microsoft the big mover, it's going to give the nasdaq a boost. >> it really will, and the dow for that matter. it shows you how good a quarter had to be because the setup was challenging. everything working for microsoft. the market was rebalancing anyway. >> we are out of time here for "closing bell," thank you so much for watching. fast money starts right now. i'm melissa lee and this is "fast money. tonight on fast, a regime change on wall street those words from noted investors as names like gamestop continue to rift higher look at the moves in the after hours session. we'll get tom's take on the reddit rebellion. plus, sizzling hot, beyond meat soaring today the big deal that sent shares towards an all time hour stick around for a bonus hour of "fast money. if you've got any investment questions, tweet u

us @cnbcfastmoney. all three stocks on the move in the after hours session after reporting results. w we've got full team coverage kate rogers is at&standing by on starbucks. more on microsoft's big quarter. josh. >> for microsoft these are strong beats across the board, not just the bottom and the top, but look at these segments revenue and productivity and business processes, 13.4 billion that was an increase of 13%, better than expected within that office 365 commercial revenue growth, 21%, 20% constant currency. intelligent cloud segment 14.6 billion, also a beat. within that azure revenue growth 50%. morgan stanley was looking for 41% in the quarter, and finally revenue in more personal computing 15.1 billion that's an increase of 14%. i did check in with evercore, i want his quick take on the quarter, bottom line for kirk,

very strong results across the board. azure he says blowing out expectations with that print office 365 commercial business up 20% you are seeing, kirk says, strong monetization trends of offerings like teams as the economy reopens, kirk is betting this could be the start of several very strong quarters on the commercialside of microsoft's business this conference call, remember, kicks off at 5:30 eastern, at which point we expect cfo amy hood to give us guidance. >> back to you thank you, josh lipton guy what do you make of this quarter with the stock higher after hours? >> a number of things. i'm glad you mentioned there's two hours tonight. hopefully i'll have a chance to run to the men's room at some point. what i'll say about microsoft, is it shows you how lousy ibms quarter was. i had azure growth at 40%. we're splitting hairs with magnum pi there. the thing that stuck out is operating margin is up 41 1/2

percent. we talked about valuation, well, i tell you what, microsoft at 32 times given this quarter and given the growth rate to me is still extraordinarily reasonable we're now above the september 2nd high, which i think is 235 that's your level of trade around we really haven't wavered on this name for a long time, and i think you stay the course. this quarter gives you no reason to get out. >> 48% i think is in constant currency, correct me if i'm wrong. but the street is going with 50%, which is better than what was expected, and of course better also compared to last quarter. dan nathan, where do we go here with microsoft >> well, listen, it's doing kind of when apple did. it kind of rallied into the number here. today closing at a new all-time high which is fairly impressive when you consider the rotation that we saw out of mega cap tech over the last few months, so you're seeing piling in to the stuff that worked really well last year, and it worked early in the pandemic. you know, i'll just take it a bit more macro here, mel

obviously microsoft did everything that they needed to do and then some it was a very high bar there's 40 analysts who cover this stock on the street, 37 of them rate a buy, three a hold, no sells, so the fact that they put up that beat, let's see when the guidance looks like. but i would just push back for one second here, trading at 31 times next year's earnings and ten times next year's expected sales, i would say with expected eps and sales growth of about 10%, the stock is really rich on a very historical basis. unless you're telling me that valuation really doesn't matter anymore -- and maybe it doesn't if you are a $2 trillion behemoth which is what microsoft is likely to open at tomorrow -- then fine. i don't love the crowding in these names. i was optimistic they put up good quarters. we're going to have apple and microsoft at $4 trillion in market cap everyone's on the same side of the boat here. that makes me a little concerned. >> we've had the conversation so many times where maybe valuation in this market doesn't matter,

in a market in which earnings power and earnings forecasts are so flimsy going into the next year, and maybe microsoft, karen is an example of one that can, in fact, forecast pretty well where it's sitting right now >> well, we have a clearer picture after the call, but i mean, this was a really high bar to come into and beat, and i mean, to me these revenue beat, the size of the revenue beats that's kind of amazing when you're already at such a big size as a company, and to be able to have in various division, 10% revenue beat, not just growth, beat. they deserve to trade at a premium multiple what is that premium i'm not quite sure they do have a ton of cash you have to back that out when you think of how expensive the enterprise value is, but they also, it sounded like on some of the lang wuage that i did read,t didn't sound like they felt like they were really pulling

forward. it sounded to me like they see this as a secular change that will continue, so i'm staying the course here. >> yeah, they're in the right parts of the business, i mean in terms of clouds they're the second biggest cloud vendor in the world behind amazon. they're in video games they just released new consoles. they're in the sweet spot for this economic environment. >> right, and again, this was a dick fosberry kind of a guy -- >> can you remind us again of dick fosberry. >> he perfected the fosberry flop, which is a way of going over the high bar. what more needs to be said it was a thing of beauty it was a thing of art, much of what microsoft has done today. again, the commercial cloud revenues of 34% growth, i mean, the street was 25, 26, 27 gaming let's talk about gaming. gaming is now about 12% of sales. it's extraordinary, and the

multiple that's being discussed here caution flags except for the fact that it's rewarded that multiple and it's been trading -- it's been re-rating on a higher multiple really for the last three years a cloud mix that is now north of 40% means that on top of azure, you've got -- you've got pillars of strength that are, i think, probably worth investing in. guy talked about the levels on the stock getting through this 235 level, the stock largely from those july 9 highs had done very little, and it moved kind of in a range from kind of 210 to 225, 230 with a lot of mega cap check doing more than that this is an emphatic breakout maybe you don't buy it tomorrow morning, but it seems to me that the stock had actually consolidated around what had been two fantastic consecutive quarters >> i see guy raising his hand skpr and i'm tempted to just ignore it go ahead, guy, what would you

like to contribute >> no, no, you make me feel as if i was at home, which i am by the way if you ignore me far be it to correct him in such a public forum, but dick fosberry didn't perfect the flop he created it. in the nbc world, that's the more you know. >> fast money tradeable and useless information. remember when ibm reported, dan, and what did they report cloud and cognitive services down 4.5% year on year when you compare that to microsoft's azure, and grant it, it's not completely apples to apples, it's maybe like apples to pears kind of comparison. what does this tell you about ibm and the challenge it has as it goes towards the spinoff later this year? >> it tells me that ibm is really -- listen, i took it off my main board.

i don't even have it on my screen anymore i think palantir is where it used to be i mean that seriously. i haven't looked at ibm since palantir went public months ago. did you notice even in this crypto craze they stopped running that -- remember that tomato that used to make its way around the world on the blockchain this was probably 2017, 2018 they don't do that they were chasing every shiny object over the last five years, and they've absolutely got nothing right. you tell me if they're going to get this red hot thing right obviously the person in charge now is the one who used to run red hot. i just don't think so. as far as microsoft, i think all these guys are right i mean, listen, this thing is just -- they're just doing everything right, and they're just like flexing right now, but i guess at some point you just have to decide, right, like how many $2 trillion sort of names can continue just to box out everything else, and that's a bit of a concern, and don't think for a second at some point people are going to wake up and say 31 times earnings and about

ten times sales is expensive, especially if we start to see interest rates kind of creep up a bit more, which i think this panel thinks is going to happen. so at some point in 2021, you better watch out below in some of these very crowded -- >> we saw interest rates creep higher, though, dan. it didn't fall out of bed. >> well, did it do anything over the last few months until just about literally a couple of weeks ago? i mean, the stock ran 10% in a straight line into this print. it's up 5.5% i'll bet you this. i'll bet you this, that this stock fills in that earnings gap over the next couple of weeks. you're a little bit of a market historian. you've been doing this a little bit. you often talk about how often some of these early leaders in the earnings season, you know, they kind of get that little, you know, jitteriness out of the way or whatever. we saw netflix gap up 15% it gave back almost half of that you might see microsoft do that too. >> do you agree with our friend dan, guy >> i love -- we got two hours of salty dan tonight.

i am so fired -- i know exactly what he's saying listen, he's going to be right my only point is, you know, again, we mentioned ibm at the top. this illustrates this microsoft quarter how lousy ibm's quarter was. number two, if you like apple at 32 times next year's numbers with their growth, i think you have to love microsoft at 32 times with their growth. that's my point, but to dan's, the point about trading he makes, yeah, you could absolutely see trade back down to the mid-220s. i just think you're probably going to see north of 250 before that. >> all right, 19 minutes the start of microsoft's call, let's move on to amd in the meantime the stock volatile in the after hours as the company's call gets underway let's get to dee bosa. >> delivering on those high expectations, shares are bouncing around in the after hours, it was up as much as 5% just after the results hit, turned lower now it's down about 1.5% that may just have to do with the run that this stock has had over the last year, up some 90%.

one of the best performing chip makers first quarter and full-year revenue guidance, that was strong, better than even the whisper number the chip maker benefitting from pc sales and those new video game consoles from sony and microsoft. plenty of questions, though, still around the zylinks acquisition and potentially renewed competition from intel now that pat gelsinger has returned as ceo. they have been taking market share from intel for years, but can it continue to widen that lead if intel starts performing better that's one of the key questions that analysts are asking i did ask bernstein analyst why shares started to slip he pointed to those high expectations and like many others, he is listening for more commentary on the cult that just kicked off with ceo lisa su talking about 2020 as an inflection point and saying that they will continue to build on that momentum they saw last year she will be on "squawk on the

street" tomorrow >> thank you she'll be on the conference call, and keep us posted on that we're seeing the stock down 5% or so. we're seeing sort of the same, you know, context for texas instruments, which also posted what looked like a pretty good quarter, trading lower in the after hours session, also ran into the results tim, where do you go in chips? >> well, first of all, amd, what a year, what a year both on the scoreboard and what a year in terms of really strategically how they continue to box out intel and kind of highlighted intel's weaknesses, and a lot of design win at the high end so both the client and end server markets, they continue -- they come into '21 extremely well-positioned. so it's a question of where is

the stock priced that's always been the question here in terms of the positioning of the business and strategically where they sit, you know, i think you like the company i don't love the valuation i don't chase it and again, if i'm going to chase a valuation in the chip space, i would be chasing an nvidia, which is clearly when it comes to graphics and gaming and some of the high-tech, high end chips is where i think people are at least willing to pay for the innovation, the consolidation of accusations, and i think that's really the story >> not intel not intel guy? >> well, i mean you could make a compelling case and good for dan nathan who made that case when the stock was trading around 47 1/2, 48, so although i make fun of dan calling him salty, he's been spot on in a lot of these names. they gave you full-year 2021 revenue guidance and said revenue's going to be up 37%

year-over-year i understand why people think this stock is rich it was rich $30 ago respectfully, and you probably will see a pullback, but go back and look every time they report earnings, stock sells off, lisa su comes on tv the next day and a week later it seems to be making all time highs once again. my sense is that will happen again in amd. >> do any of these chip stocks, karen, look like values? and they may not look like values just on the surface in terms of their pe numbers but in terms of maybe the guidance, they can give guidance that's pretty decent compared to other companies in other sectors >> yes, so just the valuation, though, to me, i mean, amd, that was a great quarter. good for them, it's only down that much. i mean, they're a victim of their own success. that run was just extraordinary. tex, that run also not as much as amd, but you know, it's expensive to the market. it's expensive to itself, so i really -- i mean, if i had to pick value, i would look at intel.

that doesn't mean i would pull the trigger because i think that's going to be a long time to turn around, and you know, i'm thinking of it, should it be in the ibm camp where, you know, it is cheap. it absolutely should be cheap. intel i think is better than ibm. the whole space, i don't know, just is too expensive for me >> should lisa su be worried about pat gelsinger? >> of course listen, lisa su knows what it's like to feel like the underdog, and she just really dominated over the last five years, and so i think that gelsinger, you know, he's going to have a nice honeymoon period they're going to be able to -- i don't know, resort the decks if you will they made a lot of acquisitions over the last few years, mobile eye, altera, there were a few others there in the gaming space, crypto and all this sort of stuff they have all the pieces of the puzzle here. he's kind of doubling down on the manufacturing.

i think a lot of people see that as maybe something they would have liked them to do. the fact that they said they're going to kind of stay the course and get things right makes the value that much more interesting. to me when we're talking about this name after they reported i think late last week, we said listen you may see a gap bill back towards the mid-50s you probably have very good valuation support and catalyst support going forward with the new management i think tim said something really interesting about nvidia. here's another name that has literally been going sideways over the last four months, has not made a new high since that september 2nd high they're not going to report for a few weeks, though. this is one that i think you got to keep a very, very close eye on i think the semis are kind of over owned right here. i know there's some massive chip shortages which is going to be a huge tailwind going forward. i think the valuations are stretched. probably love to see the whole space come in a little bit and set up for a move coming out of q1. >> coming up, a regime change on wall street. tom lee joins us with his take on the reddit rebellion and why

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welcome back shares of starbucks on the move after earnings let's get to kate rogers who's got the details. >> hey, melissa. a mixed quarter for starbucks, a beat on eps and a miss on revenue for q1 across the board, the company's same store sales were a bit lower than anticipated as covid continues to resurge around the country and the world. global comps down 5%, in the americas down 6%, in the u.s. also down 5%, and in its second home market of china, a bright spot there, same-store sales climbing 5% for the quarter. lower transactions at stores were boosted by higher average tickets. that's across all of its markets. the company also lowering its eps guidance for q1. starbucks announcing it has 21.8 million active starbucks rewards members. that's up 15% year on year and an important part of its growth plan the company is realigning its portfolio leaning into those new customer preferences with things like drive-through, mobile order and pay, curbside, we expect to hear a lot more about thaton the call that's underway right

now. and one of the people that's been leading that consumer effort, ros brewer is leaving the company, the coo leaving starbucks at the end of february taking on another ceo role at a publicly traded company that has yet to be named. brewer was former sam's club ceo so has both restaurants and retail experience. it's going to be really interesting to see where she heads next from here and starbucks ceo kevin john on will join "squawk on the street" tomorrow morning we'll bring you any headlines we get from the call, back over to you. >> kate, thank you. tim seymour, what'd you make of this quarter? >> look, the china growth is incredible, and remember when that's all we cared about with the growth stories and we'd look at, again, plus 5% in a very, very difficult environment they're going to gross same-store sales in china 100%, 160 new stores a lot to be excited about and frankly have reiterated ''21

guide. the thing i'm most excited about is the mobile is 25% of sales where it was about 17% coming in so with all of that is the loyalty dynamic and the larger ticket sizes that we've seen starbucks continues to be able to have pricing power in a competitive marketplace. look, these numbers were as expected, and i think we'd gotten a guide on that. >> yeah, karen >> yeah, well, a little disappointing on the americas, but i think it's really not-- it's sort ofdelayed gratification here because i think those numbers will come back, and i agree with tim that 25% mobile, that's the crux of the story there. i mean, so that's tremendous growth, and i think we will end up seeing it all that said, though, the stock is expensive, expensive to itself, expensive to the market, so this is one where i really have to think about, you know, do i sell this in favor of something else

>> it's interesting, i mean, tim mentioned the full year guidance is in line, but they guided lower for the second quarter it feels as though people are trying to figure out and make sort of heads or tails of this i think the story is still intact the problem is as karen and tim mentioned is valuation at these prices, i think basically we gave back what the stock was up today i'm going to be interested to see how it trades tomorrow i wouldn't be surprised to see the stock close higher tomorrow to be honest with you. i think tomorrow's your tell, so gave up what it gained today let's see how it trades tomorrow. >> yeah, it is surprising, you know, in terms of where it's positioned that it didn't see worse declines given the renewed lockdowns, you know, in the past quarter, dan >> yeah, no, it's a great point, mel, and i would just say this is purely anecdotal. living in new york city there's a starbucks on every other block, literally on every other block, and i just know that there's going to be a big push,

there already is, to just buy local and support your neighborhood places. so you know, that might be something that we see as small businesses really need a boost coming out of this pandemic and maybe that's something that kind of hurts a starbucks where in many metropolitan areas in the united states, they are massively over stored. i get everything tim is saying about pricing power and the digital and the ease of use and all that sort of stuff maybe that's one thing that kind of hurts north american comps in the next year or so. >> we are just getting started here on "fast. here's what's coming up next. is there a major regime change happening on wall street? what all the action on reddit says about the rise of the retail trader. and later, we're counting down to facebook earnings. why one options trader thinks investors will be hitting the like button in a big way we've got that and a lot more enfa meyrerns.

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welcome back to "fast money. shares of gamestop, surging after hours. of course it is. the move coming after tesla's ceo elon musk tweeted gamestonk with two exclamation points with links to the reddit thread our next guest believes the stock's epic move will signal a regime change on wall street tom reed, the newest cnbc contributor. welcome to the family, welcome to "fast money." >> yeah, thanks. i'm excited to be part of the family and now you guys will teach me that secret handshake for free drinks. >> yeah, offline we'll do that tom, is there a regime change going on >> yeah, i think gamestop is telling markets there's a really

bitter pill to swallow right now, and i think it's the same pill that the bond market had to take in 2011 and if i could explain, it's -- you know, i think for the last ten years out of the $3 trillion that people saved, 94% of it went into the bond market, which means today households are synthetically short stocks i think now some of that money is flowing into equities, and when money comes into equities, it really lifts all boats, and so i think the fact that we've got a class of retail investors armed with cash and i think they're going to get more cash and over the next ten years it's potentially 3 trillion in cash, it's going to change the dynamic around stocks and potentially valuation. >> can you extrapolate what this might mean to the broader markets, tom because right now we're seeing it in a handful of stocks, which people may not be trading in whatsoever, maybe inadvertently in through various etfs,

et cetera, beyond a gamestop, beyond blackberry, beyond irobot, beyond all of these heavily shorted stocks that have seen wild rides, how does this impact the broader markets >> i think in general p/e is going to go up i can give you a very concrete example. triple c bonds in 2011 were trading at 10%, and that's a historically low yield for a very junky speculative great bond jpmorgan there was no researche issued on triple c bonds today those trade at 7.5%, they've actually rallied monstrously further, and 7.5% is about where investment grade bonds traded on average for almost 30 years. speculative grade bonds have become the new investment grade in terms of yield. well, i think that's what could happen in equities we could see a stratification of p/e, and i think overall if people think 20 p sl/e is

expensive, it took people out in stretchers who thought bonds were expensive in 2011, for ten years they got even more expensive. i think p/e could be a lot higher that's why you want to be synthetically long stocks for a while. >> when do you think your colleagues on wall street -- and i use the term colleagues, other strategists, other investment professionals -- will acknowledge the power of this class of investor? to date it seems like there's a little bit of condescension. this is crazy, this is mob mentality. these people don't know what they're doing, they may not do their research the fact of the matter and i'm speaking from their perspective, the fact of the matter is they've made a lot of money on gamestop and a lot of these stocks if you take a look at the other stratospheric rises we've seen in the past couple of years, whether it be a bitcoin or a tesla, the retail cohort had gotten these stories right from the beginning, even as wall

street turned their nose up. >> absolutely. i'd agree. first of all, the wisdom of the crowd means price is what we have to understand i think a lot of people think their businesses, oh, i can tell the stock market what to do. they cannot. the stock market is telling us the signal and if someone who's a professional investor thinks only fundamental investors trade. that's a mistake for the last ten years, the average stock was held for 40 seconds. no one can tell me that a professional investor is fundamentally deciding every 40 seconds what to do i think the majority of markets is based on expectations of the future the retail investor is having a huge impact. of course it's going to create inefficiencies e. people have to understand this is a wake-up call it's a bitter pill to swallow. i think overall it's a very good force, but you're absolutely right. bitcoin is a great example of

nonprofessional investors discovering a market it's now proven to be pretty valid, and what are we seeing this year? institutional investors are buying this hand over fist in huge amounts they could have bought the entire supply of bitcoin, you know, in 2016 for 1/100 of the price. >> thanks for being on, tom, and congratulations being part of the team we're lucky to have you. so you've been bullish, rightly so, since i think mid-march. is part of your bullishness based on this p/e multiple expansion, or is it based on the e expansion from a recovering economy? >> karen, it's a fair question, and i think that it's two mechanisms last year we thought s&p earnings this year could be $193, which is about $20 above consensus, and if you look at how first quarter's tracking, it is about 25%, so i mean, right

now earnings are tracking to be over $200 in the s&p so i think there's a huge operating leverage story unfolding along with pent-up demand, and then on the multiple side, yes, i think, you know, we've gotten used to saying, oh, well, faang can trade at a 30 multiple, but everything else should trade at 10 or 15 i think the rest of the market is rerating, and i think faang can obviously see risk premium fall further so multiple can expand i think the overall markets multiple is trending higher and unless retail literally disappears because of regulations, i think you're talking about a multiple that could be, you know, a 30 something p/e on the s&p. >> you know, tom, a lot of people who look at what's going on with reddit and, you know, sort of dismiss it or say this is just a passing fad, they say it's going to end badly. so from your perspective, how does this end? >> well, i think that in just

broad numbers, i think $6 trillion could come into equities from households remember, households control $100 trillion of net worth in america. there's a lot of money, but a lot of it's in cash. they put $3 trillion in the last year into bonds, a big portion of that could come into stocks over the next ten years they're going to probably save another 3 trillion, and if the majority of that goes into stocks, that's 6 trillion the stock market hasn't seen that kind of inflows probably in 50 years, so i think that we are in a time where the equity market is becoming the new bond market it's a better source of preserving capital because bonds are much riskier to inflation. you know, you're almost earning nothing in yield whereas you can buy dividend stocks. so i think the equity market is going to become a lot richer, a lot more stable, and congratulations to all those people making, you know, seeming fortunes overnight it's amazing. >> it is amazing tom, always great to get your

thoughts thank you, tom lee, the newest cnbc contributor you know, a side effect of all of this, and we have made the point if all of these people in gamestop lose their shirts in this, this is a cohort that may never come back to the market. the corollary to that is if they make a lot of money, other people on the sidelines holding all that cash that tom was talking about could be incentivized to go into the market guy because they see that maybe the little guy can actually win. >> yeah, it's a carry-on effect of what we talked about about last year. i think we were one of the first shows that started talking about the gamification of the stock market when there were no professional sports and a lot of those people that typically would bet on sports found their way to the stock market. you know, we talked about bar stool dave, i think this is sort of 2.0 of that listen, you want people to make money. we obviously want everybody to do really well i think it's a tad terrifying,

though, when somebody like elon musk makes, you know, an offhanded tweet like that. there are people that will make money on the become of that. there are also people that are going to get buried on the back of something like that i don't think you should be glib in this environment. i know in the last 14 years, we haven't been, and we won't be, and you know, i just think at this point of a name like that, it's much more than just retail people getting in. i have a buddy of mine, ex-goldman partner texted me this is reminiscent of tilray when you saw that move i think this is more indicative of funds blowing up more than the retail guys and gals having their way with the stock market, with an individual name. >> gamestop is up 45% after hours right now. if you think your portfolio's immune from these wild moved we've seen in names like a gamestop. you might want to take a close look at what you own take the xrt retail etf, for example, it is up nearly 17% in a week you might think that the top

holdings in a retail etf are names like target, macy's walmart, gamestop is carrying the most weight at 3.5% followed by maglite, blink, and the real real dan, you flagged this earlier. that's not what you think of typically when you think of retail these names. >> not at all. i mean, tim and i were having this conversation. he actively manages an etf of stocks in a sector he knows well it makes a lot of sense. when you have these things in an xrt, this point right here where you have all of a sudden game stock is going to open tomorrow, it's going to be 6 or so % of the -- percent of the xrt and it comes back to knowing what's in that etf that you're trading and how it's operating to me this is in the hands of those short squeeze people this is not really indicative of a broad retail basket trading on fundamentals, you know and so listen, i don't get involved in these names like

gamestop and everything. i think that was a fascinating quote that tom had about the average stock was held for, i don't know, what do you say, 40 seconds or something like that high frequency trading has taken over if you do want to play these names or define your risk or something like, that i would wade into an xrt, i would look to put spreads or something like that that's one way to do it without getting too caught up in the frenzy. >> blink is a charging company, and it is up 659% in three months, tim. >> well, again, you know, tom brought up regime change, and i don't think he was really talking about this i think he was talking about retail money on the sideline, and so we spend good time the last couple of days, a fair amount of time kind of surrounding this one flows over pros or little guys and gals against the hedge funds. yes, on some level, and i mentioned you live by the sword, die by the sword a lot of short sellers get very

vocal out there in the press to state their point. i think you have a case here where what we're trying to do tonight is really articulate the risks. i ultimately as an investor believe that, you know, this rip tide is something that you wait it out, and again, you don't fight it now, in some of these names that all those cliches we've heard about people remaining solvent or not being able to remain solvent as the market becomes irrational the point i think we want to make about the xrt is it's outperformed the s&p by 34% since mid-november that's not a statement per se on how healthy the consumer sector is we spend a lot of time talking about discretionary retail or big box or things that are doing very well, but i think our point here is gthat the xrt, which isa massive, massive etf is now something that i think actually you want to wait out the rip tide, i actually think there's an opportunity on the short side, you know, and i don't think you're going to get taken

out to the wood shed define your risk, do your work only invest what you think you can lose, but i think the move here in retail as a class in that etf and i think dan is saying that as well. >> yep >> coming up, we will get more on this reddit rebellion, you'll hear from one former s.e.c. lawyer who says regulators are about to come down hard on all this action. that is coming up at the top of the hour. beyond belief, the news that sent shares of beyond meat bubbling to its hight vel eslein nearly two years, the details when "fast money" returns.

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welcome back to "fast money. beyond meat topping the tape today soaring about 18% after announcing a partnership with pepsi to create and market new plant-based snacks and drinks. drinks the highest level since july 2019 in today's session. karen, snacks and -- snacks i get. drinks i don't know >> yeah. i don't know i mean, so beyond meat i really do believe in this secular change here, the valuation's much harder to get around, but they've done a really good job of building partnerships and to

their credit because, you know, even though one of the bear cases has been what about competition. there's so many others who could come in, they have secured a lot of spots that it's going to be hard to dethrone them unless they really screw up so good for them that's a big partnership i can't get close to the valuation. i'm just -- i'm going to have to wait until oatly comes out and see how that trades, and i don't know maybe there's value there. but good for beyond meat a tremendous job. >> oatley is plant-based but it's made out of oats. beyond meat makes fake meat. i'm trying to understand this. i could imagine alternative meat jerky maybe but a drink? >> you really -- on a night where we have a two-hour show, you really shouldn't plant that seed in my head. it's not particularly fair of you, number one. number two, if you do recall ever since the taste test we did

for beyond meat, i've said listen, this is not my cup of tea in terms of product, but i love the stock it's up to 221 today, that's the good news. it closed at 190 or so i think you got to stay with it. with pepsi's distribution network and probably more deals to come, you're going to see moves like this again. it does make sense if you've been in the name to sort of pair some risk down and look for reentry point. coming up, twitter takes flight. the news that sent the little bluebird flying today. alth a me enfal atndorwh "st money" returns

welcome back to "fast," breaking news on walgreen's. let's get to kate rogers kate >> hey, melissa, we told you that starbucks coo rosalind brewer is leaving the company at the end of february. dow jones citing sources saying that brewer will be headed to walgreen's and will become its ceo and that an announcement could come as soon as this week. brewer having extensive experience, time at starbucks and now according to dow jones heading over to walgreen's. >> we can see walgreen's shares

moving higher in the after hours session. tim, what do you make of this move >> ilike this move i think with walgreen -- i like walgreen's as a company that may be starting to go through that inflection point this is a company that people have been waiting on a long-term strategy it's a company that made a bunch of acquisitions including village m.d. and there's some sense they're going to get into the evolving health care space, and the digital health care space. they've got a number of tech initiatives inside of walgreen's they have $10 billion of health care investment, so i think there's a lot of intrinsic value here and a lot of opportunity. it sounds like you've got a ceo coming that knows exactly how to push some of the digital buttons and knows how to handle the very unwieldy, you know, platform they have. so it's a company that's been doing nothing for a long time, and i think this is the beginning of a turn. >> yeah, if we can make prescription drugs as easy to get as a latte, karen, i think that would be major.

>> yeah, i mean, walgreen's and cvs have both suffered from, you know, fear of amazon just, you know, taking business and never giving it back, but i actually think when the vaccine distribution becomes more prevalent that the walgreen's and cvss of the world will have an opportunity to get that customer back. the p/e at 10 and change, i think it's attractive. it's worth a look. it's a good hire i like it. >> all right up almost 4% right now. ready to rally, another big cap tech stock is ready to report tomorrow. we'll bring you the trade. stick around for a bonus hour of "fast money. if you've got an investing question tweet u us @cnbcfastmoney. we'll be back right after this

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options imply a 6.5% move in either direction that is in line with what we've seen over the last four fiscal quarters the trade that really jumped off the tape to me, so 17,000 of the 300 strike calls traded and 7,500 of the 320 calls traded but a portion of that traded as a spread, so the jan 29th, 30,320 call spread traded at 3.15 the stock will finish above 303.15 or 7% higher between now and friday risking one to makes sense to make six for that you're getting pretty aggressive risk rewards, pretty interesting trade i thought. >> it is sbinteresting. we'll be watching that for more options action tune in to the full show friday 5:30 p.m. eastern time. meantime, already it's time for the final trade. let's go around the horn tim seymour. >> yeah, again, the margin -- excuse me, the mobile business

with the high margin attached to it, 25% is the reason why whatever weakness here in starbucks is stuff i think you should be looking to add to. >> karen finerman. >> yeah, so we just talked about that ros brewer hire at walgreen's i like that. it's up a bit. >> dan nathan. >> yeah, amd good results, nothing to shake a stick at there. i just suspect you see the smh come in a little bit that's the etf that tracks the semi groups, so smh i'm looking for a 10% pullback. >> you've got such a cheshire cat grin on your face, guy i can't imagine what's going to come out of your mouth go ahead. >> in my head i'm trying to figure out how much time between when we cut for break until we start the next show. >> you've got two minutes for a break. >> how much time do i have, and can i make it back to where i

need to go in time that's the question. nasdaq reports tomorrow before the bell if you do see any weakness, i think you should buy it. nasdaq is a monster valuation is reasonable. >> there are millions of viewers out there just shaking their head, guy. that does it for this hour of "fast money. stick around, we've got another bonus hour coming up don't go anywhere. much more "fast" right after this ♪ ♪ options action is sponsored by think or swim by td ameritrade ♪ ♪ ♪

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stop paying too much for your prescriptions. hey, there, "mad money" fans, cramer is off but you're in luck because we have a bonus hour of ""fast money" the trading frenzy creating big waves. get ready for a regulatory crackdown and twitter takes flight the stock soaring. what is behind the move and we want to hear from you. we're answering your questions about the hottest stocks you're trading now. tweet us and we might answer your question live on the air. your traders tonight, welcom