Skip to main content

tv   Fast Money  CNBC  March 18, 2021 5:00pm-6:00pm EDT

5:00 pm
steam and that will push yields higher it also is not that uncomfortable for the fed to have the stock market cool off with questions about financial stability. >> interesting to see financial action in asia and europe, big u.s. sell off in the afternoon see if it follows overnight. we're out of time on "closing bell." "fast money" starts now. i'm melissa lee. this is melissa lee. tonight's trader lineup -- guy, karen -- tonight on "fast money" we will tell you why a rush back to eck utahy eck - nike and fedex on the move on earnings, nike call is just kicking off we'll bring all the big
5:01 pm
headlines. starting with another stock sinking stocks finishing at lows, tech taking it the worse nasdaq down 3% action in the bond market rates rocking higher with ten-year yield touching 1.75%, a pre-pandemic high. tech under performed banks breaking out, not just today in fact, that's been the move, the trade over the past month, so is this the winning trade you stick with guy, what do you say >> i believe so, you know, tim mentioned yesterday when he saw the vix close below 20 it was more of a cautionary tale than anything else and that proved to be correct i do think you stay with this trade because i think it will continue i think it will continue because i'm of the belief rates are going higher i've been pretty stead fast on that for a while you will see two percent ten year quicker than people think and will lead to strength we talked about, resources, banks,
5:02 pm
et cetera. it does make sense it's somewhat concerning how much some of the bank names have run. with that said, the rotation out of tech into these names, my sense, it will continue. the vix has been a tell number of times every time it gets to 20 20.5 level at least in the short-term has proven to be a bit of top in the market. >> it's not just about how long they run but regional bank etf is up 35% so far this year, the question is, how much can the overall markets be down in response to higher rates, but the banks continuing to perform, karen, at some point i would imagine something's got to give. >> yeah, i think something's gotta give i mean, for a long time it was they were under performed for so long, there was a lot of ground to make up before they got even close buti think they've made up a lot of ground already i feel like the hard money has already been made. a lot of hard money has already been made.
5:03 pm
this i'm not as excited about. i shorted some kre today, one, i don't want to sell the banks and have a big gain and figure out after tax what to do with money, but i did want to take some of that bank move exposure off the table, to me the carry is a purer rate play. when i think of the money center banks they're doing well on capital markets business which is just booming and asset management business as well. so i wanted to get some of that hedge, so i shorted kre, not a lot higher than where it is right here i think this has been a gigantic run. i know spreads are wider but i always talk about, on the way, when they were tighter -- it's not like banks are one giant twos ten spread. we look and think they are, they're not. clearly higher rates are better. we think about jp morgan moving 70% that's an enormous move since, i don't know, six months ago
5:04 pm
enormous i felt like i got to take a little money off the table, the easier more efficient way to do it. >> two ten spread by the way, widest since 2015. the top of the show, tim, we presented these two moves in technology and banks a i a as a pair trade -- the idea is does tech continue to fall with higher banks going higher do you think it is a pair trade or is this the way markets will go in terms of the continuing rotation. >> well the pair trade, if you are long citi bank versus nasdaq or triple q since november you were up 63%. so you have a case here where it's truly clear, momentum is not a sector. it's not a gig sector. it's not a sub-sector. it's a trading dynamic at some point banks and industrials are momentum stocks, not value stocks i think we're quick to say this
5:05 pm
is value over growth and there's plenty more to go. at some point, look, there's been an enormous run here. i think if you look at some of the banks, bank of america down 30% of all-time highs sweeping delusion around merrill lynch what not you can make an argument that twos tens and 155 still has a little ways to go. although mike last hour did great job pointing out there's a limit how high it could go historically i think for the dynamics of the economy, if you think of where we came from, and the extraordinary tail winds for technology, both covid-related and also going into the covid and then the dynamics around both reopening and then essentially almost a, i don't know, a rehabilitation of industrial sectors, we talked
5:06 pm
about gm but will leave auto alone but there were sectors that were old and stojy in the industrial side and have become their own technology relative to where they were. that's what's really going on. your question, can you continue to do this yes you can. >> i guess the question is has the paradigm shifted in terms of how we see value and how we see growth and in this context where we are right now, dan, are banks still value? >> i don't think so. i think there's a lot of good news price in about the rising rate environment i'm not sure we're convinced we'll see the treasury and that two ten spread stay where it is. there's a lot of optimism. this is the first q1 earnings reports and there's optimism about releasing loss low returns. tim and karen have been on that trade for months and months tracking the economic data and what the likelihood is that they
5:07 pm
will unlock those reserves i think there's a lot of good news in those names right now. as you talk about tech and the diyn dynamic, tech is 30% of the s&p 500 and financials about 10% taking this to the energy trade, it was a huge performer like lock step as we saw rates high er, tech down, money going to energy stocks, financials, cyclicals, that sort of thing. to me you have two groups of tech one doesn't make a lot of sense, apple down 16% from all-time highs in late january, i get why they're selling it i probably wouldn't be selling that, of all of the things that have run over the last year or so then i look at growth tech, high-valuation growth tech crowdstrike we were talking about on the show the night they reported, i think we same almost the same thing we said about zoom a week and half, two weeks
5:08 pm
ago when they reported who is the incremental buyer given what we know about their business and shifts and pull forward in demand. i think you will see high value tech to the down side and large mega cap tech act defensive when they are down too much but i wouldn't be surprised to see banks, financials do what energy has done in the next couple weeks >> let's see what the options market is saying, bonawyn, interesting options opportunity in the banks, bonawyn, what did you say? >> massive volumes in the banks led in large part by bank of america. drilling down, calls are outpacing puts about 2 to 1. if you drill down to volumes, over 700,000 options trade, about three times what we typically see. options are implying 11% move in either direction between now and may which will give you the april earnings ticker that dan mentioned. the trade that jumped off the tape to me, 22,000 of the may
5:09 pm
calls traded about 1.90 breaking even at 41.90 or 108% of current spot massive option volume in bank of america today. >> thanks for that, bonawyn. you know, guy, you know, going back to the value of growth what is value what is growth. remember we unveiled a game called mismatch. >> loved the game. >> mismatched pairs that we had touched on netflix or general electric. seems to really encapsulate where the market is both with forward pe with with 50 low 50 or so, at this point which is the one worth paying 50 times forward earnings for >> yeah, well, listen, i'm a huge netflix fan but given what we're in the midst of i actually think there's more often general electric at this levels in
5:10 pm
interprets of the upside they have -- terms of the upside and the businesses their in and the measures over the last year and half ge, not to cast a spirations, i just think ge is a better stock. by the way i love the game. the music background is one of the best in the 14 years we've been doing this. >> yeah, i know you'll make it your ring tone. markets will be in sell off, next guest say it will happen soon, joining us jp morgan's marco kolanovic, thank you, good to have you. you said stocks will go back to all-time highs can you elaborate what the pace sand the nuance to this move? >> yeah, so, our view is -- mead-term view is market going to 4400. short-term there's interesting
5:11 pm
dynamics obviously the weakness in nasdaq, tech stock, is related to higher yields you know we're now coming into month-ends, quarter-end time period there's a lot of rebalance, one is bond equities portfolios and we think bond you will see inflows into bonds. now some of these portfolios may sell equities which would put on some pressure. however, if yield stabilize and stay lower, you will just see a nasdaq and some of the yield sensitive stocks move high which we think will more than compensate for some of these equity outflows. so basically, in some of these flows, we think actually is going to support both bond market and equity market i wouldn't be surprised in the next two weeks we actually see both bonds moving higher and equities moving higher that's one rebalance there's another one, rebalance
5:12 pm
of momentum factor, whereby there is going to be basically inflows in some laggers, such as energy we also think that sector could benefit. it could be sort of a broad nasdaq and energy moving higher. >> m marko, congrats on your promotion, you made gutsy calls over the year, what do you do with commodities. >> today was one of the largest moves in the past year it's not clear to us exactly obviously, some fears of koerns if -- coronavirus in europe. we think the biggest mark was stop loves on cpa program, a stop on the normal move, but baemly some of -- basically some
5:13 pm
of the trend forward out of position so yes it's been a bit of a setback. we still think reopening is on pace in u.s., in europe might be delayed a little bit, say, two months we have a dollar that is weaker. we have a lot of monetary and fiscal support and believe it's positive for commodity i would be buyer of today's pull back, not just oil but energy stocks which as i mention will see inflows going into the month and from momentum rebalance. >> marko, it's karen, thanks for being on, and congratulations. let me ask you, 4400 how do you get there? higher multiple? higher earnings? or both? >> higher earnings in the back of the reopening we think over the summer we'll get the economy pretty close to normal in the u.s. in europe a bit later. high earnings for sure and multipleim you will see some rotation, depending where the year goes.
5:14 pm
you don't think on the growth, if anything you could have contraction. you could have multiple expansion on these cyclical laggers that have been lagging for a number of years. i mention energy, materials inland industrials and financials already happened and there's quite a bit of dispersion. there's some stock that pick up earnings multiple increase more than others. basically more so on the earnings side than on the multiple >> in terms of your bullish forecast, what is the biggest risk to the forecast, and does inflation, the concern, the worry about hotter than expected inflation, is that anywhere on that list? >> so, it is a little bit on the list but more on the rotation side you know so generally higher inflation is good for emerging markets. good for stocks like energy, materials, inland dustrials.
5:15 pm
that's why we are still overweight on these market segments, emerging markets, because if it picks up that will benefit some of the sectors and hurt a little bit growth although we don't think we'll get some sort of run away inflation that will stabilize all of the market. >> thank you marko mr. chief global market strategietic guy what do you think of the position for inflation and inflation airy environment. >> he believes it will come back in new, all-time highs he's been great. i'm with him on inflation. not on yields. i think yields will continue to grind higher the federal reserve painted itself into a extraordinary difficult corner yesterday and the bond market will continue to test them and i think we will see two percent in the ten-year in the near future and works for
5:16 pm
the bank despite the run, the cyclicals will add moves in some of these cyclical names. john deere, deer and company, last year was $135 close to $380 today, parabolic move for that company. a lot of this is baked into the cake i still say with financials, with resources, something you have to watch, the russ will let us opt to the upside, down 3% today. iwm is another thing to have on your radar screen. >> coming up, we're all over the action on nike and fedex, nike call under way, fedex call about to kick off, we'll bring the big news. plus check out lordstown motor, plunging after their ceo spoke exclusive with cnbc, what he said that had investors slamming the brakes. and later, "fast money"
5:17 pm
returns. ♪♪ ♪♪ ♪♪
5:18 pm
5:19 pm
welcome back to "fast money. shares lordstown motor hitting
5:20 pm
the skids today. ceo failing to calm fears over fraud. phil joins us now. what an interview, phil. >> melissa, it was an interesting interview when we talk toed to steve burns at the heart of the issue is the claim by the short seller hindenburgburg research about the otherers that steve has talked about in the past about the first vehicle to be built by lordstown. in the past he said we have 100,000 serious orders hinden hindenburg said these were fictitious and steve burns we questioned, here's what he said. >> we query them, they're letters of interest, that's all they are, you can't do more than that at this stage i don't think anybody thought we had actual orders, that's just not the nature of this business.
5:21 pm
>> that's the quote we've been hearing about all day from people saying, we don't think anybody thought we had actual orders well, i think a lot of people did think that and that's obviously at the heart of the s.e.c. investigation they're going into a market against tesla and ford and gm. lordstown had their first electric truck production going in september and rivian we'll hear more from throughout the year as you look at shares of lordstown going back to october 26th, that's the day it started publicly trading after the s&p spac ipo was completed it finished today at $13.01 a new low for lordstown. their first vehicle, endurance electric pick up truck will begin testing in the next couple weeks and plan to begin production by september.
5:22 pm
it's a tight time frame. morgan stanley today cutting the price target from $18 to $12 saying they will spend a lot more on capital expenditures. >> phil, thanks, hit it on the head with the graphic showing offthe competitors lordstown has. for all those people looking for the next tesla, the big difference when tesla was pre-revenue in beta, gearing up production, it didn't have this field of competitors it's a very different environment for the ev market. >> it's interesting, almost as if tesla went higher as the audience around this, i mean, lordstown, and even gm was starting to make announcements, and ford on ev, the entire space has got so much attention from spac and what not it's an extraordinary tale why do you do anything other
5:23 pm
than -- why buy lordstown when you can buy gm which could be doubling from october and gm giving kcombination of technology the fact they're an oem and can make cars and have actually worked through difficult times and doing it profitly with exciting back log of ev motors coming out by 25, i don't know why you would go anywhere else, especially when the multiple is where it is. with the competition in the space i think highlights the opportunity to invest in the space, i go nowhere other than gm. >> people may believe, dan, that there could be another tesla out there. but could there be another tesla stock story as we know tesla to be. >> that's the reason you'd be buying one of these things with the limited visibility they have about their products and about the orders right. i think that's where the interest is.
5:24 pm
you look at some of the teams put together on the spac side and what they're doing, there's obviously a huge ecosystem around electric vehicles that are targeting bringing these things to market but i think it will about a blood bath we highlighted nikola and this one and lucid look to be, like that churchill thing, they have real order supposedly $650 million worth of orders and it looks like a really hot car that they have let me tell you anotherreal order. a year ago when ford announced the mustang mache cross over electric vehicle, i put in a order and got a call month ago that the car would be in i bought the car i have a ford ev that is competing with tesla's cars. you're going to see it from all of the guys in detroit you'll see in in germany, japan, china and almost every market. so to me the competition is coming
5:25 pm
whether it comes through some spac or through detroit or an established automaker, as tim just mentioned, it's coming. so i don't really know what the bull case is right now for tesla with 1% market share, i guess they could go to 5% ev market share but i've been wrong in this for years. >> i want to see picture of you in the new car, please tweet it out. >> coming up, nike call -- and fedex higher on earnings, details when "fast money" returns. ♪ ♪ ♪ ♪
5:26 pm
♪ ♪ mom and dad left costa rica, 1971. and in 1990, they opened irazu. when the pandemic hit, pickup and delivery was still viable. and that kept us afloat. keeping our diners informed on google was so important. the support from our customers, it honestly kept us going. i will always be grateful for that. your doctor gives you a prescription you could use free 1-to-2 day delivery from cvs... but aren't you glad you can also just swing by to pick it up,
5:27 pm
and get your questions answered. that's healthier made easier. from cvs. and get your questions answered. i'm a verizon engineer. we built our 5g nationwide so millions of people could do what they love in verizon 5g quality. and in parts of many cities, we have ultra wideband, the fastest 5g in the world. this is 5g built right. only from verizon. welcome back to "fast money. we got a double earnings alert
5:28 pm
for you on two companies, fedex and nike on the move after reporting earnings nike call is under way and we'll get to that in a minute. but first fedex numbers. >> shares of fedex up 3.7% after a really strong earnings report. eps a quarter abovest matters for a quarter with real challenges it was the holiday shopping peak with e-commerce elevated, virus concerns and restrictions, and half vaccine shipments held by fedex in the u.s. and major weather led to delays. still, record revenue on the ground that handles the majority of e-commerce and residential delivery in part due on the sur charges to customers volume up 25%. and seeing margin expansion, expressing volume up 12% yield up 12%
5:29 pm
and signature air dliry you got to remember the majority of vaccines were delivered by this division and fedex raised guidance in part to ground capacity that earnings call starts in moments. we'll see if they expect this elevated e-commerce environment to continue. back to you. >> all right thanks. karen, what do you want to know on this call >> so i want to hear -- they said a lot of good stuff already about this coming quarter and so what will that mean for the year, but whether they think they can continue improvement in the margins. if you think about it they did highlight they lost $350 million of operating income from the storm put that back in and margin improvement was really good. how much more is there to go
5:30 pm
i'm hoping there's more to go. the stock at 15 times-ish is what they said would be their earnings is really attractive. there's pre-covid and post-covid -- or during and post-covid the e-commerce is here to stay and businesses open, that's good there's a lot to like here the valuation for me is very a strakt -- attractive. i hope we see more market operating improvement in the future. >> operating margins in express were lower than she was looking for and overall low as well. for obvious reasons, the street is giving the pass it should for me it's about valuation. i said that $40 ago when i thought the stock would continue to grind higher on valuation and you had a pretty presippitous pull back that i don't fully understand but valuation alone should be higher and this
5:31 pm
quarter backs it up. i'm with karen on this. >> nike shares are lower after reporting earnings, the call is under way, let's get the numbers. >> nike sales came up short thanks to two issues, u.s. port congestion and european covid lockdowns. driven by lower expenses and higher profitability, margins from digital growth, continuing to boom up 59% in the quarter. part of it is direct to consumer business is up 20% here's the story globally, it's key hallmark, north america, was a miss, sales down 10% why? for three weeks during the quarter nike wasn't able to move product because of the west coast port congestion that is was exacerbated by covid despite what the key ceo called strong demand china with sales 51% better than analyst engt expected.
5:32 pm
it was extra strong because it was the anniversary of the original covid lockdown last year add it up nike issues are likely temporary. if you look for signs of grand strength you see it in the numbers, higher margins, double digit grothe in jordan brand and 8% in commerce and continued momentum in digital. here's what ceo john donahoe said on the call. >> members are more engaged than ever with 60% usage over the quarter led by our sneaker app where we're seeing four times engagement in monthly active users versus last year this heightened enghajment is -- engagement we're seeing continued growth increase 80% versus the prior year. >> he also led with highlights
5:33 pm
and priorities osaka calling her a global brand. and triple digit growth in jordan -- we are waiting for guidance that we should get in a few minutes from the cfo on the call it will be a tell whether those port issues are behind the company and how demand is shaping up for the rest of the year the stock lower after hours down more than 3% and trading at historically high valuation and doubled over the past 12 months as nike has navigated the pandemic better than many retailers. >> sarah, thanks tim, you as a shareholder, how are you thinking about it ascii as sharea mentioned as getting th are you thinking about as key after the guidance pushing it out to next quarter and expect
5:34 pm
it to it come in. >> i don't know if i need that guidance the ports don't bother me at all. the china was $1.5 billion went to $2.27 billion, up 50% digital at 59% higher margin dtc is fantastic fact they're up double digits in all geographies and sarah pointed out the brand power across the lines, the innovation, it should be trading at a premium guess what, possibly the best stimulus stock out there where will you spend your money? probably buy nikes. >> or maybe proper pants because you have to go back to the office imagine you got to replace the sweat pants. >> yeah i still have nikes from, i believe, 1982 when i was in high school. >> you're the wrong person to ask. >> shows my high school colors with the orange.
5:35 pm
number two, what exactly is the hands-free sneaker, do they magically appear on your feet? did george jetson take over at nike that's the most per posterous thing i've heard. >> it's like a slipper i mean, it sort of just closes on its own guess it saves time, better fit, you don't know, can't speak to it coming up, out of energy is this the end of the energy trade. we'll get answers. and plus, hours away from tip-off of march madness after two year wait, the stakes couldn't be higher sports betting sites are getting ready for the big dance when "fast money" returns love you, sweetheart they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it.
5:36 pm
come on, grandpa! later. got grandpa things to do. aw, grandpas are the best! well planned. well invested. well protected. voya. be confident to and through retirement.
5:37 pm
5:38 pm
welcome back to "fast money. oil barrelling lower for a fifth straight day, crude prices sliding more than 7% on pace for its worse week since october energy was the worst performer this day but up 30% this year. guy what did you make of the move. >> i'm not sure what a sooth is or what a sayer is but when you
5:39 pm
put them together someone can put it together and predict the future i know for a fact we talked about psx testing the june high. look what happened name like that traded up to 89.5 the june high and here we are at 81 i never said easy money can be made because i don't think that's a kind thing to say but i think the parabolic moves are over and these things are correcting it makes sense, it will will be opportunity to buy again but we will run into resistance i don't know why crude fell like it did. >> we often -- to short apple and be long exxon way back went and seem to would to this gate dan, i'm just curious, at this point in time, would you switch, would you flip it around and say long apple and short exxon given the run of exxon and the declines that apple has had? >> listen, i will just talk about energy
5:40 pm
i think apple is probably one you want to start scaling into on the long side down 16% from recent highs i think it will get back to its recent lowser maybe 20, 25% or so but crude oil in particular doubled from november 2nd from it's lows to recent highs and broken that uptrend. to guy's point about energy names i expect them to follow suit they got ahead of themselves in my opinion i can't remember who said it before but there are lockdowns going on in europe that sort of thing, so we might see some stalled economic activity. you might see oil and oil names come back. i play through the xle that's the way i've been doing it, exxon and chevron make up 45% of the weight there. looking for a move back towards 45. >> coming you up, we found you three green spots, how these names managed to stay positive and plus a big win for sports
5:41 pm
betting, connecticut moves closer to a deal on online gambling, more when "fast money" returns. tomer 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 for free when you trade in.
5:42 pm
5:43 pm
♪ welcome back to "fast money. we just got some big news out of the nike call.
5:44 pm
sarah is back that sarah? >> melissa, we were waiting for the outlook after weaker sales and it's pretty bullish. nike cfo expects next quarter fourth quarter to show 75% revenue growth, now that encompasses few things, including easing restriction from lockdowns in europe which hurt nike this past quarter, and also, better luck at the ports and inventory transit times improving in the u.s they're able to get their products to stores and customers in the u.s it also looks very strong because you have to compare it to where we were this time last year which was right smack in the middle of the lockdowns in the u.s. and europe still a strong number 75% revenue growth for the fourth quarter for the full year nike is saying the guidance will be low to mid-teens growth revenue versus the prior year again, pretty much what analysts were expecting a little bit better and the cfo
5:45 pm
said they're exceeding prepandemic levels of the business stock down after hours. >> sarah, thanks so tim, guess you didn't care in the first place but 57%, i would -- the first place, 75%, i would say grain of salt because of where we were. >> yeah, it's a very different outlook. a very different environment i think thor multiple of the company is representative. look at the multiples of other apparel and discretionary consumer names have that control our audience and innovators and brand makers, nike is all those things advanced better spending power. >> karen, what did you make of the guidance >> i thought was really good only problem, i think the port stuff is kind of noise, the only problem is the high multiple going in they're a victim of their own success. i don't think you have to jump in right now to buy it but at 40 plus times earnings, i
5:46 pm
don't own it. >> okay. well, despite today's big sell off we found you a big tech stock that managed to stay green in a sea of red. ibm managing to climb 1% not just today, guy, for the past month ibm is up 7% compared to the decline and nasdaq is this value tech >> it's more value than other names. clearly you don't have the growth of some of these names. quite frankly, if interest rate is going higher i think people will look at names like ibm. by the way oracle as well was higher, it sold off from the prior all-time high couple weeks ago but still up on a lousy tape that's a tell. the market's saying we're going to pair down some high-flyers and get into names that are not the sexiest but valuations we can wrap our head around and
5:47 pm
maybe get some price stability while we wait for other names to come down to levels we can buy them again. >> i'm glad you were in my head. i was also looking for oracle. >> i know that. >> they're very similar in the past month the stock moves also very similar is wise, dan, to actually think you're getting more value from these names in technology? >> not real -- i mean, you're getting value but not growth, like guy said. legacy businesses maybe with bitcoin moving here people think they're going to roll out those blockchain commercials that were working well for ibm in 2017 remember we tracked that tomato all around the world on a blockchain listen, this company, the stuff you should be excited about last quarter wasn't growing fast enough that's why the stock got nailed in january i just don't see any reason to buy ibm here. >> i wonder where that tomato is now. coming up, get ready to gamble
5:48 pm
another state inching closer to a deal with sports betting, we break it down with ceo of action network and march is women's history month. we're spotlighting contributor here's karen firestone on what empowers her. >> i'm empowered by the fact that i believe in myself i was one of the few women who worked at fidelity but i thought i can put my mind to something, i can research, i can manage stocks and portfolio as well as the guys and i had to remind myself of that all the time because i was dramatically outnumbered but i thought, i can do it. and that's what kept me going. this is wealth. ♪ ♪ this is worth. that takes wealth. but this is worth. and that - that's actually worth more than you think.
5:49 pm
don't open that. wealth is important, and we can help you build it. but it's what you do with it, that makes life worth living. principal. for all it's worth. so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america.
5:50 pm
but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business.
5:51 pm
see every delivery... every yikes... and even every awwwwwwww... wait, where was i? introducing self protection from xfinity. designed to put you in control. with real-time notifications and a week of uninterrupted recording. all powered by reliable, secure wifi from xfinity. gotta respect his determination. it's easy and affordable to get started. get self protection for $10 a month. welcome back to "fast money. big news in the sports betting world. connecticut moving closer to allowing sports betting. the state's governor announcing the deal to offer statewide mobile sports betting and it's a hot time, march madness is under way, right now let's bring in ceo patrick keene great to have you with us, i wonder if you could speak to the trends during the panike
5:52 pm
trends during the pandemic and what you're seeing now. >> we had a challenging spring, with the sports black out in the spring which was super challenging for our business and operators like fanduel and mgm and the others we saw green shoots happening, pga tour came back and basketball came back and our business hit full swing late july and into the football season and we had an extraordinary year as did a lot of the others in the category. >> patrick, it's tim, thanks for joining us the way online sports betting is growing, betters need a place to do the analysis and people have called you guys the cnbc of sports betting to provide that analysis we talk about momentum all the time where do you see that right now? who are the momentum stocks? who are the momentum plays at the time is this is what we're measuring all the time in markets. >> it's certainly public operators draftkings, flutter, penn national. those have been very successful
5:53 pm
companies and they're riding the tail winds of the return of sports and we're fortunate to have over the next three weeks the national sports betting holiday, the ncaa tournament there's 63 games or more you will have an incredible velocity of consumer acquisition. that's where we play in. if you look at draftkings, you know the business well, they spent $200 million a quarter in marketing and are trying to acquire customers on our platform and lots of other channels it's a free for all grab of kufrnlt customers. >> patrick we didn't have the ncaa tournament, this year we do how important -- you talk about pent up demand, people have been talking about this for a month and half how important is this to your business. >> it's mission critical s 24 picks on the platform people can get their picks like any stock and follow their picks on our platform. there will be tens of millions of picks in the tournament
5:54 pm
it really is the super bowl. any major event you can think of plus it's volume of games what operators are looking for. game volume. super bowl is a massive event two years ago the handle around the ncaa tournament was $240 million that's because of the volume of games. so you will see a ton of games an the matsters coming up in couple week, incredible for the industry. >> all right, patrick, thank you. karen, where do you see it as states start to open more and more. >> it's funny, i don't really like to bet but i guess that's what we do here every day basically. for me i made my bet through mgm which is both a -- you know, mgm online as well as mgm. so, so far that's worked valuation is definitely getting rich it is a -- for mgm it is a
5:55 pm
reopen trade for sure. i probably wouldn't be adding right here actually. >> guy >> well, i think, obviously draftkings sold off from the 64 down to 57 64 had been the previous high now it's through it. you trade dkng through 64. i want to ask you mel, who is harvard playing in the tournament >> uh? i don't -- yale? no idea. >> yeah, false. >> you know that you know i don't know. fine >> georgetown is playing saturday, playing colorado back to you. >> i think ultimately, well, the hoyas haven't been there much lately, mel, hit him with that, but we do have an exciting squad this year. look, if you look at the gross gaming revenue coming on board with connecticut adding that to new jersey and dressable market of the entire sports betting world it explains the analysis a lot of people are more
5:56 pm
comfortable betting on sports than markets because they feel more of an edge. that's why it is so popular. >> by the way if harvard did play yale, harvard would win >> there you go. >> up next final trades.
5:57 pm
5:58 pm
5:59 pm
welcome back it is time for the final trade let's go around the horn tim seymour. >> by the way, guy's jealous because he's not the mathlete that you are we talk about this draftkings market it's growing and they're the leader >> karen. >> you know how they say -- fedex. i didn't own any i would buy it right here it's an attractive entry point i like the valuation fedex, the girl who brought me to the dance last night. same one. >> dan nathan? >> yeah, so guy likes higher rates for longer although doesn't believe fed chair powell thinks they will be longer for longer i don't know why home builders are trading with these rates i'd be seller of xhb. >> guy
6:00 pm
>> mel, you going to fill out your brackets. you probably like gonzaga, that's my sense. >> all the way. >> yeah. ha ha. oracle gonzaga. lockheed up big lmt. >> thanks fo my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a will market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer! welcome to "mad money. welcome to cramerica i'm trying to make you money my job is not just to entertain but educate and teach you. why don't you give me a call or tweet me @jimcramer.

104 Views

info Stream Only

Uploaded by TV Archive on