>> all right, scott cohn, thank you. and of course, taiwan semi reports earnings overnight, too, after the moves we've seen in both directions with chip stocks this week. >> tomorrow, netflix. and you -- this might be hard to believe, but when we talked about fang years ago, that n didn't stand for nvidia, it stood for netflix. it's going to be interesting to see if it can get further above this 700 buck a share level, near all-time highs, amid all this talk about megatech, which, in part, it is not. >> yeah, we also get initial claims, which could be noisy, because of some of the dynamics. retail sales watched closely. and we got a new record high on the dow today. >> sure. >> all right, that does it for us here at "overtime." >> "fast money" starts 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. rally on? from pannings to industrials,

utilities, we are seeing strength across a wide swath of sectors today. what it means for the broad market, and it is not just technology that is leading. and streaming gains. shares of netflix trading near all-time highs. their earnings out tomorrow. will the results keep shares soaring, or will netflix get chilled? plus, amazon getting in on the nuclear energy trade. one old school tech name hitting new highs for the year. and are car prices collapsing? what it could mean for the auto trade, as ell. we have a lot to do. i'm not melissa, i'm brian sullivan, thank you for joining us here on "fast money." as always, live from studio b at the nasdaq. and on your desk tonight, tim seymour, karen finerman, carter braxton worth, and julie biel. welcome, everybody. >> welcome, brian. >> thank you. good to have you. >> i missed you all. >> all right, we begin with some signs that the market rally may

still have legs, even after 46 record closing highs for the s&p 500 this year. the s&p 500 up half a percent today. the dow gained over 300 points, and, yes, when you're at a record high, tim, and you go a little higher, what do you get? >> a new record high? >> you did go to georgetown. >> i mean, once in awhile, a squirrel finds a nut. >> the small cap russell 2,000 index up 1.6%. and today, it was not tech leading the way. banks opping. some of the sessions biggest winners, the kbe bank etf up more than a percent, led by morgan stanley. morgan stanley soaring 6.5% to an all-time high. they had their earnings surge in dealmaking and trading activity, as investment banking revenues soaring more than 50 -- you heard that right, 5-0 percent. get her on that in a minute. utilities, materials, industrials, all higher today. all three sectors at new records. i feel like we just, tim, named

every sector in the stock market. >> other than technology. and that's kind of the point, right? you don't necessarily need megacap text to take you -- >> it's nice to lead without nvidia, right? >> who is nvidia? i don't know. we didn't -- >> never heard of them. >> i think the point is that you have had essentially this barbell approach to the market. look at the 3.5% move in the dollar from the start of october. that's telling you something, not just about relative central bank differentials, but something about the economy that there's more confidence here. that's an economy -- these bank earnings have been -- they've been fine. they haven't been so extraordinary, but what they have allowed the analyst and investor community to do is to begin to upgrade their expectations. when we hear from bank of america, citi bank, their securities portfolio are yielding 3.6%, 3.7%, and their deposits are 2.1%, we can do that math. banks came into earnings season flying and they're coming out flying. regional banks are back to where

they were. they are taken back to finally where they were silicon valley bank. it is a message for commercial real estate. >> quick followup, and to quote the great movie "margin call," explain it to me like i'm a golden retriever. >> small child. >> or a small child. >> you knew -- wanted to see what the other guy said. quickly. what is the dollar's move telling you? you said -- sent a signal. what is that? >> a weaker dollar is, at times, a risk-on moment. it's a case where i actually think there's confidence in the u.s. economy. the fed guided to 2% gdp growth to 2027. i don't know if we're going to get that, but if we get, you know, trend or slightly above trend growth or slightly below, depending on what trend you're following, that's great news. that's full steam ahead for banks and consumer stocks, which have also been part of this rally. so, i think there's been a chance for the market to have a different perspective on some of the same story, which is that we didn't have recession.

this was the -- the worst kept secret on an economy that really wasn't that bad. >> yeah, so, i mean, to be -- it all starts with banks, not just how the banks are doing, which was well above the board, but also, their look into the economy, which is pretty good. and especially in this, you know, long in the tooth, no recession, soft landing, no landing -- >> no landing. >> right, no landing. to still have things look pretty good, particularly credit quality looks pretty good. and, you know, we saw jpmorgan had a nice beat on loan origination. that's a sign of the economy doing nicely. so, i like earnings season. it gets tiring sometimes, but i like focusing on the fundamentals and not all about what's the fed going to do this or that, but what's actually happening in the economy. >> the thing that's really important today about the morgan stanley, two things, one, goldman and morgan stanley are the big heavy broker dealers, and they have been trailing the boutique shops, this would be evercore, piper. >> they've still done well.

>> but on a relative basis, they are making new 52-week lows relative to the boutiques. so, them coming to life is a happy thing in terms of, at least they're starting to participate. one thing to note about the banks, if you look at the bkx or the kre, they are below where they were on july 30 relative high. so, with all of this, they're still behind the market, and so, that's what alpha is, as you know. it's not what you picked, it's what you could have picked instead. so, the question is, now, with this huge left in morgan stanley, this huge lift in goldman, what's the follow-on act from here that would deliver alpha for a general manager who is overweight an area that's still underperforming the market. >> let's quickly -- the etfs, okay, you mentioned the kbw and the kre and everything. they got a lot of stocks, they got a lot of mid cap, small cap banks, banks that you have never heard of in central arkansas. and the big caps are the heavier weight. so, is that telling a bigger

story about banks in general, or, are you trying to focus in on just the super majors? >> well -- >> the investment banks. >> the news is the super major news today. >> morgan stanley. why should they lift a bank in arkansas? you get my drift? >> the point is -- >> why are we talking about arkansas here? >> we're not talking about -- >> razorbacks fan? they've had a couple upsets this year. >> bentonville, they have a -- >> it's not about a bank, an snl, it's about one broker dealer, commission-generating investment banking operation versus another. the big heavies have lagged the boutiques. the question is, is this now the catchup that continues, or are they still going to lag? there's really more alpha in the smaller name. >> not talking about the money center banks. >> no, the news today was morgan stanley. that's what we're talking about. >> we were. iulting arkansas. >> you would never do that. >> i just did. bank -- julie, save us here, here's the thing. small caps, kind of your jam and

you got to be happy to see small -- we've been waiting for the small cap outbreak for, seemingly forever. i don't know -- maybe you will call it an outbreak or not -- >> breakout. breakout. >> yeah -- >> outbreak. breakout. >> i don't know. >> breakdown. >> trying not to call it an outbreak. >> tom petty with the breakdown. save us -- >> i try not to do that, but no, for sure, we had our first breakout in july that was really where we saw confirmation of the growth and that kind of settled down, and now we're seeing it take on again. i think that's just a function of earnings, right? and most of these sectors within small cap are finally starting to show earnings growth. we're hoping to see more of that and more clarity of that for 2025, but if you look at growth expectations for small cap as an asset class, they're well ahead of what large cap is able to do, which makes sense, right? they haven't been participating, they've been lagging large cap up until this point, and so, their comparisons are easier. financials on the small cap

side, i think that's really going to be when we figure out the strength and health of the financial seasonal, because we have so many of these small regional banks that have had a really hard time. i'm really curious to see how they are doing. not because i want to invest in them, because that's not really my thing, but mostly just to get a sense of the overall financial picture. >> but it does tell a story, a picture, i think, of money coming into all parts of this market, julie, not just five stocks. >> yeah. absolutely. i think you, you know, seeing the relative levels of breadth expand in july and kind of continue to expand over here, it gives everyone a lot of comfort that you're having a healthier market, if it's not being driven by just a few handful of stocks, right? it's still the main story, right? nvidia is still 20% of the growth in the s&p this year, so, there's still that, but i think the opportunity, both on valuation and earnings growth tends to favor small cap, but you have to be selective with 40% of the index still not even profitable. >> i think after a small cap

outbreak, you often need to be comforted. confined to bed for a couple of days. >> after a long outbreak, you get a breakout at some point. i would just take it back to the banks, it's been so easy to pick on the money center banks, like a bank of america that's still fighting to get back to kind of pre-crisis levels, and there's a lot of dynamics at work with some of those banks. citi bank will never get back there. but bank of america has per outperformed by 18%, 18% over the mag seven. so, this is the case -- look at this move in utilities. that's a fundamental story, in addition to an interest-rate sensitive, where rates are coming down. look at the at&ts and the altrias. it's hard to get into excited, ill think the sponge is full there. >> yes, that's the expression. >> i do find -- the utilities, the profits are regulated by the

government, but people must love the dividends. let's bring in another voice, that is our friend, dan suzuki, the deputy chief investment officer at richard bernstein advisers. all right, so, dan, you think the market has not put in its top for the year? you remain optimistic. >> yeah, i mean, listen, there's, like, two months left in the year. anything can happen, right? >> there's also an election. >> there's also an election. >> bring that up. >> yeah. but when you think about it, i mean, the things that matter most for the markets are probably profits and liquidity. as you've been talking about, profits are accelerating in the broadening out, and liquidity is actually really strong and the fed's cutting interest rates. so, i think with that, those two le levers, the market still has legs. >> the banks and their earnings, they were good, but is that a measure of anything other than the health? goldman sachs, i don't think, represents the american economy, is that a fair statement, no offense to goldman. the bank earnings have been good, that's nice. wall street loves it.

does it tell us anything more about how every other company is going to do? >> i think it does. there's a broader theme happening here. first of all, it wasn't just the investment banks. you're seeing it from all the financials that have reported so far. better than expected results and things are pretty good. are they going to the moon? no, but things are pretty good. but it extends beyond the financials. i think -- even the nonfinancials that reported already which is just a handful, are telling you that things are not as bad as people are expecting, and things are getting less bad in the areas that have been beaten down. i think that's the big opportunity. people forget that huge portions of the s&p 500 are still in a profits recession, but they are exiting that profits recession. that's the opportunity. everybody's left these for dead, because their growth has been terrible, but it's staying less terrible on its way to good. >> we talk about the elections, we know about geopolitics, and i say this -- you at times have been concerned about this market, and i think at bernstein you guys do a great job of actually being cynical and trying to figure where the

problem is. why has the market turned the corner? did the fed give us the green light? we get this sense that -- i agree, i think the market's going to higher on year-end. i don't see any surprises from the fed. i think there could be a bad data point or two, but outside a political cycle and geopolitics, i think we're going to set new highs all the way through. how have you gotten more constructive? >> i think it's really just been a function of, the market moves in these sort of one to two-month narratives, and the narrative shifted way too far to things are terrible, growth is slowing down too fast, and that's why the fed has to cut 50 basis points. if you look at all the data we've gotten since then, it's telling you that things aren't that bad. whether it's from the earnings economies, the economic data, you're seeing economic surprises pick up. and on top of that, you have the china stimulus story that's playing into this growth recovery. when you put all that together, we're looking at a world that's actually growing pretty decently with actual upside relative to beaten down expectations. i think it's just fundamental. >> dan, looking at the market and thinking there's upside, do

you think the rotation moves things around and we get upside from different places? >> i mean, absolutely. i think the risks lie, you know, the biggest concentration of risk is going to be in the most cro crowded, expensive names. a narrow market is unhealthy, and i think as it broadens out, it's really just following the fundamentals. it's not like it's happening in a vacuum. earnings growth is broadening out. this quarter, there's probably more sectors and more companies reporting positive and improving earnings growth, and in that context, it makes sense that the performance will follow through. >> a lot of love around the table. i got to -- i'm going to have to throw cold water. the late, great charlie munger would look at what could go wrong and work backwards from there to try to come to -- he didn't start with the bull case. what's the worst possible outcome and then he kind of worked down from there. i think it worked out for him, by the way. >> yeah. >> what are the risks to this market?

there's a lot of geopolitical stuff, an election, i get it. your job is also to look at the risks. what's the downside risk here? >> well, first of all, depends on your time horizon, brian. again, on such a short time horizon, anything can move the needle, and again, these things move in two-month narratives, but fundamentally, probably the biggest risk is that, you know, things actually, the slowdown that people are worried about actually comes through. and there's a million things you can point to that would actually support that. i think there's also a million things that support the opposite, but listen, you're seeing credit stress among the low income consumers. you look at retail earnings, people are excited, but they're all negative numbers that the companies are posting, and so, when you put all that together, if the china stimulus doesn't come through, you know there's a lot of reasons to think that, you know, the -- the u.s. economy, everybody knows is consumption-driven. the consumer is the -- the drivers of that consumer are slowing, gradually. i don't think they're falling

off a cliff. but if that continues, you know, that's the worst case scenario. this broading out is sort of temporary and it's a head fake. that's the concern. >> thank you, dan. my cynical take would be, if china stimulus worked, they wouldn't have to keep stimulating. every couple years they restimulate. it's an outbreak of stimulus. >> outbreaking again. >> you know what's coming here. >> watch out, arkansas. >> dan, thank you. >> julie, let's -- again, broaden this out. you heard dan. i wasn't trying to be negative and say that would go wrong, but everybody here, that's their job, right? there's always a risk in every market, how do you see it? >> yeah, i mean, i take pride in being the gloomiest investor most of my clients meet. >> as you should. >> i mean, look, really what i'm paid to do as a portfolio manager is to say no, not yet. i'm most concerned about downside capture and protecting my clients. so, i think there are things that make me a little bit nervous. i think dan did a great job mentioning them. i also worry about just the level of deficit spending and

neither candidate, obviously, has any interest in talking about that. so, what that means is just, we don't quite have the level of cushion to address any kind of economic shocks that we could foresee or not foresee. pandemic or otherwise. that's the thing that makes me a little bit nervous. but i feel more optimistic. i feel more optimistic about the consumer, given that it seems like they're really saving more than we thought they had been, so, there's enough here to kind of keep me interested, keep me interested. >> good stuff. i think it's rational, wasn't too bad blogloomy. you brought the realism. all right, we are one block down, long way to go. coming up -- what does that mean? >> just means, wow. i'm actually intrigued. i feel like we've only just begun to fight here, brian. >> we only -- >> strap it on, let's do this. >> carly simon. >> yeah. >> coming up, charting the airlines. united flying high after reporting last night. what the chart master sees in

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all right, welcome back. it was the very friendly skies at least for investors today. united airlines with some good news on earnings and the stock took off. again. united's had a heck of a year, it's up 75%. now back to its prepandemic highs. the question of course is what is ahead? let's ask the chart master, carter, what do ual's charts suggest. >> thank you, so, i can answer the question right away. i think maybe you take some profits here, but before we do, let's look at the whole space and work backwards. we might have some charts. the first is looking at the new york stock exchange arca airline index. and that goes back to 1994-1995. and you'll note, of course, that it is the exact same level it was some 30 years ago. so, this is a trading vehicle. and the question is, is it a time to be longer or short if one is a trader? i think it's time to be long.

and hence the arrow depicted. now, if you look at the chart of ual, where as the index has not moved out of that well defined formation, ual has exploded, right? it was 37 in its august low, it's up almost 100%. that's the very definition of an overbought condition. and if you look at the next chart, you'll see a price or lay or the that depicts, that's rsi, looking on that five-year chart, it's a bit much. i would sell calls, i would trim. i would take some measures before, as they say, someone does it for you. in terms of the relationship between ual and the etf jets, you'll see a comparative chart, and what this spokes is that the correlation is about 92%. but ual has ral has really take has gone so far ahead of its peer group that one is right if one has profits to get out and

double back and pick up the other. i'd rather be -- >> sell ual, buy jets? >> that's right. >> and the final chart looks at a long-term comparative chart, and you can see how tightly correlated they are. and there's ual literally exploding, going back to the inception of jets etf. my hunch is that it's full, expensive, rich, whatever word one chooses. if you're long, i would take some measures. >> $1.5 billion buy-back, first buy-back since prepandemic. what do you make of the move? >> well, i mean, timmy is more we we well-versed, but they are trading environments, and i think -- that chart really showed it just going hyperbolic. >> up 100%. >> yeah. that pairs trade would really be a relatively low risk one. >> i think so. >> you have to think it would -- >> there's a bit of auto correlation in the sense that ual is the largest component of the jets, so, if you could net

that out, but either way, that relationship, highly correlated, one is so far ahead of the other, that's the thinking, pair trade. >> yeah. but if you -- if you look at, to me, the overall, both the business model and the dynamics around the airline sector overall for investing, i get the sense we've really worked off covid. i know that sounds like, just kind oaf a bland statement on stocks being higher, but delta's certainly traded at a lower multiple with more profitability, more free cash flow than it did pre-covid. i would make an argument. but the reason why airlines are trading vehicles, and you tend to dance by the door, except for now, delta is breaking out through that 54 area that has been resistance. i think you're buying this move, as carter said,en and i think y dance by the door, despite the fact that airlines have shown new the past, they want to show you how inefficient they'll be with the next dollar they'll make. that's what the analyst community is waiting to hear.

where is capacity for available seat miles? there's all kinds of acronyms. you don't want that chasm going higher and you get penalized for it. >> spirit airlines has got some problems. if there's no more -- we don't know what's going to happen, but if some of the low cost airlines don't do as well, money in united's pocket, i would imagine. >> i think it's becoming a case where some of these -- the big three have more pricing power than ever, it seems. >> i'll be on united tomorrow, i'll do some on the ground reporting for you, tim, from newark. >> where are you going, arkansas? >> no. going back to wisconsin. >> okay. >> just asking. >> going to guam. there's a lot more "fast money" ahead. here's what's to come. the nuclear trade heating up. amazon web services making a huge investment in the alternative energy source. how much they're spending, and just how much a.i. will drive power demand. plus, netflix earnings on deck.

what to expect from the streaming giant when they report tomorrow. and how the rest of the media landscape stacks up. you're watching "fast money," live from the nasdaq market site in times square. we're back right after this.

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all right, welcome back. amazon, the latest big technology company hopping on the nuclear energy train. amazon web services announcing it will invest more than $500 million to try to develop small modular nuclear reactors, known as smrs. diana olick has more. di diana? >> well, brian, the investment spans three different projects. first in virginia, home to nearly half the data centers in the u.s. aws signed an agreement with dominion energy to explore the smr near dominion's existing nuclear power station. aws's ceo told me growing power demands make nuclear necessary. >> we're looking forward, and we see the need for gigawatts of power in the coming years, and there's not going to be enough wind and solar projects to be able to meet the needs, and so,

nuclear is a great opportunity. also, the technology is really advancing to a place with smrs, where there's going to be a new technology that's going to be safe, it's going to be easy to manufacture, and a much smaller form factor. >> smrs are an advanced kind of reactor with a smaller physical footprint, allowing them to be built closer to the grid. they have faster build times than traditional reactors. amazon also announced an agreement with utility company energy northwest to invest in the development of smrs in washington state. as part of that, amazon's climate pledge fund announced it is the lead anchor in a $500 million financing round for x-energy, a developer of smr reactors and fuel, which will provide the parts and nuclear fuel for that project. now, as part of this, this morning energy secretary jennifer grand home announced $900 million in d.o.e. funding is available for smrs. brian? >> but to be clear, and i think it's an important point to make, there's no operating smrs

anywhere in the world right now, china has one they are building as a test. i want to make clear, this technology is not proven, it may not work. >> well, as he said, it's about five to ten years out. they are building four of them on the first amazon dominion project, but he said they could do up to eight. you're right that it's not fully tested yet, but everybody seems to be putting a lot of stake into this, because they are so much smaller, and they're easily movable and put into places by the grid, by a data center, so, it seems to be where everybody is putting the money. >> and let's hope they work, because we're going to need that power. diana, thank you very much. julie biel, any investment angle around this new and hopefully real technology? >> yeah, i mean, you can play it different ways, right? there are these newer novel technologies, and it's still a question mark if they can actually get it done. it is interesting, the d.o.e. put out a report that 41 of 54 of the existing nuclear reactors in the u.s. could expand an add

something like 60 to 90 gi fw awatts of capacity. how much is a gibgigawatt? i don't know, but it sounds like a lot. that plays into the hand of existing players like constellation. so, if you have anxiety about trying to play into a technology that maybe is going to take more time to come to fruition, i this i the existing players are a great place to be. >> 1 gigawatt is 750,000 average size homes worth of electricity. >> how long? >> well, every day. so oracle is talking about building a data center that would use as much energy as 750,000 homes. that would be the biggest city in arkansas. >> well, data centers, electricity consumption by 2026 is going to be something, like, an again, you're the megawatt expert, but 1,000 terawatt hours, double of what it was in '22. and we're in a world where we

already were concerned about the grid. the buildout of infrastructure in this country, the fact it's carbon neutral is part of what makes this at least so exciting, until there's a problem. i've been investing in nuclear for 20 years, and there's always been different reasons why it was going to happen. i've never seen anything close -- look, there's no stigma anymore. >> no. >> you just -- >> the d.o.e. is giving -- >> just started three mile island again. >> it was only two-mile island when you got in. >> being early is wrong, folks. >> hard off of the turnpike in harrisburg. all right, coming up, a troubling new report on auto loan delinquencies. we're going to talk about the number of people who are upside down on their loans, and that number is growing. but first, netflix results. they are out after the bell tomorrow, and oorbit media executive tom rogers is here to break down what to expect those num enhoumbers cross the wire. that interview when "fast money" returns.

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all right, welcome back. if you missed it, it's okay, we're going to recap the markets for you. stocks rising overall today. the dow climbing more than 300 points, notching another record close. the s&p up half a percent. the nasdaq up about 0.3%, but again, it was up.

all right, what about some individual names? well, i guess we're going to talk about djt. shares of trump media rising 15% today. but they fell nearly 10% yesterday and even triggered a trading halt due to volatility. djt has nearly doubled this month. they kind of track along with the prediction markets on the election. ulta shares down as much as 4.5% before climbing back into the green. the company announcing a $3 billion share buy-back, but reiterating what some considered lackluster guidance, saying they see headwinds in the beauty industry. not really sure what that means, but going to sell less stuff. >> there's different ways to interpret that. headwind on the beauty industry. i'm aging. >> i wasn't going to say that. you look great. let's keep moving. >> csx and kinder morgan both

lower after top and bottom line missing. officer reit sl green, big here in manhattan, a revenue miss. shares of alcoa, they did jump after a big beat, and the ceo making some positive comments to morgan on "closing bell overtime." now, let's move onto a different company. we are fewer than 24 hours away from netflix's earnings. now shares a little bit down the last couple days, but let's be clear. the stock has been on a tear in the past year, hitting a record just on monday. but really, can these companies keep raising their rates? let's talk to a guy that knows something about cable, because he founded this channel, he's now a contributor here at cnbc, tom rogers, executive chair of oorbit media, the former nbc cable president, like i said, founder of cnbc. >> and that's why we call him the godfather, guy calls him

something else -- >> i feel very old. >> god pl father is very import. >> it frtruly is. i'm not the coolest guy with video -- has netflix had, like, a big hit, tom? what is netflix now -- what's -- >> in its history, netflix has had a big hit. hasn't had anything in the cultural zeitgeist right now. "bridgerton" season three -- >> "squid game?" >> yeah, they have a huge slate coming out over the next year, so, it's viewed as, they have some big returning shows and some big new shows. lack of original programming is not their issue. >> so, i bring this up not to talk about what show is popular at the moment, but because you know how it works, tom, okay? a lot ofpeople will -- it's called churn, technically, people cancel, they go a few

months, they hear about a show they like, they resubscribe, watch them all, then cancel. does netflix have that problem, or has netflix become sort of the library of video for america? >> well, you're pointing to a huge issue for the industry. if you look at the industry over the last quarter, i think the aggregate of all streaming services gained about 45 million net addition subs, but they churned out about 43.5 million. >> that's insane. >> now, netflix, on the other hand, has the lowest churn out there its churn is under 2%. the average for the industry is about 5.5%. so, you're talking about in the course of a year, about 70% of subs churning out. having said that, netflix is -- has separated itself. it is clearly the most valuable media company in the world, will continue to be the most valuable media company in the world, and

it is the first true global entertainment franchise that has global status. but that's comparing it to disney+ and to hulu and to max and to peacock and to paramount plus. beginning to see it get compared to a couple others, where it doesn't necessarily stack up quite that well. youtube, youtube and amazon. >> but those are very different. youtube tv is different. that's a cable -- >> youtube tv is streaming cable channels, but youtube connected tv has now surpassed netflix regularly as the most viewed streaming service. just youtube. youtube on the tv, not youtube on your phone. now, advertising revenue is the big thing, but when you look at youtube, which probably, on a combined basis on its mobile and connected tv audience, probably has something like 2 billion

eyeballs globally, you're talking about netflix by comparison having a very nacent of, in the u.s., i'd say around the order of 15 million subscriber subscribers, that's not viewers, that's subscriber. huge difference. looking at amazon, which is now the third-largest advertising base company in the world, in terms of ad sales, it is aggregating all the other streaming services and channels, netflix isn't participating, but most of the others are. apple tv plus, apple, just agreed to have amazon be part -- let amazon include it as part of its bundle. amazon in terms of data, in terms of targeting, is miles ahead of where netflix is. so, it's got a long way to go there. >> just going back to netflix only for a minute, so, we saw that sort of growth really reaccelerated when they had ad-supported, which they never

had, password sharing, and -- is there still a lot of room left in those catalysts? >> well, i think that's what everybody is looking at starting tomorrow. and i always think netflix trades on its subscriber numbers, much more than it should, because its long-term trends are really much more the story than the quarter by quarter subscriber fluctuation. it gained 39 million subs largely off the back of password sharing background in the last 12 months. going forward, it's not going to be looking like that. but they still have am -- they're getting about 45% of their new subs coming from the ad tier, so, the lower-priced ad tier y tier, which is the lowest price, only $6.99, i think should serve them well in terms of sub gains. >> it really is a new world in media. some good, some bad, tom, but we'll save that for another conversation. >> great to be in the studio with you.

>> great to have you, tom. all right, coming up, a major warning from the automobile market. rising number of car owners that are upside down on their loans. we'll get her on that. "fast money" back in two. ♪♪ well would you look at that? jerry, you've got to see this. i've seen it. trust me, after 15 walks, it gets a little old. ugh. i really should be retired by now. wish i'd invested when i had the chance...

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welcome back. used car prices are collapsing, at least from the pandemic-fueled highs. that's critical context. a chunk of that collapse being fueled by used electric vehicle prices plunging. gee, who could have seen that coming. new data from edmunds showing the average negative equity car loan is nearly $6,500 underwater, in other words, the car is worth $6,500 less than you owe. that is the most in history, and some of the staggering numbers don't stop there. phil lebeau here so break down some of these rather ugly details, phil. >> yeah, the upside -- let's start with the upside down l loans, because people think, a few people do this -- no, it's a substantial part of the market. essentially 9% or 10% of all vehicles sold, when these people are going in, about 40% are trade-ins, of that 24% are upside down loans.

and as you said, these people are owing, right now, a record high, this is according to edmunds. almost $6,500. and they're trading in vehicles, 3.6 years old. the average auto loan right now, as you take a look at the auto dealer stocks, it's almost $41,000. close to a record high there, and by the way, you will look at this, say, aren't the dealers impacted by this? remember, one way or another, they're going to get a vehicle, if it's new or used, and they're going to sell it. if it's used, upside down, whatever the case may be, they're going to make a profit on it. the delinquency rate in september, 1.97%. by the way, while that has increased, it's still within the historical averages. now, to the used ev price story. and the story here is that not surprisingly, because the first generation of models, they were all selling for well over $50,000. look at what the used ev price market have done over the last couple of years, according to edmunds? the average right now is

$28,384. that's for the average 3-year-old ev. down $6,000, $8,000 compared to a couple of years ago. if you look at what's happening behind the ev price plunge, it's easy to see why. lower prices for new evs. if i can buy new, why would i buy a used one? $4,000 used ev credit. that especially kicks in -- it does kick in, i should say, at $25,000, so, dealers have an incentive to lower that price, get in there so people can have the $4,000 correct. and the early adopters, they're trading these vehicles in for newer evs. there's great loyalty to evs from one -- when a person buys one and they trade in, they often buy another ev. and as a result, you just see this flood of first generation models that are out there, and you can't do an ev story without talking about tesla. remember that tesla reports its q-3 results next week. and part of the story here is going to be the impact on

margins, because it had to lower its prices for the model 3 and the model y, and offer incentives. that's been a big part of how it's been able to keep up the volumes in the third quarter. >> you can get a pretty good used ev with, like, a two handle these days, $20,000 and up, pretty good. >> sure. >> phil, thank you. julie, is there -- >> you bet. >> is there a play trade investment here? >> yeah, i mean, i think what it is, you have to be really thoughtful about how you're going to be playing tesla at this point. the biggest challenge that they're facing is not, you know, tariffs or what's happening with the chinese market and byd. it really is the used market for these vehicles, right? they have fewer moving parts than internal combustion engines and buying them used just makes sense. they tend to have a little bit less wear and tear on them. and that's a much bigger problem. you can see it in their promotional emails. they are breathless to get people back into their cars and newer version, and of course they do. their deliveries have not been where they need to be. >> but as any dealer will tell you, they can't understand the

conditions of the battery, so, they are very nervous to have the car. all right, big moves catch, our attention in today's session. what is behind the gains and all the trades that we're going to mention, those namess and the trades in two minutes.

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all right, welcome back to "fast money." cisco jumping after citigroup upgraded the stock to a buy, raising its price target to a street high of 62 a share. about 10% higher than today's close. citi expecting cisco to benefit from, guess what, a.i. growth. stock popping more than 4% today, tim. >> this has been one of the great value traps in megacap tech. this has been something that at different times had a different analyst on the street, and maybe even i've followed through on that saying this is the one you want to own, because it's cheap, they are switching more into software security, higher margin business -- that whole transitioning from hardware into software, a higher margin business, it's been frustrating. thelevels are interesting levels, and this is a stock that's been dead money for a year, so, this is an interesting breakout. >> okay, let's talk bitcoin, touching 68,000 earlier today. highest level since late july.

bitcoin has been on a run this week, lifting other crypto-adjacent names. carter, good little run here. >> yeah, so, the key with bitcoin is, we're back to those highs of three years ago, and in principle, if you look at sequencing or sort of the rules around that, when you return to a former high, a difficult level, you contend with it before exceeding it, and we've been backing and filling for about five, six, seven months. i think ultimately, it does press on and make new highs. >> yeah, so, bitcoin -- we saw maybe with djt trading higher, the idea of maybe a trump president is more likely, but actually both candidates, whether it's just being on the campaign trail, more pro bitcoin, and that usually bodes well when you don't have tougher regulation. >> fair enough. and finally, i'm going home and when i want to go home, i'm going t-mobile -- >> the who. great song, '71. maybe their best work. but -- >> definitely.

let's talk t-mobile, trading at levels back to 2007. it just keeps printing money. the wireless carrier has been on a run this year, up 40%. it's a mobile -- in a competitive industry, tim. >> right. first of all, as someone that's been a t-mobile customer from the days going all the way back to omni point, i got laughed at, it's a great company. and it's been a cash flow machine and they've been adding value to their investors and it's not expensive. i like it. stay long. >> all right. up next, your final -- well, our -- not mine. final trades.

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julie, kick it off. >> i like high quality software and i think bentley is good match for that. tim? >> brian, be well on your road trip. have fun. >> thank you. >> great having you here. i think the road trip for energy stocks is one that actually looks interesting here. and with oil all over the map, exson moves higher. >> yes. baba spreads, i've been putting a toe in slowly and today, baba spreads, and new york liberty, tonight, game three. >> go liberty. >> go mets, yeah. >> alibaba, not baba o'reilly. >> freeport-mcmoran. >> tim's got a mets shirt on. everything is fine. thanks for watching, everybody. "mad money" with jim starts 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 h