growing and buying a cheap stock with a high margin of safety and a lot of future prospects . it ought to trade over 200. >> you think it will trade over 200? the stock is roughly around 150 here. so, essentially you say get back above the 52 week high for the semi stock. we will see how that goes. we appreciate your time today . >> thank you, mike. musical read, that does it for overtime here on tuesday. fast money begins right now. right now on fast money, walmart and home depot triggering a stock revival across the retail sector. higher than 14% today, and more than 22% in just the past month. today's numbers are the worst case scenario for the economy, consumers are off the table. pleasant industrial revolution, names like caterpillar tracking stocks grinding higher this summer. the current master is here to tell us now is the time to harvest gain in this space. wheeling and dealing in the auto space turning your light on solar stocks and the wild

action at bed bath and beyond. this is fast money live from the nasdaq. courtney garcia is here. we start off with a big comeback for walmart, shares jumped nearly 5 1/2% today the biggest gain since september of 2020. the move coming after the stock post better-than-expected earnings and maintain guidance for the back half of the year. the stock has now climbed almost 19% above the may low. it is just 5% away from recouping all of the losses since the hugely disappointing earnings report three months ago. so the report proved that the worst is behind us. what is walmart worth? has it gone to a point now given where the economy is in the consumer, where it might be expensive? >> well, i think is it environment where despite the inventory issues and the challenges they patted that they have announced and that we hear about in more detail with our next guest, are things that

are not unique to walmart, and they are the most sophisticated real tailor in the world. will you pay for walmart 18 or 19 times above market premium? i think you do. one of the things that they point out, which is pretty obvious to everybody is that prices year-over-year are up 13%. this is the highest number since 1979, dan was eating corn flakes back then. your box of cornflakes that's right, they have actually shrunk the box and charged you more. i think that the operating margin is something we will continue to look at. we certainly discount the fact that a lot of the excitement comes from grocery sales. that is really what you are expecting. they said that was extremely interesting, they traded down to walmart, so to speak. seeing it from upper-middle- class and people that are actually looking for bargains that clearly don't like the same environment at some of the lower to middle class folks like . >> household incomes of more than $100,000 are shopping at

walmart now. people in general are not buying deli meat, they traded down two cans of tuna, chicken, and beans. this does not sound like a very healthy consumer at this point . >> so, three quarters of that. healthy and helpfulaughter ] mc in tuna is fine. here is the one thing i would say. so, they said three quarters of the market share gain in food was from incomes of over $100,000 that trade-off i think to your point does not speak to a consumer that is doing great, we talked about some consumer credit and consumer savings, where they have gone. so, in a period where you are likely to see food prices stay high. if you think about what is going on with the situation in europe and the hoarding of lots of foodstuffs around some of these cultural commodities. we are doing going to do okay, it is kind of like africa and that sort of thing, that will

keep food prices high. when we think about what this means for walmart, 10 said this is a sort of environment you want to own a stock and. people thought that in april, right? the stock was making all-time high, we had a rate increasing and the fed was very serious about battling inflation. the food thing is going to be a harder one for them to do. all of that being said, you said 19 times okay for walmart, 21 times next year. i don't see it as a great value right here. i think the equilibrium might have shifted a little bit. but when you think about what they got for 2023 adjusted earnings, they have guided to a decline of about 12%, now they got to a decline of about 10%. i think that is probably going to be a moving target. i think some of the inflationary stuff, as it relates to food come is going to be hard to really get your fingers around . >> i don't know if this is necessarily as bad of an idea for the consumer like trading down to walmart. what you see is inflation

affecting the consumer, but they are doing is trading down on things like groceries in order to make sure they can continue to do things like travel. you see the huge gap. inflation is affecting the consumer. i don't think it is necessary drench a mental to the consumer over all but something to watch here. >> when it comes to walmart i think it's important to see that some issues will be short term with them. we see their supply chain constraints are coming down which is a good thing. they are more into e-commerce. this is the change in the way of the consumer spending. they are not following that and will not be the same walmart that they were. they are doing that which is good for the long-term . >> is in the that walmart, if they are attracting a different consumer, a more affluent consumer, why can't that be sticky? i love going to walmart. to me it is a place that i can find almost anything, i feel like i am getting a bargain . >> think about costco and that demographic and think about the news of paramount plus and putting that in mart. if they are able to capture a bunch of the consumers they'd never had access to, then layer on other services .

>> yeah, that was the multiple that i was talking about three years ago that i thought walmart was going to start to derive thought that they were going to get a little bit more of the e-commerce which we have learned is actually really aws . >> is now the time to accord walmart a higher multiple taking into consideration the membership program of walmart's? where you pay a fee and get free shipping and walmart prime or whatever the stream to paramount plus? however they rebound brent at streaming partnership? or do you think about walmart dealing with things like higher inflation that it is grappling with, hilar fuel costs that are going to go higher because of hurricane season, or european bands come september, maybe wage inflation is here for good. maybe this is not a stock you want to give a premium to. what do you think? >> i mean i am not really in the camp that of the belief that we should be looking for

multiple expansions based on what we saw from this quarter. i am willing to give them a lot of credit for being able to pivot quite quickly uphill to a new consumer which they have all spoken to previously. but if you're looking at where they are spending those dollars, it really comes from the lower margin grocery stable type of items. what i would like to see, and what would make me look for a premium multiple or an expansion of what is currently a premium multiple is if they are actually able to capture clothing and other higher- margin items at taylor to that higher and consumer. that is where the stickiness is going to come. that is where that expansion is going to come from. right now, in terms of they have been very clear, going to give him credit. they have been able to pivot and follow consumer trends. but the consumer is trading down. i can't make an argument for expanding multiples based on the consumer trading down and

trading down to the very thing that is amongst the lowest margin for that company. so, i tend to agree with mel . >> let's play a game. i know, it is very long-winded and does not have a good catching name. but yesterday i said to tim that walmart was going to have strong earnings, the inventory problem will be a thing of the past, in the stock was going to go up 5%. i asked you what will the markets do? what would you say? >> let's call this earnings had picked. i think the dynamic here as you look at the walmart margin, walmart is outperforming target by 20% versus target out performing walmart. the dynamic of what they reported today in the dynamic of what target could report tomorrow, i think the company look at them differently. >> the question is do you think the market should have been higher based on walmart's report?

the walmarts were dragged sharply lower based on walmart earning . >> they were up 13%. walmart is not a high name and i think it was a nice option based on where you could be implied on a couple of the folks targeting higher. i think good numbers to target, target has more room to run. i'm not surprised 5% for walmart is a big move. >> to answer her question about the market, not about the single names. >> i get it . >> you just wanted to say what you wanted to say, which is fine, that happens here. i get it. but we are sharing a relative number, to date more current data from walmart about the consumer that was pretty decent in the reaction was . >> i think it does he where sentiment is right now. we are a glass have full. and glass half empty shooting first and asking questions later. we have massive gaps from walmart and target over the last few months.

the fact that they can come a month later and tweet down the loss, i have to tell you i think that is going to be a moving target. i think it is how investors are interpreting, look at costco down 15%, even amazon which was at one point cut in half and a year ago up about 12 and have percent. it seems like investors want to move into more consumer-centric names and take more of the brunt of some of the sell off earlier in the year and think they are going to lead us out but i'm not sure we are out of the woods. >> the reality is this is down for walmart in the stock rally. how do you feel about the market. does what walmart reported change how you view the market at this point? >> not necessarily. i think there is good and bad what we saw. the fact that there is a higher income consumer being affected by inflation is not what you want to see, but on the flipside we need to see some of the softening in order to with the fed lessening break hikes going forward. i don't think walmart really

changes the picture. i think we are getting positive signs of inflation coming down. we saw that with them also the supply chain issue coming down here which is going to be a good thing for the long run. >> again, inflation is coming down, consumers are more x rest, which is why people making over hundred thousand dollars are spending money on canned beans and tuna at walmart. not at all. i do not think that is positive at all. now, it plays into the narrative which is people saying inflation is more tame which means the fed is going to likely pivot. but you know that is very long. and i think if you just objectively look at the data that was put out by walmart, no i don't think it is positive, generally speaking, i did not expect it to be up much higher. >> let's get more on the retail to say. jerry stark, he now runs storage advisers. always great to get your take.

do you think the worst is behind walmart and target? are they through the was? >> i think arget and walmart were both found it 60 years ago in 1962 during tough economic times, as consumers go to walmart. why they traded down, they want to value. and great times get better. there's nothing new about this story. in fact, if walmart saw the results they delivered today, a year ago, they would have been apoplectic to see a decline in the income and the inventory is bloated. the good news is it did not get worse. three weeks ago they worried as if things were falling apart and getting worse and worse. now they backtrack and are back to where they were before. at least things are not getting worse, but this is a typical pattern in a time of consumers strapped into an inflationary economy. it's been true for 16 years and it is true now . >> you with a former vice chair of target. what do you think this bodes for targets earning. does it mean that target may be

in trouble, perhaps? because target does not have the groceries . >> will, i guess they only had it more than once after earnings, which they did in june. so, i think they took a big enough hit when they took that hit and they are smart enough not to want to take another one, that they have lowered expectations and a chance at beating that. the consumer still has money, we are not in a depression, after all. target is still one of the places where they like to go during tough economic times. they just prefer walmart because it's cheaper and everybody knows it. so target has a lot more discretionary items. target is not as strong and away from apparel and electronics. so, it is the worst environment for target by just a little bit. but i would not think that means it would be terrible. i think if they had bad news coming we would have known about it by now. i expect them to slightly be very deeply lowered

expectations. just think about how badly both of these companies are doing compared to historical norms . >> those expectations are down 30%. let me ask you a question about the warning on inventory and the impact that both of the stocks have. we are talking about an inventory dynamic that is challenging with the market and imputing the consumer and the dynamics you are talking about on the stock price is. >> these are great companies, these are really smart people rubbed by the supply chain issues and buying too much of the wrong inventory. they will not make that mistake again. they have a lot to work through. target has a lot to work through. walmart as doug said he still has over $1 billion in inventory that they don't want to have. they still have 25%. he still has a problem on his hands that he has to digest. it is not going to make that problem going forward, they are not stupid. they see the change in the consumer, they shipped toward food and that is where they took as their material. they make smart that's on

inflatable hollowing items hollowing is a burgeoning holiday. you know, they are going to mind their century and do a good job about these companies. they are going to do great. guys who were already in trouble never really figured out the strategy. bed bath and beyond or kohl's or gap are in big trouble, they try to sell ice cream eskimos here in terms of apparel. no one wants to buy it. i think some of the other companies are in big trouble and some of the others are in big trouble as we get to the fourth quarter . >> all right, this is an all weather kind of go. in terms of the notion that walmart is appealing much more to those with incomes above $100,000, how do you extrapolate that and think about who might be feeling that

pain with the trade down? >> sure, if i had not heard the story over 60 years, so many teams, every time the economy gets tough they say how many people are shopping with us. nobody likes to get taken. they go look, walmart is a lot cheaper. they are, do the price check yourself. walmart is a heck of a lot cheaper than going to the neighborhood grocery store, for god sakes, they manage the price margin so it's like 15 to 30% less expensive to go to walmart than it is to your neighborhood grocery store. so, people are foolish and they see the difference in people with money go i don't like getting ripped off especially during double-digit inflation and they see the deals at walmart and go and shop there. as soon as times get good again they say i really don't like walmart that much, it's kind of dirty, et cetera, but the nickleback to where they used to shop. i don't expect that to be a permanent change. we've seen this story so many times that i don't think this is

a fantastic change in the world or in the consumer . it is what always happens when times get tough. most of walmart growth was simply inflation. double-digit growth in grocery prices, that was where they had double digits. i would say based on the calculation they did not say it, but something like 80 to 90% of top sales were just inflation. that they are forecasting for the third quarter, i don't think they even want to be keeping up with inflation. jerry, it is always great to get your take and the context of the situation. jerry is the adviser. to they hold onto the higher income? maybe, dare i say it, maybe it is different this time with the streaming service? i don't know if mart is dirty, i don't go to walmart. i order online. i've never stepped foot, not never. hardly ever. but i order online constantly.

maybe that is the difference . >> i think you want to listen to a guy like harry, given his experience. target has gone for a different experience as you just mentioned, they don't lean into the groceries, it's a lot more of apparel. if you listen to what they said, target and walmart said the higher margin is more discretionary and having a hard time for months. those are the items that would keep that sort of shopper that they note this is a better grocery experience. walmart is not that, they will not change that. the best case they have is really doing eight walmart prize that looks like a lot of dtc that bundles and other services. that is the best bet. i like shopping at walmart, but what i am saying it is not a target experience and other high-end experience that you would expect as a comes to apparel. >> i heard about consumer trading down, and higher income households being the new walmart customer. i saw starbucks. to those customers start trading down?

you were just railing against the prices . >> i think starbucks is that they place where you are going to see those folks trading down. and i inc. starbucks is a quality issue, starbucks has a bunch of different issues including pricing. and back to walmart, i think the company deserves a better multiple. jerry made it black and white very clear, that time to go to walmart, good times you go to target. walmart is not pivoted overnight. walmart has always had strength in groceries, they are the price leader, they push people around and will continue to do this. they have been planning for years. the argument that the walmart stores are basically the same logistics that amazon spent a lot of money building, walmart has a lot of that. the pivot into the walmart prime and that business is something they deserve multiple for. they may be dirtier but i am dirtier when i go to walmart. i feel like i don't need to get dressed up, i feel like i can be comfortable . >> more comfortable. you get coming up, i like saving money. i will go wherever. modernize your move, we raise the housing trade with fresh

data, as well as home depots earning. plus, deer caught in the headlights, the troubling technicals and we break down the level in a few. best money comes back right after this. (man 1) oh, this looks like we're in a screen saver. (man 2) yeah, but we need to go higher. (man 1) higher. (man 2) definitely higher. (man 1) we're like yodeling high. [yodeling] yo-de-le-he... (man 2) hey, no. uh-uh, don't do that. (man 1) we should go even higher! (man 2) yeah, let's do it. (both) woah! (man 2) i'm good.

(man 1) me, too. (man 2) mm-hm. (vo) adventure has a new look. (man 1) let's go lower. (man 2) lower, that sounds good. (vo) discover more in the all-new subaru outback wilderness. love. it's what makes subaru, subaru. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. life is for living. let's partner for all of it. i'm so glad we did this. edward jones ♪ ♪ ♪ ♪ ♪ ♪

welcome back to fast money. a house decided was shares of home depot up more than 4% after recording better-than- expected earnings. meanwhile housing tumbled nearly 10% in july to the lowest level since february, 2021. so, what is it say about the housing trade esco >> well, i think it is bad for the left hand to get to the right but the trouble we have in terms of new build is a boon to existing and for do-it- yourself or professional contractor type of work. if you are unable to trade up i think you are more likely to be able to spend that money fixing up the home rather than taking on new debt to try to trade up to another market into a more desirable home or location. with that said i think apple

announced they are going to be moving back to work. that might be what i look for in terms of possible downsides to your home depots of the world, your lows of the world. that might be the headwind that really kind of starts to shift consumer sentiment to the names. as it stands i think the housing market is challenged, this is really the linchpin of the economy that you need to continue to drive it forward. again, i don't think what is good for one is good for another. think you see those differences and divergences in terms of things that contribute to uptrends to play out in the home depot price action today. >> the reaction in home depot is very interesting. actually the stock was lower they had fewer transactions. and higher ticket prices. inflation played a role highlighted about inflation and who knows where the total ticket price would be on

checkout. so, how do you look at this? was this swept up in the retail revival that we talked about at the top or is there a good story? >> well, what you have to look at is where we are looking. inflation has been a problem, we look at peak inflation because things are costing more. if commodity prices are coming down that ultimately helps demand toward home depot. i think a soft housing market which will continue for the near-term is positive for home depot. these are going to help people locked in the lower interest rates and not looking to jump into new houses. yes, they are going to be spending more at home depot. plus you have the pro sales there. i think longer term it is a good story for home depot . >> return to office, that is interesting. you are not at home looking at the cost . >> you have to re-caulk every 18 months. bathrooms can get bad. know, the diy, by the way, the do it yourself and all the that for the homebody was part of it

that actually did sell well. in the pro sales are what kept them in the game. the guy at home is not doing a lot at home depot . >> that stock was trading down and it really got going as it looks like walmart was going to take off. i think that lowe's is going to be really interesting when you think evaluation deserved a trade. home depot trades at a discount to where it trades easily with a 20+ multiple ve per year into the decline here. and now you expect single digits, it may be made earnings sales trading 19 times, lowe's traits about 15 1/2 times, expected earnings goes better than home depot. let's see what lowe's puts up. that one looks more interesting to me . >> there's a lot more fast money to come. here is what is up next. too bad news for amb. dear rallying, but the chart master says that this stock could be about to get bucked.

let's break down the levels next. plus, solar stocks meeting sunscreen. the group getting burned in today's session. so, should you break out the aloe or keep soaking up the sun? you are watching fast money by the from the nasdaq market site in time square. we are back right after this.

what if you were a gigantic snack food maker? and you had to wrestle a massively complex supply chain to satisfy cravings from tokyo to toledo? so you partner with ibm consulting to bring together data and workflows so that every driver and merchandiser can serve up jalapeño, sesame, and chocolate-covered goodness with real-time, data-driven precision. let's create supply chains that have an appetite for performance. ibm. let's create. and it's easier than ever to get your projects done right.

with angi, you can connect with and see ratings and reviews. and when you book and pay throug you're covered by our happiness check out angi.com today. angi... and done. welcome back to fast money. industrial size gains for some industrial names. deere and cat . let's go off the charts with the chart master. carter, what are you looking at? >> well, let's look at the sector first. xl and spider for the entire

sector, then look. we know we are in balance to the penny off of the trend line which we call a level of support which is a pre-covid high. the second iteration, look at this, where we bounce to, right to the downtrend line that has been in effect since the height of the second chart. so, the question is does this start to falter? that is my thinking, the definition of a rally. but, deere itself has been more dynamic , and more of a rally to a difficult level. we can talk about a megaphone, it doesn't matter what you call the pattern, that is all for selling books. what it is is a rally to a difficult level, that is where the overhead supply comes into play. we zero in on the here and now chart. we return precisely to the

high. so, just look at the percentages, you can plunge 23 or 24% from the high, and return to it. this is where sellers emerge from above in just two or three weeks ago emerge from below, looking to principal. so, i am a seller here. do something, don't just ride the ride if you are looking for blue skies for something to happen . >> these are specifically with construction that you are focusing on in terms of interest zero deseed similar charts for others? honeywell or ge? >> well, you can see industrials, but the xl eyechart shows where industrial

is and how much they bounce now. they, too, as i see it, are in a good trend . >> thank you. carter braxton of worth charting. tim, do you agree? >> well, it is going to do something. ultimately i think the rotation we have seen in markets and transports, look at the i ytd through the 200 and the race to get back about the 200 and down the trend lines. so, what do you do with that? i look at deere and the valuation and it is easy to get reasonably excited . it is all the other dynamic that we talk about in terms of the economic headwind. and also on some level you see a little bit of a frontloading of some of the construction and the products. i think that is something that is to be considered. ultimately i don't want to on the sector. i think markets are going

higher overall and we can continue to see some move here. the value trade will be replaced more by defensive the value. i think that means high tech . >> if they go down financing cost continue to check higher and that is not necessarily a recipe of success . >> you talk about a stock inflationary environment and it does not like it is going to come together at the same time. we think about china and europe is going to be in malaise for a long time. i don't think this is that constructive. i think tim kind of nailed it. it was a rotation into a value sort of trade with the sentiment that was really bad. but i don't see us coming out in a riproaring fashion, because i do believe what is far behind a recession in europe, china has been one of the locales that the drives a lot of interest in these sorts of ways. in this sector, in the xl i, the largest holding his the union pacific.

when you think about it it is matched up with transportation. >> i think we are looking at names in the mentioned like deere versus cat , we look at industrials in total. i think agricultural space there is a big supply issue where there's a lot of whether used or new equipment, a huge under supply right now. a lot of these are incentivized to get new and more efficient technology equipment. that is why dear stands in a long-term stand point where construction you see a lot less instruction. so, the industrials is one thing but if we have to look at them i look at a deere over a cat. >> it's not would you rather. [ laughter ] coming up, is the sunsetting of the solar trade, the group getting burned in today's session. it is time to find some shade? pedal to the metal, all the nations beating the all time high. shares hit all green lights and we break it down 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. (vo) hi. we're visible. a different kind of wireless company... ...running on a big impressive wireless network. how are we different? we exist only on your phone. which means you sign up, get help, and pay all right here. so you get a single-line unlimited plan for as low as $25/mo. switch today at visible dot com. you'll always remember buying your first car. and buying your starter home. or whatever this is. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them.

we believe that your investments should work harder for the future you imagine. and that's where our strategic investing approach can help. t. rowe price. invest with confidence. ♪dance! by christian a medice & elisha noll♪ ♪are you ready?♪ t. rowe price. ♪♪ ♪let's go♪ ♪♪ ♪ahh yeah♪ ♪♪ ♪step to rhythm like♪ ♪you're going out tonight♪ ♪dance get with the groove and♪ ♪dance get up and move let's♪

♪dance kick off your shoes and♪ ♪show me how you♪ ♪dance♪ ♪♪ ♪dance♪ ♪♪ ♪dance♪ get a free storage upgrade and case with s pen when you pre-order. welcome back to fast money. these guys looking at solar

stock losing almost a percent and a half after a big run this month. this is as president biden signs the inflection reduction act that includes billions in clean energy credit. so can solar stocks rebound from here? what do you think? >> yeah, i think the inflation reduction act was big one for this. you saw a lot of the names moving 70 or 8090% of the last two or three months. it makes sense from a top-down view that you want the segway and exposure. we are at the point now that may be you want to take a bottom-up approach. a lot of the names trade in triple digits, have quite a bit of debt on the balance, which is why first solar is one of the names that i really like. it has manageable debt load. and trade is expensive for the market, but it is actually a decent valuation. i pictured earlier, it is a name that you might want to look at stock replacement.

calls arlo, it's an opportunity to continue to possibly ride the wave, but take them off the table and take your outside exposure. >> my concern with your solar stock here over the last couple of years is this is where the future is heading. but a lot of that has been priced into the stocks. the trade is so much more expensive than clean energy sources. so yes i think the future is headed this way. i think probably a better way of playing this is looking at places like clean energy metals, for example. some of those might have more room here which work at crazy valuations. that is my problem in the short- term picks i think the people miss that the metals needed to create a manufacturer solar panel or soto solar insulation have gone up in price. we are at the point where you can have a project but it is much more costly to do and complete and a lot of them have been scrapped picks out, the copper prices, as we know, are up in the 470s all-time high,

but still above what they have been of the last 10 to 15 years. it also comes on a day that we have talked about this news, germany has said look, we are going to keep our last three remaining nuclear power plants open at a time when we have a major gas problem and we know that they are safe. i know there's a lot of debate out there. but i think nuclear is safe and i and to me it is surprising that we don't see more of a rally today. this is an endorsement for nuclear too. to coming up, going above and beyond bed bath and beyond hiring retail traders and how executive help fuel the rally . check out the nation revving up to an all-time high. is the sckeato rdy for and all time road trip. we will break it down when fast money returns. get 1.80% interest, and earn up to $300 when you set up direct deposit. sofi get your money right. space.

the boundary of human achievement. the new frontier. ♪♪ eh. ♪♪ it's not time to escape. it's time to engage. it's time to plant more trees. hoo! ♪♪ time to build more trust. time to make more space for all of us. so while the others look to the metaverse and mars, let's stay here and restore ours. yeah, it's time to blaze our trail. 'cause the new frontier? it ain't rocket science. ♪♪ it's right here. ♪♪

welcome back to fast money. shares of autonation topping inserting to an all-time high today. let's bring in auto analyst michael ward. great to have you with us. i want to talk about the search. was there anything behind this? >> there are two things i heard

that one of the big brokerage firms had a positive report, but also the news from walmart and home depot is a good news . >> at the same time it is interesting to me that the consumer means investors have the story wrong, there is trouble with the consumer and trouble for autonation, that is not necessarily true. chemical, the market has two things wrong. they have it wrong on the auto sector, the position that it is in relative and they should perform the rest of that economy over the next 12 to 18 months. third quarter production is up 30%. specific to the dealers and autonation, i think they have it completely wrong because historically less than 10% of expected delivery over the next six months would be backed by a consumer order, now over 70%. over the next six to 12 months, that to me is almost indifferent to what the consumer does picks over the

next six or 12 months you think that sales are pretty much secured because inventory is so low because demand is so high? >> there are not enough orders out there and it is being delivered to a consumer. so unless you saw a big wave of increase in cancellation of those sorts of things, yes. sales will be strong. we have not seen any evidence of cancellation, if anything the order book is getting stronger. >> how much, when do we see those cancellations? i am trying to figure out how sensitive an auto dealer or automaker is to a softening consumer. maybe they are good right now in inventory is tight, but at some point down the line, people start losing their jobs or dealing with a lot of cost, they may not want the car or there may not be a reason for the car anymore. >> yeah, in certain regions that can be the case. right now i've been trolling the auto sector for 40 years. is is the most bullish i have

seen underlying demographic trends in the in tighter 40 year period. does over 12 years of age and over the last five years we have the biggest increase in licensed drivers since the study 70s. vehicle demand is stronger, and one other driving point on that is the millennial's. people are not paying attention to demographics. the prime age for home and vehicle ownership is 40 to 45 age group and millennial's, which is bigger than baby boomers, the oldest ones turn 40 in 2021. we have a big wave ahead of us. talk to us about the used car dynamic here. i read that 90% of the used car inventory was itself sourced does that give them a big advantage by lease, trade-ins or that sort of thing? or are we still an environment where the used car inventory is really important? >> it is vital. most people trade their car in when getting a new one. that is about 80% of demand.

people trade in their vehicles. so what autonation is able to do is self store. they are not forced to go out and pay premium prices. part of the overall transaction. they can determine which vehicle they want to keyport which they want to sell back to the auction markets. so, that is an important dynamic for companies like carbonic you have to self source that inventory where customers come into the autonation showroom as part of the trade in and overall equation. there michael, great to get your take, thank you . >> think you very much . michael ward, a 185 price target on autonation. that's about 50 bucks upside, what you think of this one? >> i like it. i tore the auto spaces and agree with the trends he talks about in terms of supply and demand and where we are with some of that graphics and vehicle life. it puts me straight into the oem. i would rather own gm. to me i look at the business in florida and the business and

gross margin improvement, they are obsessed by cost control, that is something that the auto sector is something we don't give them credit for. so i think the auto sector demand trends are more insulated in this environment because of demand, even though affordability factors. pricing in auto for for, we heard this, they are raising prices dramatically. so far it is working . the democratic aspect is interesting in terms of the uptick in licensed drivers and millennial's seeing a bigger wave coming then baby boomers picks the millennial's are a large regeneration than baby boomers. i think the same idea is on housing. right now we see a pent-up demand that now people are trying to get the cars. that is why we traded down for things like walmart so we can get cars. that is going to have happened with housing. we are pushing the issue down the line. there's a huge generation coming that start families and need cars and houses. that is going to be a trend

over the long-term that pushes it down the line. >> there is no argument against the demographic shift and the supply and demand dynamic . i have one bone to. it would be the consumer finance acquisition that they have recently made. i would assume that going to where we are in terms of the economy, you might see some chart related and you might see some margin of safety erosion there. but other than that i think it is a very compelling argument. coming up, shares of bed bath and beyond searching higher. what had this stock moving, next. fast money back in 2.

♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq (♪ ♪) yeah... oh. how do we demonstrate our unmovable strength? (eagle call) nope. how do we show that we'll stand tall through the storms? nah. (thunder) how do we make our clients feel secure and- ugh... not lions. (lion rumbles) we do it with our people. people who've been looking after people for over 170 years.

welcome back, here is a sneak peek of sonoma, catch the exclusive interview at the top of the hour. meantime check out shares of bed bath and beyond, rallying as much as 70%. 70 percent at the peak today, news that game stock chairman ryan cohen is getting in on the action. a regulatory filing shows his adventures on 1.6 million

shares of bed bath and beyond vetting the stock is headed about 300% higher by january. mike, what you make of this? >> well, this is pretty incredible. first of all, bed bath and beyond traded about 2 million contracts today. represents 200 million shares, 7.8 times the average daily volume. the float is only about 65 million shares. the options volume represent about three times the float. we saw a lot of the committee in strikes and actions that expire, those are the most active contracts. the one that caught my eye and the ones that he indicated he was purchasing are in january of 2023. he was i in strikes from 60 up to 80. the 80s traded over 100,000 contracts today. those were trading for several dollars a share over three dollars. so, the material portion of the stock price that we are looking at here could continue may be

much, much higher . >> what was interesting is that shortly after the game stop shares started to rise as well, this part of the mean complex going on. what do you think? >> will, i look at the short interest in bed bath and beyond and 36 or 30's percent could be stale, but maybe there has been bad numbers lower, but this is a stock that has had numbers close to 60%. again, the existential dynamics at bed bath and beyond are different than game stop or even amc. i think they have a balance sheet issues. that was an issue at amc. i'm not surprised to see this. this is a broader market dynamic of what is going on with mean stocks . >> karen emailed me a chart of bed bath and beyond, which is trading horribly compared to what the stock is doing that they should raise money immediately and take advantage

of this . >> is the other two companies did . >> exactly . >> here is that thing. the tail wagging the doctor just because he buys a lot, there is no fundamental reason why the stock should ever trade their. he is squeezing the short deliberately. if he did that and then the stock rallies, then they sell stock, buyer beware. there is no fundamental reason why the stock should be here right now. i think that is fair to say. and to me this feels like real . >> yeah, exactly. >> if he doesn't do this, he knows that buying all of the calls so far is going to squeeze the stock. >> well, think about what he is spending to buy the calls to produce this much more in market cap, that is probably a great trade . >> i think we can sit here all day long and talk about the fundamentals, but that is what we are going to do is look at

the technical, that is what not what they are trading on. i think we have all seen that you cannot necessarily bet against the retail traders that have a lot. the fundamental is not to say it cannot happen. >> mike? would you be inclined to put on a bearish options trade? or is that water too treacherous to tread in? >> a bearish that trying to collect some of the highly elevated premium with the effort to squeeze it. but shorting the stop, absolutely not. they are just too pricey . >> all right, thank you r fo that. for more action tuned into the full show fridays at 2:00 p.m. eastern. up next, final trades.

i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones

final trade time, bono means . >> stock replacement. the higher income traded down of walmart shares is

attractive, i think it is riskier than the market . >> corner? >> i like the long-term story here. >> you, autonation powerful breakout with the reload on the long side of the breakup . >> that is a fun show tonight. cory, would you rather, bono did not bring back any guest. a successful outing. thank i am here to level the playing field for all investors. i promise to help you find it. mad money starts now. >> hey. i am cramer. welcome to mad money. i am doing it fast. i am trying to help you make some money. my job is to entertain and educate and teach. call me at 1-800-nbc or tweet me @jimcramer.