are they behaving with a tilt toward interior goods? that's going to be important to see. on the consumer side, as we're watchi ing it play out in the enterprise, as well. >> in the meantime, it was really a mixed picture as earnings are mixed, as well. that does it for us here at "fast money. >> "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 tesla tumbles. the company seeing shares drop will elon musk be able to get things back on track, or has the ev pioneer lost its grip on the market and later, a semi surge. shares of asml closing at all-time highs after its latest reports, taking the rest of the space with it. so, is this breakout for real? we'll debate that. plus, fit financials why the s&p set another record close. the xlf is breaking out to

two-year highs one top analyst says banks are ready to bounce higher do the traders agree we'll find out maine lis is a leei'm melissa l, coming to you live from the nasdaq we'll start off with the nasdaq. cl and tesla. tesla grew just 1% in the latest quarter. the call kicks off later this hour phil lebeau joins us now on the numbers. phil >> the numbers are not encouraging if you are a tesla investor they missedon the top and bottom line. the company earning 7 is1 cents share. revenue coming in shy of expectations at $25.17 billion there is some encouraging news in terms of gross auto margins, excluding zero emission vehicle credits. the expectation was for 15.7%,

as that gross margin figure, they came in at 17.1%. so, better than expected, actually, better sequentially than the third quarter so, why are people perhaps wringing their hands a little bit and wonder what the future holds for tesla? it's because the company is not giving guidance in terms of 2024 deliveries in fact, the company did say in its release and we'll get more from elon musk in a half hour, hopefully, that deliveries this year will be notably lower than the rate of delivery growth in 2023 the worlds note bly lower, those are tesla's words. just for a point of reference, the company's delivery rate increased by 24% in 2023 that was down from 40% in 2022, so, the question becomes, how much will they grow this year, melissa? that's what people will be focused on, especially when the call starts at 5:30 from elon musk are we talking about a 10% delivery increase? that would get them up to 2 million for 2024

are we talking about something a little more than that? the estimate on the street was for 2.1 million, it is that open-ended nature of notably lower that is certainly going to be front and center during the conference call, which begins in a half hour. >> yeah, if they can quantify notably lower. i feel like this is sort of, you know, the automotive gross margins x credits was better than expected and people thought that's what it was going to be all about, and for 2%, 1% plus beat, that seems significant also, free cash flow for the quarter was significantly higher >> yep >> so, you had sort of puts and takes in the quarter >> absolutely. but everybody also went into this quarter assuming there would be guidance in terms of delivery growth rate for 2024. nothing and just the words notably lower, it leaves it open for interpretation and right now, the bears are interpreting that as bad news. >> all right, phil, appreciate it by the way, they say it will be notably lower because the team

is going to transition to the next-gen vehicle platform, so, that's the reasoning behind that, for what that's worth. what do you make of the quarter? >> well, the stock's performance afterhours, i'm kind of surprised it is doing as well as it is. that type of unclear outlook, but a negative outlook on top of, you know, you can make what you want, you can twist the numbers, you're right, there's a lot to read into, but operating profit falling, two straight quarters where it's been under pressure dynamics saying, we are going to spend more on a.i. and robotics, and so the spend goes up at a time when earlier this week or last week when elon musk sent strange tweets out there, talking about maybe he wasn't comfortable having a.i. in robotics as part of the structure, if he doesn't have 25% control. all of this adds up to some uncertainty around some part of the business that i think is what we were willing to pay a lot extra for on the multiple. and so, it's at a time when the growth part of the story, which, look, every tesla bull will talk

about that, is in question, at a time when people are -- there's some bigger issues, byd, we know the headlines there, in terms of which they overtook them i don't think that's a big deal, and i think the byd cost structure and asp structure, very different than tesla. but it's not an easy time. stock's already had a lot of bad news priced into it. i think the price action here is better than i would have expected >> questions around the growth part of the business for tesla, but growth part of the market in general. >> yes so, i agree, to your point, about them talking about, we're going to be transitioning to newer models that's a big difference than notably -- than notably slower for no other reason, right so, we don't know exactly when or how, sometimes they delay, things take longer than they think, but the more i've been talking about tesla and the ev slowdown, the more i think they should be putting as much pressure as they possibly can on the gms and fords. when my husband and i watch one

of those, you know, action movies, they always leave the villain almost dead, but they kick the gun to the side, right? >> he can't get it there >> of course he comes back, you have to kill him again and i wonder, are they really going to try to just step on the throat of -- >> by the way, this is a family show talking about stepping on throats, and -- >> well, i'm kind of worked up i really think that's sort of what's going on here we can take the pain, we can afford it, the balance sheet is in good shape, we have good cash flow we ought to just crush them if we can >> if they step on the throat, they give up the margins >> better than expected, it's -- >> better than expected, but if they go next level step on throat, karen's streaming netflix movie, you're going to have a problem on the margins in the future >> what if you have fewer competitors? then you have room to -- then you have room to price >> i don't disagree, i'm just saying the price action was nervous about margins coming in

when they dip below 20, so, if now they pop to 17 and they dip again and then you say, more share, still going to be a problem. i think tim, you know, touched on the valuation, we've been paying for a.i if a.i. leaves the story, what is tesla worth without that? and is that full self-drive? does he go do it somewhere else and sell it back to tesla? >> i don't understand -- >> they can't. >> well, the share structure -- >> to take the asset >> one class of shares which can't be retro actively changed. i just think it introduces -- i felt biggest risk for tesla over the years have been corporate governance related, i think it just introduces a lot more of that at a time when the valuation is stuff >> katie >> the stock has been a real underperformer, so, i think people were anticipating something like this and maybe that's why it's not down as much as you'd think, there's a key support level, 208, on the chart. now, it's be low currently

as long as that holds on a closing basis, to us, that's a positive, or sort of an incremental positive that has lower highs in price neutral long-term bias and the other megacaps look much better on the charts from a momentum perspective, so, it's hardly the best of the best so, if it holds that area, becomes somewhat compelling to us, for sort of a countertrend entry point. >> and when you saw the price action right off of the earnings print, it traded down to the mid-190s, and that area is the october 30th level, 194 and change that's probably real support in the name i like it above a katie's safer 208, but you would be willing to take a shot against a 195 or so low. the main issue that i have, if they are introducing new models, you force people to wait for those new models, and if they price cut, you force people to wait for a price cut they were having enormous price cuts, so, you went out and bought a car and they were

$15,000 cheaper in three days, three weeks. that just forces people to wait. >> all right, for more, let's bring in "fast money" friendmun. great to have you with us. what is your reaction to the stock move >> melissa, this was the most sobering outlook that i have seen from tesla, when they talk about a step down, a notable step down in growth rates, i want to put that into perspective. the street was looking for 19% revenue growth in 2024 for this year and they said it will be notably lower than that. so, probably comes in at 10% when i see that, i think stock's down 5%, 10% that was my initial reaction, i'm surprised to see where it is the reason why i believe it's holding is two-fold. you highlighted the importance of the gross margin x credits, i would add to that, that's the first time in a year that we've seen that improve, and so, that is a surprise on the positive

side, especially given the ramp of cyber truck, some of that investment and second, i think the stock reaction speaks to the conviction of shar shareholder/investor base. and effectively, this comes down to a very simple question, is, do you believe that evs are the future and if the answer is no, that you think that this is going to take 20 years to get to electrify case and autonomy, then you believe the stock should be down measurably, meaningfully, 10% more on this news but if you do believe in the future, then this punky soft guidance that they're giving for this year is going to ultimately prove to be noise, because everything that tesla's doing, building out this next generation vehicle platform, everything that they've done in their investments in autonomy, all of that is coming at a time where traditional auto is stepping back from these so, that's the question. if you believe in electrify case and autonomy, tesla is in a better position longer term, and

i think the reaction to share speaks to the conviction, long-term conviction, that tesla shareholders have. >> can you help us understand, gene, what this next gen vehicle platform is, and what that gives tesla in the long-term i mean, we may see that stepdown in volume growth this year, but on the other side of it, if we can see increased output, this could just, you know, you could smooth this year over and see the trajectory higher. >> you'd see an acceleration back potentially, i mentioned 10% for this year, but next year could be 30% plus growth and specifically, this is a lower-priced vehicle, likely around a honda accord, typical honda accord in the u.s. starts at $30,000 that's below the average selling price of a car in the u.s. at $48,000. and it's likely going to be a couple vehicles. one is a lower priced car with a steering wheel and followed by a robo-taxi. that's what they're talking about. they need to build enough of a gap between the model 3 and this

lower priced vehicle, not to create some confusion, so, this is going to be, again, a measurably lower priced vehicle, and compete with where the sweet spot out the growth in the market is today. >> gene, it's karen. thanks for being on with us today. i always have trouble with, how do you value tesla then, phew it all together, how do you come out with a valuation for tesla >> so, what i look at is where revenues are going to be in three to five years, and revisit it after the call here, but think about what that revenue growth is going to be, i mentioned a step back up to 30%. and then i go and look at what other companies are trading at the best comp is apple, when it comes to ardware, software, services, i think that's most representative of tesla. so, that's a six or seven times multiple and so, when i put those two together, i can comfortably get to above a trillion dollar market cap for kind of that five-year period again, i want to see what's going on with their commentary on kind of long-term growth, but

that's how i get there i think of this as a multiple relative to where it's going to be in three to five years. >> all right, gene, thank you. keep us posted >> thank you >> conference call, again, gets under way in just about 18 minutes time or so the next gen vehicle, at one point in time, we thought the mass market would unlock all sorts of value, mass market -- >> that's what it was. >> and here we are, when we hear about transitioning to that new platform, that's a negative on tesla in the afterhours. why do you think that is >> well, if you thought that the model 3 was kind of this volkswagen for the electric vehicle masses, you know, then yeah, you're disappointed. but you think about higher margin, the cars they can build for a price that they can sell them for so, it's a fascinating time. margin stability was what i think investors wanted to hear forget some of the unclear outlook in terms of deliveries and what not, but i think back to the stock relative to the market, it's great having katie

here tonight to talk about some of those dynamics, but it's understood performed the s&p by 35%. massively. we talk about the mag sevens, and this is a stock that i think is being treated and i think based upon the headlines, i also think, all of these headlines are good for ford and gm and i'm long both, so, of course i want to believe that. >> so, you mentioned 208 is the level. what happens if it's able to hold that? >> it should show a reaction to the oversold condition and that oversold is actually more extreme in the ratio of tesla versus the s&p 500, which is kind of intriguing, right it suggests this underperformance is overdone, so, you would at least at a very minimum expect relative performance to improve and probably to a pretty strong degree, just maybe sort of the, you know, release of that news, right? people anticipating it, worrying about it, and now there's less uncertainty and the market tends to like that but that 208 level to us preserves the range, so, if it breaks down, then we're looking, probably, much worse than the

october lows, i would imagine. >> all right, let's get a check on the markets now the s&p topping 4900 for the first time ever. the nasdaq also higher while the dow shed about 100 points. meantime, bank of america out with a bullish bank call today, saying the stocks may be this year's coiled spring the firm noting exposure to bank stocks is lower now than going into the last year and the group may be due for a rerating. the s and p bank and bank etfs g gaining today. so, could we be seeing, you know, a new leadership group being born here, karen you hope so? >> i hope so i'm all-in on the -- i -- she called it a coiled spring, right? >> yeah. >> i guess they're levered, so, there's that they don't generally have this sort of pop that we've seen in the semi space, but if the economy is okay, banks at this valuation, i mean, so, jpmorgan,

by biggest position by a lot in the space, under 11 times earnings, a dividend of high twos, and then citi bank -- that is somewhat of a coiled spring relative potential for massive cuts in spending, and then you put a multiple on that, right now, the street doesn't give them a lot of credit at all they trade well, well under tangible book value. so, those are my two names in the space. i hope she's right. >> if quthe question is, like, y rerating i understand where stocks can be underloved, and i'm not disputing it i -- i'm long citi, bank of america,jpmorgan part of that rerating is coming from a more benign credit outlook. part of it is coming from a world where the asset flight has slowed down dramatically lower rates are also slowing down the asset flight. so, i mean, ultimately, the question is, did citibank deserve to be at.55 price to tangible book? no chance. the kre has outperformed the s&p

on a relative basis since the entire market took off on that october 26th-27th level. until we stop seeing that follow-through from banks, which underperformed, i think you're staying there. >> coiled s ed spring sounds li technical term >> it does a breakout has been completed by that space we added xlf to our own portfolio just this month to take advantage of what looks like this spacing phase. and those can have long-term implications for both absolute and relative performance it's xle, kre, kbe you almost don't have to be picky, because it is such a macro oriented group or space. and we tend to think that yields will have a corrective year, meaning they'll come into perhaps even the low threes from a technical perspective. strictly from a technical p perspective. >> low threes sounds like that's conducive to the stock market

going higher, too. >> we are very bullish, but we want to temper that, because we don't want to get too excited after such a huge move, but quite frankly, the momentum gauges are positive across time frames we have very widespreado breakouts. coming up, we are dialed into tesla's conference call we'll bring you the headlines. but it's not only the afterhours movers we are watching shears of ibm and las vegas sands. speaking of results, asml surging after results reporting this morning 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.

welcome back to "fast money. ibm shares jumping after big blue reported a big beat on the top and bottom lines conference call kicking off top of the hour. kristina partsinevelos has been listening in kristina, what's the latest? >> well, they're just going through all the numbers right now. q&a hasn't really started. but the key word is solid.

solid growth solid results. but as usual, revenue was driven by software and the consulting business since it contributes 75% of total revenue the ceo telling me in the last hour, we chatted on the phone, that their a.i. business doubled, however, we didn't get any actual numbers and if i looked at the fact set estimate, there was a miss in software, and there was a slight miss to estimates in consulting, which was offset by strength in in infrastructure there were come concerns going into this report they couldn't grow their free cash flow to $10.5 billion, and they did. they surpassed that yearly level to $11.2 billion for the full year i asked what the driver was to the cfo, he told me it was a mix of cost rationalization and demand he just said it on the call right now, it was about real estate optimization, as well i asked what that meant, i'll find out they expect 2024 revenue in the mid single digits and $12

billion in free cash flow and there should be commentary momentarily about software guidance going up higher than their previous 4% to 6% range for the year details, still waiting for that. 22 minutes into the call >> kristina, do they actually break out a.i. as a segment or is it one of these things that sort of crosses into many different segments that it currently reports? >> no, no. i made that mistake earlier this morning when i said we would be getting details on their watson x business and was corrected on that they do call it a book of business for watson x and generative a.i last quarter, they said there was low hundreds of billions of dollars and now that's more than doubled. that's why i use the terminology doubled sequentially, but in terms of the actual numbers, how many digits, i don't know. they told me there was thousands of customers that have engaged with these platforms >> that's promising. kristina, thank you. kristina partsinevelos on ibm. do you own it? >> i don't own it. and, look, i've been scared by

the head fakes we've seen multiple times $12 billion in free cash flow, so, at an 8% free cash flow yield. their gross margin up 140 basis points it's moving in the right direction at a time when people are looking across megacap tech and they're looking at valuations this one -- you know, you can find an argument in favor. and certainly in terms of outperformance relative to the market would you rather have relative to the s&p back in july -- >> got excited, i heard -- >> ibm >> it is a would you rather. as we watch ibm -- >> i try not to do that. >> they're at their highs in the afterhours sessions, up 7.2% >> this is -- i think we're past the head fakes right? if you look at consulting, software, if they're going the right way, and infrastructure is going down, that's what you want to do. you want to turn the titanic around and it's been a titanic. it's been -- it was my secular short in 2013. on the desk downstairs and testament to what tim said so many head fakes along the way. they were the originator of

a.i., it was watson, they were the first people there, they should have been monetizing this a long time ago. maybe they're correcting the ship at this point -- >> too early >> i think they were too early they didn't know it was -- it was pet rock back then >> let's get to lamb research. beating earnings and revenue expectations issues strong eps guidance the move comes after asml posted its best day since november 2022 the dutch company reporting better than expected earnings and revenue this morning, but issue d tepid growth, but new highs across the sector today. >> very strong momentum. very strong relative performance trends and with these breakouts, these earnings-driven breakouts that are spreading across the industry, those tend to exhibit, or sort of generate more momentum, just by the nature of resistance being removed from

the charts and when we look at price objectives, or -- they are usually aligned with the 2021 highs. so, in asml, for one, it looked like a bullish cup and handle formations, which is a formation that tends to have years of implications, so, i think they are really exciting breakouts. we love to see gaps up in response to earnings, and just a few days after, to hold that gap, is even better. >> so, just looking, lam research up $18 today, just on the heels, right, of asml, and so, we're in that kind of v vicious cycle where this all began on the same news over and over, right? asml, hopefully bigger revenue here, a very nice guide, right the quarter was okay, i mean, it was good, but there was, you know, stuff to nitpick, so, again, it's a lot on the same news i am long what we call the picks and shovels, we were talking

about it nvidia and amd, and probably looking to sell them at or right around earnings. >> all right, there's a lot more "fast money" to come here's what's coming up next could big gains come in small packages what the technicals are saying about the small cap space right now. we'll go off the charts with katie stockton on this maybe mighty group. plus, a subscriber super surge. investors bingeing on netflix shares after the streamer's latest results and now, wall street is tuning in the next move for netflix, ahead. you're watching "fast money," live from the nasdaq market site in times square. we're back right after this. l. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing.

all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪) - "best thing i've ever done." that's what freddie told me. - it was the best thing i've ever done, and- - really? - yes, without a doubt! - i don't have any anxiety about money anymore. - great people. different people, that's for sure, and all of them had different reasons for getting a reverse mortgage, but you know what, they all felt the same about two things: they all loved their home, and they all wanted to stay in that home. and they all wanted to stay in that home. - [announcer] if you're 62 or older and own your home, you could access your equity to improve your lifestyle. a reverse mortgage loan eliminates your monthly mortgage payments and puts tax-free cash in your pocket. call the number on your screen. - why don't you call aag... 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. small cap stocks struggling to take off so far in 2024. the russell 2,000 down more than 3% since the start of january. other major averages are all in the green. one of our traders seeps s one of our traders ss sees a reversal let's go off the charts with katie. what are you seeing? >> for iwm, we saw a major trading range breakout in q-4. it's something we haven't anticipated, because there was

positive divergences in momentum as it had gone sideways. the volatility is kind of staying with it with this pull-back that we've had, so, it's shaken investor confidence in the small cap space, but we want to sort of reinstill that confidence, because we've seen an initial reaction to a short-term oversold condition, that's an iwm, or the russell 2,000 etf. and with that, we have improvement in relative performance, long-term downside momentum versus the s&p 500 has improved and that likens it to towards the end of '22, when we started to see them at least perform more in line with, so, we're kind of convinced that we'll see small caps do better, maybe they don't outperform strongly, but a better year for them after what was a very difficult year for them, because breadth was so weak so, we're excited about the range breakout, we feel it can get iwm to 213 resistance as an initial upside objective, and with that, we should see

outperformance near term >> does that mean that big cap technology takes a breather, so to speak, or doesn't perform as strongly if money is going into small caps >> i would guess that the relative performance takes a breather, so, maybe they're not the same sort of upside leadership, but they should participate, so, it wouldn't be something that someone might notice very much in their portfolio, but it also should be associated with sort of growth to value ratios, favoring growth even more than they have done at, you know, etfs like rk doing much better after advancing from long-term basis phasing, so this is part of the whole broadening out of the rally we're expecting. >> i agree with that, and we saw the equal weighed s&p etf, depending how you're tracking it, your analysis, i think, is great. and do you notice in your portfolio? the question is, do we have to own small caps small caps have underperformed with a decade, why are we talking about them -- >> well, you can say that about international, too, right? >> that's what's really interesting, because when i was

an em guy every single day and we were looking to hedge the growth dynamics, we would hedge with an iwm. not all the time, but i guess my point is, as i talk about this with clients and you look at 2024, it's like, should we own more small caps? and on some level, if you've done that for the last decade, you've underperformed. having said that, the sign that small caps are starting to outperform is very interesting for the overall market and i know we should be looking at that >> if you own small caps, though, it's got to be a bet on interest rates if you think interest rates are going higher, small caps aren't going to perform and i always point out with the iwm, 40% of those companies are unprofitable in 1995, i think it was 15% that were unprofitable it's a different landscape and that mirrors what tim just said, the gross underperformance you've had, they are unprofitable companies and packaged together into an unprofitable etf when you look at the iwm so, if you look at large cap tech, that's going to be an

outsized portion of the market, and whether it is higher rates, lower rates, people are going to migrate to what it is, because tech is not just tech anymore, it's industries, energy, tech overlays every other sector. >> i like the small cap space. i think the valuation in -- the valuation differential is so big now, and, you know, i'm long a lot of tech. mag seven. but i think that this is just underperformed too long, and eventually -- eventually, we see things revert to the mean. all right, coming up, a bingeing boom. shaurs of netflix soaring on the back of strong earning, subscribers, a wrestling deal, what's not to love we're laying out the smackdown on the trade next. and don't look now, but meta just regained a key level. can the social stock keep climbing we'll debate that when "fast money" returns. missed a moment of "fast?" catch us any time on the go. follow the "fast money" podcast. we're back right after this.

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.

welcome back to "fast money. the s&p setting a record close again, now on a five-day winning streak the index topped 49900 during th

session. shares of dupont shrinking 14%. the company seeing weakness in china. and check out meta, rejoining the four comma club today. its market cap topping $1 trillion for the first time since september 20 21. shares at a record high. they are up more than 11%, so far this year. and microsoft briefly touching $3 trillion in market cap, closing slightly below that level. how do these charts look, katie? >> you mean, you can imagine, right, the momentum is so strong, and i know it's very difficult to find one of those pull-backs to add exposure into for meta in particular and now it's pending come fir make of a breakout to a new all-time high, and it's hard to buy into that strength, but it's often the right thing to do. >> right. netflix closing up nearly 11% today after yesterday's blowout earnings report. the stock at its highest level in more than two years

price target hikes on wall street julia boorstin is in l.a. with the details. hey, julia >> hey, melissa. well, we've counted ten firms with a price target above $600 writing, what's not to like? upgrading netflix to buy pivotal research raising its price target to what appears to be a street high of $700, saying this is what winning looks like. jeffries with a buy, ups its price target, the headline, do you smell what netflix is cooking? and td cowan writing, off the top rope, netflix delivers no everyone was so bullish benchmark with a sell, saying, this is near certain the apex of the password sharing crackdown georgia bank downgrading to a hold ultimately, the bullish argument among all these analysts did highlight netflix's move just yesterday to license the wwe

sports rights. that's expected to bolster subscribers and ad dollars and earlier today, we saw the success of streaming sports on another platform, peacock's wild card streaming nfl game drew an estimated 2.8 million new subscribers, according to antenna research now, peacock, is also owned by cnbc's parent company comcast, had 30 million subs before that jump, compared to netflix's 80 million in the u.s. and canada live sports are clearly a key battleground in the fight for subscribers, and now also ad ju karen, you listened to that call >> yes >> and your reaction >> it was fantastic. so much to like, right the numbers, the ad-supported tier, how well that's doing, password crackdown so much to like, and they haven't -- they said this, but they said, we haven't yet gotten to more price increases. which they believe can happen -- >> every month, you get an email

about price increases. >> they didn't want to do a double whammy of price increases and, i mean, they are, you know, we talk about tesla being the winner -- so clearly the winner here the -- i'm a value girl, this is actually not so crazy, given their position of how dominant they are and there's more to come >> and it's a listening new descriptive. we have the term power bomb. we had the big storms with the polar vortex came out of nowhere. the power bomb >> that's a good one >> but it is a power bomb, if you think about the size and the scale, but also the profitability. that's what's allowing this analyst kind of follow-through of upgrade after upgrade i think it's the profitability, less about, hey, these new subs coming from paid sharing, it's been a great -- even if it's peaked, the scale and the profitability of the business is what allows analysts to go here. >> i'm always amazed at companies that transform

themselves, and from them to go to the red envelope and decide, we're going to get into the content business -- >> which was scoffed at. >> i scoffed i thought it was absurd. and now to this. and sametesla, the transformation >> right, but to your earlier point, a mature business, but able to increase profitability, you're still able to move the lever, and that's really rare. >> yeah, and by the way, i'm just thinking of guy running down to the mailbox right now to get the -- >> you know, to your point, though, it went from, there was every competitor, the hopes were not for them, every competitor in the book and every competitor is squashed, and now they're licensing to netflix and that ad tier is going to be the new metric that people are judging it on, they rolled it out in a bunch of markets, they will roll it out further, and everyone will pay into the competitive beast that netflix was and they will continue to eat everyone else's lunch >> and sports, and gaming and international. >> and we're paying more with

all of our bundles than we did for cable tv >> yes how do you like that >> i don't like it i fell victim. >> netflix on the charts, katie? >> it's kind of interesting that 700 is the high price target, because that's resistance, it's final resistance so, it would be a natural place maybe for sellers to step in, but there's a lot of room to that level >> yeah. all right. coming up, "fast money's" earnings palou sa continues next we'll roll the dice on las vegas sands results and get some fresh insights on tesla with gene munster. hear what elon musk had to say. plus, at&t's weak guidance, that has wall street hanging up on this name for "fast money" in o. tw as i got older, it was just a natural part of aging, i felt that my memory was beginning to decline and that's when i started looking for something that would help. when i first started taking prevagen,

i noticed my memory was so much better. just stuff seemed to come together and fit like a jigsaw puzzle in my mind. prevagen. at stores everywhere without a prescription.

welcome back to "fast money. let's get another check on tesla shares, down by 4.25%. gene munster has been listening into the call. what's the latest here >> melissa, it moves fast, they talk quickly i think i picked this up from the new cfo and i did see a dip in the stock when he said this, but he mentioned the improvement in sequential gross margins. that critical metric that gross

margins x ev credits and he said going forward, it's difficult to predict that, that's common language they would use in their talk about expectations but he said, we're reaching our limits on the current platform, which i think he meant reaching their limits on what margins can expand to. elon had just previously, before that, was talking up the margin improvements, or the productivity improvements in this next generation platform, so that's going to be a critical topic, because it is the pressure point, related to profitability, and begs the questions, do they need this next gen platform to ramp margins again? >> was there any commentary about what notably means in the context of notably lower growth in '24 >> hasn't got to that. he basically gave kudos to his team for a good '23 and pulled out some things there, but they

haven't gotten to that growth question yet >> all right, gene, thank you. >> thank you >> gene munster. so, still a lot of questions to go here on this conference call as we're trying to descipher the impact on the stock. let's move to las vegas stands, jumping despite missing profit estimates contessa brewer has a look at the numbers. >> luck was really at play here, or hold, how much the casino keeps of the mwagers made. they say the retail segment there surpassed 2019 levels. luck favors marina bay sands in singapore and the ceo called it probably the most valuable hotel building in the world. the high value customers, they came, they spent gambling up 339% over last year. in spite of a massive construction project there, and slow recovery in visitation from china. goldstein says plans for singapore will take it from $2

billion to $3 billion a year by the end of the decade. overall, you're looking at adjusted property ebitda at 94% of the same quarter of 2019, pre-covid. and yet, lvs shares over the last year, down 10%. on the call, sands coo and president patrick dumont said, yeah, right there, that's a buying opportunity so, lvs bought back a half billion dollars worth of shares, committed to buying $250 million in shares of sands china and ceo rob goldstein will join me for an exclusive interview tomorrow on "power lunch," 2:30 eastern time and i want to dive into the retail numbers, because we heard so much bad news from other companies in china >> all right, contessa, thank you. steve, you actually bought some lvs today? >> i did i thought the bar was so low for it that it could sort of walk over it, so, it's not about the absolute numbers, it's just about where sentiment is on the stock right now, so -- and when

you look at wynn, as opposed to las vegas, you get singapore, so, you get vegas, macao macao only has to improve fra fractionally for the stock to rip from here. >> and it is improving december ggr, gross gaming rev nuf in macao was up in december. if you think about the performance of las vegas sands -- china's been a ball and chain around, you know, the foot of has says gaened is as this is a great opportunity. i think also investing in macao is one of the best opportunities in greater china investment here and we have seen very strong recovery we will see strong recovery. and it's what we've heard there, getting back to kind of pre-covid levels and percentage of where they were on ebitda i'm a long-term investor in vegas sands. i stay there >> by the way, we're getting more headlines out of the htesl conference call. elon musk said production of the next gen vehicle will happen in

the second half of 2025 and production ramp will be challenging. that's the word that he's using on this conference call. we're getting details on cap x, he expected capital spending to exceed $10 billion in 2024, again, the company already said they're going to be ramping this next generation vehicle platform in 2024, which is why they're saying that 2024 will see notably, their words, notably lower volume growth here, as they transition to this new vehicle. we're getting more details, it's coming through keep you posted on this, but the stock is down by 4%. what are some of the questions you have here? >> well, i still, first of all, the adjectives they're using this afternoon are not great i mean, some of these are not inspiring, but i do want to hear a little bit more about what they're thinking in terms of their a.i. and robotics, and where the investment is going. you talk about the investments here, what are you thinking about this part of the business? that, to me, we knew about the other stuff. this was a new ingredient interjected recently.

all right, we'll keep you posted here on those comments. meantime, coming up, more details out of the ibm call. we'll get those details next ise, 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. (grunting) at morgan stanley, old school hard work meets bold new thinking. ( ♪♪ ) partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep

puts you on the path to your full potential. old school grit. new world ideas. morgan stanley. ♪ ♪ wake up, gotta go! oc'mon, c'mon.t. -gracie, c'mon.. let's go! guys, c'mon! mom, c'mon! mia! [ engine revving ] ♪ ♪ my favorite color is... [ imitating trombone ] because, it's like a family thing! [ engine revving ] ♪ ♪ made it! mom! leave running behind, behind. the new turbocharged volkswagen atlas. does life beautifully. 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.

welcome back to "fast money. an update on ibm kristina partsinevelos has the latest >> i just confirmed job cuts at ibm, unfortunately they are work force rebalancing, a fancy way of saying cuts they wouldn't confirm the exact number to me, despite me persistently texting, but they confirmed low single digit percentage so, that could be anywhere between 1% and 2%, so, at least 3,000 employees, think a little bit more. i asked about which offices, which locations, wasn't told the details about that but they did confirm they would be exiting the year with the same amount of employees they entered the year and they're still hiring, but let going at the same time, so, $400 million charge for work force rebalancing. aka job cuts >> kristina, thank you more interesting headlines from the tesla conference call, elon musk saying he wants 25% control of the company to be an effective steward of very powerful technology. and he says a duo class

structure of shares, quote unquote, would be ideal. i don't know -- >> how would you do that >> how do you go from a single share class? >> let the horse out of the barn, so to speak. the stock is down by 5.25% at this point. up next, final trades.

to advance the future of golf, pga of america chose t-mobile for business. with a 5g powered innovation hub to analyze player performance and expand coaching tools. take your business further with america's largest 5g network. time for the final trade. tim? >> yeah, i do think that macao is a fascinating investment, especially with what's going on in the recovery. melco is a name i've owned for a long time. >> karen? >> yes, i'm with katie all the way on iwm. i just think this divergence is too big. i am long. and i think we've got some decent upside. >> katie? >> i'm long nvidia, but i'd say maybe get a little diversify case in the semiconductor sector, with something like smh. >> all right, katie, by the way, great to have you on the desk tonight. steve? >> this is an old name.

xerox. reorganizing its operating miles, slashing jobs, shaking up leadership. xerox. don't scratch your head. this is the real year. it's still xerox. final trade. >> all right, elon musk continues to caulk on the conference call. the stock is down 5% right now. thank you for watching "fast." my mission is simple. to make you money. i promise to help you find the money. mad money, starts now. >> hey, i'm cramer. welcome to mad money. i'm trying to help you with a little bit of money. my job is not just to entertain, but to explain it and put it into context. this bull market has broken some minerals that it astonishes me