compromise, which is what you have to get in washington if you are going to get anything done >> yeah, ethan harris, thank you. appreciate it. okay >> thank you >> we've got exclusive interviews tied to earnings that we just talked about in this hour coming up tomorrow, jobs report, obviously, in focus. stocks finished the day higher overoveris over and we're going to toss it over to "fast money" now. right now on "fast," the unstoppable. major averages keep powering hig h higher the bull/bear tug of war straight ahead. plus, why wealthy investors are piling into cold, hard cash. their slow money play straight ahead. apple closing in on new highs ahead of the big developer's conference and carvana keeps on trucking. what is behind their nearly 50% gain in just the past five days.

i'm melissa lee, this is "fast money. on the desk tonight, tim see your, karen finerman, dan nathan, and victoria fernandez we start with new nine-month highs. the nasdaq up 1.3%, the highest close since august 16th. the s&p hitting levels not seen since that month last year the moves coming even as we see some signs of consumers coming under pressure dollar general with its biggest drop on record after they said its core shoppers reigning in spending all of this as we await tomorrow's job report. so, will big tech's boom continue to boost this market or will consumer slowdown start to pump the brakes on this rally? seems like these two things are going in parallel, tim >> it's fascinating, because the retail performance, the xrt, we talked about that, but even the names that have been very defensive have been giving ground we're going to talk about lulu, overcoming tough price action.

it's a combination of, when you hear a dollar gen talk about the lower income consumer, the reality is the job market may be strong and we have the jolts numbers yesterday. but there are some heavy duty pressures on the consumer. and let's not forget where inflation is hitting them hardest. so, it's fascinating i think -- the disconnect between what's going on with, say, the nasdaq and the dow is a lot of different quotes out there. the journal was quoting the chasm was the widest since october 2001 and dan probably has some ideas about what was going on back then it's the kind of stuff you saw right before things got kind of nasty. and, yeah, i -- not going to say that, but the fact is that the consumer and consumption is the biggest part of our economy. we know manufacture is deep recession right now. we have more data. retailers not trading so well. >> dollar general, in terms of what they said that was so disturbing, they said their consumer is trading down to food banks. things are so bad in terms of

food inflation, the removal of the child tax credit and other headwinds. >> and when you think about what's in this negotiated bill here, the debt ceiling relief, and you brought it up earlier today, the moratorium on student -- think about this. if you had student loans, you didn't have to pay it for the last three years so, people who have student loans are probably in an age group that maybe are not doing the smartest things with their money anyway, they are yolo-ing trips to whatever. all of a sudden, this does have the potential to really slow down the pace of, you know, we went from the goods during the pandemic and the demand for them to services, and we're seeing that in a lot of companies, at least in the stocks, the way they've acted. they've really slowed down a bit. and to tim's point about that gap between, let's say the nasdaq and the dow, that does bring us back to those periods before the dot com and the nasdaq just imploded, and there's another stat here. if you look at the gap between the market cap weighed s&p 500 versus the equal, you know, the equal weight, it's basically flat on the year versus an s&p

that's up 10.5%. the last time it was that wild was the year 1999, right before we saw all the dynamics shifting so, you can say, well, these names are different, this is different this time, we had a nice little debate about this the other day on the show. the one thing i'll say, the more staff that you read about what's powering the a.i. boom for all the big platform companies is that the cost to compute and commercializing these things, it's really expensive, right so, this is what we're seeing right now is the cap x build into that. but once we do have the ways that these companies can monetize it, you think you might see into a slowing economy, which is kind of clear what we have right now, you might see the spend pull back. >> i guess i'm not seeing the spend pull-back on anything a.i. related. i understand the bubbleiciousness of it, but it's pretty early in the bubble when the bubble ends, it's going to be like, wow, all this money

spent, but what did the buyers have for it for building up this a.i. so much but the other part today, talking about the discretionary spend, the consumer really being hurt, dollar general, but we look at macy's, and macy's really talked about a couple of things that i thought was interesting. the $75,000 and under consumer really sort of feeling the -- feeling the tightness of, you know, inflation and maybe some uncertainty. >> that's 50% of their consumers. >> that was really important to them you think of blooming dales, that was boimportant, but macy' was weak and interestingly, the quarter started out fine and then mid march, they cite mid march, when svb happened and the bank crisis started, and then, i think there was some in april some residual debt ceiling. we don't know about may. maybe we'll see a bounce there some of the commentary hasn't been great about there being a giant bounce in may.

but i thought it was interesting, macy's has been down a couple of times on others missing. including capri, which is a big wholesaler to macy's, and yet they were able to turn it around, and so, you know, bad news, decent price reaction, that would have been like a guy thing. i thought -- that was sort of, i don't know, i guess i'm looking for something hopeful from the consumer that i think is st still -- is still there. >> yeah. victoria, how do you think about the consumer and whether or not, you know, this a.i.-led tech rally that we're seeing, if it can go on in the face of headwinds to the consumer? >> so, i think i'm going to try to bring a little bit of that hopefulness for karen here dan is talking about the dichotomy that we're seeing between the asdaq, the cap weighed s&p, the equal weighed s&p. i think you see that same dichotomy within the consumer space. so, you look at those higher income consumers, we'll talk about them a little bit in regards to lulu later, but look

at the lower income versus higher income, dollar general, as you mentioned, going down to the food banks from them, where as the higher income consumer is still spendinging. maybe they are going down the cost scale a little bit, but let's look at where the consumer sits their savings rate, despite the last reading we got, savings rates have gone higher they have a little bit of cushion. quit rates are not as high, so maybe things are starting to stabilize there, which means wages will start to stabilize. if inflation is coming down, then that's going to help income, real income for them, and let's look at oil prices oil is now 190 days in a row below its 200-day moving average. that's the fifth-longest trend we've seen if that flows through to gasoline prices, disposable income goes up for consumers again. so, i do think there's a little bit of optimism here that the consumer can hold on i think you need to play it

maybe with some of the discount stores where higher income consumers are moving down as we go through the rest of this year >> you know, it is interesting, there are three stocks that stick out. nike is trading up in sympathy with lulu, it was down 20% in the month of may starbucks was down 15% in the month of may disney, i know they had earnings, they were down 15% in the month of may from its highs. when you think about the low end and that's kind of a midrange, but very discretionary to the high end -- sometimes you have to look at the stock market and see what it's telling you a little bit and so, you know, it's interesting -- you see all the other stuff that's yolo-ing. i can't believe we're still talking about carvana. it's a zero. but we're talking about it, because it's up 50%. who is buying it upstart. remember that one? we don't know what it does, but it went up we're talking about that again it's up 300% whatever so, i think there's a lot of behavior going on in the stock market, which should not make you feel bullish, in my opinion.

and look at three companies that we all engage with on a daily basis and look at the stocks and how they're trading. so, to me, i would put more weight in those, in the price action we've seen in the last month. >> well, i'm sure nike and, to me, it's a valuation call, there's nothing broken about nike i've loved the company forever, mostly been on the long side the multiple got to be, why am i paying for that, other than dan, who probably has a different pair of sneakerser if every day of the month, i don't. and at some point, having bought four, five during covid, because why not, i'm pretty much tapped out. but you know, starbucks went 22% or so into that high before it pulled back and gave some n numbers. and i think starbucks, we've -- i've lamented the inflation at starbucks, i'll say this there's a lot of these companies, and i you this it's cmg, starbucks, i don't think they're going to be able to pass on prices the way they have been and that's been the glory train for them >> we talked yesterday about how everything is coming down.

all these prices are coming down in terms of disinflation may be a signal. >> prices raw materials -- >> inputs. >> inputs, yes, yes. >> i guess it's a matter if companies are going to pass it on there's going to be greed-flation. >> 95 bucks, wait toi want to o nike again starbucks, it was trading up to 118, 119 these companies didn't deserve those multiples, but when you pulled back that 20% to 25%, i just think there's a lot of rotation >> i feel like there's sort of an imbedded china play in there. they were all hyped up on the reopen and that sort of fizzled, and so, i think that was part of what brought starbucks down and nike down and so, i wonder, i don't know, if you are bullish on china, which i think you are, right -- >> mildly. i mean -- i just think we have had a voracious risk on appetite for markets, and you don't reach out andbucks in that

environment. i'm talking about the character of the market here is such that where as six weeks ago, people were very bearish, looking for health care, looking for staples, looking for places to hide out and -- no one wants to hide out right now professional managers are behind the curve if they missed this rally. >> all right, for more, let's bring in greg, chief economist at ey. greg, great to have you with us. how do you think about the consumer and the headwinds that we're hearing about from retailers, and yet we have a market that seems to be raging because of this a.i. boom? >> well, i think what we're seeing is a story of nuance. we are seeing a retrenchment in -- no retrenchment, really, in consumer spending, but we're seeing softening momentum when it comes to spending activity. if you look at some of the drivers of consumer spending, there are an increasing number of head wwinds. we are in an environment of high prices, high interest rates, and fund mamentals that supposedly broad consumer spending that is

softening. we're seeing increased evidence of excess savings being drawn down, and we secret conditions that are tightening. those are all headwinds for consumer spending. >> we also have the end of the student loan moratmoratorium, au mentioned, you know, higher rates, credit tightening how do you sort of parse out that versus the disinflation that we've seen in raw materials? pretty significant, you know, declines that we've seen across the board, if it be food or energy or metals >> i think we are seeing more and more disinflationary momentum across the economy. i think we have to be careful not to pull out the old playbook when it comes to trying to evaluate the likelihood of a recession in this type of environment. there are unique characteristics in this business cycle but as you said earlier, we are seeing signs that goods price inflation, commodities price inflation, they're all cooling, and cooling rapidly. and i wouldn't be surprised to see more disinflationary winds when it comes to some of the

service sector activities, including housing and even travel because at these prices, this is preventing some consumers from traveling and from enjoying leisure activities as we look into the next six months and into 2024, we're going to see slower consumer spending, not a retrenchment again, but slower consumer spending will bring about gradually slower demand and less inflationary pressures and i wouldn't be surprised that disinflation surprises us to the downside >> greg, why not deflation how about getting back to a place where we were pre-covid? all of the covid pressures are going to go away we've seen this on supply chain, we've seen this on reopening, it's all taking a lot longer than expected. the problem in 2018 was deflation. the fed was having trouble getting to 2%. maybe that number was never right and we all know where the labor market is, and we think that's very lagging. why not deflation? i mean, why are we not going to go back to where we are?

why has the world suddenly changed? >> well, i don't necessarily think that we're going to be experiencing deflation in the sense that deflation is an environment where prices are falling. that general little coincides with an environment that is recessionary and severely recessionary if we were to get back to an environment where inflation is stable, let's say back around 2%, that would be good enough, because it would give the fed the impression that essentially there is that price stability element with sustainable growth and sustainable price acceleration that would be the type of environment that the fed is aiminger if. deflation would really be an environment where we see, if it's broad-based, really a retrenchment in private sector activity, that's not really what we want to be seeing we are still aiming for that soft landing, that environment where inflation comes down without creating a recession i think the landing strip is really short and narrow. there's still a possibility of a soft landing, but increasingly, we're seeing that there are decisions that are being made

that are nonlinear you're not just looking at businesses and consumers deciding to spend a little less or invest a little less, but stop investing or stop spending, especially for lower end consumers, and that can be a real risk for the u.s. economy >> greg, thank you >> thank you very much >> victoria, i think that's an important distinction. call it whatever you want, but consumers are actually doing is really what matters. >> it is, i mean, that's the majority of our economy is what the consumers are doing. so, you have to focus on it, and as we were talking earlier, it's not that the consumer is going away the fed talked a long time about kind of destroying demand and we needed the consumer to actually kind of fall off the edge of a cliff is what a lot of people were saying, and that's just not going to happen. i think people were underestimating the strength of the consumer and the savings they had built up during covid so, now they're there, they're going to start -- they're going to continue to spend, but it will lower -- in a lower price

range than before. i think that's what's going to keep us from going into a bigger recession than what we would otherwise. i still think we're going to get a mild recession at the end of this year, but it's the consumer that's going to keep it mild at that point, and i think as you talk about stocks around the consumer, yes, everyone loves the a.i. stocks and that's what's driving the market right now, but you have to look out towards the end of the year and say, how can i aperture a little bit of this consumer spending that we're going to get? and i think that's a name like a tjx, maybe you look at housing, housing has been up as of late perhaps you play that a little bit with a name like lowe's. i think you can find opportunities and not just leave the consumer in the dust >> all right, meantime, we've got an hearnings alert on lululemon. receiving accelerated sales in china, issuing strong full-year guidance we've been listening into the conference call. what's the latest? >> melissa, i have, and so far,

no comments about a consumer pullback calvin mcdonald startled the call really scouting the strength outside the u.s., with international sales increasing 60% year over year led by a meaningful acceleration yes, in china, where it saw revenue increase 79% mcdonald, in fact, just returned from shanghai, where he said he was impressed by the positive reception of the lulu brand on the ground if we break down the categories, women's category, up 22%, men's up 17%, while accessories were up 67%, which mcdonald says, you know, it's the smallest of the three categories, however, he is optimistic about the runway for accessories, including backpacks and footwear lulu continues to build out its tennis and golfwear. he called out the growth in women's bots ttom, driven by its dance studio pant. lulu underperforming this month, but surging ino overtime by 13%

mel? >> seema, thank you. don't miss an interview with calvin mcdonald tomorrow on "squawk. >> would you like me to address the growth of women's bottoms? >> better you than me. >> yeah, right, right. i like lululemon, i haven't been in it for awhile i thought they weren't going to have a stellar quarter, so, i blew it. i missed this one, but i actually think it's a little bit more expensive now, up here, you know, $30, i don't know where it is right this second i -- i really thought we would see more pressure, but they've done a tremendous job, again, i mean, raising guidance when you don't have to right now, right it's kind of easy to just not do it, so, they must feel very confident, so -- good for them i might have missed this one yet again. too expensive. >> is this really going to get away from you? the way i look at it is, i t think -- as great -- they're very much like nike. they have pricing power, look at

that operating margin, 20% they are holding china's growth. they are getting different segments, they have men, dan, any time soon? >> i'm wearing them. >> atta boy, nice. >> i've been working out a little bit, obviously. >> obviously people been talking about it so, i mean, i think you have a case here. but why would this get away from you? this is my point there's no reason that i think you need to pay more than 30 times, and i think that's kind of the story this stock, also, was off 17% into this print. the eaction is not that big of a surprise >> if lulu can come up with a pant, like the men's pant, men were wearing the lulu pants to work -- i'm always looking for a better bottom, that's for sure >> no question. broadcom on the move after reporting details from the quarter next. plus, apple shares near a record, and the developer's conference is just days away the hype around this event is all about a new vr headset

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projecting year over year growth as it ramps up its investment in, what else, a.i >> a.i >> kristina partsinevelos has the latest kristina >> broadcom shares did a complete turnaround. they were negative when the earnings came out, but the ceo took the mic on the call and weighed in, of course, on the impact from a.i.-related sales t a.i. revenue was 10% of total revenues right now, he's saying it's 15%. and anticipating it to contribute more than 25% by end of fiscal year 2024. saying quote in fiscal q-2, they just posted q-2, he said, we expect this revenue to exceed $1 billion in the quarter so, that number, $1 billion, is up from the previous $800 million benchmark. management believes that quarterly revenue could double by the end of this year. considering broadcom makes custom chips for google, meta, and signed a partnership with

apple, those details for that apple deal have been scant thus far, why investors want to hear about it on the call, which is still under way. broadcom, we know, is trying to acquire vm wear but hit a lot of hurdles. tan just said he believes that deal will close this year. he said the same thing last earnings call, too mel? >> kristina, thank you tim, where do you go on broadcom >> well, the stock's doubled, you know, since october. i get the secular dynamic. they and marvell are the two monsters and their customers are a who's who. we're talking apple, google, meta they are able to do -- power dynamics be more efficient they will continue to be a leader i just get back to, what do you want to do at this point and i think the best part of this investment cycle for these stocks is, you're waiting. you're not chasing it.

>> yeah. dan? >> it's funny, a lot of people were chasing last week you saw the way the stock traded, it traded nine and a quarter this was three trading days ago and here we are just under $800. it's trading up now, but it's interesting, until they actually said, or gave some guidance about that 15% of their chip revenue, that is going to go to 25%, again, this is a company that is expected to do $35 billion in sales, when you think about market cap terms, what's gone on here, it doesn't make a lot of sense unless you can forecast that sort of growth out for much longer than just a couple of quarters because i think that move from $700 to $925 last week incorporates that. i don't know if you talked about c3.ai last night, you know, listen, i think the fever's breaking in some of the names that don't have, like, the direct thing that you can put the finger on. if you can't guide the way nvidia did last week, so, some of the other names let's see how broadcom closes tomorrow, because i this i that could be a really important part you saw how marvell closed --

>> if you can't guide 50% revenue forecast, you condon't any a.i. -- >> i know i was heated on tuesday, whatever day it was -- >> just tuesday? >> okay. it was a 4 billion guide in the quarter that launched a half a trillion dollar market cap gain across seven or eight stocks, and that feels a little unnatural to me. >> victoria, quickly on broadcom >> yeah, i mean, it's a great stock and you can have exposure in your portfolio, but it's like the guys are saying, is this really where you want to get in if you don't have it you can look at qualcomm trading at 12 times, applied materials, land research, 17 times, and you're going to get some of the a.i. benefits, but maybe not at the high cost i want to hear about their backlog, that's supposed to be significant still for them, which would be a benefit, and with the apple agreement so, i think there's room here, but i would look other places. >> all right, there's a lot more "fast money" to come here's what's coming up next don't look now

but the world's biggest company is about to break its own record apple has finally come within a stone's throw of its all-time high so, the $3 trillion question, where does it go from here plus, netflix password sharing crackdown taking center stage at the streamer's annual shareholder meeting. how they're tackling the issue, as well as the writer's strike, ahead. you're watching "fast money. live from the nasdaq market site in times square. we're back right after this.

i struggled with cpap every night. but now that i got the inspire implant, it's making me think of doing other things i've been putting off. like removing that tattoo of your first wife's name. inspire. learn more and view important safety information at inspiresleep.com. here is a stat worth some fanfare. shares of apple getting within a

whisper of an all-time high. shares are less than $3 from that record set back in january 2022 all this happening just days before the day's big worldwide developer's conference, where they are expected to launch a vr headset. this would be a first new major product launch since late 2014 i feel like dan is going to criticize this headset from the get-go >> no one's going to use it. >> there you go. >> it's going to be $2,500 think about the moment we're in right now in and around a.i. and all this generative a.i., all the large language thinks the future world of computing looks like, and it looked like it through a $2,500 headset, so, apple's going to introduce something right now.

ultimately, we will all wear some sort of thing on our head that does something that brings us into augmented reality world or something like that, but not here, not right now, and not with this device, because it's just not going to be the sort of thing that a lot of people are going to use right now >> i get what you're saying, i think the enthusiasm over meta, or the metaverse, not meta specifically, was a little, you know, premature, maybe, but apple time and time again has come up with new product categories that we didn't even think we needed, who thought they needed a watch? i mean, watches have been around forever, who needs a watch and yet, everybody is wearing an apple watch now, including myself, who poo-pooed the watch initially. they repeatedly come up with things that you don't realize you want that you want >> it's not because of the watch, it's not because of wearables, it's not because of ipads. it's now -- i'm looking at analysts on the street, but everybody does this, they give it two multiples, the hybrid

multiple a hardware multiple -- a hardware multiple of 22 times and a recurring revenue software multiple of 35 times you can throw whatever numbers you want on this we never did that before, okay so, you know, i think -- the quarter apple just put out was extraordinary. their ability to -- with their balance sheet to buy back shares, goose up dividends, et cetera, is unlikely company. so, they deserve what they're getting in the market we have at some point i think the most important thing is that apple, instead of making an all-tile high, made a relative high against the s&p about a month ago, which was kind of a harbinger of this move >> so, i think your point about hardware is really interesting -- about new product categories, however, though, the watch didn't take off right away it needed some time, right and it sort of -- >> to figure out the fun functionality. developers needed to come around to it. >> chicken and egg thing do you build the headset or the

software first or both so, i think that could happen here to me, i'm not in apple for this part of the story. and it's so interesting that we saw meta today put out their $499 headset, which would have been the thing last year, and now, it's an afterthought, maybe it's good, maybe it isn't -- >> because they have a.i >> there's that, as well, they have a tremendous cash-generating machine. but to me, that's not the reason to be in apple the two numbers scare me in terms of the subscription multiple number, which is very high, right? and then the hardware number, which is even higher relative to historical hardware numbers. >> right >> all right, coming up, netflix about to kick off its annual shareholder meeting with ads and password sharing taking center stage. one our next guest is sticking with the streamer. and how options traders are playing the name, when "st ne rurnsfa

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welcome back to "fast money. here is another check on how the markets ended the day. major markets all higher after the house passed the debt ceiling bill shares of carvana more than tripling this year, but 70% off

its 52-week high mongodb surging on a revenue beat pagerduty dropping, and sent until one plummeting 30% on a revenue miss, weak sales guy dance. we have a news alert at activist firm trian the cofounder is retiring. that's according to a statement from the firm. we know that trian announced they are rebuilding their stake in disney, remember, in the past, they had been involved in disney, they pared back that stake, now they're back in. meantime, netflix's annual shareholder meeting is about to begin. the stock hitting its highest levels since february 2022 our next guest says the company should take a victory lap tonight. let's bring in tom rogers, he's editor at large at "newsweek." you have a lot of other former titles, too, tom, so, we'll skip those, it will be the whole segment. great to have you. >> thank you >> you've been a longtime

netflix bull and i'll wondering, we think they should just say, you know what, we have won do you feel like you have been proven right, given what all the other streamers have have reported in their quarters >> well, i think i've been proven right that netflix was going to emerge as the most valuable media company, and is more valuable than disney today. if you pull out of disney, the parks business, which i really consider to be in the travel and leisure area more than media, netflix's media value is probably two and three times the value of disney as a media company. but look, netflix still has things to prove. not the least of which is that password sharing, where it's at 100 million people, are getting the service without paying for it, can be something that they can correct. i think to the extent they can do that, they will ghon straight that they have an even more

powerful franchise athan the market is giving them. >> tom, it's karen, thank you for being on so, excellent call, obviously, over many years, to be long netflix. but so, now they're clearly the winner, and so, how do you think the rest of the field shakes out? it's crowded, and everybody else is losing money and content costs are still very high. how do you -- i mean, i've been expecting consolidation for awhile, doesn't seem to be happening. how does it play out from here >> well, netflix has developed three modes, i think, that makes it very difficult for others to emerge on the same level they have an enormous content span where the other tradition media companies are having to pear back. they have a phenomenal international distribution, as well as international production play and that international, global play they have is one that allows them to have much more

ability to create value yondz the u.s., where the others are very stock in terms of u.s. centric assets and then they have enormous cash flow, something we've debated on this show every time projecting $3.5 billion this year, compare to that to disney, which lost about $4 billion in cash on its streaming efforts. and you put that cash flow and it helps them support the other two molds very significantly so, the others are burdened by a traditional business that just continues to decline and cord-cutting is getting worse, and now we're back to 58% of households in the united states having the cable satellite bundle, which was back where we were in 1992, three years after we launched cnbc, and that is just an indication of how difficult the whole is --

hole is, that the traditional media companies have to climb out of and it's not just, can they hit profitability in streaming, can they be profitable enough to make up for that hole and more and there's a real question mark as to whether they will, consolidation will probably follow from that there's no indication that consolidation is going to happen quickly. so, in the meantime, the traditional media companies have a lot more to prove. >> it's interesting, because you've been skeptical disney for awhile and sounds like you are skeptical of its streaming business it is really the legacy business that is preventing it from seeing its streaming potential, because it's bogged down by that balance sheet that's laden with debt what is it -- when disney announced they were going to get into the streaming game, everybody thought they have this amazing content of -- library of content, i should say, so, who can catch up to disney on that front. what happened to that? >> disney does have a phenomenal library, and that library has value. warner brothers has a phenomenal

library, as well, and that has value. but as the ceo of warner brothers discovery said recently, five shows on hbo represent 90% of their viewing when you have a statistic like that, the value of a library relative to building a streaming service just is not as important as the kind of value you can build by creating new shows with the kind of content spend that netflix can bring forward. startling statistic. the top ten list of nielsen every week that comes out, the combination of all the other streaming services together, netflix has three times that viewing audience among the top ten list and five times greater viewing than its next largest -- biggest competitor in terms of viewing share. so, there's just an awful lot there that they're burdened in terms of the existing business netflix on a whole other plane and i think while the assets

these other companies have are valuable, they didn't turn out to be as valuable in the streaming world as many initially thought. >> tom, always great to see you. thank you. >> thanks for having me. >> tom rogers, engine media. you own it >> i own it. and if guy was here, he would have called tom a stud i'm going to call him the godfather, because not only the godfather of this network, but really everything media. and the call here is that the legacy business that is, you know, hampering disney and all the other players, is something -- it's with great irony that the paid sharing that netflix released is better than what they have for the business. they are making money on this ad share. looked like this was out of desperation, this is them going to the well and leveraging off a very, very deep subscriber base. the paid sharing, which went last week to u.s. and 100 other countries around the world, i mean, this is 100% margin. 100% so, there was a time everybody

thought, those announcements were, oh, netflix is scrambling and subs were saturated, i think it's really the opposite but what it says about paid ads and what it can mean for the industry is very exciting. >> options traders bullish heading into netflix's shareholder meeting. mike khouw has the action. mike >> yeah, netflix always one of the busiest single stock options. it traded above average. calls outpacing puts by more than 2 to 1. most of that active till concentrated in calls that expire tomorrow, but the most active contract that expires beyond that were the june 30th, that's the month ending 500-strike calls we saw 8,500 of those trading for a little over a buck a contract that's a small percentage of the current stock price. buyers of those calls betting that this big run we've seen could continue for another month. that would be a bet that there's another 25% of upside, but of course, actually a low probability of that, implied by the options market right now about 10%. >> you had options action in -- >> i had my own options action

one of the few times i've been able to buy a stock. the p.e. at that time was about 20, which is amazing now it's now in the mid 30s. what a fantastic run i feel like i have to take some money off the table. >> thank you, mike for more options action, tune into the full show tomorrow, 5:30 eastern time. the wealthy are still sitting on the sidelines do millionaires see more trouble ahead? but first, extraordinarily challenging. that's the outlook for one ldn chexgomasas ec what he's worried about next on "fast.

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welcome back to "fast money. the macro backdrop extraordinarily challenging. the coo at goldman sachs says its firm is more cautious and being run tighter. victoria, what do you make of this >> yeah, i think they should be. i mean, we talked earlier at the beginning of the show about a little bit of optimism around the consumer, though we were seeing cracks there. the economy is slowing, again, i mentioned earlier, i think we go into a mild recession later this year you have very narrow breadth

maybe by itself the liquidity issue is not extremely detrimental, but you combine it with negative seasonality in this part of the year, with leading economic indicators that are looking poor, i mean, let's look at the employment cost index, up 5% corporate profits down year over year the fed, another 25 basis points who knows, in june, maybe july but all of that rolled together tells us that there is going to be a pull-back later this year, it's going to be negative for the economy, and so, i think you have to be cautious about that, i think you have to look at it on both sides and say, yeah, there's this great handful of stocks, because of a.i., that's leading the charge, but is it sustainable at the level that it's at right now? and i just don't think it is i agree you need to be cautious. >> said capital markets are sluggish, signs of strength in equity capital markets, but

clients are taking a pretty risk-off tone here karen, how do you extrapolate that to some of your bank holding? >> well, i think that actually we're seeing some bond deals, there is some activity that's the part of the business that gets sort of the least -- the lowest multiple, because it is so lumpy. when times are great, you think, okay, that was a nice quarter, but it's not going to continue, so, i'm not so worried about that bank of america talking about a flattish quarter, which wouldn't be terrible. >> dan, you were talking about how banks trade -- what was the word today you used, horribly? >> yeah, they do i mean, look at bank america, that stock can't get out of its own way. i mean, i thought given how poorly the banks traded as a group last year, the bounce was fairly anemic. jpmorgan kind of led the way i do think that goldman did close down on that warning. coming up, sitting on the sidelines in their yachts and megamansions why the world's super rich aren't putting money in the market just yet, and what it could take to get them investing again. that and more ahead on "fast."l

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what some wealthy investors seem to be doing right now, keeping a record amount of cash on the sidelines. robert franks has all the details. and robert, when we say cash, we mean cash or cash equivalents? >> cash and cash equivalents, melissa, you got it right. wealthy investors still very much in wealth protection mode the w t they have 34% of their portfolios in cash, or those cash equivalents that's up from 24% a year ago. and it marks a new record high going back more than 20 years, that's all according to a new study from cap gemini out today. holdings of stocks are at their lowest level in more than 30 years, with stocks makes up 23% of their total portfolios. alternatives, private equities, that's holding steady at 13% more than two-thirds of these investors say their number one priority right now is wealth

preservation you look at family offices, that's investors with $100 million or more, they are also keeping a lot of money on the sidelines. they're planning to add a little bit more fixed income, going from 12% to 15% and going to trim their equity exposures a little bit to 24%, that's according to a new survey from ubs. as one family office told ubs, quote, we are not making big bets on anything right now so, melissa, as per that goldman call you were just talking about, it's a little bit of risk off still for these high net worth and family office investors. >> is this backed up, robert because you cover all things within the world of wealth and karen was just mentioning that the latest art auction wasn't that hot is this being sort of bolstered by some of the sales of other things, or lack of sales >> it is karen is absolutely right. very mixed results at the art auctions you're seeing prices for very high end cars down, the watch market's down. and, you know, as it relates to investments, when you can get 5%

plus risk-free relative to the potential upside that is perhaps available in public markets right now, it's interesting that even the smartest, most sophisticated investors in the world are moving toward these cash, cash equivalent short-term t-bills, rather than equities. >> all right, robert, thank you. robert frank and karen, you are saying that you have the most treasury exposure that you've ever had. >> ever. well, the bar was low, but it's starting to add up i mean -- >> zero, right >> and i feel like, you know, for the last however many years we are used to 0% rates. you can have one-year paper, 5.5%, i'm like, wait a minute, what's the catch there isn't one. i mean, you may be foregoing other opportunities to make more, but the risk/reward has changed. >> all right next up,in tde falras.

ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or

part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. final trade time victoria >> we may love a.i. stocks, but what they can't do yet is produce your toilet paper or paper towels, so, we say add a little kimberly-clark to your portfolio. >> tim >> wbd was at one point toilet paper and it is coming back from the dead if you look at streaming, this is one of the few that actually may be making money sooner than

later. >> karen >> i almost forgot, which is elevance, because the name -- this is well point, this was anthem, this is a gigantic company, not expensive right here >> dan >> yeah, pfizer looks like it's trying to bottom >> thank you for watching "fast. "mad money" with jim cramer starts right now. "fast. "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's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. just trying to make a little money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc. or tweet me @jimcramer i'm steamed. i'm sick and tired of hearing about how we've got a narrow market, a market with only a