Transcripts For CNBC Fast Money 20240712 : comparemela.com

Protesting facebooks failure to address the vast proliferation of hate on its platform. Facebook responding saying it will change policies to prohibit hate speech. The fallout was felt far and wide across the tech sector. What is the impact, guy . These are hand full of companies but has the levee broken a little led zeppelin way to go with the zep reference right at the top the day trade, now its a lot bigger than that and i absolutely think its a big deal facebook is so far behind the curve. They are zigging when they need to be zagging. They need an emergency meeting because as we said three nights a ago, those Companies Might be the first and now last hershey, prok tits showing a l things going on. Facebook acted as a monopoly for a long time. They never had a focus on these things now when they have to focus on it, they are sort of dammed if they do and dammed if they dont. Advertisers had to accept whatever it was facebook put out there. I really commend verizon, hersheys coming in not just folks at first it seemed like it was a bizarre collection of companies, Great Companies but seemed you had to eat granola and the grateful dead to use facebook i think very interesting to see the conditionality of what these advertisers put out there and in fact, until a change so i believe they said not until the end of year and not just one month or a show of force or slap on the wrist thats critical. Facebook had to respond and i believe they responded to say they are adjusting policies and arent necessarily doing to let, i believe, unworthy news pass without a prompt this is something the market is wait and see mode but very important for the market, especially when you consider mega cap tech is a dominant thing but for facebook this does not end monday morning. The paradigm is facebook is in control, there is nowhere else to go and advertiseders will go whether they like it or not. Thats helped them and the stock rises. Has that all changed with this yeah, it does appear to be that way i mean you asked has the levee broken i think it has other companies have to go along and do it. I think this changes their Business Model drastically they have been a platform. They have not been a newspaper or journalist. They have been agnostic to what is on their platform and thats part of the Business Model thats how they can scale. Thats how they are able to grow so big but now they have to Pay Attention to that and remember, they dont have anybody necessarily inside the company thats probably equipped to do this i agree. This is not a oneday problem. This is a longer term problem where they have to revamp their business and secondarily, if we look at tech as the big picture, you know, nasdaq was up 10, 12 for the year and thats because there is growth there. If there is going to be if there is not going to be growth there anymore if your revenues are declining because adverti r advertisers are pulling out, that questions the nasdaq valuations were laughing not at you b. K. Because apparently the dogs were let out at guys home russell and flip and whatever other dog is there. Rocky. Not the first time dogs are barking at me. No, because they heard the great song off led zeppelin as our producing team is about to play thats all . There it is good stuff. For your pleasure on a friday evening. Nice. Its the great im sure gone paul jones just crushing it right there, mel. You know what else is crushing it market calls are about to be crushing it, tim. Well, definitely and its just great because we know jimmy paige and mr. Plant are big, big fans of fast money so nice we can do this on a friday night. Are they mr. Led and mr. Zeppelin just kickidding, moving on on this broke only a hand full of people acted. One of the disappointing parts about this with these advertisers that made announcements, how quick they were to say they would likely come back in august. What that means to me is they are making a statement they are showing some form of support around the topic but ultimately, they are going to embrace facebook as a platform. Gene is back. Hes changed his tune since then and a lot has happened why do you say the walls are now closing in on facebook mel, i think there are two waves coming at the company. The first is what were dealing with, some of the hate speech on the platform and im surprised how quickly facebook responded to boycotts. I think that they are working. The announcement today that zuckerberg made is hes had a lot of pressure to do something over the last three weeks, and now since advertisers moved, big advertisers have come in, hes making changes thats one piece to it i suspect some advertisers by these changes that have been made today, announced today will return to facebook and advertising on facebook again. I think others will want to see more i think of this as wave one. This is a small reoccurring wave that will be a head wind to their business and create anxiety for investors. There is a bigger wave, a much larger picture if you look back where facebook and twitter have come from, when they originally started, they were platforms that didnt have influence. Now they each have significant reach, global reach and because of that, they are reaching a different standard and ultimately, the second wave, the one that is more potent will be around what will happen with the regulation of facebook and twitter as publishers, and what i think about this, this is not a question about the left or right. Both parties are going to recognize these platforms are very different than they were ten years ago, and so i see this next wave as a wave that is going to create some uncertainty for investors on top of the first wave that were dealing with right now when you put all of this together, i think that it is a company that will struggle to regain its multiple. This is an advertising business. They need to enrich peoples lives and that unfortunately wont work they are doing incredible things around the future of work and Virtual Reality but this will be a challenge. Sounds like you think the best days for facebook in term of valuation are behind it does that input to valuation discounts for the other social media platforms . They face many of the same issues, if not all of the same issues i think it will impact all of both twitter and facebook specifically i think less so google but i do think this other factor around recognizing these are massive platforms and they need to be recognized as publishers and regulated, i think that will ultimately weigh on facebooks multiple i was encouraged at the end of zuckerbergs post he mentioned he wants facebook to be a force of good in the world. I believe that i believe he truly wants to make facebook a force of good unfortunately, facebook is a pit bull and a pit bull, it is difficult to convert to a lap dog. I think that ultimately, investors will discount facebooks multiple because of that. Gene, always great to speak with you thank you. Thank you. Gene of luke ventures tim, you had quite a reaction to what gene said. Yeah, look, im not its not at gene. Im not adding gene. This is ultimately i heard this from facebook before and i think gene pointed out the pit bull is a good term. Facebook has not led business interest get in the way of po policie policies they are doing it now. It a bold move by verizon. Prok t proker and gamble are making a stand and adds value to what theyre doing. This is addition by subtraction. I think there is many digital platforms from which to invest behind content in this world and i know weve talked about the strangle hold that facebook has but really, i mean, think of every Major Company unleashing a digital platform think of the sites think of the new kind of media sites and the twitches of the world. So i dont think people are beholding to facebook. Yes, its the biggest platform when the biggest advertisers in the world and brand influencerss make the statement, its about time. They said well donate this money to these causes like the naacp and if day dont boycott when the naacp says we want to boycott facebook, they risk looking like big hypocrites. Its not walking the walk. There is that issue. In terms of advertisers, guy, on top of the waves gene is talking about, there is a current wave that hes dealing with, a cut back in advertising. Big advertisers may simply use this opportunity as saying i want to reset what we spend on social media platforms times are not great for us right now and we want to turn that spending back and now is the time to do it and small and mediumsized businesses feeling so much pain, they wont be there in such force, either. 100 . Could not agree with you more. If you strap a lie detector on a lot of these Big Companies they mentioned, they were advertisin through facebook because they had to not necessarily because they wanted to. They had to because facebook was the only game in town. They are no longer the only game in town and now they have problems and again, i commend these companies absolutely the fact earlier this week we heard the first three Companies Say it was for the month of july verizon open ended it. Youre talking about hershey, its going to continue over the weekend. It not going to stop facebook has a risk. What we said for quite sometime is i dont like the platform there is nothing really remarkable that i enjoy about facebook but advertisers have nowhere to go and people arent leaving the site well, advertisers are leaving and the next shoe may be people saying i dont need facebook in my life anymore. Thats a problem. Lets turn to story number two. The reopening roll back. America at a cross roads as coronavirus cases sore texas is slowing reopening plans and investors are noticing stocks plunging on fears a bigger shutdown could crush hopes of a full economic recoverykelly, rally off the boo is what we worked on what does that mean . Its a big concern. Ive been a bit surprised how quickly america has reopened you know, certainly being in the tristate area during this pandemic, you have kind of sense that everything is going to stay closed for awhile, but when you get outside of the tristate area, all of a sudden people are getting on planes. Look at American Airlines today. They are seeing demand that surprised me a bit, that being said, with this new outbreak that were seeing, kind of in the south and southwest, youre already seeing behavior change a bit so you look at some of the tom tom data from houston. Youre seeing traffic data slowly starting to go down you look at open table data from houston, dallas, austin, phoenix, youre seeing over the last week open table seated diners data year over year change going down again. So they have already been closing again. So if im going to pull something positive out of this, if people change their behavior, then you should start to see some of the infections go down, and that may be a positive thing. But in the meantime, the market is going to price in kind of the worstcase scenario. We close down again and we dont know what were going to reopen until we get a vaccine. Yeah, tim well, i think, you know, the Magic Kingdom this week was really important and i would point to in terms of things we should be watching when disney says its going to be really time to open and theyre comfortable to do it and an ability to keep people safe and i think disney is one of the most conservative companies in the world, one of the most brand Conscious Companies in the world and cares about kups mecustomer workers, therefore thats critical when we saw disney rollback the first time, its part of the delu deluge jobless claims were not terribly good i realize that the growth or the decrease really in the additional joblessness is something to be somewhat encouraged by so its a glass full on the glass half empty but this is not a good reminder. 20 Million People continue to file for unemployment. I dont see how that gets better in the short to medium term. Much of the country is rolling back what they never did in the first place. This may still be phase one of the disease for a lot of people. So i think it was an important week for that. Were learning the hard way and said before this virus doesnt care if you want to go to see disneyworld or get on a plane and go out there to colorado where b. K. Spends a lot of his time. No interest. It doesnt care if your bullish or bearish in the stock market it is what it is we rushed this back. I understand the reasons behind it its problematic and you have to ask yourself, where do you get back into stocks disney spent a lot of time around 102, which is about 7 from where we are now. Thats a place i would begin to look there is no compelling reason in my opinion to believe that somehow magically were going to reopen to where we were in january, and thats something weve been saying for quite sometime. That was going to be my next question you know, in terms of getting in on better levels, how much better is this level going to get, brian kelly in other words, would we retest march 23rd or is march 23rd a different ball game because we were nowhere near a vaccine and now we can see a finish line sometime in the beginning of next year. Yeah, i think there is an argument to be made. We had this tugofwar in the market between can you pump enough money into the economy via fiscal and monetary stimulus to get us through the valley and to the point where we get to a vaccine . So from march 23rd to now, were several months closer to it. There has been some progress on that i think the market is going to be looking and saying there is going to be some kind of floor under this at some point with fiscal stimulus, the election coming up as i mentioned before. I think this election will be about which politician and which party can put the most money in peoples Bank Accounts viewed in that light, maybe march 23rd isnt in the picture anymore. That being said, if we if people just completely close down in the entire country closed down again and again, europe today saying u. S. Citizens may not be able to go there, all those things actually would have a an effect on the economy. I dont care how much you print. Its not going to help one bit. So it may be and there may be more if im talking about the fed and yet, theyre the one that got us out of march i dont think were going back there. As long as the fed is where they are and pretty much said well do what it takes, there is a lot of it this week. Ive had a fair amount i dont love what were doing but youre asking about the market and levels. One of the reasons we got to the middle of march in those levels, pick your bottoms somewhere on 2090 one sunday night was because of where we kacame from. Seven or eight days ago back up near those highs, we got to a place that was over done but we werent as over done and i think the context of the market in with a disease where there is at least much more education, much more awareness about a timeline and how to control the impact of the disease and Federal Reserve says i dont think we get anywhere near march lows that may be a difficult thing to say with a bad week behind us but we stay there. The longer reclosing and a rollback of the reopenings, the more it could become a solvent issue as ocho ed pposed to liqu. It fed cannot help with what it does, guy. I dont want to throw red meat into a bear den because i feel like thats what im doing tossing it to you. That seems like it could be a problem at some point. They can only do so much and weav weve talked about the fed being at the point of diminishing returns. You bring up a very interesting point and something discussed without question they can control a lot of things thats one thing they cant control. Great job. Thats your education number one and b. K. What i do, thank you. And a wonderful word because as you know, melissa. Five sill sylabols. Can you spell it . No, ill use it in a tweet in the break. Were just Getting Started on fast money five. Were tackling other stories including a possible fumble for lle football the special edition of fast money will be back right after this vo at audi, we design cars that exhilarate with versatility, whether on the track, or the everyday drive. Today, that philosophy extends to how we connect with you. We call it, audi at your door. Whether a remote test drive, shopping, tradein, or even service pickup, audi at your door can do this and more at participating dealers. The premium audi dealership experience, on your terms. Audi at your door. Yeah yyeah yeah hey, hey can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Welcome back to this special edition of fast money. Three down, two to go. Got to take a fast break gap is teaming up with kanye west this got us thinking, what other struggling companies could benefit from serious star power . Guy, what do you think i have a great idea, mel. I know youre a huge nba fan. Huge. Vince carter retired after 2 the 2 ye2 years in the nba you may recall in the 2000 olympics he dunked over frederick weiss. He was the 15th pick in the 1999 draft by the New York Knicks never played a minute but he was posterized by vince carter why do i bring it up and because air france should hire vince carter and the ad should be air france dominating our air space for 20 years and vince carder is your guy brilliant. Thats a long story to get to that. Deep end of pool, guy deep end of the pool. I dont know how you follow that, b. K. Go ahead i felt like i was on a flight to paris. Groggy stay in the usa and listen, shaquille oneal, probably one of the best secelebrity Business People we have in this country and a struggling brand out there Harley Davidson. Theyre having a tough time because baby boomers bought their harleys or hogs. Shaq goes into Harley Davidson you see it shaquille, harley, thats the pla play. I do love the hog i love shaquille peloton still could get a shot in the arm and a lot of competition coming down and they get it they get it from Lance Armstrong. What . The guy Everybody Loves to hate put on those spandex that youre biking to beat Lance Armstrong this es manpn documentary on les doesnt make you love him more i dont let my kids use that word around the use. Lance armstrong takes peloton to a new level. Go get your Companies Might<\/a> be the first and now last hershey, prok tits showing a l things going on. Facebook acted as a monopoly for a long time. They never had a focus on these things now when they have to focus on it, they are sort of dammed if they do and dammed if they dont. Advertisers had to accept whatever it was facebook put out there. I really commend verizon, hersheys coming in not just folks at first it seemed like it was a bizarre collection of companies, Great Companies<\/a> but seemed you had to eat granola and the grateful dead to use facebook i think very interesting to see the conditionality of what these advertisers put out there and in fact, until a change so i believe they said not until the end of year and not just one month or a show of force or slap on the wrist thats critical. Facebook had to respond and i believe they responded to say they are adjusting policies and arent necessarily doing to let, i believe, unworthy news pass without a prompt this is something the market is wait and see mode but very important for the market, especially when you consider mega cap tech is a dominant thing but for facebook this does not end monday morning. The paradigm is facebook is in control, there is nowhere else to go and advertiseders will go whether they like it or not. Thats helped them and the stock rises. Has that all changed with this yeah, it does appear to be that way i mean you asked has the levee broken i think it has other companies have to go along and do it. I think this changes their Business Model<\/a> drastically they have been a platform. They have not been a newspaper or journalist. They have been agnostic to what is on their platform and thats part of the Business Model<\/a> thats how they can scale. Thats how they are able to grow so big but now they have to Pay Attention<\/a> to that and remember, they dont have anybody necessarily inside the company thats probably equipped to do this i agree. This is not a oneday problem. This is a longer term problem where they have to revamp their business and secondarily, if we look at tech as the big picture, you know, nasdaq was up 10, 12 for the year and thats because there is growth there. If there is going to be if there is not going to be growth there anymore if your revenues are declining because adverti r advertisers are pulling out, that questions the nasdaq valuations were laughing not at you b. K. Because apparently the dogs were let out at guys home russell and flip and whatever other dog is there. Rocky. Not the first time dogs are barking at me. No, because they heard the great song off led zeppelin as our producing team is about to play thats all . There it is good stuff. For your pleasure on a friday evening. Nice. Its the great im sure gone paul jones just crushing it right there, mel. You know what else is crushing it market calls are about to be crushing it, tim. Well, definitely and its just great because we know jimmy paige and mr. Plant are big, big fans of fast money so nice we can do this on a friday night. Are they mr. Led and mr. Zeppelin just kickidding, moving on on this broke only a hand full of people acted. One of the disappointing parts about this with these advertisers that made announcements, how quick they were to say they would likely come back in august. What that means to me is they are making a statement they are showing some form of support around the topic but ultimately, they are going to embrace facebook as a platform. Gene is back. Hes changed his tune since then and a lot has happened why do you say the walls are now closing in on facebook mel, i think there are two waves coming at the company. The first is what were dealing with, some of the hate speech on the platform and im surprised how quickly facebook responded to boycotts. I think that they are working. The announcement today that zuckerberg made is hes had a lot of pressure to do something over the last three weeks, and now since advertisers moved, big advertisers have come in, hes making changes thats one piece to it i suspect some advertisers by these changes that have been made today, announced today will return to facebook and advertising on facebook again. I think others will want to see more i think of this as wave one. This is a small reoccurring wave that will be a head wind to their business and create anxiety for investors. There is a bigger wave, a much larger picture if you look back where facebook and twitter have come from, when they originally started, they were platforms that didnt have influence. Now they each have significant reach, global reach and because of that, they are reaching a different standard and ultimately, the second wave, the one that is more potent will be around what will happen with the regulation of facebook and twitter as publishers, and what i think about this, this is not a question about the left or right. Both parties are going to recognize these platforms are very different than they were ten years ago, and so i see this next wave as a wave that is going to create some uncertainty for investors on top of the first wave that were dealing with right now when you put all of this together, i think that it is a company that will struggle to regain its multiple. This is an advertising business. They need to enrich peoples lives and that unfortunately wont work they are doing incredible things around the future of work and Virtual Reality<\/a> but this will be a challenge. Sounds like you think the best days for facebook in term of valuation are behind it does that input to valuation discounts for the other social media platforms . They face many of the same issues, if not all of the same issues i think it will impact all of both twitter and facebook specifically i think less so google but i do think this other factor around recognizing these are massive platforms and they need to be recognized as publishers and regulated, i think that will ultimately weigh on facebooks multiple i was encouraged at the end of zuckerbergs post he mentioned he wants facebook to be a force of good in the world. I believe that i believe he truly wants to make facebook a force of good unfortunately, facebook is a pit bull and a pit bull, it is difficult to convert to a lap dog. I think that ultimately, investors will discount facebooks multiple because of that. Gene, always great to speak with you thank you. Thank you. Gene of luke ventures tim, you had quite a reaction to what gene said. Yeah, look, im not its not at gene. Im not adding gene. This is ultimately i heard this from facebook before and i think gene pointed out the pit bull is a good term. Facebook has not led business interest get in the way of po policie policies they are doing it now. It a bold move by verizon. Prok t proker and gamble are making a stand and adds value to what theyre doing. This is addition by subtraction. I think there is many digital platforms from which to invest behind content in this world and i know weve talked about the strangle hold that facebook has but really, i mean, think of every Major Company<\/a> unleashing a digital platform think of the sites think of the new kind of media sites and the twitches of the world. So i dont think people are beholding to facebook. Yes, its the biggest platform when the biggest advertisers in the world and brand influencerss make the statement, its about time. They said well donate this money to these causes like the naacp and if day dont boycott when the naacp says we want to boycott facebook, they risk looking like big hypocrites. Its not walking the walk. There is that issue. In terms of advertisers, guy, on top of the waves gene is talking about, there is a current wave that hes dealing with, a cut back in advertising. Big advertisers may simply use this opportunity as saying i want to reset what we spend on social media platforms times are not great for us right now and we want to turn that spending back and now is the time to do it and small and mediumsized businesses feeling so much pain, they wont be there in such force, either. 100 . Could not agree with you more. If you strap a lie detector on a lot of these Big Companies<\/a> they mentioned, they were advertisin through facebook because they had to not necessarily because they wanted to. They had to because facebook was the only game in town. They are no longer the only game in town and now they have problems and again, i commend these companies absolutely the fact earlier this week we heard the first three Companies Say<\/a> it was for the month of july verizon open ended it. Youre talking about hershey, its going to continue over the weekend. It not going to stop facebook has a risk. What we said for quite sometime is i dont like the platform there is nothing really remarkable that i enjoy about facebook but advertisers have nowhere to go and people arent leaving the site well, advertisers are leaving and the next shoe may be people saying i dont need facebook in my life anymore. Thats a problem. Lets turn to story number two. The reopening roll back. America at a cross roads as coronavirus cases sore texas is slowing reopening plans and investors are noticing stocks plunging on fears a bigger shutdown could crush hopes of a full economic recoverykelly, rally off the boo is what we worked on what does that mean . Its a big concern. Ive been a bit surprised how quickly america has reopened you know, certainly being in the tristate area during this pandemic, you have kind of sense that everything is going to stay closed for awhile, but when you get outside of the tristate area, all of a sudden people are getting on planes. Look at American Airlines<\/a> today. They are seeing demand that surprised me a bit, that being said, with this new outbreak that were seeing, kind of in the south and southwest, youre already seeing behavior change a bit so you look at some of the tom tom data from houston. Youre seeing traffic data slowly starting to go down you look at open table data from houston, dallas, austin, phoenix, youre seeing over the last week open table seated diners data year over year change going down again. So they have already been closing again. So if im going to pull something positive out of this, if people change their behavior, then you should start to see some of the infections go down, and that may be a positive thing. But in the meantime, the market is going to price in kind of the worstcase scenario. We close down again and we dont know what were going to reopen until we get a vaccine. Yeah, tim well, i think, you know, the Magic Kingdom<\/a> this week was really important and i would point to in terms of things we should be watching when disney says its going to be really time to open and theyre comfortable to do it and an ability to keep people safe and i think disney is one of the most conservative companies in the world, one of the most brand Conscious Companies<\/a> in the world and cares about kups mecustomer workers, therefore thats critical when we saw disney rollback the first time, its part of the delu deluge jobless claims were not terribly good i realize that the growth or the decrease really in the additional joblessness is something to be somewhat encouraged by so its a glass full on the glass half empty but this is not a good reminder. 20 Million People<\/a> continue to file for unemployment. I dont see how that gets better in the short to medium term. Much of the country is rolling back what they never did in the first place. This may still be phase one of the disease for a lot of people. So i think it was an important week for that. Were learning the hard way and said before this virus doesnt care if you want to go to see disneyworld or get on a plane and go out there to colorado where b. K. Spends a lot of his time. No interest. It doesnt care if your bullish or bearish in the stock market it is what it is we rushed this back. I understand the reasons behind it its problematic and you have to ask yourself, where do you get back into stocks disney spent a lot of time around 102, which is about 7 from where we are now. Thats a place i would begin to look there is no compelling reason in my opinion to believe that somehow magically were going to reopen to where we were in january, and thats something weve been saying for quite sometime. That was going to be my next question you know, in terms of getting in on better levels, how much better is this level going to get, brian kelly in other words, would we retest march 23rd or is march 23rd a different ball game because we were nowhere near a vaccine and now we can see a finish line sometime in the beginning of next year. Yeah, i think there is an argument to be made. We had this tugofwar in the market between can you pump enough money into the economy via fiscal and monetary stimulus to get us through the valley and to the point where we get to a vaccine . So from march 23rd to now, were several months closer to it. There has been some progress on that i think the market is going to be looking and saying there is going to be some kind of floor under this at some point with fiscal stimulus, the election coming up as i mentioned before. I think this election will be about which politician and which party can put the most money in peoples Bank Accounts<\/a> viewed in that light, maybe march 23rd isnt in the picture anymore. That being said, if we if people just completely close down in the entire country closed down again and again, europe today saying u. S. Citizens may not be able to go there, all those things actually would have a an effect on the economy. I dont care how much you print. Its not going to help one bit. So it may be and there may be more if im talking about the fed and yet, theyre the one that got us out of march i dont think were going back there. As long as the fed is where they are and pretty much said well do what it takes, there is a lot of it this week. Ive had a fair amount i dont love what were doing but youre asking about the market and levels. One of the reasons we got to the middle of march in those levels, pick your bottoms somewhere on 2090 one sunday night was because of where we kacame from. Seven or eight days ago back up near those highs, we got to a place that was over done but we werent as over done and i think the context of the market in with a disease where there is at least much more education, much more awareness about a timeline and how to control the impact of the disease and Federal Reserve<\/a> says i dont think we get anywhere near march lows that may be a difficult thing to say with a bad week behind us but we stay there. The longer reclosing and a rollback of the reopenings, the more it could become a solvent issue as ocho ed pposed to liqu. It fed cannot help with what it does, guy. I dont want to throw red meat into a bear den because i feel like thats what im doing tossing it to you. That seems like it could be a problem at some point. They can only do so much and weav weve talked about the fed being at the point of diminishing returns. You bring up a very interesting point and something discussed without question they can control a lot of things thats one thing they cant control. Great job. Thats your education number one and b. K. What i do, thank you. And a wonderful word because as you know, melissa. Five sill sylabols. Can you spell it . No, ill use it in a tweet in the break. Were just Getting Started<\/a> on fast money five. Were tackling other stories including a possible fumble for lle football the special edition of fast money will be back right after this vo at audi, we design cars that exhilarate with versatility, whether on the track, or the everyday drive. Today, that philosophy extends to how we connect with you. We call it, audi at your door. Whether a remote test drive, shopping, tradein, or even service pickup, audi at your door can do this and more at participating dealers. The premium audi dealership experience, on your terms. Audi at your door. Yeah yyeah yeah hey, hey can i find an Investment Firm<\/a> with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Welcome back to this special edition of fast money. Three down, two to go. Got to take a fast break gap is teaming up with kanye west this got us thinking, what other struggling companies could benefit from serious star power . Guy, what do you think i have a great idea, mel. I know youre a huge nba fan. Huge. Vince carter retired after 2 the 2 ye2 years in the nba you may recall in the 2000 olympics he dunked over frederick weiss. He was the 15th pick in the 1999 draft by the New York Knicks<\/a> never played a minute but he was posterized by vince carter why do i bring it up and because air france should hire vince carter and the ad should be air france dominating our air space for 20 years and vince carder is your guy brilliant. Thats a long story to get to that. Deep end of pool, guy deep end of the pool. I dont know how you follow that, b. K. Go ahead i felt like i was on a flight to paris. Groggy stay in the usa and listen, shaquille oneal, probably one of the best secelebrity Business People<\/a> we have in this country and a struggling brand out there Harley Davidson<\/a>. Theyre having a tough time because baby boomers bought their harleys or hogs. Shaq goes into Harley Davidson<\/a> you see it shaquille, harley, thats the pla play. I do love the hog i love shaquille peloton still could get a shot in the arm and a lot of competition coming down and they get it they get it from Lance Armstrong<\/a>. What . The guy Everybody Loves<\/a> to hate put on those spandex that youre biking to beat Lance Armstrong<\/a> this es manpn documentary on les doesnt make you love him more i dont let my kids use that word around the use. Lance armstrong takes peloton to a new level. Go get your Lance Armstrong<\/a> race on and crush him. I think Lance Armstrong<\/a> would be jumping the shark quickly, mel, you may notice perched over brian kellys shoulder are black pair of crocks and im wondering aloud is that some sort of product placement. Is b. K. Being compensated by said crocs if so, i hope its a lot of money. Right [ laughter ] interesting. Interesting. So you see, though, crocs actually sent those to me because they have bit corn little plug ins. They made them special for the b. K. Never wore them outside. The more you need to know two big stories down three ahead. A possible flag on the field for College Football<\/a> e why it could have big money impact we have details when we come back apps are used everywhere. Except work. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time<\/a> they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com welcome back to the fast five. Growing concerns that the coronavirus could jeopardize the College Football<\/a> season sports of course, the major Revenue Source<\/a> whats the real impact if College Football<\/a> fumbles this fall the context is, tim, so many College Teams<\/a> have resumed voluntarily workouts at this point. They have tested players some cancelled voluntary workouts because a lot of players come on and test negative and in a few days, they test positive. This will prevent other leagues from being beaten up once again, go gators. I think youve got a story here first of all, College Athletics<\/a> should be proathletics thats another topic for another show forcing these kids back out on the field right now, i know they want to be there but its almost absurd what were seeing in my view based upon the rollback that were seeing in other parts of the country so i love game day love ball games. Love College Football<\/a>. Love the sec but i dont expect to see it even though i want to see it. Yeah, im with tim. They just cancelled the new york city marathon. Decemb despite the fact, 20,000 people are huddled on the bridge, its not a contact sport. If they cancel that in october how can you go forward with a sport that is contact . I dont know how it happens. Im trying to be pragmatic about what is going on to your point about what effect it has, it has a huge effect to so many of these universities and surrounding towns for so many institutions that make a money on saturdays in the fall on the back of College Football<\/a>. Its not a very promising thing, i think, for the economy not a big part, the message it sends is not particularly good. For fundraising purposes, its key to have a Championship Team<\/a> there with alumni fundraising and of course, the uptick in applications that happens the year after a Team Clinches<\/a> or plays in a championship game and then of course, the impact, guy, as you mentioned to neighboring towns to alabama a home game is on average an impact of 25 milli 2o per game tonight say well wait until the very last minute is not just because they want to have a football season and cheer on their team. There is a whole other cascade of effects if they call of that season b. K. Yeah, i mean, its really unfortunate, right its not just about the college players. Its about the small businesses. Its about the vendors its about these smaller towns around there that this is the industry for them. Its a bigger impact than hey, i want to watch football on saturday i would even take it another level and say this is really going to put colleges in a crisis i think they already have a problem. They are selling a product that really is not worth what theyre selling it for kids are coming out saddled with debt they are not getting jobs they can actually pay that debt back. Now youre saying hey, well, when i come back to campus, there is no reason for me to be there anyway because im not going to be going to the College Football<\/a> game at bama or harvard or wherever you go that to me says what am i paying for at college im not getting the job done i want im not getting the experience that i want. I might as well just go online and do it that way i think colleges have a real problem and this is going to be one of the those catalysts we look back on and say hey, that was the moment that we really changed the college and University Experience<\/a> in the u. S. Guy is raising his hand so guy, you have a comment i imagine its because b. K. Mentioned youre not going to go to the football gameat harvard well, its part of it i think for the people for so very long on television, they are saying to themselves, did melissa lee wax po poetic my wife said look at melissa go. Outstanding job by you the folks at home have to say to themselves, wow, her knowledge is just so wide spread the fact that she can just sort of rattle that off, i mean, just a great. Congratulations. I try to do my homework, guys. Tim, the last word on this. Literally. Alabamas finest tua this week was having a crush on shania twane hes gotgood taste alabamas finest. So the bottom line is tim also has a crush on shania twain. Fast money fi bk ghafr isveisac we miss you. Like real bad. We cant wait to get you back so weve added temp checks, face coverings, social distancing and extra sanitizing to get the good times going again. Were finally back. And cant wait until you are too. Youre first. First to respond. First to put others lives before your own. And in an emergency, you need a network that puts you first. That connects you to technology to each other and to other agencies. Built with and for first responders. Firstnet. The only officially authorized Wireless Network<\/a> for first responders. Because putting you first is our job. Can i find an Investment Firm<\/a> with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Welcome back to this special edition of fast money. Closing deep in the red as we listen to shania twane coming up, nikolas founder and executive founder and later, why this video is the perfect metaphor for the markets right now. Well explain when fast money five returns. Can i find an Investment Firm<\/a> with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Its like walking into the Chocolate Factory<\/a> and you won a golden ticket. All of these are face masks. This looks like a bottle of vodka. But when we first got these, we were like whoa [laughing] my threeyearold, when we get a box delivered, screams mommys work mommys work. With this pandemic, safety is even more important to make sure we go home safe every single day. Welcome back to the past five. Nikola has been surging since the june 4th debut up over 87 next week is a major moment of truth for the company. Joining us is trever melton. Welcome back great to speak with you. Thanks for having me on. Monday is when reservations are opening up what are you expecting weve been waiting for this for a long time. Nikola finally allows people to make paid reservations for the nikola badger. Its the coolest pickup truck the world has seen its a big day on monday and those reservations turn into tickets for nikola world when we show off the badger. The next four or five months will be an incredibly fun time. You mentioned its the coolest pickup truck the world has seen the world hasnt seen it, right, trever no. At what point will the world see a truck and one that can operate as opposed to mockup pictures because thats the question for a lot of analysts and investors . They like the longterm vision and see the market as large and potential big but they go back to you guys have not made a truck yet. Well, we have made a truck. We made the most advanced semi truck the world has seen we seen it last year driving on fuel cell and made deliveries with anheuserbusch. The technology is done were just now bringing it to the market the next four months everybody has to wait and get in line and monday, the reservations open. In december, they will all get to see it in person. All the critics will they seen our other trucks. In december i understand at nikola world youre going to line this up against competitors and might do a little racing or comparisons. Will it be operable in december . Will that actually be a truck that people will be able to test drive who are there or that youre actually going to drive on the stage or something to that effect . Oh, yeah, im probably going to rip a bumper off. Ours or someone elses, i cant tell you but it will be a show it will be operable and a bumper is coming off one of the vehicles, maybe the whole rear end of a truck. I mentioned this. You had an interesting tweet at the beginning of june about nikola world not being a fake truck show and there is that bloomberg article a couple weeks ago that asserted you misled the audience back in 2016 when you were unveiling the nikola 1 making references toward as truck drivable when in actually it lacked ports that would enable it to operate at all. Are you suing bloomberg over this did you not make those comments . It in fact, a fake truck show in 2016 no, it was a total hit job. Its really sad. I talked with him before the article was out. It was recorded and he refuses to release the recording that would show the world the truth every part on that truck was functionble. We didnt feel safe driving it that was the first truck four or five years ago it was operable but not that safe it could have killed someone in the audience we didnt know we were new. So all the parts were there. We took them out and showed them on the table to people and so its kind of sad that it was just a hit job someone wanted clicks. It wasnt that cool. Thats okay. It comes with the territory when you come with this valuation and excitement, always targeting for you and i kind of laughed with him because i said there is a lot of things you can hit me on. This is crazy. That was five years ago and the people there will tell you, we talked about it at the show. Not sure why he picked that fight. Okay. So between now and december 3rd through 5th when nikola world happens. Youre asking investors to basically say we believe you in terms of your time frames whether the nikola one or badger and we believe you the re reservations turning into actual orders what can you tell us towards tangible progress meeting targets, whether it be who you partnered with for the badger or what stage you are in the manufacturing process . We got a couple big things going on over the next four or five months that would give comfort to people. We have our factory in germany where we do a joint venture and zero emission semi truck coming off the Assembly Line<\/a> hand built. Ill be taking videos of those showing some testing of those to the world, as well over the next, you know, following month. That will be a lot of fun. The nikola badger ill leak certain videos to the public its about the lead up the four months all the way into, i guess, however many months until december leading up into that is excitement. We dont want to give it all away at once well announce who will build the nikola badger with us in the next couple months and announce how many reservations. They open up this monday at 11 00. All the reservations open up to get this line with them and get a ticket there will be a lot of data and leaked videos f. Y if you followed me, ive done videos on the Battery Technology<\/a> where the only Battery Technology<\/a> out there thats really advanced. Its awesome i did videos on that and the system all these are systems that people thought were fake and so its just kind of cool to like kind of fun to prove the critics wrong and not just give everything away in one day. You can concede, though, trever that proving the critics wrong involves actually not just making videos and talking about these fantastic technologies but actually putting them to work so there is a little skepticism amongst your critics at this point because everything or many things youre promising are still promises, even though they are there and they are promising technologies i want to ask you about what has pressured the stock in recent days and that is registration of warrants filed with the scc is expected to becomefective in the coming days. I dont know if you have any comment when you expect that to happen that could be a major over hang for this stock j. P. Morgan is estimating in its initiation notes that could mean tens of millions of shares coming to market of nikola. Ill try to answer the best i can without getting in trouble ultimately, you have warrants that will come in and once those are approved with the s1 filing, were waiting for the s1 approval that could take anywhere from a couple weeks to a couple months. No one has any timeline on that because its the sec a lot of people are putting information out there thats not accurate eventual eventually, the share wills come online people that bought shares deserve them but we dont know when they will come and when they do, most of the shareholders we have are longterm shareholders like i have no desire to sell im in this for the long run there are some that will because the value increased so much they are required to sell some portfolio because one item cant have that much thats i guess thats the punishment for doing really well other people will buy. Its just the stock market thats how it goes. Trever, always great to speak with you we hope well talk to you again and keep us informed are you going to give us a number on monday idont know about monday because well be getting the data in but well see. It depends on the data i will be giving information after that date. Im just not sure when. We look forward to it, trever, thank you. Trever melton of nikola. Guy, what do you think well, i was absent the day in high school we did the periodic table so im not familiar with the properties of hydrogen j. P. Morgan hasthe 45 price target this could be a b. K. Put it in the draw stock much like tesla was. We literally have ten seconds. Would you saw its put it in the drawer b. K. Absolutely not. Trever is enthusiastic and probably the best salesperson his company could ask for. Coming up, moments away from revealing the final hot story of the week of course, its hot. What this video says about the current state of the stock market stick around fast money five is back in two. Between ideas and inspiration, trauma and treatment. Gained a couple of more pounds. Thats good for the babies. Between the moments that make us who we are, and keeping them safe, private and secure, theres webex. Beautiful. This virus is testing all of us. And its testing the people on the front lines of this fight most of all. So abbott is getting new tests into their hands, delivering the critical results they need. And until this fight is over, we. Will. Never. Quit. Because they never quit. Welcome back were moments away from revealing the final story. First, we got to take another fast break we have quite the video for you. Check this out someone captured a seagull eating a whole rat what is this a metaphor of first of all, its disgusting and you know what else the gull is the Federal Reserve<\/a> and the rat is Corporate Bonds<\/a> the Federal Reserve<\/a> shouldnt be buying Corporate Bonds<\/a> and seagulls shouldnt be eating rats that rat seems to go down easy but wont come out easy. That, my friends, is the metaphor for the market. So i think we borrowed that clip from rex chapman, big fan of the show and big fan of rex chapman and to me, there is a couple things going on sea gulls are rats with wings. You have a dynamic this is like godzilla. Nobody wins in the end it is also at a time weve been in a major trade war and there is a lot of war of words its the year of the rat in china. I dont know if there is anything going on there but thats a horrible, horrible video and i dont want to see any seagulls out there tonight. B. K. . For me, thats easy whether or not that lasts forever, davey day trader is on fire and what im referring to, hes out there and day trading and leading a band of robin hood and e trade traders. You know, its a metaphor for what is going on in the market you got a lot of smart Hedge Fund Managers<\/a> out there that have missed this rally up and a lot of the retail traders have done it. Speaking of hashtag ddtg, the day trading bonanza is the final story of the week. As investors have Leveraged Technology<\/a> to get a piece of the daily action, there has been an influx of young users on mobile trading platforms. We will break down what the day traders were buying this week, hi, kate hi, melissa day traders were big on tech and standout retail name that was gap shares soaring after the Company Announced<\/a> a partnership with none other than kanye west for the clothing line and more popular on the trading app robin hood according to robin track, the amount of clients holding gap jumped 283 this week. Take a look at some of the other big winners. Facebook saw unusual options activity after a hand full of Companies Pulled Ads<\/a> from the social network alp alphabet seen a bump in retail trading and finally, plug power. That among the most popular this week hit a sixyear high after multiple wall street analysts boosted price targets on a Clean Energy Company<\/a> and i know you talked to nikolas trever melton loosing allure with some retail traders. It was among the most sold names on the trading app melissa . Thank you, kate lets trade some of these names. B. K. , i dont know if you would dip your toe into a plug or the gap. Probably not the gap but you know, plug is kind of interesting. So its plug power for the challenged out there, thats not the type of plugs you put in your hair. What they do is they actually have Hydrogen Fuel<\/a> cell batteries. Guy missed the periodic table. Hi hiydrogen is something you can get a lot out. I traded this ten, 15 years ago. It was a darling of the day traders. Its come back i would caution folks, this is going to be a momentum play. It looks like it wants to go back to the 2014 highs of 1 1. 5 but lets make sure you size it appropriately and take profits in this plug power as it goes along. You know, given the influx of traders into the markets these days, day traders, we thought wed field questions from you out there. We actually is a question from adam in new york take a listen. This is adam from long island im 25 been watching the show and investing for about two years now. First, i want to say thank you guys for teaching me about investing and helping me make some money today i wanted to ask about shifting some of my longterm investment portfolio into emerging markets, specifically taijuan semi what do you guys think adam from long island has a question for tim tim, why dont you take it adam from long island, i happen to be in long island now, too. Thanks for the kind words. If you think about taijuan semi, this is not just emerging markets play but develop market play like i would argue samsung is it waiting in the em indexes around 4. 5 but maybe most importantly, in terms of its roll within the Semi Conductor<\/a> community, it one of the great white label provider for some of the biggest Chip Companies<\/a> in the world and its arguably the strongest of all the players because in fact, it is the goto. So you should be following it in terms of where demand and supply dynamics are where they are in invasion, who their major buyers are which are some of the biggest Chip Companies<\/a> in the world i would be long their entire Business Model<\/a> and in the range near the top of the range and an interesting time. Next up, we have a question from kit in colorado. Hey, yall, this is kit from the air force academy in beautiful Colorado Springs<\/a> my question today is on mgm. With entertainment closures and delayed reopenings, mgm fell this morning over 5. 5 its trading at 2. 85 multiple. Is it time to get in thanks, blue skies. Thanks, kit, for your question guy, take this we talked about the windcator but this is mgm. Kit, thank you and thank your mates and your service thats a great place to be well done. You notice that kit had voice inflection as opposed to adam. This is adam from long island. Inflection. Come on dont go after my guy. Its true. Adam knows im right. Anyway, so real quick, mgm went from six to 24 it closed today at 15. 60 big move to the downside on big volume the risk reward despite the fact im bearish sets up well 15 is a 50 retracement you can trade the stock along 15 my man and what is the air force acade academy logo whatever it is, you the man, thank you. Good for him. Well, ill tell you what, i mean, mgm is one that surprised me casinos in general surprised me. Again, this goes back to the fact that people have been a lot more willing to go back into crowded spaces than b. K. Is. B. K. , frankly, b. K. Has been socially distant for long before covid came along his life hasnt changed that much mgm i wouldnt touch. Weve actually got breaking news cocacola pausing advertising on all social media the company saying there is no place for racism on social media so cocacola in addition to hersheys announcing they will halt advertising on social media and this is a direct aim at facebook under pressure because of this flow of advertisers deciding to support this boycott. Tim . Yeah, its extraordinary. Wow. The follow through here and again, give credit to the early stage advertisers but when i hear this i think i know its very difficult time for ad dollars and if you listen to facebook and their numbers, that was the extraordinary thing. You really hadnt seen an effect there are other options. There are other Media Companies<\/a> that are hearing this news facebooks is their gain and again, singling out social media is a wild environment of unit certainty in terms of the messaging. Advertisers want to control the messaging and context in which their ads are placed they may be able to do that in other places. Guy im not well versed in the Crisis Management<\/a> companies here but i would suggest facebook hire one this weekend and this and thats not in a vacuum we talked about this earlier in the week and we said those companies on tuesday were the first, wont be the last cocacola, that is a huge, huge deal the fact that you mentioned proctor and gamble. There are s p 500 meetings and reevaluating ads and whether or not they are spernldinding on social media i dont know what monday brings. I think the water is over the levee at this point. Its broken. You know, Companies Like<\/a> cocacola and hershey, this is it you as a Corporate Board<\/a> member as a ceo cannot continue on. You have to go along it reminds me of when apple closed stores for covid, everybody followed behind monday morning youll see a lot more people pull out of the advertising on social media, facebook in particular. That does it for us on this special editio im sara eisen on day 180 of the Coronavirus Crisis<\/a> as cases spike, texas and florida reverse course, shutting down businesses and restricting o other activities its not going well, i have to tell you. Its not going well. Dr. Fauci points blame at younger americans for not taking the virus seriously enough outbreaks grow florida and texas are among the hardesthit states theres fear the sick will soon overwhelm hospitals. An ugly close, an ugly","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia803202.us.archive.org\/23\/items\/CNBC_20200626_220000_Fast_Money\/CNBC_20200626_220000_Fast_Money.thumbs\/CNBC_20200626_220000_Fast_Money_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240716T12:35:10+00:00"}