← CNBC's "Fast Money"
CNBC's "Fast Money"
Stocks Surge To Start Week… And Structure Therapeutics CEO On Weight Loss Space 3/24/25
00:43:45
Stocks jumping to start the week, as investors hope President Trump may be softening his stance on tariffs. If you can believe the bounce, and the sectors seeing the biggest gains. Plus One pharma company looking to tip the scales in the weight loss drug space. What the CEO of Structure Therapeutics sees next in GLP-1 development, and how an oral pill could be the key to success. Fast Money Disclaimer
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- [00:00]
Melissa Lee
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 empowered client, paid or sponsored. What if your business could see beyond the what is and into what can be? What if you could create more impact in every decision? What if you had a partner as visionary as you are? With bank of America, you get access to our trusted experts, real time insights and digital tools. So whether you run a local shop or a global enterprise, you're backed by business solutions to make every move matter. What would you like the power to do? Visit bankofamerica.com bankingforbusiness to learn more. Bank of America is proud to be the official bank sponsor of FIFO World Cup 2026. Live in the NASDAQ marketsite in the heart of New York City's Times Square, this is fast money. Here's what's on tap tonight. A strong start to the week. Major averages rallying on hopes of a softer tariff policy out of D.C. can the strength be sustained and how much higher can we go from here? And a box office bust. Disney's trouble plague retelling of Snow White failing to impress on ticket sales. What's it mean for the studio and the competition? Plus why the charmaster says Uber can drive higher. BYD a major milestone faster than Tesla and the race for weight loss pill. We'll get the very latest on developments from the CEO of Structure Therapeutics. I'm Melissa Lee. Come to you live from Studio B at the nasdaq. On the desk tonight, Tim Seymour, Karen Feiderman, Dan Nathan and Guy Adami. We start off with the markets ripping higher to kick off the week. President Trump suggesting many countries could get breaks on tariffs. The NASDAQ up more than 2%. The S& P seeing its best Monday since the bear market ended in October 2022. Consumer discretionary communication services and financials leading the way today with utilities the only sector to finish in the red. Among the single stock winners, Tesla, United Airlines, AMD and Palantir. But the three major indices are still negative for the month and the only Dow in only the Dow is in the green, albeit barely for the year. So should you have faith in this rally that we've seen recently? Are you a believer guy?
- [02:23]
Guy Adami
Hi Mel, I'm a believer in a lot of and I was just kind.
- [02:26]
Melissa Lee
Of playing this rally.
- [02:28]
Guy Adami
No I'm not. And you know we had a conversation last week. You know, we thought it got down to levels where theoretically technical support, you should see a bounce within this sort of countertrend rally. We're seeing it now. If you want to do the math and play that game. I think 58 and a quarter makes a lot of sense. That's a 50% retracement of the all time high we saw in February and this recent low of 5505. So the rally makes sense. I think again, probably oversold conditions, but I think it's going to be somewhat short lived. I could see a day tomorrow where we open on the highs and close on the lows.
- [02:58]
Karen Feiderman
Yeah, and the other thing is it doesn't really clear up the uncertainty that was causing the downward volatility over the last month or so. I mean this is the kind of on again, off again. I mean we've seen this before. We were Trump1 dot. Oh, we saw, you know we're going to do this. By the way, this is not something he ran on. I mean this was not, you know, a reason that he got elected. This wasn't one of the main reasons. And so I just find it really interesting that this is one of the things that's kind of causing not just on Wall street, but on Main Street.
- [03:22]
Melissa Lee
Right.
- [03:23]
Karen Feiderman
And so when we get to earnings season in a few weeks, which is pretty interesting, I think we're to see that Q1 activity was probably slower than we would have expected and the guidance for Q2 is not going to be particularly great. So you have to start asking yourself is that if we don't get any clarity sometime soon, this volatility is going to be here to stay and you know, it's probably not doing anybody any favors. When you think about the economy coming into the year, it was pretty decent.
- [03:48]
Melissa Lee
I mean saying that the tariffs are going to be softer, that's nice, but the uncertainty is still there. If you're a CEO, you still don't know how to plan, you don't really know what the tariff situation will be and I mean it might even be worse. Isn't it better to just know and then you can deal with what you know as opposed to being pushed around constantly?
- [04:04]
Tim Seymour
Markets hate uncertainty more than they Badly. The scepter of bad news is what is well where. So I agree with that. Although I mean there was not maximum fear, but a lot of fear. A lot of fear already. And so to have them come back a little bit is great. Interesting. We saw that data this morning pretty hot in a different market where on a different day where we weren't talking about maybe the tariffs not being as bad, I think what that did to interest rates may have actually had the market go south. Right. Because I think this sort of that hot. Those hot numbers take the Fed out of the equation a little bit more. I think so. I mean it was a nice bounce. Right to your point. I mean it's not shocking at all. We really were oversold. You know, I'm always long, so a day like today is great, but I've had 17 bad days. So, you know, whatever. We're back to, you know, maybe going down.
- [04:54]
Dan Nathan
Yeah.
- [04:54]
Tim Seymour
Two weeks ago. I do think the tariff thing is important though. But I think that we're still going to see companies when they come out give conservative guidance.
- [05:05]
Melissa Lee
Yeah.
- [05:06]
Mike Wilson
I mean I would answer just through the lens of the markets. If you think that this is that the Trump put which I thought was around 5200 on the S and P if the strike price is now 56, it gives markets a reason to say and this is what markets do, whether it's the Fed, whether it's the administration saying there's a level in which we will have so much pain, even though they're telling us to just endure a little pain. This is kind of what it felt like. And everyone is documenting or identifying the oversold conditions we had. We all know where RSI's got even on the S and P as an index kind of mid last week we had a quad which on Friday meet set up for good news to take markets a lot higher, especially the biggest stocks in the world, which didn't necessarily go crazy other than if you look at what Sammy's did. But it tradable bounce and whatnot. And I know we're going to have a great conversation with Mike Wilson in a second. But you know, let's just be clear, the S and P has already rallied over 5% off of that intraday low. So half of you think we're going to have a 10% move in the S and P and if you do, half of it's done. And if you were selling on the day that actually it turned around, you're not feeling so great. So I don't know that the fundamentals have changed at all. That's why it'll be interesting to hear what some of the strategists have to.
- [06:11]
Guy Adami
Karen brought up yields, I think correctly. I mean, we're back above 430 again in the 10 year and it's. It. Does it make sense? Yeah, it makes sense to me. I think to a certain extent the markets, the broader market sell off led people to the bond market sort of a flight to perceived quality. The fact that maybe there's risk on the last couple of trading sessions, maybe money's coming out of the bond market, I think correctly. So at a certain point people can start talking about the bond market again. It's probably a lot sooner rather than later.
- [06:37]
Karen Feiderman
You know, as the silver lining guy on the desk, it is interesting that the S and P is only down 2%. Right. So if you think about that, like, we've taken a lot of the euphoria out of the faithful aid, as Karen calls them, and we really, you know, are kind of back at a place where you want to look at some other sectors that may be part of the leadership going forward. It's been my belief, though, the only way we're going to get back to those prior highs and probably get through them is if the faithful aid really does take us higher. So we've seen earnings come down for them at least a little bit over the last couple of quarters. And if you see that start to inflect higher and maybe you kind of lay off a little bit of that capex, then that will be very helpful for S and P earnings. I saw a strategist come out and say they think there could be $230 in earnings. If we have $230 in earnings for the S&P 500 this year, then we are way, way expensive relative to, you know, the last five and ten years. So again, we better hope not for that, but we better get more clarity on the tariff situation or we're going to continue to see some kind of, you know, I think tough sledding for the s and P500.
- [07:37]
Melissa Lee
I'm glad you mentioned the eight largest tech stocks. Yeah, I refuse to call anything.
- [07:43]
Mike Wilson
Every time he says faithfully, I feel like.
- [07:45]
Melissa Lee
Right. I just wanted.
- [07:46]
Mike Wilson
I just wanted to seem to sell it on me.
- [07:50]
Tim Seymour
Why don't call.
- [07:50]
Melissa Lee
Funnily, there is an argument put forth by JP Morgan that there's been a lot of de risking that has gone on in the tech trade. And so therefore the likelihood of another major pullback has gone down because the positioning is sort of Right sized now.
- [08:05]
Mike Wilson
I don't think there's any question about that. And you can see that in the fund flows and bank of America does a nice job with that. Michael Hartnett's notes have chronicled where we had it and we actually had actually a lot of people step in on Friday after a couple of weeks and we know where foreign stocks or the mega stocks stand actually have actually outperformed the rest of the world making international great again. I would just also get back to the data. I'm not worried about the bond market unless it's yields. To the downside, I'm not worried about five set for 75 on the 10 year. I'm not even that worried about 5%. I think we're at a place here. You got composite PMI this morning. So you a little bit of manufacturing, a little bit of services and it was a great number. It was a lot better than expected. I think it came in at 53, 6 versus 514 or expected. The problem is that some of this is just front running on tariffs and some of that services industry. But what you did hear from the business confidence element of this is that business confidence is nowhere from a trading perspective. There's some things that I think you don't get too far away from which indicate that there's a lot of fear. You don't get away from gold, you don't get away from, from industrial metals, you don't get away from the places I think are both measuring inflation and uncertainty. And I think those are trades that even on days like this you're getting another shot to get back in there.
- [09:13]
Melissa Lee
So in terms of this tradable rally or whatever we want to call short lived rally, rally for. Not for the long term. Is it just into earnings? Is it just until earnings season starts when we start getting the CEO commentary? But all the uncertainty out there, how you know they're rebound, the consumer is still weak, certain, etc.
- [09:30]
Tim Seymour
Well, I feel like the banks are the most important ones because it's not just how they're doing, it's how they look through in the whole economy. So that's important. I also think they're maybe a little less likely to sandbag. So that'll be really important. One thing I did today, I had bought some J.P. morgan call spreads. I took them off, that was it. But that's to me the most important set of earnings.
- [09:53]
Guy Adami
Yeah, you know it's. I think there's still weakness in the consumer that tariffs, no tariffs. I mean we're going to get More headlines obviously from now to April 2nd. But I think the underlying cause, in my opinion, the headline cause I get the underlying cause is a weakness in the consumer and a weakness in the economy, despite some of the numbers we might be seeing. And you know, Tim says he's not concerned. I get it. If rates go higher because things are improving, that's fine. But if rates are going higher and things are deteriorating, that's not particularly good.
- [10:19]
Melissa Lee
Well, Morgan Stanley's out with a new bullish call saying the beaten up Mag 7 names could be ready to rebound. Mike Wilson's Affirm's chief US equity strategist and chief investment officer. He joins us now. Mike, great to see you.
- [10:31]
Ray Stevens
Good to see you too.
- [10:32]
Melissa Lee
So this is a tradable rally for how long?
- [10:36]
Ray Stevens
Well, it has been, I guess, you know, look, I think we're just marking to market with respect to, I think we came into the year a bit more worried about the first half. We had a range of sort of 5,500 to 6,100 and we hit the low end of that range. So, you know, the fact that we bottom right on that number, I guess made us feel better that that that technical level was, was real support. But really at the end of the day, I mean, everybody's talking about tariffs right now. But the reason the markets are lower over the course of the last three or four months has nothing to do with tariffs. It's mostly to do with the fact that earnings revisions have rolled over. The Fed stopped cutting rates. You had stricter enforcement on immigration, you have Doge, which all those things are growth negative. And then tariffs is just kind of the final piece that got people really kind of bearish at the end. And I would say the thing that really got the S and P going down at the very end was when it became clear that the President does not care about the stock market, at least for now. And that lack of a Trump put was like really new news to people. So we felt like all of that sort of capitulation was good at 5,500. It started out with a low quality rally, which is what we expected, meaning a short squeeze. And then what we noticed is that the revision Factors on the mag 7 are actually starting to stabilize a bit. So the last couple days those stocks have acted better and that can take the index higher. Like how high? 5,900. So we're almost there. It's halfway done. I mean the move has kind of already happened. I think the, the bigger moves are going to happen in these lower quality areas. Where the short base is still pretty, you know, pretty stiff. And. And ultimately, though, you know, I think I agree with a lot of the commentary you had on the panel there, which is that it's going to remain volatile through the end of the second quarter. So whatever rally we're getting now, we think probably ends up fading into earnings into May and June, and then we'll probably make a more durable low later in the year.
- [12:26]
Melissa Lee
A durable and new low. Like we haven't seen the lows for the year.
- [12:31]
Ray Stevens
Potentially a low. Let's put it this way. I think the chance of us making a new high in the first half is very, very low. Okay. Could we make a new high in the second half of the year as people look forward to 2026? Yeah. Do we have to make a new low in the S&P 500? I have no idea. But I can tell you this, is that the. I think that it's going to be a trading environment at a minimum. Okay. That's your best case scenario between now and probably the end of June and into the summer. And look, that's why we're here on Fast Money. You know, our job is to be both. You know, we have views on the long term and we have views over the short term. And our views in the short term I think have been pretty accurate.
- [13:02]
Karen Feiderman
Yeah. So, Mike, you came out with that note this morning, but last week's note, so every Monday you come out with it, was also hinting to this. You were kind of suggesting the fact that some of the names that you really care about from an earnings perspective were kind of getting overdone to the downside. If you think of the fateful eight, they were doubling up the downside, Tim. They were doubling up the downside that we saw in the S&P 500. So on a day like today, it's kind of interesting when you see Apple, Microsoft, Broadcom, underperform is that sort of price action is not the sort of thing over the next few days if we just don't see them continuing to participate, that you might kind of go to a more bearish stance?
- [13:39]
Ray Stevens
Well, there's dispersion in the, you know, Mag 7 faithfully, whatever you want to call them. I mean, half of the.
- [13:44]
Mike Wilson
Whoa.
- [13:45]
Ray Stevens
Half of the group. Half of the group was quite positive today. I mean, you know, Tesla had a massive move. So look, I think the barbell to own right now for this Trade has been MAG7, but also low quality. And that's what this is kind of reflecting. I don't think the market's trading off of fundamentals across. It's more about technicals, it's more about the flows where the short base is greatest. But the one piece that we felt good about this week was that the Mag 7 or Faithful 8 revisions are starting to sort of bottom out a bit. And the other trade that we advocated this week was that the US could have a relative move back against Europe because as we go into second quarter earnings right now with the dollar weaker, that's going to be a headwind for European earnings and actually a tailwind for some of the larger cap names in the US like that's, these are the trades that, you know, this is what we're being given, right. So we have to take advantage of these trades when we see them.
- [14:38]
Mike Wilson
Hey Mike, it's Tim. So it sounds like you're a little more negative on the mega trade and that's making international great again. But my question for you is what, what, what part of your view here is somewhat non consensus or I'd be just curious to know like which of these subsectors do you actually think we're really going to have some impressive earnings growth? I mean the energy sector is one of these places too where I think you really have seen some non correlation, some surprise resilience and actually some earnings growth. It's not a big deal, probably even to someone like you because it's, it's four to four and a half percent of the S and P. But tell me about health care. Tell me about, you know, which also looks like it's really had a nice recovery off of some fundamentals and some headlines that were not so good. Help us drill a little deeper than just. This is a trading rally.
- [15:17]
Ray Stevens
That's right. I mean on a more core basis, you know, we've been very focused on earnings revisions where they've been good and that's been financials. Some of the software stocks, consumer services still look pretty good and of course some of the media entertainment area, not that, not the ones people are excited about, but more like your telcos and cable companies quite frankly. And then energy has been a group, we've been overweight. It's finally working now here this year. Health care is very idiosyncratic, as you know. So you know, it's a mix, it's a real mix and it's more idiosyncratic. I think what I can tell you is that our work suggests that you still want to stay up the quality curve for your core portfolio. What we've been talking about the last Couple of weeks is more of a, you know, the trades that we sort of like in here. But those four groups I mentioned before, financial, software, consumer services and some of the media entertainment, those would be the, those would be the core of our portfolio right now from a revision standpoint. And then we'll be looking for, you know, parts of the market that can benefit into 2026. I think it's a little premature for areas like energy and materials have a sustained move because I'm not really a believer yet in global growth accelerating. But those are two areas I think could have a really good second half of the year.
- [16:21]
Melissa Lee
Mike, great to speak with you. Thanks. Mike Wilson, Morgan Stanley what do you think of those core tactical.
- [16:29]
Guy Adami
No, the court. It all makes sense what he's saying. He's looking for an overshoot to 5900. We talked about 50 in a quarter. I get it. I think close enough for government work type of thing. I do think if I'm reading between the lines, potentially another leg lower before we really accelerate in the back half of the year. That all makes sense to me. But I'll add one more group. I think energy very quietly is going to surprise people. The upside, the XLE, I think, closed north of 92 and a half or so today. And that's going to start flirting with levels we saw 11 or so years ago, I think very quietly, without people paying attention. So energy to me is the place to be.
- [17:00]
Melissa Lee
You've got energy in your acronym.
- [17:02]
Tim Seymour
I do.
- [17:03]
Melissa Lee
Remind us which letter it's supposed to be.
- [17:05]
Tim Seymour
E for the oih. I don't know why this is so difficult.
- [17:08]
Mike Wilson
Yeah, it's two years in a row. Elementary, Watson.
- [17:11]
Tim Seymour
Exactly. So, yes, I like, I mean, you know, it has, I just, the valuations are so ridiculously cheap. That's been the case for a while, though. But I'm a, I'm a believer.
- [17:21]
Melissa Lee
And now to one of South Korea's biggest companies, Hyundai, expanding their US Presence. A multibillion dollar investment was announced at the White House this afternoon. Let's bring in CNBC Sima Modi for the details on this. Seema, Melissa, South Korea's Hyundai announcing a $21 billion investment in US manufacturing that includes a new plant in Louisiana that will produce about 2.7 million tons of high quality automotive steel a year for Hyundai and Kia motor cars. The announcement was made by President Trump alongside Hyundai's chairman at the White House this afternoon in which the South Korean conglomerate also revealed plans to purchase $3 billion worth of US LNG. It is seen as a way to level the US trade deficit with South Korea. Trump adding that the investment in US Onshoring is a clear demonstration to him that tariffs work, suggesting that this is a blueprint for other companies looking to avoid higher levies on US Imports. Unclear if Hyundai's investment announced today gives South Korea an exemption from the April 2nd reciprocal tariffs. However, it does follow a string of high profile US Investments in recent months from the likes of Taiwan Semiconductor, Apple Japan, SoftBank, Honda. We now wait to see Melissa how quickly that money is spent. Sima. Thank you. Sima Modi, can you imagine if all these companies opened their own steel plants to supply their own companies to manufacture their own cars and.
- [18:44]
Mike Wilson
Sounds wildly inefficient. It really is not how it goes down and just, you know, that's why it's kind of a surprise. Also, if you look at the auto industry, I mean, companies like BMW, we talked about this on the show, which has a major plant in South Carolina. We're already doing a significant amount of their production. This is great news. Makes for great headlines. And the question is how much of this is truly incremental.
- [19:03]
Melissa Lee
Yeah. And how much of it, how much of the money will actually be spent right. On these projects in the end? That's a big question.
- [19:09]
Tim Seymour
Well, yeah. The $500 billion one is sort of top of mind. And was the. Was. Is it true? I don't mean whether this Hyundai was already. I'm sorry, not. That was SK today. Right.
- [19:25]
Melissa Lee
Which one?
- [19:25]
Tim Seymour
Which was the release they just did talking about Hyundai. Sorry, it was Hyundai that. That had already been planned prior to this announcement today. Is that correct or no?
- [19:36]
Karen Feiderman
Yeah, most of them.
- [19:38]
Melissa Lee
I'm not sure.
- [19:39]
Guy Adami
Nor am I, but I like the pronunciation of Hyundai. Tim looked at me.
- [19:43]
Mike Wilson
Well, I don't know anyone here is pronouncing it Hyundai other than you, but that's fine.
- [19:46]
Guy Adami
But I do that often with words.
- [19:48]
Karen Feiderman
Kim's probably the one person who's been to Seoul, you missile.
- [19:51]
Mike Wilson
I've been.
- [19:52]
Tim Seymour
You've been to. So I have not seen.
- [19:53]
Melissa Lee
Ambassador, let's trade the globe here. Or so I got. So let's move on. Coming up, we lost drug makers on opposite sides of the scale this year as Eli Lilly and Novo Nordisk look to round out Q1 in very different places. What Wall street sees in store for this space. And can a new China deal help pack on the pounds for one of these names? Plus Chinese EV maker BYD charging past the competition, the company hitting a major sales milestone. How this name stacks up against the competition. Next. Don't go anywhere. Fast Money's back in two. At Capella University, learning the right skills could make a difference. That's why our business programs teach you relevant skills you can take from the course room to the workplace. A different future is closer than you think with Capella University. Learn more at Capella. Eduardo. My side Hustle brings in over six figures, about $10,000 a month. Over $500,000 since its beginning. Find your hustle with CNBC.
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- [21:21]
Melissa Lee
Welcome back to Fast Money. We've got an earnings alert on KB Home shares dropping after missing EPS and revenue expectations. Pippa Stevens has got the details. Hi, Pippa. Hey, Melissa. Eps coming in at 149. That was $0.09 short of estimates with revenues of 1.39 billion also short. The company also cut its revenue guidance for 2025 saying, quote, consumers are working through affordability concerns and uncertainties related to macroeconomic and geopolitical issues which are causing them to move slowly in their home buying decisions. Adding that demand at the start of the spring selling season is, quote, more muted than what we have seen historically. Now on the call just now, the company saying it started to move to longer term contracts in anticipation of tariffs. Melissa? All right, Pippa, thanks. Pippa Stevens stock down 6.7% here. Guy.
- [22:08]
Guy Adami
Average selling price, the guidance is for 480 to 495. I mean, we've been north of 500 for a while. And then if you look at deliveries, I mean, that was disappointing, I think. I mean 2770 as opposed to 3000 she was looking for. So there's a deterioration here and it makes sense if the consumer is slowing down, it's going to manifest itself in these names. We've been saying it for a while. I know Tim is on the story as well. It's to me it's not about interest rates. It's about the health of the consumer or lack thereof. I think these stocks continue to go lower.
- [22:38]
Melissa Lee
Also the optimism around the jobs market. Right? Exactly. Like even when you switch jobs, you're not necessarily going to a better paying job anymore. And that's a big change in consumer psychology from what we've experienced recently.
- [22:50]
Tim Seymour
Well, maybe that's why the cancellation rate is much higher than expected. It was 133 they were looking for. It came in at 16.
- [22:56]
Melissa Lee
All right, let's move on to Lilly rising over 3% with UBS forecasting higher Q1 sales of its blockbuster obesity drug Zepbound. Analysts highlighting that 70% of new to brand prescriptions are going to Zepbound rather than Novo. Nordisk Wegovy. Meanwhile, Novo shares falling 2% even, even after inking a deal for a new weight loss candidate from Chinese biotech United Therapeutics, or I should say United Laboratories. Excuse me, very different companies. United Laboratories. The deal worth up to $2 billion, marks Novo's latest attempt to close the gap with Lilly in the weight loss space. Basically, UBS saying there's probably going to be some upside to Lilly in Q1 while Novo remains flat. And this move to ink the steel with a very little money up front. $200 million, with $1.8 billion potentially in milestone payments later down the road if they are met. But it sort of underscores this investor perception that Novo has a real pipeline problem when it comes to the obesity drugs.
- [23:51]
Mike Wilson
Yeah. And if you look at their recent results on Redefined too, and where they're comparing it essentially to Zepbound, you know, you've got a dynamic here that I really think there's some concern here whether people believe that the efficacy was really as good as Lilly or that it's actually not that far off and therefore is worth. And to me, in terms of relative value on the stocks, it's worth it. I still, I still struggle with the sell off that Novo has had relative to Lilly and relative to itself. Given that, I think that the growth numbers are still fantastic. The valuation isn't cheap, by the way, but I think if you look at it, they're still supplying more than Lilly in terms of the world's GLP1.
- [24:28]
Melissa Lee
And you're in it now.
- [24:30]
Tim Seymour
I am, yeah. I bought some. Really? I thought it was a great trade, you know, up five bucks, down like four and a half. That's not such a particularly good trade.
- [24:37]
Melissa Lee
You.
- [24:37]
Tim Seymour
On our midday call, you talked about the perception of maybe this deal is a sign of inadequacy, not them moving forward. Like, what do they have they got to do something. A bit of desperation, like an acknowledgement.
- [24:49]
Melissa Lee
That they've got to shore the pipeline. This is supposed to be the answer to Lilly's read A True Tide, which is a more efficacious injectable drug. But don't forget, Lilly's also got the oral candidate coming down the pike. So it's they're stacked up against a lot of different potential downside catalysts plus.
- [25:06]
Tim Seymour
Muscle mass drugs, right?
- [25:07]
Melissa Lee
Yes, exactly.
- [25:08]
Guy Adami
Novo's been cut in half and we talk about all the time I thought it was going to stop in the low hundreds, high nineties. Obviously it did not we trading down the levels that we took off from in the summer of 2023. I mean you want to play the valuation game. I would have played that $25 ago but more so now. I mean I think this is there is going to be a catch up trade at some point. The bad news is going to bait you going to want to own nvo.
- [25:30]
Karen Feiderman
Yeah. You know just like the general trade might have, you know, fever might have broken. It's clearly broken here. If you look at like the XLV where you know, lilly is what, 12, 13% or so it's trading at the exact same spot it was last year at this time. So you know the valuation is going to become an issue and Lilly and you know I think Tim just mentioned that but there's probably better ways to play it and some of these smaller names that are going to be making you know, more innovations about whether it's you know, prescribed for this that the other thing and obviously the oral is a big one.
- [25:57]
Melissa Lee
There's a lot more fast Monday to come. Here's what's coming up next. It's not just Novo and Lilly. How one pharma competitor is taking on the weight loss drug space and the advantage it has over the competition in the pill space. We'll talk to the CEO of Structure Therapeutics next.
- [26:14]
Karen Feiderman
But first, 100 billion for BYD. How the Chinese EV maker just surpassed a major sales milestone as Tesla looks.
- [26:22]
Melissa Lee
To recharge after after a record nine week losing streak.
- [26:26]
Karen Feiderman
You're watching Fast Money live from the NASDAQ market site in Times Square. We're back right after this.
- [26:37]
Melissa Lee
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Karen Feiderman
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Melissa Lee
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Dan Nathan
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Karen Feiderman
Go to cnbc make it.com/side hustle Special.
- [27:21]
Melissa Lee
Offer ends April 1 welcome back to Fast Money. Chinese electric automaker BYD jumping today after announcing it surpassed $100 billion in revenue in 2024. The company beating Tesla to that mark even with lower priced vehicles aimed at undercutting the increased competition in the China market. BYD's revenue up nearly 30% versus 2023 while Tesla's increased just 1%. Tesla leading the S&P 500 today by the way, higher up nearly 12%. It has got beaten up though, to your point, the ones that were beaten up most have jumped the most.
- [27:56]
Karen Feiderman
Well, this is interesting story because obviously China has been a huge part of the Tesla growth story and BYD is a company that's obviously, you know, Buffett is a shareholder in this company and they had about the same amount of sales as Tesla did last year as it relates to EVs and hybrids. And I think that's interesting to note that Tesla and Elon Musk have put a stake in the ground. They will not make hybrids. And so if you've reached a certain point of saturation when it comes to EVs then a hybrid could be sort of interesting. I think that on an innovation standpoint they have a lot more cars, they introduce them quicker. They just released a car that has 250 miles that can be charged in five minutes. They're giving away, I don't know if it's full self driving, but it's advanced assistance. You know, big part of the Tesla story going forward is that they're going to get, I don't know, hundreds of thousands of people to pay $10,000 for full self driving that hasn't already been approved. So I just think this is an interesting race to watch.
- [28:49]
Melissa Lee
And they also are very clear about global expansion. While it cannot happen the United States because of the tariff situation, there are probably other markets that would gladly have a cheaper EV with free self driving features in every model, including one that's below $10,000.
- [29:04]
Mike Wilson
And they know it. And even if it's not the US they know it's Europe and they're talking about building a third plant there. They're talking about dynamics that I think will make it a global brand. And it just gets back to valuation. For me I'm long BYD in my, in my etf and to me you're one time sales. I mean, you know, again, however you want to do this, this is a company that I think has the scale and the ability to, to maybe appeal in ways that Tesla doesn't at a time when this is unrelated to what Tesla is doing. And Tesla is was by the way, Tesla rallies today as a market proxy, let's really be clear. And I'm not sure that's what you want as a Tesla shareholder.
- [29:36]
Guy Adami
Yeah, but it was pretty clear. Listen, I thought it could get down to 240. Tesla overshot that. We got down to the October lows, which in retrospect makes sense. But you were looking for a bounce. We actually talked about this last week as well And I think 285 is a bounce level. It got damn close today to 85 is sort of the 200 day ish moving average and it comes where the uptrend line was broken. So I think there's still room to the upside here. Maybe it overshoots, but I don't think their woes are over by any stretch.
- [30:02]
Melissa Lee
Coming up, Snow White's not so bashful Backlash the sleepy box office numbers for Disney's latest live action movie and why audiences aren't too happy about the changes will explain when Fast Money returns. Missed a moment of fast. Catch us anytime on the Go Follow the Fast Money podcast. We're back right after this. Welcome back to Fast Money. Stocks surging to start the week as President Trump says he may give a lot of countries breaks on reciprocal tariffs. The dow climbing nearly 600 points, the S&P up almost 2% and the tech heavy Nasdaq jumping more than 2%, led by Tesla's 12% move higher. That stock also helping the consumer discretionary sector lead today's action. The XLY up nearly 4%, its best day since November of 2022. And Strategy formerly known as MicroStrategy jumping more than 10% today. Michael Saylor's company scooping up another $500 million worth of Bitcoin. It's now got over a half a million tokens of the cryptocurrency, the broader crypto space moving higher today as well. Meantime, Disney's live action remake of Snow White hasn't been much of a fairy tale. Plagued by controversy before it hit theaters and flopping at the box office this weekend, everything from the casting to changes to the storyline has been scrutinized. Disney shares are down 13% over the last year. But can it score a comeback? CNBC's Julia Boorson's got more Julia. What went wrong? Well, the film's $43 million US debut was the worst of any of Disney's live action remakes, and production and marketing costs ballooned TO A reported $350 million for Snow White due to the pandemic and strikes and other issues that arose. And controversies included calls for a boycott after the star criticized the president's deportation policy. She later apologized. But Snow White may go on to deliver over the long run. It did open better than Mufasa, which went on to gross nearly $720 million worldwide. And there is very little competition at the box office for other PG films for the next few months. Plus, it could turn out to be valuable content for Disney plus, and it's unlikely to impact Disney's box office dominance. Last year, Disney was the first studio to top $5 billion at the box office since before the pandemic. And this year, Disney has 14 theatrical releases, four more than last year, including two more Marvel films, another Avatar sequel, a Pixar film, and a live action Lilo and Stitch, which could be a blockbuster, though the original was released 23 years ago. Disney tells me that Stitch is one of its fastest growing consumer products franchises with $2.6 billion in retail sales. And the trailer was viewed 158 million times in the 24 hours after it was released. So we'll see if that can make up for the disappointment of Snow White. So they're trying to say to you, Julia, look over here. Stitch is going to be great. When. When Snow White was a bomb at the box office, was there anything else specific to Snow White that critics are saying, you know, accounts for this dismal showing? Well, look, I think this is a complicated one. People are saying that the original story was just maybe too old and outdated. But I have to say, Melissa, that these family films are just a really, a different beast than other types of blockbusters. If you're going to be Mission Impossible, you're going to expect a big global opening. But if you're a family film, you might be able to hold up over the long run and deliver the results, you know, months and months later because parents with little kids want to find something to do. So, interestingly, the audience score was a B plus, which is not as good as Disney films usually are. But if you're looking at younger audiences under 18, the audience score was much higher. So, yes, some questions over whether it was even the right call to remake this movie. Disney has had a lot of success remaking their animated films in the past. This is a complicated one, but we'll see if it could. It could pull off what Mufasa did, which was really outperforming over the long run, even after having a really disappointing Debut Julia. Thanks. Julia Boorstin. I mean, when it comes to Disney, it's not just what goes on at the box office, obviously with the uncertain consumer. What is going on with the parks, the street so much. Right? Exactly. Not so much with streaming being so difficult in this environment in terms of spending, what goes on with Disney plus?
- [34:33]
Guy Adami
Yeah, all those, I mean, and if the fate of Disney hangs on how well Snow White does, I think the stock is going a lot lower. I don't think it does though. And I think at a certain point just the valuation is too compelling and all the things that you just mentioned correctly. So I think at this price and this valuation are priced in the name.
- [34:50]
Tim Seymour
I just love the audience gave it a B plus. Have you ever taken your kids to the movie they love?
- [34:54]
Melissa Lee
Everything.
- [34:56]
Tim Seymour
Is amazing unless they're afraid. But otherwise, no matter what, if they got popcorn, forget it. It was like a, you know, a price plus.
- [35:03]
Melissa Lee
You give them some gummy bears and soft the charts.
- [35:06]
Mike Wilson
I do think that the story, the story around Disney plus is actually good news. And this is of course the place that they really need to succeed. I'm not worried about Studio 350 million in marketing costs and guy used to call it Lilo and Stitch. Right?
- [35:19]
Guy Adami
Well, I'm a big fan of Lilo and Stitch story.
- [35:25]
Mike Wilson
There's no question. Theme parks, we've heard about this with pricing, we've heard about this in terms of demand, it's going to be very difficult for theme parks to have the kind of year in 25 and we know they won't. But Disney plus, everything we're learning in terms of profitability and where they put forecasts out there, I think this is.
- [35:39]
Melissa Lee
A reason on the stock Coming up, five star technicals. What the chartmaster sees for shares of Uber as a ride share stock approaches a fork in the road that trade ahead. But for Structured Therapeutics CEO Ray Stevens will join us to lay out how his company is taking on the weight loss drug space and how advancements in GLP1 pills are helping tip the scale. Fast money is back in two. Welcome back to Fast Money Structure Therapeutics shares more than 65% off their 52 week high despite positive updates in its weight loss portfolio. Last month, the company announced a completed enrollment for two studies focused on dosing its lead obesity pill candidate, set to accelerate the time it takes to get the drug to phase three trials and raising the stakes for competition in the race to make an oral weight loss drug. For more structure, CEO Ray Stevens joins us here on set. Ray, welcome to the show. Great to have you with us.
- [36:34]
Dan Nathan
Thank you, Melissa. It's great to be here in person.
- [36:36]
Melissa Lee
So we should be getting the readouts for the phase two access studies by year end 2025. Tell us about the actual drug and the molecule because you say that it's a similar scaffolding to Lilly's candidate. Oral candidate, yeah.
- [36:51]
Dan Nathan
So Elenagliparon is the name of our drug. We're very excited about it. So we'll have two different phase 2B readouts at the end of this year. Access and Access 2. The first one, we believe an Access study we'll see equivalent to the best in class, potentially best in class. What's out there right now for oral small molecule pills. And the Axis 2 gives us the opportunity to potentially get even higher efficacy from that study. So we're really excited about both of these studies reading out at the end of the year.
- [37:18]
Melissa Lee
How do you think about the competition? Is it Lilly's candidate specifically? I mean, Pfizer's candidate is sort of pushed to the side for now. Is it Lilly's oral candidate? Is it injectables? Will it be Lilly's Red of True Tide, for instance?
- [37:31]
Dan Nathan
Yeah, I think 2025 is going to be a really exciting year for patients, really, because they're finally going to have options. Right now the options are injectable. And as you've said in the show before, most people discontinue injectables 85% after two years. And so patients will finally get the chance to have options. An oral pill, a once a day oral pill. And as we talk to physicians, what they really want the most, flexibility. So the oral pills, giving that to their patients, being able to take the pill, you know, as they want based on tolerability. This will be a really exciting year. I think it'll be the year for oral GLP1 small molecules.
- [38:09]
Melissa Lee
The way you're talking about it sounds like it will be a substitute for an injectable as opposed to an off ramp from an injectable where you maintain weight. How do you, how, how are you seeing it fit into the landscape now?
- [38:21]
Dan Nathan
I think it's really about giving patients options right now. The biggest option that's needed, accessibility. You know, we all have stories of somebody that we know that could not get access to these medicines. It's heartbreaking the stories that you hear. And so being able to make these medicines accessible to people is really what drives us. And making an oral small molecule that can be manufactured. We're a small biotech company. We can manufacture 6,000 metric tons. That's enough for 120 million people today. That's more than Novo and Lilly can do combined. And so I think it's really about giving those patients the options. If they want to take the injectable once a week, this convenience to that, if they want to take the oral pill once a day, there's that. And then we've talked before on the show about maintenance and some people may want to switch what we call, you know, switch studies where what they're on an injectable, they may want to transition over to a once a day oral pill.
- [39:10]
Melissa Lee
Right. You've said that you are looking for a good partner. What does that mean? And is it specifically for this candidate? For the oral candidate? Does partnership also include, I don't know, an agreement, a takeover? Does it? What is it?
- [39:24]
Dan Nathan
Yeah, what we're driven by, you know, what we are really motivated by is making sure that we can get this medicine to as many people as possible. That's what drives us. We're going to make decisions based on that, plain and simple. So who has that large commercial ability capability? That's really important. And so any partnership that we're having that we're thinking about really has to be about commercialization and getting this to the masses.
- [39:48]
Guy Adami
I think some of the concerns, and correct me if I'm wrong, but the stock move lowers on the back of 89% experience nausea in the study. And, you know, I think that's maybe scaring not the investment community, but the training community. Can you do anything to sort of assuage the concerns of those people?
- [40:05]
Dan Nathan
Yeah, absolutely. It's a great question. So the reason why we've seen this and Eli Lilly with ofagliparon and one of the other reasons we think 2025 is going to be the year of the small molecule is because Eli Lilly will read out there in Q2 their type 2 diabetes data and in Q3 they're healthy overweight data. And then we'll have in Q4 our healthy overweight data. What we're able to do in this time when these longer time period studies is we can titrate once every four weeks where we give somebody the drug for four weeks at one dose, five milligrams, and then after four weeks we go up a dose that allows the body to get used to these medicines. That's what one really needs. We've learned this from the injectable peptides they inject. They go and titrate once every four weeks. Why do we think the Oral pills are going to be any different. So finally in 2025, we're going to get to see oral pills on the same titration schedule as the injectable peptides.
- [40:56]
Melissa Lee
When do you need to find this partner? By I mean if you're going to have phase two by the end of the year, you're going to be in phase. I mean at some point commercialization is very close.
- [41:03]
Dan Nathan
Yeah. So one of the things, you know, there's the old adage in biotech is raise money when you can, not when you need it. And we've executed on that flawlessly. So we're in very good capital situation right now. We have Runway until the end of 2027 and so we're able to complete our Phase IIb. We're already conducting some of the studies for Phase 3 readiness. Where we want, where we would really like to have that partner is really for commercialization and indication expansion. This is a medicine not just for chronic weight management, but we're seeing the improvements in cardiovascular, kidney, liver, and we'll see later this year even CNS diseases.
- [41:41]
Melissa Lee
Okay, Ray, thanks for stopping by. We appreciate it.
- [41:44]
Dan Nathan
Absolutely. Thank you.
- [41:45]
Melissa Lee
Ray Stevens Structured Therapeutics. Coming up, Uber at a crossroads. What the Chartmaster sees next for the ride to your name and how the lines are drawing themselves on the chart. Don't go anywhere. More fast money into. Welcome back to Fast Money. Uber shares have been volatile over the past 12 months, but the Chartmaster thinks it might be time to take the rideshare stock out for a drive. For more on this call, let's bring in Carter Braxton. Worth of worth charting. Hey Carter, I'm Alyssa. Yeah, we can go right to the charts but what's important to note is this is a stock that's been rangebound for a year. You can see it here on the first that sideways. Choppy albeit, but sideways is what a fallow asset is. When the market's been going up, every sector is up on a trailing basis except energy. The market's up 10% in this stock bunch. Let's draw some lines. So they're all identical charts the next iteration. That's a beautiful uptrend. Since 2022 we've checked back to the penny over and over and over and we're down to trend yet again. If you add a downtrend line, you'll see we have some might call it a wedge. A trend doesn't what you call it, it represents a standoff. And it's our judgment that it's likely soon to be resolved Another way to draw the lines is of course to put a flat top on it and that's an ascending wedge if you'd like to name your patterns. But that's what a breakout candidate is. Something that's after a big move and churning sideways. Another way to draw the line same chart would be as follows. Simply drawing the internal trend line in effect since the highs of 2020, the post Covid bounce and then finally you can see this iteration and you'll say well what is that? Some people like to name their patterns. These are setups. It doesn't matter whether you call it the so called cup and handle. This is a bullish setup. We're playing for a breakout here. Uber. A fellow asset that we think is about to come to life. Fallow correct Carter, not foul. Fallow. Just to clarify. Yes. Was I? Yes.
- [43:44]
Tim Seymour
Okay, I heard foul. Also much different.
- [43:49]
Melissa Lee
Thank you. Carter Braxton. Worth of worth charting as I recall.
- [43:52]
Ray Stevens
Yeah yeah.
- [43:53]
Melissa Lee
You is the you in in my tube.
- [43:57]
Guy Adami
I love it in my tube and it's going to continue to be there. And I will say this, I mean with 15% why is that amusing? 15% revenue, 35% EPS growth, reasonable valuation back and filled to the level that it broke out from. It's got to get above 82 otherwise you have a bit of a technical problem. I think it does.
- [44:15]
Melissa Lee
Mel by the way, if you if you want to talk to Guy about his tube.
- [44:20]
Guy Adami
Excuse me.
- [44:21]
Melissa Lee
Yes, that's him about his band or to Dan about his gen AI and quiz Karen about how she broke every single rule of the acronym game. This year you can sign up for our next edition of Fast Money Live. Our next live show is June 5th right here at the NASDAQ market site. You can see the show, take part in a great Q and A and then share a cocktail with your favorite trader. Scan the QR code on your screen or head over to CNBC events.com fastmoney.
- [44:46]
Mike Wilson
I mean an opportunity. Look, if Guy doesn't want to talk about his tube, I'll talk about it.
- [44:50]
Melissa Lee
You can wax he's on a bash.
- [44:52]
Mike Wilson
We're going to have a good time.
- [44:53]
Melissa Lee
The fact that you want to talk about guys tube is a little disturbing. Up next, final trade. Final trade time.
- [45:08]
Mike Wilson
Tim I think Paypal was the P in licep last year and I it had a great run of the year. It pulled back significantly. I think the valuation is very attractive. New products coming online.
- [45:19]
Melissa Lee
Karen.
- [45:20]
Tim Seymour
Yes, Uber. I like to fundamentals but I like to hear that Carter loves it on.
- [45:23]
Melissa Lee
The chart and it was fellow, not foul fan.
- [45:26]
Karen Feiderman
Yeah, Nike's getting close there guy.
- [45:30]
Guy Adami
GPCR is not in the tube because I don't know what letter I'd use, but that's I think it's going higher from here.
- [45:35]
Melissa Lee
Thanks for watching Fast Mad Money starts right now. All opinions expressed by the Fast Money participants are solely their opinions and do not reflect the opinions of CNBC, NBCUniversal, their parent company or affiliates, and may have been previously disseminated by them on television, radio, Internet, or another 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@ Capella University, learning the right skills could make a difference. That's why our business programs teach you relevant skills you can take from the courseroom to the workplace. A different future is closer than you think with Capella University. Learn more at Capella Eduardo.