Nvidia’s Big Quarter… And Target’s Holiday Sales Warning 11/20/24
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Life from the night that Marks are in the heart of new york city y's time square. This is best money. Here's what's on tap tonight. In video, in focus shares the semi giant, just about one first side lower right now after the latest report bouts around after hours, the conference called just getting under way.

We are dialed in to bring you all the details and all the trades and way off target turns the discount retailer crushed after posting of the biggest earning miss in two years while the company is strugling against walmart in the rest of its competitors. And what is the strategy to turn things around plus sell IT? All that is a chart masters call for this high line cyp to play, to tell the technicals on micro strategy coming up.

I'm military, come to a large and studio bias the attack on the destiny carren find dana guy adom in vector atterson, former chief strategist at bridge water. We start off with nvidia's B Q 3 earnings support the AI darlings player rushing wallstreet desmas revenue nearly doubling from a year ago as its A I chip business accelerate shares， which had tripled this year heading into the report. Well off or after hours lows.

So we sees Christina part nevertheless is back here with us on set. And Scott, the numbers. Christina.

you just talked about IT ninety four percent increase in revenues, one hundred and twelve percent increase in data centers just year over year, gross margin, seventy five percent. They'd across all fronts, putting their categories from gaming, mention, data centres. And yet the stock initially felt two percent bent down one percent.

The problem is there has been so much of an emphasis on guidance. The guidance came in at thirty seven point five billion, slightly higher than what the consensus was but lower than the whisper number. You know the number is provided to, uh, clients.

And that was the same thing that happened last year. And we saw the stocks all of six percent the day after. The focus though is really on blackwell shipments as the latest situation of the GPU and the CFO collect crash.

SHE had some comments on the website and he said, quote, both hopper and black hole systems have certain supply constrains and the demand for black well is expected to exceed supply for several quarters in fiscal twenty twenty six. So what is that doing that is letting us know that maybe supply is going to be an issue for several quarters. We are expecting the rap to happen in this upcoming April a quarter, and maybe it's going to be pushed out even longer.

father. So that part of the reason why you saw more of the sock drop a really that's going to be the focused on the call is blackwell chips the latest situation? Are they going to be delays, overheating, which a lot of people have arta to bunk at this point. But IT, is that going to be what's going to happen?

The company going for the constraints on hopper was, I expected because there are some thought in the analyst community that if black hole was constrained, that harper would build a sort of pick up that demand and sort of offset that the revenue.

That's a very good point. The fact that she's adding hopper into that sentencing, hopper and black will have supply constrains were previously on last earnings. They said that there were no issue. So perhaps that's a good sign that the demand has shifted straight to hopper right now. But so much so, they're unable to keep up with IT so excelling point that they put them in the same sentence.

So do we know supply constraints are due to the supply not being there or the demand overwhelm the supply?

So the excEllent point, because we know in the last in the summer IT, was they had to revamp the production and change the yield at T S M C. And so that created a little bit of a delay. But according to the company, when I caught up with them and chated IT, IT was it's not a delay. It's just more process because the latest chip is so complex that you have to change things around and the yellow is not going to be the same right away. Uh, we don't know yet now this time on this quarter, if that's the same case of IT, if it's actually issues at t sure they're going to address IT, i'm sure they're going to say no, that's not the case because .

they are quick to uh, react to this. Those reports of r she's been back the first time, back two. What I look at, the magnitude des of the beats are getting listened.

The numbers of huge, but in terms of percent small and small. And this was a fifty hour stock this time last year, mean revenues in PS growth eighty percent year over year, but the stock is tripped. So and his thoughts on that.

excEllent well that just means everybody e's getting a lot smarter and realizing a year ago I think I was a twenty percent magnet difference and now it's about five or six percent um and had off again I said this earlier to retail traders because forty eight percent of the daily flow is retail traders for the last five years, which means that they understand the fundamentals of this company and they have stuck with IT.

Um I think we need to eventually come down. You can't keep climbing at that same magnitude, which is what we're getting with collect with these comments, right? She's letting us know, setting the tone that know we can't keep going at that magnet de.

We are doing well. Demand is insane, as Johnson wong has said in this report to he said, the age of A I is full steams. So there's all these wonderful flowery words to describe demand for these chips. But I think at one point, there's not necessary going to be a platow, but we can't keep going at that increment to your point.

At the same time, though, dan, if I told you what the quarter was going to be in what the guys would be and I said, guess what the stocks reaction would be.

would you guess down half a percent? I would have done five person. I mean, I I think to to 一楼 because her point is that the estimates or expectations are high that you know that whispers number that is among the the byline， right? So they put IT out there.

They get a sense for what consensus is and they think this is the number that they have to kind of get above. Again, IT just shows you that investors want to be exposed here. There's very few ways in which to do that.

Will talk a little bit about their major customers in a second. But do you take anything away? You just said that demand obviously is there. They keep talking about capacity constrain. But at some point, isn't there going to be a quarter where their biggest customers actually guide cap ags down a little bit and that like that would be my fear among but .

then that's like I I guess, a year and a half or more out given what we saw from all of the hyper scales right now, the massive increases in all their spending. That spending is gonna reflected for several quarters for in video positive. Uh, but no doubt this can't keep continuing.

And then you can argue like look at AWS creating their own chips. They're onna um compete with them directly. And that's going to be in this issue with video.

Video say, well, we have could do we have software, we have networking, right networking's a big portion gaming is ten percent of revenues. So it's not only just about these particular gp use which go into rax, it's a lot more complicated. They're providing the whole um .

you know in computer I supposed to end yeah good to see you. Welcome back. Appreciate this on the conference call. Yeah are seen a parts. Nevertheless, we are talking in the Green room before the show about how important this one stock is to, uh, a conStellation of trades that make the stock market go higher or lower.

Hard to think back over literally centuries and find a single company that had so much sway over the global economy or the global financial markets. I don't think there is one that hasn't had any backing persue from a government, even like where is eight in one thousand nine hundred ninety? Not as big as this, relatively speaking.

So IT IT is incredibly important, not just for the people trading the tick by tick right after the earnings and the call, but also when you take that back a step and think about the macro o picture. And and honestly, this is the heart of U. S.

exceptionalism. When we talk about why the U. S. L performs for decades or more, this is that it's tech dominance.

It's the weight of tech in our equity market is the fact that we have companies the mag seven over the next twelve months will invest half a trillion dollars in cpb CS in arty. So put that in context, chips and science act was fifty two billion. So this is many multiples of that.

So it's just the scale of our dominance. And the video is the is the cornerstone of IT. So whether they disappointed or not, to me, it's the fact that you have this structural advantage.

right? Let me make one point about that. And I think that's really interesting that the estimate for a half a trillion dollars in capex s and R N D over the next, what do you say next? okay.

So if IT comes in IT for fifty, just think about that. What happens to these stocks like you're going to go down a lot. Don't mean that wouldn't incrementally take because estimates are coming up.

And the one thing I would say if you go back to microsoft there, nineteen recent customer of the video, right, and we talk about cbc s how much I went up IT didn't go up that much right after they reported. And so we're not seeing the sort of step functions that we saw, let's say, three quarters ago in that thing. They also talked about being capacity.

One of the reasons why they didn't have higher revenues now their cloud business is growing thirty one percent a year over year, which is fantastic. C they're taking market share from AWS. I just kind of feel like we're going to go from capacity constraint to capacity over, you know built sort of thing, and they're not so just in future.

And so when you're coming in and you're beating these numbers just by hair and the stock are still sticking around, IT shows you that investors still want to exposure. But tinor later, I think it's going to be like one of those things. We're going to start seeing a couple quarters of declines, but not just the pigs and travel, but also the .

hyper scales. I think that's a ways off though. And I think the the hard part of owning and videos, if everybody knows, all right, six quarters from now, they're going to have slower growth.

When do you exit? No, be one exit before all the other people decide to exit. So I don't know that there's the rub.

More and videos report this spring and swaha as Chris roland.

Chris rate to see you what you .

what do you make the comments about being supply constraint not just in black wheel but also in hopper?

Yeah I think that the vegas line here was probably thirty eight, thirty nine. They missed slightly. But that supply constrain comment, that probably means they probably could have done forty or or or or maybe even more.

We don't know what the supply constraint is of late, whether its memory or still kaos. My guesser is memory as they moved from each one hundred to each two hundred. But I think clearly in video could have shipped more here had they .

had all the components in terms of how was so a desecrations ly constrained comment. Part of IT is understanding what was going on with black well and whether or not there was a shift to hopper in the light of us ly constraint situation for black for the black world trip. Have we got to anything any commentary about the overheating issue? Is that part of IT?

I don't think that, that's part of IT at this point. They talked about a successful new mask set helping yields for that product. So i'm not sure it's that chip.

I think I could be an additional component like memory ah IT also could be these rags that are incredibly complex. We don't know about chancer availability. We don't know about all the other thousands of components that are going into these racks. If anyone is constrained, uh, IT could constrain shipments overall because I want to .

tweak a little math. They're just to make IT easy. So they going to do about one hundred and ninety billion dollars of revenue next year that sitting on top of the companies basically trading you know three point six trillion dollar a market cap, their earnings are great, but they seemingly they're out earning their revenue.

My point is like when does that catch up? Because either they are going to grow into that Price to sales, which i'm hard pressed to believe they can, or something in's got to give probably on a margin front of the earnings front. Thoughts on that?

Yeah, I think first of all will be will shake out north of two hundred of for next year. Secondly, the you have to look across margin for this company in the midst. Truly incredible. Uh, when you look at what's A E V to rev, uh, IT really doesn't get more profitable than in video.

Taking a look at some of the the line item beats some obviously allies, ed, as on data center, Chris, but automotive was one of the biggest speeds. And I wondering just in terms of you trying to extrapolate that trade, was that tesla basically .

that was definite? Um I I think auto is really more about the vehicle itself as opposed to uh in tesla's data center and tesla does their own A I uh I think this is somebody else. Maybe it's an early ramp with Mercedes, for example. But collect did talk about self driving as the huge uh motivator there as opposed to infotainment en or consoles. So they are moving to the AI portion of their auto story.

Chris um thanks me on another question about .

um the .

uh sorry, just lost my train of thought for a second. The competition who do you think is how far actually in front do you think away are we from real competition? How long are you going to have .

this market to themselves? Well, amazon sounds like they're ramping supply. AMD had a hot start.

Uh, there still can have growth year over year, but that seems at least that really high. And twelve billion kind of number for next year seems to have faded. So it's a mixed picture out there. Um I would say that this spy is growing very quickly for all and that I think NVIDIA can still grow even with guys like amazon, guys like microsoft doing more themselves, they can still grow meaningfully even into this diversification.

Chris, great to get your take on the quarter.

Appreciate your time, guys.

Chris rolland and in video shares now down, down about eight tens of one percent. Not too bad of a reaction considering the ramp going into the quarter. I mean, as dana said, you would have expected down under no, a few percentage.

Well, I think the then can speak to this, but I think the market visit, the expected move was expecting a three hundred billion or move one way now. Now for obviously, that's not taking place now. But just for some perspective, I think the only thirty five companies in the world there are that big in the first place.

Bank of america, for examples. I have three hundred and ten billion our company. So the fact that the market was expecting a move that magnet de do are not getting IT. You know, a lot of people suck and wind on some options. So we'll see how that plays out as well.

Yeah, what do you think?

I got a wait for the call. I feel like there's so much new answer that we will start to get that I would doubt we end up here flat ish at the end of the call.

Now your question, tesla is really interesting one. You guess, remember, like two or three quarters ago, tesla diverted, let's say, a half a billion worth of the video of GPU over the X A I, which kind makes IT a lot of sense. If you think about what they've been building, you X I was just valued at fifty billion dollars.

I think that's today. But think about now why tesla has raised so much over the last couple weeks or so. IT is for the idea that you're going to have regulation pulled back for full self driving and then autonomy. They're rely dramatically on building out data centers, you to train those cars. So that's probably something that could definitely be a bit of a tail in for an vidia, especially as you see maybe some of these hyper skills, I think, pull back as we get into next year .

will think about the full sell driving federal framework, which could be a boost, and then the cypher trade. Remember, we used to be a crypto that could be a boost and then you have the AI stuff going on to. So you know a lot of different areas and video can really capitalize on.

It's not like there are there we are many examples of productivity gains, right? We keep talking about is is the you know the promise of IT there. Um and I think we're early in, in seeing those productivity gains. So of those accelerate more, I think that would help as well.

right? Meantime, the dollar strengthening over the last several weeks, especially against the japanese rebeca, this is something that you flagged to us. Um so you're watching the potential parity against the euro. We've been hearing much more and more about that too.

Yeah, so the euro is down about four percent against the dollar since the election. Yeah just around the election, which is a pretty big move in such a short period of time. And when I think about where he goes from here, the market has removed some fed cuts for the us.

The fed is looking for more rate cuts from the european central banks that rate differently. You could argue that Price in, but if we get some of the policies from president elect trump, whether we're talking about the tax cuts, deporting immigrants tabs, all of those things are inflationary. So that could remove even more fed cuts from expectations.

So right now, we have three between now the and next year, we could go to one or zero depending on whether or not those policies lead to greater inflation and inflation expectation. So that's a biggie. Europe is just hard, hard time get out of first year.

Germany's gonna have two years in a row of negative growth, so there's not a lot to pull capital into europe right now. And then of course, there are lot closer sadness to the europe, the ukraine, russia situation. I say the one positive catalyst on my radar screen for the euro will be in q one next year.

And that is we're going to have an election in germany and the potential new chancellor, merz is talking about a little less fiscal austerity actually spending money in germany, which would be a big deal um and that could be a catalyst given valuations. Actually they don't call IT that. No, no, no they caught less austerity, be more german um but but if we don't get that, I don't see a lot of bright lights anytime soon. So I do think parity is not a crazy thing to happen in the next few months.

okay. How I hope it's not an outlier. But if the ukraine situation is resolved, I would think that would be a positive for you.

I would hope so. I would hope so. I think a lot is gone to come around. What does that peace or resolution look like? Our sanctions lifted.

Is germany allowed to start buying cheap russian gas on? Or does IT do a deal to avoid terran? It's buy more us gas. Um I think there's a lot of questions around what that landscape looks like that tells me where we're going from here for europe. Pe, there's gna be a lot of money that needs to be invested in ukrainian reconstruction too, which is good for the rope growth, but it's a big expense and they don't have .

the money channels. God, father, child, dork, I noticed something interesting. Yes, Michael, down to cuba, yeah has been weakening at a pretty significant rate while the ten year like japanese by yells i'm going high.

There's something I miss there. And I think markets are focused on IT here. Clearly, I think they're focused on IT over their thoughts on that.

Oh, absolutely. I mean, in japan, the large corporations really want currency stabilities so they can plan their expenses, their investments. So and we get the generations that we've had this year in currency markets, IT really slows down longer term spending for japanese companies and that does eventually feed through into their earnings.

Um so they want to avoid that. So I wouldn't be surprised if we see more intervention, verbal or actual intervention, from japan again in the coming months just given the speed of this move. And obviously, japan is very exposed to the united states. And if we do have a trade war, they're going to get caught in the crossfire coming up.

Microstrip gy shares hitting record highs today. But the time master isn't loving the technicals why he is eating the self. But on this one ahead, but first major moves in media seem to see parent company comcast, but to spin off its cable businesses, the details on whether could Spark getting more M A action don't go anywhere .

fast when he's back into .

small botch tomorrow breaking down in video earnings, market reaction analysis and to demand for its next G A. I chill stay ahead of the market sort tomorrow. Six M R C.

C.

welcome back to fast money. Calm cash shares up almost two percent today after the media giant announce plans to spend off its cable networks, which include cnbc. Julie boron has got all of the details, and of course, this is a big story, you know, out there. And also internally.

that's very less I but once or telling me that comcast spin off its cable networks isn't began, but rather the beginning as the new company called spin cove for now looks for new deals, new reviews, streams. This spin off include cnbc seen, which is where what right now on amazon bc, along with channels with sports rights USA and the gulf channel and entertainment assets USA e sipi and oxygen.

Now sources tell me that spin co will want to buy other cable networks potentially looking at Warner brothers discoveries, T B S, T N, T H E T V or the food network, other potential targets, AMC networks and stars, which is about to complete its own spin from Lance gate. Now consolidating cable networks would help spin o have more e to Better negotiate higher retransmission fees, but this new company could also license its networks beyond peacock to all the other streaming platforms like hou or max. And tourists tell me that this new company will look for a new revenue streams such as paid events.

Now meanwhile, comcast is expected to look for more opportunities to grow peacock, which will benefit from having N B, A rights starting next year. Now this deal is set to closed in about a year, and in the meantime, we will see what commercial arrangements that these two companies decide to strike. Millia.

Julia, you know, for a long time, we've always thought about peak up is part of the family. Our content appears on p oc. So under this new arrangement, where does p cock at its content? Because for so long it's drawn on its cable network s as a source of content. Could that actually prevent this new spin co from licensing its content to these other cable companies like a paramount, Warner brothers discovery?

Well, look, we have to remember that all of these media companies are french mies. They all compete with each other and also license content to each other. And these universal has A T, V studio that cells content to other networks.

But when IT comes to p cot, we have remember that comcast and be universal is retaining N B C. As well as bravo. Nbc has nbc sports, which includes the nfl and now N B A ride starting next year.

And then you also have all that reality and TV content from bravo. So traditional regular n bc, including nbc news, is going to remain part of this original company. The companies that spent on from that, including cnbc, may license back content to be on p cock, but they might also now have more flexibility to license elsewhere as well.

Do you get the sense that, that this was really put into motion in a very sort of more directed way after the election, seeing that there might be fewer regulatory barriers to combining these cable companies?

Well, look, there is no regulatory issues to the split. There is no regulation chAllenge there. And I think that's why they floated this well before the election.

I also think that in splitting off these cable networks, the new company, the spin co, is small enough that they can acquisitions that probably would have ve been really problematic in the prior administration. That IT is true, that the trump administration is expected to be a lot more flexible with ema and bigger deals. So I think this is something we've actually probably been working on or thinking about for quite a while.

But IT is pretty remarkable that they first floated the trial balloon less than three weeks ago and then just announced in today. And of course, in the interm is the election. So makes sense to think that might that might have accelerated things a bit.

playing the role of skeptic Julia does IT. I mean, are we just staving off the inevitable in terms of cable companies combining in order against some leverage of a retransmission fees? I mean, the way of the world is going away from cable. That is the ultimate problem.

It's true that I mean, in in fact, that's why they're spinning off these cable networks. So what's remaining in the studio, in the theme parks is not going to be weighed down by the chAllenges of the linear T, V ecosystem. That's what's happening.

Cutting is hurting the linear T V ecosystem. But the fact that brian robberts is going to remain a controlling sheller of this new code as he is a of conchas, the fact he's going to control A A third of all the shares indicates that he has some confidence in this. They also could have fun off these assets and immediately sold them to private equity.

That is one scenario that could have happened. But instead, they said we're gonna spend them off and were going to Operated as a separate, typically created company down the line because they decided that this is a losing game and they want to sell IT off. That's definitely an option. But IT sounds like for now, we'll try to figure out if there are more efficiencies, more opportunities to sweep in some of these other assets and perhaps get a good deal on them. Um this is going to be well capitalized company.

right? Julia? Thank you, Julia. boston. The optimistic take on this is that IT shows that comcast, the parent company, the main company, shows that he wants to focus on growth until therefore, IT is a good thing for comcast shareholder specifically cast stock, though, did not respond so robust.

And so we could go there. We could go David favorite, at a greater view of john alone. I don't know if you saw her not, but he was comparing and correct. Jm alone was comparing netflix, which i'm going around again.

They are going to do about forty billion dollars of revenue next year with water brothers discovery, who's going to do about forty billion dollars of differences that first to twenty four dollars of earnings against that. And one of brothers will lose money. So you know, people are coming to the realization.

You know, it's netflix world and we have to do something. You know that it's the old saying goes best time the planet two was twenty years ago. The next best time is today and today is that day.

But I think so much of IT depends on the structure, right? How much dad is going on with this, if not a lot that you can see. This is a cash flow assume.

And then we talked about att going to zero. Well, that didn't happen, right? So i'm not as maybe pessimistic as you saw, although I think mom and dad are getting divorced, they just wanted to spit the different way.

Be great. We'll have two Christmas one year one there. And IT doesn't work .

out that we tell .

us this was that kind of hinted a few months ago like.

you know, at least nice get to the holidays with mom.

Tom Rogers, by the way, in the workplace, said kids will be OK when he heard the news. A there a lot of money to come.

Small box tomorrow, breaking down invidia earnings, market reaction analysis and to demand for its next tomorrow. Six A M R C, M A C.

Welcome back to fast money microstrip gy, soaring ten percent for a third straight day of double digit games, trading now at record highs. The south benefiting from the post election crypt to surge, having more than doubled since then. But the chart masters thinks the top could be in Carter. Worth is out with a note today saying directly pointed dly, sell, IT all Carter, what are you seeing?

Yeah, I mean, look, this is a very unusual circumstances. Before we look at the charts, we know that IT has a relationship with big coin, but there in is the issue. Here's a five year comparative chart um just to think since the August low, that was the low of the S M P, the low for apple and as like since the August low, this stock is up five x.

Bitcoin is simply doubled. It's diverging to the point where regardless of what IT is, it's um uh no longer tethered to what is the story apparently bit point. But let's look at um two charts of microstrip.

Gy, here is a five year chart, its log scale because you ouldn't be able to see IT if IT was an athletic, how much it's moved. Second and final chart is with, uh, one hundred and fifty moving average, the smooth mechanism that is basically as far above trend you are going to get. And so um listen, steep and incorrect can always get deeper. But parabolas parabolic things, typically in the same way, which is out of nowhere, you get a shocking drop in gap. And I would say that kind of thing that happens here and now is .

there a support level for microstrip? Gy, well, not particularly .

when when you're literally I mean, here's the expression is going up into the left and think about every day you got ta put the bar out to the right. When you have a bar chart, it's literally falling on itself. So as big um you know I don't know what's driving IT proves you all talked about that I have the answer but you know what one client this is you a big social clients he heard this literally. The more expensive the stock gets a relative a bitcoin, the more money they can raise and then buy more bit coin like a fly eel effect.

That's before we let you go, Carter, in video, what do you see here?

Yeah, well, it's not of that. That turns out. And obviously, in a way that's important because it's not so much of IT had done yet another good quarter.

If I had had missed and done bad things post trade, I would point out, and this is important, at least by my work, here is a one year chart of in video. You'll see two moving averages. There's the smoothing magism one hundred and fifty day in the stock is touch to the penny three times hasn't touched the two hundred day once.

Carter, thank you. Carter, racks worth worth charting back to microstrip. Gy briefly um IT up the size of its convert, of course, the money to be used to buy bitcoin.

Carter makes, listen, Michael cellar, say what you want. I mean, brilliant. But with that said, I mean, this was a hundred dollar stock in september last I looked.

Its november IT is gone from one hundred to five hundred. You can do that math. Bitcoin has not had that magnitude of a move. My point is if bitcoin would have turn even in the slightest, are going to take a hit non and diamond on the stock, just an endiama ment on the .

move coming up shares a target pluming as the retailer rings the alarm bells ahead of the holidays. What is telling us about consumers spending habits and whether the entire retail sector OK how how hold no, this season just did that. One is back into welcome back to fast money socks closing mix.

Today, the dog climbing one hundred thirty nine point s csb, virtually unchanged in the nazi, lower by bad at tenth of a percent. So more after hours movers here. Palo alto networks lower despite beating expectations. The company also announcing a two for one, stocks split and snowfall jumping after C, D, E, P, S and revenue expectations.

Product revenue is also a thirty percent year over year shares A J P Morgan lower in the regular session, open hymir downgrading the bank to a market perform from an outperforming rating, saying the sock is now fairly valued, and shares a wamp sonoma surging to record highs in the back of its results this morning, the hum goods retailer beating earnings and revenue expectations, raising its full year revenue and Operating guides. That sock is that more than seventy three percent this year is like an A I soc virtually um here is a secret for the quarter and for Williams snowing in general terms of its run um it's selling more full Price items, go figure. IT works and IT .

will talk about target, i'm sure. And I know you talk about warmer, but I just supposed everything you heard on the other side equation and that makes sense. Tim is talked about w sm for quite some time. I listen IT might be beginning itself at that expensive and IT probably had an eight times Normal valida day. Would suggest a bit of upside capitulation, but mean they're just Operating Better than everybody else in this space.

But we also talking about two different economies in america, which is very, very clear. Look at holes making new a year highs right now. Obviously, dollar general is making like ten year lows.

H, by the way, calls making you know something for some of these other department store. So it's just kind of weird. I mean, like, I get IT man, go by all you're .

what you come dutch ovens.

that's the thing you body means the four when .

is called down is nothing Better .

ah the one I think .

the way some of these stocks are moving up twenty seven percent, you a target down twenty one percent, a lot of weird action. I mean, I don't think that sort of single stock volatility speaks of very healthy.

Well, speaking of target in free fall, down twenty one percent for their third worst day on the retail giant, place is the biggest earnings missing two years, slashing three years guidance before the bell IT was just three months ago, but the company was raising its forecast target, the struggling to bring traffic despite steep discounts and early holiday sale, saying IT now expects fourth quarter same store sales to be flat.

This morning's numbers come just a day after its main rival, walmart beat expectations. Height guidance hit fresh all time highs. IT really underscores the differences between the two. IT got saddled LED with inventory. They wanted to buy a lot ahead of airport strike to be Better position to cost a lot of money to Carry that, right?

So in their gross margin, which was the problem here. What is that? The cost of a shipping. And so that's that's hard. When you lose that, you kind of a fairly sizable loss on gross margin.

The Operating expanses were fine in line, but relative to wall mart, I mean, the execution really was not nearly as good. Also, some of the categories that are really more important to target that didn't do as well. I'm intrigued.

So by the magnitude of this this move down now, it's a three day real kind of thing I wouldn't look at for another you know two days. But I mean, IT is getting very inexpensive even with a miss um this idea of the multiple that warm, warmer trades at versus target, to me it's sort of an interesting paris trade. I do have some walmart.

It's not cheap. They're executing great everything. I mean, that was a great report yesterday. It's just really expensive for itself and compared to everything else as well. But targets set about .

the consumers really interesting or back. And I want to get your take on that in terms of the consumer will come out but is very careful. And they decided circle week, circle a week was the biggest circle week on record, but there is a noticeable dip in sales prior to circle week and after circle week. So consumers are really sticking to their budgets in this environment.

Yeah I mean, in dance that we have a bifricated consumer. So if you own a home, if you own lots of stocks, you're feeling pretty good. You're buying your gravy base at William and oma.

If don't have lots of stocks and you don't have a home, then you're been very nervous right now. And I think that's probably going to get worse next year um because a lot of the policies that are going to get initiated, if the proposed becomes reality, tend to work against the law. Income consumer more yeah you can .

never have too many gravy bases. There are really you know aren't buy IT every year. It's good. No, it's a good.

It's good since not looking to make any friends and that's been IT. I mean, i'll just flat. I'd say IT their harm Operators and that's been going on, on for what I mean, pulp charge, this was a two hundred and sixty hours stock.

Three years has been cut in half looking at walmart sunder the same party time. And then you can say it's different consumers. Yeah, not that different.

I mean, look at their invitation ies, if they say when they should. Zg, it's just been a disaster. I think getcha bank, just lower their Price target, downgraded the stock one hundred and five dollars, and IT feels like it's going there. I mean, there are in this pair of time, we can and parents, right, to bring evaluation. That's been a story for the last year and a half two years, and IT hasn't worked coming up.

Commerce secretary general mondo giving C N V C her first interview since the election, what he had to say about the chips, act funding and the current administrations raised against the clock that is ahead. The first mcDonald look in a bounced back from the recent ecole outbreak with a new offering for the new year. The make value deal come in, in twenty twenty five and whether it's not to lower back customers to talk about that right after this.

Welcome back to fast money mcDonalds preparing a mic value offering for the new year, an attempt to appeal to customers grappling with high costs. This is the company looks to bounce back from its recent equal outbreak. k. Rogers got all the jc details. K.

hi millie. Yeah, I ve reported earlier today that mcDonald's is working on that new mic value approach for next year that involves keeping the five dollar value new offer at launched this summer on the menu for the first half of the year, along with introducing a by one ad one option for a dollar more.

Now that option includes a double cheeseburger, a mic chicken sandwich, six piace nugget and a small fry, or then breakfast options of a sausage muffin, sausage biscuit or sausage bread to and a hash Brown. That is, according to a person familiar with the matter, now Operators are still voting on these twenty twenty five value offering, the initiative of the looks likely to pass that, according to two people familiar. Now in a statement, mcDonald's said, quote, we and our franchises have heard customers law and clear when IT comes to keeping Prices as affordable as possible.

From the popular five doll media to numerous local and in APP offers on the food they love, we went big on value this summer and fall, bringing fans even more ways to save when they visit mcDonalds. And as we look to twenty, twenty five, we're cooking up something even bigger. We can't wait to share what is in store. Uh, so executives, obviously, i've been talking about this value platform and expanding upon IT for the new year. So uh, that reporting giving your first look at what a looks to beyond table for twenty twenty five and mcDonald sky back over the year.

K, thanks, kate Rogers. So more value meals. The make grave is coming back in december. Something new coming in twenty twenty five. Guy, everything is coming up roses, well.

is good for them, by the way, they handle that hole. That would not happen october twenty fifty or so. So traded down to two ninety.

The report earnings a few days later, earnings were OK. The mantles raised their Price target. Think the average Price taking now three twenty two. The good news and hasn't created the bad news is that really hasn't rale. But I think you can actually own mccandless D A against that recent low we made IT was a tuna have three weeks ago now .

coming up the race to distribute chips, act funding common secretary general mondeo just SAT down with our own kate rui and sentence to go to discuss her read on that A I and much more stride ahead.

more fast money into welcome back .

to fast money commerce.

Secretary general mondeo hosting a global A I safety summit today, featured leaders from both public and private sectors. Ramona also making some comments about the state of chip sec funding R K ri set down with her in the last hour. SHE joined us now with more kate.

I melt grade to see you. So yeah, secretary or mondo took the stage here. Incentive disco SHE warned about A I safety particular talk a little bit about the upside, things like Carrying cancer, for example, and then did also talk about the downside, talk about extinction level risks here.

We also did talk about the chips act. I asked her about that. He says he does not expect that to be repealed in the trumpet administration also says, despite some fears on wall street, thinks that intel, american chipmaker is going to get that funding to listen.

Intel has struggled for years. You know not just since the chips act um they lost their way, but they're finding their way. You know they're making incredible progress. IT is an american champion and I um i'm counting on them and believe in them to be a leader in making A I chips in america, making leading h chips in america.

And then I also asked her about the timeline. Companies have been complained that they have not gotten the money yet. Here's what you said about that.

Obviously, these companies wish that we would just hand over all the money, no string's attached. I can do that. I have to protect taxpayers.

President elect Donald d. Trump also nominated Howard latte neck as his commerce secretary. Remoter telling me SHE called the me austerity SHE says he wish ed him good luck and she's there if he needs IT. But interesting in staff .

guy is back with you. Alright, kate. Thanks kate. rony. So the sort of dispelling those fears regarding to um which some have said is too big to fail. If if amErica is going to have supremacy at all or leadership p manufacturing, intel has to work IT seems like ramona thinks intel is finding its way. Wall street does not necessarily think l is funny, its way.

given its decline. Yeah, I thought this one, you know you like washed out a little bit. I think the commentary on a while com a couple months ago thinking about possibly and they actually kind of referred to the rumor and they actually spoke to IT.

They say they are going to wait until there's a new administration if there is going to be one. And then you look at qualcomm, you look at today got nailed. I mean, I don't think that deal is going to happen anymore. I thought intel was setting up for a good move into the chip sacks cash, but who knows?

Yeah, I want to go back to the beginning of rhinos comments on the A. I. Safety institute. I think people who haven't bothered to dig into this seem to think somehow just regulation slowing innovation on, and that's absolutely incorrect.

So they are trying to partner with private sector companies and other governments so they collaborate and they can share leading age technology. They can make sure they're talking with each other so IT goes faster so they support innovation. The safety part of IT is as they set on the the clip, it's really to avoid the massive fraud, massive hacking, exploitation, ation of minors. So if we think that's bad and we want to get rid of IT, i'd like to have that conversation.

Um there's not that much time left for this administration to get the chips act funding done no or anything else for that Better right there is the question.

So even if you know he talked about, we can just write a check yeah we have they have to know, prove the worthy check. I don't know what IT happens at the eleven hour if they haven't paid the money yet again.

Yeah, that seems unlikely that president electronic would get rid of that. IT benefits the economy. That benefits a lot of red states as well as blue states. He's pro innovation he likes.

but he could also put IT in the department .

of government efficiency, maybe. But if you think about IT until maybe too big to fail, right? IT could be one of those industries, one of those sectors too big to fail, too important to national security.

too important, important.

yeah. But actually too bad. More right? It's not too big, right? I understand that absolutely .

wanted to succeed. That would plastic, right?

And listen, maybe quaw comes out there in the new year with different regulation in different you know, allowing for a mini will see .

of next final trades .

check in NVIDIA, the company saying that .

will deliver more blackwell chips and previously estimated this quarter and demand exceeds supply. Shares are down by just about one and a quarter percent will see how trades session time for the final child to on the home reback a patent.

I'm going to look for the euro ahead towards parity next year.

So I can be bar sure great to ever back here here in yes.

the I, B, B has bounced a little, but I still think there's room to go on the upside.

I then I .

think of this ibd could sell .

the S M H E. Big gold is turning about, which means new mom mining should as well.

right? thanks. You want to fast? You back here to mark five more fast.

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