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tv   Fast Money  CNBC  August 5, 2021 5:00pm-6:00pm EDT

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live from the nasdaq market site overlooking new york city time square, this is "fast money. i'm melissa lee. tonight's lineup tonight on "fast," we're tracking the after hours action, shares of drop box and expedia and virgin gal acic moving and robinhood retreated. we'll dive into what is driving this action. and later nadine is pitching her next best idea why she thinks this auto stock is ready for the fast line. we'll bring you the name but we start off with the risks
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to the reopening the delta variant continuing to spread with more than 100,000 new covid cases reported in the last day that is causing companies to delay their return to work plans. the latest amazon, which said it will not require employees to come back to the office until next year. it joins a ranks of blackhawk and twitter and others pushing back returns meantime, other major events like the new york auto show have been canceled and causing consumers to tighten purse springs. new data from bank of america showing credit card spending has slowed but with the s&p, is there already a delta induced slowdown or are investors ignoring the thread, where do you stand on this >> i think part two of this. where everybody has the first time that it happened, everybody was nervous about hoarding toilet paper or cleaning solutions and everything else. now i almost, i'm not belittling
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this, but i think people are sitting back saying, you know what, i have what i need i would rather work from home. so you have amazon say i'll push it back and microsoft and well pushing back so i think getting into this is the new normal if you will people have enough money, people are sitting at home if you don't have a job, you have money being sent to you. if you have a job, you have money. the higher end has money so i don't think there is anyone lacking or desperate for cash. i think the retail population is okay i think the retail sector, i should say is okay i think by enlarge people are okay which means the economy is okay which means that the market is okay. >> there is a whole ripple effect take a look right here in times square broadway is not open yet and offices are not quite open and there have a lot of restaurants and hotels that are not open because they are waiting so there is our trickle down effect if businesses aren't going to open and things are
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delayed. >> that means the economy's recovery could also be delayed, right? >> i would tend to agree think you both make good points. there is already a playbook and some normalcy to the abnormal if you will and so people listen, i want to work from home and they've adjusted durable goods and be the main purchasers as opposed to services. and people have kind of tightened the purse strings. that is before we had insight into what the fed will do. and we have a fed put and people are operating as such and people in the market have now seen that the only thing that has a appreciated has been assets and i think they're continue to employ capital as such. >> the notion of the fed put, it is alive and well and there is an extra reason at least at this point, nadine, for the fed to say you know what, we're not going to move so fast. >> you're right, mel
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and i think there is one other element which is if you have a huge reopening this summer, there probably would have been some deceleration in the fall. there is natural, colds flus, kids going back to school and other issues but now it is like a slow reopening and in some ways that feels different and in other parts of world, versus having seen it this summer so i think that is why you could see assets continue to rise >> that is an interesting point, jeff mills instead of having this off to the races recovery, that this is a slower and steadier recovery that maybe the markets can digest and accept more easily? >> yeah, i think there is something to that and a lot of that does come down to the fed if things get too hot and the market worries about the fed stepping in and obviously that becomes problematic. we saw what happened after the june meeting and you've also seen, obviously the index hasn't reacted where we're at or near all-time highs but at same time a lot of thats
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have been driven by the technology stocks of the world, the larger market cap stocks so you've seen rotation there and away from your typical caterpillar, deere and uri so i think the market has fact orred in some of the growth scare already. where it flows into the qqq's is extreme and flows into tlt have been extreme so maybe the market has proised some of this in but it is under the surface. and i've looked at relationships to see where cyclicality is and if i look at discretionary versus staples you're starting to see discretionary outperform. if i look at semis versus software, we talked about that on monday, semi starting to catch some wind here so i think a lot of that tells us that perhaps some of the growth scare was priced in the market is sort of prepared for that and now we're actually rotating back to more of a cyclical leade leadership. >> let's bring in leishman and
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watched all data and you saw the bank of america report which is based on credit cards so it is recent daya, as of the end of july and they're sieeing moderation in spending what do you think the data tells us at this point, steve? >> we could be seeing some of the delta variant stuff creeping in i'm ultimately optimistic about this melissa, i this it is going to happen and it is happening i don't think anybody has the right metric to benchmark the reopening of a pandemic again. i don't know where you go back to, 1918 that was very a very different economy. plus the idea of the amount of fiscal stimulus and of course monetary policy out there. i don't think anybody knows what the right thing is to expect here i think by now some people thought we would have been off to the races and not looking back over our shoulders. suddenly we are. i think that has an impact and when i look at tomorrow's job reports, i think we're
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looking for 850,000 but some of the data i look at comports with the bank of america idea that maybe there is some slowing. it won't be as bad as may but maybe not as good as june. >> so steve grasso, glad to be with you so now you and i have head conversations over last years, based on the word transitory where do you stand now, this has to be so perplexing for everyone in your field, in your space, and you watch this on a da day-to-day basis, what do you think about, a., the ten year and the word transitory and how chairman powell has been dealing with this? >> so, i want to give you a full answer on that but i want to tick off one aspect of this. because one of the things that i have been, i will say most surprised about, is that the inflation problem did not matter tremendously to companies. i think that is one of the most interesting aspects of this whole inflation story. when you look at profits and
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what we did is we chronicled almost every comment with robert hung and richard wells, every comment about inflation and looked at how the companies did, they largely did well. so you could have predict the this inflation, but i'm not sure you would have made money betting against companies in that regard. so put that to the side. that is one aspect you ask me about the transitory nature, i think a bull is transitory i think the idea that for example opec volume or output is not back to where it was before the pandemic airline fares, they fell way down and they've been coming back but they're sort of in line where they were before the pandemic now so that is part of it. the question that is not answering right now is i think we're sort of on the cusp if of an inflation air mindset sets in you get wage demands that because of higher inflation down the road and rising prices i don't think we're there yet. i think some of the things edge off, you saw copper and lumber come off
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once we get -- two things have to happen. first, we have to restock the shelves of the goods that with out there. and then we have to get back the inventory. that is something that we didn't think about. you think about car inventory, across the board are well be low where they were to get back to the pricing dynamic that we have before the pandemic. >> cars are an interesting point. although part of that is chip shortage related in terms of wages. what we've seen i think in a lot of earnings report is wage inflation. and the need to pay -- the anticipation of increased labor costs into the back half of the year we heard that from general motors, we heard that from uber and lyft and so on and so forth. could the silver lining of a delta induced sort of speed bump in the economic recovery, is that the economy has time to work out these kinks and in terms of shortages, in terms of inflation. whether transitory or not, there is more time to sort of work through the issue.
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>> there is, melissa but you sort of nailed my main area of certain which is this, in one scenario wages go up with inflation and it remains high and we're in good shape. here is the problem. right now when i look at real earnings, inflation adjusted earnings, they were not keeping pace with inflation. so what has to happen is employees have to go back to their bosses andsy, you know what, thanks for the raise buddy, but it is not enough and that is where you get inflationary dynamic so i want to see the rate of inflation begin to come down and keep those wages high and then people will be better off one other aspect to this which is irning to me and i don't think we know what the story is. but you guys were talking about tech this rise of inflation should create a premium for productivity enhancing technology out there i think you're seeing some of that in the trade out there in the purchase, in the numbers in the earnings but i think this continues where the premium for companies right
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now is to find ways to use technology to bring down labor costs and all sorts of costs out there. >> steve, always great to speak with you thank you. >> pleasure. thank you. steve leishman nadine, what are you expecting in tomorrow's job report >> we're expecting it to be pretty strong. although i wouldn't hang my hat on just this one number. you've seen that people are spending on services, on unemployment is still high but we're making our way down. i think this is a slow recover and i think tomorrow is going to show that. i'm a little bit on the opposite end of steve, though i think that inflation isn't just transitory, it kind of sticks at a higher level so it feels more inflationary than if you saw it come down and be more deflationary so i think we have to be a little bit careful about that. but tomorrow for me it is a number but it is one of many numbers that we look at. >> if they hike the price of toilet paper, i'm not expecting
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that price to go down when commodity costs. i t i think charmin costs more do you think we're priced in for not just a delta induced speed bump but the issues that we've sort of highlighted here. >> we're not priced for a return for the first go around and you could look at vixes, priced to earning ratioed an valuationond any metric and they all tell you a similar situation. what is seemingly lost behind all of this is that you still have massive liquidity and i really think it is that simple we could start to pars data and make timelines, but ultimately the fed is the one institution that you cannot bet against and it just makes sense particularly where rates are and where we are globally in terms of possibly recovering and possibly hitting a hiccup we have all types of stresses on the medical system and we have international relation tension with china and i think you pars all of that
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but ultimately what has caused us to continue to leave tate and trade at these levels is liquidity and that has not chang changed. >> you say you can't bet against the fed. and the ten year yield, why are we not seeing that rise. it is all about positioning. everyone is saying he's going to stop buying bonds. so when that happens, you're saying i have to short them and then when the yields did not pop or when he continues to buy them, you have to cover them and what happens when you cover them, it sends yields back down. so i don't know if it is really an indication of inflation or lack there of or positioning. >> let's get to kristina partsinevelos with details. >> the shopping company gave us a mixed bag. losses came in at $1.13 but sale climb in slightly higher than expected at $2.11 billion.
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although ex pedia has benefitted from domestic travel, those continued weakness in international travel and corporate travel, and the company said that they have high consumer interest in smaller more affordable accommodations so think like a small hotel oar motel versus a villa in monaco the ceo did say that the recent covid variant continues to create uncertainty and quote, unfortunately the road to full travel recovery remains bumpy until more of the world is vaccinated the stock like you said plunging in after hours trading it is down almost 6% and led by the dire outlook for travel in the near term but the stock is still up about 14% or so in year-to-date back to you. >> thank you jeff, where do you stand on expedi expedia? >> it is bumping up in the after hour against that old 2017 all-time high. it is almost exactly the level
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of the rising 200 day moving average. so i do think holding this level is important at least if you're thinking about trading the stock. the valuation is a little bit more in line now with some of its peers. i think about think right now the nod goes to booking on valuation and its earnings report. it reacted much better. >> do you want to be in online travel at this point in time, steve? >> i think eventually it will recover and jeff alluded to the chart. so the 200 day moving average is 151.15 but it has outperformed bookings for quite sometime i believe expedia is up 22 percent year-to-date which is flat so this is put up or shut up but i this if you're going to see any further rally in the travel industry, it is with the underperformer not the outperformer which is expedia. >> and shares of robinhood shrinking. but believe more earnings coming
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your way drop box and virgin galactic we'll bring you all of the details when "fast money" returns. someone once told me, that i should get used to people staring. so i did. it's okay, you can stare. when you're a two-time gold medalist, it comes with the territory. ugh, these balls are moist. or is that the damp weight of self-awareness you now hold in your hand? yeah-h-h. (laugh) keep your downstairs dry with gold bond body powder.
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following yesterday's monster rally. let's get to kate rooney with more on this trade. >> robinhood stock closing 27% lowner a sharp reversal from the rally just yesterday closed around $50 a share well above the $38 share price where the trading app went public last week but it has been a volatile few days for name. and part of what sparked the weakness is that insides could now sell i've talked to venture capital investors who say it doesn't translate to a wave of insiders jumping stock. they now have the choice to sell and among the firms in that group of potential sellers today that robinhood disclosed in a regulatory filing, we had new enterprise associates, ribit capital and index ventures all three firms backed robinhood and and horowitz as well and we did get a bearish note out from wolf research that
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could weigh on shares. the firm initiating coverage at a $45 price target called it uninvestable in the long and short side they say it is too expensive to short and on the long side they call mean stock rick with yesterday's run you have, regulatory risk if payment for order flow comes under more pressure and that is impanel to handicap and they say there are some early signs of weakening retail trading activity. back to you. >> so just so i understand the people who are now allowed to sell, are these separate people from the initial quote/unquote insiders who were allowed to sell up to 15% of their holdings at ipo? >> so this was disclosed in a july filing. so we knew there were certain level of insides that would sell this goes back to january. they raised about $3.5 billion from the vc investors. so it converted to equity at the ipo price. we got more information on exactly how much they could sell and the numbers there so ribit,
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and nea, is now able to sell about 4% of the shares and to be clear they're now all able to sell but still the majority shareholders, nea, own up to 10% of the company still it gives them the optionality. we haven't confirmed if they are sellers and i've been making a ton of calls today, and investors are nervous to say if they sold and there is a chance that they didn't so that is sort of the takeaway here, is that it is unclear. the initial reaction was a little bit of fear that insides were quickly running to dump stock which does not seem to be the case. >> kate, thank you with a scoop on robinhood. bono, how do you feel about hood >> nothing to see here, right. i remember, i got up here when we were talking about game stop and amc, grasso alluded to it early in terms of supply demand and this is a example of supply
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and demand there is no valuation. i lauded some of the research being done by the public, by retail investors, looking at short interest and holders and understanding the mechanics of how a short squeeze works. i see none of that coming to bear here. there is much less observable date a this -- what could come out to cause a company loose 25% of its value. that is lost in this whole trading scenario. >> this does feel like this is going to be a stock that we are hanging on the last headline for price direction. yesterday everyone was reaching for it and everyone was tripping over themselves. >> as much as 80 plus percent. >> exactly 38%, 40% from the ipo. so when you have an imbedded group of dedicated people and we could argue over whether the people that actually use it, hate robinhood now, or love robinhood, but you still have an
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embedded force behind you that will carry your flag ultimately. that you can't bet against for me and i think we could be looking at the stock at 250, at 300 and no one would be shocked, right. or you could be looking at it as 30 and no one is shocked too so it depends on last headline and where payment for order goes and what larry getler wants to do and does that allow robinhood to still hang on and is sort of in in the gray area this is not one i would bet against. i thought about buying it yesterday. >> you did >> when it was on the way up >> are you nuts? >> yes but i am a cowboy when it comes to these type of names and most people that play in this name are going to be shoot from the hip type people and they're not going to be buy and hold. >> but today down 27% didn't tempt you? >> no, it does tempt me. and i will be in this stock. >> bet, play and shoot those three terms.
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>> associated with this stock. which is maybe how a lot of its trader base, jeff mills, regards the stock market, which is interesting. >> yeah, there is no doubt about it and i didn't read that wolf note but the first thing that came to my mind was uninvestable when you been hearing negative long-term takes on company and i hate to pile on but i'm going to and just in the sense that i don't know that price cutting loan or a fancy front end is necessarily sustainable disruption and enough to drive the company going forward. i think it is a great platform for new traders. that is clear. but beyond that, what is next for the company? i think the average account size is around $3,500 i have an account for my 7-year-old daughter set up
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but once balances grow and you get more sophisticated that game element becomes less appealing and you still have all of the risks like competition, regulatory risk even a market downturn and then obviously the current valuation. >> well the value proposition isn't unique now that most online brokerages offer z$0 trading. it is payment for order flow, the majority of the revenues and then within that it is a concentrated number of participants paying for that order flow so it seems like risk built on risk here. >> mel, you're right and i think the point about the payment for order flow is so important because you just know it is like a game of musical cares. sometimes all of the chairs will get pulled out and you don't want to be the one left playing the game sitting waiting for the chair that is nowhere near you and that is what is happening here right. it is this unknown but certain
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that something will happen negative in that regard. they'll not be able to keep all of the revenues which are profitable so then it comes down to what is the competitive edge and because there isn't a lot of trading history, because of who is profiting it up, it is hard to have any kind of fundamentals on this and from a trading perspective, it is just too wide of a range so i just sit out. i did read the report and this is the kind of thing this you just say i'm going to sit against it and i'm not going to bet against it or for it, i'm just going to sit out. >> here is what is coming up next. >> the earnings just keep rolling in we're digging into two big after hours movers plus nadine's winding up to throw some heat. she's taking the mound, next to give you her fast pitch. we have that and a lot more when "fast money" retur ns
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welcome back to "fast money. check out shares of virgin galactic and drop box on the move after reporting results the conference calls are under way. we kick things off with morgan brennan on virgin galactic. >> well fresh off of richard branson's trip to the edge of space, a wider than expected loss of revenue of just 571,000. but here is the big news ticket sales are reopening offering from the single seat to a full flight buyout price starting at $450,000 a seat for micro gravity and professional astronaut training, $600,000 a seat and that compares to $250,000 k charged for the first reservations years ago. and on the call the ceo saying there is evidence of deep consumer interest in our service
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and even expected repeat customers, so talking a lot about the service and how their targeting those sales and now that they're reopen and exposing the updated time line to service. late september for the next test flight and that is revenue generating for the italian air force. behind that modifications and enhancements to the mothership eve. the spaceship is air launch and then another test flight of the spaceship unit with commercial service commencing in q3 of 2022 now in terms of enhancements to their vehicles, they're looking to return turn around to four to five weeks between flights and working toward 100 flights between major inspections, also worth noting that second spaceship that is in production right now, the ss imagine is going through its test flights into 2022. but the call is still ongoing. shares are up 5% right now >> so, people who sign up a long time ago paid much less than
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what people will have to pay for now. i guess because they were taking more of a gamble that this happened and now it is more of a sure thing when does that price come down isn't that the ultimate goal of virgin galactic. >> yes and the ultimate goal and the competitor blue origin which is also operational and also taking money for tickets on its future flights as well with bezos saying they've booked $100 million in sales too. either one of the companies, they say there is more demand than capacity and that is the reason you're seeing the prices increase because of that, at least in the nearby term but long-term, the game plan here is to get enough spaceships into these fleets and the turnaround time fast enough that you do ultimately see those prices come down and this service, this type of service become more mainstream very similar trajectory as the early days of aviation. >> morgan, thank you
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good to see you. jeff mills you've been all over this name for a while. what do you think? >> yeah, i mean, look i'll keep repeating the same thing and i think morgan hit a lot of it but it is speculative by nature. because of the business model. so you have to figure out how many people are going to pay for it and are you going to have the repeat customers and what does competition look like. so if you're a shareholder you have to have the right expectations in owning the stock. it is going to be volatile and you have to be patient another stock that right at the rising 200 day, perhaps that is why you're seeing the reaction after hours on some that that positive news so i think the stock is risky. it is one of those sort of put in your drawer and don't look at it kind of names if i hold it, i would hold it in a smaller position but if i'm interested in getting exposure to space, i know it is a hokie name but there is that ufo etf
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where virgin is the largest holding but then you get exposure to other names that i do like. >> i'm been long virgin galactic since sum of 2020 and i bought it around 15 and change and i do apply jeff's mentality if you have to close your eyes an forget you own it. i'm frustrated with management they've done a poor job in communicating. that blue origin $28 million seat, that is what sparked a bid under virgin galactic. now the other thing they haven't talked about is the point to point travel 90 minutes from new york to london that is going to grab a lot of eyeballs and a lot of investment dollars. >> but that is like, way down the line. >> if they're not talking about this stuff and the other one is further down the line. as we've seen with boom and supersonic, people are por interested in point to point travel how i could get across the ocean or across the pond if you will, in under two hours
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versus can i go up in a pseudo space suit for four minutes. >> right let's take a look at drop box. shares are up by about 3%. job lipton has the numbers >> so heading into this report, drop box was up already about 40% this year. was trading right around the 52-week highs. now higher here in the after hours. beating on the top and bottom. better as well as for guidance, let me give you that for q3 they're looking for between 543 and 546 million. streaming at 538 and for the year-to-date now raising their guidance looking for between 2.136 and 2.142 billion. i did speak to rbc and he said q2 solid across the board showing signs of the business stabilizing and maintaining a double-digit growth. and he said committed to margin expansion and a attractively
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va valued on the call, they said drop box is uniquely positioned to support that we continue to be focused he said on making collaboration seamless and driving operational excellence back to you. >> josh, thank you bono, your thoughts on drop box in. >> taking a look at the stock chart, this is a text book uptrend. up to the right. it made a move from 24 to 32 the one concern is that the price target, i think it is around $33, trading aabout the $32 so i don't know the upside, but given the back dprop, you have a name with data sharing and storage, i think it is a safe hold. but this name does tend to trade volatile and reverse trend after earnings so i would probably pick my spots there. >> all right coming up, pen national and draft kings winning big if today's session. sports betting stocks each inking deals in the gambling
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world. but first nadine is taking the mound and winding up to give you her "fast" pitch she said this auto stock is a home run we'll bring you the name with "fast money" returns hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you it's a mirror, dad. you know?
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welcome back to "fast money. this mystery stock has been a tear this year and also nadine's best idea. she stepped up to the mound to deliver a fast pitch nadine show us what you got. >> all right, mel. it is volkswagen first they've really had an early mover advantage. and what do i mean by that the addressable market is about $2 trillion and for all they're doing it is going to turn into $5 trillion by 2030. they have invested capital, they've created technology that other people don't have. and in fact they're licensing it from them. and they have a global platform that other players don't have. they're europe's largest ev player and largest auto player and what do we see today, the president of the u.s. saying we have to have 50% of our cars ev by 2030. so these guys have an early mover advantage. they've transitioned to standard modules and they're using to leverage their growth. also they have more software in their cars which is really
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important for margins. and then also they've a battery factory, basically a giga factory in germany that will help them grow so i love that that is number one early mover advantage. two, they're rerating depends on execution and when they have to change the new markets or do acquisitions they have to execute their plan, easy and number three, it is an attractive investment right now. and what do i mean by that is that management team low balled. they are already having 8.8% margins and for 2021 they'll have been 6 to 7.5% margins so last half of the year has to be terrible which we know isn't the case and you get a four to five% dividend yield and they have free cash flow for the first half of $15 billion. and what they're saying is for the second half, well they're saying the $15 billion for the full year, they've already had $12 billion in the bag
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so i think there is more room to run there. they stream line costs an taken out 25% of the head count and refinancing their debt and a lot to lover so the six so seven times eb, i like this name and think you could hold this one. you could put this away in the drawer. >> bono as a question for you. >> around the financials, i have a quick question what risks do you see u.s. and chinese ev automakers posing here in terms of infringing on market share >> sure. well the chinese have been very, very strong. but we're looking at where they're selling into and it is a little bit less of an issue because they've had a lead and only 6% of their business is actually in china. so there has been a lot written about a concern around china and sales in china but i don't think that is a problem. and if you think the competitive nature of it, i think everyone
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is going to succeed over time. these guys have an early mover advantage. >> no more questions at this time to vote are you buying nadines pitch on volkswagen jeff mills, the only man in america who has a fire going in august tell us what your vote is? >> the balmy 90 degrees down here in south carolina the fire is lovely i vote yes i'm a big deliver, we talk about it with ford and gm but that re ratingtory relative to autos, i think volkswagen falls in that bucket so yes for me. >> all right grasso, what do you say? so. >> it is 90 degrees outside and 150 where the fire is kicking in i've going to say it is a buy. it is held this level. the problem i have with this is that the 50 day and 00 day have roled rovle over it has to hold the 198 level then exit the trade. >> dry heat in south carolina.
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bono >> nadine, for the win very compelling pitch. >> wow a clean sweep, nadine. the traders have spoken but it is your turn out there are you buying nadine's fast pitch on volkswagen? vote on our twitter poll we'll reveal the results late own in the show. and coming up, sports betting stocks making big news we'll bring you all of the details when "fast money" returns. >> miss a moment of "fast," catch us any time on the go, foll t "ston" dcowhefa meypoast. ♪ music ♪ ♪ dream, dream that's the thing to do ♪
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welcome back to "fast money. it is a big day for the sports betting space with shares of penn national surging after two billion acquisition. for more details, lets get to con sessa brewer. >> it is crazy not only for the canadian sport content but for penn national. in a deal that allows penn to bring in a bunch of third party operations in house. for $2 billion, penn gets a company that had a close yesterday of a market cap of less than a billion dollars. founder and ceo john levy has built a slick media platform
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that integrated sports besting content and market access in canada and thin gets an engineering team that jay noden admires. >> they're number three in north america and he's a big deliver that media and sports betting will create the winners long-term. >> another big deal of the day, if data drives sports betting here, draft kings just stepped into the driver's seat with jen -- sports fuelling its kr. is that a little bit too much for you. by partnering with genius, in april, this is what happened, in april, genius ports won the rights to distribution data and then draft kings will get that data and gets live video feeds of more than 170,000 events per year and oh, by the way, keep an eye on the data providers. genius, and sport radar, stats perform, they are scooping up
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streaming rights and content deals around world these are crucial data deals and they're coming to the table with a lot of power >> fascinating thank you. jeff mills, you've been on penn national for quite sometime. what do you make of this deal? >> listen, i really like the deal quite honestly. and i like the draft kings deal. and i think this is where sports betting is go. it is about the pov to digital and legalization i think over the next few years he'll have legalized sports betting so these are really important trends and i feel like we're in the early innings of the major partnerships and people consume sports through this betting i think it is aligned with their partnership with barstool and they beat on top and bottom line and they're also 50% off of an all-time high. think the 136 price wasn't justified but here at 25 times times forward, i think there is upside.
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>> bono, i never thought about data as being so important to these types of apps but it makes total sense. >> you make a good point i love the draft kings move. i think penn is doing tremendous things as well but this draft kings move, data is at the heart of everything that we do now whether it be sports, or whether it be marketing, optimization, you are looking under the hood to see how the data is effecting, how with re targeting things i can't say anything out loud without seeing it on my phone. i think the use case is justified. i think it is a tremendous move. >> draft kings has an uneven chart but i would rather be a buyer. penn's chart is in a downward trend. draft kings has been bumping down or up depending on how you look at it off the support level. so i'd like to be i buyer there. but i'm going to name pay safe that was a spac that is just hovering around this $10 level and hopefully these guys have
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deals with so many of these people in these market places that ultimately i think it should be a tail wind for them and they come out with earnings in the middle of august. >> energy trying to recoup from this week's losses, last month but the options markets may be betting on more pain at the pump we'll drive into the details next and there is still time to weigh in on nadine's fast pitch about volkswagen "fast money" is back in two. als, why keep it in different places? sofi is a one-stop shop for your finances designed to work better together. spend with sofi and get cash back rewards that automatically go toward your goals. like investing in stocks, etfs, and crypto. that's better together. or pay down your sofi debt sooner. that's better together. and that's how sofi is helping millions get their money right.
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welcome back here is a sneak peek at the cramer cam catch a full interview at the top of the hour on "mad money. meantime, check out energy stocks moving higher after a tough start to the week but one trader is betting that this move could just be a temporary reprieve mike khouw joins us with the action hey, mike. >> hi there. so we're taking a look at xop. this is the etf that tracks the exploration side of the oil business and we saw it trade six times the average daily put value today. now we need to look back to march when somebody put on a large put spread, it's the 73 put spread, expiring in
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september. 16 value times and they rolled out until march of next year buying 22,000 of the 7055 put spreads and net net they spent $5 million into premium to roll the trade up and the down side is not as far down as the 50 strike but it is either a big hedging trade or a big bearish bet. >> nadine, you're in energy. i think you're in shell? >> that is right s shell and bp everyone hated it last week but it is up so we're taking opposite side here and that is we look at the xop, it is got 2.5 to 1 on the the outside i'm looking at a range from 88 to 104 i know it was trading at 93 today. it is at the bottom of the trading range. so i would trade it. but we prefer to have the business, someone like shaw
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improvi improving margins and doing esg initiatives and bp we prefer to play the companies themselves but i've got nothing wrong with trading a stock like this, too. >> when you look at this, you have to be weary of esg as nadine just said to bp's chart pounced off the recent lows. the large names look better than if you go to the refiner names or anything else because the other names are factorying in we have a second slowdown or a lockdown yet again so it is value and nadine's names speak to the value complex. >> bono, where are you in energy. >> i'm on the side lines i think it was a big reopening darling and definitely had its run. i think given the unknowns you don't have to have a position on it and right now i don't have enough conviction for u.s. domestic i'm playing energy via other markets. >> all right for more "options action" tune into the full show tomorrow at
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5:30 where you'll find mike khouw. there is just a few more minutes left to vote in our twitter poll are you buying nadine's fast pitch on volkswagen. we have the results an the final trades up next it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪
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time to reveal if you at home are buying nadine's pitch on volkswagen. apparently america agrees with the traders. 56% of voters saying, yes, we are buyers good job, nadine home run let's get to the final trade around the horn we go. nadine, what do you say? >> got to stick with ev. early mover advantage and attractive setup. >> jeff? >> i'm going to double down on the automakers here. i think toyota has a really interesting chart. recently broke out of a seven-year base that run up but at tens time forward i think there is room here tm. >> bono? >> to answer your question about how i'm playing energy petrobras. not the cover off the ball in terms of earnings, to return value to shareholders. >> steve. >> jeff talked about doubling
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down i'm quadrupling down on this name psfe, pay safe, i think you'll see a turn in this name. >> thank you for watching "fast money. joining again tomorrow at 5:00 for "fast," don't go anywhere. "mad money" with jim cramer starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica i want to make you money it's not just my job it is not to entertain you, coach you. call me at 1-800-743-cnbc or tweet me @jimcramer every day i hear how expen


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