Dell’s Massive Month, and Countdown to ASCO 5/29/26

22:09Welcome back to Fast Money. A recent reversal in the battle between Target and Walmart, though both stocks were down today. Target is up 30 percent this year. Walmart, meantime, only 4 percent in the green. Things look much different longer term. Walmart is up almost 150 percent in five years. Well, Target is down more than 40 percent. You know, since its earnings, it really has had a hard time, Karen. Yes. And I didn't think the earnings were bad at all. The guidance was a little muted. And I always say, why not? Why not have muted guidance when we're in the middle of the brand situation? We don't know where oil is going to be.

22:40We don't know how the consumer is going to do. So there was nothing wrong with that earnings. And if you take the idea that I believe the guidance was modest. However, what was wrong was the 45 plus multiple. And so that's at 39 and change now. That might be wrong as well. I'm still long. I'm staying long because I'm a long term investor. But I do think at the moment it's it's here. What would you say? Yeah. Yeah. I have some math. I'm diversifying out of great into math. Right. Yeah. Good. Julie, your take. Yeah, I agree. I think that its biggest hindrance is just its multiple and expectations around that.

23:25And that's the really, really tricky thing when you own these businesses and they are, you know, four or five, 10 turns off of their long term averages, which it has started to get to. And they're not necessarily growing in a materially different way. So I think that's its vulnerability. But I think it's a core holding in any portfolio. It's really it has demonstrated an ability to capture that trade down customer, not just in its stores, but online. And while that's not as profitable for them necessarily, I do think that it broadens their addressable market of consumers. So I think they're really well positioned fundamentally.

24:01It's one of those kind of great companies, tricky stock sometimes. You think it's overvalued? I think it's a reference point. You have a new CEO. It seems that they did everything wrong with the old management team. And now this one's getting an extended honeymoon period. I don't think so. Earnings, I don't think we're great. I don't think that they were good enough to forget about all the bad missteps that Target had. And I think the most the most the most. Oh, what are we talking about? I thought you're talking. I was should I be talking about Target? I apologize. I was talking about Target.

24:34Target. Okay, that's what I think. Yeah, so I think. Now it all makes it. Okay, yeah. That's not the Walmart. Because I actually looked up and I thought Julie was talking about Target when Walmart was showing on the screen. So that's why I went back. I'm sorry. I know it's Friday, but. Yeah, so would you rather, because I made it this way, I would still pick Walmart, even though it's underperformed Target. I think Target's in a honeymoon grace period right now. Is it the T in Timbo? Come on. Why do you ask that question? Well, I mean, it's almost rhetorical.

25:02Karen Finerman:Yeah, Timote. say. Yeah, it's it's it's a relative value story. And when when the whole sector is under a little bit of pressure for reasons that are related to maybe the positives, possibly of, again, maybe the economy for for really breaking out of war, that was another one of the big themes this week. Lower yields, less inflation, less pressure on the consumer. I still think that some of those that should be good for Target and Walmart. But I think Staples and some of those defensive trades had a tough week. And I agree, I wouldn't run too far away from Walmart, but I think I'd rather be longer Target.

25:35Karen Finerman:All right. There's a lot more Fast Money to come. Here's what's coming up next. Robinhood, rocketing to its best level since February as the trading platform goes all in on AI. But can the big gains last? Plus, all eyes on Big Pharma as the world's largest oncology conference kicks off. What we could learn about drug pipelines, M &A, and more. You're watching Fast Money, live from the NASDAQ market side in Times Square. We're back right after this.

26:11At Venture Global, we think about what can be done, not what's usually done. 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.

26:42You never forget your first fan.

26:44Karen Finerman:So how was practice, kiddo? My mom inspired me to dream big and ask myself, what would you like the power to do? My answers helped me become the soccer player I am today, trusting my instincts and stepping onto the pitch without fear. Bank of America champions U.S. men's national team member Tyler Adams and everyone who dares to ask, what would you like the power to do? Bank of America, proud to be the official bank of U.S. soccer and FIFA World Cup 2026. Bank of America N.A., member FDSC. Parents, have you heard your kids say, I'm not a math kid? Well, with Mathnasium, every kid can be a math kid.

27:18They customize their math instructions so kids who are struggling are able to catch up and get ahead, and advanced kids are challenged to reach higher. Mathnasium makes math fun, so kids learn to love it. Parents say that Mathnasium has not only improved their kids' grades, it's given them a new level of confidence in math and in school overall. Visit mathnasium.com to find a location near you. Welcome back to Fast Money. Robinhood soaring another 11 % today, bringing its gains for the week to 28%. Mizuho raising its price target on the stock to$1.15 from$1.10. I'm citing excitement over the trading platform's new agentic AI tools announced earlier this week.

27:56The company's AI agent can now trade for you and even make purchases with your credit card. This week also saw the launch of the Trump accounts for which Robinhood was tapped to build out the infrastructure. So basically have to have a Robinhood account in order to have one of these things. It's interesting because in the earnings, you know, they outline how much money they're going to spend to build that out for the Trump account. The stock fell like, I think, 13 percent or something like that on the back of that. And now it's it's up to where it was.

28:24Karen Finerman:Well, it's interesting because, again, it is somewhat decoupled from Bitcoin. It was one of these, you know, one to one correlation plays. But but I think what's clear is is that their user base, their target base and their target acquisition base, which is I think is relevant to this story, which is that, you know, you have a gent to AI trading. that's something that the current customers of Robinhood want to do more of, and they've indicated that. But it also is a great way to go out and win new customers. I also just think, who are some of the folks that have done best in these markets? And if I had to kind of categorize the trading platforms, it doesn't matter what size they are, which client base has done.

29:01Karen Finerman:The Robinhood clients have made a lot of money in this market because they're exposed to a lot of these high-growth, high-tech trades. And they just have more money. In other words, their asset base has grown. So I'm a long Robin Hood. I haven't been long for years. I've been long over the last few months. And I think this is a really exciting time. I mean, to that point, Mike, in the in the four o 'clock hours, pointing out, you know, the discrepancy between Hood trading and Schwab trading. I mean, it's a completely different story for Schwab. So you can really see how, you know, right. Exactly how that client base is really done.

29:34I mean, they've done an extraordinary job, I have to say. I mean, you know, we all first became familiar with Robin Hood when they were on the verge of collapsing, maybe, during the whole GameStop thing. And yet they've built a huge business. I mean, they seem to really understand what the clients want and have captured them. It's impressive. I've always found it expensive. What? Good hair? Speaking of somebody with good hair.

29:58Karen Finerman:I wasn't fishing for compliments. But you'll accept them. So, I mean, it's impressive. But I've always found it too expensive, which has been the wrong thing. The growth has been extraordinary. Good for them, but I'm not longing. It's just about volume on their on their platform. And if you can get stable coins on your platform, real world assets on your on your platform, private companies on your platform, that's why it's decoupled from a Bitcoin. And there's plenty of other markets they can play in. Yeah, I just had one other thing. Interactive broker. Petr free is a very different guy than Vlad Tenet.

30:33And yet he also has been really aggressive. They've grown tremendously. Quietly. No one ever talks about it. They don't get as much play. But still, the stock's done extraordinarily well. Yeah. A lot of the same sort of clientele. I mean, very active traders on Interactive. Coming up, the world's largest oncology conference kicks off today. And it might kickstart some major M &A in the biotech and pharma spaces. What to expect right after this. Missed a moment of fast? Catch us anytime on the go. Follow the Fast Money Podcast. We're back right after this.

31:14Welcome back to Fast Money. Major averages posting record closes today. The Dow up a percent for the week, closing above 51 ,000 for the first time. The S &P gaining a percent and a half in the Nasdaq, almost two and a half percent higher. And rates taking a big breather. The 10-year treasury yield down 2.5 % on the week. The TLT Treasury bond ETF locking in its best week since early April. Shares of Yum! brands are up in the after-hour session by about 2 % after Bloomberg reported the company is in talks to sell Pizza Hut to private equity company Long Range Capital. Bye-bye, Pizza Hut.

31:48Karen Finerman:That's too bad. I mean, although maybe it's great, but it's probably great for Yum! shareholders. It's just so interesting to me because Yum! is the name we used to talk about all the time. Well, because of the China business. And KFC going wild and Taco Bell. So not so great on the hunt. Yeah. In the meantime, the world's largest oncology conference kicking off today. Pharma giants like Merck, Moderna, Eli Lilly sharing results from their vaccine and therapy treatments for more on the key developments in the state of pharma. M &A Portal Innovation CEO John Flavin joins us now. John, it's always good to see you.

32:20Likewise. Great to see you, Melissa. When we start seeing those abstracts dump, the data dump, which ones are you going for first? Well, you know, I think vaccines are becoming more important again. This is a field that's been studied for many years. But some of the science is enabling more a possibility in this regard. Moderna and Merck reported some good results with regards to their melanoma vaccine. They're particularly useful potentially in really high risk, genetically predisposed patients in melanoma. So I think that's an important field to watch. New modalities are really the hit at ASCO and even beforehand if we think about what happened with Revolution Medicine and their breakthrough therapy, going after a key protein called KRAS, which is really transforming pancreatic cancer therapy, doubling their survival time at a medium level in patients and with a fairly benign safety profile.

33:16So it's an improved quality of life. So that's a really important story to watch. And that's, you know, just a few years ago, came out of Greg Verdine's lab at Harvard, spun into a company called Warp Drive Bio Revolution Medicines, bought it. And lo and behold, you know, that's a great story, you know, both from a stock performance perspective and for patients as well. You said vaccines are more important. I know we're talking we're focusing on cancer because this is ASCO. But with the purchase of vaccine makers by Eli Lilly, overall, are they more important or specifically only when it comes to cancer?

33:51Well, I think certainly a big application will be cancer. And a lot of the reason for this is scientifically a lot more of the antigens involved in some of these key cancer targets are known and characterized. And so the vaccines can put those in play using now what are much more de-risked delivery methods like mRNA, as we're well aware of. So I'd say the key driver that's moving toward the vaccine field is definitely in the cancer space. And I think we'll see a lot more activity in this regard. And again, I think primarily in areas where there's a high unmet need and particularly in areas where patients are predisposed genetically to these kinds of mutations.

34:33M &A, we've seen a lot in sort of the, you know,$2 to$7 billion range. And I'm wondering, John, if you think ASCO will yield probably some more deals in the pipeline. I think so. I mean, we saw, you know, the news around Pfizer. It's a business development deal. But, you know, it's up to$10 billion focused on 12 potential therapeutic programs in the ADC space. So that's been a big story for biotech as well. China. 30 % of licensing this year is attributed to Chinese assets. Predominance almost as a whole has been in the oncology space. ADCs, antibody drug conjugates, are really a hot space because they go very focused around key tumor types without the deleterious side effects of chemotherapy.

35:22And if you look at, you know, some of the things that are happening in that space, We had a company, Crossbridge Bio, that just exited to Eli Lilly. So large pharma is on a buying spree. Some of this is driven by filling pipelines, not just for the patent cliff, but ironically, the Inflation Reduction Act has driven a lot of pharma into making deals as well, because that window for being able to monetize the huge investment is shortening. And so you're seeing just a lot more activity in M &A,$75 billion up to this particular date in 2026.

35:54Karen Finerman:Hey, John, it's Tim. Thanks for joining us. I mean, that China stat is shocking. It's amazing. And I guess, help us, though, like, boil down to the major players. You just, you know, we've talked about Pfizer. Some of the major players, J &J, I mean, who on a Delta year over year do you think has made the biggest advance? And whether it's, you know, drugs that are coming through pipeline, who do you think is the most misunderstood of the majors in terms of their core oncology business? Well, I think, you know, you look at Lilly and clearly they're, you know, really doubling down. A few years ago, they acquired Loxo Oncology.

36:31That's been a key platform for them to acquire many more assets and programs. You know, I look for them. I know they're, you know, a very large market cap company, the biggest in life sciences. But, you know, I like their vision and I think they're still upside in that story, particularly as they integrate AI with their innovation and AI factory collaboration with NVIDIA, for example. You know, some of the companies that we focus on a lot are the mid-tier pharma that are growing very quickly. Estellus Pharma has a key franchise in oncology, particularly around prostate. They did a deal with Veer earlier this year, a biotech company.

37:10So I see them as being an up-and-comer in the space. Certainly, they've been active in the field for a number of years. I think a nice pipeline. John, great to speak with you. Thanks. Thank you. Take care. You too. John Flavin, Portal. How are you feeling about health care? So if you look at the patent cliff and you look at Merck in particular losing Keytruda, look at XBI. That's a small cap biotech ETF and IBB. That's a larger cap biotech. And XBI is outperforming by six to one because all of these companies are going to have to be buying every little company. You said$2 billion to$6 billion acquisitions.

37:49Probably within that space. But I would look for a host of M &A to ripple through. XBI is going to be more effective than IBB. Yeah. Aside from Novo. Just looking at Novo. Well, yeah. Perennial disappointment at this point. I mean, I just can't believe how cheap it is relative to. Hang in there. Hang in. Well, they, I think, should do an acquisition. They've tried. Yeah. But I think they should do an acquisition.

38:12Karen Finerman:I'm hanging. I'm hanging tough on Novo. I'm hanging tough on Pfizer, who, again, has an interesting flag planted in the oncology space. But I do think it is about having a vision for why you're owning some of these names. It's not just because of the valuation. It's not just because the patent cliff looks like it's tapped out. Yeah. I mean, it goes to what we're talking about at the start of the show, and that is diversification, Julie, right? I mean, this is a place to be. I agree. I think you find a lot of really good values in healthcare right now. And I think if you're just a little bit thoughtful about the types of names that you want to own, I'm wary with this FDA.

38:50It really feels like it's still pretty turbulent in terms of how drugs are getting approved. So I'm not that as interested in pharma as I am in companies that are adjacent, that are in devices or that have already well-approved pipelines that are clear and that are really competitively differentiated. That's a better place for me to be. Coming up, Big Bad Broadcom, the AI heavyweight on deck to report earnings next week, how options traders are setting up for the print, and whether it's make or break for the semi-trade. That's next.

39:24Welcome back to Fast Money. Broadcom may have been up today, but it heads into Wednesday's earnings report, wildly underperforming the broader chip space. The SMH up nearly 20 % this month. Broadcom just 7 % higher, but options traders are feeling far more bullish on this laggard into the print. Oliver Rennick is on the training floor at Stebo in Chicago with more. Hey, Oliver. Hey, Melissa. Broadcom is indeed in a really unique position as a big tech hardware play that's been lagging, which might sound funny considering the stock is up 25 % this year and 80 % the past 52 weeks. But keep in mind, the semiconductor sector is up 145 % the past year.

40:02Now, Broadcom also stands out right now because the options flows look much more bullish here than in the broader group. To rewind for just a moment, we started this week reporting on the heavy put trading activity in the sector fund SMH, and that actually continued throughout the week despite another 4 % gain in the ETF. In fact, today, almost 10 times more puts traded than calls in SMH. But in Broadcom, it's the opposite. Calls outpaced puts two to one and 80 percent of the half a billion dollars worth of premium was tied to calls. Implied volatility is pricing in a sizable near eight percent swing for the stock.

40:40But one million dollar bet we spotted in the four hundred and eighty strike calls today is looking for twice that move between now and mid-July. Melissa. All right. Oliver, thanks. Oliver Rennick. It's not just Broadcom underperforming SMH. I mean, NVIDIA is also, I mean, basically flat for the past, up a percent for the past month. Well, NVIDIA, you know, that's old school. It's GPUs, not CPUs. But, you know, NVIDIA also has CPUs. But it's just out of favor right now. I like the valuation. I don't own Broadcom. I like the valuation of NVIDIA hanging on to NVIDIA.

41:17Karen Finerman:Yeah, I think Broadcom is interesting going into the numbers because of the trends that we've seen. other people. They just haven't been able to impute them upon Broadcom. And I tell you, the valuation isn't terrible here relative to the group. You worry about customer concentration. They're guilty of it as well. I think their five clients are probably responsible for 40 % of revenues. But that's nothing in the customer concentration bucket that we've seen. I think you're just looking at something that might be priced to perfection. And if the market continues to roll higher. This will too. But as soon as the market turns around, the chunks are going to be taken out of companies like this.

41:53Julie? Yeah, I'm with Steve. I think that when you're looking at any of these names that have rallied, you're exposed from a valuation standpoint and you're exposed from a customer concentration standpoint. You want to own the absolute highest quality. This is actually, I think, not the time to be super valuation sensitive. If you're going to be invested in these semiconductors, I think you want to be with the ones that have the strongest and most durable themes and the least cyclicality. All right, here's a question, Tim. Okay, I'm listening. NVIDIA and Broadcom or memory?

42:24Karen Finerman:Wow, it's interesting. It's almost like a, it's like a kind of a barbell trade. I mean, it's kind of, you've stacked a couple things on one side. So, boy. Want to answer on Monday? Yeah. I mean, it's like the laggard of the chip sector for the past. I wish you hadn't strapped Broadcom to NVIDIA because I would say NVIDIA. I feel a lot better in terms of the core business and, again, the places that they're investing. So I'm going to just answer it that way. Yeah. OK. Coming up way more than just a cap and a gown, how new 529 savings plans are helping parents with much more than college savings.

43:03We have that story right after this.

43:11Welcome back to Fast Money. new laws for 529 education savings plans allow funds to be used for more than just college tuition. Sharon Epperson is here to give us some of the details. Sharon. Melissa, 529 savings plans can now help people save not only for a child's education, but also for their own career training or professional credentials. Under new rules, you can now withdraw funds from a 529 account tax-free for tuition, books, and fees for credential programs, testing fees to earn or maintain a certification or license, and continuing education costs needed to renew a credential. Certified financial planner Nathan Sebesta used funds from a 529 plan to help pay for his master's degree in financial planning, and now advises clients to consider using a 529 account to pay for classes and programs to help them switch careers or grow in their field.

44:04More workers may need to tap these resources as they face layoffs and job transitions, but you can't just withdraw the money for any AI boot camp or online credential program. The new law requires that 529 plan money be used for credentials, licenses, and programs from authorized agencies and organizations. You can find a lot more on education saving strategies by checking out my Money 101 newsletter. Use the QR code right there on the screen or go to CNBC.com slash money 101. And to be clear, Sharon, it is for the person, the child who has the 529 plan to use in their adulthood, correct? I mean, when we're talking about credentials and licensing, no, no.

44:46Okay. This is for the parents. We're talking about you change. You can change the beneficiary of a 529 plan to anyone you want, including yourself. So you can open one up for yourself and then start using it. You can have one in your child's name and change the beneficiary to yourself because they don't need it right now, but you really do. So it depends on who the beneficiary is. So adults certainly can have a 529 plan in their own name with themselves as the beneficiary. And that's the new part that has really opened the door for all of those people that are now facing job transitions, career changes, or they just want to increase their skills to keep the job they have.

45:23So it's a really, really great perk. Sharon, thank you so much for bringing that story to us. Sharon Epperson, up next, Final Trades.

45:41Final Trade time, Julie Beal. You know, speak to those nice little small cap health care companies, Radamed is worth a look.

45:49Karen Finerman:Tim Boat. Lower oil prices, lower yields, lower dollar, higher gold, higher GDX. Oh, I thought they were all trades. Okay. Yes. Del, first of all, thank you very much. Very appreciative. Second, though, I've got to roll up and out. That's what I'm going to be doing. All right. Steven. I feel like the show went quick. That means it was a good show, right? It was a good show. Good weather. Enjoy the weekend. I have a trophy asset read. Do you know it? S.L. Green. Well, see, you should have looked. S.L. Green. Thank you for watching Fast Money. Have a great weekend. Mad Money with Jim Cramer starts right now.

46:54and it should not be relied upon as such. To view the full Fast Money Disclaimer, please visit cnbc.com forward slash Fast Money Disclaimer. Thursday, July 16th, CNBC Sport and Boardroom join Fanatics Fest for Game Plan. Groundbreaking ideas shaping the future of sports and entertainment. Request your invite at cnbcevents.com slash Game Plan.