system of the enterprise and therefore necessary for nvidia chips and some of these best-of- breed software solutions to be part of anything, that will drive some value. >> of course, we have been talking about that, right? looking to 2025. that does it for us 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." alphabet and amazon plunging today as regulators take aim. will we see break-ups for these behemoths and what could it mean for the stocks? plus banking on gains, regional money center leaving the market today. and later, bitcoin bonanza, the crypto hitting another all-time high and inching closer to that key $100,000 mark. meantime, a key reversal in shares of micro strategy, what's next for the stock.

i'm melissa lee coming to you live from studio b. tim seymour, karen, dan nathan and courtney garcia. we start out with a massive fallout, shares of alphabet dropping 9%. this coming after the department of justice recommended that gooj sell its chrome browser to fix what regulators call an illegal monopoly in online search. reports of the doj recommendation had come out earlier in the week but the stock wasn't rattled until today's session. eamon javers has more on this. >> hey there, melissa. this is just the doj's ask and google will have a chance to respond in court. ultimately, it's going to be up to the judge and we don't expect that decision until the summer of '25. what the government is asking for here is a break-up of google, and we haven't seen something this sweeping since the government ordered the break-up of microsoft in the early 2000s, but remember, that decision was overturned on appeal. now, what the doj is asking for here is to force google to sell the chrome browser, which has

about 65% of global browser market share and they're also asking for google to sell android or for the government to put in what they call behavioral remedies that would block google from using android to favor its own search services. now, finally, the doj requests that google be blocked from paying apple the billions of dollars each year that it pays now for default placement on apple devices. google reacted to all this harshly in a statement this morning, saying, "doj chose to push a radical interventionist agenda that would harm americans and america's global technology leadership. doj's wildly overbroad proposal goes miles beyond the court's decision. it would break a range of google products, even beyond search, that people love and find helpful in their everyday lives." this fight goes into the final stages with the government making a big ask of the judge and now we're going to have to wait and see who you he responds, melissa. back over to you. >> is it in the thinking, eamon, that the judge is unlikely to actually pursue an outright

break-up simply because microsoft's break-up order was overturned? >> that's a really good question, and i think the judge is going to extra to take that precedent into account, and if he does push for a break-up, to make sure that he does it in such a way that it is stronger on appeal, because there's no question this is going to go to the summer of '25 before the judge makes his final decision and no question that google will appeal this thing. >> eamon javers in d.c. google, not the only big tech name getting hit. the eu reportedly considering a probe of amazon's e-commerce business and whether the company is prioritizing it own brand products. amazon could be fined up to 10% of global annual revenue. i know where we want to start with this. there's an overarching regulation on big tech. the google story is very interesting because the stock is definitely reacting. we haven't really seen that. >> shockingly. we've sat on this desk for a decade talking about the headwinds of regulatory stuff, and we just have been very

dismissive about what it means for the stocks and to the point he just made, here was a proposed remedy but yet it has to be -- i mean, the whole host of things that has to happen. the fact that it lost $100 billion plus in market cap is odd to me. the ftc or the doj basically has suits against apple, amazon, meta, i don't know what they have against microsoft right now, but all those companies actually have geef with each other and they support some of the other cases that are being brought against their competitors. so, it's a pretty weird situation. i'll just say that. it's like these are our national champions. make no mistake about it. this is the place for innovation. one of the things that i really underestimate over the last couple years is just how pissed off so much of the it can community, the investor community, so much of wall street has had -- think about wall street. these guys who do at lot of m&a, there's been no m&a in the tech space because of the regulatory overhang. a lot of these folks are really upset about this so it will be interesting to see how this plays into 2025. i think some of these opportunities, when you have a stock down 5%, probably good

buying opportunities. >> i tend to agree. the ask, that's what we pointed out, even as well, that's the most -- you can ask for whatever you want to ask for, right? whether that actually ever comes to -- if that, in fact, came to pass, the stock would be, i think, a fair bit lower than here. however, between here and there is -- there's a lot to happen. we haven't heard google's response. also, i think that the landscape is changing anyway in search. i think there was just a little while ago another competitor, you know, who wants to enter into search. i also wonder, so, who would you sell chrome to? >> who? that's the sticking point. no one can figure out who would be the natural buyer for chrome. >> who does that then make the target? >> then they have two-thirds of search. >> exactly. >> nothing's changed. >> they don't have two-thirds of search. think about it. the case here is that chrome, if you have chrome, and it's already embedded, you're much more likely to search on google, right? but if they sold it to openai, who's working on a browser right now, well, all of a sudden,

there's going to be lots of choice where that search goes to. openai right now is a search engine, for all intents and purposes, so to me, i think there's not too many buyers of it for regulatory reasons. >> i think the buyers are very powerful as well. so, i don't know. go ahead. >> i was just going to say, i don't even think it's where the big grievance is. i mean, the big grievance is really more on the ad tech side, which is another lawsuit that's just been filed and all this is timing to rush stuff through before a new administration comes through, and i realize you can make an argument that the filing in 2020 on search is something that, you know, has had its hands in maybe the previous administration, certainly in this administration, but we are talking about many years and possibly multiple administrations of doj pushing on these companies. so, it's not as if suddenly the trump administration would necessarily be looking to unwind all this, but that's the sense you get by the activity over the last couple days. you get the sense that there's some rush to actually get stuff

in before this next 2.0 trump possibly dismantles years and years, and again, i would just get back to where are the grievances? they're more on ad tech, more for marketers and advertisers. >> is this a buying opportunity? >> i would say so. i think realistically, when you look at what is actually being proposed, they're going to divest chrome, theoretically f it goes through. this is relatively a small part of their actual business. it's been estimated they'll divest for for like $20 billion, but i think the bigger issue is the regulatory concerns and just in general that environment. and tim, you bridge up the current administration because everyone's saying, if trump comes in, there's going to be less regulation, but when you look at amazon, this isn't just a u.s. problem. this is coming from abroad as well. is this a global regulatory phenomenon that's just starting? if so, that could put pressure on these companies, but short-term, i think this is probably an overreaction. >> if you think about what the number would be, 20 or $30 billion, it is really important to their search business. so, i read a stat that if you were going to go from internet explorer to chrome, you're 50%

more likely to do a google search. think about where the default is. so, if the ftc is basically saying, this is noncompetitive, it's hurting consumer choice, that sort of thing, it is important, and if you think about the dominance that google has in search, and if you cleave that off and you don't have that connectivity to the search process, then it could be a huge hit to google, but again, to your point, it's going to be probably at least a year or two away. >> well, it's summer is when the judge decides and then google will appeal. that could be tied up for years. >> it's a negotiation process. >> exactly. all right, let's add deepwater asset management managing partner gene munster to this conversation. how are you thinking about this ask of judge meda? >> well, my initial reaction is to go to the worst case scenario, which would be, in fact, that chrome gets spun out. in that case, google's call it 90% search share within kind of the, i think what i would consider developed countries, 90% share is going to drop,

probably goes to 80%, and in that case, you probably get a search business that was growing at 10 to 14% over the past several quarters to quickly drop down to low single digits, maybe potentially even going negative for a little bit. and so, this is -- the reason why the stock is down 5% is that this really gets to the core of half their business, which is search, and they will claw that back over time if this does get spun out. people love google, and they will slowly come back just like they did with the index when they switched out their core and fire fox. and so, that's the first place my mind goes to. the second place is, what's the probability of this actually happening? i think the panel outlined it appropriately. i think it's -- the odds of this, anything actually going anywhere are low. not just because it's a difficult task to get a big spinout like this, but there just simply isn't precedent to it. so, i think that ultimately, this too shall pass. i do think that there are other things within what the department of justice and ftc

are doing against big tech that's going to rear its head in the next several months, but i think this chapter around chrome getting spun out is going to just kind of blow over, effectively. >> let's, though, pursue that worst case scenario pathway, gene. i mean, what does gemini look like without a chrome? >> well, it doesn't look very good. i mean, it goes back to this 90% share that is going to drop, and gemini needs -- it's right now a.i. overviews is riding on top of search. that is the mechanism that google is fightingi with is using their search dominance to do that. and so, that -- that is -- that's been a key piece to this puzzle. the puzzle of gemini is to leverage search, and so, anything you do, anything that happens that has a negative impact on their search share, this loosely circles back to something else that was buried in this department of justice letter that came out was related

to apple and their deal related to -- their search deal, and on both of these, if that deal got voided, that would have a negative impact. so, this does, again, i think it's a very low probability. i don't think this is the atopic on google, i think the perplexity is the atopic, but since we're talking regulation here, i think if something does happen, the stock would go lower. karen mentioned it would go lower, i bet it would go down another 10 or 15% on that. >> gene, it's karen, thanks for being on. what would be the default or is it there's no default and you have to choose from a menu in which case you might very well choose google to get back to your point of keeping a good percentage of market share? do you know what -- what the remedy would be looking for? >> the remedy would be -- so, if chrome got spun out, what would happen is when you start up your browser, they would randomize which option comes up first for

you to select, and so that would be some sort of equal playing field to do that. presumably, people would look down and check and go with google, and so i think that's why they're not going to lose a huge percentage of their share, because i think a lot of people -- but that's probably what the remedy. ultimately, this chrome business, without a deal where google would pay for placement or somebody paying for placement, that business is a horrible business. i don't know who would want it. i wouldn't pay $20 billion. i wouldn't pay $5 billion out of fears that the department of justice would block any of these kind of payments, so karen, i think it's a randomized piece. i think that anybody who's interested in purchasing this would want to have some assurance that they could sell placement on that. >> hey, gene, you mentioned the apple search deal, that they pay about $20 billion, that would be google to apple, 15% of their profits. when you think about that, is there a way that that deal could be blocked and not the chrome

deal? i'm just curious how you're thinking about that. >> i'm a big believer in apple. i think this company's going to have accelerating revenue growth with the iphone, with the piece that keeps me up at night is what happens with that search deal. and came up on the google the last earnings call, sundar said there would be unintended consequences if that deal got voided, but the fact that that language reappeared in the department of justice, in this chrome, and not only did the language reappear, but it almost outlined language to the effect of, don't try to work around this. don't try to work around us, the department of justice, in it, and so, dan, i think that, again, it's a low probability because this would be a very negative event. i think there's just a lot of lawyers on google and apple that would fight hard for this, but if, in fact, that did happen, the reality is that that's -- your numbers are right. mine are pretty close to that, 13%, call it, but it's a measurable impact to earnings, and so i'm surprised that apple wasn't -- again, big believer in

apple. i own the stock. i think it's going to do well over the years. >> gene, great to see you. thank you so much for your time. >> thank you. i want to go back to the point that we were talking about at the beginning of the show, which is why today? why today, of all days, did google decide to react to an antitrust headline when so many headlines have passed? we've sat here on the desk, and nothing happens to the stock. >> well, i think it gets back to what a timeline is both in the context of possibly a change in administration, but i think it also gets back to really what the upcoming dates, again, december 20th, google produces, i think, their final remedies. then, you get into this post-discovery period, and then you're really into the summer, and i just think at some point, there has been pressure on the company to respond, and respond aggressively. and i think that's part of what it is. and think about classic negotiation. overreach on each side, and when you talk about google remedies, you're already on some level acknowledging, okay, we'll do x, y, and z, and i think it's

important for them to get out there and act reasonable, even though they have to be very vocal in opposition. let's get to nvidia, the roller coaster ride for shares since earnings last night. the a.i. darling initially fell more than 5% after hours but opened today's trade in the green, rising nearly 5% and then fell back into the red midday. clawed its way higher to finish the day just above break-even. we were talking here, saying, what does it do omorrow? you said, down 5%. i said, up. >> yeah, you did. >> on average -- >> we're in the middle. >> you're more right than me. listen, this price action tells you that they're not done with this one yet. so, again, you know, that quarter -- >> who's they and what does done mean? >> i'm just -- >> i mean, "they," the ones who bid it up over a thousand percent. >> that's retail investors, by the way. >> we've seen the hyperscalers, their biggest customers fall by the wayside. microsoft can't get going. google can't get going. amazon's still doing pretty well. meta's still doing pretty well. super micro is not doing particularly well. those are the top customers, 50%

of the revenue. they're not beating the way they were before, sooner or later, tim, they are not going to be as impress anymore with the magnitude of the beats and ultimately it's going to become a story like some of these other ones. >> they were okay, though, with the smaller beat. >> yeah, they were. >> right, courtney? were you okay with the smaller beat? >> i think this wasn't enough to take the stock down. i wouldn't be surprised if it trades flat here. realistically, it is the fastest growing of your megacaps. you're seeing this risk-on rally. you're seeing that with bitcoin and that is where the retail investor wants to put their money. they want the thing that's doing the best, which isn't nvidia. it's in many of your etfs, which as people put money in, it's going to push it hyper. most of our clients are overallocated there, but i wouldn't get out of it. >> i will play the role of the nvidia bull here. >> okay. >> it was a smaller than expected beat, right, it didn't match the whisper number, and it struggled higher, and it still managed, off of record highs, still managed to close higher. >> all right, you're the bull.

>> i'm long, so i have to -- >> i want to be the bull. >> okay. >> are you the bull in real life? >> i'm the bull in real life. >> at these levels? >> they successfully down shifted all expectations last night. to me, we have a more modest outlook for blackwell. there's a slower transition going on and yet it's trading 33 times forward 26. to me, that is something that ultimately -- look around the market right now. considering the growth you're getting from nvidia, i know we like to sometimes be revisionist around here, i feel like i felt this way about nvidia for a long time. i think it's a case where this is growth at a reasonable price given what their growth is. >> i think you got to listen to the conference call. to me, that was where all the context was, and jensen huang was very, very bullish about the being in the early innings, right? and then we have tremor growth, and i think that this sort of changeover from hopper to blackwell, which they cited, all right, we will see lower margins

as blackwell scales, and that won't happen probably until the beginning of april or so, so we are going to see margins go down. but it is not a demand problem. right? so, that would be the problem that the beat and raise wasn't enough if it's because demand isn't there. that is not the way they painted it, and i tend to agree -- tend to believe him. >> dan is not the bull. >> what is dan? >> i think there's so many other things that are telling you that we're going to have overcapacity built out if you look at so many other names in the ecosystem. i will say this. to the bulls, you saw dell act pretty well today, you saw a reemergence of some of the ecosystem that had come off pretty hard. >> you can be right, but the problem is, when do you pull the trigger? >> you know i'm not going to -- >> that's the problem. >> i think courtney's point is a great one here. if you own this stock, it's become such a bigger part of your portfolio. sooner or later, you have to do something because you are so concentrated in this one name. >> all right. coming up, we're watching gap on the move.

details in the numbers from the quarter next. plus a first class ticket to airline technicals. >> nice. >> the head and tailwinds, get it? head and tailwinds in the space and the chart masters trade ahead. don'gonyer t awhe. (vo) this holiday, verizon will turn your old or broken phone into a gift. anyone can trade in any phone, in any condition and get samsung galaxy s24+ with galaxy ai and watch and tab, all three on us. even if your phone is old or dated, you can turn it in at verizon for gifts for you and the family. all three on us. that's up to $1,900 in value. only on verizon.

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welcome back to "fast money." shares of gap hopping 14% after beating top and bottom line estimates and raising its guidance ahead of the holiday quarter. cnbc's courtney reagan joins us onset with more details. >> this one, i feel like, has had so many stories over the years, so many ceos, but it looks like they're starting to gain some traction here. they beat earnings per share by a decent margin. revenues a beat slightly in line, kind of depends on how you want to look at that, and then comparable sales, slightly light, but they were positive overall if you take all those brands together and the gap namesake brand turning in strong sales, up 3%. old navy was flat this time around and that had be the winner. they're talking about gaining market share seven quarters in a row at old navy, which i thought was really notable and the fourth straight quarter of positive comp growth at gap. athleta comps were higher too when athleisure seems to be taking off. you spoke with a ceo recently. we talk about aloe a lot, but

athleta is still trying to hang into this game, so it seems like they're doing well. the call is ongoing. they're talking about the financial rigor, going back to basics and that's going to help these brands take off. we'll see. obviously, new denim silhouettes might have helped. the wide leg, the high-waisted. >> what's new denim? should i be wearing it? >> you're our denim guy. >> if anyone should know, it should be you. >> also, by the way, usually means you end up buying new tops and new shoes, because when you got a new silhouette, everything has to get changed up. >> should i wear a jean shirt on air? is that all right? >> yes, tim, go ahead, please. >> with jeans and that's a canadian tuxedo, which is very popular right now, denim on denim, believe it or not. you are very popular. >> i was worried our canadian friends would be writing in. >> you would be on trend. but yes, so far, you know,

there's starting to be little bits of trends in the right direction for gap, but banana republic is definitely still a point that needs to be fixed. men's stronger than women's, but business weaker there. >> less bad is great today. >> up 14%. look t that. even ross stores, which reported after the bell, not a great quarter and those shares were higher as well. so, really interesting. also want to get some more detail from richard dixon. i'm going to speak to him later tonight and we'll have the interview tomorrow just about sort of the intricacies of the apparel selling and discretionary. is it weak or not? it seems like it depends on who you are. maybe it's not a consumer thing and maybe it's really down to what you're selling. >> court, thanks. courtney garcia, what do you say? >> all the courtneys are here. there's a lot of positives to be said about this. they do seem to be closing a lot of stores, and they're -- i think athleta is actually could go either way because i think some of this you're going to see, like with nike, they're talking about a shift away from athleisure and towards traditional but they're gaining share, i think that's a positive

sign here, especially with a lot of competition like lululemon here. you're nodding your head. >> i love the athleisure trend you're talking about. as our chief denim correspondent here, i find levi really interesting. it's down 40% from the 52-week high. trades on a reasonable multiple. downgrade in their guidance if you go back about six months. i'm seeing it more and more, people. all my kids are wearing levi's again. >> i love the margin improvement here. the gross margin was good. i think they got some good momentum. i'm sad it's up so much. i have too small a position. i should have none or more. there's a lot more "fast money" to come. here's what's coming up next we're hitting the tarmac technicals, the chart master has his pick in the space. why he's going long one name and leaving the other one at the gate. plus, bitcoin's boom is raging on. what $100,000 means for the crypto space and how proxies like micro strategy are coming along for the ride. you're watching "fast money"

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♪(voya)♪ there are some things that work better together. like your workplace benefits and retirement savings. voya helps you choose the right amounts without over or under investing. so you can feel confident in your financial choices voya, well planned, well invested, well protected. welcome back to "fast money." shares of united airlines outperforming delta this year, but could it be a short flight

for the name? carter braxton worth out with a pairs trade on these two high flyers. carter? >> yeah, obviously, it is a high correlation if you look at any rolling five-year period, these two airlines, they do the same thing, and of course, the beta's about 85% correlation, but the comparative chart here tells the tale. two lines, two colors. one has doubled the other over the past 12 months, united, of course, being the one that's really so far ahead. look at a three-year comparative chart, and you start to see here how highly correlated they are, and this recent period, really since the august low, when united's up 150% versus delta, up 70%. so, that's one of two ways to look at it. another and really more accurate way is to look at what is known as a ratio chart, depicting relatively performance and that's what this is going back over ten years. it's simply united divided by delta, which gives us simply this. when the line is going up,

united's outperforming. when it's going down, it's underperforming. it's not about the scale. next iteration, three in a row. if you look at where it is in relation to the 150-day moving average, united is so far above just as it's been in the past or below that mean reversion becomes highly likely. final chart. we tried to annotate the peaks and troughs of this relative strength line, one line, the relationship between the two, and at this point, one is right, by my work, to be short united as a pair and long delta. >> all right, carter, and while we have you, we've got to point out your trade on micro strategy. you said, sell it all. it hit a record high and closed basically on its lows on very heavy volume. who is next for this one? >> yeah, that's what's known as a q reversal day, and as you point out, it often reflects exhaustion, meaning, something

that's in a persistent uptrend that then on the day in question has yet shocking new highs. gapped up at the open, in fact, and then starts to slip and then falters, closes almost on the low and volume expands dramatically to a record. it marks a reversal of a long standing down trend or in this case uptrend. >> all right. carter, thank you. we're going to trade micro strategy just ahead. hold those thoughts. let's get to airlines. >> so, i've always said that airline stocks are your trading stocks and there's been a reason why investors haven't trusted airlines for years and we love the airline acronym. revenue per available seat mile. in delta's case, the reason this is now an investment and not just a trade is that the rasm, which was about 15 cents is now up to 18. in other words, these companies are making more money, airlines, but delta, specifically, and they laid out that out in an investor day today that put a three to five-year target on it.

i think this stock continues to go higher because the company is rerating on a multiple that the market was unwilling to give it before, and i think, you know, i think we're there. >> and i think they've always been really well positioned. they have a clean balance sheet. compared to their peers, and when you look at the pre-covid levels, i would take something that's been underperforming ual when they're so highly correlated. i would absolutely take that trade. >> jets is probably the way i would do it. i would short it. >> new york jets? >> no, the etf. it's 15% of that. delta's about 12% of it. i think a sign of the top is delta just announced what? shake shack on the planes. if that's not a sign of the top after the run -- >> why is it a sign of the top? >> they're feeling it a little too much here, people. that's the sort of behavior you would see when things are getting too frothy. i think jets is up 45%, and i think that's a well distributed etf. i would sell that. >> coming up, crypto crushing it, bitcoin nearing the $100,000 level and proxy micro strategy hitting records of its own.

how options traders are handling the boom. more "fast money" in two.

welcome back to "fast money." stocks closing in the green today, the dow adding 461 points, the s&p up .5%, its fourth positive session in a row. the nasdaq squeezing out a small gain. shares of disney ightly higher today. the ceo search continues. planning to replace bob iger in 2026. comcast also higher today. the company yesterday announced plans to spin off its cable tv channels, including cnbc, msnbc, the golf channel and others. and some changes to the s&p 500 to tell you about. texas pacific land will be moved to the benchmark s&p 500, replacing marathon oil. the changes take effect tuesday november 26th. meantime, bitcoin hitting another all-time high, getting tantalizingly close to that $100,000 milestone. one major beneficiary of the cryptocurrency's rise has been micro strategy, that stock hitting new highs today before that huge reversal. short seller citron research

calling a top in the stock. it's still up more than 500% this year and with more than 331,000 bitcoin on its balance sheet, will fundamentals like earnings even matter? it hasn't. let's bring in equity research analyst joseph. great to have you with us. >> thanks, melissa. >> so, the stock has been up more than bitcoin itself. so, how do you make heads or tails of this stock and the move? >> well, i think, melissa, the best way to look at micro strategy is you've got an operating company balance sheet that can take advantage of equity and debt to be able to opportunistically buy bitcoin. and the company embarked on their bitcoin acquisition strategy in, i think, august of 2020, and since that -- since then, microstrategy is the best-performing stock in the fortune 500. you called out that it's outperformed bitcoin.

it's outperformed bitcoin by double or more in that period of time. and so, you know, you look at investment companies. they can't leverage an operating company balance sheet to exploit the opportunities that microstrategy has. that's the high level. >> how do you think about the premium at which microstrategy trades versus bitcoin and what that should be? today was a key reversal in that it hit a record high at the open, closed at the lows on very heavy volume. this was a signal, technically, that maybe things are going to slow down. how do you think about that premium? >> sure. that premium is clearly a point of discussion for investors. the premium has expanded. the premium, which is basically the value, you know, the value of the stock relative to how much bitcoin they have on their balance sheet, that is what the premium is. it's over 200% right now. so, you can look at that as a

risk, but you can also look at it as an opportunity for the company, because, again, they've got an operating company balance sheet that can exploit that premium to continue to buy bitcoin. and you know, just this month, the company has acquired another $4 billion of bitcoin using equity, and earlier this week, also priced a very successful convertible notes offering to raise another $2.5 billion, which we expect the company will put to work or perhaps already is putting to work in acquiring more bitcoin, exploiting that premium to be able to expand bitcoin per share. >> joe, it's karen. thanks for being on. if you were to back out a valuation for the operating business, i have no idea what that is, what is that, and so, then, you back into an embedded price for bitcoin? where are -- how big is that premium when you do that exercise?

>> sure. so, when -- when microstrategy embarked upon this bitcoin acquisition strategy of theirs, you know, it was mostly a software company. it was very successful business intelligence software company. the bitcoin strategy has taken on the majority of the enterprise value and today, the software business is less than 10% of overall enterprise value here. so, when you back that out, and you do, you know, perhaps a sum of the parts analysis, looking at that as well as equity and debt on the balance sheet, you end up -- you end up with a 200% premium, which is basically the value of the stock versus how much bitcoin they have on their balance sheet. >> so, it's basically the same. it's the same. i mean, the operating business is so de minimus that the premium is the same, even if you back it out. >> yes, but the key is they have an operating company balance sheet. >> right. >> to be able to exploit capital

markets to accretively buy bitcoin. if you were to look at this, say, in comparison to a bitcoin etf, they don't have an operating company balance sheet. >> right. what's the floor in your view for the stock? what do you tell investors? >> you know, the risk is the price of bco. , leverage intelligently. they don't take their debt anywhere above 30% relative to how much bitcoin they own. i mean, the convert they priced earlier this week had a zero coupon on it. it was a very successful deal. so, strategy is to continue to exploit the premium to buy more bitcoin accretively. i think a good analogy for people is, you know, think of corporate m&a. when a business acquires another business, the first thing investors ask is, well, how accretive is that deal to

earnings per share after extra share issuance, after m&a-related interest expense, and what's the time period to get to that accretion goal? so, here, microstrategy's not buying another company, but they're buying bitcoin accretively, and so, at that premium level, after they buy more bitcoin, every shareholder that owns microstrategy is going to own a little bit more bitcoin per share, and you don't have to wait three years for the merger-related synergies to kick in to get to the accretion. >> all right. joe, thank you. nice to talk to you. >> you too. all right, so, he laid out the case. it's got the operating company balance sheet. it's superior to just buying a bitcoin etf. is it, in your view? this is an embedded, would you rather? >> depends if you want leverage. you can talk about 30% leverage but 30% leverage on anything could be a cancer if something falls 80%.

and i'm not saying it will, but this is a call on bitcoin. so, this is an option. this is an options market. how many investors do i talk to that say, hey, when are they going to have options on gbtc? when are they going to sell calls? that's what this is. the only real questions i had for joe were, is there a regulatory dynamic, and it's not like it's a big surprise to anybody, but at one point, it kind of was. in other words, when they transformed this company into a company that had a software business and now they make no mistake about it, by the way, yes, it's kind of genius, and it's all this time, it's interesting, this is on a day when gary gensler has announced his resignation, bitcoin rallies in sympathy, even though we expected this, but the s.e.c. has been oppositional to bitcoin. and that's made options markets and a whole lot of other ways to get this kind of leverage very difficult, which is what has made this almost ingenious. it won't be forever when bitcoin is unlocked. >> all right. meantime, big bets on if and when the bitcoin will cross $100,000. they're coming in thick and fast among options traders. mike has the latest on the

action. >> yeah, so, ibit, i mean, the thing has only had options listed on it for a very short time but they're going gangbusters already, calls out pacing puts by about four to one today. the most active contracts were if january 55 calls. we saw 24,000 or so of those. buyers of those are betting at about 10% upside in bitcoin between now and january expiration, which is about eight weeks away, and one quick point i would like to add with respect to what tim was just saying. when they issue converts, that gives access to an entirely new class of investors. fixed income investors who can't buy bitcoin, can't buy ibit, can't buy options or can't buy the futures can get exposure to the asset class through a fixed income instrument in the form of converts, and i think that's kind of what michael taylor's on to there. >> mike, thank you. mike khouw. coming up, financial flexing, big banks well in the green as the group continues to outperform the broader market

this year, but can the good times last? and shares of zillow getting a bot.os why analysts are knocking on the door of that trade.

welcome back to "fast money." banks getting a boost today with

the financials one of the best-performing sectors in the s&p. the money centers all well in the green, goldman-sachs leading the charge, up more than 2%. it was the biggest point contributor to the dow, and the kre regional bank etf keeping up with the gains, up almost 2% as well. what is giving the banks a boost, karen? >> i don't really know. i think everything was up today, so they should participate in everything being up. i mean, they've always been less expensive than the market on a pe basis. that gap is closing a little bit, but to me, they've traded higher than this in just picking jpmorgan, just because i love jamie dimon, but i think it's on the expensive side for them, but it's traded higher than this, and i think all the reasons that the market's going up, less regulation, the economy's set free and all of that, helps banks a lot, m&a, all of that, so i'm hanging on. i know somebody downgraded this week. i'm not doing that. >> yeah, and i think some of this is that like broadening out of the markets. when you're seeing the markets continue to do well, even when

your mega cap seven are taking a bag seat, it's a really good thing that the markets can continue to run and people are starting to look at the cheaper valuations and those things that are better positioned arguably in a new administration. i think the only fear is that some of that pull forward happening? has a lot of the optimism with the new administration already been priced in? that would be my only hesitation with it but i do still really like the banks and i think they're really well positioned. >> i think back to late '16, into early '17, how many times on the desk did we say, is the trump trade priced in? it kept going, kept going into deregulation, tax cuts, whatever. i think it's a different market right now, because i think you would argue, even jpmorgan is trading at a multiple that we haven't seen in a long time. you know, relative to tangible book and the like, so we're getting to a point where a lot of stuff is getting stretched from a valuation standpoint. >> i don't think so. i think there's five things that are working for banks, and each one of them, we've been wanting over the last couple years, steeper yield curve, the ability to give kwamt back, and now we

have m&a coming back so i could make an argument they paid nice divs, and i think there's a reason to sit in these names long-term. some fast movers on the radar today, how our traders are handling the ups and downs. that's next. for "fast money" in two.

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welcome back to "fast money." a couple stock moves catching our eye today. let's start with zillow surging almost 6% to three-year highs, the real estate stock getting a boost from strong housing data, existing home sales rising nearly 3% in october from a year ago. the first positive year over year read in over three years. >> we were talking about, why would it be up this much? that is the direction that they certainly need. but i do think, though, i mean, i like zillow a lot. i loved their last quarter. i ove how this flywheel is really working and if existing home sales actually ended up being more than just one month's worth, that would be fantastic for them, but i was surprised at the magnitude of the move here. >> especially because existing home sales is for october. they still captured the dip in mortgage rates, and now rates are higher, and so you got to wonder what that data set is going to be, you know, next month. >> we've been talking about zillow for a while. karen's been talking about it. i nibbled on some a few weeks

ago in a long-term portfolio and i think it's time to add. and again, it's never been about, at least for the last couple years, about the valuation here. it's really -- and the disaster scenario is obviously when they got very asset-heavy and that was really the day the music died for this stock. i think it's starting to pick up again. >> shares of pdd holdings dropping 11% today, the parent of chinese company temu, the stock was the worst performer in the nasdaq 100 today. courtney, what do you make of that? >> i think just investing in china that has been frustrating because it has not come back the way people hoped it would and that stimulus is not coming to fruition. they were really citing competition issues. you're seeing shein, amazon is coming with a lower cost competitor. those are real problems for them when you have these other people coming out. i think it's something to continue to watch. overall, i still like emerging markets. we have our chinese exposure but look at these individual companies, you're going to see big swings like this. >> if they pull back on advertising --

>> we talked about that over the last year, and again, some of the trends in temu, because of the competition that courtney just mentioned. the other thing is tariffs. the crap that they're selling at the price point they're selling, it's going to make it pretty unaffordable. >> 60 cents more. >> well, but you know, we've seen -- >> the $1.60. >> look how selective the consumer is. we're going to see a promotional holiday season and i think when we come out of it, i think we're going to see more pressure on the lower end consumer. >> i love dollar tree, just for the record. >> i love a dollar store. >> it's a party. they love me. shares of cure leaf, trulieve. matt gaetz had been seen as friendly to the cannabis industry. is the pot trade going up in smoke? >> not enough time to talk about this. based on the a.g., whether it's trump's original a.g. or not, you're not playing cannabis based upon the a.g. you're not going to get

legislation. hope for rescheduling. the companies that are doing well have operated all the way through this. that's how you have to invest in cannabis, buy those companies. >> up next, final trades. when we started feeding bogie the farmer's dog, he lost so much weight. pre-portioned packs makes it really easy to keep him lean and healthy. in the morning, he flies up the stairs and hops up on my bed. in the past, he would not have been able to do any of those things.

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everyone has goals and dreams. and everyone deserves a way to get there. wherever you're going, getting there starts here. state street. invest in your future with spy, the world's most traded etf. (♪♪) time for the final trade. tim?>> $50 a share: bank of america is available, a level i think it will probably struggle it for a second and then going with make up america for that.. >> i think it is a little bit overdone. in the short term, i will be buying google calls here. >> have carter's trade, the

sale of ual. >> courtney? >> i will take the other half of his trade. i will go with delta. i think it is optimistic to look at. >> thank you for watching "fast money." "mad money with jim cramer " starts right now. my mission is simple, to make you money. i am here to level the playing field for all investors. there is always an open market somewhere and i promise to help you find it. "mad money" starts now. hey, i am cramer, welcome to matt maiocco welcome to cramer. my friends, i am just trying to make you a little money. my job, not just entertaining, so to expire, call me at 1 800- cnbc or tweet me at cramer.