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tv   Fast Money  CNBC  January 5, 2024 5:00pm-6:00pm EST

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plus we have icr, plus c.e.s.,. >> and bank earnings on friday. >> and cpi. >> right, right. that will do it for us here. >> "fast money" starts right now. live from the heart of new york city's times square, this is "fast money." so go apple, so goes the market. the major averages struggling out of the gate. will it drag the rest of the market down with it? we'll debate. plus, stalling out. one year ago the ev boom was all the rage, but today new challenges holding back sales growth. later, a bearish to bullish reversal by one of our traders on nvidia.
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and maplebear blues. i'm melissa lee live from studio b tim seemo, steve grasso, dan nathan and julie beale on the desk tonight. apple with a big drag. much more on that coming up. electric adoption is showing signs of fatigue. phil lebeau takes us inside the numbers. >> a lot of people were asking, what is wrong with the ev market? >> it's growing, just perhaps expectations were getting too frothy in terms of how quickly it would grow.
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look at the growth compared to '22 and '21. it's been steady. it might get close to 9.5%, 10%. tesla is the stock i want to show you. sales overall deliveries were up about 33% worldwide, up 25.4% in the u.s. they've had steady growth, especially when it comes to the model y and the model 3. has the dominance eroded? yes, largely because there's so many other evs in the market right now. this is the comparison of evs versus hybrids. hybrids have outpaced evs over the year. evs are about $so,000, on average, more expensive than hybrids, at least at this time. you have tesla at 55.1%, then
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hyundai, kia, gm, ford, volkswagen. they're all growing their sales, but when you look at gm and ford, once they said they would defer some of their ev investment, that was part of taking the bloom off the rose, if you will. finally, i have to look at rivian, fisker and lucoulucid, know how much they were up? 151%. they are growing sales, but the pace is not what many thought it would be back in 2022, starting 2023. >> phil, i want to get to hybrid electric vehicle versus ev. is there a since when you using that customer, that customer is
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more likely to go to hybrid? it seems like they're going faster to hybrid? >> yes, here's what i hear from dealers. increasingly customers are saying i'm interested in electric, but i'm not quite there-to-for taking a full full. how about a gas/electric hybrid. ford has the most offerings for hybrids among the big three. what i'm hearing is customers are more comfortable, partially because of price. they want greater fuel economy, just not ready to go all the way to electric models. the big thing is pricing. you have to have more evs, coming closer to $40,000, $30,000. until that happens, you will have a limited market. >> do you think, phil, that the
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major automakers got offsides in how they position their portfolios, going too fully to evs? >> well, look, jim farley pivoted. gen motors is picking with its strategy, i have the ice portfolio, and the ev portfolio. the pressure will be on gm, that their battery sales, which they've had problems ramping up production, can they finally get it together in 2024? people will say, okay, you have the blazers out there now, can you ramp up deliveries of that? the silverado electric is out there. i've never had anybody say, where is the silverado electric? some were delivered late in the fourth quarter, but it's low on
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the radar. phil, thank you, a little great to see you. phil lebeau. >> you bet. tim, do you think it's a misstep to align to evs, and nothing in between? >> especially when we're getting daughters points about byd, and as much as it was an exciting story, their story has hybrid. gm, you would think that detroit would be more focused on hybrid. it's easy to say this today. i get it. ev has a story, certainly a sexy story, but when you consider the powertrain mix, and ability to utilize a lot of their infrastructure, and again, where tesla and byd, these are vertically integrated companies. in a lot of places, detroit has tried to move very far away from that. the hybrid keeps them in their wheelhouse.
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it's where the customers are going. >> do you think it was more political driven why they companies went that way? i feel like there's a healthy amount of that, right? i think it's 80% pushing ford and gm to get certain benchmarks, what is the level? 20? 30? >> you have to lower emissions. >> so they can own that market. tesla owns the ev market. they could really own that market. it makes me think about what critical element goes into these cars. that's a whole other level. lithium, cobalt, nickel, all those things you don't need anymore, or not to the extent for an ev. its i think it's better to go to
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hybrid. i think ford and gm could win. >> all of those pillars have started to come true. when you really think about it -- we've been debating this stock for years now. a lot of it has had to do with valu valuation. here it is, three years later, it's exactly the exact same spot where it was. the s&p in that time period is up 27% it's trading the exact midpoint of that high and low range. there's a healthy debate going. if you want to look at someone like me, obviously you guys -- you think i've been notoriously bearish on this company for a long time. >> it was your acronym. >> it was. both sides have been very right on this story. i'll tell you why something has to gift. three quarters of a million
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dollar market cap. interestingly, if you plot them all, they're all basically where they were trading three years ago. one has a valuation that sticks out like a sore thumb and is the one to come after. >> i think some of it is rooted in the stock market. again, the valuation is because of not only i just think the buzz and the hype around it, is tesla so far out ahead? no doubt, but you look at the companies going out of business or about to be there, and first of all, they came public in spacs, where no one had to check the numbers, tesla five years almost went out of business. i'll say it this way in term of their balance sheet. maybe that's an exaggeration other than to say i think their finances were very, very much stretched, and i think the capital markets allowed them through the share price to raise
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money. even with the best of them all, you look at the other pure ev players, they're struggling financially. >> you thought about who else had these evs, tesla was a sexy car, et cetera, but you didn't think hybrids would be the competition because the price tag was way too high. >> the prius took off easily, and i thought that was the ugliest cars. i think that's what held evs back, because of the pricing. it's not even just regular hybrids, but the plug-in hybrids
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that allow you to go to the gas station, but if you want to take a trip two to three to four hours out, you can do it with zero anxiety you're doing it with less need for the huge intense batteries that are pretty negative for the environment. to me, is the hybrids make the most sense. it's all about pricing for consumers. >> our next guest says barriers to entry into the ev market could call the engine into question. alexander, great to have you with us. a lot of car makers, and i'm really thinking of tesla, they're cutting price, thinking consumers will come to that point. what does research show for consumers to make that trade-off, to actually go ev. i mean, does price make a
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difference? tesla said, $10,000 less, would that move the needle? >> absolutely would move the needle. as we've been discussing, price is a really important issue when it comes to how consumeers think, are they going to purchase a certain vehicle? it's more than price. are most consumers willing to pay more for what they perceive as a compromise? whether it's the distance they can go, refueling, and for every dollar they spend they're getting less convenience, less mobility out of that. so we already have a lot of incentives associated with buying an ev. the price comes down also from the manufacturer. so we're seeing all sorts of price enhancements for the consumer at this point. do you think that it's enough, or do you think the ev market will constituent hit a road bump, so to speak, simply because of the trade-off, and
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not willing to make that traitoff? >> yes. we're going to see -- we have different mandates in various states, as well as desires for federal mandates in order to have evs be the primary vehicle. we're not going to be able to hit those, because consumers aren't ready to go there. right now we have roughly about 60% of everyone who purchases an ev, saying the government incentive, as well as manufacturing incentives were an important part of that decision. if we ever get to a place where we take away the incentives or can't get the price even lower, you'll have a much smaller market to go for. people love their evs, but the compromises they have to make, especially when it comes to, is there a place i'll be able to charge and not get stuck at, because i've heard so many stories of others that love
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their evs, but are satisfied or maybe even disappointed with what's going on with charging and other aspects. >> alexander, it's tim. thanks for joining us. how about some of the sacrifices that the manufacturers have to make? i just want to get into the structural dynamics -- we keep says ice, but for mo folks at home, that's internal combustion engine, for folks at home -- these are companies that get down to the sales force, and tesla and rivian is famous going straight to consumer. the way they're set up is very different. is that part of hybrid, you know, the one that wins out? >> i think that's certainly part of it. dealers know how to sell hybrids and ice vehicles. there's still a lot of
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difficulty in nose what are the right levellers or things to say to motivate that sale. so they know how to do that, but more importantly, consumers have an understanding of what they need for their own personal mobility. they know i have to go here, here and here. i want to do it in a certain way. tesla has found a lot of success, because they didn't sell an ev. they sell a sports car with best-in-class performance. whenever the consumer stepped on the accelerator, it was salve ir, because it was more responsive and more fun to drive. this is why tesla found success and everyone else struggled, because tesla was selling something that was that a compromise. it was best in class. if we're going to try to continue to sell evs, simply because it's electric, we're never going to see sales in numbers that would be 20, 30, and heaven forbid in california,
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by 2035100%, we can't get there. we need to make sure we address price, infrastructure, and how consumers use their vehicles today. >> we are not a political show, alexander, as you know, but you had some political commentary embedded in your survey which i thought was interesting, which shows make more reluctance to buy. people associate evs with democrats? >> it is an aspect to it. right now, there are a number of buyers that -- when everybody looks as anything in the consumer world, they give it a personality. one personality that's emerging in the ev market, is that evs are democrats, progressives. there are a number of consumers who would love what the ev has to solved, but are actually rejecting it because of the
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imagery and personality that's been emerging. we've been trying to caution, saying, please let's try to keep all of this, you know, talking about how evs have to be what sells, otherwise you're going to make it political. if you make it political, you will remove potential buyers from the whole situation. that's proving to be an imaginary barrier to the real consideration. >> alexander, thank you for joining us. interesting finding. >> thank you, everyone. thank you for having me. gm or toyota? in the context of this conversation. >> okay. that helps. >> definitely toyota. by the way, julie's prius has been redesigned, and apparently pretty sleek and sporty.
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the point being that i think toyota is in the driver's seat for hybrids. i think the valuation is interesting. i own gm, so i believe that the story we have tonight is very good for gm, if you think about a company that's been getting zero credit for the internal combustion. you're almost being punished by it in the valuation, but i would on the would you rather. >> phil came out with one of his records and think own the market. i think you have to buy the stock. the other ones, yes, they could bound out of a -- and democrat versus republican, the truck, there's no way. >> i'm going to do that, actually. i'm not playing your game.
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if i told you in 2021, the consensus was 50% revenue growth, 25% gross margins and volume growth of 80%. flash forward three years to 2024, to start that year, that the expectations were for 25% revenue, 22% earnings growth, 25% margins that have gone to 19% over the time period and volume growth that's only 22%, would you think the stock is going to be higher, lower or the same? which it is right now. >> i think we would all say lower. i think he's changing the narrative to charging, so that could be a $5 billion business and growing, but i agree with the way you said it. >> in between there's a rob otaxi. >> butted hybrid thing is more
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of a thing. people who buy hide britain. i had one. it was fantastic. people are opting, because if you live and drive 30 miles locally, that's a great alternative. you still don't have to go to the gas station, but you have a full tank of gas. to me that narrative could fall away quickly. >> that also means that gm has more lifting to do than the other, julie. >> absolutely. i think the problem they have is, you know, we take it for granted how easy it is to theed switch off, but it's actually complex. i would agree, i would much rather toyota. not only do they have the experience branding these cars, but they know how to make good cars. i think that's been a challenge for a lot of the american players. they're not selling them as the sexy street rods as tesla, and they don't have positioning to help them differentiate.
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i think that's the real work gm has to do. create product differentiation. >> just curious, tim, when i posted would you rather, you said in this context, those are the parameters, i understand them. if just given carte blanche d. >> gm is the most discounted and punished by their core business, which has never been run better. >> is it time to book your ticket to ride? we'll debate that. constellation brands jumping after this earnings report. how beer played a stars role when "fast money" rolls on.
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with qualifying internet. welcome back to "fast money." constellation brands popping after an earnings beat. the company dropping an 8% drop. the wine segment will continue to face near-term headwinds.
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how concerned should we be about the revenue miss? recently other names reported similar challenges, or are the stories too different? >> if you look at the beer, wine and spirits space, we've been concerned about it for a while, there was a period coming out of covid, the luxury could pass on the pricing. the luxury factor of the asia buyer and some places that didn't care, but what we're seeing in the segments, especially with constellation, beer has been in consolidation for a long time. the fact it's moving into wine is interesting, and the spirits maybe stabilized. i think constellation is a fantastic investment. i think diaggio is more interesting.
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he's been able to hold on to those gains. >> i think they stay pretty loyal to where they're going, but the stock was below all of its moving averages. it's popped above. if you look at the 200-day moving average, that's where you want to use that exit. i think -- if it fails. i think the guidance, that was a big guide lower on net sales. they were looking for flat or sideways, and you go to 7%, so, to your first question, i think it's something to worry about. beer up, wine down, a zero-sum game? i think with all the glps, i think that plays into it, too. >> we obvious play, if i told you the news, what would you guess the stock price would do? i don't notice if you think constellation brands would be up sharply, julie, would you?
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>> i was reading the report, but if you look at where the stock is trading. we all know wine sales having very, very soft. they continue to do so despite all of my hard work. it's important they address they problems, i think management changes are probably ahead for these businesses capital allocation is moves towards more -- net-net, i think at the independent of the day, the earnings outlook is pretty good. >> modelo brand was budweiser's beer, when they were forced through the merger to sell off assets. it went right to constellation, where modelo and -- them a most terse. more to come.
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here's what's coming up next. >> announcer: the countdown to bitcoin effs it so. we'll sit down with a top industry insider to give us the lowdown on how this would change the crypto university. plus, apple going from magnificent to lag-nificent. will the tech giant's struggles ripple through the rest of the market? we'll debate that coming up. we're back right after this. fresh, warm hot dogs!
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welcome back. put your seats in the upright position and seat belts on. airlines reaches cruising
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altitude. they're all climbing even as energetics higher, crude oil creeping up 3% this week. how are you trading airlines, tim? >> i think there are stocks you trade. look, we have a move in this space. sometimes it's indicative of where people think the economy is going. i don't think you have to go too far afield from delta air lines, which is definitely where i trade in and out. >> the only headwind is geopolitical, there's so much tensions people may not want to have an international flight. maybe you go with a domestic, jetblue, something closer to home. you're more apt to fly down to florida from north versus europe, so the international
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carriers, that could be something to watch. >> julie? >> where i would like to be is probably with tim on delta. if i think of the mix of their business, 45% is generated in the main cabin, and the rest in the front or on the credit card. so i think you're seeing the right customer, and i think it insulates them from the downturns we're sieve. i also think in terms of capacity, the airlines have been the most proactive and thoughtful about how to manage their capacity expansion. >> if you think the consumer may have difficulty, you may not want to be in airlines. >> back to where they get after their revenues and such. real quickly on crude oil, it is interesting, it looks like it's trying to hit a bit of a bottom. maybe that is geopolitical
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tensions, but today, you see a lot of market down, and lines up on a day that was up, i think that caught all our eyes. nvidia shares rebounding, the chart piquing or interest in one of our skeptical traders. the bitcoineft is closer to reality than ever before. we'll take about when to expect it and how that take advantage of a new way to play cryo. we're "fast money" in two. i know what it's like to perform through pain. if you're like me, one of the millions suffering from pain caused by migraine, nurtec odt may help. it's the only medication that can treat a migraine when it strikes and prevent migraine attacks. treat and prevent, all in one. don't take if allergic to nurtec. allergic reactions can occur, even days after using.
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welcome back to "fast money." stocks continue to rebound, but the major averages locking in losses for the first week in ten. the has talk up about 0.10. maplebear drops to an all-time low dating back to it's opening last year. and palantir falling nearly 2%,
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jeffries saying the narrative is over-hyped. meantime, a tough start to the year for apple. the move is part of the reason the major averages lost their nine-week winning streak. are we ought a point where so goes apple, so goes the market? >> yeah. i think that's a good thing if you're app.le bull running into the third quarter, and the sentiment has gotten bad. i think it also says a bit about how large tech investors see the opportunity in 2024 for an apple relative to some of the megacap peers, because they don't have the geh-a.i. component right now. >> i'll just talk about apple,
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the allocation choice. i think you can make an argument that apple's weakness, as long as it isn't extraordinary is an argument for the broader market and broader economy. we a know the year that was last year i don't think is the type we'll see again for the magnificent seven. have been microsoft and apple participate, but not necessarily going through the moon and falling through the floor is just part of the market. i think this is part of the market for the equal-wait weighted markets. >> steve? >> this has the propensity to break through, but the level of support is around the mid 160s, so 165 is probably an area where you want to pay attention to the stock. if it breaks down, it can be a precipitous drop. we have all seen everyone bet against apple time and time
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again. in bad markets, everyone looks for the balance sheet. in good markets, everyone looks for the balance sheet. >> so a win-win? >> i think apple is the ultimate defensive stock. yes, as the market goes, but between the market and appear 8, as they go, so goes the overall market. i would rather see it break the 165 before i say lights out. i'm still a believer. >> how about you, julie? >> you have the consumer and then enterprise. i think taking a breather here is a possible thing for the market. you still have consumer exposure. services are great, but you need the iphone sales to be there. until china starts to work, this is probably a tough place to see, but i've been an apple holder for 11 years.
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i look for the opportunities when it dips down. i think it's just a core holding. >> you mentioned, they don't have gen-a.i. yes, all they have to do is talk about it. gene muenster was talking about it on the show. i think he's right. that was your joke last night, but spatial computing, i just think there's a lot of opportunities for them. apple has never led in innovation, they catch up, have a better product, and they have an ecosystem that works. i don't want to sound too bullish. they do need a couple turns off the valuation, in my opinion. and when it's under-appreciated, that's when it sets up pretty good.
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>> and what we are willing to pay for stocks. the story with apple is -- nothing has changed with apple. they've been slowly losing sales, certainly in the iphone progression, but 30 times for apple or just 25? that is the big deal. i think that's what the market will wrestle with next year -- this year. i know. i said that last night, too. we've have an offenses place to get in on the action. and next frontier reports after the bell, saying the s.e.c. is set to make a decision next week on spot etfs. how how will it change for crypto? "fast money," when we return.
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and find out what a reverse mortgage can mean for you? - [announcer] call right now to receive your free no-obligation info kit. call the number on your screen. welcome back to "fast money." nvidia has been on a tear the last year. one of our traders is finally joining the crowd, but doing it with a twist. dan, how many times did you try to short nvidia? >> a couple times, and a couple times it worked last year, when it gap up to $400, and spent the
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second half of the year trading between 400 and 500, so there's plenty of money to be made. i wasn't pooh-poohing the process, but just the enthusiasm around the stock. i was thinking about this yet. i asked braxton, if you look at the technical setup that it's defending, look at the rsi. the stock has corrected without correcting relative to the market. nowi budling up against the prior highs. what i find interesting is, yes, it's growing into its valuation. i think it sets up as a good trade using options. no, no, you get your time, steve, but it sets up as an interesting trade.
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40% of their customers don't report until late january. i don't want to be there when they shoe deceleration. i was looking at the options. that is very near a one-year loan. if i want a directional risk everybody so i want to look at cautious $16. that's 3% of a stock surprise. this stock moves, and then i have more than a month for it to play out. again, this is a trade, it's not an investment. ite not doing an about-face. i do think in late february when they report, they're going to show deceleration. i think that will be the top of the stock for a while. >> i did have a question. by the way, i feel like i was
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tell ported back into an old episode of "options actions." i like the call and i hear you as a trader. i think we no that nvidia was outperforming, but i feel like, are you investing in this neighborhood? >> well, right know with you a nasdaq at 3%. that call lets you hyping in there. you could find this monday in the trail the i lie the optionality of the trade. >> going back to the original notion, we're defendant ratingle
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sense that the groups move at a time? >> i think this year, and by the way, happy new year, guy, i think you have an enew yorkous year to peck stocks i do think if we're trading this market, i think semis has a group will largely play together. i think nvidia will be turbocharged. i do agree. people want to buy weakness there, too. >> are you still in micron? >> no. i think it's still a good bet. if a.i. really hits that will need the overall demand, but nvidia, 20% to 25% is database, and that's china's revenue contribution. so, i think dan's on to something, very well thought out. i like that you didn't take one
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side or the other, playing down the fairway. i think an nvidia could sell off here. >> no, i just this is that's a 2024 story. think about 40% of their revenue and where it comes from. it should work into early february, but i don't want there for the earnings. coming up, the crypto clock is ticking. investors waiting with bated breath. how does it reshape the crypto landscape? and what our next guest is calling the next battle grown for the space. that's ahead. to be like wow! what did i do to get here? (tense music) right. work. you worked hard and it's time for a bank that'll work hard for you. everbank performance savings is built to put your money to work with some of the highest rates in the country .
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welcome back to "fast money." crypto investors still eagerly awaiting a spot etf reports out in the last hour, that the is telling peep to file final paperwork. after approval there's a new battleground in the space. i want to get to the battleground in a minute. now we know the vote is scheduled for sometime next week
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on these various applications, is this going to be a sell the news event? >> well, first of all, i think we need to get a little chimney, like the papal conclave waiting for the white smoke. i never want to talk about etfs after this. i don't think this is a sell the news event. here is why. let's talk about flowing. i love talking about nows and that's how we figure out sentiment. if welook at what happened last year. 243 million of flowing into crypto, 2.2 billion for the year last year. it's not stop. there's demand for bitcoin, when the new products launch, we heard there's one issuer feeding their fund with $200 million. rumors that blackrock is coming
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in with 2 million. all of that is leading to bitcoin. i don't think it's a sell the news event. >> so what's the ballots ground? >> fees, baby, we're all about the fees. here's what's interest. fidelity came out gate, 39 basis points. that's pretty low for a special etf. we were thinking in the 70 to 100 basis point range. grayscale trust is 250 basis points. fidelity at 39, invesco and galaxy are zero until the first 5 billion in a.u.m. so the fee game will be interesting, because they're all the same thing how much will brand member and how much will be about fees?
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>> thanks for joining us. what's after bitcoin? you know, we begin the process for moving out crypto, in terms of liquid and exposure bit counsel has the most clarity. it's not a security. there's no interpretation as such i think bitcoin needs to take time just because there isn't that long track record. as of two years ago, bitcoin is 15 years old. the first block was mined 15 years ago. it's been around a long time. ballots tested. markets are deep, very liquid what we do know is there's tremendous investor demand.
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today there's over 50 billion in global a.u.m. now 38 billion of that, is in bitcoin, but ethereum, and then solano, and a long with others. i think it will take the time for the market to get comfortable. great to see you. thank you. up next, we have your final trade. ( ♪ ♪ ) who do you think taps out first? i think the duck goes the distance! alright, you about ready to get out? what's this? a hospital bill?! for a thousand bucks?! gaaaap! did this goat just say 'gap'? he's talking about expenses health insurance doesn't cover. but with aflac, you can get money to help close that gap. aflac, huh? -aflac! -ahhhh! okay! oh! duck - 1, goat - 0. get help with expenses health insurance doesn't cover at aflac.com
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time for the final trade. tim seymour? >> we talked about the spirits company, some of the pressures there. i think diaggi oo has some pricg power. i like the stock here. >> marriott international. people have jobs, and it's a very interesting chart. >> julie beale? >> we have high yields and high grade, this is a leader. >> dan nathan? >> you know, mel, we love "fast money." >> yes, of course, we do, but
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that was always be our baby. it was kind of fun, fell receipto. i think nvidia sets up as an interesting trade. >> thank you for watching "fast money," the first trading week of my mission is simple. to make you money. i am here to level the playing field for all investors. there is 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. i'm just trying to make you some money. not just to entertain but to educate. sometimes we get a number and everybody just shrugs. it seems to

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