tv Fast Money CNBC December 3, 2020 5:00pm-6:00pm EST
that's been a tailwind for risk assets, not the only one by any stretch, but it fits in tune with a lot of what has been going on the market has been willing to kind of take it on faith that things are getting better, cyclical trades work and the rest of the world is arguably in some ways ahead of the u.s. and europe. >> we lost steam in the final half an hour of trade today. "fast money" starts now. >> i'm melissa lee this is "fast money. tonight on "fast," the headline, defense stocks spiralling into the close. we'll tell you what it is and separate fact from fiction boeing a little luck of the irish today, the big news from ev overseas that sent this stock soaring. what warner bros. did that could mean lights out for the movie theaters opening rally. look at the move in the airlines, delta, united, american jumping 4% or more and weren't alone. cruise stocks were up. casinos up restaurants up
but wait a minute, did we forget about what is going on across america with the pandemic? the u.s. just reported more than 2800 deaths in a single day. a new record hospitalizations are at an all time high at america's second largest city, los angeles, just ordered all its residents to remain in their homes. as america shuts back down, the reopening rally seems to be raging on. so what's going on here, tim >> well, look, the numbers are sad, they're shocking, and they continue to look like that should be all we care about for the markets. i don't want to be insensitive if you're buying the reopening trade, you're buying what is probably most likely peak covid. and we have inoculations around the corner, thank god. we have multiple treatments. we have testing that is now finally becoming orderly and consistent and something people have access to look, this is a horrible moment
in our country's history, people need to be really safe and responsible right now. but if you're buying, you're buying the worst, as any investor anytime, you always buy the darkest point and i think that's what this feels like. if you look at airlines and look at casinos and cruise lines, yes, they had a very big run, but if anything, those four mondays we had in a row, i think, are part of the message here that really these things are picking up momentum, and, again, for airlines, it is not about balance sheets anymore it is about recovery unfortunately the headlines with the virus are shocking and sad, and scary but for investors, that's when you're buying at peak covid. >> because theoretically we can see the path to the other side tim mentions the inoculations, the path to potential stimulus, whether it be during this lame duck session are when biden actually gets in office and inaugurated into office. is that what we're seeing now and do you think this is how
this rotation, this move into the reopening, does this stick >> great question. good for tim by the way, kudos i'm not sure the derivation of kudos. i would submit the darkest period might be in front of us pretty dark there a few months ago, if you recall these stocks have all had tremendous runs, they're trading as if not only things will get back to normal in may, june of next year, but things will be exponentially better, i'm hard pressed to believe is the case i think in terms of valuation, the market is extraordinarily expensive here we talk about market cap to gdp, either side of 180%, which is historic levels and significantly higher than mr. buffett talks about in terms of his risk analysis. but market doesn't seem to care because i think a couple of things, yes, they see a light at the end of the tunnel and by the
way there is a belief that somehow the federal reserve has our back and they will be there in case something bad happens to the market that quite frankly has been true, but the warning signs are clearly there in my opinion. >> you can attack the valuation of the overall market. when you look at the individual reopening trades and i'll go to you on this one, with the norwegian cruise lines, you know this stock well, it is down, what, 56%, more than 50% year to date people will get back on those ships, presumably, at some point and may not be tomorrow, may not be in february because they just said, we're not going to sail through february but they will get back, no >> yeah, they will get back and i agree with tim's premise when you look at something, when you use the example of norwegian cruise line or royal caribbean or the airlines or the hotel names, then you're going to have this dramatic bounceback but when you look at the overall market, it is a different story.
how much has already been pulled forward? so i think that's the question you have to ask. when we started having the conversation in earnest on vaccine, the market ran 22% from there. s&p i'm talking about. so while i do agree with tim, i guess the problem i have is i think the darkest days are behind us. i'm hoping the darkest days were behind us, but how much of this is really when the rubber hits the road is going to really come through when the economic recovery really happens. so i think the market is due for a pullback, i don't think you're buying the darkest days right now. market overextended, but i do agree, airlines, hotels, cruise lines, definitely worth a kick in the tires to buy those. >> before we get to dan, steve, quick point of clarification, you say the darkest days are behind us, do you mean in terms of the economy, in terms of the stock market, in terms of covid
numbers, what is the darkest days because all those -- those three things are not great. >> yeah. yeah, no, i understand and they are linked when you look at the market, the market is rallying at all time highs, the look through was the fed watching our backs, then the vaccine coming through, so i think the darkest days of not having a vaccine, not having any hope, those days are behind us but i think the market has pulled forward a lot of that end of the anxiety or beginning of the hopefulness that the economy will actually restart once again. i think the market got ahead of where we are currently, but i do hope that the darkest days as far as the virus are behind us. >> and you got your holiday cheer on i can tell, you got the tree up, going into december, the end of december. >> two trees >> wow a lot of cheer
>> and we got a hanukkah bush there too. well, here's the deal, listen, i agree with everything these guys have said. the stuff that rallied really hard, we know the russell 2000, small caps are up 22% in what feels lu s like a straight line month. we know the hospitality and leisure and retail bricks and mortar in particular that were hard hit and energy have gone straight up and massively outperformed we were all expecting that at some point, in financials too at some point this year and we just got this cluster of vaccine news so, you know, you're getting all of that really positive sentiment about the potential for a fully reopened economy at some point in the second half of 2021 and you're going after the beta names, the names you know that have massively underperformed, you get massive outperformance at this time what have we seen? the megacap tech that did a lot of heavy lifting this year we know the names that make up
$7.5 trillion in market cap. they have gone sideways, except google, down about 10% from their all time highs, made on september 2nd. never confirming the highs in the s&p 500. so, listen, it is a good old-fashioned rotation going on. i suspect you'll see air come out of the names that have gone straight up at some point because to steve's point, we are extended, sentiment seems overly positive here, we're about 15, 16% from the 200 day moving average, down at 3150 in the s&p 500. so the idea that the stock market is just going to rally and close on the dead highs in 2020 after the year that we this is not a great setup for 2021. you almost would rather see a retail to 3600 and retest at 3400, get a little ugly and then find the opportunity to build on a base and break out early next year. >> i get the point being made about valuation of theoverall market back to the specific reopening rally that we're seeing as covid
is getting just terrible, downright terrible in the united states a lot of these stocks are still down double digit percentages from where they were prepandemic. so there is -- they might have rallied sharply, but nowhere near prepandemic levels. within this complex what are we pulling forward, we're not pulling forward anything in terms of returning back to normal, are we >> i think you're getting both i think if you look at airlines, you have to be careful because wolf did a pretty good analysis. he talked about that airlines have largely if you look at the numbers now and the share prices, they're pricing at 86% of precovid ebitda and that's -- i'm not sure if that's where we're supposed to be, but you also have to compare within the ranks the relative value and american is outperformed delta while diluting the share base 38%. delta actually taking no treasury diluted capital is
actually seeing their share count come in a little bit so just investors need to be careful here but, remember, yes, i'm not talking about the overall market i'm talking about the reopening trade. and the jets etf, we talk about this, up 45% in the last 24 days, which includes those successive mondays of great new oz on vaccinations i think you have to still pay attention to this trade. >> speaking of that, shares of boeing getting a nice tailwind the company locks in a crucial order for 737 max plane. phil lebeau has the details. >> they have been waiting a long time for news like this. this is a big orbder from ryanair. how big? this is the first time in a year and a half we have seen an order or a commitment in interest in this many max planes total commitment from ryanair, 2 10 planes, they previously placed an order for 135. these deliveries start early next year.
boeing's ceo believes this is the beginning of what they expect to see more often over the next several months. >> i am confident that this is the beginning of fulfillment of a more robust order book, more coming in than going out >> those comments, one reason why shares of boeing up almost 6% today now, keep in mind, they had 448 737 max orders canceled this year that's not even including the accounting adjustments, which brings the order book down more than a thousand planes now stands at 4,102 planes they weren't the only stock moving higher. ryanair also moved higher. if you look at shares of ryanair, unlook a lot of airlines, it has been performing fairly well over the last six months and today at the press conference, the ceo was asked point blank, hey, look, the max is a tarnished brand any idea about changing it not calling it the max anymore here's what he had to say.
>> frankly we don't care what you call it. we never have been overly sensitive as an airline as long as you buy our cheap fares you can call us whatever you like. >> michael o'leary, as always, blunt about his thoughts when people are asking him questions like that. all of the airline stocks moving higher today we heard from united airlines, it will be receiving the first 737 max since they have been ungrounded, which the first certificate came from the faa earlier this week. unite will united will receive first plane that is expected to happen next week >> do we get a sense of how much of a discount there is for the planes that ryanair will be buying >> michael o'leary was asked that question and said not as much as i would have liked he goes, then again, dave calhoun is probably giving me more than a discount than he would have liked i wouldn't be surprised if it is between 30 and 40% off of the
list price and keep in mind, airplanes never sell for the list price. the list price on the 737 max is about 120 million. >> but cheaper than -- >> it could be much cheaper than that michael o'leary said not as much as what some people were speculating. i heard people say, look, i wouldn't be surprised if it is 50% off. whatever the price is, dave calhoun says, look, we can still do well, selling these and the important thing is you're starting to fill in the skyline in terms of the order book, which has been riddled over the last year with cancellations and airlines saying, no, you know, given covid-19, everything going on, we'll pass on taking the max. and they were allowed to do that, once this plane, once it had been grounded for more than a year >> quite a markup if they can still make money with the 30% to 40% discount, phil thank you very much. >> you bet >> phil lebeau guy, do we need to know what the
discounted price is in order to get people to buy this plane >> first of all we got to get this michael o'leary character -- >> he's up there with elon musk. >> that guy is just -- >> all these guys. outspoken ceo. >> yeah, he would be -- he should be in a scorsese movie first and then come on our show second but, again, that's neither here nor there. i guess it doesn't matter. the market seems to be impervious to all those things what i will say is on this great segment we do on "fast money" call the power pitch, tim talked about this stock in the 180s i think we said to look for a move back to the june 5th high of about 234 and here we are, we did it on two times normal volume, i think you take profits, maybe i'm wrong, maybe tim would agree, that's where you take money off the table. the place to be, spirit aerospace spr, which i believe they put on the best ideas list.
that's the one that probably has the most leverage to the upside. so taking money, taking profits in boeing, looking at state levered and long in spr. >> tim is shaking his head i'm not sure he agreed. >> well, i hear guy and i would be selling boeing when they get back to 80% of that order. there is no question that the best part of this rally is when you see a recovery in demand i thought most interesting thing about the ryanair announcement was also that they're going to peak in their a-320. the airbus, the competition is going to peak at 29 jets and fleet by 2022. this is a double win for boeing. they're basically -- they're pushing back on the competition, they're jumping in there and buying fleets. i thought that's powerful and i think airbus, the a-320, many people think it is a bet he pla better plane you don't ride boeing for ever, there is more to go.
>> now to the story that moved the market late in the session, more detailed on the pfizer covid-19 vaccine rollout meg tirrell has the details. >> this wall street journal story crossed, the headline left out that pfizer had made a change in november and so all of the numbers in terms of pfizer's expectations for supply of the vaccine this year are the same as we have been talking about for the last month in september, they have been guiding to 100 million doses being available of their vaccine in 2020. and 1.3 billion in 2021. in november, when reported that 90% efficacy in the interim look at the phase three clinical trial, they also noted that now they're looking at 50 million doses available in 2020. that was cut in half, but it wasn't cut in half today it was cut in half a month ago now, pfizer telling us today there are several factors that impacted the number of doses, estimated to be available in 2020, including the fact that
scaling up a vaccine at this pace is unprecedented and the scaleup of raw material supply took longer than they expected they noted their clinical trial outcome for the phase three was later than the initial projection, making them have to focus additional efforts on the clinical trial production. they told us modifications to full scale production lines in the u.s. and europe are complete and finished doses are being made at a rapid pace we're confident in our ability to supply at a pace of approximately 1.3 billion doses by the end of 2021 and i confirmed the 50 million is the projection for 2020 i talked with moncef slaoui, who told me there is no change to their commitments to the u.s. and i haven't been informed of any issues so this is really an explainer on a change that pfizer made between september and november as for all the expectations we're expecting for pfizer supply now, there is no change >> all right, thank you, meg, for all that reporting
meg trill irreltirrell. th we saw the stock move, we saw the markets move it felt like -- what did you make of this >> headlines hitting the tape now that moderna will have 120 million doses in q1 of their vaccine. it is all good news. you would much rather have them underpromise and overdeliver when we talk about deliver in the logistics going into this vaccine, being just kind of sent out all over the world, specifically our country, we know the government is doing it, the army is doing it i grew up in a household, my dad was a -- was a retired, you know, lieutenant colonel in the army, we had a saying in our household, close enough for government work. i think that -- and that wasn't being too glib in a way. the point is that we have the biggest challenges in front of
us right now about distributing this vaccine here in the u.s., getting to herd immunity and i would suspect it will take longer than people think i don't think it is going to be the sort of thing we're talking about this a year from now, but i think if your expectation is that we're going to hit herd immunity in q2, that is probably a bit aggressive. >> just to clarify on the moderna headlines, they're reaffirming expectations of 20 million. along the lines of pfizer. this isn't necessarily new news. what was interesting, though, steve, just quickly, moderna shares did move up sharply on the back of that pfizer headline, which now turns out to be nothing new >> yeah, they moved up 5.5% off that headline today. and what to dan's point, when you sought market and you mentioned algo, the market is skiddish on any vaccine news or any vaccine hurdle that they're not going to cross over. so the market has gotten once again ahead of itself, and i
think look for any negative news and you'll get some involved in the transportation of this vaccine and that's when you get the opportunity, but you have to be fast in this market place to take advantage of those dips we saw today. maybe you'll get an extended one going forward. >> all right, coming up, take your seat. class is in session. the dean of valuation is here. he's got three stocks where valuations have gone wild. first, an earnings alert on ghcusign, shares are shooting we'll bring you the trade when "fast money" returns ok, just keep coloring there...
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welcome back to "fast money. we have an earnings alert on docusign shares are higher in the after hour session, down from after hours session highs. the conference call is under way. jrb h josh has the details >> docusign is headed higher here remember that stock was already up about 200% so far in 2020 it would come under recent pressure, down 20% from a recent high higher in the after hours. quick take on the print. i checked in with da davidson and they said this is a good quarter, growth rate is accelerating they continue adding customers at a healthy clip.
guidance looks healthy and conservative in his opinion. still has a buy on this name, said they are the clear market leader and tailwinds are sustainable. on the call, dan springer noting growth from 63%, they have 822,000 customers. companies are accelerating their digital transformation, they see remote work can be very productive docusign is an essential part of that melissa, back to you. >> josh, thank you dan nathan, this seems look a stay-at-home trade which may have legs after the pandemic >> it might. after zoom reported, we were talking about 350% year over year revenue growth and the stock was trading down, we're scratching our heads here is a company that reported 50% year over year earnings sales growth and the stock is up 5% or so i think it is important.
this is a market cap company i think this is a great feature on a broader platform before it was up 250% or so in the last year so you just have problem here, where the companies grow into the valuations, especially at the time where next year you're going to see deceleration in customer growth and revenue growth and that just is really what investors are going to be willing to pay for this, great company, great service, big market cap >> one good thing about docusign, in terms of rolling off business, when the pandemic is over, is that the average contract line is 17 months that gets you through the period of the pandemic. the ref venue is stickier than may seal on the surface. >> running the business better operating margins were 13% and i think the street was looking for like 7.8%. so good for them i think it was an early september we played one of our many games like is this work from home stock is this -- something that you just asked dan, is this going to stand a
test of time and i think the answers with a resounding yes. docusign is not going anywhere anytime soon and valuation is stretched and yes, everything dan said is right. but guess what, company is operating better, their growth is still there, and i think it takes a shot at that all time high, which i believe was 290 or so back in early september. >> splunk shares, a ton of options activity in the name today. >> splunk, it is a situation, usually we see activity ahead of catalyst we saw it coming out of the catalyst 38 times its average daily call volume and most of that activity was concentrated in the immediate out of the money strikes that expire tomorrow what was going on, traders were buying the 160 strike calls and paying $2.50 off the open for the 160 strike calls betting that though the stock had gone sharply lower, you might see
some intraday volatility i think this is one of those prime situations where you actually can use options to your advantage when you're dealing with stocks like these that he's are the nathese are ts versus the numbers you can adjust your model and get a new price. when it is a narrative story, then you're going to see intraday volatility and an opportunity to make a lot of money in those situations if you play it right. >> thank you for that. mike khouw, tune into the full show tomorrow 5:30 p.m. eastern time much more ahead on "fast money." here what's coming up next >> markets may be at record highs. are some of the highest flyers ready to come back down to earth? nyu's dean of valuation breaks down what he's seeing. plus, the bold move by warner bros. that lowered the curtain on the stocks of theater chains today. all that and a lot more when "fast money" returns it's a thirteen-hour flight, that's not a weekend trip.
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welcome back there are three high flyers in the record rally that could come crashing down. class is in session with the dean of valuation, finance professor at nyu always good it sto see you let's start off with tesla and before you actually dive into your valuation and analysis, at what point did you think tesla was not overvalued i want to get that out of the way. >> i sold it -- given the stock split price, i sold it at 120. at this point i don't try to
value tesla. i try to reverse engineer from the market cap what has to happen for that stock price to be justified i see a company being priced to deliver more than half a trillion dollars in revenue with margins like a software company. there are some who believe that can be pulled up i'm skeptical. to me, that -- if they can pull it off, that is something that no company in history has ever done so i'm just looking at the market cap and saying that's a huge mounten to climb to justify the market cap. >> you said the software company, some might argue -- bulls might argue the software is much greater than it being just a hardware company, auto company, the miles driven for the autonomous driving aspect of the company should be valued much greater and so maybe you can get to the valuation there if you impewt at a higher valuation, can you get anywhere near where it is valued now? >> i think there are pieces and this is why i think tesla you
can get to different valuations. there are pieces of the story, each piece is justifiable. there is a part of tesla that is software a car goes with software and they talked about selling the software separately. the question is whether you get margins that are 15, 20, 25% software margins with the revenues that are traditional is delivered, half a trillion dollars. it is combining the different pieces of the story that makes me uncomfortable because those pieces usually don't go together think of microsoft, 22% margin for $130 billion in revenue. we're talking about tesla having four times as much revenues and margins like microsoft that's going to be a tough, tough, tough hill to climb >> let's move on to zoom, professor, and i'm going to start off again with the same question at what point did you think zoom became overvalued? >> i think very early in the pandemic zoom and peloton became the symbols of lazy investing, lazy
investing in the sense of i want to take advantage of the pandemic, let me pick the companies that i think will benefit and guess what people zoomed in on, what they were working on every day, zoom and the fact that peloton is benefiting i think that they benefited, don't get me wrong, i love zoom as a company they have the perfect platform for this virus i think that the market cap has runway ahead of what the company can actually deliver in terms of revenues, especially after we go back to work i think some people stay on zoom i think the story is bigger than it was before the virus hit. i can't see it being big must have to see the prices we're justifying for paying for this company. >> thank you what about the competitive landscape in that same space that's got to be part of your argument here. it is extremely competitive. >> exactly i think -- it has big players with deep pockets. cisco and microsoft. neither is going away. for me the problem for zoom is
even if the market for online meetings, teaching is much bigger, it is going to face a lot more competition going forward and that's something that i don't think has been priced in right. >> you mentioned peloton, that's a third stock that you're saying could come crashing down and i'm wondering if there is an argument this is a company that could become a software player with bigger margins as opposed it a company that sells bikes and treadmills. >> i think that's going to happen it will be a subscription model-based company. when i valued peloton in december 2019, i valued it as a luxury fitness equipment company. peloton is a subscription business with a fitness business on the side. when i say value is too high, it is still much higher than it was before the virus, i just don't think you can justify the prices that investors are paying for the company.
that subscription business, they're charging $13 a month you pay $16 a month for netflix. on relative basis that seems to be a pretty expensive subscription for a fitness app and i think that's something you start to see come under pressure as well, once the -- we stop staying at home and start looking at options >> it is always great to get your insight thank you very much. peloton and zoom, guy, examples of lazy investing. do you agree >> you understand what he's saying there i think he even back tracked a little bit on the lazy i understand what he's saying. stay at home, people are going it reich their biide their bikee zoom video i get it but my pushback would be i would submit at this price, even if zoom is 75% of what they're doing now, in 2021, the stock is
still pretty reasonable, i think. i think the world changed fundamentally. though peloton, if this had just lasted a month, i would have agreed with him. we're nine, ten months into this i think people have become attached to their peloton. i have i know you have. and i think if kay fine would say the same thing people love their bikes. i ride with certain people i'm steadfast in that. i'm going to stay true to my peloton roots. >> you ride with people? you mean the instructors, not -- you ride with karen? we don't ride together, that's for sure >> the instructors >> got it. >> we don't ride ogether. >> we don't ride together. quickly, which is your pick? >> so when you look at the overvaluation, i think that zoom is overvaluated. people will get back to work the people that don't go back to work, they're probably going to zoom a lot less because there is going to be people in the office
space and they're not going to be as relevant anymore zoom and peloton, just think about how much money wasn't spent on vacations that people bought the bike. it is an expensive bike. there is competition now once people start to take vacations, once people start to get out of their house and do other opportunities to -- for them to spend their money, they're not going to buy the bike guy loves the bike a great product. it is cult-like. everyone loves the product but i think you're going to wind up seeing sales decelerate in a significant fashion moving forward. >> all right, speaking of valuations, take a look at some of the stocks hitting all time highs today. up next, we'll find out if the traders are buying in or cashing out on record runs first, it is a headline straight out of a mission impossible. the latest target for hackers, what it is and what it says about the safety oouf r supply chain. the details when "fast money" returns.
is a hacking attack against the process of storing the covid vaccine. what they're saying is that hackers actually impersonated an executive from higher biomet er biomedical, they sent fishing emails to organizations involved in the storage and transportation of vaccines, they targeted executives in sales, procurement, technology, and finance and what they're saying here, ibm's security team, this likely came from a nation state trying to gather information on covid processes. i asked nick of ibm's x force team today what the worst case scenario was, he told me his ultimate concern here is something that you might consider covid terrorism listen to this >> they're trying to replicate the knowledge of the cold chain, how refrigeration works, or potentially also to conduct a
disruptive or destructive attack prevent the refrigeration from occurring somewhere in the life cycle so the vaccines spoil and the public perception and trust in the vaccine gets lost >> so what he's saying is that this attack was not designed to raise money, so he doesn't think it is cyberthieves out there he thinks it is a nation state intelligence service because it is gathering information and what they might do with the information he worries is use it to disrupt the distribution of the vaccine worldwide, attacking that cold storage process in some way to discredit it and cause people to be worried these vaccines aren't safe next year. >> the whole thing is alarming i think that is more alarming is that this sector, this industry, this is not the first time that vaccinemakers have been targeted over the summer, weren't there hackers tied to china hacking into moderna, trying to get information on the vaccine development there? >> yeah, exactly and that effort to gather
information we have seen it each step of the way, about how the vaccine was going to be made and now in this case about how it is going to be distributed. the question is how are these nation staids using this information? is this just them getting a jump on the research? it is easier to steal rnd than develop it yourself. so if you're a nation state panicking that you don't have the know how to get this vaccine up and running or to get it out to people once you have it, you can steal that from the west and that seems to be what is happening here it is very early, but that's the indication we got from ibm today. >> thank you eamon javers, what a fascinating story here and the big question is even if we found out who did this, who is behind it, what nation state, what would the u.s. response be there has been no response to this sort of attack. dan, what do you make of this story? >> interesting story we talked about it on our call earlier. it is a couple of movie plots here we have mission impossible 2, we
have the cold storage here and i have to bring that up. i think there is a lot of different ways, if you think about it, i don't know what the retaliation would be but you do have a situation where there is no shortage of bad actors that could look to disrupt the logistics and the distribution of this thing it goes back to what we're talking about in the a block here it is not a done deal that we're going to get 7.5 billion people inoculated from this virus over the next year or so. just a lot of logistical complications here and hackers just pose another threat here. >> coming up, lights, camera, disaster for the movie theater stocks big headline that sent these stocks tumbling. grab your seat, we'll break down the trades next. first, is there more room to run in the names or should wyou take the money and run we're playing a game
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now for the free decision guide from humana. there is no obligation, so call the number on your screen right now to see if your doctor is in our network, to find out if you can save on your prescriptions, and to get our free decision guide. humana - a more human way to healthcare. welcome back to "fast money. another big day on wall street with the s&p and nasdaq with fresh intraday highs others also hitting all time highs in today's market action we thought it would be a perfect time to play a little -- >> trade it or fade it >> that's right.
america's favorite game. trade it or fade it. let's kick things off with black rock new all time high today. dan, trade it or fade it >> i'm fading this one i don't buy a runaway breakout like this. we think the market is extended here this is a proxy for market here. i'm not a buyer after this run. >> steve >> i still think this one is a trade it for me. it is a buy. they dictate the whole tone in the investment space through mr. fink, he kind of narrates the total sector, total environment, so i think you follow the leader, this is the one i would be still a buyer on. >> let's go to applied materials, up 56% this year. back to steve, trade it or fade it >> this one i have a tough time with i would fade this one. but just specifically in the place where it operates in in the place where it operates in the only caveat for me would be
the exposure to any solar cells. i think this is where they're going to really shine. and i think going forward under a biden administration they would still get a little bit of a tailwind there, but overall, i think it is a fade for me. >> i can understand why steve would say that, we talked about it for a while on valuation it is not ridiculously expensive though the stock has run considerably well above those prior all time highs, i still think you can stay with -- sorry, i was supposed to say trade it, trade it, thank you. >> how many times have we played this game? 100,000 times. anyway, uber here, up for more than 75% this year tim, trade it or fade it >> this is how we do this. we trade this one, melissa, because we actually believe that uber is starting to get its act together more importantly some of the macro helping this company whether it is legal in california, whether it is the
dynamic of reopening, this is a story that has been dead money, really since the ipo i do think they're starting to get credit for the more diversified business trade it >> yeah, hey, i'm fading this one here i think you have a pullback maybe to the mid-40s that's being a little cute i know that's being a little bit cute, but we're trading here i think you play for a longer term breakout in the new year. i think lyft here has a little bit more upside, even though that one has ripped. still not at 52-week highs >> guy, this is your chance to do it properly starbucks, up 18% this year. do you trade it or fade it >> i wasjust thinking as i was sitting here, during the holiday season, and it is now the holiday season, this game should be called wrap it with a w, wrap it or scrap it just throwing that out there maybe the producers are
listening. i don't know in the case of this game, i would trade it and it all comes off the fourth quarter report on november 2nd, i believe, they just crushed margins improving, running the businesses better, still have growth areas, valuation a little stretched, that's been the concern. but the stock has been impervious to any bad news trade it. >> melissa, i'll wrap it i think they don't fail at 100 this time. i think starbucks is one of the great reopening stories. they are a digital player now. >> wrap it is very confusing it implies you're giving it away, not keeping it. >> they're all confusing >> a gift. it is a gift wrap the gift. >> thank you these stocks may be trading at all time highs goldman sachs seeing nice opportunity in the names lagging in the broader market. head to cnbc.com to read more. coming up, the cinema stock getting crushed today. details next we're excited to do business with you
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could this be the final nail in the coffin for these theater chains steve grasso, what do you think? bad news, particularly when companies, especially amc, they need money >> yeah, i think -- it is obvious, right they all fell out of bed today, got hit very hard. you look at these, you mention imax, i think imax has the best opportunity here because when things get quasi back to normal, people don't want to be in a movie theater, they built up their homes, larger screen tvs, theater seating now. when you-like look at the imax product, that's a different experience i think out of those three that got hit today, imax probably stands the best chance in my mind to have some semblance of recovery when things get back to normal >> yeah, dan, this could change the way movies are made, even. budgets, like how we think about -- >> yeah. no doubt about it.
i actually think steve is 100% correct with the imax. and you might see amc or the other ones fall in line with the studios. they may need to vertically integrate. i love going to the movies i'm going to like to go to my tivos or whatever guy likes to call it and tune up the applications store and watch whatever i want to watch that's the acceleration of the trend that was already happening. nt,heaxnk still on beta m upex t final trade ♪ ♪ ♪ you're all, you're all i need ♪ ♪ you're all, you're all i need ♪ ♪ as long as i got you then baby ♪ ♪ you know that you've got me, oh! yea...♪ ♪
time for the final trade let's go around the horn tim seymour. >> this time, hbo max streaming news, movie news, i think it is a shot in the arm for at&t, one of the big underperformers in this market. i'm long the stock i like this news for at&t. >> dan nathan? >> yeah, pfizer two closes this week above that november 9th intraday high and pfizer i like it here going back to the highs over the next few months, up in the mid-40s. >> steve grasso? >> i've been excited about a bunch of stocks this year at that have really rallied aggressively luminar is the next one.
i think this one is off to the races, super excited >> guy adami >> i'm just excited to be with you all, folks, every night at 5:00 melissa. spr, that will get you done. >> i rolled my eyes, by the way. thank you for watching "fast." see you tomorrow back here >> 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 dram "k." i'm trying to make you money my job is not just to entertain but to educate and teach you but call me at 1-800-743-cnbc or twee