most recent 52-week high still arp sharply from the crease eve low but i don't know how reliable it's been lately. >> the deeply cyclical stocks have not participated. they have not confirmed the recent high. it's been a defensive market even before we got this little jolt. >> more news today down as well, i guess a little bit of reprieve that the moves weren't wiped down and out that's all the time we have. thank you for watching "closing bell." "fast money" begins now. >> "fast money" starts right now. live from the nasdaq market overlooking the city's times square, i'm melissa lee. check us here, tesla taking a hit today, briefly dropping below $200 a share as the electric vehicle maker faces a mountain of issue. so what can save the stock we've got some details plus, tech stock getting tough today as tensions rise between china and the u.s. rebecca patterson this could be the beginning of the tech cold war. we start right there with

the tech war pain. check out alphabet and chipmakers pull away from chinese tech giant huawei. getting crushed, down 6%, apple's down 3%, as there's more trade war pain ahead for the tech war giant with tech caught in the cross fire, what do you do right now >> i think you think the market will continue to go lower. i can see you go to health care, go to energy but the short of this is the market double topped the s&p 2940 we talked about that a number of times. i don't think the vix is nightly enough to equate with what's going on in the world. frankly, if you think there's a sfuz china trade dell struck in the 11th hour, i don't think it's going to happen i've said this for a while, i think the chinese have been stringing us along, they've been preparing for this the last month if not year. and there's more pain ahead in the stock market. >> somebody is down around 17-plus percent here so we're getting the swipe of the general trade war hitting the broader segter but also specific hits because of huawei.

>> obviously as we see google begin what's going to be exodus of u.s. companies doing business from huawei, you have this sense this is really happening guy talked about chinese maybe have been planning this a long time he may be absolutely right no question the market has not been planning for this the reality is what's gone on here is it looked like we would cut a deal that seemed to me based upon on the deals we had, it would be a great deal for china. if you want to put your american flag on right now, i think it's not a bad pitch to be pushing back on a trade war that i think was not going to be solved based pont rhetoric we were hearing up until we heard it got nasty. the bottom line here is markets didn't really price this in. if you think about the genesis of the trade war last year, it really led to this place where ceos began this dialogue of uncertainty that began to dominate the headlines that is leading indicators that is the context of where -- let's face it -- think about the places we would be almost concerned on this desk if the world really slowed down we would go to europe. guess who has the biggest export

economy? it's effectively europe and they will suffer a lot more than we will a pullback of 4% in semis is dramatic and in fact cascading it's not getting better here i just think markets on the headlines -- and maybe even to the administration -- appear not so bad s&p's down a little bit. obviously, you look at emerging markets, we're at all-time lows. all-time lows on a relative basis to the s&p, meaning they've been absolutely underperforming and are at their worst level. >> it's interesting we mentioned semis a couple times we know 2018 was a really weird year for this component supply tore all of these major oems which huawei is a major android oem. they make almost 25% of the handsets on android. it's really important to remember because we talk about apple versus android, android has like 85% market share globally when you think huawei has 25%, this is really interesting time for the supply chain of the smartphone market, at a time when we know we're seeing a

plateauing of demand we've seen actual smartphone units drop year over year the last three years here. so what's really interesting to me is the company that tracks the semi conductor group is down 17%, 18% from the recent highs last year when they was very omnipresent threat to the supply chain in smartphones, we had almost a 30% peak in decline yes, it's gone down a straight line, 17%. is is there more to come? this is possibly a drawn-out thing. this is not a big positive for apple for a whole lot of reasons. we know this is huge for samsung. >> yes typical during periods of uncertainty but that ends up being off. >> there's just a lot of market noise right now. if you're able to tune out the market noise and you still believe the uptrend is intact, it gives investors an opportunity to identify some positions they would like to be in, possibly some very attractive entry points.

when we talk about tech, yeah, semi may be getting crushed but there's a still big opportunity within software. a lot of the software companies, you know, you're talking high margin revenues, recurring revenues on a subscription basis. so companies like sales force, microsoft, there's great opportunities to get in at great prices within those stocks >> but when it comes to sectors that have not been directly hit. >> correct gives you an opportunity to find good value. >> is there a way to tune out the noise within semis >> here's the thing, all of those recurring, high-recurring revenue softwares, they have not gotten hit yet you're looking at high growth area, once high-growth area like semis, down 17%. to dip your toe in the water here down 4% with microsoft down just a few percent from the highs, you might be a little early. it might depend on the time horizon. sales force is another one if we have a protracted trade

war, what that means is we might see enterprise spending down. >> and that will be software and cloud. and some of this was already getting to a place where we were starting to hear pushback in terms of demanding cloud and who you were talking to despite the fact it's been the driver of microsoft's outperformance it's been a resurgence for intel. i think these are places i would agree, i think the enterprise spend is at risk here i think we have not gotten a fresh downgrade of global growth because we just don't know yet i think what will be really interesting here is you can make an argument essentially the impact of the fed hikes has not been fully felt by markets yet and you add in a stronger dollar, and you really have another tightening condition. >> that's the argument of ubs' strategist who have 25/50 price target on the s&p 500. but the hikes that happened last year have not been felt yet. so we're still waiting for that to hit as we potentially are getting into the slowdown.

but in terms of enterprise spend, are you worry about that? >> i am worries before enterprise spend but i feel like sales force is one of the companies insulated from it. what sales force does is provide a crm program to businesses who improve profitability, improve efficiency and i think when the economy actually slows down, they are going to be a ton of costs that get cut way before anyone cuts their crm program. you'll drop employees. you'll drop advertising costs, marketing costs. you're not going to drop the engine that drives your business. >> and, listen, we've loved salesforce on this desk quite some time. we talked about it but in this environment the stock is trading close to 50 times earnings at a certain point people will look and say valuation is too rich let's get out some of these high flyers i don't think they will be -- i don't think they will be protected from that, in my opinion. >> but your analysis is not wrong. it's a matter of timing.

i think it's important to remember when we have these exact same concerns in q4 when hydro were getting nailed, they had 30%, 40% top peak decline. it was $165 and now "desperate housewives" -- 155 you may want to be panklt. >> how due feel about high-tech names may get hit the hardest? >> i think we've seen this maybe in the second half of the year where you will start to get downgrades and global growth beyond what we already endured, i think we've seen the market and high multiple names don't perform. nagt they' in fact they're under attack you can make an argument -- and i will leave this for the great charter charters, something like a netflix is right on the level it rose up to in the downdraft in december and getting close to the near $230 level.

you fall off and there's big multiple names that ran into some trouble i think if you're playing defensively here, it's probably in the bricks and mortar of tech and it may be in even inindividualia, where at least you have recent data points and company that may have carved out a moat in terms of their core business and chips. >> you're eyei inindividualia, right, mark? >> yes, i like this. if it falls in our lap terks would be buying shares now in my opinion it's the best of breed chip stock it gives us exposure autonomous vehicles, gaming, date kwla centers. the places where we want to be and almost priced right. >> i think it's fair to pick levels and that's what you should be doing watching at home one thing i will say in terms of the broader market, the s&p made an all-time high but the russell never verified that. the run never got close to where we saw over this past summer,

which to me is troubling look at the s&p 500 in my world, major double top pick your poison it doesn't bode well, especially with the vix at 16 1/2, which to me speaks to the complacency that's been in the market the last decade. >> even if there's a trade deal, the tech cold war between the u.s. and china will stop it. let's bring in rebecca it's always great to see you you're overweight technology though, how does that square with the notion of a tech war? >> a lot of the conversation you've been having on desk all right with some of the organic roads we will see with a tencent or alibaba in china or salesforce here in the u.s., we don't think that's going away whether it's a trade war or not. there will be a vot lot of volatility in the single names but we like the trend. the concept of the cold tech war, which we started writing about a year ago, is like when the u.s. got nervous about japan

in the 1980s, the u.s. is now having similar, not exactly the same nerves about china today. but china, as it goes on its growth path, could become the largest economy in the world on a number of different fronts in our lifetimes in our career. but it's not just the economic strength that makes us nervous it's about what they do with the technology that can translate into geostrength and military strength 5g is just an example, huawei is an example of the tech dominance that i think makes the u.s. fearful and it's not just a republican party issue i think there's bipartisan nervousness around this and that's why i don't think the tech cold war goes away. i think there is a chance we get a trade deal i don't know when it is or what the details of the deal are but i think we get that deal and even if some of tariffs go down over time the nervousness and limitations our government will try to put around tech to protect the u.s. economically and militarily is here for a long time. >> how do you extrapolate the 5g buildout to other sectors within

technology >> you have to think about it, the u.s. is going to make it harder for us to partner overseas with certain economies and vice versa, so where does the capital go we will see companies relocating we will see companies changing their supply chains over time. i'm talking years, not months or weeks. this is slow it's going to affect capital flows. you have to think who will be our ally who will american partner with do we see more money going to scandinavian countries that are making telecom can equipment do we have certain allied countries in asia we prefer to partner with you have to think long term, where did the capital flow, where do the trade flows go? you will have winners and losers from that. it is not even long term play but ultra long-term play i think this is something everyone should be starting to get in their heads when their thinking about making investments for the mediumand long term. in terms of sectors, technology certainly but it will feed through. health care now, all of the biotech, that's going to be hit by this. you will see a number of sectors

impacted i thoifr time. >> do you think it's just a false narrative when talk about a trade deal that the force technology transfer and ip theft has really been at the heart of this when you think about it, two-year long-trait. but in the near term it seems like we're focused on the trade deficit and if we have a deal about the trade deficit, tariffs will become more prevalent as a compliant mechanism going forward and we might have just greater volatility with trade with countries like china going forward. >> this is a good point. the investors have kind of confounded these two issues, right. tech, cold war and trade they're parallel paths these are different issues that just overlap to a degree when the trade deal included china had to change its laws on tech, that's where these two things collided and where the chinese said, you can't tell us to change our laws that's our country's right but i think to your point, the government is realizing tariffs can be an effective political tool there's bipartisan support on a lot of front thes for going hard

on china not necessarily the trade war but going hard on china. so the tariffs are a toll that may be with us for a while and the longer it lasts, your point tim on europe, the longer the tariffs are in place, the harder and longer the hit to the manufacturing sector globally. you look at the manufacturing sector pmis, you look at places like germany that are exposeds to this, the longer this goes on, it's a cumulative effect those countries can't bounce back. >> so many companies across sectors are looking to china and that area of the world for growth if you eliminate that or severely cut that expectation back, should multiples be capped in the long run? >> people are still going to want to do business in china even if growth slows in china, it's a big pie that's still growing. you have this amazing consumer base that's getting more and more mature and sophisticated by what they want to buy. will you still see capital there and businesses that want to go there. but if you have that incremental dollar, marginal dollar, do i

want to invest in china or vietnam or china or maybe a scandinavian country if i'm telecom, now you have a conversation before it wasn't a conversation. it was a done deal now i think you're going to see more diversion in companies as they're making longer-term decisions, especially if they think this is going on for the foreseeable future. >> rebecca patterson, thank you. very interesting appreciate it. your incremental dollar, where does it go these days since you're looking at the world? >> she brought up a tencent and alibaba and some of these names. i just don't think these are trade war stocks in the way they are treated. in fact, we talked about -- i think mark talked about places to see extreme opportunities to be buying. i think apple at $180 is getting to be extreme. i think certainly if you look at the move from $195 down to $160 on alibaba, almost like that, we probably closed through that i think you have an idea where companies that are true tech players and not necessarily

reliant on global capital flows are going to be at risk. i think you have to really be careful as data as the new oil this is the whole cold war concept she's talking about. think about where we were ten years ago and how protectionists we were over resources every country in the world is going to be doing this in tech. >> quickly, the microscope will be off health care health care hangs in there pretty well. you look at unh, quickly up 11 1/2% over the last couple of weeks and i think that continues higher tim mentioned and rebecca, i will say this, in terms of the etf etm, 38 1/2 better hold. that was the low back in october. recent low again breaks 38 1/2 and things get dicey very quickly. >> i think there's huge opportunities. you mentioned health care. i think there's huge opportunity within medical devices and equipment. a few names we like, intuitive surgical i think there's a great opportunity there. you're seeing more and more surgeries nowadays being done by or with robots and they're really one of the leaders in that industry. another one we like is ob ott

labs they're doing great stuff with diabetes managements. >> i just mentioned apple, china's been huge for them but also a huge source of volatility also when you think about global growth for some of our tech behemoths, they're unable to get to china and they may never be now, facebook, amazon, google and uber the list goes on and on and on you have to see how do you price incremental global growth if china will not be a part of it coming up, tesla hitting the skid breaking below $200 a share before pairing some of those losses how low can tesla go plus, this stock is up 50% so far this year but the chart master says this name has come too far, too fast. we will break down the trade later, we have the retailer names we are shopping and dropping live from times square, much more "fast money" after this measure up?

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down tesla's breakdown. >> if you look at why tesla tumbled today, 19 in the last 20 where it moved substantially lower, let's start with the web bush note. they dropped the price down to $230 but the language in there where they questioned the demand for the model 3 and they said look, it's going to be a ki kilimanjaro hike in order to achieve profitability, that had people saying what exactly can we expect from tesla when it comes to the financial performance. their estimates are pluning. how quickly have they gone down? go back to december 31 last year the consensus out there according to fact set back in december, it was at what, $6.47. february still holding up pretty well people expected a profitable year for 2019, $5.68 then first quarter deliveries dropped to $4.12 and opapril wa disaster most of the analysts said they're going to lose money this year now expectation is tesla to lose

did 1.15 for 2019. it's down almost 50% from its 52-week high set back in august. that's what we're showing you here go back to august 7th. this stock was up at $3.78, $3.79. dipped below $2 today, down 48%, 49% since august. >> that was down around the time funding secured 4/20 tweet, right, phil? >> i had in the past elon musk would tweet something and move the stock higher his levers he can pull, they're a lot more limited now they already went to the capital markets so they can get more money. they have liquidity for a little while. in terms of new models, they showed you the model, why. they showed us the semi truck. what can they show us next to say wow, i see the future and what's coming up for tesla you're in a period where you're waiting to see if the demand is truly softening for the model

three or if they can come through with the guidance they put out in terms of delivery. >> i think the skepticism really got ramped up when came out with guidance and ramp from 63 k to as many as 90 and 100 k the following quarter, that's when the eyebrows started getting raised. >> right everybody is saying can you deliver, what, 99,000 per quarter for the rest of this year there's a lot of skepticism there. >> yep phil, thank you. phil lebeau on tesla phil didn't mention but, of course, the autonomous event when elon musk promised a fleet of autonomous taxis that would take to the streets. and that also didn't bring the stock higher. >> you were off last week when we mentioned a tv gain called no whammies, remember that show >> i was here. thank you for remembering my presence. >> sorry about that. >> anyway -- >> press your luck and tim started pressing his luck. you know it's good for tim, he's been spot on

i will say 180 is the low. that's where it's headed to. again, it feels as though it's overdone on the down side. probably has more room. >> how far are you pressing? >> i will tell you what, if you want to think about market dynamics you have a lot of margin calls in here, broken all support, lost all institutional support what might be traditional oversold conditions, i don't think so i would just get back to what you said on deliveries let's be clear on a couple of things, they pulled forward two years of back doing demand on the model 3 and pulled demand because of tax credits at the end of the year. demand just is not there to get 90,000 to 100,000 each quarter for the rest of the year, do you really believe they believe that if they don't, i'm not sure how we prove this. but again it gets to this whole dynamic here with this company where what constitutes these guys not being truthful? and you can't tell me that they can't look at their order cycle right now and delivery cycle for the second quarter and have a better stake in that again, i get back to demand, i

get back to balance sheet, credibility and corporate governance and i don't know who buys the stock here. >> i agree i think this thing is headed for about $100 a share. >> are you sure? >> no, i'm not sure but i think it goes lower but i think it will continue to go lower. we have been bearish for a while. i think demand is waning we in a lot of pull forward last year to take advantage of the tax credit, which was cut in half in the past they were competing on quality now they're trying to compete on price and quality is suffering what does tesla really do? yak jack of all trades, master of none they're doing electronic vehicles, insurance, robo taxis, space ships. i don't know what they're doing but they're not focusing or executing on their core business. >> today credit markets look at the five-year up spiking and saw their 2025 convert, down trading near all-time lows so the credit market has taken notice i mings from an equity standpoint, opening lows, close on the highs on big volume

again, when we sit here at the desk, and i was wrong last week saying the same thing, it's hard to press it. it seems like a universal short. the person to buy it are the shorts, i guess. that's how you get done skipping over each other. >> for more on what's ahead for tesla, go to cnbc.com. i'm melissa lee. you're watching "fast money" on cnbc, first in business news worldwide. here is what else is coming on -- >> get in, we're going shopping. >> yes, investors are heading to their favorite stores as a number of real estate stocks report earnings. we'll tell you the shares people dropping and shopping. plus -- >> we've gone too far. >> that's right. a number of stocks with moves that have come too farto, o fast he will give us the names. much more "fast money" after this to give every idea the perfect soundtrack. ♪ to fill your world with fun. ♪ to share my culture with my community.

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welcome back to "fast money. despite the recent market turmoil, the s&p 500 is hovering just 4% below all-time highs as we approach the halfway point in 2019 our bob pisani is live from the new york stock exchange with more on the biggest winners. hello, bob. >> hello the s&p has come off its historic high from several weeks ago as you mentioned trade issues with china once again the single largest source of downside risk to the markets take a look here, this year's percentage leaders are a very diverse group. it's not represented by any particular sector. some are merger related to anna darker, for example, is up on the occidental deal. some are market leaders in their own particular space like cosmetics giant cody rallying on a very promising e-commerce platform and leading to short recovery recently.

hess is one of the very few strong performers in energy this year but it has a new pipeline of low cost discoveries, very critical, especially that it's going to fuel oil production over the next decade chipotle, recovering from its food safety incidents of last year it's been outperforming though other fast casual restaurants on superior management, simple menu, pleasing restaurant designs and some very strong digital efforts that seem to be paying off finally perennially challenged xerox, this is a tough, lousy business its imaging equipment has been in structural decline for years as the workplace is digital and rivals like hewlett-packard and cannon grow their market share that's been a very big issue but the company's earnings had been growing they're up 30% year over year in the last earnings report, melissa. and they're one of the most aggressive buyers of their own stock out there anywhere on the s&p. they reduced their shares outstanding by about 30% since 2012 and that makes them a buyback

monster in my book back to you. >> thank you, bob pisani, at the new york stock exchange. pam, do you like any of these market leaders >> i'll tell you what, if you have a case where you look for stocks to continuing to perform in an wref growth is challenged, you kind of have to stay with what's been working. ultimately, i think you want to find eps growth in the tech sector and that's probably where we go. >> how about you >> not really. i talked about coty last week so coty is one i would be staying away from. i think their debt levels are way too high 5.8 times net debt with eastbound athat. really struggling in the mass consumer market. bringing on p&g's beauty business with cover girl, i think it's a situation that's not going to work with for them. >> hess has had a huge move and trades big valuation but if you look, maybe they turned things around you say 35 times foreign earnings is crazy but i don't think it's valuation maybe they figured it out after a decade of floundering.

of all of the names you mentioned, hess might be the most interesting one. >> coty and hess are not the only names gearing up in 2019 two he overlook names into may be about to fall to earth after soaring. carter is here to break it all dune. >> speaking on two names impervious to all things, just classic videos and growth names that seem high and ahead of themselves planned fitness, one of the fastest growing workout joints to put it, if you will, in a not pleasant way and wing stop, speaks for itself. think sell wings two-year charts. incredible kind ever thing great runs are what they are but they have setbacks and sometimes they have end of the great run now just to put this in context, let's look at this compared to the mighty microsoft and visa. you're talking about stocks that have doubled and tripled both great winners, which they in turn have tripled the performance of the nasdaq. just in a two-year period, a lot

of money has been drawn in and i think they're a little hot minimum ones long take profits and a little fortitude, it's short. but wall street, of course, is a cheerleader kind of thing. very few stocks itself you see here planet fitness, they're all buys and three holds. hold is a euphemism for sell it means wink, wink sell but no outright sells. you don't want to offend the bankers. this speaks for itself let's go on to what we see here for planet fitness average price target 79.08 but closed friday at 80. even though no one has to sell, the current price target for 12 years now is below where it is now. well, how about the next one so planet fitness, where could it go? minimum i think you will check back to trends so the betting here is we're going to get this, this, that and somewhere down in here and then for wing stop, eight

buys, actually a sell there, seven holds. little less euphoric but still the principle is the same. here average price target 77 it closed friday 79. so according to the street, it's supposed to be a buy but it's supposed to go large all muddled. wing stop, betting is if we come down to trend, so if that's the best, let's put in our arrows and make that bet. i would say long by puts or something. >> carter, come on over to the desk lizzie's going to bring the chair in evan's out today thank you, lizzie. just in case you at home are wondering where evan was so you don't like wingstop you don't like planet fitness. about what some of the other names bob mentioned with strong starts to year hess, coat yis, anadarko

>> a stock priced for bankruptcy has come off the bottom as effective deals or some sort of sale and so forth. i think the thing about these two stocks, just in particular, we know fads take on a life of their own. restaurant business is a disaster all sorts of things like boston chicken and cosey and think about the other things like einsteins bagels and goes on conan grill, noodles and company, benihana. then what happens? they all fall down to earth. it is hard to get in the pantheon business. maybe mcdonald's, starbucks, a few others the fad can go for a long time but never goes forever then the gym thing, i mean, listen -- >> i'm just going to switch gears because i'm not interested in either of those names what about cisco, who had this monster rally last week? it sold off with the s&p the last couple of weeks but then they had news and gave better

guidance than people expected and huge rally on volume you want to buy a stock like that in a market like this where it's feeling dicey here on any pullback >> cisco has the trajectory of the market it bottomed on the 24th and peaked down 11% and gapped on its earnings and now pulled back all things equal i would rather have something that gapped up on earnings than something that didn't. >> i want to mention wing sfs stop, i've never been -- >> you should never go i will tell you, it will be bad for your health. i'm telling you now. >> that's fair i appreciate the warning but this weekend was the preakness stakes in baltimore, carter's aware sometimes you don't bet on a horse, you bet on the jockey. >> what are you talking about? >> i will mention my point who has gotten chp right, chipotle >> not me. >> not me. >> but nicole from pieper, spot on why do we mention that i'm glad you asked she initiated wingstop at a biep with 88 price target comp is almost double.

they're she's on to something. as much as i love cdw -- >> it can go but what about shake shack? almost all ends the same way, tatters on the floor. >> tatters. >> carter, thank you good to see you. >> big box retailers on deck for reported earnings this week. we will tell you which one traders are shopping and which ones scher dropping. t-mobile hitting the highest level in more than a decade after the merger with sprint aly. one step closer to reit but some are betting the rally can be short lived we have the details when "fast money" returns

welcome back to "fast money. a slew of big retailers set to reported earnings including names like home depot, target, choe's and footlocker. so we thought it would be a great time to play -- >> shop it or drop it! >> that's right. "shop it or drop it," one of our favorite games here at "fast money. we kick things off with choel's down 5% this year. set to report tomorrow tim, first up, shop it or drop it >> let's get out of the gates. sometimes these games are hard i'm dropping this one. >> you mean you're not buying, you're selling >> i'm selling. >> just want to make sure. for the people at home >> i'm dropping it

dropping it. taking it out of my basket and throwing it back out i think kohl's is one of nine big box stores under a lot of margin pressure from labor will be under major pressure from import prices gone higher and we are so overstored in terms of floor space per capita in this country for stores, that's why they're beating each other up i don't want to own you. >> i just clarified that for guy so when he play, he understands. >> first of all, i like music, and when all of the artists drop things, they drop their music, that's a positive thing f you're just in the music genre and you're shopping somebody like the mets are probably shopping 90% of their team, that's a bad thing you can understand how i would get confused they report before the bell. the stock has done from 76 down to 62. 60 was the low over the fall would i shop it. put that graphic up and say, you know what, it's had a huge move

to the downside. everything tim talked about is probably priced in they report tomorrow hope it flushes to 60 and then shop that sucker, mel. >> mark? >> i would be shopping this one. i think they've got a huge positive catalyst out there right now with their partnership with amazon. they have the ability and will be adding that to the stores over the next of the next few quarters they will have the ability to accept returns from amazon i would be shopping it. >> next stop, footlocker up 4% this year. dan, shop it or drop it? >> mel, i'm shopping this one. i'm kind of channeling my inner karen bitterman if i could, using the big name with her for a while here this thing is actually really cheap. they reported friday morning before the opening tlarade, he n times. earnings expected to grow 10% this year. sales growth they just made an investment at the goat guy -- you know what that is? >> greatest of all time. >> that's a sneaker marketplace that owns flight club here in

new york and l.a these guys are doing a partnership with them. i think that gives them a certain amount of cred within this demographic that's growing in the sneaker university. to me i think you can see them actually buy goat at some point. this would be a very interesting online/offli online/offline combination in my opinion. i think it's a dheep stock. >> you like nike so do you like fl >> i like nike i would rather have dtc through nike i think fl has a place but valuation needs to be -- multiple should be moving lower so i would be dropping, not shopping. >> did you look up goat on your internet machine >> it's funny, somebody put that on a #goat on the twitter machine and i saw continue looked it up the first thing it said was like the animal goat. i said, can't be that. >> you remember goat boy on "saturday night live." >> one of the best skits ever. >> shop it or drop it? >> dron it dan is shop it, but i say drop it if you look, this has a huge move off lows.

$30 stock a year and a half ago. huge move. a lot priced in. i would -- what do you guys do drop it ahead of earnings. >> what about your et lapse rate that set me off? >> retail. you're millennial but i buy kicks on the goat app and i think it's cool. i think that's one way to get kids back at this price. >> you want to show us what you're wearing >> no. >> those are his fancy sneakers. we're moving on. lowe's reporting wednesday mark tepper, shop it or drop it? >> i'm going to shop this one. the consumer is still strong in existing home inventories are low which means more and more consumers are going to opt to fix up the homes they're already living in and i do prefer lowe's over home depot. they can get their new ceo in place, more of a turnaround story. i would be shopping this one. >> i like would you rather in shop it or drop it, that's a game within a game very complicated. >> let me use a metaphor guys used the mets' metaphor on shopping how about the yankees shopping

for a new thurd baseman because they're third baseman is out for the year if i'm going to lowe's, i'm also shopping this one. i think it creates a discount for home depot people might say what's going on watt with housing markets and taxes and salt states, people are pressure to invest in their homes, pep are taking out fresh home equity loans and reinvest, in their home. >> next, shop it or drop it. >> in the vacuum i would drop it but in the aggregate i would drop it. >> so drop it no matter what. >> dlop this thing >> what does that mean >> it means we said stay away from this for years, despite the fact we play the gratuitous footage which you all like, i'm not a fan of we said stay away and that's been correct i don't like it. we don't need to do that it's a family show it makes no sense on so many different levels if it rallies after earnings, sell it ahead. still ahead, video games

we will hear from the ceo of one of these companies next. plus, sprint and t-mobile get one step closer to a merger but one trader said don't get hung up on a deal because it could be a bad connection. more on that when "fast money" returns. 401(k)? where do i start? empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov.

welcome back to "fast money. the fcc and doj battling over a major merger between sprint and t-mobile fec commissioner pie saying he plans to recommend approval for the deal but the doj reportedly still leaning against allowing it to go through the options market isn't convinced either dan is over at the plasma with more. >> today both of these stocks gapped up, sprint more than t-mobile but print model of t-mobile three times that of calls. a lot of positioning for this deal there are no certainties about this i think in the instance we're going to talk about, one trader when the stock was about $80 was a buyer of a thousand of the june 77 puts paying $168 for those to break even at 7532 on the down side in a month you know what guy would call this, maybe the fcc won't let me be trade if this thing doesn't go through, maybe this trader is looking protection to the downside because they're long in the stock, hoping the stock

continues to rally let's just kind of look at this, it's obviously been consolidating, this is t-mobile's one-year chart over the last two months. you have this big breakout on big volume this is the break even level so if you're long, maybe it's one way to put short-term protection in this thing here's the thing, we know t-mobile has been rumor add choirer or maybe acquiree over the last few years this is the ten-year chart we see this after the consolidation. one way or another t-mobile is in play. they will either get this merger done with sprint or maybe a big cable company buys them. i would not expect too much downside if this deal doesn't get done. >> we saw a lot of movement surrounding this particular deal, verizon and at&t up and cell tower stocks up as well. >> go back to t-mobile, april 16th i think the news dropped to use the term on this show, doj said probably unlikely for this merger to happen stock traded below $70 on the show that night we said

t-mobile is too cheap. buy the stock. 12% higher here we are. john lodger ceo is a stud. i think this play continues to be despite the move tm suxt to the upside. >> for more, check out the full show friday at 5:30 eastern time coming up, the cramer cam. jim talking to the ceo zelnick we will bring you a sneak peek of that interview. live at the nasdaq in times square don't know what's going o. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ dear tech,

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captain snowball? and here we go. [ "good to be alive" by andy grammer ] it's snowtime baby. [ screaming ] oh, snowball.

uh, is he ok? not in any way no. take that ok. you were just beaten by a rabbit. you don't even know it. [ ding ] oh, my pizza rolls. welcome back to "fast money. video game stocks charging today amid a shangup surrounding act asprigs's call of duty franchise. reporter saying lead developers slem hammer and raven will no longer be in charge of the latest edition of the game due to ongoing conflicts between the two. but the game is still expected to be released on time in 2020 strauss zelnick sat down with our own jim cramer minutes ago to do talk about the e sports boom. >> e sports are already march r watched by 250 million and 100 million people consider it a primary vehicle to watch it play video games competitively. the nba 2 k league is in its

second season. we're off to the races. >> shares of take 2 and activision all down 20% off their high is today's move a sign of more pain to come tepper, what do you think? >> i like e sports it's a trend you have to be a part of. viewership growing 40% year over year selling out the staples center three straight days where people watch their league of legend championships. this is something you have to be a part of. i am concerned about activision replacing developers on their key franchise but hopefully this ends up being a great buying opportunity because the long-term thesis still stands intact. >> the issue here ask everything strauss does is true everything mark said is true in terms of the sector and growth and excitement but the valuations and multiples in the space are clearly undergoing a reassessment and so i like and i own electronic arts. i think the apex legends franchise is something that will jump-start their fourth quarter.

but what do you pay? what's the multiple? i'm not sure i know. >> i take take two is great. i think they have the highest played games for sure. to me it's not that crazy. i think they've gotten caught up with the rest of the song with the rest of the space. if you force me to choose, it is rather ttwo. would you rather >> be sure to check out jim am'sull interview with strauss zelnick at the top of the hour you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.

welcome back to "fast money. family is growing. check out baby schamus mark doyle, born saturday, may 18th, weighing in at 7 pounds 4 ounces big congratulations to our line producer brie and her husband ryan on their bundle of joy. look how cute. >> look how cute schamus is. time for the final trade tim? >> beautiful baby boy. you know what you need to do, go to home depot and buy that kid a crib probably already have one. but i think these earnings are something to buy into. home depot. >> mark tepper. >> t.j.maxx, off price continues to be one of the strongest areas within consumer discretionary. >> so footlocker's down from 65 to 55. i think it holds here. i like it.

>> i will tell you what you do for the kid first off, stop playing this song. it might be the worse song of all time. >> probably crying. >> who is playing this song? >> i have no idea. >> it's awful. but say this, khol's reports in the morning. buy it against $60 that'skohls reports in the g buy it >> beiber huh? >>. my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a consumer and i ploms to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. my job is not just to entertain but to educate and teach call me 1,800,743 cbc. what made today stuff? dow sinking. th