Transcripts For CNBC Fast 20240703

Good the chart master will make his case for why these two health care losers are ready to make the move from doghouse to the p penthouse. Im melissa lee, coming to you live from studio b at the nasdaq on the desk tonight tim seymour, karen finerman, carter worth, and guy adami. Uber posting its biggest stock drop since october 2022, after reporting a surprise loss in its latest quarter, saying that ride bookings came in below expectations s shopify plunging 19 , making today its worst day on record. The Ecommerce Company forecasting sales growth for the Current Quarter that would be its slowest in the last two years. And they werent the only earnings reports that raised red flags. Just yesterday, disneys cfo saying they are seeing evidence of moderating demand for travel. Mcdonalds last week warning consumers arediscr discriminating in elevated prices and then, theres this the looming threat of socalled phantom debt created by the rise of buy now pay later Juniper Research estimating that by 2028, customers will owe 700 billion globally in these installment payment programs so, with the pressure of still sticky high prices and a mound of debt coming due, do investors need to brace for a rude awakeness when it comes to the stocked tied to the consumer are we seeing the start of that right now, guy people will say we cherry pick negative stuff, and, you know, there was an old saying, the best time to have a coaching moment is when things are going really well. The stock market, things are going well so, its a good time to bring up things that can go wrong and you mentioned mcdonalds weve been doing the show over 17 years, you never heard mcdonalds say the things theyve said in terms of their consumer but this started a year and a half ago with the Dollar Stores talking about their consumer trading down and now were starting to see it on the higher end, as well now, youll say, mastercard and visa are not going to cover it of course they are that actually makes a lot of sense. Transactions, in my opinion, do not speak to the health of the consumer it seems like were seeing it migrate, the troubles, the pressure to a higher end consumer and starting to see that right now when disney says that its customers are starting to rethink, then you think, ell, who can afford to go to disney and we saw it in lvmh, a lot of the beauty and cosmetics world, weve seen it in some of the aspirational spirits world we heard it from taiwan semi, whose stock dropped 6 at the end of april because they talked about end consumer demand for pcs and some of them were just generic chips have an appetite i sat on a roundtable, Steve Liesman does this was cnbc, and this was probably two weeks after visa gave earnings, and ultimately, look, their bottom line is, our consumer is stable. When you heard from the food service companies, guy referenced what mcdonalds had to say a lot more cautious, and different places where you are seeing that consumer break down, so, whether its Consumer Credit that we talk about all the time thats at record highs, the savings rate thats burned through covid, you have to be concerned, even when there is a a dynamic with jobs that really is very much favoring the consumer i think its a mix, thoep i think, if you are doing Something Better that the customers will still come, right . So, if we look at nike, they havent been, right . So, that goes to the point of the consumers tapped out. And the same for starbucks, mcdonalds on the other side, maybe this is a little bit higher demographic in terms of income, but look at chipotle right and so, theyre doing something right every single time and i look at on versus nike, as well, i mentioned that, but hoka, gap stores, even, turning it around. You could imagine gap stores not able to do it and yet they are so, i think, if you are if you are doing something right, the consumers still there, theyre just a little bit pickier. Look at william sonoma. Down 20 billion market cap, almost as big a performer as chipotle while the space, if you look at the s p 500, obviously dominated by chipotle, mcdonalds and starbucks, on a fiveyear base, just before covid to present, that sub industry is up 40 versus the s p up 80 its a major laggard making fiveyear relative lows to the market and doesnt look like theres anything thats going to fix that. Right so, its so hard to figure out, guy. Very difficult to figure out but with the buy now pay later, what we know is that this debt does not get reported to credit agencies throw another trillion dollars yeah. So, thats why the term phantom debt comes into play, because it doesnt really get tallied anywhere when we hear about auto delinquencies, credit cards, this is not coming up. No. I think i think u. S. Consumer debt in aggregate is over 17. 5 trillion throw that in the mix. And you can do the math. Over 18 trillion now and the problem with that now is, well, the number problem, its not least of which, a lot of the Credit Card Debt is at 2 or so, which is a Staggering Number and weve talked about the number of people, you know, how many people have, you know, 400, 500 in Emergency Savings out there. Its not that much 1 in 6 people, i think, are food insecure it goes on and on. But then youll hear, you know, politicians talk about the great economy. And through the lens of the stock market, one, which is not the economy, and the lens of the unemployment rate, which is below 4 , but you know, ill say again, the revisions that we continue to see with these job numbers, its going to catch up at some point. So, it is concerning, but were saying this against a back tdrop of and an s p is near its alltime high. The whole nonsense about higher for longer, in october of 2022, tenyear yields were 4. 3 and here they are at 4. 45. Were up, like, 18 basis points in a year and a half yes, we moved it aggressively this year, but these are not high rates period and so well, commodity inflation commodities are a small, small part of the economy. Well see. My hunch is, again, lower rates and ultimately that reflects the slowdown thats probably coming. We heard some bullishness when it came to the bank ceos, they were pretty confident about the ability of the consumer to continue spending at this point. Yeah, they were and theyre seeing credit quality thats a tiny bit worse, but a tiny bit from pristine highs that we havent seen maybe ever they dont seem overly concerned about that the banks have rallied, i know jpmorgan is now a little higher than where it was when they announced the earnings that was so disappointing, so, they dont seem overly concerned. Yet. Its with a bit of irony that the banks actually have rallied off of a base in october where i think people thought credit was a very big deal. And it was a consumer real estate dynamic, Regional Bank dynamic, but i do think people were just expecting, as they often do, and they should do, i guess, historically with the banks, lets price in those losses. Lets put in the reserves on our own. And i think that is part of the Success Story of the banks is that people realize creditwise the Money Center Banks have such a diversity banking model that higher rates are better for them. We would have had a chance to hear about cracks from Money Center Banks in the consumer we have not. Certainly was not the issue around the earnings season for these guys potentially hear about cracks from the earnings that are coming up. Walmart, home depot next week. Which ones are you going to key into walmart has always been an interesting one in terms of the read on the lower end, but the higher end, which are migrating to walmart thats whats most interesting to me. The percentage of people whose income, i guess, you know, 100,000 is not the same as it was ten years ago. However, i think its over 65 of walmarts customers have an income of 100,000 or more and that number is, to me, its fascinating, and its been growing over time. So, walmart, to me, is an interesting to tell us people are migrating to walmart home depot is its own animal without question and, you know, if we pull up a quick chart, it has not traded particularly well over the last year or so, so maybe that whole that foray into whatever you want to call it, home improvement, you know, people buckled down, going to home depot maybe that bloom is off the rose yeah, i mean, walmart is obviously because of its size, because its a consumer staple, and it does speak to low end, high end, and it speaks to one of the astute management teams, period, in corporate america, in the world, how it behaves here into earnings is very important. My hunch is its full, and if i were long, id hedge it in some way. Well see. Lets delve into the risks of buy now pay later. Loans made through affirm, kla r rna, and afterpay. Those companies dont report to major credit bureaus, making them harder to track and harder for economists to account for in their projections. For more, lets bring in ted rossman. Ted, great to have you with us are the fears about this sort of phantom debt, are they overblown . I think its a legitimate issue. Its interesting how the delinquency rate for buy now pay later has been so much lower than people have projected theres been talk about, oh, theres going to be all these delinquencies affirm just reported, and their delinquency rate of 2. 4 is considerably lower than the credit card delinquency rate of about 3 so, i actually think that thats been a silver lining, i mean, theres no doubt that sometimes people can get into trouble with buy now pay later and overspend, they could with credit cards, as well. But late payments have not been as big of a deal as people have feared is there any researchrarch o consumers feel its doable to pay off that slice, but not pay off their credit card . People like the builtin light at the end of the tunnel of buy now, pay later. So, they know how many piment p for how long some of these providers are going much longer, maybe six months, a year, two years, sometimes even longer than that, and sometimes now with interest. I mean, some of the providers, like affirm, it could be interest free or it could be all the way up to 36 . So, i think theres a lot of varment there. In general, though, i get the sense that consumer demand is very much there, and people like this as an alternative to credit cards. They like knowing exactly how much they owe, for exactly how long the average credit card rate, we should mention, is close to a record high. Its 20. 66 , so, thats something that people are using buy now pay later as an alternative. Ted, its karen thanks for being on. Has there been a migration for who the original buy now pay later customers were and maybe they were maybe in a little bit better financial position, and now has morphed into somewhat of a different credit cohort conventional wisdom is that buy now pay later is for young people without much credit and without much money, because, you know, in some ways, its almost like a debit card with financing privileges its shortterm, its not this big open ended credit line its easier to get, shortterm weve seen some movement upmarket, like affirm had a Famous Partnership with peloton for awhile thats more of kind of the henry set, the high earners not rich yet. I would say in general, buy now pay later does still skew younger, lower income, lower credit quality i think its interesting that Companies Like affirm have physical payment cards now that you can use in person, like at the grocery store, the gas station, and turn that into a buy now pay later plan its not just online commerce anymore. Since these loans arent reported to credit agencies, do we have a sense of how many consumers have multiple buy now pay later loans across various platforms, and what that might look like in a scenario in which the economy may not be as good and employment may not be as high there are a lot of repeat customers, and loyal fans. I do think more credit reporting is needed. I do think it would be useful for buy now pay later lenders to know if youve fallen behind on a plan with one of their rivals, and also, i think that would be useful for a credit card lender or a car lender or a Mortgage Lender theyre not there yet for a few reasons. But i think a surprising incentive for people to pay on time is the ability to continue to use these plans i think that carrot has proven to be more useful than the stick approach, which is, punishment, you know, dinging your credit, which is rare, unless you go to collections, and late fees are not as much of a thing even in the credit card world, those are about to go down dramatically because of cfpb action i think the incentive of continuing to use this has been remarkably efficient ted, always a pleasure. Thank you its amazing that 2. 3 is the delinquency rate for well, for now and it i think karens question is a great one. Think about when we started hearing about buy now pay later, and affirm and it was all during covid, right . People sitting at home with money coming in, getting paid by the government we gave away 25 gdp we were buying anything we could. I think cyclicly, you have to watch out for that at the same time, these firms use very, very good data to pick the customer who theyre lending to that is interesting and square, right, cash app, we saw that with them, lemonade the other day. Right i believe it is possible to have a better handle on who your customer is, and but maybe psychologically, i do actually believe there is something to it, this four payments, however you choose yes you pay this off and you get that done and you leave that 20. 6 average, you know, rate that youre paying on your credit card balance there. Forget about it. American express last week, or earlier this week, made an alltime high. The stocks been unbelievable. Even with that valuation wise, its less than 16 times. Karen talks about it all the time its unbelievable franchise, wouts question and their quarter was good Loan Loss Provisions were better than what we were expecting. If you start to see Loan Loss Provisions like American Express tip up tick up in a meaningful way, thats going to be a huge tell well, just one thing, i mean, when i think of buy dont pay now, theres that comic strip from the 1930s, id gladly pay you tuesday for a hamburger today. Popeye. Whoa, whoa. Did you know that or somebody tell you in your ear no, no one in my ear. It was a great its a joke, because its kind of a risky game youre playing. Who wouldnt want why wouldnt mel not know about that i know you cant take ownership of that you are trying to curry favor, but you thought the same thing i thought. There anyway. How did she know that and he became secretary of the treasury wimpy did no, buy now pay later never mind all right, meantime, check out the comeback in shares of netflix, closing just a hair off where it was before earnings last month the stock dropping 9 immediately after the report where it said it would no longer report subscriber numbers. Shares have gained more than 12 from their postearnings low guy, youve been watching this one. Yeah, no, ill tell you, tims talked about it, as well the selloff sort of made sense i thought wed run into earnings, i thought wed make a new alltime high and then soft. What didnt scare people wasnt the quarter. It was the, were no longer the stock sold off were right back where we were now, you ask yourself, is it going to go blowing through that prior alltime high, or once again, at 33 times, have we overextended netflix is fascinating well, you have the drop in gap, news related, now you fill that gap so, it would be characterized as a rally to a difficult level so it will be stuck i think so. Okay. So, i i think the way they sort of set that up, we will no longer give subscriber data, in the future, i think is the way you have to do weve seen companies do this a couple of times. I think its ultimately to their benefit. We care about how much money they make. And theyre doing okay. Right and then i think just the sort of the end of the streaming wars in that theyre the obvious winner, theres got to be consolidation, which means that content costs will go down for some, for some things, not sports, we see that, but and theyre just in such a great spot what we didnt hear from them was some real focus on costcutting and margins, which, i think is the next phase of this story its a company, as you say, karen, the economies of scale and the operational leverage in their model is extraordinary, and we havent heard about what else theyre going to do, whether its gaming, et cetera i think it goes higher. Coming up, afterhours action after the break. Arm holdings, airbnb, robinhood and instacart reporting. Well bring you the details from the quarters next. Plus, teslas roll downhill continues. How the selfdriving issues could be more than just technical. The details when fast money returns. This is fast money with melissa lee right here on cnbc new projects means new project managers. You need to hire. I need indeed. Indeed you do. When you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. Visit indeed. Com hire and get started today. Welcome back to fast money. An earnings alert on airbnb dropping despite reporting beats on the top and the bottom lines. Lighter than expected guidance lets go to seema modi with the latest shares lower in afterhours. Room nights expected to come in flat the Company Really blaming tough comps and the timing of easter, and a lot of focus, mel, on pricing on the call. Airbnb saw average daily rates grow 3 , that is lower than marriotts 4 . And the ceo made the point that growing supply actually inkreebss affordability, and bl give travelers more Cost Effective options compared to hotels and how that over time will drive bookings. Hes really laser focused on Getting Hotel loyalists to switch to home rentals he said, if we can get one traveler to stay in an airbnb, that would double the size of our business he said the key is to improve quality and reliability of the product. Other talking points on the call, melissa, include Artificial Intelligence and his keen focus on expanding overseas, specific markets like mexico, brazil, and china. Right now, were seeing shares down 8 . Seema, thank you. I was looking at my calendar, april 2025, next year, i can tell you today when easter is next year. Its arent you talented wow. When is new years next year and yet as you mentioned, why is it an excuse . Why is it an excuse that out of nowhere, even though its been in the calendar thousands of years i that is not a great reason. But you know, the stocks had a big runup. Its not cheap theres just not a lot of room for any kind of miss even though its not a gigantic miss karen hit the nail. First of all hes a smart guy. I mean, come on. Even if its in the prompter that hes reading from, maybe you shouldnt what, the timing of easter . Yeah. Maybe you should say, thats a dumb thing to say. It goes up there, there were three fewer days in the quarter. As if they just disappeared as the quarter was happening. That is maddening but yet, they do it over and over its pull up a chart. Its had a really significant run and valuation is in the way on a guide that wasnt particularly great so, it was sell off, what are we down, 8 now . It will find its footing, but its going to take a couple weeks. The sobering reality is, this is still below its ipo price 68 bucks in december 2020. First print was 165, and here it is at, what, 160 tough ride lets get to trip adviser. That was a massive pullback today. Its worst day ever, falling 29 after it lowered guidance. Vacation booking company did beat earnings expectations, posted inline revenues. And it had received at least one takeover order, it said a special committee has ruled out a sale at this time. The proposals are not in the best interest of shareholders. That was the major Sticking Point in terms of the decline that we saw. Yeah this is more of a Capital Markets dynamic. If you look at the pe of the company, you know, its not in the stratosphere its not cheap and after the run it has had if you want to broaden this more to travel and leisure, weve also heard about pent up demand starting to wane a little bit. And i think thats a dynamic thats going to weigh on margins, which seems to be the biggest story here they highlighted the trip brand, which had the weakness, and within that, hotel meta searches searches for hotels were going down i i mean, i guess its helping airbnb to an extent. Its a little different story, but its obviously in a similar vein but its had a huge Double Bottom carter can look at this, back in 2020, made the same low in 2023. The stock more than doubled and here we are, giving half of it back, which all of this makes a little bit of sense. Stock typically trades, i want to say 2 million shares a day, it will trade 30 million tomorrow, maybe thats your maybe thats your capitulation day. Just a little bit to the m a part of it so, you had a lot of interest there, so, theyre out regardless of price. The event is over. Out. No matter what it also does make you think, why couldnt they come to a deal was there could they not enough, right . They couldnt get enough value, so they thought. We dont know, but you always go to something bad right coming up, results still pouring in shares of robinhood, instacart, and more on the move we have the details ahead. Plus, the state of semis a warning from intel sending the group lower today. And arms latest report adding to the pain. Can the sector get back on track . Youre watching fast money, live from the Nasdaq Market site in times square. Back right after this. From morgan stanley, were ready for whatever gets served up. Dude, you gotta work on your trash talk. Id rather work on saving for retirement. Or college, since you like to get schooled. Thats a pretty good burn, right . After last months massive solar flare added a 25th hour to the day, businesses are wondering what should we do with it . Bacon and eggs 25 7. Youre darn right. Solar stocks are up 20 with the additional hour in the day. [ clocks ticking ] im ruined. With the extra hour im thinking companywide power nap. Lets put it to a vote. [ all snoring ] this is going to wreak havoc on overtime approvals. Anything can change the world of work. From hr to payroll, adp designs forwardthinking solutions to take on the next anything. Welcome back to fast money. A check on how the markets close out the day. The dow jumping 172 points, notching its sixth positive day in a row and its longest winning streak this year the s p virtually unchanged for the day. The nasdaq losing 0. 2 shares of instacart lower despite a beat on the top and bottom line. Cheesecake factory high er and klaviyo up shares of Elanco Animal Health notching its best day ever the company hiking its Profit Guidance for the year. And shares of tesla lower again today. Reuters reporting that u. S. Prosecutors are examining whether the ev maker committed securities or wire fraud by misleading investors and consumers about its selfdriving capabilities i dont know funding secured thats all two words. Tesla, funding secured i mean this is a company this is what were going after them for i mean, come on. I this is not look some headline risk on the stock, it makes some explanation why 1. 5 , possibly, afterhours, this and that, but you know, the issues for tesla are related to deliveries, theyre related to profitability and theyre related to china and demand. The fact that this is a company thats walked a very fine line and ill leave it there in terms of what theyve communicated to the market, whats actually been going on, my guess is, i wouldnt be able to get away with the same stuff. Robotaxis earlier than expected, thats against an oversold condition in the stock when they reported that bounced the stock put that chart back up and youll see, and im not playing the role of dan nathan tonight, Carter Braxton worth might be, but its, again, every rally in the last 3 1 2 years, and some have been significant, have been sold off in a meaningful way so, you have a series that continues of lower lows and lower highs. And i think that will continue to happen. Next stop this is a pair of twos for me after you rally 40 and give back afhalf of it, thats a loto volatility. Coming up, shares of arm holding maybe down after hours, but theres at least one big name semi exec who is still a fan of the company whatnvidias ceo had to say about the stock, and Chris Rolland joins us to talk about the semi space, when fast money returns missed a moment of fast . Catch us any time on the go. Follow the fast money podcast. Were back right after this. Sandals jamaica sale is now on with rates from 199 per person per night. Visit sandals. Com or call 1800sandals sandals jamaica sale is now on with rates from 199 per person per night. Visit sandals. Com or call 1800sandals if youve ever grilled, you know you can count on propane to make everything great. But did you know propane also Powers School buses that produce lower emissions that lead to higher test scores . Or that propane can cut your energy costs at home . It powers big jobs and small ones too. From hospitals to hospitality, people rely on propanean Energy Source thats affordable, plentiful, and environmentally friendly for everyone. Get the facts at propane. Com now. Welcome back to fast money. Lets get to an earnings alert on arm holdings. The stock plunging 7. 5 after the companys fullyear forecast came in below street expectations it comes after top and bottom line beats what do we make of this here arm is a its a very mature company, right . Probably around 18 years, whatever it was, prior to going public it trades prior to this move was 100 billion market cap, on a company thats done effectively 3 3. 5 billion to 4 billion y point is, theres no Revenue Growth and it trades at a huge multiple price to revenue. We had this conversation when they went public i asked the question, but this move to me, at least, makes sense on that metric alone lets get more with chris r rolland. Great to have you with us. One issue is that estimates going into this quarter, really racheted higher throughout the quarter, but were you one of these analysts who raised egs m estimates going on i actually thought numbers are going to be higher than the ones that reported, so, probably so, what is your stake on the stock now . Its a super high quality company, but just the bar they have to hurdle every quarter to justify that valuation is just super stretched. Right speaking of high bars, i mean, to sort of switch gears here, i mean, nvidia will set the bar for the entire industry when it reports, and that wabar is super high to justify the multiple so, what are you expecting here . And what do you want to hear that stock is the biggest victim of sell side racheting estimates. We used to just dial in, you know, but the streets moved numbers up so high, theres really no kind of sentiment test anymore. So, its becoming a much more difficult stock to call into earnings krischris, its tim. It seems like theres been an ability to attach a very attractive multiple to a stock we know the run its hard, is question, is it going to be at the same pace. And with that much of a lead on competition. Its hard to put a multiple on it right now, because we really dont know where Revenue Growth is going to stop, or where its going to kind of reach cruising altitude. Its a great lineup into 2025, and were putting in growth for 25, as well, so when we reach cruising altitude, ill be able to give you a better valuation for nvidia speaking of, is youve been youve been very bullish, the a. I. Sort of narrative from the very beginning. I remember one of the early interviews, probably a year ago, or so, you called this p premordial, the beginning of the formation of life. Cambrian. Yes, nice so, are we at a place where we are overhyped . Stanley druckenmiller has said that i mean, whats your take on where we are right now its an amazing technology, were still coming up with applications, were still coming up with use cases. Theyre serving those use cases, but clearly, valuations are investing way, way into the future around a. I. Right now. But thats okay. Well grow into that i think, eventually. You think okay its karen. So, let me ask you, you know, we heard druckenmiller talk about, you know, down the road, it makes sense, the valuation right now doesnt. It would seem to be very hard to know when to get in and out, so, is your strategy just sort of stay the course and put up with potential volatility a. I. , for me, right now, has openended upside, and i seek that out, and so it might break, but until then, im playing the upside whats your take on whats going on with intel and whether its worth a shot . Its a very, very challenged company, and theyre trying to spend themselves out of a hole and that is a very difficult strategy they need some foundry customers, they need them today. They dont have them today and so theyre going to slog this very expensive path so, whats your rating on intel at this point . Were we are in neutral on intel, and we are sitting here waiting for a catalyst all right chris, always good to hear from you, thank you thanks, melissa b bye, guys. What is your take on intel . The catalysts is not waiting to get to the cambrian period of a. I. Great word by chris. Really a fantastic word it is, im glad he had a chance to put that one back out there. But intel is to far from that, but its even though pricewise its more expensive than nvidia, its priced for where it is. This thing is unloved, its underowned a lot of money is going to be thrown at it, and that means you probably have an opportunity here, but ive been wrong for the last 20 its so tempting, always, to say, and i do it all the time, this is cheap, its been down so much so bad its good. So bad its good. No . There was something strong that collapses thats a so bad its good, versus something thats long and protracted decline thats death so to speak. And you stay away from that. Oh. Death. Why are you laughing i asked you earlier if somebody was in your ear about popeye . I know about popeye. We wear these things. He just said to me, does anybody know what the cambrian period is it lasted nearly 50 million years. It was the most intense period of evolution ever right exactly so and i think that chris even said it was precambrian at the time of the oh. When we did the first interview. The more you know. The more you know, right here. You learn so much here on this show popeye, cambrian. Coming up, robinhood shares higher, but the trades platform staring down the barrel of potential s. E. C. Probe details next plus the chart master is telling the technical tale of stocks that are so bad they are good no pair of twos here back right after this. Meanwhile, at a vrbo. When other Vacation Rentals arent what theyre cracked up to be, try one where you know what youll get. Welcome back to fast money. Weve got an earnings alert on robinhood. Shares pulling back from afterhours highs, after reporting q1 results. The Conference Call under way. Kate rooney has all the details. Hey, kate. Hey there, melissa. Were here at robinhood. Deposit growth and expense discipline were the big stories for robinhood. Net deposits were up 44 transfers from every major incumbent Brokerage Firm expense discipline, another major theme. Ebitda margins expanded by 14 points no guidance, but an update just now on the caught about april. Robinhood saw 5 billion in deposits in the month. A called out some strength in trading and crypto for the current month and Current Quarter. Crypto, speaking of, made up about a third of transaction revenue for the quarter, it was up 232 . Options and equities, meanwhile, up 16 and then 44 they addressed a wells notice they got from the s. E. C. The agency says robinhood is offering unregistered securities similar to what theyve claimed about coinbase the ceo says that its a disappointing development. He says, we firmly believe consumers should have access to this asset class they deserve to be on equal footing with people all over the world. He said they are gaining some market share he pointed to free trading and the cfo said they have operated the crypto business in good faith said theyve been conservative when it comes to listing coins and some of the other services they offer they dont offer lending or staking. Vlad tenev is going to sit down with us on last call around 7 30 eastern look forward to that, kate. Just curious in terms of the transfers from the imcome bent brokerages, is there a sense where they are then put . Is that because there was an interest, the pickup in crypto, or are they going to other places that robinhood wants to diversify . Yeah, they pointed to that diversity in deposits. 50 went to the brokerage side of the business. Around a quarter or so went into Retirement Funds and then the rest went into some of the high yield cash accounts. So, executives did address that on the call. They said its not just crypto driving the quarter. Thats very cyclical and tends to rise and fall with crypto volumes. They pointed to credit cards, subscription offerings, and retirement accounts, which is really not what a lot of people think about when they hear robinhood, but they really tried to delineate between some of the volatile crypto business, which was up, you know, more than 200 , and some of the retirement account side of things, so, they tried to say it was diversified and not just crypto. Kate, thank you kate rooney. Not just meme stock trading anymore, or bitcoin trading. Thats for sure. Monthly average users up 16. 1 . Arpu, tim. Average revenue per user, guy. Thank you 104. The street was looking for 93 thats up, i think, 35 year over year. And carter may or may not say, this is, like, a threeyear bearish to bullish reversal that i think will continue to the upside are you going to say that i i like that idea its a big old base, and the big base . Long in the space see youre all going down the road the bigger the base what does that have to do with anything . Were talking about the base if you really want me to go down this road, they sang a song called big bottoms. That has nothing to do with this and megan trainer, her song all about that bass. You have what i think is a bearish to bullish reversal of robinhood. Do you remember the lyrics from big bottom . Yes i dont want to hear them okay. Also, might be some sort of we might get slapped with a fine rob reader is a fan of the show hes watching right now. Im sure. Theyre launching a credit card next week, robinhood is, which is sort of interesting, in terms of going into other businesses to stabilize the base. The aforementioned base. I give guy and dan credit for being early on this move the question is, what is the special sauce . I dont think its a credit card offering i think its probably their ability to access new products i think the stock is not expensive. Im not sure theres a lot left to do. All right, coming up, lines, drawings, annotations, and judgments. The chart master is going to the penny and laying out the technicals on a few names he says are so bad they are good. The stocks to watch, next. And heres a sneak peek at the cramer cam jim is chatting with the ceo of dutch bros on the back of last nights results. Catch the interview at the top ofheour t hon mad money. More fast money in two grandpa im the richest guy in the world. man 1 i have time to give. man 2 i have people i can count on. grandma and a million stories to share. vo the key to being rich is knowing what counts. And theyre all coming . Those who are still with us, yes. Grandpa whats this . Your wings. Light em up gentlemen, its a beautiful. Day to fly. Welcome back to fast money. Health care and bio tech have underperformed the Broader Market over the past year. And the chart master has his eye on a couple of names that have been particularly weak. Gilead and humana have seen double digits over the past 12 months are these stocks so bad theyre actually good . Lets turn to the chart master for the take carter again, as a concept, before we look at the charts, if something is coming from an alltime high and is pulled down aggressively, news related or not, thats the concept of a ricochet you bounce like dropping a ball. But if youve been going down and down like cvs for years, thats not so bad its good death death, just bad lets go to two Big Health Care names. One is bio tech, this is an 80 billion stock, and you can see the major decline over the past from 52week high. But the point here, and this is important, that 27 decline, lets look at the longterm chart. That selloff from 85 to essentially 65 leaves you down to the penny to a multidecade trend line so, my thinking here is, take advantage of that selloff to play for a bounce. Same circumstance, but different stock. 40 billion managed care, humana in this case, down some 45 plus, also from a 52week high where does that leave the stock . We look at the longterm chart, youll find that this selloff, so bad its good, leaves it down to the penny to a multiyear trend line and so, that is a circumstance that appeals to my eye playing both for a bounce. In the managed care space, there was a circumstance that caused a lot of them to just have that huge drop. Thats right. Are many of them so bad theyre good well, some have bounced, like United Health care has come up godlike stock. Yes in your plug, right it bounced. But this one, im thinking, is next, humana, and well see about gilead it is in your acronym its plug. Its plug or gugulp you could have gone with that. The big gulp. That could have been very catchy theres still time okay. Gilead . Yeah, they reported in the middle of april. The stock has the volatility in gilead is historic. By the way, full disclosure, the ceo is a georgetown grad, we called him dday in college, class of 86 thats neither here nor there, but they report earnings the stock is now at the lower end of the spectrum. Almost to a person, analysts maintain their price targets anywhere from 85 to 105, on a discounted cash flow basis that tim talks about, so, i get the volatility theyre doing things in oncology i think you can own it here. I agree their antiviral portfolio and their pipeline, and i think what theyve made acquisitions in oncology over the last couple of years, and there was a time, those were real big drivers for the stock. I think its interesting here. Carters analysis makes it more so, because the valuation is very attractive. How about pfizer, carter . How does that look asking for a friend. Yes, thats well, thats the circumstances, long and established downtrend. And they often have countertrend rallies, which fail typically, and thats exactly what its recently done. I would resist the temptation to buy. Okay. Youre already in, though. I am. And so you are. Yes tims pfizer. And mine, yeah. You can have it. Well its its a combination of, i think, you priced in, you cant keep pricing in the fact that their paxlovid business has dried up this is a company thats made 20 billion plus in acquisitions they think are going to start repriming the pump for 25 to 30. What would make a stock thats been in a downtrend stop going down and actually start to turn someone buying it. So, i want you to go first, i want you to go second, ill be right behind you, meaning, you want someone else to take the risk, and wait for it to bottom and base okay, so, just wait we already bought it. Okay, you have to buy more. Final trades up next. In any business, you ride the line between numbers and people. Whats right for the business and whats best for everyone who depends on it. Solving todays challenges while creating future opportunities. It takes balance. Cla cpas, consultants, and wealth advisors. Well get you there. Final trade time tim . Altria going higher karen xle xle, the h in helm. Silver starting to bounce guy tims pfizer. Thank you for watching fast. Mad money starts right now tim pfizer. Thank you for watching. Mad money starch right now. My mission is simple. To make you money. I am here to level the Playing Field for all investors. I promise to help you find it. Mad money starts now. Hey, i am kramer. Welcome to mad money. I am not trying to make friends. I am trying to make a little money. When youre trying to get your arms around the market,