tv Fast Money CNBC October 20, 2015 5:00pm-6:01pm EDT
exchange market. >> crazy how it didn't go down with trudeau getting it. because everybody was short. >> that does it for "closing bell." "fast money" begins in moments. what is on tap. >> we are all over the conference calls and the vm ware out with earnings and we'll see what they have to say. >> over to you guys. >> "fast money" starts right now. live from the nasdaq markets overlooking time square i'm melissa lee. your traders are pete brian, kelly and steve grasso. three big stories we're following for you tonight. yahoo, volatile after hours on an earnings miss. guidance coming in light. that call underway. and we'll bring you the headlines from marissa mayer. and chipolte stock is falling. we have a top ranged analyst and he will weigh in on what it could mean. and new details on the ferrari ipo moments ago, and what you need to know about the luxury carmaker ahead of the first day of trade. and we start with yahoo.
let's get to josh lipton with the details. >> melissa, yahoo might have missed expectations which is a disappointment for investors but in mountain view, what is making headlines, announcing a search advertising agreement with google. google is going to provide yahoo with search ads, desktop and mobile platforms and google will pay yahoo a percentage of the gross revenue from ads displayed on yahoo properties and yahoo said this agreement will give the company greater flexibility when it comes to choosing suppliers of search results and ads. now when it comes to results, yahoo reporting adjusting eps, 15 cents on revenue the $1.23 billion. analysts want to see $1.26 billion. revenues from maven, thatupped to $422 million. important because that is where
the internet ad dollars are moving. display accounts for 40% of the company's business. search continuing to struggle cloming in at 391 million. guidance, light, saying to expect q4 gross revenues of 1.26 to $1.2 billion and that undershoots what the street wants to see. hopping on the call now. and can you be sure marissa will get questions about the key executives who have exited. i'll get on the call and bring you headlines as they cross. back to you. >> thank you, josh lipton. i'll kick it off with you, pete najarian najarian, that is all pretty big. >> that is big. >> but i feel like there is an elephant in the room here and that is the spinoff. >> that is all that really matters right now. when you break down yahoo, we look at it as okay how about the piece of alibaba and how that will be taxed. is it or is it not?
they continue to lose the executives. that is big. but when you look at the deal with google that counteracts against that and plays well against that because that could be something that we finally start to see growth. we've talked about core for a long time and the weakness in search. but it is the display ads, advertising dollars and that could be a big step for marissa. >> but the question is they are spending a lot of money. so how much money do they have to spend on this. josh mentioned the revenues x time -- which is -- i'm sorry, acquisition costs for traffic. so that is up a significant amount, primarily because of the deal with mozilla and the deals are coming down. yes, they are getting more revenues from the google ad but what kind of money are they spending to do that and if they are holding them past the alibaba deal it doesn't look good. >> let's bring in a senior tech analyst listening to the call which just got underway. he is on the red phone.
colin, good to hear from you, in terms of the quarter, what do you make of it and is that renegotiation of the deal does that mean the core business is improving. >> the call is just getting underway. they are doing the legal disclosures. if you look at how yahoo trades this is still a tracking stock for alibaba. it trades in line with alibaba. so what you need to see, is we have to get past the spin. we want to hear any commentary in terms of the timing of the spin. and then you'll have a new investor base to come in and own yahoo for the core business itself. because there is a lot of potential there. it is not materializing under this management. >> in the press release there was brief mention of a quote from the ceo about getting the spinoff done as quickly as possible but that is about it. do you think she'll be able to provide more clarity on the conference call given they have to submit it and see what happens. >> correct. but i do think this is what investors are focusing on. so whatever comments they can
give and any color they can give will be critical. in terms of how the stock trades and more important date is next tuesday, premarket when alibaba reports results because again if you look and see how yahoo stock has moved it is tied to the alibaba trade. >> so you are performing rating on yahoo is predicated on alibaba? >> absolutely. and the value creation that can happen when that spin happens. i have a secondary thesis that once the spin occurs there will be more focus on the core business which we value only at five times our ebidta which is a very low multiple. so that may become a more focused target once that spin happens for private equity and that could be compelling in 2016 as well. >> we'll check in with you later. colin of bgc. you are in yahoo? >> i'm not any moore.
i don't know why you think it would be a buying opportunity once that spin is over. the catalyst the headline driven event we are waiting for but i think that is the only reason why people pay attention to yahoo any more. >> and so where are we now? >> it is a crap shoot right now. people right now are taking fliers out in hopes there is a good deal when it comes to the taxable liabilities they entail after the spinout. >> your thoughts, karen? >> i guess after spin it is a question of price. where does it trade. if they get a great tax treatment and it is trading near zero. i'll by something trading near zero that may have some value. but we have to see. i think we have a while to go and i have to see if these things gain traction. i don't think you need to jump in right here. >> in terms of this period right now, already the core business is being valued at near zero, the question is do you want to own alibaba through this tracking stock which will trade at a discount to alibaba shares
so to colin's point, isn't that the reason why after the spin is the actual opportunity, because you are just going to get the core business nond at the discount of the alibaba shares. >> i tend to agree to you. and what karen is describing you are al qaeda getting a free call. you are buying a call that is costing you very little to see what kind of upside you can get out of it. >> or it is costing you a lot. >> you could hedge out a lot of alibaba exposure. >> we'll have more on this as we get it from the conference call. meantime new details on the ferrari ipo, so let's bring in kate kelly with that. >> so ferrari pricing at the top of the $4 range which was 48-52. if will be -- it will be priced at $52. raising under $900 million for the ipo. given it is a 10% float, that values the entire company at just shy of $10 billion over all. this is a very nice showing for
ceo sergio markieon and many are excited because of the iconic brand status. it is multiple high compared to other automakers but within the luxury space, it sort of in line with other key brands. so they had nice momentum on the road from what i'm told the investment meetings were well attended. people were optimistic about it. and in a sign how well this went from the company and the underwriters perspective, robert frank and my colleague and i and others are already hearing complaints from the investor community about not getting allocations or being warned they are not going to get large share allocations. that is some indication of the feeling that the price -- or the stock will trade up in the after market tomorrow on the first day of public trading. >> nice orchestration by the investment banks on this one. a change of pace. >> they do seem to have a compelling story on their hands
and they organized it well and had good luck because it is a popular brand and they did have a waiting list for the car so there were a lot of attractive to people. and i did talk to one investor who said i'm staying far away of this. this reminds me of in vesting in a sports team. it is cool to tell your friends about but not a great trade. there is skepticism out there as well. >> thank you for the details. race is the ticker. it begins trading tomorrow. this is a company that wants to ramp up production in 2019 to 9,000 vehicles and when china is slowing down. in the "wall street journal" today there was a high profile corruption crackdown case that involved a black ferrari that crashed in the streets of beijing. i thought that was interesting, because the corruption crack down has curtailed spending on luxury items. >> put me in the skeptic camp. not just because it is ferrari but it is a luxury brand name at
the top of a market. and this market has been fueled by a ton of money. so that is more in my world view, market view of the reason why i wouldn't buy it. i don't like to see something like that take place here at the high end of the range. so i'm not that geared up about it. >> i don't know about pricing. but when you think of a luxury coveted item like this i think corruption -- anti-corruption is a fad and it will end in china. i really do. i've always thought that -- >> corruption will come back in. >> it is over time. but i do remember though that porsche had a strategy of expanding their brand and they sold more cars and i was skeptical and it was actually incredibly successful. and that did keep the cache of the name. it is not as high as ferrari but it is pretty high. >> so you would touch it or no the ipo? >> it depends on where it trades. and i think it will levity ate because it is a could havitied
item but i think it will leave tate for a while. >> you'll see the pop tomorrow on the first day of trading and everyone will think it is a screaming success and pop 20% and close up 10% and everybody thinks it is a screaming deal. look at automotive and o'reilly they are up 20%, big gains in the auto industry. >> chipolte, after earnings miss a top ranked analyst weighs in on the quarter. and fitbits healthy gains stock popping after adding big name customers to the roster. find out if grasso is holding steady or finally taking some profits. and later, tesla is slammed after consumer reports dropped the model s to a worse than average rating. we have the details that sent investors running for the exits. much more "fast money" right after this.
single-digit growth outlook for 2015 and issuing a low single-digit growth forecast for next year. on the conference call, executives saying traffic increases have been chopping. and slightly lower than q3 but they expect the return of carn eatias to be in line with last quarter. in terms of carn eatias the company picked up another suppliers to do that. lower avocado and dairy prices. price increases in steak due to sustained beef inflation will and the company opened up 53 new restaurants last quarter, that is the fastest it has ever added locations. boosting from 215 to 225 new chipoltes this year. and 235 in 2016. and chop house expanded to 11
this past quarter. pizza expand to the second market and the over all labor market continues to tighten but that it is national career day and single day hiring spree did result in 4977 new hires. so taking a look of shares after hours, down more than 5%, almost 6%, back over to you. >> thanks so much morgan brannon. more more let's bring in nick satty an who joins us from l.a. great to have you with us. >> thank you for having me. >> you thought traffic was decelerating. could we be in a spot where carnitas will ignite traffic into the fourth quarter. >> i'm cautiously optimistic. but all of the signs point to the fact that this run rate is likely to continue. we already had 90% of the carnitas rolled out and that didn't help much.
in the quarter they had a buy one, get one free offer and that happened in july and since then we haven't seen growth in terms of transactions. and in fact given the commentary, it is likely that transactions are sub 100 basis points or sub 100%. >> it is brian kelly, so they are continuing the aggressive rollout of the stores but does it concern you they are not getting traction even though they are opening up a whole bunch of new stores. >> my concern is cannibalization. the number one response in the survey when the managers tell us that the sales are down is cannibalization. so if you are upping the number of stores in what is a saturated market place, it is likely that that is only going to increase and you have to run that much faster to overcome that impact. >> so it is view that the loss in traffic -- or it is cannibalization impacting as opposed to learning share to another player.
>> i think that is a big part of it. the quick casual market increase is competitive so it is a combination of the two. >> so it is as easy as not opening any more stores and that would fix their problem. that is what it sounds like you are saying. >> it wouldn't fix the problem. but the cannibalization is 1.5% to 2% range. and so that comp would be two percentage points higher. >> nick we have to leave it there. thank you for joining. nick satty an joining us from l.a. he has a neutral rating and a $740 price target on the stock. if you don't open more stores that will fix one or two decline. you have more dollars but a lower mettic of same store comp sales? i would rather have more dollars. so i remember years ago home depot doing the same thing. but for the stock, it would be worse. you have momentum investors leaving and the super-growth isn't there any more and it doesn't matter they are
leaving. >> a year ago they have 20% sales growth and now 2.6%. so the big question is -- >> it can't just be carnitas. >> and it is not just cannibalization. i think they are losing to competition. >> and a big part of it was carnitas, believe it or not, it had a bigger margins but how do you trade the stock. it just broke all support levels. you go back to last earnings. you go down to $643 before you find any substantive support. >> that is a long way. >> and what is the right multiple? >> because it is like under arm your and nike. they are fine as long as they continue to grow at a specific pace and if they slow down that multiple -- >> would you rather be in chipolte yum or mcdonald's. >> would you rather. >> without the risk of what you said before, it is a long way for it still to fall and we don't know what the right answer
is for chipolte right now so i would rather go with mcdonald's ultimately. >> okay. as we take a break. looking at yahoo. the earnings call 20 minutes in. we'll bring you the headlines from ceo marissa mayer. i'm melissa lee and you're watching "fast money" here on cnbc firz in business worldwide worldwide. what else is coming up on "fast." >> the force awakens, as the trailer for the new star wars film drops, what happens if it doesn't live up to the hype. could it mean dooids shareholders are heading for the dark side. and tesla troubles. consumer reports yanking the recommendation for the model s. and new video hitting the internet testing that the auto pilot could send you serving in oncoming traffic. phil le beau breaks it down in a troubling tesla special report. all of that ahead and more ahead on "fast."
all of it. that is a look at the new star war's trailer. debuted last night during monday night football. fans could get a advance tickets at fandango and there was a crashed website and the previous record was for hunger games and fandango sold eight times the number of tickets for star wars. >> and it is a 40-year-old franchise and this is the seventh version and it has that kind of power. it is lucas films and disney. and everybody was pushing down on disney because of espn and what eisner said if we trim up the cord cable, that could be an impact. i think that pushed the stock under 100. it moves up toward 110. just wait. we are talking about december 18th but the reaction from last
night, as people are getting more and more excited about this this is just one more franchise. they are talking about $1.5 billion globally for this particular film. and that is just the film. how about all of the extras that disney will bring along with this. >> don't you think it is hyped up now. everybody is expecting it. so in terms of in the disney stock, it seems everybody is expected this star wars to be fantastic, it broke the internet. more than kim kardashian. all of the superlatives, so as an investor or a trader i don't want to be in and espn is cutting some jobs. and i would stay away because i think you have the sell the news factor. >> i sadly agree. because -- >> because it is me or because -- >> well both. that is a question there. but the espn thing was -- was that chewbacca? >> that was chewy. going back to the first. >> and i always want to sell into before the movie opens.
i feel like it. >> well that is only a few months away. >> you do have time to get more hype. that is true. >> this movie doesn't come out until the 18th. and what if those numbers are even just cascading and turning into something else. >> we're all for getting on the desk, that would be a perfect analysis but disney got beaten up with the skinny bundle already, it is already come from such a high lofty price, it was already beaten down. i bought it. i personally. i had the ability to buy it below 100. i'm keeping it now because it is gaining the momentum again. so i don't think that the star wars was priced in. and up next apple streaming service has 6.5 million paying customers and the new apple tv will start shipping next week. and shares got a boost today. closing above the 50-day moving average for the first time since july 31st. speakers? >> and they talked autos too. and to me the interesting part
of the conversation was he talked about ooze being software driven. if you are an apple holder and worried that would be a huge undertaking to cut down on margins with autos, and talking about software in the car, that is much better for apple shareholders. so i think apple up on this move here is okay. i wouldn't rush in to buy it tomorrow. i still think they have an awful lot to prove. >> i think the music is adisappointment. versus spotify, i think that is a disappointment. but the car, they will work with a company, bmw or whoever it is they work with them for this autonomous car -- >> we need an autonomous speaker. >> i need siri to drive my car. but i do think they are going to be in the car and that is a huge investment from them and i think it is really big. >> that seems like a weird -- we knew they would be in a car in some fashion. and so the gain today, the
premise is that because we know that it is not going to build a car, we believe now more so that it is not going to build a car and that is why it is up. >> because the margins is up. >> i hate the build a car idea. i think it is horrible. >> huge strategy shift. any way. news on ipo albertsons. kate is back at headquarters. >> albertsons opens their ipo last week because the price was torpedoed by the negative guidance from walmart on wednesday and looking at a pricing far below the intended range of what they expected. so they postponed it. but they are still hoping to go public in early november. and to shore up investor confidence thif additioned -- they've issued additional updated financials. the more significant thing is they've swung to an operating loss of $9 million for fiscal second quarter of this year as compared to an operating income of $37 million at this time last
year. they say that is partly related to the safeway acquisition, among other things. on upside the safeway acquisition seems to have helped with identical store sales. those were up on average. and this is again a little bit of a preliminary estimate 4.4% overall. and net sales also higher. this is sort of dramatic but remember this is net sales on an actual basis and it is still an early estimate so a number of caveats there, but up 140% quarter over quarter. so i think the hope is that investors will be enthused about any new numbers and they would still pursue a offering in the coming couple of weeks without restarting in the new year and go on the road again and rewrite the prospect us. >> kate looking at karen, looking at fdc, this is doggie how does it impact albertsons. >> when i ask what is going on in the ipo market to analysts
they said first data and now albertsons, not the most exciting stories. not terrible stories, they are solid. but a reflection of where we are in the ipo cycle, which you are not seeing the best fundamental stores coming to the market. and we are in a late ipo run and thetories coming to market are not the most compelling and therefore pricing is key. so when you have walmart negative guidance and a choppy market and the investors get the vibe that the company and the underwriters are being greedy with the price range, they get turned off and don't want to do their own due diligence. and ferrari, i would say and colleagues including mine of pisani he said this is a iconic brand and akin to owning a sports team and the fundamentals are less important because is such an exciting product. >> kate. we'll leave it there. thank you. kate kelly at headquarters for
welcome back to "fast money." here is a look at the biggest after hours movers and we have a lot of red on the screen but shares of in tewive surgical taking off. on the flip side chipolte following after missing on earnings estimates. but comp store sales did come in at 2.6%, above the estimate of 2.4%. and yahoo volatile and is down after missing on the top and bottom lines and light guidance for the fourth quarter. we start out to be a very bad day for tesla. the stock tanking. and earlier today showing the tesla auto pilot feature isn't all it is cracked up to be. phil le beau is here on set. this is the auto reliability survey of tesla owners. >> correct. and people are looking at this report today and saying, wait a second, you gave this car a 100
consumer reports did and you called it the best car you had ever given. how can you give it a lower rating in terms of worse than average. it is important to note that what consumer reports does every year is they survey all of the subscribers and this year they got 740,000 vehicles they collected responses on. people said here is what works and doesn't work with my vehicle. when it comes to the model s, they got 1400 responses and based on that they calculated this has worse than average reliability. and as a result they pulled the recommendation. and it is the lower in the three years they've been reviewing and surveying and rating the model s, the lowest it has come in. tesla said in response to this survey look we have over the air software updates that allow tesla owners to have problems diagnose and we fix most of the bugs that way without the need to come in for service. if it is a hard wear issue, we arrange a way for them to have service. we want to add convenience and make sure they are happy with
their vehicle. well the owners were not happy because they came out and said what is going on here. at one point the stock was down more than 11%. and it is hard for the critics and the fans of tesla to wrap their arms around this because consumer reports has been so bullish about this vehicle when they've done their own tests. remember that is just their own tests on private tracks in terms of what they like about the vehicle. >> the below average on reliability gets a headline but the bottom line in theory should be that 97% of those surveys said they would still buy the car again. >> right. >> all of these issues still not a deterrent to actually wanting to own the tesla. >> correct. when you look at owner loyalty and survey after survey about what vehicle they want to buy again, tesla is near the top. people who own them, love them. >> when do they do the test again. >> they do it next year. every year. it is an annual report. >> and this is a momentum stock and you see this and it gets pounded.
after a couple of notable downgrades on the stock and luke warm ratings here. >> i was concerned with them meeting the production numbers and that is a problem for me. i don't know what this does to them taking their eye off the ball as far as meeting the production numbers but i think they are unrealistic whether you look at 2020, the numbers that analysts put out or they put out themselves i don't think they can. do you think they can? >> do i think they can. i think they are ambitious numbers. i do think they can reach the near term production numbers and most think they will hit the numbers for 2016 and into 2017. that is what it looks like right now. let's see if the x ramp up goes as planned. >> were these two stories, the execution and lines up with s. is part of the factory where the cars are finished that is the same area for the s. and the x. >> that is where they call
marrying the car. >> well if the s. is getting terrible reliability rankings how will it be if the finishing could be interfered with for the x. >> and if you are talking about, my time you have manufacturing and increase the number of things being manufactured your going -- you're going to have more mistakes. those in the industry especially those who specialize in the manufacturing aspect of vehicles, they all say the same thing. tesla is being ambitious with what they are trying to do. so you will see more problems pop up. does that mean it is a disaster and people should sell the stock. i won't tell them what to do. but at the same time, there is a bit of a knee jerk reaction today. >>what is with the auto pilot stuff. if you watched it on the web, watch it. it is true that the company said you should be in control of the vehicle at all times, blah blah blah, but the car veers. >> well they made it clear when they rolled out there are a number of parameters to pay attention when you are driving the car. one of them is that the car has
to clearly see the lane markings and when we tested out in new york city there were spots on the highway where you couldn't see the lane markers and it wasn't clear and the system wouldn't go on. it just wouldn't function. if you look at some of the videos, notice that a lot of times it is when people are about to exit. if you don't tell the car where to go, it won't know where to go. it is a wide open area. i take the videos with a big grain of salt. >> and what if it snows and the snow covers the lane. >> no tesla said the combination of the ultrasonic sensors an the camera and long-range radar will allow it to work in the snow. that is tesla's claim at this point. we'll find out this winter. >> phil, thank you. good to see you in person. give me a trade on tesla. >> i think if gets down toward 200 -- it is a time. i think this is a huge overreaction to today's news. >> every reaction to tesla is an overreaction to the outsider. >> you can expect that. whatever it is. whether it is positive or negative. today it is negative.
this is a huge move. and i know steve is into this stuff big-time. but it has been breaking down. it broke down through the 50 and the 200 day moving averages and could it get to 180 again, i wouldn't be shocked. >> which is the low. >> if it did, it is a buy. >> and switching gears, no pun intended intuitive surgical, and dom has the details. >> from the automated cars to robotic surgical systems. rising in the after hours session, like you said. and we should point out on light vol, 77,000 shares volume traded so far. shares up 7.5%. they did beat on profit and retch revenues. but year-to-date the shares are down 10%. and they did say the results were driven by an increase year-over-year in the number of the surgical procedures done with this davinci robotic division. and they claim it rose 15% from the same period last year.
so be here for intuitive surgical. but still the shares up big in the after hours session. back over to you. >> dom chu, thank you. speakers. >> this is a hot name with traders for a long time. with momentum name for a while and then some questions about the product in general. here we are at 5:09 in the after hours and that gets us close to the 200 day moving average. so tomorrow you do not want to buy this stock. do not chase this. let this settle down maybe a couple of days or a couple of weeks an then revisit this one as long as it holds up above $500 then you go back in and buy. >> coming up yahoo lower in the after hours session. we have the latest from the earnings call. into plus a beaten down dow stock could make a comeback. we'll reveal the name this hour. much more "fast money" still ahead.
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ceo marissa mayer addressed that new agreement on the call. take a listen. >> we have signed a three-year partnership with google to bolster our search capabilities. this partnership will be supplementary to the existing relationship with microsoft. the partnership with google is non nonexclusive and covered both desktop and mobile traffic in the united states and many of our primary international markets. >> now this agreement, melissa, obviously there to try to strengthen the search business rell aigship. about 390 million and undershot what analysts had been looking for. the agreement subject to review by the justice department. a couple of other quick tidbits. we've talked a lot about the parting executives from yahoo. kara swisher is all over there. mayer saying what you would expect her to say, is that the change is the result of careful planning and in her opinion leadership has never been
stronger at yahoo. and spinning off that stake in alibaba, mayors saying they are striving to complete the spinoff by q4. it might happen in january. but the company committed to making it happen as soon as possible. going to hop back on this call and bring you more headlines. back to you. >> josh lipton. thank you. colin has been on the webcast as well and on the red phone and here in studio. so colin, in terms of the joint venture with google a lot of time spent on that does that cause you to adjust any estimates? >> let's see if we get regulatory approval. i'm of the opinion that is something they should be able to get. what we've seen is the ability for them to monetize with google in north america, and think of it like burger king and mcdonald's and wendys and you have soda companies and burger vendors. you can't tell them they can't sell coca-cola. and they could not allow them not to monetize with google.
so that would be a nice bump to search. and they will continue to invest in the gemini search. and the spin they did talk about it and they said a question of when not if. they did indicate it might slide out to january because of regulatory approvals and that is a big positive. >> didn't we know they would go through that no matter what and it is a matter of what the tax implication could be. you could be strapping shareholders with that tax implications. >> correct. but what they did reaffirm that they have a strong legal opinion from their counsel which is scanton arms that this will go through as a tax-free transaction. so it is nice to see it is on track and nice to see they continue to believe that they'll be no tax liabilities. and our model, we assign 15% potential tax liability, we discount the aaba shares and there is still plenty of upside left in shares at this current
price. >> why do you think the stock hasn't responded in the after hours session then. >> because what we're hearing is mostly the news that we want. we haven't gotten a ton of negative news. and the core business is lackluster. and so for those people looking at core there is a few signs of positive traction. the display business did better. you have to like lisa snyder the senior title officer, trying to turn around the display numbers, two good quarters in a row. mostly the call has positive sentiment. we're in the q&a section right now. >> colin, thank you. colin gillis we'll check back with you later. the stock is down 1% in the after hours session. should we feel better about the spinoff since their law firm believes it will be a tax-free spinoff. >> yeah, but when. and there is so many questions left. and colin was talking about the 15% factors in and he still thinks there is upside and that is great. but the core business is weak. and that is the one thing coming through to me right now.
look the core business isn't great. we're losing executives kara swisher was talking about that. >> they have 12% of search and google needs help there and name something they can do well besides the spinoff. >> your thoughts karen? >> i think when they played scanton for that they paid top dollar one can pay a tax expert and as comfortable as one could be -- >> really? >> i do. and scanton would not give that opinion if they didn't have a good feeling. and don't know what their connections are. hopefully they have a good look into how the -- the outcome might be. >> right. so far the stock lowner the after hours session. down about 1.25%. coming up, shares of caterpillar down 20% this year but traders are depending on a cat comeback this week. a special "options action" as we head to break. check out the big names moving on the earnings reports in the after hours session. down across the board. you're watching "fast money," on
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i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this. welcome back to "fast money." i robot down more than 5% in the after-hours session. dom has this story.
>> down 5%, 25,000 shares. i robot famous for the robotic vacuums that scour your house and pick up the dirt and grime. the shares responding after an earnings beat but a narrow sales miss here and the current forecast came in lighter than analyst expectations. the company ceo did say in the statement, while they are experiencing some weakness in isolated international markets they do expect the macro impact to be temporary and they believe that global spending on robotic vacuum cleaners continue to grow and they are maintaining the leadership position and making positive comments regardless. shares down 5% in the broader content and down 10% year-to-date heading into these numbers. back over to you guys. >> thank you, dom chu. any thoughts on i robot that would get a boost. >> on a granular idea. >> i got mine, it was a gift
from my mother. >> that is me. i want to get the roomba. >> in terms of the trade though? >> here is the thing, right. >> we're talking about robotic vacuum sales throughout the world could be slowing down. that is a big picture, global slowdown going on. is it temporary or not. make that decision. and that will tell you whether or not to buy the stock. if you want to buy the stock. use 28 as the stop because that is major support for the last couple of years. >> these are not cheap. they are like 400 or 500 and up. grasso. >> but now they wax your floors too by the way. >> wax on wax off. yes. >> and from one cat to another. caterpillar shares rally 1% today. and some think it will be more when we have reports this week. mike kuo has the option. >> it is still down 40% from the high last year. and this is a stock that moves
4% an average and that is about what options are implying for this earnings. but most of the bets are to the upside. the most active options were the 72.5 calls trading at 60 cents and that is bullish that it will be up 4% by friday. >> thank you for that, mike. check out "options action" at 5:30 eastern time on fridays. and do not miss an interview with james crawford. he uses satellite imagery to uncover economic trends in china construction to crop yields. it is brought to us kurtsee of real vision tv our friend raul paul remember him. coming up next the traders tell you what they are watching tomorrow right after this break. stay tuned.
of bgc. how do you grade the earnings tonight. >> the earnings is a c minus, but the call gets a b. they gave us the information we wanted. let's go mets. >> pete? >> i'm going to say the force awakens, disney is going higher. giddy-up. >> beakers? >> we didn't get a lot of time to talk about oil, by a lot of time i mean we didn't. but if you think it is going lower, phillips 66 wants to break out. and they are doing well and bumped in there too. >> karen. >> last week a lot of earnings calls for the financials and after letting it sit i like citi the best. i think they did a good job. expenses under con kroll and i like citi right here. >> 386. >> with you talked about tesla, the videos on the autonomous drive calls and you could see mobile implicated. look for weakness. i'm still long. maybe you pick it up on the
cheap. >> i'm melissa lee. see you back here tomorrow at 5:00 for more "fast money." "fast money." don't go anywhere "mad money" with jim cramer starts right now. >> my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, i promise to help you find it. mad money starts now. hey, i'm cramer. welcome to mad money. welcome to cramerica. my job is not just to entertain you, but to teach you. tweet me @jimcramer. oh, boy, the rotation is back, and it's crazier than ever. for days now this