Were going to find out why. Plus, tiktok goes the clock. Were all over latebreaking developments on tiktok and wechat negotiations coming down to the wire. Later on, wheres the beef what fed shares of beyond meat into the grinder today were going to begin with the worlds Biggest Company in a little bit of a world of pain lately that is apple falling another 3 today. It is now down 22 from its record high earlier this month that, my friends, a market cap loss of only, you know, 500 billion. Put that into perspective. That is equivalent to an entire visa, a j j, maybe a walmart and a Proctor Gamble shares of alphabet, facebook and amazon also dropping this week is this just a tech timeout or do you see a rollover and maybe some more pain ahead on the tech trade . No. I see a rollover this is something that i positioned myself forprobably about a month and a half or a month or so. When you look at apple, apple is 13 of the qs, amazon 10 , microsoft 10 of the qs. When you look at a chart of apple, go back to the date where they announced the split thats where the stock jumped. So whats relevant about the price that its trading at now around 107, thats the level that it jumped to. So if you want to see where the support should be in the name, i think its going to trade to the 100 day. By the way, this is the first time its been below the 50 day since april, brian i think its going to the 100 day, which is 96 and ultimately to the 200. Thats 83 do you realize what the world would say if apple traded down to 83 cats and dogs living in harmony together, this would be disastrous for tech, but it would be tremendous for value. Ive been positioned that way. I think its the start of something much bigger. This year is the worst level that value has traded to on a valuati valuation. Its over. Its extended. Value is the new growth. Good thing you didnt bring a hot take or anything like that by the way, steve, we were happy when apple hit 83 on the upside, presplit, of course. Now i guess well be sad if its the same 83. Nancy, do you own apple . If so, are you one of the sellers that are out there this week i am a longterm manager but i invest in the small to mid cap space. So we have not been able to own apple for many, many years, over a decade but i do agree with steve that i think this could be the beginning of a meaningful switch in the market. Not necessarily away from all caps, but certainly away from some of the tech thats been most exploited and that people have been most excited about, the companies that have been the market share gainers in this environment. I think its interesting to note that the day that apple peaked was also the day that the market cap of apple was larger than the market cap of the entire russell 2000 what we see here is a pause for these companies to grow into their valuations and while we do that, there will be an opportunity for other growth areas, whether they be cheap technology or industrials or transports or some of the areas emerging as the economy recove recovers, to take up some of that slack. We gave that as our stat that day. Jeff mills, youve got a broader take perhaps on the rotation that we may or may not be seeing i remember talking about this rotation before and then it rerotated back to tech. I agree with steve thinking about the longterm. Looking out 12 to 18 months i think value is the place to be the valuation gap is massive i think theres a lot of relative performance to be gained there on the side of tech, i do think it has more downside in the near term its not just apple. Look at paypal or shopify or even a docusign. Can value carry the day . I went back and looked at every trading day in 2020. There were 68 days where growth is down. Value is also down 80 of those days i dont think the rotation is going to be powerful enough to drive the Overall Index higher i think its note worthy to think about some of the rollover weve seen in credit card spending data, hotel bookings. Not catastrophic, but i think worth considering. It is, bonawyn. I dont mean this in any form of hyperbole. Were literally talking about a trillion dollar question i echo a lot of the points that the general just made yes, you are seeing this rotation i do think there is some downside in the interim. But im actually looking for areas to kind of get back into some of these names and ill tell you why so we talked about this rotation out of growth into value some of these names are extremely expensive. We keep talking about value, but really its growth into more sick cyclical names if youre rotating money out but no new money is coming in, i dont think thats going to take the market higher. Weve already talked about the percentage represented in the etf and the indices by these tech names unless were going to get an influx of capital, i think what a lot of us are saying is that we have a bit of a bearish bent on the market. I dont see how you can be fading growth, rotating into value with said dollars and still have a shortterm bullish sentiment on the market. Essentially i think were looking for a pullback from a risk reward standpoint, id rather be in value i dont think thats what takes us higher at all i think that just to wrap up the little bit of growth versus value, when you look at what jeff was talking about, i dont think those are great stats i dont think the actual rotation was happening at that point. I think that was the reason value sold off with growth having said that, look at where we are in the calendar were in september so a lot of these funds have to sell because apple, amazon, google, microsoft became too big of a percentage of their funds so they have to get out of those and they have to buy Something Else they buy what has not rallied. So on a percentage basis, of course not tech is the biggest part of these indices. But when you start to look at a relative basis, value will outperform and then when money starts coming back in, it wont go back to those old tech names. It will go into all of the other sectors and all of the other sectors combined will be enough to move the market higher. It looks like it might be because the russell 2000, the only major index higher this week, up 2. 7 . The nasdaq, s p and dow finished the week lower how much more do you think there is to go on the upside for the little guys, your space . Well, there is a tremendous amount of room all of the stats that weve talked about is the discrepancy in valuations between growth and value are magnified if you look at the difference in valuation between large cap and small cap, particularly as you go down the market cap spectrum. If you look at the most recent cycle that began in 2014 and 2015, what we saw coming out of that period after the great financial crisis was actually large cap, high growth, particularly tech stocks were very inexpensive they sold for less than the smaller cap tech stocks. That has reversed. It reversed dramatically earlier this year and that reversal still holds. We think there will be a great opportunity as this rotation continues in the small cap universe and it will be led by the fact that Earnings Growth should be greater over the next three, four, maybe five quarters as the economy starts to recover and as some of these Tech Companies come against tough comparisons caused by the explosive growth theyve seen this calendar year. Nancy, well get back to you in a minute. Right now weve got some breaking news and new developments out of d. C. On tiktok and wechat. President trump making comments on a possible tiktok deal just a short time ago reporter its been five days since bytedance chose oracle as its trusted u. S. Tech partner. The white house has yet to weigh in on the deal three sources familiar with the matter and a Senior Administration official tell me that Steven Mnuchin has been working the phones around the clock to try to salvage a transaction after the president and National Security officials balked at the fact that the deal would only represent a Minority Stake being taken on by oracle here in the united states. The dilemma is selling enough of bytedance to make the president happy, but not so much that china would block the transaction for fear its giving away one of its own digital champions. President trump said he wanted to reach a deal quickly. Theyre going to be showing me everything in a little while on tiktok. We have some Great Companies that want to buy it and were looking at those companies were looking at the security with respect to china and were going to make a fairly fast decision i dont think we have to delay it too much. Reporter as for those companies, President Trump mentioned at a briefing this afternoon that perhaps microsoft would reenter the fray the Commerce Department has noted that as of sunday users of both tiktok and wechat, which is owned by tencent, would be banned from inapp transactions. The clock is ticking and the User Experience will start to degrade quickly. To be clear, an important point is that the app will still work you just cant do any new downloads but its not just going to shut off sunday night, as we know. Reporter that is correct, but its unclear whether bytedance or tencent would be pushing out regular updates to these apps we know they have been every few weeks as it is right now so certainly they would be barred from accessing any new bells and whistles in these apps the administration believes the experience of using the apps would degrade to the point that people would stop using them wechat in the u. S. Would be effectively dead, although they have extended the deadline for a tiktok deal with another party until november 12th, after the election i guess its ticktock you do stop potentially what is your take on oracle in all of this . Its so hard to figure out how these stocks are going to react in the near term, whats been priced in, what hasnt, does a deal get done ive been thinking about this all day and kind of approaching it from a more philosophical standpoint in that if i was facebook or snapchat, i would want to live and operate in a world where i was competing against tiktok versus a world where my platform could be banned or restricted or changes in some material way from a policy perspective i think these developments are generally not a great thing for the social media platforms we were talking a lot about app apple. I think maybe the bestest takeaway is the relations between china and the u. S. You cant talk about that without talking about apple. I think we avoid the biggest pain point at the same time you have 350 million iphones up for an upgrade cycle. 60 to 70 million of them are in china. I think as a shareholder of apple, you at least need to consider that as a risk. Bonawyn, youre young you know all these apps. Theres one called tril ler apparently what about a snapchat, facebook, instagram reels . Do you see a subsidiary trade off this news . Im an old soul at heart. Dont let the exfoliating fool you. In the shortterm maybe theres a little bit of a tailwind to some of these names, snapchat, instagram, but i tend to think this is more of a nonevent really one, the finer details of this agreement or lack thereof or posturing of approval by the u. S. Or china have yet to really be hashed out. Really whats the risk to me is if theres china retaliation against some of the u. S. Consumer Technology Brands those are the risks i really see. In the term, yes, it might be a boon for some of these names but i dont think it has a lasting effect, so to speak. Youre 63 years old you look fantastic [ laughter ] its like were in a studio audience coming up, a delivery double, shares of fedex on a tear this year one analyst says the stock will dl deliver profits for you. Later on, were counting down earnings out of nike thats what my dad does. Good job, michael ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our financial futures. Welcome back to fast money on a friday. A big, big call on fedex check this out citibank saying fedex shares could double to 500 bucks in just the next three years. Steve, the only thing i would d dither with in this call, they say, if you believe in ecommerce youve got to belief in the in these companies whats your take on it this stock has been the poster child for everything that weve been going through in the covid19 environment everything has been pushed online everyone is buying their food at curbside delivery. This is a perfect environment for fedex. Think about what that multiple expanse would look like Going Forward when you look at ups or fedex. Ups always trades at a premium to fedex first of all, fedex is overbought we see that in the stock price the headline that caught my attention recently was that they hire 27 more Seasonal Workers than last year that to me is bullish. That to me is the reason why the stock jumped recently. Its a bridge too far for me to start thinking about a double. I like them making these type of calls because theyre really putting their rep on the line when they do this. But i think theyre a little bit overextended what i would look at on the back of these type of calls are the paper stocks and everyone knows what im long westrock, wrk, that space is getting interesting to me and you might start to see some m a activity there. Jeff mills, i know you like fedex. Do you like this much . Do you honestly believe fedex could double in just a couple of years . Thats the question here. Im kind of with steve i think they could outperform and that can continue but a double may in fact be a bridge too far. Its interesting, last year you heard fedex say they thought the u. S. Shipping volume was going to go from 50 million packages a day to 100 million packages a day by 2026. Now theyre saying thats going to happen by 2023. Thats a big increase in demand. I think that gives them pricing leverage it changes the probability profile of the country does that mean a double . Probably not but do i like it to outperform generally. Usually it trades at about 2. 5 turns below ups, right now five turns below. I think you get a little bit of a gap there. Coming up, a day investors may be losing their appetite for shares of that stock a mystery chart on your friday a. Welcome back beyond meat and its investors getting grilled today, the stock falling more than 5 after analysts slapped it with a downgrade to underweight what do you make of the call here on beyond meat . Theyre saying basically you should beyond sell it, i guess. It makes a lot of sense i would like to note that the call was still longterm constructive on the name, essentially saying that the adjustable market supports it over the longterm if you look at it 23 times trailing ev to sales, the thing is expensive anyway you slice it if you add in the competition from impossible, the Competitive Landscape is shaking up a little bit. And the food service is really where the uplift is going to come from the stock. Thats still kind of at odds with covid going on. You need to seethat come into play before the stock can take the next leg higher. Price target is 120 the speed at which impossible is gaining up to beyond is a bit surprising even to them. Lets go around the horn it is already time for your final trade. Nancy, why dont you kick it off . My final trade is a Company Called dada. Its a mid cap name, an unknown tech stock in the Digital Transformation area. Its outperforming in the tech space. Love it bringing a british mid cap to the table, jeff mills. Top that i dont know if i can some people might be surprised to hear this, but i would be a seller of draftkings here. I still like the name longterm but its up 50 in the last two weeks. I wouldnt be an outright seller of the name, but i would be taking chips off the table. I dont think anybody would blame you. The stock is up 417 this year. Bonawyn i think hall iburton has some headwind in the shortterm. Steve grasso . You know i love these bold calls. I mentioned that about citi and fedex. I only like giving final trade where i think stocks can double or triple. Im going to give you one i think can triple here tonight. Olin i think this one can more than triple, but i think it would be taken out way before it gets to the level that i think. Great options action is next this was the theater i came to quite often. The support weve had over the last few months has been amazing. Its not just a work environment. Everyone here is family. If you are ready to open your heart and your home, check us out. We thought for sure that we were done. And this town said not today. Happy friday all you options actions fans melissa is getting a welldeserved day off. We have a great show for you as always here is whats on deck announcer with costco earnings next week, you might think its a good time to load up on Consumer Staples stocks, but the move could leave you with a stomachache carter worth