welcome back new american investors on this "fast money" special report. we are dedicating a bonus hour to help you with your trading goals. on the big show tonight, virgin galactic and the under the radar rocket stocks you should know about. a market titan calling bitcoin better than gold your questions on blackberry, digital payment stocks and more. plus of course this. hot stocks robinhood, reddit, citadel and melvin get grilled ever wonder what really happens to your trade? pick it up, pick it up, pick it up the ceo of lordstown motors. >> hey there, i'm melissa lee.

jim cramer's off tonight along for the ride this evening, brian kelly, delano saporu and anthony pompliano, aka pomp. citadel's griffin, reddit's huffman and of course roaring kitty himself all getting marathon grilling by house reps. in case you missed it, kate rooney recaps where a lot of the focus was directed kate >> hey, melissa. there were some tense moments and a lot of people forgetting to unmute. robinhood's ceo, though, got by far the most air time and congress really dug for my motives behind robinhood halting those trades in january. vlad tenev repeatedly denied he was on the side of the hedge funds. >> robinhood's securities put the restrictions in place in an effort to meet increased regulatory deposit requirements, not to help hedge funds. we don't answer to hedge funds we serve the millions of small investors who use our platform every day to invest.

>> tenev did apologize to customers, calling what happened in january "unacceptable." he also defended robinhood's business model tenev said payment for order flow or essentially selling customer trades on the back end is the reason they can provide that service for free. robinhood was also asked about pressure to meet capital requirements and highlighted that it could have been a much bigger issue than we thought >> if there was forced liquidation at the very least it would have resulted in a total lack of access to the markets or your constituents. not just to the 13 securities that we restricted buying in >> right so this would have been an enormous catastrophe for robinhood, correct >> that's correct. and not just robinhood but the over 13 million customers that we serve >> finally, there were a lot of

questions about robinhood's role in making investing like gambling or like a video game. the ceo says they don't consider what robinhood provides to be, quote, gamification. they take investing seriously. melissa, back to you >> kate, thank you kate rooney, who's been on top of this story from the start of course the reddit community following along and at no loss for words. steve kovac has been parsing the comments steve, what did they have to say? >> oh, boy reddit itself didn't get too much attention in that hearing but boy, it was like the super bowl for them in the reddit communities, especially on wall street bets. a lot of praise for what we're hearing from roaring kitty hilarious memes. everything you'd expect. especially when he came out and said he liked the stock and that he was going to hold on to it and really put forward his investment thesis. and then when it came to vlad, not so much. a lot of things i can't tell you on national television what these redditers were saying about him but a lot of anger

still directed at him for restricting those shares, trades of gme and amc of course >> yeah. so there was anger directed toward him i guess that they didn't either accept his explanation of why they had to shut down, which was basically to stave off a broader market shutdown and they were still angry at him >> yeah. that was not good enough they wanted to trade as much as they wanted to trade and the reddit community has not given up on their anger against poor vlad >> you've got to wonder if they're going to stick with reddit at this point -- i mean excuse me, robinhood at this point or move on to another platform steve, thanks so much for rounding it up for us and i appreciate you sort of censoring those comments because the language can be colorful to say the least on these platforms pomp, i'll go to you what did you make of this hearing? it was almost like a dog and pony show. the questions were good in terms of every congressperson said i am concerned about my constituents and their ability

to trade and protecting them, et cetera, et cetera. did we get answers >> i don't know if we got so many answers it was definitely entertaining the two real issues i kind of took out of this were, one, what are retail traders allowed to do in terms of research, communication and actually trading and then two is what constitutes market manipulation and what doesn't i think that what we've really got to have a conversation about here is if we allow for wall street to put out research to short a stock and then announce it and then close out trades when the stock goes down, whether the allegations are true or not all these things can be considered market manipulation just like we're trying to levy that against literally kids who are sitting at home in their home who are talking on a forum. and so i think we just have to have a real conversation in this country about do we want the little guy to have a seat at the table or not the american dream should be that anyone from anywhere can come to the united states and they can sit and they can participate in our financial markets and have the ability to drive returns. so if you read kind of the

roaring kitty story he was literally unemployed for two years and he was trading and he was able to actually drive a financial return he's a good investor and if you look at the research and the investment pieces that he laid out it was a good thesis and he ended up being right and wall street was wrong. and what we can't do is we can't just say if you wear a suit and tie or you wear cologne all of a sudden you get some sort of right to profits that the person at home, the retail investor doesn't have a right to. so i think that's the question we've got to ask we've got to really just answer that and once we know the answer that's when we can go ahead and figure out what the regulations should be. >> i think what's interesting in the broader discussion about the retail investor, b.k., is it is a notion that the retail investor needs some sort of protection different protections from other traders or investors in the market when everybody -- i mean, you can be taken down by a bad trade no matter who you are. >> precisely so absolutely. i don't think the retail trader needs any more protection than

the institutional trader because there's plenty of stories, wall street's littered with the stories of hedge funds that have blown up, that have gotten themselves in trouble. that's the name of the game when you're investing and i don't think you need to restrict the fact just because the trader is smaller in size in terms of number of dollars doesn't mean they're any more or less sophisticated. it's kind of the same thing with qualified investors going into hedge funds. if somebody has three ph.d.s and is incredibly smart but makes $23,000 a year, they aren't allowed to be into a hedge fund because they don't make enough money even though they may be smarter than everybody who's even running the fund. these are the things that we do have to resolve. if you want democratization of the financial markets which i think is essential for a capitalistic society then you do need to have everybody have a seat at the table. now, the only last thing i would ask is pomp brought up if you

wear a suit and cologne. does this mean that redditers don't wear cologne and should i be shorting cologne stocks because that's going out >> if there were smell o'vision then maybe we could figure that out. delano, i will go to you on this there's that line of questioning about the gamification of trading. and this is sort of a movement that we've seen in every aspect of our lives for whatever transaction we are making online, whether it be buying a sweater to placing a grocery order, it's easy you can do it from your phone. you press a button you're done. congratulations, your order is placed, it's on its way. it's an immediate gratification. is there anything wrong with that in your view? are people so -- i hate to say it dumb but confetti is going to make them place a trade >> i would be the last person to call people dumb on that but i will say what i learned was where does the burden of literacy lie so is it with the institutions where people are making these

trades to educate people to make sure they're fully aware of what's going on, the risk that they'll take, or is it with the people that are making these trades that are fully aware and if they are fully ware of everything that's going on, especially even if it's gamified or not and they're okay with the risk then they can jump in that. i think when you look at it, you look at history, other examples, i think in the previous show was brought up what happened with it was actually mcdonald's cup of coffee, what happened there, you know, we usually say that the institutions have to educate people, make sure they're fully aware of what they're doing, especially if it's something where it seems so easy but do we allow people to understand that okay, you're making something that you're risking your real capital, risking real money, if you're aware of that then go ahead and could do so. but i this that's something we have to be fully aware of. and i think the situation we've all beaten up on robinhood, i will say net positive there's a good thing where they brought people onto markets. i know when i talk to friends who are younger i know if they're trading they're doing it on robinhood, whether it's minorities or younger people, millennials, if they have an account it's on robinhood.

that's a positive in the sense they brought people that generally didn't think that they had an opportunity to do these things, to invest, they thought it wasn't for them, they were brought on, but now it's when they're on the platform what happens after, are they educated, are they learning as they go, are they getting the proper care, and that's i think something we all need to look at >> and does the system serve them anthony, i'll go to you on this question in terms of the plumbing, that's sort of the less sexy part of this whole thing but that was certainly a big component of this congressional hearing are there things about the plumbing of wall street that you think should be looked at at the very least if not changed based on what we have seen >> yeah, i think that it's just naturally going to get disrupted. right? we're talking about electronic assets that get traded around on multiday settlement times but you've basically got high frequency traders and retail traders that are acting much faster than that so you have kind of activity that doesn't match the system's parameters so i think naturally what we're going dove is we're going to have to rip it up, replace it with something that's improved i think that that opportunity,

though, where real disruption is going to occur is we're going to see this moving to a highly automated financial system i personally think that's going to happen on these decentralized open protocols that we see being built in the crypto world. but the authority answer is the current system doesn't work and there was a -- it was exposed for being not sufficient you know, during this whole debacle. but where we kind of go from here and what the new system looks like, i think that's where the opportunity is and that's where the debate is. >> all right for more from a congressional perspective let's bring in representative ro khanna, silicon valley's lawmaker in congress congressman, great to have you with us. thanks for joining us. >> thank you for having me >> what did you learn from this all? >> well, we didn't have sufficient answers we don't know why it is that robinhood didn't have proper disclosure i mean, why couldn't they anticipate that they may have a capital requirement and have gotten loans or guarantees for that or they should have disclosed to their retail investors?

i also thought that they should have asked more questions of the one retail investor there and there wasn't sufficient attention on the disadvantages to the retail investors. >> in terms of the disclosures, what sorts of disclosures are you talking about? is it just a more advanced notice before that capital call came in to robinhood because it seemed like things spiraled out of control so quickly that they disclosed and they did what they did as quickly as they could have so what sorts of disclosures are you talking about? >> sure. well, when people sign up on robinhood, they don't know that robinhood, if they have liquidity issues, may stop them from trading, especially when they're trying to buy things so robinhood either should disclose, saying if you're a customer of ours there are circumstances where we're going to halt trading and here's where we're going to do it or what would be better is if they had like many other financial institutions the proper arrangements so that they

have access to capital to cover a situation like that. >> based on what you learned today, if you did learn answers to certain questions, is there a pursuit of legislation at this point? it seemed like there was a lot of grandstanding and i understand that's what congress does in terms of wanting to protect your constituents and asking the certain, quote unquote, right questions. but ultimately at the end of the day what's the result of this? >> well, several pieces of legislation. we should have these disclosure requirements that i'm talking about. we should have capital requirements for companies like robinhood. we should make sure that the clearinghouses have clear conflict of interest standards so that they're not having a different set of rules for hedge funds. and we should have conflict of interest laws for companies like robinhood. as you know, they provide a lot of their data to citadel now, i don't think there's any evidence, and i didn't hear any evidence today that leads me to believe that there was some

conspiracy between citadel and robinhood. but there are conflicts of interest and those need to be better addressed and those are all areas for regulation >> all right so it's brian kelly. i'm curious, the issue that we're having in big tech, and since you're from silicon valley-s you all have these terms of services and everybody just hits click and moves on so how would that be different if robinhood said oh, by the way, you know, we might shut down trading nobody's going to read it. they're going to hit click and move on. so how does that solve the problem? >> brian, you're actually -- that's a very fair point these terms of services don't mean much. and that's why i think it has to be informed consent. it has to be in simple language. it has to be in plain language and it has to be things that users can understand and it can't be conditional for the entire service it can't be these 40, 50-page agreements but i agree with you that the terms of service or the type of consent for data has not worked and we need to do much better. i take your point.

>> congressman, great to get your thoughts. we really appreciate your time good to hear from you. >> thank you >> congressman ro khanna of silicon valley delano, do you think that anything should actually be legislated into law at this point? >> that's a great question and i think what we're seeing is a lot of people angry and upset on both sides. i think the conversation needs to be had on how we can have better transparency and better literacy for investors, especially smaller investors you know, my firm, we serve smaller investors. and a lot of them have been trading -- a lot of them are newer to this. i know from my standpoint i started trading when i was 20. i'm 31 now there's a lot of things i learned along the way. that would have probably been better said if they were talked to me or someone had -- i know we talked earlier in the show if there was education in schools i think there should be some level of education that's put out there. as far as legislation i wouldn't go as far as to say how that's going to be put in place but i do think we need to have investors that are educated so we can understand the plumbing

behind this. now, if i talk to friends, they wouldn't really know that there's two days for your stock to settle or they wouldn't know payment order flow but if you have literacy more expounded from a place of centralized where people can get very good information i think that would be a very good thing for investors. >> yeah. anthony, what are your thoughts on sort of legislating this? because fact of the matter is as vlad tenev pointed out during his testimony, there's plenty of resources on the robinhood site itself, across the internet, for how this all works, how the markets work, how trades work, et cetera. and if people choose to read it great. but for the most part they don't. that's their choice. that's on them, though >> yeah. i think, look, we're watching the financialization of everything really from collectibles to stocks to crypto to a whole bunch of different markets so naturally what we're going to see is kind of the retail investor is going to continue to put money into all these markets. it is an absolute national emergency, the lack of financial education that goes on in our schools. it's one thing we should address

on a national kind of bipartisan basis. but i also think that what we need to do is when we look at markets right now we use wealth as a proxy for intelligence. that doesn't make a lot of sense to me. so if what we can do is we can switch to an education-based system if you can go in almost like an s.a.t. in a watered-down format and say listen, you took a test, if you understand markets knock yourself out, invest in whatever you want, you're educated. 23 we kind of move toward that education model i think not only will we have efficient and safer markets but actually people will do better in the market, which is the whole point of what people are trying to accomplish with regulation. >> still to come, we have many, many more trading ideas for you coming up. the new american investor. plus an explanation of that plumbing that delano was just talking about. but first, jeff gunlock saying bitcoin could be better than gold we'll explain why. plus they're looking to become the tesla of pickups before tesla and now copying tesla's own sales playbook lordstown motor's ceo steve

burns joining us in a few minutes. "fast money" back in two >> a few things i am not i am not a cat i am not an institutional investor nor am i a hedge fund. i do not have clients and i do not provide personalized investment advice for fees or commissions. i'm just an individual whose investment in gamestop in posts on social dia reas omymewe bedn own research and analysis. sarah, did you know geico could save you hundreds on car insurance and a whole lot more? hmm. so what are you waiting for? captain ahab to help you find a parking spot? thar she blows!

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there were a series of steps that the robinhood securities team took -- at that exact moment did you have the liquidity for 3 billion? 5:11 a.m >> at that moment we would not have been able to post the 3 billion in collateral. >> welcome back to this "fast money" special, "the new american investor. bond king jeff gunlock

suggesting bitcoin could be better than gold he tweeted "i'm a long-term dollar bear and gold bull but have been neutral on both for over six months. lots of liquid poured into a funnel creates a torrent bitcoin may be the stimulus asset. doesn't look like gold is. gold etf gldse outflows, the performance of the gld has been rangebound for the past year we've got two bitcoin bulls on this panel i don't know what other answer i'm expecting. but b.k., what do you think of jeff gundlach's comments >> welcome to the party, jeff. listen, jeff's a real smart guy. and i talked to jeff a while back about bitcoin and he was kind of interested in it and i think what you're seeing here is this institutional acceptance of bitcoin that's been exacerbated by this divergence between bitcoin and gold just a note on gold, the reason at least in my view that it has been underperforming is the trade on gold was negative real

interest rates so the inflation rate minus the ten-year so as the ten-year gets closer to 2%, which is roughly the inflation rate, that negative real rate starts to decline and the reason why you got into gold was -- the catalyst kind of disappears now, bitcoin will ultimately in my view take on some of those macro characteristics, but it's in this period, this commodity digital gold era, where it's really just being accumulated, which is part of the thesis on bitcoin from a long time ago, is that as this becomes a new asset class you're going to have to have institutional investors accumulate it. so those buyers are less concerned necessarily about the day-to-day macro and more concerned about getting an initial position on. >> we've got more and more institutional investors coming in their wallets are getting bigger, pomp they seem like they are holders of bitcoin, not users of bitcoin. at what point, how does that transition happen from

institutions simply holding this asset to it being actually used as a currency? because that seems to be the next leg of the thesis >> yeah, look, currency basically have two core criteria it's a store value and medium of xhch you need the store value before you have the medium of exchange. i think bitcoin is going through price discovery right now. it's a trillion-dollar asset give or take i think it will overtake gold in the next five or six years and by the end of 2020s we're going to see a million-dollar bitcoin price. kind of 2 x gold's market cap. but that's because bitcoin is a 100 x improvement on gold as a store of value once we get more liquidity there's more utd sxilt you get price stability. that's where you start to see the currency come in but i think one of the key parts that people don't give enough credit to is the community around bitcoin there is a lot of the loud music and kind of the medium videos. you literally have people saying have fun staying poor billionaires on the internet

there's this whole culture people are saying this is in no way a financial asset. but what you're starting to see is the data suggesting this is the best asset right? gundlach literally called it's stimulus assess. it's up 500-plus percent stins the government and central bank stepped in and started to intervene in markets i think people are just waking up to the fact that if you can set aside kind of the culture and the community and just look at the asset and the performance this is serving as one of the best stores of values yue in the world i think it will continue to do that >> the retail trading frenzy is lighting up a darker side of trading. we'll explain that next. plus we're taking your tweets. send us your biggest questions ckn o.try to answer them ba itw

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when the markets go down we have a duty to protect our investors' capital. none of melvin's short positions are part of any effort to artificially depress or manipulate the price of a stock. >> welcome back to this "fast money" special, "the new american investor. ever wonder what exactly happens to your trade after you hit execute? bob pisani's been busting up some drywall to reveal the plumbing of wall street. hey, bob >> hello, melissa. good to see you. you know, with payment for order flow you've got a brokerage firm like a schwab, for example, they're receiving compensation for directing orders and they're directing those orders to market makers like sit del and vertu who execute the trade. the trades are made internally and they're not sent to exchanges. that's key to understanding payment for order flow the fee, the brokerages get from the dealers enable them to charge these zero-dollar commissions everybody likes so much now, at the hearings people like ken griffin at citadel emphasized repeatedly that the key to the whole thing was simply best execution, that's

the obligation to provide the best available price, and price improvement if it's possible griffin emphasized the whole process as very competitive. if they don't provide the best execution, firms like schwab will kick them out they have to provide that. griffin also emphasized one way they can provide price improvement even over stock exchange prices is because they internalize the order. they match against their own inventory. they don't have to send it out to an exchange at an exchange they're going to have to pay a rebate they don't do that they can also bid in subpenny increments the exchanges cannot that's another advantage those kinds of organizations like griffin's have that's the key to making payment for order flow work. best execution hester pierce, one of the republican commissioners, she was on our air today, melissa, on the s.e.c she said commission-free trading was a net positive for retail investors because of the best

execution requirement. so melissa, the key to this whole thing obviously is not examining payment for order flow, it's making sure there's really best execution going on and if that happens, by and large the system seems to work pretty well. but monitor the best execution that's the key >> and actually the number of trades, bob, as you know, off exchange have hit a record particularly as this whole retail trading boom has crescendoed in the month of january. i think it was a record for off-exchange volume for retail trades >> 48% is now off exchange and most of that is because of the increase in retail trading it's not dark pool trading it's retail traders. and those retail trades are not reported on the exchanges. so they're reported -- it's called an off-exchange tape. it's because of the retailers. >> on the flip side of things, though, bob, for a citadel securities, for instance, is it valuable to them because they get to see the flow?

it's data they're after. >> this is what the price improvement is all about remember, it's all about buying low and selling high if somebody wants to buy it, if they have to buy some stock at $793, tesla, for example, they want to be able to sell it a subsecond later at 793.01. but the question is how this advantages the retail investor really doing that. remember, you used to pay $8 commissions. is that worth the trade-off versus somebody else who's out there, another -- giving your order flow to be who can then try to make some money by subsecond intervals trading subpennies on it if you look at the overall trade-off, that $8 commission that goes away versus what you're giving up, providing you get best execution or price improvement, generally most of the people today agreed that it's a pretty good deal for the average investor >> bob, thank you.

bob pisani this is really important to understand because this is actually going on with a lot of the trading platforms. it's not just robinhood. so if you out there are angry at robinhood and you're going to say i'm going to switch to td ameritrade, you're not getting into another situation there and if you want to go on exchange you might be paying higher prices delano, it's like once you let the horse out of the barn you can't get back in. zero-dollar commissions, that's here to stay i would think >> yeah, it is here to stay. and as mentioned, if you're someone who's swing trading or day trading, it's probably useful to know that if you're going against high frequency traders you're probably losing that very incremental gain but again, that's something you have to understand going in. but if you do understand that, you're like my payment order flow is being routed, i understand that i'm getting zero commission because of this, but i'm okay taking that risk. net positive, again, but the low commissions has been good for younger visitors, has been good for people that have been barred -- or felt they were barred out of this industry. but it's just good to have

understanding of what's going on behind the plumbing. and i guess that's where i go to the burden of literacy, is it on the investors to understand this, to understand the incremental exchange or is it on the institutions to provide that for the investors? >> coming up on this "fast money" special report "the new american investor" lordstown motors ceo steve burns will join us next as the ev maker looks to break through a sales wall we'll break it all down when "fast money" returns >> we don't consider that gamification we know investing is serious and we're investing in all of the educational tools and customer support to help people on their investoring journey

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welcome back to this "fast money" special "the new american investor." following in tesla's tire tracks, so to speak, electric vehicle company lordstown motors is seeking approval in ohio to sell its vehicles directly to consumers. it also just announced a large order of 100,000 vehicles. let's bring in lordstown motors founder, chairman and ceo steve burns to tell us more about this all. steve, great to see you again. >> thanks, melissa thanks for having me >> i want to ask you, start out with the endurance, which is the all-electric pickup vehicle. you started to build the beta prototypes with you still on track for production in september and what could be sort of the i'm going to say road blocks, road blocks potentially here >> bumps in the road we're standing up a car company from scratch and we're going right through mass production. so there's a lot but the betas are when you build in betas you're at 97%, 98% of

the final vehicle and we're building those now and they're on track we're on track for september >> will we see the betas will we see the betas actually operational, somebody actually driving the betas, the betas not rolling down a hill for instance, et cetera, elites, to know that there is a vehicle that is actually being built even if in beta? >> we think it's really important to be -- since we are a prerevenue company and we're a public company and we don't have the normal metrics like revenue yet, so we want to leave a lot of breadcrumbs for investors and customers to see so we've been showing the prototype in action. we have a skateboards, kind of a naked chassis without the body on it so you can really see how these hub motors work, and then we're going to be very transparent on the betas as well afternoon automotive company normally doesn't because of course you're going to have -- you're building these to test andfinalize and crash into the wall and of courseit will be hiccups but we're going to show them proudly we're so excited to be at this

point. >> this is a very crowded space now, steve it seems like and everybody their brother wants to be in this sort of business. brothers being rivien to general motors morgan stanley recently initiated conk coverage of your stock with an underweight rating this analyst is a very respected auto analyst i'm wondering if you have any response because part of the underweight rating is he expected that for many years at least lordstown is a relatively small manufacturer that will absorb a high amount of fixed costs and face execution risks, especially when you're going up against legacy oems like a gm or deep-pocketed competitors like a riff yen what would you say to those criticisms because they're very real. >> yeah, i think that's conventional thinking. this is a billion-dollar business typically to get into and typically people are very late in their projections and when a vehicle comes to market what makes us different is first of all our vehicle is very similar to our conventional pickup trucks. we didn't get too radical there. so we didn't have to reinvent

the wheel. very well-known science. so we could focus on our drive train, our battery pack, our software secondly, we bought a 6 million-square-foot plant from gm i think it's the most -- the third most productive plant in the united states. but what's really different is we bought it completely intact and that plant had been making up to 400,000 chevy cruzes a year it's a very capable pact we're building a factory inside of it, our own battery pack, so we can control that cost we're really vertically integrated but we don't have the normal billions and because we're starting with a pretty well-known product if you look at a tesla let's say, they have to start from scratch. rivien that you mentioned, i think their vehicle is from scratch like no other vehicle. when you do that, it is billions and billions, years and years. but to be there first we really want first mover advantage, first electric pickup truck. this is a full size pickup truck. they were happy with the bed and the cab and steering wheel and

brakes we went with all that. >> in terms of the september time frame for full production of the endurance, steve, do you have enough liquidity to get you to there from here >> yep we've been really maniacal about that and we're on track >> steve, hope you keep us posted good to speak with you >> thanks, melissa >> steve burns, the ceo of lordstown motors brian kelly, i know you didn't miss my reference there to nicola in terms of having a car that -- or vehicle that actually works on its own without being propelled by gravity down a hill >> imagine that. not having a soapbox derby car that's just a novel business idea having a product that works. you know, i think it's interesting. there is really interesting things that lordstown is doing they're keeping it simple. but i think what investors need to know, as steve said, this is a pre-revenue company. so if you're investing in this you are betting that they're

going to hit all their metrics and your rhys sak that they don't hit their met kz or they need more capital, as you asked them about, do they have enough money. those are all real risks out there that investors should know about before they get into this car. it may not just be betting on an electric vehicle but you're also betting on the execution of a company. >> particularly when there are other bets in the market that you could choose to make instead, delano. so i ask you that question where would you place your bet, so to speak? >> i like the whole industry as a whole, the electric vehicle market is obviously something for a younger investor and someone that has a higher risk profile you can take bets on i like tesla i've also been invested in neo this is an area i like and i think what you said about the ceo that makes sense, to take a hard look at lordstown as well these are all areas that for younger investors with a high risk profile as mentioned if you understand that metrics have to be hit and if you understand that they're prerevenue but you're going to get behind going through the volatility as a younger investor and someone

that likes to take a look at the high growth possibilities i actually like it >> coming up on this "fast money" special report "the new american investor," a historic moment that is truly out of this world. what it could mean for you the new investor plus we're taking your tweets. we've got much more "fast" after this hi, i'm a new customer and i want your best new smartphone deal. well i'm an existing customer and i'd like your best new smartphone deal. oh do ya? actually it's for both new and existing customers. i feel silly. but i do want the fastest 5g network. oh i want the fastest 5g network. are we actually doing this again? it's not complicated. only at&t gives everyone the same great deal. like the samsung galaxy s21 5g

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welcome back to this "fast money" special, "the new american investor. it is time to take your tweets let's get right to it. >> i've just got a question. your opinion on blackberry

i got in around 10.50 a share before the reddit hype drove it up to 30 bucks i'm at a $15, $20 end of year price target i watched it slowly fall back down, 15 now it's at 11.32 it closed at today. and since then they have released some really good headlines. awarded best in class. the new qnx being released they've deepened existing relationships as well as established new ones i'm wondering if the market's just not responding to the positive news. is it already priced in? >> good question hot stock on the reddit boards brian kelly, what do you have to say about bb >> yeah, i would say it's probably priced in so now you're going to need a new catalyst out there if you had a $15 or $20 target at year end, i would certainly be taking? off if we got to $15 or $20 again. but kudos to you because i've liked blackberry for a long time, actually got

into it around 4 but unlike you i didn't watch it go up. i puked it out below 2 i believe. so you did better than me. but i would say you probably need a new catalyst. all the news is priced in right now. >> we have got time for one more question >> hey, "fast money. this is lamont in nashville. my question is i have $50,000 and i want to put it into a digital payment stock for a long-term investment, five to ten years. would you put $50,000 in paypal or would you put it in square? >> lamont is a high roller pomp, what do you tell lamont? >> look, i think both companies obviously are doing pretty well. they're both into digital currencies but i think square just is continuing to prove that going after deposits and payments at the scale they're doing is really working for them. jack dorsey's probably one of the most underrated entrepreneurs in the world he's built two

multibillion-dollar businesses and the other thing square's doing that i really like is they have a p & l strategy, make a lot of money selling bitcoin but they also have a treasury secretary similar to michael saylor square would be the winner there if i was looking at both of those companies. >> aside from the viewer questions on stocks it turns out that many of you in the redditsphere also had questions about this today roaring kitty's den decorating so we did some digging as we do. we found out that his chair comes from secret lab gaming the average price, 400 bucks his mike, hyperx quad cats, about 140. the cat poster in the background, 16 bucks on amazon red bandanna, $6.75 also on amazon so you could have the kitty's den for under $600 seems like -- i don't know, delano, you've got a nice setup back there but maybe a hanging kitty poster might be a nice addition >> i actually am going to look at that. i need that. i'm looking around i think that would be a nice addition to my spot back there

>> and a red bandanna on the pomp would be good too coming up on this "fast money" special report, "the new american investor," has the red hot space ocstk gotten too high in the sky we've got some answers right after this

welcome back to this special hour of fingequms qums, "the ne american investor. we are counting down to earnings from virgin galactic up more than 300% since it went public in 2019

our next guest says it may have gotten ahead of itself let's bring in cowan senior analyst oliver chen to keep us grounded and what we can expect from next week's report. great to have you with us. >> great being here, melissa >> there's obviously a lot of excitement there's also the kathy wood dynamic, launching an etf that is specifically designated for space investment so i'm wondering how you weigh all of that in terms of thinking about a name like virgin >> well, the long-term opportunity is very unique we view this as an experiential play too and a very supply-constrained market. there will only be about 400 seats a year and based on our survey, 2 million-plus people are very interested. so this is a supply-constrained, highly coveted opportunity, and the seats cost $250,000. that being said, the stock has lifted off, blasted off, gone into to infinity, in terms of being up over 180% since we launched so just acknowledging analytically coming into next

week expectations are high and this company doesn't generate revenue yet we're looking for the back half of 2022, 2023 for revenue. and there's been test flight delays as well there are a lot of steps including safety and scaling that need to happen. and we're looking forward to that we love the new ceo from disney and we think there's a lot of really great r&d technologies and partnerships with under armour, rolls-royce and others that makes a lot of sense for the long term and it's very uniquely positioned. >> in terms of putting the model together, and we know this stock is one of these stocks where you believe in a future vision and you invest, you put it in the top drawer as brian kelly likes to say, you leave it alone but at the same time if we were to sort of crunch through those numbers, 400 seats a year, despite -- you know, could be millions of people interested in traveling to space but if the fact of the matter is they only have 400 seats what does that mean for this company and where does that put the p/e even if they were able to fulfill the 400 seats? >> yeah, in terms of how we're looking at it, 19 times ebidta

sales based on 2025 our published estimates. so you really have to do some unique modeling here since there are no near-term revenues or ebidtas. the other factor is looking for about 1 billion per space port but we're still needing to see the commercial execution of the first space port so as we look forward globally, more space ports will unlock more inventory and more travel the other thing that's happening here is high-speed point-to-point travel. so could there be business travel will there be a supersonic, hypersonic travel? that's a valuation opportunity as well, which is different from commercial space flight. and that's a nice opportunity too. but this is an early stage investment so you're watching for all these factors and scaling and safety first and there's a lot of hurdles. after the test flight there needs to be another flight where mission specialists go on board to test that way

and then sir richard branson and then we'll be ready for commercial space flight. so there's many hurdles that have to happen in advance. >> hey, it's brian kelly so i'm curious, this is one of those stocks that i do think you have to believe in the future, which sounds like you have a very long-term bullish view on it but again, it's a stock. right? so every 90 days, every quarter we're going to get these earnings reports so as an analyst what do you tell institutional investors that are coming in saying i want to be in this? do you say play this quarter by quarter or do you use weakness to load up on this thing for a five to ten-year play? >> yeah, i think you really have to think about the five to ten-year play, the multiyear play in space, the future and what we're building, the space race and the uniqueness of this asset. and also the tremendous global pent-up demand in many countries. quarter to quarter's going to be interesting because what we're going to be asking management is what are the parameters around scaling, can you quantify this,

safety, efforts, and timing and timeline stepping back, this company is well capitalized 740 million in cash. about 68 million per quarter of cash burn. that's a positive fundamentally. but investors really need to understand both sides of the coin, which means that the financial modeling is several years off in terms of revenue and profit generation. so it's about both pieces but a lot of the investors who are in the stock understand these dynamics, or they should in terms of the risk factors. >> yeah. oliver, you know what's interesting about this stock is who covers it. you're a retail analyst covering this stock so that's sort of the perspective that you have. this is a luxury stock in your view so this is not a transportation stock. we shouldn't think of it in that way. is that correct? >> yeah. >> this is like lvnh >> lvmh doing an acquisition of belmond, experience of the

consumer, really looking for these once-in-a-lifetime experiences, joining the club of having travel to space and what that means post-purchase and for your friends and family, these are all big opportunities. and space is the ultimate dream. it's the ultimate experience and it's a scarce opportunity that will transcend, you know, psychological and opportunities and it will be a very special experience that is one way to think about it in terms of the future and what's happening that being said, there's a lot of science and logistics and safety and integrating this together is quite interesting and creative and powerful. and bringing this capital to make this happen is an entrepreneurial feat >> all right oliver, great speaking with you. thank you so much. oliver chen. part of the space port sort of argument, pomp just quickly, we've got 15 seconds. if you're going to bring your friends and family along, you're going to go to space and you want your wife to come along with you and experience some of that i think that's interesting >> yeah, look, i think everyone

wants to go to space we should celebrate these wins, whether it's landing on mars or the space travel we need more people in stem fields >> yep thank you very much. brian kelly, delano saporu, and anthony pompliano. that does it for us and the cnbc "fast money" special "the new american investor. don't go anywhere. "the "the news with shepard smith" starts right now the misery deepens deep in the heart of frozen texas. tonight the crisis and the senator who jetted to the yucatan. i'm shepard smith. this is "the news" on cnbc. >> we supposed to take care of our people. >> the worst case planning of utilities, governments was not enough dozens dead. water undrinkable. and more treacherous conditions are coming >> yesterday my daughters asked if they could take a trip with some friends. >> senator snow bird as millions of texans