>> it's about a month away >> we've been together a long time. >> it's crazy. >> i didn't mean to evoke those memories >> we are out of time, stephanie, thanks for watching, everyone that does it for "closing bell." >> have a good evening fast money begins right now. >> fast money starts right now live from the nasdaq marketsite overlooking times square pete najarian, them seymour, tim nathan and guy adami the pinterest ipo and two major chipmakers and nvidia and applied materials and both stocks shooting higher and we'll bring you the details and tesla coming to a screeching halt neari nearing multi-year lows and we'll tell you just how bad things can get and we start off with the concrete consumer and despite all of the headwinds and trade tariffs and recession

fears nothing has managed to knock down the great american consumer and we saw more of that today and walmart beating earnings estimates and we have the strong housing data and we saw jobless claims continue to fall and retail keeps rallying and is the consumer the backbone of this market how do you play it now, guy? >> you have to ask, melissa, zz top. what's ironic about zz top >> frank beard is the one guy. >> it's 12 years >> when they do this thing when somebody gets something right. >>. >> they're in the control room. >> and i will proceed with the show >> how long have we been doing the show a long time. 12 1/2 years as it turns out and one thing i've learn side you can never bet against the u.s. consumer it doesn't mean i think the consumer is in great shape because quite frankly i don't think the consumer is in great shape. auto loan blink witnessidelinqut

nine-year highs and it manifests itself in one of two ways. they spend money and look at mastercard, visa, all-time highs and we've talked about those forever. as long as the stock market, in my opinion, the ultimate barometer for consumer confidence, as long as the stock market keeps going up, consumers will continue to spend money october and november they stopped on a dime, as long as the stock market continue, the consumer is in great shape. >> look at the stock and it's absolutely horrible and it's down about 20% from the 52-week high and look at home depot, pete >> it closed on the low today, down 8% in the last few weeks and walmart's close was atrocious. good results and they had some stuff in there that they can gap and it closed up 1, 1 1/4% and the retail stocks tell a slightly different story than

the s&p bounced since the monday disaster >>. [ indiscernible >> it's interesting, though, if you take a look at different levels of retail or essentially new retail so if you look at etsy and -- i don't know, ebay, but let's do it because if i look at new age retail and some of these online guys and the i buy etf -- i buy. >> i buy >> and the point is yesterday's retail is not necessarily today's retail and i agree with you looking at the xrt and it's down 13% against the s&p on a relative basis since january and i don't think that's necessarily how you're gauging retail. i don't think that's a good read. >> the numbers are great when i look at walmart, the fact that it was up as much as it was today is probably up more than it should have been and i just look at where it's trading on a p-e right now. they do have some growth and the e-commerce growth was

outstanding, 37% and you look at a lot of different numbers and they were all very strong for them today, but the home depots of the world, let's not forget, this is now the time for them, right? this is christmas in the spring time and that's what it is for home depot and we'll find out what home depot is doing and they're worried about the housing market in some cases and they shouldn't be. one of the things i picked a couple of weeks ago back in december is lennar, and the reason i pitched that one was it looked like the value was there and they've done a great job with acquisitions and they've done everything right and now all of a sudden you see a great upgrade today of another one of the names today and kaybee homes and it's unbelievable how cheap the stocks maintain where they are right now and i still think there's plenty of upside, and throw in the mohawk, for instance why not? why not? trading at 21 times. it's too high of a p-e and the single-digit grower and it's

probably flat forever in a few years once they get to a certain scale with the online growth it's important to look at amazon amazon reported the q-1 and they guided q2 to 18% and that's half of what it was in q2 of 2018 so what i'm saying is -- >> do you think that's competition or are they losing something somewhere else >> no, i think you're wrong on amazon and the fact that their growth is down and there's no arguing that i look at their fulfillment, their logistics and building out a chain that makes them stand out and i don't care what walmart does they're not going to touch amazon in terms of that and therefore this is a company that can turn on profitability >> what did they tell us this week >> i'm not talking about walmart. >> we're talking about competition. one-day cliffry. we saw th these stocks got murdered a few years ago when they started making those investments and now we'll have walmart and amazon

destroying each other on getting things to you within an hour. >> the other twist is the impact of the tariff and we heard walmart and macy's say if there was another round of tariff increases the consumer will feel the impact and prices will have to go up. >> prices going up is code word for inflation and we talked about that a week or so ago and said one of the unintended consequences. >> maybe it's an attack. >> how does the fed distinguish between the two? and isn't that what matters? >> it's a semantics game >> fair enough let's talk about walmart quickly. their margins will get hurt and they're up 3.3 year over year and march has contracted 21 times forward earnings and it's way too expensive and i think tim would agree with this and targets almost half the valuation which reports on may 22 rnd and and it's a better pl. despite the fact that they committed to the e-commerce and

redoing different stores and they put in $7 billion into this project and that's, i think, showing people and i think you will see the traffic going into the targets of the world because of what they're doing and the margins will be better, mel. they're not just focused on grocery the way walmart is at walmart, you're talking 50-plus percent of it and no margin there target's still cheap would you buy it here, pete? i've got to say, brian cornell, you're the man. >> the there are is another side of this. the strange thing about this is this is where the dollar is your friend and it is offsetting a lot of this dynamic and the tariffs and i'm not saying that's what you want and typically, we talk about the strong dollar being a problem for the multinationals and if you looked at the market perform today there was a bifurcation of what was outperforming and

things that felt they were more in control of their destiny whether you look at the emerging and they were down by 150 bits today and it was down and it started the year at 172 and 192. it's not a lack of performance and it absolutely is right, but from 172 to 192. that's not so bad. >> what did you correct me about? >> you said two weeks. >> the market bounced 1% >> so you don't believe in the idea that the rotational market is a good thing. you don't want to see rotation from one side to another >> booking.com and i see expedia down 15% for their highs and they're not even in this rally i see apple which literally, it's not just consumer sensitivity here and what do i see retail sales numbers in china. apple couldn't get their mojo in china until they dramatically reduced prices. >> and witness they corrected it

things started adding up. >> that was the value-added tax. >> no doubt. >> it was about the consumer and -- >> and you focused on the wrong thing still. you guys are talking about walmart. this is the place where people go for staples and this is where they go for the groceries and you'll have less sensitivity there. the consumer discretionary and if i'm looking at the stock market and what the stocks are telling me they're telling me something different. >> if you calm down for a second, this is the same thing we've been talking about for walmart. i agree with you any of the big boxes are good in terms of the consumer cost and all of their growth is coming from groceries and that's a trillion dollar industry as competitive as any part of the retail chain. >> getting back to your comment about inflation. all of this competition is deflation because of the prices and because of competition >> yes a year ago i'd agree with that, but keeping prices down. >> and lay on top of that the

fact that technology is a huge driver and it's extraordinarily deflationary and the trade dispute, whatever you want to call it. it's not ending any time soon, and i've been steadfast. this is may and it started in march of last year and i don't think we're any closer as we were then. i would go so far to say we're farther apart. is it further or farther >> further in distance >> farther away. >> further apart further in the future. >> if you're looking for a way to bet on the consumer there are three names to buy now let's go to ari wald of oppenheimer. >> you have your have and have notes. the equal weighted xrt which puts emphasis on the smaller stocks falls to a multi-year relative low versus the s&p 500.

you want higher named group. i have three names for you, all three rated outperform by fundamental research let's start with the biggest of them all amazon had a decline in the fourth quarter and it based through the first quarter of this year and it is now breaking out to the upside. you can see the 200 day taking a rise or tilt and we see the uptrend and come next year i think we'll talk about new highs for amazon next one, costco interesting about this one came right up into its september 2018 peak >> now there are signs of starting to break higher and that's a buying demand and we see signals like that that add to position and this is where the stock can accelerate higher and good trend going into it and

costco, another attractive stock in that space and finally, ulta beauty, all the. brought this back to 2017 to show that the strength we've had, specifically the march gap higher that broke through multi-iamulti multi-year resistance for ulta former resistance becomes support and we're seeing consolidation well and more importantly, we think the next big move will come to the upside more broadly, ari, is there a predictive nature to how retail stocks do when its to forecasting what the broader markets do >> whether it's offending the small cap areas and what is most important is they participate in relative terms and you can have a very strong market with retail e special le underperforming as long as they participate in absolute terms and they are

holding support. they haven't broken out yet and they're participating. i think the market is buying and ooird li i'd like to see them get going on the small cap side, but as the market can tell, we're okay. >> ari, great to see you ari wald of oppenheimer. pete, what stocks do you like? >> i like costco i'm look at that p-e trade somewhere around 30. it seems high for me right now this has been a great run and i look at a name not on that list, like a lulu. i absolutely love the company and it's up in an area where i'm starting to look at the p-e and saying maybe it's too much too fast >> i like costco a lot and i like what they're doing and some of the growth strategies and they've got where everybody is paying for a year, but 30 times p-e makes them vulnerable. >>

cost deon a very day amazon 2025 and august 27 in last year's high ulta beauty at the end of this month, and it sounds, pensive. i agree 40% this year and not underperforming. >> coming up, pinterest getting slammed and applied materials and nvidia and the top chip analyst will be here to tell us the best buy tesla, the stock getting cut from analysts this month and we'll tell you why they're getting a sudden u-turn and tim here is stepping up to the plate with a stock showing signs of life you are live from new york city. much more "fast money" right after this

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here'sshow me making it. like. oh! i got one. the best of amy poehler. amy, maybe we could use the voice remote to search for something that you're not in. show me parks and rec. from netflix to prime video to live tv, xfinity lets you find your favorites with the emmy award-winning x1 voice remote. show me the best of amy poehler, again. this time around... now that's simple, easy, awesome. experience the entertainment you love on x1. access netflix, prime video, youtube and more, all with the sound of your voice. click, call or visit a store today. welcome back to "fast money" tesla shares are lower after t. rowe price unloaded in an sec filing the rest of wall street making a u-turn on tesla and it was hit with 12 price targets this month alone and we're only half way through, rbc capital and cowen

slowed. >> it could get worse. danny was out there and he was a longtime bull and he said look, we're not seeing the same type of demands and the guidance seems aggressive and there are all kinds of things and 80% of that taken off by t. rowe price and that's an ominous thing that people are jumping off ship and we haven't seen that type of thing at tesla before. so i would be nervous and i don't know why we can't test something closer to 200. >> the kicker is the t. rowe price reduction is they cut their position dramatically. there's an 80% reduction of a massively reduced site by 50%. >> they've been selling on average 83,000 shares a day for the last six months. someone got smart there and understood that this is a story that doesn't have growth and a major corporate governance issues and oh, and by the way,

right, if you talk about demand and i know that may be the different issue here and leaving all that aside and it's interesting to me that the price action of the stock is very different now that we have essentially a retail base and you've lost the three biggest institutional investors and don't forget saudi arabia which cut their position and fidelity and you see a dynamic that for a while the stock was not responding to fundamentals and you talk about guidance and do you expect 90 to 100,000 deliveries in the second quarter and i think that is incredibly off the mark. >> when i was a kid i used to watch game shows >> that was a long time ago. >>. >> one of my favorites was "press your luck," no whammies, remember that one? >> tim seymour has been pressing his short on the stock extraordinarily successful leigh. well done. >>. >> funny you should ask.

>> no whammies, you're out it comes in the form of 175 to 180 which was the low in november 2016 to pete's earlier point. >> you guys have to calm down here and i want to tell my friend, the wall street cynic to chill out here because i have to say one thing. the sentiment has never been worse in the stock >> there are ten buys, 11 holds and the interest is as high as it's been and 30% and feels like what would we call it now? a coiled spring. just like trees don't grow to the sky. >> it's catching fundamentals. >> tim, just calm down >> i just -- not me tonight. i think you're looking in the mirror, pal. >> everybody had a turn. it's dan's turn now. >> the short interest is high and the sentiment is atrocious and catching the fundamentals and it doesn't seem like the stock is trading deliveries for some time and i would just say

be very careful crossing the short right here. >> for more on tesla, go to tradingnation.cnbc.com i'm melissa lee and you're watching cnbc. here's what else is coming up on "fast. >> uber is picking up speed after a rough debut, and now there's a new way to trade the stock that can send shares into overdrive. we'll explain. plus tim seymour is stepping up to the plate to pitch one health care stock that's outperforming the rest of the sector he'll explain why he thinks the stock will stay on top when he gives us his fast tcpih. there's much more "fast money" after this

♪ welcome back to "fast

money," check out shares of nvidia and applied materials in after-hours action let's go to seema modi >> strong guidance from applied materials and stabilization in pricing is enough to give a lift to shares which are up about 6% in after hours the company said that the semiconductor industry while five years ago smartphones drove the majority of semiconductor capital investments and that is quickly changing with a.i. and the big data era becoming quick drivers and the company is betting on a pickup in growth in the back half of the year in a more favorable environment in 2020 still, the company's cfo daniel durham reductant to call this a bottom >> in q2 it delivered solid financial results in a challenging environment. wh while we're still not ready to call the bottom of the cycle, our industry thesis is very much intact new demand drivers are taking shape. >> on the topic of china, when

it comes to china domestic spending, the company says we're in a great position and expect we're going to maintain a very strong share position in china speaking of chips, applied materials is not the only company reporting numbers and nvidia also reported better-than-expected results and shares are up by 7% and that conference call is about to start. melissa, for now, back to you. >> thanks very much, seema modi. >> i think amat is pretty interesting because they make the equipment that makes chip, and i think that that commentary seemed pretty good and it traded 11 times next year's earnings and they sound cautiously optimistic and that's the tone that you want to hear especially when one of the customers like intel sounded so horrible and to me it seemed like it was likely to have legs here. >> some of the concerns that we heard to your point, i was pretty worried about this going to nvidia and amat and the very

calm sound of what amat said was, hey, look, we're not calling a bottom and things seemed to be improving and there will be new areas of demand and those are pretty positive things and because of that and the inexpensiveness of the stock and amat's space i don't know why you wouldn't want to own them here nvidia looks like it was caught in the downdraft and the semis delivering on gpu revenue and the pc touring demand is very much there and this is even without crypto and that was the big reason the stock fell under pressure and their core business is alive and well. >> you saw the margins hang in there which is very important and 11 1/2 times forward earnings and they're extraordinarily important and the fact that the third quarter wasn't a disaster. they sort of tweaked it higher and i think it's really good and it's $44.50, being that this was a $63 stock in marcher so and despite the fact that it rallied

significantly it's to the upside >> the most important thing that happened in chips today is the reaction to some of the names that have exposure to huawei you saw xilinx down 7% and the stock has been killed and you made a great call back with 89 bucks. >> and it's easy to see if these stocks can bounce back with nvidia and amat tomorrow and it was a one-day blip >> for more of a breakdown into nvidia earnings, equity research at rbc capital wach, mitch. great to have you with us. >> thanks for having me. >> are you comfortable saying the worst is over for nvidia >> i would say the worst is over of the data center side and i think the expectations for gaming were too low. people expected units to be down in addition to the aspd crease and the crypto currency revenues were in january. so i think we're coming off a

bottom on the data center side and i was shocked by the data center number and i thought it would be around 500 million and the fact that amat is saying that the data center is the bigger portion and they're kind of giving you the wink-wink, nod-nod in the back half. >> i won't say guidance, but what they said about not being willing to call the bottom right now of the semiconductor equipment cycle and it sounded like they see sort of the end in sight and see the light at the end of the tunnel and how do you drive that without the data points that we've seen in this sector >> when you say not calling the bottom it's a fundamentals number and it will bottom somewhere on q3 and that's been the call in the beginning of the year and the stock bottomed back in january and if you're saying it will bottom some time in the end of the year people are not going to do the math ask try to

time it out for the extra quarter. i think the most important thing that came up in that call is the fact that 2020 is probably up and now your eps number for 2020 becomes the risk assuming that q4 comes in and it is now down dramatically year over year. >> does that make you more bullish on certain other semiconductor stocks within the coverage universe? >> it makes you double down in the beginning of the year and i'm doubling down in amd people don't understand that from that perspective because people have looked at performance per chip and the key metric is performance per watt and that's why nvidia saw the data center go up and it uses power consumption and the reason it's useful is it does better with calculations per watt and if you were to bea high-end intel server and your cost when you are using electricity and you're spending $45 or more on electricity with the total

server cost is 10 million and you can give it away for free and people will still choose amd. >> mitch, quick question for you. pete najarian. was that the right move? did they overpay how do you pefeel about that acquisition? >> i feel like it was a little bit of a defensive move, but it wasn't a move that they did, and they damaged the core business and essentially by getting m mellaknox, it was only nine pages and they came in and topped intel's bid and they pushed it out of the data center even more and they will highlight the fact that the intel business if was in decline. i think it was a good acquisition and i don't think it was a game changer and they will add 27 cents in eps in 2020 and it was more of an add-on >> synopsis and earnings on the 22nd 25 times forward earnings and huge move already and do you

stay with that name? it's one of your top picks, i believe. >> it is our top pick. people get drawn into the whole a.i., and 5g and throw in every buzz word you can and what people don't realize is you can't make a single chip without synopsis and cadence and i think that will be a lot higher and i think you'll see double digits and i think you will see numbers higher and if they want the buzz words without the risk of having to choose the winner and they'll be investing into synopsis and cadence. >> mitch steves of rbc capital you like intel. >> i like intel. intel has found themselves very much in data center and very much in areas that are commoditized >> if you look at smh and roughly 107 is an extreme to where the market is, and the higher beta and this is all about trade war and all about the obvious choice which is

let's sell that's most connected to china >> and the etf and the semiconductor group and it is up 2% as of today's close from the monday's lows and let's see if nvidia can hold the gains in the after market and let's see if they catch a bid if they don't you know the answer to where semiconductors are. we'll hear from the ceo and speak of new ipos, check out uber, nearly tripping from the ipo and a new way to trade the stock could put it on the route higher those details when "fast money" returns.

welcome back to "fast money. we have an earnings alert on pinterest following the earnings report aditi roy in san francisco with the latest hi, melissa. shares are down 15% after hours after a big earnings miss after being up as much as 8% below the close. analysts were looking very closely at the number of users and the company reported 291 million month's active users and that's up 22% year over year however, that's a slower rate of growth than the 37% in 2017 and in '18 those refer to global users. if you're looking at the u.s.-only monthly active users grew only 6% per year and the

average monthly user was up 26% year over year and analysts were also looking for international growth and if you break down revenue and top line growth internationally was 107% versus u.s. growth which was 51% year over year. investors also looking for any color on the company's path to monetization ben silvermbermann addressed thm during the call. >> diversifying the advertiser base we've doubled the international markets where we serve ads and we streamlined abilities to upload catalogs to pinterest and we've made video available for all advertising objectives. >> upon an analyst question the company added what advertisers said they liked about the platform is the opportunity to find new customers and we'll have much more on pinterest on "mad money," ceo ben silbermann will be on "mad money" tomorrow

night. >> thanks very much, aditi roy >> i learned something very shocking this afternoon in the green room before the show and that is that pete actually put on a trade on pinterest. >> did i on may 8th they had unusual option activity on there they were wrong. had i taken some before the run into tonight's earnings, but because i didn't and i was waiting for the earnings it's absolutely going to go to zero that being said all i'm hearing on the call sounds to me pretty negative i mean, the growth rate slowing and that's a pretty massive drop, actually there are a lot of different concerns for pinterest i would stay away for now. i think they've got to prove it to us now that they can grow that user base much faster and the u.s. losses, that's the part that's very concerning and only growing at 6%? that's pretty pathetic should we go to you or will you have the same reaction as you had to etsy? >> i had a trigger >> tim said etsy >> pinterest as new retail and

you know, one of the things that we were talking about going back last month to google, one of the things that's really hurting some of google's advertising growth is amazon people are going there and they've starting to search i think pinterest is a very unique property for the very reasons that you're talking about. if you're telling me that monthly active users are declining, we've seen it in snap and seen it in twitter and it's a very tough slate and toughwa to go to nail it the good thing is the stock was up 50% from its ipo at $18 and to me it probably bangs around between somewhere in the 20s >> i just think the monetization is the biggest issue right now it's not about that we don't see a company making money and when are they going to tell us what the margins can look like in the future when we get to their 16 billion company in the progress. i don't think you need to touch it either. >> from an earnings debut to an options debut and uber options

trading for the first time today. >> an interesting action today and 56,000 options and there was one trade that kind of caught my eye on the first day obviously, there's been a high-profile deal. the stock was trading at 42.40 earlier in the day and there was a buyer that appeared to be 7500 of the january 2021 25 strike puts paying $2.85. obviously, in almost 19 months those break even if they're a purchase down 50% or so, and oit's really hard to gauge without knowing who is doing it i look at that on the first day of options trading after the day is volatile and disappointing and maybe that's an early investor who is locked up for a bit just looking to have some protection at a price very elongated. >> for more options action check out the show tomorrow at 5:30

eastern time health care is the worst performing sector and showing signs of life of late. pete and guy have been all over the move and they're helping tim over there at the plasma pitch his own health care stock and find out the name he's watching when "fast money" returns. ♪ ♪ free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪

welcome back to "fast money. health care showing signs of life and following the market higher and the sector still the worst performing sector up only 2% year to date, but back in april, one healthcare name that he said was about to break out united health. >> we get it's a great company we get it's a great valuation and we get that earnings aren't disrupted and as a matter of fact, they guided slightly higher for the next quarter and the market doesn't seem to care. you add all of that up and i think the rhetoric goes away >> what were you wearing >> the shirt was a disaster! >> you lost a bet! >> that shirt was terrible, but the pitch, united health soared 11%. >> you did and you say to yourself, 11% is it over? >> is that what you say to

yourself >> one of these days or last week citibank said we'll raise and we'll make it a buy instead of neutral and all of a sudden you don't hear what's the guy's name from vermont talking about medicare bernie sanders all of a sudden all of the noise is gone which means these stocks should continue to move higher and not gravitate, levitate. >> did you get rid of the shirt? >> no. >> i'm going to wear it tomorrow >> credit suisse named it a top pick in the pipeline and that was something pete here pointed out in his fast pitch back in january. >> now there's not a lot of growth in revenue right now. you look at earnings and all of the rest of that, but when you look at the pipeline and you see druggings in the pipeline by 2022 that will likely make it to market, at least they think so, 19 of them are in the blockbuster category that really says a lot to me >> pfizer's actually down 2% since that call, but pete given the predictions --

>> i still like it going forward. from a valuation standpoint pfizer looks great and it would give you great dividend deal right now, but it's all about the pipeline it's had a great 2018 and it's been sluggish so far this year i anticipate that and i still think the stock goes higher and i'll wait because i'm patient with pfizer. >> with both pete and guy betting on a healthcare recovery, tim had to join in with a healthcare heavy hitter of his own and he's stepping up to the plate >> i am stepping up to the plate and johnson a& johnson is a $36 billion company underperforming the sector and that's a function of the top that had a pharma play that's the part that, to me, will be trading somewhere north of 6% in terms of the kicker top-line growth relative to their peer group and that's the best growth you have in the sector immune ol ye and oncology and these are the places where the pipeline are very, very full and that's a company that on valuation in pharma which is

probably trading at 13 times, when you value j & j you have a blended multiple medical devices which is a core part of their business is showing life and is back of the dead and you're not going to see top-line growth and 60 to 80 basis points for a business that's con trootracting at some point. the baby powder scare and the talc story two days ago, they reity raided that their talc is safe and this is something where if you want to trade the stock back from 148 is where they were when the scare went through. if i look at the chart on the stock, that's the dynamic we're looking at this is almost where we were i'm not even a technical guy while they've been

underperforming the sector this is the best chart of the group and it's a furng of this that you're getting the underperformance and 148 is where resistance is on the sum of the parts and i can make an argument that this is a $160 stock right now and i think the street is somewhat mixed on the name and rightly so. >> how concerned are you about this issue that they've got going forward from here? i see a little bit of that recovery you're talking about, but is that still concerning and how long is this going to linger on >> i think that the market obviously acted first. johnson & johnson, their reputation has certainly been reliant upon their place in keeping our baby safe and everything else related to the consumer business and i think they'll earn the trust back although they won't tell you they did anything wrong, and i think it's the pharma business that have the drivers. >> no more questions it's time to vote. are you buying tim's pitch on j & j. guy adamy? >> this is what i put on the board. the mets lost, and i can't stand

the met, but i do like it because it's not just a pharma company. >> you're defiant. >> yes i like it. i think it should trade high are. >> he's got me with the babies i'm going to split the baby hair i don't know why you take their word for it until talc is safe and there are threaty that you can go. >> i'm nervous about that as dan is, but with the pipeline and the drug side of things tim's right and i think it retests those highs and i think it will take more time. >> i ran out of ink or something? >> the pens are lousy! >> remember evan the intern -- he's the paige. >> he's got to get us new pens >> after he's flipping the burgers we'll send him out to get pens. >> the more important question is are you at home buying tim's

pitch at j & j you will hear toni -- >> whatever they may be later on in the show. much more "fast money" straight ahead. at mercedes-benz, we make every vehicle to be eye-catchingly beautiful. we make them to be exhilaratingly agile. we make them to be meticulously engineered. and for the cla, we also made it for this. the 2019 cla.

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welcome back to dwo"fast money. we have an update on luckin, this company considered a rival to starbucks in china. >> melissa, luckin coffee pricing its ipo at $17 per american depository share according to two sources close to the deal at the top end of the range it had been marketing to investors i am told they also upsized what they plan to offer investors 33 million up from 30 million. with the price point along with the placement by louie dreyfuss the coffee chain will have $614 million in the deal and that is a market cap of $4.2 million luckin's losses are about double the size of its revenue, $241 million in losses compared to the net revenue. more than a hundred million gets

more customers in the door and start drinking its coffee. it remains luckin's largest rival in china luckin says it plans to be the longest rival by the end of 2019 and its products are offered at a steep discount to starbucks' luckin was founded a year and a half ago and it has grown to more than 2300 stores and it's that scalability and the potential opportunity of conner having a primarily tea-drinking nation of a billion people to coffee, that's behind the investor demand. melissa? >> leslie picker there are differences between the two even though they're compared to each other first of all, luckin's footprints are generally smaller. a lot of the looks don't have looks where you sit down unlike starbucks' footprints and they're completely cashless stores they're catering toward this new millennial coffee drinker and

doesn't use cash, swipe and go, carry it away and there you have your coffee. >> it's considered a tech company especially when you think about how the ip was pitched and if you bfrng year over year on the growth has absurd growth, right it's based upon the first quarter. that's what people are tapping into they're tapping into chinese demographics and it makes a lot of sense and culturally, can they do the china coffee culture bator than a u.s. company can? >> it's very possible. i think rid here and now this is one of those games that people will be watching because it looks like another one of the unprofitable unicorn there is a scarcity value to luckin and we haven't had the opportunity to play the consumer >> for so many u.s.-based, that you have chinese companies,

getting our investors to subsidize their company over there. >> to beat a u.s. company. >> there's something funny about all of that, right but it is this massive opportunity. i don't know, do they drink coffee over there? >> yes, they do. >> yes, they do. starbucks has been there for 20 years and there was a starbucks and they recently changed to luckin >> it's not my cup of tea. >> starbucks reported at the end of april it waun it wasn't okay >> do you want to buy starbucks? bill ackman is so you probably would be >> the scalability is interesting, right but the losses are interesting and people have to focus on that if this thing is priced on the higher end i think you can be

very patient about this whole thing and i wouldn't be jumping in and very much like lift i would be a flipper right out of the gate. >> starbucks to me is a name you can buy based upon their valuation right now. >> we do have a quick programming note catch luckin kof owcoee ere's still time to vote so do so we're back in two. at kpmg, we believe success requires both. with our broad range of services and industry expertise, kpmg can help you anticipate tomorrow and deliver today. kpmg

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welcome back to "fast money. you know what tim loves listening to when shopping for johnson & johnson's baby shampoo? cue the toni braxton they're not buying his pitch, more than 60% are not voting, they're voting no on the pitch >> it's especially bad >> it's not 60%. we've seen worse, for sure >> yes, we have. >> time for the final trade. >> i do love the stocks. lennar will get you done >> giddy up. >> i'll stand in the pocket and choose j&j this say mega-cap name with some growth and valuation >> boeing, we did not talk about it today or yesterday, but i think this thing is not done going down and sell it on a rally. >> i can't tell you how -- this

song is so miserable it's about as bad as it gets you don't like dance or disco? >> i do dance. >> you are a great dancer. >> can i see it? no one will dance higher >> i can't unsee it. >> stop. >> oh, boy >> tha that's awful >> see you back tomorrow at 5:00 for more "fast." meantime, "mad money" starts now. my mission is simple, to make you money i'm here to level the playing field for all investors. there is 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 coming to you this time from san francisco. this is invest in america: defining the future. listen, other people want to make friends i'm just trying to make you some money. my