>> it's the everything rally because dollar is down yes, i do think it shows there's an undercurrent of caution even as the stock market is up on the s&p just about 3%. >> disney is higher after hours by about 4%. much more analysis still to come "fast money" starts right now. i'm melissa lee. this is "fast money. guy adami, tim seymour, dan nathan and chris verrone a pair of retailers, target and costco going to all new highs. chris verrone and what's got him feeling so bullish disney shares going positive after officially dropping on the results. julia? >> lower than expected revenue

but stronger than expected bottom line results. those earnings really driving disney higher. it's up 4.5% on news that disney is bracing its direct relationship with consumers announcing it will show mulan to subscribers on september 4th this is a dramatic change to disney's distribution model. it is sending theater chain stocks lower it's building on a bright spot in the quarter which is doisney

plus topping 60 million subscribers. disney now has in total over 100 million subscribers across its direct to consumer businesses. >> despite the challenges of the pandemic, we've managed to take deliberate and innovative steps in letting our businesses. at the same time we've also been very focused in advancing and growing our direct to consumer business, which we see as a top priority and key to the future of our company >> the impact of covid was felt deeply, particularly at disney's park division. the company says it experienced a $3.5 billion net adverse impact in segment operating income due to covid. >> let's get our traders' take on disney. tim seymour, you've been an owner of disney. the emphasis is on the streaming business

that's one of the major reasons the stock reversed. >> i think there's mixed views on this. our friend tom rogers is going to come on in a second i think dtc is an incredible opportunity for disney if you think about where they have the ability to bring some of these studio releases straight in, the mulan delay it's all great news. they haven't even rolled out in europe yet that's september 15th. l latin america comes later on in the year we know parks are 40% of the business we know that's going to come back i don't know when. and it has been slower to question disney on this, i think is to be looking at the wrong thing.

the fact that they were able to be a little bit more efficient on the margin, that they could eke out more profitable than expected i think is good news. it's all about disney plus look around the world. look at netflix. what's the multiple you put on that. >> should it all be about disney plus parks are about 40% of the business we know it will come back. you hit it on the head we don't know when guy adami, do you give disney a free pass on 40% of its business even though dtc is so sexy and appealing right now? >> the market seems to give it a free pass. tim hit all the salient points close to a $5 billion loss in terms of disney plus, i looked at it myself. rich greenfield has been tweeting about this.

i understand they have to go this direction they should have done "hamilton" at $30 because they probably would have scored with that. as we get closer to september 4th, that number is probably going to get cut in half that's just me sort of guessing here typically, like we've seen before with disney, the reaction right after earnings is lower. the market is giving them a complete pass, in my opinion. >> dan >> i think it's too soon to give them a pass. tim brings up a great point. disney plus direct to consumer is the future. but right now the average user is down quarter over quarter 18%. there's some funky stuff going on there

i don't think the mulan release of 30 bucks is going to help advance adoption of this product right now. i think you would have liked to have seen them almost kitchen sink the guidance going forward. these guys are going to need two quarters there's no visibility on when they're going to be able to reopen we have no visibility when we're going to have a vaccine. the stock raging 4% in the after hours i don't think is particularly constructive. i think verrone will have some comments on that i don't think the fundamentals are really lining up yet i think investors are looking for things they think can play catchup. this one is not there yet. >> i think you have to like how the stock responded here after hours. i think it speaks to the idea that the bar was pretty low coming into this afternoon that 115 area was major support. looks like we're going to hold

that and open tomorrow above 122, the july 15th high. 200 day comes into play at about 123. if you put this in context, disney's really been sideways for five years no one's made any money here in five years get it above 123 and then we'll talk. >> let's get to tom rogers, former nbc cable president he's now executive president of engine media great to speak with you. i know you're on with our friends over at squawk this morning. you said the disney earnings will be terrible what do you think with the stock up 4% in the after hours session? >> i don't get too focused on these earnings for this quarter. everybody knew it wasn't going

to be a good quarter maybe it was a little bit better than people thought it would be, but you still have the same question here. is the decline in the traditional business going to be too weighty to overcome the growth in the streaming new business so far the verdict on that is way out, you know, since disney plus was announced, the stock is down about 20% netflix during that time is up about 70%. i think netflix has proved a lot about its model when it comes to streaming that disney plus has not proved yet yes, they've done very well in terms of additional sub, but what kind of churn do we have here, particularly when the subs roll off what type of engagement do we have given the limited amount of original production. are we going to see anything with pricing power at all given what churn and engagement look

like so there's a verdict here that you can't render yet and we're not going to know for a while. i will give them credit for the mulan move i think that is actually pretty interesting. they had to do something with this movie obviously they couldn't put it in the theater near term not just charging $30, but charging $30 if you are a disney plus subscriber, if i understand trying to collect the direct to consumer revenue and trying to drive disney plus subscribers at the same time. i don't think that's a formula for most of their big releases they have too much to protect in terms oh s of the theatrical ww that whole company needs the big movie theatrical release but for purposes of the hand they're dealt with right now, pretty creative. >> what disney plus is now is

netflix in the early days. i understand your concerns and that it's way too early to cast some sort of verdict but it reached this target for paid subscribers four years early and it's always building a dtc international product. it does seem like it's fast-tracking the streaming side of the business. >> well, i don't think it's netflix for a couple reasons first of all, netflix doesn't have to worry about all the baggage that disney has. i don't just mean the covid issue that it's dealing with yes, we know everything they were hit with and it was pretty bad. coming out of covid, they still have a mess on their hands they're dependent in terms of their media network on the cable satellite bundle that's going to be dwindling down to 60 million, maybe below. there's nobody that's got more at stake there than espn and the disney networks in terms of what they pull out of that bundle

they still have a mess when it comes to ratings particularly in the kids sector. with that comes advertising decline. they now have the added pressure of other competitors trying to collapse the window and allow people to think they can stay on their couch and not go to the movie theater. they're also not netflix because disney plus by itself is a narrow service it's kids and family, but it is not broad-based adult entertainment. hulu really looks like it's having some issues it has only half the subs as netflix in the north american market, but looks like it grew less than netflix in terms of subs, which many thought north america was getting saturated for netflix and hulu grew less it sounds like adult international entertainment which i guess is going to take

the place of hulu is maybe going to begin to build the blocks that netflix has but they has a lot of pieces to put together to begin to say they've got a model approaching netflix. >> it's always amazing to have you on my question is somewhat out of the box. tiktok is on everybody's lips. i understand that disney has a myriad of problems and this is the last one they probably need. in a more normal time, would a company like tiktok make sense for disney to sort of insert in their platform >> guy, i think your put your finger on the conversation that was missing across all the microsoft/tiktok news, that technology companies are after this and media companies are not. the first thing that came to my

mind is, is this where all the teens and kids are going that's the sector that disney was all about. the extent that it is not a player here, doesn't have the balance sheet to be a player after the fox acquisition even without all the covid issues it's dealing with. i think that's another thing that the verdict is still out on, this fox acquisition they were supposed to be about all this content that was going to fuel streaming business what it's really done is opened up more exposure to the traditional linear television business if i was surprised by one thing over covid as it related to disney is fx, their big adult brand they're putting behind hulu, when it came to everybody being at home and looking at the ratings there, their ratings in the key demo were down 17% in the quarter. so i think they haven't yet shown themselves to be masters of that acquisition. i think this was a bridge too

far for them even if covid hadn't hit them but it's the right question >> tom, it's always great to have you thanks for joining us. >> thanks for having me. >> tim >> what i'm curious about is not only what can they expect out of their roll-out in europe and latin america, but ultimately where they do think they have an opportunity to expand their demographic. i would actually push back on the argument they're down 20% since they announced disney plus i would argue that was actually a catalyst for the stock beginning to rerate going into covid-19 we all know why it's trading at 120 and it was trading a lot lower. it's all because of the consumer and the parks and the thing that got the company going. i am worried about the balance

sheet. the fox transaction in hindsight was really poor. they were involved in a bidding war at one point they ultimately overpaid for the asset. looking at their ability to at least own the demographics they do own, i think the streaming business is undervalued relative to a netflix where the multiple doesn't matter and the company doesn't make money that's why i like disney. >> should disney hold 123 for you to be convinced they're on their way to a breakout? >> i think it's happening right now. against a very low bar, the stock has responded well the next target is probably 135. i think we push in that direction. longer term we ask is this the start of a major breakout. it's looking that way. >> let's get to phil lebeau with nikola. >> we knew that nikola was going

to report a loss it comes at a loss of 16 cents a share adjusted the stock is not doing a whole lot right now, though we expected we might see some movement when the conference call began, which started about 40 minutes ago they were asked about milestones and target they were clear about saying we're not going to tell you exactly when all of these things will happen but here are three things investors can look for. a commercial agreement on battery operated vehicles, the pickup truck as well as a partner for the manufacturing and development of hydrogen stations with regard to the badger pickup truck and the interest that is there, here is ceo mark russell on the call talking about why they dropped it and what he had to say about the tesla cyber

truck. >> we didn't intend to do anything with it until we saw the cyber truck. a lot of people didn't like the look of the cyber truck, including me i think it looks like a doorstop but they've got lots of reservations for it. more power to them we're trying to get the whole world to zero and it's going to take more an us, so we cheer them on. trevor just released the concept that we had for the pickup truck. people just went nuts over it. >> i suspect we'll learn more about the badger electric truck within the next couple of months trevor milton, who is the founder and chairman of the company is going to be on squawk on the street tomorrow morning one last note. a lot of questions about what's going to happen with the hydrogen fuel cell semis they are ultimately going to build in europe and ship to the united

states their largest customer is an horizoner bush mass production doesn't happen until 2023. >> we're quite a ways off from manufacturing of actual vehicles it sounds like the few things we would outline they say investors would look forward to is finding investors for various components of their business. we knew they were looking. the fact that they're saying look for this by the end of the year is nothing new. they're giving investors nothing new to hang their hats on. >> there is nothing that makes you say wow, i've got to get a piece of nikola right now. nothing concrete from this call that you would come away and say, okay, now we definitely see

xy and z. >> the analyst line keeps going through my head. sounds more like a business plan than a business, guy adami, given what the stock has been doing. >> yeah. i'm sure back in the day when tesla came out, there are a lot of people who said the same thing. i'm only compare it to tesla in that very specific example. july 17th, friday after the close, listen, seemed to catch the market off sides in terms of the way the stock performed. i think there's always the possibility that another secondary comes out given their situation. you have to be on guard against that this is one of those stocks where you're betting on that business plan. if you're comfortable with it and you think this is the future, maybe the risk/reward sets up well

obviously there's a lot to be proven here. i don't think it's about earnings but in my opinion there's always that sort of dam cleez that hangs over you in the form of a secondary or some sort of offering. >> images of swords just flooded my mind. the company ended the quarter with almost $700 million in cash they don't have manufacturing so the cash burn is not as intense as tesla this is a young company, chris can you chart this >> you absolutely can. that's why i think when you look at that you have to consider it from a tactical sense. you rally right back to 40 today. it's failing at 40 we also had a big down trend come into play at 40 until you recliaim that level, you can't own it it's been making lower highs since the middle of july until it breaks that pattern,

you can't own it. we're just getting started here on "fast money. up next, the breakdown result from beyond meat and wynn. plus, we are going shopping. it's been making lower highs hike!

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we have break news on novavax. the stock is falling in the after hours session, now down 7% meg? >> novavax putting out phase one results from its covid-19 trials

it ran in about 130 healthy people in australia. the company just starting their conference call now at 5:00. the chief of research starting off the call clarifying that there were no hospitalizations seen in this study that is why you are seeing that big plunge and then the recovery of the shares. there's been a lot of complaints from the scientific community about the way biotech companies release this important data. this was press released. we haven't seen the full data set. they are going through it now on the call not published yet in a journal

in its entirety. it makes it very confusing and difficult to go through these early results. these are the earliest clinical trials and they still have to get through phase three to prove they work. >> the press release has been released, but in terms of the full data set, that has not been released at all or it's been released to certain people >> novavax is going over their own results and their slides they indicated the full slides were going to be posted at 4:30, but nobody can find it the company has circulated under embargo to journalists before

the press release a manuscript but that manuscript didn't even seem complete. i saw tables cited in the manuscript that then weren't included, which would have clarified what those safety issues were. the data is very confusing now it's dangerous on phase one there's so much volatility particularly for these smaller companies and more volatile stocks. >> meg, thank you. guy adami, maybe this is a cautionary tale. we have all these companies releasing such preliminary results that are not even backed up by published data yet >> yeah. again, i don't know. i've been trying to watch where this has traded. i have some indication on this stock in the after hours that

there were hospitalizations line which proved to be incorrect i think the stock traded as h dw as $105 or so. if you got stopped out based on what proved to be an erroneous line in a news feed, that's problematic. it doesn't speak to novavax specifically it speaks to a lot of what's wrong with this market here the stock as right back to $150 with that said, if you back all that out, this was a $40 stock a few months ago, trading now at 150. if you've enjoyed that ride and you see what can happen, there's absolutely nothing wrong with taking money off the table here. coming up, shares of beyond meat and wynn in the after hours session. later, the news that sent

walmart shares tumbling after hours.

we're still in the heat of earning season we have full team coverage standing by to break down all of these names. contessa >> what we're looking at here is a rough road for wynn resorts, in part because visitation just hasn't returned eed the way th

were hoping. the casino was only closed for two weeks. given that the revenue was down to 21 million, you had a situation where las vegas was pulling in three times the operating revenue asth macau was on the call, the ceo points out these baby steps that china is taking toward opening its casino destination. it just started issuing visas to chinese travelers, everyone was tourists it's burning as much as 2 million dollars in cash per day in just macau.

they just furloughed their first round of workers in las vegas a couple weeks ago mattox says they really have to treat las vegas like a super regional casino because all their customers are coming in from drive-ins he said we're doing everything we can to put heads in the beds in this hotel. >> tim see moymourseymour >> it's nice to hear that the balance sheet preservation is a big start of the story we started to see the recovery in asia and then we started to see it peter out the cash burn is critical. the stock has been kind of basing around $70-75 ultimately i think that's where you are. i think there is long-term

upside on the balance sheet especially as regionally if you think about this the commuter element of who actually might be going to las vegas these days, a lot of those states are now very hard hit i don't think it gets better in the short run. long-term investors will be rewarded >> let's get to activision now >> he called these numbers ridiculously strong. why the lack of enthusiasm here? it was at about 30% over the past three months. he says long-term investors should see how mobile versions greatly enhance earnings power to this company's krey franchises second half bookings do look

roughly flat year over year despite this momentum. maybe sothe companies broad pool of fans, 400 million players now and counting call of duty saw remarkable increase in scale. war zone over 75 million played war zone since its launch. eight times higher than a year ago quarter. the economic outlook is unclear. >> josh lipton, thank you. dan nathan, would you agree that the earnings worer were ridiculs >> this is a company whose sales and earnings declined year over

year in 2019 it's obviously been a huge beneficiary of the quarantine. i think this price action is pretty rational. the stock is up 45% on the year. it tlrades at a pretty reasonabe multiple i think investors are going to start pricing in what does deceleration from this very unusual time look like especially from a company that might have already hit a growth speed bump prior to the quarantine i think this one makes sense to buy it lower somewhere in the 70s. >> chris >> i think this whole group is one of the great trends in the market activision up through 86 the other day, the major breakout, i think any weakness post earnings back to 80 is viable japanese gaming names have all been on fire this is a group move stay there if you're long.

>> earnings on beyond meat >> shares are down about 7% as the company took a hit from the pandemic challenged food service channel. sales in food service were down about 60%. the company did shift resources away from food service to retail while ceo ethan brown didn't give guidance, he did talk on the call about the covid impact on food service. >> we see no fundamental issues related to their food service business itself or our strategy that would preclude us from returning to a strong growth trajectory once some level of normalcy returns for the remainder of the year, however, we do anticipate that u.s. food service demand will remain soft relative to a year ago. >> and that switch from production lines dedicated to food service to retail led to repacking costs. that put pressure on the growth margin which was down from about

33.8% to 29.7% year over year. however, retail channels' net revenues were higher by 109% year over year the margins are line with the company's strategy of reinvesting. brown also said weap can expect beyond to go after traditional meat customers with lower prices in the future. they rolled out those value packs over the customer. >> the value packs, which brought pricing down to about $1.60 a patty. there's the other aspect of saying we're going to return to normal when food service returns to normal. well, we don't know when that is going to be either. >> period.

if you remember you came back, the stock was meandering in the 80s. i know what the product does to me without getting into great detail once again on a national tv show. but i like the stock i thought it could trade back to levels we saw last fall. it got as high as 150 or so. now you have to ask yourself where do you get back in the name it makes sense to look at that 120 level, which is sort of where we broke down from in february to your reentry point for the stock. i don't know if it gets there but it makes a lot of sense. the product is not going anywhere whether i enjoy it or not doesn't really matter. it's here to stay. >> really tmi. chris, quickly on 120? >> i think that's too low. i think 130, 132 is the area where you want to kind of zone in here. with this stock it's been two

steps forward, one step back this is the one step back. use it to your advantage. later we're gearing up for earnings from a past favorite.

industrials have been lagging the broader market this year chris varrone, what are you looking at >> there's so much attention in this business focused on the tech stocks. people are missing some improvements in the industrial

sector the broader sector has been consolidating in this very narrow range when you look at these average industrial stocks which actually outperform the construction of the group. the average industrial issue is getting better i think the best one really on our radar here is deere. it's starting to push up against that 180 level above that is a clear breakout and a major shift on what has been a lagger for the past two or three years c caterpill caterpillar. i think both of these names are going to be very telling about the broader sector election in 90 days.

tr infrastructure stocks are quietly starting to act a little bit better a lot of these names are quietly starting to exhibit some strength i think maybe one of the most important groups in this sector overall are the air freight stocks i think ups is the best example of it. clearly it's broken out already. i think the relative strength, its performance versus the s&p is really starting to improve. i think this is a game changer i think ups is going to be a leader for years to come i think this entire sector is getting better and people aren't paying enough attention to it. >> dan, any of those names strike your fancy? >> when i look at the chart, i see what chris sees. but i also see a lot of components that are down right horrible yes, i saw ups break out to those highs. when you look at boeing,

lockheed, mmm, honeywell, they don't act well there's a lot of other stocks in that group that don't act particularly well. i would say the jury is still out. i would also say they're discounting a whole heck of a lot of good news that may or may not come in the back half of this year. are they going down further? are the valuations trending at levels that make sense possibly if you want to kind of play catchup in some of those names, that makes sense to me. >> all cogent points by dan. guy, what do you think >> as the great regis philbin, and we miss regis. it's a huge level for john

deere. you can take profits into the earnings number on the 21st, thinking there's a huge potential for a double top or you could go to the $100 table, roll the dice and hope it breaks out. i think the prudent thing to do given the move is to take some money off the table and see what they say in a couple weeks. are you looking for a round peg in a square hole stick around for that trade.

welcome back to "fast money. shares of walmart dropping after hours on a report that its

amazon prime competitor walmart plus will be delayed again the launch of the $98 a year service slated to launch in july there's a certain amount of market cap added on the excitement surrounding this and almost a rerating of walmart when it first announced this offer. >> there sure was. i'd say there's certainly a 10 prn market cap premium the fact that they're delaying this doesn't mean they're changing their view on this and they zroedon't have the infrastructure to do this. walmart on some level has that in place and always had that in place. this makes a ton of sense for walmart, their ability to use the same day delivery as the same vehicle to drive higher margin items and put a lot more pressure on the costcos and the targets which i know we're about to talk about. this is a headline that's not

great after hours. if they told you they weren't going to do this, that's fine. but if you think about their other drivers and flip cart which isn't doing a lot for them even though india is a great market, they are finally learning what to do in e-commerce that's why the multiple is going higher i think they are the dominant player in this space. >> let's get to target and costco, both hitting fresh all-time highs dan, what do you make of this? >> well, costco obviously in front of tomorrow's july sales, june sales kind of got it going again a little bit after consolidation. i don't love the idea of buying a run-away breakout like this. it's fully expecting good july results. target is interesting.

getting back to that prior high here, tim does bring up a great point when you think about some of the initiatives walmart is trying to do with walmart prime. that's going to really weigh on target i'd expect target to continue to innovate here. i like target here. >> would you rather, guy adami, target or costco >> costco. we're not pulling it out of a vacuum usually i equivocate a little bit. costco has been a monster. we've been talking about costco for a long time on this show target has finally caught up and rightly so costco to me makes the most sense out of the three would you rather rather rather, you take dollar general and restoration hardware into that mix and you've got yourself a basket all of those names are names we've been steadfast in.

>> you've gone way off the grid with that one. with that said, chris, i'll throw it to you. i'll give you all five of those choices. which chart do you like the best >> i think target is the best chart here it's really the only one that's going up and outperforming the s&p. costco is at new all-time highs but it's not at new relative highs for s&p. you're not getting paid to owner versus other stocks. target you are >> coming up, there is no denying the rally in this stock. is it hip to be square stick around we'll slice into the options market businesses are starting to bounce back. but what if you could do better than that? like adapt. discover. deliver. in new ways. to new customers. what if you could come back stronger? faster. better. at comcast business, we want to help you not just bounce back. but bounce forward.

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square on deck to report options traders will ring up big gains on the results mike khouw, what are you seeing? >> so square is implying about an 8.8% move by the end of the week after they report earnings. that's a lot but maybe nom surprising given that it averaged 8.5% over the last

three quarters just under 5,000 of those traded for $4 buyers are betting the stock is going to be higher than that 1.40 strike price by the end of the week >> dan, what do you think of square >> first things first, i miss mike khouw i haven't seen you in a long time that stock has been consolidating over the last month or so. if you're going to make a bet on an upside breakout move, one hiccup in this name that's up 200% or something from march lows and you have a stock down materially greater than that. >> i don't know if you miss mike khouw, chris, but what do you think of the chart >> this is a name that's been sideways for six weeks

it's a great long-term trend until it gives you a reason to sell it, you have to stay long. >> mike, thank you i don't miss you because i see you on fridays friday is when the full show is. up next, final trade ♪ ♪ ♪ ♪ ♪

welcome back to "fast money. check out shares of kodak dropping as much as 13% today as the sec announced it is launching an investigation into some usual trading in the stock. the company got a government loan basically to turn into a

pharmaceuticals company. guy, just quickly on kodak, the story seems to keep on going. >> it's not going to get any better in terms of some of the things they uncover is my sense. we talked about this a week and a half or so ago you wonder why people get upset. that's why they get upset. the market cap being below $500 million, all of a sudden it's become relevant. it makes you sort of scratch your head. in terms of the headlines, the worst is yet to come. time for the final trade tim? >> walmart again i think this is a multiples story when you talk about their single-day delivery. >> dan >> i agree with the walmart. i also agree with var roan on

target. >> guy >> gold. >> thanks for watching fast. see you back here tomorrow at 5:00 for mor ♪ 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. i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramer america. i'm just trying to make you some money. my job is not just to entertain you but to educate you so call me at. last night i told you not to overthink the run in the covid stocks sometimes market rallies