The fed laid out plans to buy up individual Corporate Bonds this as the emergence of new coronavirus hot spots around the country add to fears of a second wave so why, guy adami, are markets seemingly so immune to these concerns is that actually a good sign for this rally no, its not. But before i have to i would be remiss, melissa, if i didnt wish the b. K. , the bitcoin baller a happy belated birthday. His birthday was yesterday do you know whose birthday is tomorrow i wont keep you in suspense adam smith would have been 297 years old tomorrow why do i mention him i had to read that book the wealth of nations in college. You probably read it as well he was the father of free market capitalism well, what you saw today was the exact antithesis of that and im going to get added by everybody. To think this market is at all free market is a fools folly. The fact that we rallied into this announcement by the fed, which we all saw coming or they announced it prior shouldnt really surprise anybody. I dont think its a good thing. I think its ridiculous. I think the next step is theyre going to announce buying individual securities or stocks at some point. And to think that you can see why people at home get frustrated and say this is a rigged game. You know what . Thats what the fed has effectively told us in my opinion. We left that whole free market stuff at the door back in the financial crisis but what guy is describing sounds like japan. Im not sure that that really is going quite as planned either. Yeah, yeah, right so i mean, yes, agree, free market capitalism died back in 2007, 2008, so here we are, right . We can be upset about it, but this is the market that we have to trade so when we look at what happened today, you have the Federal Reserve coming in. Governor daly out of San Francisco had a speech today that said we cant afford not to so basically we cant afford not to spend more money. We cant afford to buy more bonds, buy more stocks based on that view from that perspective, if you say, okay, fine, there is going to be monetary stimulus, likely fiscal stimulus, to get us through until there is a vaccine, a therapeutic or something, then a second wave is less important to the market its not less important to real people, its just less important to the market and guy is right listen, this market, if you want to buy at all, it will go up dan nathan, please, join the conversation here because i feel like thats the perfect entree for you. Yeah, well, hold on to your chairs here people ill just tell you todays announcement and the reversal and going back to last thursday and the price action we saw, you know, im far less bearish on equities lets say than i was a couple weeks ago ill just tell you this, because the fed has just put a floor in. Theyre going to do whatever it takes to keep risk assets afloat here so the idea of a retest of that march low seems very unlikely unless we have, and this is a bit nuanced here i am equally as bearish on the outlook for our economy the back half of this year, despite the green shoots and things fancy guys in pinstripe suits want to say on the lawn of the white house based on hope. I just dont buy it. Well, im talking here, big guy. So, you know, at this stage of the game, i am less bearish on the equity markets because what the fed is going to do from a monetary standpoint. But on the fiscal side it really seems like were about to have a cliff where this unemployment bonuses run out at the end of july 31st. Politically its going to be very hard to get new assistance to consumers here or to citizens and i think the back half of the year is going to be really hard. To me i think its going to continue to be a really good Trading Market for the traders out there. But listen, i think well be in a protracted bear market i know the s p is down 10 from the highs. I do not see new highs any time soon but at this point i dont see any new lows any time soon either tim yeah. I mean tim, are you with us . Im sorry, yeah my audio is coming in and out. Look, my response to all that is brian talked about the market we have dan talked about a place where maybe hes a little more constructive on equities i think you have a dynamic here where first of all, you did have almost a 10 correction. It happened very quickly much in the way we saw the recovery happen very quickly. I think we have a case where if you look at the city economics surprise index today, it tells you that the empire state, manufacturing came back a lot better than people expected. Were seeing mixed numbers but we are seeing some sense that frankly the consumer is not all that concerned about going back to work. The consumer is not that concerned about the dynamics and the rebound that i think we will eventually get in covid19 cases is something i think the world is getting ready for so back to sentiment for this market, i think this is really part of what the last week to ten days has been all about. The feds announcement today is another extraordinary day for markets. Its not a great day for free markets, but it is an extraordinary day for asset prices and thats why they went higher. Im not sure i would be ready to fight that. This is the ultimate backstop, guy. In every asset class the fed is will to step in and do something. As much as one might be pessimistic about the Economic Outlook in the back half of the year or second wave or whatnot, does it matter if we know the fed is going to be in the market supporting it . I think well, thats an interesting and, again, somewhat nuanced question i absolutely think it matters because i think one of their main goals is to convince people that things are okay and to you know, to sort of ill say it, to pull the wool over the eyes of the consumer to keep them spending. And thats what this total economy is about as long as they see the stock market stable to going higher action one thing weve learned is the consumer will spend money. I think thats the game. What does it mean, though . It means were hiding a lot of the things that are troubling us but this started long before covid in my opinion. This started on, i believe, the exact date was september 17th on the night that the repo market went nuts and the fed has never been able to extricate themselves from it i think thats problematic so can they keep asset prices buoyed yeah i think they have proven they can do that. At what cost is my concern and i know thats somewhat john paul sarth but ill throw it out there anyway. I agree completely with you, but at the end of the day does that really matter ill ask that question again because all of this, whether the stimulus or the feds action is all about providing a bridge to get to the other side. That other side may be the discovery of a vaccine that other side may be just a decline, a severe decline in hospitalizations or, you know, a stemming of the spread here, dan nathan so all of this, if it does work and it gets us to the bridge, isnt that the point and how do you invest in that market right i guess the question is what do you get . What does the bridge get us . It gets us an extra 4 trillion debt weve heaped on this whole thing and thats going to literally be a huge weight on growth Going Forward in my opinion. But i agree, as we get into the back half of the year and there seems to be progress on a vaccine and lets say there are these green shoots showing up, i just dont buy it. I think the vaccine comes later than we think. I think disruptions from other waves come and go and theyre really going to hurt the recovery and i believe unemployment stays double digits when you talk about getting to the other side, equity markets really liked when the 10year treasury yield got off the mat and went from 65 to almost 1 in the last few weeks but its come all the way back i suspect if you see a break of that 55 basis point level which was the closing low back on march 9th, i think that is the thing that will freak out equity markets and thats when investors start pricing in what negative Interest Rates look like here in the u. S. On our main treasury bonds. And so thats the thing that i suspect takes us back to maybe 2,500, 2,600, but again, what happens there . The fed goes ballistic and thats probably your problem so that panic low of 2,200 on march 23rd is probably out of the woods for now. Our next guest, lets bring in mark. Good to speak for you. Hey, great for having me on today. Why question the fed backstop well, its math, right . What the fed has really ended up doing here is devaluing the currency since we started talking back in october of 2018, the equity market is basically flat gold and bitcoin are up about 50 . And gold stocks are up about 80 . So whats happening the nominal value looks like its rising thats what the fed is doing to raise nominal prices but the real value of our assets is declining i get that, but in the short term, mark, are you trading the market that we have, which is a market that seems to want to go up no matter what you throw at it well, it certainly has gone up in the last or went up for four weeks it basically went up from march 23rd to april 23rd and its pretty much been flattish since. Its up 3 or 4 since then and has been very choppy its actually down 10 , down double digits for the year so i think whats interesting is we call it the great separation. In our fund, we are long and short so were about 50 net we have a lot of longs, a lot of shorts and what we try to do is focus on the things that we think still have growth and try to be short the companies that we think are going to struggle in a postcovid world so there are a lot of things that are very, very overvalued that are still great shorts. You know, were up midsingle digits this year with the market down 10 so thats pretty good. What are your highest conviction shorts right now . Were still short a lot of the traditional retail so the amazon road kill. Were also short some of the really overvalued tech and Software Companies i mean there are companies out there selling at 20 and 30 times sales, forget earnings but 20 and 30 times sales so dealing with a little wit of shorts there. And highest conviction longs at this point . On the long side we really like the safe haven trades we love oil services, for example. They got beaten down, so halliburton, slumberge have been beaten down. Gold miners, gold and gold stocks we like cash actually so we have a decent amount of cash. But there are some emerging Tech Companies that look good and will do better in a postlockdown world. And then we still favor a lot of the emerging Market Growth stories. We like china a lot. And the china Tech Companies in particular, like baba and tencent have done really good. Hey, mark, its b. K how are you . B. K. , how are you doing im doing quite well. Question about that china trade, right . They have been extraordinary, emerging markets, china, i understand that economy may be coming back a little bit faster. But it doesnt give you any pause that those companies could be delisted from the u. S. , and would that have an impact on their valuations its a great oint, b. K. Its interesting because weve seen this movie before there are a number of companies that voluntarily delisted to get a better valuation on the Hong Kong Market in shanghai. So i think the threat of delisting is a mistake i think the whole china cold war 2. 0 thing is a mistake i think we should be collaborating, not fighting. But what youll see from investors that are nimble, youll actually get a chance to buy at a cheaper price because these stocks will fall with the threat of delisting, but then when they relist in hong kong, theyll go up a lot because theres a lot of money on the sidelines in china thats looking for a place to invest. Mark, always good to speak with you, thanks. Thanks for having me. Talk to you soon. Mark yusko, morgan creek capital. What do you like dislike about what mark is buying and selling . I like the fact he stands short some of these beatenup retailers because they give you an opportunity to trade around macys is an example of a stock thats gone lower but had significant bounces along the way so i think that makes sense. One of the things he did mention, and i think this is also concerning, and this sort of gets into tims wheelhouse and b. K. To a certain extent as well, is if the fact if the dollar starts to weaken in a measurable way, a lot of people might think that would be bullish for stocks im not so sure. So again, be careful what you wish for, administration, in terms of a weaker u. S. Dollar. You might get it and it might not be how it looks on the back end. Coming up, the founder of Nikola Motors will join us that stock has been red hot. Well get his take on what is driving this big surge. Plus dave portnoy joins us to talk about the explosion in retail activity. Fast money is back in two. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Talk to your financial professional or consultant you say that customers maklets talk data. S. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad . Your wireless your rules. Only with Xfinity Mobile. Now thats simple easy awesome. Switch and save up to 400 a year on your wireless bill. Plus get 200 off a new Samsung Galaxy s20 ultra. Welcome back to fast money. Lennar was su pouzed to report tomorrow morning but results are out tonight. Lets get to diana olick whos got the details. They probably couldnt wait to get the good news they beat on earnings and revenue using a prudent land strategy and taking advantage of new Technology Already in place. As lennars chairman said at the end of q1 they slowed starts to preserve cash and protect the balance sheet. A lot of the builders have been using the land light strategy during the pandemic but in the q2 report business rebounded significantly in may and by quarters end our total new orders declined by only 10 . We resumed starts and this rebound has continued into the first two weeks of june. Now, another interesting note which we reported quite a bit on is this flight from apartments in urban areas miller added that customers moved from rental apartments and density Populated Areas to purchased homes as record low Interest Rates and inventory levels drove a favorable rebound in the Home Building industry. The average sales price came in a little lower but he said that was due to continuing to shift to lower priced communities and regional product mix due to covid19 stayathome orders now, they reinstated guidance not on revenue or earnings but on home sales, new orders, deliveries and average selling price and margins. Melissa. Diana, what would make it reaffirm guidance for all those things but not profits or revenues you know, it depends on what the pricing comes in theres also the question of was this pentup demand that came in from spring, everything dropped off in march and april and came back suddenly in may and june. You had record low mortgage rates, can that continue into the next quarter will it continue into the fall maybe theyre not sure, maybe they dont know if the economy is going for better or worse and theyre not ready to put that into the numbers yet. Diana olick with lennars results. The stock is down just slightly. Its up about 40 since the march lows, b. K. I dont know where you stand on Home Builders but diana said they may not reinstating or reasserting fullyear guidance because they dont know what the economy will look like in the back half. Right, right. So this is kinds of that uncertainty out there. Why would you put yourself out there if you have this look at whats going on. Anecdotally, what we have heard, what diana talked about is this moving from the cities, from apartments, getting away from dense Living Conditions out into the suburbs. Youve heard it about the tristate area in new york, heard it throughout the country that people are getting out of the city, buying homes outside, and sometimes theyre not necessarily thinking about commuting back in to major cities and so theyre going to stay there for a while. So if that trend continues, and you have kind of the housing, i dont want to say shortage but limited supply that we have at this point in time, that actually could be a really good time oh, and low rates, lets not forget that. Chairman powell told us theres going to be low rates through 2020 add those things up and it looks likes a decent environment for the Home Builders. The fed is not even thinking about thinking about raising rates, plus work from home almost forever, tim. That changes the equation for the housing stocks, although they have bounced strong off the lows. Yeah. If you think about it, last weeks pullback was really nothing compared to the threeweek run wed had in a lot of these Home Builders zero Interest Rates not only gives some consumers confidence to go out and take a chance, even if their job dynamics are a little bit uncertain, but it also gives the lenders a better opportunity to gauge some of their risks. So i do think some of these secular trends and move out of urban areas are still things that are early stage you own a lennar because margins have gotten a lot better these guys have indicated somewhere just north of 20 on the gross margin theyre better on businesses we do know on certain demographics there really is pentup demand so filling that supply need to be the key for the Home Builders. Shares of nikola red hot but can the company keep up its momentum and take on the giant tesla . Later, one sector seeing rk, trgtinodsh tay maetwell tell you what it is fast money is back in two. Is creating Food Insecurity on a scale not seen in decades. An estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. Welcome back to fast money. It is the new hot electric vehicle stock. Nikola roaring higher, it is up 96 since its june 4th debut joining us now is trevor milton, founder and executive chairman of Nikola Motors trevor, great to have you with us. Thanks. Thanks for having me for sure. I wanted to ask you about this crazy roller coaster ride for your stock and its a roller coaster only going up it seems so far but youre a company right now with a market value that is approximately eight times the revenue that youre projected to make in 2024 do you have any comment on the valuation of your stock . Yeah. I think the world has changed a lot in the last year you saw the coronavirus hit the whole world. One of the major issues they had was respiratory problems was a greater a greater effect on the virus itself with people so investors are rewarding people that are changing the world, reducing emissions. Nick lakola is targeting the trg industry and were the first zero emission semi truck on the nasdaq market. The company is only focusing on zero emissions with heavyduty trucks and thats it thats why you see such a good response so far. When will you actually have a product on the market . We have trucks coming off the Assembly Line right now. Thats a question a lot of people ask we have a factory in germany and those trucks are being hand built right now in those factories. Theyre going to be out testing all this year, all next year and we enter into production nex year so were less than a year out from production and revenue. So i think thats why people were excited about the future of nikola its like getting in early on some of these zero emission Car Companies. People finally get a chance to do that. So right now its sort of that long haul Trucking Industry that youre going after with this main product, but youve also got a Consumer Product which you say you would like the badger to overtake the ford f150 which is the bestselling pickup truck a lot of the hype in the stock happened around the time when you tweeted that you were taking reservations for this because consumer demand was so brisk im wondering how you sense what the consumer demand is if youre only taking reservations now and the reservations are free . Yeah, so they wont be free, by the way, but it is awesome. This is how it works nikolas main revenue stream is the semi trucks. We can make about 750,000 or more in revenue per truck we sell which is almost five times what our competitors make per truck. Thats because we actually include all the fuel with it that we own and manufacture the hir Hydrogen Fuel. The way we touch our consumers is through our pickup truck, the badger the badger really is the coolest electric pickup in the world you can order it battery electric or hydrogen electric. It can go over 600 miles on a single charge. Thats really why for zero emissions. Thats why i think you see the excitement the truck is our revenue model and the badger is going after the ford fo150 crown. Are you going to make money off of the badger. Oh, yeah. So what is the price point of the badger and how does it stack up to the cyber truck from tesla . So the badger is between 60,000 and 90,000. Its a little more expensive than a tesla cyber truck but were not really competing against them because our truck is a true pickup truck its the size of an f150. Its used for job sites as a 15 kilowatt export so you can power drills and saws and an entire job site its got all the doors for a family you can put car seats it in and a fourwheeler in the back its really a true truck like americans are used to. So thats why its a little bit different but its very profitable the ford f150 program is one of the only programs in history thats always been profitable, even in bad years. How many reservations have you gotten so far for this badger yeah, so the reservations open up on june 29th and they range anywhere from 250 up to 5,000 for a reservation so we actually do charge for the reservations i think its going to be well come back on your show right after that, after that june 29th and well see some really cool numbers. Im excited from the response weve already had. Okay. Lets talk about the semi truck because that sounds like its really going to be the bread and butter for your business at least in the near term youve got a 10 billion backlog led by Companies Like anheuserbusch whos made commitments wanting those trucks to deliver their goods how does it stack up in terms of fuel costs i understand Hydrogen Fuel cells may be lighter in weight but the cost for hydrogen is a lot more than electric and the infrastructure isnt there either in terms of charging stations. Really good points. Hydrogen it does take more energy to produce hydrogen than charge a battery truck but youre building all of your hydrogen stations on the interstate freeways where youre able to source your energy directly and pay under 4 cents a kilowatt hour for energy when you charge your truck, a big semi truck thats electric in california, your cost will be right around 30 cents a kilowatt hour so thats nearly seven or eight times the cost per kilowatt hour inside california than you would with the Nikola Hydrogen so even though hydrogen is a little less efficient, its much cheaper it can be cheaper to operate than battery electric. Im sorry, so youre saying that if you charge the truck, the semi truck, outside of california then its so in certain markets does it not make sense to have that Hydrogen Fuel cell truck so the Hydrogen Fuel cell is based on one specific market and thats what we call the long haul distribution. Its where it makes sense because weight is everything you need to run your truck three shifts, eight hours a day essentially all the time and thats where Hydrogen Makes sense because its lighter and can run three shifts the battery electric will only really run one shift a day if youre charging it really fast, it will degrade and ruin the battery. If you look at cost comparison of a battery electric versus hydrogen, battery would be cheaper if you were paying the same rate on energy but you dont because the battery electric truck youre paying the utility for energy the hydrogen, we control the energy through the federal transmission line so we can get energy really cheap. Your Business Models you mentioned is interesting because youre basically selling these trucks to Companies Like an anheuserbusch and youre packaging everything along with it, services as well as the fuel costs, et cetera, and this would be a lease basis, correct . Its very similar to amazon or verizon you buy a cell phone and call the towers are included. Well, today if you think about trucking, right now you have to buy fuel from different people, you have to buy service from different people and its really complex. Nikola is the only company thats consolidated it all into one, very similar to amazon. Say you want to buy a new pair of shoes, one click of a button, they take care of the merchant, the seller, the shipping, the returns. Its all done and simplified and thats the first time this has ever been done in trucking thats why nikola youve sign such a response around the world. The generation thats investing now care more about the Environmental Impact of what youre doing than they do, youre six months or eight months from revenue. Theyre like you know what, youre changing the world. Youre going to reduce emissions, were invested in you. So of the different buckets, the truck, the fuel, the services, where is your room to increase the margin over time . Where do you see the biggest leverage its all in the hydrogen. Were really an Energy Technology company we sell the energy to consumers. Not to consumers, but businesses that are buying the trucks thats where the money is. Obviously we want to reduce the cost of our truck, but were now cheaper to drive than a diesel is per mile and make five times the revenue of our competitors so its awesome. Thats why nikola has really cracked the chicken and the egg. So as you get that cost of hydrogen, which i understand it is 2 a kilogram according to a recent presentation. As you get that down, your customers wont expect to have those cost savings as well no, they do so thats the idea. So then how do you make more money if youre constantly giving them breaks because youre getting the price of hydrogen lower you dont give them breaks on everything you get you give them a locked in rate for seven years. Anything that we can drive down in that seven years is given to us. Got it. Trevor, i think we have a date on june 29th i cannot wait by the way, this im so excited. So not only am i going to make sure i come back with you guys june 29th, but nikola world is going to be announced june 29th where we show off the nikola badger in live person for the whole world to see i want to make sure you guys are there front row and center ill get you tickets and it will be one of the greatest shows youve seen in your life. Is it worthy of elon musk unveiling one of his products . Thats a comparison, right, that youre basically the next elon musk do you like that i am i like to i like to think about the fact that im trevor, not elon but i can tell you this. It will be a better show than youve ever been to in your life for any other automotive show in the world. Trevor, great to speak with you. See you june 29th. Thank you very much. Trevor milton, founder of nikola motor guy, what do you think couple things i mean what he said, he said a lot of amazing things. I missed chemistry and physics in high school and college so i cant speak intelligently about the technology what he did say is interesting, the investing public wants to hear that youre changing the world. He just spoke about esg in a nutshell, which is why this stock probably can continue to go higher. I hear hydrogen and i think of may of 1937, b. K. Might remember that of course the old hindenberg what he mentioned is the exact reason the exxons and chevrons are having so much trouble and names like this are going parabolic. I think this story has legs. Tim, quickly. Well, i think you have a case where youve got a story that you defined the three different buckets of Revenue Streams its very different, for example, than tesla. Whats interesting about the valuation, also really tough to get behind but at least theyre doing things you know, i dont have to believe in the value of autonomous or data or technology, which is that makes tesla a tech play. I dont think thats what were trying to do here is necessarily compare them but the valuation thats pretty unattainable right now for people to get comfortable with but the things that they are doing very differently they are outsourcing their production so all questions about deliveries or what they can deliver truly i dont think are issues i think if you look at the stock, theres some dynamics here that have something to do with why the stock has run the way it has its essentially been a reverse spare into a structure that doesnt have the same liquidity. Ultimately you have a case where you have this massive short squeeze and i think thats been a big part of the dynamic here but its a very exciting story and very different story. Coming up, we are gearing up for earnings from oracle after the bell later, burger king does the impossible bringing the plantbased meat trend to its Breakfast Menu weve got all the juicy details. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Talk to your financial professional or consultant this virus is testing all of us. And its testing the people on the front lines of this fight most of all. So abbott is getting new tests into their hands, delivering the critical results they need. And until this fight is over, we. Will. Never. Quit. Because they never quit. Welcome back to fast money. Check out the clouds stocks. Zoom video hitting an alltime high but the cloud players arent the only Software Names soaring. Check out shares of oracle that stock reports earnings after the bell tomorrow. Options traders are betting on a huge move higher mike khouw has the action. Hi, mike. Hi, melissa we did see calls outpace puts 41 in oracle today but the calls have outpaced puts every single trading day for the past month, even though the stock hasnt necessarily been keeping up with all of the rallies weve seen in the market right now the Options Market is implying a move of 6 . Thats more than the 4 the company has averaged over the last eight quarters. The biggest opening activity was the june 26th weekly 61 strike calls. Those are the 61 strike calls that expire a week from this coming friday. The buyer was paying about 15 cents so risking relatively little, betting on a sharp rally. I would point out 61 would represent a new high for oracle. For more options action, tune into the full show friday, 5 30 p. M. Eastern time its been a big bright spot, the software space, igb is the etf that tracts this sector. Nearly 20 gain on the year, up 50 off the march lows danny flagged this earlier today. Pretty interesting, mikes take on oracle here, the stock is basically unchanged its really traded well below a market multiple. When you think about the names that you just mentioned to start the segment, mel, you think about zoom it closed up 9 close to a new alltime high. Its got more than a 60 billion market cap trading 37 times this years expected sales. Theres just a massive difference between old tech trying to become this new cloudbased recurring revenue model and the stuff thats yet to prove itself. Heres the thing with zoom its a phenomenal company with a phenomenal product but how much future demand have they pulled forward . How much deceleration will we see in the next year or so once things calm down or so i think its just really indicative of the market that were in there are many asset bubbles within this stock market right here and these cloud stocks are definitely one of them, especially when you have some of these older players like oracle pretty much left for dead. Yeah, listen, were talking a year or so things calm down and you look at Something Like zoom. I think theres a lot of people, a lot of companies that are realizing, hey, you know what, i can do more from home. So i can work from home more than i ever thought. As you mentioned a couple of weeks ago, you can work from an rv people are buying rvs. So thats that talwind for zoom stock, i think is it expensive . Absolutely have they been on a rocket ship ride of course they have. But with the story and the tailwind behind them and a market thats going higher, i think this is the place you want to be. Guy, i dont know if you saw this bank of America Travel survey which was released today, but they surveyed 20,000 people around the world and 40 said that they expect to take a business trip in the next three months 40 . Which would imply that the majority are not going to travel and so, therefore, what do you think of zoom . If 40 , that means 60 dont, thats what youre getting at, right. Ding, ding, ding, ding, ding. Exactly, look at me ding, ding, ding i thought you had to sell it after earnings i think i said 165 or so, that obviously didnt work out. We liked it a long time in the Earnings Release now its sort of in Uncharted Waters i still think at a certain point it has to give you another opportunity on the downside. But in terms of the cloud space, you know, this what does dan call it, software is a service sass but the best valuation out there is probably microsoft, despite its value despite its market cap and despite the ridiculous move it has. So msft is probably the best in breed. Davie day trader is back well get his take on the big boom idan y trading which some say he is fueling. Fast money is back in two. Heres a tip get halfoff the amazing iphone 11 on at t, americas Fastest Network for iphones. Second tip you can put googly eyes on your stuff to keep yourself company. Uh for example, thats heraldo. Hes my best friend. Oh, sorry nancy, i forgot you were there. Get the amazing iphone 11 for halfoff on at t, americas Fastest Network for iphones. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Welcome back were tracking the trends here on fast money and getting new data on what retail traders were buying and selling in todays session. Lets get to kate rooney with the details. A few stocks retail buyers were big on to start this week fist, check out genius brands. This littleknown childrens Media Company has seen a surge in Trading Volume and price in recent months. The stock was one of the most bought on robin hood, according to robin track it was also among the top buys in millenial heavy platform sofi it announced a partnership with arnold schwarzenegger. He will star in one of their animated shows the stock has soared almost 2,000 in the past three months. We saw retail buyers picking up electric Car Companies tesla and nikola were among the top buys on robin hood and sofi, and a surge in stayathome stocks zoom, shopify. And finally, the airlines, delta and american, seeing a surge of buyers on robin hood and sofi as well. The retail trading boom is giving one man a whole lot of attention. The New York Times calling him, quote, the captain of the day traders. The ft coining him a retail bro and barstool saying hes leegds an army of day traders lets welcome back davie day trader portnoy always great to speak with you. Thanks for having me. Youve gotten a lot of press. Do you think thats true do you think that you are leading an army of day traders out there . Pause we all know that there is a rise in trading activity at the point and you have, what, one million followers . I dont know if im the leader obviously the corona and everybody staying at home has changed the Playing Field. People that used to bet on sports are doing this like i did. We have a huge following for a certain demo so i think it plays a role were just doing something that the Financial Community hasnt seen before, were just kind of making it fun. Were doing what we do were barstooling it, making hype videos, getting behind it, Live Streaming it. I think a lot of the oldtime guys dont know what in the hell is going on with us. They dont know what to make of us and dont have an explanation for saying everything is going crash and everything keeps going up theyre looking for something and right now i seem like the easy answer. I agree with you that youre having a lot of fun doing it a lot of people watch your videos and they are a lot of fun to watch you do have disclaimers, but do you have a sense of responsibility for all those people theres a recent study saying government stimulus checks twoengt went to retail trading. They increased their trading 80 in the week following receiving their stimulus check and the impact that you have can be seen in Trading Volumes there is one penny stock, and im not even going to mention the name but its an 8 Million Dollar market cap stock today. You mentioned it one day and the volume went to alltime highs. Do you take a look and think, oh, my gosh, ive got to watch what i say. I think youre talking about the score. Somebody said it to me and i said it out loud you know, that, i think, was an abnormal case. Im not really trading penny stocks like that when i mentioned it, i tried to get in and it moved too fast were doing name brands for the most part. Some of the companibrands are cs that you mentioned before, the robin hoods and the day traders. Those stocks are so widely being talked about that im almost jumping on them. Those are all the momentum that im hearing about, whether its genius, whatever it may be you know, those are being talked about by everybody now, were plugged into that, but those are momentum stocks, whether its be the hertz when it catches fire. But as far as feeling responsibility for it, were pretty clear what we are you know, im not sitting saying i have some great knowledge of it i cant be held responsible for total idiots and even, to be honest, if the stock market reversed itself, i was telling people to buy spirit at 7. 70 its around 20 it would have to crash significantly for a week straight to even get close to where i told people to buy it. So i mean, you know, people have to make decisions for themselves obviously. If you want to jump on, you want to jump on the facts are im not going to feel bad when i have 400 returns since i started doing this. Do you have 400 returns since you started doing it since it really started catching on, yes, because i was doing it early i spoke with you guys, but i was down for shorting boeing and i shorted lulu but since then, i do if you look at when i jumped on the airlines and the cruises, theres somebody who tracks me every day. Literally most of the stocks that i bought, they have quadrupled since when i really made my stand and said the whole Warren Buffett thing obviously, which is when i announce i want to go in on airlines and airlines were where we should be, 20 minutes later Warren Buffett got out of the airlines and we had some fun with that and now people are having some more fun with that, some not so much fun but since the day trading has started to pick up like what we do, more people watch, ive got incredible returns its all documented. Youve done a lot of smack talking, speaking of Warren Buffett, about Warren Buffett. Do you actually mean it . Do you think that you are the next Warren Buffett . Would you go so far as to say this is my experience so far, im up over 400 over this short amount of time frame and im going to be better than Warren Buffett who has a 30year plus track record of average returns of 20 yeah, no. I doubt ill be even trading once corona is over. Oh, really . Yeah, because ive got to get back to nmy 9 to 5, which is a pretty busy job. On the Warren Buffett front, people are taking offense to that i dont know Warren Buffett and hes one of the great traders of all time but me saying im doing better than Warren Buffett right now, i am but hes 90 so i dont think its that big of an insult to say someone was past their prime when hes 90 years old and ive said all along hes like the greatest investor of all time but right now in this market, im doing better all right weve got to let you go right now, dave. Quickly, your highest conviction trade at this moment right now is a tough spot but i like smith wesson, the guns. Dave, well speak to you soon always great to talk to you. All right, thanks. Dave portnoy. Tim seem moymour, what do you tk first of all, Warren Buffett is i definitely call him an investor, not a trader yes. I think el president e brings up good points about accountability Everybody Needs to look in the mirror say what is my risk profile. If stocks are on the verge of bankruptcy, theres a reason for it the funds mentals are not going to change overnight. Airlines are a good play i have to say if the airlines i owned were up 400 even off the absolute bottom, id be probably 30 up from where they were at their highs. Im not sure how the math works. But theres been a lot of vilification of robin hood and some of these day trading platforms. Theyre not big enough to move the market with some of the names that have been out there so it comes back to fundamentals will win the day we know people are staying at home day trading if they have got nothing else to do they have stimulus checks. But this is i dont think theyre moving the market per se i think certain people are moving stocks that can be moved around still highly entertaining, guy. I dont know about you, but you could take it with 10 grains of salt but its really interesting. No, hes introduced i mean its probably true, hes introduced an entirely new audience of people to the stock market for that alone, thats a good thing. Now, i think theres some dangers inherent with that, but as he pointed out, people need to do their homework he also said, and i think it was really important, you know, when this whole coronavirus situation is rectified, hes probably not going to do this anymore i think thats important to remember but he has introduced trading, investing stocks to a group of people that but for him would probably ner he enevavbe interested. Fast money is back in two its a thirteenhour flight, thats not a weekend trip. Fifteen minutes until we board. Oh yeah, we gotta take off. You downloaded the Td Ameritrade mobile app so you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. Because when you want to create an entirely new feeling, the difference between excellence and mastery is all the difference in the world. The lexus es. A product of mastery. Experience amazing at your lexus dealer. Try natures bounty sleep3, a unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. Swithout even on yoleaving your house. Just keep your phone and switch to Xfinity Mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. 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If you didnt think the money printed was going to go about your before what the fed did today buy some bitcoin and hedge yourself. Guy. Bitcoin. G. Twitter. Mad money is up next. My mission is simple, to make you money im here to level the Playing Field for all investors. Theres always a bull market somewhere. And i promise to help you find it mad money starts now hey, im cramer welcome to mad money. Welcome to cramerica just trying to make you some money. My job is not just to entertain you, but to educate you. So call me or tweet me jim cram cramer this market is the most feast or
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