tv Fast Money CNBC June 20, 2018 5:00pm-6:00pm EDT
there. diana, thank you for joining us. diana olick. just so you know, hp ink c.e getting a little bit of a pop. the company higher on a stock buyback. just keeping an eye on that one. thanks for tuning into "closing bell," everybody "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's time square, i'm melissa lee. tonight on "fast," bitcoin showing signs of life despite a cryptoclash. founder of light coin will be here to see why the crypto-universe is about to moon plus the bid and who will the loser buy instead. the traders play a special game of match maker we start off with fang gone wild these stocks are out of control.
as the nasdaq closes as a record high, hitting fresh all time highs today. facebook, amazon, google all up double digits in the last month. we thought it'd be perfect time to play a game here. we like games, right kick it off at the top trade it or fade it fang style pete, we'll kick it off with you and facebook trade it or fade it. he's over there -- >> there was music and guy was dancing. we didn't show it because you can't unsee things >> stop, stop. >> it's like the gopher. >> from caddy? >> yeah. >> i'm going to say trade it the reason i say trade it. i like facebook already. you look at the forward pe on the stock, it started trading at a 21 all it's done is gone up, up up i think there are a lot of different things if you go back to the last earnings they crushed it once again which they always seem to do
you look at the ad revenue, what they're doing there. today they had another announcement they're going right after youtube. remember we talked about snap long ago tried to buy snap. didn't work ut did he do, mark zuckerberg create instagram they buy instagram and they have exploded with that now instagram is going to go to the video side and go head-to-head with youtube. that's going to be huge. this stock is still cheap. >> they had a billion users on instagram. >> everything pete said is spot on 100%. full disclosure, when it was trading $155 after the cambridge analytica thing, i thought it was going to flounder for awhile not go lower clearly the last 30%, that's what it's up you have to ask yourself did a move of this magnitude over this period of time is it justified valuation? absolutely that's been the argument for facebook forever but i still think there's got to be headline risk into the next quarter. >> what is that? fade it or trade it? >> oh, i'm playing a game now?
i didn't know. >> yeah. >> i would say fade it but, but, but. i said fade it awhile ago too. i've been wrong. >> i wanted to be clear about it karen, what do you think about facebook >> i agree with everything said. i'm trading it from the day before zuckerberg was on the hill, that next morning it was off to the races. then we had that huge earnings number i don't see how -- i mean, to me even though it's moved a lot, the valuation is not crazy the growth is extraordinary. i think you continue to own it so that's trade it >> next stock, amazon. dan nathan, trade it or fade it? >> listen, at the end of the day here's a stock that's been to how many new highs in the last year it's up almost 100% over the last two years every time you say fade it you've been wrong here
but to me i just don't buy stocks on runaway breakouts like this i think this goes for facebook too. there's just unusually positive sentiment in all of these names right now. i've never seen anything like it in 20 years in the business. you could have said that in recent years google is up 20% i've just never seen anything like it. we have technician after technician come on and tell us that these five stocks or four stocks whatever they are, they make up $4 trillion of market cap are equal to the bottom 250 of the s&p that have done nothing. we're just saying trade it so to me at some point, chicken's going to come home to roost. when you have guys like paul tudor jones say we're going to melt up at the end of the year, i don't know how you wouldn't expect all of these fang stocks to melt up with it i'm a reluctant fade it. >> a reluctant fade it >> all of that -- >> to get to fade it >> what do you want from me? i don't know. >> that's a good question.
they go higher every day and for a lot of market participants they are looking for some sort of growth and they think fang is idiosyncratic growth it keeps going higher and higher at what point do you pull the rip cord or do you just go with the market >> if you're asking for what would i be looking for for the reason to pull the rip cord, it would be a move to the upside on ridiculous amount of volume. four to six times volume on a day the market goes up marginally maybe that could be the blow off top. we haven't seen that though. >> what i would be looking for would be to see amazon finally start to see a little bit more of a dent in the aws from microsoft, from all the different competitors who have a piece of that pie. right now it's amazon. >> the erms of growth? >> yeah. they've already -- that's already started to decelerate some of that growth. i'm talking about market share >> so positive on a market right now.
people could start to focus and say you know what percentage of e-commerce is of the total retail sales in the u.s. >> but they don't make money on e-commerce. >> who cares >> that's a big deal >> i understand. but as the pie gets bigger, you could make the argument they're still going to have high 20s gross margin on this business that's going to be decelerating growth you expect it to decelerate at some point but they're going to continue to grow tons of share in the retail space. that's the flip side of this too. you're going to have this go back and forth no matter what. it's going to take a change in market sentiment it's going to take a meaningful recession in a pullback in the market for people to give up these stocks it's that simple >> yeah, well, i just know of all the stocks in the fang, that scares me the most by far and the reason i say that is you look at it on a -- >> would you fade it or reluctantly trade it >> reluctantly fade it what guy did with facebook when he got to the point.
>> the game confusing as we know because trade it means you buy it >> you're buying it. exactly. you're trading you put the trade on or you're fading meaning selling it. okay, guys i get it you don't like this game we're stimgoing to play it netflix is the next. >> trade it. see, i answer the question first. trade it put the banner up, boom. hold on now they're messing with me they did it just to mess with me thank you. what has david faber been covering so well over the last couple weeks >> the media mergers >> do you think it's coincide e coincidence? i don't believe it's coincidence. they've gone up $40 since this whole thing. why is that? i think the reason why everybody wants these fox assets is because they want to get a piece of -- they want a controlling piece of hulu and compete with netflix. they can't do it reed hastings has done such a great job, he's got a five-year head start i think they continue to go.
once again trade it. >> they've got global content and improving in their margins and have incredible cash flows but this one shows you all the things you would like to see on a stock that's going higher. amazon's still -- >> can i ask this question on netflix one of the knocks on this disney acquisition of time warner -- of fox, sorry. they're going to spend $3 billion or $4 billion on original content when we know netflix has already told us they're going to spend $8 billion this year and that only goes up every year and that's one of the reasons to be negative on that acquisition no, this was the at&t/time warner deals that was the big criticism. one of the reasons at&t was downgraded afterwards. if you're telling me the company that burns cash they way they do that they'll be able to compete when all this is said and done, i don't know if you fade it right now. at some point, you know, this thing can't go on. >> you don't fade it last tuesday whenever i did for like
a day. just like walking into a buzz saw just covered i think goldman put out a 490 zillion dollar price target or something. i wouldn't get in the way of that >> you got to wonder if netflix is the one trying to defend its position, do you want to be the one defending the position >> i don't even know if they're defending. i think they dominate. if you're saying amazon dominates and we know they do, i think netflix dominates. they have twice the watching hours of amazon or its competition. >> trading it, fading it >> absolutely trading it >> come on double ding. >> for you too >> i started the whole thing >> all right last but not least google karen. >> i trade it. i'm long it. i think it's had a very nice run. they had an all-time high today. i guess it was on the instagram -- >> again with the wrong -- look, they messed it up. >> i said trade it trade it they don't even know the game.
i own it that means i'm long it >> they don't know what they're doing in the control they yell at us because we play the game wrong and they're sitting back and yelling at each other putting up the wrong thing. >> i think you're confusing them >> i'm confusing them? >> the last time alphabet traded 1200 it failed and went straight to a thousand over the next month and a half it got back to that, filled in that gap this is the one people feel like it's got the great valuation support. over a billion users, that sort of thing again, it's the cheapest one of all of them. >> the valuation is not at all crazy. >> i didn't say it was you already had your turn. i'm just saying. >> this is my turn >> oh. >> she looked at me. >> you looked like you wanted to say something. >> yes >> okay. i think it is breaking out, yes. >> that's what i just said it fell to the prior high. >> no, it went through the prior high. >> but it closed on the low today. closes on the high for prior
high three months ago, that's one of the worth setups. >> i am staying long. >> so you're fading ityou thinke no bonus round, traders bonus round. >> snowe jus brothers, there's a built run. >> i don't know what you're talking about. >> trade it or fade it >> i trade it because i own calls in twitter i got out of square, thought i'd hit the top but i didn't i flipped into the other stock i went into twitter. >> dan >> i just -- i said this about snap the other day when you look at market cap of these properties, there's few social properties that have the monthly and daily activity that twitter and snap have. i think they're too cheap. i don't mean on a valuation business just for somebody that wanted to acquire an asset with the users on a basis i'm trading it >> you got the hang of the game. and now we're at the end of it coming up, check out shares
of micron. now higher on strong guidance. we'll tell you what it means for the chip rally plus the founder of litecoin said something just happened to prop propel crypto to the moon. and later on, rich greenfield says he knows who's going to win the bidding war. oh, really, rich e ve fm w we'rlironeyork city. much more "fast money" after this hey, want the fastest internet?
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welcome back to "fast money. mai kron seei micron seeing a boost >> shares of the semiconductor company are up just under 3% but the stock has been on a tear this year. shares were initially down after the earnings report first crossed. but they flipped on the company's guidance q4 revenues of $8 billion to $8.4 billion versus analyst expectations of $8.07 billion. and the chip maker also forecast at $3.30 plus or minus 7 cents versus analyst expectations of 3.22 zl here's the company's cfo on the phone talking about the guidance >> we are executing well on our strategy we therefore expect growth again in the fourth quarter. we expect revenue to be in the range of $8.4 billion.
gross margins to be in the range of 59% to 62%. operating expenses are expected to be $750 million plus or minus $25 million. and based on a share count of 1.2 billion shares, these results should drive eup >> the company stock has been on a tear this year with up more than 90% year over year. it's been driven by higher prices for their products. while some analysts have questioned whether those prices will continue to stay high along with demand. the company's ceo believes demand will stay high boosted by trends along with cloud competing companies building out their i.t. infrastructure. they were really listening closely on that guidance >> all right aditi, thank you pete, you're long this name. >> yeah. you know what? music to my ears, quite frankly. early on we saw the stock dip towards 58 and we see this rally
back you look at the stock no matter what you say it's an inexpensive stock. but it comes down to guidance. what do things look like going forward in that guidance looked fantastic to me. when you look at a stock that's trading $60, it trades about seven times pe right now you look at what their cash flows are. this is really strong. and i think that demand according to what they're saying, their cfo and others, this demand they expect to last for a few years. if that's the case, how can they look out that far, i know. but i think the stock is still way undervalued. i still think there's plenty of upside. >> do we extrapolate this or what pocket do yes we extrapolate? >> may 31st morgan stanley downgrades we had a conversation. but they left the price target at 65 bucks. the stock sold off significantly that day you look a month or so ago they announced a $10 billion share repurchase micron. which is a significant portion of their market cap. they wouldn't be putting their money where their mouth is like they are so i think they've sort of
changed their business model a little bit and i'm with pete i think although historically low valuation might be reason to buy it in today's world i think it is >> good for all the chip i'm for intel. i guess we don't have earnings for a little while for those but this is pretty impressive, i've got to say. and that pe is enticing. >> it's not enticing >> oh. >> didn't even let me finish the sentence okay. >> it's not enticing it's never traded at a double digit pe it never has it's the most cyclical number in the pc and smartphone supply chain. listen that guidance wasn't dramatically above expectations. the guided gross margins are exactly where consensus was. the eps beat fine. it's in the middle of the range. here's the thing you think about heading into the fall. you know, is there a lot of double ordering for memory we know the supply has been tight at different stages when
we've seen iphone upgrades apple is almost a 10% customer i don't think this is like a pound the table trade it. >> but that's a very limited exposure we talk about it in a positive way as well, so i get it we could flip it around and say they feed in but it's really the data center. right? don't you agree. >> i think you have going here with the trade in late march when they reported, they had a good quarter and guidance and then it ended up going down about 25% over the next month and a half now we've come all the way back to this level. the fact we're seeing little volatility up or down. it's good. it's at the prior highs here it seems like people are more inclined to buy it in the second half of the year so the fact that it's not trading down 5%, 6%, 7% ought to be on a raise. i don't know if it's as much of a raise. probably fine for you guys. >> he's fading it. >> can i say one thing though? >> last word >> we're at like five or six not ten. that's a huge difference >> okay. so you remember when the stock
went to 40 and every hedge fund was buying the crap out of it five years ago, four years and then it lost 80% of the value and was trading at the highs at a high single digits pe. you know where the pe went when it went all the way down to the mid-single digits. now it's back up to seven. so the stock can move around down 70, up 100% who cares. >> i think the 10 billion -- in my opinion, i know we're going to commercial. we're almost on cramer's show. but the buybacks suggest it wasn't as cyclical five years ago. coming up, big companies -- rich greenfield says he knows how it will play out i'm melissa lee. you're watching "fast money" on cnbc here's what else is coming up on "fast money. >> there have been four quarters that you have been presiding over on three of those four quarters, you have cut your forecast you're from juniper. you understand technology. you know this isn't right.
how could you be out three out of four cutting your forecast? kevin, you would be furious at yourself i don't hear you even being upset. ♪ i'm sorry ♪ so sorry >> it was the interview that took down starbucks shares but one of the traders says investors should be buying, not selling. and you won't believe how high he sees it going plus, the founder of litecoin, charlie lee, says something just happened that's about to send crypto to the moon athaishel be here to tell us wh tt wn "fast money" returns.
and urge them to carry on. and you can see why. this bidding war between disney and comcast has generated an additional $20 billion for fox shareholders and it may not be done yet this morning disney announced a higher offer for much of 21st century fox valued at $38 a share opposed to disney's prior $28 all stock bid. this one allows investors to choose between cash or stock, an overall mix that disney is expecting will be about 50/50 cash and stock in a statement today, fox said they believe the disney offer to be, quote, superior to the one made by comcast on june 13th that proposal was worth about $35 per share in cash. now, both comcast and disney are seeking to acquire most of 21st century fox including cable networks like fx and the regional sports networks comcast declined to comment on disney's new offer but the structure of the deal that disney unveiled this
morning actually surprised many investors i spoke with both in the price and the addition of a so-called collar on the stock consideration. this essentially helped disney keep the $38 a share price tag by using options as the stock price fluctuates before the close. >> thank you leslie picker from the newsroom. as a multiple rounds of bidding continue for fox, we thought we'd play match maker with our traders. there's a twist this time. you have to listen carefully because i know you're challenged when it comes to the game department each of our traders will pick who they think will win the fox deal, disney or comcast. and then decide who would make the perfect match with the other company. clear? clear? >> i think so. >> you can observe how it's played pete will begin. >> if i do it right. who will win fox >> disney's going to win i think disney's going to win. the deal wants to get done with disney for a variety of reasons. i think part of it is the
legacy i think that's why disney's going to win it's going to get very close and i'm sure we're going to hear back and comcast is going to have a raise but disney wins out. i think netflix is too expensive. i think viacom is too complicated. for me it's match. they get lionsgate and different thing. i think it's a great match i can can do a heck of a tevia >> we've had michael burns on many times >> think about where lionsgate was seven or eight years ago we had mr. icahn going after them every day in the media. michael burns stuck to his guns. now it's a stock that pete najarian is talking about being taken over by potentially comcast. so i'm with you 100% i'm not going to give away the ghost here, as they say. but i'm with pedro 100%.
>> karen, it's your turn who wins >> who wins, i think disney wins also the regulatory head start is meaningful the cash/stock element is -- the stock part is enticing to rupert from a tax standpoint. the cash for shareholders who want ka cash comcast doesn't want to issue their shares at this level makes me think disis comfortable issuing their shares at this level. doesn't tell me what they think about disney stock however, i think they win. so where does that leave comcast? i actually think instead of looking at this kind of content like a cbs or lions jb gate. activision going for the game i think activision would be a better fit for disney, but trying to be a good player of this game, i think activision would be a good acquisition. >> a number of analysts said getting into the video game space would make a lot of sense. especially with the legalization
of sports betting. it opens up a whole other stream >> we've all talked about it a lot. look at electronic arts with the $45 billion market cap that would be a great fit for disney when you think about the sports and other franchises they have between "star wars" and battle front that's a deal that would have to be done at $60 billion then we're talking about these media companies that have sales that are 5x of what an ea has. it makes sense in a perfect world. doesn't seem that likely at the end of the day >> dan, it's your turn now. >> i'm just going to be quick. i agree with disney for the exact reasons you said i think the shares, you know, the stock versus cash for the murdochs i also think the regulatory head start. this seems to be the narrative and we're probably all going to be wrong comcast is going to do something. and the other thing i would say is that i would not think about disney and fox what comcast has to do. i would almost think about what at&t andti time warner have jou
done a merger of equals possibly with ver riess sizon and going a aft. >> so doubling down on what they already have >> well, it's a different distribution at&t could have made that same argument and that was a deal they hotly pursued for a whole host of reasons and got it done. so who is at&t's biggest rival it's been verizon. i'm sure they can't think randall stephenson has his you know what up there >> i'm not quite certain what. we didn't rehearse this. you can tell we don't rehearse a lot of things. it's pretty clear. but i'm with pete. disney wins. disney needs these assets more than comcast does. i think we've seen that for awhile i also think this is going north of $80 billion comcast will come back their game all along is to get disney to pay up
with that said, lions gate we didn't rehearse this thing. it's not the deal nearly of the magnitude, but it's a nice deal that probably makes sense. >> do you think there's a lot of tuck ins that would happen >> that would make more sense to me, don't you think? than these huge monstrous giants >> history has shown they actually don't work. >> wait a second that's not always true >> big media match -- >> the big ones don't work >> tuck ins work really well >> oh, i didn't know -- i thought you were making fun of me again i'm always on the defensive with you. >> i know. okay our next guest disagrees with the traders on the desk and believes that comcast will win the ban the battle for fox it's always great to speak with you. why do you think comcast is going to win >> first of all, i think there's this recurring theme that disney has to have these assets if it wants to catch netflix that's a little hard to understand when you consider the
fact that netflix hasn't bought a studio, netflix hasn't bought international satellite distribution there's just this narrative that's been created that disney kind of has to have this in order to flourish in the future. disney already makes great content. i think the challenge for comcast is they are vertical integrated media company in the u.s. they're trying to replicate that vertical integration around the world. i can't figure out what other asset. i think your traders were struggling as you pose this issue. there's nothing that looks like this especially when you think about comcast is well positioned in the u.s. they'd like to have bigger studio, but they really want to replicate this all around the world. there's no other obvious path for them to take other than fox and sky. and so i think they're prepared to go meaningfully further i think this battle hasn't gotten close to ending i think you're going to see multiple shots still fired back and forth. comcast is just not going to give up and roll over this easily >> in other wordf disney wins, you think comcast, there
cannot be another deal which could get them even close to what they want to be >> i think that's the real problem here when you look at, like, european satellite. the european cable networks that sky owns the platform that they have across india there's nothing that looks like this and i think a really important point is comcast isn't doing this to catch netflix. they are really looking at this as we really like what we are in the u.s., yes, there's more challenges, there's more competition in the u.s but we'd like to replicate this model we have in the u.s. all around the world i don't see an easy path to doing that you can cherry pick assets here or there overseas, but there's no scaled acquisition opportunity like fox and sky for comcast. i think as you said yourself, like, you think about disney buying an act vision or buying a spotify or a twitter there's many paths for disney to go in the alternatives i think we're all struggling to figure out what would comcast do because it's just not obvious.
i think that tells you that they're going to be able to go further than people think. especially because brian roberts is an owner. this is his company. he and his family built this they're thinking out 30 to 40 years. they're owners, not employees. i think they're time frame is going to be different than disney's it's going to be different than their investors. they're going to look out further. >> it's karen. let me ask you something i know disney has said we're not talking about carving up the assets, but do you think that is ultimately possible as the bidding goes higher and higher and each of them think this is too risky. >> i think when you look at how disney point blank attacked brian roberts and the comcast team today, i think it's very hard to imagine the blood between these two companies just looks bad now. i think you've really set up an ongoing battle between disney and comcast no matter what happens here sitting around a table and carving up the assets, first of all from antitrust standpoint, probably just not possible
and all the other things that would go into thap i think from a regulatory standpoint. i think it's hard to envision spp there a scenario where disney wins fox, comcast wins sky and after the fact they carve up the assets? not out of the realm of possibility. i think right now the goal is winner take all. i think both companies -- i know comcast has more capacity. is disney going to go further? i know comcast has the ability to go further. they have a stable u.s. cable business a stable cash flow and there's companies like charter that are far more levered than comcast i think banks are already comfortable lending to a cable business, broad band business at greater leverage than the entertainment business >> before you go, we got to ask you about netflix now at 415 a share. does your view of netflix change even at the margin if any of
these deals get done do any of these deals pose anything at the margin >> i think what's fascinating is i'll come back to where we started. here's disney trying to chase netflix by buying legacy media rather than just investing what netflix has taught us and what you're seeing an apple, apple just did a big deal today they're working with the henson company for apple's coming service. all you need is money and time and energy in terms of your investment in technology and content creation i still can't figure out why disney's not just blowing it out and spending a ton of money and content and launching direct to consumer now i don't know why it's not buying more legacy media companies like fox. it seems like an odd decision. obviously they made that decision if you're netflix, you're far happier with disney going out and buying legacy media than investing in really blowing out
direct to consumer organically i actually think this battle and this fight that disney's gotten into actually is a meaningful positive especially because it's going to put a lot of leverage on disney as they try to compete with netflix. i think this is honest -- >> the best scenario is either a disney prevails or comcast prevails >> absolutely. and as you said, the loser is going to try to be on the hunt for something else the loser's not going to sit static i think the loser has shown their hand they're going to want to do something in a very scaled transaction way. >> all right rich, always great to speak with you. thanks for your time rich greenfield of btig. still ahead, another day another bitcoin hack rocking the world. could it be signaling a bitcoin bottom charlie lee will be here to talk why a mmsuer moon boom could be on the way for the crypto world. much more "fast money" after
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welcome back to "fast money. another exchange today with the sixth largest cryptocurrency exchange in the world announcing $30 million worth of cryptos had been stolen. by brian kelly says things are different for crypto this time around >> hey it's kind of interesting what happened here. we've had quite a few hacks this year it highlights the fact the exchanges are the weak point here also if you have your coins to
the best extent of you can, don't hold them on exchanges for any period of time look at what happened. we had a rebound in bitcoin. and why did that happen? a couple things i noticed today, number one, as soon as this happened at the exchange acted quickly. the news is out. they halted withdrawals. and they put everything into cold storage number two, they immediately said you know what any of the losses, we have reserves we are going to pay for them nobody loses money and number three, we're in a period of time here where the sellers in bitcoin are exhausted. we've had many -- i mean a many, many uptrend i might be grasping at straws. we've had a mini uptrend this is bringing back old school tape reading here. but look at what happened here and i'm always looking for something different. january 27, coin check hack. look what happened here. all of a sudden we had this huge drop after that. we come here, this was june 11th, coin rail hack we still had a little bit of a
drop there but today, we went up. so the old school trader in me says, you know hat bad news, goodprice action that's the first step in getting a bull market. >> all right why don't you come over to the desk we're going to bring ithe founder of one of the world's biggest cryptos to weigh in. dh charlie lee is the founder of litecoin he joins us on the phone great to have you on >> hey, melissa. >> what's your take on what the price action has been in cryptocurrencies, maybe bitcoin specifically and whether traders have become immured to the hacks. >> whenever the hacks happen, people get scared and the price drops. it happens all the time. because it's like if a bank gets broken in and gold gets stolen, does that affect the price of gold it shouldn't same with bitcoin. if the exchange doesn't protect
their coins well enough and gets hacked, it doesn't really change the fundamentals of the coin they're protecting >> you know, it's interesting because somebody else raised that exact same parallel in terms of if a bank got broken into and money got stolen. but when it comes to the hack for cryptocurrencies, it underscores the notion that perhaps not all of these structures the infrastructure build around cryptocurrencies have been secure because we're dealing with the security issue on exchanges, right? blockchain is incorruptible, but the security around these exchanges, it's not infallible so, i mean, don't we need to see big strides in terms of the progress of the securities of these exchanges to really overcome that particular fear? >> we do and we're kind of very early in crypto kind of time frame. so right now the exchanges are learning to better protect their customer funds i think we're getting better taen better at it, but we still
have a lot to improve. and this is like a paradigm shift for personal finances. with bitcoin, litecoin, you have control of your own finances you're responsible for your own money. if you put your coins in exchange, you have to trust the exchange to kind of hold your money and protect it for you so it's kind of a mental shift and people have to get used to that they really need to protect their coins much more -- much better than traditional finances >> it's b.k., good to hear from you. we're all out there looking for what the catalyst is going to be for bitcoin, for litecoin, for these cryptocurrencies are you most excited about in the ecosystem right now? >> what i'm most excited about is -- currently bitcoin has gotten stronger over the past few years. where developers are working hard on getting the second layer solution for payments working on
bitcoin and litecoin that's been going on really well but the price has dropped 60%, 70% over the past year the price seems kind of disjointed from the actual development of bitcoin cryptocurrencies i think that happens and that's fine but over time, the price will adjust i believe we're kind of in the bear market right now. but i have faith that the price will rebound and come back up fairly soon. >> you know, folks like you, charlie, folks like b.k., you got in on it early so you're fine a lot of other retail people watching, they're feeling the pain and wondering where does this thing go at this po you said we could be in a bear market how long could this bear market last even with all the technological advances to the system, to the network >> it's really hard to say i've been in this space for
seven to eight years now i've seen bear markets last three to four years. and so this one could be a three to four year bear market or it could recover tomorrow so that's why the market has been so fickle lately. people just don't know if we hit the bottom already or is this just another long, like, two, three year bear market the prices drop like 5%. 5% is a lot in the stock market world. it's like nothing in crypto space. and today, just today the reason the price rate is down is there was a report that a third party audit of finances claimed that they have the u.s. backing the customer deposits. the past few years, people have been scared that tether had been printing their coins out of thin air and buying bitcoin with it which might be the cause of the last year's run-up and if they actually do have the
backing, then that means that the run-up is created by real demand and not fake demand that's really good news. so that's why the price rebounded. >> all right charlie, thank you so much for phoning in we really do appreciate it bitcoin bear market for a few years or maybe a recovery even tomorrow that's a hard framework in which to trade. >> it is and here's the thing we don't have a lot of price history. the last time we had a major kind of bear market that it feels like we are now was 2014 and that really took almost three years to get us back up. so that's what everybody's looking back at and saying i'm incrementally more bullish than i was two or three weeks ago. we've had the s.e.c. come out and clarify regulations. this tether audit is good for sentiment. we've seen some creations there. and there's an awful lot going on in asia so you're starting to see a change it's painful but i think, you know, around six grand seems to be decent
support. still ahead, starbucks burning investors today. stock sinking 9% but pete here who pitched the stock last night says don't cry over spilled co fee. the stock is still a buy te uwhwh "stenfa money" returns experience the 2018 lexus nx and the nx hybrid with a class-leading 31 mpg combined estimate. lease the 2018 nx 300 for $339 a month for 36 months. experience amazing at your lexus dealer. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com one second. barely enough time for this man to take a bite of turkey. but for cyber criminals it's plenty of time to launch thousands of attacks. luckily security analysts and watson are on his side. spotting threats faster and protecting his data with the most securely encrypted main frame in the world.
you came in in april of 2017 there have been four quarters that you have been presiding over on three of those four quarters, you have cut your forecast you're from juniper. you understand technology. you know this isn't right. how could you be three out of four cutting your forecast kevin, you would be furious at yourself i don't hear you even being upset! >> jim, i said yesterday, you know, clearly the performance we delivered has not met my expectations it has not met our shareholder expectations and i'm accountable to fix it. now, i said that yesterday and i believe in that. i believe the plan we put out yesterday and shared with our investors is the right plan for the company. now, starbucks has been through these ebbs and flows before and we always get through them and we're going to get through this one as well
>> that was starbucks ceo kevin johnson earlier on "squawk on the street" talking about being accountable for the recent poor performance and his plans to get the company back on track. of course, those comments falling on deaf ears starbucks shares tumbling 9% today. saying it will close 150 stores. will johnson be able to fix starbucks' big cup of woes you pitched this last night, pete >> i liked the name but i was too early because i didn't know this news was going to be coming out. it came out as we were doing the show yesterday it was disturbing because to me the 150 stores they're closing here, that doesn't bother me they've been doing 50 stores a year if they're underperforming, get rid rid of the m. makes sense. the part you're always pointing to is international. china specifically they've had nothing but great growth there we all know the stats of every 15 hours a new starbucks is built. you know what? the fact they're struggling
there is concerns. and that was something that was not really known until recently that they were having that big of a struggle they got in china. because that's where you're pointing to. for me it's like nike. i like over at what they're doing in the asian markets that's a strength. there are names that's what you're looking for starbucks is one of them >> and the turn was dramatic sales were up 8% in china and then you go to basically no growth what is this stock kevin johnson says growth at scale. what the heck does that mean for valuation? >> i don't know what that means. as i said it earlier in the show, i'm not that bright. you all have come to learn tha over the years and i'll say it again. what i will say is this and we talked about it. at 20 times forward earnings given their growth rate, valuation doesn't make sense tim compared it to mcdonald's. i don't think that's a good comparison that makes markets with that said, if you look where it stopped yesterday, this is where we sort of bottomed out last july. so we talked about it last night. at 52 i thought it was interesting. there you go
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rep denying the umors. >> easy to get stock like this going 20% short interest it's up 50% in the last couple of weeks options volume three times average daily volume interestingly enough, the active call strike was the july 30th, that was the prior high. about 4,000 of those traded an average of about a buck 33 but obviously the denial of that rumor hurts this trade is little bit. but a lot of these recent ipos are doing very well right now. especially those with high interest it's a tough trade to fade at this moment. >> nice, dan he's trying to redeem himself. >> i love dan. we all love dan. >> for more options action, check out the llfu show 5:30 p.m. eastern up next, the final trade stay tuned (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't?
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♪ it's not quite the '80s classic. but guy adami kicking the you know what out of that gopher from the caddy shack >> i thought i was dancing in realtime i couldn't figure it out craziest thing >> guy, you can dance too. look at that >> it's like dancing with myself >> top of the show, trade it or fade it. we talked about facebook i saw some activity there. the stock is going higher. >> next week, long bank of america. >> if they can't rally, you sell
them and then you sell them again. and st became a meme >> final trade, please >> me and me i'm just going to keep doing this. >> or i'm going to the gopher. >> halliburton whoops there my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. wall street loves growth on a day where the dow drifted 42 point