Bitcoin & Crypto Trade Crumbles… And Opportunity In Commercial Real Estate 6/2/26

13:20Tim Seymour:I mean, like, you know, Dan has been saying, we have been looking for these companies to show us, oh, it's more than just speculation. It's more than just this online casino. OK, there are stable coins and that is one innovation, but they're having a hard time proving that there is a real reason to actually own the asset itself. And that is ironically becoming more and more so as we get all of these different products. So, you know, and this is less about having a new product as much as it is about opening access to a product that has existed for a long time and been really popular. So ironically, the industry fought for spot Bitcoin ETFs.

14:00Tim Seymour:They said Bitcoin futures ETFs aren't good enough. And now we're in this position where it's kind of hard to see what the real use case for holding crypto is. And it turns out in a slump like this, investors really want that return. They're not totally writing crypto off. And these highly leveraged perpetual futures might be the way to stay in the crypto game. Taneya, thank you. Tanea McKeel. I think that's an interesting point in terms of investors wanting to stay in crypto, but using a much less capital intensive way of staying in this trade without putting as much on the line either on these trades.

14:36Dan Nathan:Yeah. Well, she cited Dan twice, which is a record for this show. I mean, nobody really does that. No, I didn't say that. I just want to be clear. It's more than that's happened in a whole year. She did a great job with that, though.

14:49Melissa Lee:I want to tell you. I'm sure he's some of them. I'm sure you think so.

14:52Dan Nathan:The fact that they're called perps, I think we should flag that for future reference. I mean, it's fascinating. But again, the market's going to come up with products that people want to get involved in. Apparently, this is another iteration of exactly that.

15:04Tim Seymour:All right. For more on the crypto space, let's bring in Reeve Collins, the co-founder of Tether, the world's first stablecoin. He's now chairman of STBL, WeFi, and Reserve One. Reeve, great to have you with us. Nice to see you.

15:16Karen Finerman:Great to be here. Thanks for having me.

15:17Tim Seymour:I don't want to make you the Bitcoin defender, but we've been discussing here how it's not really come to fruition in terms of all the promises. And what is the reason today to be an investor in Bitcoin?

15:31Karen Finerman:Well, we're talking about two things right now on the show. We're talking about the price of Bitcoin and the roller coaster that it's been on for the last 10 years. Fortunately, that roller coaster has typically been up, but it is a roller coaster. But we have to separate the technology because the real innovations aren't just Bitcoin. That is an amazing asset in itself. But the technologies are the upgrade to the financial infrastructure that blockchain technology is providing. And we're just starting that due to regulation.

16:01Tim Seymour:OK, so basically what you're saying is Bitcoin, the price of Bitcoin does not reflect at all the innovation. So if you're invested in Bitcoin, believing that it's going to be the backbone to innovation in the financial sector, that's not a good reason to be invested in the actual BTC.

16:18Karen Finerman:It's kind of like a bellwether, right? It shows sentiment for the industry in general. But the industry is really about upgrading the financial infrastructure, making transactions universal, globally accessible, faster, fair, transparent, reducing the cost to do these transactions. And these are all sorts of transactions because the other thing you're hearing a lot about today is RWAs, which is simply formatting traditional assets so they go on blockchains. And when that happens, the rest of the world gets access to these high quality financial products and the big institutions get more distribution and they have much better products to offer.

16:57Karen Finerman:So that's really the long term promise of blockchain in general. And Bitcoin is just the most visible asset. So, Reese, I think that's great. And I agree. I think you have a case where you've got a an infrastructure that's to be argued is going to continue to be where the financial industry is. I mean, J.P. Morgan is certainly a believer in the blockchain and settling trades and the efficiency of it. But it gets back to in RWA land, isn't it really just about going to be the underlying assets? I agree. If you can digitize and tokenize any number of assets, you're actually going to raise the value, especially once you bring liquidity to an illiquid market.

17:33Karen Finerman:But doesn't that ultimately just benefit the assets themselves? I get why exchanges and some of the rails work. But but and I guess I'd lead all this with then where would you be investing? And I realize there's things you can talk about and things you cannot. Yes. But the bottom line of like what you're talking about, isn't that just improve the assets? It's formatting in a new way. So we're talking about upgrading the global financial plumbing, connecting the rest of the world to the high quality financial services that we have. That's really the ultimate promise of what the blockchain can deliver.

18:06Karen Finerman:And Bitcoin, it's upgrading a new type of currency. We won't get into the specifics of Bitcoin. And you're asking me, I guess, from an investor's perspective, well, Bitcoin is amazing. It's a very wonderful roller coaster to be on. And as you just shared, there's a lot of new ways to speculate with that asset. But if we're talking about cryptocurrency and blockchain technology in general, there's so much more to it. Bitcoin might be having a very bad week, but the on-chain dollar, it's having an incredible year. Look at all the regulation that's just being presented right now. And finally, we're almost on the precipice of this being approved and the large institutions being able to participate in a manner that was never possible before.

18:49Tim Seymour:Okay. So Reeve, last question here. If I am an investor and I believe in everything that you're saying in terms of the upgrade to the financial system. How do I express that view in an investment? It doesn't seem to be Bitcoin. Right.

19:03Karen Finerman:Bitcoin is a separate asset. So you have to go a little farther down the chain and invest in the companies that are building the infrastructure. OK. And and that's the bottom line. Yep.

19:13Tim Seymour:Reem, it's great to speak with you. Thanks.

19:15Karen Finerman:Thank you. Really pleasure being here. Hi.

19:20Melissa Lee:So it's not it's just a sentiment measure. Right. I want to go back to the perps thing. And, you know, I've been reading a little bit about this and it's pretty interesting. I think for me, it's probably more interesting on a single stock basis. And when I think about what's going on with futures, I mean, CME Group and I'm a homer for them. OK, just to be really clear, you know, they announced 24-7 Bitcoin trading. They have minis. Right. So they also have a very regulated exchange. They have limits on, you know, leverage. We go back to 17, 18. Remember that period where we had guests on here?

19:48Melissa Lee:We're talking about 200 times leverage that they were allowing folks to trade in crypto assets. And it doesn't take much to get in a lot of trouble in that regard. So, again, you know, a lot of buyers of crypto assets are not allowed to trade on overseas exchanges. That's the other thing. And a lot of these exchanges are existing there. So to me, this is going to be interesting how this plays out. But I think for most investors who are watching this show, the idea of trading on regulated exchanges with, you know, a lot of limits on how you can hurt yourself. I think that makes some sense.

20:18Tim Seymour:The impact, though, on the publicly traded exchanges was pressure yesterday as well as today. The fears being that, you know, people trade perps. They're not going to trade other things that are offered on those exchanges, which we're going to, by the way, have Terry Duffy on from CME tomorrow. So we'll ask him about this.

20:34Dan Nathan:So I'll wait and hear what he has to say. But my sense is he's going to have a pretty cogent argument. The reasons why you want to be with the publicly traded companies in exchanges like CME Group. Real quick, in terms of Bitcoin, you know, we started by saying, is it a warning for the broader market? and specifically technology. Right now, it does not appear to be. I'm wondering, though, if it's just waiting to happen. I think Carter's$60 ,000 is sort of the point where things get interesting.

20:56Tim Seymour:We've got some breaking news out of Washington. Acting Attorney General making some comments about the Anti-Weaponization Fund and more. Let's get to Megan Cassell at the White House for more on this. Megan. Melissa, the Justice Department confirming it will not be moving forward with any of those plans to set up the$1.8 billion Anti-Weaponization Fund. You'll remember this was set up initially as part of the settlement into President Trump's lawsuit against the IRS for the leaking of his tax return several years ago. It was designed to compensate people who purportedly were victims of prosecutorial overreach or lawfare.

21:25Tim Seymour:Todd Blanche, though, the acting attorney general, he's testifying on Capitol Hill right now, and he just told lawmakers, quote, we are not moving forward with the fund, period. But other aspects of that settlement, Melissa, will remain in place, and most notably, the protection from any tax audits on any of the president's past tax returns. So Trump, his family members and related business entities remain shielded from any tax audits or any enforcement actions on any tax filings before filed before last month settlement of the lawsuit. Future tax filings can still be examined, but anything filed before the settlement.

22:00Tim Seymour:Now that protection remains in place. Melissa, remember all of this coming after massive backlash on Capitol Hill, especially among Republicans to the fund, the fund now being dropped, not moving forward, but other aspects of the settlement, this protection remaining in place. I guess Republican lawmakers might be OK with that. Melissa? Megan, thank you. Megan Casella coming up. Palo Alto Networks posting earnings in the last hour. The numbers moving that stock big time in the after hours. That story's next. Plus, China tech in rally mode. The headlines pushing Tencent, Baba and others into the green today and how our traders are navigating the mainland moves.

22:32Tim Seymour:Do not go anywhere. Fast Money's back in two.

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23:40Karen Finerman:Never bet against American grit or American energy. Through innovation, Venture Global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost in a fraction of the time. So while others are busy talking, we're busy building. That's Venture Global. That's unstoppable energy.

24:09Tim Seymour:With Uber's new women preferences, women riders can request a woman driver whenever they want. Like Amy, who's traveling solo in a city she's never been to before. Or Danielle, who works night shifts at the hospital. or Kelly and Jana, who were way overdue for a night out. Because sometimes comfort comes from having another woman with you. Request women drivers with women preferences on Uber. Learn more on the Uber app. Welcome back to Fast Money Shares of Palo Alto Networks. Off-session highs after hours, a cybersecurity company giving rosy guidance after delivering an earnings beat and revenue beats.

24:50Tim Seymour:as well. CNBC's Seema Modi's got the latest. Seema. Melissa, we're on the call right now, and here's some real-time color from Palo Alto Network CEO Nikesh Arora on the opportunity around its AI platform. He says the market reception has been exceptional with north of 1 ,200 customers asking to meet us. We have already completed 800 meetings in the last six weeks to help our customers think through cybersecurity, the future, executives. They're adding that they're also seeing early adoption from a new class of buyers, which includes sovereign infrastructure providers and AI labs, so sort of moving beyond the traditional hyperscalers.

25:25Tim Seymour:You can see the stock up about 5 percent. Expectations were high going into the print, which shares up about 60 percent this year. BTIG reiterating its buy, writing the platform story appears to be coming together on multiple levels, particularly in network security, where win rates are improving. This, Melissa, as we count down now to CrowdStrike earnings tomorrow. Yep. Seema, thank you. Seema Modi. And we're seeing a lift across cyber in the after-hours session in general on the back of PANW.

25:54Karen Finerman:You know, Palo Alto, guys, been following this one for a long time. And he was right for a long time. And I'm not saying that he was wrong. In fact, I would just say that what we all know about this stock is at some point it had been kind of dead money for two to three years. And in fact, it's almost as if this existential threat from AI to software was something that actually allowed this company to break out of what had been a four-year funk that was independent of AI. And, you know, 28 % growth beats, you know, 27 % estimate isn't that strong for a stock that was up 110 % going into the print.

26:25Karen Finerman:But what you hear the analyst community, people are now willing to say, guess what? Acquisitions and the organic growth are giving us some sense that they've got their act together. I think the backdrop would not be this rosy if it wasn't for the absolute tear that the entire sector has been on.

26:40Tim Seymour:Yeah, I mean, before AI was seen as disrupting the sector, but then Mythos proved a use case for the sector. I mean, it's more business for the sector.

26:48Dan Nathan:IGV has had a great couple of weeks. I think we've done a decent job there. Tim is right. I mean, it's been in no man's land until recently. Now you have to start playing the math game. It's the third biggest component of the IGV. I think seven and a half percent waiting or so. But here at 315, wherever it's trading, I mean, we're talking about a stock. Even with that guidance, it's trading at almost 80 times next year's numbers with nowhere near the commensurate EPS growth. So if you've enjoyed this run, I think you've got to take some money off the table.

27:14Guy Adami:I mean, the run up, the double, 150 to 300 before is why the reaction is so muted. But steep, uncorrected, and the aftermarket print is saying it's full.

27:23Tim Seymour:How about IGV?

27:24Guy Adami:Well, IGV has much more depressed and then much bigger recovery. But I would fade that, too. The big constituents have all moved.

27:31Melissa Lee:The other thing is, you know, 24 hours ago, we saw, you know,$80 billion of securities being sold by Google. Right. And when you think about that, just to put that in context, when Google went public in 2004, it's a$23 billion IPO. OK, so just like think about that. OK, it's 22 years ago, whatever. But they're selling a ton of stock here. And they obviously think rather than buying back their stock here, they think it's a better sale. If I'm Palo Alto, if I'm any of these companies. All right. And maybe you have a lot of debt and maybe you can raise some equity to do that, to get that ratio. You know, that would make a lot of sense.

28:03Melissa Lee:I'd be selling stock hand over fist. Or if the headwinds to the story about six months ago, a year ago, was that they don't have an AI stack. They don't have the integration. They're going to be outfoxed by some AI native firms. Well, I'm going to go out and buy some. I'm going to use my currency that just doubled in two months. And I'm basically going to ensure to some degree, whether it's acquiring talent or whether it's acquiring, you know, some products that you can integrate, like that would make a lot of sense to me. So I think Google might have kind of opened the door to some creative financing.

28:33Melissa Lee:And maybe it's around M &A because I'm hard pressed to think that some of these companies will not be able to do M &A, especially with this administration, the regulatory environment, and especially if it's meant to better secure our companies.

28:45Tim Seymour:So this is a prediction you're making.

28:46Melissa Lee:Yeah. I mean, but think about it. You guys, we've been reading about all the cyber stuff that's been going on with Iran and here, and we're only going to get dialed up. So to me, I think this obviously space you want to be. I don't know how you buy in here.

28:57Tim Seymour:There's a lot more fast money to come. Here's what's coming up next.

29:02Karen Finerman:Moves out of the mainland. China stocks switch into rally mode. But can the group make up ground after a rough first half of the year? Plus, the state of commercial real estate. How the sector is sparing amid macro uncertainty and volatile rates. And where our next guest sees opportunities in the space. You're watching Fast Money, live from the NASDAQ market side in Times Square. We're back right after this.

29:36Karen Finerman:Never bet against American grit or American energy. Through innovation, Venture Global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost and a fraction of the time. So while others are busy talking, we're busy building. That's Venture Global. That's unstoppable energy.

30:05Karen Finerman:A key moment for the economy. How might the May jobs data influence the first Warsh Fed decision? Employment numbers and analysis. Squawk Box. Friday, 8.30 a.m. Eastern. and streaming on CNBC+.

30:22Tim Seymour:Welcome back to Fast Money. The China Internet ETF K-Web popping more than 3 % today for a third straight day of gains. Top holding, Meituan rising almost 10 % after posting a smaller-than-expected loss in its most recent quarter. Tencent also higher as it gets ready to launch an embedded AI agent for its WeChat. Alibaba and PDD also lifting the ETF today. WeChat, by the way, is the most used app in China.

30:45Karen Finerman:Yeah, 1.4 billion users, and that's probably understating it. The idea here, I think, for the entire K-Web, but this was Tencent's day, and this was, again, AI agents for WeChat. This is a sense that they're leapfrogging other local rivals, and they're actually going to move to the front in terms of their technology. They've been incredibly slow, cautious, and maybe too plotting. I think Tencent, by the way, I've said this, I think it's the most interesting tech incubator in China, and I think it's a very cheap company relative to some of the parts. You know, I like K-Web. I like the parts. I like Alibaba.

31:18Karen Finerman:I just think China is now more in play with a much cheaper cost base and much lower infrastructure and CapEx attached to their AI world. And it may prove to be at least an interesting, call it diversification for U.S. investors.

31:32Guy Adami:I mean, this is just beta, if you think about it. Think about the 2022 bear market, S &P dropped 27. The Q's dropped 30. And K-Web dropped 80 some percent. And it's basically put in a low, and it hasn't worked. It's a classic either you waste time here or it really comes to life. But I don't think there's a lot of downside.

31:50Dan Nathan:The FXI, we have to broaden it out, traded down to the April low. Beginning of April, cascaded lower, bounced, traded back, held. There's a downtrend in the FXI going back to October of last year that I think we're going to break to the upside. So whether it's FXI or Alibaba, which looks very similar,

32:06Karen Finerman:I think you want to be low on these stocks. E.M. at all-time highs also, by the way. I mean, E.M. closed at all-time highs. E.M. has been outperforming the rest of the world.

32:14Tim Seymour:Coming up, opportunity in commercial real estate, where our next guest is finding value in the space and how the sector is faring as macro headwinds and volatile interest rates weigh on investors. Fast Money is back in two.

32:27Karen Finerman:Missed a moment of Fast? Catch us anytime on the go. Follow the Fast Money podcast. We're back right after this.

32:44Tim Seymour:Welcome back to Fast Money. Stocks posting modest gains today. The Dow, S &P and Nasdaq all closing at fresh records. The S &P and Nasdaq also both notching a ninth straight day of gains. Netflix dropping another 3 percent today, notching its seventh straight day of losses. That's its longest losing streak since November 2022. The stock falling more than 6 percent over that period and now down over 11 percent for the year. Nuclear and uranium stocks getting a boost today. U.S. energy regulators granting a waiver to restart the Three Mile Island power plant in Pennsylvania. Constellation Energy is resurrecting the plant to supply power to Microsoft's data centers in the region.

33:18Tim Seymour:And some more after hours action. GitLab and Ulta Beauty both higher after topping earnings and revenue estimates. And Shopify shares are higher as well. After hours, the company announcing a$3 billion increase to its share repurchase program. Meantime, while the housing trade may be under pressure thanks to a weak consumer volatile mortgage rates, our next guest says there could be opportunity in commercial REITs for more Vision Capital. Jeff Olin joins us here. He is a firm's CIO. Jeff, great to have you with us.

33:44Dan Nathan:Thanks for having me.

33:45Tim Seymour:You say you make the case that they're undervalued relative to the S &P 500. What is going on here?

33:50Dan Nathan:Yeah, I mean, if you believe in reversion to the mean and we believe in supply and demand at Vision, but many investors believe in reversion to the mean, What is unequivocal is REITs are trading at the cheapest 1 % relative to the S &P 500 in history. The only time REITs were as cheap relative to the S &P 500 was in the dot-com boom and then in the dot-com bust. The U.S. REIT index outperformed the S &P 500 every year for seven years.

34:18Tim Seymour:What kind of REIT is the most depressed relative to the S &P 500 but also presents the best opportunity in your view?

34:25Dan Nathan:I we firstly we're a long short fund so it's a great question we really are supply and demand driven the sectors we like are grocery anchored shopping centers data centers seniors housing and manufactured housing communities we don't have to be both for the market and on the bearish side I mean cold storage is a tough space combination the worst of demand and supply too much supply and Life Science Office. The three major markets for Life Science Office in the United States are Cambridge, Mass., San Diego, and San Francisco. There's 30 % vacancy rate in Cambridge Life Science Office. It's by far the biggest.

35:05Dan Nathan:Another 15 % under construction with limited tenants. So that's a tough space.

35:09Karen Finerman:Jeff, how long are these cycles? In other words, we've gotten to this point of dislocation and relative value because this has been building. If an investor is looking into these opportunities REITs and some of these subsectors you do like, how long do you think this cycle is where they will continue to outperform? And what do you need to be the tailwind, whether it's interest rate-wise or macro-wise, to support that?

35:33Dan Nathan:Two key answers to your question. The first is the difference between real estate and virtually any other asset class is the size of the private property market is much bigger than the$2 trillion REIT universe, yet there is an arbitrage between the two. We say at Vision we'd rather not compete with Blackstone. We'd rather sell to Blackstone. We've seen 20 takeovers in the REIT space in the last 12 months at an average takeover premium of 41%. So it is not sustainable because of this dynamic. M &A, it's very topical. You were talking about it yesterday with Warren Buffett buying Taylor Morrison.

36:13Dan Nathan:And the second is, I mentioned previously, supply and demand. New supply has fallen off a cliff. You can't make new development returns work economically in any asset class in North America, except for data centers and office buildings in midtown Manhattan. The combination of inflation over the prior three years, driving up construction costs, replacement cost values, exacerbated by tariffs, exacerbated by the crackdown in immigration, so labor is more scarce and more expensive. The numbers just don't work. These are very bullish. And that's not short term. That supply is going to be at least three years before you see economic returns in development.

36:54Dan Nathan:So it's a nice window. So what do you attribute the valuation skew to? Understanding it might be the S &P is expensive, but obviously there's something else going on here. Yeah, I mean, it really started in April, May 2022. That spike in interest rates and REITs went through the worst five year performance post-COVID since the GFC. I mean, it was brutal. And there's been little recovery. And I think it's some of the myths you hear in real estate. People say location, location, location. Ridiculous, ridiculous, ridiculous. You could have the best located office building in San Francisco. How's that been going for you?

37:28Dan Nathan:Interest rates. It's all about interest rates. Nonsense. The correlation between the yield and the tenuous bond and reap prices is the minimus. You had a guest on CNBC, Brian Belsky, the chief strategist at BMO, a few years ago. He demonstrated this. It's about supply and demand. So it's a lot of myths, and M &A is there to correct those imbalances.

37:47Guy Adami:I mean, the relative performance of the S &P is, I mean, obviously, they're such different animals. It's really to utilities, because REITs right now, just in the past six months, made a 15-year low relative utilities. And I think that's the opportunity, meaning it's a better dividend yield than the utility sector. They have the highest correlation, those two, and it looks like a turn.

38:06Dan Nathan:Yeah, again, I'm not here to be a bull for real estate. Our business is a long, short fund. We have gotten more constructive. And you look at the last 25 years, the differential annually between the best performing recortile and the worst performing recortile was 49%. So it's selective. Very stock picker. Yeah. Even within sectors, you see wide dispersion. I mean, you look at, I mean, Welltower. We love seniors housing. Demographics, demand is solid. Jeff likes seniors housing. I like seniors housing. Yes, and I will like him in a couple of years, too. He's trading at 100 percent premiums in an asset value.

38:46Dan Nathan:That's against our religion. Someone's making fun of my age. That's what he was doing. I would never do that. He just did it.

38:52Tim Seymour:What is your highest conviction trade right now?

38:55Dan Nathan:Data centers. OK. I mean, it's people who are going long NVIDIA and short data centers. I mean, you don't need any growth. And I believe in AI. We use AI. AI could be zero. where you're going to see 40 to 50 percent in the cloud and co-location driving data centers. You know about the constraints in supply. There's some great opportunities in data centers today.

39:18Tim Seymour:They should convert some of those life sciences buildings to data centers. There you go. Jeff, good to have you. Thank you. Thanks for having me. Jeff Olin.

39:25Dan Nathan:First of all, we have to have him back. Yes. Second of all, he played this rock and roll game. It's terrible. That terrible game. Yeah. Third, SL Green. Given what Jeff just said, SL Green at less than 10 times earnings is way too cheap here. That's, I think, a place to be.

39:39Karen Finerman:Equinix is the data center REIT that most people have been targeting over the last couple of years. And I still think there is an opportunity there. It's been volatile, but it's certainly moved.

39:47Guy Adami:What do you think, Carter, of space? Well, remember, in order for a sector to really move, you need generalists to participate. And so the question is, do generalists favor REITs over utilities? Because that's what gets it moving. Okay.

39:59Tim Seymour:Coming up, a delivery stock reversal. The chart master sees UPS shares hitting the gas. The technical take that suggests gains are on the horizon. Fast Money is back in two.

40:23Tim Seymour:Welcome back to Fast Money. UPS shares in rally mode up over 13 percent in the last month and now riding a seven-day winning streak. The chart master says the stock could be ready to deliver even more gains. Carter, what do you see in the charts?

40:35Guy Adami:Sure, let's get right to it. So this is what value investing is all about, the precondition of a long and protracted decline that starts to base and bottom. So to my eye, that deserves the green arrow. Now, let's go to the next chart and annotate it a different way. There's so many ways, but this is also something that is very straightforward. You can call it a head and shoulders bottom and you call it what you want, but it is a reversal formation. Let's do it again. Let's try another way to annotate the lines. You can do it this way. It's a major cup and handle. It doesn't matter what you call it.

41:07Guy Adami:It's how things reverse. We're a series of lower highs and lower lows reverses, and now you have something different. Let's look at the longer-term chart, and this is important, where this is all happening. Let's do the same thing. This minor head and shoulders bottom is happening right at the COVID low, literally at the COVID low. So this level is an epic double bottom. And what's remarkable is the price to the penny was$82 then, and it hit a low of$82 here. That's what I see. Final line that we ultimately move above this downtrend line. Buying UPS, 6 % dividend yield. Value trap or value buy?

41:46Guy Adami:I would say buy it.

41:47Tim Seymour:Value trap or value buy?

41:49Dan Nathan:He checked all the boxes. There's a double bottom, the downtrend from 2022. We're about to break to the upside. A valuation that has been – that's not problematic, but I think people will focus on now, especially if we're about to break out. They don't report until the end of July, I think. So I think you buy UPS here.

42:06Melissa Lee:All right, CBWs, we've got bottom right for the UPS, right? You say up. FedEx, upper right. This thing is like –

42:13Guy Adami:That's right, and you could look at those two as a pair. FedEx is –

42:16Melissa Lee:That's where I was going. So you and I have done this before. Yeah, we've done this before. Let's throw an option strategy around that, Mel, and we've got to show.

42:22Guy Adami:We've got a real something hedged and wedged. But FedEx has been a great winner. UPS has been the laggard. Now, some would say their valuation is about the same. But if you believe in value and you believe in that 6 % dividend yield, then this is the trade.

42:34Karen Finerman:But historically, it traded at a premium to FedEx. So, I mean, the fact that they've come in line says it's cheap. I love the stock. It's a stock I have clients in. It's a stock that I think, as you pointed out, I mean, that second quarter, those numbers were not good. and it's overcome all that. It's overcome higher fuel prices. It's overcome just the USPS dynamics. It's overcome Amazon. I think it's fighting to get higher. I'm with Carter.

42:58Tim Seymour:Coming up, a fast, casual crunch burrito, burger, and pizza stocks taking a hit by one of our traders thinks there is something rotten in the kitchen of some of these food stocks. And here's a sneak peek at the Kramer cam. Jim is chatting exclusively with the CEO of Signet Jewelers on the back of their earnings report this morning. Catch a full interview. Top of the hour on Mad Money. More Fast Money in two.

43:27Tim Seymour:Welcome back to Fast Money. Fast Foods fast fall. Several restaurant stocks seen double digit losses since the start of the year as consumers grapple with rising prices in the face of economic uncertainty. McDonald's started the year with gains, but has dropped nearly 20 percent since the start of the Iran war. Tim, you're talking about this on the call today. Yeah.

43:45Karen Finerman:And I think I did say rotten in the kitchen. It's just listen to all of them and listen to them try to talk about the environment. And no one has anything good to say. And what it leads to are the competitive forces where people like McDonald's tend to dominate on price. And they do. But even that chart's really a tough one. I mean, you look at Shaq down 11 percent today. I think there's a lot of dynamics around also a resurgence in oil prices. All we hear about is this July 4th weekend. And I think there's some dynamics here. We also had a lot of data this week in terms of disposable income and consumption and essentially where the consumer now is in a negative consumption mode.

44:19Karen Finerman:And it's going to happen right there. You're going to go to CMG less. You're going to go to Shaq less. You're going to go to McDonald's less. Domino's told us that the environment was as bad sentiment wise as it was at the covid lows. I'm not buying that. What about Walmart?

44:32Melissa Lee:I mean, it hasn't seen an uptick in, I don't know, six or seven days since earnings. It was an all-time high. And then, you know, throw this in there. Like, look at MasterCard. I know that's not exactly related, but if it's a transaction thing or whatever's going on, I mean, that's at 52-week lows. So it goes back to there's just a lot of cross-currents here. And if you're not involved in this data center bill, I don't know what's working. Banks are the other one. I mean, banks can't get out of their own way.

44:53Tim Seymour:Well, what's crazy is that the economic data doesn't show the distress that the companies are telegraphing at this point. So there's a real disconnect there. What do you see? Industrial production.

45:03Guy Adami:I mean, it's all the data all appears fine. and get the messaging. And that's the final thing. The share prices are the final message. Why is J.P. Morgan rolling over? Why is Raytheon rolling over? Why are the restaurants in trouble? And so something's going to be resolved.

45:18Karen Finerman:Today, I would argue, today was a sneaky day because the VIX was down small. Treasuries were flat. Dollar was flat. Stock market was up small. Below the tape, there were a lot. There was a lot of red, and there was a ton of red in staples, discretionary, utilities, things that tend to be more symptomatic of the consumer.

45:36Dan Nathan:Sneaky, like Cam Schlittler's sneaky fast sometimes. If you need to. If you need to, guy. I like McDonald's at less than 20 times, so I don't expect you.

45:43Tim Seymour:You do, even with the headwinds.

45:45Dan Nathan:I do. I do.

45:46Tim Seymour:Up next, final trades.

45:56Tim Seymour:Final trade time, Tim.

45:58Karen Finerman:Talked about data centers with Jeff.

46:00Tim Seymour:DLR. Like it. Carter Braxton Worth.

46:03Guy Adami:UPS, a bearish to bullish reversal buy.

46:06Melissa Lee:Dan, Nathan. Yeah, Alibaba, the B and Tim Bicep. Sure. Yeah. Or Timbo. Timbo. Something. It was a Bicep move. Yeah. They got the cloud and they got the models.

46:15Tim Seymour:Guy.

46:16Dan Nathan:I thought Reese did a great job earlier in the show.

46:21Tim Seymour:Reeve, we're talking to you. I'm kidding, Reeve.

46:24Karen Finerman:I am sorry, and I deserve that. SLG, Mel.

46:27Tim Seymour:Thanks for watching Fast Money, Mad Money with Jim Cramer starts right now. All opinions expressed by the Fast Money participants are solely their opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by them on television, radio, internet, or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information the Fast Money participants consider reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such.

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