and we can really help with those. >> all right jeff, thank you. ceo of doximity. >> great, thank you. >> tomorrow, don't miss our exclusive interview with the ceo of wolfspeed on the outlook for semiconductors and for now, that's going to do it for "overtime." "fast money" begins right now. right now on "fast," merck versus the u.s. government the drug giant suing uncle same, saying d.c.'s plan to negotiate drug prices you will medicare is unconstitutional the details of the suit, the ripple effects straight ahead. plus, a banking bounce the regionals rebounded today. what is behind this turnaround and could now be the time to bet again on the banks and later, a buzz kill for boeing their dreamliner nightmare continues. home builders keep hammering home gains and pouring a tall, cold glass of profits in the wake of the bud light boycott. this is "fast money," i'm melissa lee.

we start off with a merck meltdown shares dropping 3% after the company sued the biden administration over the inflation reduction act. the legislation would give medicare the ability to negotiate prescription drug prices down by as much as 60%. merck calling the bargaining process a sham, and, quote, tantamount to extortion. among the drugs that could be impacted, diabetes drugs which brought merck nearly $3 billion in revenue last year and cancer treatments with $21 billion in annual sales so, will other pharma companies follow merck's lead, and what will this mean for the health care industry? obviously, pricing has been a big overhang over the industry and what control the government has over this, guy >> yeah, well, others follow in kind i think absolutely they will is merck on the moral high ground i don't know, but on the legal high ground, probably yes. and when you call something a sham and to your point, tantamount to extortion, they have pretty good lawyers, they chose those words carefully. the question is, how do you invest or trade the stocks i think a couple things. eli lilly is within a whisper of

an all-time high i think there's been somewhat of a rotation out of the space. if you think like i think this will pass, as well, valuations are so compelling, and at some point, there will be a rotation back to health care, i think you own these stocks >> isn't this political sort of, i don't know, is this a headwind, tim? >> it's a headwind, but it's uncertainty. we talk this all the time. just like -- it feels like another one of those sectors, we just got done with the banks under a different kind of regulatory squeeze this is a squeeze where there's unknown. granted, we have until 2026 to see some of these rules come into play. i don't think there's any question other drug companies come in here and i think it's at some point, it will be, i think, the entire group fighting together, but if you think about what's going on with merck and you think about keytruda and some of the products they have that, by the way, they just gave an update on keytruda, where they talked about a product pipeline for mid to late cycle

oncology, where there was a lot of exciting things that have caused folks to come out and rerate they have as much to lose by this as anybody. if you think about the places -- and there's been disper shun between health care. my pfizer, not so much, but you look at a merck, a lilly, you have companies that have really outperformed, and an analyst community, a portfolio that have been eas stages here, this isn't new news, we knew about this inflation protection act, you know, hit against drug companies. they are hitting back. it's political and it remains so. >> yeah, i don't know what else we really would have expected this is really the life blood of the profitability of these companies. before they convert to generics, they need to extract maximum value. i'm not surprised to see them fight. from a trading standpoint, that's really why we're here, it may compel you to look into, i mean, count erintuitively, more risky parts of the health care space that aren't necessarily

subject to these type of regulations, so -- for me, i do think there will always be a demand for health care, particularly thedefensive nature, but i can understand at least in the short, intermediate term, pushing out a bit on the risk curve while you avoid this situation all together >> mike, what's interesting about this ira impact is that you know when these drugs will come under the effective of the ira. jen move the ya, 2026, where it will be subject to potentially a 25% to 60% discount. for keytruda, that's in 2028 so, you know, if you're worried about a patent cliff, all of a sudden, this is, like, an earlier, worse, almost, patent cliff, because you are cutting short that life span of the drug, where you can actually make money >> well, that's right. you get two cliffs, essentially, now, for the price of one. and this is, unfortunately from a legal perspective, there's a little bit of a political battle going on here, optically, this is a tough one, because high drug prices are unpopular and trying to reduce health care

spending particularly by the government is probably politically popular portion of the i.r.a., i would think. the thing is, when you look at pfizer and merck, specifically, these are two names that are particularly cheap a lot of bad news is baked into them we are seeing some other stocks like astrazeneca today, where we saw some bullish options activity, but bearish in these other two. i think, you know, this might actually be an okay time to dip your toe into some of these, because there's already so much bad news baked in. >> guy, how much, when i say there could be a rotation in, how much is that influenced by your belief that this is going to be so far out or it's already factored into the stocks >> the rotation, portion, i believe some of these -- some of the indications, some of the metrics on these high flying tech names are levels we haven't seen in 30 years i mean, we're at two standard deviations in terms of rsis and stuff. so, at a certain point, some of the high growth names are going to break i think a break will get people back into energy, one, but

health care, as well, two. and i think it's just a matter of time given where things are and these stocks, they've been under pressure it's hard to say that with eli lilly near an all-time high. i think these stocks go higher >> well, rotation is the word for the markets now, too we could be talking about a lot of sectors that are either getting -- and health care is a rotation out it's been a very defensive place. if you were talking to people six months ago, all they could tell you was to buy health care and maybe sol emergency, places that seem defensive and counter cyclical so, i think a lot of the move in health care right now, if you like at the iyh, some of this is just a function, look at the move we've had, look at the risk aggression, the risk on that's been going into megacap tech i like at the iyh, the proxy for the health care sector, doesn't mean that's how you have to own it, in fact, i'm long merck, i'm long pfizer, i'm long lilly, but it's traded in a 15% range for a year, with a slightly upward, you know, kind of trajectory of a slope, and that's a function

of the markets we're in. i don't think people run that far from some of the biggest balance sheets in the world, some of the most cash generative companies in the world, even with some of this overhang >> our next guest says merck's suit could cause a narrative shift in pharma. jared holt joins us here on set at the nasdaq. great to have you with us. >> thank you >> what are your thoughts about whether or not this thing goes through? >> it's really, really tough to say. i don't really think anyone knows whether it's going to go through or not, but you know, this is merck being very aggressive, obviously they pull no punches with the language that they drew up today. and, you know, i expect other companies to follow suit here. >> specifically in the case of merck, if you did sort of do the math and you assume a minimum discount, 25% discount, to a jen move the ya and to a keytruda, what would that mean to merck? >> it basically means that the r&d spending, how they run the

company, these are going to have to be cut. we saw novartis curtail its pipeline, basically blaming future drug price niche tichs as a reason for pulling back. so, r and d is going be cut. so, the whole complex of how these companies are run broadly, i think, could change dramatically, you know, given whether it's 25% cut, 30%, 60%, even, so, we'll see. >> it sounds like then, you know, the longer term potential impact is that the most innovative drugs will be developed in bio tech as opposed to by big pharma >> that's basically what's happening now. no major shift there that's why agree with some of the panelists earlier, you can own bio tech here, if you are worried about the complexion in pharma they are desperate now they could be more desperate to augment their pipelines with other assets, where do they find them typically small and mid cap biotech. >> you mentioned other names sort of specifically under some

risk here, can you talk about that >> i think amgen, pfizer, most of the companies at some point will be under a lot of risk with respect to drug pricing. if it's 2026, '28, '29 the government is basically taking a new look every year and going to come out with ten new drugs that they think they need to kind of mess with so, at some point, even lilly, with mounjaro and some of the other major brands, everyone's going to be hit, it's just a matter of when is it '26, is it '30 we don't know. but that's kind of the game plan >> i can understand both sides on this, and that question, it's a political issue, an emotional issue. we want these companies to spend, spend, spend to develop these therapies and they're the best in the world. and we -- coming out of covid, we're all thankful for the money pharma has invested in their businesses when the government says, not only in addition to these laws and pricing and how they're going to negotiate, that you have to agree that these rules are fair, and this is where they're contesting this on a first amendment right. you are asking the drug

companies to say, this is great, we think this is totally fair, we have no right to profitability. that's where it seems kind of absurd and where they have a lot of room to push back >> i agree i think our understanding is that the drug companies are meeting with the government fairly regularly and they are trying to talk to cms about how they can improve the i.r.a., what they can do to streamline this process and make the economics more viable. and so far, based in the language today, it doesn't seem like that much progress is being made but i feel like when you look at these companies and what they're going through and all the pushback on pricing and it is effecting their ability to do business, something has to be done >> so far we talked about drugs that are, you know, key to people's health, maintaining health when you think about the new emerging class of weight loss drugs and when they eventually get insurance coverage, could these also be subject to this forced discount? >> yeah. i mean, it really is just a matter of -- >> where does it end

>> right it will -- they will be hit at some point >> seen as a holy grail for the farm pharmaceutical industry. could they basically cut in half in terms of price on the market, much earlier than patent expiration >> not so much earlier, but once they become large enough, the government looks at them and they fall into some criteria of being material enough from a revenue standpoint, and yes. but we're in basically -- we're in the first year of these launches, so, they have another nine, call it, before there's real intervention here, so, we got time for lilly >> okay. jared, great to see you. thank you for coming by. nice to see you here in person mike khouw, your thoughts? >> yeah, i mean, when i take a look at a name like pfizer, which is -- it's kind of interesting. this is valued within spitting distance, give or take, of where the company was seven years ago. we had that huge runup related to the pandemic and the vaccines, obviously a lot of that is coming back out of it now.

but you know, call it a $230 billion enterprise value, this is a company that's probably going to make $3.30, 3.50s the, that's not exceptionally expensive. so, there are some places that you can be in it and of course, these companies will aggressively, i think, try to pursue product they can extract some value out of. >> on first read, it looks like a lot of this is being painted with very proud brush strokes and that's what we're all speaking to here the other question i have is really how this is going to impact m and a activity. are they going to put the clamps on companies merging or acquiring one -- >> they have in other industries >> you would expect it to happen here, as well. it's essentially, are you pinning these companies into a corner where there's really to viability option >> by the way, these are headlines that haven't gone -- we're not into the presidential political cycle here, where this is where you usually hear the beatdown so, it's -- it's a little concerning, but i think we're going to get back to a place

where in markets that are fearful of recession and macro, health care and some of the p predic predictability, the companies that have pipelines that we can model out the next three to five years is going to make companies attractive. another bullish development for regional banks the kre jumping more than 5%, closing above its 50-day moving average for the third day in a row. it is now up 25% from its intraday lows hit just a month ago. every one of the 140-plus stocks in the etf up today. the biggest wins, live oak, bank shares and first foundation. homestreet up 10%. have we seen the worst, guy? >> i think the more headline risk for sure, but in the absence of inside, i mean, this thing is going to grind higher, because valuation is going to be compelling for people, and they're going to say, i want to get ahead of something and i think people becom emboldened what i found really interesting, and this probably makes a lot of sense, kre, but look what it did to the small caps.

so, i think people are looking at small caps and saying, maybe the worst is over in terms of the economy, but i think it's somewhat misguided because so much of this is on the back of banks. >> well, one of the things that i think means you have more room for this trade to go higher in addition to what you said, guy, you're dead on, fed fund futures are back where they were pre-svb. there's some sense that the fed -- that the world has gone back we know that headlines are coming, i agree with that also there's no question, more banks are going down we just also learned in the last three months how quickly you can actually run from aen baaing but the valuations went to recession. credit recession levels at 0.9 times price of tangible book so, there is value, when you own an etf, you have diversify case, and it was probably the right sequencing there's no reason to buy that trade right away, but i do think they go higher >> once upon a time, like, a month ago, mike khouw, the concern was increased capital requirements we just had an article saying

20% higher capital requirements for banks that are smaller than the current requirements, and that didn't really dent this rally today. so, can we say, you know what, not bad? maybe things are okay now? >> well, i mean, we're sort of painting all of them with the same brush when we make a comment like that. there are some winners and losers there are some regional bank participants that actually have seen net deposit inflows, that don't have a lot of duration, that don't really have a whole lot to worry about on their balance sheets have mostly insured deposits, and, you know, we're at, what, the same level for kre that we were close to ten years ago, so, i mean, this is -- it's a bump off the bottom, but we're still very close to it let's be honest. so -- i mean, i think it would be okay to dip your toe in here, but i think that the concerns that we have about real estate and commercial real estate in particular, i still think that there's probably going to be more shoes to drop there >> yeah, mike, you mentioned a good point about commercial real

estate i can't say whether or not the worst is behind us what we can safely say is that these stocks were priced as if the worst scenario was already priced in. and that's where the real trading opportunity comes in but to mike's point, i still do think there is some contagion risk within that commercial real estate space, and that might likely be the next shoe to drop. coming up, coin base crush shares tumbling for a second straight day as it becomes the latest s.e.c. target what regulators are saying and how the options are handling it. next, investors cheersing. terrible over moulson coors today budweiser's loss seems to be turning into theap t's gahns what investors have to say about this when "fast money" returns

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steering life at 10 and 2. you're hitting the road... and we're helping you get there with confidence. so skip the counter without missing a beat. choose any car in the aisle. and be the boss of you. go national. go like a pro. welcome back to "fast money. coinbase shares plunging today after the s.e.c. sued the crypto exchange, alleging its prime br brokage exchange violated existing securities laws coinbase fell 9% in yesterday's session after the s.e.c. launched similar complaints abby about binance. guy, what -- these things seem untouchable. >> and they continue to be untouchable, for sure. now, this stock will probably bounce at some point over the next couple weeks and you get

excited, the worst is over -- i don't think the worst is over. and jim has been talking about this for years, seemingly. he's been short the stock, if i'm wrong, i stand corrected, but rightly so if he is. there's more downside in these names. what it means for bitcoin, i'm not so sure, but bitcoin hasn't traded particularly well, either >> yeah, tim, what do you think? >> well, there's still not really any clear legal path for these companies to register these things as securities, and that's part of the issue here. i do think also coinbase had this hanging over them for some time, so, you know, once we understand more about the extent of the penalties, it actually may be some sense of, okay, you know unless there's a defiance in a sense of, no, we're not going down this road, i wouldn't be messing with the s.e.c. here i also think, as we've said many times this industry should want more regulation. it should embrace it and i think that's, you know, something that we -- we are starting to get a little bit more behind, but the pathway to making this clear-cut as to how

they should treat the underlying is not clearer today than it was yesterday. >> yeah, what is shocking that is the s.e.c. is saying, you've been operating like this since 2019 it's been years they've been operating like this and nothing has been done until today. and so, in the meantime, all these -- if it were truly dangerous for all these years, they let investors go ahead and do that. and if it's not, then they've just been pushishing this company that's been operating like for years for no reason >> exactly you want more regulation, you don't want more litigation the path to how you're supposed to operate is supposed to be extremely clear. it's still unclear is it s.e.c., futures contracts, are they, you know, are they s.e.c.-regulated tokens or what not, i mean, to me, it's just -- my mind spins trying to wrap my head around what the legal precedent is for them to even operate. what i will say, is i'm much more comfortable with a coinbase than i am a binance.

they're saying funds are being comingled. that's a completely separate issue. and i don't think coinbase should be trading off, in tandem, to that. this is -- as guy and tim both said, this has been an overhang for the stock for some time and i think that cease priceded in but i want to delineate those two separate things. >> what's surprising to me is that hood was higher today, in spite of this, do you think hood benefits because coinbase is in trouble? >> dan talked about robinhood a couple months ago, the time is escaping me, but in terms of the balance sheet, they're not in bad shape. this stock, we talked about it a month or so ago, trading the stock from the long time seemingly made sense i think they are probably a beneficiary from all of this >> options traders flooding into coinbase today mike, what were they betting >> yeah, so, this was actually the busiest financial stock option, it was the sixth busiest single stock option overall. and we did see puts significantly outpacing calls

what was interesting here was that the two busiest contracts were the 50 strike puts and the 40 strike puts, both of those expiring at the end of this week, but where i saw some of the bigger prints, people were actually selling those 50-strike puts and then buying the 40s on a ratio, but they were net collecting premium i think the idea here is that they think, okay, this has been a known overhang, now it's out there, maybe the stock will stabilize, you know, in this 50 to $48 range between now and the end of the week, but to guy's point, in the longer run, we did see downside puts trading, but much further out in time people are trying to collect some premium, now that the news is out, but they see potential overhang in the months ahead >> all right, for more options action, tune in friday, 5:30 p.m. eastern time. there is a lot more "fast money" to come here is what's coming up next. raise a glass to gains shares of molson coors bubbling higher, as controversy brews at one of its chief rivals. how the budweiser backlash is fueling the move, next

plus, a cautious call. one analyst dialing into at&t, but it's far from a full bar backing. the cellular stance ahead. you're watching "fast money," live from the nasdaq market site in times square. we're back right after this. good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. this is the all new, all electric lucid air. a car that goes as far as it does fast.

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the controversy took hold and is lasting much longer than what many analysts had expected tim, just the other day, your final trade was -- >> budweiser >> yeah. the brazilian beer company that really bothers people i think some of this is overdone i think, first of all, there are trends in beer and there's been consolidation they have been troubling for the entire industry and there are those that have held up better and you look at a constellation and, you know, what they've been able to do with their modelo brand and what not i think this is an opportunity for budweiser longer term. and i, you know, honestly, i'm an investor and, you know, this is what i care about, and i think it's absurd, by the way, to not be able to invest in a company based upon, again, the reasons people mail or may not be boycotting, because these are the kinds of things you hear from people, and it tells me opportunity, i think it's crazy. >> yeah. the thing about boycotts is that they're really unpredictable look at the pickle that target found itself in -- >> pickle again. sorry. >> came up in yesterday's show >> pickle did? >> we asked the question, maybe you know --

>> difficult spot. >> where does the fred come from >> got to be shakespeare everything is shakespeare. if you don't know, just go with shakespeare. by the way, pickles are very good for your constitution, the more you know. >> separate issue. >> completely. >> for now, the issue is sort of, like, as an in vestorinvest can think about models and margins, when it comes to the boycotts, you don't know how to price these things in. >> people do have short memories and everybody loves a comeback story and budweiser will figure this out tim probably talked on his final trade about valuation. less now than 15 times forward budweiser is cheap interesting about tap. they reported on may 3rd, a great quarter. stock told off after that. this move got right back to those levels, so -- tap is one thing. it's fine. i think budweiser is the play here >> yeah, i mean, i think this is definitely a short-term phenomenon you said no visibility, and i guess that gives investors a bit of pause, but the same time, there's probably not a lot of staying power to this whole situation. and then if you just kind of

start to look at the financials of the company, you have tap and bud that trade around that 15, 15 1/2 times but the gross margins are literally 20% different. right? so, there's noway i'm rotating out of bud into tap, knowing that i'm going to pick up 20 points of gross margin if i stay in the bud trade >> i do drink coors light, by the way. full disclosure. we have to give disclosures on air. i enjoy -- got to make sure -- >> i drink peach snapple what do you drink? now that we're having this conversation >> what do i drink water. >> bottle, anything? >> such a good girl. >> modelo. >> mike khouw, your thoughts and what do you drink, too >> ah -- well, i don't drink coors light or miller lite or bud light, actually. we drink more wine out here in northern california. >> oh, fair. >> drink wine. >> than light beer but with respect to the boycott, i don't know i mean, if somebody was buying a product and suddenly switches to another one, who is to say it's

going to switch back i'm not talking about simply forgetting the reason that you made that shift. once it's done, it may very well be done. i don't know necessarily that you're going to see a big return back to bud light if people decide that they like, as tim does, coors light. coming up, spilling the tea -- what -- he does drink coors light. we've seen him >> of course, we've been out >> boat water, by the way. hydrating. >> that's what you like to think. spilling the teas, shares of at&t getting a boost after an upgrade, but it's more of a flip phone type of call greg moffett dials in next with what he sees for the space that interview, when "fast money" returns. get your trades to go with the "fast money" podcast catch us any time, anywhere. follow today on your favorite podcasting app we're back right after this. ♪ jitterbug! ♪ [ giggles loudly ] ♪ jitterbug! ♪ [ giggles loudly ] ♪ jitterbug! ♪

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welcome back to "fast money. stocks closing in the green after a volatile day the dow barely managing to eek out a gain the s&p hovering near a 19-month high home builders a bright spot in today's market action. told brothers and lennar at

their highest in over a year this doesn't make -- >> guy's home builders >> yeah. i own them -- >> been crushing it. >> environment where the company might be headed for a recession. >> supply/demand imbalances have been in this space for quite some time. they got through the hiccup of rising rates the market figured it out. the market will go higher. people will start to pull the rip cord, given unemployment may be ticking higher. we are just not there yet. and the stocks will continue to grind higher >> and the costs have come down, which is helping margins >> they have and that explains a lot of the other moves. toll brothers, to me, that's kind of the eye of the storm, because of their pricing and where they are kind of marketing their homes to, and to mike's point earlier, you got to pick winners and losers, but to guy's point, i think it's about supply and demand imbalance that's why you're seeing the home builders move this way and that being differentiated from other parts of the real estate

environment. meantime, we got an upgrade for at&t that's our call of the day under under underperform upgraded. for me, let's bring in craig moffett. the last time we had you on, it was something like along the lines of what's wrong with at&t. you laid out the lines why you doesn't like the stock, and now, you are less bearish, and that's simply because it's fairly valued now >> yeah, look, i'm less bearish because it's less expensive. if i recall, $23 at the time, now it's 15 and change and so, it's hard to have the same level of bearishness at thisle have a wags >> you do call into question, though, its cash figures >> yeah, to be fair, i'm not the only one, but this is a company that significantly lowered its guidance last year for free cash flow and the proof is in the

pudding, right for all the free cash flow they said they generated, they're net debt actually rose a little bit last year instead of fell, without any acquisitions so, but leaving aside that issue, this is a company that is struggling, right? we've got it doing 220 in earnings this year, by 2027, we've got it doing just over two, so, this is not a growth business it's a tough industry and -- and it's not something i think -- we said in the note, we're not optimists. you shouldn't mistake this upgrade for suddenly we think there are green shoots and things are getting better. it's simply the market has appropriately priced in what you get when you get at&t. >> craig, first, congrats, because you really have been on the other side of this trade, and it's kind of cool to see, taking two bites of the cherry, i'm long at&t and was on the

wrong side of the trade on the way down, but the competitive and predatory nature of the industry, throwing in scrambling xabl c cable companies, too, t-mobile has crushed everybody. should we read through that the best days for t-mobile are over? i know we're talking about at and t here, but i look at the entire industry, and, yes, the glass is half full at this point, but i continue to think t-mobile is going to eat their lunch. >> it's a good -- it's a good point. they absolutely will, i think, the question there is, are expectations for t-mobile now also at a point where it looks like it's roughly a market performer? i sat on a buy rating on t-mobile for, what was essentially a decade, and downgraded them about, i want to say four months ago, because -- not because i think they're any less good a company, but because finally expectations had caught up and again, it's -- t-mobile's the best house in a bad neighborhood, but that's fine,

if the neighborhood is declining. if the neighborhood catches on fire, even a bad -- even the best house is not going to be a place where you necessarily want to be. and so, i -- my enthusiasm for t-mobile has cooled, because expectations have come up, the price has come up, and the neighborhood has gotten even worse. >> since you are less bearish on at&t, craig, is the possibility of it cutting its dividend in the rearview mirror, or is that still a possibility given your doubts about free cash flow? >> always a possibility, unfortunately. i don't think it's imminent. we started saying, we thought they'd cut the dividend, boy, i want to say five years ago or so and it finally culminated in the dividend cut as they were spinning off the warner media business i think now it's probably safe for the time being, but ultimately, if you are a business that's got as much debt as at&t does, and you're not

growing, and they're not, then ultimately, that -- where they takes, you particularly in a rising rate environment, and they have to refinance their debt, it takes you eventually to having to cut the dividend and to be clear, the pressure on the dividend at at&t and this is true for verizon, as well, is not that they don't generate enough cash to pay the dividend, it's that they don't generate enough cash to meaningfully delever and their leverage ratios are already higher than what would be parented for their credit ratings. so, ultimately, the pressure point is, something's got to give, and usually that is they have to reduce the dividend in order to delever faster. >> great to have you on. thank you so much. >> my pleasure good to see you. >> what are your thoughts about at&t >> we talked about it for awhile there's been no really compelling reason, valuation and the dividend, both of those things haven't worked that well. craig's been on it for quite some time, so, for him to make this move is significant

but he still has a $17 price target t-mobile on the other hand, he's got $178 price target, 30% move from here. that's the place to be but the existential risk is amazon we talked about it last week where there's smoke, there's fire >> mike, do the options indicate any doubts about the dividend? >> ah, they do, actually you know, i was long at and tv after that most recent reported quarter, and we saw disappointing free cash flow numbers. i actually unwound it at that time i added a little bit today right now, the options market is implying a forward dividend of about 18 cents, so, that's less than the current one a couple different ways to think about that you can think about it as a probability of a large cut or, you know, a combination of a good-sized probability of a moderate cut in the dividend i think they would have to cut it fairly meaningfully we are in a higher cost of capital environment, and if you don't have a growing business, you don't want to see your debt levels growing in this environment, either. that's untenable, as we were

just hearing, so, i think a dividend cut is probably quite likely within the next 18 to 24 months >> i think a dividend cut would be devastating for the stock they are not in a position to cut it i realize it's kind of a tar cartoonish-looking dividend at this point i can tell you, i would find that to be reason to run up next, a new buzz kill for boeing the latest nightmare for the dreamliner. plus, a big lift for lyft. what's behind today's surge. and in june, cnbc is celebrating pride month. here is the chairman and ceo of dow chemical >> supporting pride is the one way we can show the lgbtq plus community that we all accept and respect each other for our differences, whoever those differences happen to be supporting pride gives hope and reassurance that each of us can be our best, because we are accepted as who we are, our true

and whole soelves. it really comes down to treating how we want to be treated ourselves, with empathy, understanding, and compassion.

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do not miss our own tim seymour on cnbc's mostly pro talks, tomorrow, 1:00 p.m. eastern, hosted by kristina partsinevelos. join live on the digital side at cnbc.com/protalks. >> lots to do. going to be exciting >> good picture. >> you are going to answer questions -- >> we're going to answer questions, we're going to get this deep. a lot to do. tune in. >> all right meantime, a buzz kill on boeing. shares dropping after the giant issued a warning about a new defect on its 787 dreamliner the problem will delay the delivery of the planes the stock ended the day down around a buck and a half mike, it seems like one after the other in terms of reasons to delay. >> it is just a constant source of bad news, it seems, coming out of them. seems like every single time we kind of get something put into the background, something else emerges. obviously, the 787 dreamliner has had a slew of problems for a couple of years now, and then,

of course, we had the big mess with the 737 max you know, it's -- right now, it's probably as carter likes to say, a pair of twos. i don't think there is a whole lot of good news built into this thing, because, i mean, we've sort of come to expect this at this stage >> yeah. tim? >> well, the free cash flow, the 787 has been one of the most free cash flow generative planes they make. the wide bodies a lot more so than the max this is a hit. but i -- i still think -- i'm just looking at the numbers here, the free cash flow associated with the 787 is about $600 million today the expectation is, as they continue to ramp up, that it was going to be $2.5 billion by 2025, i'm looking at a note from jeffries, by the way this is a big hit. and i do think this is a company that is all about free cash flow in the future, because i think covid is in the rear view mirror and we can say that. for the airline industry, normalcy is good for boeing. >> all right. lyft topping the tape. the ride share app wrapping the

day up more than 6%. the stock making more than 27% comeback from may 24th, when it hit its all-time low what a turnaround guy. >> what a turnaround how many times have we seen this before and listen, i was on the wrong side of lyft for the longest time i said, you know what, time to pull the rip cord. every bounce we've seen has been exactly that, a short coveriing bounce i don't think anything is fundamentally changed. >> is this in your acronym >> you know it's in my acronym >> we loves doing that, by the way. >> it's fine it's not -- the acronym is l.a.g.s. it's part of the acronym that's lagging. it's been destroyed. everything else there is doing just fine. it's a long season, as we say, and i plan to win this thing i didn't play the acronym game to lose. >> nobody does >> it's no -- >> why would you bother playing the game unless your intent was to win >> i just said something mean spirited, by the way >> i heard what he said.

it's no dawn it was a dig >> since we're quoting -- >> mr. calm? >> dan has a pretty -- >> yeah. >> i'm going to try to stay calm here dan has a good one one up, two down and that is the story of this. it's only a few days ago, i saw news saying they're going to have to reimburse gig economy workers. so, i'm inclined to ti this is sh short-covers bounce. >> yeah. mike khouw >> yeah, i don't see this is necessarily the time to get into it you really want to see more momentum behind it we're still stuck in a downtrend here and until i see us meaningfully break out of that, i wouldn't be tempted. >> all right, coming up, the pied piper of wall street, ryan cohen. up next, an exclusive first look at a brand new documentary i've been working on, "making of the nime king" ahead of the premiere toght. you won't want to miss this. "fast money" will be right back. what do you see on the horizon?

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welcome back to "fast money. tonight on cnbc at 10:00, a new documentary looking at the rise of ryan cohen, the man who became known as the meme king. the former chewy ceo made

headlines for going all-in on bed, bath and beyond, but it was his exit that raised some eyebrows >> this feels like a big -- >> it's real >> yeah, exactly >> well, it's not real >> we were trying to figure things out in real time. looking through it, comparing it with past volumes and that uz when we realized that there was not really much new information in that amended filing it was sort of a race to just sort of figure this out, because we saw the stuock run, so, we wanted to find some answers. and what we later learned in another filing is that ryan cohen sold his entire stake, every share. >> that's not something small. we're talking over $140 million. that is a nontrivial amount of volume to get sold i was not paying attention to bed, bath and beyond at all until his trades came through. a trade of that size, it's only natural that that sort of raises red flags. >> shares getting crushed right now, down 40%. >> such a gut punch, but what you saw was all these people were just left with shares that

had just crashed >> hear the inside story of the mysterious and sometimes controversial entrepreneur turned ability visit investor, it's all tonight, 10:00 p.m. eastern time "making of the meme king," right here on cnbc and, you know, during the meme craze, he was the poster child he was known as papa cohen on reddit the story -- >> and nobody cared about the fundamentals, nobody cared about -- there was some sense of almost came kaz see investing. but -- yeah, did you speak to him? >> no. and that was the interesting thing about this documentary, usually we choose to do a documentary where we have access this is new. he declined to participate we did talk to many people who were very close to him, including larry chang, who gave him the initial money, the initial seed money, to start chewy, so, people who knew him very -- or know him very, very

well, to get sort of how this man ticks and what his motivations may or may not have been >> fascinating time in investing. we've seen a lot of different cycles the whole meme dynamic is something that is as pronounced as any >> and the bed, bath and beyond, when he sold every single share, was it a rug pull? or was it just ryan cohen saying, you know what, i can't enact the change i want because there's not enough time, it's too close to bankruptcy? or did he know something else? because he had three directors on the board at the time >> i'm sure you'll address this. how many docs have you done? >> i don't know. lost count >> i would know, i haven't done any. with that said, i mean, was it bed, bath and beyond, he announced that huge, way out of the money call option -- >> right, that had been in place prior to that. >> and then he chose, you know, the opportune time to announce it, so, there's a lot of things to dissect i will be watching after the yankee/pale sox -- >> pale hose >> of course i don't know what you're talking

about. but mike, has there been any sort of -- is there less interest in these meme stocks in the options pits >> i think there's a little bit less certainly than there was during the peak in the pandemic, but when you think about it, for years, we always were focused on what the whales were doing where's the big money? the real money account flows, because, of course, as we all know, when it comes to the stock market and the short-term, it's a voting machine, in the long-term, it's a weighing machine. we care how people are voting with their dollars and what we learned during the pandemic was that retail traders, en masse, in some cases, are much bigger impact, especially on some of these sort of control flow situations, than the real money accounts can be, so, of course it's something we all want to pay attention to i think that we certainly do still see short-term trading going on in the options market not as much, though, as we were seeing in the peak of the pandemic period. >> yeah, let me throwous the disclaimer i am not advocating playing in

these stocks however, if you are going to play in them, i think options likely really is the only way to do it. because of the short-term nature, because of the shock nature of these types of trades. and just because of the fomo and momentum aspect of trading that's really kind of separated from fundamental analysis. up next, final trades. what do you get from the morgan stanley client experience? listening more than talking, and a personalized plan ♪ to guide you through a changing world. ♪

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time for the time trade. let's go around the horn mike khouw >> yeah, mortgage applications, earnings, other stuff coming up, of course, rates, but we own lennar right here. if you get a pull back, you might want to look >> tim >> i still think boeing, that free cash flow comes back. if you are patient, and as we said, you get a lot of boeing stepping on its own foot let's hope not >> i think short-term shocks present long-term investing opportunities. i'm going to take a look at bud. >> guy >> denver/miami, whatare you thinking a lot of people different think miami winning -- >> denver. >> simple. >> she's sin think sized -- >> what is there to think about? >> got to watch that special tonight. >> 10:00 p.m. eastern.

exxo exxonmobil, sister >> yes, "making of the meme king," 10:00 on cnbc thank you for watching "fast money. "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, i'm just trying to make you a little money my job not just to entertain but to educate put it all in context. call me at