Transcripts For CNBC Fast Money 20240712

With civil Rights Groups today to address the growing boycott the organizers of stop hate for profit calling the meeting a disappointment saying that Mark Zuckerberg and Cheryl Sandberg are not ready to address the hate on that platform and did not respond to demands of dozens of its largest advertisers the ncaa color of change, Antidefamation League and free press saying Mark Zuckerberg did not offer any tangible plans on how facebook will address the rampant discrimination and violent conspiracies on their platform the meeting that we just left was a disappointment facebook has had our demands in multiple ways and they showed up to the meeting expect an a for atte attending. Attending alone is not enough. Civil Rights Groups saying facebook did not address their list of demands, saying zuckerberg offered no automatic recourse for advertisers whose consent runs alongside hateful posts. They did not address why facebook recommends hateful groups and didnt address rampant disinformation and violent conspiracies we have reached out to facebook for comment. They say theyre working to get us a statement the company has said it does plan to release the results of its civil rights audit tomorrow morning. Melissa, thats something to watch. Julia, is there any sense from these groups that the boycott could be extended . It was for the month of july some advertisers have said through the end of the year. Are they going to formally call for an extended boycott in order to turn up the heat on facebook . I think its still too early to say on that they said they were disappointed in this meeting. Its interesting that some advertisers are saying that theyre suspending advertising indefinitely some are doing it through the end of the year. The original call was for a monthlong pause some people said july would not be as impact fulful. I think it will be interesting to see how facebook responds now especially after those choice words from the organizers, if that perhaps pushes facebook to take more action but i think it will hinge on the brands and how they feel they want to respond to facebooks moves now. Julia, thank you. Lets get to the trade on Facebook Karen finerman, you have been a shareholder in facebook. The boycotts have gotten a lot of followers in terms of advertisers joining in what are you doing with your position now this morning i sold some calls, but im definitely still long i think the stock opened strongly maybe a little bit on the tiktok story. I actually thought they would have a more productive meeting than that. Ive got to think that the most disappointed are maybe the advertisers who really want to use facebook and really need some cover from the company to address some of their constituents who dont want them to use facebook until facebook talks the talk and walks the walk im a little bit concerned i still dont think its crazy expensive, though. Its imperative for so many advertisers. I think they will try to find a way around it. I feel like youre visiting Cambridge Analytica 2. 0. It sounds terrible it is terrible for a while then it sort of fades. Maybe the crescendo is july 27th, well see zuckerberg on the hill again i dont know im a little concerned i took a little money off the table. It seems that as long as these groups walk away disappointed with facebooks lack of response that advertisers have no choice but to continue their boycott at this point for fear of looking hypocritical you cant donate money to these groups and say thats not my problem anymore. Lets put in ads in august right the operative word coming out of that meeting was disappointed. I cant believe if youre an advertiser you get a lot of confidence based on that one word alone its fascinating facebook, when this started it was rei, north face and patagonia, i think one other advertiser on a tuesday. The stock was trading around 240. We had a whole conversation about it saying those companies are the first and wont be the last by monday the 29th, the stock traded down to 207 and reversed. That day we said, say what you want about facebook, but the stock seems impervious here. Big reversal, probably trades higher and tests those levels of 240 again. Here we are. I would say you have to sell it into earnings on the 29th. Now theyre in a nowin situation in my opinion into that hearing and into earnings at the end of the month. Taking profits at these levels based on that one word disappointing to me makes a lot of sense. They would have a lot of wood to chop, so to speak, to come up with a solution, something that would satisfy these groups and allow advertisers to come back in i think you hit it on the head how can they satisfy thats the problem theyre trying to navigate right now they dont want to be the arbiter of truth how do they satisfy both sides the answer is they cant, so they pigeon hole themselves into doing nothing. But i think if the groups that want them to do something could come up with something very tangible and say, look, these are the posts that we want you to remove and its truly nonarguable for facebook to defend it, then i think you have to do something. But i dont think were there yet. To guys point, the stock is bulletproof. I think youve got to stay on board. Its like whackamole. A group can come up with five things they dont want to see in ads and there are going to be five other things that pop up too. This has to be a framework that facebook can implement and thats a tricky thing to figure out by the next earnings call. I play what cckamole very unsuccessfully in my yard in actual life. Karens pointed out facebook has been doing this for two years, maybe four years she also discussed the valuation. Not expensive. Look at 2021 consensus is anywhere from from 1050 a share. 250 a share, traded 247 intraday today. We always talked about for the last four or five sessions until today was the nasdaqs absurd run. Facebook was up 11. 2 during that time. Facebook, no history of changing their policies for business relationships. Facebook clearly really no history of being necessarily brand friendly facebook was very early in terms of their ability to deliver ad targeting and the ability to really best position and give analytics on the ad portfolio that we know is the biggest in social media right now its very difficult. If anything, my tone last week was id be wary. I still would be wary, but its very clear facebook has a Business Model, has four Different Properties that are undermonetized. I think theres still a lot of value there. Gene, great to have you with us the last time we spoke about facebook it was on the heels of a lot of big brands joining in on this ad boycott now theres groups walking away from this meeting with zuckerberg disappointed. Is this problem much worse, in your view . It is i think it underscores the context of these three waves coming at the country and maybe even taking a step back. Why the meeting was a disappointment today is a good place to start facebook was well aware of the topics going into the meeting. The reason it did not peruroduce any substance, if it did, it would lure them into being a publisher and that brings with it regulation. Theres a second way this company is going to be hit the first wave is the boycott. I mentioned the second wave around potential regulation. The third is potentially antitrust, how it bundles its products for example, instagram would not be instagram if it wasnt for facebook when i think about the context of the news today what to me is most significant is reading between the lines. Facebook understands the amount of pressure on this company is hard to put adjectives around it but yet they dont make any moves. The reason is they understand the chess match that is being played here and what the long game is. They ultimately need to successfully navigate that so i think when you put all this together, its currently a 650 billion market cap its near its alltime high. It is a business that has one platform thats over half of its revenue, facebook, that is arguably toxic the second, instagram, which you could build businesses on top of it theres some good that comes along with that. When you put all those together its hard for me to envision a scenario where the stock continues to outperform. Gene, let me give you the fourth wave, potentially the fourth wave. Obviously esg investing really crippled a lot of these Energy Companies clearly at the wrong time in their history. Is there a chance that facebook with 220 etfs, 170 of which have facebook as one of their top 15 holdings if esg comes into the equation, how potentially damaging could that be to the stock it would be as damaging as being removed from the s p 500 so i think that it is material i think that risk is in fact a fourth wave and one that has rarely been enumerated in all these conversations, but is something that will become a bigger topic i can share this much, that internally as we think about our research and we think about the future and think about where facebook and social plays into it, that topic in terms of socially proper investing in particularly facebook and twitter has been an internal topic for us im sure that it is quietly going to emerge at that fourth wave gene, its karen. Let me ask you something given your hesitation and concerns about facebook, where do you think the stock should be trading . Im somewhat reluctant to put an actual target on it part of the reason is that its up to investors. Its not a convenient answer im an industry analyst, industry observer, longtime tech person, but i think that its hard for me to envision that with all these headwinds that the multiple continues to be where its at so, karen, unfortunately the best answer i can give you is at where it is today or lower in the future. Gene, great to speak with you. Thank you. Thank you i think thats a Fair Assessment from gene who is an observer from the industry and a longtime analyst in the space we are in an environment where big cap tech is in favor we just had an analyst note on tesla from barclays that said that the stock is fundamentally overvalued but he cant think of any reason why the shares wouldnt move higher from here were in that kind of market when it comes to some of these tech stocks. Im wondering if you think that facebook gets the benefit of that in terms of protecting the multiple it has right now. Yeah. Well, its clearly gotten the benefit of that until it doesnt. Thats not meant to be glib. This has nothing to do with apple the company. You go back three or four months ago when apple was trading at an alltime high of 323 it was announced on our show apple came out and said theyre having problems in china, which should have been a huge announcement that should have knocked the stock down 810 over the few days after. That monday the stock opened down i think 3. 54 . By tuesday of that week it was making a new alltime high my comment there was this passive investing looks past all those headlines. Thats any comment now this esg thing is going to catch on im glad gene spoke about it facebook really has to be concerned. To go back to my earlier point we had a huge bounce off of 207 right back to 240. I think you have to be taking money off the table. If you look at esg, it would get two dings. Its got a deal clash share structure and now on the social front it may not be perceived positively ever. The share structure is definitely not changing any time soon you hit upon it earlier. They have to come up with a construct that takes them out of the loop in some ways that can allow the parties, the boycotters to say, all right, theyre addressing it in a way that is acceptable to us now, thats a very difficult needle to thread but i think thats the way out for them. They knew what was going to happen in this meeting im surprised they didnt have something already they would have believed would have appeased the group that was disappointing. Right stocks tumbling today with all the major averages closing near their lows of the session, s p and nasdaq snapping a fiveday winning streak. First of all, banks have their hands tied with buybacks and dividends. Think about what this week is. Its a vacation week we had russell, we had rebalancing, we had options x. So when you look at the market as a whole, the market needs a little bit of a breather im looking at a chart of the s p. The 200day moving average is 3025 that would be a nice check back. If we check back to the 200day moving average, i think that would give the bears a little bit of solace. But i dont think were out of momentum just yet. I think you have to stay the path of the bull. This is a very small pullback of whats felt like a euphoric run. The nasdaq is still outperforming the s p. Put those numbers closer or above 22 outperformance year to date none of this is a major surprise we should have taken a breath. We have earnings next week First Quarter earnings, lets count how Many Companies pulled their guidance, lets count how Many Companies start to look to 2022 for normalized earnings its really the score sheet were going to put on companies now. I think investors are ready to be a little more aggressive and a little less forgiving. But we need to get through earnings again the top down has been dominated by fed and covid fax meets fatality, hospitalizations and where theres some improvement thats the story if you look at todays price action, it was very consistent with where weve been. Youve had technology and those names that are at least somehow linked to enterprise stay at home that are outperforming industrial bank, anything that resembles value has been underperforming. Youve seen wicked rotations during this postcovid or this current covid dynamic and i think we will again. But i think investors at this point, you know, lets look to next week. Were going to begin hearing from banks were going to begin hearing about loan provisions. Thats really important relative to the overall tone of how healthy the markets are. Our next guest is telling investors to price for a potentially cruel summer steve, great to have you with us thank you. What sort of pullback are you anticipating well, what im looking for is as you guys started to address, i think were looking at a lot of hurdles in july the problem that you have is Certain Industries are so far ahead of their trend lines even that theres a lot to overcome youre going to have pressure on cash flows next week as people pay their taxes. People had a very good 2019. They have to pay taxes on that now. That coincides with earnings week and expiration week theres a lot for the market to digest i think what were looking at here, when you look at indices like the nasdaq which are about 20 above their longer term moving averages, theres a lot of room for disappointment disappointment that youre forecasting is pretty steep. Youre saying 1520 decline on the nasdaq, a 15 pullback in the s p 500. This is all in your view within the summer well, its all possible this summer im talking about this as a risk of a pullback, not necessarily something thats going to happen imminently right now the momentum is so strong, its very hard to bet against that what i would be looking for is the potential that something could trigger this youve got taxes you have covid risk coming on. You have a fiscal cliff at the end of the month you have a fed that despite all the rhetoric about how accommodative they are, the fed Balance Sheet actually shrunk over the last three weeks. The fed have taken their foot off the accelerator. They havent put it on the brakes but this is all the stuff the market has to overcome we actually find out for the first time in a long time how these companies are doing. The reversal in the nasdaq today, i understand its one day. Weve seen these before. They turn out to be pretty much nothing. Anything in the reversal in the nasdaq today sort of stand out to you amazon was pretty interesting for me theres a lot in there, guy i mean, i think the fact that facebook outperformed through all this while tesla just remains immune from everything, thats got some risk in and of itself the problem that you have is a bigger sense of how relentless the flows are. Momentum, when it turns, its your friend on the way up but its nasty on the way down i dont necessarily know what that trigger is. Ive laid out the potential triggers any one could be the trigger what stands out to me was that nasdaq yououtperformed on the w down i think until and unless you start to see that pattern break, you could argue that the momentum play is still in effect. Thank you for joining us, steve. Thank you Steve Sosnick of interactive brokers. I would imagine were going to get no guidance again. Were not going to get guidance again the companies that can actually give you some visibility, they dont have to give you the numbers but they have to tell you whats going on with reopening. I think the markets are going to respond to that. Think about some of the macro factors. Weve had better industrial numbers, slightly Better Services numbers, the dollar is weaker and volatility is down. So weve got it backed up here where the fed, is anything, was out there reiterating support today in my view until that changes, its very difficult to see equities having a major correction but were at one of these periods that we were at two weeks ago and weve had multiple, these one or twoday selloffs in the midst of what is a liquidity flood or have been opportunities to reload. If anything, sentiment right now especially in the Retail Community is more geared toward the bearish side 3200 on the s p, lots of resistance, lots of new ground to break, we dont have to do it next week and earnings are going to be a more difficult road. Turbulence in the friendly skies of united. Warning tens of thousands of workers that layoffs are coming. Walmart is rolling back prices and possibly launching a prime competitor later, youve got questions, weve got answers. Tweet us your burning stock questions at cnbc fast money now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. The xfinity voiceremote will find exactly that. Happy stuff. If the groups happy, im happy. You can even say a famous movie quote and it will know the right movie. Circle of trust, greg. Relax the needles are jumping. You can learn something new any time. Education. And if youre not sure what youre looking for, say. Surprise me. Just ask what can i say . To find more of what you love with the xfinity voice remote. Shares of united getting slammed today after the airline warned of layoffs ahead. Phil lebeau has the details. We knew that layoffs were coming, didnt we . We knew but this is a stark reminder of how bad things are in the Airline Industry United Holding an employee town hall today and being blunt in saying that tens of thousands of employees will likely be laid off. Warn notices will be coming soon when they do, the company will be dramatically becoming a smaller company. Remember, those notices notify employees you could be part of a possible layoff 60 days down the road we all know october 1st is the date united and all the airlines can lay off employees in large numbers. Tens of thousands are likely to be laid off at united. Depends on how many people take any employee boyouy oubuyout prm how is the company under pressure a couple of things stand out newark nearterm bookings down 84 . Thats lower than it was just a few weeks ago. August capacity down 65 remember on july 1st, a week ago, they said that august would be down just 60 so it appears theyre already dialing back their plans for august heres the reason why. Covid19 quarantines are hurting demand, the tristate area, chicago, massachusetts, basically saying to people, you go to florida, you go to texas, you come back and you have to quarantine for 14 days people are saying, im not going to take that trip. As a result the airlines are looking at a rougher than expected july and august theyre going to have to cut thousands of employees come october. They have raised 46 billion in capital. They are at least from a liquidity standpoint in decent shape right now. The question is for how long into the Fourth Quarter and then the First Quarter. That ties into why were showing you these Airline Stocks all five of these airlines today the Treasury Department said they agreed to tentatively take out a loan from the Treasury Department these loa they have until september to decide if theyre going to take those loans based on the terms the Treasury Department sets out in the next few days. August capacity down 65 versus last year yeah. And the note worthy part of this is that their press release last week on july 1st was the august schedule was going to be down 60 . What youre looking at here is them saying were not even seeing enough to say were going to follow through with what we planned a week ago we have reached out to the company for clarification on this. Phil, thank you karen, you actually were noti noticing this . Yeah. Phil saying the covid resurgence, things closing back down again, clearly thats bad for them i always like to look at the bonds and see how theyre doing to give us a sense theres some twoyear paper trading at 87. The yield limit is over 10 . Thats not a great thing its great theyve been able to raise more money, which they have, both debt and also a billion plus Equity Offering i think in april thats helpful in terms of being able to fund the burn, but in terms of valuation, i know the stocks rallied a lot from the bottom, but the whole enterprise is still expensive and very sad for the industry its too tough right now, its too hard youve got to be really optimistic on them turning things around really quickly and i wouldnt make that bet right here. I think funding the burn is the exact right term united itself has said by the end of the Third Quarter they were hoping that cash burn would go down to 30 million a day, guy. I dont know if theyre on track for 30 million by the end of the Third Quarter. We dont know yet until we hear from them. Theyre getting money in order to literally burn it on very heavy expenses. Yeah. You know, as you know, hope is not an investment piece. To phils earlier point, my sense is, and i obviously dont know anything, but i think the terms from the Treasury Department wont be draconian but theyll be as close as you can get is my sense. I dont think they want to go down that road when delta announced they were reducing pilots from 14,000 to 7,000, the timing for that announcement in terms of the stock couldnt have been much better the market was sort of cratering. That stock was trading in the high teens, 17. 5, actually closed higher on the day and we flagged it for a trade on the long side. Much different now with the s p having this huge rally you saw united go from 1849 here we are 32 id wait until they report on july 21st, hope its a disaster, hope the stock trades into the high 20s and then you try and buy it there for a trade grasso, a lot of people at home have gotten involved in trading more recently. Theyve been trading these believer travel stocks like cruise lines and airlines for bounces. Can you make the case here for a bounce i think you can make the case i think that all bad news is already in a lot of these names. Yes, it can get worse, but i think the market has already quantified that. I think the airlines are still investable, believe it or not, and so are the cruise lines. Shares of walmart surging today on reports the retailer is ready to launch an amazon competitor later this month. Plus, should you redecorate your port fofolio and make roomo bed bath beyon at leaf blowers. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. By my health insurance. And this is the aflac duck who helped me cover it. Aflac. These are all the cab rides to my physical therapy. And aflac paid me directly to help. Aflac. What he said. And this unexpected bill is from. The twothousanddollar specialist. Thanks. Aflac. When youre sick or injured, aflac is there. We can help with Expenses Health insurance doesnt cover. Get to know us at aflac. Com welcome back to fast money. Shares of walmart surging today on reports the retailer is about to launch its amazon competitor walmart plus it will offer sameday delivery of groceries and other products and is set to go live later this month. Karen, this would be huge. Would this be competition for amazon or maybe some other big box retailers . I think this is competition for amazon i think walmart has sort of a lead in the grocery business good for them for trying to capitalize on what theyve been able to do during the coronavirus shutdown i think, you know, theyve done a really good jobgetting that Online Business going and i think to really be aggressive here makes sense as a target shareholder, it actually has me thinking about, you know, maybe i would rather be in walmart now instead of target its a little bit more expensive, but i want to give them the benefit of the doubt for what theyve been able to do i wonder finally if that walmart amazon multiple d divergence might start to narrow i think this is another sameday competitor beside amazon, so might target need to do the same thing and might that be expensive for them i think at the premium walmart is to target, its worth it to trade into walmart here. How do you view this kind of service when it comes to walmart . Take a look at amazons business, for instance this is a low margin business. There are lots of costs involved for the infrastructure to do all these deliveries, especially twohour deliveries. Would this be a positive for walmart . Yes, i do think its a positive i think its a defensive and an offensive move amazon rolled out free twohour delivery late last year to their prime members. With this offering, walmart can better compete with amazon because they can also offer that free delivery. I think on the offensive front, i think other players such as target, i think walmart can take share for them on the grocery side, if you look at kroger, they dont offer free delivery currently this is also going to garner more share in the grocery category. Another offering that would be part of the subscription would be Video Entertainment it sounds like they could be going down this hole of potential spending and i wonder if this satisfies no category of shareholder, maybe you lose the value shareholder who might be in walmart for the steady earnings and dependable performance and you dont satisfy the Growth Investors who are looking for Something Like an amazon. That part of the offering is still very unclear i think walmart is more likely to partner with someone on the video side rather than invest billions of dollars in their own video service. Its still unclear how theyre going to go about doing it i think thats going to be down the road at first theyll launch the offering and discounts and over time add perks to make it more attractive what multiple we talk about walmart. Com. If i think about the ability they have to move more of their business to ecommerce, weve seen in covid they had a richer online mix its the dot com multiple. What do i do with it we think if this is a hit and you start to get more subscription type revenue, you start to gain more of these stickier customers and the market would believe theyre more likely to gain a greater share of their customers wallet i think you could see further expansion. If you look at the stock, it was trading at the same level of trading in late march. Since then the market has chased some of the higher beta names and walmart has been left behind even at these rallies. Youre really not paying for this incremental offering. Great to speak with you thank you. Karen started this whole thing with the would you rather walmart or target. Ill continue with that theme and go to grasso what do you say, target or walmart . You know, its funny. Thats the first thing that popped in my mind was she selfwould you rathered and you didnt reprimand her every time this thing that is spiked higher, it comes back in. I dont think today is any different. Its impossible to compete with amazon i commend them for trying but amazon is going to move to twohour delivery for groceries. Its impossible. Longer term would you rather, id go with amazon im going to throw another one in here so you can hit guy with this costco, thats my other one. I want to run the show . Ill leave im walk out of here, walk off the set and you can run the show guy, what do you say answer grassos question. Youve got another hour, so you cant go anywhere, number one. Number two, in the game of walmart costco, ill go costco my problem with walmart here is do you really want to start tweaking the bear that is amazon and do you really want to get in a price war in a business that the margins arent particularly great at i was surprised at how much it rallied today, especially given the tape look, the stock popped out at 133 in april, was 118 yesterday. My inclination is youve got to gift here to take profits if youre long on the name. Tim answer any question you want pose a question to yourself and answer it. Im going to follow the rules as if you asked me just to chime in on the walmart discussion talk about the walmart fly wheel now. Weve talked about this with amazon i actually think walmart totally competes on price. Thats what they do. They put people out of business on price they also have the warehouses and the logistics and the infrastructure around the country. If anything ive been bearish on walmart, taking and pulling forward a lot of sales because of covid19. I think this is very Important News i think the online shift in this country is going to be in the mid 30s by 2025. Walmart will take more of that than target. This offering gives them the ability to get ahead of all those other bricks and mortars. Bed bath beyond due for a huge move. Mike mike Bed Bath Beyond calls outpacing puts by 21. The stock has moved an average of 10 thats big but not as big as the 16 move the options margin is expecting. Youd think maybe there were some bullish bets but it looks like several thousand of those were sold. That wasnt a bullish bet so much as fading an upside move. It does look like the Options Markets are basically fading the possibility of continued strength, although ill play a little bit of the host here too and you can ask some of the technicians here whether they think the stock has regained 50 of its decline december through april on its most recent rally as the other people id fade the stock here. Do people see me and hear me . What a waste of time who wants to chime in . Guy . Ill chime in first of all, ive been playing by the rules this entire evening, number one. Dont discount this. I have no idea what Bed Bath Beyond is going to say but the fact that a lot of kids in this country in universities have just found out theyre not going back to school, i know bed bath does a huge business on the back of kids returning to school. Doesnt look like its going to happen forward looking which is a devastating announcement for Bed Bath Beyond. To makes point 50 retracement, take money off the table. There is going to be a glut in america of extra long twin sheets, thats for sure. Coming up, twhat is cooler than being cool . Ice cold storage thats a red hot trade right now. What do you look for when you trade . I want free access to research. Yep, td ameritrades got that. Free access to every platform. Mhm, yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. Now offering zero commissions on online trades. We charge you less so you have more to invest. Welcome back to fast money. T nvidia hitting record high today. That price target about 15 above where it closed today. Grasso, youve been in this. Where are you now . Im not in it now but it deserves the premium it will continue to get the premium. Its up 69 year to date came out with another gpu chip that all the majors, microsoft, amazon, alibaba, theyre all using it for them, you have gaming as you mentioned, but you also have ai, you also have drifrle lesdriver and the connected home youll continue to get that multiple and premium advantage with nvidia. I started looking at it again today. Tim this is my theme for the show, but what is that multiple . 65 times forward, its really tough. It puts a huge burden on gamingware i agree with the fundamental prospects steve laid out i think it puts a major burden when you look at the cycle for gaming, it certainly puts them in a pretty good zone. The fiveyear outlook is as good as its looked for the entire sector for a long time i dont want to chase nvidia here this valuation is tough to support. Coming up, cold investments, hot profits. The under the radar trade as more americans eat at home. At the top of the hour, tweet us at cnbc fast moy. Ch more fast money straight ahead. , youve got a lot of fight in you. And youre in a special position to help us fight back. The plasma in your blood can literally save lives. But we need to act fast. Please donate plasma now. Please donate. Donate. Donate. Donate now. You fought for your life. Now lets take the fight to covid19. Go to the fight is in us dot org to find out how to donate. I know that every time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income from an annuity as part of your retirement plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. Demand is red hot for sold storage as Food Delivery Services continue to surge to keep up with the new explosive demand from Online Grocery buying and direct to consumer pharmaceutical, the u. S. Needs up to 100 million more square feet of cold storage warehouse space. Thats roughly 6100 new warehouses like this one being developed outside philadelphia new cold storage needs to be much closer in to cities because we all need everything right now. While demand from restaurants has fallen off sharply, demand from supermarkets from online orders is way up the average age of a cold storage warehouse is 34 years old so the whole sector needs an upgrade with more automation. Given whats happened with covid, weve undergone 510 years of change in a matter of 34 months it is for sure accelerating or has accelerated the pace of change for cold storage. Now, there is just one dedicated cold storage thats americold other big Storage Companies do have the ability for tenants to do a box within a box. Thats cold storage in a regular warehouse. Demand going off the charts now. Yarwe are just talking about walmart offering more Delivery Services karen, can you see investing in this space yeah, i can i was trying to think about what else is there, who makes those reridge freig refrigerators for those industrial spaces . Is it nightswift, a Trucking Company that does refrigerated trucking thats interesting to me, though its had a bit of a run. I think this change is here to stay for a while. Guy, thats a super classic Second Derivative trade coming from karen. Who of course it is, because thats what youve come to expect from Karen Finerman over the last decade plus you say is grub hub in play here and they probably still are. Stocks had a huge move to the upside its sort of knocking itself up against past resistance but i think thats the name you can play on a flyer on the back of this entire third derivative, absolutely a lot goes through your mind. How long will this last . Am i prepared for this . Are we prepared for this . 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He wrote if youre not giving your startup a name starting with s and ending in ify, why are you denying yourself mike is always sage and witty at the same time. Good point, though these are some pretty staggering runs. No doubt. If tim were to be a stock, he would be studify maybe he could take that public. Yeah baby is there a buyer for studify . Im not sure. Probably not its probably best we move on from this one. Theres a would you rather, i think, embedded in this. Spotify or shopify ive been in spotify. I bought it in low 180s and sold it at 233, in the middle 230s. I think that the beauty of this story was podcasts everyone thought amazon could squash this company like a bug and theyve proven not for that to be the case i would probably take some profits here i think its overextended. Guy, i cant believe you had tim speechless even for 5 seconds. Thats never happened in the history of fast money. Kudos to guy. Time for the final trade i had a chance to think about that one walmart, the fly wheel there, the multiple grows i like walmart. I think its take to take a little money from facebook i sold some at the calls. Guy adami pan american silver, silver in the name, gold in its revenue stream you out there, do not move we have another hour of fast money coming your way it is total request fast money. Were taking your questions and getting you some answers, so stick around for that. [narrator] at Southern New Hampshire university, were committed to making college more affordable. Thats why were keeping our tuition the same through the year 2021. [student] i knew snhu was the place for me when i saw how affordable it was. [narrator] find your degree at snhu. Edu. Fast money. Jim cramer is off. But were calling this hour total request fast money. The answers to your questions, yes, were taking questions so send them on in. Here to tackle this, guy, tim and karen. Well dive into the surge in tesla. The company added 50 billion in market cap thats two ford motors since the start of this month. Is there any limit where this stock can go first, quick check of the markets how we ended the day on wall street. Stocks tumbling with the dow dropping 400 and s p snapping a fiveday win streak. Boeing was the biggest drag on the dow. What were the day traders buying and selling in todays market . Lets get to leslie with the leader board, leslie hey, melissa. No surprise, tesla topping the charts with a net increase of 18,700 accounts Holding Tesla stock on the robin hood platform today. Another electric vehicle manufacturer nio popped up in the top five third and fourth were sun run and vivent they compete with tesla. Nov ar nova vac announced today it was awarded a 1. 6 billion deal with the u. S. Government to fast track its Covid Vaccine candidate. Over the last week, electric vehicles really in focus here with tesla, nio, plug power and solo seeing a combined net increase of nearly 200,000 accounts purchasing shares through robin hood melissa. Thank you, leslie with the leader board tim seymore, what do these names tell you about the overall markets . They print froth. The Retail Investment traders dont want to hear some of these moves. People are making a lot of money in some names. The look at solar for example, this has been some run by sun run and if you look at some of the trends that are born out of covid and some of the trends born out of just better global awareness, this is a trend that at times looks very, very interesting and at times, the cost around solar and the ability to actually have feasible infrastructure weve seen this trade before the trade on tesla, the new deliveries expected but still down relative to the plus 500,000 or more that at least have been advertised this is a story about liquidity and a story about china getting back to production fast or free month getting back to production faster you know, the Common Thread with these and as you get into vaccines and novavax, these are impossible to quantify these are momentum names these are names that push out of the risk curve and actually looking at liquidity across market difficult for me to find fundamental march red erit solar is one that makes a lot of sense. Lets get straight to the stock lighting up your screen. Tesla, an exclusive run there. The maker up more than 40 in the past five sessions it is now bigger than 97 of the s p 500. In fact, Anything Electric has been on fire leslie mentioned some of the names as topping the leader board, nio, plug, nikola lets bring in gene munster. Good to have yo with u with us. Froth, momentum, could there been a fundamental story if you look at the space there is a scarcity of names and value, isnt there, in tesla and while its competitors are pairing back on rnd when it comes to evs, isnt that to teslas benefit . There is a scarcity value and particularly the other Automotive Companies have evs, they are not making an impact. Its a clear decision. Tesla has 80 market share and fast forward to five or ten years from now and there will be many more electric cars, about 3 of total cars so globally they are electric but undoubtedly that number will go to 100 at some point in the future its simply a better way to move around and tesla has an advantage. I think when you look at teslas current 260 billion market cap, look at it relative to the rest of the auto industry, its hard to fathom why it can go higher but i think the perspective about this as a growth company, take away the previous view of this and look at this as a perspective of what the potential growth rate is, scarcity value, this company can grow at 30 or 40 for the next five plus years. If it grows at 40 for the next five years, thats 200 billion in revenue and that would imply at a 20 operating margin, which with their software, they presumably could get there much more than any other company so there is not an analog there thats 40 billion in operating income and you can start to scale together a multiple on that that you could build a case that this name can go much higher i do caution it is going to be a roller coaster there is a lot of traders in and out of the name but i think that long term the scarcity value and more importantly, advantage they have on the other Automotive Companies is under apprecia appd in teslas value today. Gene, its guy. Thanks for being here today. Adam jonas, margin stanley is a wonderful analyst. Im sure you know him. Do analysts get squeezed from time to time obviously, traders do and youve seen that in the move to the upside in tesla. Adam raised the price target to 740, 270 is this a phenomenon that takes place and if so, are we seeing it manifest itself in tesla now . There can be some of that being an analyst is a difficult job. I can speak from personal experience there maybe just about some of the comments today related to that that tesla will burn 1 billion in cash in the june quarter. I am would just point out that there are theres about 8200 cars that were made in the march quarter that will be delivered in the june quarter. Thats positive for Free Cash Flow and they had a lot of materials that were purchased in the march quarter that ultimately werent used until the june quarter so they didnt have to buy as much materials in the june quarter my sense is that they will be Free Cash Flow positive in the june quarter i realize that is out sized. What i think it speaks to is the tesla story is complicated because of all the legacy muscle memory around this being an auto company and also the mechanics of things we just talked about about trying to understand and trying to grapple with Free Cash Flow and so yes, it can be difficult but i think in this case, the analysts that are kind of holding on to price targets that are much lower, they may get a break and the stock may fall for some time back to that but i think that the long term undeniable truth here is that cars are going to be electric in the future and it is difficult for other Automotive Companies to catch up. Gene, its karen. Thanks for being here for this second hour of fast money. Question, how do you think about the autonomous driving, the taxi business for tesla we dont put much into it today. Ultimately, we believe that evs, Autonomous Vehicles are going to be an important part of the future and tesla will have a role in that when we think about teslas plan initially, tesla owners probably arent going to want to open their cars up to some sort of a Ride Sharing Network this isnt typical of a tesla owner but what we do think will happen is that we can see the company help finance third parties that basically think of mom and pop businesses that own ten, 15 teslas that insert them into Teslas Network so theyre effectively participating in building that. When you put it together, karen, i think tesla will have a play in robo taxis. I dont think about that in the growth rate of 30 to 40 in the next five years but that part of the story is real despite the debate around it. Gene, good to see you. Thank you. For the second time gene munster guy, i thought your point was interesting. We had j. P. Morgan raise the price target yesterday to 295 right . We had yeah. We had the bull case for Morgan Stanley today from adam jonas with the stock in the 2000s. I mean, the analysts are all over the place and that seems like that could be opportunity for traders. It could be opportunity. Ly pr a lot of people. Ill say this and ive said this new for awhile i go back to the interview with president trump. That was a turning point for the stock without question the stock was trading 300 then and may, the stock was trading 700 after a huge move to the upside when elon musk tweeted out the stock was too expensive. That off lasted about a day and see where the stock is today i i to bad news, you stay. Tim for tesla, the scarcity value if you want to participate in the ev revelation, there arent too many places to go we showed you a screen of companies benefitting from this sort of trend, the nios, the in this case tesla is the best capital of the bunch. The scarcity value makes a lot of sense it was refreshing to hear gene talk about the upside based upon it being a car company because thats rare. Its usually an opportunity for people to talk about data and technology but yes, the scarcity value is there i do believe competitors can close the gap. Maybe tesla has a huge start they wont be near the market share today but you have to get back to the issues and the ability to make the cars profitable which is still in question i think a lot of this move is mania and not based in fundamentals the Short Interest is 25 in may of 2019 roughly to about, you know, 7. 5. So no question painful, painful, painful run. A lot of short squeezes out there and news if they can get to u. S. Gap profitability for the quarter, that gets them into more liquidity just very difficult ration rationalizati rationalization. Great technology with a lot of issues on operations so its been an extraordinary run and i al knowledge that. I have an idea, karen, that you cannot get behind the valuation. If you believe in future growth can you make more of a case being in names like esla you certainly can if you compa compare. I dont want to get in trouble i have to because im looking at Something Like nikola. I cant get behind that in any met trick of negative Interest Rates or i cant come up with it doesnt compute you can get there on tesla they have a real product and make it. Whatever 97,000 cars. Whatever it is right . There is Something Real there. Nikola is a different story than having Something Real there but if you have to be in the space, look, remember, we used to talk not that long ago about severe financing problems for tesla and that is gone right now that risk is absolutely gone so if i had to choose one, tesla. Total request fast money is just getting started. Surrounding one of the hottest stocks, more on novavax 3 1 rally and the only way to play space race but is rgviin galactic the run well bring you the trade and come back. You say that customers make their own rules. Lets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad . Your wireless your rules. Only with Xfinity Mobile. Now thats simple easy awesome. Switch and save up to 400 a year on your wireless bill. Plus get 200 off a new Samsung Galaxy s20 ultra. Welcome back to total request fast money. First question is on a biotech stock. I am mike im a 24yearold investor from new york i invested when the market bottomed in late march my question today is about novavax. Today they are up 38 and i wonder if you think this growth will continue long term . Thank you very much. That big stock is big news today on novavax. Well, the operation warp speed, the tlurump administrations program to accelerate vaccines for covid19, they awarded them 1. 6 billion to fund the late stage clinical trials. If all goes well, they plan to start a phase three involving 30,000 participants that will also fund and establish the manufacturing with the goal of starting to supply 100 million doses starting in late 2020. This is the largest award from operation warp speed yet previously they awarded 1. 2 billion to oxford in may and half a billion dollars to Johnson Johnson and maderna. We talked to the ceo this morning and melissa, you asked about the stock and what this award and this Program Means for them and what it means for the stock. Here is what he told us. We have a platform for which we make multiple vaccines in the the coronavirus. The coronavirus moves up time to have revenue and quite a bit, actually but i like to remind everybody that we mad a major phase three pivotal trial in flu and there is an established flu Vaccine Market but the flu vaccines dont work as well as wed like them to be and our goal is to have a differentiated better flu vaccine. So just a little context. This is a fouryear chart through 2016 check out where the stock was four years ago way higher at the end of 2016 it took that huge plunge and thats when it had this massive failure on a vaccine program. This morning, the stock did show that promising in the flu earlier this year. They are trying to emphasize for a Platform Technology with a global vaccine what is happening with covid is its accelerating from toward the market, mel. Basically, meg, platform meaning if these vaccines use the same mess nichanism, if you expedite getting it, that speeds up the commercialization and approval of the flu vaccine, which they had been working on yes, or at least it proves the technology sooner. So whether or not it actually speeds up getting that vaccine to market, the bullish theory on it proves that the platform works. They do not have the product yet, correct nothing on the market . No, that big rsv failure now they have the flu data, as well. Covid leaped from everything because the pandemic is changing timelines so much. Meg, thank you. Meg terrell on novavax lets get back to new york guy, you know when were preparing on squawk box for that interview, the ceo, i noticed in mid march it was an 8 stock and 79 and well north of 79 with todays pop. Its had a spectacular move. Remarkable move and now a 6 billion market cap it answers my question, there is a saying in sports gambling, i know dave is probably watching. They dont pay at halftime and what that means and this example is a long way to go from phase three trial in the fall to getting a vaccine across the finish line. So if youve in any way enjoyed this move in novavax to 104 today, keep in mind today a trade of 28 million shares, i think it typically trades about 9 million shares a huge value day id be running to take money off the table understanding this could go higher. This is a gift. To continue this metaphor, investors arent just paying these stocks they are paying every quarter and if you can use another they are paying every inning because every single positive headline it seems pushes all of these stocks higher, tim. Yes but we cant mix our metaphors. I know, thats why i wanted to separate it baseball and football. I understand that, mr. Because youre a bigger sports fan than guy is and actually, i did get paid out at halftime on my super bowl pool so i would disagree with your ability but i understand what guy is saying and the move from 4 to 104, some of this is a function of rest of their platform and the pulling forward and the lack of the burn and, you know, this funding is notable. But this is not a sector where, you know, i chase ideas and i think this is a sector where a lot of other investors do. I think the momentum in the stock at this point, you can start, you know, throwing darts in terms of the size of the Addressable Market and talking about 100 million doses. You can speculate about what the amount they will be able to charge is and that also is a very unknown number in something that we speculated with other Drug Companies and why the vaccine is very difficult dynamic to even price. So i think like the others, i would in the bottom of the third inning take my money out at halftime. Karen, i dont know where you want to go with these metaphors but all yours. All right i agree with both of them because i think if youre lucky enough to own it great, take money off the table for sure weve talked about, you know, this is a very, very competitive race to come up with a vaccine and i dont i dont begrudge the government spreading a lot of money around if it can help speed this up but i cant help but think okay, its very, very competitive. Everyone wants to make this literally the most desired product on the earth then you have to wonder what can they charge for it . How can they actually scale a production how many competitors will there be and how much money will you make and whats the chance they are successful at doing that put all of that, you know, all of those, if this, if that and probabilities and i got to think that with this move today, its probably a bit ahead of itself so i would absolutely take money off the table. I wouldnt want to bet on novavax on any particular one. If youwant to be in the space, you can do the biotech etf. Coming up, were taking more trading questions after struggling start to the yearment is it time to go short on cocacola . The traders will weigh in on that and where the charts say the red hot stock is going from here rba itwo. Were going through a really tough time right now, all around the world. And covid19 is still impacting so many people. If youve survived it, then youre the heroes we need. The plasma thats in your blood can literally save lives. But we have to act fast. So please donate. You fought for your life. Now, lets Work Together to take down covid19 to donate plasma go to thefightisinus. Org in a highlyconnected lexus vehicle at the golden opportunity sales event. Lease the 2020 es 350 for 359 a month for 36 months. Experience amazing at your lexus dealer. Welcome back retails investors shopping list. Lets break down popular trades today off the charts we go with todd gordon. What are you looking at . If you want to be day trading in this environment which we penal typically dont do, one is square no surprise there. The Payment Processing company dont get mistaken with the Website Builder square space this is square Payment Processing company focuses on Small Businesses, small merchants. They have been overlooked by sort of the bigger players it an attractive bundled Hardware Software package. If you look at the chart, the stock has been a big mover in 2016 and 18 but since then its been since october of 18. It was really smack down in the initial covid reaction a lot of fear for Small Businesses but they rebounded quite well 2 x year to date and 3 x from the march lows a lot of good volatility and enthusiastic towards a Cashless Society as everyone likes to stick credit cards in and touch nothing else so another one is square is trying to compete with venmo and zelle and person to person Payment System look there its wildly expensive like 11 times sales, 55 billion market cap. If it wants to get up through 85, fine up to 110 ultimately, we can certainly talk there the next one well look at a uber we like uber were not generally optimistic longer term trading here but not so much as an investment idea. We think the fallout of covid19 will with us longer than wed like and ride share is down 80 since april. So people are not willing to jump in other peoples cars so their ride handling business is off and uber eats food Delivery Business is a big, big loser to the chart, the stock is gyrating the average range is falling away if youre wanting movement, youre seeing that become less and less as an active trader as i used to be i dont day trade anymore. You want to see range. Now, its starting to come away. Be careful with uber you know, not so muchhappening there and certainly losing money in their uber eats falling into third place with the deliveries. So the last, no surprise here. Lets look at amazon finally got above 3,000 for the first time yesterday the monthly chart i dont see channel resistance that middle line if the chart is up until about 3700 right now at the current angle. I dont want to tell you where the upper resistance lies. Its significantly higher. You know, to the weekly chart, weve been range bound since mid 2018 2 200 is the level i was able to speak with you guys multiple times about. We have broken out as resistance offering support that if you take a look at the ratio, amazon and xl, youre seeing that one is straight up which indicates a lot of Consumer Discretionary which is xly driven by amazon and home depot thats really where the action is there but we hold amazon in our portfolios and we continue to be constructive there. All right todd, thank you. Good to see you. Todd gordon. Lets trade some names karen, square really jumped out. Were talking about more than a 20 gain in the last week or so. Right, that seems kind of excessive to me. I mean, todd did point out that a lot of their Small Businesses thats who they originally started this for, thats obviously a difficult place to be right now when we talked about square cash, which is the venmolike thats good. I think there is going to be i mean, the valuation seems excessive. They built a great business. A lot of very good growth is already in here and i dont think it accounts for any pressure on margins that i think well see in the payment space. Where do you want to go, tim . You know, ive been taking profits in square over the last couple months and i wish i had taken them today with the stock, you know, nibbling around 127. Its been kind of a stratosphere for square which is up over 65 in the last month or last 30 sessions the cash app certainly out of covid has proven to be a major, major driver and gross margins, they are high and driving 40 plus growth over the last four or five years of which theyre 25 now. It a very interesting dynamic but the cross selling on the platform and the stickiness of the platform is part of this dynamic thats working for square especially with the cash app and why i think its driving businesses into possibly even more profitable parts of the platform trouble with the valuation and if anything, still have a position but have taken a lot of profits in the last month. Which, guy, of todds three carts caught your eye . Uber. I thought she asked me where i wanted to go i would say chipotle to get a burr rourreurr burrito, no bean chicken. Its note worthy in the would you rather game im about to play by myself like karen did in the 5 00 show, thank you. I will take lyft and sell uber although uber stuck out to me, i think the weakness of lyft gives you an opportunity visavis uber. Coming up, more questions to answer for one, is it time to get out of peloton or double down later, it has been one of the rgttest stocks but are shares of viin galactic rocketing higher than here . Well be back after this experience the adventure of a bigger world in a highly capable lexus suv at the golden opportunity sales event. Lease the 2020 nx 300 for 339 a month for 36 months. Experience amazing at your lexus dealer. Welcome back to this special hour of fast money called total request fast money. This is about a hot stay at home stock. Damon here from atlanta, georgia. I have a question about peloton. I was able to invest early on and recently sold and made a descent return i was wondering if you think it would be smart to reinvest in the Company Given the current covid climate . Karen, what do you say . We well, thats a difficult question when i hear that, i think oh my god he sold it and will pay taxes and he wants to get back in but thats irrelevant i shouldnt focus on that. Its an outstanding product. If anyone calculates how they calculate personal record tell me because i cant figure it out. Anyway, clearly the stock is here because it has been a gigantic winner. They have created really a fantastic echo system and a razor blade Business Model with the bikes expensive and software they have done an outstanding job. I just wonder if when a vaccine is found that the valuation will have to come in. So if you dont think thats happening for awhile, you like the name, then you can stay in it it just too one of those, i love the product cant get behind the valuation. The user base is incredibly sticky i dont want to just say sticky because that doesnt convey the whole thing. Not just owning the bike and putting dirty clothes on it but i think that the average and recent initiation of the average number of workouts per month is 17. 7 imagine, 17. 7 workouts per 30 days or so, guy. That tells you about people who own these bikes, who really love using the bikes. Yeah. Absolutely this is a story that weve actually been on for quite sometime and i think tod damons point. This covid environment worked unfortunately i say unfortunately because you dont want to be in this type of situation. Peloton is a winner and people love the bike without question they arent going away they will stay with it i dont thi i think the stock can go higher. I do think you can get an opportunity to buy it chaeeaper, you have to be patient the product and stock will be fantastic. Tim look, the connected fitness and subs dynamic and the revenue stream are very attractive and if you extrapolate off the numbers weve seen over the last three months, you can start to get to some of the valuations. There is competition and i realize there actually is a built of a mode. If you listen, they talk about this is really a vertically integrated story and world close hardware, which is something that is in its own something that creates kind of this echo system around that leads to the connected subs and Service Based revenue. But 17. 2 or whatever how many times guy a month puts on his spandex and rides his bike, thats because people are trapped at home. I think a lot of people i prefer to get out of the house and go to the gym. Ultimately, that is something i will do. I think there is a lot of fitness enthusiasts at any cost will wave in that type of fitness and i think its a wonderful thing. Thats not a sustainable trend i think youre going to get your shot to buy this. I believe it was the dean of valuation, karen, who often comes on fast money who made the point its not just the expensive bike but if they can move eventually to an all subscription model with software, thats actually a very high margin business so youre talking about a different Business Model but that could be the pivot that brings peloton from where it is now to a higher valuation. It could. That could definitely happen i know you like the product, as well when you look at the classes, when i first started on peloton there would be 3200 people in a close. Now there is classes that are 98,000 people. So obviously, they have done a great job of expanding that total adjustable market is bigger than i thought. I get the Software Part of it. Cant argue with the margins there. I dont know how much of that is baked in good point there. Coming up, mcdonalds faces plenty of risk from the covid shutdown but what is in store for the long term . Well get answers. Keep the questions coming. Well answer them all week long. Yes, all week. Trade us at cnbc fast money. Were back after this. Woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. That selling carsarvana, 100 online wouldnt work. But we went to work. Building an experience that lets you shop over 17,000 cars from home. Creating a coast to Coast Network to deliver your car as soon as tomorrow. Recruiting an army of customer advocates to make your experience incredible. And putting you in control of the whole thing with powerful technology. Thats why weve become the nations Fastest Growing retailer. Because our customers love it. See for yourself, at carvana. Com. Our special edition of fast mon money continues and next question, super size investment idea. Im sam from South Carolina i have 25 years to dedicate to the market i want to know is mcdonalds a longterm hold i know its a solid dividend but for 20 to 25 years is it Worth Holding . Thank you. Thats a long time frame. Tim, youve been in and out of mcdonalds. Im not in it for 25 years but i love sams approach. As were talking to a retail audience that is trying to find companies that are going to be here today and possibly even somewhat opportunistic, mcdonalds found a way to get through covid19 but ultimately, this is a great Balance Sheet. It is a 2. 6 dividend and having a Horizon Investment in mcdonalds that has incredible iconic trademark but also i. P. , i think for a company thats evolving with consumer, you know, nutrition tastes and they showed a great pivot in terms of becoming more helpfalthful mindd and kiosks i like mcdonalds. Why shouldnt mcdonalds compete where fast food players took the next step. This is the biggest brand in the space. They have invested in stores and invested in the Digital Strategy and at least for right now, karen, they are pretty well positioned with the number of drivethroughs they operate. Yeah, i mean, ive been impressed with this company over and over again, how they are able to be flexible and adapt to becoming more helpful. They were early on in digital. They have the drivethrough. The way they mccafe. They are again and again innovating and with rates here, the multiple while high isnt crazy for a really quality premiere company like this one so i would say yes, this is one for the long term. Yes, sam, thanks for tuning in i agree. The stock is giving you opportunity is a 225 stock at the alltime high. Trading in the 180s now. Youre not buying at an alltime high my man tony and i many, many years ago there was a walkup drivethrough in the city and we ordered 23 cheeseburgers there is no such thing as a walk up drivethrough there is no walkup drivethrough its called a drivethrough because you drivethrough it. Whatever. 23 cheeseburgers and i got to tell you something, we knocked those suckers down before we got back to my apartment i wont tell you the aftermath because its not that interesting. Youre not going to mcdonalds to eat healthy youre going to have a couple cheese burgers and a large fry and maybe a chocolate shake. Hold on a second. Is this tony soprano the bottom line with mcdonalds, though, is that this appeals to the full spectrum whether its guy and tony or the full demographics i believe thats part of what mcdonalds can recreate and their infrastructure and stores, their same store sales growth in the u. S. Was north of 5, 6 before covid i think well get back there and 13 is my limit on cheeseburgers. 13. [ laughter ] all right next question comes from matthew i like mcmuffins. Next from matthew in michigan. Hey, guys, how are . This is matthew from detroit, michigan my question is what did you guys think about cocacola and do you think it the right move to short against . Short cocacola guy . Well, i mean, the time was obviously five, six months ago when the stock was making move to the upside and when people you know, the world is getting away from the sugary drinks but at this level, im hard pressed to believe the right move is shorting a name like dock cococ. It has snacks. It would be more inclined to own coke than short it. If you think things will stay closed for longer or reclose, meaning sports venues, bars and restaurants, tim, maybe this is a descent short. Maybe see more trouble ahead you know, i dont think it a short. And again, i would put this in sams long term portfolio. Youre buying coke at a cheap multiple because of the dynamics you talk about real issues we will be in stadiums and restaurants again. Cocacola also has recreated this brand around vitamin water and other drinks its not a story, its a cpg story, Consumer Product story. This is a sophisticated Global Company thats dealt with all their bottlers and refranchised and brought the structure to a leaner capital structure i think coke is very well positioned for the next ten years and i would be buying this weakness. Karen i would think if you were an analyst, mel, i think you would say eh feeter short to me, its not really a long, either. Im concerned about the water business in that sort of somewhat fading but it a great, great, great franchise i wouldnt short it. And it could muddle along. It survived, you know, pandemics before and everything that the market can throw at it for 100 years, i think so i wouldnt be short this one. Nor would i be long. Eh. Its a we call that in the business a mech. Mech. In terms of the actual drink and this is just a would you rather myself much rather cocacola than pepsi clearly, i wont be doing any pepsi ads in the near future but if cocacola wants to reach out, im available for a price. I think that what is interesting diet pepsi is underrated. Just saying. Underrated i know its not the goto drink. How about tab who has a tab for me tab awful, awful drink. Its funny people tend to line up coke, pepsi, mcdonalds, burger king and stones who so there you go for what thats worth. Yeah. I mean, tab . Thats what they drink on three is company. I havent heard tab brought up in a sentence do they still make it . Thats what i want to know. Coming up, we have time for s other viewer question and the d desks thoughts on Virgin Galactic welcome back we have a news alert on amc. They are near a deal to stave off bankruptcy it is up by almost 4 . G guy, we have heard about plans to reopen, plans to not require face masks then going back on the face masks but the longer all of this takes, the harder it is for this company to survive. Yeah, i mean, they have a lifeline here clearly but, you know, you have to ask yourself, is the first thing you do when the dust settles and this gets clear up is run to the movies . People arent going to the movies before covid and now you have to really wonder if people will be racing back. The Business Model is flawed although this is a lifeline for the stock, you know, i dont see any compelling reason to buy this year looking for 15 or 20 move. Karen yeah, i kind of agree i mean, i dont know people will rush back but the other side of business is changing in that movie the companies that make the movies, Production Companies dont feel they have to go to theaters anymore the same way they used to that was sort of a monumental change so i dont know. I wouldnt be in this space right now. The stock is absolutely soaring after hours up by 19 . We should note 31 of the shares outstanding are short. So we are looking at a short squeeze in progress, tim you said, you said we wont go back to stadiums, we will go back to restaurants, will we go back to the movies we will some of the secular did naynami changed five years ago and i think streaming and if anything, weve also heard about amazon picking over this sector and seeing where they may want to do a deal with amc. That makes more sense to me as a lifeline, real lifeline but there is no question that its been a sad story for movie theaters around the country and they didnt need this because they were already suffering. This is a story that i dont think youre buying this great news even after this lifeline after hours. All right up 21 let get to another viewer question the next one is out of this world idea. Hey, there. My name is andrew chestnut from santa cruz, california the stock i had in mind was Virgin Galactic. Ive been a big fan and want to know your thoughts on it all right. Thank you. All right i dont know tim, want to take this one sure. Yeah i mean, not to be confused with Joey Chestnut that wins the nathans hot dog eating contest this year. Did he win this year they did have the contest 77, i think yeah crazy. Unbelievable. Super skinny. Sorry about that, mr. Chestnut the story around Virgin Galactic is one where again, there are investors for this story and i think the stock has a baseline the profitability and space travel is a very difficult call here this stock to me in a marge cke with excess liquidity, why not richard branson, we have all the faith in the world on this guys ability to run a business and build a brand so why not people want to invest in space i just dont know where the profitability here is and i just dont know when youre going to see that this is not something i would ever be buying on fundamentals but the stock has a baseline. I mean, were talking at the top of the show about tesla being one of these idea stocks, right . And the scarcity value talk about scarcity value. There arent too many ways to play flights to space, guy there just arent. So if you believe in that, that is your ticket literally. Well, your entry point is better this is a 42 stock. Literally going to space and now its i think 17 or so. Your entry point is good the way i play space is i go to blockbuster and i rent apollo 13 and come home and have the rest of the 23 cheeseburgers. I mean, thats as close as im getting to going to outer space, know what i mean are you renting a beta max . [ laughter ] doesnt everyone . Lets get to another question this is via dwetweet. Dorothy tweets beating down and no one talking please discuss pros and cons in this covid market. What did you say about at t . Interesting i mean, you know, we were worried about their debt not that long ago and they sort of were able to kind of escape that by refinancing and interesting to me that, you know, sometimes we talk about how are Media Companies not talking about buying gaming. At t is looking to sell theirs i dont i dont know what to make not crazy expensive. It wouldnt be a crazy thing to own but doesnt jump out as a must have, either. Tim, you owned this. Ive owned it i still own it i dont love the price action. I think the lower rate environment allowed them to cut the cost of capital and financing. I think the assets on the media side, you know, in ex tratractig and unlocking parts value that seems to be there is tough hbo launches a streaming service into a very crowded field even though they have an incredible line and history of producing top shows. So i stay long look, we always say this i can hear karen echoing in my ear as you never buy a stock for a dividend but i will say in this environment, this isnt a perfect Balance Sheet but its a Balance Sheet thats able to fortify itself traumatically and lets be clear, staying at home and wireless and some of the core business are alive and well and very, very strong and this is a massive dividend play for people that are wanting to buy a company that will heeb fre for e long term and i believe at and the will be here i stay long. Fun show, guy lots of would you rathers. A bunch of questions well do this all again tomorrow short cocacola. I mean, fantastic. Thank you. Guy, tim, karen, and thank you out there for watching we will be back, as i mentioned, tomorrow for another supersized edition of this show were taking questions so please send them in to cnbc fast money. See you back tomorrow for fast shark tank is up next. Need better sleep . 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