Transcripts For CNBC Fast Money 20240712

Record high today, up more than 17 this year. Check out the big tech names hitting fresh alltime highs in todays session, apple, microsoft, facebook, amazon, netflix all marking new highs. Is this headed straight for a giant iceberg, guy [ laughter ] when you read that, you hesitated reading that this is the bubble in my head literally said should i read this or should i skip over it, titanic tech run headed straight for a giant iceberg. I went with it lets go with the metaphor. I am a fan of leo i know you might find this propostrous but leo is a huge fast money fan we should collectively give a shoutout so i was talking to the great dan nathan earlier today and we were just talking about the move in amazon. Amazon is up 3 today. Amazon has added this month which i think today is the 9th of july. Just this month its added almost a quarter of a trillion dollars to its market cap. I think there are only 22 companies in the s p 500 that have a market cap of a quarter of a trillion dollars. Its a staggering thing. If youre watching this and if that makes sense to you, thats fantastic. You understand it a lot better than i do. But at a certain point the chasm between growth and value has to correct itself unfortunately, i think the correction is the nasdaq giving up the ghost what does tip that off, steve grasso, grasso you could have thought that when amazon crossed 3,000 for the first time last week and missed out on the latest 200 points to the upside or so. Its funny you say that because im looking at a chart back to april. Thats when amazon became overbought it rallied 56 from that point until now. So its been running at or around overbought for months now and the problem is people want to buy the market, they buy large cap tech, they buy growth, they buy small cap tech. But to guys point, they dont want to buy value. I dont know if that gap between value and tech can narrow until theres a vaccine. So tech will keep marching on higher you could have some volatility, a correction, but i dont think youre going to have a cat th cataclysmic fall off a cliff people take that money and put it into growth, end of story. For some investors, though, stocks occupy or some big cap tech stocks can occupy both growth as well as value. Karen, you probably are in that boat when it comes to makes like microsoft or an apple. But at what point does that stock migrate from value into just simply growth right well, i am long microsoft, apple, el alphabet, some facebo. As the market gets higher, theyre not as expensive relative to the market as they used to be kind of, which does and doesnt make sense as rates go down, multiples expand, right . They are also still, though, areas of growth. Even with the pandemic, youll see some of them with tremendous growth i dont have another alternative is also a big part of it i dont know where else to put the money. I think apple has run a lot. Its certainly not cheap especially when you think about the hardware part of the business but if you think about the Services Part of the business, its not expensive either. Alphabet also i think is not crazy expensive but i dont have any other better ideas im kind of just sticking with them if i could answer one of your earlier questions, when does that divergence start to correct and converge between growth and value, i agree with steve, i think if we get either a vaccine or a cure that really works or we see numbers start to come down dramatically, then i think that value will really start to get some momentum. We saw it briefly a month or two ago and then it really petered out. Thats what has to happen to get those two sectors to convert. Tim its haircut day, its exciting, my first in five months look out tomorrow. It looks fine, but its the back america doesnt see the back its long back there. Theres a huge covid party going on in the back obviously we have to be careful about how we congregate back there too. Were going to get rid of it in terms of the nasdaq, the numbers are 24 outperformance to the s p were talking about growth and value. Were talking about tech and nontech you also have to be careful what the definitions of tech are. Yes, amazon and aws as a highgrowth tech business, data center, et cetera. But what is ecommerce anymore ultimately this is where most commerce is getting done you know when best buy does business, do they become a tech story . Are they a specialty retailer and big box . The recharacterization of the industry is something were going through now and the former definitions dont mean a whole lot. The chasm between growth and value is somewhere around 900 basis points the question is and john woke from wolf was on yesterday talking about how financials need to do something for the s p to have a decent year. Basically nine times in the last 30 years financials have been down and those nine years the s p was down so Bank Earnings nextweek are really important even for people that think that banks largely are caught in this conservative guide. The Price Performance right now i still this should be something for the overall market to worry about, even though i have been Glass Half Full on banks to be clear. Lorie, great to see you. Great to see you too. Your year end price target for the s p 500 is 2750. Do you think this tech run weve been seeing is regoing to break i think the market as a whole is overextended and tech is certainly nod t immune one of the things weve been looking at nasdaq is the csp data on future positioning were seeing a cyclical area like small caps investors are still very cautious. If you look at nasdaq future positioning, its actually pretty close to historical peak and its continued to climb. We saw general positioning get stretched back in february thats what nasdaq looks like at the moment so to me, i do think theres crowding risk. If you see that crowding risk unfold in the tech space, it will harm the Broader Market that will be one of several potential contributors to volatility this summer. When you saw that crowding back in february, was that preceding the record highs yes. Youre laying the groundwork to retest those highs before that pullback that youre forecasting for later. You saw that extreme level, that peak positioning and s p futures that you did not see it in the nasdaq futures. They werent low, but they werent at Similar Peaks the way the s p 500 futures are. So what the data is telling us is that nasdaq all along through this has been marching to the beat of its own drummer. So the russell, you mentioned it briefly, but the iwm i think closed below 140 in my opinion and i might be wrong the russell has led us to the upside over the years, its led us to the downside it clearly didnt get anywhere close to the highs 135 was the june 11th low, i think. Is the russell trying to tell us something for the Broader Markets . I absolutely think you hit the nail on the head, guy. If you look at russell 2,000 relative to s p and relative to nasdaq, the same way nasdaq is functioning as a defensive vehicle, the russell 2,000 is functioning as a pure cyclical vehicle. In mid may when we really started to see economic surprises pick up and there were a lot of hopes and dreams on this economy and this second wave being avoided, the reacceleration, the reengagement really taking off, thats when the russell 2,000 briefly took off in terms of relative performance but it only lasted a week by the beginning of june it was gone that really coincided with concerns about the second wave of the virus reemerging. Investors were willing to play the russell when those hopes and dreams were running strong but as soon as those started to get question, the hoprussell fa again. It is absolutely a barometer now. Do you think were going to see some kind of stimulus that will serve to put a floor under the market and if so, how big and is that priced in already . So i think stimulus is largely priced into a degree i think kind of getting an extra round out of washington, i do think that would help markets a little bit in the shortterm there have been some jitters on that when it comes to the fed and the stimulus from the Federal Reserve, i do feel like thats gotten generally priced in at this point thats what put the floor on the market, caused multiples to expa expand i think the problem with these stimulus ideas is theres only so far they can go youve really got to see the confirmation of the market data. The market is still really shortterm if those indicators dont cooperate, if theres a lag between stimulus and those indicators perking up again, youre going to have a problem in the market. Where do investors hide out where should they hide out, lori, if your forecast for 2750 comes true on more of the defensive side we like utilities. We think tech stole utilities thunder back down the drawdown now youve got a very cheap sector if you look at health care, thats another one of our overweights. We really think of it as longterm secular growth in terms of the secular growth versus value, were neutral there on a 12 month view but we think health care looks more appealingly valued than tech were neutral on the tech space. Just in case were wrong, we do like to have a cyclical play in our pack pocket. Weve looked at things like financials for commodities the consumers and industrials. We think industrials is probably your best play if the data does start to firm up it just looks much more attractively valued to us and frankly safer in terms of fur fundamentals and financials for the consumer thank you steve grasso, 2750 you think that works out for the end of the year . Im hoping it does not work out for the end of the year. I think you could see a little bit of a drawdown. I dont think its going to be that deep. I think people will rush back in to buy the market. As long as the fed is there to backstop, the market is going to continue to go sideways to higher. Karen, when youre asking about stimulus, did you mean fiscal stimulus or monetary stimulus yeah. I was thinking fiscal stimulus i think weve got to see something by the end of the month before Congress Goes on rest both sides want to give away as much money as they can i think that will put a floor on the market. Lets turn to the other side of the market here among the biggest loses today, banks. The biggest names getting slammed days before earnings seasons. Jp morgan kicking off Second Quarter earnings season on tuesday. The performance, tim, was weak across the board today are you worried about banks for next week . Im worried about the price action and again this underperformance gets to a place where banks look very cheap to me relative to the market. Either the market is wrong or banks are wrong. So i still think its an overly conservative approach to banks i think the stress test, you know, a lot of just confusion around the Balance Sheets, how good they are. I think theres some concern about how the banks suddenly were reminded theyre under the thumb of the Federal Reserve or the nationalization dynamics in the Banking Sector going into election season. The backdrop from the regulatory perspective for banks for the last 3 1 2 years has been about as good as its ever been in the last ten years or at least or certainly precrisis these are concerning elements of how banks are trading. As i mentioned, i dont think the market ultimately can do a whole lot if banks are going to finish down here i think the banks have a lot of bad news priced into them. I dont have any problems owning jp morgan. The price action of the last couple of weeks, two weeks ago if you asked me how i feel about jp morgan, id say best of breed and a bank that i want to own. I dont feel any differently today. I may feel differently the day after earnings but right now my sense is banks have been caught up in expectations thats a tough, unclear road for credit. Lets get more on the banks and bring in christopher whalen. Great to speak with you. Hey, nice to speak with you, melissa. Tim opened up by saying a lot of them are inexpensive. That begs the question, value trade or value trap at this point . Well, i was a buyer coming out of april, especially for my preferreds ive been rotating into them because they were so cheap you could buy income up to capital structure below par and you dont get that very often. I also loaded up on a bit of us bank but frankly, between then and now, i just decided that i still have no visibility on credit you know, your conversation, right . I think thats whats weighing on the street. We had a nice rally. We had jp back at 1. 3 times book at one point theyre still relatively strong, the good names but the weaker names have been suffering. You know, capital one, i even worry about goldman, because we have issues with them and they have high risk franchises both in terms of credit and other types of risk. I think the street has pulled back because we still dont know and we still have no guidance. You know, theres no guidance out there and the street has pulled their estimates back too. Theyre talking about this year. Its really all the visibility we have. What i tell people is watch credit if credit comes in light versus q1, thats good to his earlier point, right, it tells you people are getting more comfortable with whats coming. Right. If were loading another 50 blgt billion on the fireplace for the rest of the year, that tells you well see a big credit loss for 2020. We talk about banks as sort of a monolith but obviously there are many different types of financials in that basket when youre concerned about credit and credit losses, the big unknowable at this point in time, which financial has the most exposure to the most concerning kind of credit to have the small commercial customer which is typically a small Bank Customer worries me a lot, main street, melissa. Think of all the different types of small to mediumsized businesses that have been impacted by covid, right its an enormously wide swath of the economy. As you go up the food chain to the bigger banks, the us banks, the jp morgans, theyre good performers they know how to manage credit im not worried about them but i am worried about some of the narrower businesses like the capital ones that are facing not today but maybe in october and november a big uptick in unemployment and credit costs. Im very concerned about the number of enterprises that have managed to support their employees and keep everything together for a few months and now theyre letting people go. I had a young man serving me dinner the other night in stone harbor, new jersey, who had been a Marketing Executive for a Dance Theater and they had to let everybody go think about that type of example multiplied over the entire consumer Small Business complex. Meanwhile, were going to have a record year in residential mortgages. This could be well over 3 trillion this year, 40 on volume because of the fed. So thats a bright spot, but i think consumer and commercial credit, anything having to d with multiuse commercial real estate that has any kind of a retail aspect to it is going to be in big trouble. Hey, chris, what do you think . Do you think this is more of a macro call when you look at the xlf . Its down 23 year to date when you look at the xlk, its up 18 year to date. Is this less to do with the banks specifically and more to do with investor preference . I think it is a kcombination of the two i think a lot of investors dont fully understand whats coming at us because its not like 2009 this is not a liquidity crisis this is kind of a grinding credit discovery process and resolution process, which is going to take years. I think, you know, when we talk about the 30s and a comparison, we may need help for the courts and for governmental agencies around the country to deal with the dislocation of this kind of credit event its more like the mid 30s. I think thats where we have to focus people, because the strength of the u. S. Economy is that we resolve things like this quickly. We dont let them sit around but i do think, you know between this year and next year, its going to be a tough story for banks. You know, the estimates have earnings down 50 this year from last year. I think its going to be more than that. Chris, thank you. Okay. Thanks, guys be well. Chris whalen. Guy adami, in terms of the most troubled areas in financials, chris, you know, pretty much hit it on the head in terms of the blends exposed to small and mediumsized businesses. That would probably be regional. Yeah. Its interesting capital one was one of the names he mentioned i think weve talked about this for a while, theyre overseeing the have and the have notes s in terms of companies that have done things well and the companies that have just impaled themselves i put wells fargo in the impaled themselves category. They took a 13. 7 billion loan loss provision last quarter which is up 413 year over year. Youve got to wonder what happens this quarter maybe you get a bounce i do agree with tim that jp morgan is worth trading at these levels ill say this and im not suggesting anybody does this on this panel or on the network, but you cant look to the banks when theyre doing well and say what a barometer they are for the broader economy and then discount that when theyre trading poorly, which they are now. If its good on the way up, you got to take the bad on the way down i do absolutely think banks are telegraphing something here. I think one issue, karen, is that we dont know what reality really is given all the stimulus that has been handed out to both businesses, small, medium, even large as well as consumers we just dont know who the depths of the pain is. Right we dont know and i think well get a little bit of clarity this coming earnings cycle, but we still wont know because, you know, things have changed in the last two or three weeks a lot. What theyre going to tell us next week is only up to june 30. Clearly i think giant provisions are coming, but i also think in a name like jp morgan, giant provisions for a while are baked in, and i think not everything is data. Chris touched on mortgage markets. I just think about the last quarter of the Asset Management business think about the Capital Market business think about people are concerned about auto loans not paying. The value of those used autos now, theres maybe a good floor there. You know, even for residential prices are firm and houses are selling. When you try to think about really what is the credit risk of being priced in, it seems gigantic to me that could come to pass for sure, that could but for me, jp morgan is absolutely the best of the best and i think its too cheap i think its an extraordinary franchise. Chris may be right, they could earn well less than half than last year but thats not what makes upmost of the value when i think about an ongoing business like jp morgan. Coming up, one big bright spot in retail today and how traders are trading it plus, investors piling into chinese stocks one of our traders breaks down the names you need to know about. Some see a Grilled Cheese sandwich and ask, why . I see a new kitchen with a grill and ask, why not . I really need to start adding less to cart and more to savings. Sitting on this couch so long made me want to make some changes. Starting with this couch. Yeah, i need a house with a different view. And this is the bank that will help you do it all. Because at u. S. Bank, our people are dedicated to turning your new inspiration into your next pursuit. To turning your new inspiration you say that customers maklets talk data. S. 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. The retail giant walmart jumping 3 today, analysts saying walmart plus could mean big gains for the retail giant revenue could approach 2 billion annu annually the stock is up 7 in just the past week. That is pretty much the entire years gains in just the past week karen, is this expensive now no, i dont think its expensive. Last night was a very, very rare, maybe the First Time Ever two of us had the same final trade, which was dan and i were walmart. I think its not expensive certainly if you look at, okay, theyre taking on amazon and you look at where amazon trades, this differential is enormous. I think theres a lot of room to run. Theyre not crazy expensive. In addition, i think its only up modestly for the year its been a big beneficiary of the coronavirus situation and i think that good for them for capitalizing on it, being aggressive i think theres a lot of upside here its not crazy expensive at all. The key bank analyst is also making the point that having the physical footprint and store inventory has really been an advantage in this time of covid. If amazon wanted to have the same kind of footprint, it would have to go way beyond whole foods. So they see that as a continuing advantage over amazon. I toetally agree. You remember the speculation that kohls stores would be a good fit for amazon for those sites where they could do the exact same thing you just mentioned. I said the other night, though, that walmart, every time you see it spike higher like this, it sells off. Usually in two to three days it didnt do it this time. Thats atypical for the stock. Its not overbought yet but i still think you could take profit share i think this is overextended to say the least. Guy adami, quickly, if walmart and amazon can coexist and they are even with this walmart plus offering, where would walmart be taking share from would target really be maybe the loser in this whole sort of menage a trois, if you will. Target seems like the loser in this try um viumvirate to yo point. Possibly costco is a name we talk about that makes sense. Quickly about costco, it traded up today, alltime high, closed at the february prior alltime high at pretty big volume. Im inclined to take profit share. Costco has had a huge move but to again answer your question, im not necessarily sure that target is a loser here on valuation alone, i think target is worth owning im not sure why anybody thinks walmart cant compete head on with amazon. Of course they can theyre the biggest retailer in the world. Walmart competes on price. When they started to lose ground is when they lost that focus and tried to be other things walmart went through a difficult period three years ago where inside the store there was chaos, there wasnt enough assistan assistance ultimately walmart competing on price, now competing in terms of logistics, procurement, fulfillment, thats what they do thats what their stores are they are kind of an amazon even though they were the first ones to build all that stuff. I think this is a very important move and i think it will be at the expense probably more of a target if you look at that chart on walmart over the last couple of years, outside of the pullback we had on the crisis, thats a pretty strong twoyear chart on walmart. I was skeptical early in the crisis when this was massively outperforming. That multiple at 24 times trailing and i use the trailing multiple because in this environment the fact that these guys are doing the same or slightly better, that make them even cheaper that blended multiple, that ecommerce multiple means walmart is worth a lot more. Guy, did you raise your hand . No, im not always raising my hand you know, what happens when a lot of people text you at once whats that term cool people use, your phone is exploding or something . Thats happening right now with me because apparently tim has like some small animal over his right shoulder on that couch. Its not your hair. Its an actual fuzzy thing on your couch. Yes, yes, yes we keep furry animals on our couch. Can i ask a question. Go ahead. Can guy stop asking questions . Because i think its disruptive. Im going to ignore all of you. Coming, if youre itching to catch the rally in tiny stocks, well break down the stocks. Plus, the Home Sweet Home trade. We layout what is next for Home Construction stos. Ck when the world gets complicated, a lot goes through your mind. How long will this last . Am i prepared for this . Are we prepared for this . With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations, with access to taxsmart Investment Strategies designed to help you keep more of what youve earned so youll know youre doing what you can for your family and your future. Thats the clarity you get with fidelity wealth management. To visit all the places we didnt know meant so much. S to get out and go again. But were all going at our own speed. At enterprise, peaceofmind starts with our complete clean pledge, curbside rentals and lowtouch transactions. With so many vehicles of so many kinds, you can count on us to help you get everywhere you want to go. Again. Whenever youre ready, were ready for you. Enterprise. Welcome back to fast money. You are looking at the fxi surging as investors rush to get in beijing is attempting to rein in investor euphoria the influential China Securities journal today cautioned investors to respect the market, remember to manage risks and invest rationally for the longterm. The advice came only four days after the same governmentbacked paper fuelled a buying frenzy talking about the importance of a healthy bull market for chinas economic recovery. In eight days chinese stocks have added 1 trillion in valu. Raising fears of a repeat of the boom and bust cycle of 2015 when investors took on too much debt. This week the authorities cracked down on more than 250 illegal margin platforms even so, some brokerages say requests to open new accounts are up onethird from a month ago with people online posting screen shots of their gains and saying they feel invincible. Eunice yoon, beijing. Thank you, eunice tim, what is remarkable is that the thing to remember here is the individual investor over in china has a much greater impact on the Broader Markets than they do here. Theyre a much greater force, much greater numbers, the dollar amounts are greater, set rancet. People think these are markets that arent very deep. No its interesting because a few weeks back we talked about the nationalization and the concerns in hong kong and some of the issues in terms of delisting and what not we said whats this going to mean for the Hong Kong Listed stocks, the fxi . Its nothing but a bonanza we talked about how the government has been leaning on the wealth effect from the market if you think about the consumption gains that come out of covid19, think about it happening in china as well theres other companies other than baba. Think about online gaming. The engagement trends have been extraordinary. A 65 billion company has different pieces to the model including Online Education theres tal education which is a 42 billion company. These are big, big companies, Online Education, foreign trading, seminars et cetera. The size of their audience is massive. 43 million subs and soaring in terms of growth and engagement and subscription value i urge investors to look at the Companies Trading here that are of size and that are real businesses we know in the trade war, the dynamics of control of the internet and 21st century tech, china has their own leaders and theyre all Real Companies to invest in and theyre flying right now. Grasso . So it gets back to where we were when we looked at amazon before all the names that tim just mentioned and all of the indices are all in an overbought on an rsi status, but it doesnt mean they cant go higher as long as we continue to have global easing and the Chinese Media coming out saying its healthy to foster a bull market, all of these names will and can continue to go higher. They all like parabolic on a chart. But unfortunately for the short investor, theyre still going higher. Guy, i would think the hope is that china is farther along in terms of the postpandemic recovery than the u. S. And maybe what were seeing here is a recipe for what we could be seeing here in the United States if that is, in fact, the case, that would be fantastic. Im hardpressed to believe thats the case. Who knows whats real and whats not real coming out of china the ftakeaway is theyre doing more jawboning of the market than we seem to be doing here. Im always the half empty person, but why do they want to goose their market so much i think theres a real concern that the rhetoric between the Trump Administration and the chinese can continue to get ratcheted up im willing to bet President Trump if you asked him and you slapped a lie detector on him, he cant be happy with how well the chinese stock market has performed. I think thats a good point, tim. Sorry for barging in there, guy, but were goosing our markets all day long the Federal Reserve is talking about backstopping this and that theyre talking about buying etfs the president is constantly talking about the market as a barometer for the economy. You dont think in this country were not using the market and manipulating to me, thats why right or wrong its whats happening. I think what china is doing is probably looking over here and seeing whats happening in this economy in this market and the wealth thats being created, becauses that what t s thathat l reserve targets. They tell you they target that. Still ahead, Home Builders making a comeback in the past few months we get one top technician to reveal the names he likes. If youve had the coronavirus, 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. Welcome back to fast money. Check out housing stocks getting hammered today the itb falling nearly 3 after a 33 run in the past few months our next guest sees opportunity building in some corners of the housing space. Well, as we think about market leadership, it can be clearly identified in technology and internet and health care i think thats safe. Those are where you want to be overweight as we think about sprinkling in some cyclical ideas for this possibility of rotation into cyclical, the area that really stands out to us here is housing. First chart i want to look at is the ishares housing itb really just has been after the big runoff of the march lows, has been in this narrowing range. Its above its 200day moving average. The breakout is not yet conclusive, but i think there are enough positives to buy this as a trade with a protective stop at 41 support. Heres the key positive, the second chart that im showing. Its looking at the top weighting within its a 14 weighting im showing it on this longterm scale going back 15 years to show dr horton is attempting to break higher through 15year resistance dating back to its peak from 2005 so our take is that dr horton resumes that larger 15year breakout and pulls the group with it. This is the biggest weight in there. Final chart is a play on housing. Home depot, its a derivative Home Improvement retailer, probably best idea of all the plays here, quality name also consolidating, its formed a bullish pen pattern. Its allowing overbought conditions to recede typically these are continuation patterns that break in the direction of trend to us, this trend is higher. We think you get this breakout this would also mark a breakout above the stocks february peak which would be a bigger breakout on top of that. Ari, thank you. Steve grasso, we go to you for this. You know, its funny that he picked home depot. Ordinarily i would pick that too but lowes actually has a nicer chart for me and has not taken a step back. As far as those two top holdings in that builder index, lenar or dr horton, dr horton is being rewarded because theyre building spec houses theres not enough once that was a headwind, now its a tailwind. Id be a buyer of both. Tech on a tear driving the nasdaq to another record high in todays session. If youre looking for a way to play catchup options traders have one name theyre ii eere r a surge. 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. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. You should be mad they gave this guy a promotion. Weve just been finding a way to keep on pushing. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Welcome back the nasdaq hitting another record options traders are betting on an even bigger breakout for one tech titan hey, mike. Is were taking a look at google today google traded well over two times its average daily call volume and actually calls outpaced puts by 41 a lot of that activity was weekly call actions given todays strength we also saw buyers at 1600 strike calls that expire next friday they were making bullish bets that the rally can continue. That may not be that surprising considering google is basically trading right at its alltime highs. Thats an area where you often see some resistance. So this could be ways theyre using stock substitutes. In other words, risking very will in case it does break through and hit new highs next week coming up, president ial hopeful joe biden unveiling the details of his economic plan today. Theres one group of stocks that could be poised to light up as a result its like walking into the Chocolate Factory and you won a golden ticket. All of these are face masks. This looks like a bottle of vodka. But when we first got these, we were like whoa [laughing] my threeyearold, when we get a box delivered, screams mommys work mommys work. With this pandemic, safety is even more important to make sure we go home safe every single day. Safeyou say that customersant tmaklets talk data. S. E 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. Democratic president ial candidate joe biden unveiling his economic plan today. There is one group in particular that may be a big beneficiary. That would be cannabis stocks. Tim, what did you see in this . Well, you know, look, legislative catalysts have been part of the investment story i really think that ultimately its a bottom up story, its a co consumption story. Then talk about supporting the federal medical cannabis market. Thats an elegant way to me to begin the descheduling nationally of cannabis medical markets obviously exist around the country now theres a handful or more of fully adult recreational markets that exist but dealing with the criminal justice issues around cannabis is part of the complexity of this issue theres a lot of people sitting in jail cells in this country purely just for possession and essentially drug only charges, part of what the Democratic Party is endorsing is that people that are in jail for drug policy, for drug infractions that are purely just using or having a drug issue but not any other additional problems related to that should be let go as it relates cannabis there are huge legislative catalysts for the fall i think the market, as i said last night, there are Companies Executing now that show fantastic 22 numbers theres four or five states that have new medical initiatives on the ballot for november. Theres several states that also have adult programs on the ballot for november. So the excitement around this sector, i know its been a painful place to invest, but every exciting dynamic of the top down that you wanted to invest in three years ago is actually happening the Addressable Market is growing these states egalize states are being left alone, but if you get the federal medical cannabis dynamic and at least the endorsement for it, these markets are going to move. Steve yeah, what tim was talking about too is the morac Kamala Harris and jerry nadler introduced that bill if she is tapped to be the vp, this whole space will rocket higher if you look at the ownership, institutions own 9 of the publicly traded market cap in cannabis equate that to the russell they own 68 or the s p, institutions own 80 . So owning only 9 owned by institutions, this would be a rocket ship moving higher if its legal and the institutions would come for it. They cant buy it right now. Right because they can only buy things that can be listed on exchanges. Therefore, federally legal that has always been the barrier in sort of the argument that there is sort of a huge wave of money that can still come into the sector thats still waiting in the wings. And its also, i think, hurt the entire sector because a handful of companies that could list here and get Institutional Support really didnt deserve those valuations a lot of money was squeezed through a funnel and you had a dynamic where valuations didnt make sense and a lot of people got frustrated and said, boy, this is not even a real sector its exactly the opposite. Steve is right, Institutional Support is needed but i think the companies are going to show theyre making money this is maybe the Largest Company with the best Balance Sheet in the United States their numbers continue to get better their profitability is going higher their adjustable market is only going up exponentially as more people come online in this country. Lets move on and check out shares of this big mover today, Virgin Galactic is up nearly 16 . That stock has been a fafrvorite among the retail trader set. Weve seen back to back gains here karen, weave talked about the rise, for instance, in some of the stocks and the notion of scarcity this is maybe the poster child for that notion. Right you know, not surprisingly, i wouldnt be comfortable with this one the scarcity, thats true. I think theres some decent talent behind it so thats good as well. Maybe im biassed because literally, well not any amount of money, but theres a lot of money i would pay to not have to go on one of these not moonshots, spaceshots, i guess they are i understand theoretically theres a gigantic total adjustable market, but i think were so far from this being a viable business, i dont get it. Grasso owns it. Yes i owned it for a couple of weeks now. Im up a little over 20 it is what you said. Its the scarcity value. Theres no other direct play in this space but this name so if you have an etf, this has to be included on it theres no other direct way to play it. It reminds me a lot of tesla back in the old days when we talked about short interest. This has a 34 short interest. Theres not a lot to get this stock going further thats needed i think you have much higher gains coming down the road. Final trade time. Tim . Tim . We lost tim. Guy . The security stocks are doing something interesting. Ill go with panw. Karen lets talk about banks. Im long for earnings next week and generally long but if you want to play it and know your downside jp morgan call spread is the way to do it. Quick, grasso on semiconductor, Ticker Symbol on. We could never do what they do. But what we can do it be a partner that never quits. Verizon is the most Reliable Network in america. Built for interoperability and puts First Responders first, giving their calls priority, 24 7. We do what we do best so they can too. But what if you could stdo better than that . K. Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Welcome to another special edition of fast money. Jim is off this week, but were here to answer all of your questions about the stocks youre trading right now were taking your questions. So tweet us. Here to get you some answers, guy, tim and karen well dive into ali baba, hitting a fresh alltime high today, adding more than 100 billion in value this month alone. Tech stocks broadly one of the bright spots in todays market, with the nasdaq composite eking out another record even as the other indices fell check out some of the other stocks here. Weve got to take a look at some of the other stocks that were high on traders radar today we go to josh lipton for that. Josh so lets start with the unusual options activity we saw in todays trading for that, we turn to chris hayes, who breaks out the names for us helen of troy, mohawk industries, upwork and e. L. F. Beauty and what was popular on robinhood, including nio, amazon, tesla and ala baba needham initiating coverage with a buy rating, price target of 275 citing alibabas ecosystem and strategic position in the ecommerce value chain back to you. Thank you, josh lets dive deeper. Here is a question from james in arizona. My name is james murray and im a 24yearold musician and investor from phoenix, arizona check out my band jam now. Im calling in about Ticker Symbol baba. I wanted to see if it was a good longterm play, even with these escalating tensions with china thank you. Ill go to the guy in a band himself, tim rock on, dude by the way, we need to hear some of those tapes if you looked at the pricetoearnings ratio, this is trading inside of one, as far as im concerned. They have a Cloud Business like amazon, they have an ecommerce business, we have a number of portals domestic and throughout asia they are executing and has not necessarily been a trade war stock, with the exception of the sentiment. When we first got into the trade wars, no question it was i look it, a huge run, ad 700 billion company and getting larger guy i would like to know what james band plays. Tim assumes its a rock band they could be jazz, kenny g. Type stuff maybe james can send us a video tomorrow is that your commentary on alibaba . Listen, theres no better person on the network to speak about ali. What could i say to override his comments pass on you lets go to karen. Yeah. I like alibaba a lot we got a very Good Opportunity earlier this year when coronavirus was in january, february, really hitting chinese equities very hard that presented a Good Opportunity. I agree with tim i dont think its expensive, and i think theres a lot of growth there my sound dropped off for a little bit, i dont know if tim talked about cloud, where theyre putting a lot of money i think theyll see a lot of growth and also, remember, we dont see it in their income statement, but they own 33 of ant financial, and you know the story that maybe they will list on hong kong maybe, maybe not but thats another potential catalyst but i think the valuation is cheap and theyre just i mean, when you think about an amazon, and that valuation, this is ridiculously cheap. So i like it a lot tim did mention the Cloud Business if you think about the u. S. Cloud business and aws, Amazon Web Services and the competitors they have here, that doesnt really exist in china. Alibaba is not competing against the big cloud providers from the u. S. Because they cant operate there. So its a protect your market that they have in china. Yeah, no question theyre dominating ten cent. Theres a handful of the bigger local players. But they are continuing to build out that business, and think about the enterprise in china and think about whats happening across their entire internet infrastructure so remember, that was the Growth Engine and why people were willing to pay up for amazon it was less about ecommerce thats the underappreciated part totally agree with karen, and i think this is a driver for the stock. This next question comes from william in colorado. Hi, my name is william from denver, colorado im a big fan of fast money what are your thoughts on snap chat over the past month the prices have gone up, so should i buy or sell guy, i know youre an avid snapper yourself, so i shall go to you on this one love the snapchat application, and if you are a big fan of fast money youll know that we did a power pitch on the snapchat a while back kudos to steve on this we sort of piggy backed that one for a while. Snapchat was close to being put out of business by facebook in my opinion for a period of time. I think facebook took their eye off the ball and focused on other things much to snapchats benefit now with this whole tiktok news, i got that application recently as well, i think it augers well for snapchat and their earnings. So i stay with the name. They can go higher from here i would just add, i think all of the social media stocks, the snapchats, pintrests, have been the ben fish of this iktoktalk whether it would be banned here. I think Something Like twitter or google is less expensive and i would rather be in those look, theres no question that there is a marginal, you know, gain for snapchat, if not a major gain off of facebooks troubles remember, instagram was really put in place to take out sn snapchat and it looked like facebook had won this war. But snap has been battling back. I have not been bullish on the stock, so im not going to act like this is a name i thought people should run into but advertisers are finding scarcity in terms of where they can place ad dollars on social media, so snap will get some and therefore, im not sure that the fundamentals have changed bottom up in the company but the top down within the sector, in terms of the investment community, still has a tail end for snapchat. Next question hey, im justin out here in los angeles. Ive been in the nasdaq since 2012, and one of my proudest entries has been square. I saw the potential when i bought my first concert tshirt with a credit card will the closures of brick and Mortar Retail have more of an impact on squares longterm growth than the ventures into banking, and do you still see paypal as their primary competitor as these conditions hold throughout the pandemic thank you. Lets go to karen for that one. Thats a great question. Theres a lot of parts to it i think that i dont know when you say brick and mortar, if thats sort of a proxy for Small Business, because i think you can see a lot of Small Business use other square apps besides just the little reader but i think that theyre making themselves more important in every aspect of business however, all that having been said, the stock has just gone berserk. Any payment stock has gone crazy. I think square cash is getting a huge multiple, perhaps more than it deserves. I wouldnt be surprised if we started to see pressure that business so its a great, great company, but i think the stock is pretty far ahead of itself. Yeah, guy i agree i think they raised their price target to 117 i think youre going to get a better entry point at 129 than it closed at today paypal has been a monster, as well they report earnings july 29 again, i think thats probably a name you want to own, but its just these moves have been astronomical so understand when they report, i think square you can get a chance lower i think paypal you have to look for opportunities to take money off the table. Its not square, then where well, i do think paypal is one play frictionless and cashless transactions are the way to go these questions are amazing. Justin was giving us about as much information as a lot of people that come on our show do, or maybe that i do so good job at home. You have a case here, think about the haves and the havenots of the new normal. And by the way, our Great Production Team that is helping us from the jim cramer show. This is something jim talks about, investing in the new normal and staying in those investments. The reality is, not only are we being dynamic in the economy with the virus, but some of these trends are ones that stay with us. The stickiness of the square platform and how they have been able to play a role in all of these ppp loans, in addition to the cashout means, i think theyre going to be a major part of tomorrows trade. I dont like the valuation either i was taking profits a few weeks ago. Wish i had held the whole thing. Lets it will the twitter machine. Donny asks 39. 5 see, bang, i have an answer for you. We talked about that now kudos to the great dan nathan at risk reversal who power pitched that sucker. Weve been bullish in twitter since mid may when President Trump went after all the social media platforms. Its proven to be correct. I think it trades up to the prior high in february which if memory serves is 39. 5 tim, do you have a level . You know, hard not to take guys level. That has been a level thats failed four or five times. Look, these catalysts and these drivers and big trades in twitter, we have hand a handful of them, and they are spikes tough to sustain until we can break out of there, that is the level to sell at i think the valuation of the company is sometimes misunderstood. I like the trends in terms of their daus and the ad revenues are what they are i think they have the ability to specialize the advertised targeting with the way that the data is collected on the network. So i think this is something that people are underappreciating in terms of how they can monetize their ad dollars. Coming up, were taking a lot more of your questions coming so keep them coming. We may answer them on air. Up next, are you looking for zen in your investments . Well tell you if you can find it in shares of lull u lemon were back right after this. Experience the joy of a bigger world 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. Save without even expleaving your house. Just keep your phone and switch to Xfinity Mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Welcome back to this special edition of fast money. Weve got a couple of questions on some of the biggest names in athletic wear. Nike and lululemon one viewer wants to know if this popular brand can outrun the competition. Take a listen. Hello, fast money. My name is jackson im from richmond, virginia, and i appreciate you taking my message. My question is about lululemon, lulu as malls open up around virginia, im noticing lululemon is one of the few brick and Mortar Retail spaces that have a significant amount of traffic. Theres an incredible amount of enthusiasm for the brand, and family in the middle of the country tell me the same thing so i would like to hear theres more upside to a stock thats had an incredible run. Karen, what do you say about lulu yeah. Is it better than the competition . No question. I dont think there is any real competition for them i was long lulu from the sort of low 220s to 300. Where very sadly i sold it i think theres a lot to love, just, you know, their ability to maintain margins, even during the coronavirus pandemic shutdown was really amazing. They have a great Online Business, which served them well, which will continue to serve them well. I wonder if they can shrink their foot print and maybe save on rent expense. Theyre just an Extraordinary Company and i think they will continue to keep growing i dont love necessarily the mirror acquisition, but lets give them the benefit of the doubt, because theyve done an extraordinary job with just about everything else. But it isnt cheap, it shouldnt be cheap its one of the premiere retailers out there, bar none. I wish i still owned it. I guess i could make that happen by buying some tomorrow. Its expensive for sure, but deserves to be expensive i think its good to own tim, what do you say . The acquisition was a surprise, but its that bolton transaction that gets them into this omni channel that people believe they can all the reasons karen talked about, the quality of the brand, and what people are doing. So, again, investing in new normal trends are people are sitting around their house trying to feel kind of sporty and doing a lot of it at home. The other big driver for lulu has been the growth of their Addressable Market i do mean men. Theres to question that they are having an impact in mens wear thats a big part of why the stock is rerating during the last three to six months the other day i did squawk box from home and i was wearing yoga pants on the bottom this on the top, yoga on the bottom, guy. Yeah. First of all, shut out to joe kernen, who i know is watching right now, probably in his lululemon, which the visual of that is not particularly pleasant but the valuation, 51 times next years numbers sounds expensive. Then they have 45 eps growth, so maybe its not that expensive. So to me that is a Lottery Ticket that will pay huge dividends for them as people work out and get in better shape in their lululemon stuff so i do think its brilliant the stock traded up to 325 i think in early june, pushback. Its got to close above 325 for the next breakout level. If youre trading it, thanks for the question, buy it above 325 or you look for a pullback in the low 300s lets get to the next question on nike here it is hey, guys, thanks for taking my call. My name is trevor from marietta, georgia. My question is about nike. At the end of 2019, nike was firing on all cylinders, and then coronavirus happened and created a lot of challenges for the company. Im curious as to what you think the stock will do throughout the rest of the year, and even lockterm, as well tim, what do you tell trevor in marietta . Trevor, thanks for joining us great question nike, one of the Great American brands look, the last quarter they just released about two weeks ago lost 51 cents, street was expecting down small so the exit rate on china sales was more or less in line, but people are watching those numbers. If you listen to the ceo donahue, he was basically very bullish on the medium to longterm. Thats where they sought to focus. Their direct to consumer business in a digital foot print is what theyre very excited in terms of gross margin. Theyre well ahead of schedule, targeting 50 . I think theyll get there. Thats part of what has made nike that much far ahead of the competition. The innovation here, here we are talking about it again in footwear this is what people needed to see about a year and a half ago out of nike. Thats what spurred a big turn around in the stock. 100 is a place to push through. It got above that, but barely. Thats a barrier to the stock. Can you like nike and lululemon, karen yes, i think you can. I think theyre similar in that theyre the premiere operator in their name with a good Online Business nike has a bigger Online Business as a percentage of sales than does lululemon. One thing thats similar also is that tim talked about margins. Even with the very difficult quarter that they announced in north america, they still had very good average selling prices so to me that talks about the strength of the brand and the short term is bad with things reclosing and also not a lot of sports going on. When you have big sports events, that obviously can be a driver for sales for nike all that having been said, though, they also are a premiere operator, and i think i dont know if its the back half of this year or next year theyll get back there i like nike, even right here i like nike. So heres the flip side in january, the stock made an alltime high, i think 105 or close to it. And by that march 23rd low for the Broader Market was the 60 stock. Then we ramped all the way back recently to 104. 5, 105 apparently, at least it looks as though we may have failed. Earnings are behind us, so we dont have a catalyst in terms of earnings. Now its a Broader Market game so the double tops scare me, the market scares me i think youre going to have an opportunity to buy nike cheaper at 98 or so. So i would be cautious here. Coming up, call it the elon effect how tess lla is changing the landscape for carmakers. And is all that ordering in going to help dominos and the big down move in the do w. Asmoney is back in two. 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. Welcome back to this special edition of fast money. Youve been watching us all week its no surprise that electric vehicle makers and suppliers are some of the hottest traders. Phil, a blast from the past looks to go public again yeah, talking about fisker. They made the karma way back in 2012, 2013, then went bankrupt Henrik Fisker has his own company. This is called the ocean that they expect to roll out in 2022. There is a report that fisker is in talks to go public. It would be an ipo with Spartan Energy acquisition, reported to be the company that would lead this deal, a 2 billion deal if that happens, it would not be a surprise, because it would likely be scheduled to the deal with nikala. This spoke has been red hot. Look at the market cap, when you look at those companies and their market caps, they have exploded over the last three months in fact, their returns over the last three months compare with the big three automakers, you would think they are cranking out millions of vehicles the return for the ev stocks over the last three months since april, up 400 to 700 . The big three returns over the same time frame, down 19 to 35 . We are calling this the elon effect what is the elon effect . They have had q2 deliveries that topped estimate their stock sup 233 this year and the ev demand is expected to grow not just for tesla but are expected to increase in sales over the next10 to 15 years. How much depends on who you talk to tesla reports its q2 results on july 22, and if it reports a profit, melissa, that means four consecutive quarters of being profitable that is the last key hurdle to be included in the s p 500, which as we talked about, and i know you talked about for some time, would add even more investors to the tesla base of shareholders it would be the Biggest Company to be added to the s p 500, and the s p 500 has 4. 5 trillion in assets index to it so could be a big boost. Phil, thank you. You bet we have a question on one of the most popular stocks on the robinhood app. Hi, this is darren from san jose, california as a new retail investor, i had a question about plug power. A friend told me about enlarge even though its down today, its doubled since finalizing acquisitions how good are these acquisitions and what can an effect can nikola have on a company like plug power lets dig deep we are colin rush over at oppenheimier. Great to speak with you, colin are you a fan of the two acquisitions you know, i am. When you look at the hydrogen spa space, plug is far and away the leader in terms of experience. They have over a billion miles of data on their system, where theres a compelling set of economics for their solutions. And so when we look at these recent acquisitions, theyre focused on cleaning up the Hydrogen Supply chain for their customers. So stream lining that, and reducing the cost in a very material way so it allows them to control their platform for delivery and logistics around hydrogen. Really is an essential piece of the strategy for Hydrogen Production so were gratefu fuful for that its karen. Let me ask you a question, colin. How big is their Addressable Market if you want to be really bullish on on it, where are we going to see revenues two, three years from now . The company highlighted a target of 1. 25 billion in revenue by 2024. 750 million of that will come from the mutual handling market, 250 million over the road market and then the other 250 million will come from the Hydrogen Business now, when we look at whats going on in the transportation sector, one of the most interesting areas is in the last mile and middle mile you know, vehicle transformation, were seeing different fuel sources leveraging off of different applications, and were seeing the Hydrogen Coming out of warehouses, where plug actually has, you know, a fair amount of infrastructure in place for fueling. Into new routes, new Vehicle Design for different applications and certainly its going to take some time, so we think that will take two, three years. But its very much under way and its being driven by whats going on right now colin, its tim thanks for joining us. Maybe im thick, but im still trying to understand why now for Hydrogen Cell technology i realize that having the infrastructure and the ability to service and fuel these cars is a big part of it. But this has been a long time in waiting. Has it been driven by the adoption of ev help us understand why were hearing about this now because it almost seems as if just as youre getting ed mania is only when you started hearing about Hydrogen Coming into play. You know, its an important question, and one that i think is sometimes misunderstood the actual motors in ed is highly leverageable for Hydrogen Fuel cell as a power source. Many of these vehicles are going to be hydride vehicles where youve got batteries but the basic platform, separate from the power source, is entirely common. So advent of growth and evs is enabling cross production for the Hydrogen Vehicles for the balance of the vehicles. And it really is offering up an opportunity for buyers of vehicles to diversify. Colin, last quick question here you got an outperform rating on plug and the stock is almost at 9 at this point weve seep this mania hit this corner of the market im wondering how much froth do you think there is in sort of this ev space . You know, its an important question, and something that, you know, were playing catchup on this across the sector. Stocks have moved so aggressively on moves that we have been bullish on and i think theres a couple of things one, the impact of low interest rates. Two, the fact that many of these ev and Technology Startups in the Hydrogen Space are fairly well capitalized so theyre going to have to go through restructuring and what thats allowing for is an opportunity for accelerated growth especially some of the bigger buyers in the transportation market its really an environment where you can see, you know, better than expected growth in terms of valuation, i think the market is figuring out whats overbought and whats ju underbought. Were expecting a very volatile trading quarter. Even though the cover has been better than expected, the selloff has been better than expected, and the recovery over the longterm is still uncertain for us so we are expecting it to be very volatile and to see some of these spikes and retrenches. Colin, thank you. Colin rush of oppenheimier guy, your bottom line on this . Darren, i think colin answered all your questions in terms of the fundamentals. So lets answer in terms of trading. You watched it go from 3 to 9, its an 8 stock if you buy 10 to 15 shares, then youre in the game and youll really watch it closely. I cant tell you where its going tomorrow but get in the game, start a position now barclays just downgraded a to be about put a 10 price target on it. Those are the things youll be seeing but you have to get in at some point. I apologize about flip barking stop it i think flip disagrees with you. Flip is speaking out. So because im calling for a teacher to answer my question, phil talked about the fisker spak lets explain that theyre special purpose acquisition corpse theyve been popular in the last couple of years. They are underwritten by an Investment Bank and the sponsor makes a fair amount of money on the structure. But in hot sectors like ev or cannabis, weve seen a sun of spacs get raise, were seeing this vehicle get more and more popular. But a lot of this is the function of the market were in. Yeah. Good point there coming up, it was another painful day for the Airline Stocks but does anyone on the panel see an opportunity to enter the space . Plus, what does Earth Science have to do with investing . A total blast from my past about wh o sck watnetoill do in the future stay with us 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 welcome back to a special edition of fast money. Our panel of traders have been tackling your questions all wee long aaron wants to know about a stock experiencing more than a few head winds this is aaron from new york i would like your outlook on trading boeing stock, given this pandemic and airlines canceling new orders and deliveries for the foreseeable future, and also boeing still facing challenges from the aftermath of the 737 max debacle. Thanks a lot thank you for your question, aaron. Tim, what do you tell him if aaron in new york, i think you stay the course on boeing, but it theres going to be turbulence sorry for that but i think the recertification of the max in october is the first, you know, real step to seeing the stock begin to rerate theres no question airlines have a very difficult path to fulfilling anything close to their order book, or you see a handful of them going back and recutting their deals. So i think its still very unclear. The liquidity dynamics for the company for the most part have been taken off the table i think theyve raised a lot of capital and built a decent buffer here. Longterm, this will emerge as the commercial and defense giant that it was. Again, their defense business is not dead its still very, very strong i like boeing. Im a shareholder at higher levels i havent jumped out and i expect to stay in for some of this recovery. Karen i hear what tim says, and i agree i guess in the longer term but i sort of look at the pain of who their giant customers are. If you look at whats happening in the airline space, i dont think the stock pullbacks reflect how bad things are the stocks are up a lot from the bottom i like to look at the debt debt investors are much smarter than equity investors. I look at the debt of Something Like a delta it is trading at somewhat distressing levels so boeings customer base, if they are in as much distress as i believe the airlines are in, its going to be very hard for them, for a while. I dont know how long a while is, so for me i would stay away from boeing. Lets go to our next question, a tweet from brian on twitter who asks safer in quotes guy . Yeah, i dont necessarily know that there is any safe place. But what you have working for you now is most all of the airlines have pulled back significantly from the move we saw a couple of weeks ago. So if delta, for example, if you go back to may and watch the show, youll know the day they announced they reduced pilots from 14,000 to 7,000, is the day the stock closed higher. We talked about buying it for a trade. It went to 35. Now you see where it is now. So at least its giving you an opportunity. Im not convinced the worst is over, but at least youre not buying these at levels where stocks were trading at three weeks ago. Still time to send in your trading questions. So tweet us. Up next, shares of chipolte trading in at alltime highs and as we takea break, look at the stocks that have been most traded on robinhood over the past month 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. I know thatnce amazing 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. Welcome back to this special edition of total request of fast money. Weve hit tech, ath leisure, transportation, now the restaurants that got questions on big names delivering in a question about chipotle from the air force academy in colorado its jason from the air force academy in colorado springs. My question is about chipotle. The First Quarter online sales grew by 81 and now accounts for 26 of their total sales theyve been cooking up new highs and the stock price has doubled since march. My question, is it too late to get in on this deal . Thanks and blue skies. By the way, chipotlegot a new street high priced at 1450 from analysts today. I think this is the second question that we have gotten from the air force academy, guy. Theyre huge fans listen, i love the academy i grew up in the shadow of west point. Its fantastic if you go back and watch mad money, i think it was june 2 that jim interviewed the ceo of chipotle and told the story, and this is a lot like dominos. Its become a Technology Story yes, its expensive valuation, but they have the Earnings Growth to back it up plus the technology, plus i think they partnered with grub hub at the end of june theres a lot going into the stock, i believe on the 22nd although its had a huge run, you stay with the name they were well positioned going into covid, the app and all that, karen. What do you think of this one . I mean, the growth has been nothing short of extraordinary theyve done a tremendous job. Digital, they nailed it. That was huge for them and i think that was just the beginning. I think well continue to see that all that having been said, at some point, valuation matters. It hasnt here and i guess deservedly not, because they just continue to put up enormous numbers. But 100 times earnings, 58 times earnings then in 2022, 45 times earnings. And so to me, its priced for perfection it deserves to be a huge premium, because they have delivered. But i feel like in a hot market like we have had, if they trip a little, theres a fair amount of down side, so you might have a chance to enter it but i would have said that, maybe 400, 500, 600 points ago all right lets get to the next question hi. This is gregory in los angeles big fan of fast money. Also becoming a big fan of Dominos Pizza as a chef, more of a stock than the food but im wondering, its kind of the perfect concept. Delivery in the middle of the pandemic, no restaurants to sit in just question whether the value is there or whether its overcooked, pardon the pun and congrats to guy and dan on the setup. Really enjoying that thanks for tackling this one guy, what do you tell chef gregory . I love first of all, these questions are fantastic. I tell him, stock has bounced off the lows, it is a Technology Story. I think its going to test at 397 level that we saw a month and a half, two months ago its not i dont think its as expensive as chipotle, which i guess you have that going for you. And mel, i know you know this, i worked there we got the video to prove it show it. You looked very adept at putting that sauce on that dough, guy yeah, i like the music that accompanies it you know something . Im not going to dignify that with a response. Just so you know i dont know if that makes it more attractive as an investment, karen, or less attractive, the fact that guy once worked there and made pizzas that people actually consumed yeah. Were mixed on where guy has worked ups, having a tough time lyft having a tough time but actually dominos is cheaper than chipotle, this is built for a pandemic, which seems to be going on longer than we think. You know, the one negative thing is maybe College Campuses arent what they used to be, less crowded goingexpensive yeah, dominos is much more than chipotle. And obviously its valued significantly cheaper. But they are offering a digital presence, offering brand loyalty. At one point, Major International expansion. I like this story. They clearly come out of this a stronger play, even though they were crushing it before that their earnings in the third week of february, stock launched higher, and has basically taken all that momentum back and i think its going higher. Coming up, time for a few more questions, and these eson get a little personal. So dont miss it 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 to fast money. Youve got questions, weve got answers. The traders had questions, and we have answers. Remember james murray from phoenix, arizona he asked us about alibaba and we were wondering about his musical style. We took a look at his page, and hes a fan of soft rock and presumably his band would be of that genre so there you go. Okay. Guy and tim and determine for yourself weve got to get to a question here from justin on twitter. Is gw pharma a buy tim, well go to you, Cannabis King the biggest position in my etf. The recent trials on the ms and the specificity have been almost additional value that people expected remember, its certainly their cab cabbinoid treatment for childhood epilepsy thats proven to have an enormous impact. Were seeing them hold ground. And then they have broken through in europe and had better penetration than people expected so this is a very real company that is doing interesting things on the botanical front its a stock you should own. Guy 130 has been a huge level of resistance for quite some time i think it goes through. They just got that reclassification in the uk Goldman Sachs is positive on this name. If you want to be in the space, this is the one name you have to own. Lets get to the next tweet it comes from a familiar face, at least to me a familiar face so that was ninth grade or eighth grade i dont remember exactly, karen, but hes got a good question well, how lucky for him he got to be your teacher i think talking about enjoying those babies, i think when you first got pregnant is when to buy tesla apparently so it was cooking at the same time now i mean, its just gone parabolic, as i understand we always talk about here scarcity value and pure play value, which it has, of course. But that doesnt mean buy it at any price no matter what i think youll get a chance to buy it later youll never have a better student than melissa lee, though, no matter what guy, what do you say . See, i would push back and say you must have been an impossible student in High School One of those kids knowing all the answers constantly raising your hand for every single question you know, the annoying student that i would stay as far away from as possible my sense, i dont know, maybe what is his name, mr. Suchman, maybe he can clear that up on another tweet or another video do you have advice . Do you have advice for my earthscience teacher . Yeah, ill give you the advice you want to hear. When elon musk at 700 in may said the stock was too expensive, that selloff lasted a day. The stock has doubled since then its impervious to bad news. Theyre flying with some sort of air cover. So stay with the name. I loved Earth Science next tweet comes from another room raider, guy, this one is for you. What is the color in this room, do you know . Linda is here. She might know the color its a lovely blue it is a blue. It is a blue. Look, shes we dont have enough time. Were going to get the benjamin moore, the thing with like 9,000 palladium blue. The color wheel thank you, linda, for your contribution to our special fast money edition finally, this is a tweet from alex tim, do we all get along in the after hours . Amazingly, we have even more fun when we get off the set. So this show is such a great format, though, because i feel like we are able to hang out and talk with the viewers. But the answer is yes, its kind of like a family when youre not at the family dinner, they talk about you. So show up karen yeah, we do really like each other. You know, we have some fun outside the office, but guy never comes, never i dont know why thats right. I like him a lot. Its too bad. Lame. Listen to that we are family. I knew that song. Thats the mad money people playing one of the top three worst songs of all time. Thanks, guys, that was one. Another super sized edition tomorrow nhtig shark tank is up next. Youre first. First to respond. First to put others lives before your own. And in an emergency, you need a network that puts you first. That connects you to technology to each other and to other agencies. Built with and for First Responders. Firstnet. The only officially authorized Wireless Network for First Responders. Because putting you first is our job. 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. Expenarrator tonight on shark tank, theres more Holiday Cheer than ever. I brought a very special guest all the way from the north pole. [ laughs ] hey our gifts to you. Ah, presents. Stephens it can remind us of the comforts of being a child and make us feel good. Oh, my god, im in love. Oleary im deserving of one, and ive been really good this year. I actually think hes a pretty nice boy. You might want to recheck that list, mrs. Claus. [ laughter ] narrator first into the tank is an entrepreneurial elf who wants to bring christmas cheer to everyone. Hey, look at this. Hey whoa yeah what a happy sight