Twist. Walmart teaming up with microsoft in a bid for the popular social media app both stocks rallying to new alltime highs on this news. Julia boorstin has the details. The news keeps coming on this one. Reuters just reporting tiktok engineers were told to make contingency plans should it need to shut down u. S. Operations they are preparing for various scenarios including a forced shutdown telling us they are simultaneously developing plans to make sure u. S. Employees continue to get paid on the heels of any outcome. Walmart is teaming up with microsoft to buy tiktok. Walmart telling us, quote, we believe a potential relationship with tiktok u. S. In partnership with microsoft could add this key functionality and provide walmart with an important way for us to reach and serve omni channel customers as well as grow our Third Party Marketplace and advertising businesses dan ives tells us, quote, we believe microsoft buying ticktoticktok would be like Christmas Morning coming early for investors if navigated the right way, it could reach a valuation in the 200 billion area code a deal could be imminent a source tells me that one reason that he resigned now is he was excluded from the more senior deal talks. Sources tell me that mayer did not want to run a division at microsoft. Hed have preferred the Greater Authority hed have had if an Investor Group had bought out the company. So we look at this news and we think, what, tim . You thought rerating for walmart . Walmart has been on a path to some type of ecommerce or tech platform multiple probably since they went out and bought jet, flipcart, the discussion of walmart plus, going toe to toe in ecommerce with amazon. You throw this in there with the ability to meet a younger demographic and channel and generate advertising revenues. In a world where we are rerating Companies Based on hybrid multiples, why not walmart i think this is huge news and i think walmart is going higher. Theres not a lot of analysts notes out yet. But one analyst note caught my eye. That is the notion that if walmart is now trying to switch from a transaction based model with a subscription based model with its sort of prime competitive offering, then the value of a competitive audience like tiktok goes up for walmart. Thats perhaps why the deal makes a whole lot of sense thanch i think even without that subscription maybe thats a wealthier walmart customer either way, its good. I just went back and looks at some of the parts for amazon obviously we know aws much higher margins, growing rapidly. Taking that out of the equation and looking at the breadth of amazons business, they were giviing it a 3 1 2 ton sales multiple if they can narrow this gap in any way at all, i think we could see substantial upside for walmart. I have to give this Management Team credit. They have been slowly, methodically, changing the business its definitely not your fathers walmart anymore im long i like it. I think the only risk of buying on a day like today is what if microsoft doesnt end up getting it then the stock will be down tomorrow if they do, i think theres more upside in the shortterm and the longer term. After alex sherman broke this news on cnbc. Com walmart came out and confirmed it i thought that was maybe a good sign that this deal was progressing, it was moving along, that they are confident enough to say, instead of saying no comment on rumors, that we will comment on it, in fact. Yeah. It is encouraging. Good for karen and tim, by the way. A lot of people love this name i thought valuation has been a concern. To tims point about rerating, you think about it, walmart has gone down this avenue in terms of media before with varying degrees of success this makes a lot of sense in terms of shopable ads, interactive commercials, those types of things. Everything you saw in the New York Times article today makes a lot of sense you have to ask yourself whats the right multiple on the 6 of earnings theyre going to make next year. I think analysts are going to start to crunch the numbers and youre going to start seeing people with 180200 price targets on this name, i think to tims point. Kudos to the people who have been steadfast on this name. Kudos to walmart, which is absolutely pushing the envelope. Its no longer your grandfath grandfathers walmart. Do you feel comfortable enough surrounding what that could mean for walmart, to say, you know what, walmart is worth more now i get the Third Party Marketplace. I get the growing the ads business i think if youre looking for this to add the multiple or rerating, youre going to be waiting until youre blue in the face i agree with everything everyone has said i just dont think youre going to get that rerating at walmart. I would be not a seller of it, because its very hard to sell this name because they have so many levers to pull. But youre not going to get anywhere near close to multiple for aws. Id be a seller of it eventually a polite way of saying tims wrong. I didnt say that you said if youre waiting for a rerating of walmart, youre going to be waiting until youre blue in the face. Ive been wrong before. I hear what steve is saying. You know, my point is, first of all, youve actually seen walmart rerate almost 20 on just this news whether this happens or not and the walmart plus news. The walmart plus news came out in the beginning of july the stock rockets that day and has been digesting the whole ecommerce strategy and taking on amazon for the stuff that amazon has been taking everybodys lunch for. Theres no question that walmart is rerating. How much and in what timeline, i dont know but the partnership with microsoft is not an insignificant part of this theyve been Strategic Partners for a few years now. It makes a lot of sense theres a complimentary nature here with walmart using their cloud and azure et cetera. If you want to talk about ecommerce volumes, right now amazon is 39 of the ecommerce business in the United States and walmart is somewhere around 5 or 6 . Walmart closing that gap is enormous theres no question walmart has taken the Technology Transfer from jet we laugh when they paid 3 billion for it but it actually got them going in the right direction. Flipcart to me, im not sure what the right multiple is for that they paid 16 billion but that also gives them a huge marketplace. Karen, you obviously think youre not going to be waiting until youre blue in the face on this one if youre holding it. Walmarts color is blue no, i dont think well be waiting until were blue in the face it has been rerating already i think one other potential side effect that i dont know how to think about it if this happens and if walmart is able to generate the sales as they hope, i was thinking that target is probably a little bit hurt by that, not that theres not room for target there is i like target too. Im long target. But i could see some of the target customers sort of being picked off to become walmart customers. Lets switch gears the fed announcing historic change with Monetary Policy today adopting an average inflation target that would allow inflation to run higher than normal for some time. Take a look at the Market Reaction stocks moving higher today with the s p 500 closing at another record high, the dow briefly going positive for the year. The tenyear yield going well above. 7 . Jo jim, great to have you with us. Thanks for having me. The rally continues this is a green light for the markets, right yeah. Well, it isnt a red light for the markets, lets put it that way. The fed said out loud what weve always known that is specifically that Employment Matters more than inflation in their dual mandate. If they dont believe were at full employment, theyll let inflation run a little bit hotter than they would normally. Thats where that inflation number comes in, because employment takes the rule. And they added a third mandate which is Financial Stability but we always knew that was the case as well too finally the other big thing the fed did was they kind of took away a lot of the mechanical rules. Out is the taylor rule, out is the phillips curve in is more human judgment at the fed as to where they should be moving rates bottom line is theyre not going to be moving rates for any time for the next couple of years it should be supportive of the market, but we kind of new that yesterday too. They just said out loud what we already knew. Jim, its clear that obviously chairman powell doesnt buy two by fours at home depot or go Grocery Shopping we talk about lumber prices now for the last couple months if youve gone to the supermarket recently, youve seen it. There is inflation out there they just choose not to acknowledge it is this them probably seeing inflation is right around the corner and once again moving the goal post . And to that end, is this market just on Cruise Control yeah. I mean, youreright about the inflation argument i think were going to see inflation return, probably not until next year because theres a little bit too much slack in the economy right now. They seem to be more focused on employment yeah, if they let the Inflation Numbers run too much, then youll see it in Interest Rates. Interest rates will start to shoot up a lot then well be into a situation like we were in the Fourth Quarter of 2018. Remember the fed put the Balance Sheet on automatic pilot was the word they used and they were going to reduce the Balance Sheet. The market didnt like it and two weeks later they dumped the whole thing and said, no, well be patient and flexible. They run that risk now too if theyre going to ignore inflation too much, if lumber prices keep moving up and we get inflation, then the fed might be forced to say, okay, forget that, well now respond to inflation because the markets dont like it. Thats the immediate risk they could have with this policy should inflation return. Jim, its karen i was just looking yesterday at the real tenyear which is negative, versus the nominal price. So we have inflation there its been moving up steadily since march to about 174 we know its over two that the fed will let inflation run but how far over two do you think they would let it go before they felt they had to do something . Thats an interesting question lets say they let it go to 2 1 2. The last time was 28 years ago if they let it run to 2 3 8, we havent seen those numbers in 14 years. So probably around 2 3 8 to 2 1 2 is the upper end of where they would go. But thats a 14 to 28year high in the market. The market could see, were at a 14year high in inflation and if we continue to move higher from there, theyll start to really worry that things can get out of hand n hand thats why its risky for them to let inflation run that hot. Where the markets are right now and expecting inflation to rise sooner rather than later in terms of the market expectation, which is almost never at this point, which sectors do you think do the best under this sort of scenario as we see Interest Rates creep higher, it may not be technology that should be necessarily the beneficiary of this next phase of the fed yeah. If inflation is going to return and thats going to be manifesting itself in higher Interest Rates, then basic materials, the cyclicals, things that would do better in a stronger nominal growth economy, nominal meaning real growth and inflation together, those would probably be the sectors that would benefit from it. Youre right that technology is more about real growth financials could maybe benefit from a steeper yield curve, but higher Interest Rates would be kind of a drag on that theyve got a whole host of other problems as well id look at basic materials and cyclicals and things you would expect to do better with higher levels of growth in the economy. Jim, great to see you thank you. Steve grasso, youve sort of been in jims camp for a while in terms of which sectors to be in yeah. I think jim hits it on the head here like today when you heard powell speak, the things that led were financials, real estate, staples. Those led. If you look at the year to date performance, the xlk up 34 . The xlf is down 18 . So i dont think, to jims point, youre going to get long lasting rotation into where we all think its going i do feel like the market is a little toppy here. Ive been a bull when you look at the overused saying trees dont grow to the sky, i think were due for that 1520 pullback in the overall market so i think the market has bit off a little more than it can chew following powell into this hole of never ending upside. Guy, i know you flagged a move in the vix yesterday, which followed the s p 500 higher. That continued today its interesting. Yesterday was a bday. I dont have a letter for you today. I thought it was interesting yesterday that the vix sort of held that 21 level that tim had flagged. Today the reversal on the vix today i thought was really something to keep an eye on. I think, to steves point, this move in the vix, we might look back a couple weeks from now and say this was that thursday at the end of august when the vox sort of showed its hand. I do think the vix rallies from here and i dont think its coincidental as we get through both conventions now and now we have some highway until the election it makes sense in terms of that calendar, the situation that steve just pointed out in terms of a meaningful correction to the downside. Coming up, gap shares pulling back from after hours highs. Well bring you all the headlines from the quarter straight ahead. Later, the 5 test that turned into a 15 billion gain for abbott labs. At cdw we get youre always looking to modernize. Yeah. Im just not sure Office Drones were the way to do it. [ laughing ] drone voice lol. Our market share looks good, but. Drone voice where are the bagels . Well, cdw can help you modernize your company the right way, with a scalable infrastructure from hpe, making you more efficient and secure. Great. Oh. [ drones buzz angrily ] lets find a different room. For transformation that works, you need Hewlett Packard enterprise and it orchestration by cdw. People who get it. What happens when switch to Xfinity Mobile . Well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with Xfinity Mobile. Call, click or visit a store today. We have an earnings alert on gap, the stock pulling back from its after hours session highs, still up 3 , though. Its all about online total net sales were down 18 year over year, but ecommerce sales nearly doubled old navy, the standout as usual, with more Standalone Stores net sales were down 5 , but online sales surged 136 they were able to better do that cu curbside pickup. Comps rose 12 also getting a bump from online banana republic, thats the lagger consumers turning away from fashion and work wear and toward athleisure athleta saw net sales up 24 of sales between athleta and old navy were in that athleta gear area. The strength of the performance was due to being able to meet the market they nearly doubled ecommerce because they were able to pivot to this digitally led culture. She said back to school is going to be a lot longer than usual because of all of the different situations between some areas going back in person, some areas going back online. But she said she continues to see this momentum in the back half of the year melissa. Tim, you were excited about this welltimed citi call. They upgraded gap shares to buy on monday ahead of this quarter. That was 20 ago in the stock. Same store sales comps up 13 . Overall the fact that 290 mall stores or stores that were unprofitable, the rationa rationalization is it closed the reason Digital Sales are better is because of what weve gone through people are not going to malls. Guess who losings . Its the mall operators. Its not the gap stores who have already suffered through the pain theyre going for capital life partnerships whatever theyre going to do with kanye will certainly add some value guy adami alone is probably keeping athleta in business. Old navy is a stalwart thats always been strong. His love of yoga pants can not be denied. We are getting some more headlines from the Conference Call saying second half Sales Performance fuelled by athleta and old navy not a surprise. No fiscal full year outlook on sales and earnings because of the uncertainty. What does gap still need to do to complete this turnaround . I would say looking toward the future, continue to strengthen ecommerce, like the numbers we saw top and bottom lines. Also we really want to see what athleta is doing i think as mentioned, the partnership with kanye in 2021, i want to see how consumers react to that. Is there still the possibility of a breakup of the company in some shape or form . I think possibly. Youre looking at the different brands that they have and obviously some spinoff value there. I like what they did this quarter. If we continue to see this, maybe we keep all the brands together and house them under the same roof, but there is a possibility of that. How much do you think kanye could actually add thats a great question this is one of those big, big kind of options that it took it was a thing thats a risk, but i think theres high upside. We look at somebody thats really a genius in the fashion space. I think he can bring that over to gap, not only on the ecommerce but the consumers and eyeballs he draws. Fashion is a very fickle area. When you hit, you hit big. That could happen here. They continue to not pay rent this quarter how do you think that plays out with the landlords i think its really interesting to watch what theyre doing as they make that shift. Im watching that closely as well thanks for your time. Thank you all guy, are you on board gap i have a pair of those yeezys. Do you really of course i dont of course i dont. The only reason i even know what a yeezy is is because my daughter had a pair on i said what are they then she told me how much they cost and my eyes started to tear on my Conference Call, you heard me in the background talking to my daughter. She just got a package from athleta. Theyre all over the place if they pull the rip cord on banana republic, which they should have done a while ago, this sets up for a stock that should be trading 22. Go back last summer trading between 18 1 2 and 19 for a long time thats probably where were going to stay for a while. But it closed above 19 and i think this is off to the raises. I agree with that 19 level the february high. Were sort of in the middle of no mans land. 14 1 4 is your base on it. The conversation of the breakup value is whats going to keep this stock trading higher. If that leaves the conversation, then this stock trades lower youre talking about a total enterprise value of over 12 billion with athleta and old navy im going to give you one more ges down 47 this is a sheer example of people betting against guess stores look for that one with a 22 Short Interest to rally on the back of the gap stores. Its up 5 today. Well watch that we have a lot more fast money coming your way. A rapid test rally well dive into the deal that has shares of abbott labs soaring today. Later, one of the big winners in the stayathome trade peddling higher where its going from here 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. Weits totally not theg a way tsame without you. Were finally back and cant wait until you are too. Universal orlando resort. Buy now and get two days free at the parks. Restrictions apply. Welcome back to fast money. We are following big new developments out of the white house on abbott labs and its rapid covid test reporter President Trump will announce tonight that the administration is buying 150 million coronavirus rapid tests from abbott labs in a deal thats worth 750 million. Now, the fda just granted abbott emergency authorization for these tests yesterday. Abbott says theyre going to cost 5. The results will be available in 15 minutes and that they can make up to 50 million a month starting in october. Now, the key innovation in these tests is that even though you still need a nasal swab, you can see the results on a device the size of a credit card. One line means youre negative two lines means youre positive. You dont have to send it back to a lab, which is where you have seen a lot of backlog in testing so far the white house has been using a different rapid test also made by abbott. That test could come under fire for not being very accurate. In fact, the fda had to warn consumers that the test tended to produce false negatives abbott is saying this new test is better and it says it can detect positive cases with a 97 accuracy rate. President trump will be making this announcement tonight when he delivers remarks to the Republican National convention from the white house our polling shows that even though President Trump is still trailing democratic nominee joe biden in our swing state polling, he is seeing an improvement in her Favorability Ratings as consumers and voters find that their concerns about coronavirus are starting to ease back over to you there are a lot of ways to go with this. For abbott, at least, its estimated that the emergency use approval of this test by the fda alone could mean 750 million in incremental sales. It is sizable for abbott at the same time, theres a political side of this i hate to politicize anything to do with the coronavirus. But the fda granted emergency use authorization of this test wednesday. Trump is going to announce this the next day at the Republican National convention during his keynote address. Steve grasso, where do you go with this . As you said, you could take it a bunch of different ways i think this is going to help the republicans get a bump, as we were just talking about, as far as the swing states are concerned. If you go on a stock by stock basis, abbott is still a buy, up nearly 30 year to date. Then look at the airlines, then look at the cruise lines, then look at anything within the economy. You dont need a vaccine you need people to feel more secure going to malls, going to areas. If you could have this type of a rapid test, this builds confidence for the overall market, which helps the president in a full circle response to this. Its concerts, its restaurants. So many swaths of the economy find immediate life if you can rapidly test patrons before they go through the door, karen. Yeah. Of my reopen trades, the one that was up the most today was livenation, so concerts. Still 15 minutes to wait before you get into a concert might be too much, but i think the idea of, all right, well be able to know who has it and who doesnt is huge. If i think about the announcement, so 50 million by october, that would be 150 million then, does that mean we really wouldnt have this fully implemented until december i dont know if the production is scaled up to the point where 150 all of a sudden can hit the market like that presumably this would go to areas like Nursing Homes first it wouldnt be to concertgoers initially, but the more critical areas of the economy here. But the notion that this is Technology Based on pregnancy Test Technology is there and it works and its scaleable, thats gamechanging, tim its also the gift that keeps on giving. People will test over and over again. So in some sense theres a recurring revenue stream i do think this is not only a gamechanger for abbott, but i do think this is that for people having confidence going into airports and flying and traveling and oneoff situations i think this is a very, very important development. I think on some level it could be seen as more important than the vaccine, at least in terms of getting people back into their routines i think weve had some sense of this all week and i think why youve seen the bid to Airline Stocks theres been multiple announcements but i do think this is a very important dynamic. Guy, youre surprised the market has gone up even more then if this is the key to the economy. Its interesting. Nothing surprises me at this point with the market, so the answer is no the thing about the run weve had into this and, you know, abbott labs has had a pretty monstrous run. This was an 80 stock two months ago. In terms of abbott specifically, its still not a cheap stock by any stretch even when you back that in. If youve been fortunate enough to own this, i think you take money off the table not because its a gift. It also traded seven times normal volume on an update if youve been long abbott, i think you pull the rip cord. Youve seen selloffs in moderna, gilead and others names that have forayed into this my sense is youll probably see it with abbott as well beyond the supermarket how the fake meat company is trying to get its burgers on your dinner table. Check out the Dollar Stores in the doldrums today. Dollar general and dollar tree both beating expectations. Do you still buy these names, guy . I mean, i thought it was a blowout quarter. Etfs for Dollar General was crazy. I think operatioperating margin 12 . Their inventories are under control. It all points to a company thats firing on all cylinders, which is great, except that the price action today concerned me a bit. It traded up to 206. 98 and closed around the lows of the day, which is concerning one day is not a big deal, but this is one of those things if you come back a week or so from now and the stock is trading 194, were going to point to today as being the reversal. Youve got to give it a day to let itself breathe out or figure things out but the price action today on what was almost go times normal volume has me a little bit concerned in a name weve all liked for quite some time. Tim i think Dollar General are going to continue with the buybacks the momentum continues into the third quarter. Guy talked about the margins i realize a 96 move in the last two years is extraordinary i also look at the rerating of the entire Retail Sector especially those that have free cash flow. I love going in these stores its clear guys been shopping there for his kids thats how he can afford yeezy i think the multiple is expensive relative to itself i thought you were going to say its clear guy was shopping there because of his tie. That was too obvious. Steve grasso . Can i ask a quick question . About these yeezy things apparently theres like 10,000 pair of these yeezys based on what . The world is nuts. Thats absurd. I feel like thats like the simpsons old man shouting at the cloud. Anyway, grasso, on Dollar Stores yes so im surprised we didnt go that natural way of doing a would you rather im going to do a selfwould you rather Dollar General is the way here kudos to guy i think he was the first guy was on this really early, this trend Dollar General is really doing their push into ecommerce and through grocery. The stat thats unbelievable to me is 75 of the u. S. Lives within five miles of a Dollar General. Theyre opening up stores. Theyre becoming more efficient. Theyre closing down ones that dont perform. I dont need to be in dollar tree you can wait for that pullback that tim and guy were talking about. But once it does pull back, i think Dollar General is safe for a move higher. Coming up, beyond meat beefing up a new direct to consumer initiative. All the juicy details ahead. Plus peloton pedaling higher on a big upgrade. [ thunder rumbles ] [ engine rumbling ] [ beeping ] [ engine revs ] uh, you know theres a 30minute limit, right . Tell that to the rain. [ beeping ] for those who were born to ride, theres progressive. [ beeping ] at cdw, we get theres thats why cdw experts, partner with apc by Schneider Electric to keep you up and running with a full range of Edge Computing solutions, including the new lithium ion smartups u. P. S. , with two times the battery life and cloud enabled remote monitoring. So you can deploy data center like resiliency, with a performance and certainty you expect, and the ongoing support you need. For i. T. Infrastructure and uptime, you need apc by Schneider Electric. An i. T. Orchestration by cdw. People who get it. Welcome back to fast money. Beyond meat grilling up some major gains as they go beyond the Grocery Store. Beyond the Grocery Store and online beyond meat shares are still in the green after hours upon ending the regular session up nearly 5 1 2 , this after the Company Announced its new ecommerce platform. That new platform allows customers to buy beyond Meat Products directly from the companys website and also acts as an online only specials the direct to consumer rollout allows beyond to really tap into the skyrocketing demand for fresh Meat Alternatives in retail he also says that channel is up 140 since march with the pandemic shutting down so many restaurants, beyond has really made a big push into retail, launching value packs this summer to better compete against traditional Meat Companies for price sensitive customers. But its competition is doing the same thing kelloggs announced its launching plant based ground meet through its incognito line also meatless sausage, lets not forget impossible foods just raised 200 million recently six months after it rolled out its direct to consumer site earlier this summer. For alt meat lovers, this is paradise with the array of choices. There should be some price pressure here, which could be good for the consumer. If they were smart theyd launch the skip to my loo line, if you get my drift. The competition is there remember when you came back in the spring, this was an 85 stock. I told you all the nasty things it did to my constitution, et cetera, but i said i think the stock is going to test the high we saw in january which was 132. Now its held this 130 level for a while. I think this is the next leg higher it gives me no joy to say it but i do think the stock is a buy at these levels. If nike can have an on fire direct to consumer platform and model, why couldnt beyond meat . Its products have been very much been in demand, karen. It could. They do have the three other channels, retail, restaurants and Food Service Restaurants and food service are a little bit challenged right now. This makes perfect sense i think it really successful, but to me a lotof success is priced into this stock already its only going to get more competitive. At 130, its just a little too rich for my blood. Coming up, Goldman Sachs turning the wheels on peloton. And later on mad money jim is speaking with the executives of rky,p and William Sonoma theres advanced research, modeling and refinement. Constructing funds that dont simply follow an index. But explore new terrain. Helping you fill portfolio gaps. Connect to client goals. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. For a prospectus you say that customersrmation. Make thelets 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 400 off when you buy the new Samsung Galaxy note20 ultra 5g. Welcome back to fast money. Weve got an earnings alert on ulta up double digits after beating wall streets expectations despite same store sales falling 26 . Ulta saw online sales surge more than 200 . Karen . Yeah, i mean good for them. They talked about the evolution the last quarter of online and they were able to gear it up i think theyre going to try to get their Jacksonville Distribution Center online even quicker to help them be able to do that. Im really angry at myself with this one we talked about it at 205 august 20 they had weak earnings and it was very clear that ulta would be the beneficiary of the Department Stores inefficiency in the makeup space. Im crying that i do not own any of this. Big mistake. Kudos to them. Check out shares of peloton pedaling higher after Goldman Sachs bumping its target from 8 to 96 saying the homeworkout stock could be way bigger and more profitable than anyone is pricing in guy, you buy into this call . Yes you know the answer is yes because weve been talking about it forever whats transpired over the last six months has given them tremendous tailwinds theyre not going away i know and you know and karen knows that we are peloton people i might ride with them later tonight. Good for Goldman Sachs i think the stock goes higher from here. Goldman sachs isnt the only one getting bullish on peloton options traders are also riding higher bonaw bonaw bonaw bonawyn. Pretty significant on the back of the goldman news the options that expire tomorrow are implying a 2. 5 move today or tomorrow. What jumped out to me was about 6600 of the tomorrow 70 calls traded those were a bit of a tug of war all day between buyers and sellers. The stock was trading between about 78 and 63 on average they traded about 135, putting your break even at 71. 35 expect a little bit of carryover tomorrow retesting the highs steve grasso, what do you make of peloton here when you look at peloton, you have a rising 50day moving average at 63. 5. Goldman put that 96 price target thats roughly up about 3637 i would be risky if youre playing straight equity, you risk about 10 to the down side to gain that 37 i think its a good bet, but how much of this has been demand being pulled forward or as goldman says just a rationing off of the acceptance curve. Im not so sure and i dont think the market is so sure, but theres definitely buyers that are waiting in line for this one. Tim they can hold their margins but at what price . Im not really sure. I do think that the haves of covid are the haves in most of the trades that have worked. Gyms are opening up around the country or some have it would be very interesting to see where the stayathome dynamic is there are people that will never go back to a gym and there are people that cant wait to get back to a gym. I think thats going to weigh in on the price bonawyn, good to see you. Likewise. Coming up next, weve got your final trade thats why Td Ameritrade designed a firstofitskind, personalized education center. Oh. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now youre binge learning. See how you can become a smarter investor with a personalized education from Td Ameritrade. Visit tdameritrade. Com learn lets take a check on shares of workday, up by almost 12 here better than expected earnings here after the bell. Cramer is going to be talking to the ceo tonight of mad money. This will continue to be a big trade in tomorrows session. You see a star studded lineup tonight with jim time for the final trade let us go around the horn. We have a little bit of time you can expound on your final trade. Yeah. I could take the whole thing, as you know, but i wont. Walmart is a story i think were going to continue to talk about. This rerating is not going to be overnight but they continue to take market share from amazon and deserve some piece of that valuation. Steve grasso . We talked about it earlier and we all touched on it with abbott labs. This is a gamechanger i think for all of the reasons that we mentioned earlier. And you dont need the vaccine this is a shorter time horizon that were looking for this. Its really the biggest payoff in airlines. Spirit airlines, a name that ive been in for a while, look for these airlines to continue to move higher domestically facing thats where you want to be in the airline space. Karen finerman . I sold half of my kodak puts today. Theyre options, so we see some time decay but also i think, im hanging to the rest because i think the robinhood traders will get bored if theres no news with this one, because they look at some other bright, shiny thing. Im hanging onto the rest. Im semiing halling off of my k puts. Guy adami somebody on twitter there dmd me. He said he has these sneakers that he wants to display on our show anyway, citibank i think youre going to start to see analysts raise numbers based on what transpired today in a number of Different Things citi too cheap that gs etit done. See tomorrow mad money starts right now my mission is simple to make you money. Im here to level the Playing Field for all investors. Theres always a bull market somewhere and i promise to help you find it. Mad money starts now hey, im cramer. Welcome to mad money. Welcome to cramerica other people want to make friends. Im just trying to make you some money. My job is not just to entertain but to educate and teach, put it in context call me 1800743cnbc or tweet me jimcramer six months in, and the pandemics collided with business in ways that we could never have anticipated including today where the do