← CNBC's "Fast Money"
CNBC's "Fast Money"
Nvidia Reports Results… And A Big Move In The Pharma Space 2/26/25
00:43:43
Shares of Nvidia on the move after reporting its latest results. How the Fast Money traders are handling the semi giant, and the impact it has on the broader market. Plus Madrigal Pharma surging on the back of results. The latest drug data pushing that name higher, and what the CEO has to say about the company’s next move. Fast Money Disclaimer
Loading summary
Transcript199 lines
- [00:01]
Laura Castleton
Hello, I'm Laura Castleton with Janice Henderson Investors. Is a brighter future possible? At Janice Henderson, we think it is. We work to help our clients achieve superior financial outcomes and fulfill our purpose of investing in a brighter future. Together. We never forget that this means our.
- [00:17]
Melissa Lee
Thinking and our investments are helping to shape millions of futures.
- [00:21]
Laura Castleton
At Janice Henderson, we are committed to helping you invest in a brighter future. To learn more, go to Janashenderson.com this is a message from sponsor Intuit. TurboTax Taxes was getting frustrated by your forms. Now Taxes is uploading your forms with a Snap and a TurboTax expert will do your taxes for you. One who's backed by the latest tech which cross checks millions of data points for absolute accuracy. All of which makes it easy for you to get the most money back guaranteed. Get an Expert now on TurboTax.com only available with TurboTax Live full service. See guarantee details@TurbotaX.com guarantees live from the NASDAQ markets out in the heart of New York City's Times Square. This is fast money. Here's what's on tap tonight. Nvidia on the move. Shares just turning higher after beating sales and profit estimates. What is driving the volatility and what could it mean for the trade? Plus magical Madrigal shares of the pharma company hitting more than 12 year highs on the back of its results. The CEO will join us for more on the latest trial data and what's next for the name and revving up GM upping its dividend and buying back billions in stock is enough to keep shares accelerating. How the traders are playing the auto giant right now. I'm Melissa Lee coming to you live in studio. Be at the nasdaq. On the desk tonight, Tim Seymour, Steve Rosso, Dan Nathan and Guy Adami. We start off with an earnings alert on Nvidia shares, the chip maker volatile after its results. It's currently up at 2.6%. The conference call just kicking off last. Let's bring in CNBC's Christina Parts Nevlis for more on the quarter. Christina?
- [01:55]
Christina Parts Nevelis
Well, you mentioned it. They beat on both revenue and profit, but growth is slowing. Their guidance still came in above Wall street expectations as well as buy side expectations of 42 billion. That was a key number. Data centers remain Nvidia's cash cow generating over 80% of revenue. CFO Colette Kress noted they delivered $11 billion of Blackwell. That's the latest iteration of their, you can call it the architecture, GPUs, etc. Datacenter products in Q4 and that's their fastest product ramp ever. It's also the first time we're actually getting a Blackwell number. CEO Jensen Huang in the actual press release saying AI is advancing at light speed, which may be easing some concerns about supply issues and show that demand fundamentals are still in play. But with the launch of new chips comes pressure on Q1 margins coming in below analysts expectations at 71%. Management had previously warned on the earnings call the last two quarters that margins would dip before recovering to mid-70s. I think 75% in the second half of this year. You talked about shares. First they were up, then they were down. It's the most active member of the NASDAQ 100 followed by Tesla at the moment.
- [02:58]
Laura Castleton
Christine, I'm curious on the Blackwell revenue number, was there a straight consensus estimate for that was 11 billion sort of in line or do we only have.
- [03:06]
Christina Parts Nevelis
It for for data center? Not specifically for Blackwell.
- [03:09]
Laura Castleton
Blackwell. Okay, Christina. Thanks Christina. Parts Nevillis. I asked that only because Blackwell has a higher margin than its other chips. But Guy, what do you make of the quarter?
- [03:19]
Guy Adami
So last night Gene was on Gene Munster. He thought they'd beat by 2 billion and then guide higher for by 2. So they built beat by about a little over a billion and that's called a billion and a half. So that was light and the guide was a little bit light and it's not an indictment, it's just not what Gene thought. But the one number that stuck out to me Christina just mentioned, gross margins are starting to go I think the wrong way now. The stock is up. That's fine. There's nothing to not like about the quarter other than the fact that if margins start to decelerate, that's when these stories typically get long in the two. So that's the one thing that I'm watching here.
- [03:49]
Tim Seymour
Yeah, you got to watch because they said they're going to accelerate reaccelerate in the back half of the year. So 75%. So you got to think about what does that mean for competition. That means they're going to have more pricing power or to your point, they're not going to break out Blackwell right now. But that should be a higher margin ramp. I just think of the trade and we talk about it all the time. Like how has it stalled out? Well, Nvidia hasn't gone anywhere in eight months. You know, if you look at Microsoft, Google, Amazon, they're all down about 10% from their recent highs. Some more than that. So the trade and Taiwan semi. I'LL throw in there. The trade for all intents and purposes has stalled out. So what is going to be the catalyst I think to get re accelerated? I'm not so sure right now because I can't imagine on a sequential basis that Nvidia is going to be able to kind of do better than they just did. And what they just guided revenues to up or down 2% from here. I mean maybe that's an easy thing for them to beat but it's going to have to be a big beat to get the stock going back towards new highs.
- [04:38]
Laura Castleton
You mentioned the nine month time frame. I mean it's not, it's not pre Deep Seek. I mean Deep Seek was a real setback in terms of it trying to make some, some ground up.
- [04:47]
Dan Nathan
Yeah. Although you know we've got a 30% guide on capex for hyperscalers. I'm less worried about Deep Seek than, than I might be about where you know, we're talking about this. But the question is if the company's not expensive now and that's maybe open for debate but to me, trading at a discount to peers at 31 times, 32 times with a peer group that's pro 33, 34, nobody's even close. So in a world where, okay, Nvidia relative to themselves and relative to the last two years, this is one of the greatest bars to have to heat. This would be a Fosbury. Dick Fosbury by the way.
- [05:16]
Guy Adami
He was, he wasn't passed away.
- [05:18]
Tim Seymour
Yeah, Fosbury, the Fosbury flop.
- [05:20]
Dan Nathan
But, but again a really respected guy and a big fan of the show. But the bottom line here is you've got a case where AMD is doing nothing. They've told you half over half. There's, there's very little growth there. Nvidia continues to extend its lead. It's a case me that's really the story. If you're worried about the secular trends in AI, okay. But if you're worried about Nvidia relative to anyone else in the world, it's not even close. And to me the stock's not expensive. So it was. So I would just say, I wouldn't say oversold. I would just say the negativity going to this print was reasonably high. And you know, to me this is a bit of a relief.
- [05:57]
Steve Rosso
So I'm going to take the other side of that only because I think the stock price looks like it's, it's rolling over and their revenues are reliant on the four top hyperscalers. It's 46% of their revenue. If this price, if they cut back a little bit on that Deep sea headline. So there's deep Seq doing it for 5 million. Was that the number? Was it 5?
- [06:21]
Laura Castleton
It's a lot less.
- [06:23]
Steve Rosso
Let's just say it's 5 billion. I think it was 5 million. Let's just say it's a lot less. There's a lot of middle ground. So even if that deep seek was a lot of nonsense, people are going to start to think I can do this on the cheap. I can. And maybe I don't need a Blackwell, maybe I don't need a large language model. Maybe I just need a chip. So, so why not, why not pick out an AMD or an Intel? Intel's up 70%. I get it. It's some of the parts that had intel running this year. But when you look at Nvidia, if those, if two of those four cut back, you could see a revenue decline of 23%.
- [07:00]
Laura Castleton
We've already heard the hyperscalers confirm as to Tim's point this time firm, this time their, their annual CapEx intentions.
- [07:07]
Dan Nathan
Yeah.
- [07:08]
Laura Castleton
What are we, what are we worried about?
- [07:09]
Dan Nathan
Well we're not worried about anything in the near term. We're not worried about demand and we're now not worried about supply. So again if you get back to a stock that there's no disputing, this has been a dead trade like no one needs to point this out. This has been obvious and in fact it's underperformed. Its peer group is underperformed the SSMH by about 11% since their last earnings. But you get back to, there's a big argument out there that even in a post deep seat world that the demand story even increases and the elasticity of demand outstrips even the fall in the prices. That's, that's the argument. And when intel is nowhere even on the playing field right now and AMD isn't even close, Nvidia still the one that they're getting there. Even their, their lower priced chips from.
- [07:46]
Steve Rosso
So just, just want one little bow on this. So if you look at chips or what supply, demand, right. So if now you have to, if you have too much or you have enough, that's a glut. It's a commoditized pricing. They have to, the guy where he kicked it off, gross margins have to continue to come in. So for me I don't see prices increasing, I don't see the price of the stock increasing and I'm not, I'm not fighting, you know, on the price level of stock, like Tim said, it looks like it's rolling over. I think you're going to see much lower prices for Nvidia.
- [08:20]
Tim Seymour
Listen, there's lots of puts and takes here. You could say Stargate, you could say. I mean there's a whole host of meta building out.
- [08:25]
Dan Nathan
There's all.
- [08:26]
Tim Seymour
There's a whole sovereign. There's a whole host of things. You could say maybe we're just getting started, right? This has been a digestion phase as far as the spend. Now we start to think about what inference looks like and what is applications being built on all this stuff and what is the adoption for a whole host of that's going to be the next step when it starts. Who knows. The flip side of that is anthropic. This is one of OpenAI's biggest competitors. They have this cloud model. They just released a new one, 3.7. Supposedly that one was trade on tens of millions, not billions or anything like that. So there's something for everybody. You know, Deep seek has been widely explained as not that negative for an Nvidia right here, right now. And so, you know, again I just think there's a little something for everybody. But I just don't think this is like going to establish a new range. I don't think we're have another leg higher anytime soon in this trade.
- [09:13]
Laura Castleton
In the context though of market psychology at this point in time. I mean how is this going to be perceived? The puts and takes, is it going to be perceived positive or negative? Are going to glass half full or glass half empty at this point? Because I would say glass half diagram.
- [09:25]
Tim Seymour
When dog goes one way other way.
- [09:28]
Dan Nathan
Oh, not the Venn diagram. We all know what that is. When you I see one thing or the picture Horseshoe or the dress?
- [09:36]
Laura Castleton
The dress. Do you see gold or do you see blue?
- [09:39]
Guy Adami
That was a few years ago.
- [09:40]
Dan Nathan
Okay, look what I meant by the.
- [09:42]
Laura Castleton
Way, TD was saying that Microsoft canceled a bunch of data center capacity leases and the markets freaked out.
- [09:49]
Guy Adami
I think the market is a sigh of relief I think in terms of the after. So I think in terms of the broader market, you know, we'll just focus on the things that we're concerned about. This sort of gets us through I think in terms of the concern about Nvidia however, and Tim is right to point out on a price to earnings, the stock is cheap compared to where its peers trade and really compared to where it should be trading. If you think about the head start, the problem I think is price to sales is still expensive. And if margins come down, that price to earnings goes up very precipitously. So that's been my concern. Now, the market isn't worried about it, clearly. But again, Mark, margin deterioration leads to an acceleration of P E. All right.
- [10:26]
Laura Castleton
For more on Nvidia, let's bring in Susquehanna senior analyst Chris Rollin. Chris, great to have you with us. What's your take on the quarter and what's your take on that $11 billion Blackwell revenue number?
- [10:35]
Chris Rolland
Yeah, I thought it was fine. 11 billion for Blackwell. We were thinking it was going to be five or six. So this is a very healthy, good number. We were worried about the April quarter as it's kind of this hole in revenue between Hopper and GB200. So we think this is a fine result.
- [10:58]
Laura Castleton
What are you looking for on the conference call, Chris, what's going to be your first question, if you had that first question?
- [11:03]
Chris Rolland
I have that first question. It's going to be around GB200, whether system developers are ready to go and when can we really ramp this product?
- [11:14]
Dan Nathan
Chris, cut to the chase on the hyperscaler market. Excuse me, Capex Intensity, where are you on this?
- [11:21]
Chris Rolland
Yeah, Capex is going up. We were thinking growth was about 20% across those hyperscalers you talked about going into the quarter. Coming out of the quarter, it looks like it's more like 30% year over year. So this number is going up on the back of a real quick.
- [11:41]
Guy Adami
Chris, given the beat in Blackwell and as Mel said earlier, the higher margin chip, theoretically, when you expect to see margins hang in there, actually be better than expected or am I way off base so you can tell me I am, because that's typically the case.
- [11:53]
Chris Rolland
Yet you're not off base. But they are the company. The company has very well telegraphed and communicated that gross margins during this Blackwell ramp were going to be low. And so for whatever reason, the street was modeling closer to 73%. That was off. It should have been closer to that 71. So this is exactly as the CFO has in fact telegraphed.
- [12:25]
Laura Castleton
Chris, as you talk to investors, I'm just curious what where there is skepticism. We were talking about how the stock has really not done too much over the past nine months. Is there skepticism around the forecasts of hyperscalers that they're actually going to stick with those raised guidance numbers throughout the year? I mean, where does sort of the, you know, the question marks, where do they focus on?
- [12:47]
Chris Rolland
Yeah, I think there was some turbulence around Deep Seek. We're still trying to figure out efficiencies that came from that model and whether it decreases total spend or not, I think that's of less concern now certainly than it was a month ago. But really people want to know timing around GB200. It's this is supposed to be the big product, not be 200. It's GB200 racks of 72 GPUs. And it seems like, you know, these are coming a little bit later. Are there still problems, are there still problems with liquid cooling? There's a lot of stuff that are going to come into these comp complicated systems and are they ready to go in time and if not, is there a small hole in revenue in between? And so that I think is probably the biggest concern for investors right now.
- [13:41]
Laura Castleton
So where do you want to see that launch Chris, in the year?
- [13:45]
Chris Rolland
So I want to see it coming after the April quarter, so their July quarter and I want to see it in earnest.
- [13:52]
Laura Castleton
Okay Chris, we're going to leave it there. Thanks as always for your analysis on the heels of these numbers and do not miss a CNBC special report and videos results. John Ford will be speaking with CEO Jensen Huang about the numbers, his strategy and more that 7pm Eastern time right here on CNBC. So still big question mark about an even bigger product than Blackwell to come potentially in the July quarter.
- [14:16]
Tim Seymour
Sure, Ruben, I can't wait. You know here's the thing. Tomorrow night we're going to get Dell, right? So Dell makes the servers that a lot of these GPUs go into that a lot of these servers go into the data center. So it'll be really interesting to see what they have to say. They've been growing kind of quickly. They when they reported in November it was disappointing. I mean PCs are not particularly great. We know that end market is really bad. So it'll be interesting to see what they have to say on servers tomorrow night. So this thing we're all waiting for, Nvidia it was a big nothing. You know we've been waiting for like two months now. And so now we've got to put some other pieces of the puzzle together.
- [14:44]
Guy Adami
Tim famous Rubens for 500 Ruben Kincaid course have to go even I know not my favorite sandwich.
- [14:53]
Laura Castleton
Very greasy.
- [14:54]
Guy Adami
Very greasy.
- [14:54]
Dan Nathan
Reuben Sierra he had a pretty nice.
- [14:56]
Laura Castleton
Run with the Ruben Kincaid salience points.
- [15:00]
Guy Adami
I mean you know, but this is what happened last quarter as well. If you recall there was no movement in the stock. The next day it made a new all time high and then closed precipitously lower. Had this engulfing pattern. So we'll see how it plays out over the next 24 hours.
- [15:13]
Laura Castleton
Might I also say that Jensen Huang is a master at speaking to the markets, speaking to investors, delivering what they want to hear and John Ford's going to be speaking to him tonight at 7:00 on CNBC. And the picture might not only change on the conference call which is going on right now, but also change on the heels of this interview.
- [15:33]
Dan Nathan
It's going to be a fascinating interview. It's probably a must watch because I think the dynamics on selling some of these pieces of uncertainty together, certainly I think the message is going to be positive. I think for the markets this is positive. I think this was an overhang. I think this was something the markets wanted to get through. I mean think of the price action. Think of also where options expiry was on Friday and a lot of people were betting against things getting kind of ugly into this print. There's all kinds of stuff going on around it.
- [15:57]
Laura Castleton
Well, let's talk about the context of the markets because we snapped a losing streak today. The S and P as well as the NASDAQ here ending four day losing streak. So what does this do you mean you're saying that the sigh of relief?
- [16:09]
Dan Nathan
Yeah, I think so. I mean again I think you've got a case where if you look how megacap tech has been underperforming and there's been a bit of an indictment against all the Capex spend, against all the hyperscalers rather. So if we get reaffirmation that this is money well spent, I'd see matter turning around most immediately.
- [16:25]
Steve Rosso
So people, you wanted to see a rebound here and the market can't really do anything without max 7. We've seen the equal weight outperform, we've seen Russell outperform. But when you look at the names that people hold the most of in their portfolios, it's these Max 7 names. People wanted to see them bounce, they got flushed out, RSI is dipped. I think you give it a couple of days and I think you see this group probably roll over again.
- [16:50]
Tim Seymour
Give it a couple of days. You get PC on Friday morning and I think it's going to be really interesting to see where the 10 year yield has gone over the last few weeks from 4.8 to 4.3%. Let's see if that's a hot number. We've seen some hot prints over the last few weeks or so and I think that put and take those.
- [17:03]
Dan Nathan
You want that seriously, do you want, do you want hot?
- [17:06]
Tim Seymour
I honestly don't know what's the game guy that we play every once in a while in this show.
- [17:09]
Laura Castleton
If you do tell you play a lot of games.
- [17:12]
Guy Adami
I'm trying to think of which one applies in this case.
- [17:14]
Laura Castleton
Definitely not traded or fan.
- [17:15]
Tim Seymour
One thing I'll just say you guys were worri about you think if you think in video the overhang is off the market. I'll tell you two things that I'd be worried about right now. Bitcoin, you know below 85,000 the way it sold off, the way it continued today and the other one's Tesla it sold off. It was down 10% at one point yesterday. It was down almost 5% today. And that just tells you a little bit of some of the extreme risk taking that has been going on especially as the trade has gone sideways.
- [17:40]
Dan Nathan
But those weren't leaders. Right? I mean I hear what you think. I think a lot of their losses come leaders.
- [17:45]
Tim Seymour
Sentiment leaders.
- [17:47]
Dan Nathan
Okay.
- [17:47]
Tim Seymour
For like FOMO for risk on sort of.
- [17:50]
Steve Rosso
Bitcoin is definitely. Bitcoin's definitely risk on. So I agree with that. When you see this fluff come out of it and today I think was the biggest outflow you had $1 billion coming out of and last year, let's remember ETFs. 80% of the inflows into ETFs were Bitcoin related.
- [18:06]
Laura Castleton
I mean gold. Yes. Record back in gold. Right. I mean people are looking to lock in their biggest winners. And for what? For safety feels that way.
- [18:15]
Guy Adami
I mean we've seen a couple of gold sell offs on the back of broader market sells before. It's not unprecedented. I do think the gold trade is intact. I think bitcoin is absolutely something to watch. We have talked about it. If the average price of Micro or Strategies holdings get to the point where bitcoin is trading that's going to be problematic. And the VIX is showing signs of wanting to do something on the upside. Closed low today. I get it. But north of 19 is something to watch.
- [18:39]
Dan Nathan
We've seen a gold pullback a little bit.
- [18:41]
Guy Adami
Little bit.
- [18:41]
Dan Nathan
What are you talking about a little bit? We're 50 bucks all time high. That's a little bit after the move we've yelling at me.
- [18:47]
Laura Castleton
Really?
- [18:48]
Dan Nathan
You're calling this a poll? Don't call this a pullback.
- [18:52]
Laura Castleton
It's a Rorschach test. All right, coming up we're dialed into the Nvidia call. We'll bring you all the headlines as we get them. And there's a lot more earnings action to come. Salesforce ebay, Paramount and much more on the move. The details in numbers out of the quarters straight ahead. But first, a GM jump shares driving higher as the company hikes its dividend and kicks off a big buyback program. Can the stock stay in the fast lane? Don't go anywhere. Fast money's back in tune. Say you've always wanted to take a spontaneous trip to the Caribbean. Here's the thing. If you get smart with your money, you can do things like that. With Empower, you can start making the most out of your money so you can get out and live a little. Isn't that why we work so hard to have some fun with our money, like treating yourself to something special or spontaneously doing something extra for a loved one? So use Empower and get good at money so you can be a little bad. Join their 19 million customers today@empower.com not an Empower client, paid or sponsored.
- [19:53]
Melissa Lee
My side Hustle brings in over six figures, about $10,000 a month, over $500,000 since its beginning.
- [20:00]
Laura Castleton
Find your hustle with CNBC.
- [20:02]
Chris Rolland
Make it's new online course, how to Start a side Hu. Three industry experts break down proven paths to success.
- [20:09]
Laura Castleton
There's a tremendous amount of opportunity out.
- [20:11]
Chris Rolland
There and help you choose the one that fits your life schedule and goals.
- [20:14]
Melissa Lee
Find your own path to building multiple income Streams.
- [20:17]
Chris Rolland
Register@cnbcmakeit.com Sidehustle special offer ends April 1st.
- [20:24]
Laura Castleton
Welcome back to Fast Money. Shares of General Motors getting revved up on news that the company is hiking its quarterly dividend by 25% and initiating a $6 billion share buyback. GM ending the day up nearly 4%. Our Phil LeBeau joins us with the story. Phil?
- [20:40]
Phil LeBeau
Melissa, this is not the first time that General Motors has said, you know what? We're coming off of record profits. Let's put that money to use by buying back our shares and increasing the dividend. So here's what the company announced today. As you mentioned, $6 billion stock buyback. By the way, $2 billion of that is part of an accelerated stock retirement program. So it'll all happen in the second quarter. They're raising the dividend by 25%, jumping it up 3 cents to 15 cents a share. As you take a look at shares of General Motors, keep in mind that the outstanding shares, it's come down by about 400,000 shares since the beginning of 2023. That's how many they've retired. They also have an outstanding balance in terms of total shares of about 998 million, maybe a billion Shares, roughly speaking, depending on how the share repurchasing is going day to day. So that's a big drop compared to where they were just at the beginning of 23. Melissa.
- [21:38]
Laura Castleton
All right, Phil. Thanks Philibo on GM positive, definitely. I mean, the dividend increase, the bears.
- [21:45]
Dan Nathan
Will say they've got no EV business and that this is a sign of weakness, that this is all they can do with their money. But we, if you're GM and you have the history that GM has, this is great news. This is a company that's. Now you have to give them the benefit of the doubt. We're not talking about one or two quarters. We're talking about four years coming out of COVID This is a company that obviously, and even before COVID some of these trends were in place. But the profitability we've seen on free cash flow is extraordinary. This stock should re rate. I understand that there are headwinds that are going on in the auto space, but this stock should be rerating and clearly should trade. And again, it is a car company, unlike others that are not.
- [22:20]
Laura Castleton
And by the way, they are going to spend more than $8 billion on research and product development. So they're not investing. They're not not investing in their business.
- [22:27]
Guy Adami
Six billion buyback is not insignificant. A $48 billion company, number one. Number two, the move from 61 down to 45, which we've seen over the last couple of months, got us right back to the October low, which is where we took off from, if you recall, in the fall. So I'm with Tim on this one. If you want to put a little stock market, I think GM has some.
- [22:43]
Laura Castleton
Upside here, but how about the tariffs? March 4th.
- [22:46]
Steve Rosso
She's not complaining about him. We only had Farley complain about the tariffs. She seems like she's navigating the seas a lot better than Ford has. And the interesting part of their services business is they have 4.2 subscribers, 4.2 million subscribers. Ford has 650,000. So when you look at it's basically 25% of the vehicles that can have that service plan that are on the road right now. So if you're going to invest in a car company, GM is definitely over Ford. Although Ford seems like there could be a dead count balance at this because I don't agree with the way that Farley has been running the company. But I'm not a Ford CEO so I have to just bite my tongue.
- [23:27]
Laura Castleton
Everybody is going to. I mean, maybe Ford will feel more of an impact, but everybody will feel an impact of 25% tariffs.
- [23:33]
Dan Nathan
There's no question. And there's no question there were a lot of people running down to Florida that weekend and there's a lot of people in the auto industry that have been lobbying very hard. And I think there will be a compromise found. I think ultimately U.S. auto, if you think about it, if we're fight for, for fighting for U.S. steel, we should be fighting for the big two that are left in Detroit.
- [23:50]
Laura Castleton
Good point there. Coming up, we are diving back into tonight's after hours action. Salesforce, ebay, Paramount and more all reporting results. The numbers in the quarters next. And speaking of earnings, a major move in the pharma space, Madrigal surging after its Q4 report this morning. The CEO will join us next to dig into the numbers in its latest drug trial data. You're watching Fast MONEY live from the NASDAQ marketsite in Times Square. Back right after this.
- [24:18]
Melissa Lee
My side Hustle brings in over six figures, about $10,000 a month, over $500,000 since its beginning.
- [24:25]
Chris Rolland
Find your hustle with CNBC. Make it's new online course how to.
- [24:29]
Laura Castleton
Start a side Hustle.
- [24:30]
Chris Rolland
Three industry experts break down proven paths to success.
- [24:34]
Laura Castleton
There's a tremendous amount of opportunity, opportunity.
- [24:36]
Chris Rolland
Out there and help you choose the one that fits your life schedule and goals.
- [24:40]
Melissa Lee
Find your own path to building multiple income Streams.
- [24:43]
Chris Rolland
Register at CNBC Make It Comm/ Side Hustle special offer ends April 1st.
- [24:51]
Laura Castleton
Welcome back to Fast Money. We've got an earnings alert on Salesforce. Shares of the software company dropping after hours on a revenue miss and light guidance or Seema Modi's got all the numbers.
- [24:59]
Melissa Lee
Sema Melissa, that is the story. Full year guidance came in short of analysts estimates raising questions about the return on investment of agent force. Though regarding its agent business, it did end the quarter with 3,000 paid customers up from 200 in the third quarter. Given that it only launched this business in October of 2024, pretty commendable. But on the seat on the call, CEO Marc Benioff once again excited about what he's hearing from customers, energetic about the growth prospects, saying its AI product line is a multibillion dollar product, one he says is delivering at this level. Customers, he says are telling them that they are light years ahead of others with clients including Equinox, OpenTable, Lennar. He also adds a Salesforce is able to deploy at a really low cost, which has been a point of debate amongst the analyst community. All comes as competition is heating up with Microsoft fueling a war of words between the two companies over the past few months. CEO Mark Benioff joins Jim Cramer tonight on Mad Money. Melissa?
- [26:01]
Laura Castleton
All right, Seema, thanks. Sima Modi with CRM. I mean it was stock was down as much as 10% after hours on the back of the results initially bounced back a little bit.
- [26:10]
Tim Seymour
You got to watch that interview because I don't if you remember last quarter, Benioff would say, I think he said something about Microsoft. He was kind of dissing copilot, they're all into agents. And he said go talk to anybody at Microsoft if they are using copilots within Microsoft, that sort of thing. So that's a battle that's going to be fought obviously on multiple different levels here. You know, the quarter just wasn't that interesting. The guidance wasn't that interesting. And you know, at the end of the day, in a market like this, when you're looking for themes where there's going to be adoption that's going to drive the performance as it relates to AI, they're telling a story about the future, not about right now. But that's good enough for the future. It's just not good enough in the aftermarket right now.
- [26:46]
Guy Adami
Maybe they're sandbagging the full year guidance. It could be, we'll see. I mean at 30 times earnings so you know, the valuation gets in the way. And this stock, if you go back and look if our cracks have been pull up a chart, I mean right at the levels that we sort of topped out at in March of last year before we took a leg lower. So this is critical support right here. We'll see what he says on Jim show if he assuages any of the concerns. But you know, it has been and continues to be an expensive name if.
- [27:10]
Steve Rosso
You think that the economy is slowing and I think the economy is slowing, 49% of CRM's clients are small businesses. Small businesses have the most front facing. They're the first headwind for them is the economy.
- [27:22]
Laura Castleton
Economy.
- [27:22]
Steve Rosso
If the economy is slowing, you could see some cracks in his subscriber business. But I do agree with Dan. I think he's entertaining to watch. I think he's got always you talked about, you talk about Jensen. He's always got an answer. He's a crowd favorite but he does it from an antagonistic point of view. So I could see him give something some fodder. But think about it. The biggest competition he has is Microsoft. So he has made some acquisitions in the past with Slack that competes with teams. He's had tableau. I don't even know what tableau was, but he's been very acquisitive.
- [27:57]
Guy Adami
Yeah.
- [27:58]
Steve Rosso
Is that what he bought?
- [27:59]
Dan Nathan
I don't know.
- [28:00]
Laura Castleton
A table.
- [28:01]
Steve Rosso
So if they continue to make acquisitions, that could be another headwind for him. Because if he's got to buy growth in an environment that's slowing, that's a double headwind.
- [28:11]
Guy Adami
Jean Appel, Timote Jean Appelle Guy.
- [28:14]
Laura Castleton
Tres bien.
- [28:16]
Dan Nathan
Callaggia or medable. I think this was a solid number. I think they've got a new CFO in transition. I think they're going to be conservative. You start talking about effects and leap years and things like that. That's not really what people want to hear with a company like this. But again, I think this was a, a cautious guide.
- [28:35]
Guy Adami
Can you imagine, Tim?
- [28:36]
Laura Castleton
And that's the one phrase that you walked away with.
- [28:39]
Guy Adami
My school was 40 fricking years ago. More than that, I'm glad I brought you. Imagine Tim in high school French.
- [28:47]
Laura Castleton
I mean, that would have been fantastic.
- [28:50]
Dan Nathan
I still remember those.
- [28:51]
Laura Castleton
Mademoiselle. Anyway, coming up, the latest results in drug trial data sending shares of Madrigal Pharma surging. But the CEO sees next to the company and the space that interview when Fast Money returns.
- [29:03]
Chris Rolland
Missed a moment of fast. Catch us anytime on the go Follow the Fast Money podcast.
- [29:09]
Laura Castleton
We're back right after this. Welcome back to Fast money. Stocks closing well off the highs of the regular session. The Dow are racing a 250 point gain early in the day to close down nearly half a percent. The S and P managing to eke out a small gain. IT and the NASDAQ both snapping four day losing streaks. Shares of Super Micro jumping nearly 20% after filing delayed financials last night. Just in time to meet the NASDAQ's deadline and check out shares. Shares check out Bitcoin falling into an 82k handle that was its lowest price since November 11th. And some more after hours movers eBay beating EPS and revenue expectations. But its first quarter revenue guidance coming in light. Paramount and Sweetgreen missing on top and bottom lines and Snowflake and C3AI both topping expectations. But C3AI posting light revenue guidance. Well, Eli Lilly closing at four month highs after the company announced plans to invest at least $27 billion to build four new U.S. manufacturing sites. Angelica Peebles spoke with CEO David Ricks about the news earlier today. She joins us now with more. Angelica.
- [30:22]
Melissa Lee
Hey Mel. So three of these sites will make active pharmaceutical ingredients and one will put drugs like Zepbound into pens. Lilly expects them to start Making medicine within five years. Now, this is the latest investment that we've seen from Lilly to increase supply of zepbound and future weight loss drugs. Lilly's CE Dave Ricks told us that cancer and Alzheimer's drug are also part of this. Now Lilly's clearly sending a message to the White House. The company made this announcement at an event in D.C. lawmakers and administration officials were there praising Lilly's investments in the US And Ricks wasn't shy about Lilly's intentions either.
- [30:57]
Laura Castleton
We do want to influence the policy environment and of course, President Trump and Secretary Lutnick and Kevin Hassett was here today as well. All can have an influence on that, which is about US Tax competitiveness because.
- [31:10]
Phil LeBeau
None of this would happen if we.
- [31:12]
Laura Castleton
Go back to the days of us having double the tax rate of every other country. We need that corporate tax rate to stay low. And then of course, other policies that support domestic manufacturing.
- [31:25]
Melissa Lee
So on tariffs. Rick said he's speaking with the Trump administration about what the quote contours should look like. So we'll have to stay tuned for more on that.
- [31:32]
Laura Castleton
Mel, Angelica, I have to ask you about Moderna. We're seeing the shares move lower by about four and a half percent after hours. There's a headline that just crossed saying that its bird flu shot contract is going to be under review by the Trump administration. How important was that to Moderna?
- [31:49]
Melissa Lee
You know, I don't think anyone was expecting it to be a big financial boon. Of course it would be upside to the company when they really need some upside right now. But this wasn't something that they were actually expecting to take forward. You know, where they factor that into their guidance. So obviously it's a negative headline, but it's not something that would materially change the results that we're expecting this year.
- [32:07]
Laura Castleton
Okay, Angelica, thank you. Angelica Peebles, we were just having a conversation about Lilly yesterday and most people here were saying, no, no vote over Lilly.
- [32:17]
Dan Nathan
Well, look, I love, I love the tack taken here by the C suite and really, you know, addressing an important issue has been for pharma companies. And I think they're pretty united on this front. So, so I think it's great. I think Lilly on valuation is still very compelling. It gets back to whether you think that the type of growth we've seen over the next couple of years equal the addressable market. I do.
- [32:38]
Laura Castleton
All right. Meantime, Madrigal Pharmaceuticals surging 15%. The stock's best day since November. The company out with better than expected Q4 results thanks to its mashed fatty liver disease drug Rezdifra Madrigal. Also posting results of a study in patients whose liver disease is more advanced than the group currently eligible for the drug, saying those patients saw improvements in their condition over two years. For more on the results, Magical CEO Bill Sibel joins us now. Bill, great to see you again.
- [33:04]
Phil LeBeau
Oh, thanks for having me back.
- [33:06]
Laura Castleton
Can you walk us through Rezdifra and the trajectory that you see for the drug going forward, seeing that you're going to be launching in new territories?
- [33:15]
Phil LeBeau
Yeah. So first of all, it's been a really great launch. I've launched a lot of blockbuster medicines in my career and this is the best launch that I've been associated with. In just our third quarter of launch, Q4, we exceeded $100 million, which when you compare against any launch, that is about as good as it gets. So we're really happy with that and we're making progress along kind of really three key fronts. First of all, number of prescribers, we have continued, we have a target of about 6,000 prescribers and we continue to make progress on a quarterly basis there. We've had 60% of those prescribers write the product already. And from a patient perspective, we have now at the end of December, over 11,800 patients on Rezdiffera, which is a really significant number in itself crossing the 10,000 milestone. And then finally from a payer perspective, last time I was on, we talked about a very aggressive goal of having 80% commercial coverage by the end of the year. We did that in by the end of the third quarter. So we're on all those metrics tracking very well, which sets us up really for the future. And we have had steady, consistent growth and we expect the same as we move into 25 and beyond.
- [34:38]
Laura Castleton
You mentioned the more than 11,000 patients that are already on the drug. That's actually less than 4% of market penetration, according to one analyst report I read. How do you view the market and how, how do GLP1s fit in? Some will say that it's a competitor drug, in effect because of its efficacy with mash, and others will say it's a compliment.
- [35:02]
Phil LeBeau
Yeah. So first of all, I'll say that the market dynamics set up here better than any other opportunity in the industry. From my perspective. You mentioned the less than 4% penetration. That means that we have a long way to go and that's into the diagnosed 300 patients that we are focused on now. What does competition do? Actually, competition really helps because it ends up growing the Market for you. Every single launch I've been associated with. As you add more products, there's more awareness. Physicians are looking for the disease, more prescribing more, etc. As the market leader in the space with really, I think the best profile now and as we look into the future, it's almost a holy grail of profiles. A once a day pill that's effective and well tolerated. We're in a really great position now. GLP1s, they are and they have stated that they will attempt to grow this market. We talk in terms of 315,000 patients. They talk in terms of there being 22 million patients in the U. S EU, five in Japan. Now in order for them to really support the business they have, they need to talk about millions of patients. We're very comfortable in the context of the 315,000 prescribed. Pardon me, 315,000 diagnosed patients. If GLP1s grow the market like they state they will, we're in a very good position to compete there. Especially with the high discontinuation rate that you see with GLP1s. Novo on a Call announced that at the one year point about 70% of patients on Wegovy discontinued. That's an important fact because the study that they ran in MASH was a 72 week trial. So we look at it that there's a number of paths to victory for us. We're very happy with the 315,000 diagnosed patients. But then if this market expands as we think will happen in the presence of GLP1s, we're also in a position to win.
- [37:05]
Laura Castleton
Bill, great to speak with you. Thank you.
- [37:07]
Phil LeBeau
Thanks so much for having me.
- [37:08]
Laura Castleton
Bill Sibolt, CEO of Madrigal Guy Stock.
- [37:12]
Guy Adami
It's a 12 year high today. The loss they reported was much better than expected. Suggests that their path to profitability is a lot faster than people think. Billion dollars of cash and cash equivalents on a $7 billion market cap company. And I think the last time, if I'm not mistaken, we talked about this, we sort of liked the story. I think you got to still like the story here, Mel.
- [37:30]
Laura Castleton
It's interesting to hear him talk about GLP1 is actually growing their market because you would think on the surface that they would just be competitors to this drug res differa.
- [37:39]
Dan Nathan
No, it seems as if there's a lot of complementary pieces and some of these companies are actually going to benefit by cooperation and that's actually going to probably drive some to move even further into our focus.
- [37:49]
Laura Castleton
Coming up, App Lovin taking a Beating as short sellers pour cold water on the big tech. On the tech's big run. The slew of critics not, not loving on the name and where the stock heads from here. Fast Money is back into. Welcome back to Fast Money Software stock Applovin plunging today on the back of two short seller reports from Culper Research and Fuzzy Panda. Among allegations of fraud, Fuzzy Panda saying Applovin illegally tracks children across apps and knowingly serves them explicit ads. They also accuse the company of copying Meta's homework, stealing data. Stealing data from the tech giant in how it uses its ad targeting the bear cave. Another short seller made similar allegations last week. Applovin CEO refuting some of these claims in a letter to shareholders saying in part it's disappointing that a few nefarious short sellers are making false and misleading claims aimed at undermining our success and driving down our stock price for their own financial gain, rather than acknowledging the sophisticated AI models our team has built to enhance advertising for our partners. Dan, you're following this move. It's an interesting move.
- [39:00]
Tim Seymour
It's interesting to see three come out at the same time. So you got to wonder if there's like some collusion. I mean, I don't love hearing CEOs talk about, you know, the targeting in shorts and all that sort of stuff. I mean, I think it's kind of goofy. I think short shorting is actually an important part of what goes on in the markets here. But again, you know, sometimes where there's smoke, there's fire. The fact that there's three of them makes some interesting sensations. It's kind of an easy target when you think about how this stock had rallied over the last year or so and then that gap that it had on earnings, but it's filled in all of that and then some. I just think there's so many other stocks out there that you can play.
- [39:31]
Laura Castleton
Like, why bother?
- [39:32]
Guy Adami
Yeah, Fuzzy Panda.
- [39:34]
Phil LeBeau
You said that.
- [39:35]
Laura Castleton
Nefarious.
- [39:36]
Chris Rolland
You said it twice.
- [39:37]
Phil LeBeau
I thought that it was in the prompter.
- [39:39]
Tim Seymour
So you read it.
- [39:40]
Guy Adami
You got a kick out of saying that.
- [39:42]
Dan Nathan
Do you think, though, if you're Fuzzy Panda. And again, panda is a bear. Right. So I'm just connecting the dots here. It's a short seller. But do you think he's a nicer short seller? He's, you know, pandas as I think.
- [39:51]
Laura Castleton
It'S supposed to be. I think it's ironic because pandas seem sweet and gentle and they are being fierce and once again, one step ahead of alleged.
- [40:00]
Guy Adami
They're not vicious and they eat bamboo and they hang out. They are fun.
- [40:04]
Dan Nathan
I think they're, I think they're cute.
- [40:05]
Laura Castleton
Do you have anything growing up? Do you have any? I do, I do in general. Well, broaden it out.
- [40:11]
Steve Rosso
Obviously it's up 461% for, for the last year. But I think it's going to bring up a big dialogue over what I can you steal. It's going to not necessarily for this stock in particular, but for the group as a whole. We're going to find out what's out there in the public domain. Did they really steal something? Was it nefarious or was it just open?
- [40:33]
Laura Castleton
And what is AI? One of the allegations is that their AI product, Axon 2.0 is not really AI and it's all sort of smoke and mirrors just to get clients.
- [40:42]
Guy Adami
Basically 15 times revenue with or without Fuzzy Bears or Fuzzy Bear.
- [40:50]
Laura Castleton
Fuzzy Bears. A different kind of Bear and Hutch. Anyway, coming up, a pair of fast movers catching our attention. Why Bud was bubbling higher. And the latest out of US Steel's merger drama. That is next. More fast money into. Welcome back to Fast Money. Another check on Nvidia shares. They're up by about a percent plus percent here. The call still underway. Chris Rolland is back to give us all the key headlines here. Chris, anything notable?
- [41:22]
Chris Rolland
Yeah, no, Jensen's really just talking about AI continuing into the future, defending scaling laws, talking about next generation products. It does appear as those are on time, both GB200 and GB300 and then hinting at new products coming at GTC, which we will have in a couple of weeks.
- [41:50]
Laura Castleton
What do you make of the stocks reaction? We were up 4%, you know, in the regular session, just about our percent after hours, you know, 53 minutes into the call.
- [42:00]
Chris Rolland
Yeah, this really seems like in line result and guide quarter and no major announcements, no major setbacks or pull forwards in the roadmap. So this is actually kind of the response I would have expected.
- [42:18]
Laura Castleton
Okay, Chris, thanks. Chris Rolland of Susquehanna with the latest on the conference call. Is this enough to move the stock out of that rut that you're highlighting, the nine month rut, or does it just keep meandering?
- [42:31]
Tim Seymour
I don't think so. I think there has to be some sort of, you know, kind of adoption story that plays out in other industries that suggests that this is going to be something that we can start to model out going forward. And I think that, that this open source thing is really interesting because again, it might not be such a negative as was perceived a few weeks ago and it might actually drive down the cost of compute, which will actually kind of get adoption going sooner than expected. But there's nothing here there to kind of give to the bulls or the bears in my opinion.
- [42:59]
Laura Castleton
All right, let's get Say's movers here. AB InBev popping over 7% as Q4 revenue beat despite declining volumes. The Budweiser maker seeing weak demand in China and Argentina, though the CEO said he expects recovery this year. So Tim, what do you make of.
- [43:13]
Dan Nathan
This very low bar, interesting valuation. Remember, this is not your America, this is not your Clydesdale anymore. This is actually not an American company. The forward valuation not all that attractive. I think if you look at where this company's come from and also the consolidation in the bear market, I actually think this is a pretty good space to own it. I also think it's the market to own it. I think they will be buying back stock as well.
- [43:34]
Laura Castleton
All right, let's take a look at U.S. steel shares slipping amid confusion over the status of its acquisition by Nippon Steel. According to reports, the Japanese company planning to meet with U.S. officials to revive a deal that conflicts with President Trump's claims that Nippon plans to invest in U.S. steel instead of purchasing it. Steve, you're long X. I am.
- [43:53]
Steve Rosso
I got longer today. I think that ultimately this is, this is another barometer for President Trump's success. So he has the stock market, then it turned into bitcoin or crypto and now it's steel. And I think he would fail if he, if this doesn't perform or outperform, I think that will be a failure that he would take personally. So I think the stock goes higher in a overwhelmingly amount of different possibilities.
- [44:20]
Laura Castleton
Up next, final trades. We are very excited. Yeah. Very special. Fast Money live tomorrow, 5pm Eastern Time. We'll have the a super sized desk and over 100 diehard fans from over 30 states and 3 countries. You will not want to miss this. It's going to be.
- [44:43]
Dan Nathan
They don't know what they're getting themselves into.
- [44:45]
Laura Castleton
We don't either.
- [44:46]
Dan Nathan
Awesome.
- [44:46]
Laura Castleton
We don't either. Time for the final trade.
- [44:49]
Dan Nathan
Tim, I think you know what you're getting yourself into. If you buy GM at guy's 46 level. I think you're getting long here, Steve.
- [44:54]
Steve Rosso
Steel Letter x trades at $38 right now. That Nippon deal was $55. I think it works its way back to that level.
- [45:01]
Laura Castleton
Daniel.
- [45:02]
Tim Seymour
Guy, what's the Fed's most favored inflation?
- [45:05]
Guy Adami
The PC.
- [45:05]
Tim Seymour
That's Friday morning. I think yields probably move back. That'll be a seller.
- [45:09]
Laura Castleton
That I called him Daniel.
- [45:11]
Dan Nathan
Daniel, you're in trouble.
- [45:12]
Laura Castleton
Wanted to try it on guy 30.
- [45:14]
Guy Adami
States would be 60% of the states available.
- [45:18]
Laura Castleton
It's really amazing how far Dublin, Alaska, Hawaii. I mean, international.
- [45:22]
Dan Nathan
Yeah, we're.
- [45:23]
Guy Adami
It's great. We're psychedelic. Melissa Good. And I'm happy you're feeling better. Boyd. Gaming all right.
- [45:31]
Laura Castleton
Excellent. See you tomorrow. Mad Money starts right now. All opinions expressed by the Fast Money participants are solely their opinions and do not reflect the opinions of CNBC, NBCUniversal, their parent company or affiliates, and may have been previously disseminated by them on television, radio, Internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information the Fast Money participants consider reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Fast Money disclaimer, please visit cnbc.com fastmoneydisclaimer find you'd hustle.
- [46:19]
Chris Rolland
CNBC make its new online course how to Start a side Hustle Three industry experts break down proven and paths to success.
- [46:26]
Laura Castleton
Get out there and do it.
- [46:27]
Chris Rolland
Go to CNBCmakeit.com Sidehustle special offer ends April 1st.