barely. very quickly, what do you watch tomorrow? >> the close is what i'm watching tomorrow. that's usually more relevant. >> okay. we'll be here to cover it. mike, thank you. that's going to do it for us here at "overtime." "fast money" begins right now. live from the nasdaq market site on a day when the s&p 500 topped 5,000, this is "fast money." here's what's on tap tonight. what is wrong with google? shares of parent alphabet far underperforming the rest of the mag seven this year. and the company's latest a.i. offering being met with a yawn. what can google do to turn things around? plus, mind the gap. shares of arm and disney today, meta last week, netflix last month, breaking out to new highs in a big way. why one trader says this kind of action should be concerning. and later, a pinterest pivot. shares down 20% at its lows afterhours, recouping most of the losses. the company announcing an ad partnership with google. the ceo will join us exclusively later on in the show. i'm melissa lee, coming to you live from studio b at the nasdaq. on the desk tonight --

tim seymour, karen finerman, dan nathan, and guy adami. and we start off with the s&p hitting a major milestone right at the close. for moments, just a moment, ticking above 5,000, before ending the day just two points below. the index still finishing the day with a record close. the dow did, as well. the s&p -- nasdaq setting a fresh two-year high. the s&p strength comes on the back of rallies in the megacap names, nvidia, meta, eli lilly. so, now that we've hit this big round number, where do we go from here? >> higher, mel. no, look. congratulations, i mean, for everybody bullish on the desk, everybody but me. i took the math in college for at least a day. 5,000 divided by 250, which you are not going to get, is still a 20 multiple. rachet down earnings, which are probably closer to 225, and we're looking at a market that's trading close to 22 1/2 times, which historically is pretty expensive. you can say, you know what, it's

justified, the rest of the world is slowing down, united states, you want to be there, you should pay up for the growth, you should pay up on the multiple -- i'm not one of those people that believes that. >> i haven't been one of those people bullish on the desk. but when you think about what's gone on here, we talked about the multiple expansion we saw last year, the concentration of the top names in the s&p 500, really just blew out the multiple of the s&p 500. there's plenty of sectors and you guys have identified them, that trade at very cheap multiples, but here's the thing about that expected growth and guy's talking about, okay, if s&p earnings estimates for this year are probably too high, you know, we had a 3% gdp growth last year. the fed said they are expecting 1.5%, you know, this year, so, with that, you would assume that earnings for s&p 500 companies would come down. at a time where we've seen the dollar rally, we've seen crude oil rally, what, 7% or so on the week. so, a lot of those inflationary pressures that may get aggravated, it just seems like it's really not discounting a

whole heck of a lot of headwinds that we might see in the not so distant future. >> isn't it all about rates, though? rates are going to come down. >> do we know that, though? we knew that -- we thought we knew that at 3.8% a few weeks ago, but i just looked, they're at 4.15% in the ten-year. >> i think rates are still in an uptrend. if you look at a two-year chart, i know we had that spike down, but we're here around 4.05, 4% on the ten-year, i think that is the bottom of this uptrend. i think rates are still potentially at risk of moving higher. it gets back also to equities, at 5,000 on the s&p, you'd think it was tina time, in other words, there is no alternative. there is an alternative. asset allocation provides that alternative. and volatility is extremely cheap. so, buying protection right now is also, i think, a very bright th thing to do. if you look at the nasdaq, which is where most of this growth is coming from, at least a lot of it, that cpi, where we peaked on

inflation in october 13th of 2022, the nasdaq is up 65%. okay? 65% in about 15 months. and if you look at where we were even just going back to kind of the october 26th inflection in the markets, again, these moves are shocking. and you've got chips up almost 40% to 55%. the question is, is the market pricing in this type of growth that i think on some level has been validated in the capex&, but there's a lot priced into what's going to happen, in a world where equities don't care about discount rates and don't care about the functional way you value companies, because stock -- 500 basis points higher are up -- we're probably up 50% from that pre-covid level when rates were a lot higher. 50% on the s&p from pre-covid. >> well, i -- i think the market's not a monolith, right? we talk about that all the time.

you've had this very dense concentration and they put up some very big numbers, and when you're saying you think rates have bottomed, are you saying that you don't think the fed will cut or are you just thinking the supply/demand dynamic, whatever it might be, or inflation, willhave us -- have rates higher? >> no -- >> but if you're saying the fed's not going to cut, that's sort of a different thing. >> i just said, i think the upward -- the uptrend in rates is still with us. i'm not saying i think the fed's going to hike. i'm not saying i think the fed's going to cut. i think the ten-year has a chance to get through the levels that we saw, i mean, just around 5%. when that happens, i don't know, but some of the same issues on deficit dynamics and the size of the refunding supply and sol of the corporate governance issues, they're not any different. they are probably worse. >> but the gdp numbers are well above where i thought they would be. well above, i think, where most people thought they would be. so, something's going on in the economy that's good, right? so i think that that deserves

somewhat of a higher multiple. now, i don't know, is it 20, 21, 18, i don't know. but i think we have this divergence between ones that are so much higher and plenty that are attractive still. >> from a record high to an announcement met with a yawn. alphabet closing just above the flat line after the ceo officially rebranded its a.i. chat bot bard as gemini. launching a new app and subscription option in the process. he talked about the move this morning on "squawk box." >> bard was the most we could interact with our models, and so it made sense to evolve it to be gemini, because you are actually talking directly to the underlying gemny model when you use it. and i think we will keep advancing our models and use it directly, and so, we thought the name change made sense. >> gemini was supposed to launch last november, but ran into

delays. al fa belt's been trying to keep up with microsoft in the a.i. space and has so far underperformed its peers in the mag seven, with the exception of tesla. what is wrong with google? why the yawn? why didn't it get any credit for the sort of rebranding, the new product, subscription service, should all be good, in theory. >> in theory, it should be good. a couple of times they've been sort of -- it's almost a charlie brown kind of thing where, you know, microsoft put up huge numbers. i think they kind of should be a little bit embarrassed by the meta numbers for, you know, the comparison between the two is just, you know, the year of efficiency was wildly, wildly great for meta. google's year of efficiency was hardly efficient at all, i think they cut 4% of their work force. i don't think -- i don't get this rebranding thing. i don't -- i -- i don't really -- they knew it was gemini all along, sort of. i don't know why they came out with bard. i don't know that that really matters. but they just seem to be sort of a step behind, even if the product will end up being as

good. so, it's disappointing. the cloud growth was decent, but not as good as some others, to, multiple disappointments. i was really happy when ruth came in and it sort of ushered in a new era, we're going to have more transparency, we're going to understand what's losing money, we're going to start doing a buy-back. >> so long ago. >> it was 2015, i looked it up. yeah. and so, that was a huge, huge run for the stock. they need ruth stepping into a different role, they need another reboot like that. >> well, here's the thing. i'm going to take the other side of this thing. i'm going to say, alphabet has nine products with over a billion users. they obviously -- google search with 3 billion, android with 3 billion, chrome with 2.5 billion. the list goes on. g-mail, you know, youtube, the list goes on. when this company finally gets their act together and they have this chat bot that they can kind of integrate across all of the products and they're charging this price point, and $20 a month, that's where chatgpt is

and the like, so, i feel they will get their act together. but microsoft really got, i guess, that push, that last trillion dollar push. it was about across 365. it was across their products. it wasn't about that openai chatgpt 4. now, they obviously have a foothold into that technology and they're going to be benefits from that, so, to me, i think google will have taunt, but they, like, literally started off last year with that really bad bard launch and ended with a bad gemny thing and then this one just fell like a lead balloon. they are going to get it together, and the valuation that you hold dear to your heart will probably appreciate at some point this year. >> i just -- i mean, i'll get back to the stock and the performance, and i don't see this underperformance. i see a stock that's outperformed the nasdaq at least as a group by 10% in the last year and underperformed the nasdaq by 11%. >> this company, which is extraordinary, trades at a market multiple. that to me is an underperformer.

>> okay, but we're kind of dropping into this the context of a.i. and why they seem to be losing out and why gemini isnot all that -- >> all part and parcel to the multiple? >> well, it may be, but google's traded at this multiple forever. there's nothing different -- >> no, it hasn't. yell, y well, yesterday it did. it was flat today. >> google's underperformance to the nasdaq, 11%. i'm looking at the chart here. that doesn't really -- when you consider the extraordinary moves that you've had in microsoft and certainly nvidia and apple's kind of sideways run, we bring it back to, you know what's wrong with google, are they not innovating, are they going to get their lunch eaten by microsoft in search, their core business, i don't think the market is telling me that right now, and i think google's multiple is attractive. >> i do, too. i'm disappointed -- >> i agree with ruth, and the issues around governance. >> some think it should be more

aligned with some of its mag seven peers. >> i'm not sure. i'm not sure. look, i don't think the multiple should be anywhere close to the predictability of the revenue stream that microsoft has on the software side. >> look, market multiple, what is it, a little north of 18ish, right? talking about a company with 14.5% revenue growth, ish, same about revenue growth, 14% ish, it should trade at reasonably a 22, 23 multiple without question. what's wrong with google, nvidia, microsoft, these names have just gone parabolic. in comparison to yet, yeah, that's a problem. but my grandmother used to say, little guy -- >> talking about -- calling you a little guy or talking about a smaller version of you? >> i was smaller at one time, believe it or not. little guy, slow and steady wins the race. and she's right. these other things, they're off to the races, good for them. they're obviously pacing the field, lapping the field, but don't give up on google here. i mean, there's nothing not to

like. >> let's bring in ben reitz, saying that google needs to prove it can monetize its a.i. technology effectively. great to have you with us. what does google need to do to close that gap in valuation? can it? >> it's going to be hard to close the gap with microsoft. i look at google and microsoft a bit -- i try to pair trade them and talk about both, and microsoft is in rarefied air right now. microsoft's revenue is mostly subscription. like, almost all of it. and in google, they talked in this call about 15% or so of their revenue being subscription. so, the light bulb's come on here and they say, you know, we have to get our subscription revenue going like apple, rerated with that, maybe obviously microsoft's already rerated. so, that would be something that this announcement is aimed at revving up, the subscription

revenue is key to rerating this multiple. and they got to get that recurring revenue up. >> so, how is this a first step in terms of the packaging of, you know, you get access to this chat bot, to the a.i. product, you also get free storage. how does this bring people into, you know, spending more on subscription services from google? >> well, that's one of the advantages apple has with its ecosystem, that when you are in the ios ecosystem, you buy apple services. android, it's a little forked, it's a little fragmented. it's not as obvious to the android users to just upgrade to the google subscriptions, but they need to market it. they need to make sure people are aware of it. i personally think people are confused. i mean, two months ago, they had an event saying all these other models, now they're rebranding it. it feels like they are throwing spaghetti at the wall and seeing what sticks. and the other companies in the mag seven, even apple, are focused. and we're not going to have a many doubts about what they're

doing. google needs to focus and make sure we know what's going on, and increase that subscription revenue. >> so, ben, we just talked about this relative underperformance to the peers, and on my iphone right now, i'm paying $20 for chatgpt. i'm trying them out. at some point, i'll have gemini, but what i'm doing a lot less? searching on google. so, if you get tied to one of these apps and it is probably only going to be one of them for most consumers, that is likely the headwind that i think a lot of investors are focused on, as they think about fwgoogle. does that make sense? >> absolutely. the big overhang here is that search is going to be disrupted by a.i. we move to -- and by the way, i haven't -- i talked to a lot of people, no one exactly knows what it's going to look like, but people think you're going to speak into a phone and get an outcome rather than a search. and google may be cut out in some way, shape, or form in that. they need to tell us this year,

i'm talking this year, to make this stock really a winner, they need to say, this is how we're going to monetize this thing. and here's the tool, here's how it works, here's how it dovetails right into google ads, and everybody needs to have the ah-ha moment. we thought we had it with the sge announcement, but we still don't know exactly how we're going to monetize it. >> so, of the different buckets they have, advertising in cloud and -- they do have youtube, for example, but where do you -- i mean, none of them seem to be hitting on sill landers that are -- that others in that particular silo are. and why do you think that is? >> well, i think that actually, i mean, youtube is fantastic. they have -- >> yeah, youtube is. >> but it's not big enough piece of the pie. its search is what it is and you have to go into every quarter and build that search business. and do it, and, you know, microsoft's recurring, but search isn't as recurring. you think it is, because they dominate, and everybody needs it, but it's not -- it's not tech nick little a subscription

revenue, right? i think in general, the cloud they have is sub scale compared to the other two big guys, even though it's a huge business, 37 billion run rate. they have to take that margin from 7.6 to, like, 15 plus. 7.6 is not acceptable. you know, you got to get serious here, i mean, aws is close to 30. you know, microsoft is able to raise margins almost every quarter. god knows how amy does it. but that's what you're competing with for dollars. and now you have andy jasy looking like he really cares about profits on the retail side, so dollars can go there. so, they need to get the profits up there, other bets loses 30 crept cents a year. a lot of people would like to see that, you know, real, like, not just announcements and -- ruth's really got to get in there. we have to feel that ruth is really running with this thing. look at what zuckerberg did, you know? you're competing with capital, with all these, so, when you talk about google, guys, you got

to understand, people are with the mag seven for saying, do i put my money here or there? and they got to start doing what the other guys are doing. >> let me ask you about search then. if there are some sort of threat to the search business, how do you think about the addition of subscription revenues versus the loss potentially of advertising revenue? >> well -- >> as a push-pull in their business model? >> well, there's no imagining model. >> sure. >> but in terms of the rates. will it be enough to offset as the transition the happening? >> i think the fear is no. but the -- there is also my view that search is going to be pretty stable. just a question of upside. you have all the other companies upsiding all the time. but search, the way i read it from google, they are going to infuse more a.i. features into search. all this is to augment search. we need to have that ah-ha moment that search is going to keep growing, pretty close to double-differents so it doesn't drag us down and we just don't have it yet. >> ben, thank you for coming by,

appreciate it. >> thank you so much. great to be here. >> guy? >> they have to improve their margins, but that's not an entire indictment of the company as a whole, which still trades at a reasonable valuation. at least you can sort of game out where google is going to be. the last couple quarters disappointing. stock comes raging back. why? valuation wise, you can still wrap your head around it. >> ben mentioned andy jassy. i just say overall margins at amazon are coming up. of the megacaps, again, whatever group that now is, i think amazon is as interesting as anybody. aws margin, it's not a lot of growth, a little bit of growth, but it's something that's very impressive. it's the best chart of them all. >> i don't know if you guys remember when suze orman was on and the night microsoft reported and google reported and was down and the question was, at the end, which would you rather, and a lot of us seemed to rather, i certainly did, rather google

than microsoft. well, it's loftier now. google is a little. not much, so, you know, shoutout to suze. turning now to a couple of movers rocketing higher today. shares of arm soaring more than 50% after an earnings beat and strong forecasts. and disney up almost 12 % after beating the street, raising guidance and announcing a 50% increase to its dividend. meta and netflix, remember, had similar mrr pops after their latest reports, but are these monster breakouts a cause for concern or should we just cheer them, dan? >> you know, listen, i think the disney one is very different. disney is well off its highs, it's had a host of issues, its own issues, competitive issues, challenges to the board, and all that sort of thing. but that gap, you know, again, is something that, you know, it didn't really see a downtick for most of the day today. investors, once the stories get going and they break out, they just keep buying them. so, to me, it speaks to something absentment. the thing that was going on with

arm today is really scary to me, okay? so, soft bank, you know, they had a hard time getting this deal out at the right price in september. they sold 10% of the company. the thing has been left for dead. it's been going sideways. and the revenue guidance that they gave, i'm telling you, i'm like, shocked that the stock was even moving up 20% when you guys were probably covering it last night, based on that guidance. so, when i see a company, ipo 10% at $51 and at one point was almost up $51, i say, something's kind of going haywire here in the markets, because -- and it's not the companies do it. they did the conference call. they went on tv and they talked about it. it's what investors are doing. and so, to me, i think that's the thing that i just really want to be careful, because we've seen a lot of these stocks break out to new highs on massive volume, people are piling into it, and it just can't go much higher. >> well, when they came out, though, august when they started the road show, maybe, and --

came out in september, but it was a different chip market then, the expectations were, we were still falling. so, i don't know, is that worth 100% more, probably not. this was scary, i thought. >> the broader point is that it is not uncommon to see double-digit percent increases or decreases on the back of earnings, was not necessarily the case a couple years ago. >> arm's its own freak show. disney, i mean, come on. cost savings, they are going to exceed the 7.5 billion, you have operating income up 23%. you've got the div dynamic. gm, think of all the companies that gave you the -- these are companies that have done zero. we talk about these companies that have done a lot. these are companies that valuation, they were -- gm was less than four times when they reported. >> catchup. >> disney, you get the entire dtc business for free and just own the parks at a great multiple. that's what's going on. sometimes it takes a catalyst. coming up, we've got afterhours action, as earnings season rolls on. shares of affirm, capri, and pinterest all on the move lower after reporting. the numbers are out and we'll

get them and the trade ahead. and more on pin tles from t the ceo himself, bill ready. that exclusive interview later on this hour. do not goal anywhere. more "fast money" in two. this is "fast money" with melissa lee right here on cnbc. 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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welcome back to "fast money." earnings alert for capri holdings. posting a miss on the top and bottom lines. shares are lower afterhours. courtney reagan is here with the numbers. >> shares are down, but down only about 2%. feels kind of like a muted reaction for pretty disappointing results for capri holdings for the quarter. this quarter ended december 30th, earlier than what the other retailers will end their quarters. capri holdings missing earnings by pretty wide margin, falling short of revenue expectations overall and then also by brand. gross margin was in line at 65%. the company isn't giving any guidance, with capri and tapestry saying today that the deal for tapestry to acquire capri is still expected to close

this year. and that's the reason for none of the guidance. each of capri's brands missed estimates. michael kors down more than 5.5%. jimmy choo down 1.2%. and the coo noted softening demand for fashion luxury goods, but said sales trends improved in the quarter with its own stores and retail sites doing better than the wholesale channel. there's no earnings call here today, again because of that pending deal, so, this is about as much detail as we're going to get at this point, melissa. >> courtney, thank you. the afterhorps move contrasts with what we've seen from other retailers. ralph lauren having its best day in three years, up 17% after reporting a beat on the top and bottom line. tapestry and kering higher. so, what's that say about the state of the high-end consumer. and karen, you have thoughts on the deal, as well. >> well, first, to the deal, it's great that tapestry was talking about the merger as if,

okay, we're going to close this year, it's going to happen. we knew cap ri with not be grea. that's okay, because the merger is still on. it's a very tight merger agreement, so, there's a very high likelihood, very high likelihood it closes. i would like to have seen a little more detail about if there's an fftc timeframe to approve this deal. i would think they should. so, that's what it's trading on right now. >> high end is bullet proof. american express, i think, told you that. and you see it with some of these stocks. the flip side of the coin, mcdonald's saying, at least the customers pushing back on how expensive things are there, and you heard very similar year and a half ago from a dollar general, so, you talk about that chasm, it continues to widen out. coming up, so much focus on lilly and novo nordisk, is there any room for new prlayers? the company looking to tip the scales, next. plus, more earnings action. affirm and pinterest on the move after reporting results. we'll get the details and

interview with the pinterest ceo bill ready straight ahead. you're watching "fast money" live from the nasdaq market site in times square. back right after this. ♪♪ ♪♪ ♪♪ ♪♪ ♪♪

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welcome back to "fast money." the s&p 500 hitting 5,000 for the first time ever, with just seconds left in today's session, but closed just under that milestone. the major indices all closing with small gains, now on three-day winning streaks. take two and expedia dropping after reporting. shares of cloudflare jumped after beating on the top and bottom line. david iron horn saying he views the market as fundamentally broken. he points to growth in passive investing. he added, they have no opinion about value. they're going to assume everybody else has done the work. we've said this for a long time in terms of the impact and the growing impact of etfs and passive investing. do you think the markets are broken, in some way? >> well, the power of the etf world has changed the passive dynamics. and people do their homework and

they're self-directed investors. they are not buying and falling asleep. they are out there and understand that over time, markets are compounding. and that's the power of what this is. so, and -- to be clear, on some level, the fact that typically, what you've seen from the passive investors, they've been selling at the absolute wrong time. and they've hung in there through difficult times over the last couple years, so -- getting back to fundamentals, though, look, the fundamemamentals don' make a lot of sense. there are points at which you can, you know, be overthinking things. not suggesting that's what's going on there. i think that's what goes on in a lot of places. there are a lot of moves in this market that don't make a lot of sense and reflect reality, but you can't fight it. >> money flows are powerful, but it doesn't mean the market's broken, it means the market's changed over the years. and you have to be able to adapt with it. clearly something i've not been able to do. >> old dogs and tricks, right? coming up, shares of amgen

under pressure after its weight loss drug data suspect enough to hype up investors. so, is there any squeezing into this competitive space? jared holz will help break down the data and why he says the bar is so high for any new players. don't go anywhere. more "fast money" in two.

well dom back to "fast money." amgen shedding 9% so far this week after giving trial data from its weight loss drug. those results showing patients lost 14.5% in their body weight in 12 weeks, with the monthly injection. with many keeping off the weight after stopping treatment. still, our next guest is skeptical that the drug can meet the high bar set by novo nordisk and eli lilly. jared holz, 14.5% is fantastic, but when you compare it to the percentage of weight that you can lose on the other drugs, it doesn't stack up, not to mention that so many participants in the trial had to drop out at the higher doses. do you sort of write off that amgen obesity drug part of the story? should we give up on that? >> well, melissa, i think it's too early to give up completely. you know, there's a lot of data that's yet to come out from the company.

but just from what we've learned early on about the high dose and the dropout rate being fairly high, almost 50%, i think the company just has a lot to prove in this category, and it's not like the drug is disinteresting or the data is super disappointing, but when you kind of juxtapose it against what we know from novo and lilly, which have been outstanding so far and our years ahead -- i think the bar is so high here and they just have a lot to prove. >> so, let's say this drug gets out, i mean, at that point in time, does it stand to actually gain any market share, given its, you know, the evfficacy is lower, it's still an injectable there are not many improvements on the surface, at least, with this drug compared to what's on the market already. >> yeah, i agree. i think when you look at lilly and novo and what they've been able to accomplish, you know, patients are basically, you

know, like, fighting to get the injections and more than willing to inject themselves once a week, right? that hasn't seemed to be a deterrent at all so far. obviously, as we go through, you know, the market development and we see behavior at patterns from patients, maybe, you know, a more infrequent injection is still preferred at the end of the day, but i think amgen's project they're working on now still requires multiple injections on the day that you inject. so, it's not like it's one needle versus four needles for a novo or a lilly. it's still basically the same amount of shots that you have to give yourself, so, if it's about being averse to injections or whatever, i just don't think that's going to be enough for amgen to come in here and take a lot of the market. could they take some, just based on, you know, what we know is a very difficult supply chain dynamic today and probably over the near term, yes, for sure, but you know, if novo and lilly can produce more, i don't really think it's going to have a big

place. i really don't. >> jared, it's karen. clarification and a question. when it said they kept the weight off for up to 150 days, did they then not keep the weight off or that was all the trial ran? and could they compete on price? >> yeah, the first question, i don't know. i really don't know the answer. it's probably the fact that that's when the data cut off was. i don't think they would give you that detail and then on the, you know, 151st day these people started gaining weight, so, you know, from that element, i think the trial does look interesting. we just don't know, you know, exactly in the real world settle what lilly and novo look like over that time period. are they not on the drug? because most of the patients are staying on for longer than that duration, i would think. on price, yes, definitely. but i think it's going to be hard to compete on price to a significant degree unless you are manufacturing and

productivity get to a point where your yields are fantastic and you can offer better pricing, but i think that one wound tactic to use. >> are there any publicly trading companies that we should actually look at, say, they might be on the verge of a real competitor to lilly and novo's drugs? >> well, i think on the oral side, there are. so, viking they rapeutics is on of them, bktx. structure, gpcr. alt. and rytm. these are four, i'm sure i'm missing ome. these are four small cap bio tech names that are all working on some modality of treatment, either injectable or oral. i'm pretty confident at this point, just given what we saw earlier this week, with novo spending $11 billion just for manufacturing, it's going to be difficult for any of these small cap companies to keep there, but maybe on the orals they have a chance. >> jared, thank you. always good to see you. >> you, too, thank you.

>> jared holz. what do you think, tim? >> well, i bet small cap stocks that are in this space are ones that are probably moving right now. and people are looking for the opportunity to find that next pot of gold. by the way, in bio tech, in the smaller names, that's why people trade in those stocks. back to amgen this is a company that sometimes what gets lost is, there's a lot of catalysts for this company in '24 that are outside of some of the things that were some of the disappointing data. inflammation, rare disease, there's a lot of things in the pipeline that are really why the analysts are putting the multiple higher on this company, no matter what they do in glp. >> you asked the question i would have asked, because it's really hard. lilly is $700 billion in market cap, up 26% on the year. we know where they are in this position, we know novo just make that acquisition. so, how else do you play this? tim, your pfizer, might they buy one of the small cap companies? the megacaps are going to have to get in this game, especially if they are not having any real success on the oral front. so, i suspect we will see more

m&a as the big guys need to kind of have exposure here. coming up, affirm all over the place after earnings, down as much as 20% afterhours. is the buy now pay later pioneer worth buying at all? we'll debate that. and pinterest down as much as 25%, then positive at one point. we'll be joined by pinterest's ceo for an exclusive first look inside his company's latest report right after this. "fast money" is back in two.

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welcome back to "fast money." pinterest shares falling in the afterhours. the stock coming back after sinking as much as 28%, but still down. the social media stock reporting a miss on revenue, but getting a bit of a boost after announcing an ad partnership with google. julia boorstin is joined with pinterest ceo bill ready. julia? >> thank you, melissa. bill, thank you for joining us today. >> thank you, julia. >> so much to cover here, includingthis new partnership with google, but i want to start off with earnings, because you did have an earnings beat, but revenue fell short, despite the fact that you added far more monthly active users than anticipated what was going on in this uarter? >> yeah, so, we're really proud of the quarter we put up. we saw one of our best user

growth quarters ever, accelerating to 11% growth, best since q-1 of 2021 on the user side. on revenue, we've seen solid acceleration through the year. more than doubling our growth rate on revenue in q-4 versus where we were at the start of the year. so, really strong acceleration there. mid-point of our guide. one of the things we're really excited about, as we continue to launch more performance products, we more than doubled the number of clicks we send to advertisers in q-4. they don't really shift budgets a lot in q-4, particularly, with that being the holiday shopping season, but we delivered a lot of value there, which is why we're seeing acceleration for q-1. we are off to a strong start and we see more of that acceleration trend continuing as we look into next year. >> you certainly implemented a lot of changes since you took over at ceo, but i'm watching the stock, it's down 9.5%, bill. i hope you can address some of these concerns of investors who anticipated even stronger revenue guidance in the first

quarter. the fact that your average revenue per user is lower than an missticipated in the u.s., s to investor concerns. >> sure, well, you know, yeah, it's -- i think it's important to separate expectations that got pretty lofty for us and for others in the space over the last month or two. from the business fundamentals. if you look at the business fundamentals, we are executing well and have strong fundamentals that are accelerating. users we already talked about, that are accelerating. we put up our best user growth ever, or best mall number ever. accelerating revenue in the back half. growing depth of engagement. margins are expanding. we promise 200 basis points of margin expansion for 2025. we delivered 660, with more expansion on the way. as you look at the fundamentals of the business, those are all strong and accelerating, and there's a lot of tailwinds still in the business, both in terms of the value capture from things we've already delivered like the

doubling of clicks to advertisers in q-4, as well as the continued progress on third party demand, where we see our amazon partnership scaling and performing well, and bringing on new partners like google tohelp us on the international front. >> yeah, so, explain to us this new partnership with google. why are you focusing with them, just internationally, and should we expect that partnership to expand to here in the u.s., as well? >> we really think about third-party ad demand as a way to round out our auction. and so, we started that with amazon, we're quite pleased with that, it brought a great buying experience, and a great product catalog that's additive to our users. growing engagement even as we increase ad impressions. so, showing those ads can be great content for our users. you asked about rpu earlier, that's been a highlight for us. we have grown users really rapidly, and when you look at that growth, if you decompose international versus u.s.,

international is even stronger for us on user growth, but so many of those international markets for us are completely unmonetized. so, that becomes a drag on rpu, so, we think bringing on a great partner like google that is p present in those markets can help us address the international rpu, and we have working with resellers and agencies in those markets, as well. >> and just a quick final question here, bill, before we're out of time. on the earnings call that just wrapped up, you talked a lot about artificial intelligence. how you are already using a.i. to target ads and content, and with some more features in the works. give us a sense of how a.i. might start to impact top line growth this year. >> so, a.i. is already driving great top line growth for us. a.i. is a core competency for us. i've talked about on past calls where the large language models, 100 times larger than they were a little over a year ago. have driven a 10% improvement in relevancy for users. as we are giving users more relevant recommendations, that's

driving our depth of engage with users, why we're winning with users broadly, particularly with the next generation, gen-z, our largest, faster growing demographic. we are winning with gen-z. and we're seeing that a.i. capability play through in giving them great recommendations, great new content types like collages that we talked about, improving the shopability, and it's driving through on the ad side, where when we look at driving greater impressions, while still driving up engagement, it's because that a.i. tuned on our really unique signal of users that shop on pinterest, telling us what they're interested in, that's letting us make better and better recommendations, more of that shopable content being ads. it's driving really great returns for advertisers, why we're seeing really large advertisers shifting bu ing bud us. so, a.i. is a core competency, and is a key part of why we see

acceleration as we look into q-1 and into next year. >> and certainly big focus on shopable content. bill, thank you for joining us. pinterest ceo bill ready. really appreciate you taking the time. melissa, back over to you. >> julia, thank you. guy, how do you trade this? >> rpu tim? >> thank you. >> u.s. and canada was disappointing. you know what? margins were better. and it's not a complete disaster. rest of the world, by the way, they can move the needle there in terms of revenue. you are talking about something here with a company at 24 times, not expensive given the growth rate. buy the weakness. coming up, one more earnings report to dive into tonight. we're watching shares of affirm, all the details out of that quarter after this break. more "fast money" in two.

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welcome back to "fast money." an earnings alert on affirm. down 20%. kate rooney joins us in san francisco with the action. kate? >> hey, melissa. it was a solid quarter across the board for affirm. the ceo kicking off that analyst call, sort of a flex. he skipped right to the q&a, he said the numbers spoke for themselves, so, he skipped that preamble. guidance was strong, but not quite strong enough, though, for some based on expectations bake into that stock. if you look at how much affirm beat by in the fourth quarter, some thought that volume guidance should have actually gone up by more and it' raising

some questions on whether the second half might be slowing for affirm. mizuho called the stock drop a knee-jerk reaction. it's recovered a little bit. the name is highly shorted, so that tends to the volatility. affirm's loss has narrowed in the quarter. company beat by almost every metric. revenue up 50% and delinquencies were flat. the ceo says that was deliberate. they watch that closely. you had account growth up 13% and loan loss provisions, guys, were a bit higher than expected. but that stock recovering here. back over to you, mel. >> kate, thank you. we live in a world where down 11% is not that bad. tim, what do you make of this? >> how i feel about these stocks, if you buy now, you're going to pay later. i think the credit dynamics are awful. >> very clever. >> no thank you. >> extremely clever. >> karen? >> well, i mean, that -- delinquencies being flattish is sort of okay. that did seem okay, but i -- i

haven't owned this one. i just don't get it. >> all right. up next, final trades. 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.

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our customers get what they want, when they want it. (jen) now we're even smarter and ready for what's next. (vo) achieve enterprise intelligence. it's your vision, it's your verizon. final trade, tim. >> japanese stocks. all-time records and going higher. >> karen? >> etsy. >> dan? >> yeah, pins. buy the dip. >> guy? >> i have to say, we've been doing this a long time, right? >> 17 years. >> the last person we had with us, i mean, this page, amelia lee. we've had some great ones. she's on the top. she's number one. today is her last day. number two, rarely do we get gifts, but we have this rag tag candy bag, she went to etsy and had a candy bag made for us.

the absolute best. >> that was the best gift we've gotten ever in the history of "fast money." >> going to miss you. >> we're going to miss you. >> she's awesome. >> thank you, amelia. >> brig. >> thank you for watching "fast money." good luck, amelia. "mad money" with jim cramer starts right now. my mission is simple. to make you money. i'm 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'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you a little money. my job not just to entertain but context, teach, educate. call 1-800-743-cnbc. tweet me @jimcramer. everyone knows the ascent of the mega caps, the nation state companies i call them, has created