had research on talking about this, can the consulting business pull through that a.i. and in in a way that keeps ibm over 170 a share. >> we do see texas instruments under pressure, as well. and a number of semi stocks down in sympathy in afterhours right now, so, continue to monitor that trade. that's going to do it for us at "overtime." >> "fast money" starts now. live from the nasdaq market site in the heart of new york city's times square, this is "fast money." here's what's on tap tonight. netflix and thrills. shares of the streaming giant soaring to two-year highs after posting a huge beat on new subscribers and for the first time we can remember, the company's conference call is under way during our show, right now. and we're listening in, bringing you all the headlines. plus, china on the rebound. talk of potential stimulus giving stocks in beijing their best day since july. but are the measures too little too late? we're going abroad for that trade. and shares of d.r.horton seeing their worst day since the depths of the pandemic. and they are taking the rest of

the home builders down with it. has the bottom come out? we'll dig into the numbers to find out. i'm melissa lee, coming to you live from studio b at the nasdaq. on the desk tonight -- tim seymour, courtney garcia, dan nathan, and guy adami. netflix's big beat. they added 13 million subscribers. they announced a big bet on live events earlier in the day. the conference call kicked off 15 minutes ago, an earlier start than usual. julia boorstin has been listening in. >> that's right. the call is under way. netflix kicking off the earnings call by talking about the wwe deal it announced for "raw," saying this is a great fit for them, because the intersection of drama and sport, what they called a sweet spot of sports entertainment. they said that wwe has been historically underdistributed internationally. and they have pretty broad international rights. but they did say this does not signal a change to netflix's

sports strategy. they had no comment on whether they would be interest in nba rights. so, seems like looking for the other opportunities. this all comes after the company reported faster than expected 12% revenue growth on a big subscriber beat. more than 13 million new subs, 4.2 million more subscribers than analysts anticipated. this is the growth of the company's ad supported lower cost option. they said it's now 40% of all netflix signups in the markets where they do have that ad option, and that ads memberships are up 70% sequentially. now, the company said it is not interested in acquiring linear assets and they don't believe that further m&a among traditional entertainment companies will change the competitive environment. now, beyond the opportunity they talked about in advertising, they say it's still early days, netflix did talk about improving their core series in film and also the growing engagement they're seeing with their video games and the opportunity that lies there.

melissa? >> julia, i do have a question about the conference call itself, in the past, they've not taken live analyst calls, so, because this is earlier, are they taking live analyst calls? >> well, i'm watching it streamed right now on my laptop on youtube, so, of course, we've been talking so much about streaming on netflix, traditionally what they've done is, they've had one analyst interview the various executives and posted that taped interview on youtube. what they're doing right now is, they're live streaming it on youtube. they had analysts submit their questions in the past hour since the call -- sorry, since the earnings were announced before the call got under way, and then they're having the head of invest relations read those questions to the various executives. so, that's what's happening right now, streaming on youtube. >> all right. julia, thank you. julia boorstin. netflix shares up by 8.6% and dan, we were chatting earlier and i thought this was a very good point. it is interesting how much of a beat it is on subs.

how volatile that number can be from quarter to quarter. >> yeah, and digging into the numbers and listening to julia talk about 40% of the new ads coming from ad-supported, that is the change in the story. think about when they introduced that ad tier, it was very near the low end of the stock. after the stock went from $700 all the way down to, what, $165 or something like that, that was in the throes of the selloff in 2022. they introduced this tier, i think we spent a lot of time talking about it, analysts, investors, is that it? and a lot of folks said they were never going to do it. think about this. ten years on, they were a 32% growth margin company in 2014 and now they're expected to be 42 1/2 this year. and think about what high margin that business is, and they're basically capturing a lot of those folks who were not paying, right, on those family plans and the like. this is a new era for the company. it's really interesting to listen to the sports stuff and live and how they're thinking about that, relative to the

prior ten years when they just spent, you know, gobs of money on original programming. and this will help push the subscriber growth along. but the lack of visibility, to have a 9 million estimate and come in at 13, that's pretty remarkable, and that might just be the new place that we are in with this new ad-supported model. i think they really like it here, let's be clear. >> we've actually had a lot of viz bltd into the gains they've been making, you know, just a couple weeks ago, we had a report saying how many subscribers they were adding on the ad-supported tier, yet here we are, rising again on this news, basically. >> yeah, 13.1, and the expectation was somewhere around 8.5, et cetera. some of this is also the partnerships that they have with people like t-mobile and, so, on some level, if you've been with t-mobile, you've actually gotten netflix as part of the package, you've been downgraded possibly into an ad tier, so, some of the strength there may be people

getting downgraded so, you have to really read into this. but the economies of scale here are staggering compared to the piers. i think the upgrade cycle is just beginning here, especially when you look at the operating margin they've guided for '24. they gave a fiscal q-1 guide of, let's see, where are they going to be, 8% above where the street was. that, to me, is part of what's going on ere. i think, as someone that was long the stock and sold it way too soon, this is one of those ones that -- that i think you're just beginning. they're emphasizing where they're spending on content, where their peers are not and they have no interest in linear m&a. >> yeah, to your point, couple weeks ago, we talked about that, so, i thought this run from 440 maybe to 480, sort of encompassed all of that. i was definitely in the camp, take profits into earnings. that was the wrong camp to be in. but we've liked this stock for quite some time. the question is, what do you do now? is today the day to take

profits? do you get it back and fill? let's hear what they have to say, see what the type of volume is tomorrow, but this is an extraordinary quarter by any stretch. >> and i think what's interesting is what's boosting this is the ad-supported tier and cracking down on the passwords, but this wwe content is really fascinating, because they've had really two big live events, one was the chris rock comedy special and then they had, i think love is blind was really poor for them, people waited for hours and couldn't get onto this live event. so, it will be interesting to see what they can do with this and if they are able to be successful in the live realm, that's going to open up a lot of other possibilities for them, because content is going to be key to keep the subscribers going. i think they are saying, oh, this doesn't necessarily mean we're getting into all the sports, but with all the sports documentaries they have, they have the demand there, and it's just going to get their foot in the door. >> the way they talk about sports content is very different. they call it sports adjacent. so, it doesn't appear, just according to how they're phrasing the language, seems

very careful they're going to dive into sort of the bidding war for live sports necessarily, but going in carefully, into events that can be probably rebroadcast that are more entertainment events at opposed to live sports. >> is wwe, is that a sporting event or is that -- >> excellent question by tim seymour. >> it can be both. >> i mean, back in our day, i mean, i don't know in the super fly is still alive. >> i don't think he made it. dusty rhodes, you know -- >> i think to mels point, it's about the ecosystem of content. they are doing the documentaries around that. what is attracting a viewer to stay there and not just be there for the live stuff, but the other stuff -- i'll tell you, i think this is the year this happens, okay? we just talked about the gross margin for a netflix, is going to be at its all-time high, 42.5% or so. think about spotify that's leaned into podcasting, that's leaned into audio and they have 25% gross margin, okay? this is a $36 billion enterprise company today, if this stock is

up 10%, this is netflix. i think the -- these two assets together get all of the, basically, the cost savings of that and then create this kind of 360-degree, like, sort of ecosystem as it relates to content. i think that's where this stuff is going to go. when you think about a company like netflix, remember fang, we used to talk about fang -- >> wow. >> this is -- >> forgot about that term. >> i made it maga, because we got rid of it -- >> of course you did. >> got rid of that, because it's an inconsequential company as it relates to the broader market. i think we need a beefing up to do to compete with the -- >> the netflix spot. >> that's something that should happen and that helps them better compete with some of these behemoths, and disney might have to get in the audio game and stuff like that. i think you're going to see some folks that have to better compete. >> let's get back to julia boorstin with an update. >> yeah, just hearing a conversation on the call about

whether or not netflix is going to change its strategy around content, and they did say that they are thrilled that the studios are more open to licensing their content, and saying, i'm thrilled to tell them we're open for business. big picture, we're not going to change our strategy, but they are interested in licensing more content. they referenced "suits" and said sometimes they can bring value to content that has run elsewhere or created by other people. back over to you. >> all right, julia, thank you. julia boorstin. "suits." i bet you watched it when it was live. >> he probably was cast in it. >> look, i -- my 15-year-old daughter has binge watched "suits" and -- >> brought to a new generation. revitalizing content. >> there's no question that's what they have done. and that's what netflix has always done. you think your competitors are going to stop licensing to you so you can make and remake and put a lot more profitability on series that maybe they did not? and you notice they're not necessarily doing it in reverse.

so, it's a fascinating time, again, live entertainment, courtney brings this up, i think there's a massive opportunity here, and i think netflix has been out there and that's what wwe is. >> all right, we will continue to get updates from that conference call from julia, but in the meantime, let's talk broader markets here. the s&p 500 with a record close, third day in a row. the nasdaq gaining half a percent. the dow dragged down by losses in 3m, home depot, and goldman sachs. earnings sentiment so far has been muted, but netflix's results a sign perhaps big tech will deliver and continue to lead this market higher. what do you think? >> yes. and for some, and i bet dan's got a view on this, that's not necessarily good news. i actually think it's fine, especially when i think ultimately we're going to get through this period where, first of all, i think there's a lot of people on the sidelines, we talked about the money market funds, the cash, and what that could do to come into the market. but the fact is, amazon, meta, netflix, and, you know, for sure microsoft, and i'm not so sure

on apple, but we'll get there, megacap tech is leading the way. if you look at this move we've had in the market since october 26th, you can see the nasdaq is up almost 25% in 59 sessions and semis are up almost 39%. and i would go back to also that taiwan semi announcement, and even what nvidia said at ces and what we're going to hear from them. the spend, the cap-x spend, megacap tech, there's no reason to believe that the earnings power of these companies is not going to dominate all the other sectors and i think it's going to be good. >> one of the points that peter made yesterday was that the russell 2,000 are the customers of big cap technology and so, can you have a russell 2,000 that is weak and a megacap rally that we're having right now? >> and that's been -- the answer is, i guess, clearly yes, because it's been happening for awhile. how long can it continue? i think that's the better question. and again, if you believe unemployment is going higher, and right now, i think, 45 out of the 50 states or something like that are seeing a rise in the unemployment rate, i think texas is a built of an outlier.

that's not been a good trend. if unemployment starts to tick higher, small caps should be under pressure, especially since bank credit seems to be contracting, which, i think, means it's going to hurt these big cap tech stocks. but right now, they're impervious to everything. >> i'll say this to tim's point, netflix is always such a weird outlier. that was kind of my point about m&a. they live in their own world. i'd be concerned about a company like microsoft. not too different than when the stock was trading at all-time high in july into what we would say their calendar q-2 earnings were. the stock was up -- >> july, is that the 4x warning? >> well, yeah. it was when the height of a.i. excitement was there, and what did the stock do over the next couple of months? they announced the co-pilot pricing that was going to happen in the fall and the stock sold off 15% over the next two months. here we are, the stock has rallied from the fall, 30% or so, right? it's trading 35 times this year,

about, i don't know, 25 times next. it's really expensive. the exuberance around the story is universal, and so, to me, i just think that if there's any disappointment, in the commercialization of these products is not going the way investors think right now, you're going to have all of these stocks sell off, just because the sentiment can't continue like this. you need the back and forward. >> i hate to be that person, but if you're worried about the markets, you want to be -- you pay a premium for a microsoft, right? if you think the markets are great, you probably think big cap tech is going to lead and you want to be in microsoft anyway. there's a bull case to be made for either scenario. >> why do you hate to be that person? >> why do i hate to be that person? i'm just not that person by nature. >> okay. >> you know that. >> and i think there is a lot to be said about that, right? i think people are very optimistic, and they almost like at these as a safety trade right now. but i think the question is, how many people have already gotten into them. that $6 trillion is in cash right now, it's not going into

the big names. that's money that people are nervous about, they're not being endiced by the idea that rates are going to come down. if it's going to go anywhere, it's probably not going to do to those areas. all the big money is overweight. so, what is the next catalyst to bring them higher? i'm optimistic they will have good earnings seasons, but i just don't know how much further that's going to go and i still think you need to own these things, but i think there's better opportunities. >> the move that dan's 359 to 312 to july, early septemberish, it's a $400 stock today, it's trading at 31 times next year's numbers. maybe mid to low teens eps, maybe at best, so -- it's gotten expensive. their own asset class, clearly, and passive investing helps these names, without question. but they really have to deliver at this valuation. >> i think you have a case where there are people that are going to chase into these names and might happen through this march/april period. allocations should be very strong here.

it could set people up for a pull-back that's, you know, not so great, but right now, i think there's a fomo dynamic with megacap tech. shares of texas instruments sinking. details from the quarter. and the latest from the conference call next. plus, all eyes on new hampshire. what the primary could mean for the markets, and if investors are ready for a potential d.c. shakeup. don't go anywhere. "fast money" is back in two. this is "fast money" with melissa lee right here on cnbc. at ameriprise financial our advice is personalized based on your goals, whatever they may be. all that planning has paid off. looks like you can make this work. we can make this work. and the feeling of confidence that comes from our advice...

i can make this work. that seems to be universal. i can make this work. i can make this work. no wonder more than 9 out of 10 clients are likely to recommend us. because advice worth listening to is advice worth talking about. ameriprise financial. you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪

so you can rise from pain. icy hot. the power goes out and we still have wifi so to do our homework.ain. and that's a good thing? great in my book!

who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network. welcome back to "fast money." we've got another earnings alert for you. this time, on texas instruments. sharing are dropping 4% after the company reported a miss on revenues. let's get to kristina partsinevelos with the details. >> they said that revenue decline was because of lower prices and not demand, but another disappointing forecast for texas instruments, sixth quarter of negative on negative comparisons. the company warning of a drop in industrial markets, with customers still working through inventory. industrial contributes 40% of total revenue, so, that's important. texas instruments, though, is seen as a bellwether for the

tech space. management did warn a flat personal electronics sales and a sequential decline in you a motive, which also contributes roughly 34% of total revenues. another big hit. and this auto weakness we've heard recently from microchip and mobile eye, and texas instruments casual tone im impacting other names, like on semi, nxpi, down over 2%. separately, gross margins for texas instruments coming down slight little due to the ill pact of under utilization rates, increase in inefficiency when it comes to output, but the company saying their cap x is study at $5 billion. i bring that up, because they were asked a lot of questions about the chips act. the company said they do get a 25% tax credit on manufacturing and have accrued thus far $1.4 billion and they expect another $500 million later this year, however, they do not know if

they're application is going to give them anymore money, and that was a big question when it came to cash flows. >> lower prices, kristina, means what -- their mix is different? >> when it comes to personal electronics stuff, they are cutting their prices to be more aggressive, especially when it comes to china, competition from china has been an issue and texas instrument has been quite aggressive with their pricing strategy thus far. >> all right, kristina, thank you. kristina partsinevelos. it is interesting phrasing to say lower prices, we're cutting prices to compete with somebody else, it's not because of demand, because they're in interrelated in some way. guy, we heard from mobileye, microchip, the sector trades down again and again. >> unless you are in the a.i. space, doesn't matter what you say. but again, if you had told me the first quarter guide for texas instruments would be basically $1.05 against consensus of $1.40and say, where's the stock, i'm like, it's got to be down 10% easy. it's actually sort of hanging in

there. should be lower, is my point. now, automotive and industrials, sign of weakness. what does that tell you about industrials? and what does that say maybe about the broader economy, x a.i. and all those things. i'm not saying texas is a bellwether or not, they made an all-time high in 2021, but it's something to look like. >> we've had enough p preannouncements from sector peers that you can see it's broad-based. it's not necessarily just here. and dare i use that term of green chutes. there's nothing about the guide here that tells you. so, it's not about a multiple, and you can make an argument the multiple's gotten more expensive. i think you priced in a lot of, you know, you certainly have taken the bloom off of what's actually been a pretty good run in the stock. not buying it tomorrow, but you're reloading. i don't think there's anything we've heard, going back to tsm earlier in the week, i think the cycle is interesting. >> watch out. based on what tsm said and the enthusiasm that we saw flow

through some of the parts of the s semi patient -- . >> no money left? >> if there's a reason people are going to see a deceleration in data center, a.i.-related, the whole space has massively outperformed and is probably due -- look at the way amd worked, intel coming back in the game, that stock has gained over a quarter of a trillion dollars in market cap this year alone already. there's as lot more "fast money" to come. here's what's coming up in ex-. presidential primaries are under way, but what impact could today's results in new hampshire and the election in november have on economic policy? we're digging in next. plus, stimulus to the rescue. beijing hoping to boost its own market with a cash injection, but will it be enough? the latest on the china trade ahead. you're watching "fast money," live from the nasdaq market site in times square. we're back right after this.

efa. (the stock market is now down 23%). this is happening people. where there are so few certainties... (laughing) look around you. you deserve to know. as we navigate a future unknown. i'm glad i found stability amidst it all. gold. standing the test of time. ♪ ♪ gold. every day, businesses everywhere are asking: is it possible? with comcast business... it is. is it possible to help keep our online platform safe from cyberthreats? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring to address operations issues? we can help with that, too. with the advanced connectivity and intelligence of global secure networking from comcast business. it's not just possible. it's happening.

all right, sheila, are you throwing a dress like a dad party, a birthday brunch, or a vow renewal for your dogs? yes! the right drinks delivered for any party. drizly. that first time you take a step back. i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy.

welcome back to "fast money." new hampshire voters casting their ballots in the presidential primary today, with less than three hours until the final polls close.

nikki haley, the last republican candidate standing against former president donald trump, who is widely expected to clinch a victory in the state. and though it's just the kickoff for primary season, our next guest says a trump victory tonight would solidify the gop race. for more on what is at stake, let's bring in dan clifton, head of policy research. great to have you with us. so, do you think he wins, do you think the gop nominee is in? have the fmarkets factored that in? >> if dm dm wins tonight, it's likely the republican primary is over. eventually, the donors will run out for nic can i haley and trump will win. that means 279 days of trump versus biden. probably the longest presidential election in our lifetimes, and his markets have factored this in. the most election-levered st stocks, and you can see f correlations. i'll give you one example.

the tesla stock, relative to the s&p 500, looks almost identical to biden's odds of winning, and that makes sense, because this election is a referendum on electric vehicle, and if trump wins, he's going to cut those ev subsidies. on the other side, you see it with the republicans, in particular, around immigration stocks. because trump could use executive powers to do immigration right at the begin, and you're seeing, as trump's polling numbers improve, you see the immigration stocks begin to outperform the s&p 500. so, we're at the very, very beginning stages of this pricing in, and what's interesting, the market is giving it 50/50 odds to both candidates winning. a lot of wood to chop and a lot of road blocks and a lot of speed bumps before we get to the result. >> what are the immigration stocks, dan? >> yeah, sure, so, you can look at the private prisons, motorola, which provides the equipment for the border security factors, so, those are

names that i would look at on the immigration side. and then, on the democratic side, immigration is still a big policy for them, so, more people coming in, so, something like automatic data processing, because you have more people working, or more wire transfers through western union, so, both sides have different ways to play immigration, but trump's would be very, very aggressive in closing that border down, and he can do it without an act of congress right away. that's where we think there will be a big impact. >> dan, it's tim. speaking of places where we probably will have congress involved, but fiscal friendly. and leave aside traditional definitions of who is fiscal friendly and who is not, i think there's a lot of guilt in the last 15, 20 years in our country. we spend so much time talking about how ratings agencies and dynamics around corporate governance for the u.s. government are changing and maybe one of the biggest factors in equitequities. so, your look into fiscal-friendly or not, and how you view it right now, who is there, who is where? >> it's interesting. these candidates are going to

tell you all the things they want to do, but they're not really going to have a choice, because of two reasons based in your question. the first is, all of the trump tax cuts on individuals expire. the obama care subsidies expire. both of them expire at the end of 2025 and whoever is president is going to have to deal with that enormous fiscal cliff. the second factor, tim, to your point, this is the first time that net interest costs have exceeded 14% of tax revenues, and -- in 40 years. so, once you hit that level, the market opposes austerity on financial markets. treasury secretary is getting around that by financing the deficit with t-bills, but we all know that that's not a sustainable strategy, particularly as reverse repos go to zero. so, you're going to be dealing with bond indivigilantes next y while you're trying to resolve those expiring tax cuts. and i think that's going to be the big challenge for whoever is the next president. and i would remind everybody, we do have to raise the debt ceiling in mid-2025. so, by choice, they all say they

want to do these great things, but the market is going to put a big focus on fiscal right in front of them and going to be forced to deal with that. >> quickly, dan, you mentioned the ev subsidies, but much of what's in the i.r.a., does that get, you know, thrown out? because there's a lot of money tied up in infrastructure and the belief the i.r.a. is going to inject money there. >> we think it's going to be hard for the republicans to take away a lot of the solar and bio fuel provisions. maybe there's something on evs, but the market will price in as trump being unfriendly to the i.r.a. and if biden's odds go up, you'll see a lot of those i.r.a. stocks begin to improve and vice versa, so, i think the i i.r.a. is going to be a good part of it. that's the wind and solar stocks, the ev stocks, the charging stocks, there's all different ways to think about the i.r.a., and they're going to be very much aligned with where the biden presidency is, and how they're going to trade in 2024.

>> all right, dan, thank you. good to get your take. >> thank you. >> what -- i mean, it's -- it's a long ways away. >> long ways away. >> v let's play it out. if trump wins a second term, what does it mean? it's interesting. you can make an argument it could be extraordinary inflationary. protectionist policies, things made here, inflation goes up. i think it's energy friendly. and one has to wonder, in terms of tariffs, do you have a reacceleration, renewal, whatever the word is, tariffs against the chinese, what does that mean for the tech trade? so, look, 280 or so days away, but people are thinking about that. >> are you getting questions? >> every day. every four years, i have the same conversation with all of our clients. but what's kind of interest, and our guest pointed out in his note how typically once the runner up is chosen, right, when we know who is in the republican party is going to be the candidate, there tends to be a selloff as we figure out what their policies are. this is one of the first times, we know what their policies are.

so, there's a lot less uncertainty this year than there is typically. and generally speaking, election years tend to be a good thing for the markets. i don't think it's anything to be worried about. yes, there are certain stocks, yes, maybe there's some volatility, but i don't think it's any reason to be uninvested. it's just going to be big headlines. >> we do have a kind of guide post for how each of these guys would operate for the next four years. the one thing i would say is what we don't know is the geopolitical stuff, and there are a number of hot spots right now. when you think about china, the middle east, russia and ukraine, those are all things, to guy's point, it seems like all -- actually all points lead to higher inflation going forward in a lot of those sorts of situations. so, to me, i think that we're going to have a lot of uncertainty. the economic uncertainty is not going to be there. when trump took over in 2017, he was handed a stock market at all-time highs, an economy that was humming along pretty well and that's what the stock market's saying right now. the economy's okay.

we can come on here and talk about, well, you know, this is going to pick up and unemployment's going to be here and inflation's going to be here and that geopolitical hot spot -- things are going okay. the s&p is at all-time highs. coming up, a boost for beijing. china's authorities considering a rescue package to help stabilize its market meltdown. but will it be enough? more on the china trade next. and we're still listening into netflix's conference call. rich greenfield will join us to detail everything he's heard so far. don't go anywhere. much more "fast money" in two. missed a moment of "fast?" catch us any time on the go. follow the "fast money" podcast. we're back right after this. th e to let in the lyte™. caplyta is proven to deliver significant relief across bipolar depression. unlike some medicines that only treat bipolar i, caplyta treats both bipolar i and ii depression. and in clinical trials,

movement disorders and weight gain were not common. call your doctor about sudden mood changes, behaviors, or suicidal thoughts. antidepressants may increase these risks in young adults. elderly dementia patients have increased risk of death or stroke. report fever, confusion, stiff or uncontrollable muscle movements which may be life threatening or permanent. these aren't all the serious side effects. caplyta can help you let in the lyte™. ask your doctor about caplyta find savings and support at caplyta.com. the first time you connected your godaddy website and your store was also the first time you realized...

well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com

welcome back to "fast money." the s&p posting another record close, while the dow pulled back from those levels, dropping nearly 100 points. the nasdaq climbing half a percent. earnings movers from this morning. shares of 3m dropping 11%. disappointing full-year profit and sales guidance, saying the macro environment remains muted. shares of verizon jumping 7%. beating on the top and bottom lines, posting strong wireless

subscriber ads. boeing falling into the close as the ceo of alaska airlines said the company found many loose bolts on the 737 max-9 planes in their fleet. boeing's ceo slated to meet with senators on capitol hill tomorrow. the boeing story seems to get a little bit worse. we had united complaining about boeing's management, now we have alaska airlines. >> i think the airlines themselves that are so reliant on boeing have to do something in terms of start pointing the fingers. and i think -- look, many loose bolts doesn't do a lot, especially in the public's perception of the company right now. the faa also has to get out there and has to back that public backlash. so as someone that owns boeing, i don't love these headlines, but i still get back to the fact that at some point, this is a company that i still think is -- again, we look at the size of the max fleet to the overall fleet, we look at their defense business, not making light about

any of these headlines, i think free cash flow comes back en masse by '25. >> mmm, boeing is its own story, mmm is sort of a different story. they are their own worst enemy. this is now six years since this stock made its all-time high and it's been six years of upper left, lower right. cascading today. and if there were ever a need for an activist, it's probably in mmm, because you talk about great businesses and motes, they seemingly have it, but they can't get their act together. i don't know if this makes a statement about the broader economy, about industrials, but it certainly speaks volumes about mmm and their problems. >> a headline from boeing. boeing to hold a quality standdown at a production facility in renton, washington, on thursday. that's the latest. a standdown. a quality standdown at a production facility. we'll keep you updated. chinese stocks moving today as the country weighs huge stimulus measures. etfs seeing big gains on reports

that beijing could mobilize nearly $300 billion to invest its own markets. most of those funds would come from offshore accounts of chinese state-owned companies, according to bloomberg. alibaba, baidu, jd, tencent, jumping on these reports. historically, these don't really work for the long run, tim. >> they don't. and when i think about state-owned enterprises that have money in offshore accounts to put into some stabilization fund, i think of the companies that are in the fxi, not the ones in the kweb. meaning some of the big insurance companies and, you know, some of these companies, and i don't know whether this is good news the -- as an investor, i think about, okay, if you're urging your own companies to invest in the stock market, the companies that they're going to be invested in should be off-limits, in terms of state oppression, because, you know, when i go back to alibaba, this is a company that has probably 30%, 40% of its market cap in cash. the valuation is ridiculous. when you consider the growth

level. even in a chinese economy that's going zero. but you can't put a qualification, you can't put a multiple on the fear of top-down oppression. and that's the stuff that we can't really do. so, again, this should be good news for that dynamic depending on who we find out that stabilization fund is investing in. then i think you can gol low in. look, i think china, for medium to long-term investors here, this is a fantastic place to be getting involved. >> yeah, court. >> i think what you want to look at here, there's a lot of political risk when it comes to china, and it's traded up and down on the idea of stimulus. i do like it in the medium to long-term. but that's when you look at something like emerging markets, there's a lot of other opportunities. china used to be the only big player in the space. now, you want to look at tunds like india. i think that's probably going to be the next big china. and that's where you are going to look at the eem. china is only a small portion of that. i do like it, but short-term, definitely still some caution.

>> yeah, if you were playing a game called would you rather -- >> or not. or not. would you rather them -- >> she didn't even smile. >> a lot of side eye. i don't know if the cameras caught that. >> big eye roll. >> $300 billion towards the property sector in china, or the stock market. think about -- basically, their consumers are more exposed to pro property. i would probably rather, you know, the market. >> money into the property market. >> yeah. >> yeah. >> just saying, but i'm not playing that game. >> why would you? >> yeah, because it's not time. coming up, the latest on netflix's earnings. the company hosts its earlier conference call in years. a top analyst on that call, what he's hearing from company execs straight ahead. and tegssla reporting tomorw after the bill. one of our trader as an options strategy. tuilwh "ston" mey rerns.

(♪♪) access to opportunity isn't always equal. but at the massmutual foundation, we believe tha—

you know, it doesn't really matter what we believe. what matters is what ruth, marcus and michelle believe. that kendall believes he has a say in his future. that these neighbors believe there's opportunity in their neighborhood. at the massmutual foundation, we don't believe. we know things get better when we invest in each other. (♪♪) another check on netflix. shares of the streaming service nearing 8%. rich greenfield just got off the conference call. rich, what stood out to you? was it weird to have a conference call so early? >> i mean, just a watershed moment for netflix, really, i mean -- getting into the live scripted entertainment, you know, i feel like this is sort of the house of cards, you know, industry-wise, if you think about the change, that was really the beginning of their launch into programming, you

know, their own original programming. this seems like getting into the live space, i mean, they've dabbled in live, melissa, but this is a, you know, a very big ten-year, $5 billion deal with wwe. this is transformative, and doc it on the same day that they announced the largest quarterly net ads since the pandemic quarter, and only the -- literally, the second-largest net ad quarter in thisry of the company, given how big and old netflix is, stunning that they can grow subs that quickly. >> how do you think their sports strategy, or their live strategy, will unfold? do you think we'll see them going after, you know, rights to live sports or -- or will they just pursue the sports adjacent sort of not necessarily depending on it being live all the time, but things that can be rewatched over and over again? >> look, i think they were very careful to use the phrase that you just recited, sports adjacent, right?

you know, live entertainment is not sports, right? i mean, wwe is scripted programming, every episode, it's been on nbc and other nbc u family of networks, where smackdown's going to reside after the transition from "raw, kws but it's scripted. netflix loves scripted programming. this is just live scripted. i wouldn't be naive enough to believe there isn't a future in sports. they've been testing with things like tennis and golf, their own sort of created events. do you think long, long-term, meaning over the next ten-plus years could i see netflix getting into the sports arena in a bigger way? sure. but i think they were very careful. this is not about sports, this is about getting into, or expanding from scripted into live scripted, and that's as far as they're going. do you think we'll be talking about in five to ten years moving into sports, true live sports? i'm sure. but that is not what's happening and i would be surprised to see them move too quickly into sports.

i think crawl, walk, run, they're on that process, and on that kind of continuation of growing into it. >> hey, rich, it's tim. you teed up in your notes the impact of generative a.i. and whether it's on the content creation process. frankly, for a company that continues to grow their free cash flow model, think about this also maybe phrase it in your analyst chair, and what this means in terms of both income statement and how you view this company in a cycle where i think they're are going to be a lot of upgrades coming off these numbers, but because of some of the dynamics around how they can be more profitable than ever. >> well, look, the obvious area that seems to jump out at me is animation. they just had one of the -- i think their most successful animated movie in history called "leo." they talked on the call about there being a "leo" sequel being kicked around now. i have to believe, when you think about the storyboarding and, you know, you know how long it takes, tim, to make animated movies, it's three to four years. it's a brutal process. if you can speed up that content

creation process for animation, and really do it more quickly, i think that's a place where generative a.i. could have a meaningfully positive cost impact and speed efficiency impact on the business. and so, i think that's notable. how it reduces in the broader business, i mean, i don't expect storytellers to go away any time soon, but i'm curious, they didn't really talk to generative a.i., but it will be interesting how generative a.i. impacts them beyond animation. i think that's the obvious starting point. >> rich, i got two questions for you. one, netflix mentioned a gaming strategy a couple years ago. where do they stand on that? and who, what makes you think tim would have anyhow long it takes to make an animated film? >> tim is working on his -- >> i'm cartooning right here, i mean, i'm laying out storyboards. thank you, rich. >> i'm giving tim credit for his overall creative capabilities. >> thank you. >> the answer to your question on gaming, look, brandon ross,

my partner, lives and breathes video games, he still continues to believe that, you know, they're probably going to need to make an acquisition at some point, maybe not a major one, not an ea acquisition -- >> how about a spotify? >> well, that's well beyond gaming, i mean, the co-ceo of netflix sits on the spotify board. it's so different, and museic, daniel is trying to own all of audio. i think netflix is trying to own all of video. yes, all of video, ultimately, is your question of sports. i don't think they're there yet. i think they have to grow and get bigger. the advertising business has to be much better for sports. that is the piece that is growing rapidly. and there's a major event happening in the next few days that your viewers should be paying attention to, t-mobile, everyone who is on the t-mobile netflix on us is going to convert to the ad plan, so, there's going to be a huge surge in advertising subscribers. netflix talked about that.

it's going to take time. but that's going to be a very big tailwind for the netflix ad business as you move through q-1. >> rich, thank you. rich greenfield, lightshed partners. tesla in the earnings spotlight tomorrow. how should you play it? more "fast money" in two. a force to be reckon with. no, not you saquon. hm? you! your business bank account with quickbooks money, now earns 5% apy. 5% apy? that's new!

yup, that's how you business differently. - i got the cabin for three days. it's gonna be sweet! 5% apy? that's new! what? i'm 12 hours short. - have a fun weekend. - ♪ unnecessary action hero! unnecessary. ♪ - was that necessary? - no. neither is a blown weekend. with paycom, employees do their own payroll so you can fix problems before they become problems. - hmm! get paycom and make the unnecessary, unnecessary. - see you down the line. in order for small businesses to thrive, they need to be smart, efficient, savvy. making the most of every opportunity. that's why comcast business is introducing the small business bonus.

for a limited time you can get up to $1000 prepaid card with qualifying internet. yup, $1000. so switch to business internet from the company with the largest fastest reliable network. give your business a head start in 2024 with this great offer. plus, ask how to get up to $1000 prepaid card with qualifying internet. ♪ ♪ switch today. ♪ ♪ ♪ ♪ welcome back to "fast money." shares of d.r. horton plunging after the home builder missed

earnings expectations this morning. bigger incentives and price cuts put pressure on margins. the stock seeing its worst day since june 2020. weighing on the entire home building space, as well. meantime, another marquee name on deck to report tomorrow, tesla delivers results after the bell. the stock is down more than 16% this year, and the options markets expecting an electric move in this name when earnings hit. if you've been along, dan has a way to protect any profits you've made so far, dan what are you looking at? >> really tough setup here. stock is down 21% just in the last kind of month or so. clearly out of that mag seven here. and sentiment just couldn't be worse heading into the print. and again, this company's had a really difficult run from a fundamental standpoint over the last three quarters. the day after earnings, the stock has sold off 9%. so, when you think about that, heading into the print, we have a nasdaq at all-time high, all the mag six making highs, you know, this has gob ne the oppose

way. this is a hard press on the short side here. they don't have to say much to get this stock going higher, but i don't think they are going to have that much good to say. if you are thinkingabout, how do i protect myself? i want to look at the charts really quick herely. the one-year, you see the uptrend. you see the 205 level, i don't think you want to be long below that. look at it on a longer-term basis here. and you say to yourself, and guy's been highlighting this pennant formation that's been in place. really difficult spot. it's below that longer term uptrend to me. so, if you are long into this print. i would look to collar your stock. so, today, the stock, 209 versus 100 shares long the stock. you can look at february expiration and sell one of the 230 calls that expires there at $4.40 in february. you could use the processes and look down in february expiration by one of the 192 pntd 5 puts for $4.40. it costs you anything.

you have gains in the stock up until 2:30 on february expiration, so, $21. you have losses down to 192 1/2 between now and february expiration, but between that, you stay long this stock and you can profit or you can cap your losses. >> what are you looking for out of this quarter? >> well, i mean, to me, it's about margins. where are they in terms of -- they said we're not going to get down to legacy automakers margin levels of 16%, i think we troughed at 17 1/2, but anything with a 17 handle or below, i think the stock trades down to that 175 level. up next, final trades. your business. take full control of your brand with your own custom store. scale faster with tools that let you manage every sale from every channel. and sell more with the best converting checkout on the planet. a lot more.

take your business to the next stage when you switch to shopify. icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot. welcome to ameriprise. i'm sam morrison. my brother max recommended you. so, my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors, the garcía's, love working with you. because the advice we give is personalized, -hey, john reese, jr. -how's your father doing? to help reach your goals with confidence. my sister's told me so much about you. that's why it's more than advice worth listening to. it's advice worth talking about. ameriprise financial. a force to be reckon with. no, not you saquon. hm? you! your business bank account with quickbooks money, now earns 5% apy.

5% apy? that's new! yup, that's how you business differently.

ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. final trade time, tim. a lot of concern around the macro, we heard from oil services companies this week, and schlumberger is best of breed. the margins get better. >> now known as slb. courtney? >> the xhb, we didn't get to talk about housing, but it's down today. i would buy on that weakness.

the longer term supply and demand continues to look attractive here. >> dan? >> yeah, i'm starting to look at tim's nike. i know you are really geeked up about the olympics. >> as i get. >> guy? >> pixar making a big announcement -- >> my mission is simple. to make you money. i'm here to level the laying field for all investors is always a bull market somewhere and i'll help you find it. mad money starts now. welcome to mad money. i'm just trying to make you a little money. my job is not just to entertain but to ask wayne. call me. darn those stupid facts. they just want play