In mystery name . We get a minneapolis appearance from pete. Look forward to that but beginning with this. Breaking news in retail, the gap scrapping plans to spin off old navy shares jumping on the news. Lets get to Courtney Reagan with the details. Gap, inc, reversing the decision to spin out old navy into a publicly traded company, increasing guidance for the full year and giving leadership updates and a surprise announcement in the last hours shares popping on the news, they were behind be pulled become a bit. But they nounsed the gap pick art feng was out the separation was first announced at the end of february 2019 interim ceo Robert Fisher said while the object he was of the separation remain relevant our board of directors concluded the cost and complexity of splitting into two quips combined with softer Business Performance limited our ability to create appropriate value from the separation gap, inc, now expecting fiscal full year sales and comps to come in at the higher end of the range. Earlier guidance coming in better than they expected because of better promotional levels at Holiday Season especially at old navy gap, inc, is looking for a new ceo. In the meantime, Mark Breitbart will lead the other Specialty Brands as a group. And sonia single will continue to lead old navy current gap brand ceo neil fisk is leaving still a lot of moving parts in the surprise move but no longer separating to two publicly traded Companies Just one. Big new there is. Thank you very much. Courtney reagan. Lets twrad this guys the stock is popping after hours but lets not get crazy this was a 40 stock five years ago. Ner looking for a ceo. Is anybody changing the view on gap because of this move well, i tell you what, its interesting because february 28, 2019 when they announced a spin off they went up 25 tonight the when they are not spinning off it rallies. This is a great strategy as a corporate officer. The bottom line is gap has structural and brand issues but also some core value and inso intrainsic value to the brands which maybe the point is especially upsizing the guidance you think this is the wrong time to sell assets byo which doesnt mean they are selling them but this was a case where breaking it apart would be better. And you have synergies and scale. I guess to the point now maybe they think they are better they have a challenged business going forward. If they can at least hold scale while its troughing thats all theyre doing is staying the same. Right. Nothing changed they were going to change. Right but when they were going to change. Maybe they realized they are not getting value from the. And the stock went from 32 to 18 in the meantime its not as valuable as it used to be. You think about if you are a board of directors when its 32 and goes up 25 in a day, you are screaming saying this is a fantastic idea and then because of all the challenges that everybody is mentioning here over the next year the suffolk is cut in half, clearly the market saps there havent value in breaking up you look at old navy its the only thing its the gem of what they have. But the whole idea about valuation that was the original thought. It was the gem and the overall was that valuation was getting pulled down by the other asset that wasnt an asset at this point they feel that the business is challenged at least you hold on to some synergies. You have some scale. While you navigate the issues that have plagued the retail space. Good luck with that. Which are closing down unprofitable stores. I think dwop gap has gone through restructuring which is healthy. Its not as if they are saying we dont know what theyre doing. Put it back together the fact the Management Team are reasserts themselves although the ceo is leading this, right now they are telling you the business is better than yesterday. Thats the point i think. But you have seen bounces in beaten up names whose Business Models are flawed if not broken. Macys went from 159 to 18. 5 in a straight lineup. Doesnt seem like a lot but its significant. Back in april, it went from 26 basically to 15. 5 in a quick fashion. Im in the thinking we are getting back to 26 but steve talks about this, 11 Short Interest, people are covering i think you are looking more for a place to sell it again rather than buy it on the move. Listen, over the last five years every time you get a bounce of this magnitude its a selling opportunity. Im not certain that this is isnt exactly the same as before. The gap certainly a big story tomorrow right now moving up about 6 moving on, we have a new member of an extremely exclusive club Google Parent Company alphabet closing the day just above the 1 trillion market cap mark. Its only the fourth u. S. Company to hit the major milestone. Alphabet has been off to a great start this year up 8 in 2020. Tim seymour, does the number with all those commas matter where do you think the stock is headed from here. It used to, didnt it but trillion Dollar Companies are a dime a dozen these days in the market i think it means something its a big round number. It used to be something you tested for a while before you break through. I think the news around google ises in a company i think first of all the core business which used to be seen on a level as yesterdays business and they needed to figure out tomorrow and it was slipping. The core business a cash cow an annuity ner recognized for they are not losing group. The sum of the parts is undervalued and the regulatory concern are a headwind and knocked it down june 6th no longer appear to be something the Company Fights every day. Why do you say its under valued we dont know the value of youtube do we they dont break it out. I think about their eyeballs and where they value as a sum of the parts at this point. And i think this is arguably one of the largest media machines in the which is that frl in googlen google but i think its better that apple now i saw a headline the other day talking about 2 trillion in market cap with apple. I think its better first. I think it takes the weight off it but the important thing is the antitrust seems to be a distant memory it just happened that was the major headwind. Now its so much going on, i feel like everyone forgot about it and people are testing the waters again. Karen is not here this is her Biggest Holding i think the at 26 times next year numbers its relatively cheap, given the growth they have seen. A couple of analysts bernstein put a 160 oh price target on it this month appear every core the same and into february 3rd weve been steadfast in this. This is a name you want to own especially in the environment with the broader market. Thats the key part this is benefitting from the broad are market you see people coming into the market saying we have the trade war out of the way there is some kind much truce going on the economy looks like its going to be okay for some period of time. So theyre reaching for things, reaching for where there is growth and alphabet with all of the levers that can it pull has the growth you look and the other strange thing is people are reaching for yeemd in the utilities as well. I think the whole push is helping everything. The high priced target on the street, 1735 for alphabet from Deutsche Bank research they see meaningful upside Karen Finerman great call. Congratulations. Check out the monster move for morgan stapp stanley topping the tape best day in three years after a blowout quarter, posted record profit. Revenues it raised guidance stock hitting the highest in two years. Not alltime high, guys. So guy. Yes, sir. Is Morgan Stanley with the big move but not alltime high here maybe the big bank to bet on. I dont think so. It fb obviously has been i dont thinks it it is now. Youve had a big move and then citi bank for example which just said their book value i think is around 80, 1, if you look every time citi trades around book its an opportunity to sell in my opinion these banks are getting ahead of themselves in terms of historic price to book levels the one bank we have mentioned a lot thats been doing extraordinarily well im not its not necessarily a bank but look at blackstone over the last six to nine months. Continuing to go higher every day, making a new high every day. If you want to be somewhere id rather be in blackstone still rather than Morgan Stanley. What took people by surprise is fic trading and seasonally between the third and Fourth Quarter usually fic trade something down thats surprising. But assets growing 19 Wolf Management up 11 . Share buybacks buying back shares, 6 reduction in shares i think you sell it on the pop head fake. B li b. K. Blackstone up 84 in 12 months a private equity firm. Why is it up 84 in a year because they are the ones growing. Money is free. There is money coming look blackstone has done blackrock has done and Morgan Stanley with the Wealth Management division thats the difference between them and citi bank this is part and parcel to the mom and pop phase to the market. You are looking at a ton of money coming in whatever the money on the sidelines apparently its coming in now through all the channels. Blackstone is the top of the food chain in terms of alternative asset management, size, sophistication and where they sit with money free, the ability to get exits out the doctor, ability to make new investments. This is a great environment. Credit spreads are tight relative to where people thought they were going to be. Thats the environment were in. That can change quickly if you set some credit. And you remember blackstone in the crisis obviously a lot of ill licked which hadty. And the buybacks petition timothy bring back capital and the 4th sfesk billion plus quarter. A heady 2. 7 dividend yield on blackstone. I get i got break, break, in my ear go back to march of 2018 see where Morgan Stanley topped out at right here. Right here. Breakout. Break break. Its broken coming up, railroad giant csx plunging break down earnings with seema modi. And comcast launching with r. P. Cochran. And the breaking details there and you can watch us live on a wnadheor computer. Dolo t app today were back right after this. P ue steps along the way. So we can spend a bit today, knowing were prepared for tomorrow. Wow dad, do you think you overdid it maybe . I dont think so. What do you think, peanut . Nope honey, do you think we overdid it . Overdid what . See . We dont think so, son. Technically, grandparents cant overdo it. Its impossible. Well planned, well invested, well protected. Voya. Be confident to and through retirement. High protein low sugar tastes great high protein low sugar so good high protein low sugar mmmm, birthday cake and try pure protein delicious protein shakes doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. All right well back to fast money. We have an earnings alert on csx. The trap company in the red reporting results. But off its after hours lows at about 2. 5 . Lets find out what csx reported the quarter. Seema modi has more. Sharps slipping in extended trade. The ceo of csx james foot on the Earnings Call blaming the softer industrial economy, the Railroad Operator revenue decreasing 8 year over year in the Fourth Quarter. Driven by a doubledigit decline in the export of coal. Weak volumes come as the coal industry is under pressure under pressure from natural gas and concerns over emissions. Pushing utilities to retire coal plants in the u. S. And seek cheaper Renewable Power alternatives the key thing to watch they say is the industry wide effort to implement precision scheduleland railroading to improve operating efficiency and lower cost and the big question whether the pyroimproving trade story leads to more traffic. But even with tensions easing csx says it took industrial activity a while to cool off and it will take a while to heat up. Based on her this they expect the fullyear revenue to be down stock down 2. 7 back to you. Csx looks great on the 10year chapter. Ment here is the problem made no money the last two years stuck right at the sepp 75 level. There is two things going on here right . Its part of the trade bar that we had but also the fact that natural gas is so low that natural gas effectively free, which hupperterz the coal industry the export coal which they are sensitive to typically you might say all right, warned, thats bad news for the market because people think the economy is going weaker i dont think thats the case. I think this is somewhat specific to csx because they are exposed to coal and so i think the market as a whole is likely to shrug it off. In terms of valuation csx is the probably the cheapest out of nsc, pacific trades around 117, 17. Now with the guide its in line with the rest in terms of valuation. In april we topped out at 80 big move to downside and back at 80 again i think you wait here. Thats what bk i think is saying. I dont see. Im not certain i dont think you buy it. When you look at these charts you hear this and go back and look at the charts i dont think any of the charts look bad unp, am i right looking at it alltime high, unpp for me would you rather myself i would rather go with the winner in here unp for all the reasons that we see this one is weak, csx is weak if for cloel, the gnat gas, coal pelosi closing plants. But i would think the trade helps the entire space appear helps more when talking about the trade on the macrofront. I think csx will be fine but unp at alltime highs. Hasnt done well you look at the Companies Making the trains. Freight karp, america rail is the ticker down 75 . Greenbrier down 32 . Any reason to bottom fish in the manufacturing side. Not for me. No, i think you have one more sugar high in the economy after this trade truce and why do you want to go out and buy products that take a long time to build and there is a long sale cycle and they sit around for a long time i dont want to touch them. Look at the transports overas a group the transports performed with you the rails were a strong part of that the numbers by csx, nothing special in there the beat came from cost savings and the coal volumes were not as bad as expected people feel better but thats not a reason to buy now. There you go. Switching gears Morgan Stanley tried to pump the breaks on the tesla rally adam jonas cutting to under weight fancy word for sell he calls it an unfavorable risk reward profile as well as fears over china on op that. New tesla registration in california dropping nearly 50 and rounding out the tesla trifecta i want the most heavily shorted stock in the market. Finishing in the red but not much guy adami whats your take on the price action tesla almost made it back to the green. Down less than 1 on the back of a downgrade having gone to current levels this summer again im not pretending ive been right i havent been but when the stock cant move on Something Like that with somebody significant the sfas its telling you something. Again i thought its over its skis a while obviously mr. Jonas does as well maybe at some point that matters. He raised his price target but one thing below the one thing i say about the registration story we had phil lebeau on today. He said just because california reg strapgss are down dont extrapolate because maybe they shipped karps to other states. Thats only california. I dont know that its a zerosum game. I mean the assumption i dont know enough about the registration process but adam jonas does a greats job. We had the debate with him whether this is an auto company. But to see the valuation is getting frothy is to me for me who know ive been on the wrong side of this trade but i dont think the valuation made sense for 300. You have a place on risk reward. January 28th they are telling you where they came in in terms of earnings. I want to see the Balance Sheet, Free Cash Flow can they duplicate and the rabbit they pulled out of the hat last quarter if they have something changed and Something Different is going on im not sure what it is. Steve or bk would you allocate. Into tesla on the buy side. Yes. The biggest problem you have for the shorts is this has ha high Short Interest. And its. Tried if you try to short tesla now, its probably impossible. But thats the reason why at this point even though its so bloated in value and fast money on technicals, i saw it popping over allotments on over retracements to a 500 handle. I cant say you put new money to work at a 511 stock but with the 18 to 20 Short Interest i think you can for a trade, though you can for a trade. By a trade i mean the next week or so. When you have bad news and good price action that means the trend isnt over for a trade, being very clear about that you can buy it here, goes 10 higher. Bk putting a buy rating on im kidding. This is why you have options too. I think you can define the risk. Thats how im playing it at this point there is no reason to be flat short the stock especially borrowing costs. You can make an argument thats a implied volume in the cost. I would love to know the borrowing costs. I wonder if you could find the a short on tesla what are the borrows costs on that. You put it out to the audience if you follow the twitter im sure somebody will thaens that question in the next commercial break. They love talking about it. Right after this. I muted the word tesla. I muted the ticker i muted guy adami. I muted the whole thing. For more upon the tesl fa ipm you. Still ahead, stocks closing pat record highs but if you are getting nervous we have some protection plays for you. Why not take out insurance maybe on the market from stock picks as well . Plus bitcoin off to a great start for the year 20 in 2020. Stay right here we get answers fast money is back right after this the sun is risin as the day begins time for reflectin on family and friends and hey, we got somethin just for you sniffing its a cup of your favoriiiite. loud splashing highpitched laughter dang woodchucks with geico, the savings keep on going. Just like this sequel. 15 minutes could save you 15 or more on Car Insurance. High protein low sugar tastes great high protein low sugar so good high protein low sugar mmmm, birthday cake and try pure protein delicious protein shakes all right well back to fast money. Stocks you might have heard hitting record highs today yesterday, the day before that but many investors are getting a bit nervous. If you think a pullback coming our next guest fund saturate rob sh limer at the plasma to chart it up. Give us a little pullback protection. All right, brian. Lets look at the market as a starting point because at the key point we want to maintain perspective on the market it looks like its due for a pullback at some point weve been targeting the middle of february. Into the election primaries getting concerns about the fed Balance Sheet coming to the fore but the bigger pattern is the big are market cycle underway. We think the cycle has more upside through 2020. Its a key longterm point on the momentum indicator like the rsi on a weekly basis for the s p its getting up there. Just moved through 75. It doesnt happen often. Its about 60 times. Thats a fairly big numbers back to the 1950s but here is the rub. 75 of the times the market continued higher for another 10 weeks. There is maybe not a ton of upside but it doesnt mean the market is about to peak. But we are getting to levels where we want to be more concerned. Having said that, a lot of stocks have run a long way microsoft and apple are getting extended here and not really timely new ideas to put new capital to work. Lets look at the staples Constellation Brands has a lot of hair on it very controversial. But what i like about is the 200 week moving average thats my fafrpt longterm support level its starting to turn. And such a big laggard if you get any pull bakkt in the high momentum growth stabs this could attract capital. Tends to be defensive. The next two are arguably not defensive, not staples or utilities. They are economy sensitive cyclicals. And cisco is hit hard. My sense is he is they dont have a lot of downside they are around the 200 week moving average the big band much support between 45, 46, 50 range and the relative performance is horrible but starting to hookup i think you could take the extended leaders and put capital here the last a name in the midcap national instrument. A semi conduct are they have run a long way but this hasnt. I like that its at the 200week, longterm support level, big long base just reversing the twoyear downtrend and hooks up the expectations look low. And you can make decent money going into the second quarter. Knows are the ideas making a lot of sense over the next couple years. Beer, networking gear and semiconductors, rob come on over tim start with you. Lets do that. Constellation brands right in the wheelhouse you got to like the play. I think the chart is interesting. Ill talk about the fundamentals because rob did a great job on the chapter. And looking at weier sales, the profitability on that growing the 8 to 9 they have interesting assets with divestitures in gallow. This is a name you like. Bill neulions is making the right moves and made a transition with management its good. By the way, Canopy Growth only 75 off the lows in the last two months roughly very interesting for them as well. I wanted to ask the chart you had pennsylvania 20 oh week moving average and rsi on the s p 500. I want a 14period rsi on a weekly chart. For the folks at home that does top out what im curious about, if that tops out, happens 60 times or something. Yeah. How long is that kind of pro longed lets call it a correction the issue the momentum symbioticers and strong trending markets. Momentum can build and flatten out. Theyre not actually very good indicators that was theant point i was trying to make in 60 events of that rsi crossing up through 75 you didnt get the downside for ten weeks. In fact extended out over 20 weeks you didnt get downside. You want to be careful with indicators arguing things are overbought. They work them off quick or flatten out. They are basically rate of change indicators. I would be careful relying on the single indicator. Can i extend on tims point talking about Canopy Growth. When look at the space i dont want to put you on the spot but im talking longer to give you time to rethink something. So looking at the canopy space and all the groups tim talks about canopy popping 75 off the bottom every day you come in it looks like the space is getting constructive and then the legs are taken out two days later it seems to me they are getting momentum behind some of the names. Have you looked at them and come to a conclusion. Canopy growth is a perfect example of a stock trying to bottom one of the better looking chart profiles outs there. But the group has been decimated. Reminds mean of energy getting slaughtered and took time for the trends to reverse. You want to be careful buys stocks that are popping in downtrends these are countertrend rallies its easy to make a case this is a whole new bull cyclical market but looking at loerngt term there is money to be made especially with pull barkers and they look to hold. If you like to pick like grasso i dont want to put you on on the pot. Butt me on the spo. If you had to pick a chart looks the best. Gnatty looks best thats a sweet chart and a name you guys are here all the time. Im filling in for melissa i dont think you talked about national instruments. Not on purpose. Because it doesnt hasnt done anything in two weers years. It looks sweet to me. You think there is price action on that sfl y. Yes i do. If you look at the economy sensitive semis and Electronic Component manufactures like tel and could go necks they are coming back. I think they are timely. Good stuff there. If you are joining us robs pullback playbook was three charts constellation, cisco and natti bow. Thank you very much. Thank you. Great stuff all right coming up, bitcoin on a roll this year bk breaks down whats behind the 20 move in 2020 plus another look at todays mystery chart. Why one of our traders says this stock will get total grand slam. Thats right a fast pitch on deck from minneapolis. Pete najarian. B pe. Dugout the snow joins us on fast money. Stick around but great minds are driven to seek out the complex. They see what others dont, from an angle others wont take. They learn that embracing those challenges is what sets them apart. I am justin rose, and we are Morgan Stanley. Whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. All right. Welcome back bitcoin bouncing back at 2020 after a painful second half of last year. A 20 up move year to date making it the best start all the way back to 2012. Back when it was a baby. We have the resident bitcoin bull bk whats boosting bitcoin and a lot of alit ration. There is. The big catalyst is called the halving. The daily supply cut in half right now 18 hup bitcoin are produced every day in may cut in half to 900 bitcoin. In happened several times. And 2012 was one of the times you get the halving. People are pricing that in its hard to price in because its so volatile closer to may i suspect youll have more and more people pricing in the supply cut. All right watching the halving. Yes. Bk thank you very much. Well bitcoin certainly has had a nice recent run. What else might be ready for the breakout its time for a remote fast pitch Pete Najarian joining us from minneapolis with the name he says could be a total home run take it away pete. Well, the name im looking at is paypal. Im talking about why that is and the key points in my opinion. I think the main points brian are when you start off with the ceo who has been there before the time they split from ebay. You have a guy with experience but has experience in American Express in charge of the global strategy he is a guy i think the right person at the right time to continue to move this stock to the upside ill tell what you, the fundamental story right now is there. What he you look at what they have going on. They have a company with consistent cash flow, great net cash as a matter of fact, over 5 billion this is a continue that continues also 300 million users that continuing to grow as well. Consistency and growth there on the fundamental side and when we talk about growth i really have to express to you the idea of Revenue Growth which is very strong, but also that Earnings Growth. The Earnings Growth has continued now for multiple years. And the projections out five are about 18 annually so when you look at the pe, take that into at least you have to take some something away when you look at that right now at 18 petros annually. Thats a monstrous number. Why is that . Because the projected gross sales are looking at right now to double. Were talking about 2023 nearly 7 trillion. Right now ebay or excuse me, paypal has about 20 of the market when you piece it all together, the stock is up and trading 115 right now. Its traded as high as 120 in july i think breaks through the level and the sky is the limit because venm pochlt and all the other areas, the convert calcium they have they can pull on those. This is a stock with plenty of room to the upside it may look expensive but its really not anybody have a question for pete on paypal so, pete, when you look at venmo they have 40 million active users right now not profitable but thats the Growth Engine that everyone points to. So how do you start gauging that venmo has become a verb basically and everybody i know would rather be paid on v. Nmo rather than any other outlet when do you think it becomes profitable in your research . Its got to get its something that i think is going to happen the very near future, steve. When you talk about the volume, the volume growth they have right now with venmo is at 65 thats incredible right now. I think theyve got to show all of us a little bit monetization process, no doubt about that and i think they will. This is a company that has been bold and gone out and paved some serious money thats another reason i like the ceo by the way. He paid 2 billion plus dollars almost immediately a few years ago when he got into europe with i zittle they did another acquisition that they caught flak about. And thats interesting to me because any paid 4 billion and yet an twas an amazon product that amazon is turning their back now and saying now thats a big problem for them well, i dont see the security problem. It wasnt there from 2012 until now. So i think this is just sort of pennsylvania sour grapes thing out of amazon at this point. Pete, thank you very much street likes it by the way the average target 129, 14 collars higher than right now. No more talk are you buying petes pitch on paypal tim. You know, i am buying the pitch and i put the neat vest on the picture of pete. I think this honey deal that they also should be part of the discussion is transformational in terms much relationship with consumers and merchants. I like paypal here. Backbk. You look at payments disrupt, paypal right at the center you buy the disrupters go with leaf erickson and buy paypal. Wow im clean pieing the pony tail pitch in paypal they have been a consistent grower of earnings back to 2010 impressive. I say yes, its going to 121 thats a july high he had a huge cap it laer to volume in the fall on bom it runs into earnings. Pete picked a pack of paypal pluggers have we ever gone four for four. But he still loses to twitter he loses us about a you dont have remote. You understand how the math works. Thanks. Pete najarian leave with you that have a good night in minneapolis. Have sausage the desk has spoken. Now your turn. Are you buying the pitch on paypal but the four for four probably something no mets player with do this year thats the cnbw the signs. Stop. Exclusive comments from microsoft ceo Satya Nadella. A big day for jim cramer all day at microsoft hq waiting for arars to get the interview heing from Satya Nadella jims big exclusive coming up. Stick around to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. Natures bounty. announcer treating others like wed like to be treated. Has always been our guiding principle. Now you can, with shipsticks. Com no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. Sending your own clubs ahead with shipsticks. Com makes it fast easy to get to your golf destination. With just a few clicks or a phone call, well pick up and deliver your clubs ontime, guaranteed, for as low as 39. 99. Shipsticks. Com saves you time and money. Make it simple. Make it ship sticks. Shipsticks. Com saves you i need all the breaks, that i can get. At liberty butchumal cut. Liberty biberty cut. Well dub it. Liberty mutual customizes your Car Insurance so you only pay for what you need. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. The market to new milestone. Strategy ahead of the bell on squawk on the street, 9 00 a. M. Eastern tomorrow i think what happens is if you are creating a lot of profit and creating more problems for planet of people i think it catches up with you. So in some sense the way i look at it and say is hey lets graft of the core of what we are doing. Its not about caring about material things. Our shareholders im always saying our shareholders are the ones giving us permission to be able to think about whether it is the Affordable Housing or whether its the carbon. Its our shareholders who care as much about this as anyone else that is microsoft ceo satya naldlea sitting down with jim. The company out with big news laying out a pledge to become carbon negative by 20 po you can catch the interview on the top of the hour on mchld guy adam request be microsoft parts of the google trillion dollar club. It hit it. We talked about this a while. Its a name to stay with people saying azure is slowing yes it is but the growth is astronomicalle s in a company that was floundering prior to him getting there. Now its flourishing report in a couple of weeks. You stay with it despite the fact a lot of people say at 28 times next years numbers its exclusive. Its long going to 185. Grasso a bull coming up we have a new player in the streaming wars. One thats literally and figuratively close to home Nbc Universal and comcast shaking up the pace. Dont forget to vote are you buying petes fast pitch on paypal . All four traders bought in what about you you reveal the results limu emu doug and now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. With a nationleading 150 billion commitment to infrastructure, were creating state of the art, 21st century transportation hubs, constructing new bridges, bringing highspeed internet to every corner of the state, and committing to lowcost clean energy. With infrastructure built for the future, the companies of tomorrow can thrive here today. See your future at esd. Ny. Gov. We are here to cheer the most dynamic industry in history. Taking its lumps lik all right welcome back to fast money. We are getting new details on comcasts Upcoming Streaming Service called peacock lets get to Julia Boorstin with the big day for all of us in the Nbc Universal family. Nbc universal is the Parent Company of cnbc and the peacock unveiling the three options. There is a free tier with a maximum of five minutes of ads per hour 7500 hours of programming. This includes select peacock originals and next day access to current seasons of some shows. There is also a Service Called peacock premium. Including 15,000 hours much content and some ads it costs 5 for anyone wanting to sign up for be free to the 24 million comcast and customers. For ad free access to the content, the cable customers can pay 5 a month or 10 a month for people without the paid tv bundle peacock premium will be available on april 15th to comcast xfinity, x 1 video and the flex zurek rurking july 15th pay come prem yum andfree will be available to everyone nationwide they forecast it will reach between 30,000,035 million active accounts by 2024. Nbc universal announcing a range of new license series for including law and order and two and a half men and unveiling a Multiyear Partnership with kevin hart and a series from tina faye. Subscribers get access to late night talk shows and all customers will see live olympic coverage and breaking news and exclusive streaming rights to universal films hitting theaters this year. The company says launch sponsors are already bringing in hundreds of mlgs of dollars in initial advertising revenue. And brian im sure we will learn more as the service launching. Im sure we will. We look forward to it julia thank you. Tim seymour lets talk peacock obviously in the streaming wars. You have apple and netflix but Nbc Universal im not saying this as an employee of Nbc Universal has a lot of unique content. A formidable player in the mix. One of the things that weve been deciding over the last 18 months is now the cord cutting and bundling comes back together with not just one player and probably a couple. I think comcast is in a position to compete here dramatically and ultimately on price. Thats a case where you have to look petition whole space. Right now the most important stock is look at is disney we have gotten numbers out of disney plus. Theres a strong sense they are immediately taking market share from netflix were about two weeks away from the numbers. I want to see where we are. Comcast by the way up 30 peppers the past year and the only stock that im allowed to own as an individual. Yes. I say thank you for the quality esop program we have at Nbc Universal. Netflix reporting results negligence we can. Its seen a recent run high are but negative over the last year. The question is how are traders positioning themselves ahead of the tape lets get to mike khouw in San Francisco with the options action. Yes, its interesting as we look at the options right now. Its implying a move of 7. 6 next week recording. Thats well below the quarter average of 8. 9 . We were pointing out looking at the activity we were some bullish activity which is surprising give. What we have seen in disney and release of peacock weekly 340 calls expiring a week from tomorrow the most active of next weeks option trading for 12. 20 buyers of those calls bet the stock is above 352. 20 by the enof next week as you pointed out the looking at the stock price it has not regained the highs it saw last may. But whats interesting to me historically talking about earnings in netflix it was about growth multiples but now we can actually look at earnings multiples its still very heady but trading maybe 60 times injures its actually a number you can get your arms around if we think about that one thing we have seen seen vamgss go down is the options. Right now options premiums are as low as they have been into earnings this chart shows about 50 but in fact below 40. Thats only happened twice in the last years in 2014 and in 2019. Both times earnings actually disappointed complacent options investors seeing declines of 20 and 10 respectively. Mike khouw on netflix thank you very much. Netflix, guys. I mean bits and stock it hasnt made any money in the last year. Challenged. And now the. Literally and figurativety challenged. Exactly there is competition now we just talked about multiple players, disney and comcast coming at everything this company is about and its gone sideways i think you stay away interest. Great product show. I love the product im a consumer of the product. But the last couple of years are never going to be as good as the next couple years. I own apple. Im thinking about actually buying disney up at these levels i think you start to see or continue to see the multiple expansion in disney and thats shocking a lot of the players. They dont have another business not the bankroll thattism amazon and apple and nbc has. We have a big Parent Company roying huge amounts of cash flow every month. Goldman sachs put it on the convict buy list not meaning anything but they slapped a 450 price target on it into oregons if that reskrermgs of International Growth continues i think it trades up to 385 thats the level it failed at in april. Remember when the company we thought they had Pricing Power that wasnt going away raised up to 15. 99 you look at where the disney plus offering is you look at the competition and its hard to feel this isnt a place where margins go down as a time they are trying to get of the. Pulse here. Ogss action every show tomorrow night 5 30 p. M. Arian oop a great show tomorrow ghnit. Up next final trades and a bit of breaking news too were back after this. Options action is sponsored by think or swim by Td Ameritrade whatever happens out there you have the hilton app. Will the hilton app help us pick the starters . Great question, no. But it can help you pick your room from the floor plan. Can the hilton app help us score . You know, its not that kind of thing, but you can score free wifi. Can it help us win . Hey, hey were all winners with the hilton price match guarantee, alright . Man, you guys are adorable alright, lets go lose this soccer game, come on book with the hilton app. If you find a lower rate, we match it and give you 25 off that stay. Expect better. Expect hilton. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein bars. Try lemon cake. We are here to cheer the most dynamic Economic System in history. Capitalism is under assault and taking lumps like we havent seen since maybe the Great Depression we have real problem was income inequality in this country welcome back, a little breaking news on the federal reserve. President trump apparently will nominate judy shelton to serve on the fed board of governors from the white house judy shelton a Christopher Wahler to the board of federal reserve. Im sure well have more on cnbc time to go around the horn on final trades one minute tim. We have to give it up por the patriots of course i mean the jackson prep patriots. And Constellation Brands continuing to show theyre involving with the beverage busy involving for them stz, jackson patriots. There you go. Bk. You know the best time to buy insurance when its cheap. And the vix at 12 cheapest in a long time. Spy protects the portfolio. Steve. Spirit airlines is save is the ticker sbom. Ive been long this this goes to 50 go long. I stay with the airlines as well is that okay i wonder how pedro did the power pitch. Maybe look at in the g block of the show he. The web extra. En. On the digital network. Budget blue into earnings broien sullivan is interesting. Tnkouha y very much i thats it for the show this evening. Big mad money with jim cramer and microsoft. My mission is simple, to make you money im here to level the Playing Field for all investors. Theres always a bull market somewhere and i promise to help you find it. Mad money starts now hey, im cramer. Welcome to mad money welcome to the west coast edition. My job not just to entertain but educate and teach. So, call me or tweet me jimcramer. This week its like the whole worlds been turned upside