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tv   Fast Money  CNBC  March 8, 2021 5:00pm-6:00pm EST

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of wonder whether we're running out of steam. >> in general that value trade has been just running very hot for a while. >> on the topic of oil, don't miss first on cnbc interview with the ceo of chevron on the big rally in oil price and the outlook for demand tomorrow here on "closing bell." we're out of time for "closing bell." "fast money" starts now. i'm melissa lee and this is "fast money. tonight's trader lineup, guy, karen and bono game stock going wild again today and the monster move is giving new meaning to the retail trade. we'll explain. and new fallout to the massive hack attack, 30,000 u.s. companies possibly hit the key stocks that could see the most impact. and later taking flight, airline stocks soaring today, why now to be your last best chance to book a ticket on the reopening trade.
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we start off with the nasdaq falling 2.4% pulling the index into a correction and down more than the closing high. leading today's losses, apple dropping another 4%. it is now down nearly 9% in just the past week. so when you look under the hood of this tech rack, it is not just peloton and zoom, apple widely seen as a more defensive tech play is bleeding billions in market cap. so is apple shooting off major warning flares that a bigger tech sell-off may have be coming guy, we start with you. >> i don't know if it is major warning flares, jim cramer said this for years and he's been correct, apple is a stock you own, you don't trade and he's right but jim would point out as dan nathan has, that over the last couple of years you've seen peak to trough demand, sum of 2018,
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trading down 38%, like everything else in february/march of last year traded down close to 28%, 30% and right now from the all-time high we're down 20%. so it is not out of the realm what apple has done historically you hear people say all of the time, i wish apple would pull back so i get an opportunity to buy it and then you have moves of this magnitude and it terrifies people ly tell you and i've said this before, the reasons why stocks get to your buying levels and are never the reasons you want to have happen there is always something else and it feels terrifying but if you have a plan in place, i think that 113 level makes sense. >> so just a few bucks from where we are now what do you make of this, karen? apple has all of the characteristics you something you might want to pay, it has a big cash balance and pays a dividend and stimulus checks is a benefit to apple but here it is
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>> yes, well the only thing it doesn't have, for sure that you mentioned those are important, it is expensive relative to the market but i think it's less expensive relative to the market than it has been and what happened today was sort of interesting you had the high flier names, the morning started higher and then really sold off and the fang names that have been hanging in well, that sell-off really accelerated, led by apple and so it is getting to a level where i think i would start to add i think guy's point is an excellent one. it never feels good when gets to your level, right. so i would say buy when there is blood on the streets even if it is your own. i'm long apple so this is not been fun but i would absolutely be looking to add here, not to sell. >> are you worried about tech in general because of what apple is doing? >> i think you know my thoughts on this space. i agree that i do think a signal
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is being sent out but i think it is a signal of a rationality so when we're talking about the larger multiple names, right, we could walk through methodically and logically as to why it made sense for there to be a bit more volatility when i see that volatility in apple, we're not talking about a multi-hundred dollar p.e., we're talking about something in the high 20s and then i turn and look at volatility and i could take in four, or five times depending on where, ten times what i could take in for selling volatility in spy. i'm with the others and i think this is where you start to look for entry points you don't catch falling knives but you do use tools that we've all spoken about, about how ho start to leverage into a position i think that 200 day moving average that guy pointed out will be a point to watch if you start to see some consolidation, i think sell some down side put and get long and if you don't it gives youa bit more ammo to buy
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it on the reversal on the trend up. >> let's say apple does hold that level, guy, and you're able to get in. did you think that signals a broughter base for the tech trade? guy? >> i thought i lost you for a second no, i'm with you i lost you for a second. i apologize. i think apple is its own animal. i think the rest of the tech space is interesting in and of itself i think the fact that yields have gone and we've talked about this for months now, from 50 basis points in august to 1.6 today. i think that is what is weighing on this tech sector. and although jerome powell said valuation doesn't matter, it might not when interest rates are 10%, but it is now and that is my concern and some of the fears were assuage by david tepper and he might wind up being right, a lot
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sma smarter and wealthier than i am, but it is what it means to some high flying tech names. >> tim >> well i think you have a case whereas constructive as i would be along with these folks, let me take the other side and let me point out that the 13.5% under-performance by the triple q's or the nasdaq 100 or that which apple is the dominant position, it is down 13.5% in three weeks. and of all of these moments of call them rotation, call them a blow offtop at the end of august, especially for apple around that 128 level, talk about mid-october, that is the sharpest pullback we've many in years. and again, on a relative basis to the s&p so what is it telling you? if you look at obviously this is not an awful day for markets more broadly and you saw industrials and banks and some things that are not only just better valuation defense, but are parts of the economy that probably are going
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to see allocation and see growth i think you have to be careful the move of 5.5% on the semiconductor is an extraordinary move i do think apple is over done. i do think apple is a case where you could feel confident that the balance sheet is your friend not only that the re-rating over the last couple of years doesn't just disappear that the service business is worth something. so i do think that we are flu a phase of the market where i think equities will go higher but i do think that this tech trade especially in mega cap tech is different than it was in september. >> bono, i'm curious, i'm sure there are people listening to you thinking maybe it is time to start looking at apple and look at that 113 level or 200 day moving average or maybe they're thinking i should deploy into value stock, one that is seeing a bit, tim mentioned today's session, we saw regional banks do quite well. where would you place that money? given a one or two-year time
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frame? >> well, assuming that it is money that i can stand to lose, and it is assuming that it is money that i already have earmarked for investment, in the short-term i do like financials. i was on a few days ago talking about xlf and i think kre and kbe, the multiples there and the rotation that we're seeing, that is an opportunity to buy banks that are in 11, 12 x price to earnings that is where you're going to have a store value and have the incremental 3% to 5% increase in the short-term but i would not take apple off of my watch list >> tim, same question to you >> look, i like how the industrials are running. i like gm making a run back to the highs just under 57. i think you have a case where what i'm seeing in terms of the t strength, we'll talk about airlines, but another part is really the energy trade and i
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think you're continuing to see some of the resource trades, but just some sense that we're going to be seeing real industrial strength and in their different fuels to that -- to that industry so i like banks, so it is hard to argue with that i continue to think that the sell-offs on banks on some of the interest rate days are also confusing for investors because they say shouldn't the steeper curve be for banks and they have rallied and they have been sector to have owned for the last three months and when you see pullbacks on the high yield days and i mean yields moving higher, that is really to me more of a risk off dynamic that should be broad for banks. it is not some question whether banks have lost their mojo. >> karen with a rare hand raise. i definitely want to go to you. >> i just wanted to add one thing about the tech high flyers as caught up in those are a lot of things that did superbly well, like the docu sign of the
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korld and the zooms. so it is not just the move in the yield, it is also the sentiment, like today, a gigantic reopen trade so they're caught up in that riptide as well. >> our next guest warns the rotation into economically sensitive stocks is hitting extreme levels let's bring in tony dwyer from can accord i know you can't talk specific talks but say a mega cap tech stock like an apple which is seen as a higher quality more defensive name, versus a more cyclical oriented name, the next one to two years, which would you rather >> cyclicals but again i think that, mel, that rotation as you know from last summer, when it was really unpopular, with banks and tanks and the economic reopening trade because you are extraordinary access liquidity and such a friendly fed that was going to fuel a synchronized global recovery but to put it to you this way,
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the russell 1,000 growth, versus the russell 1,000 value, relative trade has given back all of the gains since last march. how about that so that is how extreme the move has been on an absolute basis, the russell 1,000 growth is back to where it was in august of last year so all of those gains that everybody is like, you have to get in and rush in, they've given them all back. that, i think, created at least a near term potential for a bounce in somebody's mega cap tech names and the stay-at-home growth names that have been hit so hard. >> tony, this is bono and thank you so much for making yourself available this evening on this rotation, you could see a situation where we have a rotation or a continued rotation out of growth into value and the market trade sideways? can you kind of help me understand or quantify to an extent what you think the market
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return result is from this rotation >> it is a fantastic question, bono and because it is -- when you add up information technology as an s&p sector and add in facebook, netflix, google and amazon which used to be in the info tech sector in 2018, it adds up to 38% of the market as of a couple of weeks ago so that means that because you're taking a lot of -- you're taking a big hit in those areas, it is subduing the s&p 500, and as mike santoli has been reporting, the equal weighted s&p was up today so we've been calling this a rotation sensation where you've just had to move out of the mega cap stocks and now it is very popular to go into the cyclicals which again i think it is been extreme enough, although, i want to be there for years. this is one of those, we have a global recovery with backlog and supply chain issues that going to carry growth forward for
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years. however, there is going to be periods of correction where some of the cyclicals i think, will take a hit relative to growth and i think we're entering that point. especially because rates have probably seen a pretty stable level up here. >> i was going ask you david temper made comments about that today, thinking ma maybe yields would stall around 1.6% but say they continue to move to the upside where do you get concerned overall market wise if rates get to -- for a lot of people say 2%, what is your sort of line in the sand >> boy, do i miss seeing you guys on set. guy, i don't think it is a level. i think that is a big mistake we make what is the level. you don't know the exact point what you know is when it, number one, worsens financial conditions so even though rates havegone up to 1.6%, the national
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financial conditions sub indices out of chicago fed have been improving. easing financial conditions despite the rise in rates and inflation break evens over the course of the last month have been basically flat, meaning market based inflation expectations, even though you've had a 30 basis point rise in the ten-year is what i'm trying to say is simply you don't look for a level of rate, you look for time when financial conditions stop easing, i think that is happened in the last week, and when inflation break even stock going up and i think that happened in the last month so i think we're right around there. we're in this choppy area with the tactical side is in no-man's-land and yields are probably near their extreme as mr. tepper said. >> tony, great to see you. i know you said you miss us. i think you miss the candy bag. >> i totally miss the candy bag. >> we'll see you the candy bag lives. good to see you.
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toney dwyer. he speaks a lot of reason and very rationally and market throws a tantrum when the rates go above a certain level. >> right on a day to day, it feels like a tantrum, right but if you step back, it doesn't move exactly lynnarly, i think what he's say makes great sense. it is an interesting point that even though the rates are moving, that that inflation break even has not moved so i think we'll see that inflation maybe be transitory. so all of that said, i'm staying long and i'm staying long banks. agree with tim, they will trade off if rates come back down but that is okay. >> coming up, the retail trade and the trader today's monster move in game stock has the two worlds colliding and later more on the massive attack on microsoft. those names ahead. and stitch fix, the stock is
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stick fix. plunging down 20% and to corte reagan with the reason >> hi there, melissa it was a mixed quarter for stitch fix the loss was smaller than expected but the revenue was lighter and we get more details in the shareholder letter so the company talked about revenue and guidance and just hang with me for this explanation. so they say that they saw unprecedented holiday shipping volume in the system overall and that caused delays in sending the bundles to customers and then also getting the unwanted merchandise sent back. and because the company doesn't charge consumers until that unwanted merchandise is returned, there was a delay in revenue recognition left for the quarter and so the quarter looks lighter than expected. if it wasn't for that, they would have met expectations. but here is the tricky part. they expect the shipping delays to continue in the current quarter and the second half of the year and thus are issuing a lighter than expected guidance, lighter than what wall street
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had expected now q2 adjusted was also light and revenue per active client was lighter than expected even though stitch fix had what it calls one of the strongest januarys on record, active users up 12% and more active clients additions in the quarter than the entire last year melissa. >> something sort of doesn't add up to me and maybe i'm slow, courtney, on this, but say tim gets a bundle and he sends two vests back it may not be recognized this quarter, but it would still be recognized next quarter. shouldn't it just be shifted as opposed to a takedown in guidance >> exactly and i think we all thought the same thing when we were going through this shareholder letter. it is 18 pages about ten is text and then you get into the tables. something doesn't seem right because it does seem that that delay in revenue from q2 or the recognition would then be made up in q3 so then why take down q3 and the
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also the full second half of the year so analysts are on the conference call and should be asking that very question. hopefully we get more clarity because i agree it doesn't seem to add up that that could be the only reason. >> courtney, it is karen, let me ask you something. so they didn't have clarity on this going into the quarter but they have clarity on it continuing to be difficult for the rest of the year >> exactly right. i guess they're trying to anticipate what the volume will look like in the total shipping system for all of the carriers and they think it will continue to be delayed going forward. i don't know some part of the port back-up and they didn't go into that and then the issue stems down through the rest of the supply chain. i would hope the analysts will ask this very question because i think those of us that read through this as the explanation for the revenue guidance going forward, it doesn't quite seem to make sense to me right now.
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>> courtney,thanks guy, just quickly on this, 18, 19-page shareholder letter and we don't have a lot of answers. we have a lot of questions it is amazing how long a letter could be and not give you the answers that you really want >> no, i'm sure they mentioned tim a few times and his vest, by the looks of things is never actually returned a vest but this is a $54 stock in the beginning of january it traded -- it basically doubled in a month and now it is tripped. and despite average revenue fer client, 467, i think you still have user growth i think you have 12% user growth courtney mentioned i will say something i can't believe i'm about to say, but you have an opportunity to buy the stock where is it tr started the year around $54 and it makes sense because i think a lot of people will be blown out and a huge volume day, one of the capitulation days on the down side and i'm not saying it is going back to 113 but i think it
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sets up well here. >> shares of game stop exploding, the company tapping chewy's ceo to lead the shift to e-commerce he's a major shareholders now. and etf jumped more than 6%. gamestop is still by far the biggest holding. the stock makes up 9% of the xrt, more than the rest of the top five names combined. so tim, you flagged this earlier. the xrt, what are you calling this. >> the r and xrt is reddit the two day move off the lows on friday is over 10% and not because i bought 15,000 vests in a minute and even though i'm always tempted to do that i think you have a case here where again look at the retail sector, the great irony here is some great names in retail we've talked about the move in
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costco lululemon down 20% and costco down 25% and walmart down. even ever other ways to have exposure to the consumer, i think there is some concern about the move higher in rates so look, this xrt and this reddit phenomenon, macy's was up 10%, i like them for the fundamentals but there is no question this is a name also part of that and the fundamentals are not macy's as they were is a years ago but it is now figured out how to right size and renegotiate leases and it is a better story that i think is legitimate but a lot of this stuff and in reddit, i'm not looking toin salt the quote/unquote movement and the xrt is not base on fundamentals here. >> and bono, you spotted air big trade in the xrt in the option pits what did you see >> yeah, different day, different story, same playbook so the trade that jumped out to
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me and the post active option today, 2000 of the xrt 12th of march, this friday, 90 calls, were traded for $1.25, putting a break even about 9125. that is only higher from spot but keep in mind the moves that tim has mentioned. we see moves like this on earnings and we're talking about a well diversified etf definitely worth noting. >> we have a lot more ahead here on "fast money." here is what is coming up next >> announcer: a global cybersecurity crisis the latest on the the hack that put tens of thousands of u.s. companies at risk. and later, a magical day for disney as the stock reaches a new all-time high. what is next for this stock in this whole new reopening world we've got that and aot l more we've got that and aot l more when "fast money" returns.
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welcome back to "fast money. we're learning more about a massive hack attack on microsoft's widely used email software some 30,000 u.s. companies could have been hit. eamon javers has the latest. >> reporter: the white house is leading a whole of government response, taking this very seriously. here is the statement from the national security council earlier in response to this hack which is allegedly coming from china. they say this is an active threat still developing and we urge network operators to take it very seriously. they say they're still figuring out exactly how network operators could mitigate this threat but i talked to the president of
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one of the cybersecurity companies today and one of the cybersecurity companies that first spotted this exploit in the wild and alerted microsoft to the fact that they have a problem with their microsoft exchange email server software and i asked them why this thing was so hard to see he explained that this one was tricky take a listen. >> it was quite under the radar. in the sense that it wouldn't trigger any security alarm bells, it wouldn't trigger any anti-virus software or the actions being taken weren't to tao alarming in terms of raising any alerts but when our team dug in a bit, we found, hey, these guys are exploiting a bug in microsoft exchange >> reporter: so two big problems, one is the fact if you patch this software now, you're not necessarily going to mitigate the damage because the attacker could already be inside of your systems. so if the chinese are in your system and you close the front door, the burglar is still in the building, that is not necessarily a solution the other big problem here is
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that other hacking entities around the world watched this unfolding last week and decided to pile on, take advantage of some of the same zero day exploits that these chinese hackers were allegedly using and that means that a lot more entities out there, a lot more groups of bad guys could be exploiting this same information, stealing this email and doing just about anything with it. so you could see ransom wear attacks as a result of the tack and we still haven't seen that play out so real problems for i.t. departments and people in the c suite trying to figure out what do. >> it sounds like it is small businesses but electricity providers were also hit. could you walk through, for people who are discounting this, thinking it is just small and medium size business if the chinese get into the personal email of an ice cream parlor, that is not a big deal but the ramifications are much bigger than that >> right
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yeah, i mean what microsoft said in its initial posting is that they were targeting infectious disease experts, law firms, nongovernmental organizations, so a range of things that could involve classified technology or could involve, you know, sort of defense industrial complex stuff generally. but also very specific medical and disease information potentially around covid-19 and other things so just imagine the damage that could happen to you as a company if your law firm got hit by one of these that is where all of your secrets are. so the problem is pretty exponential and we don't know who else has now piled on and is also stealing emails as a result of this same exploit, because a lot of bad guys around the world said, that is a great idea, we could do that too and they piled in through the week last week. >> thank you keeping track of all of this. our next guest is watching three cybersecurity stocks that could be worth a second look following this massive attack.
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let's bring in andrew nor witzski. >> thank you. >> aside from this tack, underscoring the need for cybersecurity, do you expect anything, whether it be a measure out of the government or something else that could compel companies to actually increase spending on cybersecurity? >> sure. you know, i think there is also an underreported element in addition to what your last speaker just mentioned about the attack the goal of the attack was not just to read your emails they're using this as a stepping-stone there were some small companies that were clearly attacked but there are also suppliers and part of the supply chain for the fortunate 500. is now they have access to a lot of information which will make their phishing attacking on the fortune 500 organizations much moree effective so this could be a far bigger attack than just the 60,000 or so organizations that have
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supposedly breached already. >> you have three picks, if we could just quickly walk through these. tenable proof point and z scaler and where they are ins of the additional business that you could see them gaining from an attack like this, and how they're valued right now. >> sure. so time, first thing, the organization needs to do is get the servers offline and analyze them and determine if they've been patched and determine if they've been compromised now tenable is clearly a beneficiary. their solution helps organization answer those two questions. they could provide visibility into what servers need to be patched and prevent the unpatched servers from connecting back to your network. and so they could also scan the servers for mal ware and last earnings call, amendment said 40% of their new large enterprise customers were greenfield customers, meaning they're not running any sort of vulnerability solution prior to
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tenable. that should tell you how underpenetrated that market really is. the send th-- the second thing s there is an interesting commonality between this breach and the solarwinds attack. both compromised on premises software and services so ceos have to start connecting the dots and insist that the i.t. move more infrastructure to the cloud. why take the risk of posting software that is compromised just let a call provider bear that burden. if that starts to accelerate, i think ticker zs is a clear beneficiary. they provide security for the cloud. rather than connecting a user to that on promise application, the user could just connect to the z scaler in the cloud. that will retrieve the content for the user they basically don't let the hackers get into the castle and do more damage >> do you foresee, this is sort of a strange question, andrew,
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but spending on cybersecurity, it is hard to prove that it worked so you didn't get breached so it is a hard case to be made when you are making a budget for a company. so is there anything that you think has changed because of solarwinds and this this most recent breach that will compel companies to go beyond spending what they are doing now or putting some sort of strategy in place? >> yeah, it is a fair question, melissa. this is reach objectivity, people have become numb about this and i think a lot of organizations are going to have so start increasing spending on various technologies that were exploited in these particular attacks. i don't think it is carte blanche to ramp up spending across the spectrum of all of the different types of solutions out there. but certainly vulnerability management, privilege access management is another big technology where i think a lot
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of cio's will have to increase spending on. those type of tools, they protect the keys to the kingdom. once you get breach, it is not really the end of the world. it is what makes a breach bad is when the hackers are able to get the data out of the organization that is what needs to be prevented so focusing spending on technologies that not only stop the hackers from getting in the first place but detect and prevent hackers from getting data out of the organization is a very high priority. >> all right andrew, great to speak with you. thank you. >> thank you. >> guy, where would you go in this space if t feels like we've been talking about this for so long. >> if you go back into january, i mean, fire eye and palo alto, and z scaler was up $230 stock and over the last week and a half it is down 27%. i think it closed around $160. but z scale just reported that btig and can accord and barren,
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all with $250 price targets on it, i don't understand why they've gotten hit as hard as they have. maybe it is a broader market thing. but any of the names, z scale or fire sky or palo alto all make sense in this environment. anxious to get back traveling again and we are too and that could have a impact on the airline stocks we'll bring you the trade. and later the hottest trend in music may have nothing to do with k-pop or the weeknd it may change the way artists get paid get paid "fast money" is back in two. worth is giving the employee who spent half his life with you, the party of a lifetime. wealth is watching your business grow. worth is watching your employees grow with it. principal. for all it's worth.
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welcome back to "fast money. we have new numbers on how americans feel about reopening the economy. an exclusive cnbc morning consult commissioned over the last week finds that 15% thinking it is safe to open and that attitude could have a major impact on the travel stocks, check out the airlines they were up big in today's session. buckle up because this trade could soon gain some serious altitude let's get to phil lebeau with the details. >> have you booked your summer vacation plans yet have i tonight, you might want to start thinking about it if you're going to take a trip, because seats will fill up
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quickly. here is what the airlines are seeing right now and why the stocks moved higher. close end books are booking up. >> and then you the summer surge, that is expected by the airlines, they're seeing that and that is why you have optimism on wall street that some of the carriers could get back to break even so if you are planning on making that trip, hopper, which tracks airfares and projections on where they're going to go, these are the numbers. march, round trip domestic airfare was $225 and supposed to go up to $261 to fly in june and by the way, the longer you wait, the more it will cost you. prices are expected to go up 6% per month according to hopper. three airlines hit 52-week highs, talking about alaska and jet blue and take a look at shares of american airlines, it was up with all of the other airline stocks but today it announced that it is going to do a $5 billion debt offering and taking out a term loan for another $2.5 billion,
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that is $7.5 billion and that going to pay back the treasury loan that it took out the most recently and finally frontier airlines, if you are somebody who lives out west, maybe in the denver area, you know those planes, they have drawings or the deliveries that show animals on the tail. it is planning on going public through an ipo they walked down the aisle in 2017 and now deciding let's try it again and see if they make it to an actual listing frontier filing none an ipo. >> sign of the times thank you. phil lebeau. tim, they'll venture to go public after a pandemic before it is even over. >> extraordinary so not a software company, not a tech stock but an airline seeing this as an opportune time in the pipeline here is the reason why it is a good time. not only are we going to have -- i think it is travel-geddon over
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the summer and i think you've seen airlines put limited capacity back to work. relative to where demand is picking up and everything that the analysts are seeing out of tsa and some of the demand levels that phil talked about, things are a lot better. and without increasing supply, they'll have the pricing power so what i would just say is that the valuations aren't terribly interesting right now and we talk about this on the show, that the enterprise value has gone up and therefore the valuations are a little misleading relative to the former earnings power. so be careful. look, i like delta airlines and i like it because i think it will probably over shoot to the upside but be careful. there is no value here at this point. but airlines in terms of the reopening trade is still a place where you think you could be. >> coming up, a magical day for disney the stock hitting fresh all-time highs and we'll tell what you has got investors so bullish and tunes and tokens how one now hot crypto asset could be a game-changer for the music industry all of that and much me enorwh
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i knew about the tremors. but when i started seeing things, i didn't know what was happening. so i kept it in. he started believing things that weren't true. i knew something was wrong, but i didn't say a word. during the course of their disease around 50% of people with parkinson's may experience hallucinations or delusions. but now, doctors are prescribing nuplazid. the only fda approved medicine proven to significantly reduce hallucinations and delusions related to parkinson's. don't take nuplazid if you are allergic to its ingredients. nuplazid can increase the risk of death in elderly people with dementia related psychosis. and is not for treating symptoms unrelated to parkinson's disease. nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. tell your doctor about any changes in medicines you're taking. the most common side effects are swelling of the arms and legs and confusion. we spoke up and it made all the difference. ask your healthcare provider about nuplazid.
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that california will allow disneyland to reopen on april 1st with limited capacity. the company is holding a shareholder meeting tomorrow so what the trade here and we're talking about the reopening trade talking about with a vengeance when it comes to airlines, how about disney? >> i'm hesitant to fight the reopening trend but the argument was that it would receive a c rating and when i look at its multiple versus netflix i think that is priced in, i'm agnostic here, more of a hold. >> karen, what do you think. >> kudos to tim on it all of the way. the streaming numbers are great. i don't know if it traded up together with viacom today i don't know if it was just the oprah interview or just streaming in general and add on the reopen trade sort of a nice, i don't know, golden locks for disney >> coming up, a music industry makeover how crypto is cashing in on show
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business we've got chor"ft mu me asmoney" after this ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪
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♪ ♪
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no, cramer today jim is off but stick around for "on the edge" breaking down the day's biggest stories at the top of the hour. a new craze breaking out in the crypto world and it is about crypto collectibles. tokens or nft's are exploding in popularity to buy things like article and dorsey's tweet and they are up more than 90% in the past three months. on friday, rock band kings of leon joined forces with nft and wallet company yellow heart to use tokens to bid on a limited number of vinyl versions of the album. joining us now the ceo of yellow heart, josh, great to have you with us. >> thanks for having me. >> what has demand been like and are you getting a sense these are people had a that are brand-new to nft's. >> there is a lot of adoption of
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people that are new to nft's first time buyers. >> how does it release a album on ntf change the game we understand that artists could be paid directly, but what other ways does this sort of change the way things normally go >> yeah, absolutely. so, you know, for the last call it 20 years, music was released on to a streaming service and all of a sudden music was just not available one day and then available the next day and people could listen and that was it it was audio the value around the art has been lost. and what ntf does is it brings it back. it allows the artist creativity to put together packages that are meaningful to their fans and prove scarcity around the collectible goods and it is a much better delivery system for value around an asset and around music, too. >> hey, josh, it is tim. thanks for joining us and congrats to you and the kings on
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dropping this. look, not since mike de moan made scalp a dirty word has anyone taken on the scalping industry and you started as a ticket agency but it is the entire 360 package artists could represent. tell us really the ground breaking element of this in terms of that almost anyone could create an nft now and how your not only disrupting but empowering artists. >> thanks, tim so that is the goal of yellow heart. yellow heart was born as a contract system or nft to eliminate scalping in live music. it got shut down with covid temporarily and we moved to user nfts to release assets or collectibles so there are tremendous scores of value and it will add a much better fan experience in buying
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these assets >> hey, it is karen. i wonder if you could explain something to me. i hear the analogy if you would buy a monnette painting or a poster, but when you buy the actual painting, let's say, or the analogy here with kings of leon, who then owns the poster part of it >> so, this is a situation where there is provable scarcity on the block chain around these assets these assets go out and they're visible there a ledger on a theoryum and you could see that they're authentic to the original goods are owned by that current owner. in a case where you might have an original work, that existed pre-nft, you might have a physical and some type of digit at creation. now it is moved toward full on digital creations w. kings of leons we did the first digit at carrying where we offered up a physical vinyl as redemption key
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within yellow heart system on the nft but that i believe is the first of its kind. >> josh, it is great to speak with you we hope you'll come back on the show and keep us posted on the adoption of this nfts. thank you so much. josh katz of yellow heart. karen, i'll go to you. you own live nation so there are implications in terms of how things are sold particularly by artists. >> yes i mean, that when you talked about the ticket, that did make me think, huh, i wonder if this is weighing on live nation at all. i think, i don't know. i don't know how it is going to evolve but right now live nation is so much of a -- it is the poster child for reopen a bunch of people in a small area sweating and screaming for a long time is really -- a very reopen trade but had to trim some. it was just too expensive. >> i talked to a vc person who invested in nft and the extrapolation is that there
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could be physical assets like say a berken bag which i know you could relate to and could then be sliced up into ownership slices and sold by nft and you could prove that you own part of that burken bag and that there is a providence established of that burken bag. >> what a romantic gift around valentine's day. a burken bag, but i got you -- i mean, listen, it is fascinating. it is way out of my pay grade. i think we should nft some of the "fast money" work. why not. i think it is genius i'll start one up right now if you want on the inter web. >> because there could be no bidders. > next, we have your final trades
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final trade is sponsored by interactive brothers, minimize your cost and maximize your return final trade time tim? >> mel, i know you love that de moan fast times reference. so gm, you have cyclicality and you have valuation and you have ev there you go
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gm. >> bono? >> i caution against fighting the trade momentum names and tesla holding up true on the way up and down. wait. >> karen >> apple, i don't think the bottom good evening i'm scott wapner, jim cramer is off so we're trying to something different. all week long we'll bring fierce debates on the most provocative questions of the day, some of the most controversial characters finding the sharp pointy corners of the business world. this is "on the edge." ♪ ♪ it is good to have you with us on this monday night. our top takes tonight, should


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