tv Fast Money CNBC May 11, 2022 5:00pm-6:00pm EDT
and continuing to go down. >> thought it was interesting too what richard fisher says, we don't have much time to chat this, as long as credit wasn't seizing up, the fed was more or less okay with the fact that you had a market the way you have now. >> that is the primary indicator. we'll see. >> mike santoli with his last word as usual. that does it for us. i'll see you tomorrow. "fast money" is now. right now on "fast money," with dow components front and center, apple selling off hard data, dragging down the major averages disney volatile in after hours reporting, better than expected growth for streaming deep dive on both stocks straight ahead buying in the board room which corporate insiders are scooping up their stock and what kind of message that could send to the markets and later bitcoin buzz kill. shares of coin base down more than 25% and news of a stable coin that lost its stability the bitcoin baller is here to break it all down. i'm melissa lee. this is "fast money" from the heart of times square. on the desk tonight, tim seymour, karen finerman, brian
kelly. we begin with apple's deep decline, the stock falling 5% today and quietly over the last week, down nearly 12%. the market cap dropped close to $320 billion in one week, that's one mastercard and two salesforces. apple has been a pillar of strength, not so much anymore. so what can that mean for the markets? brian kelly? >> well, it seems to me you might have more weakness here. apple has been this bellwether everybody has looked at it and said, you know what, this thing is levitating, this is what everybody is in, this is also a big retail name, so to speak and actually in everybody's portfolio, in the swiss national banks portfolio. they're one of the largest holders. this is the big one, breaking 150 was big, when we saw it break 150, you saw the nasdaq start to sell off and cascaded from there i think now looking at it what do we do with it you got to wait for apple to bottom and reverse before you say, hey, maybe this is a chance to buy the market in the whole.
>> it is not just apple, by the way. microsoft didn't have a particularly good day either, tim seymour. so, you know, for these two stalwarts in the market, the names that people pointed to is the ones you want to be in, even when the levee breaks, you know, to break down here, that doesn't seem like good news. >> mel, i love when you quote led zepplin. >> i didn't know it until the words came out that's the beauty of it. >> i bet you didn't. but, look, when you look at the contribution of apple and microsoft today, apple was down, rough math, 13% of the nasdaq, down 5%, that's 65 bips. microsoft, about 10%, down about 3%, another 30 bips. they are basically one-third of the nasdaq's loss today. and as i said on the show somewhere last week, when we said stocks were getting ready to buy or wherever we want to buy them, i said i don't feel great until apple is at 125. that's representative of also
where -- when it first made that move to 125 where the markets are, we all know the story of a stock that really has been defensive for a lot of good reasons, a lot of appropriate reasons, 23 times forward, still not that cheap >> karen, would you step in and buy apple or say 126 seems like a good level here? when you take -- it has a lot of cash too on the balance sheet, so, you know it looks different from other ones. >> itdoes. it does look different, but the one that looks even better, and what i was looking to do -- right at the close and i missed it was sell amazon and buy google google has more cash than absolute more cash and relatively more cash than apple. and so that's my favorite position i feel like amazon just anything that is a super high multiple, which given amazon's last quarter, the multiple has gone up, even the price has gone down, because the quarter was bad, but i just want to be out of higher multiples into lower
multiples. i'm long apple, i'm staying long apple. i would buy more around that level that tim talks about i'm long microsoft, and that's not particularly cheap either. but i'll hang on to it and i'm just sort of looking for things to -- i'm always long so i'm always looking for things to buy, but i lululemon i want , but it is not low enough. >> tech seems scary. from the perspective of someone sitting at home, the growth of all cost names continuing to get hammered and you have on top of that, the big tech cap titans getting hammered on top of that. it seems nothing is quote, unquote, relatively safe in today's market. >> you nailed it, apple and microsoft were considered the safest names in large cap tech those two have fallen off the cliff. and just to kind of extend what
bk was saying, these are in everyone's portfolios. no one is selling them so we all held them, i still hold them, karen owns them, all these huge vanilla accounts own them they're not going to sell them the problem is who is going to buy them because all of those huge accounts already own them. so the retail public has to buy them how are you going to call a bottom when you still have russia rates, when you still have inflation, when we still don't know what the fed is going to do with the balance sheet i think we have further to go. therefore apple has further to go as well >> carl quintanilla tweeted that is the highest volume day of the year for apple, which is also notable, given the decline in today's session. so, tim, i'm wondering if you take that as some sort of little bit of solace in that this was done with a lot of conviction, the selling, and so that therefore maybe we're closer to getting to the bottom in apple at least than we're not. >> i think if you look across
the volume on the street today you saw 1 1/2 times volume on most of the megacap stocks if you look at arc today, with times volume and you see that start to crescendo getting going on apple, for the reasons that are well stated here, this is -- apple's balance sheet, apple's capital markets approach and everything about their core business is great the problem here is it goes back to earnings. i still haven't heard apple tell me anything about demand destruction. i only heard about supply dynamics, about what is going on with their services business on the demand side, but really the pull forward here, to me, i don't know why apple isn't throwing in the same camp with amazon in terms of covid pull forward, and i realize it is a refresh cycle and we're tied in here that's what concerns me. and the volume today, back to the question, is something i think it should be higher, it is just getting going, that kind of a day. >> i think the pull forward point is interesting people don't think about that in terms of apple
people bought a lot of ipads during the pandemic. i don't know when you're in the market again to shell out another couple thousand bucks, bk maybe you need new stuff all the time but, still, like, that is a dynamic at play that the demand has been pulled forward. >> absolutely. and not just for apple too let's expand that out. the one thing we haven't seen in this market is earnings estimates start to come down dramatically, right? and so what's going on in the market if i look at it, the equity markets are starting to price in some kind of a global recession or at least a hard landing here in the u.s., where in the last couple of weeks it was a softer, softish landing. what do you have to do then? have your earnings estimates come down. if we're looking for where is the time to buy, and where is the bottom, you want to see a big volume day, but that's one element of it. you need to see the reversal, but i think on the fundamental side, you really need to see analysts capitulate and say, hey, you know what, earnings aren't going to be good or a warning or something like that you can say, hey, you know what, maybe it is time to get back in.
>> let's get to disney, that's moving the after hour session. the company reporting stronger than expected subscriber numbers for the streaming platforms. julia boorstin is here to take us inside the numbers and tell us what is going on with the conference call. julia? >> well, melissa, to look at that chart there, first the stock popped and then turned negative the pop was on better than expected subscriber numbers for disney plus. company added 7.9 million disney plus subs, rather than the 5 million that analysts had anticipated. the company did say they're on track for their targets of between 230 and 260 million disney plus subs by 2024 and the service will achieve profitability by then. but the stock has been moving lower, it is now down about 3.5%, this all happening during the earnings call on a warning that the company just made saying that they did add more subs than expected in the first half, also warning that some of the markets that they're going to be launching towards the end of the fiscal third quarter are
going to be impacted by those geopolitical factors some of those countries in eastern europe the company also saying they expect content sales and other licensing results to decrease by as much as $200 million from the prior year while direct to consumer programming and production costs are expected to increase by more than $900 million in fiscal q3 and they say that reflects various higher content expenses. bob chapek saying that they are carefully watching content cost growth the company did adjust down the content spend for fiscal 2020 by about a billion dollars. chapek did speak on a lighter note about strength in the parks division, which did beat expectations he noted that at the domestic parks per capita spending was up by 40% melissa? >> julia, the stock is now down by more than 4%. so it is agone deeper in the red since we started talking but i want to be clear, they're
talking about geopolitical impacts and the markets that they plan to launch in the third quarter. so that's basically their guiding down in terms of subs for the year >> yes, so the indication was that they hadn't expected to add as many subs as they did this quarter. they did in the first half of this calendaryear add more sub than expected. so there is this question then is will the second half maybe perhaps be lighter if you look at the fact they're going to be launching disney plus in markets like poleland, they're going to be sensitive to the fact there could be impact of that russia conflict in ukraine right now. there is the question of uncertainty there. and then also i think a little bit of caution in terms of saying they're pulling down their content spending from $33 billion to $32 billion for the year some people might say that's being responsible here, and the company has talked about this flywheel this idea that they are having success taking different brands and expanding them across all
the different platforms. a lot of talk about the success of some of the recent films. but, melissa, it seems like we're getting a lot -- a little bit of caution and a little bit more granular detail in the commentary on the call now i just want to point out, the bright spot really does seem to be the domestic parks in particular, revenue beating expectations, but particularly that spending being strong, at least through the end of the quarter. >> all right, julia, thank you keep us posted julia boorstin on disney, shares down about 4% right now. steve grasso, what do you make of the quarter >> yes, so, streaming obviously beat, you're going to get your bigger margins there parks is something that we have been talking about, with the reopening. they do a very good number there. and if you look at the numbers, they're beating prepandemic levels in parks. that's a huge event for disney the problem is the market -- macro market is selling off. disney came off from $156, last earnings, all the way down, it
was actually higher than that, all the way down to $100 where it is trading now. didn't pop enough off of earnings now, if you look at the pandemic low, unless my screens are wrong, i believe we're at $79. that, to me, is an incredible level to put it in perspective we're not talking about a pandemic right now we're talking about geopolitical, and political head winds for disney at a macro market that is selling off this means that the market is concerned more with macro than they are with granularity of disney actually having a good report. >> tim, as a shareholder, what do you make of it? and in terms of the impact, geopolitical impact, that seems like that's something you would look through because it is not demand destruction, it is demand delayed. if the conflict gets resolved, the demand should be there eventually >> so they reaffirmed 240 to 260 million subs by 2024
they have give someone caution that maybe they pulled a little bit forward, but they have new markets. netflix, if you think about some of the pain here, it is about where they are saturated y let's see on disney. disney's brand, disney's image around the world is extraordinary. they're building the markets extraordinary. i think the diverse ified platfm of disney is what this is all about. what are you willing to pay for this company that has this flywheel that we talk about all the time on the show in the studio that continues to crunch it out it is 20-ish times on forward, which if you look back on a ten-year, it is actually in line but if you look at the last couple of years, the problem is streaming assets everywhere are being revalued what are they worth? the depth of linear tv undisputable disney as well positioned as anybody with more diversified model, agree with steve, parks is extraordinary, even with that international tourist, i think
it is time to be buying disney >> what would you pay for disney, karen? >> less than right here, probably and tim talked about it 20-ish multiple, you have to pull out the parks. parks was really great and yet it is sort of a -- people don't want to talk about that, that's not the story, it is the streaming story. and so the blended multiple is 20 and the parks aren't getting much credit, what does that mean for the streaming multiple n could disney trade down for the streaming multiple why not? i don't know it trades below 100, it could trade as low as 90, that wouldn't be shocking probably there i would step in, i agree he with tim it deserves a premiere multiple >> for me, i'm going to play the dyslexic guy since i am, i look
at it backwards. i don't think the parks number is good for the stock price. here's why because that's already in there. we already know that is it going to get any better? are people going to give travel more probably not with the gas prices going. what i do like, though, is that we're starting to press in some of the geopolitical risk this as steve mentioned, this was a $200 stock or a little more than a year ago we priced in a lot of bad news, i saw parks start to go down and the stock move down toward the 80s, then i start to get interesting. >> coming up, we'll over the after hours news in beyond meat and rivian and those companies moving in opposite directions. and sundar pichai sitting down for an exclusive interview after the developer conference what he had to say on the tech titan's future the details when "fast money" returns.
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some of the new products like beyond plant-based jerky in partnership with pepsi, which helped offset revenue decreases it saw in its u.s. retail segment. he talked about some decisions today that were made -- costly like manufacturing that product, contributing to a reduction in gross margin that he called sizable in order to support strategic launches the company is also expanded into more retailers and even drug and convenience stores for products like chicken. so likely more commentary to come on the call about those in terms of guidance for the year, net revenue expected to be in the inline here in the rage of 560 million to 620 million. the stock down more than 20% now, new 52-week low today, down 70%. back to you. >> thank you, kate rogers. this is not the kind of stock this kind of market likes, steve grasso, obviously, down 21%. >> no. no, it isn't and just talking about it, i know fundamentals don't matter and i know the actual
granularity doesn't matter, but i think we were pretty unanimous on this desk that it is not a healthy substitution for meat. it i loaded ed with sodium and load with fat forget about that. let's talk about tyson if the united states starts worrying about food and ag and distribution net works and supply chains, beyond meat doesn't have any of that going for it that's not going to help with the head winds going forward it is ta growth stock, tsn is where i would be. >> brian kelly >> i looked up the pe ratio of beyond meat on my google machine here, i got an na. you know why it doesn't have an e the e is negative. when people are looking for how much cash is on their balance sheet, where can i get a value here, beyond meat is a name you don't want to be in. i don't care whether you like the meat, don't like the meat, you just don't want to be anywhere near this in this environment. >> let's stick with the earnings
here and get to rivian the stock is popping, it is a company maintaining production goals for the year, despite a loss per share and big revenue miss the conference call is under way. phil lebeau is here to dig into the numbers. >> this is a relief valley it is not much of a rally, but it is a relief for investors in rivian because this is an affirmation of what they said over the past couple of months 2022 production, said 25,000, reaffirmed that today. 2022 ebitda guide, they reaffirmed that as well. a loss, but they won't lose any more than previously expected. reservations, now topping 90,000 last time we got an update in march, they were at 83,000 on the skcall, they said more ta 10,000 reservations have come since they increased the price remember when that happened? and they increased the price and then people said what's going on here and those are for the trim level topping $93,000.
and finally, the capex guide was also reaffirmed for this year. and the tenor and tone on this conference call, far different than after the fourth quarter. during the fourth quarter call it was pretty clear, r.j. was talking about prodon and they still have some production issues, but it is -- they did not have the same level of confidence that they're exhibiting on this call today. so that's the reason you see the shares moving higher post markets. >> all right, phil, thank you. phil lebeau. i like how phil called it relief rally, but not much of one considering the stock is down 48%, in the prior one month period, tim. up 4% after hours. that doesn't seem like much. >> this isn't real relief you want and talking about the -- it was a narrower loss than expected, talking about we have enough cash on hand to launch a new vehicle in '25 and newer priced suv. it is all on the future and the market is not paying for future growth now think about companies that need
to come to market and what the cost of capital will be. look, rivian has incredible, let's remind everybody, the partners they have in amazon, and the commitments that amazon has here, and in ford, and in other service providers is extraordinary. it is a question about waiting for this company to actually deliver on profitability and maybe the market does need to do that, but reaffirmation is good in this environment and they have some peers further down on the eb quality curve that haven't been able to do that so, you know, good for them, not a reason to go buy the stock. >> the short interest is 11% on rivian, so the up 5% really doesn't seem like much in that context as well. but, karen, the whole space, look at tesla, that was down 8% with a lot of the megacap tech titans even the ones that deliver cars, it is not any easier. >> right i think the worst thing that ever happened to rivian was going public when they id. i don't know, 78 and then traded up to 140 or something, which
was insane so it is not crazy that it is here it is really much more crazy that it was ever there the rest of that release looked okay, was -- had we not seen all that drama before, i think this wouldn't be that dramatic. tesla, though, however, obviously great production numbers, they make money, the balance sheet is in good shape, all of that. it is the pe multiple that is no longer in vogue now. and i think that pressure will continue. >> all right, we're just getting started here on "fast money. here's what's coming up next an inside scoop. top execs buying their own stock. so does their conviction mean upside for your portfolio? the details ahead. plus, crypto collapse. coin based shares tanking after reporting. the entire crypto space is feeling the pain our bitcoin baller is breaking down the carnage you're watching "fast money," live from the nasdaq market site in times square. we're back right after this. you'll always remember buying your first car.
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welcome back to "fast money. stocks finishing sharply lower, the nasdaq down more than 3% in the middle of the selling there is a growing wave of insider buying going on. walter bettinger grabbing $9.5 million in stock, toby lutke, a $10 million buy in, daniel ek, $50 million, all the pickups coming in the last couple of weeks. here to take us inside the moves and give us some insight into the well timed buys is ben silverman, director of research at verity data
great to have you with us. > >> perhaps this is a good sign overall for markets? >> it is not surprising when stocks sell off like they have been historically insiders will buy i would say right now we're seeing some encouraging signs, earnings season is wrapping up over the next week or so and that's going to free insiders of virtually every company to be able to buy stocks so right now the early signs are encouraging. >> it seems like when you parse through who is buying and why they're buying, it is important to keep in mind that, you know, ceos and c suite execs are like any other investor, sometimes they buy well and sometimes they don't. so who has a good track record in terms of buying well, buying well timed purchases of stock? >> that's an excellent point so when looking out at the recent buying, some people who
stand out are lester knight, he bought $4 million in shares. he's got a strong buying track record, stretching back over ten years. he's bought in $50 million of stock in that period he's univ he's just got a real knack for recognizing when the stock is oversold and does a good job of buying stock, and really sending a strong signal. another interesting one is general motors cfo paul jacobson he joined the company in december of 2020, this is his first buy. but he was the cfo at delta airlines, part of that, he had a good buying track record there so he just bought 1.4million in shares, so we like a finance exec who sends undervalued signals. >> another sort of signal is reversal of sentiment. this was interesting because dara falls into this bucket. >> yeah, you know, and you noted charles schwab's ceo walt bettinger as well, even toby
lutke at shopify, i will say $10 million buy is a great buy, but people should be aware he sold $150 million in shares during the back half of last year so it is a small reinvestment for him. so you do want to look for people changing their sentiment when the stock comes in. the truth is insider buying is a management action, versus management words that happen on conference calls >> and just to be clear, just to underscore the point these are buys that are being made outside of just designated plans, correct? >> correct these are open market in the here and now buys. they're seeing what the stock price is, typically coming right after earnings, you know, there is the material nonpublic information is out there, and they're choosing to buy. >> all right, ben, great to get your perspective thanks so much >> thank you >> ben silverman karen, do you like at insider buying as any sort of signal >> i do. i mean, i remember very well when jamie dimon bought almost
$50 million worth of jpmorgan and that was the bottom. it is not like i remember everything jamie dimon does, but that very much turned the sentiment here to me that spotify, $50 million, that's a big buy that's worth looking at. >> yeah. and any of those companies, steve grasso, pique your interest >> well, when you look at -- i think you nailed it, do they have a track record, and, b, when you look at spotify, down 76% year to date, uber down 46% year to date, so i wouldn't be piqued on either of these. i do think it is odd that lyft is trading right at the pandemic low. uber is still trading above that so if you think about the economy opening up again, you would probably maybe dabble in uber, but i really don't feel inspired one more thing, there is reasons, 100 reasons why people sell stocks. they can diversify they can be going through a
divorce, they can be doing any one of a number of things. there is only one reason why insider buys, i don't care what they hold, the stock is going higher. >> in uber, you think about what just happened. they released some relatively bad news, right, and uber's trading back to basically pandemic or prepandemic levels and so you've got a ceo there that basically put up $5 million and said, you know what, i'm going to turn these things around and i'm putting my money where my mouth is. it is not enough to get me to buy, but it is a great signal from the uber. >> all right alphabet shares sitting at lows for the year, down more than 21% as they kicked off their annual developers conference today. diedra bosa had a chance to sit down with sander pichai. >> we were watching the market close, the nasdaq down another
3% he said like everyone, he's watching, it is uncertain right now, but he said he's not going to scale back investments. they're going to remain nimble have a listen. >> so we are continuing to invest, but we obviously given the uncertainty, pay close attention to it, and as a company we need to do something differently, like we always have done we do this responsibly. >> and i did ask about specific plans. alphabet is planning to hire 12,000 more employees this year, also spending nearly $10 billion on infrastructure for that hybrid work strategy so i asked him too, what made him different what made him more confident than other tech companies right now, like meta, that is scaling back their hiring plans, whether that be a freeze or maybe some other companies that are looking at layoffs. and he really said it came down to diversification
advertising is still and search is still alphabet's main business, but we talked about a whole lot of other things like youtube, self-driving, cloud we'll talk about all that tomorrow morning. >> that's a tease. what did he say about youtube? what did he say about all of these things we'll tune in tomorrow deirdre bosa with sundar pichai. tim seymour, you own it, stock has been terrible. what do you do here? >> it was an outperformer today. this is one where i think you have an opportunity to be adding on weakness and i wouldn't feel uncomfortable owning google at these levels this is a company that not only on multiple, we talked about this all the time, it is a peg ratio that is inside of one, it is a company that is trading probably 18 times forward, maybe less at this point, but they continue to invest in their business they also just have come out with a bunch of products that i
don't know if you challenge apple, with their own smartwatch or their own earbuds or with a handful of other products, but i do think when you look at the core business that they have, search, but then also the youtube business, and where they sit in the digital ad world, these things aren't going anywhere these companies at these levels have been thrown out with the bath water. >> not going anywhere in the sense that they're not going away but in terms of advertising these days, you have search, it is great because of the leverage it has to travel at this moment in time. but the overall ad spending picture, are you concerned about that in this market? >> it wouldn't be surprising if the economy really took a turn for the worse if their advertising revenue went down. but i think that the balance sheet, the modes that they have, the valuation that it is trading at, remember also they're doing a $70 billion buyback, which would be nice support for the stock. so just like tim said, i was
looking to buy it actually right at the close today so i'll probably do that tomorrow morning could it trade down? of course. everything could trade down. but i feel like in terms of risk reward, this is one where i definitely feel much safer than a high-flying multiple that has come in a lot but is still ref t relatively high multiple. disney shares are higher after reporting. we'll talk to a top media analyst who says the company should do a streamer swap. we have more on that next. check out coin base cratering after results this morning. the entire space is in disarray as crypto winter takes full effect we'll dig into the moves when "fast money" returns at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan
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before we get to what chapek should be doing what is the stock down after hours >> i think the cfo signaled a bit of a slowdown versus expectations still growing, still saying more subscribers to disney plus in the back half of the year. which she said essentially won't be as strong as they had previously expected. really due to the first half outperformance so, you know, i think a little bit of just investor skittishness is coming down for subscriber growth, signaling the geopolitical activity in eastern europe could put some pressure on subscriber growth i think there is just a fundamental reality of the market is growing increasingly concerned about the r word recession is everywhere, inflation is everywhere, and those fears are going. while disney's theme parks are literally packed to the gills. it is absurd i don't know if you've been down there recently the flip side is we have seen a lot of sort of covid bene beneficiaries start to pay the price over the last six or nine
months, talking netflix or roadblocks the fear is does disney pay the price for this next year is this the benefit right now and what happens on the other end of this sort of surge and do we boomerang back next year. that's a fear that is growing among investors. >> pull forward basically of travel in terps of disney land why you to think disney should make a purchase now? what do you think it should buy? why is that the answer for disney >> it wasn't too long ago i was on the show and we were talking about how disney -- i should say netflix's enterprise value surged ahead of disney now you're talking about disney essentially three times larger than enterprise value. it just seems like this is a unique opportunity and the companies are very complementary. netflix has global scale in streaming beyond just family the place they're probably weakest is in family content kids content that's not where they're strong, but that's where disney is
strong so i would look at something like hulu, hulu is a sort of u.s. only asset, disney plus is going to be bigger than hulu soon it just doesn't seem to have that much strategic importance, versus for your parent company, nbc, it would be a real asset to combine it with peacock and to really have a very strong u.s. presence, i think it would make a lot of sense for comcast and nbc and for disney, that would give them a stronger balance sheet and allow them to go out and do something like netflix, or if netflix is too big for essentially their stomach, you look at something like roadblocks and we talked continuously, my partner keeps talking about how interactive entertainment, interactive experiences are the future of media, disney could be leaning in and own one of the biggest platforms out there in roadblocks and roadblocks is a $12 billion enterprise company, even if disney played 2x, it would be pocket change especially if they sell hulu i keep thinking about bob iger, he came in, he made his mark by
buying pixar that was the transformative transaction that started the iger era there was marvel and lucas films later, but that transaction was doing something big and bold early on we haven't seen that in chapek it seems like this market is creating that opportunity and the question is does he take advantage of it because disney looks a lot better positioned than most of the other media companies now in order to take use the balance sheet and use the underlying diversification >> it is karen, thanks for coming on. i understand what you're saying about selling hulu, but still disney had that not near death, but that painful experience with debt for an acquisition before so they can't or probably wouldn't want to use their currency, their stock right here to do an acquisition it would have to be north of $100 billion deal. do you think there is a chance that apple could come in to buy netflix? >> look, anything is possible.
i don't think that's the way apple operates their largest acquisition is still beats for a few billion dollars. you're talking about let's just say netflix would sell for, you know, 2x where the stock is trading today. you pick a number, i don't know what the number is, but that's just a massive transaction i think apple is showing you brick by brick, they're building a streaming business, they're being very patient, we'll see whether they get sunday ticket, but they seem to be leaning into sports a little more heavily now. i would say dollar for dollar, if you were to look across the entire streaminglandscape, content quality, not most watched, not most viewed, but content quality, of all the streamers, dollar for dollar, apple is actually hitting it the highest batting percentage, like it is just -- they're really creating great content, and i just think from that standpoint going out and making a huge acquisition just doesn't feel like apple
doesn't feel like they need to apple is not suffering because they don't own netflix >> rich, got to leave it there always great to fit your analysis rich greenfield, lightshed tim seymour, would you be happier disney shareholder if disney bought roadblocks or netflix? >> all depends what they're paying i like the idea. we talked about on this show where they should get into gaming as well, whether electronic arts or one of the entities that made more sense and especially ones that are trading well off their all time highs. i do believe that roblox could be brand friendly, it could connect them to a universe that we all talk about all the time, they don't need to be there now, and if i think about even some of the concept that could come out of that, that is something that is ripe for exactly what disney does well so could they be opportunistic here yes, they could. >> all right coming up, coin base crush we'll dig into the details next.
speaking of crypto, bitcoin and the rest of the space up in flames as a meltdown in one so-called stable coin shakes the whole crypto market. the bitcoin baller is making sense of the madness asmoy"s ckn e.er "ft ne iba itw hybrid work is here. it's there. it's everywhere. but for someone to be able to work from here, there has to be someone here making sure everything is safe. secure. consistent. so log in from here. or here. assured that someone is here ready to fix anything. anytime. anywhere. even here. that's because nobody... and i mean nobody... makes hybrid work, work better. insights illuminate better choices. allowing us to see differently makand do more.rk, with kpmg you have the people and technologies, to uncover insights and turn them into action. when we act on insight, with the right people by our side,
welcome back, breaking news on elon musk and federal regulators let's get to julia boorstin with the details. julia? >> well, melissa, "the wall street journal" is reporting that the ftc is investigating elon musk's failure to timely report -- to report his buying of twitter shares in a timely manner to antitrust enforcers. the question here is the timing of those disclosures sources telling "the journal" that the ftc is establishing a deadline in the next month for the agency to decide whether to conduct an in depth review of the twitter transaction. noting that under u.s. merger law, musk is required to notify the ftc and doj and wait at least 30 days before closing a deal in order to allow an investigation. we are reaching out to the ftc and twitter to comment we'll let you know when we hear more those twitter shares, still far below the $54.20 that musk is
buying the company for melissa? >> julia, thank you. julia boorstin. karen, are you even more skeptical that a deal gets done given this news? >> i'm not i think for sure he violated the rules. no question to me. it was ridiculous. he didn't file for weeks after two weeks after he went over 5%. i think we have seen him make a mockery of the s.e.c. multiple times. this is just another one i they think will penalize him money, it could take time. at some point as an arb, it is going to be a buy. not yet, but another couple of days we could get there. >> all right, we got our buzz kill for you on coin base. we brought you the earnings on the show last night. the stock continuing to get slammed in today's session the ceo reassuring customers that crypto exchange has no risk of bankruptcy. there was a line in there, in the filing, to the effect of, you know, basically they're a
custodian of assets and they could seize the assets that is sure to spook people and it did today, didn't help. >> well, again, the people are looking at the magic that has been crypto, blockchain and what is evaporated. and a lot of people don't really ultimately know where the exposure lies. to the extent that they have to clarify comments and that creates more of a problem on, you know, a week when they already announced earnings and talked about the depth and destruction in that space, i think it is really more about who is their client base, how -- how have they survived this, will they still be in tact i think that's the existential risk here. they should be making statements that's what they're doing. >> all right speaking of crypto and huge drops, check out this stable coin stable coin. tara's luna breaking the one to
one peg to the dollar plunging to as low as 26 cents this morning. we talked about this earlier in the week as being a contributing factor to the decline in bitcoin that we have seen recently. >> yeah, this was a real accelerant this started over the weekend. this is an algorithmic stable coin they pegged their ust to $1. over the weekend, that peg fell apart, it caused people to sell the other coin which is called luna, and at the same time what the luna foundation guard, which is the foundation behind luna, they came out and they had bought a billion and a half dollars worth of bitcoin and the world was afraid they have to sell that bitcoin to stabilize the price. they haven't sold the bitcoin yet, but the currency collapsed and that really accelerated the sell-off here in bitcoin >> so i asked you this in the break before, but will ask you this for the benefit of ur viewers, that is i understand there may not be systemic risk
in terms of systemic to the financial system, but system nicic in the crypto world, is there risk >> any time you see this extraordinary volatility, you'll see whether it is funds t ss tht blow up, individual investors nursing quite a few wounds, so i think over the next couple of weeks you're going to see some of these bodies float to the top. and you needto be worried abou that now, in the long run, i think this ultimately if we get through this, it is going to harden bitcoin in the short to medium term, we have negative stuff to get through. >> and you're still net short bitcoin. >> i am still net short bitcoin. i think at some point there will be a massive boying opportunity, but not today. >> around where? >> it is less about price, i'll probably for me if i can cover my shorts in the low 20,000, i would be pretty happy. but it really comes down to when the fed pivots, that's when you want to buy. >> all right meantime, let's check out roblox
shares finishing the day well off highs. it was up as much as 22% today after reporting results that missed on the top and bottom lines, but the company did report strong user growth and one options trader is paying or betting that growth will pay off. tony zhang joins us with the action tony >> yeah, melissa, roller coaster day for roblox trading nearly 5 times the average daily volume and one single trade accounted for 13% of today's total volume, 18,000 contracts of a january 20 2024 2024 2024 17.5 30 65-call reversal. committing $31 million in capital to purchase 1.8 million shares if the stock does fall down to that 17.5 put strike very long dated, very large bull, play here for roblox >> steve grasso, bad news, good price action
what do you make of the stock? >> well, it is down 45% for the month. and i get you on the bad news, good price action because people are just bottom fishing at this point. you have shorts that are looking to cover as well but when you're looking at this, if the market still continues on its trending lower, which i think a lot of us still think it is going to do, this one is going to trade lower i would look at yesterday's low, which i think was around 21, 65. if you risk money in today's dollars here, use that as your out. >> all right tony zhang, still out there, thank you. for more options action, tune into the full show friday at 5:30 p.m. eastern time up next, we got your final trade. stay tuned when traders tell us how to make thinkorswim® even better, we listen. like jack. he wanted a streamlined version
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fortitude gold producing high grade low cost gold with a cfp® professional. in nevada usa. a gold investment delivering monthly cash, dividends and substantial yield. fortitude gold. welcome back to "fast money. kohl's under pressure after shareholders voted to keep its current board of directors this comes after activist firm pushed for the retailer to revamp its slate of directors. this is a follow-up, because you railed against the kohl's board for allowing the vote to go through. what do you think now?
>> i think the board is really done a disservice to shareholders we don't know if this process to look at other bids to sell the company is really been pursued realistically. i would love to hear that it was. and that they get sold for a price much higher. we know their bid is at 68 and higher the risk reward is down a buck or two, at 20, i'll hang on to my stock. >> final trade, around the horn. tim seymour? >> disney, we're backing 2015 levels, where the company was valued differently in a different environment. i get that i like what we have here. >> steve grasso? >> hershey, it is not what to buy, it is what to sell. i think you take profits, hershey, sell it, for the last month, made a series of lower highs, lower lows. >> karen finerman? >> well, walgreens, they sold at $900 million stake in american amerisource, good for them, use that to pay down debt, it is a
value stock with a high dividend >> brian kelly. >> for me, on down days like this, i look at my screen and what's green exxonmobil was green today the refining margin should be pretty good still. >> all right, thank you for watching "fast money." see you back here tomorrow at 5:00 "mad money" with jim cramer starts right now "mad money" with jim cramer starts right now. my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money. want to make friends, i'm trying to help you save money my job is not just to entertain but educate and put days like this in context. call me at 1-800-743-cnbc or tweet me @jimcramer. the fed is