levelings and tomorrow, kroger, costco and broad come broadcom is a big one. we look to jobs on friday as we have had this macro data suggesting perhaps that we're starting to see more easing of the labor market, which we know is still historically relatively tight. more powell, too, tomorrow. >> yes, indeed! stocks finished today higher. that's going to do it for us here at "overtime." >> "fast money" start now. >> here's what's on tap tonight. back from the rink, new york community bank corps getting a billion dollar lifeline from stephen mnuchin one year after svb failed. how did another major bank almost blow up. we'll have the latest. former fda commission scot gottlieb to weigh in on these wildly popular and effective obesity drugs. and tim is pumping up the l,

topping the tape on a chinese tech name, and two left beats, the reason foot locker dropped 30% today. i'm melissa lee live from studio b on the desk tonight. tim seymour. markets meantime, managing gains across the board as investors look to recoup yesterday's losses, though all three indices did close well off the day's highs. fed chair jerome powell reiterating that the central bank is not ready to cut rates just yet. we'll get more on that in a few minutes. we start off with a last minute lifeline for new york community bank corps. shares were down as much as 42% today before the regional lender announced it had secured a billion dollar investment, led by the firm of stephen mnuchin. shares managed to close a day higher, 7 1/2%. that is less than 25 cents higher. for the latest details, leslie picker who joins us on set. what a roller coaster day told.

>> it was a fascinating turn of events for this company. new york community bank corps, ink a deal. those investors buying common and convertible preferred stock $2 per share. investors will get a 60% warrant coverage to buy more stock with an exercised price of $2.50. a bit of background on how this came together according to people familiar with the matter. secretary mnuchin had been involved here, with nycb for a while now. jeffries approached a select group of other investors with the prospect of a capital raise on sunday. they were told a lead investor, mnuchin's firm put up $450 million. hudson bay capital, reference capital parents and citadel had decided to invest alongside him for a total infusion of that $1 billion. i'm told that putting former comptroller of the currency, joseph oting in the ceo roll and

revamping the board fwas a boos of confidence for investors to join in here. the price per share of $2 was finalized intraday after the stock plummeted. it's a presume to the lows of toad, below any level that nycb has closed since the late 90. the stock is reacting positively. investors believe the equity stabilizes the bank the stock moves prior to the announcement were more reflective of a likelihood of failure. melissa. >> i think mnuchin stepping in an interesting twist given his track record during the great financial crisis. at the time that was the third biggest failure amongst banks in u.s. history. i guess there's a dance doing done in terms of when to step in, how far do you let them fall and whether or not you wait until it does. >> if you're a public market investor, there's been such a slew of headlines surrounding this company. it was just last week, they revealed their material weaknesses and internal controls related to loan review.

that review is ongoing. there's been this sense among the investor community of what could pop up next. that's been the main concern and why they have struggled to find stability here. they did have a couple of weeks of stability. you saw some insider buys. things were kind of under control. now there's so much uncertainty. what today's news showed and i think that's why you saw the stock close up a decent amount today is that, you know, you have this new management team in place. a management team that is very familiar with the regulatory environment, which is extremely important as this company is now over $100 billion in assets. regulated much more strictly than they were back in 2022. >> you have been pouring over this. it's fascinating. >> the fear of failure, we were less than one day from failure. i don't think the stock could have opened again tomorrow without there having been something cataclysmic. interesting timing for them to

price an equity offering and a convert, and the warrants. but i imagine that nycb had absolutely zero negotiating leverage, none, so this is very good. there's life for the bank. you know, it was trading as if it was an option that was about to expire. now there's life to the option. i don't know that it addresses some of the other issues. so we know that they had this goodwill of $2.4 billion. all of a sudden they're saying, you know what, that goodwill should be worth zero. that doesn't affect the tangible book value. it does raise questions of why have you never looked to write down that goodwill before now. i don't know, maybe it had to do with them talking to mnuchin and others. it's fascinating, particularly after the crazy ride last week where we saw the head of the board step down and say in protest, i don't think he should be our guy, which you brought up

the point, maybe it was because of some of the things they bought under flag star. i don't know. the goodwill didn't change between the flag star and after. it didn't change much between when they did the signature deal, so i don't know what that is. the disclosure hasn't been fantastic. >> no. >> and i also would imagine they were calling jamie diamond and he was like no way, i'm not taking this call. >> there's a sense of trust among the investor community. they lost their head of risk and head of audit back in december. it was never disclosed, they kind of disappeared from the web site, and suddenly media reports showed the two individuals had departed. it took a few weeks to fill the role. >> reminiscent of svb, and that's why i think when headlines hit the wires earlier today saying they were looking for epidquity capital, a lot of people had the deja vu, that's what happened with svu and they went under and the stock

plummeted 40% on the headlines when the deal was solidified and they saw it was a billion dollars, led my mnuchin's firm and heavy weight investors, the stock rebounded and people felt more comfortable. >> it's that history, i think you're referring to this, karen, when did they know about the $2.4 bi $2.4 billion impairment. did he say, i could get involved, but you have work to do before i do that. they were in a difficult place. the thing that's interesting to read, headlines, when you hear announcements from the new team and the investors saying we actually now feel that new york community bank has enough reserves to deal with provisions and parts of the existing portfolio. i don't know how you do that. in other words, i think there's some dynamics out there. you talk about the idiosyncratic of new york city bank, and in some sense, this isn't the whole sector. they have significant issues in terms of buildings they have in new york, that have significant rent controls around them. there's a lot of different dynamics with their loan

portfolio that i'm not so sure right now given the concerns that are happening that you can say, we think we're not only good here, but we're good to be able to deal with additional capital reserves. fascinating that the kre closes flat on the day, and if anything, over the last couple of days, is an up swing, and so that's telling you that the market is saying, this is nycb specific. also fed powell today made a reference to commercial real estate and he said we kind of think it's manageable. that was a great day to say, if your nycb, trying to get this deal done. >> it's interesting, though, that the problem was they became too big, and all of a sudden we're under the regulatory cross hairs. so i wonder if this rattles investors' faith in small caps, you know, when you think about it, it was doing just fine until it reached a threshold of market cap and assets that triggered more regulation. so i just find this all so interesting.

>> are you saying they were doing just fine or no one would find out. >> you should say it either way. it makes you wonder, you know, okay, what about the rest of the regionals or the smaller banks, right? >> yes. who was looking at the loan portfolio. itst no is not like it was an unknown. they had a large percentage of loans that were tied to rent control properties. >> 2019 was when the law was passed. rates were rising for a long time. the most well telegraphed rate hiking cycle in the history of man. >> was that in the model? obviously it wasn't. we keep expecting these things to all be in the model. so now we flagged another one. that will be put in to the next model. >> the question is who else hasn't put that in the model. what else hasn't been accounted for. >> once that happens, the market will trade off of it. >> my understanding is that there was almost this kind of regulatory awakening when they crossed that $100 billion threshold. suddenly they were feeling pressure from the occ which hasn't historically regulated

them as closely, and so they, the way that they were treating these loans, i think they expected more of a phase-in period after they acquired the signature assets that they could kind of phase in some of these criticized loans that it was more of a, you know,okay, we did this deal for you guys, so give us a grace period to work this through our books, and then the occ came in and was lining, no, no, you have to criticize these now. these need to be reflective of $100 billion bank. there is no phase-in period. you are over this threshold. you need to be acting like it. i think that was where the big surprise came in in the fourth quarter. they had to take more reserves as a result. flash the dividend, and so it was kind of like a misunderstanding with their regulators on to what they expected following these large acquisitions. >> which also does not instill confidence. >> right. right. exactly. which kind of feeds into the whole narrative here. >> right. >> leslie, thank you so much. leslie picker keeping us, you know, abreast of all the developments here. for more on what new york

community bank corps lifeline looks like for the stock, stifel company, chris has a market perform rating on the stock. chris, i want to just start off with where we left it, you know, if new york community bank corps had never acquired the assets of a signature, would we have known about the problems within their loan portfolio? >> sure. thanks, melissa. the problems in the loan portfolio really come down to concentration, right, new york community has been a concentrated business model in new york city, in multifamily apartment buildings forever. that's not new. the signature deal in the flag star deal a year ago actually made them less concentrated. still concentrated but less so. really, the issue is they cross the hundred billion dollar level, and the occ while they previously were the regulator, we believe the scrutiny got turned up after the deal, and certainly this phase in period

did not happen. >> so when the bank announced that it was acquiring those assets did you think there was a phase-in period? i'm wondering how there is a misunderstanding about that when you're buying alternates and it's a deal that's blessed by the fdic. >> we all did, yeah, we actually upgraded the stock to outperform that night. we thought at $6, given the stock and given the capital relief, this was a great deal. we thought while the company had earnings challenges they were working through, diversification moved in the right direction. the phase-in period didn't happen. we didn't see this. we stepped away from the stock in december. we certainly didn't see the speed at which this happened. >> chris, it's karen, thanks for being on today. you have a buy on the stock. how do you model this? what are you hoping they achieve? what kind of metrics are you looking for here? >> we were buy rated last year. we stepped away in september.

what we're going through, karen, we're trying to figure out with the dilution that happened today, what is the normalized return on equity. the stock closed at 50% of pro forma tangible look. the market is thinking an roe in the 5 to 6% range is about right. we're talking to investors a lot about this reminds us of citigroup in 2008 and the dilution. the earnings power has been diminished. there is earnings in the company, it's going to take time to come out. today was the capital raise. going forward, they're not done. they're going to consider securitizations. those are the first moves the company is going to make after earnings. clearly we're trying to estimate the earnings power, and it's probably a 5 to 6 roe. >> who's next because you can't tell me that id owiosyncratic, new york rent control market is

difficult. we can paint that picture. it was a year ago it was svb, held in security maturities, and a quick flight of capital that made that problem. there's issues out there, and it seems to me, a lot of people may be over thaeir skis. >> commercial real estate is 40% of bank's balance sheet. that's where we're spending the focus. and they have lower reserves, the incremental earnings pressure is felt in small banks. confidence has been really really low. i think investors feared this was going to be a zero for sharehold shareholders, and clearly right now that's not the case. we are thinking what the normalized impact from credit is. we don't think there's going to be a systemic here. we're at a one-year anniversary of svb. the liquidity, and deposit levels look strong. systemic, we don't buy into that. >> chris, got to let you go.

thank you so much. >> great, thank you. >> where do you stand on this? >> when you look back at the issues we had last year, and when things were calleda bailout, usually when you give a bailout, you buy the stock and the stock rallies. we didn't see that last year. we saw floods of money coming into money center banks to jpmorgan, because they were the one solving the problem. now you have another bailout, so for me, there's plenty of others that are going to be out there. the market is an efficient place. if you're looking to buy the equity, where do you think it's going to go? last spring taught us that the equity didn't go anywhere. looked back on some of these names that were troubled back then. equity didn't go anywhere. look back on the other names, never got as high as they were when they were sold off. all this tells me is buy

jpmorgan. >> i think that i kind of agree on the large over small argument. i mean, i think this just bolsters the idea that at least you know exactly what the large banks are doing. they know what the regulatory landscape looks like. there are potentially lower earnings risks than they have been historically. lower leverage. i think about real estate back in 2009, and it felt similar. it was the idea that, you know, these companies needed to raise equity, and when they did, they sort of got a lifeline and they bounced a little bit, but then they just kind of remained dead money for a long period of time. and i wonder if that's the path for regionals. i mean, i think that what's interesting is you need a lender for an economy. i think this is an environment where, you know, you can potentially see that shift. >> did you actually put on the trade that we talked about this afternoon. >> i did. and then i almost took it off.

melissa and i were talking about this, before the mnuchin thing, this looks really bad. i'm going to short some kre, then you texted me the mnuchin thing, you know what, i'm not going to look to cover. this isn't great. right, and then i thought, oh, kre, xlf kind of trade. i'm in your camp, to the beneficiary of this kind of disruption is the big banks. >> right. and also we got word from powell that they're re-examining the capital plans, a big boost for the big banks. >> there's no question, and we thought one year ago that the big banks had their hands tied once again. it was at a time when the banks were having more freedom on theircapital. i agree with that. i look at what everybody is saying here. first of all, if you look at the bkxo, the large cap bank, essentially, you know, you double bottom at 70 on the charts, up 40% on the market inflection, and you're now actually breaking out, breaking

out at a time when we are seeing some of the broader dynamics. i think she even talked about the old economy stocks tarp going to benefit from the efficiencies of ai. you're seeing this where people are willing to, it's easy to poopoo that the eps growth. >> jerome powell saying in his testimony today that he is confident inflation will continue to move lower, but that more data is needed before the fed cuts rates. long-term treasury, let's bring in paul mccully, adjunct professor. always great to see you. >> good to see you. >> did we learn anything new from powell in terms of the trajectory of rate cuts and/or the landing point, the end point? >> no, i don't think we learned anything new today. we did get confidence that we heard right back at the last

pressure and the "60 minutes" interview. the tightening cycle is over. he did aan easing cycle is goin come. he's warm and fuzzy about that. he's not urgent about starting the easing process, and i think there are a couple of reasons. one, the economy is still resilient, if not strong, and i think he agrees with that. and we also have the financial markets quite exuberant. so both of those factors say later, not sooner, but it's a done deal that we're going to get an easing cycle, and june seems to be a date that works for the market, works for me. i think it will work for the fed. >> hoya, professor mccully. i think you have an argument that the fed is over restrictive. but it's okay. how about the offset of the

financial conditions out there being remarkably easy. is that making it, you know, an okay environment for the fed to hang in there longer? i realize we don't know what the tail is and the dog is. if equities were doing something different, would you be more worried about the economy than you are today? >> i'm not sure if i would be more worried about the economy. i think the equity market really is betting on the easing game, and it does ease financial conditions along with the other components of financial conditions, and that supports the economy. and on one side, that gives the fed time because the financial markets are already stimulating or supporting the economy. on the flip side, it requires the fed to ease in the fullness of time to validate what the market has done. or if you want to put it very simply, ultimately the fed's got to re-slope the yield curve, an

inverted yield curve with easier financial conditions is not a completed project. you ultimately have to have a re-slope yield curve, the fed has to validate it, and assuming that they do, then we will have, you know, the soft landing scenario. >> paul, what's going to be the tell? for me, it's they can't do qt, and be cutting rates at the same time. there's too much push/pull there. so once we see them end qt, that gives me the sign that the next go around is the cut. do you agree or why don't you agree? >> i actually disagree with that. i think that qt and the policy rate are separate variables. they're separate tools, and i don't even think there's any impediment whatsoever to the fed starting the easing process and continuing qt, and i think qt is going to be tapered, maybe even

in march, but certainly this spring, so as they're not at the pace they have been for the last 18 months. >> paul, thanks for joining us. always great to see you. pa paul. what did you make of today's testimony? does it change anything? you're already getting more bullish on the markets? >> i am. i feel pretty good about markets. i think, you know, we have written a lot about the bear cases we hear don't necessarily hold water. you know, the idea that the market's too expensive. if you compare the s&p today to the s&p in 1980, it's more intensive. it's a completely different animal. 50% is asset light, versus 30 years ago, it was more manufacturing. i think, though, what's interesting just from listening to the professor is the idea that we're not going to see

another fed hike, so i think that could be the bearish scenario. >> that there is one. >> i mean, just, you know, inflation, is it under control, maybe it comes back a little bit. if we did see another fed rate hike, i don't think that would be so terrible, what's another 25 basis points, cash rich investors would make more money on cash. tech companies are net cash positive. it would be okay from a fundamental perspective. i wonder if that's completely off the table. >> i wonder if it's off the table, both a cut and a raise, just because of the political environment! right. exactly. >> data supports one of those. >> you hope it, right, as a citizen. we have this independent central bank that we don't want to be. they may not do what they need to do to show they're independent. we've dgot three cuts. i agree. coming up, a check on china check. shares of jd.com after the broader internet space is

jumping along with it. how to trade these names next, and we are stepping back on the scale for the weight loss race. how the rising cost and those in need, when "fast money" returns. this is "fast money" with melissa lee right here on cnbc. i take prevagen? i don't have a problem with my memory." memory loss is, is not something that occurs overnight. i started noticing subtle lapses in memory. i want people to know that prevagen has worked for me. it's helped my memory. it's helped my cognitive qualities. give it a try. i want it to help you just like it has helped me. prevagen. at stores everywhere without a prescription. " fast money"

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welcome back to " fast money," jd.com topping the tape today having its best day in wo years. the chinese ecommerce company surging 16% after posting a beat on the top and bottom lines. revenues rose 3.6% from a year ago. the company announcing a $3 billion share buyback. there's so many concerns about the competitive threats which they did seem to acknowledge in some respects, but specifically from pdd, which is the owner of temu, shop like a billionaire. >> it's very competitive. if you think about that environment, the question is, if you're investing in chinese ecommerce names, and even internet companies more broadly, based upon fundamentals or not. again, on fundamentals if you look at the cash and the balance sheets of jd, and they talk about this buy back, i think alibaba has somewhere in the nature of 80 billion with cash

equivalents, everything about these companies says buy, buy, buy. and i think the fundamentals are starting to, you know, look better based on this profit dynamic that people can allow them to focus on the names themselves. these were great numbers. great numbers, and i think they are coiled springs. i just don't think people are jumping on the other side of that sea saw yet. i've definitely added to chinese internet names over the last couple of weeks, and i feel like i can own them for the long-term and doing that for clients as well. the politics around it in terms of what the chinese government might do and the dynamic of an election year, there can be a lot of rhetoric about tariffs and u.s. chinese relations getting worse. >> it's a bipartisan issue. everyone has china in the cross hairs, but if you look at the market, to tim's point, the market has lost $6 trillion worth of wealth in that market. so if you look at any chart, the charts all unanimously look terrible. can the bounce from a much lower

cost basis, of course they can. am i willing to take that risk? i don't think i'm there yet. >> there's a lot more " fast money" to come. here's what's coming up next. slimming down your waist and your wallet, will the rising cost of weight loss drugs impact those most in need, the details on that one ahead. plus, lifting up, a five-star ride for the stock in today's session, and one of our traders is staying long on this ride, the ride share tear next. you're watching "fast moy"ne live from the nasdaq market site in times square. we're back right after this. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone.

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. welcome back to "fast money." stocks bouncing back from yesterday's selloff. the dow climbing 75 points, the s&p and nasdaq both jumpedhalf a percent. shares of brown foreman sinking 7% as they lowered their net sales forecast. brown-forman the worst in the s&p today, and negative for the year. dexcom surging 10% as the fda cleared the over-the-counter glucose monitor patch which will be available this summer, designed for patients with type

ii diabetes who do not use insulin, and does not require a prescription. nvidia, higher yet again today, up 3%, now up nearly 8% just this week. and it's only wednesday. and gold also glistening today, hitting an intraday all day high, setting on a new record, and bitcoin back after a big drop yesterday. 69,000 before making a sharp downturn to climb around $67,000 today. coming up, a five-star move for one ride share stock, lyft surging on the back of big upgrades this week, has one of our traders adding to his position. why he is flexing his glycep. heavy costs in the weight loss drugs, consumers being impacted. what can be done when the battle rages on. the details when "fast money" returns. catch us anytime on the go, 'rbapoashe "fast money" dct. wee ck right after this.

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government billions. brian deese wrote in a "new york times" op-ed, the u.s. government should try to lower prices through medicare purchasing program but not all experts agree that's the best way to control costs. former fda commissioner dr. scott gottlieb joins us now. great to see you. we had a heated discussion surrounding is this yesterday, and we had some question marks around the eye popping numbers that deese outlines, and you took issue with those numbers. what, in your opinion, did he miss? >> there's no question this is going to cost medicare a lot of money, not nearly what was estimated in the op-ed. they wrongly used list price to make their assumptions on what the cost would be rather than the net price. we know discounting is heavy in the market, on the order of 40 to 60% between wegovy.

they wrongly assumed it was approved under a biological. it was approved under a drug application, it's subject to price negotiation within the ira, within medicare, and it's probably going to go on list this year, so it's probably going to be subject to negotiated price as early as 2027. and some analysts on wall street are estimating that. and so the notion of the op-ed was that we need to extend the price negotiation under the ira to encompass these drugs because otherwise they won't be subject to the negotiated price until 2030 they said in the op-ed and they will be subject to the negotiated prices as early as 2027 and go on the list, semaglutide will probably go on the list this year, based on when it was approved, approved in december of 2017, that's seven years now, and therefore subject to negotiation. novo is regretting they got approved in january of 2018, now it's seven years. >> right, should have talked to some of the analysts on wall

street, who are already factoring in '27, the year that would go on the medicare list. up for negotiation. i'm wondering, though, you mentioned ozempic specifically. wegovy was approved later on for weight loss specifically. is there a difference in terms of what was able to be negotiated, in terms of what the use of the molecule is? >> so the price negotiation, the negotiated rate is going to be applied to semaglutide, so it's going to encompass all the formulations, presumably, based on how medicare has behaved in other settings similar to this. they're going to extend this, not just to the formulation of diabetes. but weight loss and wegovy. that will be subject to negotiated prices in 2027. >> how do you think about the gains, though, to society, that he didn't factor in, that a lot of people are thinking broadly about. theoretically if you're not having a serious cardiovascular event or not missing work or not

in need of knee surgery you're not missing work. >> it's not just the productivity benefits we'll see but the direct health benefits. there's a lot of comorbidity inside the medicare. a lot will be eligible for the drugs even before medicare expands coverage for weight loss. once medicare expands coverage for weight loss, then allofl these patients will be newly eligible for the drugs, and as new indications get on the labels for drugs, and wegovy will have cardiovascular risk reduction this year, those patients will become eligible for the drug because even though medicare doesn't cover drugs for weight loss, they cover drugs for cardiovascular risk reduction. there's 23 million medicare b beneficiaries who had a prior stroke of mi. half are eligible because they have diabetes and half of the remaining patients qualify based on bmi, that gets you around 5 to 6 million patients who will

be newly eligible for wegovy once it gets the label expansion. and eligible based on bmi is roughly around 20 million. 25% of that population will be eligible just based on label expansion this year. and it's only going to increase as they get indications for sleep apnea, chronic kidney disease and comorbidities. >> some people think a lot of this is politics. your views on the political season, and now parties going toe to toe, give your thoughts on drug pricing proposals from each side. i think what you believe might surprise some people. >> i do think that this op-ed was probably a walk up to the state of the union where the president's likely to announce a proposed dramatic expansion of the inflammation reduction act and negotiated prices to a broader segment of drugs. they have put that in the budget. a lot of that has been

previewed. the scuttlebutt inside the pharmaceutical community, if you will, is that the proposals put forward by former president trump actually could have a more dramatic impact on the industry than the proposals being put forward by president biden in terms of expansion in the ira. first of all, i think most people don't expect the expansion of the ira to be enacted. the presumption is republicans probably get control of the senate. if president trump were to win, even if there was a democratic senate, and it's unlikely there would be a democratic senate. what he's proposing is to index prices and medicare to european drug prices. if they don't adjust that, and apply it retrospectively. rather than prospectively, just to drugs newly launched, that could have a dramatic effect on the pharmaceutical's revenue. when they proposed in the past as a regulation, they did apply it retrospectively. that would have a very dramatic

effect, and i think quite frankly, probably more likely to pass. republicans want to support it because they want to support the president, and democrats want to take money from the drug industry. >> dr. gottlieb. thanks for being on. do you think that we could see this not being a duopoly in two years, and that could decrease the pressure on pricing? >> certainly. and also these companies have follower molecules in development. they're probably more than a couple of years away. they're going to have pivotal data probably next year. you probably won't see approval until 2026. i think there's always going to be competition from oral formulations of drugs where patients could get cycled off injectables once they achieve initial weight reduction and get maintained on oral drugs, including oral drugs currently on the market. doctors will find different ways to manage patients. not necessarily on the injectables in perpetuity, you're going to see intense, i believe, price competition

between lily and novo. which drug has the best label and for a time, novo is probably going to have the better label. they're going to get that data into their label. the evidence for cardiovascular risk reduction and so in order to compete, lily will probably have to discount, novo is going to have the better label for a year until lily turns over the trials they have in chf and sleep apnea and get approvals in 2025. >> scott, always great to see you. thank you. >> thanks a lot. >> dr. scott gottlieb. were you long lily. >> i was long amgen. and i'm actually long two of those letters in the acronym. so when you look at novo and

lily, it's a two-party race. >> are you thinking about the impact on productivity and even the economy in terms of your stock market forecast? glp-1 drugs? >> it's a great point. i think it's obviously, it's going to change tha lot of facts like the need for prosthetics, i think the array of possibilities is wide. what i find really fascinating, though, is we have seen this movie before. every presidential election year, where we start the year with the big overweight in health care, let me tell you when we look at the holdings of mutual funds, hedge funds, everyone. pharma, these stocks are the core holdings of your average fund manager. i feel like this is a setup for health care. you get this tweet, medicare for all, something happens during campaign season, so this makes me think we're not necessarily positioning for the election yet. >> all right. coming up, why tim is going all

in on the l in blicep, the ride share lifting his spirits. >> pretty happy right there. >> meantime, foot locker shares falling off a cliff today, down nearly 30%. the major headline that has investors scrambling for a foothold right after this. to be like wow! what did i do to get here? (tense music) right. work. you worked hard and it's time for a bank that'll work hard for you. everbank performance savings is built to put your money to work with some of the highest rates in the country . going, got you where you want to be. we're the partners for your next move. everbank. advantage, you. the future is not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future. a future where you grew a dream into a reality. it's waiting for you.

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welcome back to "fast money." shares of lyft jump 8 1/2% today. now up nearly 17% in the past week. even with these gains, it's not quite back at its recent post earnings high. lyft, of course, is part of tim's -- >> it just rolls off the tip of your tongue. >> which is not a real word actually. >> it's amazing the flexibility we're given in the acronym game. and i need it. i think i'll take anything i can get. i'm a little behind here. my views on lyft, a couple of big picture dynamics with transportation as a service and mobility, and you talked about it, a duopoly in glp land. uber and lyft, there's a significant difference in where they trade. probably a reason for that. the profitability and the numbers they showed for the 4q numbers, the fact that they're executing on cost savings and efficiency, the tail winds from additional drivers, they've got

25% more drivers, 47% of supply. these are things that were killing this company during the post covid normalization process. i just think some of this is a combination of there's a 12% short interest in the stock. the company's had a couple of good quarters of numbers. the street is actually proved me on this. every analyst says these are good numbers. i want to see a quarter of this. this is a $30 stock before it's a $14 stock, i think, and i think it's a combination of valuation discount for uber, that they had gotten their act right. the tail winds for the industry are great, and there's only two players. i like lyft, and i have been adding to a position over a last three or four months. >> where are you on 30 over 14? >> it sounded great when it rolled out of his mouth. it was extremely confident. when you look at the chart, it's a terrible chart long-term. when you look at the performance against uber, it has been outperforming or very close to uber on a longer term. i like uber because you're

looking at a huge mammoth company, and liflyft is a very small company in relationship to uber. when they don't perform here, they could perform for something else. they'll get the benefit of the doubt, but coming from such a low price and being beaten up for so long, i could see where he's excited about the stock. >> coming up, two left feet for foot locker as a sneaker retailer plummets after its latest earnings. how long the company now expects before turning a profit, and how investors are untying from this one. that is next. more "fast money" in two. es in . i've been doing flight nursing for 24 years. as you get older, your brain slows down and i had a fear that i wouldn't be able to keep up. i heard about prevagen from a friend. i read the clinical study on it and it had good reviews. i've been taking prevagen now for five years and it's really helped me stay sharp and present. it's really worked for me. prevagen. at stores everywhere without a prescription.

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harness the power of xfinity internet and stay connected to the things you love. ah, they'll be like this for hours. hello dad, hello dad, hello da. uh-oh. good bunnies. ahh! welcome back to "fast money," foot locker getting kicked in the teeth. after the retailer reported a holiday loss, saying the profitability goal laid out last march will be delayed by two years. the company has been in the midst of a turn around under former ulta boss mary dillon. shares had been up before today's loss. karen, you're a big fan. >> i was in my last year's trig, which would make this year's trig flim. that's not the case for more reasons. i have a small position, a

fairly smaller position today after this, but i think that it's a little misleading, this was their plan for '26. they moved it out to '28. it's not like this was supposed to be the plan for '24. but anyone who has following this story like i have for the last year knows that '26 was not happening. they had too much inventory. she was still in the middle, and still is in the middle of a big change out of malls into more super stores. a big capital expenditures, she's trying to do a lot of different things and digital. she put out new earnings between, i don't know, around $1.50 in the midpoint. the stock here at 15 1/2 times for a turn around that still hasn't shown legs to the extent that it should have is not overly compelling here. >> what percent is nike, are nike sales of their total revenue at this point? 60s? >> no, lower than that. and it has been lower. that's not a new part of the

story. and there's a lot of strength elsewhere, i mean, hoka and new balance. >> how long do you stick with this trade? >> i feel like i'm kind of, i don't know, in a good position now. i keep these things around just to make me feel bad when they go down. and not feel good when they go up. it's working. mission accomplished. it's a small bet. i'll feel bad if it gets taken out tomorrow. >> can you spell phlegm? it's a great spelling bee word. >> are aon. final trades up next.

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get iphone 15 pro on us. (♪♪) time for the final trade. >> i like xle. energy, i think we're entering driving season, everybody hates n energy. it didn't work at all. >> great to have you here tonight. >> great having savida say she's

not going on any other shows on cnbc except "fast money." silver has been under performing gold, slv. >> i like eww for on shoring and near shoring into mexico. >> jet blue, back to that level where we saw that carl icahn headline. >> thanks like. >> "mad money" with jim cramer starts right now. >> my mission is simple -- to make you money. i'm here to the 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 america. other people want to make friends, i'm just trying to make you a little money. my job not just to entertain you but to put this thing in context. why don't you call me, tweet me at jim cramer. ho