Debut week following its ipo, but if history is any indication, you might want to sell. First, we start with the wrath of amazon, prime day kicking off in four hours. The kpaeccompany has been takino prisoners especially in retail spice as it continues to dominate Retail Stocks feeling the heat, sinking 2 today, hitting their lowest levels in three weeks amazon announced its own version of the geek squad, costco falling after a downgrade from bmo, says sales arent enough to combat the Amazon Effect walmart under pressure and the Department Stores like macys, well, theyre Department Stores like macys. You look at costco, look at best buy, if you are a value investor, guy adami, do you nibble on any of the names that got smacked around and banged up today . In absolutely great having you the one name out of all the names is costco. They have the ability to raise membership prices 90 retention rate if id go anywhere, it would be costco macys will be interesting karen can speak to that, at a certain point, just their real estate holdings, alone, are probably worth macys a look weve said it all along, amazon is killing everybody i dont think nearly to the extent we want to talk about look at these stocks for example, American Express. 52week high today or thereabouts. The stock has been on fire for the last two we discussed that. Mastercard, visa, thats the why you play retail. Ill throw one more name out there, home depot which hasnt traded well the last week, week and a half if theres anything thats ham d amazon proof, its h. D. Many people thought costco was the amazon proof if 6 comps arent good enough, what is . Steal the stock reacted poorly. Underlying fundamentals which seem strong and the stock reaction which is a much more transitory thing. Sive to me. Maybe a little expensive going in when i think about who can take on amazon, walmart has the wherewithal to do it, they seem to want to do it now, whether or not theyll be successful i dont know at 16 and change times, its not that crazy expensive at all. But i think walmart, to me, is such a head fake for people people thought they got their ecommerce game down and people, in fact, the stock was up 23 before pulling back effectively on the day they announced the whole foods acquisition. Walmart is having trouble getting twoday delivery meanwhile, amazon, everything theyre doing is getting there faster an faster youre at a place where you have the entire space of consumer retail, staples especially, where youre overstored, you have a pace where i think walmart to me at 16 times, i think you get a lot cheaper, actually i think today is closed on the lows, closed before the lows set on the amazon whole foods day. I think people who have thought they can pull off ecommerce have to spend a lot more on capital and i think, again, walmart, to me, is the target on its back. Speaking of retail, we have a news alert tonight on jcpenney making executive changes Courtney Reagan has that news back in our Newsroom Court . Hi there, scott here just crossing after the bell, jcpenney announces itses cfo is stepping down from his position effective july 11th. Hes going to stay on in advisory capacity until august 7th until a permanent replacement has been named Andrew Drexler will step up to fulfill the cfo duties on an interim basis. Ceo Marvin Ellison thanking him for his work, been with jcpenney as cfo since march 2014. Also saying the timing of his departure coincides with the demonstrated Sales Performance improvement in the second quarter. We continue to expect or report cig kachbtsignificantly improve results this quarter versus the First Quarter and look toward to sharing more details on august 11th that was slipped in there at the very end of this resignation announcement back to you, scott. Court, thanks so much lets continue this retail you mean you want to stick jcpenney all together . Consequential, but i think its sitting on a lot of debt. Yeah. Billion three market cap and 4. 3 billion in set, 12 billion in sales the last 5 years. It speaks to whats going on with amazon. I can bring up sears if it makes you feel better. Heres a company that should have gone away five years ago. Thats what amazons doing right now when you think about how theyre bing to force consolidation. You know, you guys talk about costco, think about their membership fees. I mean, there was news in the last week, amazons got 85 million possible prime accounts. That speaks exactly to what that mote was at costco for so long and why it traded at a premium multiple to the space and to the market for so long so when you see a stock like costco come in at 17. 5 in a month, month and a half or so, the grounds moving below investors feet right now and happening very quickly ill just mention that, you knows, think about this today. I mean, i know Morgan Brennan was out, prime days tomorrow, you know, prime air, all the Different Industries that amazons disrupting is going to disrupt payments, going to disrupt delivery that sort of thing right now were focused on the demise of jcpenney, that sort of thing. Its going to seep its way into a lot its so funny, karen and i before the show looked at each other, i said, why didnt amazon buy fedex . Karen was thinking of u. P. S. Or the other way around it was a crazy line i mean, it wouldnt be so, so shocking its a very big deal, either of them north of 100 billion for u. P. S. And 70 billion or so at current enterprise value i dont know, would you wake up and be shocked if that were to cross the tape yeah, no, i dont think a lot of people would. Those two companies are good businesses that trade at a market multiple. Yeah, so think about this yeah, so think about if amston were to buy them, amazon trades at, whatever, and they trade at a reasonable multiple. Fedex has never been more on top of their game. These guys are creating earnings, becoming more efficient. Tnt acquisition means their margins are doing better i think theyre better equipped to tackle the amazon world could they resist one . Who knows. Part of the point here, if you look at the costco move, as you pointed out, the doubl doubledigit slide the stock has taken then the downgrade, if youre going to buy one of these Retail Stocks, you better have boxing headgear on youre going to get smacked. Youre going do bet smacked around even a name people love like costco gets hurt. I agree with that, scott, you go back to a name like Restoration Hardware which has fallen on hard times but oer t over the last month and a half, rallied 50 in about a month we had a long discussion about the opportunity back then in r. H. Point is, a lot of the retail names are going to give you an opportunity to buy them and trade them i happen to think macys at this level might be one of them. To me, Home Restoration is bidding in the Home Improvement space. I think thats the one place that has a defensible quality clearly about it well see where it belongs from there. Retails troubles aside, our next guest raised his target for the s p to more than 2,500 by the end of this year tom dwyer is the man behind the call good to see you. Good to be here. You told me your forecast for this year and next were in your words, conservative. Today you pulled the trigger yeah, we did statistics the show, im hearing a discussion about the yield curve, how it was flattening and saying something about the markets. We did a study, when the yield curve flattens initially in the cycle to where it did a few weeks ago, 100 basis points using the sixmonth and tenyear spread and look at it from that pointto inversion, you get and credible rally you get over 20 you get a really good rally. Historically, i brought the stats so i can make sure i them right. Opinions not as good as you get a median gain over a year and a half of 11 . 34 34. 7 until the end of the bull market the idea that the bull market is over because the ten years coming down and the yield curves flattening is totally inappropriate. Whats going to take us to the targets . Earnings. Earnings heres what we have. Weve had 2 to 2. 25 gdp growth over the course of this cycle. The reason, wevesynchronized gl recovery that happens every cycle theyre pulling away the punchbowl. The earnings sidekicks in. To timmys point earlier, if you want to look at a business segment thats ramping, its construction. But, so, i agree with everything youre saying the global synchronized recovery is very encouraging for me at all, but if anything, the Central Banks activity the last couple weeks means the yield curve is not flattening. Its steepening. In the last ten days, thats been pronouchnced moves for markets to digest. Central banks have said, you know what, partys over. Timmy, thats a great point we expect upside volatility with upside action on stocks. If you look at past cycles, the last part of the cycle, you get spikes in volatility because of Central Bank Tightening and fear that the Business Cycle is over. Right. And then it takes that weakness and just ramps. Thats kind of what i think is going to that over the near term listen, going up to 2510, our new target, isnt exactly a monster move its really next year were focused on, 2800,s on the back of better Economic Activity learning to better earnings and ultimately thats what the market correlates to. Let me push back. Im long bias, so i hope youre right. Even if you have rates moving p up, you have come frepression o market multiples, have to only get there through earnings karen, what i found thats interesting, we come out with all these silly statements about what the multiples should be historically it trades at 19 times, sub 3 core inflation environment. Thats the history of it but its the trend is more impression than the actual valuation levels so you traded higher in valuation, with higher rates, for most cycles because at the end of the cycle, the fed is always raising rates so, in the last cycle where i made a mistake, was i was expecting a higher multiple than took place the whole time. The multiple was trending lower the whole cycle. This cycle its the on sit. Where are we in a cycle where the fed is normalizing not raising rates because the economy is overheating youve got to have a lot more evidence of inflation and Inflation Expectation suggesting the economys overheating. Its not quite there yet. When do rates become a problem . Rates become a problem well after they invert. A number . Its not an absolute rate level, scott its about what creates a credit shutdown which is inversion in the yield curve. Thats not necessarily true from a sentiment standpoint, if rates start to push higher to a point where they make people uneasy both from a Business Sentiment standpoint and Consumer Sentiment standpoint and everything else, you could get a anythinegative impact on e stock market long before you have an inversion of the yield curve. Not the peak in the bull market every single correction in the history of my career that is outside of a recession, postinversion of the yield curve, was to be bought. You can buy it early, i can buy is down 5 , goes down 15 . Ultimately just like the trump decline, just like the brexit decline, just like the fisal cliff decline, the taper tantrum decline, you buy it until you invert the curve and shut down lending. How much of your 2018 target, so 300 plus points between now and then, has trump agenda built into it and what happens zip. Zip zip powe p orzippo. Not because of donald trump, its a non Hillary Clinton trade. 400 s p points with no tax reform. Lets forget my opinion because who cares, lets look at the data if you get trumps if you get a 20 tax rate instead of his proposal of 15 , im pressing zero tax change. If you get 20 , according to thompson reuters, that brings earnings up 9. 4 next year that changes the valuation argument and the fundamental backdrop on a tick if they do it this year, retroactive, its 9. 7. The animal spirits are alive not because of politics, its because Small Businesses and Large Businesses are now convinced that youre not going to have higher taxes and more regulation every time i give a talk to the public, or to clients, i ask them, raise your hand if you want more Government Intervention and higher taxes. Ive never seen a hand go up thats the animal spirit thats why the Nfib Small Business hiring index has stayed near a historic high its because they know theyre not going to get hurt worse. Its seven or eight years into the cycle, they have money to spend and theyre starting to do it. Tony, good to see you you bet tony dwyer. Whos a buyer in this market ty tony makes a good point continuing to need to buy, something we talked about, the industrials tim led the show with, two names specifically, look at boeing, alltime high today. Federal express, tim mentioned as well, honeywell on fire over the last few years so despite what i think about the economy, we can go back and forth, if its strong weak the industrials are telling you a story that seems to be intact. Transports . Like the transports . Like the im long i love the transports here. Transports you get the best combination of cyclicality and sensitivity to the yield curve which i think is going to continue to go up. I think rates will go up somewhat you have valuations that are very easy to defend in a market where people are very concerned. Its interesting to look at a caterpillar and deere which i dont think are the best ways to play this but i think some of the shippers look very interesting. The airlines, Delta Air Lines is a name i stay long i think the airlines have outperformed and a lot of room to run on valuation. Seems to me, ive been gone for about 10, 15 days, seems like theres a level of complacency, near euphoria im not saying on this desk. Complacency, positively biased the range the s p is in, tony just said, 75 more points this year, the next 6 months, the s p, fine, flip a coin, that could happen in one day, right i dont think his 2,800 target is ridiculous for the end of 2018 youre talking about another 10 , 12 , Something Like that from current levels. To me, just dont understand how we can get to both of those targets without a meaningful correction to shake out some weak hands weve had i think the biggest decline since the election on any period has been, like, 3 , 4 or Something Like that to me. So, i just think at some point he kind of said that. He basically said, look, you know, those have been pulled back to buy and hes not concerned about this until were at the end of the cycle. Soy ha so i hear what youre saying i dont think markets have been kp kpla ste kplas sen complacent the volatility weve seen, currencies, fixed income you tell me there hasnt been volatility in the nasdaq in the past two wreeeks i dont know what beach you were on maybe they dont have internet. The range has been 1. 5 , tim. Well, theres been look at the charts on the top five megacap names in technology and theyve moved around relative, it hasnt been a Straight Line higher i think people have been feeling some sense of tension and anxiety over whether actually this market where theyve been going to defense of big cap names that have growth they should stay the question was, whos buying here today . The risk reward is kind of one up two down in my opinion at this point weve been basing now, u. S. Equity markets now, it seems like for months. There hasnt been this impetus to take them up very high. To me, you have the potential for an august 2015 sort of decline coming very soon i think every other asset class is telling you that theres fear there and there doesnt seem to be in equities. Certainly hear more talk about the prospects of a summer rally than a summer, you know, correction is there more risk being in the market now or being out . Look, like dans awareness that there are some things out there that are not in great shape and theres reason to be concerned. Look at credit markets, theyre not telling you theyre that concerned. We have brent or crude, what youre looking at, almost break down a few times real exposure on the books to guy s who dont have Balance Sheets masz i agree, there are plenty of things to worry about with valuations where they are. Coming up, nvidia soaring as more analysts jump on the chip makers bandwagon. With the stock up 200 in the past year, too bullish on this name plus, tesla has been under pressure the chart master says the stock is going to make a big turnaround, and he did call last weeks selloff. In honor of the major league game, its fast pitch. The traders are getting ready to give you their top stocks all week long. First up guy adami pitching a stock up 40 this year hell give you the name when fast money returns i put everything into my business. And i had all these points from my chase ink card. So i bought ingredients, utensils, even made custom donut cutters. Wow all with points. Thats how i created the ripple the doughnut in a doughnut in a doughnut. Suddenly its everywhere. I mean, it really took off. What will you create with your points . Learn more about the ink business preferred card. What will you create with your points . Yogigspeed internet. Me . You know whats not awesome . When only certain people can get it. Lets fix that. Lets give this guy gig really . And these kids. And these guys. Him. Ah. Oh hello that lady. These houses yes, yes and yes. And dont forget about them. Uh huh. Sure. Still yes you can get it too. Welcome to the party. Introducing gigspeed internet from xfinity. Finally, gig for your neighborhood too. All right. Welcome back to fast money. Nvidia jumping 5 today after two price increases from wall street top trades tonight the bulls have reason rushing to this stock ubs and citigroup upping price targets in the beginning of june bank of america following suit the next day p p pac crest upgrading it as i mentioned two firms jeffries upping their targets on the stock today. This is aing to thats up 200 in the past year, so is wall street simply too bullish timmy, on this name maybe also mentioned that jeffries downgraded intel to a sell today. What do they mention in the note nvidia. Well, its interesting because citibank had an update. Data coming through right now is very, very strong. Were out of place where even if crow have an inflection in the auto cycle, people are counting on them for this space as well so, i mean, you pick your kind of key growth area certainly i think in gaming. Data center especially theres reason to say these guy have all the things at their back except the valuation. I do not chase the stock at these numbers. I think the stock is very interesting. To say they have the lions share of the space, no. Who wants to play this . I understand valuation probably trades close to 45 times forward earnings their Earnings Growth does not justify that 100 p 100 they talk about the collaboration with toyota. All this learning we talk about that i dont understand but this the machine learning. The machine learning. All this stuff if they get half of this right, we said it before, its a 200 stock, guess what the price target they put on it today, 200. 200. I think its a bit of a goofy call to downgrade intel. Listen, i said this a few weeks ago and raise nvidia. The stock is down maybe 5 since then this company spent 33 billion on three acquisitions, three big ones over the last two years, they bought altera for 16 billion, theyre trying to buy mobile eye for 15 billion they made a small acquisition, which is a. I. Chips for about 350 million, 400 million last year you think about the acquisiti acquisitions, theyre not going to miss the next tech cycle the way they missed mobile over the last ten years thats the value play. Its got a great dividend yield, near 3 or so. To me, i dont know why you would be buying inminvidia would you i would never short a stock like nvidia. For whatever reason, its the anointed one greater the market cap of texas instruments, and its got half the sales. Now, you can say, its growing at this. Its actually expected to grow in the low teens next year sales growth to me, this ones going to cool out at some point. I almost feel like this stock almost in and of itself is somewhat of a proxy on not only the nasdaq, and tech, but of growth tech. I know fang gets all of the play, but whenever this stock does really well, the nasdaq goes up, and whenever theres worry or someone comes out with a negative note or commentary about nvidia, it goes lower. Then people start to question i think its probably higher, turbocharged, i think youre probably right. All right. Still ahead, snap closing below its initial offering prize of 17 a share for the First Time Ever between snap and blue apron, has ipo become a fourletter word . Im scott wapner youre watching fast money on cnbc first in business worldwide. In the meantime, heres what else is coming up on fast. The man who called the top in tesla i think at this point you take profits says now is the time to buy. Hell break it down. Plus, guy is serving up the pitch. Pounding the table on a cloud stock thats up 40 this year. Were going to be awesome for you right now. It sure will be aso awemend well give you the name when fast money returns its so. Quiet. Is it, too quiet . Its awful. Yeah. Feel at home, pretty much wherever you are. Tmobile is americas best unlimited network. How could you not . Looks a little bit like a ch chipmunk thats not nice the incisors. Right, and the haircut that looks just fantastic. Love that. Very good [car tires screech] [bell rings] welcome back to fast. Money live at the Nasdaq Market site heres whats coming up. Snap and blue apron have been a dissaster. If history is indication, things wont get better any time soon well explain. Plus its the one surging stock that guy adami says will knock it out of the park in the second half of the year. Can he convince the other traders . Hell deliver the fast pitch. First all eyes on tesla after ceo eelon musk released pictures of the anticipated model 3 over the weekend a string of developments for the electric car maker lets get to phil lebeau in chicago with the very latest phil did you see elons tweets this weekend i did not. Well, let me show you what the car looks like they finished it on friday they took the pictures, sent them out on saturday and immediately they got a lot of likes and retweets all the other stuff that goes along with putting something out on social media when youre elon musk this is the first of the model 3s remember, 30 of them are going to be delivered on the 28th of this month the first one has been built theyll start increasing production from here as you take a look at shares of tesla, its been a rough month, guys this stock is down 13 in the last month and its not hard to find people out there who are saying, are we sure that sales havent plateaued . The latest headline, which is fueling this discussion about whether or not sales have plateaued involves tesla sales or deliveries in the month of april in hong kong now, hong kong has just instituted a new ev tax. Actually, they took away an incentive for electric vehicles, so if you are purchasing an electric vehicle in april, you were not getting the same incentive you were getting in march and as a result, they had zero, zero deliveries in april tesla says when the Hong Kong Government reduced the tax exception for electric vehicles and increased the cost of our cars by nearly 100 , it is to be expected that demand will be impacted in the period immediately following the change particularly because of the large nucmber who bought prior o the change being implemented how many people got in before the end of this incentive to make sure they had a tesla delivered before april 1st look at this chart from the wall street journal, about 3,000, a huge surge before april when they had zero deliveries. So, scott, this is one of those headlines when i first heard it, i said, whats the backstory here the backstory is not unusual if youre familiar with what happens in china when it comes to tax policy incentives, et cetera, especially for electric vehicles so, while this was one of those headlines that a lot of people looked at and said, aha, sales are plateauing, theyre slowing down in china, the backstory really shows its too early to know, you cant extrapolate from one month whether or not theres a slowdown in sales over there. Phil, thanks, phil lebeau in chicago. You bet. Is the bloom off this rose now . Its off the stock for the moment. Was in bear market, right it was. Maybe its a little bounce i dont know if you can say popped out, but i dont know, 30 deliveries. Is that enough to keep the market happy and then 100 and i guess by the end of the year its not the auto company why do we even care . Seriously, why are we having this conversation . Im not i know. I know i cant get onboard here i think maybe a stock as a valuation of a company, i cant get onboard here. Been a rough it has been a rough couple weeks a move from 385 down to i think it traded 303 today. To your point, its a significant move carter is going to speak to this i dont want to jump the gun here but the stock had double tops at 285. If it gets down there again, you buy with both hands. Personally i dont think its a good i think the reversal was pretty interesting. Our next guest called the top in tesla back in june. Lets take a listen. Teslas not in the s p. If it were in the s p, doesnt matter if its s p, tesla is up here yes, numberone performing stock bar none i think at this point, you take profits or if youve got a little courage, you go short. Seemed to be a good call at the time now, though, our chart master, c carter worth, is changing his dune what changed your mind thanks for showing that nice one. I appreciate the leadin lets talk about it. So, obviously this is a i dont think its a valuation story. We know that we dont its just a dream. And if you have a dream, you can put any valuation you want on it so we have to spend all that and talk about the chart i think what we do know, if you look at the oneyear chart, one thing we could do is draw a line like this so what this represents is a clear breakin trend which is to say, we reacted to this line several times and now weve broken that line you could say, so why would one want to be bullish after an aggressive break like that, actually a 21 decline, you often will get something of a throwback back toward a trend line and actually fill that gap that was left behind. So, a 20 decline after doubling off the lows of last december. And now its already up 4 5r , as guy said, it reversed well today. Im looking for a 10 sort of mover. Lets pull it back and look at other pictures heres the longterm chart guy also who looks at and understands and appreciates charts referred to this. Watch this this welldefined top from which the stock broke out, so we know that if you are in a range for a long, long time, and then ult t ultimately you do break out, often a stock after breaking out will revisit the point from which it broke out a little bit of a pivot. That is a lot of support the presumption is you will get some sort of rebound any time here so, lets keep going here is the chart since the ipo. I think you could draw the lines like this. And you could see the tension. Theres the breakin often breakouts have a little bit of a stutter step. Thats what i think this is. I think youre back to a critical level my hunch is youre going to get a bounce lets end with where we started. Here is the break. Its clear and i think youre going to get more of a throwback. 4 off the low now i think you can get another 10 out of this. Come on over here, carter well continue the conversation. Its hard to sort of gauge where the ultimate, or an ultimate cold stock is going to trade it may get a technical bounce. What does that say all it was was a technical selloff. In principle, there is no valuation and it is a dream. For instance, i dont own the car, never owned the stock say, who wants advice from you has anyone here ever owned the stock in number one performing stock. Obviously i havent. You have . I have not. Oh. Point being, a lot of people who dont believe its not about believing. Can be any valuation you want. Something has changed clearly. This is the man who did it long term, does it end up being kodak or xerox or polaroid possibly can you play this for a bounce technically i think you can. Whats a bounce, what do you consider 10 it doubled off its low you gave back 20 . You got a lot of support often when you do break a trend thats that clear, you will, like, revisit it to the upside then maybe thats the end of it. But i think if you want to be long or short here, id rather be long than short. Youre also speaking as, you know, to a nimble trader who would want to, you know, get in for a 10 bounce. For fast money. Yeah, versus a longterm investment like a ron baron. Right. The ultimate bullish longterm investor. Longterm investor, want to put this away and watch it become the kodak. Where would that level thats a really good question. To me, you go back and look at the last four years, theres been four, almost 1one a year, 30 to we just had 20. Is that enough, a for the quick bounce you want to play for back to that trend line, but what about the longterm inve investor the stock was at 200 in december expensive. Theyd love to see this thing as 250, get overdone to the upside, just excuse me, to the downsize. Do you think theyd be buying the 250 . I dont. If youre buying the stock right here, think about this, they produced one of the mass market cars thats not going to sell for the price they say its going to sell for. It needs more to the downside. Listen, i usually love your calls. I would have loved to have seen the stock back at 290 tomorrow thats your point. Thats the prior high it broke out from i think it may be almost prematu premature. A lot of support coming up right away to be fair, support is not a plywood board or concrete floor. Its a mattress top. Love that love that. Ultimately find support, right . You dont think that the cult of elon musk would pile into that thing at 250 . No, i dont after especially those guys that came in late in the game and got taken out, i think theyre going to think what a lot of people think, oh, my goodness, there isnt a lot there, why is it traded down to im telling you the emotion its all technicals im not sure that it is if you see the nasdaq break down, theres no stopping this thing from going down. The correlations here are enormous so its going to go a lot harder and its a name that i dont think that that guy, that longonly guy is going to want to touch its a lot easier to say that now than to be in the trenches and stare at 250 with the stock market going down. Are you going to buy it because you think tesla is going to deliver on everything they told you today . I dont look at this as part of my process you guys have the machine in front of you. What is the short end . Mid 20s. I looked the other day. 1. 1 . That has to be considered. Except the fact you know who owns 22. 5 of the stock never sold a share, mr. Musk. Hes not going to sell it. Thats paring off the Short Interest this is my point, insiders who are able to sell and long onlies that are flenever going to sell. When they see 380 and see 300 and see 250, theyre buying more theyre not thinking about it a couple years theyre thinking about five, ten years. A company that sold 100 cars last year. Whats that maybe theres some notable shorts were never going to cover. Thats true. Theyll eventually have to. Going to wait, because theyre steadfast in their belief. Carter, thanks. Carter worth. Still ahead, a battle between billionaires Warren Buffett and paul singer is brewing over the acquisition of utility giant oncor. Well hear what the oncor ceo told jim cramer about the brouhaha. Plus guy made his way to the plaza, warming up to pitch the one stock hes calling a home run for investors in the second half and the stock is already up 40 this year. Well give you the names, sports fans, after the break. Welcome back to mafast money. A billing war is brewing over utility giant oncor. Heres what the ceo of the company told mad moneys jim cramer moments ago about the potential deal. We know elliott well, theyre great folk, our largest creditor. Right. At this point, its a conceptual we havent seen any specifics. Theyre fine people. All i know is whats in front of us is buffett so the Berkshire Hathaway deal would be great for this company i dont know enough about elliott yet. Youll catch the full interview with jim and the oncor ceo Robert Shapard on mad money right after us 6 00 p. M. Eastern time. Shifting gears from hard ball to baseball, the mlb allstar game is tonight or tomorrow night, so in honor of america i was thinking the home run derby in honor of americas favorite pastime and our favorite segment were doing a special allstar edition of the fast pitch. Each day this week one trader will pitch a stock they think is worthy of a buy and the traders on the desk will vote on whether theyre buying or selling that pitch. Guy adami, youre up first. I appreciate that, scott. What better night than home run derby night . Thats right. Heres the stock we talked about a long time, the name of the stock, going to pull it up right here, is red hat the symbol, rht. This stock has been an absolute monster and people will knock this on valuation and i get it, but you know what, they have a tremendous partnership with amazon web services. That in and of itself is worth buying the stock but Revenue Growth has been off the charts last year, 19 Revenue Growth year over year thats coupled with doubledigit Revenue Growth over the last five years and the last point, increasing demand, what does that mean . All these i. T. Infrastructure firms need to upgrade their infrastructure and where theyre going, theyre going from antiquated systems to a cloudbased system and where are they going theyre all going to red hat look at last quarter see what they did. Over 40 contracts, well over 1 million with each company. That continues to grow with an existing base. So, valuation is crazy, but the stock keeps continuing to move to the upside. Were not nearly near the alltime high, we made probably in 99, 2000 this is a stock despite valuation still has room to the upside why . Theyre pretty much the only game in down, judge. The pitching coach over here guy, look has a question about your stuff. Im a little concerned the government could throw red hat a nasty bender, if i may, or curve ball. Explain how theyre goingcha. I think theyre very reliant on Government Sales which im not sure is something they can count on for the future. Not nearly as reliant as they were a few years ago, you make a good point that number has gone down instead of go up which is a good thing. Look at their Customer Base, anywhere from ibm to intel to microsoft, Customer Base continues to grow. So i guess the government concern is well founded but not nearly to the extent it was a few years ago. Let me ask you something else, so were seeing pricing pressure, how about these guys are they seeing pricing pressure as well . It hasnt shown, karen n their margins. If you look at last quarter, their margins continue to hang in there is there potential for pricing pressure to them probably, yes, but i dont think thats going to happen for a while. There still seems to be a mote around their business. Now, that mote might close up very quickly, but i dont see it in the foreseeable future. All right it is time now to cast your votes. They are in. Timmy . Do we show at the same time . Is there a big reveal . Everybody big reveal or just show mine. Ive got to sell whoops by the way, guy, i think you went heavy on the spray tan tonight. Maybe that was just your vacation look, i think youre right, im more worried about valuation you said this. I think its tough to defend it even though you have the growth. I think their best days are behind them. Karen much to my surprise, just because valuation is usually the ultimate point to me, but i do like the growth. Its a buy in you go. Danny so you have midteens revenue and Earnings Growth. I think you sell it here it had the really big where am i going right here the really big gap it kind of consisted with what we talked about with tesla. Amen, sister. I think youre going to get checkbacks to prior support levels and thats where you buy a stock like this, you dont buy it when its kind of in the midst of that checkback. Guy fall into that support. Checkbacks. Nice tan, though. Thats two sells, one buy one can of spray tan. Let me clarify something there, party boy theres no spray tan here. This is the real thing week at the beach. Just so we all understand each other. Extra bronzer. You should take a wipe and just see what happens. 100 natural did you go with the accelerator . All right mooerps the questi all right. Heres the question. Was guys pitch hot enough to make you want to buy the stock go to twitter, vote in the follow cnbc fast money. Well reveal the results later in the show. Plus the two biggest ipos of the year are imploding snap and blue apron are below their ipo prices were going to tell yowh iu att means for other ipos for the retail investor. Much more fast money straight ahead. Ant to end alzheimers disease. But what if, one day, there was a white flower for alzheimers first survivor . What if there were millions of them . Join us for the Alzheimers Association walk to end alzheimers. Register today at alz. Org walk. Welcome back to fast money. Two of the most highly anticipated ipos of the year are both struggling. Snap closing below its ipo price of 17 for the first time today and blue apron tanking nearly 20 since going public on june 29th how do they stack up to other dis appoiappointing ipos . Lets get back to Courtney Reagan at headquarters for those details. Reporter hi there, scott, rebound in blue apron shares has investors wondering whether the Meal Kit Company is a buying opportunity. As of friday, shares declined almost 23 since its ipo june 29th today, though, theyre up more than 5 . If we look at history as a guide, ipos that plummet one week out of the gate dont tend to succeed in the long run blue apron ranks 12th for worst oneweek performance with a decline of 11. 6 through july 5th. Sure, there are exceptions facebook, for example, is ranked eighth worst for its first oneweek performance since its ipo, we know it soared over 300 . However, of the other top ten worst performers, only two are higher than their ipo price, carvana and gaslog the rest are trading lower sunrun, terraform global, fmsa, vivint solar are less than half of ipo prices. King, maker of candy crush, was acquired last year by Activision Blizzard for less than its ipo price. Sfx entertainment filed last year for bankruptcy. Its likely going to take a little more than a oneday jump to change investors minds about blue apron long run. In the meantime, though, you might want to stay out of the kitchen. Scott . All right, court, thanks so much facebook thould hashould have as by it. To me, the amazing thing about blue apron, not how much it was down, amazing they got that deal done at all. How they were able to get that out the door right after the amazon whole foods deal was announced, cutting the price that much, so much competition expenses going nuts. I cant believe they got it done. Does it mean anything for the pipeline obviously you have marquee names waiting in the wings whether uber, air bnb, lyft. People will have trepidation next time they get into some of these names. The pipeline, to your point, i think its intact. These names specifically, we said it for a long time, snap to me, i dont know if its Single Digits but its going lower now. Maybe the highrisk names i think thats a good question, we just had a bunch of names up there on the board, lyft, airbnb, these are really Disruptive Companies with real we were, too, with real valuation shares a billion and a half market cap, blue apron, expect ed to do. Maybe if they continue on this run rate, 1 billion in sales over the next year, this is not a marley disruparticularly disr company. A lot of competition this was mispriced theres a price for this thing its probably lower. They have to prove themselves and prove theres a path to profitability. How much, dan, youre close to this community, how much do you think people held on too long the Cooking Community i wasnt going to say that. I was going to say the Silicon Valley community in other words, Tech Companies that have a tremendous both pipeline and certainly a lot of money behind them to say were not going public because we think we can do better, i bet if snap had gone public sooner, you might have had more wind behind the sails. Thats if their business is truly slowing. I would say this, if you look at this company, this is as close to the web 1. 0 things we saw go public in the late 90s some of those things did survive or at least the concepts this is a great example of a company that doesnt need to be public id much rather stay back, fix some of the issues it could be clearly guy did a great job that one afternoon with the shrimp cacciatore. It wasnt shrimp cacciatore. What was it it was fusili with spinach and shrimp there it is the video there, wise guy. Thats the onion. Is that literally a blue apron thing . Blue apron on, shirt, everything. That looks like a flowery apron. With the ipos being a disaster, snap is still at its ipo price. Not a disaster yet. You do an apoptions action, right . Options started trading today on the blue apron. We are running out of time. They did. Calls for four times that. Interesting on the first day out of the gate, like courtney said, the stocks down about 20 from that ipo price the most active options today were the august ecalls, they traded 650 times for about 44 cents. Thats about a 5 break even from current levels. That seems like a reasonable way if you want to play the first earnings event thats going to come in midaugust. All right for more options action, check out the full show friday 5 30 p. M. Eastern. Up next, theres still time to vote on whether youre buying guys pitch for red hat. Go to twitter cnbcfastmoney and do it now. 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Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Were back and it is time to reveal whether or not you at home bought guys pitch for red hat. The drum roll, please. Now lets cue toni braxton because oh, no. Breaking your heart. Looks like guy struck out this one. I love that t. B. Is now a regular on our show. 37 said yes. 63 of you said take your pitch and leave. This might be one of the five worst songs of alltime. I was going to Say Something else say it. What were you going to say cant do it. I got time for t. B. Do it afterwards. Lets do final trades now. You . Oh, me first . Im sorry im sorry. I wont break your heart, ebm, malaysia, cheapest currency in the world emerging markets. Going emerging markets also em large cap around the world. We can kill the music now, right . Until the bitter end. For all the reasons people like it American Express will get you done there, scott. Good to see you. Hope to see you back tomorrow. Ill see you tomorrow. Im scott wapner. Catch fast money 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 you so call me at 1800743cnbc or tweet me jimcramer. So many people, so many people simply do not believe in this market