william sonoma, it speaks to a higher end consumer which is something we talked to neiman marcus' ceo last week. it will be interesting to see how something that's discretionary, like ulta, is going to perform with those results tomorrow. that's going to do it for us here at "overtime." >> "fast money" begins right 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. two wildly different reads on the consumer. shares of williams sonoma surging, while dollar tree dives. plus, tiktok, tiktok. the house looks to crack down on the viral video app. would its days in the states really be numbers? we'll debate that. and honing in on homing. shares of lennar on the move after reporting results, iowa fordability and housing supply weigh on the space. we'll talk with the home builder's executive chairman stuart miller about his outlook in just a few minutes.

i'm melissa lee. on the desk tonight, tim seymour, steve grasso, guy adami, and lori calvasina. shares of dollar tree plunging more than 14% after posting misses on the top and bottom lines this morning. shares, which had been on a steady climb since october, seeing their biggest drop in nearly two years, erasing all the gains for 2023. meantime, williams sonoma stock cooking up an all-time high today. the high-end home goods retailer beating earnings estimates, upping its stock buy-back plans by a billion dollars and hiking under the circumstances dividend by 26%. in the last six months, williams sonoma posted virtually the same gains as red-hot nvidia. so, does today's action emphasize just howdivergent the high end and low end consumers are? this is a theme certainly that we've been hitting on for months and months, but this really seems to underscore that, guy. >> one thing for us to say, it's another thing to see two stocks

on the same day perform the way they did. tim has discussed wsm for quite some time now, and he's been right. this move is a bit parabolic. the dollar tree is the one i'm focused on, i'm concerned about. it was over a year or so ago, back when dollar gen said, people are trading down from our stores to, like, food banks, right? food kitchens. and that was disturbing in a word. so, when people used to go down to the dollar tree to save money, now they're trading down from a place like that. that flies in the face of what we're seeing on the other end of the spectrum, the high end. so, the wealth gap continues. i think unemployment is going to be a problem. i think inflation is clearly a problem, man any festing itself in some of these numbers. and that's one of the reasons i'm still not particularly optimistic about the broader market. >> in the conference call, they spoke about trading down from the higher income consumers, they said 3.4 million new customers were added in 2023 and most of them were higher income households, greater than $125,000. so, we're seeing that same

dynamic that walmart had seen in terms of the high end tradedown. >> this is a theme we've been reading about for the last couple quarters, and it's really just not budging. the thing we've been talking about a bit, our economics team has been talking about how the consumer generally is less sensitive to short-term rates, well, that's not true for the lower end consumer. it's not surprising to me that we're sitting here at elevated levels, you are seeing more pain there. >> it's interesting. so, right, williams sonoma, whether it's the dutch oven that's been selling off the hook or -- >> reidel stemware. >> which you can get there, and we have the inside track on that. if you listen to the dollar tree number, it was all about the guide, it was all about a number of factors that i think actually don't have me that concerned. they are talking about weatheweather, an early easter, some of the seasonals, some of the -- the elements, i think, of a cautious guide that the market just beat

up and said their consumers running out. the profitability here is a big issue. you've seen companies come through with margin enhancement and it's been, if anything, about profit margins that have increased across the board, especially in retail, and you're not getting that here. i think some of the macro is to be concerned about, but i think this is kind of an overreaction for a stock climbing out of a hole. >> i agree with that. if you look at it, wasn't this more about family dollar, that acquisition, going back and optimizing -- how did they phrase it, portfolio optimization. >> closing stores. >> exactly. that's a fancy way of saying it. dollar gen, they don't have that same issue that dollar tree did. and williams sonoma looks like a turnaround story that has started to turn around to me. so, i don't know if we're making it bigger than it is. i think we might be guilty of that a little bit. i would like to see -- i agree with tim, overdone, look at the spike down -- >> is it a buy? >> you have to -- there's a

three-day rule, definitively three-day rule, let it breathe. but maybe go the other way and go dollar gen. >> huh. >> we're going to hear from dollar gen tomorrow morning, by the way. >> we'll be able to compare and contrast. >> would you rather. >> no, no. >> i'm sorry. >> so sensitive with the would you rathers. >> i thought -- >> i don't like when other people insert the would you rather -- >> he got sensitive. >> distance between my nose there -- >> they sound like they are -- maybe we overreacted to these results, guy, and you are concerned -- >> maybe we're having two different conversations. we're having multiple conversations. maybe there's an overreaction in the stock, maybe. i don't think there's an overreaction in terms of the commentary and what it says about where we are as an economy, where one side of the equation is doing extraordinarily well and you see it in these high end retailers, not just williams sonoma, the others we've talked about. and people are clearly hurting. >> and i think at some point -- and if you think about this, i believe that people are fi

fighting -- combatting inflation with credit. that doesn't end well. and it's in the numbers. credit card debt in this country is north of $1.15 trillion. an average rate around 24%. that's not going to end well, either. so, when you start hearing things like this and drawing these comparisons, i don't think it's particularly bullish. >> i'm not discounting the plight that everyone's going through right now, but if you look at a walmart, that would be considered not high end, right? walmart's been pretty successful. so, i you this it's more a dollar tree story. >> execution issue. >> exactly. >> so, i would just throw one more thing into the mix on the broader market, which is, if we are seeing clear and present evidence that lower-end consumers are struggling, and maybe that's stepped up, that is something that keeps the fed in play, which i think is good for the market. people are said, oh, my gosh, the economy is so strong, the fed can't possibly cut -- well, maybe just more evidence that things are not so rosy, if you dig down to all the layers, something that can keep them

moving. >> to you, as a strategist who has a broader view, do you look at this data point and think, this is a data point that will keep the fed in play? >> i think it is. and what i've sensed is, talking to investors -- there's this march view, right, and that got pushed back to june, but our house was already in june, so, i got a lot of push-back from people. well, they're not going to cut at all. i said, well, they are going to cut, because they're prying to prevent a recession, and they weren't necessarily looking for all this enormous, you know, damage to the economy, but there's a contingent of people who thinks you do need to see some damage. so, i think that data point helps convince a lot of participants in the market that the fed will move. >> i have no problem with, there being two consumers out there. and i think you can invest around it. i think the williams sonoma story, it's not terribly cheap. i bought some restoration hardware. this is a name that i think they were running into themselves. but what they both would have said, we did hear from williams sonoma, this has been one of the most difficult housing markets

in decades, and that's a pretty extraordinary statement, it's part of the reason why i think these numbers got the reaction they did, but betting alongside of the restoration hardware consumer right now, i think you do. i think the economy's at least being to the upside. anybody that's shopping at restoration hardware knows the stock market that are at all-time highs. they are still locked in at 2.5% in their house. there is that skew in the consumer that you can continue to play, and then back to a walmart. there is crossover. and walmart, to me, is growing their margin. >> right. and in terms of the housing downcycle, they actually said, williams sonoma, on the conference call, we're closing to the end of the downcycle, and showing some signs of that turnaround. >> 100%. >> lower end. compared to -- >> compared to. >> steve brought up walmart. correctly. but walmart tells us, i think now north of 60% of their client base has income of $100,000 or more, so again, that speaks to

the middle -- you know, the middle end of the country getting squeezed, as well, where they're having to move down to -- you know, the whole thing sort of -- i understand what lori is saying. maybe this is a great data point, if you want the fed to lower rates. of course, the problem is, inflation dragon hasn't been tamed yet. i think the commodities, which we'll talk about later, i think they are going to continue on their horse higher. shares of robinhood getting a boost in the afterhours session after releasing data on customers and assets. kate rooney has details. >> yeah, the brokerage firm seeing a significant jump in assets and trading volume, as market conditions improveoufimp. as assets up 16% from january. net deposits, $3.6 billion in february. that translates to a 42% annualized growth rate from january. they say trading volumes in february were higher across all asset classes relative to january, if you look at equity trading volumes, those are up

36%, that's up 41% from a year ago. options trading volume grew about 12%, and 33% from a year ago. and then crypto volumes, as well, grew, up 10%, that was, you know, about an 80% jump from a year ago, at least -- yes, from the prior year. options volumes up 12%. margin balances up 6%. and that looks like all we got here, but robinhood does rely heavily on trading volume, more activity, absolutely tends to bode well for the bottom line. what you're seeing reflected in the stock here afterhours, melissa, up more than 8%. back over to you. >> all right. kate, thanks. coinbase not getting too much of a boost off the back of the robinhood, obviously because they have a more focused business than robinhood, which is diversified. what's your -- >> i mean, these robinhood news points shouldn't surprise anybody. if you stripped out the price of bitcoin and others, if you kept

bitcoin flat, i bet those numbers are flat. who are the people that are trading on robinhood? good for guy and dan, they've been talking about this recovery, it can certainly continue. in terms of coinbase, it's a combination of, what do we see every single day in terms of the backlog that are going into the bit count etfs? the size of the institutional world that's going in? it only augers well for the broadening of the market, which coinbase has the pole position in terms of the on-ramp into the real digital. >> when we -- it was a final trade of mine, i based it on a mizuho analyst that was on the desk, what was the best way to play bitcoin, he said robinhood. it's been a great trade from there. i'm long -bit, i'm long ethereum greyscare trust. but if you look at robinhood, they're changing the narration. they're bringing a lot of money into retirement accounts, where it was seen as, they were a different type of investment firm. now they're -- >> pandemic, they were, yeah, for sure. >> and now they're sort of a

mainstream, they're trying to shoot for that mainstream ira money and investment money. >> to be fair, he got it wrong on coinbase. he was very negative -- >> very wrong. >> yeah, stock trading $135 at the time, coinbase. you get some right and you get some wrong. analysts are offsides on this one, i'm pretty convinced. after an announcement like that, people are going to have to start to raise their price targets, which sometimes matters, sometimes doesn't. it's had a great run. i think it continues. coming up, a huge drop in u.s. steel, as the company's planned acquisition by nippon hits a snag. plus, live with the executive chairman of len near. the home builder dropping after earnings. we'll dive into the report, get a closer read for what is next for this company right after this. this is "fast money" with melissa lee right here on cnbc.

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with no monthly fees. never pay for an online diet site again. head to golo.com. that's g-o-l-o .com. my name is oluseyi and some of my favorite moments throughout my life are watching sports with my dad. now, i work at comcast as part of the team that created our ai highlights technology, which uses ai to detect the major plays in a sports game. giving millions of fans, like my dad and me, new ways of catching up on their favorite sport. welcome back to "fast money." we've got an earnings alert on lennar. shares heading lower in the afterhours. the home construction company beating on earnings. diana olick is here with an interview with co-ceo stuart

miller. di diana? >> melissa, thank you. stuart, thank you for joining us. you had a strong quarter, with a 28% increase in new orders and a 23% increase in deliveries year over year. but that came at a price. how much did higher mortgage rates hurt you in terms of having to rely on pricing and inessentialives? >> well, if you really look at our numbers, diana, you see that our margins are actually up year over year. margins kind of act in a seasonal fashion, and so, if you look at our fourth quarter last year versus first quarter this year, it has about the same relationship that fourth quarter had to the first quarter the year before, and years before that. so, it really didn't come at a price, in actual fact, what we've seen is that incentives have started to moderate just a little bit. now, that, of course, varies, as interest rates trail up or down, but our program has been solid,

from sales to deliveries, and our margin is actually stronger than our guide last quarter to this quarter. we thought we'd come in somewhere around 21.2. we actually ended up coming in at 21.8. and that's a strong practice si for the fact that the new normal is kind of stabilizing a little bit. demand trends remain strong. and interest rates definitely have an impact on affordability. >> now, the average price of a home, though, that sold in q-1 dropped from 421,000 -- down to $421,000 from $448,000 last year. was that an actual price drop or are you selling smaller, less expensive homes with fewer amenities? >> yeah, it's a combination between the two. some of it is going to be mixed, but some of it is certainly that prices have come down. they have moderated. i guess from an inflation standpoint, that's probably positive news. but overall, we see a fairly

robust environment from a standpoint that and in is strong, and we all know that supply is short across the country. >> but you said in the release, we remain focused on consistent production pace driving sales pace. other builders are pulling back and we're seeing single family housing stats in january came down month-to-month. we talked about this a couple weeks ago -- why are you building so much when others are pulling back? >> look, we've had a contraview. and that view is that there is a housing shortage in the country. the country needs more dwellings. especially for work force housing. we think that it is important for the home builders to be building through and compromising a little bit on margin, in favor of providing affordable, attainable housing across the country. so, we -- that's the direction that we've taken, and we've leaned into our ability, our strong balance sheet and our strong ability to provide housing when it's needed.

>> you stay land light. why? >> why do we stay land light? we stay land light because from a balance sheet standpoint, and if you look at our balance sheet, we're running at a debt to total capital ratio of below 10% right now. that is an effective way to generate returns and to generate shareholder returns while at the same time providing the housing that the country needs. and if you look at our cash flow, if we continue to maintain pace and maintain production, we're able to -- to reduce the cost of production and therefore actually produce more affordable, more attainable housing for the country. and that's good for the work force. >> okay, and i think melissa has a question for you. >> stuart, at what point do mortgage rates have to drop in order for you to stop incentives altogether? >> hard to tell. i think there are a lot of

different factors that are -- that are going to feed into that. there's always been a normalized level of incentivizing in the new home market, but i would say, a couple hundred -- a couple hundred basis points is probably where we're going to have to develop to get to a new normal, and we'll start to see at that point the -- the existing home markets start to come back into play. >> and stuart, we've seen a lot of fluctuations recently in mortgage rates that have pushed buyers in, pulled them out. do you see that 7% is now the new normal? because there's a lot of talk maybe we're not going to see it come below 7% on the 30-year fixed. you can buy it down to 5%, but what do you think is that buyer's level? >> well, the reason that we have been buying down to five, though it's been less of a buydown than it had been when sticker shock

prevailed, it seems that -- that the buydown is a pretty good indicator as to where the consumer really starts to come in at normalized interest rates, and so, that might presbe at 5% 5.5%, but it doesn't feel to us like we're going to see mortgage rates fall in the near future, and so, we continue our production levels, even as interest rates remain high, using those buydowns to keep meeting the consumer at the intersection of their affordability, and where we can produce homes at a solid margin. >> stuart, always great to talk to you. stuart miller, executive chairman of lennar. melissa, back to you. >> diana, thank you, and our thanks to stuart. so, what do we make of this trade here? couple hundred basis points is a long way from where we are right now. >> it's been a phenomenal trade. it's one i've not been in. i've been of the view, despite the unbelievable demand factors that i just felt rates were an

impediment. in lennar, they are going pace over price. they've sacrificed margins, they've been trying to ompete. they've been moving, i would say lower in their asps, and that's been proven to work. whether that really translates into a higher multiple, what you're starting to see are some eps cuts, even though the numbers were solid. 60% move since the october pivot. i think i'm out still. >> it's interesting. we talked about the retailers before, so, let's just quickly talk about home builders. toll brothers, which reported a couple weeks ago, their average selling price is a tad north of a million dollars, going up. le lennar, we heard -- >> tale of two consumers, as well? >> yeah. >> it's almost poetic, what you've done. >> i could do it in haiku. maybe later. and pulte homes in the middle. the move, i would say, i think we had it right into the fall of last year, but the parabolic move since, i think, caught a lot of people offguard. if you think unemployment stays low, i think you have at it. if i starts to tick higher, you

pull the rip cord. >> i would say big picture-wise, it feels like we're entering into this idea rates are going to come down a little bit, but not as much as we thought. i feel like the home builder space as a whole has defied expectations for the last, like, year and a half, and you've had a lot of headscratching. this is not a lagging area to be looking for opportunities in at this point. i think the bar is high, and when you -- if you beat on earnings and miss on revenues, i don't think investors generally like that, and just seems like a bad setup to begin with. >> what did really well, dr horton, because they were a spec builder. they've trailed, because they are left with too much inventory, i'm guessing, at this point. but when the market turns, they'll turn. >> you've been in it? >> i've been in lennar -- >> lennar. >> not right now. pulte is your entryway into the home builders, but dhi is your contrabet that when the market does turn on interest rates, you'll see this one pop. there's a lot more "fast money" to come. here's what's coming up next.

>> has tesla lost its magnificence? analysts unplugging, as shares hit ten-month lows. but is all the negative ev talk overdone? the electric debate, next. plus, the clock nearing midnight, and tiktok's fate is hanging in the balance. the latest on the bill that could see time run out for the chinese social media app in the u.s. you're watching "fast money," live from the nasdaq market site in times square. we're back right after this. 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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welcome back to "fast money." u.s. steel falling over 12% today in a report that president biden will raise serious concerns over nippon steel's plans to buy the company. those comments expected to come ahead of a state visit with japan's prime minister. the white house declined comment on this report, but said previously the takeover deal warrants, quote, serious scrutiny. u.s. steel shares notching its worst day since 2020. if not nippon, then who, steve? >> nobody. it's not going to be anybody. or it will be a u.s. conglomerate or something else on that front. this was a -- would have been a political disaster for him, so,

he had to come out against it. united steelworkers were totally against this deal. this would have done a horrific job for employment, so, this was a headwind that he had to change stance on. >> i think it was a deal that he had to talk about, but i think it's crazy that he's talking about it. i mean, there's no overlap. there's no excess, there's no extreme concentration. >> but it's a foreign country. it's another country, tim. >> it's not a chinese steel company. this is japan. they're our friends. there is no other buyer for u.s. steel, by the way. >> right. that's the thing. >> i think it gets done. >> look, i would just say, we talk to investors a lot about what the post-covid era looks like. deglobalization. we are not necessarily going to want to do business with you. i think this is a function, or something we're going to see a lot more of going forward, over the coming years. >> so, what happens to u.s. steel? nobody wants to buy them. if nippon has to walk away -- >> it sifts back down to -- what was this, in july when this was

announced, i forget. i don't know -- >> december. >> it was december -- >> december? >> that's right, because -- >> anyway. i mean, they waited a long time, number one. number two, to tim's point, i mean, maybe u.s. steel should run themselves a little better and you wouldn't have people coming in. it's like that thing, remember the parody of wall street when you said why do i want to wreck this company, because it's wreckable. >> that was a great line. >> i really -- >> academy award work. >> if there was an academy award for spoofs for movies done on national tv, cable, that would have won. >> that's on youtube. you ccan check that out. >> put it in the show notes. >> run your company better and we would haven't that conversation. it's really that simple. you can xet can get exercised a want. >> it's a good time to bring up copper. fundamentals are very different than for steel companies. and i don't think steel fundamentals are great. i do think that if you look at copper going over four bucks a pound, that's a metal that i

think is at some point in deficit. there's been a total lack of investment and refurbishment and cap x and op-x in copper mines around the world. dollar goes lower, fed goes lower, a lot of this stuff will go higher. >> carter braxton worth said, if you are not long on copper, be long, if you are long, get longer. yeah. >> this is something that's obviously supply/demand and copper is in shorter supply, but they're also pulling from them for evs, renewables, turbines, so, this is in a sweet spot, but i think a lot of this, whether it's gold or whether it's copper, i think a lot of it has to do with the u.s. dollar. u.s. dollar weakens, we start to cut rates and that's on the horizon, all of these things that are priced in dollars go higher. >> china's going to cut production at some of its smelters, so, that obviously -- you take some metal off the market and cause prices to go up. but this was actually your final trade last night. >> that was blind luck.

i understand they get labeled as commodities. i think copper is a true commodity. there is a problem -- you talk to some people, three, four years from now, there's a concern, where are we going to get the copper we need? it's all the things he mentioned. so, freefort, which has been awful, it's this close. you get a close above 40, this is a stock like the gold miners that can really play catchup. >> one last thing. i hate to jump in here -- >> you just did. >> chile has 21% of the global copper reserves. i did not know that until tonight. >> did you just google it? >> it's all in latin america. >> earlier. >> chile and peru and freeport's had a lot of big run-ins down there. copper is in all the places where you've got volatile dynamics on the local front. >> yeah. is it still dr. copper, lori? >> i think people still think it is, and you can just put this on the list of a few different things that are getting people more excited about the macro and the u.s. economy and the global

economy right now. coming up, a bill that could ban tiktok in the app making its way to the senate. does have it any chance of passing? gene munster joins us next to explain how bytedance could get in the way. more on that, when "fast money" returns. missed a moment of "fast?" catch us any time on the go. follow the "fast money" podcast. we're back right after this. from pep in their step to shine in their coats,

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welcome back to "fast money." stocks mixed to close out the day. the dow on a three-day winning streak. the nasdaq down half a percent. all three averages on pace for a strong week. some stocks hitting all-time highs. marriott, o'reilly, chipotle, ulta, and jpmorgan trading higher. and it's jamie dimon's birthday today. >> oh, so that's where karen is today. >> he's watching. >> of those stocks, which do you like? marriott, o'reilly -- >> i continue to like what's going on in the banking sector, and i think if you look at the

relative underperformance for a couple years, can you make an argument that banks are in a good place. we've not seen -- credit spreads are at all-time tights, it's a backdrop that's interesting for banks, especially the money center banks that we know are also doing better in this higher rate environment. there's a better spread on where they're issuing loans and able to do some commercial. that's been the part of the business we want to see what's really happening there. i'm long citi. i'm long bank of america. i have a little position in jpm. and i think they're going higher. >> how are you feeling about banks? >> so, we're overweight. and sometimes we feel good about that, sometimes we don't. we were at our financials conference last week for rbc, and the tone was very strong. it really -- it really sounds like we're sort of not in the sweet spot necessarily, but something pretty darn close. i think you have good valuations. and i think the rotation in the market out of the former mag seven, i don't know if we can call them that anymore, but i think that's starting up, and if

that rotation is really going to have some legs, the financials have to participate. >> right. >> well, you know where i'm going here. i mean, you mentioned it, so, i'm going to mention it. cmg continues -- i'm not even kidding around. the stock is unbelievable. i mean, it really just continues to do the grind. people look at -- first of all, it is expensive on valuation. i think why people think it's more expensive, because a $2,700 stock, and they have sticker shock. but at some point, they're going to split this thing. they continue to grow in the valuation. stay with it. >> always out of ingredients in my neighborhood. >> don't go at 11:00. >> if the door is open, have the chicken and have the, you know, have the -- >> what are you looking for they're out of all the time? >> just close the doors, all right? i don't know what they're thinking. frustrating. >> i think guy's right. chipotle is going to split the stock, i think that's going to bring a lot of new investors in. there's that international expansion. i think they're doing a really great job at running efficiently. switch back to financials, jpmorgan is the only bet to go. if you have a regional, you're

just worried about the size of the bank, regulation coming down the pike. jpmorgan's outperformed. you ride it until jamie dimon is no longer there. the house today passing a bill that could lead to a ban to tiktok in the u.s. passed by a resounding vote. the bill would force chinese parent bytedance to die vest. former president trump expressed concerns about a potential ban. take a listen. >> a lot of people on tiktok that love it. there are a lot of young kids on tiktok who -- who will go crazy without it. there are a lot of users, there's, you know, a lot of good, and there's a lot of bad with tiktok. but the thing i don't like is that without tiktok, you could make facebook bigger. >> our next guest says tiktok's loss could, indeed, lead to gains for meta. "fast money" friend gene munster joins us now.

is what donald trump saying true? >> well , it will be a gain. tiktok has 170 million daily active users. remember, there's about 340 or so million people in the u.s. 170 for tiktok. instagram -- met a is at 180 million. so, consider them comparable. the kicker here is that tiktok has average time spent is about 70 minutes a day, and it's about 40 for instagram. so, when you put those two together, the simple equation is that the time spent daily in the u.s. on tiktok is about 65% greater than what is spent on instagram. of course, reels plays into that. and so, this is an opportunity. if this was going to get shut down and meta was going to capture half of their business, that would increase meta's overall business by 5%. that's for half of it. and potentially could monetize that even greater, so, this is a

big opportunity for meta, a measurable opportunity, i should say. much smaller than the a.i. opportunity, of course, but it is a measurable opportunity. >> so, gene, is it only a measurable if bytedance is not able to divest and actually sell tiktok? i'm wondering, because if there's a ban, i see it's a gain for meta, but if they are operating separately from bytedance, it still exists. so, how would meta or facebook gain specifically if tiktok is still operational? >> that is the -- the critical piece here, of course, and if you look at -- there's basically three potential outcomes. one is nothing happens. i put that at about 50%. then potential of a sale, that's probably 25%. and a ban is the remaining 25%. so, melissa, you are correct that in the -- if you weight all of these outcomes, call it a 75%

chance that it's effectively a nonevent for meta. so, i think this is something that meta investors, this is one of our core holdings in our titan fund. we're watching this closely, but when you put the odds together, it's essentially optionality, related to regulation. and i would just say this, related to the optionality piece, it is remarkable that number, those votes, 350 to -- not quite the right numbers there, but it almost reads like a typo. it's -- in today's political environment, so -- this is something that is still worth the time for meta investors to follow. >> it is worth noting that in terms of republicans, they didn't really fall in line with donald trump, who is now the presumptive nominee. they voted 189-16 for this, so -- i mean, the bipartisan support of this whole thing is really underscored by even looking within the vote itself. >> yeah, if i may, melissa, there may be a chance where nothing changes and this all

remains the same, if you look at who the president is, but -- i want to be clear that tiktok should be banned. this isn't my commentary related to where teens are spending their time, this -- there are -- i think what they do, their ability to influence opinion is remarkable. and i think that this is what we're seeing in this, probably a historic vote in this environment, and the bipartisanship, and so, i hope something happens here, and if it does, it would be good for meta. >> well, and certainly it is when you think of the ownership here and where this data is going back to, and i agree with that, but talk about a typo. meta seems to stand out in any, you know, company north of $50 billion, let alone the ones north of $500 billion in terms of its price to earnings growth. what is your peg ratio on this? this is an extraordinary value in the middle of a market that people are claiming, actually, has no value.

>> i totally agree. this is one of our core holdings, and at the end of the day, we're optimistic about what a.i., how that's going to impact their business. it's a well traveled line. let's talk about a.i., but in this case, they've had a resurgence in their business that has not been largely related to a.i. they're spending a lot on that. don't forget about lama. lama 3 comes out this summer, the largest on source foundation model. that is a big opportunity. eventually, they're going to find ways to monetize that. they could come up with an aws service down the road, but zuckerberg is going to build this to a billion plus users, they're at 100 million right now. and when you put all those together, tim, it really sets up for, despite the incredible move that this has had -- if you believe in a.i., which deepwater, we're firm believers, this is going to be a three-year bull market culminating in a bubble, meta should continue to perform well. >> gene, great to have you. thank you. >> thank you. >> gene munster. is there a trade around this,

guy, or is it just even knowing if there is a trump presidency, that he has a target on meta's back. >> that was going to be my question to gene, he just said that they're the -- i'm paraphrasing, i'm sure, enemy of the people -- you have to say that if then he's elected president again, what happens to facebook? that's the risk. but i would push back and say, what's the retaliation, if any, from the chinese government? we start banning or having people make divest sures, that would be my concern. >> both parties hate meta. both parties hate that organization, so, i don't know -- >> they hate the chinese more. >> they hate the chinese more, but it's still a bipartisan issue. when you look at snapchat, i thought snapchat, though it ran up into the actual news, i thought it should have run a little further. so, snapchat's action the s telling me that either senate is not going to be able to pass it, or just pass it in makesake only, there's going to be really no bite to it at all, and this is just going to be a divest

sure and play by the same rules anyway. >> a fun taste of the politics to come, lori. >> i think so. i was going to mention on the a.i. politicsagele, there was a throwaway line in the state of the union, where biden talked about the need to regulate a.i. going forward. so, i wonder, as we start to see this mag seven bucket take some more hits, are the politics going to be just a catalyst, you know, to cause some of this rotation? coming up, check out the energy stocks ripping to new all-time highs. diamondback, phillips 66, just a few of the names rallying higher. plus, tesla tumbling. how far wells fargo sees the ev maker dropping from here, when "fast money" returns. 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.

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- [announcer] call right now to receive your free no-obligation info kit. call the number on your screen. welcome back to "fast money." energy stocks rocketing higher today, many to record highs. valero, marathon, phillips 66 trading at levels not seen since their debuts, and energy was the leading sector in the s and p today. the xle up 1.6% for its sixth positive session in the last seven. you were talking about this on the call today. >> you're starting to see a breakout, and you're starting to see the new yorenergy companies

were punished, and they were held hostage by the macro oil price, which has been basing and rallying 15%. i'll single out chevron, i'm long it, it would be getting clients into it now, because i think the dynamic around their free cash flow generation, their debt paydown, is a very different company, again, than it was ten years ago, let alone five. i think you're continuing to see energy as a sector, also see allocation. and at one point, we were close to 5% of the s&p, it's below that, and i think it will build up. >> drawing investors back in? >> i think so. we've seen work suggesting that it's been underowned. there hasn't been a lot of interest from generalists lately. it's still very cheap. i think there's interest in laggards. if you compare to industrials, where the valuations are sky high and the market's rotating, you need to move omewhere, this is one you have to look at. i think you have a good data point last week from biden when he barely talked about energy and climate in the state of the union. and there has beena lot of concern about political risk.

>> plus, this was one of the first declines that we've seen in u.s. stockpiles in crude in the last seven weeks. and then you bring it back to what i said before about comm commodities. if you think the dollar is coming in, the rates should be coming in, the commodity should go up. that's a net beneficiary to the companies we're discussing. coming up, tesla shares slamming the brakes on a big downgrade from wells fargo. why the ev party may be over, and how far tesla could fall, next. easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley

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welcome back. embattles tesla catching a major downgrade in our call of the day. wells fargo cutting the ev maker to its equivalent of sell from a hold and slashing its price target to $125 from $200. tesla shares already down 30% in 2024. wells going on to say the ev maker is no longer magnificent, calling it a growth stock with no growth. which is what many people here on this desk thought for months now. where are you, guy, on tesla at this point? >> i think it continues to go lower. 150 is a recent low, recent, within the last year or so. and everybody will point from that move, from $113 to $300 and

say, unbelievable move, you missed it. and to a large extent, yes. but think about tesla over the last four years, when it was north of $400. >> it's about 60% off its all-time high, in a broader market that's at its all-time high so, tesla's been a horrible stock now. now it's beginning to accelerate to the downside. that recent low of $150 is in the cards. >> yeah, this does feel like it's getting a little bit overdone, where even though you get to that $150 mark, i see the sail same level, as well. there's momentum both up and down, so, maybe you capture at $10 or so to the downside. but i think we're getting a little long winded in the bearish sentiment on tesla. it's been a declining trend line for quite some time. this is almost where it's the rabbit out of the hat, where elon always -- >> what is going to get it out of that sentiment? >> do we all think that crude's going higher or lower? because that's -- >> will that make a difference?

how about the model 2 being a lower margin -- >> energy prices have nothing to do with tesla's demand, though. >> if energy continues to rally, if energy continues to rally, of course has something to do with it. people wind up buying evs based on the price of oil. >> they've been cutting price so much, though, right? >> look, the margins are getting slashed. at one point, i thought they were playing offense, and they still may be, but the reality is, i just think about the momentum of the stock. the analyst community, when someone goes from $200 to $125 when this trend has been on us -- the analyst community is slow on the way up and on the way down. that's going to continue to hurt it. but every other major, you know, call them the oems, the original companies, those charts are fantastic. toyota is breaking out. gm is at a really interesting level at 40 bucks. this is the same level it's largely been after the last four years. but it looks like it wants to break through. it's up 50% since the october

pivot. the fundamentals for the companies that have gotten more into hybrids, go with that trade. up next, final trades. welcome to ameriprise. i'm sam morrison. my brother max recommended you. so, my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors, the garcía's, love working with you. because the advice we give is personalized, -hey, john reese, jr. -how's your father doing? to help reach your goals with confidence. my sister's told me so much about you. that's why it's more than advice worth listening to. it's advice worth talking about. ameriprise financial.

time for the final trade. let's go around the horn. lori? >> financials. they've outperformed in seven of the last eight election years. presidential election years, if you look at the second half. >> great to have you on the desk tonight. tim? >> great to have you. and great to have chevron in your portfolio. if you look at big integrated oil, this is the best run. >> in blicep. >> that's right, yes. >> west rock, up 13% year to date. going higher.

that's a technical term. >> also the c in guy's clam. >> it was. mel was saying last night felt like a playoff game in carolina, tim. >> a lot of ranger fans. >> it was like msg south. >> kind of embarrassing for carolina, by the way. >> transocean. comes out rig. >>nuanyo gthk u for watching "f money." "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 is always more work and i promise to help you find it. mad money starts right now. hey, i'm kramer. we are trying to make you some money, my jobs are to entertain, call one 807 43 cnbc, we are coming here, you better believe you make some mistakes in a highly visible, highly public way.