flat week. disappointing friday session. >> yeah and job week coming up, next friday expecting 1 million new jobs in april, second straight million, that would be great news, see if the market shrugs. >> morgan thank you for dropping by >> thanks for having me. >> have a good weekend everybody "fast money" starts now. >> i'm melissa lee this is "fast money" tonight's trader lineup tim seymour, steve grasso, james mcdonald and nadine microsoft falling one trader says double down on this name, how they're playing this pull back it's a small world but big reopening, disneyland opening the gates for the first time in a year we break it down for the trade. later, we are upping the stakes why tomorrow's kentucky derby could be a big win with the betting sports stocks. starting with s&p 500 ending

flat despite blow out earnings from biggest companies in the market dow down on the week record profits from the most valuable companies couldn't get investors excited, what will or is the best already baked into these markets tim? >> look, it's disappointing and certainly if you told me the numbers that google and facebook, especially on their ad growth what it means also for the consumer and economy and then get to apple, 5g super cycle alive and well, their service business is girouxing and amazon might have had the best numbers of everybody. week over week triple q&a's with nasdaq down very concerning. semidconductors haven't made highs in two and half months, the longest period of the rally where the leader from the chip sector has desserted us, in a market always looking for a catalyst earnings have times have been really important i do feel when companies tell us

they're back to normalized earnings and the tech sector kind of told you that and we pulled through the covid benefits and have tough comps, that's the time to be concerned. i'm not losing faith in this market but i do think this is a concerning week, small caps were weaker eem growth was weeker and tough call based on the numbers. >> some might say flat performance by major is decent price action considering where we started this week off at which was record highs. >> yeah i think that's probably the way i would start to frame it but tim did a great job of laying out all of the different places within this market and what they've recently done like, i've been a fan of saying the market hurts the most if everyone thinks we're going to roll over if we don't roll over and trade to 4500

people will be shocked and wind up getting hurt to the upside but for the most side people are looking at the market saying let me just stay invested. let me own tech, some of the iwm, some of the infrastructure plays and the industrials we'll see how it plays out but i understand taking chips off the table. >> some pull backs in big cap tech stocks, nadine, could be buying opportunities, you got the quarter read out and forecast so you know what you're dealing with pretty much >> you're right, mel what you saw today too is the market was down but volumes were down so there wasn't a lot of strength behind this decline today. you're also looking at decline volatility premium of 22% on this 36% so we're looking at a pretty attractive set up you mentioned on the opening, microsoft, that was something we've been long-time holders of it i entered again today just added to the position because it's a

great company, they put up a great quarter. people right now on earnings are paying for the surprise, are they going to surprise on the upside with the forecast but i think microsoft did great job outlining a reasonable, conservative look that they can be. >> yeah. james how did this price action feed into your bearish view of the markets? >> we've had an incredible bull market i saw a headline the other day that this first 100 days of the biden administration since the inauguration is without fear you have to go back to fdr out of the bottom of the great recession, in 88 years, we haven't seen a rally like this so not surprising that the market is shrugging off these great numbers because they've been priced in, there's been expectation of the rebound of the economy, most of it priced in after the election and continues to rally we saw it last month nearly 18 days of consecutive rises in the s&p. this is probably the first time we haven't bought the dip after

the market closed selling off. it's an unprecedented rally that obviously has to come to an end at some time we're not betting on the market to collapse because it's continuing to rally but we got to top out at some point. >> tim how do you feel about the stocks that manage to do well, facebook, and alphabet who finished the week with gains versus microsoft who had a good quarter as well but finished the week lower >> well, i think both apple -- excuse me it -- both google and facebook are most attractive of the megha ca tech stocks. other than amazon is growing into better operating margins. look, google's numbers tell you this company is beginning to rerate a bit more. facebook has been very cheap, maybe cheap for a reason the strength in the ad growth and again their pricing they

were able to passion pass were able to pass on 30% price increase and all of this was a bad week for netflix considering the amazon video prime numbers and what google told you and strength of youtube that's maybe for another show those are the two most defendable, the two with the big week, those two yes reversed off the highs but still the stock is higher and those are the ones you stay with. >> nadine, i'm curious if you think today's action was sort of a tell in that, were you surprised tech stocks didn't do better especially with decent earnings like amazon given the ten-year yield ten-year yield went down to 1.62 thought we'd have a bit of a bid there. >> in terms of rates last two shows i've been on we've been shorting tlt, shorting treasuries, we saw xls and

financials and xle, energy, hitting the top end of the daily trading ranges they are call it a rhyming cousin of the treasures when you see it hit a point you need to trend some financials, trend some energies so we think of covering the shorts on the treasuries again there was a note put out today a high short interest on the high treasures gives you pause, this is some we don't want to over stay our welcome. let's look for a better, different way to play this. >> we're closing the books on the busiest week of earnings season but next week, pfizer, uber, lyft, square, the list goes on and on, we're cutting through the noise, each trader will tell you one stock heading to next week tim what are you watching? >> well, i'm watching gm on may 5th. the news this week was ford and huge, huge break down based on the chip shortage and autos they parked and cannot finish

obviously the $2.5 billion hit i think in gm's case it price in some of ford's pain, it has the exact same issues, let's be clear, heavily provisioned in the foreq numbers i'm concerned about commodity costs, you have beginning of expectations but gm even without the sexier parts of the business is a $6 eps in '21 and could be significantly higher that is putting a haircut on some of the chip shortages remember, this company when you buy it you get ev, you get fuel tech, you get battery, you get autonomous, and you're getting it for free. we made this point many times. i think gm, despite some of the issues on semis which will peak in 2 q are you paying for that now? no i think you paid for it in the gm share price i'm excited for gm it's never been better run and is exposed

to sexy parts of the auto space in ev driving other players. >> ford is down 5.5% right here right now, james, curious would you rather ford or gm ford knowing all of the wards so to speak since they reported. >> i like gm in those two names, gm has a broader technology set and more loyal customer base and gm has partnerships to extend their brand and obviously power that stock forward ford is also a great stock i like both names. these are two staal worths of the american economy and both will take advantage of the e v vrks play but i go with gm. >> grasso an oldie but goody for you. >> this chart is up 140% year-to-date, more impressive, june 2020 the stock was trading at $12.30 and closed in the after hours trading at $90 this stock when you couldn't get

on a plane people rented a car now you can get on a plane people are still renting cars. going to be interesting to see whether this is the trade gone bad or the trade to fade right now. you get sort of recovery trade and the ongoing recovery trade so i'm looking to see what kind of numbers they present and what their business model actually looks like riot now -- right now. >> you had been in this name long ago grasso, are you in it now or just watching as a bro barometer. >> i sold it when the stock tried to rally, it was going up at alpine mountains an i said there's month way it could go higher, and it did i'm out of the name right now. it's been an impressive run for the stock. kudos to those who stayed with it interested to see if it gives a little bit back or continues on the path higher. >> yeah. james, which are you watch >> i'm watching blizzard they're

reporting on tuesday i like that they've always outperformed on expectations they're looking at estimates $1.75 billion projected to do a $2 billion quarter, huge for them, because the first three months of the year a kordsing to video game analysts have seen 18, 20, 40% increases in demand and act vision blizzard is all over that space, they have new games coming out and a lot of paid in content in their games it's trading well. they will probably do well if there's a market pull back because they have a high profit margin and their services and we see adults playing games in these sectors, a continuously growing market and first quarter over the sector was up significantly higher than last year, it is outperform not just covid stock but return stock as well. >> nadine you're going paypal here >> going paypal it's been a covid play and a stimulus play and now a reopening play

it's an under monetized atascadoro the-- asset they ssett -- asset they will look to inning gaugement to expand so many reasons to own this stock. we're seeing six to one upside in daily trading range with applied volatility at 31%. what i will be looking for next week is the update on crypto how they're monetizing their asset and any improvement in venmo, and -- also gm what's they're play book looking for and square. >> coming up, the magic is back, disneyland reopens for the first time since the pandemic, what's next, details next plus the kentucky derby is tomorrow and sports betting stocks are under pressure. why aren't investors betting on these names, that trade ahead.

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welcome back to "fast money" time to dust off the mickey ears, as disneyland opens the gates to the public for the first time in over a year. julia boorstin is in for us live hey, julia. >> hey, melissa, after being closed 412 days disneyland is open at 25% only for california residents at this time and fans waiting in line for hours for reservation online and they spent $154 for a ticket and disneyland park is sold out through may. during the closure the company

fixed up rides, made adjustments for covid restrictions, so shortened the "star wars" ride from 18 to 15 minutes and revamped snow white rides. >> we've pushed through and it will open on june 4th, we made sure all of the legacy things that are special counsel t that are so special to our guests were ready to go and brand new things to think about as well. but the park looks phenomenal. >> now, some attractions like the monorail are still closed and there's no parades or fireworks just yet but it's projected that disney parks division at three pandemic levels by disney's fiscal 2022 year shares up 135% percent from the stock's low of march 18 last year. >> julia boorstin at disneyland

where it is raucous, people are there making noise, having fun they shortened the "star wars" ride down from 18 to 15, never heard of such a long ride. tim now the parks are reopen for disney, not at full capacity but they're reopen, do you think they'll reach pre-pandemic levels in fiscal 2022? >> i think they're going to price it in. sounds like they're having a great time i didn't know better guy is there on mr. toad's wild ride -- i think the story with disney is also the fact they've reasserted themselves you know, never lost it for me, disney is king of content they'll spend 14 to $16 billion in ten years, eight to ten will go towards dtc and sounds like pick on netflix

show but it's tough week for them when we seen streaming and reinforcement from disney. disney is struggling to get over the $200 level needs to hold this hundred day, the story is they will shoot the upside in terms of sentiment with the reopening. >> if "star wars" ride was still 18 minutes basically the whole time of the show so far on one ride it's mind-bog. ing to me. it's mind boggling to me steve grasso what do you think of over shooting on it's reopening trades in general? >> yeah i like it. i originally thought $200 was the magnet to the upside it's bounced off that tim hit it, the 100-day moving average is 182 and change. it's found support around that level and makes another run to $200 parks are $16.5 billion

normalized revenue. if you look at europe that's another $8 billion. asia that's over $6 billion. though we're reopening here, melissa, there's a whole world out there that will continue to reopen i think disney makes another push back to that $200 once it hit that's it probably goes over with tremendous force. >> all right, james, listen up, i'm going to give you three ways to play the reopening and tell me what you think is the best of those three. obviously there could be better. disney, health care, like a big pharma stock like merck which got clobbered off earnings or an alphabet, which is very, very exposed to travel surge. what do you think? >> i love alphabet in that grouping, i'll tell you why, with disney, if you look at the ten-year or five-year chart we had an explosion to the upside because of the excitement of disney plus and what streaming could mean to it this stock will be under pressure, i don't think it will get over $200. big pharma, pfizer numbers are

very priced in, we saw a ton of run into that sector based on the hopes of the miraculous creation of these vaccines around the world that's priced in google is a monster in the space, google is blowing out its earnings and can hold back up side potential based on innovation, acquisition and intellectual property and is very defensible i like google for declining market, i like google in any space and alphabet has born that out in terms of the earnings and price action. >> all right from disney to the derby, you're looking live at churchill downs in louisville where 147th running of the kentucky derby will take place will the better stocks race higher we got the trades and favorites chor mu me "fast money" after this quick break

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but is it secure? sure it's secure. so how do i do this? -we do this, together. bounce forward, with comcast business. welcome back to "fast money" you're looking live at louisville it's the kentucky derby weekend, horse betting stocks front and center as we gear up for tomorrow are these stocks a long shot or sure bet, steve, where do you stand on this? >> so, when you look at online if you look at the chart on online gaming they've definitely hit a headwind you had high growth, high valuation with the ten--year ticking up based on the cash flow then you start to get the reopening trade where the actual casinos are starting to do better, where people are going

to travel yet again. they have multiple headwinds, melissa, i think they have to come down-to-earth valuations have to get in line these companies have to actually start making money instead of the thought of making money. >> tim i think you're long draftkings and i think you're long casinos. >> i'm long draftkings i bet your long a very, very fancy hat for the derby, mel, you got to come clean, what are you working? >> i'm not a hat person, not a hat person, let's move on. >> okay. anyway, let's talk about draftkings if you're playing in the online sports betting space draftkings is certainly in the public markets, you don't have a ton of options, it's all about playing the addressable market growth, online sports betting $26 billion online gaming 45 to $50 billion and put some multiple of sales on it is the way you play draftkings with the valuation. >> nadine, your two cents on this >> you know, i would look for

maybe less discovered, less owned assets something like evolution gaming which is a swedish company that do online gambling, it's not the sport betting but they have innovation, operational excellence and profit margins 68%. been a monster for a while. >> check out the kentucky derby tomorrow at 2:30 meantime time for the final trade let's go around the horn tim seymour? >> i think brooklyn strong tomorrow i think draftkings for the long haul is the way to play this space, it's not cheap. i like it. >> james mcdonald. >> youtube is finding footing around the world and google will own it and surge and continue to make a mint of money out there. >> nadine. >> paypal. if you look at what central banks digitizing their occurrence is going to do you want to own paypal >> steve grasso. >> pay safe.

this is a name that is exposed to twitch, to fortnite, and yes, tim's draftkings as well this is a name that is exposed to crypto, so this is the way to play online gaming, grossly under valued psfe, grossly undervalued. >> that does it for on "fast" don't go anywhere, "options action" up next.

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. it is friday, the last day of april, it is time to literally and metaphorically look ahead to brighter skies and time for "options action." looking at a set up to help you make up for lost time. and looking at the clouds playing forecaster and finally, we're pausing to reflect on the bigger picture let's get to it. beauty stocks having a strong start to the year despite the pandemic largely keeping consumers inside with the reopening on the horizon could be more beautiful turns ahead. carter, break it down for us