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tv   Fast Money  CNBC  January 3, 2022 5:00pm-6:00pm EST

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did not work, industrials did not work what are you watching here as we move into the coming weeks, ultimately to the first fed meeting? >> obviously you're going to watch to see whether there is more of a cyclical tone. people betting that the omicron surge is very intense but very brief. that seems like one of the things that people are leaning toward at the moment. >> we are out of time on this first trading day of the year. thank thanks for watching. "fast money" is next. >> tonight on "fast," one strategist said this could be the beginning. what tom lee sees for the start of 2022. plus travel nightmares thousands of flightscanceled over the weekend hundreds more still in peril with the holiday delays could mean for airlines and the rest of the travel industry and a semi standout, the long lagging chip stock that made a big break through today and why it caught the eye of one of our traders. this is "fast money" for 2022. tonight's lineup -- happy new
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year everyone. we begin with a record start for this new year for the markets. the s&p and dow closing at new all-time highs to kick off 2022, the nasdaq jumping a percent, but apple becoming the first in the world to a market cap of $3 trillion, adding the last trillion dollars in just 16 months, so will the stock continue to be a leader in the new year guy? what do you think? >> hi, mels. >> hi. >> it certainly feels that way, right. and wed bush had a note out today they attributed half of the market cap to the services business and there is obviously a lot to like here karen and tim have been on this for years and dan talks about it all of the time. will it be a leader? it is late that they got across the finish line but it was up 34% last year and broader market up 29% and probably outperformed over the last month and a half i think it will do exactly that. i think it will be a market
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performer and steve grasso tweeted this today and there is a lot of truth to it, now that it is gotten to the $3 trillion mark, the next obstacle or the next threshold is going to be $200 a share and quite frankly there is every indication it is going to get there. >> yeah, i mean we have to think about what is next for apple, don't we, dan, or do we not? can we get to the next milestone with services and not revolutionary new products but evolutionaryproducts >> yeah, really what you're getting at is there is something around an automobile whether it be autonomy or something like that and that would be a heck of a service they don't even need to do much as far as hardware is concerned. guy said dan talks about it all of the time. listen, this is a universally loved stock. it is not one that for instance that i have picked individually. but it is becoming an increasingly part of anybody's portfolio who owns a spy or a qqq, etf, or mutual funds that track them and you think about it is 7%
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nearly of the s&p 500. it is nearly 12% of the nasdaq 100. this is a company trading about 32 times this year's expecting earnings and only expected to grow 2% on a about 4% sales growth, at that is very much predicated on services and then growing off this $1.5 billion ios installed base so this is a very expensive stock that just raled 30% in the last three months but like guy said it is up about 55% or so from the january 2020 lows but make no mistake about it, this stock will selloff and you'll have the opportunity to buy it it sold off from the highs in jarn to the lows in march of 2021, 20% and had two 10% sell-offs. so buying it up here at an all-time high when enthusiasm is at record highs doesn't make a whole heck of a lot of sense to me. >> that sales growth number that dan had mentioned, the consensus on facts is at least 5% annually
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for the next three years, karen. so is it worth what you're paying for apple right now for that growth? >> that is an excellent question it is the $3 trillion question, i guess. i mean, is it worth it right now? we'll see. i think that the expectations never end up being quite exactly what apple ends up earning so it is not cheap for sure it is not cheap. i'm long i don't know when to sell it, right. and then i have to figure out when am i going to get back in i agree with dan, we absolutely could see sell-offs here, multiple sell-offs in this name. ly buy more if that happens but i'm not inclined to sell it here i don't have a much better idea of where to put the money and they've continually been able to come up with new things we're going to see some refreshing later this year. i think that 5g still has legs so i'm staying long even though i recognize it is expensive. >> i ask this question earnestly, tim, and that is do
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we really care about $3 trillion in market cap in is that just a number that we like to seeize on or is there asignificance to this being the largest company in the world, at this point? does it change anything? >> well, happy new year, by the way. and the first thing that i think that dan talked about in terms of the flows of capital, that is what is significant here this is the biggest stock in the universe this is a stock that is up 130% from pre-covid so let's be clear, anyone that said that apple has underperformed, there is no way. it is outperformed the s&p by 65% and from the covid low it outperformed the s&p by 52% so yeah, there have been a couple of periods an until the november 15th to the year end rally when it outperformed by 20%, it is underperformed. at a time which liquidity is flowing and central banks have opened the spigot, it is a significant number because i think we'll have a big
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year in 2022 where we're at least watching central banks removing that liquidity. the most important thing about apple the stock is that the multiple has rerated on the back of the services business so if you listen to wed bush who said it will be a billion dollars by '24 that is a massive business that observes a 30 times or greater multiple relative to peers and that is significantly less of a multiple than a lot of other folks that would be trading on a software or a recurring revenue multiple. the hardware business is trading at 15 times in the best product cycle of its lifetime. so in this market, apple is an own. but as everyone has said, be careful where your buying it. >> the other thing to consider with apple, guy, is that apple is a huge buyer of its own shares which helped. ed lee tweeted this out earlier and it is a two panel chart and it is market cap or stock price and the bottom is shares outstanding. they bought 82.5% of stock and
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they could buy back and not add any net debt through 2026. it is creating its own floor under the stock, guy >> yeah, it is pretty amazing, right. that added with the fact that passive investing and how many etfs and mutual funds that apple is in, you could start doing the math and understand as money flows and the news cycle and it is sometimes rendered moot i'll say this quickly, they probably get penalized crazy enough for the amount of cash that they have on their balance sheet. you could make an argument that they put that to work in a more productive way than just buying back stock the stock and their rating would actually be higher so quarter of a trillion dollars or so sitting around on a balance sheet, again, my sense is that is probably not' net positive, to some shareholders or investors it is a net negative. >> what do you want apple to do with its cash, karen >> buy google shares i would think google should buy
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google shares. i think apple is doing the ring thing. i disagree with guy in that i think as they buy back stock, they just reduce the float, the eps goes higher and the market is giving a higher eps and multiple so i think they've done a good job of cash management. they do have debt. not that they're plenty able to service way more debt than they even have. so i think i've done a good job with financial engineering and i wish that alphabet would do the same thing. >> speaking of winners last year, winners today, we want to know if one out there should stick with the same strategy or shake things up. you might remember that we tasked our traders at start of 2021 with coming up with the acronym they thought would rule the market that year tim's roo rise, and schlumberger and that trades up more than 9% last year. so tim, do you stick with this
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or mix things up >> well, i love mixing things up, mel. so i have to mix things up and i have a new acronym for '22 and the acronym would be live, l-i-v-e. i i think people after '21 need to live. the l in live is las vegas sands and it is ray bit of a coming out party for other hospitalities. what happens in casinos is a result of omicron and china related travel and immobility is devastating, the multiple is cut in half. so it is a great way to play what i think is going to be hospitality and coming out stocks the "i" is for internet stocks that were crushed despite the fact that the internatiet story
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most notable in china, again the chinese internet stock so k-web is the way i would play that, being down 66% from the high there is a huge opportunity here and i think china is starting to step back from the aggressive pressure on these names. the v is the vix and we all know there is plor fed in 2022, in 2023 and to me more fed equals more volatility and i think investors need to be selective because there is vol within vol but owning is critical and then e is energy again not schlumberger but the entire energy space, if you look at brent, i think a function of supply and demand having really reached a place where both makes sense but that these companies are run for investors not necessarily for company management and growth at all costs. i think energy will be a trade for investors in 2022. not just traders so it outperforms significantly in '21 but i think you'll see
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significant flows here in '22. >> so live is tims now in 2021 karen's was wtf. which i thought was very funny walmart and tjx, so what is your acronym for 2022. >> my am ron imfor 21 is wtf and that is really disappointing and tim i'm glad yours is live, not evil, which is the same. so my is zombie. and that is zillow, which is we've talked about a lot i love that they got out of the eye buying business and i love the assets that they have left and i love the stock got crushed. so that is the first one the second one is the oih. i too want to have exposure to energy for all of the reasons that tim just said it fits miock ron em nicely and i do own it so that is why i picked the oih but it could be stressed a lot of other ways the third one is meta platforms. i think that there is no meta priced into meta platform.
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so i've liked facebook for a long time and we know the head winds in terms of regulation and their in the dog house in terms of what they do for society, but in the terms of the cash flow generation and great business with huge margins, i'm staying long this name and then last one is banks and it would be great if we could annualize today's performance for banks all year i don't think that will happen but i do think they set up nicely in the move of 210 today, off a very low base. but i think that as the fed raises your goo going to want to be in low p.e. stocks and i think that banks fit the bill. so that is my acronym for 2022 zombie. >> which is spelled zomb -- >> i think it is difficult for me zillow is spot on. if we go back, we have people come from the conference and at least two people i think where zillow was their best bet and then it sold off so i think she's getting it at a great
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level. so i'm with her on the zombie, and meta, i said it a hundred times, i hate everything about the company but karen is spot on, the meta portion probably hasn't been priced in. that will do well this year. >> and we did also ask guy and dan. guy's was dawn and dan's was aarp so where should you be invested in the new year. we want to ask tom lee tom is managing partner of fund strat and a cnbc contributor great to have you back 51,000 is your target. you think it may be conservative and this is based on history stats that were pulled by your data guy at fun strat. what did you find? >> our head of data science is ken and he does work 24 hours, maybe there is two of them but what he looked at was two things, one is market performance after the s&p posts more than 27% gains, so which is what happened last year, and the
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median return since 1938 is 16%. so that implied s&p 5,600 and the second vector is midterm election years and in years where the control is democratic trifecta, which is what we have today, second half gains tend to be 16% so i think we are in a year where we'll be constantly surprised by the markets resilient, the first half i think is quite tough but i think that the full year is going to be very strong >> what is quite tough mean? >> i think 2022 is probably the first year that i have the highest probability of a 10% correction many called for that last year but we pointed out that a draw down that big wasn't historically supported but i think this year there is a chance that we could rally to 5,000 in january and then pull back towards something pretty ugly by the summer but i don't think that that
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is -- should be viewed as a top. i think it is going to feel gut-wrenching. >> agree with your out look here and 5100 from here is not a sharp cry. but if we have the sell-off at some point this year, then it is a good rally off the lows. you concern, you just heard our conversation about apple at $3 trillion in market cap, are some of the mega cap stocks becoming too big to fail are they too big of a components of the major indices here and might we have a hiccup, because are they the ones that will lead us lower when we do have the correction >> well, without question, s&p is becoming a tech index because of the weight and the best companies in america are basically technology, health care and banks i mean that is the really three big sectors of the s&p we think faang is going to be one of the outperformers in 2022 because of the p.e. doe rated
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last year and so we think the chances of the faang stocks including meta and apple having p.e. contraction is low so i think faang could be up 50% and as you are using acronyms, the top three groups are bitcoin related energies and faang which is beef. >> tom, you're always willing to play and we always appreciate that tom lee, of fund strat with his beef -- tim, what do you think of beef? >> i know where the beef is. and i do think that as we talked about some of the faang names there are places that the multiples make sense on bitcoin, and crypto related equities, that is the part i think investors are finding the hardest place to put their allocations in the stom. they're not having any problems allocated toward crypto. so one of the dynamics we saw in '21 was that crypto money was
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flowing back and forth and i do believe as a function of the wealth created there, the overall market is going higher so if crypto is going higher, we know where the beef is and it is in the market. >> an acronym within an acronym. i'm not sure that is legal in acronym-land but dan, what is your take >> i guess, listen, i think it is the mega caps that lead us lower and it is important to understand that last year there was plenty of investors look ago the fundamentals of company and tom just talked about derating we're seeing growth decelerate among the mega cap names and maybe there is further re-rating spl of some of these things. if you look at internet, twitter and snap they closed down on the year those were not great years and there was no shortage of other technology names, we could look in the arc complex that traded poorly so i think that comes to large cap. the best case scenario for 2022
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is that it happens earlier than later. because we don't want it to steam role and lastly, i'll say this, back to tim's racronym. >> i like that we had carter braxton worth talking about shanghai composite near a breakout at all-time highs and you look at devastation and the reasons why i think you want to focus out of maybe some of the larger cap industrial and banks in china and focus on some of the internet names so i like it. >> coming up, travel trouble, airlines kicking off with some turbulence canceling more than 1800 flights since christmas eve. so how will the travel stocks fare the details ahead. plus tesla's electric year one day old year the ev maker posting record fourth quarter deliveries and entering the new year fully charged. we have the details when "fast mone rury"etns
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comcast business. powering possibilities. welcome back to "fast money. check out shares of tesla surging more than 13% after the ev maker posted record deliveries last quarter rapping up the year with more than 900,000 delivered. let's get to phil lebeau with the details. >> much better than expected numbers. because nobody was close to expecting well over 900,000 vehicles to be delivered for the
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entire year. the consensus was 897. take a look at the annual sales growth for tesla and we're going all the way back to the beginning here this is a chart that i think if elon musk would have said this is our trajectory over the next ten years initially people would have scoffed he did say they would have growth in an s curve at first but then it would take off and it has taken off 936,000 topping that number for last year. by the way, that is 87% growth compared to 2020 sets up the question what would ko we expect next year the consensus is for 1.34 million teslas to be delivered. if that happens, from whereer that right now, that would be 43% growth and remember they have the texas and berlin plants ra that are scheduled to open shortly and they'll be ramping up production, feeding more of the demand that is out there but some people are saying 43%, i think that the number is going to be much higher fon 2022 deliveries adam jonas put out a note today
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raising the question, could they hit 2 million. and he wrote, at this point, we'd still describe 2 million as a stretch target but no one that looks -- but one that looks far more realistic following 4s x deliveries. we'll see what they could provide for 2022 when the company reports its q4 earnings this month or late next month. and going into that rbc, jp morgan and deutsche bank raising their estimates and we may see that again the interesting thing to keep in mind is that you have tesla reporting its deliveries today, tomorrow we'll hear from the rest of the auto industry. we'll hear their q4 numbers as well as 2021 for quote/unquote the internal combustion engine companies and also doing evs but
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primarily ice manufactures here. gm, ford and toyota, let's see what the reaction is tomorrow. but today clearly tesla's day with far better than expected numbers for the fourth quarter and for all of 2021. >> that is some forecast from adam jonas i know there are a lot of conditions surrounding that statement, phil, but to say is that even doubling its production next year or i should say this year we're in this year, we're in next year. >> right. >> it is pretty bold i'm wondering from your stand point, if terms of chip shortages and supply chain issues, tesla was able to navigate them completely and deliver more than what they thought. how did that happen? >> yes well a lot of this has -- elon musk talked about this after the third quarter and that was the surprise quarter that i think a lot of people said, wait a second we thought operations would be the weakness for tesla as they continue to grow as an automaker. and they showed that they could handle the chip crisis they've done a number of things
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to make it so they do not have as much reliance on certain chips and as well as working with certain chip suppliers to make sure that quote/unquote they are the ones that get the chips as quickly as possible and as a result, they've been able to navigate this situation far better than others look, i think it was daimler cto saying that they expect the chip situation to be a scarce one in the first quarter and you have tesla continuing to ramp up production it has people rethinking how they look at tesla when it comes to manufacturing >> phil, thanks. phil le beau in chicago for us as karen mentioned, we'll get the legacy automakers tomorrow it is going to be a real story of contrasts in terms -- contrasts i should say, contrasts i should say in terms of how people are navigating the supply chain issues.
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>> right i mean, we saw that in market contrast the last quarter, the one that phil was talking about, how it doesn't effect tesla the same way it did gm but i would point out the number of cars gm makes is bigger so it would make sense that it is hard ter to get that many moe chips. but tesla clearly did a better job. i hope we get some clarity from them i hope to see big numbers from there. i was just reviewing with gm up so much today that adam jones piece from late december where he values their ice business at zero and their ev business at 51 and then a bunch of other assets to get to 75 but that is -- i'm not exactly sure how he came up with the 51 but it is so interesting to me that even with years of cash flow from the ice business, he has it at zero i'm long, so, nobody is right
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one way or the other the 75 or somewhere else. >> it was a big day overall for ev makers. the chinese ones in particular, all of them were reporting earnings and neo is the end in your dawn trade. >> your sharp as a tack. yes, it is and it is a couple of weeks ago when they traded at 28 and finally on the down side and i think this name, i hate to use this term, but it feels like it is a bit of a cold spring. i think people will talk about them and look at neo's deliveried in december up 50% year-over-year. so there is some room. in terms of tesla, i think we've done a collective good job with this stock we said it would trade and take a look at the prior all-time high at $900, on december 20th if you go back and look. and now technically this stock is set up to print $1,500 if not higher and it is just a technician thing but tesla sets up really well.
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but i think some of the other names do as well. >> we're just getting started here on "fast money. here is what is coming up next >> announcer: bumpy skies ahead, airlines ringing in the new year with a rush of canceled flights. the travel trade impact is next. plus, a chip rip dan nathan is flagging the move in one surging semi stock. he'll break down what it could mean for the space there is more asmoy""ft ne coming up. and want to make the right moves fast... get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it!
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flight aware reporting 4700 cancellations worldwide as of moments ago, that is just for today. yet airline stocks, they took off. united airlines, alaska, delta, jet blue and southwest rallying today. why do you think, tim? >> i think it is a function of being able to see the other side and with the case of a lot of the airlines, they gave some guidance in december, mid-december, some of which wasn't great southwest did a favorite to the other carriers by dropping a cost bombshell on the market and they suffered. and since that point sarl stocks are up 10% delta is up almost 20% and they had an investor day where they pointed out '22 is a difficult cost, chasm, they'll go up 10% to 12% the average seat miles is going to shrink by 10% so on some level it is a blend that at least we know where they're going to be and with airlines it is always about how
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efficiently can they run look, for delta on in terms of the stock, a break of 42 and i think you've broken the down trend in the middle part of the year they're the premium play if you want to own one airline, i do own them and i think they continue to take that premium market so, yeah it is not been an easy trade, but by '24, if you listen to delta, they're going to be roughly $8 a share, $7 a share on earnings which makes them less than six times a share right now on that number. >> 2024, seems like a long ways away i know it is only two years but that is a long time in the course of a pandemic, guy. maybe gone, knock on wood, hopefully it is, but we could be in this situation where there are ups and downs. >> but interesting, we've talked about this, look at the airline stocks they all collectively topped out in april, i think, when the news in terms of the vaccine was at its best and then te started trading re
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lower. now the news is at its worst again. i think you want to listen to what stocks are telling. i'm with tim on this one i think they're clearly looking bast this variant and again as a human being, it is hard to do that but in terms of an investor and a trader, i i think you have too that and throw a couple of other names in the mix skpedia and airbnb will be around 210 or so so i think you want to be in the travel names as the news starts to abate and the stocks continue to grind higher. >> let's get more on travel with the fallout from omicron, francis davidson is the co-founder of saunder which is trying to go public this month there a spac great to have you with us. your main competitor is brairbn vrbo, hotels and all of the above. >> we're a hospitality disruptor and that means we offer a selection of beautifully designed hotels and apartments that you could stay in for a night, a week, as long as you'd like and all of the services are
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accessed through the sonder mobile app and so we run the properties ourselves and that enables us to offer consistently and quality and so we're partnered with the airbnb and the vrbo just like the hotels do. >> what you have noticed in terms of booking trends with omicron surging? >> well it is looking -- people want to travel i think it is theme across the last 20 months when we have the capacity to offer stays that are contactless and safer and using the mobile app as a way to get into the room we've a strong performance versus the average hospitality company over the last 18 months as a result of our tech forward nature and our capacity to stay longer an the digital nomads that have having more flexibility of working from my why. from our perspective it is looking good and the cases rising from omicron as we've seen in delta, which is pretty scary wave, the vaccines have
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changed the game in terms of consumer behavior and people are eager to travel. >> francis, thanks for joining us you mentioned you're trying to go public through a spac it is going to close soon. how does being public kind of advance some of the goals that you just talked about and i believe that you guys have put out some results over the last two quarters and we've had dealt saw and omicron, so you guys, tell about the performance during these two variants and what you think for the balance of 2022 for your own business? >> well, listen, we've exceeded expectation and raises our forecast two times we were up versus 2020 and that is despite as you mentioned headwinds when it comes to some of the turns that the virus has taken. so we feel really optimistic as a business and frankly this transition to the public markets is something that we've envisioned since the start. we want to build the business for generations to come. and we think that this is just the start and accessing the public market givers us the
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balance sheet to lean into the recovery despite there is uncertainty, we're not going to lie about that but having a strong balance sheet enables us to play offense. >> thanks for joining us karen, in the travel sort of chain, where would you want to be in airlines, hotels i'm not even to to throw out cruise ships where would you want to be >> i'm going to say no all of them. tons of debt this is a reopen trade, live nation, now a dan name also, and ulta so i have no exposure, it is been a big miss on that recovery and all of those names, airlines hotels and cruises, but the balance sheet just kept me away. >> dan >> yeah, so i find names like this really interesting. this is about a $2 billion deal when it closes here and i think that the one thing that we spent a lot of time this year or last year at this time talking about all of these companies coming public via spac and i think a lot of the names have gotten
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lost in the shuffle and think there is great companies for investors if they do the work over the next year or so, i think karen agrees with me here because i've heard her say very similar, we're going to find some companies in the public markets that have small market caps and they're going to grow into the valuations and i expect sonder is one of them. >> coming up, nike running higher in the second half of 2021 and one analyst thinks the stock could keep pace going into the new year we'll break down that call plus our own dan nathan is flagging a big move in one particular semi stock. the name surging more than 7% today. he'll break down what it could mean for the space, next >> get your trades to go with the "fast money" podcast catch us any time, anywhere, follow today on your favorite podcasting app we're back right after this. (soft music)
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be sure to catch david faber's full exclusive interview with former disney ceo bog iger, talking about his time at disney and who may come next. follow and listen to the squawk on the street podcast today on your favorite platform semiconductors were one of the biggest winners for 2021, far outpacing gains for the broader market but one big holding in
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taiwan semi lagged the rest, up only 10% last year today though, it made a big move maybe this is a catch-up move. dan, what do you make of it? >> really interesting, mel this is the largest holding in the smh that tracks the semiconductor group and we've spent a lot of time over the last few months, scratching our heads and why it is underperformed and it got a huge lift for the nvidia and amd and boradcom and i think goldman was talking about pricing power and they're expecting faster growth in 2022 and it is a cheap stock and you think about how their positioned in some of the handsets and exposure to crypto. this is probably a name that you want to keep a close eye on as it breaks out of the nine or 10-month range. >> do you like this price action, guy, or would you go with a tried or true winner from last year like an nvidia >> i think the price action is encouraging. it is traded sideways and
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finally breaking out i think 145 or so is the all-time high and you could make a compelling case on valuation obviously, look, nvidia, we all love collectively but i think qualcomm at 16 times next years numbers is cheap and qualcomm looks like it is about to going through the prior all-time high. i think if you had to list them, taiwan semi is poised and qualcomm is second and i stay with amd. >> where is intel in this, tim, which was included in the new dogs of the dow list so the top ten yielding stocks in the dow not that that matters. it hasn't been a winning strategy but it is interesting to see where it is and how it stacks up. >> and it gives investors some patience to hold this long-term for a turnaround that is talking about 30 to $40 billion of capex. but good news. but back to taiwan semi, people don't realize they that have stolen intel's lunch, two-thirds of the revenues are from leading edge technologies or seven n
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nanometers or lower so it is not as if they don't have a exciting portfolio and pricing power which i think dan referenced i think they benefit as some of the uber cyclical chips begin to underperform and this doesn't even count, they now are starting to talk to the german government about providing 28 and 22 nanometer from the auto industry you've seen this in japan and they've done had t here. they're one of the most important companies in the world that a lot of people still don't know a lot about. >> we showed you cisco because it got booted baz of the huge performance last year. do you see value in intel, karen? >> um, not for me. i mean, i see it that it is inexpensive. >> it should be. they clearly have a lot to prove. so until they start doing that, when hasn't really started, then i think it is sort of we'll keep this multiple. agree with all of the gentlemen, taiwan semi is really interesting and think qualcomm is interesting that is probably one of those two would be where i would go
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first. >> coming up, one options trader is betting big on the banks ahead of earnings. but first run, do not walk to buy nike shares. guggenheim, naming it thetop pick for 2022, the bull case is next much more "fast" right after this break you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit at cdw, we get your it staff matching has be readycription. to take on new challenges. that's why we built an office obstacle course ... to prepare our people for anything. you're late well, cdw amplified services experts will consult with you to design, orchestrate and manage your most complex technologies to help you quickly overcome any obstacle ... without all of this. oh, that is better. who's that? oh, if you want coffee, you gotta get past tantrum. you're in for a brewed awakening. for technology that moves you forward,
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welcome back to "fast money. take a look at shares ever nike moving lower today despite being named a best idea for 2022 at guggenheim it is our call of the day. leaving a footprint in the metaverse in the dominant market share. to be fair, the metaverse is mentioned as an example of nike being digital forward and looking forward to the future in terms of strategy, tim i'm not sure if it is actually entering into estimates at all but it is symbolic of where nike is headed. >> but where nike has been and they've been in the metaverse for some time and if you're playing road blocks, which i'm not, but you're there. so the story on nike though is dig digital and they're at 11% digital growth according to the numbers year-over-year on that they want to be 50% digital. the gross margin at 49.5% was a
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high light of the last quarter i think innovation is really been the story of the last four or five years. and north america so dominant in terms of the growth that it is alleviating some of the concerns that at least have been china. john donahue, an efficiency leader and part of the reason why the company continues to build that gross margin. >> karen, what are your thoughts on nike and are there other retailers that you think should be in the metaverse or you like their strategy in the metaverse? >> well, so for nike, i mean it trades at a premium multiple and it should. it was an interesting piece. they don't just get there on multiple expansion which is not my favorite way to get to a price target, it is earnings and they're talking about improvement and we've seen the hiccups, not just them but vietnam and elsewhere i think that will be resolved. i don't own nike i do own target and walmart and
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in some footlocker which is cheap. the more that nike goes digital, the less good that is for footlocker but i still think there is plenty of room there and in terms of nfts, i haven't bought one yet >> really? >> or made one yeah do you have one. i'll buy yours if you make one i'll buy it? >> it is going to be our 15th anniversary "fast money" soon and i wanted to see if you could make an nft. i don't know if anybody would want to buy the thing so that is a whole other -- >> well i'll buy it just so we don't get embarrassed. >> that is easy money. i have an if earnest question, for the show, number two in 2022, what are the margins on digital goods on a pair of digital sneakers, dan? this seems like a fantastic business >> yeah, i mean it is. listen -- oh, sorry. >> no, dan >> come on, tim.
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give me a break here, man. i think the way tim lays it out is pretty good i mean, these guys, one of the reasons this has the premium multiple over the last few years and it always has is what they've done in digital. but that is not the metaverse. that is just e-commerce and the fact that he knows that he's spending late nights on road blocks, dealing with digital sneerks and everything like that, they just made this acquisition a few weeks ago. this is a area that they're going to flex and if they're going to really be at the forefront of fashion, of course you have the ability to replicate at a much higher margin in the metaverse. >> in real life, guy irl. coming up are the financials on fire, one options trade ser betting on a smoking rally ahead. the move is next and later chipotle offering a new meatless option but shares are getting burned e.r traders will dish on that on much more "fast money" in two. .. serena... matrix...
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cnbc investment club and the banks opening 2022 with a bank the etf jumping more than 1% to kick off the year. one option trade ser betting $1 million that there are plenty more gains to come mike khouw joins us the action. >> happy new year. so if the financials we saw a lot of bullish today xlf, kales outpacing puts about by 2.5 to 1 and that is largely the result of a purchase of 20,000 of the february 41, 44 strike call spreads, they were spending about 40 cents. buyers are betting that xlf could rise somewhere in the neighborhood of 5% to 10% by the third friday in february and we did see similar activity in the top constituents of xlf. >> a bunch of them were up today, guy. >> yeah, no, absolutely. karen nailed wells fargo whether it was at its worst in terms of
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news, she stepped in but morgan stanley sticks out to me this is a name that stan hand everybody has talked about and dan brought it up a couple of years ago. they are in the right business they've transitioned and the most diverse in my opinion and i think they're poised noteem to take out to take out the 105 all-time high blue to take out the 115, 120 level from earnings on january 19th. morgan stanley sticks out as best in breed right now. >> tune into "options action" on friday at 5:30 coming up, it is meatless monday and chipotle has a brant new he t-based offering weavall of the details next, plus your final trades i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning.
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welcome back to "fast money. check out shares of chipotle after releasing the new plant-based cherizo. it is certified vegan and apparently it is made with a fresh peas not pea protein like beyond meat fresh peas guy, do you think this moves the
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needle >> moves certain things for me, you know exactly what it moves there terms of the stock, i don't think it moves the needle all that much. i don't like peas andn its purist form, coy only imagine what it is like in the chorizo form. >> remember they have cauliflower rice so they're intoing have vegetables stand in for other things there is a picture it looks pretty good if we have smell-o-vision we might be able to smell it. time for the final trade let's go around the horn tim? >> nobody likes his own material more than guy, but i like the bank of america a lot more than his material and i think the stock is going higher along with rate and earnings. >> does that say much? karen? >> yeah. i like kohl's, it is a ridiculously cheap an down $13 from where they put up good numbers and we'll see if two weeks if they want to come back or not. >> and dan >> the xpi, the s&p biotech etf,
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i think it is moving up, and you might see 120 or 130 quickly after that. >> guy >> my constitution came up day one of 2022. amen i think it blows through the recent all-time high. >> thanks to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i prom to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i try to make you money. my job is not just to train, it's to educate and teach. call me or tweet me.


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