on top line guides versus cost cuts, as you were just talking about, morgan. >> yeah, we've got u.p.s., general motors, pfizer, and starbucks to watch, too, in what's going to be a very busy week with a lot of potential catalysts. >> yeah. as we mentioned, alphabet and microsoft tomorrow. that's going to do it for us at "overtime." "fast money" starts now. . this is "fast money," and we are here tonight for the i-connections global summit. the next two days, i'm melissa lee, joined on set by dan nathan and guy adami. great to be here, right? >> excellent. >> it is a monster event. a whose who of vcs, wealth managers. here's what's on tap tonight. big tech on deck. more than $10 trillion worth of market cap reporting earnings this week. will the results add fuel to magnificent seven's fire?

we'll find out with top tech investor brad gerstner. why he says one of these high flying names has even more room to run. plus, we're counting down to wednesday's big fed decision. will the central bank lay the groundwork for a rate cut at its next meeting? we'll get thoughts from goldman sa sachs. and later, place your bets. flutter entertainment making its debut on the new york stock exchange. we'll talk to an investor in rival draft kings for the outlook on sports betting. it's great to be here. we'll get to that in a few minutes. but let's kick things off here in miami beach with the funding announcement that fueled a late-day rally. both the s&p and dow notching reports at the close. the s&p closing above 4900 for the first time. and the dow is less than 3% off the all-time high set in november 2021. the moves came as the treasury suggested its balance sheet is in stronger shape than originally thought.

the government estimated it would sell $760 billion in bonds. that is down from what it borrowed in q-4, about $55 billion less than its previous estimate. the treasury plans to reduce actions even more sharply in q-2. the news sending yields lower across the board, with ten-year falling close to the 4% handle at its lows and plenty of other headlines to watch this week, of course. earnings from five of the six biggest companies in the u.s. a fed decision on wednesday and a jobs report on friday. so, what does this all mean for investors. what are you hearing on the ground here, guy? >> well, that was the news. the treasury news. the market was higher in the first place, and then you got that and obviously we racheted up. it's seemingly the market has every reason to rally. people are looking for good news. they are finding it in the form of all these different things. the flip side of the coin, of course, is the higher the market goes, seemingly, the more expensive it gets. i think it was jpmorgan, i think, put out a note earlier this afternoon talking about that. so, if it's just multiple expansion and going to rally on

all these things, as dan would say, have at it. the higher we go, the more concerned i get. >> have at it, guy. it's back to the narratives that were driving the stock market in 2023. when you think about where we are right now, we're one month into the year and i think what you just had to say, mel, about this week this is massive. when you think about the expectations for some of the biggest stocks in the entire stock market, how they have rallied into the earnings this week, at a time when, okay, fine, we're back to, yields are going lower, back to kind of cme fed fund futures pricing in cuts sooner than people were expecting. i just worry, again, that we've lost a bit of that outperformance from the relative -- or, the s&p equal weight, now getting a lot more concentrated and expectations are really high. and expectations are very low into the fed on wednesday. >> there are real questions if that broad-based rally can find any steam in this sort of environment. when you look at today's action, what stood out to me today was tesla. tesla, despite, you know,

basically the train wreck, as dan called it last week, but even in the face of that, managing to gain in today's session? on basically no news? >> no news whatsoever. the broader market, obviously, helped. the level we traded down to sort of helped. we've been sort of flagging 175 and 180, seemingly was a home for the stock. we, so -- i guess technically it made sense. and we're bouncing off potentially oversold conditions. you're 100% right. but it's one of those things where, what are we really looking at here? this treasury news is fueling the fire, but are things as good as the market suggests, and i would say no. >> and how does lower rates across the board, across the yield curve, factor into the fed and how they will manage to keep rates restrictive enough to, you know, kind of hamper the economy from going gang busters? >> yeah, the last piece of the puzzle, the unemployment data, still pretty good, you know, below 4% or so, and so, that would be the thing that we were

all kind of waiting for last year, to kind of confirm what the fed's, like, kind of final job was to do, to moderate the pace in which the economy is moving. after that gdp data, the jobs data, it seems like the economy is humming along. so, that's why i think the expectations for a dovish fed is probably misplaced. and it might be even misplaced as we get into march a little bit, but i'll just say this. we've talked now for five minutes and we haven't mentioned the geopolitical risk that exists out there. last night, you know, when this horrible attack happened in jordan, crude oil was moving higher, we've seen the dollar move higher. when you think of all the headwinds to growth out there, and really the risk of an expanded situation going on in the middle east, with what's going on in the red sea and the like. so, to me, i think that the risks get higher and the concentration and the same things that got us here exist and they're probably a bit more acute now. >> we like to play that game -- >> i was going to say.

it's amazing. i can't believe you said that. >> 15 years that's what happens. >> we play this game. >> if i told you what happened last night, where do you the markets would be today? >> did i write that down somewhere? >> it's like -- as if it were scripted. >> lindsey graham says bomb tehran, you told me about the deaths what's going on. i would say oil is north of 80 bucks easy. yields, i don't know, because sometimes there's a flight to quality. but the s&p's got to be down 40, 50 handles, given what we -- given the runup that we've seen and that did not take place. yields went lower, for the other reasons. loyal actually reversed. and the market rallied. the market is impervious to just about everybody right now. >> and that makes you even more skeptical. >> makes me skeptical again. listen, i read a stat from a fact set this week that the top five or six stocks in the s&p 500 account for 54% -- 54% year over year expected growth. the bottom 494 are expected in q-4.

and this is a quarter that's behind us, to drop 10%. so, again, the concentration, the expectation for these top five or ten names is so massive, it's broader than it's ever been, at least in my career, so, it just makes the potential for an accident, like that much likely to happen. >> can we rewind to a year ago, when we were here at this hotel for this conference. >> sure. >> and the consensus was so negative. >> 100%. >> and here we are a year later and the nasdaq is up 35% or so. >> and you can tell people are very excited about what's going on. i mean, the difference in a year is amazing. not only that, the weather over the year. it's like san francisco right now. it's chilly here, mel. as you can tell. but people are excited about the opportunities, they think the fed's out of the way, they think inflation's been tamed. they think unemployment is going to stay below 4%. that small caps are going to catch up. it's polar opposite of what we saw a year ago in this same location. >> all right, well, for more on the next move, we're joined here

by elizabeth burton from goldman sachs. elizabeth, great to have you with us. >> thanks for having me. >> you don't think the fed is going to pivot until later this year? so, how are we set up in relationship to that? it feels like we -- not we, market participants are expecting something much sooner. >> right. we believe the pivot will start around march, and continue in three cuts, and then go to a quarterly cut cycle. in terms of the folks that i talk to most, which happen to the institutional community, here at this event today, they're not trying to act on these individual decisions, they're thinking a the longer term effect of a higher interest rate environment, which, even if we at goldman sachs believe interest rates are coming, as a former cio and alocator, i still think i would be thinking about the risk to the upside, in a higher for longer environment. >> do you think that is being reflected, at least in the stock market, through the russell 2,000 small caps? where the cost of capital is higher, right?

obviously these are more of a headwind to them than the large caps, which are not dependent, they seem to be fine either way. lower rates, higher rates, that sort of thing. do you think that's being reflected in the disparity between the closing today at a new all-time high versus the russell 2,000, which is still down? >> on the small cap story, one thing they are taking advantage of, they have been able to take advantage of some of the short-term rates. they are putting their cash into higher rates than the large caps used to be able to do. they are not totally getting hurt in the silo by this type of rate environment. why they're underperforming, i don't know, but to the points made earlier, i think the scone trag concentration risk, it's something to look at. i know small caps, people may not agree with that, but in general, the risk of doing nothing is pretty great here.

>> alternative asset class conference and you're here, so, connect those dots. >> right, i've been coming to this conference for years, it's one of my favorite events. and i think what's interesting this year is that we've seen a resurgence in interest in hedge funds. the last couple of years, coming to this event, you've seen a lot of interest in private credit and equity. there's still a lot of interest. what's interesting to me about the interest resurging in hedge funds, i think it's partly a liquidity story. investors aren't hurt by the denominator effect, they are hurt by the cash not getting back to them. so, i think one, they're looking at hedge funds as a way to get to more liquid, but two, they are still concerned about the market risks you've been talking about, and sometimes it's hard to put on an options strategy and know which one might pay off for a myriad of scenarios you're trying to prepare for.

>> what kind of alts? >> we like real estate debt, that's one of our favorite trades going into the next couple years. we still like private equity. what's interesting from the aloe kay or the perspective, three, four years ago, there was so much cash, just every private equity fund that came into your shop, you'd consider giving money to. now, you have to be more selective. you don't have as much cash to go around, so, interestingly, strategies are getting a lot more attention, because what the focus is now, do you really have the operational capabilities to increase margins, you know, grow them over time, not just have some fancy financial leverage gimmicks. >> is there concern that higher rates could make it more difficult for products to get off the ground? >> i think higher rates are an issue for all of the asset classes. in infrastructure was a good play last year, but a lot of deals not getting done because buyers and sellers are having to

reunderwrite, so, that's going to be problematic for all alternative asset classes. >> what do you think the primary reason for, let's say, only three cuts versus what the market was expecting, let's say a month ago, was maybe five or six. what will be the reason for that? unexpected growth that, you know what i mean, essentially, that some of the nay sayers, you know, who are still planning on a recession coming at some point, like, what will the reason be for only three cuts this year? >> well, i think what we've heard from this fed coming out, they want to take a measured approach. that language might change. but i think they want to see that we're trending in the right direction. inflation isn't made up of one data point. it's made up of a lot. and they are not all constantly trending in the same direction every single print. so, part of that is that measured approach to sort of see as the data continues to play out which parts are stickier than others. >> elizabeth, thank you for joining us. great to see you. >> thanks for having me. >> alternatives are fascinating, and you mentioned higher rates,

higher -- makes it more difficult. but in elizabeth's work, she suggests, inflation is probably going to be stickier than more problematic than the market realizes, i agree with her on that. right now, we're not seeing it, but you're starting to see, in some facets, a reacceleration of inflation, which makes the fed's job that much more difficult, especially when the market's at levels we're at and the expectations. >> yeah, mel, and you said, just the change in sentiment year over year, what the -- i was in that camp, especially economic weakness. and now, the exact opposite and i think what elizabeth is kind of laying out is possibly the stagflationary environment. if we are going to -- listen, that gdp print and the gdp that we saw throughout last year was far better than expected. but that will moderate. the fed themselves in mid-december was pointing to 1.4% growth this year. but if rates don't come down as much as market participants are

expecting, i don't know how well that will translate into valuations for risk assets that are very pressed to the upside right now in the s&p 500. coming up, tesla taking their cyber truck road show to china. the ev maker hoping to keep excitement up, but will chinese regulations become a road block for this company? the details are next when we head to beijing live. and much more here in miami beach. brad gerstner will join us. where he sees opportunity in tech land. plus, his top picks in the space. you're watching "fast money" live from the global as coeren.t nfce we're back in two. (ella) fashion moves fast. setting trends is our business. we need to scale with customer demand...

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welcome back to "fast money." evergrande was ordered to liquidate by a hong kong court overnight. eunice yoon has the very latest. eunice? >> hey, melissa. trading in evergrande-related stocks resumes today, after being halted monday along with that court order. a hong kong judge agreed with the creditors that the struggling property giant has had ample opportunity to devise

a debt restructuring plan, and the judge literally said "enough is enough." it's unclear what the impact of this order is going to be, in a statement, evergrande's ceo had said that he was sorry about the winding up order and that the company would ensure home deliveries and promote normal operations. separately, he told a local paper that the hong kong order only affects the specific listed company. now, i spoke to a creditor who said that that was not a justified comment, saying that the lick by day or the is legally entitled to china's onshore assets. now, this is what bankers and lawyers have been telling me, that what happens next really depends on whether or not the chine chinese-backed gsh government-backed why knee courts would recognize the hong kong lick way day or thes, and in that way, allowing them access to jeff gevergrande's as

here which is mainly the bulk of the company's business. guys? >> and eunice, this will be a real test for foreign investors, especially if this doesn't happen smoothly, then that could really further sour appetite from foreign and overseas investors. >> well, i would say among those creditors, for sure. one of -- the creditors said to me that they had just lost patience, especially in the past six months, because they felt that they were just getting stonewalled the entire time. but i have spoken to other foreign business executives who said, these creditors took a risk, they invested in what's seen as a very risky part of the economy at this point, and they have to own that risk, as well. >> meantime, eunice, busy day, busy weekend here, tesla kicking off its cyber truck tour in china. over the weekend. the company is taking it to

eight different steps across the country. but there are strict regulations they have to get around. >> yeah, absolutely. that's one of the main points that was coming up, when people were eyeballing the cyber truck. there's a lot of excitement. they are -- you know, one of the key points here is that tesla does still dominate the ev space, but a criticism has been that they don't reflesh their models. so, this promotional tour was seen as a way to get people excited again about tesla technology. a big hurdle, though, are the regulations, especially around trucks. and one interesting point is that people pointed out that tesla avoided the use of the word truck in their chinese labeling. basically, it's the cyber truck here is called a traveling wagon. and it's -- the hurdles is that there's so many strict regulations about any type of pickup truck, so maybe this is a

way that would make it a little easier for tesla to sell the cyber truck, at least to regulators, but the population and the public really seem to enjoy it. >> eunice, thank you. eunice yoon in beijing. i'm sure traveling wagon in mandarin is catchier than in -- >> can only hope. >> we had a traveling wagon. >> they have a lot of hurdles in china, not just selling the cyber truck, just selling their normal vehicles. >> expectations for the cyber truck here in the u.s. are not particularly -- they're not producing a lot, there's probably not going to be a lot of demand. you saw how it's operating in the snow. have you seen the videos? i just think that when you think about china and you think about some of the nationalistic tendencies they're having right now towards, let's just say, automobiles, evs in particular, i just don't see that as a huge driver over there in china. and it's also one of those things, if they don't like pickup trucks, it's a little consp conspicuous, when you think about it. so, it's doa in china.

>> rivian is an interesting trade, if you are looking for trades. in november of last year, the stock traded down to $12.25 or so. by the middle of december, it was trading $24. it reversed the entire thing. so, we've roundtripped the move, but basically put in the same low we saw in november. so, if you are looking for a trade, this is sort of an offcycle report, i think they are mid-february, or so. rivian could be interesting, especially if tesla just put in a short-term bottom. more bang for your buck. dan's talked about this stock a number of times. >> all right, here's what's coming up next on "fast money." a big week of earnings, and with most of the magnificent seven reporting, all eyes are on tech. top investor brad gerser in joins us to dig into the name and his top pick in the space. plus, a sports betting debut. flutter spreading its wings and entering the u.s. market, giving investors another way to play the space. what does it mean for rival draft kings? investor rick heitzmann is here to weigh in. you're watching "fast money,"

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is. welcome back to "fast money." the s&p closing at another all-time high, as investors await big-tech earnings, as well as wednesday's anticipated fed decision. the nasdaq rising more than 1%. shares of chipotle up more than 3% today, hitting an all-time high. that stock is up nearly 50% over the past year. and valero shares higher today, despite a down day for crude. valero up 7% this month. what's behind this? >> let's talk about chipotle real quick. obviously now, starting to get ahead of itself. they report in early february. you're going to see this continue to movement analysts are probably still behind the curve. there was a line around the corner for cmg at the airport -- >> i'm lying. i was just -- >> fake anecdote. >> if you look at what's been going onvalero -- who is our friend that we talk to all the

time, halima croft. the crack spreads, without getting into the weeds, are favorable. i think they can go higher. >> you know what the line around the corner was? shake shack. >> also in your imagination. >> when i think of, like, literally the performance of a chipotle and i think of mcdonald's, which just made a new all-time high, a company that just swung to gap profitability for the first time ever, double-digit kind of sales growth here. i think this is the $4 billion enterprise value, this is a cheap, i think, asset in that space. i don't know how you keep piling into, let's say, a chipotle or a mcdonald's. >> you're right. people have been saying that about cmg for three years. and when they split, like, 15 for 1 or 10 for 1, oh, oh, all these people. by the way, i worked at shake shack, as you know. >> i know. >> no, seriously. >> what was your specialty? >> um -- >> the shack burger. >> you know, pounding those patties down. i wore the little hat with the net. >> i hope so. >> yeah. coming up, fan duel parent

flutter listing in the u.s. today, giving investors another way to play the sports betting space. what will the debut mean for competitor draft kings? early investor and current shareholder rick heitzmann will dig into the listing and what is next for the sporting betting industry. but first, brad gerstner is here to lay out what to expect ahead of earnings this week, plus where he sees opportunity in the space. don't go anywhere. "fast money," live from miami beach, is back 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. 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.

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and doesn't spy on your searchs and duckduckgo lets you browse like chrome, but it blocks cooi and creepy ads that follow youa from google and other companie. and there's no catch. it's fre. we make money from ads, but they don't follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. welcome back to "fast money" live in miami beach from the i-connections global alts conference. it is a key week for tech stocks. apple, microsoft, alphabet all on the calendar. brad gerstner is here with us on-set. >> great to be here. >> we're talking about the markets, just propensity to go

higher, so, what does that mean in terms of the setup for these big tech stocks? >> it's a lot -- the markets are a lot more heated up than it is right now in miami. but you know, listen, we've come a long way quickly. remember, the first week of the year, we -- mag seven was down and everybody was panicking, right? that the run was over. and then we've had a 30% move out of nvidia higher, we've had a 10% move out of microsoft higher. so, we've had a big bounce off the bottom. and this week, they're going to have to deliver on earnings or beat earnings in order to just stay where they are, right? and so, i think on balance, if they were priced where they were in the first week of the year, i think you could make some fast money this week, but the reality is, the month has already made people some fast money. nasdaq up 4%, stocks up 5%, 10%, so, you know, i wouldn't be surprised to see a little breather this week. >> so, pulled forward a lot of enthusiasm in a short period of time in a handful of names that

did they lheavy lifting. the stock sold off 20% into the print. when they didn't deliver, the stock was down 12% the next day. when you think about a microsoft, to your point, has rallied 12% in a straight line in three weeks, expectations couldn't be higher, creating an all-time high valuation. it wouldn't take much to have that stock down 5%, 10%. >> listen, it would take a lot for it to be down 10%. the problems at tesla were idiosyncratic to tesla. i think they are beginning to get constructive again. i think it looks interesting at these levels. but microsoft is the leader, cloud leader, in a.i. i don't expect a blow away print, but we expect them to beat this week. i think the beat will be enough for it to hold its head. but it's going to take a really big beat to get it moving higher after a 12% move, to your point. and if they don't, if there's a disappointment, like i say to my team, if your numbers are going higher, the stock's going higher. the problem with tesla, its

numbers went lower. so, microsoft, we'll see when they report. i don't expect it to be a big beat, but we expect it to be, you know, continue to be constructive. >> today's the 29th, thank you, guy, the 22nd, super microcomputer guided, and the stock is up in a parale boic way. they came out with earnings today, the upper end of guidance, probably higher than the top end, and the stock is up again. those are parabolic moves that we see sort of more towards the end of things than the beginning. however, maybe this is a start of something. how do you wrap your head around something like that? >> listen, super micros their guide up to 40%, to $14 billion. that's why you're seeing these moves. plus, as we were discussing, it's a heavily shorted stock in the hedge fund community. the stock's up 75% this year, on numbers that are going a lot higher. this isn't about just wild multiple expansion, right? i think what you have in this moment in time is a platform

disruption, an a.i. super cycle. it's very difficult to forecast, right? think about nvidia at the start of last year. data center revenues were expected to shrink by 6%. we thought -- we had huge variant perception by being up 16% and it ended up 25%. so, that is a wild difference between the beginning of the year forecast and the full year forecast. >> so, super micro is just -- it went up and now hedge funds are short, so, this is a squeezy sort of action that we're seeing in today's session. but in terms of the a.i. leader being nvidia, perhaps, is that still cheap in your view? >> so, nvidia ended last year at 20 times earnings. its lowest multiple of earnings its ever traded at. despite the fact that it's the -- the purest play a.i. name in the space. it's traded up to 26 times. so, there's a wall of worry, right? the number of times i heard from my investors and others, it's

doubled over the course of the last year, we need to sell it. for us, we pay attention to the numbers. our numbers are still well above the street for this year. i think there's a lot of doubt. the common discussion at the end of last year was that they pulled forward all the a.i. training demand for the next several years. that's not what we see when we talk to customers who are putting bigger orders in the order book. so, we think numbers continue to go up. and super micro, they are building the servers for meta, which leads to the increase in revenue. but let's be clear. if you miss your numbers, if you are super micro, nvidia, microsoft, if you miss your numbers with this level of expectations after these moves, you're going to have a tesla-like event. >> amd tomorrow after the close, everyone is excited they are going to have a computing product to nvidia. we know the demand right now is off the charts here. here's a company that's expected to grow earnings 50% this year, grow sales 20%.

it's a 53% gross margin company versus nvidia, which is about 75. the stock has doubled since the end of last quarter. so, what's pulled forward? would you be buying after the stock has doubled in four months right here? >> so, we don't own amd. we own a lot of nvidia. it's been that way since the end of '22. we think amd will be beneficiaries, the increased inference, which is going to go on, you know, driven by things like microsoft's co-pilot. we see a lot of ordering out of all the folks we talked to about amd. but i still think the market leader here, 90% percent share is nvidia. if you want to express that bet, right, which is a.i. leadership at 25 to 30 times earnings, which is consistent with historical averages for nvidia, i think you just own nvidia. >> a year or so ago, maybe a little longer, the ceo mentioned taiwan being -- i don't want to say the risk, but he was concerned. is that something that worries you, the potential for a

china/taiwan dustup? >> i don't think it's in any of our interest to have the fears over a hot war that we had last year, right? the summit which occurred in silicon valley between biden and xi was welcome. we've seen a lot of interaction, including jensen going to china recently, so i think that, you know, the -- our concern about that risk is less today than it was six or nine months ago, but clearly, this is going to continue to be an issue for the united states, right? gina raimondo has made clear, you know, that we're not going to sell our most bleeding edge chips to potential adversaries, right? that could be used for military purposes. so, i expect they'll have to continue to navigate that, but they've had to continue to navigate that over the course of the last 18 months, guy. and i don't think there's that much baked into the cake this year, like, we're not heavily dependent upon some major shift in terms of distribution to china. >> so, which earnings report are you most concerned about this

week? microsoft is a concern? >> i wouldn't say concern. i'm just -- this show's called "fast money," thanks for having me on, my first time on, i'm psyched to be here. i don't think there's fast money to be made in microsoft and amazon this week, right? the "fast money" to be made was when everybody else was pessimistic at the end of last year when mag seven traded down in the first week of this year. if there was one name that i think is better positioned this week, it's meta. i think people still underappreciate the commitment to efficiency at meta, right? we talked about time to get fit over the course of 2023, we see a lot of companies now, i think you're going to hear it from amazon on thursday. a lot of companies that are dialing up those margins, holding the line in terms of new hires, while their top line continues to grow. i think you're going to hear that on thursday out of meta. and they are at the center, like, all of their businesses are accelerating. whether you're looking at reels, whether you're looking at

whatsapp, mark just announced on threads today -- they've introduced a new version of code lam ma, 70 billion parameter model. they are leaders in a.i. and they can monetize a.i. if you think about his, all of the other cloud providers, right, that -- they're competing against one another to effectively rent a.i. tools, right, to enterprises. meta is actually deploying those a.i. tools to increase monetization, to increase engagement for the benefit of the consumer. if you look at a private company that we're invested in, tiktok continues to accelerate, meta. so, we think they're one of the principle beneficiaries and they have so much discipline in that business and we love the things they're investing in. another thing we expect to beat this week out of them is the meta a.i. glasses. a lot of people think about these and comingle them with ar very vr, they're not. this device for the first time, is being challenged by a.i. devices. you're going to see a.i. devices

out of byte dance, you're going to see illt out of google, meta and it's not just going to be glasses. all sorts of devices that are powered by a.i. >> brad, thank you so much. >> that was great. >> yeah. of course he is. >> how is this the first time you've been on the show? >> he's usually on "the halftime report." >> oh, so we're sort of -- >> chopped liver? >> yeah, well. >> no. >> not at all. >> great to be here, you guys. >> sounds like apple should be very worried. >> yeah. and not that anybody cares, but remember, i went to staten island for that ar shoot -- >> you had to fly like a bird and you got sick. >> hopefully it's improved for days. i was knocked out for two days. back to you. >> that's all? >> yeah. >> you agree with him on meta? >> think back to late 2021, they changed the name to the metaverse, they spent a lot of money, so, what he's talking about is the reversal of a lot of that spend, but they are leaning back into a lot of these

themes from late 2021. so, i think this is going to be the thing. that quest device is, you know, it's -- i don't know, $500 versus the vision pro, which is $3,500. they have 3 billion install base on almost every one of their, you know, services, i mean, at some point, they will figure out how to monetize it. i think it's in the stock right here. but his point about using a.i. to better everybody ads, that's the key point and he's all over it. that's where the upside comes from. coming up, placing your bets. fan duel parent company flutter hitting the u.s. market today, giving investors another option for sports betting. we'll hear more from an early investor next. and bringing the flavor to miami. the cofounders of hot sauce maker trust are here, and they will give us a taste of their unique products. it's going to be hot. "fast money" is back in two. is it possible? with comcast business... it is.

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welcome back to "fast money." fan duel parent company flutter is making a big bet. the listing on the new york stock exchange today, challenging its rival draft kings for u.s. investment capital. the shares trading under the ticker symbol flut. for more, we go to contessa brewer. >> you saw where flutter shares ended the day, up a quarter percentage point at $205.50. they started the day with a lot of, you know, hoopla, there was a marching band. turn that up, we want to hear

that. rob gronkowski up there for the opening bell. as for the hype, the u.s. is the most important market for revenue and growth for the ireland-based company, and fan duel continues to be the market share leader. 51% share based on net gaming revenue. and it has overtaken bet mgm and just overlook draft kings in december as the leader in online casino. and yet, draft kings has grabbed most of the earned media, and certainly the attention from equity investors publicly traded sports book, it offers a lot of opportunity. it closed higher today by almost 4%. flutter's ceo peter jackson told me today, he's eager for the media coverage, but also, for those high levels of liquidity from investment here, and in may, this is new, he's going to take this proposal to the shareholders to make the u.s. its primary listing and move london to a secondary listing. more immediately, of course, melissa, looking forward to the super bowl. he said fan duel had its second best game ever yesterday after

super bowl xx 23,023, and they y there were 60,000 bets per minute rolling in. that's 10,000 more than peak super bowl last year. >> wow. contessa, thank you. contessa brewer. joining us now is first mark cofounder rick heitzmann, an early investor in another online sports betting stock, draft kings. good to see you. >> great to see you down here. fantastic. >> so, how should we think about the flutter listing? because oftentimes, we tend to simplify things, draft kings, all the money will go to one of these two listings, is that the way to think about it? >> i think it's a validation of the market. we're seeing online gambling, i-gaming or online sports book, really growing in the market. there's 11 states live now, represents several billion dollars of market value and it's going to probably triple of quadruple over the next three years and that's going to open up opportunity for everyone. >> rick, you know, 2022, draft kings was trading ten bucks, it

lost 80% of its value. the concern there was the spend to acquire customers, it was just an arms race. here we are now, it's up 300%, expected to maybe hit gap profitability next year. is the space led by draft kings and the public markets about to hit an inflection point? >> i think it did hit an inflection point over the last football season. if you look at draft kings investor day analysis, they're projecting a billion dollars of cash flow this year, so, maybe that eps pauses, but they are driving their way to it, and they are still growing revenue 50%. so, that was a baby that was thrown out with the bath water last year, and jason robins, the ceo there, has done an excellent job. >> draft kings, so, flutter comes, $36 billionish. if you just do back of the simple math, if draft kings had a similar valuation, you talk about a company should be twice what it is in terms of stock price. i understand it's not that simple, but to a certain extent, one has to think draft kings is pretty cheap here.

>> it is. there's still -- flutter had a bunch of different things going for it, which gave it some optionality, especially in the traded london exchange. draft kings had some ups and some downs. they were growing very quickly. they ran into early regulatory challenges. they went public during difficult time, and now they've managed to overcome it and the story is just coming to light. so, significant upside in that stock. >> how do you view the space in terms of the primary competitors to a name like a draft kings, would it be flutter or bet mgm? >> it would be both those. bet mgm is probably the biggest. it would be flutter and fan duel in the u.s. but then, there are also consolidating the back end of the market. like any market explosion, you see all kinds of competitors coming in, and the market gets organized. so, you've seen draft kings and fan duel really capture market share. and really understand what their customers need. reinvest in the product and grow that over the last couple of years. and that consolidation has occurred. and those are the twbig

winners, and they're going to continue to take tremendous share in a quickly growing market. >> in terms of the back half of the market that's going to organize, what happens to that share? >> they're falling apart. so, they can't keep up with the spend. they can't keep up with the product. they can't keep up with the regulatory. and they're either falling away or being consolidated to other places. >> rick, good to see you. rick heitzmann. >> thank you. coming up, we'll get a little spicy with the cofounders and co-ceos of truff. more "fast money" in two. 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.

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welcome back to "fast money." it's not just the miami sun that's hot down here, though it's not very hot today, it's actually cold. >> freezing. >> our next guests have made social media the secret sauce behind building their hot sauce empire, truff. they secured the sauce handle in 2014, and somewh parlayed their popularity to a partnership with kim kardashian, all without a formal culinary background. nick and nick, great to have you with us. >> thanks for having us. >> no training. did you like to cook on the side? how did you come up with this idea and come up with the formulations? >> yeah, we were big foodies growing up.

in college, we tried to find different types of hot sauces to spice up your microwave dinners, and at the same time, we were obsessed with social media and entrepreneurship and consumer packaged goods and -- the sauce handle just kind of fell in our lap and the rest was history. >> so, did you know that you would create a sauce company or just get the sauce and think that would be applicable to other things, potentially, as well? >> so, it didn't start off as a sauce company. we just built a very cool instagram following. pop culture-centric, foodie stuff. and after awhile, we were like, hey, we need to make a sauce for this account. and we looked at the different sauces, looked at the market and saw what we thought was missing and brought it to life. >> nick, you think about when you came to be, inflation started to take off, probably around the same time. how much of an impact was that to your business? what input cost was most effected by that? >> so, luckily, we were a digitally dated brand. a lot of people were, you know, on their cell phone, a lot of

people were cooking at home, so, for us, we were able to continue connecting with our consumers through our digital outlets like social media, but also educate them on new ways to spice up their home cooking, and our product fit very well in the mix. >> so, you guys see yourself expanding to other products? you have proven the concept that you can get a good handle and make good content, if you make a good product, you have a direct to consumer model, what else are you thinking about? >> we have more than just this. we have -- this is -- the black is our original. and then our second kind of category was pasta oil, truffle oil, truffle salt and we also have mayo. hot sauce is our hero, our core. and this green sauce, which we're trying right now, the newest sauce, our first nonred sauce. >> it's pretty delicious. >> incredible. >> which is kim's favorite? >> she's a huge fan of the oils and the salts, but shedoes love

the green one. >> i just did, you know -- >> i know. >> i have a delicate constitution. it's actually very good. this is what i take, tough hot sauce. buy it at the shop near you. >> put that on your feed. nick and nick, thank you so much. >> thank you for having us on. coming up next, final trades. slipping out of balance into freefall. i'm glad i found stability amidst it all. gold. standing the test of time. 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.

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we're back here tomorrow, going to be day two here from the i-connections global alts conference. a huge guest lineup tomorrow. the original traders behind the big short, they will be back together, they'll be joining us here live. we'll get their best trades going into this year right now. you won't want to miss that. meantime, don't go anywhere. "mad money" with jim cramer my mission is simple -- to make you money. i am here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. mad money starts now. hey, i am kramer. welcome to mad money. welcome to cramerica. i am just trying to make a little money. my job is not just to entertain, but to educate, to teach. so called me at 1-800-743-cnbc or tweet me at @jimcramer. we got to stop fretting about how so much of our gains are cut straight in te