>> okay. >> or, device out there, so, nxp, we think, given their kind of structure out there, probably a little bit better positioned than others out there, but you are right, morgan, it is a risk. >> okay, angelo, thank you. shares are higher right now. that does it for us here. busy day tomorrow. >> we do, indeed. "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. the unstoppable stocks. two of the biggest names in big tech getting even bigger this year. and they are helping the so-called mag seven cement their leadership in the market. plus, healthy returns. shares of eli lilly surging 6% ahead of its earnings tomorrow. will the results deliver another shot to the arm of this red-hot pharma stock? or has it come too far to fast. and later, a cosmic move for a cosmetics company and a media mogul confirms his interest in

paramount. the headlines are coming up. i'm melissa lee, coming to you live from studio b at the nasdaq. on the desk tonight -- tim seymour, dan nathan, guy adami, and kristen bitterly. we start off with what seems to be unbridled euphoria in a handful of names. take a look at shares of nvidia, surging almost 5% today. the shipchipmaker is up 40%, ad half a trillion dollars in market cap in that time. meta on a hot streak. jumping almost 15% in the past five sessions, even with today's losing day. the social media giant gained nearly $200 billion in market cap just on friday after a blowout earnings report. so, what do you make of this euphoria, what seems like it, guy? >> well, it's remarkable. goldman sachs reiterated their buy in nvidia. today, it traded 1.5 times normal volume. the amd quarter last tuesday, i

think it was, i didn't think it was particularly good. i thought the guidance was weak. it's right back where it was, if not higher than before. microsoft, the same thing. the money flusflows are great. i'm not necessarily a believer, but you have to wonder, at what point does something trigger this thing? the story can't last forever, and double ordering, triple ordering, margins compression, as people get into the space, more competition, i don't know. >> for nvidia. >> i think so. >> haven't we learned from the hyper scaler earnings in the past week or so that there is demand? doesn't that confirm this nvidia bull story? >> i think it does, and february 21st, we're going to hear a lot more. and, for a stock that's done 40% when the entire semi space today set new ig, i believe. and that, to me, is the dynamic. the question is, how crazy is it, if you can throw $25 a share in eps on nvidia by 2025?

suddenly, the stock's not as expensive as it seems, given the growth it's given you. meta, they did a div, that was exciting for some, you know, some types of investors, money managers that went the dividend, but anywhere from 20% to 25% over the next three years is what most of those research analysts that were upgrading the stock said. is it crazy? semis are up 50% or so since october 26th when the market -- 50% for the biggest, highest growth group in the bunch, and so, yeah, it's shocking, it's startling. but again, the companies that are really the ones outperforming and again, there hasn't been good br breadth. >> you texted med a story that was titled "sell nvidia." i sort of know where you stand here. >> it was a fascinating note. a fixed income analyst over at barclays, and again, he's obviously, relatively constructive on the story and

the secular move and all the things going on in and around that, underweights the stock, though. it's not the equity analyst over there, but really laid out the potential for all these things that guy just mentioned, whether it be competition, margin compression, this movement from the training, you know, level of a lot of the companies that are buying these gpus to the inference level, which will be less data dependent or intensive and the like. here's the deal. coming into this year, okay, the stock looked cheap, right? it had grown into those kind of numbers that had been ratcheted up. after a 45% gain just in the last month, it's no longer cheap. so, when they report on february 21st, if they report a deceleration, this stock's going down. so, when you talk about what's unnatural about this, i mean, to me, when you go up -- literal little three-quarters of a trillion dollars in a straight line, without any news -- there's a massive customer concentration --

>> without any news? i need to stop you a little bit. without any news? i mean, again, a company whose business doubled and is projected to -- >> that was last year's news. so, basically, okay, so -- >> that has a lot to do with the news. >> two customers, meta and microsoft, are 30% of their revenue, and had great quarters. microsoft doesn't react well to its own quarter. that's in the stock, that's in nvidia's stock. meta had that 20% gap or so. so, i think when you have that customer concentration, you have to go back 20-some years to the internet sort of thing. there was another thing that jim, who we spoke to last week down at the conference, he mentioned that, you know, the company, nvidia, and it is detailed in this article, also, and in this barclays note, they made two dozen vc investments in the nvidia space, where those companies, they take the capital and they're waying the gpus and the gpus are serving as collateral for the capital. and we saw that at the turn of the century, right? this is not going to end particularly well. you can't go up three-quarters

of a trillion dollars on not much news, tim. not much company-specific news, and not think that it has the potential to the go the other way just as violently. >> how do you read all these data points out there? >> i think we have to bring it back to earnings. we've seen this in the breakdown of the magnificent seven. they are priced for perfection, so, any type of news that would be negative goes into earnings, you can expect downside exposure. as long as some of the companies continue to deliver what is spectacular earnings growth, there's going to be continues funds that come into it and you're going to see investors almost hide out in some of those stocks. the same thing that we saw last year. >> hiding out in a stock like -- it's almost. >> counter intuitive. >> ironic. to say you're going to hide out in a stock like nvidia. going to hide out -- maybe meta is not the same way. >> you're going to save your job by owning nvidia. fund managers are going to make sure they have this on their

balance sheet at quarter end, because -- i say this all the time, but you don't get fired on the way down, typically. you get fired for missing the move on the wayup. and the move in tech has been so violent, especially in terms of semis, and -- i don't think that the price action has been sane, but i do think there's a lot of things going on, including, you know, a new paradigm, a new spend, a new addressable market, $8 trillion of cash, a lot of people that thought the market was going -- not going higher. a lot of people didn't expect that payroll number. in the environment we have, if you have slower growth, where else do you pile in? it's been defensive forever. >> that's your point, too. all the money parked in money market funds. >> exactly. it has to come in. but the interesting thing about megacap tech, it's decoupled from what you normally think about from a rates perspective. so, when we saw rates come down, you saw a broadening out of the market. that was the story in november, december. now that we've seen volatility in rates again, money went back

into these companies and they caught even a higher bid, so -- what was the news story, rates continue to drives a lot of this. >> we'll talk about rates, i'm sure, up 13 basis points, up to 4.16. in terms of history, i guess, doesn't matter, but right now -- >> but it rhymes. >> but it rhymes. >> what does that mean? >> giving nvidia $100 billion in revenue, it's trading 17 times revenue, which is historically a pretty premium multiple. probably twice what the industry typically trades at. the question is, does it matter at this point, or will it grow into it? >> and all that talk about the market broadening out and how, you know, great that was for this bull market that -- >> five minutes. >> it didn't last long. look at how poorly the russell 2,000 -- it's smaller in totality than apple or microsoft individually. look on a day like today, stock's like air products got absolutely destroyed. a chemical company, do you see alcoa down nearly 9%. so, there's lots of sectors in the market that just act really

poorly. i don't know if you saw the auto stocks. i could go on and on. there's plenty of groups that you might think about dollar cost coveraging or getting on the other side of this hiking cycle and what it might look like when we normalize rates, we get the economy in the spot where the fed wanted to get it to and inflation is manageable, all that sort of stuff, the geopolitical stuff is less of a concern, but you don't have a choice right now. the point you guys are making, hiding out in those names, those are the names that are going to crash the market. if there's a reason to sell the stocks -- remember google a week ago, after its earnings was trading down 7% until the rest of the things got back on their horse? we lost tesla, so, if you start losing these things, fundamentally one by one, don't think for a second, february 22nd, the day after nvidia reports, that stock could not be down 15% or something like that. i know you guys think that sounds crazy -- >> no, no. >> do the math. >> doesn't sound crazy. it -- i think there's plenty of arguments that are going to be able to support at least a

short-term on the valuation, even after the next couple of years. competition, look, i'm not smart enough to know what's going on with everybody else in terms of just what i've heard from amd and intel. right now, 6 to 12-month lead on nvidia. but i agree with you. and i look at the rsp or the -- the etf that tracks the equal weighed s&p, we made two-year relative lows today. so, for everyone that's looking for -- this market, the broader market, the industrial market that's supposed to benefit so much from a.i. has been selling off for the last year. and it had a little breath of fresh air in november on a weaker cpi and a ppi, that was kind of a trigger, it got small caps going. i don't think you have to own small caps. >> i have a question, i'll pose it to kris. when you look at the performance in -- the outperformance of megacaps versus the other sectors doing terribly, are we not pricing in soft landing? you see a soft landing, are we pricing -- if we were pricing that in, we should have the participation of the other groups in anticipation of that

soft landing. >> yeah, so, i think over the past week, basically, this goes back to chair powell and all of his signaling to the market. the market got ahead of itself in terms of pricing in a cut in march. our base case was always that the first cut was going to be in may or june, just because the growth, the data that we have, and the -- just the sheer facts around, growth is strong, the employment backdrop is strong, so -- march was always going to be a little early for the fed to be in a position to cut, so, that pricing out of may and june, if we believe that fed funds is at a peak, if we believe that the trajectory is lower in rates, if we believe that inflation is going down that trajectory to about 2.5% by year-end, then that's good for the broadening out story. when and where it happens, we're going to need more visibility into the fred's trajectory, though. >> timing is everything, though. >> what's interesting -- >> that's the tricky part. >> the yields, the move in the bond market, guy rightly talks

about volatility, and you've had essentially a v-shape in the long end yields over the last week. what was it? it was crazy on the day that powell spoke and effectively was more hawkish, and the things kris is talking about pushing back rate cuts, but as if the market believed the fed was going to essentially keep their foot on the neck of the market that much longer and push us into recession. it was a move in the long end that doesn't make sense and that's the recovery we've seen. >> the bond market is clearly confused. when you go from 3.82 a week and a half ago to 4.16 today, on essentially just a lot of rhetoric, the bond market is struggling, as well. i think one of the few people that think rates can continue to go higher, because i think the inflationary pressures are going to start to reaccelerate. i don't think that's particularly bullish for stocks, but quite frankly, nothing's been bearish for stocks now for quite some time. >> let's turn now to an earnings alert on nxp semi. shares are higher.

steve kovach has the details. >> hey, mel. the beat on top and bottom line. guidance, a little bit mixed here. midpoint of the eps range s slightly higher than estimates of $3.15 a share. but revenue slightly below, sorry, estimates, of $3.2 billion, and some optimism here from the ceo in the earnings release, saying, quote, we are navigating a soft landing by managing what is in our control, especially limiting overshipment of products to customers. supply was a big problem for many chip companies the last year or so. and take a look at some of the segments here. mostly beating expectations. automotive revenue was a beat. industrial and internet of things, $662 million, another beat. mobile, $406 million, a hefty beat there, and communication in infrastructure, that was the only miss there at $455 million in sales. look, earnings call is going to

be tomorrow at 8:00 a.m. eastern, so, expect some more color there, but for now, see shares up 2.7% there, mel. >> steve, thank you. steve kovach. we heard a drum beat of companies supplying to the same end markets, worries about the inventory, overbuilding in terms of the inventory and here we are, nxp seems to have navigated that. >> agree. but you can get your arms around this one on valuation. 16 times next years number, ish. not ridiculous. in terms of price to revenue, we talked about nvidia, 17 times, this is probably closer to five, which, again -- look, i'm not saying nvidia should trade five, but 17 is stretched. >> apples and oranges. >> yes. >> this stock has done nothing for two years at a time when semis have gone through the roof. the argument is, this is one of these, you know, overly commoditized chip names that i think people, you know, see as cyclical, frankly, where as the other ones are no longer cyclical, they're growth. >> do you want an apple or an

orange? >> wow. >> all the lists kris ticked off in terms of inflation, check, check, if you believe those things, do you want to be in a company that's more cyclical? >> i don't -- so, again, if my apple is call it my nvidia, my orange is my nxpi -- >> either way. >> i'd be taking a bite out of the apple. only because, again, i think, one, i think right now, the cycle we're in for that business, the addressable market, is that we continue to go higher. i hate it, but nxpi, i'd be taking nxpi if i thought my orange -- no, my apple was -- was rotten, a granny smith, because guy -- guy hates granny smith. >> no, no. >> they are delicious. tart -- >> those are the green ones. >> yes. >> this was a "fast money" first. this is -- would you rather the fruit edition. no, that's what it is. >> it's not successful. >> it's not going well. we've had better metaphors than

those. but anyway. >> i think we can bring something else into the mix -- >> thank you, kris. >> i won't continue the fruit metaphor here, but this is where the equipment makers are actually an area that you could expand into, so, if you think of the inventory overhang, some of the concerns and then not having to choose between where there's clear total addressable market, growth, and something that's maybe a little out of fashion. we know that that is a necessity, in terms of this growth, and they've been a little underloved on a relative basis. >> right, so, she picked a kind of orange, maybe a tangerine. >> remember tangelos? clementine. you never get a bad clementine. >> excuse me? >> tiny orange. more bruises for boeing. shares getting hit, as more issues with the 737 max come to light. details on the latest findings and what the faa can do about it. plus, no concealing the gains in estee lauder. shares surging on the back of this morning's earnings report.

the changes that are making that has investors jumping in. don't go anywhere. "fast money" is back in two. >> this is "fast money," with melissa lee, right here cc.onnb

welcome back to "fast money." boeing finishing down more than a percent after saying improperly driged holes in some of its 737 max fuselages could delay the delivery of 50 aircraft. the faulty holes discovered by spirit arrow systems. phil lebeau has the very latest. >> reporter: we'll find out just the extend of this latest issue over the next couple of days, because they're going to do inspections of these 50 aircraft, determine if rework has to be done, and if there is rework, where the holes were misdrilled, well, then they'll bring them into conformance, and that may delay some deliveries, so, just again, to recap what's happened, over the weekend, a worker at spirit aerosystems in wichita, kansas, said, look, i think a couple of the holes on the fuselages may have been drilled incorrectly. they're going to check them. 50 undelivered aircraft have impacted here. there are 40 in service. not a flight safety issue. so, they will do inspections and

check them at some point. near-term deliveries could be impacted. remember, boeing delivered 387 737 maxes last year, and their production is capped right now. the question becomes, when will they be able to move it up from 38 per month? remember, the faa has said, you can't go any higher until we're comfortable that you have your house in order. and who knows when that may be. couple of months? couple of quarters? remains to be seen. the target of 50 per month in '25 and '26, that is boeing's own guidance. they did not pull that guidance when they reported their q-4 results last week, so -- that's a target that is out there, though boeing is saying, look, we're not officially endorsing that as where we expect to be in '25, '26. it's out there. shares of spirit aerosystems, the conference call people want to focus on that. pat shanahan, yes, he came in at the start of the fourth quarter, but this is really the first

quarter where they'll have a chance, analysts will have a chance to ask him about where spirit is at, and more importantly, the changes he's putting in place in order to bring them up to the level of performance where they need to be. because we've seen a number of these issues time and again with spirit that has ultimately resulted in boeing having to do rework or inspections and slowing down deliveries. melissa, don't forget, tomorrow morning on "squawk box," we have an interview with michael whitaker, the faa admin stray toir. they are investigating boeing and adding inspectors at spirit aerosystems. that's a "squawk box" exclusive, 7:00 tomorrow morning. melissa? >> won't miss it. phil, thank you. i think the question here, really, is, when will defects be the anomaly, the aberration, as opposed to the norm? because even if it's not a matter of flight safety, at this point, it's further damage to the reputation, it's the further drum beat of bad news

surrounding their execution cape bltds. >> no question. it's not quality control, it's quality out of control. and you get to a place where you can do the math in terms of what this means. february deliveries look like they're going to be a lot like jan januarys. i'm still of the view this is a company that's going to do $8 billion in free cash flow and you put a ten-times multiple on that part of their business and, you know, you have an 18-times multiple in that free cash flow that i actually think boeing is starting to get really attractive. it's in the price. i realize that doesn't assess the ability of major buyers, and an order book to be changed, but i'm not so sure how it can be. it's horrifying, what's going on. but right now, the numbers, to me, tell you that a lot of this is in the price. >> 200 fill the gap to the downside. now, the news -- i don't want to say it's the same news, but it's -- >> this was more minor. >> this is a whistle blower, now you're going to get an -- an as tray was in the wrong spot, to

your point. they should point these things out. with that said -- it's only -- the defense portion of their business is viewed as almost a nondescript asset right now in terms of what they're doing to the stock. if you can tolerate more of the headlines, i think boeing is okay here. there's a lot more "fast money" to come. here's what's coming up next. making up ground. shares of estee lauder eyeing their best day in nearly four years. the details out of the bronzer bump, next. plus, we've got a lilly look ahead coming your way. what to expect when the pharma giant delivers results tomorrow, and if the weight loss drug craze can keep fueling the gains. you're watching "fast money," live from the nasdaq market site in times square. we're back right after this.

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investment objectives, risks, charges, expenses and more in prospectus at invesco.com. welcome back to "fast money." estee lauder topping tape this morning. they're up 12% for its best day in four years. the company announced plans to cut up to 5% of its work force. and, of course, everybody will know that estee lauder is the e

in tim seymour's acronym for 2024, which is bicep. >> thank you. i don't know if everybody, but certainly most people know this. and part of this was the story that when you are involved in the acronym game on "fast money," your goal is to win, and play by the rules, which not everybody did, but also to find, to me, things that are bombed out. and this was a bombed out name. and i mentioned on thursday or friday, it's not the quality of karen's ulta, in fact, it's a significantly different story, it's a story where the cost savings and the dynamics are part of the story, it's an inventory clearout that we probably don't get until the second half of the year. but we saw some turn in china, this is the first time in four quarters they didn't guide down, so, less bad means good in this case. and the move is extraordinary. and i think you can ride this one higher. it doesn't get terribly exciting, but the second half is where they've guided, that it gets better. and i think china is getting better. >> do you think this is a story of the consumer and say, this is

the state of the consumer right now? >> what it tells us about the consumer, you look at lower, middle, high income consumers, there's a differentiation. estee lauder is a company that's targeting the middle to high income consumer. i think there is a question about asia still in terms of -- >> no doubt. >> you look at the local markets, given the percentage of their revenues that come from asia from travel, we have to be a little cautious there, but i think what the market likes the most what it does with most companies, is the job cuts and that expense discipline. >> yeah, tim, mind the gap, though, man. this thing opened at 160, closed at 150. big gap to the 135 level. and to your point about job cuts, what if they become less exciting because they become more common as we are starting to see it? so, again, you might have thought, without the job cuts, that news would have been something that sent this stock lower, but see if it can hold the gains. >> cold water on the bicep there. >> the mind the gap was kind of

snarky. >> snarky, a little bit. big valuation. people here restructure. remember, this stock went from $360 to $102. there could be some bounce left in this thing. tim did play the game the correct way, by the way. as did i. >> i look particularly gruntled on the puckicture of me -- >> touch guy's clam today? is that going to be -- >> excuse me? >> your acronym. >> that's an entirely different show. >> different show. >> that's late night. >> touch his clam. >> what? i didn't say it! listen, you get mad at me, i'm sitting here, i'm talking to nancy, minding my own business, he says that, you look at me like i'm nuts. >> that's his acronym. coming up, lilly earnings on deck and after a huge run over the past year, can the pharma stock keep up thor ife er feroc? and how drug peer pressure is making its way into the tesla culture, and the impact it could have on the company.

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welcome back to "fast money." stocks down to kick off the week, though off their -- excuse me, off the lows of the session. the dow dropping more than 250 points, the s&p down 0.3%, and the nasdaq falling nearly a quarter of a percent. the ten-year closing in back on 4.2%. a couple of stocks on the move afterhours. vertex pharma higher. palantir jumping 17% after the company posted earnings in line with estimates, but beat revenues. and shares of tesla dropped 4% today. reports over the weekend saying ceo elon musk pressured tesla board members to do drugs with him. report saying some directors felt there was an expectation to use the drugs to avoid upsetting musk. you say this is sort of the

reckoning for musk at this point? >> listen, on a day like today, the stock was down nearly 7%. you say to yourself, okay, is he selling stock again? there's been odd pressure, you know, couldn't sell stock in the leadup to their quarter. you know, did he have margin calls? we know he's pledged most of his shares for the twitter acquisition and the like here. maybe investors are starting to price what tesla after musk really looks like, what the premium that's built in there for him, so, i mean, the stock, you know, is trading above 250, we talked about a stock that's gained 40% in a straight line. this stock, it really does act like it's coming apart, and especially relative to the s&p and the nasdaq, and, you know, it feels like it's a bit of a disaster. eli lilly trading at all-time highs. set to report earnings tomorrow morning. the stock is up 6%, w. will earnings boost its run or put a damper on the rally? for more, let's bring in louise chen. louise, great to have you with us.

>> hi. >> hi, it's interesting, you know, to see this run, even after novo posted its results, but the zepbound prescription numbers were staggering, at least for the month of december. what are you looking specifically for? >> yeah, i think for tomorrow, what we'd like to see is what the zepbound numbers look like. another pro another important product, obviously, mounjaro. they have drugs coming out, we'll see what they put in the guidance for this. and then m&a, what they are thinking on that front. >> there's so much anticipation around synergy nash trial. do you think we'll get color on that? >> i'm not sure. lilly said they have not disclosed the timing, but the estimated completion date has passed on that, so, hopefully we'll get some sort of color. >> as a big cap pharma analyst, i mean, historically, you've been able to sort of -- you can measure these things, right? you can game it out a little bit, but with lilly and novo,

the whole world's changed, so, how should we look at this on terms of valuation? because historical valuations don't seem to matter right now. >> yeah, i agree with you, and i hear what you're saying. i think one of the things you have to think about for whether or not, there's another leg up to move for this stock, is really the downstream ind indications. they have fatty liver disease data coming, as you mentioned. they have obstructive sleep apnea and heart failure data coming this year, so, it will be interesting to see how those can add onto the additional patients. and reimbursement could be better for those indications than what you see for obesity, which a lot of times is not covered. and some of their pipeline products, they have an oral glp-1. no one's really been successful on that front yet. they have a ggg product, and it could show 25% weight loss, which is better than any of the other products so far. >> when do you think -- or when

or if you'll see a differentiation interms of novo versus lilly and the efficacy of the weight loss drugs, specifically zepbound versus novo's products? >> yeah, so, we're already at that inflection point. it is quite interesting, because lilly has higher weight loss, but novo has the select day tashgs they got that earlier than lilly, and theirs might still be a few years away. one company has data like novo, and another company that has shown higher weight loss in their trials. >> hey, louise, it's tim. so, extending melissa's question just into the competitive landscape outside of these two companies, because they're treated as if they are so far ahead, and again, we've said this so many times, it's a bad metaphor at this point, but it feels like the semiconductor space, where you have one or two companies that are on the leading edge of technology. >> yeah, so, are you asking me what other companies might show data? >> competitive landscape, for sure, louise. who else is even close? >> yeah, so, i would say amgen

has some data that people are excited to see this year. that's a large company. roche is working on products, they said it could be one of the best in-class products. pfizer is working on an oral product. they did not show success in the first round, it wasn't success, but it wasn't a great tolerability. so, they are coming back with more data they'll show sometime in the first half of this year. >> louise, thank you for phoning in, appreciate it. louise chen. $630 price target on lilly. >> she's been, i mean, good for her, number one. the move happened over the last couple of weeks. we loved lilly collectively. it's $700 now, given the run it's had into earnings. you're playing at the deep end of the pool. with that said, i thought the same thing about facebook last week and that clearly was wrong, as well. market's right now rewarding excellence and lilly's been in that mode, and they are probably

setting up for a stock split. the last one was in '97. and maybe entrance into the dow, as well. >> we said this so many times, in terms of, a point you made, the a.i. sort of notion that there are a couple of winners in the space, do you see that, as well? is that a sign of fomo or -- >> i think it's one of those things where you overestimate short-term, underestimate long-term. i do think in health care and in bio tech more broadly, this is where the broadening out of the equity market rally, i think there's a real tangible case, because, again, going back, peak rates, you can look at some of the equity capital market activity, some of the m&a activity, the large pharma ge companies, they need to replenish their pipelines, as well. >> it's fascinating, kris, but when i think about a bristol myers or a pfizer, which i own, the expansion of their pipeline, pfizer spent all of their money

from covid on new drugs and new pipeline and look where it gets them. so, is your point that you think broader health care is ready to roll here? >> i would say more on the bio tech side. >> yeah. >> so, i would look at the acquisition targets. and even expanding into areas like med tech, life sciences, looking at health care as a sector more broadly, those are the ones that weren't loved last year and i think there's a compelling argument they could catch up. coming up, byron allen making a move to buy one major studio. the reaction in paramount's stock, and if this is a good bet for the streaming company, next. plus, a fast food flop. mcdonald's shares dropping. inside the disappointing numbers and how the burger giant can bounce back. back right after this. black-owned businesses secured a little over $2 billion in venture capital in 2022. that's a lot of money, but it represents less than 1% of the more than $200 billion pool of

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welcome back to "fast money." paramount shares dropping nearly 3% today, even after media entrepreneur byron allen confirmed he is in talks to acquire the company. julia boorstin has the details. julia? >> well, melissa, i spoke to byron allen, who confirms that he has made an offer for paramount global and they received it. he said they are now engaged in conversation. allen telling me that he ran into paramount global ceo bob backish at the grammys last night. he reported to me that backish said, thank you for the offer, we're happy that you submitted it. no comment on this from paramount. allen telling me the advantage of his offer is that he thinks he can get it approved by the fcc, unlike a private equity player, he says he's already approved as a broadcast owner, and as to the question of where the $14 billion of equity for the deal would come from, allen tells me that he has two

strategic partners who would divide the cost, and also the assets. one of his partners wants the physical real estate of paramount studio lot and the second ones the paramount studio to bolster its streaming content. so, that means it could be a digital first or a traditional media player. now, allen media group is the third partner and would take the linear broadcast and cable networks, if this deal were to work out. now, i'm sure we will hear a lot more about this, as well as the interest from sky dance and its partners before paramount reports its earnings on february 28th. melissa? >> julia, there seems to be skept nicism about the offers tt byron allen puts out. what is about his offer, do you think? >> well, i think it's skepticism surrounding the financial part, because we don't know who the two other partners are. with sky dance, we know who they are partnered with, how that would play out. sky dance is going through the route of acquiring, or would

potentially going through the route of acquiring national amusement in order to gain ownership of paramount global, where as byron allen is interested in going directly for paramount global. we don't know who the partners are. i pushed him, i asked him multiple times in multiple ways, but he re asassured me they wou be able to pull it off. >> all right, julia, thank you. guy? >> the short interest in the stock, 80 million shares, 14% of the flow. this news coming out, the stock goes down today. i mean, that to me tells me all you need to know. stock has bounced since october. i don't know. when you get news like this, it should have rallied. it's not. that tells you something. >> boy, remember the fun during, you know, covid, or, late covid, whenever this was, when the stock, there was a squeeze going on, and it was a major, major story. stock traded above $90. you are back now near the covid lows. i think sum of the parts, this deal is going to happen. somewhere. and i think sum of the parts, it

makes some sense. and i think you've gotten to a place where we all know linear tv is dead, but we also know that there is a value to some of these assets, so, i think there's room to the upside. all right, coming up, more afterhours action. this time in shares of simon property. that stock is on the move. the numbers out of that quarter next. and investors not loving mcdonald's results. shares of the golden arches dropping to two-month lows. the international issues facing the restaurant chain. that's next. "fast money" is back in two. at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. life is for living. let's partner for all of it. i'm so glad we did this. edward jones hey you, with the small business...

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i hope -- i really hope that made air. i so hope it made air. >> it did. it did. >> where is the warning around here? yeah. we -- >> pet and the street you grew up on -- >> it's a fun game to play. >> another herbearnings alert. simon property volatile after reports. occupancy rose and gave strong guidance. let's bring in courtney reagan to break down the details. courtney, take it away, please. >> she's obviously played. >> i was trying to think of one, mine is scuttle fairmont. >> very good. >> simon reporti i i ing earnin.

revenue in line at $1.36 billion. simon property group occupancy came in at 95.8%. that's up 90 basis points from last year. base minimum rent increased 3.1%. the retailers sales per square foot as reported fell 1.3%. now, upping its dividend to $1.95 from $1.90. the ceo said, quote, demand remains very strong for leases from retailers of all kinds. simon noted supply and demand is in its favor, noting, quote, historically low supply in big properties across the country, and simon went on to say the importance of bricks and mortar has never been stronger. he noted e-commerce retailers need to be connected to a brick and mortar store for what he called, quote, survivability. back over to you, melissa. >> courtney, thank you. and in this sector, we've seen sort of the bifurcation, the

high end versus the low end sorts of properties. simon being the high end category. >> it's right at 45%ish since october. we should have john back to talk about it. the guidance they gave for full year wasn't a disaster. you can still make a case of valuation, despite the run, so -- in absence of any bad news, which there's been none, this stock can continue to levitate, i think. >> are there concerns about commercial property, commercial real estate, in your view? >> i think there's absolutely concerns. i think the question here, though, when you look at the diversify case, what we mean by retailers, there's more of an experience, and it's targeted towards that middle and upper end of the consumer spectrum. so, if you have the diversify case and people are going there for an actual experience as opposed to where you shop, i think that makes a difference. >> i think we have to -- we have to think about reits of all kinds, you know, if they are in high end or not, in a different way than we did five years ago when rates were zero. i just think the multiple relative to itself is something that you have to think about, i

think this is a name, we know, it's the highest quality, or one of the highest quality names in the space. rallied 50% the minute yields starting coming back down. >> all right, let's get to mcdonald's. dropping 4% today after reporting a revenue miss before the bell. the fast food giant beating eps estimates, but blaming the current conflict in the middle east for lower than expected sales. the second major company after starbucks last week to sitcite impact of the war. more affordable to eat at home now days, and that really seems to be the tale of the low end consumer, dan. >> it's interesting this headline comes the weekend after we just launched further scale attacks, you know -- listen, this thing has the potential to get bigger and we've heard this from consumer-oriented companies, digital ad companies and the like. so, i suspect this is something that we're going to hear more. if you think it's just a mulligan right now, we'll see, because it doesn't seem like things are going to tamp down any time soon.

>> still own it? >> i don't. i would like to own it lower. i think i'm going to get it lower. i think the comps are really tough coming out of covid, and some of the ability to pass object the costs, even if you are mcdonald's, is under pressure. the multiple right now is not something you are that excited by and you don't need to own it today. >> you have to be concerned when they say they are pricing out a certain category. and that's been the reason you go to mcdonald's, and they are starting to talk about that. you have to be concerned. maybe that valuation, which seemed reasonable, is not as reasonable right now. >> i think it's interesting that we're bringing in geopolitical tensions into earnings. we've seen that a number of times. and i have to bring it back to the consumer and lower and the higher in the u.s. if you are not a homeowner and investor, it's a markedly different reality. up next, final trades.

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it is time for the final trade. let's go around the horn. tim? >> we talked about tesla. toyota motor is very well positioned in hybrids. they are well positioned globally. tm. >> kristen, thank you for being here. >> yes. >> all right, i'm going to lean into the broadening out, s&p 400, s&p 600. i think the valuation disconnect is just too much. it's basically what we saw in the depths of covid. >> dan? >> yeah, pfizer is back to where it was in the depths of covid. the valuation disconnect there, so, tim's pfizer. >> mikey likes it.

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