s&p. the nasdaq about in line with all of that. and apple had a big announcement, got a note. they're still at 3.3 trillion right now, about 10% ahead of microsoft, in that supposed market cap race. well, for now, that's going to do it for "overtime." "fast money" starts right now. live from the nasdaq market site in the heart of new york city's times square, this is "fast money." here's what's on tap tonight. apple blows up. the tech giant unveiling its latest slate of iphones and apple watches. shares stage a rally in the last hour of trading. plus, can brian niccol perk up starbucks? he's taking the reins at the struggling coffee chain today. will he have the magic? and later, big banks booming in today's rally. but will the gains continue? shares of summit therapeutics soars on new cancer drug trial results. and we dig into oracle's latest earnings report.

can they keep out performing its peers? i'm melissa lee, coming to you live from studio b at the nasdaq. on the desk tonight -- dan nathan, and guy adami. tim seymour, karen finerman, courtney garcia, and guy adami. the s&p breaking a four-day losing streak, gaining more than a percent, and the nasdaq up more than a per sent. we'll have more on that later in the show, but first, we start off with apple. the tech giant releasing new products, including its latest iphone and setting a date for the rollout of its apple intelligence features. steve kovach has all the details. hey, steve. >> hey there, mel. yeah, the big takeaway from this apple event today is that it's really going to take several more months to find out if all the new a.i. features are compelling enough to spur what apple bulls have been expecting to be a massive iphone upgrade cycle. now, the iphone 16, that's what was announced today, they're getting an exclusive a.i. feature that other devices won't get this year.

it's called visual intelligence. you can point your camera at something out there in the real world and get a lot more information. they used this example of taking a picture of a restaurant and making a reservation. this is something already in products from competitors like google, meta, and openai. other than that, this is kind of your standard iphone upgrade cycle. the battery life is a little better, the new processors are going to help the phones run faster and enable all those upcoming a.i. features. but as for the rollout of apple intelligence, apple made it clear, it's going to be a slow one over the next several months. the iphone 16 and the iphone 15 pro, they're going to get that first update this fall with a limited set of features, such as summaries for your text messages, but the best a.i. features, that means more powerful versions of siri, integration with chatgpt, image generation, that's not going to come out until later and some won't even happen until 2025. now, apple did give some more hints about the a.i. rollout outside of its initial u.s.

launch this year. it's going to come to other english speaking countries like australia and canada first, and then more languages, like chinese and spanish coming next year. we didn't learn too much overall about apple's a.i. plans beyond what we already knew. mel, back over to you. >> new languages meaning that for chinese, you mentioned it's a super important one, but it's really for chinese users here in the united states, as opposed to any sort of a date for a china large language model rollout? >> yeah, that's going to be a step towards that china rollout. i talked to tim cook about that, actually, a little over a month ago. i said, how are you going to launch this in china because of the strict regulations there? they still have to work on that. they need approval from the chinese government to launch an a.i. model there. that's going to take some time to work through. but for now, yes, chinese-speaking outside of china, that will be enabled, mel. >> all right, steve, great to see you, gthank you.

well, the stock didn't sell off. it had every opportunity in this market context to sell off potentially. >> it closed unchanged. >> it did briefly. >> but it caught up at the end of the day. >> and volume was in line with what we've been seeing. web bush said this would be the largest upgreat cycle in the history of amle phones and they cited support in particular by improving chinese trends. got it. okay, it's all very good. again, it comes down to, i think, valuation in this environment. i mean, it's on the numbers today where it closed. 30 times next year's numbers, 11% eps growth now, maybe, and you got less than 8% revenue growth. so, you know that's what you're paying up for right now. if you believe that to be the case, i guess it's fine. you can talk about the install base. but i still think it's expensive here. >> we were having a robust discussion on friday's show -- >> it was rowe bust. >> apple was a defensive play. in this environment, you have the upside potentially of a.i. and the rollout of the a.i. features, plus the defensive nature of apple on its balance

sheet. >> what makes it defensive is, i think the services business has been survivingly resilient, the ability to get the services multiple as part of, i think, i know that's not -- they don't go doing, defensive and kind of high multiple. to the extent that apple has a higher multiple because of a services business that's better. what's interesting about this release is that this is not hardware dependent, even though, you know, it is and it's not. in thard ware dependency days, we got some sense well ahead of that day what those hardware upgrades were going to be. there's still some sense, until that ios 18 comes out in october, we hope, or the company hopes, i think, so that people can truly try it out and see that they then want to do the upgrade cycle for the underlying hardware. that's what's important. and that's what makes this release a little different. a stock that for two years did zero. when it got above that 185 to 195 level, that range up to 230, 235, is a 20% band.

i think the stock is going to trade there for awhile. i think it is defensive. >> karen? >> well, we'll have to wait and see. that was part of what was a little bit underwhelming today, right? some of it was, oh, and you'll be able to get this on the phone -- >> you can point the phone at guy and it will say what? >> stud. you asked the question. you asked the question. i don't know what to tell you. >> i sure did. i set that one up, sorry. >> right. so, it was somewhat vague. it doesn't make you think, i have to rush out, buy this now, and at some point in the future,ly have the ability to upgrade into that new a.i., whatever those tricks are. i mean, some of the camera stuff i thought looked great. they always do great camera stuff. some of the stickers looked fairly amusing -- >> stickers meaning the emojis. >> a shrimp cowboy was one that i saw. there was another one -- >> what did you say? a shrimp cowboy. >> let's say you are talking to your friends, we want to go get some shrimp fa here tees and you say, yeah, someone will say,

yeah, shrimp cowboy, and that will be the sticker. >> interesting. >> and you'll laugh a lot and that will really be -- >> there was another one -- that was a short clip they did, there was another one that was a -- i don't know, a frog and a something or other. okay. >> okay, that's not worth the 30 times multiple. so, i sort of feel like it's still kind of a wait and see. i do think that poor numbers at the very beginning of the launch are not -- don't give us enough information. >> right. >> yeah, i definitely think it's a wait and see, because i don't think this was enough to poke holes in the story that it's not going to be this super cycle that everybody is hoping, but it's not enough to confirm it yet. and i think we're really going to have to see. this is an especially tough environment, because you're seeing earnings release after earnings release, people are talking about how discerning the consumer is, and are they going to want to fork out money for a very expensive iphone right now? so, we're going to have to wait

and seep. i'm not wholly convinced, especially at 30 times earnings, which you say is expensive, i agree with that. i don't know if i would be jumping in here. i don't think this was enough to make a decision. >> one other thing to add, though. the price is interesting. they talked about up to $800 back. i don't know what you need to have to get $800 back, but i think that matters some what. >> a shrimp cowboy. >> at least one. and then, also, they talked about longer battery life. >> uh-huh. >> which is one of the -- i think a very common complaint. >> i feel like that's a low bar, to say longer battery life, i mean -- >> okay, yeah. >> i don't know how much helpful. but going back to the web bush note that you cited, the other thing, you don't necessarily need people to upgrade to the 16 for a.i. features. so many people out there like myself have really old iphones that just need an upgrade because there is no battery life anymore. >> you're right. but again -- and gene will talk about this in a minute. some of the excitement around this, the biggest upgrade psych

until the history of the phone, it needs to prove itself. it's -- i guess not a normal upgrade cycle is what the street is looking for here. but is it priced in? >> is any of that in the price? >> i don't know. >> if anything, i think no one has priced it in at all yet, because this is a stock that's done nothing. and if anything, it does deserve a higher multiple based upon the services component of their business and that balance sheet that i think is a lot of flexibility. >> we'll find out. >> for more on apple's glo-time event, let's bring in "fast money" friend gene munster. gene, you are listening to this discussion. shrimp cowboy, et cetera. >> yeah. >> what is priced in? i mean, is a super cycle in any way priced in? >> not even close, melissa. i think if you look at the street numbers right now for fiscal '25, looking for iphone growth of 5%, 6%, it's been basically flat the last couple years. a lot of talk of a super cycle, but investors are generally following the same road map as the traders are today, that's

kind of a wait and see. and i would just say one perspective of this wait and see, a lot of the conversation today is about details of announcements, about specific features, pricing, timing, all of that makes sense. but ultimately it is noise. to think of apple intelligence is a feature, is a trap. ultimately, this is a paradigm shift. this gets back to the question about where can these numbers go? and i want to quickly frame in the last paradigm shift we had, when the first iphone came out, going from a flip phone, a keyboard, to a touchscreen, there were seven other competitors out there with touchscreens, but none of them were able to capture the power of an app store. that changed a phone to a computer in your pocket. what apple intelligence has the power to do is ultimately bring simplicity and intelligence to your pocket. apple, 1.8 billion consumers are going to want that. we're going to have a super cycle that is going to exceed

the 5% to 7% the street has. >> can you talk to, gene, the difference in how the tech giants are pricing their a.i. products in that? and i think i asked you this question last week in that -- why does microsoft co-pilot, why does it charge on top of, as opposed to offering it as an integrated feature? and for the iphone 16 users, it will be integrate into the phone. so, can you speak to that strategy and how that may actually help the rest of the pack, in terms of selling their a.i. products, because here, you're getting consumers to actually try it out, saying a.i. is not bad and it's helpful to my life, so i'll pay for it elsewhere. >> the way the pricing has been working so far, it's a spectrum. openai led the way with this. they have a free version, and then they have a premium version, $20 a month, that's been the model now that gemini uses, microsoft is adopting a similar approach. apple is going to do a lot of

the same thing. the functionality that people are going to use, the paradigm shift that i'm talking about is going to be available in october and november for u.s. users. and that's just going to im impact -- that will be free, that will be free if upgrade your phone, your hardware, your mac, your ipad. and so i think that's one piece to it. the pricing strategy. the other is, of course, as more of these rich features come out, and that's where there's a new business model. there's a lot of questions, like, what is beyond and iphone upgrade one or two-year cycle mean for apple and a.i.? and they can have these more rich products they can sell openai with a premium version that apple takes a 15% cut of. i think it's going to be a tiered pricing model, and i think there's just so much talk about a.i., but so few people have actually used it. and i'll bet you that anybody that experiences these -- these features are going to want to tell other people about them. >> so, gene, you are bringing up a really interesting kind of history lesson and point about the competitive landscape, at the last, call it seminole

moment. and i think about apple here, we spending so much time talking about china and why it's a headwind, but how about the rest of the world? does apple -- are they taking market share in other parts of the world? part of the conversation we never had. and with this backdrop, does this further cement them as the leader in the places that aren't really china? >> so, about 1.8 million active users, they don't give that number out, that's an estimate. so, you think about kind of -- 6, 7 billion kind of active daily internet users, so, that's been pretty stable, tim. they really haven't been able to grow their market share much. i could see this as something that could take their market share from 18% to 20%. what you said is really important. i want to emphasize something, that -- what apple is doing here, bringing hardware services and software tonight, i don't want to parrot the company's language, but it is important, but the reason that apple has a 95% retention rate, you can get

a lot of those features with android, people love how everything works together. and i think they're going to do some of that same simplicity around bringing a.i. to multiple devices, and that's going to be a competitive advantage. and i think it's going to mean incremental share gaines, but more importantly with that user base, is them spending more money with apple. >> hey, gene, it's karen. do you foresee at any point a bifold, or folding phone from apple? >> maybe? they're testing some devices, clearly, the bigger form factors tend to sell better, so i'm sure there will be some experimenting around that. i can say from a product p persp perspective, the piece that i'm most excited about, and this is a shift from with what i've talked about before, i still believe vision pro can be 5% plus of revenue. i used to think it could be 10%. but i think what they're going to do around wearables, airpods with cameras, ultimately, that's a much bigger opportunity than a foldable phone. this is basically smartglasses

without having to wear smartglasses. some of the same features that steve talked about, the google astra, allowing a.i. to look at the world around you. i think that's a really compelling -- a few years away, but when you think about what's next in terms of hardware, i think the wearables around air p pods and cameras are exciting. >> the phones are getting bigger. 6.7 inches, correct, is the new phone? that's very large. >> right, i mean -- i think -- i don't think there's a need for a foldable phone. i think there is a need for some smart device that goes along with you for glasses or some airpods with cameras. >> gene, great to see you, thank you. gene munster. >> thank you. >> and of course, karen, you're referring to huawei's latest phone, which is a tri-fold phone, which sounds great for ladies with small pocketbooks. >> right. >> why just ladies? >> or tim. >> not me. just -- we have to recognize there are other people that might want these features.

>> but this gets to china. they have 3 million preorders. >> yes. >> in a couple of days, 48 hours or so. and they are, you know, sixth place in china, something like that. huawei's number two. >> yeah, and i think the share loss in china is notable, and it's been rapid. and you wonder how much of this is geopolitics and how much of this is innovation. i don't think, you know, the tri-fold phone -- guy -- i don't think that's the innovation that sinks them in china. staying in the tech space, oracle's stock soaring after the company's latest earnings report. announcing partnerships with google and amazon web services. deirdre bosa is following the action. hey, d-bo. deirdre? she's standing by, but apparently we are having difficulty connecting with her. the stock is up 8.7%. it has been outperforming its peers and there was that question as to whether or not -- >> could it continue.

>> would the earnings report deliverer? >> well, the remaining performance obligations, which were gigantic, like, well b beyond, i think, you know, was up mildly. and that is just an enormous number. we have to see on the call. but these partnerships are interesting. i don't know how it works. i think tomorrow they're doing a -- 1:00 p.m., describing more of the aws partnership, how that works. but that -- that rpo is just tremendous. >> all right, the stock is up 9%. d-bo is on the line. we have a connection. i think you got guidance now. what is the latest here? >> i was so engrossed in the earnings call, melissa, i totally missed you guys. the ceo has just been running through it. we just got it now. i'm still trying to figure it out, but shares are holding only their gains. she said she is confident and committed to their full-year revenue guidance, growing double digits. but really, the main story out of this quarter is that oracle

is justifying the a.i. run with the latest results. cloud infrastructure continues its trajectory, up 45% last quarter year over year. the unit hows that annualized revenue of $8.6 billion. oci is a key part of oracle's shift to enterprise cloud services provider, competing with the hyperscalers, but increasingly joining them, partnering with them. executive chair larry ellison called that newly announced aws partnership a millstoestone. customers will be able to use the oracle tech within every hyperscaler's cloud. that's a change when there were more competitors. on the a.i. front, oracle is still spending big on chips. 42 additional cloud gpu contracts signed in the quarter for a total of $3 billion. and i just also want to point out the chart, i found it really interesting. oracle shares have outperformed microsoft since chatgpt was released in november 2022.

i'm going to jump back on this call, but again, managed to hold onto these gains after outlining guidance and we'll get to analyst questions, hopefully soon. mel? >> all right, thank you. so, what do you make of oracle here? that chart against microsoft, that's an interesting one. >> i think it's really impressive to see. some of the numbers coming out, when you're seeing that in infrastructure cloud growth. they have been so much cheaper than a lot of the other a.i. plays out there. so, the big question, have we already priced it in, kind of that next tier, who is starting to benefit. i think a big question i want to see them with, they have a very large debt position currently. and the question is, with all this growth, is that going to incur a lot of additional capital expenditure? so, what is that going to mean? yes, they're a discount to their peers, but what does that mean for the stock going forward? >> all fair. the rpo that karen talked about, up 53% year over year. it's become, if you think about it, valuation, you compare that against microsoft, you can say microsoft's a better company, it's true. but i think -- microsoft's

trading at 31 times. oracle even with this move is probably just north of 20. if you look at the margin guide, that's better for next quarter. there's nothing not to like here. the only thing not to like is the fact that the stock has been pretty much parabolic over the last year. with all that said, though, i still think it's reasonable at these levels. >> we've got a market flash here on hewlett packard. the company announcing convertible preferred stock. they plan to use the proseeds to fund its acquisitions of juniper networks. the stock is down 4.9%. and speaking of old school tech, we're digging into ibm. shares outperforming the broader tech sector, but can it continue. ? we'll debate that, get a check on the chart straight ahead. plus, another huge move in the bio tech space. one company surging nearly 60% on new drug trials. that stock and the competitors getting hit after the break. don't go anywhere. "fast money" is back in two.

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lung cancer drug cut death by 49% compared to merck's keytruda. it's the first to beat keytruda in a head-to-head trial. guy, you were commenting that could have been worse for merck. >> should have been worse, i think, given the scope of keytruda, how important it is to their entire franchise. i think there are 18 different indications that keytruda has, i might be off by one or two. so, what does this mean? it means now, in my opinion, merck is going to have to -- i thought they had to do something before, now with this news, they absolutely have to do something. what does that mean? make an acquisition. who is out there? this viking therapeutics. they have a bulls eye on their back, in a good way. and i think that's how you play all this news. >> they only had a few more years of -- >> '28, i think. >> exactly, yeah, so, i would think that people are already thinking, you know, get on it, merck, extend your patent. they are working on sub cutaneous versions to try to extend that life. >> they are. and it's going to be a hill,

more of a downhill than a cliff, but certainly begs the question, what's next for summit. >> right. >> which i see has not a ton of cash, not -- it's not dire or anything like that, but -- and you have to think, all right, they've got to be -- i don't know if merck could buy them. >> hmm. >> somebody would, you would think. >> well, if they need to cash, to get from phase three to approval to the market, right, that's -- takes a lot of money. >> i don't want to put anybody on the spot. what percent of merck's sales is keytruda? >> i'm going to guess here and i bet it's north of 30%, but that's a total guess. >> wow. >> i can go and look it up right now. >> if it's 20, right? >> while you're checking, though, the sales grew 33% last year, so, that we do know, and in terms of, you know, outside of lilly where have you been getting a growth multiple? it's been in merck. and this has been part of the reason and this is -- as pointed out, i mean, i would say pretty defensive today, in the face of

this. >> yeah. >> it's higher than that. >> it's higher than 30%? >> what is it? i knew it was a big number. >> yeah. >> sorry, we are having an inside baseball conversation. >> yeah, and i think -- i think what i see when i see these headlines, there's going to be more m&a activity in the space. this is pharmaceuticals in general there's been this conversation about small caps and what that means in the future. but that is -- think of the companies, if they get bought up, that's more of a conversation that some of the sector might look attractive. >> just one last thing about summit, i forgot to mention, the ceo, 75%, 76% of the company. so, there's just -- >> he's had a good day. >> very, very good day. just one person. >> percent of revenues, 45% is keytruda. >> yeah. so, last quarter -- merck did $16.1 billion, keytruda was 7.2. >> wow. >> that was thanks to

headquarters. >> making us all look smart. >> totally on it. lots more "fast money" 20 come. here's what's coming up next. jpmorgan, bank of america, and other big banks in the green today. how the bank bump could boost your portfolio, next. plus, frappe first day. brian niccol taking the helm at starbucks, as the coffee chain looks to turn things around for its stock. the hurdles he's facing, and just how much of a jolt new leadership can give shares. you're watching "fast money," live from the nasdaq market site in timesque. 're back right after this. tax smart investing today, helps to build a stronger tomorrow. at pgim custom harvest, our unique direct indexing approach seeks to help investors achieve better after-tax outcomes. pgim investments. shaping tomorrow, today ♪♪

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for patients around the world. without pause. for the love of moving our clients forward. for the love of progress. welcome back to "fast money." big banks seeing big gains on the street today, as jpmorgan, bank of america, goldman, and morgan stanley all gained. david solomon of goldman sachs pointed to a more challenging macro environment, specifically in august. be sure to catch our interview with solomon on wednesday. that's only on cnbc. let's trade this. a lot of banks making comments

today. >> citi, which i own, i like a lot. they did talk about the consumer and the consumer shifting, more stable type spending. they -- this was the cfo talking at a conference, and i think he -- their return on tangible equity, i think, is still in the range where we expect it to be, but it was just that tiny bit of the consumer thing, and then there was the consumer credit thing that came out today. >> right. >> giant consumer credit increase, a big revision down, but not as much as the increase, so, that was interesting. all that together, he did say, banking looking up 20%. i don't know what he said, if anything, on trading. you kind of have to think they all sort of swim in the same tide, that would be a little light for them, too. >> uh-huh. >> it's been fascinating to look at where banks have come as an asset class. if you look at jpmorgan as the

bellwether, it's outperformed the last two years. most people would have said, no way. no way, especially when you consider the growth that's going on there. if you look at a citicitibank, which, for different reasons, probably appropriate reasons, is basically flat to the s&p over two years. and that toe many is kind of where karen, i think, often is leaning, i'm leaning to a place where i think there's a lot more upside at citi, a lot of prove me there. and i think they've started to do that. >> citi in terms of valuation has room to the upside. we thought maybe $75, given where it's been price to book. bank of america, so, berkshire hathaway, they sold 19 million shares last week. they still own 865 million shares, which i think they're clearly pearing down. the overhang is there. i think if you want to buy bank of america, you do it at book value which is 34 bucks. it traded down to that on august 5th. >> favorite bank, court? >> jpmorgan, we always like, but i think they have a lot of opportunity, especially as you're starting to see, you know, some of your mid-sized

companies are looking to your bigger banks to do business. and i think that trend is going to continue. you're going to see investment banking revenue. but i think to -- as we get more and more likely that the fed's going to be lowering interest rates and seems the consumer continues to hold in there, that provides a positive backdrop for all of the banks, so, i think it's an opportunity. coming up, no school like the old school. ibm outperforming the tech space, but can the run continue? we'll debate that. and brian niccol taking the wheel today at starbucks. can he help the coffee chain and its shares turn a corner? don't go anywhere. more "fast money" in two. missed a moment of "fast?" catch us any time on the go. follow the "fast money" podcast. we're back right after this.

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begins its new chapter with brian niccol at the helm. the former chipotle ceo is looking to turn around slumping sales and fix a slew of other challenges. cnbc's kate rogers has the story. >> hey, melissa. niccol is staring down challenges at starbucks. here in the u.s. and in china. the balance will be maintaining their global position as a premium offering while ensuring a competitive edge. something that chipotle executed rather well on under his leadership. last quarter, same-store sales fell 2% in the u.s. as consumers were discerning with spending. and executives announced discounted offering, which is uncharackacharacteristic for st. it's speeding up service times with its new siren training system for baristas. in china, which is its second largest market, same-store sales fell 14% last quarter, as it saw more competitor from cheaper competitors.

the former ceo said the company was in early stages of looking at strategic partnerships to accelerate growth in china. at chipotle, niccol would say to delight the customer, make it worth it to come to chipotle every time, and that is something that starbucks need to recapture. >> do you have any insight -- i don't want to put you on the spot. as to what brian niccol has, you know, did today, did he go to stores, i mean, i would imagine it's a great photo-op. >> so, they haven't revealed what his schedule was, we do know that leading up to him taking this position, today, he's been visiting cafes and talking with baristas to kind of understand the on the ground challenges that they're facing, quite frankly, and how to fix them. and i heard it's going to be very internal week, a lot of meetings to get bearings in this new role. we'll keep you updated when we hear. >> all right, thank you, kate. >> thank you. >> how hopeful are you for starbucks, tim, as a customer

and sometimes shareholder? >> yeah, i'm a shareholder. and i would like to be a bigger shareholder. i do think that pop was a lot of, you know, instant gratification for a ceo that is a rock star. and deserves, you know, and that pay package, by the way, is being analyzed by the analyst community for all the bells and whistles around performance and the dynamics attached to it. i think the company still has significant challenges in terms of their margin and their pricing dynamics, the pressure, the promotional environment that maybe they have to get into, and china. >> yeah. the pricing seems like a huge challenge as we're getting more data points that the consumer is slowing, more discerning. >> yeah, so, that -- this is exactly that, ultra high margin -- yeah, that's problematic. we'll see. and also, how much it slows things down. so, that's operationally, as well. maybe he can fix that. that could be good. the china thing is a really big problem. >> yeah. >> right? our consumer's starting to feel stretched. their consumer is just -- >> worse. >> deflationary data coming out of china today.

>> if you look at the all-time high was made in july 2021. since then, the downtrend has been in place. even with this bounce that we've seen. the price range for analysts, i think $80 to $120, the average is 98 bucks or so of the analyst community. i think you fade this last move. and since that day august 16th, whenever it was, stock has gone nowhere to slightly lower, so, it is a prove me situation for him that it's going to take more than one quarter to figure out. >> yeah. court? >> and i do agree, i think we can't really discount the concerns in china. i don't know if the new ceo is going to be the person to fix that when it's really just macro issues in china itself. but if somebody comes in with the u.s. story, it would be him, because when you look at a starbucks, i don't know if just lowering prices is going to be a way to bring back consumers. he's probably the person to do that, but is it enough to offset china? i don't know. i'm not convinced of that. >> is this still like a nike?

it's got the niccol factor, but it has the same issues, right? large american multinational company, a slowing consumer, a premium price point, you know, all these iconic -- >> it's starbucks, though. it's starbucks. >> it's nike, though. >> it's a place where people have such affinity and loyalty to, i think this is so powerful, and an opportunity, but i look at some of the macro head winds -- it's not structural for the company. i think they're going to solve the chaos that exists in these stores. i think -- i think there is a lot of work to do, but i -- i worry more about the macro trends here. i love the brand. and i think it's undervalued. >> i think about the arc of a new o, just kitchen sink that first quarter, why not? it's not on your dime, and just -- set the bar lower. and then, i think about, all right, how much time does a new ceo have? >> the last one didn't have a lot of time. >> well, look at intel.

i mean, in other words, i mean -- >> too much time. >> exactly. i don't know, is it three years, longer than a year? i don't know the right answer. he's clearly got his work -- >> can i ask tim a quick question? >> hi. >> arc of a diver -- >> arc of a diver? >> who is that? >> i don't know. i hear diver, i think diver down, halen. >> that's what i said. >> going to have to write the question and submit it to me prior to -- >> that's fair. >> this is really a minute of my day i can't get back. a quick programming note, do not miss cnbc and boardroom's game plan conference, bringing together athletes and investors. visit cnbcevents.com/gameplan to register. coming up, shares of blue showing gains. what our traders think of the name or what the charts are pointing to. and capri holdings jumping. and some rumblings in the

options market could be pointing to where invesrshihito tnk ts one is heading. all the details when "fast money" returns. (man) these men of means with their silver spoons. what will become of them when they discover robinhood gold allows others to earn their very liberal rates on idle cash? ♪

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welcome back to "fast money." ibm inching closer to a record high for the first time in more than a decade.

it's just about 1% away. shares of big blue up 1% today and up almost 18% in q-3, far outperforming the nasdaq, which is down nearly 5%. all right, this was just on wednesday your final trade, guy. >> forget about that. that's -- you know, it's sort of throw a dart and every once in awhile, you hit the board. >> blind squirrel. >> precisely. what is that thing, i always ask, because i forget, with threaters you make and some people -- >> acronym. >> two people here didn't really play it right way. >> what -- >> not even close to playing the right wa >> okay, blicep. >> i'm just -- my picks may be awful, but at least i played the game right. >> kind of. >> anyway. >> sandy picked ibm. we talked about, since gary got there and straightened out the rudd rudder, this stock has been lower left upper right, almost without even exception to the downside. maybe once or twice. so, yeah, maybe it's stretched

on valuation now. maybe. but they're doing everything right, and i still think this -- old tech works. oracle, ibm, look at just today. >> it's interesting. we have for years sort of s skewered them about the buy backs. how much money did they waste on the buy backs? as it turns out, every purchase will be a good one with -- but i mean, time of value and money, but getting to near all-time highs, good for them. >> we asked carter braxton worth -- >> cbw. >> the chart master to give us his two cents and he think this is a bearish to bullish reversal, to buy the stock. take a look at that. you see the curve -- >> we've had one turnaround by big blue. do we think we can get another big blue to turn around? >> mel doesn't want to go down this road. >> if i had a penny for every time. >> yeah. coming up, pot stocks soaring thanks to a truth social post from former president trump. the details and the action in the cannabis space next. and here's a sneak peek at the cramer cam.

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holdings and tapestry jumping today. the ftc's bid to block the merger headed to trial today. one options trader is betting this deal will prevail in court. mike khouw has the action on this one. mike? >> yeah, so, capri traded a little over two times its average daily options volume, and all of the unusual activity was associated with just two trades, and the one you were alluding to was the larger of the two. so, basically we saw 5,000 risk reversals trade in november. it was the 22 1/2 45s, selling the 22 1/2 puts and buying the 45 calls. the trader paid $1.90, so, about 5% of the current stock price. and the way to think about that is if the deal does go through, goes to the cash price of 57. then they're going goat payoff of about 4 to 1 on the premium spent. downside, of course, would be they'd effectively own the stock at that lower put strike they sold. but that, of course, would actually be priced lower than the stock was trading even before this deal was announced. >> karen, you flagged this trade. >> yeah, i love that trade. and i wish i could have done

that trade. >> it moved a lot during the day. probably not terrible after, but -- the chance of this working out, i'm putting up the $1.90 and turning to $12, i think there's a reasonable shot that happened. >> mike, you also love the trade? >> i do, yeah, i mean -- just for the reasons that karen was just talking about. first of all, i mean, a 4 to 1 payoff, i mean, it's a little bit flimsy, when you think about anti-trust concerns, that it's really where the government should be spending its time and attention trying to protect affordable luxury leather goods. i would have to think that there would be better applications of the government's time and resources. but of course, just looking at the trade itself, the fact that you would own the stock at such a substantial discount to where it was traded before this deal was announced seems like a relatively low risk to me to the downside. >> i like mike khouw telling it like it is, right? thank you, mike. >> leather is a big portion of tim's wardrobe. >> sure. sure. >> another kind of show. bags, belts, whatever.

>> your trifold. >> my trifold. >> pocketbook. yeah, thank you. let's talk cannabis stocks. former president donald trump said he would vote yes to legalize recreation alp marijuana use in florida. he said he would work with congress to pass common sense laws to support states rights to pass their own legislation on the matter. this has been the hope for a long time, been in the ether for a long time. what do you make of this? >> he's been well coached on this. president trump, who, during his administration, was not against cannabis, in fact, let the states do their thing. it was out there talking about the rescud heduling, that whiche biden administration put forth and probably will go into the next administration, whether it be harris or trump. he seep sees green light on thad he started talking about safer banking, stuff that couldn't get done with this administration even when they had control of the senate and control of the house, so -- i mean, if you're a cannabis investor, the things

that are going to move the market are free cash flow for the companies, that's rescheduling. safer banking, exchange listings -- this is what you wanted to hear. i'm just telling you, we've heard a lot of stuff in the past, and this is, you know, it's a political season. but this was -- these headlines were extraordinary. >> so, even you were skeptical? >> well, i just -- again, i watched the trump presidency possibly have some of the most significant progress during his time all on a relative basis to where the cannabis industry went. under a biden administration, with democratic control, a lot of the key tenants that people thought were going to get passed didn't get passed, and so -- but this n fantastic for -- all the air's come out of the market after the rescheduling looked like it was a done deal and then maybe it wouldn't under this administration. if trump is the next president of the united states, cannabis looks good. >> if you look at till roy over the last six years, it's flatlining.

over the last couple of years, you've had these moves, like a buck and a half on the onside, but it's traded up to three bucks a couple of times. percentage-wise, it's a big deal, and still at a billion and a half dollar company. if you want to play stock market here with tilray, looking for a 30% move, which is not ridiculous. that's how you play it. >> all right. up next, final trades. when it comes to amgen's life-changing medical breakthroughs, every second counts. but without investment, those breakthroughs are often paused. citi's seamlessly connected banking, markets and services businesses, deliver global financial solutions. so our client can keep investing in innovations for patients around the world.

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tony, its gone. no. how am i going to do this? welcome to the mdy mid-cap cup, presented by state street global advisors. today's challenge is to play 9 holes without the middle of your bag. how does that sound? that sounds terrible. ♪♪ ♪♪ ♪♪ ♪♪

welcome back to "fast money." another quick check on oracle here. near afterhours sessions high, after the company announced new partnerships with google and amazon.

shares would open at an all-time high at current levels. wow. time for the final trade. let's go around the horn. tim? >> nowhere near an all-time high is delta airlines, but a nice bounce off that august 5th low and i think airlines continue to run. you can stay in this trade. >> karen? >> yes, do you remember, a couple weeks ago, zoom video put up that fantastic quarter. and the stock was up huge. bought some higher, but i'll wait a little, now it's sort of come back down, not all the way, part of the way. zoom video. >> interesting. courtney? >> we talk a lot about the old school tech today, which i do love the idea of. i think dell is also worth a look. it's getting out of the s&p 500, doing well. it's something to look at. >> now new school with a.i. >> old school -- >> the 49ers of san francisco are playing tonight on "monday night football," they're playing the jets of new york. what are the chances that you stumble upon that game at any

point? it has to be more than zero. no? unfortunate. >> anyway. >> it is unfortunate. but what has been fortunate are these defense stocks, which continue to trade well. rtx, mel. >> thank you for watching "fast money." see you back here tomorrow at 5:00. 5:00 for more "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 make friends. i'm just trying to help you make a little money. my job is not just to entertain but to explain and educate. so call me at 1-800-743-cnbc newsom. tweet me @jimcramer. all last week i told you that rather than selling everything, you should just si