← CNBC's "Fast Money"
CNBC's "Fast Money"
Losing Momentum?... And How Nvidia’s Results Will Impact Stocks 2/24/25
00:43:51
The momentum trade losing just that… as the tech heavy Nasdaq flirts with negative territory for the year. The stocks seeing the biggest drops, and the sector heading higher amid the volatility. Plus Nvidia results just days away, and as markets look to shake off last week’s sell-off, the report could have a big impact on the broader markets. What to expect from Nvidia, markets, and more. Fast Money Disclaimer
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- [00:00]
Karen Finerman
What if your business could see beyond the what is and into what can be?
- [00:05]
Guy Adami
What if you could create more impact in every decision?
- [00:07]
Karen Finerman
What if you had a partner as visionary as you are?
- [00:10]
Guy Adami
With bank of America you get access to our trusted experts, real time insights and digital tools.
- [00:16]
Karen Finerman
So whether you run a local shop or a global enterprise, you're backed by Business Solutions to make every move matter.
- [00:21]
Guy Adami
What would you like the power to do?
- [00:23]
Karen Finerman
Visit bankofamerica.com banking for business to learn more. Bank of America is proud to be.
- [00:27]
Guy Adami
The official bank sponsor of FIFA World Cup 2026. Are you still quoting 30 year old movies? Have you said cool beans in the past 90 days? Do you think Discover isn't widely accepted? If this sounds like you, you're stuck in the past. Discover is accepted at 99% of places that take credit cards nationwide and every time you make a purchase with your card, you automatically earn cash back. Welcome to the now it pays to Discover. Learn more@discover.com credit card based on the February 2024 Nelson Report.
- [01:01]
Courtney Reagan
Live from the NASDAQ marketsite in the heart of New York City, Times Square. This is fast money. Here's what's on tap tonight. Hitting a wall. Shares of some recently red hot stocks dropping sharply today as more defensive names continue to catch a bit. What to make of the shift in momentum and I should trade the moves and decoding diamond. JP Morgan CEO sitting down with our Leslie Picker earlier what he had to say about the consumer tariffs and the future of regulation plus the nuclear trade stalls out hims and hers slims down after earning and WNBA star and changemaker Brianna Stewart on her newly launched 3 on 3 women's basketball league. I'm Courtney Reagan in this evening for Melissa Lee coming to you live from Studio B at the Nasdaq. On the desk tonight we have Tim Seymour, Karen Fireman, Guy Adami and our guest reader tonight Joe Moglia, former chairman and CEO of TD Ameritrade. What a day. Well we start with the momentum being sucked out of some of the hottest parts of the markets of late. The Nasdaq going negative for the year as met as historic 20 day win streak turns into five straight days of losses, its longest losing run since August. Palantir, Wal Mart and Robinhood all slamming the brakes over the last week as well. Three stocks at or close to records before seemingly running into a brick wall. Even Alibaba dropping 10% today despite Morgan Stanley upgrading the Chinese tech giant. It was up over 15% last week and trading at more than 3 year highs meanwhile, defensive sectors, consumer staples, utility and energy really begun to outperform among the best groups so far this month. So how do you make sense of this loss of momentum? Tim? Not a lot of huge news flow to really turn the tide, but we just continued what we saw on Friday. Sentiment changing. Is the bull rally over?
- [02:41]
Guy Adami
I agree. Kind of a nuanced day because if you there's some, some stats out there that are floating around the market which is that hedge funds exposure to MAG7 stocks is is at its lowest since April of 23 kind of, you know, you kind of see that after some of the moves. The dynamics we have I think overall with what's going on with the post deep seek environment, whether it's spend, whether it's AI, whether it's data center where it's all the related trades. Also other comments out there today that Microsoft is actually looking to cancel leases on certain data centers puts a little bit more of a scare into the capex spend part of it. It's all ahead of suddenly. I know it always feels like it's the most important earnings call but Nvidia really feels critical for Wednesday. And then if you get back to the charts, semiconductors which we've all chronicled here, have led them, have led the Nasdaq which have led the S and P for four years. Really it seems like it at least for two or three years. And now the breakdown in the semis is very gradual. It's kind of what you said. We've been going sideways for months but we're getting to a place where not only did we close below the 50 day which we've done now six times in the last six months, but most of them have come in the last three weeks. But we're about to possibly have a bear cross which is where the 50 day crosses over the 200 day. Simply saying that that long term trends may be starting to change if we wanted to oversimplify what that means. So there's a lot of different things, both technicals and I think some nuances. Nothing has changed in terms of the backdrop. We've got the same administration that people are very excited about the market implications for. I saw Scott Bessant talking about how policy is disinflationary. I believe him and I feel very confident in that Treasury Secretary, but I think there are dynamics for this market. It's as much about positioning and sentiment right now.
- [04:14]
Courtney Reagan
Guy, what do you make of everything that's going on here? And just recently this afternoon Trump was saying look, these tariffs that we had planned for Mexico and Canada. They're going forward as scheduled. We don't have a lot of the details yet but I mean is that going to rattle markets then going in further tomorrow?
- [04:27]
Tim Seymour
Welcome as always.
- [04:28]
Courtney Reagan
Thank you.
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Tim Seymour
And welcome back to Joe. With that said, I mean I think the markets figured out how to sort of handicap tariffs and a lot of the rhetoric out of the White House to me, and I'm glad to mention it, you know, semiconductors have led the way without question. But you know what's fascinating, the SMH which is not the best constructed ETF but the one we all look at that made its high in July of last year and ever since then it's been trading sideways now to slightly lower which I think is interesting. And Microsoft, which I think we all would say is one of the top five most important companies in the world that also made its all time high in June, July of last year has been trading lower since. So there are a lot of things around the surface despite the fact that the S and P is effectively at all time highs to be concerned about. And then over the weekend we hear that now Warren Buffett has north of $330 billion in cash sitting around and that Buffett indicator which is not a timing mechanism is now north of 210%. So as much as there are things to be I guess optimistic about, there are a lot of things to be concerned about on the metric side.
- [05:26]
Courtney Reagan
Karen, again we're seeing these defensive names obviously catching a bit today. Consumer staples higher but not, not like what we saw on Friday still. I mean anything fundamentally change for you today?
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Karen Finerman
No, I don't think so. I mean it's to me the, the air coming out of some of these things. So Palantir at 90. It's not shocking that it's at 90. It's shocking that it was at 145. Oh right. To me Carvana at 285. It's not shocking now it's a 215.
- [05:51]
Guy Adami
Walmart at 110 maybe.
- [05:53]
Karen Finerman
I mean I'm long so of course I feel just fine. But you're right, it was you know, too expensive for it. So there's a lot of those names that I still read it for example down I don't know $50 or more affirm which I that the last two quarters were spectacular. The stock just sort of got ahead of itself. We'll see. We got some very big earnings this week. I think actually in video is obviously really important. I own it is certainly important to me but I Don't think it is as much of a linchpin as it was last year when it was all mag seven. And I think we've started to see things really broaden out in terms of where, where, you know, health care today was really good. Staples has been doing nicely. Industrials had a really tough, tough week. But I think it's important, but not quite as important.
- [06:40]
Courtney Reagan
You know, Joe, Karen brings up some names that I know a lot of retail traders are really interested in. Palantir sort of jumps out to me, I mean to see a big drop like that, about 10% today, that sort of worry the trader at home following along. Is there, is there more fear that's going to be shaken out?
- [06:53]
Joe Moglia
Well, Courtney, when I was on the show last time, I said as an executive I felt great about the operating environment and I said as investor I hadn't been more bullish in like decades. And since then we announced the tariffs, we had the deep sea surprise. And when you look at what's going on, I think now it makes sense though. I think for the individual investor to be a little bit concerned. We talk about the technicals, look bad, there's a lot of negative sentiment. Consumer sentiment was bad the other day. But I think as far as the individual investor goes, as long as you've got uncertainty, there's been an incredible run here. We can't forget that. So the last year has been great. The last three months has been spectacular. Been spectacular. So in the face of uncertainty it makes sense. It takes. Definitely takes something off the table. But I think I would look at a significant drop. I would look at getting back in the market aggressively.
- [07:39]
Courtney Reagan
Karen, you brought up Nvidia. I know, Tim, you did too. And obviously this is a really big name this coming this week. What could they say or could they say anything to turn this momentum around? I mean they were the driving force for so long.
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Karen Finerman
I mean I would have to be. I don't know that it's so much this quarter. To me, guidance for them is that's going to be what's crucial if they put up a really big number for what. What they expect. But I don't know why they would do that.
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Courtney Reagan
Okay.
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Karen Finerman
I mean they've always why they would.
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Guy Adami
Put up a big number or why.
- [08:06]
Karen Finerman
They would giant number. Like why over. You know why. So the very thing.
- [08:10]
Guy Adami
Like some powder.
- [08:11]
Courtney Reagan
Yeah.
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Karen Finerman
A little, a little sandbag. I mean obviously the pressure is on them to put up a very good number, but why do they need to put it all out there at the same.
- [08:20]
Courtney Reagan
How Much how defensive do you think they need to be about the deep seek news that's come out since we heard from them last?
- [08:25]
Guy Adami
I don't think they're going to address it defensively at all. I don't think they need to. I mean, I think Nvidia is so far ahead of everybody else and the spend there question is how much have we priced it in. I think for market participants though, Nvidia is not a name that's going to get away from me this week. I just, I don't know what they can tell me on Wednesday after the bell that we don't already know about Nvidia's positioning and that includes again the entire software, the platform around this. This is where I think they really are well insulated from the competitive landscape and deep seat. I think it's on some level it's apples and oranges, even though we know that deep sea brought into this question about how much spend was, was really appropriate here. But again, from the market's perspective, given how semiconductors have had such leadership and you know, we've, we've meandered, I think Karen's right. I don't think Nvidia is critical to the broadening of the market. It's already been broadening. But I do think, you know, the headline indices which have been buoyed by, you know, five to seven stocks for the last year and a half. And look, we all wanted this a year ago. We came into 24 and I'm sure I said a few times there's no way these six stocks are going to be 35% of the S and P ever again. And yet as we came into 25, they were probably a little larger.
- [09:33]
Joe Moglia
Now, one thought I have, as far as that goes, I think one of the things we want to look at, I think is critical with the earnings for Nvidia on Wednesday is the data 7 data center revenues. You got to see where they are, see where they're headed and they know better than anybody else the impact that the deep SEQ is going to, going to have on them down the road. So I think data 7 revenues, what's the trend there and what's your forward guidance going to be? That will tell you a lot, I think in terms of how concerned they are or how much they have it under control.
- [10:01]
Courtney Reagan
Tim, you talked about Alibaba on Friday, which was just the last show, obviously also having another kind of bummer of a day. What do you, what do you make of the train changing your thesis at all?
- [10:10]
Guy Adami
Well, again I think there's some dynamics around this that the technical side of this is I think CTAs, you know, picked up this trade over the last couple of weeks and so there's been some fast trading of it. It explains kind of the parabolic move I would get back to. I'm not scared of Alibaba at $130 because I think the fair value of the company is 190 or probably in the 200s. I think what we outlined on Friday, that makes the story it's evolving from, we always knew it was cheap, some of the parts we knew there's a lot of cash. But the dynamic around what's going on in terms of the column, the China tech superpowers are now being actually pushed and supported by their government. Jack Ma has returned to the scene. He is actually a critical piece, I think, of some of their view on their own tech future. What we heard out of Ali Cloud, what we heard out of their core businesses that are leading in China is very positive. So I love the fundamentals about Alibaba. I hated today's move, but I tell you what, it was due for this and I think a bit of a reset on sentiment is fine.
- [11:06]
Karen Finerman
But don't you think a lot of it was cfius, though, this uncertain, you know, what is cfius going to. What are they going to decide that they can't have Chinese invest in the U.S. i think that was a lot of what happened today as well.
- [11:19]
Joe Moglia
There isn't any question. Alibaba is a tremendous company from a fundamental perspective. But one of the things that I get concerned with, one of the things that I know the retail investor gets concerned with, no matter how great it is, maybe fundamentally there is absolute serious tension between ourselves and China. The geopolitical risk there, the tariffs. It's going to be a tariff war, right? No matter what we put on them, they're going to put on us back. And how devastating that could be over time. We don't know how honest is the Chinese, not the Chinese people, the Chinese government are going to be with regard to giving us information that's accurate and honest. So that's what scares me. The risk associated with something we have no clue of and we don't trust them. It's difficult then to say, step up a buy it.
- [11:56]
Tim Seymour
One of the things we talked about on Thursday, and I'm sorry I missed on Friday, but you know, it had this. An ibubble went from 80 to 145, pretty much in a straight line. You know, we Thought that given earnings, given the amount of volume traded, it made sense to trade back to that prior high that we saw in the fall, which is about 118 and we're within earshot of it now. So you're looking for a place to get back in. I agree with everything Tim said. This stock should be significantly higher and quick about Palantir. I mean, he's been telling the same story now for the last five and a half or six years. The story hasn't changed. People now picked up on it. But at its zenith a week or so ago when this was a almost a $300 billion company, you were trading 60 times revenues. They only could do $5 billion in revenue, which again is not an indictment of the company, it's an indictment on the market forces that bid it up to those levels.
- [12:39]
Joe Moglia
It had, it had a full forward multiple of 190 at the zenith. And now what is 130, 266 I.
- [12:46]
Karen Finerman
Have asked but it could change, fluctuate wildly.
- [12:49]
Guy Adami
30.
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Joe Moglia
It's dirt cheap.
- [12:51]
Guy Adami
But I think the point again, Alibaba versus Palantir is Karen's point where the go go, the momo stocks that have actually defined both this liquidity run and this sense of risk aggression. I think you've started to see it break down. It's breaking down at least in places where I mean Palantir is a real company, has real technology, has real relationships with the government, has an order book that's very impressive in terms of the Fortune 50 companies in this country. But the chase on that and what I would hear from people, I can't tell you how many people have asked me about Palantir that I didn't even know, knew there was a stock market. I mean that's the kind of dynamic I think you've gotten with a bunch of stocks. I think it's healthy to see some of that fever break. And again, I think that's why this week is so important. A couple other things, you know, we had, we had almost record demand today on a two year note auction at a time when people are concerned about treasury issuance. We had, we had German elections over the weekend that I think are very important in the global geopolitical scheme that we're all concerned is very fragile. That was a bit of a relief. I mean there's a lot of interesting things going on and I think these cross currents, I think you're going to see a lot play out this week, active week.
- [13:56]
Courtney Reagan
Well, meanwhile, JP Morgan CEO Jamie Dimon chatting with CNBC'S Leslie Picker at the bank's Global Leveraged Finance conference in Miami. Dimon commenting on tariffs, the moves out of Doge and the state of the consumer. Leslie joins us now for the highlights. Hi, Leslie. Hey, Cord. I was curious to get Diamond's thoughts on the recent tariff moves and the cost cutting efforts through Doge. Neither of them really seem to concern diamond too much. He said if tariffs are, quote, properly used, they're actually a good thing. But if they're overused and there's retaliation, that could be bad, bad for the economy. He said he's taking a wait and see approach there now in terms of Doge, diamond said he's he hopes it's successful because the government is, quote, inefficient, not very competent and it needs a lot of work. He said that if there's overreach, the courts have stopped it. We also talked about bank oversight and what he makes of the hollowing out of some of the key regulators for the industry.
- [14:50]
Karen Finerman
We have become a highly bureaucratic, litigious, over regulated society and it's bad. If you don't believe me, go to Europe. I'm not saying we shouldn't have regulations. We should protect the financial system, we should protect the food system, the water system. But the American Post show this is bureaucracy completely run amok.
- [15:14]
Courtney Reagan
He said it's possible to make the banking system virtually fail safe if there were more conversations about how to do that and less focus on academics court. It was a great interview, Leslie. Very wide ranging. If anyone missed it, check out cnbc.com, it is there especially if you're a pro subscriber. I think you get all the big highlights. Thanks, Les. Joe. You know, obviously Leslie hit on a lot of topics with Jamie Dimon. He speaks very plainly. We love to hear what he has to say. What did you make of some of his comments? Where do you think we are right now with the government sort of intervening and all these things that have the tentacles wrapped around markets?
- [15:47]
Joe Moglia
Yeah, I think that the key that really struck me is the whole thing with regard to Doge. So when I began at Ameritrade, that was 20 years ago, but when I began that we were 100% going out of business. Not a maybe. And I thought we were a financial service company. We weren't. When we looked at our core competencies, we were a technology company, a financial service wrapper. So we're either going to go out of business or we figure out our core competencies. We did that once. We did that. We Eliminated literally everything else. We took half of the savings and we offset our losses and we put the other half into transaction processing, buying and selling stocks, what we're good at. So you look at the government now, if the government was a business, it would go out of business. It will literally go out of business. It's poorly run, it's inefficient. It allocates entitlements. There's money all over the. All over the place that's poorly allocated. It's inefficient, it's struggling. If we don't get our arms around that, you know, we're going to. We're going to have troubles. Musk, I think, is doing a good job of addressing it. I think a couple of things. I think, number one, nobody wants to lose their jobs, but if you do offer them a really fair severance package, that's going to help the hurt a little bit associated with that. And the other thing is the image. I know Musk is going to do whatever he wants, but coming out on the stage, you know, with a chainsaw, that doesn't make you feel warm and fuzzy.
- [17:03]
Guy Adami
Chainsaw before, years ago, it was effective.
- [17:06]
Courtney Reagan
Doesn't make you feel warm and fuzzy.
- [17:07]
Joe Moglia
Doesn't make you feel warm and fuzzy.
- [17:08]
Courtney Reagan
I get your point, Karen. I knew you watched the whole interview. You had a couple times.
- [17:11]
Karen Finerman
Of course I watched the whole interview.
- [17:12]
Courtney Reagan
I watched it twice, of course, three times.
- [17:14]
Karen Finerman
Why not once with the sound all just to. But no, I thought it was interesting. I think Jamie's main message is, just calm down. Everybody just calm down. Take a breath. We can't get excited about every little thing. But the other thing I thought he said that was important was Leslie had asked him about, okay, you might have $60 billion of additional capital. What are you going to do with that money? And he talked about, most important thing, grow the business. First you have to guarantee the dividend. The dividend needs to be sacrosanct. So that's always what you want to try to do if you possibly can. And sometimes they've had to cut their dividend. The second one was grow in the third one, buyback stock. And he sort of made it sound like he wouldn't be buying back stock right now, which isn't shocking because he thinks his stock is expensive. But I'm long, right?
- [17:59]
Guy Adami
No, I think you're nailing it with the dividend, too. I think the fact of the matter is banks were uninvestable to a lot of investors for a long time. They started paying money back we started getting to a place where some of the deregulation dynamics were changing. Then you had SBB and you had a dynamic in May of 23 where banks looked like it's getting concerned. As we went into the election season it started to look not great for banks either. I tell you the environment we have for banks I don't think we've seen as good as we have since the early 2000 because deregulation is not only in the right direction for banks but also the efficiencies that are coming from member Fintech is an overused term. Banks have never been more efficient. I will help banks probably as much as anybody and we have a steel a steep yield curve. So Citibank to me the cheapest of the money center banks is the place I think all of these trends come together at once. But I, I love what Jamie saying. I also think deregulation around the world is following an American lead and that's fascinating because again back to Europe, I mean talk about a place where, where I think regulation twisted this place up into. Into knots they couldn't get out of. I start to see that unwinding a bit. It's part of why I think Europe's.
- [19:00]
Joe Moglia
Rallying I think in the financial world what financials rather I think with the deregulation M and A is going to start to play a much bigger role and the efficiencies that can come out of that guy.
- [19:10]
Courtney Reagan
I want to make a turn before we have to go here. I mean Dimon said the consumer he thinks is okay but look at shares of Wal Mart down three days in a row after they put out the report which was a really good quarter. Karen and I talked about it fundamentally it doesn't seem to be worry maybe their earnings weren't as high for the guidance as consumers would like to see but investors would like to see but nothing really scary there. Who's right about the consumer?
- [19:31]
Guy Adami
Wal Mart or what?
- [19:31]
Courtney Reagan
Jamie says I don't think the Wal.
- [19:33]
Tim Seymour
Mart actions anything to do with the consumer. That's just my opinion. It was more predicated on a valuation just got expensive and they really needed a crush in order for that to continue. We actually talked about that last week as well and the fact that inventories probably went up a little more than street wanted to see. So this move makes sense but I'm not going to indict the consumer. What I will say though are 90 day plus delinquencies are now the highest we've seen in about 14 or 15 years and that's only continue to grow. So as much as people want to say the consumer is in a good place, I'm not certain that's the case. They're fighting inflation with credit historically never.
- [20:05]
Courtney Reagan
A good you know what I paid for eggs the other day? $9,849 for a dozen New York City.
- [20:11]
Guy Adami
That buy not pay later.
- [20:13]
Courtney Reagan
No, it wasn't. It wasn't. But you know, I sleep all night with that weighted blanket. Anybody that watched on Friday, I've got.
- [20:20]
Guy Adami
I've got a Christmas gift for a weighted blanket. I'm not telling.
- [20:23]
Joe Moglia
I'm surprised you knew the price of eggs. Frankly.
- [20:26]
Tim Seymour
I listen. I'm on top. I have my finger on the finger on the pulse.
- [20:30]
Courtney Reagan
Well, coming up, some key names on the move. After hours, Hymns, Zoom and and more. Those are all reporting results. The details and numbers from those quarters are next. And some changes afoot at Nike while analysts see a swoosh in store for the name and a huge upside that could be coming for the stock. Don't go anywhere. Fast money is back into foreign.
- [20:53]
Guy Adami
Are you still quoting 30 year old movies? Have you said cool beans in the past 90 days? Do you think Discover isn't widely accepted? If this sounds like you, you're stuck in the past. Discover is accepted at 99 of places that take credit cards nationwide and every time you make a purchase with your card, you automatically earn cash back. Welcome to the now it pays to Discover. Learn more@discover.com credit card Based on the February 202024 Nelson report, businesses that are.
- [21:22]
Karen Finerman
Selling through the roof like Untuck it make selling and for shoppers buying simple with Shopify, home of the number one checkout on the planet, and with shop Pay you can boost conversions up to 50%. Businesses that sell more sell on Shopify, upgrade your business and get the same checkout untuck it uses. Sign up for your $1 per month trial period at shopify.com podcastfree all lowercase go to shopify.com podcastfree to upgrade your selling today. In 2018, Chinese tech company ByteDance launched TikTok in the United States, determined to make the app one of the top entertainment platforms in the country. Business wars is a weekly podcast covering the biggest corporate rivalries of all time. And in our new four part series, we explore whether TikTok is a legitimate national security threat or a political pawn.
- [22:09]
Guy Adami
In a new cold war.
- [22:11]
Karen Finerman
Follow Business wars on the Wondery app or wherever you get your podcast. You can binge business TikTok versus the USA early and ad free right now.
- [22:19]
Courtney Reagan
On wondery plus welcome back to fast Money. Check out shares of Summit Therapeutics sinking almost 15% after its Q4 loss was almost twice as big as the year before. The company also announcing a clinical partnership with Pfizer testing its cancer drug candidate in combination with Pfizer's drugs to treat solid tumors. Meanwhile, an earnings alert on hims and hers health shares dropping despite a top and bottom line beat. The conference call kicked off at the top of the hour. CNBC's Brandon Gomez joins us with more. Hi Brandon.
- [22:48]
Guy Adami
Hey Courtney. Look I spoke with the company's CFO Yemi Okupe ahead of the call. Look the stock has been a name that is make or break on weight loss. Still he emphasized the majority of 2024 revenue was outside GLP1 offerings and in fact increased 43% year over year. I did ask how he expects weight loss to grow now with the FDA declaring the Wegovian Ozempic shortage over. He didn't seem too concerned. Our aim again is not to look to circumvent any type of regulation in place that has kept consumers safe for decades. But we are looking to ensure that consumers have the ability to access medications they need where they have a clinical need beyond what is commercially available. Now focus on that Courtney. Clinical need. There are ways himss can keep compounding even post shortage clearly though investors pulling back a bit to wait and see what happens here. Shares down about 16 17% yeah Ren.
- [23:42]
Courtney Reagan
And wow that's quite a drop guy what do you make of of this name Seems to be fairly volatile and obviously very connected to this GLP1 we.
- [23:48]
Tim Seymour
Play this game here on CNBC's Fast Money the when you put the letters together. Yeah you know that thing the acronym.
- [23:53]
Guy Adami
The acronym.
- [23:54]
Courtney Reagan
The acronym.
- [23:54]
Tim Seymour
Yeah well Emily with a Y that's Emily Glass or cracks that course him's was one of her stocks and it was went from 25 to 75 in a straight line but now some reality is coming back and edits again talk about Adean it this company is trying 150 times earnings even now with this move it's probably trading at 90 times I mean it's a great company with a valuation it doesn't make sense. I mean it should be trading back down in my opinion. So about $32 is where it started.
- [24:20]
Guy Adami
This run a couple of things it's got almost a 30% short interest so you can be sure this thing's going to move around and it's going to move around especially on numbers. Their their revenues were solid. The guide Was decent. And again, the outlook is something that I think people probably believe is there for them. Margins were a little bit light. I think you can get back down to those levels though. And unfortunately, if you are a believer in the story, you are so tethered to the overall story around compounding and sub compounding and this is something I think they're going to continue to trade on.
- [24:49]
Courtney Reagan
Karen, would you dig into this one? You're in other names in health care.
- [24:52]
Karen Finerman
No, definitely not. I mean it's trading on something else. You bring up the short interest which is gigantic. 30% huge lack of that, it's no longer in shortage, is a big deal to them. I didn't really quite get that answer to the question.
- [25:05]
Courtney Reagan
Right. Clinical need.
- [25:06]
Karen Finerman
Yeah. So no, I am long Lily. I have straight to the source.
- [25:10]
Guy Adami
Sorry. I mean I look at Novo and I look at a Stock that's down 40% over six months and I look at the valuation there and I compare it to this. I mean it's a no brainer to me. You've got the company that's essentially supplying 2/3 of the supply of GLP1s out there. There have been issues there and there have been the competitive landscape and what they're doing in oral. But you know, to me, if you're going to, if you're going to take a, take a shot in the GLP land where you're looking to swing a little bit of a heavier bat than just going into Lily, it's Novo.
- [25:36]
Courtney Reagan
I like that. Take a shot. Is that on purpose?
- [25:38]
Guy Adami
Oh no, sometimes just flow out.
- [25:40]
Courtney Reagan
It came right out like so easy.
- [25:41]
Guy Adami
So it's nice when people catch them and you actually, I mean if, you know, if it was good, I would. It's also nice to look humble when you actually, you know, I don't know, joke. Totally planned.
- [25:51]
Joe Moglia
You know, most people are going to raise their eyebrows with, with this comparison. But remember back when we had the real meme, things going crazy, Robin Hood almost went out of business, literally almost. They were shut down, they weren't able to finish and in order for them to be able to make it, they had to significantly divert that one revenue stream, payment forward flow. That was it. They had to diversify that revenue stream significantly and they had to fortify the balance sheet significantly in the next couple of months. They got the balance sheet fortified and the last few years they've done a great job of spreading out the revenue stream. That's why they are what they are today. And they've done really, really well over the span last 12, 14 months. If, if these guys diversify the revenue stream, they're going to go down with the ship with regard to the weight loss product. If they don't do that, they're not going to make it. If they do that, they may have a shot. But if they don't do that, they're going to have a real problem.
- [26:38]
Guy Adami
Do you like Hood here based upon your background? I mean, if anyone's got a call on that business, it's you. Yeah.
- [26:44]
Joe Moglia
Okay. So the answer is yes. Based on what I just said, the answer is yes. So I'm really long financials and I'm really long all technology. Okay. So within that Hood's fintech. So, so I didn't want to touch it in the beginning. Then it started to do better, but then it started to take off. So it's doubled over the span of the last 12, 13 months or so. But it's come down recently about 25% for the first time. We've been looking for an opportunity to buy for the first time today we bought a decent position of 49. So I'm a believer. But we've been incredibly patient waiting for something to happen. Wouldn't have touched it three or four years ago. Glad we're able to pick some up today.
- [27:20]
Courtney Reagan
Look at that chart. Interesting chart there. But five years still up 31% after everything it's gone through. Well, there's a lot more fast money to come. Here's, here's what's up next.
- [27:29]
Guy Adami
A call on some kicks. Nike swooshing higher as analysts forecast some major air for the stock.
- [27:36]
Courtney Reagan
What they see driving the gains and how much hops are in store.
- [27:40]
Guy Adami
Plus, stocks looking for a rebound as investors digest last week's sell off.
- [27:45]
Courtney Reagan
All eyes are on Nvidia ahead of.
- [27:47]
Guy Adami
Its big report just days away, what it could mean for the broader market ahead. You're watching Fast MONEY live from the NASDAQ market site in Times Square. We're back right after this. Are you still quoting 30 year old movies? Have you said cool beans in the past 90 days? Do you think Discover isn't widely accepted? If this sounds like you, you're stuck in the past. Discover is accepted at 99% of places that take credit cards nationwide. And every time you make a purchase with your card, you automatically earn cash back. Welcome to the now it pays to Discover. Learn more@discover.com Credit Card based on the February 2024 Nelson Report.
- [28:34]
Karen Finerman
Businesses that are selling through the roof like Untuck it make selling and for shoppers buying simple With Shopify, home of the number one checkout on the planet. And with Shop Pay, you can boost conversions up to 50%. Businesses that sell more sell on Shopify. Upgrade your business and get the same checkout untuck it uses. Sign up for your $1 per month trial period at shopify.com podcast free. All lowercase go to shopify.com podcast free to upgrade your selling today.
- [29:07]
Courtney Reagan
Welcome back to Fast Money. We have a call of the day. It's on. Nike shares surging 5% after Jefferies upgraded the stock to a buy. Also naming a top pick. Analysts growing bullish on the company's turnaround stories, saying CEO Elliot Hill is quote tackling product and distribution issues head on. Jefferies new $115 price target implies 43% uptime upside from today's close. Karen, I know we've talked about this one before and I feel like the thesis all around was it's more of an investment, less of a trade. What do you make of Jeffrey's call here?
- [29:35]
Karen Finerman
Well, one of the things was interesting about the call. So 115 was the target. The high side was 140. The low side they thought was 70. So as an asymmetric risk reward. That's interesting. And the basis of the call was okay, yeah, they definitely had some missteps. They're getting on the right track now. You know, they are back to focusing on wholesale, back to focusing on product. Also if you look at on that stock has gotten crushed in the last short while. They I think have are in a much more difficult position. Clearly they've taken share but China tariff situation is much more difficult for on than I think it is for Nike. So this could, I mean I'm long, I'm long from higher which is sort of irrelevant at this point. The question is went out this price, what do you do stay long. I do think that a little bit of tailwind coming.
- [30:23]
Joe Moglia
I think they've acknowledged that they made some mistakes in the beginning with a new group coming in. So they've been down about 23% over the span of the last 12 months. But they're acknowledging that direct to the consumer may be a good idea but not if you're going to eliminate relationships with your, with your distribution. Distribution. You do not eliminate relationships with distribution. You don't do that. And then I think in terms of the cuts, that's never great for morale. Hopefully they're giving people good severance packages because that helps. But the other piece of that is with the cost cutting, Nike was always known for great innovation. Well, with the cost cutting, the innovation suffered. So it seems that they are at least acknowledging that. As long as they acknowledge that they have a pretty good shot.
- [30:59]
Courtney Reagan
Turning it around on last earnings call. It was very interesting. The CEO sort of called out some of those relationships and called out some of the CEOs by names of the wholesale retailers they have partnerships with and basically saying, like, we got to get back there. So I thought that was interesting, trying to repair some of that. But, Tim, I mean, you've got young kids. Nike is still actually pretty cool with some of the younger set, but we know that they've lost a lot of share to Vuori on aloe. I mean, you name it.
- [31:21]
Guy Adami
Look, I would be pumped if actually my son asked for a pair of air Jordans. He's 11. He asked for a pair of Air Jordans for Christmas. I ran down to the store together.
- [31:28]
Courtney Reagan
Do you have to explain who Mother.
- [31:29]
Guy Adami
I didn't care what they cost you because, I mean, they're cool kicks, right? And you know, at times I've been a little concerned. I mean, between, you know, the vans are cool too. But I mean, there have been the competitive landscape that I do think that today's youth are not. I mean, when I was growing up, it was Nike or Adidas. Guy, you may be with a pony. A pony. Chuck E's. Yeah.
- [31:50]
Karen Finerman
Tree torn.
- [31:51]
Guy Adami
Tree torn.
- [31:53]
Joe Moglia
I was growing up, it was kids.
- [31:56]
Guy Adami
So in fact, when we were growing up, my dad, when, when Nike started to become popular, he said, I'll buy you. I'll pay for anything. Up to a Jack Purcell, which was the canvas, like Keds.
- [32:06]
Karen Finerman
Now you have a pair of this.
- [32:08]
Guy Adami
And we, you know, the paper out money gave you enough to make up for the differential. So kids work hard.
- [32:12]
Courtney Reagan
When I was a kid, Michael Jordan was actually playing in the NBA. So, you know, forever. Forever Jordan.
- [32:17]
Karen Finerman
And now, like, he has a skims deal.
- [32:19]
Courtney Reagan
I know, which is incredible. They just had this new thing with skims, with the Kim Kardashian, which I thought was really interesting. I was very shocked by that.
- [32:26]
Joe Moglia
No, I don't know what he's making now, but as of two, three years ago, he was making over $400 million.
- [32:30]
Karen Finerman
Who?
- [32:31]
Courtney Reagan
Jordan.
- [32:31]
Joe Moglia
Michael Jordan on his shoes.
- [32:32]
Karen Finerman
I'm here a year.
- [32:35]
Joe Moglia
A year.
- [32:35]
Tim Seymour
I wear this often.
- [32:36]
Courtney Reagan
As you've got your skims on right now. Very slimy.
- [32:42]
Guy Adami
I was going to say it was obvious.
- [32:43]
Courtney Reagan
Can't see the line, can you?
- [32:44]
Guy Adami
Obvious.
- [32:45]
Courtney Reagan
Coming up. We're gearing up video earnings on Wednesday. And our next guest says Wall street could be pricing in a growth scare for the darling. What to expect from its report, the markets and more when fast money returns. Welcome back to BEST money. Stocks attempting to rebound after last Friday's sell off but ultimately closing the day lower. The dow up just 33 points. The S and P down a half a percent. And The NASDAQ tumbling 1.2%. Shares of AT&T&T mobile heading higher. AT&T trading its highest levels in nearly five years. In T Mobile hitting a record in today's session. Berkshire Hathaway jumping 4% on the back of their earnings report. The company posting record profit fueled by insurance underwriting. Berkshire also posting boast boosting its cash pile to more than $334 billion. And some more after hours action. Zoom Video beating earnings expectations but posting light guidance. Diamondback Energy beating estimates on the top and bottom line. And Cleveland cliffs lower after missing earnings and revenue expectations. Tim, I want to circle back to that AT&T and T Mobile news, though. What do you think?
- [33:54]
Guy Adami
Well, first of all, let's, let's be clear. This has been T Mobile's world and everyone else who's wanted to try to play in it. And I mean as a stock and I mean as a company that I think really made the right investments was so far ahead of everybody. Look at, AT and T though, this is a story where there's been some debt paid out. There's actually been a margin story. I think, you know, the fact is through attrition and through the entire wireless and mobile community, you have been left with a handful of legacy players who now do have some pricing power. You're seeing it, you're seeing it in your bill. And AT&T is probably getting more from you. I think this is a story where the multiple is rerating and I think you can stay there. I like it.
- [34:29]
Courtney Reagan
One of Wall Street's biggest bulls thinks that the market is nearing a key buying opportunity. It's tied to President Trump's tariff plans against Canada and Mexico. The month long delay expires next week. Julian Emanuel is Evercore ISI senior managing director. He joins us now. And Julian, thank you for being here with us. Obviously, this afternoon, the president says, look, it's still on the table. It's going to go forward. You don't know the full details, but we know at least that today. How do you think that plays out into what the market will react? Well, react.
- [34:56]
Julian Emanuel
What you saw this afternoon is what you should probably have seen given the fact that we've gone from this paradigm A week ago, where high valuation, high momentum, high volatility, stocks were just fine. And then the news changed. Right. We got some challenging news on the economic front with the PMI ise lower than expected. The inflation and the inflation expectation news has been higher than expected. And you put that all together, and that's the kind of thing in a market that in general is at the upper end of its valuation range is going to cause a setback. And so for us, you know, ultimately, we think that the story of 2025 will be written in terms of good earnings. Right. But at these valuations, when you get adverse news, you're going to get the volatility that ultimately we think is a buying opportunity.
- [35:49]
Courtney Reagan
You do. So how long do you think that we're going to see this volatility before things settle out and then again end up moving higher?
- [35:54]
Julian Emanuel
Well, if you tell me what we're doing with Canada and Mexico, and I'll tell you how long the volatility is going to last. No, I think if you think about it, right, the month of March has a lot of obstacles to overcome. Okay, you're going to have Canada and Mexico, you're going to have the government potentially shutting down or not on March 14th. And clearly, based on the dialogue that you heard today with Trump and Macron, you're likely going to have something more in terms of Russia and Ukraine that we'll just see how it gets interpreted. But again, going back to this idea that the economic news has gotten unexpectedly soft, the market in our mind is vulnerable. We'd call it down to 5,700, which essentially is where it was on election day, about 10%, a little less.
- [36:48]
Joe Moglia
Yeah. Okay.
- [36:49]
Julian Emanuel
And just one other point here is that actually, when you think about it, that might get some people a little bit unnerved. But actually, when you look at the average non recession year, the average drawdown in a non recession year is 13%. So you can make the case that this is going to be healthy as long as the economy stays steady, which we think it does, and earnings come in the way we think it will.
- [37:17]
Courtney Reagan
NASDAQ is now negative for the year here today. Do you think that the Magnificent Seven and the tech trade in general is over for some period of time?
- [37:24]
Julian Emanuel
No, we don't actually. We're not going to go out on a limb because given all the noise Wednesday afternoon, noon's report, if you look at the history of how that stock has reported, the reactions have been very variable. You know, whether the news is either great or super spectacular and the Stock has run higher over the last couple of weeks. So, but, but from our point of view, bull markets end when you either get gross overvaluation, which we don't have right now, the Fed killing the market, which the Fed is not hiking under any circumstance this year, or, you know, a turndown in the economy, which, you know, as I said, the data has gotten weak, but we don't see a discrete turndown, Julian.
- [38:12]
Guy Adami
So first of all, congrats because I think at Everquire you guys have had a lot of leadership both in terms of the strategy and the technical call on the markets for a while. So good for that. But when I hear growth scare, I don't hear 2 and a half or 3% down on the markets. I mean, a growth scare is something this market is not priced for. You've written a report that talks a little bit about places to be defensive, those companies that might be in a high volatility environment, low volatility stocks, more buybacks, etc. Talk about one or two of those names.
- [38:39]
Karen Finerman
So.
- [38:39]
Julian Emanuel
So, well, the, the iconic maker of mobile phones, the most, the highest value stock on the planet. Basically, when you think about what investors are going to pay for in an environment where there's a lot of uncertainty on the macro front, you want a company that's dampening its own volatility by buying back shares. Okay. By, and the idea of it buying back its own shares causes the volatility of that name to be low. And why can you buy back your shares? Because you're throwing off huge amounts of free cash flow.
- [39:16]
Guy Adami
Sounds like Apple. Well, you hadn't named it yet. I mean, it was time.
- [39:20]
Julian Emanuel
Sounds like it. But, but there are a number of those companies across all industries and a lot of them, frankly, in a momentum driven market have lagged over the last six months.
- [39:33]
Courtney Reagan
Good stuff. Julian, thanks for coming in.
- [39:35]
Julian Emanuel
Thank you.
- [39:35]
Courtney Reagan
Well, coming up, the second annual CNBC Changemakers list is here celebrating women all across business, media and sports. And one MVP is unrivaled both on and off the court. Her story, when Fast MONEY returns. Welcome back to FAST money. Today, CNBC unveiled the second annual list of changemakers, the women transforming business, sports, health care and more. Julia Boorstin spoke to one of those changemakers. Actually a lot of them, New York Liberty, Brianna Stewart, earlier today. Julia joins us now. Hi, Julia. Hi, Courtney. That's right. I just spoke to basketball legend Briana Stewart, who along with fellow NBA player Nafisa Collier, also a CNBC changemaker, launched Unrivaled, a new women's basketball league. Stewart told us why they launched this new league, how it's different and why she's bullish on the wnba, a new collective bargaining agreement and the growth of women's sports. Take a listen.
- [40:39]
Karen Finerman
We kind of wanted a place where it's like a players league. Really doing that the best way we could is giving equity to the players. Usually in the wnba life, it's just a constant grind. You know, you're in the wnba, you go overseas. And now we're kind of changing that pattern and making sure that players can be home, be in a different market, continue to build their brands because you see there's so many opportunities coming on and off the court for these players and taking advantage of the moment. We're really excited with the direction that we're going in the wnba. We just opted out of our current cba. So throughout this next year, we will be in a new CBA negotiation to continue to reach our worth and go after what we want.
- [41:23]
Courtney Reagan
You can find our whole list of women transforming business@cnbc.com changemakers and we're starting to unveil the headliners of our upcoming CNBC Changemaker Summit. It will be here on the beautiful universal lot on April 8th. You can check it out with that QR code to request an invitation. Courtney, very cool stuff. Julia, thanks so much. Congratulations on the list. I know a lot went into that. Karen, you nominated Stewie.
- [41:47]
Karen Finerman
I did. I nominated Stewie and Aficia. I don't know if we still have Julia, but my daughter did go to Unrivaled this weekend in Florida. Florida said it was fantastic. Just that list from last year was so extraordinary and there's hundreds more to find. But this year there's another great batch and I'm going to be out there August 8th.
- [42:03]
Courtney Reagan
That's so cool. That's really cool. I really love look forward to all these April every year.
- [42:06]
Karen Finerman
Not August.
- [42:07]
Courtney Reagan
Yeah, April, August. You know, we can watch it all the time. It's so nice to have new names to follow and watch along for all these women and change makers. Well, coming up, a fallout in the nuclear power trade as some AI energy stocks get hit. What's behind the drop? And could there be an even bigger meltdown in store? That's next. And here's a sneak peek at the Kramer Cam. Jim's chatting exclusively with the CEO of Celsius. Catch that full interview at the top of the hour on Bad money. But more fast back into. Welcome back to FAST money. Nuclear stocks powering down today as weakening demand from air clouds the sector. Wall street analysts noted Microsoft's cancellation of datacenter leases as a warning sign for the sector. Constellation Energy, Vistra, ge, Vernova, all falling on the news guy. This is an interesting trade. We were watching pretty closely. What do you make here of this?
- [42:57]
Tim Seymour
I'm not running away from this. I mean, if you pull up a CG chart over the last, let's call it year or so, this is the third move of this magnitude we've seen. So when in May of last year, September. We're seeing it now. Valuation stretched a little bit, but the spend. You know, I know Microsoft scares some people. It's not going away. I mean, this to me is a secular shift. So I think you're buying ceg.
- [43:16]
Courtney Reagan
So even though. Even though Microsoft is so big, it shouldn't be. You shouldn't be. It's not 100%.
- [43:21]
Guy Adami
I'm long CG. I bought it after deep seek, after missing a lot of that run. That Calpine deal is a game changer. And if you look at where their capacity is, again, it's both in nuclear, but it's also in gas. Part of the Calpine deal was owning Texas, which is obviously one of the great growth stories of a state in our country. So you're buying this weakness.
- [43:41]
Courtney Reagan
All right, well, coming up next. Oh, Karen, I want to. I want to get you in here really quick. Sorry.
- [43:45]
Guy Adami
Oh, the music's playing.
- [43:47]
Karen Finerman
No, no.
- [43:47]
Courtney Reagan
On the nuclear train.
- [43:48]
Karen Finerman
Now what do I do? Well, I've had Qanta services, which is a Jason one. It's going to be a lot, but I really like it. It's a grid play.
- [43:55]
Tim Seymour
When the music plays, you have to thank. Like, thank your husband. Don't forget. Well, it's like when the music.
- [44:00]
Guy Adami
What do I do?
- [44:01]
Tim Seymour
Thank you, my husband, thank the kids, that type of thing.
- [44:04]
Courtney Reagan
You can thank your loved ones too, Joe, but I'd also like to get your take on this.
- [44:07]
Joe Moglia
Yeah, well, we own Exe. And how about the. I heard this on one of the shows. It may have been yours a little while ago. Is it the German smart? It was the German paradox. The. It's about as demand, the price goes.
- [44:23]
Karen Finerman
Down and the efficiency, the demand grows up.
- [44:25]
Joe Moglia
Deep seek. All those things that sort of happen now, people worry about demand coming off. I think the exact opposite is going to happen. So as the value, as the price starts to go down for the type of power you need, you're not going to use less. Less power, you're going to find more uses for it, therefore, it becomes more efficient. Therefore the Demand should ultimately go up over time. So what might look like a hookup, a hiccup early, could very well be a significant buying opportunity today for a few months from now.
- [44:51]
Courtney Reagan
She's at Energy in general. The XL is what you're saying.
- [44:53]
Joe Moglia
Yes.
- [44:53]
Courtney Reagan
Tim, what do you make?
- [44:55]
Guy Adami
I'm long utilities, I think across the board. I also long MLPs which have also gotten hit in the last couple of days. And this has been a story about efficiency and companies that are just run better to generate free cash flow. So on weakness, I'm buying utilities, I'm buying MLPs and I'm buying Constellation.
- [45:11]
Courtney Reagan
Okay, got a lot of good names there. Coming up next. Now, your final trades after this. It's now time for the final trade. Let's go around the horn. Joe, you get to go first.
- [45:31]
Joe Moglia
With everything going on the state of college athletics today, three years from now, there will be at least five college football players that will be making eight figures.
- [45:42]
Courtney Reagan
Hopefully they're on the Ohio State University.
- [45:44]
Guy Adami
They are.
- [45:45]
Joe Moglia
They will be. They're probably already doing that.
- [45:47]
Guy Adami
Great to have you, Joe. Thanks for.
- [45:48]
Joe Moglia
Thanks for. Great to be here.
- [45:50]
Guy Adami
Great to have you again. Back to back T mobile, I mean it's been back to back to back to back. This is a story that keeps on executing and the margins get better. T mobile.
- [45:58]
Courtney Reagan
Cara.
- [45:59]
Karen Finerman
Yeah, so last week I one day too early said sell Alibaba calls, which is what I did. But if you wait till the next day, which then that worked out nicely today I covered half of those Alibaba calls. I like it a lot.
- [46:11]
Guy Adami
Good move.
- [46:11]
Karen Finerman
Good to have you, Joe. Court.
- [46:13]
Joe Moglia
Thanks.
- [46:13]
Tim Seymour
Karen won't be here tomorrow, but I want everybody to know it's her birthday.
- [46:17]
Courtney Reagan
Happy birthday, Karen. Tomorrow.
- [46:18]
Joe Moglia
Happy birthday, Karen.
- [46:20]
Tim Seymour
A s Court.
- [46:21]
Courtney Reagan
All right, thank you for watching Fast Money. Mad Money starts right now. All opinions expressed by the Fast Money participants are solely their opinions and do not reflect the opinions of CNBC, NBCUniversal, their parent company or affiliates, and may have been previously disseminated by them on television, radio, Internet or another medium. You should not treat any opinion expressed on this podcast as 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 In 2018, Chinese.
- [47:16]
Karen Finerman
Tech company ByteDance launched TikTok in the United States, determined to make the app one of the top entertainment platforms in the country. Business wars is a weekly podcast covering the biggest corporate rivalries of all time, and in our new four part series, we explore whether TikTok is a legitimate national security threat or a political pawn.
- [47:33]
Guy Adami
In a new Cold war.
- [47:35]
Karen Finerman
Follow Business wars on the Wondery app or wherever you get your podcasts. You can binge business TikTok versus the USA early and ad free right now on Wondery Plus.