should pull back that we lack identifiable catalyst except perhaps a china deal i don't know that we're looking for anything in particular right now except for the market's behavior itself. >> and economic data. >> yes, we'll get more of that too, but slowy >> okay. that does it for "closing bell." thanks for watching. >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. tonight we are all after the after-hours action we'll bring you the latest from the conference calls as they get under way. plus, the big, long, legendary investor, danny moses, calling cannabis the investment opportunity of a lifetime. he will be here to tell us why. later, chasing the highs one top technician doubling down on two names that are soaring this year. we will tell you what they are. first, we start with amazon, and not because of the nixed

planned new york city headquarters but because of this chart. check it out, the stock is down more than 5% this month, stuck in no man's land since the first of the year. with retail sales coming in at nearly the worst in a decade is this a broader tell that the consumer is in worse shape than we think >> amazon has guided down revenues two consecutive quarters in a row. this has been growing revenues year over year in 2019 they have been expected to grow at 18% so a massive deceleration here. so this stock is stuck in the middle of this one-year range. really interestingly it's right where it was when the market started to head south in mid-december so when i think about this retail sales number that we saw this morning, all day long all we heard is pundits explaining away we had larry kudlow call a glitch in the data it's just ridiculous to not take that at face value the atlanta fed took it at face value. they are revising q4 gdp down to

1.5%. >> a lot of banks all over the map, though. >> it's important to recognize, when did the government shutdown happen december 27th. when did the market really fall out of bed december 17th to 19th, in that time period. you can call it whatever you want but we hear people say this all the time trade the market that's in front of you you know, that data is pretty impactful. when you think about that this shutdown went into january, i don't know why you expect january data to be much better. >> i think that the retail stocks have already talked about a weak december so this isn't new news it came off the presses late, we get it it's been fully digested a lot of names have reported december numbers and a lot of times they're bad. there's some other idiosyncratic things weighing on amazon. the divorce, that's something. people are concerned okay, half of the bezos' shares, we don't know what's going to happen with them but stepping back further, the chart on this, it's

extraordinary the run that it's had to take a breather for a couple of quarters it wouldn't surprise me at all to see this stagnate here for a while, regardless of whether the consumer is fine or not just because the stock is expensive. >> to be clear, the retail sales number this morning, that printing at 8:30 was terrible. it was an awful number and awful across the board, especially in the things that should be -- the part of the economy that should have gotten the boost from the tax cuts, from wage gains, et cetera very poor. amazon in terms of its positioning against the market, amazon has outperformed the s&p by 4% since the market bottomed on december 24th it's hardly that amazon has not pulled its weight. dan, you're bringing up longer term observations about the economy. it's difficult to argue that the data points aren't getting significantly worse. the u.s. consumer is also -- it's difficult to argue they're not the most important dynamic in the global economy right now. are we worried amazon as a tell right now, amazon is about evaluation and

comps that are very difficult to reach. that's the reason why i think the stock struggles. >> the question whether or not we look through the data and plenty of real economists also set to look through the data there's some questions about the quality of the collection because of the government shutdown there's a question about the mentality of the consumer just because of that stock market sell-off so there are plenty of reasons to maybe say december didn't necessarily represent the true health of the consumer. >> what led up to that printing was obviously all of october, all of november when the market was going sideways to pretty significantly lower. my thesis all along to braioade it out, the consumer spends money when they feel good about things they feel good when the market goes higher. when the market takes a step back is when people take a step back you saw that 100% with certainty the last couple of months. the good news is the market has come ripping back some 15% from

that december 24th low and maybe that's enough to get people spending again i don't know we'll see it in the next rounding of data as long as the market holds in there, i think you'll see consumer confidence come back as well. >> it will be interesting to see if the consumer responds quickly to the upside of the market. >> i wouldn't be surprised to see the consumer come back quickly. when you think about the wealth effect that's been created by the stock market, we've hit a volatile patch and the data will continue to move markets we also know monetary policy is being affected by markets, so that should be the sort of thing that keeps the consumer at bay in my opinion, especially as we head into a seasonally weaker consumer period after what should be a very strong period in q4. >> i don't disagree -- or i agree with a lot of your premise. we may be at peak labor or peak gains. >> in terms of employment and wage gains >> yes, in terms of the absolute level of jobs and where we are

in terms of the unemployment rate we certainly may be at peak consumer confidence. so the most important thing to me is the delta from that. so in absolute terms, we're still in a very solid place for this economy i realize markets tend to price this in ahead of the game, but to see the choppiness of that retail sales number and the reality markets have gone through volatility that's been driven by the fed as much as anything else, it's hard for me to see that this stuff is going straight downhill in this country. it's not going to happen overnight. >> also remember, in january the market was down a lot but the shutdown was taking hold so for most of january, there was a shutdown. >> so that means the sales data could be depressed again isn't january. >> but in a one-off sort of way. what i'm saying is we don't get true data until we're through seeing that data from the shutdown, from the market down, then up. >> you said we got some good reads about the u.s. consumer through retail earnings. we haven't got the bulk of them. back to mid-november this is

before we get to black friday. we saw horrible numbers out of target, we saw bad numbers out of walmart we saw bad numbers out of home depot or bad relative to expectations so that was already working itself in in november and december look at what we just saw out of macy's, jwm, nordstrom's, the department stores are a disaster. >> and traded down on that news already. literally report december numbers for -- literally told you december was bad. >> we've talked about for years that competing with amazon, all the costs associated with going into in omni channel strategy to compete is going to be hard. what happened to amazon is that their costs are going up as their revenue is decelerating. now they actually have to grow into this omni-channel strategy. they bought whole foods. >> they're in spending mode also. >> i thought we were complaining about the top line, not the bottom line. they had a record quarter. >> fine, record quarter. last two years sales have grown 31%.

they're expected to grow 18% the next two years at a time when expenses are going up. so competition is going to get fiercer for them so i'm just saying that's why the stock has stalled. that's why it's stalled. it's pretty simple >> look, i don't have an argument against amazon's valuation is difficult, it's not the same operating environment that it was a year ago my pushback is simply to say, a lot of stuff has been priced into these stories the department stores have issues secular to what they do >> i guess has the market priced in this if you extrapolated the slowdown, even a degree of what we saw in december to january and february because of the uncertainties we face right now which will contaminate this data coming, have we priced that in yet? >> has the stock market priced that in? >> right >> you know what, i don't think it has, quite frankly. given the move we've seen from december 24th to where we are today, no. i'll say this, for the last -- until yesterday and today, if

you look at the last 20 or so trading days, the last hour of the day the market has been basically rallying almost every single day yesterday the market sold off in the last hour of the day and you saw obviously what happened in the last hour of the day today it's not a big deal for two days but it's absolutely something to watch. >> what does that mean >> i think the market maybe changed again. it went to now we're seeing closes where the market fades. we haven't seen that in a long time. >> foot locker is back to a multiple it hasn't been at for a while and a lot of news is priced in there. our next guest says the rally is showing signs of slowing. let's go off the charts with todd gordon of trading analysis.com. >> let's take a look at the s&p 500. the first thing i'll tell you is we are coming up in resistance i'm net long in both of the accounts that i trade. i'm going to be looking to lighten up for four reasons. number one, on this s&p daily is

we have the 200-day moving average and that's defined this market for a long period of time that's number one. the second reason is we have kind of a triple top between 2800, 2820 and spx here we go for a fourth time the third reason is some of that if you look at the two-thirds to three-quarters retracement, it comes right in this zone we're right at a round number, 2800 there's so much highly visible cafeteria technicals here, i'm kind of worried that it's going to be like st. patrick's day and new year's, kind of amateur hour anybody who read a technical book will be coming out of the woodwork i think it's going to be dangerous and choppy i'm going to beexiting longs and starting to nibble on the short side i think it's going to be treacherous because there's so much we can see between 2800 and 2860 so that being said, i will hold some stocks. i hold a full position in nike i just love the look of this great chart, well above the

200-day moving average where we just showed the s&p is struggling at that 200 day we've got a beautiful breakout here, $85, $90 i continue to hold this, a nice yield on nike. i will hold this in the event i'm wrong on my 2800 to 2850 call on nike another thing i'd like to get a little bit more overweight is starbucks. you could say we've had a huge run, starbucks has come too far too fast however, this is the daily chart. let's go back to the weekly and look at this four-year base that starbucks just broke from. we came from the 2008 low and went into massive consolidation, 2015, here we are '19, finally breaking out when you say, todd, that daily chart has gone too far too fast, i don't know when you put it in that context again, we have a nice breakout happening in starbucks with confirmation that the market wants to go higher i will look to add more starbucks as well. >> did you say 2800 was the danger zone, todd?

>> 2800 to 2850 is a combination of those four things, yeah it's a huge zone a lot of things in there two things from the market internals. you've got volume decreasing but we've got really strong breadth. a lot of people were complaining about advance decliners not participating on the rally up during that september high we have really strong advance decline. this is a broad-based rally with the exception of tech. technology is starting to so a little bit more hesitant over the last week. apple in particular is one i'll be looking to lighten up. >> todd, thank you todd gordon of tradinganalysis.com. >> that's the kenny rogers danger zone. >> on behalf of you guys who seem to quote that often. >> guy, anything you want to add? >> listen, you know my view on "top gun." it's one of the top five movies of all time. tim of course would be the tom cruise character. >> and you'd be? >> probably like goose >> so what's on your mind? >> we're going to move on. we're going back above the hard

deck here for a second here's one area i mean if you're just tuning in right now, you're not going to be surprised by that, but the bank stocks. so if you're waiting for something to happen, waiting for the s&p to get back to 2800. the underperformance of the major banks is a real problem. as long as i've been doing this, i've never seen a market make a substantial move back to a prior high without the participation of the banks. >> i would go back below the hard deck and talk about starbucks and nike those are both names i'm long, both trading at multiples that are very different they're both companies that are extremely levered to china or perception of china and they seem to be going to fresh all-time highs you tell me. u.s. athletic or footwear has been impervious to what's going on there's no nationalism in china against nike and starbucks who was talking about china being the land of -- their new consumer is doing just fine without it. so again, i think the companies that are executing are the ones that will continue to execute. >> he likes both

so would you rather? >> starbucks, i'll tell you why. $65 it ran up against in 2016. now at least it gives you something to trade against i think that's todd's point. i think you long starbucks against a 65 stop on the downside. coming up, chip stock nvidia ripping after reporting earnings this stock got hammered after a major warning last month. plus canopy growth expected to report earnings any moment. we'll bring you the headlines as they break. wall street is swooning over a handful of beaten-down dow stocks but are they worth your love we are live from times square in new york city. chor"ft ne rht after this

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welcome back to "fast money. " check out shares of cbs falling after reporting earnings let's get to julia boorstin in los angeles with more on the story. >> melissa, cbs shares are lower after missing expectations on the top and bottom line, but acting ceo is focusing the earnings call, which is going on right now, on cbs' direct-to-consumer streaming business >> the heart of this plan has always been the same, creating and distributing premium content with mass appeal on a global scale. what's changing is the way people engage with that content, and it's giving us an opportunity for a better business model this is why a few years ago we

began pivoting to direct-to-consumer >> ianniello announcing cbs has hit 8 million streaming subscribers for all access and showtime he's upping the projections for subscribers by 2022 to 29 million. that's 9 million more than previous projections he said these relationships are more valuable than traditional tv viewers. >> owning the customer relationship is critical, and we are just beginning to achieve what's possible here as we do, it's enhancing the lifetime value of each subscriber who signs up for our services and allowing us for greater efficiency in reacquiring customers who have paused their subscriptions >> the company saying the super bowl set new records for cbs all access in terms of new subscribers and time spent as for tech companies starting to bid for nfl rights, ianiello

is saying he thinks the nfl will want the broad reach that cbs offers, saying he's optimistic they'll renew that deal. 2019 is pacing to be a record year for advertising with increasing demand in the scatter market, last-minute purchases, and they just started talking about the opportunity in gambling on sports so we'll pop back on the call and see what else they say. >> see if they say anything about a permanent ceo. julia boorstin in los angeles with cbs news. >> i'm long cbs so it's a little disappointing. i think for this company it's not about this quarter there's some big mac row issues that need to be resolved here. number one, who's the ceo going to be. i'm sure they're working hard on it the other is are they going to merge with viacom or potentially somebody else. i think that is a put underneath the stock. so i'm a little disappointed on

these earnings it's ticked up a little bit looking at this gambling that's sort of interesting so i'd probably buy more if it trades badly tomorrow. i still think it's not about this quarter, it's about other issues. >> here's a question what if they name a new ceo. does the stock sell off on the notion that naming a new ceo means that it's not likely in play still >> so a new ceo is negative because they're no longer in play. >> why would you take a job if you know the company is going to be sold? >> because you may run the combined entity, right it's unclear. >> potentially depends on who they bring in. >> i don't know. >> the stock was at 41.50, $42 stock traded up to 50 almost in a straight line. you can understand why they're selling the stock off on the back of this quarter eps miss, revenue miss in terms of valuation, eight times forward earnings with probably 10.5%, 11% eps growth

is it that damage to a franchise. i don't know how much worse it's going to get i think you buy the weakness. let's get a check on our other earnings movers. nvidia ripping while applied materials dips i'll melissa lee, you're watching "fast money" here on cnbc in the meantime here's what else is coming up on "fast. >> i'm in love, i'm in love, and i don't care who knows it. >> wall street is crushing on a handful of beaten-down dow stocks but are they the right match for your portfolio the traders will weigh in. plus, legendary investor danny moses has a message for all you pot haters out there >> you're throwing away an investment opportunity of a lifetime. >> he'll be hereo pl texain why. much more "fast money" right after this break well, you should definitely see how geico could help you save on homeowners insurance. nice tip. i'll give you two bucks for the chair. two?! that's a victorian antique! all right, how much for the recliner, then?

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this is decision tech. it's screening technology that helps you find a stock based on what's trending or an investing goal. it's real-time insights and information, in your own customized view of the market. it's smarter trading technology, for smarter trading decisions. and it's only from fidelity. open an account with no minimums today. who is this? >> welcome back to "fast money." it is valentine's day and love

is in the air as wall street analysts are crushing on some big stocks dom chu joins us from the newsroom to explain. >> that's right, melissa, love is in the air and analysts love these stocks in the dow jones industrial average maybe love isn't the right word for it i'm not sure what is here's what we've got. these dow stocks have some of the highest upside potential if analysts who cover them have their story right and shares reach those target prices. for example, if shares of chemical company dow dupont hit its analyst target price, those shares could mean 26% upside from current prices or investment banking giant goldman sachs has a target price around 18% higher than shares are currently trading. tech giant microsoft also in that same upside ballpark with an implied upside of 18% health insurer united health group has a target that's 16% higher than now. an then there's integrated oil and gas giant chevron which would rise my 14% if analysts

get their target in the coming months some of these names have higher potential upside because they have underperformed and target prices haven't been revised if they ever do get revised but if these analysts are playing the role of cupid and trying to get investors to fall in love with certain companies, these could be among the love connections, and that's a big if back over to you, melissa. >> happy valentine's day, dom, thank you. so we know wall street analysts love these stocks, but do our traders let's ask in a brand new game that we're unveiling today on valentine's day. it is called love it or loathe it guy, we kick it off with you and the most loved dow stock, dow dupont love it or loathe it >> i figured loathe must be not like because it's the opposite. >> loathe means hate. >> appreciate the heads up so in this case -- >> it's because we love you. >> dow dupont, i loathe dow dupont. >> ooh. >> i love the sound effect >> if you look at the fourth

quarter -- >> that's fantastic. >> go ahead. >> loathe it again go to the triple they reported a pretty miserable fourth quarter they guided lower for the first quarter. jpmorgan comes out, downgrades the stock, as does could you wa. i say numbers have to dm down, loathe it. next up, goldman sachs karen, do you love it or loathe it >> i hate that i love it it's very unpopular. it's a bad boy to love but i do. i still think it's a premiere franchise. i think the valuation reflects a lot of negative. i think also we saw some bad things happen in the fourth quarter for a lot of these names that will reverse in the first quarter, potentially debt

markets. i think at this valuation, how can you not love it? >> easily. the relative underperformance and all the stuff swirling around the story in particular, i just loathe this thing here. >> i think we should put that on a loop i'm sorry to interrupt you go ahead >> we could just run that for dan at all times. >> do you love it or loathe it >> i loathe it i loathe it. i loathe it. thank you. what does a guy have to do to loathe something on a relative basis within the sector i don't love it i think banks are -- i'm not going to change my tune. i think banks are cheap here but if i'm playing, i want money center banks, not investment banks. i think there's a chance that there's still uncertainty about where their business is going. next up, the m in maga, that would be microsoft do you love it or loathe it? >> you know, mel, that's really catching on. i kind of love it and i'll tell you why. this is one of the largest if

not the largest market cap company in the world here's a company that's expected to grow earnings and sales this fiscal year double digits. it does trade at a premium to many of its tech peers or mega cap peers but it could take something very, very stock specific for this to underperform the market. as relative to the market i think this is a place to hide out in tech right now because they are executing on many, many things that they can control the stuff they can't, i'm telling you is going to hit a lot of their other competitors far worse. >> i'm with you. i don't know how much maga is catching on. it might be matching on right there. >> like in this sphere. >> this sphere but he's right, 21 times, 21.5 times forward earnings is expensive. you can pay for that valuation i do think it continues to grind higher here. united health, tim >> i tell you what, i love this one. and for a name that at least is looking like it's been struggling, if you look at the

stock technically at 18 times forward, this is not as expensive as it once was the numbers were a little weak around the margin, but to me this is a case where a company that seems to be right in the middle of a health care change that doesn't seem to take them down and giving capital back to shareholders, that's what i want to see. >> i kinda love it. >> kinda love it >> in the space of anthem, this one is a little more expensive there's a lot to like here. >> like or love? >> love, love. >> let me hear the kiss. all right. one more we have time for one more. chevron, chevron, that's karen's. love it or loathe it >> i kind of loathe it it's much more of a secular -- for that reason, i don't date energy stocks, i guess i loathe it. >> i'll just take the other side just to take the other side. i love more exxonmobil and conoco phillips, but i'll throw a love in here because you throw all three of them and have a little trifecta.

>> i'll love this one with authority. i'll love this one with authority. with a lot of emotion i'm going to love this one because i think it's the best integrated of all that space at a time when the entire space is overrated. so energy shares that we pointed out have been shorted to beat the band i think shef r ron is running tt as efficiently as ever. >> you know how you have chips and salsa, this is a vehicle for this graphic the loathing and the loving. nice job well done. >> chips for the salsa >> coming up, two chip stocks on the move we will bring you latest on those earnings. plus, the big long legendary investor danny moses calling cannabis the investment opportunity of a lifetime. he'lbe he l erto tell us why more "fast money" still ahead. ♪ ♪ exciting, everything that i'm gonna do in my life ♪

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welcome back to "fast money. pot starks canopy growth expected to report later tonight. so what should investors be watching out for tim is reading the canopy tea leaves, the canopy raweed leave. >> if you're focusing just on canada and the valuation in canopy growth, you're wasting your time because there's no sense. the market is probably $6.5 billion, it's a global company it's still mostly a canadian revenue story. if you look at their peers, aurora or aphria, i want to see revenue growth between 80% and

200% i want them north of 200%. in thames of what's going on with production, on some level just a canadian story on the production ramp but i want to see how they continue to grow because this has been sold as a growth stock this is a time to see that hockey stick in both production and revenues finally, i think the most important thing for investors is as it relates to their strategy. their strategy in the u.s. we heard about how they're going to do an industrial hemp processing park in new york state. we know that they bought essentially a science play in the hemp space in ebu in colorado last year this company has global aspirations. they have a partner who is one of the savviest global certainly big alcohol companies. that's the story here. and the story is not how do i try to argue that the growth is going to match the valuation this last quarter, and again it's q3, fiscal for them it's really about the big picture for canopy growth. it's had a massive run so clearly there could be some

disappointment here. >> you're talking about the cbd plays but is there any way that canopy growth for instance could tap into buy a multi-state operator in the united states and expand here? >> sure, absolutely. i think the question is why do they outside of buying straight into licenses, there certainly would be an argument they'd be getting assets i don't think that the combination of both canopy and constellation feels the need they need to go buy a u.s. mi multistate hemp gives them the ability to be anywhere they want to be and then they can back into the rest of -- just water, i promise. >> good thing the cap is on. it could have been disaster. with reefer madness sweeping the nation, our next guest says the cannabis craze it just getting started. you may know danny moses, one of the investors who shorted subprime before the financial crisis a decade ago. now he's calling the cannabis industry the big long.

he joins us now. danny, why is this such a tremendous opportunity when you say it's the big long, do you think it's a more profitable opportunity for you than betting against subprime was? >> i think short can say only go zero, longs can go to infinity i've never seen a sector with the political tailwinds, economic tailwinds and wellness tailwinds this sector has. the interesting thing about the u.s. companies, the multistate operators tim was talking about is there's no debt so the big short was full of overlevered, underregulated businesses these are und-- so you have to k at each company. there are many states in the u.s. bigger than canada alone. so people's first iter ra eerats here but there's many other ways to express the trade. >> just to be clear, they don't have debt because they can't have debt. there's no bank that will lend to them currently. when and if that changes through

the states act or the safe act, what happens at that point how do you start evaluating multistate operators and what their strategies should be to expand >> right now if you look at the names, they're doing private, small debt transaction converts and giving up way too much equity, more than they would want to. so the safe act, which came out of the house subcommittee yesterday would have the provisions in it that would give the green light to allow banks to start lending there's two things banks can do. banks can service these clients and everything from payroll to keeping their cash somewhere, using visa cards or mastercard would be great also the ability to issue debt and i think we've already seen the big wall street banks being advisors to several companies, constellation obviously, scott's miracle grow and very involved in the m & a aspect of it. i think they're looking for an excuse to come into the space. so i think that's an interesting play that people aren't focusing on right now. >> danny, in that regard, so

valuations are going to come down with it ultimately who benefits the most from debt coming into the industry or, more importantly, if you think that's where we're getting to, and i agree with you and we're working on stuff together you have a dynamic where there's certain sectors that will outperform where do you want to be for this phase of development >> i think you want to be in the u.s. multistate operators right now. there are several that are in six states, nine states, 12 states, expanding. it's a chicken and egg because the investors know they have to issue equity, many of these companies, they won't buy the equities so i think if you can find the companies with the best assets out there and look at what the opportunities would be to issue debt instead of equity for growth, i think it's tremendous. the enterprise values are underestimated dramatically. >> we were just showing some of your picks and not a canadian operator was up there. >> correct i just think they're expensive i'm not short them they're difficult to short but i think the u.s. names are much cheaper on a relative

basis. >> there's so much debt money looking to be placed in all kinds of hings, is there a lot of money available to sop that up >> tim knows there's private debt out there the terms that they are getting -- it's great if you want to be the one to lending money. you get warrant coverage, extra stock, options, 15%, 17% that's just the stated rate. the cost of capital is much higher, above 20%. i think the goldmans and morgan stanleys of the world will look for an excuse to do it once they see the green light to do it you'll have a wave of high-yield issuance with real assets and that will be from a valuation perspective a very attractive asset class. >> ing aingn ecosystem around this? are you seeing some really interesting tech plays on this >> yeah, there's so many different facets there's tech companies, delivery like you mentioned, uber apps

for trimmers to go to a field and trim there are so many different aspects. there's guys that came from truecar that are looking to basically apply that type of technology because you can't do traditional advertising obviously in the sector. you can't go on google and do those things so there's a lot of work-arounds but a lot of smart silicon valley people are entering this trade and so it's a real green field right now. >> my quick question would be a lot of great news, we're talking about all the good things. are there any bad things that could happen on a political front, regulation front or is that just a foregone conclusion saying it's going to push forward. >> we had an analyst yesterday that said this is tulip mania 2.0. >> i don't agree with this because i think it's a much more secular trade than cyclical. guy, to answer your questions, there are risks. i have to remember that it's federally illegal still. it's not so much i worry about

my reputation but what could go wrong with the company corporate governance, we've seen a few companies go through an issue with that. if you're a cannabis company and do something improper, you're going to get hammered and you should it's hard enough to find the right companies without having to worry that things are not running well at the top. >> of your entire portfolio, can you give us a sense of what percent is invested in stocks that trade versus private equity investments, vc, et cetera >> it's probably 60% to 70% private equity merida capital i have a lot of investment in that and public markets, there's some great opportunities out there, i think. but it's nice to be in the private market and have much longer duration and not have to worry about what the stocks do every day. i think this is going to be a very great opportunity on the long side and i think i'm really excited to see how it develops. >> danny, we hope you'll come back. >> i'll be happy to. >> danny moses what's your take

>> some of the volatility being taken out again. canopy levels are back to what we saw a few months ago. the stories are real, no question about it. it's just a question of when market participants start to really embrace it. i think that's sooner rather than later. >> i think what you'll see very quickly in the public markets, there's a wall of money chasing hemp, a bunch of deals coming and those will be interesting ways for the public markets to play as danny pointed out, look at the ancillary, look at procurement, logistics. >> packaging. >> packaging we both sit on the board of a company that does a lot of packaging. so bottom line here, look beyond cultivation. you know, look beyond just growing the plant. as danny pointed out, you've got the most sophisticated people in the software world coming up and sitting up right inside and it's a very sophisticated consumer products story that's where it's going. >> dan was talking about the deliveries and i have a question maybe one of you guyscan answer if you're delivering an illegal

substance within a state but it's medical, that's fine? >> why are you pointing at us? >> not you tim and danny, that company could go public, right >> if it's legal within that state. but where could it go public the issues we have is is the nasdaq ready to do that, is the new york stock exchange ready to do that? you've seen a lot of these companies going to canada. these rtos have been good and bad for the industry frankly the bottom line is a lot of people have invested in companies that are just another big listing away from seeing that share price go down 30% because that's the nature of the capital structure. >> yeah, i hear ease works very good in california >> from friends. coming up, shares of nvidia soaring after reporting earnings this stock got hit hard after a warning last month but is the worst behind it? much more "fast money" after this (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game.

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welcome back to "fast money. we've got a news alert on what the smart money is doing with their portfolios leslie pickers in the newsroom. >> i like those air quotes these are from the 13-f filings. we just learned the size of pershing square's stake in hilton about 10.95 million shares worth, about $800 million, at least at the end of thequarter the firm also increased stakes in adp, lowe's and united te

technologies overall fund managers were quite bearish on financials during the fourth quarter st lee cooperman at omega pared back his management in citi. tiger management selling some of their stakes in apollo global. berkshire hathaway sold some of its stake in wells fargo but largely bucked this trend adding to positions in jpmorgan and bank of america as well as u.s. bank corp, bank of new york mellon but these are as of december 31st and may have changed in the six weeks since. >> leslie picker, thank you. karen, what catches your eye >> anything that agrees with me usually catches my eye so i look at buffett, jpmorgan, bank of america. dan is going to take the other side, the loathe --

>> so mel was doing the air quotes she listed a lot of really smart investors who are actually peeling out of bank stocks bank stocks were supposed to be the big beneficiaries of synchronized global growth, of deregulation, of tax cuts heading into 2018. they underperformed all last year and act pretty deadly now to me i think it's interesting that the smart money is peeling off. >> i like to see that it was net sellers in total because of withdrawals or whatever, the market was down and they needed to shrink, i don't know. >> the interesting part about that trade, that really went on in 2017. it wasn't a 2018 trade banks underprmplerformed all ye. >> the optimism was they would continue to perform all year. >> citibank was down 35% in the fourth quarter to those lows that shows the kind of liquidation we're talking about. i think there was undue pressure from some very crowded trades and that's interesting to look at that after -- i'd rather buy someone else's problem than have it be my problem. >> that's fantastic. i care more about tomorrow

than -- or i don't care about yesterday, i care about tomorrow i like that. citibank -- i understand citibank rallied from 50 to 65 and i understand where it came from but if you go back at least a year, ye year, year and a half, to dan's point they haven't traded very well i'm with dan, i think banks go lower. paypal shares sitting at an all-time high, up 13% and options traders are piling into the stock ahead of earnings. mike khouw is in san francisco breaking down the options action in a vest. >> yes, in a vest today. it was interesting, paypal saw well over two times call versus put volume today the most active options were the march 1st weekly 100 strike options that included a purchase of about 2,000 of those calls paying about 30 cents. so a buyer is expecting paypal to be above that $100 strike price by two weeks from tomorrow of course that would mean an increase of about 6.25% just to

break even but presumably they're looking for a move larger than that by the time these things expire. >> what's your position on paypal >> i'll tell you this, that means stocks that go to 95 usually go 100 when you think about the momentum of a breakout like this, i think you're throwing a dart against the wall to see if it's going to be by march 1st. >> what does that mean >> if you look over time, stocks that go to 9500, most of the time they go to 100. it just made a new high now and is -- >> you said the exact same thing that you said when i asked you -- >> i'm just telling you. >> that's exactly what he meant. >> any stock that gets to 100 had to be at 95. >> as we chew on this, mike, thank you. mike khouw in san francisco. check out options action tomorrow at 5:30 p.m. eastern time guy will make a cameo so check it out. meantime, look at shares of nvidia soaring after reporting earnings we will hear from the c suite in

just a few minutes we are live omhefr t nasdaq in times square much more "fast money" still ahead. we're drowning in information. where in all of this is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you partner with a firm that combines trusted, personal advice with the cutting edge tools and insights to help you not only see your potential, but live it too. morgan stanley. ♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest.

welcome back we've got an earnings alert on nvidia that stock ripping higher in the after-hours session. let's get to josh lipton in san francisco. the conference call is under way. hey, josh. >> melissa, we're hearing from a cfo and she's talking about this q4 revenue drop that we saw driven mostly by the drop in gaming you saw gaming revenue $954 million, down 45%.

among the reasons they talked again about this crypto hangover they saw but exiting q1 they expect channel inventories to be at normal levels. yes, she said it was a challenging quarter in the gaming business but they look forward to putting the channel inventory correction behind us she actually talked about data center 2 they did mention this issue they highlight whed th highlighted when they preannounced in late january that some customers around the world became cautious due to rising economic uncertainty, and so a number of deals didn't close in january but they noted they didn't expect that to continue, so take a listen to what they said >> we believe that it is temporary. the strength of nvidia's accelerated computing platform remains intact we continue to lead the industry for performance in scientific computing and deep learning. >> here's the key here, mel, is the guidance too because when you look ahead to fiscal 2020, what execs are saying is they expect revenue to

be flat to slightly down with growth that is solidly above consensus which was down 7%. melissa, back to you. >> josh, thanks. josh lipton in san francisco dan, you were making a great point with positioning in this aheads of earnings. >> we saw it with apple. they started out with a preannouncement. by the time they got to reporting that quarter, the stock traded higher with more disclosure we saw with activision earlier this week and now see it here. once sentiment gets so bad, the stock had already corrected, sometimes there's nobody left to sell. >> so the question came from 280 whatever, is that at all relevant in any way to your thinking about -- >> i think when you think about some of these gaps when they actually guided down back in november, the stock gapped down 20%, they guided down 20% in revenues when they preannounced, they guided revenues down for this quarter, down twe20%. you get all that sentiment in there on that gap an then people

start thinking about what are they going to say next you just hear their cfo. he's talking about all those headwinds and how they may abate this year. then you say, oh, my goodness, this was one of the biggest market leaders for five years. i'm getting back in, down 47% from the all-time highs. >> the headwinds have abated because january 28th is when they preannounced. the stock traded down to 138 we're basically where we were prejanuary 28th on the guide they basically said exactly in terms of dollars and cents what they said when they preannounced the only thing that's changed is the outlook. if you buy the outlook, you buy the stock. i don't buy the outlook. >> nvidia has underperformed the skers and i think there's more ri he. up next, final trades. are you guys good with brakes? we're ok. just ok? we got a saying here. if the brakes don't stop it, something will. that's not a real saying. it is around here. i wrote it.

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time for the final trade on this valentine's day tim. >> happy valentine's day i think i love this stock -- i know i love this stock earlier united health, best in breed pulled back to an attractive level. >> i sold some footlocker calls against the long take a little love off the table. >> dan. >> last summer/fall i was starting to think maga was a problem for the market now i'm getting a bit more constructive sold the m in maga, microsoft. >> i'd be remiss if i didn't

wish my wife a happy valentine's day and my daughter lily and her roommate, kate, big watchers show the stock is too cheap, cbs, it's too damn cheap. >> that does it for us see you back tomorrow at happy valentine's day, everybody. "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 some money. my job is not just to entertain you, but to educate and teach you. so call me at 1-800-743-cnbc or tweet me at @jimcramer what's the difference between a luxury and a necessity which products are essential you need them no matter ho