tv Fast Money CNBC October 15, 2021 5:00pm-5:30pm EDT
peace with what is going on. >> we have had quite a flattening of the curve. the short end is the move of the week >> it was pretty violent yesterday and today. you wonder if it is overshooting in the near term, but we have to wait and see >> that's going to do it for us on a friday. "closi "closing bell" ends and "fast money" starts now. >> i'm melissa lee tonight's lineup -- tonight on fast, bitcoin breaking out where is it headed from here the chart master is standing by to break it down plus our chart of the week one of our traders has been recommending for a while, but it's down more than 7% since monday and later, a huge week of
earnings take a look at that list we will tell you the four names traders are watching the straw that may have broken fac facebook's back. it is tied for the longest losing streak in the company's history. it has been under pressure since the damning article on the impact it has on young girls this is not just broad tech sector weakness. facebook shares may have come away unscathed from everything from elections, but in the last month it's different could things be different this time >> if you think back to june, july of 2020, a lot of
advertiser pullouts and facebook down 10 to 12% and stocks stormed back for a lot of reasons. mostly because it's the only game in town in terms of ad growth the ad growth is nothing short of spectacular facebook is at the front of the loin ad pricing up 43% last quarter this is where investors look past the noise we talked all of the time -- we all talk about why facebook has bigger social issues potentially at some point it may not be able to fend off esg or people walking with their feet that instagram article is damning. facebook says we are just learning about this when arguably they had this
information. trading inside of 20 times forward earnings 1650 a share very cheap i think the bounce off the 200 day is something you are buying and i think it's overdone. >> so hold your nose and buy pete, do you agree >> yeah. >> i agree with tim. nobody is proud of what happened and why the stock is under pressure, but that has happened to facebook on so many occasions. tim went through a list of different issues that have happened in the past 98% of their revenue comes from advertisement. you have facebook, instagram, we talk about the verticals all of the time
this is the growth area of facebook this is where they are getting more and more, particularly on the crowd underneath 35 years of age. i still think they are the biggest, the baddest, have the scale. i agree with him when you look at the pe level. this has been an unbelievable run for this stock this pullback is fully understood with the pressure on facebook but i hope they will be giving information on what they will be doing going forward. is it a little late? yes, it is but i think once they do that, people will embrace it just again. at 20 pe, facebook is cheap and
i think people are willing to own it >> i was surprised there weren't any boycotts surrounding the research facebook has done brands are so hyperaware of their social influence on society that i was surprised we didn't see any fallout there maybe that's a good sign for facebook this is not a boycottable issue and something you just skate by. >> i agree with what tim and pete said. specifically a couple days ago tim mentioned it bounced off a 200 day. it did, almost to the penny. technical setup is excellentin facebook the comment on the 2020 issue as well i would say buy that dip i am not saying buy this dip now. the problem is i am conflicted because if the regulators say
let's break it up, the stock moves higher if the regulators say make some fixes, the stock could move higher but the problem i have is when you say no about the negative effect it's having on children, that's a world class problem, a generational problem, an everybody problem. i can't buy the stock on that. is it the straw that breaks its back i don't know is it out to lunch you can see how conflicted i am. >> it sounds like you think it is because you just outlined a win, win, win situation where facebook wins no matter what together, broken up, the stock goes higher. but because of the impact on young girls it could change the course of the story. mike, do you agree with that or do you think facebook is
impervious to this >> i think steve was hitting on the critical issue, not whether or not the story is distasteful or the truth of the matter is distasteful, but whether it will have meaningful impact there are other businesses that have similarly been distasteful. a lot of people have disgust with certain magazines and also impacted how people felt about themselves and whether or not it was truly healthy. that seems to be the dilemma with facebook. but it has traded at a discount to its current valuation on two occasions, the fourth quarter of 2018 and during the pandemic all three of these guys are right. based on its growth, it would be hard to describe it as anything but cheap. you asked the question originally, do you hold your
nose and buy it? if it's distasteful, that's what you do i think the downside is probably fairly limited from here >> that's an interesting point that there are publications that face the same criticism. maybe seventeen magazine years and years ago. but they control their content here they don't control how many photos of young girls looking thin, whatever it is that is influencing how young women look at themselves, they don't have control over that content. it is what it is it is what is posted on the platform is this a more difficult situation to navigate because of that, they don't have that control? >> yes, but they are in a position to enact controls these are some of the smartest
people writing code out there. the fact they always seem to be a step behind, i am not buying it they always seem to be slugging their shoulders and saying we're sorry, what can we do nowafter major moments in our country's history. this is a major moment i guess we are in social media 3.0 or 4.0, but we are aware of the dell tearous effects we haven't talked about the 14.5 conversions and underreporting of about 15% we will be watching that number and forecast going into the fourth quarter this stock has room to take hits because it's still growing at 25% in a kegger for the next three years, but don't forget about that issue >> that is a key issue when it
comeses to a lot of these platforms. pete, is that a big question mark if you can put aside some of the trophy surrounding the impact on children and young girls, but you take a look at this issue which is fundamental, an issue that impacts not just facebook but a lot of other platforms, how do you view that >> it's interesting, mel, the interesting part about what they are doing, they sidestep everything i don't think they will be able to continue to do that at some point in time they have to address that. there is a lot of forms of securities they have to run through and they have to do a better job they know how to do the job, but they just don't want to. they always wait for the government to step in. what are the penalties for that? we have already seen in the past where they have taken capital
they are going to fire and say we are going to fix this problem, throw $5 billion at it and make it a much better process. i think that's what they are going to continue to do. i am not saying it is the right thing ethically, but financially they have been having a lot of success. this was just at a high back in june 380 i think was around the high end before this big pullback i think there are a lot of areas where they have to make decisions if they are going to do the right thing, but for now i think this is a stock that has upside >> i will ask this question to the tormented one. do you invest away from facebook, go to where the advertisers might skate to next? >> i think google has the best chart in the space facebook is close to beaten up and oversold, registering at a
33 i think google is the natural choice so whatever facebook loses with this event with the young kids google would probably gain in my mind. coming up, the big coin breakout bitcoin above 60,000 and one of the traders has been recomndg ismeinth stock for a while, but it is down 7% this week what do you do now ...aflac policyholders have been paid
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so you can stay ahead. get started with a great offer and ask how you can add comcast business securityedge. plus for a limited time, ask how to get a $500 prepaid card when you upgrade. call today. crypto coin alert. above 60,000 appears close to futures. bitcoin getting a further boost after jack dorsey indicated square was considering a bitcoin mining system. carter worth is with us to break it down. how are you? >> a dynamic day
bitcoin sharply in the last few minutes having been up sharply i have two charts. the first one way to draw the lines. we know that the sell-off that stopped this summer found the trend line in effect since the pandemiclow. bounced to the penny we have moved above the downward sloping -- call it a wedge, it doesn't matter that is a breakout the second chart is what to consider do we or don't we go above the prior high after the sell-off from the p pandemic, when we recovered it took a while to break out. it doesn't matter if it is bitcoin or stock commodity or x, y or z
after 64% sell-off, it took three months for bitcoin to move above its pre-covid level. so here we are we got as high as 62 and change. 63 today the presumption is that you back end fill or back away before you actually exceed the high it is something that happens more often than not. >> carter, thank you we will see you a little later on in the show tim, where do you stand on bitcoin and your other holdings? >> mel, do you remember the number one pick in the cnbc stock draft. do you remember who that was >> the past season >> no. >> the one going on now? >> yeah. you are looking at him obviously it was a highly coveted pick because everybody
wanted bitcoin even though it had rallied -- fsit was up 60% that year. i did draft it it was not in character. but that stock since that point is up 20%. the pullback from the first high, while they were moments and headlines from everything from china to relevant tri -- regulatory pressure, you never got the idea that people wanted to sell it the biggest dynamic is that the regulators are finding a way to regulate that's the best thing ever for bitcoin. institution wants to see this. more talk of sec means more moves of bitcoin going higher. what does it mean for the
broader positioning of crypto? very, very strong and we are looking for second and third level bitcoin plays. >> are you number one in the draft right now, in first place in the competition >> we have to pick two stocks. my other one isn't doing quite as well. >> just wanted a clarification not trying to take you down. just wanted clarification for our audience the announcement by jack dorsey about square is considering bitcoin mining might help with stocked leveraged. >> marathon digital, the stock is up 368% the chart is not thatt egregious so the upside. if you are looking for something that has the beta and torque in
the stock chart i would play mara because it's priced at $48 and change you don't have to worry about a $62,000 coin or $68,000 coin if bitcoin is going up, and i do believe it is and most of the people on this desk believe it is, especially the man who is number one in the stock picking all-stars. i think this thing will probably go to 100,000, then mara will go higher aggressively. >> i don't think i have ever used the word torque on air. >> you haven't you always get mad at me >> the more credible players adopt it formally. square could be one of those the more of that you see, that will be a positive we know the definition of inflation is too much money
chasing too few goods. the amount of bitcoin is limited seemingly if you have currency or not that is a tail wind. and there is momentum. that would be another reason you might expect that if it breaks out, it could go substantially higher i think if it encounters resistance which seems reasonable given what carter was talking about and investors behavior, then the numbers are within reach not everything closely tied to it is seeing the same highs. micro strategy is well off its all time highs having an etf tied to the futures of bitcoin would be one way for equity market participants market strategy is another one as well.
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somebody in there? narrator[ scream ]50 years, micheal myers is still alive. tonight, our family will kill him. i want to take his mask off and see the life leave his eyes. if you haven't signed up, have jim cramer delivered right to your inbox. joy this stock is down 7% since monday it's westrock. we call your attention to it because this is a name grasso has been recommending on the show do you stick by this one >> not only do i stick by it, i
bought more today. what hit the stock was the container board data hit the market, but that is backward looking data and prior to september or up till september the company on september 13 spoke at a conference for credit suisse they reaffirmed guidance that they were buying back stock. everything was in the price at $52 back then. right off that conference the market sold off, this stock sold off with it. it rallied right back to 52. now this old data hits the market, and i do believe it is old. and the stock sold off i took this as a gift from the market gods much i believe the stock will be above 50 in very short order, maybe in the next few weeks.
>> an interest thesis in terms of why one would be in it pete, with shipping everywhere i am not sure how much packagingmakers have the ability to raise the prices. >> are they able to pass along the price increase we know what happened with copper i don't know if they can keep up with that kind of pricing they have to make right now i would be on the sidelines with this one. if steve is grabbing more, i have to relook at this name. >> time to go around the horn. steve? >> i would be dumb if i said anything but westrock. >> you could have said something else tim? >> i would like to say torque but i am going to say disney
instead. i think you have a case where there is some discussion about an espn spinoff. i don't think that's in the cards. but i do by disney >> tech resources. i think there is material space with more room to the upside. >> mike? >> i like bmw, they are also innovating into the electricca space. we don't talk about them often the stock is well off its high that does it for "fast money" for the week. but don't go anywhere. "options action" is next
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