tv Fast Money CNBC October 21, 2020 5:00pm-6:00pm EDT
>> they got a lift in the early stage with the beginning of the curve, but it seems like they are captive on the stimulus news i did note that the consumer finance companies were weak today. >> lots of companies making announcements. fast money next. we will all be all over that blowout. tonight's trader lineup -- a barrage of big name earnings hitting the street we will break down tesla, chipotle, crx and others and bit coin breaking out to its highest levels of the world as
papal gives it a big break earnings alert tesla driving higher after hours. phil >> tesla is moving higher because generally speaking, yes, they are better than expected, but the numbers within the up in bers not as bad as people first thought. tesla's earnings of 76 cents per share. the revenue coming in at 8.77 billion, better than expected. then there are the numbers within the number. the operating margin of 9.2% that's a little below what analysts were expecting. generally speaking as we look what the analysts say now, they can limit that free cash flow at $1.4 billion
vehicle selling price declined slightly speaking of deliveries, this is the news that a number of investors were looking for total deliveries this year, the target has been at least a half million vehicles tesla reatirffirming that and saying they expect to start delivering vehicles being built in jer in germany as well as austin, texas. remember that 2018 pay package forrie lon musk? they took a hit for that the conference call starts in about 25 minutes we will hop on there and see whichie l which e lon musk we get this time we will let you know
>> i wanted to ask you because i was listening to the conversation on closing bell at this point it seems like it is a smaller percent of total automate i can revenue, does that kplietly go away? >> that argument will be there for a while, but i saw that the gross profit was up $1100 per vehicle. it's that kind of thing. if gross profit goes up, increasingly you hear less about the credits. >> keep us posted, phil. guy, lived up to expectations. stock is up. this is not something we might have expected given the huge run. >> i am surprised it is not up more 39% growth revenue, 9.2%
operating margins. two years ago we were talking about how dire their cash position was and we were talking about it for good reason now they are in a position of strength good for tesla i will say for the 50th time i am not going to pretend i have been a raging tesla bull, but i think it was may 1 or 2 when it was making a split and e lon musk was -- i'm paraphrasing -- that it was too high to split. >> it was 502.49 good memory. in terms of the cash position, 5.9 billion at the end of the quarter and that was primarily due to that capital raise which
they did woisly. >> we were talking about the dire situation, where their bonds used to trade. that is not relevant at all. they have done a very good job of balance sheet engineering and through the business, being able to turn a profit good for them. it's still crazy expensive for me there was a lot to like about the quarter. somewhat subdued reaction. the stock seems dislocated from the underlying fundamental i would never short it, but i am not long >> are we at a point where it seems like the coast is clear? terms of the bear case killers but the competition is ramping up phil was talking about the
electrified hummer we talked about electrified mustang and f-150. are we at the day where there is potentially feasible competition? >> if you ask people in norway apparently they are buying the volkswagen with more demand than all tesla models, but i think the landscape is coming to the foer that's always been an issue. not surprisingly, being skeptical on this story. i read those delivery numbers and headlines as we might get to 500,000. there are delivery, logistics that indicate 500,000 vehicles is not a certainty they talk about how they now have 500,000 in capacity for the model 3 out of fremont and the ev credit numbers are up
2 1/2 times than a year ago. accounts receivable are higher and accounts payable are higher. no denying that the balance sheet issues are off the table if you are counting on the stock to have outperformed in the after market, i think you need to see something more emphatic on delivery. 500,000 being a challenge. they didn't say on the take that they are going to get to 500,000 in my view >> dan, for the next 12 months, a bigger percentage gain for tesla or general motors? >> probably general motors these guys made a lot of great points this is a $400 billion car company. it's up 400% this year alone
it has stalled out only up 3.5% the market implied a 9% either way. the shorts have thrown in the towel. that is the lowest levels it has been there are 12 sells it is like everyone has thrown in the towel we haven't seen the upgrades thankfully, no i think the analysts upgrade it here they should be looking to do something a year from now, especially if the competition does come to fore. metric sales, it didn't make sense to me, but as has most of this year. >> let's bring in gene what would be your first
question to e lon musk in the call at 5:30 >> are you going to throw a lifeline to traditional autos. i don't think this maps out well it's around battery efficiency and gross margin it needs to be replicated. i want to mention that i think it's important in this conversation to extract the emotion out of this. the chart looks like a crypto chart. i want to extract that and focus on the fundamentals. gross margin per vehicle increased to 23% up from about 19% last quarter that is important. if they can make more on each car, they can lower the cost or deliver more earnings to investors. that makes it more difficult for competition. second is on the delivery target and agree with them they may or may not get there.
but let's agree with them they get there, 63% year over year delivery growth. that's more than the 43% in the previous quarter and they are doing that just in north america and france they still have a product model wide that could behalf of their sales. the last piece is what they are doing around energy storage, generation, a small percent of their business it grew at 44% it was flat last quarter it is an example of tesla taking technology and applying it to the market i am surprised the stock is not up more. secondly we can have a discussion about valuation that's a different topic e lon musk is far from perfect
this is no apple when it comes to compliance and detail but it is a company that i think is progressing and going to gain huge market share in auto over the next decade. >> thanks, gene. we will check back in with you let's go to another market mover. kate >> despite a strong quarter -- this is the 12th straight quarter they have beat they surpassed expectations from analyst and digital sales tripled representing nearly half of sales digital strength continues restaurants remain closed. about 25% have in store or patio
dining available cauliflower and rice are both being tested right now he said caquesadillas are becomg available. the stock was up 51% as of today's close. it is the best performer in the restaurant industry. brian niccol about join us tomorrow at 12:30. >> thank you kate rogers. and important how it's trading in the after hours session in the past weeks there were five targets there is a lot of optimism especially margins and how this
is a big margin story, dan >> when you look at the earnings growth expected next year, you are looking at 100%. obviously it was down 20% this year the investments in tech, delivery, all of this stuff will help the margins, that's why you expect this 1 hundred percent climb year after year. what is the opportunity here on the revenue side i am not sure it's there they might have squeezed out a lot of the demand on the margin in my opinion. >> guy, are you a fan of chipotle >> yeah, and i thought -- it is shocking that wilford frost would say blowout in the same sentence
there is a potential for a double top from the september high of 1385 the only thing disappointing to me was restaurant margins came in at 19.5% which was better than expected but i think people were looking better. i think you can buy the stock. people may say valuation has caught up. 203% growth, all strong numbers. people took this as an opportunity to take profits. i stay with the name >> tim, mcdonald's or chipotle >> mcdonald's. the last time i checked the burrito blowout was not anything sales growth of 8% with a 94 pe.
i understand what digital has been, but this is a fast casual business color me wrong at the same time. i wouldn't be changing my tune their digital is impressive. costs were weighing down margins. they talked about no profit until fourth quarter next year i don't know why you chase it down if people are waiting to buy weakness, wait more. >> it's the way of the world for people who use tech effectively. you see it with this and with dominos, with the massive rise higher and with amazon. they are a book seller and do a massive business online. and you are seeing it with peleton, karen >> i am not sure what to make of
the peleton. the future is on future subscribers. i am not sure how many there are, but chipotle, there were a couple of things in the margin i think went off the pressure on delivery makes it less good margin. fewer high margin beverage so that's a little bit. but beef prices being higher and a beef promotion, that's something i see as fleeting. the margin pressure, i think that story will change a little bit. but all that being said it is priced to perfection it is a good quarter but it is not perfection i have been on the sidelines for a long time like peleton i like peleton, but i don't like the valuation. >> will they or won't they as we
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welcome back that's right, we are holding out for a hero today there was a $500 billion setback in the senate. let's get the latest >> the treasury secretary and nancy pelosi were back on the phone. they said -- now pelosi and the treasure secretary will keep hammering away at this deal tomorrow even as white house chief of staff mark meadows raises the thought
that nancy pelosi may not be negotiating in the best faith. >> we have tried our best. we haven't seen a lot of action from speaker pelosi. most has been in concessions the president has made to date >> our own polling shows that likely voters across battleground states want lawmakers to ask 62% said passing another relief bill should be the senate's top priority that is the opposite of how the senate plans to proceed. >> the stimulus stalemate is leading us to the chart of the day. rising to its highest level since june and the dollar tumbling to its lowest level in more than a month. guy, what do you make of this move >> i think that's an unhealthy
mix. a witch's brew as we get close to halloween a failing dollar with yields going higher, it doesn't auger well for the stock market. it does auger well for the resource stocks we have been talking about. we have been all over that for quite sometime for the broader market it is not particularly good. falling dollar, rising rates inflation is here, folks rates aren't rising because the economy is doing magically better dan and i had a bit of a tiff a month ago. i think something will get done tomorrow i think the market will like it for a day or two i also think it is a sub news event. >> i need a better song than "i
need a hero" by bonnie tyler 2 1/2 year highs look at some of the moves in the resource plays, but i think they will get something done. some things the fed cannot control. the bond market is something i would be following those trades and emerging markets if the dollar continues to deteriorate, there are also text with cap on their sheets. i would stay with that trade >> say we get stimulus, which sectors do you think get the biggest bump >> banks the combination of the steeper
yield curve. dsf, discover financial services reported better quality than expected banks. industrials, sickcyclicals. i think bond improving would be be helped with the stimulus. we could talk later about losing control of our currency. that's a bad thing bit coin which we will get to later. but it could be an issue on the growing economy. >> which team? >> team nobody
the democratic house passed the second stimulus bill months ago. the president didn't think it was a priority until it was a political priority and the leader of the september doesn't want to pass it. who cares if mnuchin and pelosi agree on a deal that the president agrees on, the senate wouldn't pass it and it wouldn't get to citizens for weeks anyway >> we will have details behind these moves. later, intel, will its report tomorrow turn the chip ship around the cheapest gas in town and which supermarket gives you the most bang for your buck. something else that's good to know. if you have medicare you may be able to get more benefits without paying more through a medicare advantage plan. call now to request this free guide. learn about plans that could give you
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welcome back to "fast money. we have earnings alert las vegas, csx and whirlpool we will break it down. leslie >> whirlpool, charlotshares up as 10% reinstating goidance, upping the dividend the company benefiting from home renovation trend they produce a number of brands under their whirlpool tag including kitchen aid and others a whopping 65 cents higher
down 1.6% which the company attributes to covid related supply constraints and has a backlog. marc blitzer noted -- here is something you don't see in every day guidance whirlpool is reinstating guidance and expecting it to come in in at 17.50 to $18 per share. less than half the decline the street was expecting with regard to the 2019 levels increasing quarterly dividend to
$1.25 a share. >> your guidance, that's 27% above where the street was tim, this was your fast pitch, so kudos on this one what do you make of the quarter? >> i believe this was voted down folks, watch what you do on the power pitches. down small, but it was supposed to be down 11 or 12% maybe more importantly was that york was profitable and east africa whether we are talking about housing or building materials, this is a great way to play it this is the largest position in the home builder atf relative to itself, this is not expensive. i am for units of sales in the third quarter. i know how long it is taking some of these people to get appliances margins are better in north
america dough spite sales being down i like this story. i like carrier, hvac, trane, i like them all. >> this underscores what is going on in the home trade >> yes, it does. kudos to tim and i think it was downgraded that night in an aggressive way. i like that story. i feel like that was one i could have owned whereas zoom, it is not my mind of thing they correlate closely i like this story. it makes me more optimistic about the consumer and the economy. >> i think we may have even played the dance version of unbreak my heart it was that bad. let's move on to csx
hi, frank. >> the stock buyback program is probably the biggest headline out of this quarter. that's in addition to the previous one shares going 3.81% higher after hours. overall revenues declined by about 11%. you see why. autos, agriculture, et cetera. those fell by 7% coal fell by 27% not a surprise and csx earnings call --
so again, after the buyback program announced, csx is trading higher after hours >> let's go to contessa on the details on las vegas sands >> they beat the numbers the real story came on the call when they gave us insight on how things are going now in october. there has been a resurgence. they saw visitation ramp up. that they are on track, if this turns up three, singapore, they have turned a profit in singapore in locals only business it is remarkable no tourism in las vegas, on the weekends they are seeing 70% occupancy. they are really waiting to get
the midweek business back with group business and they have a plan to figure that out, how to welcome back conventions and conferences. sheldon addleson starts every earnings call with yay dividends. they were asked when they would resume and they said not yet they felt there was a lot of uncertainty on covid, so not yet. >> lvs, i don't know what they are giving away, but you look at the outlier that property was, it's staggering. occupancy was close to 56% i think the next closest was -- maybe tony braxton did a residency there and people were floking to see her i know dan is looking at this because i'm inside dan's head,
but the high back in 2019 was 81.50 to 82. my inclination is take your profit >> is he in your head? >> he is always in my head this is a reasonably priced stock. it is only up 8% on the year playing for a multiyear breakout i want to make a point about karen and tim patting each other on the back. we talked about this the other day. netflix down 7% today tells you should be worried about that pull forward in demand trade people were forced to be home. they had money in their bank accounts couldn't spend on many things. if you were waiting to buy a new
washer or drier and you were sitting around in your smelly clothes all day with the kids, you buy the new washer and dryer. it doesn't make me feel better about the u.s. consumer. >> tim, you said three units this quarter you will likely not going to replace those for 5 to 10 years. >> i think there is built-in objec obsolensence dan should wash his mouth out with soap. maybe there was pentup demand. if we are going to throw this trade for whirlpool out the window, how about the other ones attached to it i think netflix sold out for a reason i don't think they can sustain
that growth, but that's my view. >> yes, guy, with your hand raised politely. >> there is nothing more satisfying than being able to take that lint thing out and get the lint in one fell sweep >> that's my favorite part >> roll it up. >> that means you are leaving it in too long. >> you clean it out after every dry. there is more lint on some things than others >> this is a psa to all of you who have dryers at home, make sure your lint trap is clean it is a fire hazard. is that all you have to come up with it. >> they have to come up with a drier that is lintless i am sure dan would be all over that one >> i think we are inviting our viewers to go get their lint
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welcome back papal announcing that it will allow people to use bit coin papal just gave the stamp of approval for the entire crypto space. >> it has been a while >> it has been feel like bit coin has been stagnant for a while but it is exciting again >> why do you think this is a major move for papal we thought it would be a major thing when square did it, when so many other companies have allowed customers to have bit coin wallets
>> square has been exciting and a number of others offer crypto. but the owner of papal has 300 million active users they are the audience for bit coin in terms of distribution, papal is the largest in the united states and their willingness to use crypto in offering is exciting >> there are 26 million merchants on papal what if only a small fraction of them accept bitcoin or others that consumers can boy, sell or hold are we at a point where it needs to be more widely accepted >> not really. the important thing to remember is in the initial iteration of
this offering, it will be a wall garden crypto currency will not leave the voirenvironment, so it is n coming from the outside. it is an internal system i think it is a way for papal to launch its own crypto currency if you remember, they launched their own digital currency and then dropped out i wouldn't be surprised if we didn't see them have their own digital currency soon. >> karen, do you have a question >> thanks for being on do you think that things like this papal announcement are the next leg of the bit coin story or do you think it's something like the u.s. currency
devaluation? >> there is a million dollars under crypto he would see that institutions are not ready to engage. many are interested and learning but until someone takes the first step, they are not going to move and allocate to bitcoin. so i think with papal embracing bitcoin as a revenue center. other kormts hacorporates have bitcoin to their balance sheets. over time i do think we will see more meaningful engagement from
other financial institutions who see a hugely lucrative opportunity by offering crypto opportunities not only to speculative traders and consumers, but to those who want to hold it long-term and buy into the story value >> great to see you. thank you. >> thanks for having me. >> dan nathan, importance for papal versus the importance for cristo -- crypto. >> i think she did a great job describing it. she makes a great point about the 300 active users is a great on ramp for people to get into crypto i just don't know the reason for them to get into it other than the investment store value
so to me great opportunity should it be up 1,000, i am not sure it's not my bag. it is a good story for papal >> should it be up $1,000 off this it is your bag >> i agree with dan, sadly it seems like quite a reaction it's nice news, i don't think it's thousands >> pintrest shares popping today. ictel is set to report tomorrow. stk around more straight ahead. ok, just keep coloring there...
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>> i am sure we are going to throw my pintrest page up while we say this. this is a usr story but an international story. the international growth is there. i think they 320 million odd people if they can just grow it to a reasonable level, this stock should be higher than it is. goldman on the back of it, bank of america it has had a huge run and i believe it will have one until earnings in october. stay with pintrest and follow me on pintrest. >> dan >> i don't think it's particularly natural or healthy. with the broad market move we are in when you have a stock
like snap chat join 30% in one fell swoop pin tret pintrest is up 100%. i am all in on rick. you pinned me up there on that one point, but this is -- it's crazy town right now i think you want to be careful chasing these names that got upgraded after the snap chat thing. pintrest does report october 28. >> there must be some reason advertising revenues were that strong for snap, and revenue was tronger tro stronger as the quarter went on. that should be good news for google >> i think it will be good news for them unless one thinks that they are losing shares i think the pie is growing i would rather be in facebook,
which i am and google. i agree with dan on the valuation for pintrest and even snap the revenue growth was phenomenal, but i would rather be on facebook >> coming up, intel earnings, why it could be another big breakdown for this stock and don't miss "mad money" at 6:00 p.m. eastern. don't go anywhere. ♪
welcome back to "fast money. intel is on deck to report tomorrow their last earnings release was a disaster for the stock tomorrow could be more of the same mike >> we did see above average option in intel today. calls about two to 1 on outputs. it is well lower than the 7.5% it has averaged in the last eight quarters the action today --
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or call 1-877-866-8555. time for the final trade tim? >> tony braxton great singer, bad judge of whirlpool stay long. >> nathan? >> draftkings down 35% in three weeks. i think you boy it here with a tight stop >> karen >> i do believe in some sort of stimulus i don't know exactly when, but good for the consumer so i'm long walmart >> guy
>> check those lint traps, mel very important we don't want any dryer fires. very bad with that said fcx. >> we will see y bouack here tomorrow don' my mission is simple to make you money. i am here to level the plain field for all investors there is always a bull market some where, i promise to help you find it. "mad money" starts now hey, i am cramer, welcome to "mad money." my job is not just to entertain but to educate you, call me at