>> back on track, baby boomers are really the big opportunity for them, they picked up a ton during covid and hanging on to them with high retention so seeing tremendous growth potential in the business. >> lauren hill, thank you. "fast money's" now live from the nasdaq market side overlooking new york city's times square this is "fast money. i'm melissa lee. apple doesn't want anyone taking bites out of their apple the tech giant aiming to become its own financial firm for its coming hardware subscription business and more. the fallout for fintech coming up shares of rh getting crushed and dragging down way fair and williams sonoma. the challenges ahead and a reference to the big short rattling investors later intel ceo raking in over

$178 million in his first 11 months on the job. stock is down 17% since he started. should investors be outraged by the massive ive heyday will time prove he's worth the money? shares of netflix dropping more than 2.5% today. the stock is the second worst performer in the nasdaq 100 just behind paypal, down more than 36% this year. that puts netflix on pace for the worst quarter in a decade. it lost nearly $100 billion in market cap so far in 2022. it appears 27 oscar noms have been enough to get the stock moving higher. is it time to chill on netflix >> i became a -- i went from a netflix bear to a convert after the q1 guides were so bad and we got the stock down below 380 and nibbled at it there. that's where i sit and the reasons i like --

netflix then is part of it really was a valuation that at some point if you screen on internet stocks, netflix stands out along with google. it is what you're willing to pay for a company and the kind of growth they're giving you. netflix, while the sub growth has not been linear and never has been linear, mel, it is a case where i actually think they're going to get the sub growth, i think they're going to asia pacific, they get it in lat latam, places that aren't as sexy but the valuation is compelling here. if you look at the stock relative to itself and just performance, first of all, back up to the 50 for first time in four months. the stock was basing an consolidating and digesting a lot of bad news. it underperformed disney and i compare netflix and disney over five years and there has been so many runs where one company had a driver to outperform the other. if you look at where they are in the current run, eight periods of plus or minus 40% or more moves.

i think this is an opportunity to put the other side of the trade on. >> just since the aforementioned first quarter results when it gave that dismal outlook for subscriber growth for the march quarter, it lost 25% of its value. 25% of its value, just since that print i guess the question is have we discounted enough, even if you think the subscriber growth story isn't going to be fully there, but will be there in some way, shape or form is that enough >> i'm with tim. i think we have. i'll be the first to raise my hand and say i started talking about netflix in the mid-400s. i think it is interesting now. i think stability around these levels in particular is interesting, really that pre-covid ceiling we saw if you look at the valuations, you're back to 2008 levels here. there is growth profile going forward is a little bit different. but the growth certainly isn't over to your point i think we're a long way from market saturation, especially if

you're looking at the global market they're still investing heavily in content i don't think they would be doing that if they thought the growth opportunity had shifted if you look at eps, 30% growth there. this is a very solid performer from the price levels, and as the market starts to rotate from value to growth as i think it will, and actually as i think it already is starting to, i think you will see some rerating and in valuation multiples for stocks like this. >> when you look at the total addressable market, looking at global broadband subscribers, their potential market, right, only 29% of those who are broadband subscribers globally are subscribers to netflix, which implies that there is a lot of upside if they can further that penetration into those folks, those households that have broadband. >> well, that's certainly the key. i would say that and gaming as well which is also now a new area of competition, which they already started to address

i'm going to play for the contrarian standpoint a little bit. this really has become a game, being that the subgrowth has not been there or hasn't been consistent, this really now is about content spin, which is going to drive margins lower so they are in some way, shape or form backed up against the wall and will have to grow on an international scale. with that said, that's the negative backdrop. i am in agreement with the other fellows in terms of from a valuation standpoint, and from a technical stand point, it is about that 50% retraceable level, it is starting to look a little compelling from the long side, but i think this is more a long-term growth story and whether or not they can bring in house and really address what is now a new addressable market, but a real savvy competitor in terms of the gaming sector. >> what is that phrase that carter braxton worth likes to use about charts, it sounds like

these guys are saying things look so bad, it looks good at this point what do you think? >> i agree with the more positive spin on it. i bought the stock, waiting for a long, long time and once it broke 400, bought it below 400, little lower than that now, but i think there is sort of a lot to like about it i saw some comparing about blackberry, which seemed -- i don't get that one, it is hardware, this is completely different. aside from growth, which i think is still there, they also have pricing growth we have seen them use that from time to time we don't know when they'll use it again a price increase is a very good thing for the bottom line. the other thing is, netflix themselves have not been very good predictors of their own next quarter, next couple of quarters, and so they gave this sort of very, you know, disappointing outlook and i don't know if it was a sandbag

or not, but i feel like, all right, this is really a premiere player it is the -- the number one player, way far ahead of everyone else, and we haven't had a chance to buy it here for a long, long time. so could it go lower, of course it could i think also a lumpiness to content hits and, you know, i think they're putting a lot of money -- they'll find some content hits, for sure this isn't cheap, but for this product, i don't think it is expensive. for this stock, rather i don't think it is expensive. >> yeah, there could be a drought in terms of new content drops and you get bridgerton season two and all sorts of stuff to binge all of a sudden on netflix. >> i'll all about -- can i ask you a personal question in. >> okay. >> have you shared your netflix account? >> no, that would be wrong >> and so you never have done anything wrong, but i have, and a lot of people have kalyn did an interesting survey and they basically add 2500

respondents, 43% are sharing a netflix password in some way >> i'm surprised it is not more. >> in that way, i know it is has gone on in my family, i have brothers i never met that are logging into my password those are subs they can monetize, they're not getting credit for. >> how do they monetize that >> i think there is technology when i look at some of the subs and talk about that addressable market, there is a market they're not getting credit for i think their content, while not always been the content that i want, again, this is a company that over the last five years this wasn't a content story before, as much as i don't think it is disney studio, a lot of people don't care at all about what disney studio and swear by netflix and have for a long time. >> leave it to karen to pick apart the metaphor, using blackberry as sort of the metaphor, i get the point about it being hardware, netflix was not hardware, different, but in some ways it is the same i think it is this notion that

blackberry was the first mover, everybody had a blackberry, you couldn't imagine life without the blackberry, other things around, you know, but people still went to blackberry and rim. but here we are. who has a blackberry now antique collectors so this notion there is so many streaming service that could end up taking the crown, like an apple tv >> yeah, i had one of those, wear it on the hip it was a cool look right out of undergrad, but i hear what you're saying. but i think there is a way to differentiate more with hardware you look at the blackberry, and then look at apple with the iphone, there was a major difference there in all sorts of ways where as really differentiator here is content. and i'm not convinced that netflix is all of a sudden forgotten how to produce hit content. i think ultimately as we're say, that's the differentiator. there is more competition, of course i still think netflix definitely

has the eyes of a lot of potential customers, the market is large, and to the point made earlier, they're going to find other hits with the content spend. i'm not so worried about that analogy coming true in this case >> yeah, should we be worried about that content spend, karen, do you think when you see an apple, they only have been at it for a limited number of years, i can count them on one hand in terms of the content game and they won an oscar. >> right yes. they have. and coda was a fantastic movie, i don't know if you saw it, it is great you look at something look a coda, versus some other, like, "squid game," which was very, very low brow, relative to "coda," i would argue "squid game" is more valuable to shareholders than "coda". >> it takes more hours, more hours of engagement on the platform, might get you it see other things how do you view that content spend and -- you say it is a big

negative they can do it, though, they have proven time and time again they can access the capital markets and can spend that money to compete >> the argument is if that is the sole differentiating factor, then i think it makes more challenging pathway forward. that's really my point i expect my mic to get cut when i say this i don't think that winning an oscar or any other award necessarily means that the quality is necessarily there or the economics are necessarily there. for instance, leonardo dicaprio didn't win one for 15 or 20 years and people will have their opinions about that. but i don't necessarily think i find the correlation between winning an award or whether or not the content spin was worth while. i still think if you are -- >> go ahead. >> no, go ahead, i'm sorry >> i do think that, you know, having the first mover advantage definitely is something that needs to be taken advantage of they need to be aware of what

other entrants there are, new and existing, and then what other platforms are now kind of cannibalizing what they already have existing. so if they're not able to address those things and it is purely just content, i do think that's somewhat problematic. >> one of the things, i hear that, i guess one of the things i like about netflix's story, you're talking about the addressable market, where they grow are in areas where that broadband is growing their ability to deliver localized content in places like india and latin america, this is what i think netflix does better than anybody they recognize their growth is not coming from u.s. and canada. so that's an issue they're getting their growth globally, delivering content different than the content they're creating here. i think they'll do that well around the world. >> stocks finishing in the red today. the dow and s&p snapping a four day winning streak and our next guest says a shift in market leadership is starting to play out. let's bring in lori calisana for her take

i feel like you are -- i don't want to say a unicorn among strategists, but bullish on this market have we seen the worst for 2022 at this point? >> so, look, i think the low we made back on -- earlier this month was not april yet, it was very close to what we called growth spear pricing 13% drawdown if you go back to the post financial crisis era, we had a number of different episodes where the market was scared that we were going to tip into a recession or see the financial system unravel again but it didn't happen and those all totaled 14 to 20% peak to trough type drop, episodes in 2010, 1011, 2015, 2016 and late 2018 we came very close we have said we can still see a path towards our target of 50/50 on the s&p 500 later this year as long as we see that path, we won't take our target down i do think that this leadership shift from value back to growth does help stabilize the market

it is almost like bad news ends up being good news for the market in a way. typically when we see gdp trending below average, the growth trade tends to beat the value trade. value really only works in a hot economy when gdp is running above trend. our own economist took his forecast down from 3 .5% to 2.5%, which is telling me we're moving back towards that trend like growth, backdrop in the economy very, very quickly we think that pushes people back into secular growth stocks but does end up helping to stabilize the market just a bit as well. >> on the path to 5050, where does a consumer stand in terms of how the consumer fights inflation. how much of that is a -- i head wind for this target >> it is a head wind we have to keep in mind with the consumer that we are battling the number of head winds, whether the higher interest rates, gas prices have been in focus lately but we're coming at it from a

position of strength, the consumer balance sheets have been very, very -- much better shape than what we have seen in past episodes for the consumer has been weak when confronting head winds we have to keep in mind the consumer resilience has been questioned a number of times in recent years, the consumer continues to be underestimated and comes back andsurprises us to the upside. we think it is very tough to bet against the consumer at this point in time. the way i think the market is treating the consumer and the economy and the question of recession more broadly is innocent until proven guilt. i keep telling people we're very lucky we have this whole arsenal of high frequency economic indicators that we use during covid it keep an eye on, and so far we're still seeing remarkable stability and things like dining and flying we're seeing some good spending pairback, but we're seeing the services side pick up. so far we're seeing underlying signs of resilience. >> we're not seeing remarkable stability in the bond market are you concerned? this first quarter will have been proven to be the worst quarter for bonds in history

we just haven't had this start to a year, we haven't had this type of a down move for fixed income and aggregate that concerns me where do you fall in line on that >> i definitely would put it higher on the list of things that i'm concerned about and just kind of broadening out in the fixed income discussion, looking at mortgage rates, that concerns me a little bit more than what i see on gas prices recently i think these are all important risks to monitor and someone asked me a few weeks ago, are you pounding the table on the market, we said not by any stretch. we see a path, we're very careful with that language i go back to sentiment, the sentiment indicators have just absolutely taken a beating, so a lot of these concerns that you and i have, the bond market, gas prices, mortgage rates, a lot of that is baked in already, if you look at the aaii net bull bear indicator it got down to levels that were worse than pandemic type lows. so i think these are important risks to monitor but i also think we have to take into account that a lot of this pain and nastiness we feel when

looking at the indicators has already been baked in. >> always great to get your thoughts, thank you for joining us >> thank you for having me karen, do you think everything has been baked in >> that's a great question something we haven't heard of is probably not baked in, but i think the market is sort of digesting the ukraine situation somewhat i think that we sort of said we're in this for a while now. and if guy were here, he would say, you know, never bet against the american consumer. and they're employed at record numbers and wages are higher, so i think, you know, betting with the american consumer is a good way to go. >> yeah. but the american consumer has been weathering price increases already on various products and the question is are they going to be okay if that package of whatever they're buying, let's say doritos, i don't want to pick out doritos, anything

they're buying gets smaller at the same price or if that price per bag gets more expensive. at some point even if the consumer has savings, they're, like, what is going on here? >> yeah, you had me at doritos, mel. we talked about consumer sentiment and consumer trends. and some of those have changed you have an elevated number of consumers no longer in the workforce, no longer making themselves eligible. you can argue because of federal help or because of skills that they learned or independent contract status, things of that nature, we talk about the savings rate i think that one thing that is being underestimated is that there are differences in how the consumer is postured robin hood have made access to public markets more available than ever. and that coupled with the higher savings rate and addition into home ownership, i think postures the consumer slightly differently. the move over to services also means that you're not tapping

into credit markets, interest rates and all the other dynamics that are part of the financial system to make your purchases. i think that also has some trickle down effect. the last thing i'll say in terms of a bit of disparity between indicators and things i don't think are being taken into consideration, you look at the vix or the cost of prediction or insurance within the market, that's trading back down toward cyclical lows which although a lot of these other indicators might point to bears posturing, this says there is a bit of laxness in the market. and so i think that those two things don't reconcile for me. >> interesting point about posturing and how the consumer probably feels wealthier these days coming up, furniture fallout, home good stocks under pressure as consumer demand drops how do you trade the names the details ahead. first, an apple a day keeps the banks away working on bringing financial services in house. the details are next, don't go anywhere "fast money" is back in two.

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according to reports, the tech giant is working to bring more financial services in house including payment processing, risk assessment for lending, fraud analysis, credit checks and additional customer service functions. check out shares of goldman sachs and green dot, two partners getting chomped that was on the prompter, not my word, in today's trade you get it they were lower on this news karen, i feel like it is not surprising that apple wants to do this. does this mean they become effectively a bank >> well, that's a good question. being a bank is a hard thing to become not that they couldn't, but i'm sort of confused because i could understand them wanting to, you know, have a white label product that they buy from somebody else, i don't quite understand them wanting to build out all the infrastructure to do this kind of thing. that doesn't make sense to me. i get they want to capture wallet share, they have been doing that with apple pay, we

talked about whether you're going to be able to buy your phone, monthly subscription and being able to finance that, buy now, pay later i'm not sure i get the doing it themselves when we talked about the car, however many months ago that was, the idea of them doing that themselves as opposed to the guts of it, i don't know to me, it doesn't -- at this point it doesn't change the apple story. >> well, the question is does it change the apple multiple. and banking is not a terribly sexy multiple unless you're a fintech bank and we have seen, you know, there is actually a great divide there in terms of who is who and who zdeserves what you can pull fintech down, maybe jpmorgan up. this is about reducing reliance on other service providers and becoming more vertically integrated it is something we have seen amazon do. they can push around these f folks. you get into credit checks and

buy now, pay later, that supports a hardware business and hardware is a service, to be able to assess on the spot, that makes sense to me, though, again, i don't believe they should be building this in-house and i ultimately don't think -- apple's greatest beneficiary was the software model that was the multiple enhancement. this doesn't enhance the multiple. >> how about you, jeff, on the multiple, good or bad on the multiple if they do this >> i agree with tim. i think this is complicated, it is going to take time to build out. and it is unclear what this does in terms of profitability of the company. so i think time will tell t we'll see how it plays out i think it is interesting for some of these other companies, like a green dot, for example, this is a stock that has gotten hit pretty hard over the past couple of months, as you alluded to this is nothing new, kind of saw this coming relative to apple wanting to do some of these things, but a green dot, trading at 11 times, som

baked in they have other large partners karen alluded to this, but building the infrastructure yourself it a heavy lift i have no idea, it is a question, but does a company like green dot become an acquisition target for a larger company who wants to do something like this, but doesn't want to build it themselves? it seems like potentially a call option on certain companies like this that are trading at low multiples right now. >> we're just getting started here on "fast money. here's what's coming up next >> shaky foundation. the stock warning from one home goods ceo that suggests there is a lot more pain to come for the housing trade. we have an open house on that sector next. plus, cannabis crunch time lawmakers weighing legalization. so what's in store for pot stocks we're rolling into that one next you're watching "fast money," live from the nasdaq market site in times square. we're back right after this. at ameriprise financial, our advice is personalized.

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welcome back to "fast money. if you're worried about the housing trade because of rising rates, there may be more pain ahead. gary friedman telling investors on last night's earnings call, we have experienced softening demand in the first quarter that coincided with russia's invasion of ukraine in late february and the market volatility that followed friedman compared the macro picture to the collapse of bear stearns suggesting we still don't understand how big an impact inflation and supply chains are going to have he said predicting right now is as hard to predict as it was back in 2008 these are words that investors do not want to hear, karen i think the question is this

sort of a canary in the coal mine, or are they just kitchen sifrn sinking, giving the most conservative sandbag kind of guide? >> that is a great question. because the first part of the call was the soaring rhetoric about what rh can be and scaling, taste doesn't scale or you have to scale taste or whatever their saying is and all the things they're doing, the rh jet and yacht and architecture firm, the rh housing, talking about having rh houses they build and furnish. those two things are slightly -- not slightly, very much in opposition to one another. all that having been said, though, it is interesting to me just like a doom or docusign, rh is close to entirely losing all of their pandemic stock boom and now bust and the valuation is actually starting to get interesting to me. try to, you know, evoke the

three-day rule, we're only at day one, and i'm not very good at the rules, so i don't know if it goes down tomorrow. i might look to start buying there. i don't know the end of rh is in sight. maybe they can scale back some of the ambitions but i think that clearly higher rates are going to be hard for the housing trade, but i don't necessarily think it is the end for rh at all. we haven't had a valuation like this in two years. >> the higher rates, the supply chain aspect, and we talked about the costs of ocean shipping has more than -- has doubled and then went up recently again and so that's going up the costs are going up and then there is the pull forward effect too, a lot of these other stocks have seen, like, the docusign that karen had referenced if you bought a bureau and a floor lamp, you won't buy another one. tim is not going to buy another

one anytime soon he bought it already >> well, he's got a lot of clothes and those sweaters need space. karen makes a great point in terms of the pull forward. there is a large part of that there and there is no argument there. i'm in lockstep with her i will say as far as the consumer is concerned, i would argue that the consumer that they have appeal to, probably has the most disposable income vis-a-vis say a home depot or a target or lowe's or any other type of target is -- any other type of general home improvement type of -- i think those head wins are going to be there for everyone the inflation story, if they were trying to scare investors, they did a good job. which makes me think maybe they are kind of kitchen sifnking it i will stick to karen's three-day rule and see how this trades, see if it finds a

technical leave. the thing they have going for them, they have a higher end consumer which is going to have more disposable income, favorable loan terms, things of na nature. the interest rate story doesn't hit them one for one the same way it would hit someone else. >> the home trade suffers, it appears investors are buying in bulk look at costco, the stock hitting an all time high, dating back to its 1985 ipo jeff, you've got bulk toilet paper and everything under the sun in your home, i have a feeling. >> the basement is stocked this is -- it is a simple story for me here. it is a break jut cout candidat is way too expensive 42 times it seems a little ridiculous for this stock at this point the average multiple is something like 26 times. but i just -- i can't pay that kind of multiple for costco's margin profile great company, but too expensive

for me here. >> it is amazing that its forward pe is higher than apple. or netflix. >> it is and i do think while some of the core parts of the business are places where food inflation and goods inflation is good for them, it is good for walmart too. i like that story better i look at the chart and say around 575, you're either breaking out here, you're breaking down. and the valuation is significant. i've been wrong on walmart in that the stock has not outperformed it has underperformed target, and i think it is time i just think their e-commerce initiatives, what they have been able to do during covid and where they have figured out curbside, more importantly, they're starting to get past food and some of these staples items. i just think the valuation is very compelling. >> they have got the membership revenue which they could probably increase in price, just like an amazon and then if things cost more,

karen, don't you want to save by buying in bulk >> if you ask my husband, you always want to buy in bulk no matter what all the time i think the pandemic taught people, all right, it is okay to buy in bulk. it is an extraordinary company i've been hung up on the multiple too they're great, you know, their labor costs are high, their labor force is really good and that's sort of an interesting lesson, maybe for some other retailers but it is just too expensive for me i do like target, i do like walmart. walmart getting near -- not quite the high and it is 21 times, but target, at 14, 15 times i like a lot >> all right coming up, hot stocks in focus. what are the chances of it passing, we're breaking it down, we dig into the kwaquarter. and the big payday thattalking the details when "fast money" returns.

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welcome back to "fast money. shares of cannabis company true leaf failing to hold on to gains after reporting results this morning. an 81% jump in revenue kim rivers is the ceo of true leaf great to speak with you again. >> thank you for having me. >> want to talk about profits and specifically about margins it was an interesting quarter, you had the holidays, holiday promotions, you had a different geographic mix because of harvest, the acquisition there and the geographic mix, the change things a little bit talk about where you see margins going forward and if the picture improves in the industry what is going to make that improve? >> yeah, so, first, it is important to note this quarter was our integration hit. we closed the largest cannabis deal in u.s. history in october. so we did have a significant one time nonrecurring charges that flowed through financials this quarter. if you adjust those out, our margin profile was extremely i

think robust at 59%. we did guide to stability, you know, margins over the next two to three years of 60% on gross margin side and 40% on ebitda side we see significant margin upside as the year moves forward, which primarily centers around more supply chain capacity. and pushing more branded products through branded retail across as you mentioned our vastly expanded network of 11 markets across the u.s. >> kim, it is tim. great execution. and exciting numbers you're pointing out the second half of the year is probably the more exciting time for the outlook. i would point to the excitement of today just around the sale of a new york license to scotts myichy miracle grow hawthorne folks when do you make a splash in this state or what is your next target market?

where do you want to be? or is it about folk owinfocusin market you're in now >> we need to realize the full value of the transaction that we just completed which we plan to do throughout this year. and to build on the record year we had with 80% revenue growth year over year so we have got some big shoes to fill there but to your point, we remain inquisitive. we had announced our regional hub strategy we have a lot of areas we can grow we're bullish on the southeast, a number of markets that will be turning on in the southeast, maybe not as headline friendly if you will as some of the others, but we're still inquisitive and will remain inquisitive in the northeast as well a significance presence in pennsylvania, poised for -- to take advantage of maryland market going recreational. a ballot initiative there that -- later this year. connecticut we have a presence keeping our eye on new york and new jersey but also want to be good stewards of capital and

make sure we're entering the way that is for our shareholders. >> what is your take on whether it passes fully? >> so i think it passes the house. i don't think we see any movement on the senate until senator schumer and booker's bill has a chance to be heard, which i believe will happen sometime in april. after that, i think it is anyone's guess though it is time for the rubber to meet the road as we're in the face of midterms heat will continue to rise and hopefully congress will do what they say they're going to do, which is to pass some sort of policy reform before midterm elections. >> great to see you, thanks. >> thank you very much >> where are you on the pot trade? >> i like it and honestly i rely heavily on my man tim investing through his etf. i think generally speaking in terms of -- in terms of the overall space, it is a question about margins.

we see the crest coe labs deal as well. it is about entraitinpenetratine retail outlets you'll see consolidation within the space. i'll bullish i'm a firm believer. >> what was interesting about the news is not so much about the more legislation was expected to come through and pass, and it will. it is really as kim said all about the senate i was impressed the senate unanimously passed a bill to do research on the plant. and i think it provides a branch in or -- whatever that expression is, coming in off the edge it will give many senators the ability to get more positive on cannabis and i think researching the plant is a big part and understanding the plant of changing some of the perception out there cannabis stocks having another one of those runs where after a very difficult 9 to 12 months, i think reset expectations on margins, this is the story you rightly asked about. the expectations on federal are not there.

and therefore i think this is the pretty interesting time. >> coming up, semisally. intel ceo making bank first year on the job and big payday is turning a lot of heads huge swings in oil over the past month and that's got some options traders betting on a big pump higher. we'll tell you how they're playing it when "fast money" returns. (swords clashing) -had enough? -no... arthritis. here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

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welcome back to "fast money. call it the $178 million question that is how much money intel ceo pat gelsinger raked in last year the exec who took the reins in february of 2021 earning 1700 times more than his average employee that even as intel shares have fallen nearly 17% under his watch. the s&p is up 17% in that same period karen, what's your take? >> yeah, well, that's a headline number i don't know if that's actually going to be compensation if you look in the -- i don't remember the proxy, what document, if you look under the -- i'm not kidding, thoughtful transition section,

new hire compensation, it breaks down a lot of the pieces one of which includes a $50 million payment because that's what he was forfeiting by leaving. so i sort of think, all right, that's sort of should come out of the headline. and then it talks about some of the awards they have to triple the stock, some of them they have to double the stock it is not the full amount, right? so it is a little misleading, but they are choosing just stock price as the metric. sometimes you see companies that choose profitability or cash flow or revenue, whatever it might be but here, they're just choosing stock price, a little reason why that is, and then some of the compensation is also tied to how do they do relative to competitors in the space, which i always think is a good metric to look at so we don't know yet if he's worth it sometimes you have these absolutely seemingly ridiculous

pay packages, like you would see for an athlete or something and they're worth it i remember at the crazy show in miami, i don't know how many years ago, and you did a fantastic interview with martin rothblat who made an extraordinary amount of money. and i think was worth it we don't know if he's worth it it is possible that he is. >> yeah. i think that's a good point that karen is making. it is what a million dollar base salary, yes 50 million for leaving vm ware to go to intel and the rest is up in the air. we don't know if he'll get that. we don't know if the stock price meets the metrics. seems fair. >> that's exactly right. i think karen is right sometimes those headlinenumber can be misleading. i will say one thing, maybe this is only around the margins it depends on the momentum of esg investing. for our clients interested in esg investing, one thing we look at is ceo to medium worker pay so you get enough people focused

on that, maybe it falls out some of the esg strategies or indexes, maybe at the margin, something like that could be a head wind for the stock. i think it is at least noteworthy enough to mention one thing i do like about the company and it is clearly a longer termcatalyst. any whiff of geopolitical issues in taiwan, with taiwan semi or korea with samsung, that's going to end up benefiting the company's outsourced fab plan. chipmakers are forced to dual source, you see governments subsidizing the cost of building out those fabs, so i do think that's interesting that's a slow moving thesis, near term it is interesting the stock bounced off of 45, low end of that four-year range. maybe for now it is cheap for a region there are reasons to be optimistic longer term. >> reshoring could be a longer term tailwind for this company >> it could. i think that's the upside in the company. as far as the ceo pay is concerned, i'm with the others in terms of the headline it may not be the real number. i don't think it should be tied

to share price buybacks and other things, financial engineering can lead to that. needs to be tied aroun shareholder value. and profitability. >> coming up, crude climb and energy making big moves lately that's got one options trader betting in a big move in one name the details ahead when "fast money" comes right back. cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪ i may be close to retirement, but i'm as busy as ever. and thanks to voya, i'm confident about my future. voya provides guidance for the right investments. they make me feel like i've got it all under control. [crowd cheers] voya. be confident to and through retirement.

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it's a movement. with xfinity, it's a way better way to watch. welcome back jim is talking to the ceo of natural gas company tellurian. catch the interview on "mad money. the latest delivering alpha investor survey hitting the topic of higher oil prices head on one question we asked is where oil would finish the year. half said crude would finish 2022 under 100 bucks a barrel. get more insights from top investors in the delivering alpha newsletter, to subscribe, use your phone to hit the qr code on your screen. there it is. right now. meantime, one trader in the options market thinks there is plenty moreroom for the energy tried to run tony zhang has the action. tony >> yeah, that's exactly right. plenty of room

diamondback energy which normally trades fairly actively over 8,000 contracts traded but today more than double that traded and more than half of the volume was in the single trade, where a trader sold about 4,000 contracts of the april 130 calls. this is a roll where they sold the 130 calls to buy over 3,000 contracts of the may 150 calls for 6.5 bucks and bought another 4500 contracts of the may 155 calls for about 5.5 bucks. just to understand this is a trader that likely is taking some profits on the april 130 calls they owned, and extending this trade further out in time to may and renewing a bullish trade here in diamondback energy, expecting this can be as high as above $160 by that may expiration. >> even if oil goes below 100 and finished the year under 100 there is still a lot of room for oil companies to make money. >> i'm not in that camp. we talked how companies like

hess paid a fair amount of money to take off their upside hedges. and i -- opec plus meets tomorrow and they're probably going to ratify this 400,000 barrel production increase just because it is out there in the books and they have to do this what we're hearing from opec and opec plus is that first quarter surplus is much less than expected, demand side is also stronger than expected. >> tony, thanks. for more options action, tune into the full show 5:30 p.m. eastern time up next, final trades. ♪ ♪ ♪ ♪

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we going to the league! time for the final trade >> one of the largest institutional owners of single family renters, bx, blackstone. >> jeff mills? >> lulu, called out a couple of times over recent months i think this is about to make a new high great follow through after earnings held a key technical level lulu. >> karen finerman? >> yes, bank of america. i like its u.s. send centricity

>> i know you love home depot. so do i. my favorite store. you nibble some here. >> thank you for watching "fast money. see you back here tomorrow at 5:00 don't go anywhere. "mad money" with jim cramer starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to mad mn. welcome to cramerica other people want to make friends i'm just trying to save you money. my job is educate and teach you so call me at 800-743-cnbc or tweet me at jim cramer on days like today, doesn't it teal like the market was hallied so hard it might be due for a correction dow dipping 65