28:40]
Melissa Lee
Okay, my question is, what are your.
- [28:42]
Tim Seymour
Thoughts on two segments of the food industry?
- [28:44]
Melissa Lee
First, would you rather Costco or Kroger or Pepsi?
- [28:51]
Tim Seymour
I'm going to give that to Karen Feiderman. Not that she's our food expert. She's well versed in everything. Karen.
- [28:56]
Melissa Lee
Oh, that Costco for so many hundreds of points. I thought Costco is too expensive. It does seem to have stalled a little bit. Kroger is not expensive, but there is pressure on the company. Can I do a. Would you rather. Would you rather. Sure.
- [29:15]
Tim Seymour
Gets away with everything.
- [29:17]
Melissa Lee
Melissa said I could do it. I got to go with Walmart then. Guy, what would you say?
- [29:23]
Tim Seymour
Well, Janet has a second part of her question now. Are you familiar with the Burrito Blowout? No, I'm not. You're not? It's good thing. Nor should you be. Unfortunately. I'm well too familiar with that. But I think Chipotle was one of your questions as well. Was that was the next one. I'm going to throw that one to Tim. Well, I'll tell you what. I think CMG days are at least of growing on unparalleled growth relative to its peers are over for now. I think the multiple is not cheap. Even after coming down significantly. I'm a little worried about their cohort. I'm a little bit worried about their core demo.
- [29:57]
Melissa Lee
All right, Guy, thanks for that. And you're going to be out with the fans again later on in the show Coming up. In the meantime, the Dow and S and P setting new record closes today. But can the gains keep coming in the new year? We'll lay out your 2026 playbook with one top market watcher. Next.
- [30:15]
Tim Seymour
A moment of fast. Catch us anytime on the go follow the Fast Money podcast. We're back right after this.
- [30:31]
Melissa Lee
Welcome back to FAST money. The Dow and S and P notching record closes today. The dow jumping nearly 700 points. Also hitting an intraday high. The S and p closing above 6900 for the first time. But the NASDAQ pulled back as Oracle dropped 10% after its earnings last night. Meanwhile, Visa surging to its own record after an upgrade at bank of America. Analysts saying they see stable coins as a serious opportunity for the payments company in 2026. And shares of RH jumping after hours. Despite the furniture company giving weak guidance on revenue and margins for the fourth quarter, shares have still been cut in half by more than half, I should say, so far this year, despite this 10% pop. Tim, are you still in RH or.
- [31:09]
Tim Seymour
I am not. And I'll tell you what, it's a name that I think people who want to be patient are going to find a big opportunity. I think the valuation isn't terrible. I think the, the company's run a little bit differently. I think there will be opportunities to have this be a lateral housing play in the middle of a weak housing market.
- [31:24]
Melissa Lee
All right, and we have a news alert here on the Fed. The board of governors has voted unanimously to reappoint the regional bank presidents for five year terms beginning on March 1, 2026. Typically a routine vote. There had been speculation about whether the administration would try to influence the reappointment process. But today's announcement was unanimous, meaning even Stephen Myron administration was in favor of these appointments. Now, in recent years, reappointments have taken place in January or February. So this vote is coming considerably earlier than expected. Well, from AI to gold miners, Bridgewater's former chief investment strategist is positioning for another winning year for stocks. Rebecca Patterson joins us here on set. Rebecca is now senior Fellow at the Council on Foreign Relations. Rebecca, welcome. It's great to have you on Fast Money Live night. I know. This is so fun. You and the hat. Love the hat. Want to get to your 2026 playbook. It sounds like you think that there's a bullish consensus sort of forming. And part of that bullish consensus is what the Fed did yesterday and what it paves the way for. Your reaction to the bullish consensus, though, is what fascinates me in terms of maybe you don't want to be all in on that. I'm a tempered bull, right? So there is a consensus that we're going to have 2% GDP growth next year. We're going to have even faster earnings per share growth. All of that's going to be supported by more Fed cuts, more stimulus, the big tax ref coming through, more share buybacks coming through with tech and finance. And you saw Treasury Secretary Besson today. He is pushing hard to get deregulation to move even faster. It's a, it's reasonable like that is a totally plausible narrative. Plus the capex, of course, the problem is that's what's priced in. And so you have to think, do I want to have a little bit of diversification in My portfolio, in case all the good news is priced in the reality isn't even better than that. So I think looking at things like gold, I'm third year in a row, I'm a gold bull looking for a weaker dollar. Take advantage of that, get some overseas diversification, look at sectors maybe that aren't tech, that maybe aren't as highly valued, but have some structural themes to them and some that aren't cheap but I think still could run like the banks I think can still run next year. Global defense, I still want to have next year. People are going to keep buying global defense. That's just the reality we're in. So that's kind of how I'm looking at it right now. So great to have you here. First, yes, for coming. The QE move, they don't call it that. But the QE ish move yesterday, how much do you think that adds or does that add to your bullish look for 2026? It certainly is affecting sentiment right now. The Fed is trying very hard to say this is not quantitative easing. This is a tactical move to ensure market functioning. If they do 40 billion purchases on the very front end of the yield curve for a month, that's tactical. If this goes on for five or six months, they've suggested through tax day, so the beginning of April, if it goes that long or longer than that, it's going to start getting more speculation in the market that maybe we have more activist bond management going on. The treasury is issuing a lot of the debt next year at the front end of the curve to try to keep 10 year yields low to help the housing market market. But by pushing all that issuance to the front end, there's pressure on the front end to rise. So the Fed is helping offset that. It's going to create a conversation that maybe the Fed and Treasury have some sort of new accord. I don't think that's what it is. But if this lasts for four or five months, that conversation will pick up speed.
- [34:53]
Tim Seymour
Rebecca, let's talk about my old friend, your old friend, international markets. And in a world where the Fed may actually be pumping more liquidity and at least easy, what do you think? Because it was this was the year to own international after many years of not. And I think it continues for some of the same things that you set up your conversation with.
- [35:10]
Melissa Lee
Yeah, Tim, I totally agree. I mean, as much as we're applauding the US Recovery from the April lows this year, the rest of the world, almost all of them, not all have done much better. And a lot of that is the tailwind coming from the weak dollar not only but a big part of it. The dollar next year maybe doesn't get as much juice. Lower dollar that's weird.
- [35:30]
Tim Seymour
Anyway, dollar juice it will give for sure. Yeah.
- [35:33]
Melissa Lee
Dollar isn't going to fall because the Fed is easing aggressively next year. But is the differential. So Australia is looking like it's going to raise rates. Europe is actually talking about maybe raising rates, certainly not cutting more next year. Japan of course is going to raise rates maybe as soon as later this month. So you've got this difference between the rest of the world and the US I think that is a headwind for the $$ and I do think we're going to continue to get diversification from other central banks out of the U.S. it's not an overnight crisis. It's a slow drip, drip, drip. But that's also going to weigh on the dollar. So you said of course, Capex. Yes, of course. That's sort of, you know, there are some doubts about that trade right now. And so if that doesn't come through as one of the bullish tent poles next year, what how does it offset the other bullish 10 poles that you laid out? Given the still high valuations, the concentrated market ownership and the fact that this has become such a big part of the S and P altogether. If there is anything that pulls this Jenga block out of the tower, we're at risk of something falling over because AI has helped create the wealth that's led to consumption which supports earnings. And it's also the Capex is feeding through in a business investment in the economy. So if they disappoint expectations, there is a major risk. Now the question is, does it fall 75% like it did in 2000, 2002 with the NASDAQ when the dot com bubble burst, or is it more like a little deflating the bubble? We'd lose 20, 25% and then we kind of come back. I don't know which it is, but I do think that risk is very alive and well. And again that leads me back to having tempered optimism. Rebecca, thank you. It is always great to have you whether your optimism is tempered or not. Rebecca Patterson. Coming up, Tim's favorite small caps. They are on the mind of at least one member of our live studio audience. More of your questions answered right after this. Welcome back to this special Fast Money live event. Trading the holidays. New Year's eve is just 21 days away, so we had to check in with our Neighbors at one time so Square, home of the world famous ball drop. Joining us now is Michael Phillips, president of Jamestown, the owner of 1 Times Square. Welcome, Michael.
- [37:57]
Tim Seymour
Thank you.
- [37:58]
Melissa Lee
We've witnessed this from our catbird seat up here. The renovation going on. It's extraordinary.
- [38:03]
Tim Seymour
Yeah, thank you. It's been four years of incredible work to re skin the building and a $550 million repositioning. And we're really excited to see it open this New Year's Eve.
- [38:15]
Melissa Lee
You've come with two surprises. So tell us about the first one.
- [38:18]
Tim Seymour
The first one is the Waterford Crystal constellation crystal. There's 4800 of these on the ball, which is quite extraordinary. Going to a round crystal from a triangular crystal. And we have these for the audience this evening.
- [38:35]
Melissa Lee
Wait, hold on a second. Every single person here at Fast Money Live gets a piece of the Times Square ball.
- [38:41]
Tim Seymour
And next week on Wednesday, the VIP opportunity to see the ball and connect with it will open in the building in advance of New Year's Eve. Hold on a second. So Waterford Crystal for the audience is being handed out the Times Square tonight. And of course, the traders are getting it as well, right? I mean, yes. You know what? They deserve it more than we do. And this is, this is the second ball of Waterford crystal. So it's pretty. The ninth ball on the building.
- [39:09]
Melissa Lee
Amazing.
- [39:09]
Tim Seymour
Yeah.
- [39:09]
Melissa Lee
But they're not just walking away with a piece of the ball.
- [39:12]
Tim Seymour
No. They have a confetti wish kit which will be shot out of a cannon at New Year's Eve. So you can fill these out and have your New Year's resolution and wish shared out into Times Square with a million people.
- [39:25]
Melissa Lee
That is. So what would you wish, Steve?
- [39:28]
Tim Seymour
A different color sweater. You start there.
- [39:31]
Melissa Lee
We can make that happen before the end of the evening.
- [39:34]
Tim Seymour
New Year's wishes. I'm going with. I just want to see my 12 year old eat a cheeseburger. Yeah. I mean, we're still in the chicken stock. Sounds like it's attainable. Yeah, I mean, I don't know. It's. I've said that for the last five years.
- [39:46]
Melissa Lee
Shoot it out in Times Square. We'll see what happens. Lastly, people can actually have the experience themselves if they wanted to. Right. How do they do that?
- [39:54]
Tim Seymour
Indeed. So the building will have about 22 floors of immersive experience opening next week and through and staggered through the spring. And we expect about 8 to 10 million people a year to go through the building. There's an observation deck on the roof and a history experience of all the last 120 years of events in the square. So this is what most major events in the world have played out with. One Time Square at one point in the background. So we're excited about it.
- [40:20]
Melissa Lee
Michael, thank you so much for stopping by. Thank you so much for getting all these treats out to our audience. We really appreciate it.
- [40:25]
Tim Seymour
Thank you.
- [40:26]
Melissa Lee
Michael Phillips, One Time Square. All right, so let's turn back to Guy. Guy, as you saw there live in our audience.
- [40:33]
Tim Seymour
Unbelievable. Mel and I will say this in Oprah Winfrey fashion. We don't have cars, but you get a crystal and you get a crystal and you. Everybody's getting a crystal. And thanks for our friends at One Times Square. Unbelievable, unbelievable event I had there with them. And this audience is fired up. We're going to do questions in a minute. But. But, folks, round of applause for you because this has been amazing. Give yourself a round of applause.
- [41:18]
Melissa Lee
Oh, you're still on. You got a question from Gina.
- [41:22]
Tim Seymour
Well, that's news to me. Hello, Melissa.
- [41:25]
Melissa Lee
I thought that was like a pregnant woman.
- [41:27]
Tim Seymour
This gentleman came all the way from Paris, France. Now, I don't know if you know this, but Tim Seymour is fluent in French. Did you know that? No. No. Yeah. Tim, you want to say something in French real quick? Come on. Je m' appelle Timothy. Excellent job. Can you just, can you say Happy holidays in French for our folks? Hope that was all clean, because if it's not, I got a problem. What's your question, sir? Yes, there are a lot of unicorns that are expected to go public next year. Are any of them by now, such as OpenAI? That's a dan Nathan question. The unicorn on the desk. Dan, a little bit about, you know, OpenAI and SpaceX. These are ones that are kind of eyeing IPOs. At some point in the next couple of years, I'd look at Anthropic just from a valuation standpoint, and some of the things that their models do or I think are unique to what OpenAI is doing. So Anthropic would be interesting to me. We have another. We're going to walk to the front of the crowd here. Melissa, this young lady is in from Boulder, Colorado. This is Gina. Gina, how are you?
- [42:48]
Melissa Lee
I'm wonderful. How are you guys?
- [42:50]
Tim Seymour
See that look? She. That's a dangerous look there. I'm well, Gina. I'm doing well. What's your question?
- [42:57]
Melissa Lee
My question is about Meta. Meta recently cut a big chunk of its metaverse budget. I personally see that as a positive reallocation towards ads and AI. Karen, what do you think? Karen Feynman totally agree with you. And I think the stock bounced on that news. You know, part of what's been weighed. Not part, all of what's been weighing on the stock is this enormous spend. And Mark Zuckerberg, on that last call, did not hold anyone's hand that it would be tempered spend. He was like, we are all in. I'd rather overspend than underspend. So I was very happy to see him rein it in on Metaverse spend. And if he ends up reining it in on a I spend next year, I think that will actually be a positive for the stock as well. So I'm with you.
- [43:39]
Tim Seymour
Chris is here from the great state of Texas. And you're wearing something. Educate us, Chris. This is representing my people back at home. Tooth time. What time is it? It's tooth time.
- [43:50]
Melissa Lee
There you go.
- [43:51]
Tim Seymour
We didn't even rehearse that.
- [43:55]
Melissa Lee
There you go. Thank you.
- [43:56]
Tim Seymour
Also, shout out to my other Texas.
- [43:58]
Melissa Lee
People who I just met.
- [43:58]
Tim Seymour
There you go. It's a great state of Texas. Lone Star State. What's your question? Now, listen, I know Tim is a.
- [44:03]
Melissa Lee
Big, small cap hater. You weren't always a large cap. You started the small cap yourself.
- [44:11]
Tim Seymour
Well, I tell you.
- [44:12]
Melissa Lee
Is this the year? Is this the year for the small cap?
- [44:16]
Tim Seymour
I'll tell you what, Chris. It's certainly been the last couple of weeks, and part of hate's a strong word. My point is more about relevancy. And in a world where I think there are opportunities in the markets, I believe that owning small caps is a commitment. And it's a commitment that's not a significant commitment to the overall portfolio allocation. Thus my obnoxious, sarcastic comments. All you small caps out there, I am so sorry. Your wonderful stocks, I just think in a traditional allocation, where should small caps be? Should they be 3%, 5%? And should they be in the form of an ETF like the IWM, which has underperformed the S and P for a long, long time until only recently? Small caps tend to be very economically sensitive. There are times to allocate here, but my view is, if you're ready to be investing over time, you should absolutely. Only some small caps. And I would prefer you do some stock picking there. And don't make it too disproportionate to the size of your portfolio. Marcus here from the state of Ohio. Now, I don't know if you know this. Joe Kernan, Cincinnati, Ohio. Sarah Eisen, Cincinnati, Ohio. Courtney Reagan, not Cincinnati, Ohio. But she's from Ohio, well represented. How are you Tonight doing well. Oh, Ohio. I get it. What do you got? Oh, you have a gift. It looks like I do. I got something for the Christmas tree. But my question is with Generation Jones, where do you think they're going to spend their retirement money? Is it going to be casinos, concerts, cruises? There's a lot of good stocks. Viking, rcl. When mgm I think is our resident cruise director that Steve Grass. You might have some thoughts on that. Yeah, I think experiential stocks will always serve you well. But you have to have a great economy. You can't have an economy heading into recession. Recession. If we get lower rates, people are going to buy these experiences more readily than with higher rates. And I think we could, if we could fend off a recession, I think these stocks will perform well. I think that's about it on the question front here, Mel. But this audience is invigorated. They're excited and they're excited to meet everybody. Throwing it back to you.
- [46:19]
Melissa Lee
Yeah. Only moments away from when we will meet them ourselves. Up next, we got the final trick. Time for the final trade of this very special Fast Money Live. Tim and Dye. I'll toss it over to you in the room.
- [46:36]
Tim Seymour
I'll tell you what. How about this audience, guys? Doesn't it get any better than this? We have the best fans in cable tv, in any TV and certainly in the financial TV world. It's been great to have you. And the, the consensus is Tim Seymour is the best looking guy in the show. It started right over here and it's moved its way. And guy obviously brought his joke book tonight and he got the best sweater. But look, final trade time is also a fun time because this is a time to really actually what we call idea generation. What's your final trade this evening, young man? What time do I have? I'm not really sure.
- [47:07]
Melissa Lee
I don't know. Well, minute 15.
- [47:10]
Tim Seymour
Minute 15. So let's talk about Delta Airlines. We'll talk about margin accretion. We'll talk about the part of the economy. Planes, trains and automobiles that are actually taking off. This is part of the other 493. I like Delta Airlines here. We got a cocktail party coming up. We've got Q and A. They got confetti, they got Waterford crystal. This has been a fun group. Give yourselves a round of applause. Lululemon. Mel, back to you.
- [47:31]
Melissa Lee
Yep, what a group we have tonight, Karen, your final trade. Yeah. So Uber shellacked the other day on the story of Amazon delivery. I like it though. Derek Hazbushahi is a CP CEO. You cannot count him out. Dan yeah, Zoom.
- [47:45]
Tim Seymour
Bearish to bullish reversal. Very cheap. I think this could be a great stock in 2026 and it's just making a close today, a new 52 week high. Steve I should have let one of them give me my final trade. That would have been nice, right? Just should have kicked it out there. That would have been great. I can't wait to get back out there. It's going to be nice. Churchill Capital, it's merging with Inflection, which is a quantum company.
- [48:09]
Melissa Lee
Thank you for watching Fast Money. Thank you all you fans out there, especially the ones here in house at the NASDAQ market site. Give your hand self a round of applause. Madden Money to Fame restarts right now. All opinions expressed by the Fast Money participants are solely their opinions and do not reflect the opinions of cnbc, NBC Universal, their parent company or affiliates, and may have been previously disseminated by them on television, radio, Internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information the Fast Money participants consider reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Fast Money disclaimer, please visit cnbc.com fastmoneydisclaimer.
- [49:05]
Tim Seymour
Before the trophy and bragging rights are rightfully yours. Before your sleeper turns In a season no one saw coming, before stats and projections turn into points on the board and your lineup falls perfectly into place, you flip the lid on a can of on nicotine pouches and as you make your first pick, you know this is the season where fantasy's going to surpass reality. It's on products for tobacco consumers 21 years of age or older. Warning. This product contains nicotine. Nicotine is an addictive chemical.