tv Fast Money CNBC June 1, 2016 5:00pm-6:01pm EDT
or mot. >> if people aren't working overtime, maybe they have to do things during the business day anyway. i'm sure it's not just millennials. thank you so much. carol and mike. that does it for us on "closing bell." "fast money" begins right now. "fast money," right now. live from the nasdaq market site, i'm melissa lee. the traders are pete, karen, brian and guy. tonight on fast, is a june swoon for stocks right around the corner? we've got three stocks that always perform well in june, no matter what. we'll give you the names. plus, oil hovering near 50 bucks, opec gears up for the big meeting tomorrow. a top analyst in the space tells you where you should be putting your money to work right now and where he sees value. call it a case of leisure drama. slamming the company in an open letter. it got the street talking.
we start off with autos. very bleak picture for auto sales in the month of may. numbers tanking across the board. gm and ford falling hard today. what are the dismal may numbers signaling? >> autos, trouble. autos have been a huge driver of gdp growth since 2009. cash for clunkers. then subprime loans exploding. now, mike jackson was on cnbc back in january. he's the ceo of auto nation, the largest car dealer. he said back in january that things were slowing down. what's interesting is the automakers, they increased production. so now we have an inventory problem. we have almost three times as many cars in inventory as are being sold. at that level, that's the last time we saw that level was back in 2008. and that generally signals the peak of an auto cycle. we talked about the peak, but as
that comes down and you start to see ford and gm start to take some production offline, if this really is peak auto, that's going to start hitting unemployment, that's going to start hitting gdp growth and filtering through the economy. >> is this an auto stock problem, or symbolic of what's happening in the economy? >> i don't think it's symbolic. people bought all the cars they need for now. a lot of people have been talking about peak autos for quite some time. the may numbers indicate maybe they've been right. as b.k. has been saying for a while, maybe they are correct. i don't think it speaks to the health of the consumer. i think it speaks to the fact that enough cars have been purchased and they'll move on to something else. you look at home depot and certain retailers doing okay. with that said, i don't think the consumer is in great shape, but i don't think you can discount the consumer entirely because of these numbers. >> consumers are not buying sweaters, or shoes, or whatever they're not buying, these smaller goods, because they're
buying big things like autos, and houses. or big things like cars anymore, because that's where the weakness was in the sales numbers. will they return to buying the sweater or kulats or what have you. >> i hope they do. i think that some of it also in travel, we've seen huge travel numbers. dining. i think the home depots of the world are still doing well. we'll see if it's more than a one-month blitz. it's interesting that gm has been down, and just not trading well all year on the fear that we're going to -- autos are going to peak. it's very frustrating probably to be a gm holder and have it trade down on this news for so long. and now it trades down again. >> right. >> and this is the beginning then, it's not going to turn around so quickly. >> is there a trade in the auto sector? >> stay away from the autos, and go to the auto parts type
makers. the interesting part is within the autos, if you really separate it out, it was automobiles that struggled. it was the ones that actually get the best fuel efish si. again, part of that trade with oil. oil started to rocket up to 26. today we saw movement just like yesterday. today, nice reversal off the lows. but it's interesting to see if you look at the ford numbers, f-150, it was the lower end models that struggled. >> construction sales are down 1.8% lower than expected today. obviously the trucks are used in construction. i still think this is a -- >> the housing market is decent. >> pickup trucks, though, i don't think that's fair to say that's all construction. there's people like me, a lot of folks out there that would have gone to the more fuel efficient car that pushed to the pickup truck. >> let's bring in our expert
here, phil lebeau. sorry i missed you yesterday, phil. it was declined specifically in car sales that was pretty staggering. do you think that's a permanent thing? >> i think it's permanent might be a little extreme. let's say we have gas spike up to $4 a gallon, within two years, you'll see people rotate back in. you have more crossovers that are available. because you have more fuel efficient crossover into suvs. people are saying, why am i buying a cruise or a fusion. sedans are just falling out of flavor. it doesn't mean they're not, you know, decent vehicles, they are. they're better than ever before, across the board. whether it's asian, european, domestic. people want the utility. that's the shift you're seeings here. as you date whether or not we have peak or plateau autos, look at the overall sales rate for the year. we're still in the high -- not high, but low 17 millions.
last year was 17.46, a record pace. what if it comes in at 17.3. people will say they're down year over year, but still, you take it. you take anything over 17 million. it's a matter of whether or not the automakers are going to be able to manage the top here. to your point about inventory, rook look at gm. it's down to 71 days. that's something investors should want to see. not just gm, but all the automakers. whether it can keep it in the 60 to 75-day range, preferably down to the 60. >> what would the auto bulls say about the stock's performance? that doesn't jive with what's going on. we're not far off from peak here. >> i bring this up with auto executives. you ask us to get our north american profit margins above 10%. we've done that. you ask us to be more profitable per vehicle, we've done that. you guys are more expert in this, in terms of investors, i think vefrt sentiment is, this is as good as it gets.
why should i buy these stocks expecting it to go up in the future. >> it's flux twactuated at 30 d. in an environment where auto sales are through the roof. so what is the environment that -- i'm asking the question you're trying to answer. what is the environment they need for the stocks to go higher. >> i'm at a loss to figure out. you even talked with those who were skeptical about the auto industry. activist shareholders, they're baffled. they're like, what else do we want these guys to do? you want consolidation in the industry? you're not going to get the kind of consolidation that people would want. you would have to have major automakers come together and get economies to scale, build 20 million vehicles. who's going to say, sure, come on over, you can take us over. the only one who wants to be bought right now is fiat chrysler.
jeep, three times more jeeps were sold than all other cars made by fiat chrysler. cars, not automobiles, but cars. they don't want the dodge dart. that's not a knock on the dodge dart. cars and sedans have fallen out of flavor. >> do you think tesla is watching these mass market vehicles? >> we talked about this. i think they're more focused right now on what their inventory shows in terms of the reservation backlog. i think that's what they're focused on. >> no worries so far? >> i wouldn't say no worries completely, but i don't think they say, people have had enough with cars. >> good to see you. phil le bea. pete said autos are not a trade. the automakers that is. >> i agree with pete. gm and ford, gm, again, $30 now. it was $30 this time in 2012.
it's vacillated to the other side. it's also been in a descending level. it continues to make lower lows and higher highs. i think the trade if you want to be in it, listen, i think tesla gives you an interesting risk/reward. i think they price the secondary a week or so ago. traded decently off that. if you want to trade with, i think, low risk, high reward, tesla 215. >> the auto sales are symbolic of the broader things going on in the economy. what's that trade? >> that's just your bigger macro trade that earnings are going to come in generally so you want to be short the s&p 500 or something like that. i think more specifically, you can be short ford. you can be short gm. i would also look at car max, kmx, which is the largest used car dealer out there. we've seen used car prices come down. a lot of used car owners now are underwater on their debt. so i think that's another place you could play. if for some reason you wanted to be crazy and actually buy
something, look at penske auto group. and they tend to be in the jeep area. they would probably do a little bit better. >> it's just impossible to reconcile the valuation differential between gm and tesla. >> well, yeah. >> it really is. gm couldn't be more out of favor. you have to have such a long-term -- the best thing that could happen to gm is a big trough. and people will start to look forward. now all they're doing is looking down. >> up next, lululemon founder taking direct aim at the company's letter. the comments you need to hear. plus, if you're worried about a june swoon, we'll tell you how to beat it with the three stocks that always perform well in the hot summer months. and later, opec's on deck. we're going to hide out in the oil trade. the best picks. much more "fast money" right after this. need to hire fast?
he spoke earlier today on cnbc exclusively. take a listen. >> if you see what lululemon is doing, they're just rolling out stores. they're not morphing into anything new. they say they're doing -- they've got technology, they say they're doing innovation, but i might be the number one person in the world to understand that. and i don't see it anywhere. >> it comes on a day where nike gets two downgrades. >> under armour had their issues with sports authority. and lulu, the interesting thing over the last couple of weeks, look how well that stock's been trading. look how it traded today. i actually think this management team is getting this thing done in a very difficult environment. we know leisure is getting more competitive. it's an under armour, adidas, a
pe of 26, not overly ridiculous. look at the revenue growth from $1.3 billion to over $2 billion. i see a company that is making a transition from somebody, maybe the gentleman we were just hearing, who actually did many things that hurt that stock, and hurt that company over time. and they've had to fix that, and in the process, they're fixing it and they are getting more innovative. it's just not for women anymore, they're moving towards men and children, getting the next generation. i think lulu is doing a lot of the right things right now in a particular environment. >> you read the letter. >> i read the letter. there was one line that i really appreciated. he was comparing the underperformance of lulu to both under armour and nike. lulu stock dropped in the same period. in the midst of the greatest change in the way people have dressed in the history of the world. >> hmm. >> when they moved from loin
cloth to pelts to fur, it was -- leisure, i mean, that's -- >> i recently made that change. >> no doubt. no doubt. >> here's the thing. so he talks about getting the board to destagger. and many delaware corporations, and most, the overwhelming majority are destaggering. and they should do that. i wondered, why didn't he just put up nominees? >> exactly. >> because i think if someone knows this for certain, i would love to hear it, he couldn't. it was a standstill, i believe. >> oh, i see. >> now he may be able to do that in the future. >> right. >> i also wondered if he was going to make a bid for the whole thing. i don't think that's going to happen. >> yeah. >> on june 8th, i'm in the camp 32% short interest. i think what's going to happen here is you're going to have people continue to cover shorts into the earnings release.
how do you trade it? i think you stay long in earnings and take a shot either way. i think it's fair. i think now the path of least resistance is higher. i'd really love to know how the kulats are. >> oh, come on. >> no, sure -- >> like shorts and pants that have wide legs. >> more like a grasso type of thing. >> it looks like a skirt, because it's so full. >> thank you. now i learned something. >> you always learn something. take a look at michael kors. setting a double-digit rise in sales. the company warning that increased spending will chip away at its bottom line this year. karen, there could be a little war brewing between it and department stores. >> it was interesting, the stock had been crushed over the last couple of months, on all these things, and yet still it matters to perform.
outstanding quarter. they did a tremendous job. but they did point out, if department stores are going to be promotional and they have to be to drive traffic, because mall traffic is down, that kors is not going to allow their brand to be damaged by being too promotional. >> meaning they'll pull their stuff from the stores? >> not all. but they will allocate, i guess, is a better word. and that is sort of important. so the mix will over time be more kors in retail, and online. and the balance of power is shifting a little bit. they took great pains to say we value our department store partners. however, we're not going to allow them to do that. we saw some rumblings between nordstrom's and kors that seems to be overdone. but that's a shift. >> that seems like bad news for the department stores then. >> it could be bad news. but retail traded pretty well. xrt, look at some of the names in that, that traded pretty
well. so if people are no longer buying cars, and you think they're going to buy stuff, like kulats, i would say -- at least you have a good risk/reward. you could have your kulats and jeep -- >> i have them already, i just didn't know what they were called. just saying. my whole weekend -- >> bank of america on our show yesterday. summer swoon lurking around the corner. we've got the three stocks that according to history always perform well in the month of june. we'll give you the names. you're watching "fast money." in the meantime, here's what else is coming up on fast. >> to be or not to be. >> more like to freeze or not to freeze. that's the real question. and now that crude oil is hovering right below 50 bucks, we'll tell you whether there's any chance opec will freeze production at tomorrow's key meeting.
plus -- that pretty much sums up what's been happening to biotech stocks in the path month. but has the space come too far too fast? we'll tell you why some traders are betting on a breakdown right around the corner. much more "fast money" after this. you recommend synthetic over cedar? "super food"? is that a real thing? it's a great school, but is it the right the one for her? is this really any better than the one you got last year? if we consolidate suppliers what's the savings there? so should we go with the 467 horsepower? or is a 423 enough? good question. you ask a lot of good questions... i think we should move you into our new fund. ok. sure. but are you asking enough about how your wealth is managed? wealth management, at charles schwab. plumping surface cells for a dramatic transformation without the need for fillers. your concert tee might show your age... your skin never will.
welcome back to "fast money." bank of america calling for a summer swoon as june rate hike expectations jump. if we see a june swoon, there are a few names that always buck the downtrend. paul is here with your best bets. paul, you've been taking a look since 2009. you've got three stocks. >> yes. june is historically a weak month for equities. there aren't a lot of big winners. the only stock in the s&p 500
that has gained more than 5% is facebook, and it's only been around for four years. it's been up every year the month of june. average run about 5.7%. the next stock interestingly is amazon. which is up 53% since its february low. average gain of about 3.9%. one down year. what's interesting, facebook and amazon are neck and neck in market cap for the sixth largest company in the world, in the u.s., which i found surprising. and the third one was just in the news yesterday, allergen, averaged a gain of 3.7%, down in 2010, and 2015. but when you look at the intramonth pattern in the month of june, using intraday data, we can create a composite, and it starts out flat. usually peaks right at options expiration. the following week you see a peak-to-trough decline of 2%. this year i think with brexit,
june 23rd, you can see some jitters coming into that vote around options expiration. if we don't have the brexit, if they don't vote to leave, you could have a relief rally toward the end of the month. >> is that what you're seeing in terms of the volatility out there? >> i would think so. it's been so low for so long, that it's absolutely incredible. it's interesting that you bring up the options expiration aspect. suddenly the protection that people have on, they're a little bit late and lax in terms of putting it out there again. i don't know that i would pick names like facebook or amazon just based upon june. but you certainly have to look at some of these names. and you heard what was said the other day, there are a lot of reasons why even with that valuation, look at amazon and say, wow, they seem to be doing everything right. facebook seems to have the right guys. zuckerberg doing everything right. those are great companies. i understand why they would react in june as they have. >> amazon fresh all-time high.
i would be shocked if none of you thought it sounded like the speech of a ceo sitting at a company whose stock price may be topping. he was full of such confidence and grand plans. >> but he's always -- every time i've heard him speak, which is often, he sounds like this. maybe it's just linking the stock price with his euphoria, or maybe it was the way he was speaking. but it didn't seem any different than he typically sounds to me. the stock has been resilient as can be. we went to 720 last earnings period, and completely failed. that stock traded $500 within a month. makes you wonder if there's another leg. i'll say this quickly. out of all those names pete mentioned a couple of weeks ago, allergen, report in july. 14 times forward earnings. i know carl got into the name. never thought it would get through 220 on the down side but
it's still cheap here. >> paul, before you go, worst performers in june since '09. >> oracle is the worst performer, decline of 4%. philip morris international. you have jpmorgan. and then the fourth worst is actually philip morris and altria. these different dents, safety stocks tend to see some weakness during this period. you see that in other names as you go up the list of worst performers. >> i wonder if you have -- if you put together what you were saying about the jitters the end of june and weakness in some of the safety stocks, or had been safety -- >> i would not want to be in facebook if we get june swoon. the reason why is look back what happened in february. these are such crowded trades right now. it has nothing to do with the company, it's just these are things people want to sell because they can sell them. if you're afraid of what's going on in the market, don't buy facebook or amazon. there's other places to be. >> paul, thank you. up next, will they or won't they announce a production
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welcome back to "fast money." here's what's coming up in the second have of the show. facebook's coo spoke moments ago. what's got everybody talking. the one sector that could be in for major trouble ahead. we've got all the details later. but first, crude oil closing off the lows the day before the highly anticipated opec meeting. the issue, of course, whether to freeze production. here's the results from the oil survey and what to expect. hey, jackie. >> good evening to you, melissa. a day away from the highly anticipated opec meeting. to freeze or not to freeze. well, the 22 analysts, traders
and major fund investors we polled see no deal in sight. and remember, no freeze sounds like an shock, but actually that inaction could send prices lower. there are a lot of voices weighing in. today venezuela said there's a de facto freeze in place already, because non-opec production has dropped. there was a rebalance and it's been constructive. and today some rumblings about imme meanting some sort of ceiling. the central issue within opec remains the same. the standoff between the saudis and iranians. they can't agree. almost everybody that we polled thinks this stalemate is going to continue at tomorrow's meeting. remember, there's other factors impacting the crude trade as well over the next few weeks. oversupply is still the main factor. geopolitics is important. demand is keeping prices supported right now. even though some believe the prices will fall, more than half
of our survey think that crude will close the year right where we are now, between $40 and $50 a barrel. >> jackie, thank you. what are the best ways to play oil with opec on deck tomorrow? paul, great to have you with us. let's get your quick thoughts on opec. if they weren't going to make a cut, or freeze, when oil was half of where it is now, why would they do that now? >> jackie nailed it, it's a question of the saudis. the saudis are looking internally at their own issues in terms of energy policy and finance. we had the amazing revelation that the saudis were burning $30 billion a month as a government last year. so they're clearly under pressure to try and get prices higher if they can. but as jackie said, the issue is, they don't really want to agree with iran. it will be interesting meeting. we've got the saudi minister to hear from. and what the iranians are going to say. we have to expect there's no
change. if there's no change, it's hard to be bullish. >> let's assume no change. >> right. >> you say stick with the refiners. why? >> i just say that basically recently we've seen when it's widely expected, the actual news is taken bearishly. it seems like people are kind of selling the rumor, selling the news almost in oil for the past couple of years. in terms of refining, the demand is great. typically what we would be looking for is good demand is good refining margins. given the really remarkable strength of demand in the u.s. right now. having said that, if we're right, the oil's going to trade off particularly if the fed is talking down the dollar, talking up the dollar, we could see lower crude prices meeting strong de planned and getting a good driving season here. >> let me go back to the expectations for a minute. i would think they're very, very low for anything really dramatic.
or even not so dramatic. >> right. >> any movement. >> yeah. >> do you think even in that scenario? >> you know, the issue is that it's emotional. it's religious. this is an issue between iran, the shias and the saudis. there's no way of seeing them coming to an agreement. we have an interesting situation where people don't think anything's going to happen. for example, a freeze could be taken bullishly if saudi was to commit. typically their production would be rising in summer. if they were to freeze, it would be less export and less pressure on the markets. it would be a very big deal if we could get a freeze. >> i've seen a lot of analysis of the costs between iran and saudi arabia. some are saying it's as low as $10 a barrel. if saudi and iran are really in a price war, what's stopping the price of oil from going down to that lowest cost? >> that's the bottom end of the cost.
what's the most expensive oil, that would be something like a u.s. unconventional player closer to $50. the u.s. companies that provided the growth that balanced the market over the past four years, are now basically many of them going bankrupt, that's what's setting the price. as long as demand stays up. if demand starts falling, we move further and further down the cost curve. if you really believe in tesla and the end of the oil age which we've been talking about for ten years, now the saudis are talking about it, you get worried that the long-term value of oil is lower. >> on the refiners, which one? >> the coastal ones right now. obviously if you've got a lot of opec crude coming out, you guys on the coast running the complex refineries. that would be va lero, a pbf, if you want real juice. anything coastal. maritime petroleum. >> paul, thank you.
>> 5% yesterday, 5% today to the up side. people are protecting themselves ahead of this meeting. it leads me to believe maybe february 11th, when the uae started talking. they're talking again, maybe they're marking the high. i think that's what paul is saying. i think crude sells off from here. >> i think the best place to be has been the mlps. it started back in late december, and then into february, started positioning in there. i saw the most recent from david and some of the additions he put in himself, into williams and some of the huge buys. 11 million shares of both those two names, just this last quarter. i like that space a lot right now. i'm in kmi, amj. there are places to be there. if gdp the second half of the year is not terrible, i think that will go well. >> if oil goes down, the contracts of these mlps can be canceled. so you might be getting this
high yield. you've got to really watch oil if you're trading them, right? >> some of them have cut. and i think what you're seeing is, the fluctuations of oil. it's more of a demand rather than the actual price that's pushing it around by some of the glut we're seeing right now. >> values in the oil space, karen. >> i think you have to have, i guess, guessing where oil is going. still, the big names, i think you get upside. >> still ahead, facebook's coo looking whether she's making the jump to disney. her comments right after the break. plus, biotech stocks have been on fire. can the good times really last. we'll tell you what one trader is saying, no way, later this hour.
welcome back to "fast money." facebook's coo cheryl sandberg speaking at the code conference and to our own julia boorstin. she's got the details. julia? >> reporter: hey, melissa. cheryl sandberg weighing in on the controversy surrounding the alleged bias in how facebook puts together the trending topics in users' newsfeeds. they say they take concerns
about the bias seriously and are committed to having an open platform. sandberg also talked about the explosion in popularity of facebook live videos, explaining how that can translate to higher revenue for the social network. >> it's really exciting what's happening with video. what you see as people share more, there's increasing visualization. there were texts, then photos now videos. there's something about the live video platform. that's good for our business as well. >> reporter: sandberg reassured investors while on stage here that she plans to be at the company for the long haul. >> did you want to be the ceo of disney? >> i love my job. >> you don't want another job? >> i don't. >> and you're not run -- >> i don't want to run for office. i love facebook. and my team.
>> reporter: find more from my interview with sandberg on cnbc.com. >> did you believe her, julia? >> reporter: in terms of the disney question? >> yeah. >> reporter: i think it was pretty compelling. i mean, look, obviously it would be an interesting candidate for the disney world. at the same time she doesn't have the kind of content experience that i think a lot of disney shareholders would want. i think what she's building at facebook is pretty phenomenal. look how facebook has grown and changed over the last couple of years with the acquisition of companies, and what they've built with messenger. i think she has big potential there as well. >> i wish the question were asked, do you want to be a ceo. because i think that would be -- >> reporter: i actually asked her that question. when we were doing our interview on "closing bell." i said she's been such a great role model, do you think she would be a better role model in the ceo position rather than coo
position. she responded pretty much the same way, how she loves her job. she's kind of punted. >> julia, thank you. great interview. julia boorstin. coming from the code conference. karen, you think she would make a great ceo for disney. >> i do. it's difficult for them to find exactly the right successor. i think she would be a great ceo. and she's relatively young. the path for her to become ceo of facebook is obviously blocked. he's doing a great job. >> and he's even younger. >> he's even younger. you know, i think -- i would be happy for disney if they were to get her. >> as a facebook shareholder -- >> you also do have to wonder, because is disney the same type of company that facebook is. i mean, facebook has done a magnificent job. they started off with facebook and then done all these great acquisitio acquisitions. getting themselves in the vr. look at messenger, and what
they've done. they have been building it that way. is that the disney way? i don't know if it is or not. i know they've made buys over time, marvel and some of those. but i don't know. >> listen, she's clearly a talented individual. but i think to pete's point is that it's a very different company. if you're going to go into disney, that is more of a ceo role, i call it a stayed ceo role, where at facebook you're at the cutting edge of technology and content development and everything else. i think she's clearly great at facebook. but i don't know if it's exactly the -- i wouldn't be that excited if i was a disney shareholder. >> some would argue that that's who you want, thinking of content in different ways. look what she's done with facebook video, think out of the box. >> i'm not suggesting disney is broken, far from it, but it's stuck at this 15 multiple. the industry suggests that's
probably where it's going to be for a period of time. maybe you need somebody like that that can think differently from bob iger. if bob iger calls her up and says, you're ceo of disney, she takes the job. that's not necessarily a bad thing. >> let's get to seema mody in the newsroom. >> uber receiving a $3.5 billion investment from saudi arabia's public investment fund. the investment is part of an existing funding route. keeping the valuation at $52.5 billion, and does not cash out any existing investors. now, as part of the deal, a managing director at the fund will get a seat on uber's board. >> seema mody, thank you. $62.5 billion valuation, pete na jer yan. >> i'm just trying to figure out different ways, i know it's not a comparable. to put uber at that valuation is staggering. >> you want to talk about the long-term threat to gm, it's
uber. there's plenty of wall street analysts that talked about ride sharing is going to cut car production in half over the next five to ten years. this is a staggering amount. i believe it's the largest single investment in a private company ever made. you might want to check the facts, but pretty close to that. and it's being done by a country that has made a living off of fueling cars. >> i have a question, though. i'm not an expert in cars at all, as everybody knows. >> agreed. >> everybody knows that. but in terms of the number of -- theoretically, if you don't own your individual car and take uber, that mileage you would have gone gets transferred to that one car, don't you still need to replace the car at a higher rate? therefore, you'll go through cars more -- >> but you have idle cars. pete's got, what, 16, 17 cars over there at his house? you have idle cars that people have bought. >> but you might not have an
idle car anymore. >> exactly. >> as a former lift driver, what do you take -- >> i did really well that day in hoboken as a lift driver. look at that. look at that. look at that hat, gloves. >> you wear that hat on the drive home, right? >> of course i do. listen, the shared economy is not going away. it works for a lot of people. to answer your question, it's just going to eliminate joyriding. that stuff is going away. people are going from point a to point b and back to point a. there's no g, f, g, h anymore. that answers your question. those miles are going away, in my opinion. >> i don't believe every car is used to capacity. so even though miles driven on those particular cars, maybe, but that was -- you're a good driver. >> excellent. i got it home safely.
>> a threat to hertz and -- >> that's it. >> still ahead, biotech is up 20% in the past few weeks. plus, check out shares of box. they are sinking after hours. we'll hear the latest from the ceo right after the break. you pay your car insurance premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. there's no limit to how much you can earn and this savings applies to every vehicle on your policy. call
only with xfinity. welcome back to "fast money." earnings alert on box. let's get to josh lipton monitoring the call out in san francisco. josh? >> well, melissa, box heading into the print and surge about 40% since that low in february. but now selling off in the after-hours. and the pain point there was billings, which came in lighter than analysts expected. on the call, box's ceo talking about billings. take a listen. >> q-1 billings came in at $26 million. as we noted in our last earnings call, we anticipated q-1 billings to be impacted by a few earlier renewals last quarter and our focus on annual payment duration. lastly, as we're becoming a more strategic investment for our customers, larger transactions are shifting to later in the year. >> you can hear him explaining
the billings, saying we were lapping tough comps here. but it looks like at least some investors skeptical of that in the after-hours. one of the number to point out, box added about 5,000 customers in q-1, lev ishlie saying box h million users. we should also mention sam chilles, box's spp of engineering, reporting he's heading to google. another sign of how that company is getting more serious about the enterprise. guys, back to you. >> josh lipton, thank you. guy, i go to you for box. >> you've got to crush it. given the run that the stock has bounced significantly. you have to have a great quarter to have any more follow-through op the upside. i think margins are still in the negative area. it tells you that the 25% short interest will lean into this thing again. i don't know if it gets back to february levels. i think it's going to get close. >> if you want to play in the
space, who's killing it more than the sales force and the buy they made today. they probably overpaid. ecommerce, great place for them to position in right now. i love what they're doing right now. >> not box? >> not box. >> big month for biotech. one trader thinks the run-up may be coming to an end. here's the details. hey, mike. >> hey, mel. we saw a lot of activity in xpi, the biotech etf which traded a little over 2.6 times its daily average put volume today. it looked like a very large, interesting hedge trade. basically what traded was something called a ratio put for caller. somebody bought 5,000 of the july 56 puts in xpi, and sold 2,500 of the 62 strike calls at the same expiration and 2,500 of the put. basically bought protection if it falls below 56 bucks.
what's interesting, you take a look and right now, after that 20% run, we're getting right up basically to the april highs, that lower put that they sold, takes you right down to the early mid-may lows. a very creative and interesting hedge after a big run. >> where are you on biotech? >> nowhere. >> you're out? >> i'm out. it's too difficult. i do think, we saw yesterday that big deal. we'll see others. some of those babies thrown out with the bath water. >> not enough to make you optimistic about the space? >> no. >> sell until the election, until you have clarity over what they're going to be able to price at. i think they're a sell. >> you like the big -- >> i don't think they're a sell. there we disagree. but i also do understand what you're talking about politically. i think that pressure's going to be there for a while. they've made a pretty nice bounce back off of some of the lows. there are names in the space that obviously work. my favorite name, most conservative name, amgen.
>> i agree with amgen. what we spoke about a couple of weeks from pfizer, i think on the 17th, doing something crazy in the after-hours. ibb needs to get above 285, and hold. when it does, then we'll talk again. >> thanks to mike out in austin with the "options action." check out the full show 5:30 eastern time on friday. coming up tonight, cramer is getting an inside read on cybersecurity and the war for profits from the ceo of palo alto networks. all that, and much more, top of the hour on "mad money." in the meantime, we've got the "final trade" coming up. here at td ameritrade, they work hard. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday.
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thal to the next level. >> next level. >> that being said, pandora is my trade. a little option activity, a nice month, i think it's going higher. i'm in for the ride. >> karen finerman? >> we talked about it some, but i want to talk about it a little more. michael kors. i think it's actually better to own today, up 7 or 8 or whatever it was, than it was yesterday when you didn't know what the earnings are. and you know the company which has been extremely aggressive out there buying back stock. they think it's a good deal here. they've been very, very aggressive. we know they're going to be out there. i like the valuation here. it's the rodney dangerfield of the luxury space. no respect. and they should get respect. >> well, for me, it's fcx and copper. i think you sell this. take profits, short it. if copper breaks from $2, this company will be in trouble. katy bar the door.
>> i wonder where that came from. >> now people say, lululemon reports in a week or so. i don't want to be short. pete's wearing them. own the stock. >> see you back 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 cramerica. other people want to make friends. i want to make you some money. my job is not just to entertain but to educate and teach you. follow the customer. that's what this market is all about today. yet following the customer seems ke