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tv   Fast Money  CNBC  May 28, 2019 5:00pm-6:00pm EDT

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keep an eye on the chart over the last year and a half or so, we've only spent three or four months above this level and it looks like it might be in danger of succumbing here, and i think we're in the zone of figuring out if we're in an uptrend or not. >> thank you for watching and that does it for closing bell. >> "fast money" begins right now. >> "fast money" does start right now live from the market, i am brian sullivan if for melissa lee and your traders are tim seymour, care know finerman, dan nathan and guy adami tonight it keeps getting worse for investors in semiconductors and the semis slammed on track for the worst month in a decade. one technician says the game may be over and he'll tell you what names he's buying now. from a semislump to a social sag. people are fleeing facebook and people will tell you what's hot and what's not and what it means for these high-flying stocks, but first. we are in our worst slump of the
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year for stocks and it got worse today. the dow off 207 points and bond yields, they moved down again and buyers moving in the averages ended on the lows for the day and with heavy volume, never a good sign, but investors have been running for safety, real estate at a record high, up 17% this year, consumer staples and utilities both up 11% in 2019. also both near their highs here's the question, what do these run, guy adami a buy in utilities and a buy in real estate and a buy in bonds and an inverted ten-year and three-month bond and what does that tell you about the state of investors and the psychology >> in my opinion, it's great to have you back again and it means further paying ahead in the s&p and i think i've been pretty consistent on this i think we're going 2,650 or so in the s&p and about 150 or so s&p handles from here. i think that's relatively
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benign, and i think that would be healthy for the broader market it says to me that investors are looking for safety and i think they're going to the wrong places and if we are looking for stocks that have had a 10% move to the down side, i can get you no further than the one we power pitched last week and i got voted for yes across the board it was yes across the board any it was alphabet and it went into it, i'll give you another one, runaway, because you said that investors were running to the wrong areas. >> right >> why are they the wrong areas and what are the right areas >> if you look at utilities, i think, have gotten way ahead of themselves and i understand why they would go there based on where ten-year yields are and i think it's the wrong place at the wrong time, and if you're going to procter & gamble in a name like p & g and i have forward p-e and why would that stock at any environment trade at that multiple and least of which the environment that you have now if 226 in the ten-year tells he
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what markets are not excited for and we've broken through significant support and it really doesn't look good here so defense right now, is certainly in yield plays and those that give you some kind of relative increase over the ten year, i would go to an at&t and names that also have big balance sheets that people were very worried about in a rising debt environment and a place where the business looks better and consumer confidence was out today and it was a head fake and we're at three-month highs and if you look at the ism numbers and that's what put the bond market into a buying frenzy and again, yields are going lower and people are continuing to dump money into u.s. to play defense along with the dollar which continues to rally and none of this is good for risk, to be clear. we're talking about playing defense and people are playing defense in a sense with stock markets with only 3% from all-time highs and yet this is not what the bond market -- >> karen, there seems to be one very simple and very important question in bond yields. are bond yields moving down because people are afraid of a
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global slowdown and so they're just kind of fleeing into treasurys or issue they moving down because there's so much capital around the world that there's no place else to put it and i say that because we're seeing bond yields move down in countries like germany and japan, as well >> it could be both, right part of it is because people are afraid of a slowdown i know i'm afraid of it now as the trade war, i don't know what else to call it now, but a trade war drags on it's not just a -- it's not that a fix can fix things right away and no damage has been done and there is starting to be real damage done as companies try to position themselves. i mean, it's not so easy to move your supply chain. that's very difficult to do, but it's hard to know about how much should you be spending, what should you be looking for on the top line and not be conservative, right? and that sort of starts a vicious cycle of conservatism's
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lower spending and that's kind of bad for everyone and that plays into bond yields being lower because people are afraid of it. >> you have to look at germany and you have to look at japan and we know where the treasurys and equivalent of treasurys are trading. a lot of them are negative so when you think back to the fall when it looked like the u.s. economy was ready to take off, we had the ten-year treasury yield at 2 1/4 and here we are now basically at 2 1/4 and all these things that karen just mentioned are starting to weigh on those. >> the reason i ask that question is we've got to remember one very simple fact and bond yields also look back in the beginning of the year when stocks were doing well. the bond move down has been a continuation of a trend. it hasn't just been a three-week
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phenomena like what we've seen with the stocks. we just had the v reversal and we were so oversold in such a short period of time and underlying that initial strength in january we started seeing the data in the u.s. kind of weakening, too >> plus you had the fed gone, right? in december they were in overdrive. >> and by the way, speaking of the fed, guy adami, omaha, omaha, which is the three-month yield against the yield on the negative >> negative! >> positive. that's what you want to watch not the 30-10, but the three-month ten-year, guy adami. what is that telling us? >> global economies are slowing down in a meaningful way when 24% of global, sovereign bonds have negative yields that's problem attic and tic an
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better wach up and start to care so that number doesn't seem to be getting better and it seems to be getting worse by the day and inverted yield curves historically have not been bullish. >> especially as we talk about this and we have an 80% probability as a 25 basis point hike by the end. bund yields and -- by year end an 80% cut by year end what we look in italy, you see btp yields are wider by 12 bits by bunds and where is that btb land that's italy where slower growth gets you to a place where people start to be concerned about credit risks around the world. european banks hate negative yields and they're getting destroyed and if you look at big, and we talked about the bbb in credit land, if they're a notch above junk and if we are phasing the low growth and downshifting as much as we're talking about, and this isn't
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about playing defense into better equities and this is about a difficult time we will talk about the italian banks which have been quietly obliterated in the last month or so so we look at a negative yield on the ten-year note in germany, karen. the idea is i lend you money you give me some money back to compensate me for my risk. people in germany are now paying to borrow money. how insane is that this is not italy and the fourth biggest economy in the world with the negative yield on its biggest debt. >> there are a lot of weird things going on and guy and i were talking about this in the green room if i would have told you in 2008 that we'd have a 10-year run of expansion and the market would be here and the bond would be -- i don't know where it is closing today, that's not possible, those three things aren't
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possible throw in 2% inflation and real rates. >> thank you this market environment is really -- i hate to be a hyperbole. >> we have seen in decades >> i'm doing this 20 years and i can't remember when all of those things you just mentioned were happening at the same time >> all of these things are a function of a federal reserve that doesn't care about throwing as much money as they can and that's why they have the crosscurrent of bond yields and are going lower and the credit scare is the worst thing you can have and if we want to look at the history books you can look straight at japan and throwing way too much money at the problem. i can tell you right now, deflation is as important of an issue right now as inflation. >> quickly, we have to bring in deutsche bank and we're not bringing up today and this is something that we've talked about on this desk now and literally for years the stock closed above seven bucks and
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everybody, the market seems to think that deutsche bank is deutsche bank specific i am not certain of that as a matter of fact, i'll say it again, if deutsche bank, and to think that deutsche bank is by itself its own problem and the largest derivatives book in the history of mankind there has to be some systemic risk there. >> and what is that? >> you look at city bank, for example, now trading $64 and trading just right aroundish, tangible book. you wonder with citibank probably having the most exposure to europe is the weakness in citibank over the last couple of weeks and the last couple of years trying to tell you something. >> all right, guys good macro discussion, your next guest says it is time to get defensive and embrace what he calls a sloppy summer. let's bring in steve schiffron equity strategist. >> nice to see you in daylight. >> nice it see me in daylight,
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as well. a market that has got so many things going on that seemed a little to karen's point weird, right? there are confluences that happen that you normally don't see together as a fund manager, how do you manage through this? is it more cash? are you buying utilities >> i don't think you change your stock bond call here down 5%, and the reason why is we view trade as being a 5% to 10% event and in december you had the fed on the wrong side of things and the economic data and free fall and none of those are in place today. however, within your equity allocation we think there are things you can do to be mores diddive athat benefits those parts of the market and they're a little bit less volatile when you have this volatility over the summer and there are areas that might have gotten beaten up that had more opportunities and we talk about small caps that sound ridiculous and these are the most cyclical of names and 50% upon 5-0% of their funding
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is variable bank debt so when it goes from 3 1/4 to 2 1/4 that's a direct improvement in the cash flow, considering they're down 5% so far this year with the s&p down three and there's a little bit of an opportunity there and we also think, look, you've got over 50% of the s&p 500, 10% or more below its 52-week high and put together your favorite list and if it's alphabet, fine if it's semiconductors which chris will put together and put together your list and start picking away when the things are overdone because we don't think you have the end of the bull market run and we think you've got a physical and sloppy summer where the downside is a little bit, as well >> steve, i listen to you talk about, president trump and xi are in an endurance test, as you say on some level that doesn't sound like it will end any time soon karen talked about something that isn't transitory. if you look at business confidence and you listen to ceos and they're retrenching at
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a time where even if you get a trade deal where we've seen with the global, synchronized growth and even when we thought you were getting a trade deal it's not like you were going back to the race and if anything you've seen the weaker players like europe and some parts of asia and like emerging markets and currencies tell you it's not going to be an easy road back. >> when you take a step back, the u.s. and china are n negotiating terms. you either allow us to protect our intellectual property or we'll try to crush you and when the president ripped up the red line edits from the chinese the other day, he killed the market consensus which he would take a soybean deal and he increased the odds of a substantive deal and no deal at the same time, and so i think what you're dealing with now is more risk to the downside if something doesn't get done and more upside if the deal takes place because
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it's not going to be a nothing deal ultimately, when you buy a stock, you're buying the future earnings of that company discounted back, if we protect our intellectual property and this could all be worth it >> let me ask you, you talk about small caps and russell 2000 as a defense. i think of that as more of an aggressive, right? that there are smaller companies that tend to not withstand some of the macro events, as well. >> there are two themes here and the first one is we've got the sloppy summer to give it a cute term and we think that the economy is stabilizing and can reaction cell rate in the back half of the year and there's a cyclicality of the names and they've underperformed a little bit and they're more rate sensitive than you think and they can rebound and we think that combination we may have time and it will end up working. >> a really good discussion and we'll see you soon thank you very much. federated investors. all right. guys, let's trade that talk. i mean, everybody can pile into
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utilities guy and then all of a sudden you're trading at 20 times forward earnings, that doesn't work either. >> no. to my comment at the top of the show i think that's problematic and the people are in the wrong place and steve mentioned the russell and let's play devil's advocate, the iwm, the russell 2000, that was around 175 and fell off a cliff like everything else and the rally back did not trade on par with the s&p. as a matter of fact, we didn't get anywhere near the s&p 500 and to me that further bodies to the downside which to me leads the s&p lower, as well. >> i think it's dangerous to be running into consumer tape willies and valuations that make no sense i'm not a believer in procter & gamble at these levels and i'm not a believer in clorox and they have justifications and if you get interest a serious
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growth period. and do you think it cuts this year >> very likely. >> there's a 5% chance that we're 50 basis points lower by january. >> 50 for 50 a half a point by january is half the market spent right now. >> you have to think of the chance of a 25 point is higher than that. >> 86% is not good news no matter how you slice it. >> coming up, check out the conference call under way and we'll give you the call. how can facebook win and losed in social media war? stick around for the answer, tim and later, beyond meat has been being couping, up 250% since going public and one top analyst thinks the name has started to heat up and we have the details so where is the beef of course, it's right here and we're back right after this.
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good evening and welcome back to "fast money. we have an earnings alert for you and let's go to deirdre
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bosa >> these are not major moves so considering that the stock is up more than 35% this year and trading near record highs since the start of 2017. shares have tripled and work day is part of the high-flying enterprise cloud software group that has been on a tear this year, and ceo anil telling our jim cramer that their early start in the cloud has helped sign on the biggest companies in the world. have a listen. >> all these companies are going through a transformation, a digital transformation for their hr and finance operations. we were fortunate to get an early start in the cloud we have an architecture that scales to the largest companies in the world and companies like walmart and amazon in the work day and so it gives these companies comfort that they can get there and we've done it all with natural cloud architecture and we do it with high levels of customer satisfaction. >> he's telling analysts on the earnings call that some of those
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companies continue to expand their relationships with work day beyond their hr products into their newer financial management products, and they plan to establish leadership positions in this space and the financial product space before developing a new product you can cash bhusri tonight. >> thank you very much >> let's trade it. the stock up 33% revenue, 68% revenue growth, four years ago down to 37 and now in the high 20s and dan, your thoughts? >> it's interesting. we've seen some of these recent ipos come and a lot of reason for them not trading well is that they're not profitable and it's important to remember that while work day is this amazingly transformative company and they have this massive secular ship and how they're taking all of these processes in hr and finance and they're putting it on the cloud and doing a subscription thing this company is expected to do $4 billion in sales this year,
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decelerating and on a gap basis they're losing money and they'll lose 500 million in net income and here's a stock that like you said is up 33% it is up 80% sense its lows in november and at some point the chickens will come home to roost for a company who has decelerated growth trading at 11 times sales at 100 times earnings the fact that they'll make about $1.35 this year and they are making some money. the fact that they're in such deep markets and such an experienced management team is the reason why the stock trades at the premium it does and that's half the reason you want to own this company right there and the multiple at some point really matters and everything that we said in the a block in terms of high multiple stocks. >> doesn't the -- the reason i referenced the declining revenue growth was that multiples matter more when revenue growth is slowing. multiples don't matter until they do. >> explain to me this. why after a day when the market reverses 300 dow points when
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this is trading 95 times next year's numbers at the multiple to sales that you just mentioned and when they guide in line to slightly lower this stock should be down 5% and it's basically unchanged having made an all-time high it doesn't make a lot of sense. that's something to watch tomorrow they can't sell this stock off on the back of that on this tape maybe it should be going higher. >> when you can increase your earnings by even if your growth is slowing and you can increase your earnings if you have more operating leverage and all of that having been said this is growth on an extraordinary price. it's a phenomenal company and it's really hard to feel -- >> you throw cloud in, and you add your multiple and the show should be called fast money or whatever it is >> what are you doing? i'm trying to come up with a new acronym with growth in extraordinary prices >> all right excuse me. still ahead, the chips are down,
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literally. semis on track of more than a first month in a decade and there may be good news out there. i'm brian sullivan we're watching fast money on cnbc and here's what else is in the hopper yep, beyond meat is heating up after its hot ipo and one top analyst will explain why the sizzle is just getting started plus, bitcoin fever is back. >> don't tell me -- the cryptocurrency is soaring back to its highest level in more than ayear we'll tell you what's behind the move there's much more "fast money" right after this it's late, where are you? i'm at work. oh gosh, so late. i know, but guess what? what? i've saved enough to come visit you. well, that's such great news! at u.s. bank, we believe that hard work works.
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puppalright, alright. ion. what's going on? my owner got a new puppy. my name is tiny. nobody cares. welcome back to "fast
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money," there have been no group of stocks hit by the semiconductors seeing all sides of the trade fight dominic chu at cnbc hq with just how the chips are down the chip crash and the semiconductor slump and it's been tough sledding for the industry overall as it remains firmly situated in the whole u.s. china trade war story and it's pretty clear how much the trade headlines are with chip stocks and the ticker smh now down around 18% or so from its record high that we saw back on april 24th, even with that decline, though, it's still up around 13% year to date. among some of the more well-known semi names to be hit, intel is around 15% for the month of may broadcom is down around 20% and same goes with nvidia. micron is down about 21% and qualcomm, the worst-performing stock in this etf down 23% or so driven lower in large part by
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that federal judge ruling that it acted with an anti-competitive manner with how it charged licensing fees to certain customers and an honorable mention on its stock search today as some traders get optimistic and bullish about amd's latest chip offerings, the move means amd is the only stock in this etf that is positive on that month to date basis just one final point with regard to the negativity in technology. apple not a straight story about u.s.-china trade, but it still becomes a proxy on the headlines since its intra-day high and apple, chips, china trade and it's all one big clump back over to you >> it's one big clump that's been compressed inside the bag dominic chu, karen finerman, let's trade this any reason to own this group >> fundamentally don't get to the technicals in a second >> well, you've got to really believe in the trade deal.
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you have to believe in a trade deal soon, actually. so, i don't know that seems -- that could happen. i think there are other risk rewards. the president said we're, quote, not ready to make a deal >> that doesn't make me excited to jump in >> the semiconductors are down 14% in 23 sessions and it tells you how much the market is pricing in and this comes after q1 earnings, excuse me, where we heard from texas instruments we heard from intel and a handful of guys just how cyclical and how cyclically bad this was for a couple of more quarters and that's independent of a trade war and that was based upon inventories and restocking and where they saw the business models and if you look at the draw down in the first quarter of 2018 into the second quarter as we started to get the first announcements of trade war, and this drawdown from the highs, 23 sessions ago has exceeded it and it tells you
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that i think you can go lower. >> i agree with tim and april 24th and texas instruments reported 119 and shocking that the stock was higher on the back of this quarter and major double top here at 103 and that came on the heels of micron saying similar and obviously intel saying similar, as well. so i agree with tim. listen, trade deal or no trade deal there are other headwinds coming on right now and they go lower from here. >> qualcomm could be when they settled that deal with apple getting paid by apple, also to settle this dispute and the stock is back to 90 bucks and i think there are probably different entry points not too far from here. >> the average right target on intel, 37 analysts and the average target is at 43 and the analyst community can stat
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putting the estimates down and they have to get more bullish on the name your next guest says the worst may be over for semiconductors and it could be time to start dipping into the chips chris verrone is going off the charts for us at the plasma. give investors in this group some much-needed, decent news. >> hi, brian what's notable about the semis here is the change in attitude among investors so quickly, and let's just look at the chart here and this is the sox and etf. it was only a month ago that the semis broke to new all-time highs and they've had a sharp droudow drawdown and we had them back at support with the 200-day moving average and what's most important put volume has absolutely surged. this is a record where people are betting prices lower and that's a contrarian signal and this is a record we think we're pretty close here to some type of a tradable low, and i think when you look
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internally at the group, the percentage stocks above their 50-day moving average is also very washed out here and under 10% of stocks in the semis above their 50-day moving average, so again, we have them back at support and internal conditions are washed out since december, and this can take a couple of days and we think we're in the ballpark of some tradable low here what names in particular really flag in our work and this is txn. i think the question here is is this just some big top that's taking shape over the last 18 months i don't think we know yet. i think what we do know is with an rsi near 30 and right back at the 200 we can at least play for some type of a bounce and evaluate the character of that bounce and you look at a name like adi which is still, frankly, a very strong trend and it's been lower left to upper right for the better part of the last couple of years and you have a 30 rsi and oversold at
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the 2 hun-d00-day moving averag we can take a shot on the long side and what we're skeptical of, though, are stocks that are in established downtrends that never made new highs earlier this year. i think the best example of that is nvidia failed right at the downward sloping 200-day moving average and the trend here is still down the 50 remains below the 200 day, rallies and down a trends you sell and be selective here and texas, adi okay, and be skeptical of nvda. >> chris, come on over good analysis there. that smh was sitting right on the 200-day moving average and all of those technical indicators, maybe worth a little bit of a gamble here take a chance? >> if there's an entry point to chris' point the 200-day moving average and these things don't typically last a quarter and they last anywhere from four or
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five quarters and i take this for the limited down side. >> i just mentioned this a lot of people are waiting for this to fall into their lap and you get them where you don't want them and i think that nvidia looks like that goes back to the lows from january and it is lights out for this group and the other thing is listen, if apple is the last battle that's going to be fought in this trade war how do you think they're going to absorb those tariffs initially and they'll push it through to their supplier, right? and squeeze their suppliers and they want to be careful until we know they have a substantive deal. >> you don't get very many v-shaped tops in this business and we have a condition where sentiment and i can tell from the desk here has changed pretty dramatically on this group from a couple of months ago and when you get these huge spikes in put volume you have to entertain this idea that there's another side of this trade and they've hit it hard over the last month and 10% stocks above the 50 day and that's about as washed out as we've been since december and
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i at least think you get some type of a tradable bounce here >> let me ask you, intel, that quarter was awful. >> yeah, but the stock hasn't been here in a long time what do you think? >> the stock's been pretty awful for a long time. we've been consistently wrong on intel over the last number of quarters every time it looks like it wants to bounce it's been disappointing and there are better opportunities and the adi is in an uptrend that's had a big shake out. >> chris, quickly, can the overall market move up if the semiconductors do not? >> no. i think what's curious is the overall market is down 4 and the semis are down 15 and i would be curious if semis start to outperform even if the broader market gets hit here and that would tell me bad news has been discounted in these really broken groups and it's top of our radar. >> good stuff there on a sector that really matters. chris, thank you
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>> coming up, facebook, snap, twitter, soaring this year, but a new study suggests that it could be about to get very awkward for these social stocks. we've got those details. plus, beyond meat surging today and now barely 250% from its ipo. wall street jumping on the beefless bandwagon we'll tell you why some say that stoccod epk ulke sizzling. we're back when "fast money" rirns. from using feedback to innovate... to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.
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welcome back social media stocks have been on fire this year facebook, snap, twitter all up double digits and snap chat has doubled and a new report suggests users logging out in some areas and it answers our earlier riddle and can facebook win and lose the social media wars let's get more on this with julia boorstin out in our los angeles bureau >> brian, the average time american adults spent on facebook last year actually declined and it sounds like it's only going to get worse this according to an e-marketer survey which projects that engagement, the amount of time spent on facebook will flat line this year at 38 minutes. this is after declining by three minutes between 2017 and 2018, and e-marketer projecting
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another minute decline in 2020 the time spent on snapchat is projected to continue to flat line at 26 minutes while instagram buks the treepd getting users to 2021. why is facebook seeing a continual decline. e-marketer is for the downranking click bait work in favor of personal updates that are with the company called time well spent we don't know how facebook changes to prioritize private messaging and the news feed will further impact the way that the company can advertise and will impact both the way users spend time on the platform as well as how facebook can reach consumers in terms of advertising. we don't know yet what that will mean for the company's top line growth as to the question of why snap is stagnating and e-marketer attributes this to the app redesigned that was about a year ago. despite ongoing questions about the stagnating user base of all
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of these social companies, their stocks have been on fire as you mentioned, brian, facebook in part bolstered by the potential and instagram has seen the stock shoot up over 50% this year and snap is up 110% rebounding from last year's declines and don't forget twitter as it focuses on daily active user growth rather than its flat lining monthly users. its stock is up 30% year to date brian, over to you >> julia boorstin, thank you very much. snapchat's flat lining, but the stock has doubled dan nathan, facebook $218 last year and sitting on 50-year 2 hu00-day moving avera. what do you see for facebook >> the high for last july was the all-time high when they had the huge guide down. it's important to remember that for 219, i think eps was expected to grow at least 20% right now. rid now analysts have 219 eps declining 2% despite the fact
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that they're still going to see 20-plus percent sales growth so here's the thing when you think out to 220 the stock trades at 20 times expected earnings if you think that this is sort of a trough year as far as earnings and they're spent and then they have this business cycle and this business transition more towards direct marketing i think we can look at that data and we should be happy that instagram is growing and it will close that gap at some point and the stocks are probably kind of cheap here >> i think the stock trades cheap as it always has and therefore, it's not a reason to jump in. i think it can be defensive in an environment where 22% growth at a 26 and i see multiple, but it gets down to where is the trust factor with facebook their new private conversations and business is arguably a new business model and to throw this company in a place where you would be concerned about them in the short run. >> the government is concerned and powerful members in d.c.,
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and they've begged regulateus. >> we talk about banks too big to fail. are they too big to grow fo >> the big guys want to be regulated and they're best suited to handle regulation and it's in their best interest to be regulated. >> they have a hundred lawyers and nobody else can afford it. >> to tim's point, this stock was a $125 stock at its trough in december and traded up to 200 and if you look at a level to buy it, i think it comes in around 162 and i think that's where we're headed after a 184 close. >> all right >> facebook down let's move on. beyond meat has been beyond belief and you may not believe just how big one analyst sees the so-called alt-meat industry getting. plus, bitcoin coming off a wild holiday weekend soaring close to 9,000. the bulls are back, but are they about to get pushed back in the n?
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fake meat has been making real profit for early investors. beyond meat shares up just under 8% today and there may be no cow in the product, but there's another bull on the street
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j.p. morgan chase starting coverage with an overweight rating and the analyst -- >> nice job. >> the analyst spoke to "power lyn lynch" about an industry that could be on the move to as much as $100 billion. [ screaming >> i think the most important thing to look at is the long-term potentialand the mos important thing in the long-term potential is how big is this sector, alt-maet, whatever yeat want to call it, plant-based meat and when you start looking at some of the numbers and how big plant-based dairy has gotten it seems pretty clear plant-based meat can be enormous >> it will begin production in europe next year can this industry. >> alt-meat. >> can i answer for a second >> karen >> i appreciate the j.p. morgan guy being so bullish especially up here. they were involved with the pricing of this thing, were they not?
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may 1st? may 1st at $25 or wherever -- >> yeah, up from the range of 16 to 18? so i don't know, maybe it's in there. maybe. the one thing i noticed about beyond meat. i looked at a few other companies with a similar market cap, about $4.5 billion. they have two to three times more stock outstanding, footlocker, floor, names like that have a lot more stock outstanding and multiples more than beyond meat as beyond meat's success partly because there's scarcity of equity which doesn't necessarily mean that business is that good. >> well, to your point about scarcity value, didn't we see something in porsche and volkswagen. >> that was the sport squeeze, yes. to your point you could have a situation like that. the market like this could be ridiculous, but if we heard doctors talk about any of the health concerns. >> that was a horrible analogy,
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the porsche one. >> there is a scarcity factor. to tyson and hormel and all these companies that are trading at bloated multiples and the food companies are a mess. why wouldn't every other food company in the world that are bigger they're getting some piece of this market and 57 million outstanding shares and i'm with you. is it just being traded? is it being bought or is it being traded you get the defsifference. >> i agree with that and ultimately get to the fundamentals of alt-meat and a billion dollar industry that were barriers to entry for the biggest companies in the world is not a high margin and it gets to be absurd which i think it is right now. >> you used the fundamentals of alt-meat as a real sentence. you started it, and i'm just trying to do tv here
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>> channel 112 >> you have a face for radio >> i have a body for it, too j.p. morgan getting bullish and some options traders are betting on the stocks' monster run to continue, as well. dan nathan, king of the war has a special options action for you now. >> here's the thing, you asked the question and they're buying it today options traders were clearly trading the stocks' momentum and it was about 1 1/2 times average daily volume and it doesn't have a lot of history here and right out of the gate at 9:30 there was a buy of the week 35, friday expiration and a dollar for those and that was a trade and just on the daily basis and that could change the narrative and after the close, and, and the 16% now in either direction and the june 7th weekly straddle and you bought the implied movement and you
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need a 14% move and all of the way up to 100 on the upside and down to 72 on the bodown side, d huge movement over the next week and a half. >> i will say credit suisse just for balance initiating neutral and the $75 price target with a $67 price tag and i can tell you if you enjoyed beyond meat you will enjoy a rather large movement one way or another. >> nobody? nothing? you don't have a comment about that >> you have a comment about mine, and then you've got that for more options action, you can check out the full show, 5:30 on a friday i've got an emoji in my head check out bitcoin. cooling off a bit today after a red-hot holiday weekend and what's behind a comeback and is it a better option and we'll talk alt-coins live at the nasdaq, stick around ♪
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so far it's shaping up to be a hot summer for bitcoin, just
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inches from hitting 9,000 for the first time since last april. bitcoin is up nearly 130% this year investors dipping their toes back into the crypto market, but is the bitcoin move back for real or is this the investor fomo, fear of missing out and currency fears over the trade war? >> look, i think there's a little bit of everything, and the supply dynamics here which have outstanding supply and behalf of what it was. and i think you have the conference here two weeks ago and you have every lambeau or volkswagen driving crypto person and you have a dynamic where we are seeing gold and we are seeing other forms of flight to safety and dollar yen and technically, you got to a place where you had driven the actual sellers in the market and you look at how much demand comes from asia and the most
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interesting, and wonky and most interesting charts out there and the chinese yuan versus bitcoin because it does this >> inverted. this is some top gun we were inverted and do you remember the whole scene i'm the wrong person to speak to bit cohn, but i' bitcoin, and this stock has been with key resistance. >> ether up 220% and light coin's up 440% by the way, there say reason why, sell the car, sell the kids and buy light coin up next, your final trades because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary.
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take your business beyond. i'm off to college. i'm worried about my parents' retirement. don't worry. voya helps them to and through retirement... dealing with today's expenses ...while helping plan, invest and protect for the future. so they'll be okay?
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i think they'll be fine. voya. helping you to and through retirement. dear tech, you've been making headlines. smart tech is everywhere. but is that enough? i need tech that understands my business. i need tech that works at scale. dear tech, dear tech, dear tech, we're using ibm blockchain to help make sure food stays fresh. we're exploring quantum to develop next generation energy. we're using ai to help create more accessible health care. we're using iot to create new kinds of digital wallets. let's see some more headlines about that. let's expect more from technology. let's put smart to work.
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time for your final trades let's go around the horn tim seymour, we talked about defensive yield plays and the opening block and a cup liouplee at&t, less exposure to trade war. >> karen >> i'm sticking with one of the few things working on my portfolio right now. google, alphabet. >> three for three on that one dan in. >> tlt, if it gets through 130 i think the 20-year etf has gone
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back to 2016 highs at 140. >> bonds are moving up. >> i'll see you 11 hours from now, no doubt on the tv. >> brian >> we'll call you in there thank for watching "mad money" with jim cramer begins right now. "mad money" with jim cramer begins 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. other people want to make friends, i'm just trying to make you money. my job is not just to entertain but to educate and teach you so call me or tweet me @jimcramer. you know what makes this market so darn tough to game? it's that it's got a can't live with it,


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