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tv   Fast Money  CNBC  October 27, 2015 5:00pm-6:01pm EDT

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>> a little bit off of the high. it was up 3% after the earnings release. we'll see what happens after the conference call. >> twitter moving down sharply. that does it for us here on "closing bell." thank you to all. >> this was fun. >> this was fun. >> we'll see you in the morning. >> "fast money" with simon hobbs, up next. >> and "fast money" starts right now. live from the nasdaq market society overlooking time square, i'm simon hobs in for melissa lee. live team coverage on the big earnings movers tonight continues. josh lipton on apple. that stock volatile, big time, after hours. julia boorstin on twitter, which is tanking, they bring you the latest news headlines. and if that wasn't enough. analysis, it is information here on "fast money." we're checking in with dan eyes for reaction on apple and sun trust's bob peck with his take
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on all things twitter. but we start with the biggest nim in tech -- name in tech, the most earnings report this season. it is of course apple. josh lipton just sitting down with the ceo tim cook moments ago. josh, what is the latest? >> reporter: well, simon, listen, the big question for apple investors is whether that company can grow iphone units next quarter but in to 16. skeptics will point out, listen, there are real challenges, maturing smartphone market, a slowing china and tougher comps and i did speak to ceo tim cook. he is confident they can gain those units. one, they continue to see the highest race of switchers from android. it is a point cooke made over the past few quarters. i was interested whether that had leveled off and cook said no, that switch rate continues to be very high. he said, listen, about 70% of
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the install base are on a 5 s or older and that would suggest the potential for upgrade head room ahead. and as for china. we know some worry about the slowing economy, what would that mean for apple's business. tim cook told jim cramer, remember, that china's business there was strong in july and august. cook tells me he sees no sign of a slowdown in china. he was there just last week. if he didn't watch the news, he won't even know there was a problem in china. he pointed out iphone shipments in china up 90% in the quarter. he also talked about, simon, the new upgrade program. what that is remains to be seen but he is confident it means a shorter replacement cycle. turning to other products, now iphone's cloming in around -- clocking in $10 million and that is year-over-year. and the pressure is on the consumer side of the business. consumer headwinds. consumers don't upgrade phones as fast -- the tablets as fast
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as the smartphones. and there is cannibalization. but apple's big bet is the present prize with -- enterprise with the tablet and ibm and cisco. cook said he is confident the role that tablet can play in the workplace. the conference call kicks off and i'll bring you headlines. >> the door is open with that and josh with the detail on apple. let's trade it down. >> the stock has underperformed since the august crash in late august. and we've seen big cap tech stocks trade well in that time period. so i think what is going on here is investors have shifted toward growth. and we saw that last week with amazon and google. you have to understand about apple, they are not growing double-digit off of this $230 billion revenue number. that is what you have to value the company for and i'm not certain if you look out to the fiscal year in 2016 that investors should be jumping in right here because they are expecting a rerating of this
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stock. it won't happen in my opinion. >> karen? >> i have a different opinion than dan. i'm long. i agree the growth isn't there. i love google. but apple here is not priced for extraordinary growth at right. >> right. and wasn't priced all year. so what would you expect to be the re-rating, unless you expect some sort of revenue growth ramp to back to double-digits. that is the question i have. >> i think there financial engineering that they can do. and we started to see that. and i think that you need modest growth. it wouldn't be shocking to me to have another point or two of multiple reratings. that wouldn't be crazy at all. >> let me just bring in dan for more analysis from fbr capital. he is monitoring the earnings call. very importantly, we should get to this and that is where we need an analyst to cut through the numbers. the major question is whether or not foep growth or sales would turn flat to negative. your reading, your calculation on what they are saying, correct
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me if i'm wrong, is that we don't see that yet from the company. that is not their sent roll projection. how far out can we see that? >> that is the key here. is that the line in the sand was looking at december guidance. fears they would guide lower versus the street. instead they bracket it. it looks like the $75 million number. and this was a huge prove-me quarter for apple. a lot of white-knuckles going in. 20% of investors thought the stock would be up. and this is down. so there is still fuel in the tank going into december and i think proving skeptics wrong and that is key on the conference call. china growth, the trajectory going forward and ipad reversal and the watch going into the holidays. >> so what is the recommendation, dan, what is the bottom line here. >> the bottom line is you buy this xe times x cash. that was a huge prove me quarter. it was a seminole event. i view it up and to the right from here. and especially as we bridge the gap to iphone 7 coming out later
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in 2016, with a lot of the products out there from streaming to wearables, this is the quarter investors were expecting a downfall from apple. >> we have the luxury with you for the rest of the hour. stay with us. dan from fbr capital. let's turn our attention to a big mover. twitter tanking on the earnings. the call getting underway now. julia boorstin has the details on what we know so far. >> the earnings call which is being broadcast via live streaming video on perry scope, jack dorsey kicked things off by trying to focus attention on twitter beyond the user base of 320 million users, including sms, using it via text. there are additional 500 million logged out users, who see tweets without logging into the service. he is focused on three things, more disciplined execution and simplified services and better communicating the value.
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it is getting easier to use every week. he gave a shout out to the moments feature which launched after the end of the quarter so there won't be impact of moments on twitter's moments just yet. the ceo and coo adam bane are also on the call. he gave a shoutout to bane saying he will join him on the calls and a shout out to the newly appointed chairman. board. this is dorsey's first call since he became permanent ceo of twitter. there is focus on what he will say to reassure investors. the stock is down 11.5%. >> he has not reassured investors. and those tuning in, what the hell. >> bob speck will speak about this. they should never have come out with monthly average users. that is not the metric you should look at them at. they have 500 people who are not active but watch or look at twitter. look at the ad engagement, up 167% year-over-year. those are real numbers. so i think they have a messaging
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problem more than they have a product problem. and i think they'll figure it out. so i get the quarter was lousy and the stock is down 10%. but this might be the quarter that finally turns the ship around in terms of where they are going and where they are headed. they have new products to roll out. i say you buy right here. >> the quarter wasn't lousy. but what is jack dorsey going to do. he has a ship, you don't have to turn it. and without the focus. and if i look at the focus in terms of revenue growth, it is about growing revenue growth per user and that is growing substantially. if you look at the digital ad spending world, twitter, make month mistake, they are a distant fourth to the other big three but they are in the game and majorly in the game and it is early in the game. so to say the stock is going lower, is missing on a major opportunity. i'm long on the stock. i'm not surprised by the guidance. the monetization is effective and i would think about buying
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more tomorrow. >> let's get more analysis. bob peck joins us from sun trust humphrey. bob, of course, a lot of people realize that jack dorsey got the job and got the job in addition running square through the imminent ipo because of what he promised the board he would do in 2016, the product enhancements that tim is talking about. can we look through the guidance and the share price move now? >> i think that is exactly right. as tim points out. the quarter was great. ad revenues grow 60%, in line with the 70% number. so right where the street was looking for. ebidta beat. and it was about the guide. and you've been growing it in high 60s and it is in 409s right now. and what to look for on the call. the impact of the new initiatives, what that does to traffic. the roi on the advertising and can he articulate the strategy and the vision for the company.
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as julia pointed out, it is important to paint the picture of a billion or so reach of people every or so month when you include the logged out users and that includes the mean of the 300,000 right now. >> what is the advice. >> we would be buyers. we have a $38 on the stock. you look through the weak guide which looks conservative. >> yes, it looks conservative. and with the stock down of more than 10%. it is worth about $17 billion. when you think about the silliness going on amongst the private market, these unicorns, this thing is way too scarce of a social media property to trade at this valuation. i agree. i am long. i am disappointed but i did not expect them to give good guidance. >> and it sounds like you think it should be priced with the takeover position. when the ceo thing was happening, that would have been a great time. and i think the board will give
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them some time and they are not for sale. >> i wasn't saying. >> that but investors should give them some time to get things right. they have a whole new group of management in place. let's give them time. >> speaking of busy. it is a busy evening on "fast money." a slew of other earnings working through the evening. some of the stocks on the move, gilead, panera, all valuable and what they mean for the broader stock market rally. and later, ibm big blue disclosing it being investigated by the s.e.c. this is an opportunity or a sign of more pain ahead. a crazy, busy "fast money" is back after this. (vo) what does the world run on? it runs on optimism. it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected
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welcome back to "fast money." ceo of apple tim cook speaking on the conference call saying that sales of the apple watch was ahead of expectations. tim cook also saying that sales of the apple watch were up sequentially as well as ahead of expectations. simon, of course, watch sales are lumped under the other revenue for apple and that came in roughly around $3 billion.
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samon. >> let's trade that. who thinks this is a red herring for investors. >> the story is not the story. this is a one product company. this is clearly about the iphone units. having said that, watch it ramping up next year. some of the product categories are starting to mean something. they are certainly worth listening to but that is not why your trading the stock. >> they make the stores look good. rows and rows. to another earnings, gilead sinking after hours and meg tirrell has more on that. >> despite a big beat in the third quarter on both eps and revenue and on the big hepatitis c, the stock is falling after hours, down 2%. analysts telling me people because are reacting to the fact that the hepatitis c growth new starts are slowing. we saw that in the first quarter -- in the third quarter, sales of $4.8 billion down from $4.9 billion in the second quarter.
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so seeing those level off a little bit. on the call the company saying that patient starts in the first quarter were extremely high and the pace that we're seeing toward the end of the year is what we'll see going into 2016. a ton of questions about what they will do with all of the cash. they reported $25 billion as of the third quarter. so a lot of questions about what they are potentially going to buy. can you see there it is rising a ton since last year. but there is no question. so we'll be back over to you. >> thank you very much. more breaking news. this time from the department of defense. jane wells is live in boulder, colorado. jane, welcome. >> reporter: simon, a huge win for northrup grumab. according to the pentagon they have won the contract for the new long-range strike bomber. this is a potential contract that would evenly be worth $100 billion to build as many as 80 of these bombers. losing is a lockheed boeing team effort. this is big for northrup because
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if they had not won this contract, it might have had to get out of the manned aircraft business and do uavs. even though there wasn't a full budget by the defense defenda defendant -- defense department, they could fund the bomber. we know there could be a manned and unmanned version. they hope to have it flying in ten years but that depends on congress continuing to fund it through coming years and as we know, these things have always been problematic. but in the short-term, a huge win for northrup. we'll have to see, whether the lockheed-boeing team challenges that. the pentagon is holding a news conference right now. back to you. >> thank you, guy, how do you trade this. >> northrup we mention from time to time and we talk about it all of the time with tim and it is going from 100 to 180 in a nano
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second and here we are all-time high today and obviously extending that now. if lockheed martin sells off, but if you buy on weakness, that made an all-time high again today. the stocks even with the valuations are bullet-proof. >> $100 billion contract. a big business. defense spending is sure to be a hot topic tomorrow at the gop debate. that is live here on cnbc. coverage starts with john, becky at 5:00 eastern. you don't want to miss it. still ahead, two big stories, two very different stock moves. ibm under investigation by the s.e.c. sending that stock plunging. and star, soaring on potential takeover talks out of china. how to profit off of both of those, you're watching "fast money" on cnbc, first in business worldwide. in the meantime, here is what else is coming up tonight on "fast." i'm melting -- melting.
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>> what a world. what a world. but that pretty much described oil this week. and it could be serving up a warning to stocks. we'll explain. plus -- which one of these stocks do traders except to have a massive move on earnings tomorrow. the answer could make you a lot of money and we'll reveal when "fast money" returns. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.
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welcome back to "fast money." i'm seema mody with breaking news. walgreens announces plan to buy rite aid for $17.2 billion, an all crash transaction and represents a 48% premium to the closing price yesterday. rite aid shareholders are receive $9 a share. today's announcement is another step in the alliance of global development and continues our profitable growth strategy. but simon, again, a deal here. walgreens boots alliance to acquire rite aid for $17.2 billion. back to you. >> thank you, seema. karen. >> this is the 17th time the rumor about rite aid is out there. i think it is true. it is disappointing. it will take time for them to
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shed assets. >> nothing to see here. >> i would see it move. >> but it already moved. >> star wood hotels getting a huge boost on the report that at least three -- three big chinese companies -- three chinese companies are vying to win beijing's approval to become the one and only bidder for the hotel chain. kicking off the top trades, if beijing gives the green light, it would be the biggest ever chinese takeover of a u.s. company. that is a lot of questions there. >> and currently the market it trades at, it would be a premium. and they report earnings tomorrow morning. >> starwood does. >> hot, the symbol there. and if there is a selloff, on the quarter, i think you have to buy the stock because as you mentioned, you have three chinese companies and domestic players in there. >> i've heard windham out there.
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>> guy, for six months it has been for sale. >> this article didn't come out of nowhere. this is out there or is it real. i mean the news oust of the journal today had a h some substance to it and maybe it will get other bidders involved. >> and there is other division here. and there is talk about spinning off different assets. there is different strategies here. i am skeptical on that deal because we heard about them bidding aggressively in the entire travel space. it was a big deal yesterday. but i don't see that being the driver for the stock. i think the revenue per units are going well. and the global growth is alive and well. >> and i'm not sure if we can show the long-term chart for the lodging cycles but the stock has turned. many coming in today were down 20-25% in anticipation of the 18 months down the line. if the ceo wants to sell, he has to do it quickly because the stocks are not moving in his direction. >> well, that is right. s he is not going to do it just on the stock price.
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they look at the business model and as a partner and can a chinese partner be a right place to grow, i'm not so sure. shares of ibm sinking on the -- or the shock announcement from the company itself it has become the target of an s.e.c. investigation. the tech giant surprising investors claiming the s.e.c. is looking into revenue recognition in some transactions that took place in the united states, the u.k. and ireland. dan, this is worrying out of big blue. >> it is worrying when you think about it. the company revenues peaked a few years ago at $107 billion. they are expected to do $82 billion this year. so revenues have been coming down dramatically. they are down 24% over that time period. and they reported q3 earnings on october 19th and didn't say anything about this. two hours before this announcement came out, the company added $4 billion to the capital return plan which seemed goofy to me. so here is the thing. it is round trip -- a five year
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move. a new five-year low today and warren buffett is the largest shareholder with 8% here. what is the heck is going on here. something has to give. at least in this level or something. >> when you say it is cheap, does that mean you see value. >> well listen, it has a difld yield that is almost 4%. they buy back the stock. it trades at half of the multiple on p.e. terms so it screams as cheap, how is that. >> okay. >> this is epic. i would underscore the fact this is a company doing financial engineer for a long time and not growing the top line. that is something to be concerned about but the jury is way, way out on this one. >> cnbc will host the republican presidential debate tomorrow at this time with john, becky and coverage begins at 5:00 eastern. that is a way of saying you guys are free for tomorrow. >> i think that too. >> you're not on air. >> we're going to be watching texas will be great. number one. >> coming up, apple moving
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higher after hours. we'll hear from tim cook on what drove the quarter. >> and twitter shares falling. now both calls officially half-way through and we'll bring you the latest. and did i mention that twitter shares are tanking but traders are betting big on another social name. we'll tell you which one it is when "fast money" returns. the only way to get better is to challenge yourself,
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welcome back to "fast money." i'm simon hobbs. in a down day on the street. as the dow, nasdaq and the s&p all finish in the red. crumbling crude prices taking a bite out of energy stocks. while the dow was hit hard by ibm, blue sliding on news that the s.e.c. is officially looking into its accounting practices. here is what is coming up in the second half of "fast money" this evening. we have your early take on go pro earnings. why the camera action company could taken vestors on a wild ride. plus is this woman about to wreak havoc on your portfolio? we'll tell you how to protect yourself. but first we start with apple. the call now half way through. we head over to josh lipton. >> well, simon, that conference
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call apple ceo tim cook pointed out the highlights of the fiscal year. take a listen to what he had to say to analysts. >> today we're reporting a very strong finish to a record-breaking year and would you like to reflect on some of the highlights. prior to our fiscal year in september, we are proud to report revenue of $234 billion, up over 2014. this is the largest absolute retch growth ever. >> investors ask can cook keep the momentum going. highlights from the call so far. >> pointing out iphone average selling price 660 drms, up $67 year-over-year due to the favorable mix. cook and the ceo pointing out the effort in the enterprise market. $25 billion, saying that was up 40% year-over-year. taking note of the new
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partnerships with ibm. and also a big focus on apple, opening up seven new stores in the quarter. now more than 460 in total. they are saying they'll have 40 stores in greater china but the middle of next year. the q&a portion just starting and i'll hop back on and bring you more headlines as they come. back to you. >> thank you very much. and $206 billion in the bank. and dan ives is plugged into the call. what do you think is important at this stage? >> i think right now, the big focus is they just confirmed year-over-year growth for q1. that was a line in the sand. guys were focused on if they would ad conservatively. that is the battleground. and now the big focus is what is next if terms of the streaming and watch and wearables and also ipad, you start to see that turn now with the focus on the enterprise. you're going to start to see negative growth reverse and now
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start to show year-over-year. so it feels like it was a white-knuckle period going into this call and i would definitely call it better than feared. and now the street starts to revisit the renaissance of growth that could happen on 6s as this bridges the gap from the iphone 6 and the hangover to iphone 7 and the new growth areas. >> dan, you are not a believer, are you? >> i don't think there is anything wrong with this quarter. and i think next quarter is probably as good as it gets for the time being. because once you get by the monstrous 6s cycle in the season, you'll have a drapout in the march quarter and people will look at a massive redescribe for the iphone 7. and then there is nothing else going on in that product portfolio. i know my twitter will blow up on this one. but there is nothing going on. better than expected watches fell into was $3 billion in total revenue on a $51 billion number. it is not moving the needle. so they are going to really need
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to see the switches and emerging markets pick up for the story to continue to work. >> unless you believe the watch kind of positions them in a luxury space and then they buy the iphone. >> no. it is a one product phone. but why are people throwing the china numbers outside of the window. people look to find the down side to the china. and they had extra numbers when it was screwing the numbers and that is the whole reason you are excited about apple. they growing in china unlike anywhere. they were at 60% of the revenue in delta in the last few quarters. that is something where you might get growth ahead of the 7 release. and that is the reason they love to beat up china. and next they tell us china's economy is the problem. >> and he said that. if he didn't listen to the news, i wouldn't know there was wrong going on in china. >> and i would push back and say don't confuse with the health of the chinese economy -- like
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apple and under armour and it is not tied to the growth of apple in china. it is exclusive. people are reaching for phones and starbucks and under armour. it doesn't mean the numbers are as good as they say. >> back to twitter. tanking. and the conference call is under way and julia boorstin is listening in. julia. >> the ceo and cfo are speaking directly to investors in a perry scope feed. dorsey is looking to press on improving the product and communicating twitter's value. there is a lot of talk on the recent launch on moment which dorsey said could rule advertising and the first tv campaign is a real shift in twitter's approach to the service. and he also noted that moments have launched to lake to impact the q3 numbers. >> you can find moments in our april on twitter.com and
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embedded in sites all over the web. our focus with moments is making them easy to discover and getting people into them right when they open twitter and rolling out globalization globally beyond the united states. >> the ceo adam bane took over after dorsey focusing on the potential of video and it has been successful for twitter. noting that native video views are up 150 times in the past six months and they have the highest video standard in the industry which means they only charge advertises if people watch the videos all the way through. he said that marketers are seeing a 7 times increase in video explosion. so people are watching the videos which means they are driving higher return on investment. he also noted that in the q4 the company will open new video focus inventory with a launch of promoted moments. bane noted that twitter now has over 100,000 active advertisers and identified over 9 million
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small and medium sized businesses on twitter that are natural potential advertisers. anthony noto spoke and he talked about the growth in off network advertising as the twitter benefits that aren't directly on the twitter platform. adam bane added they are making money on the logged out users, the additional 5 million people see tweets without logging in. and with the user growth not really happening, it makes sense to focus on broader potential business without massive growth or significant growth even of its core user base. simon. >> okay, julia boorstin, listening to that and watching periscope. and bob is with us. what is important here. i feel bombarded with stuff? >> yeah. i think the key here is you have a couple of tiny things in the guidance and revenue pushes out from a couple of clicks from q3 to q4, and it is too early to guide on momentum, perry skoep
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and vine and into google desk stop search and this all just started which leads us to believe the initial guidance is going to be conservative and from the high 60s into the 40s. i think that is conservative there. looking forward. i think the stock will reside off the proof of the execution. are these things actually working. they pointed out they are just starting to monetize the 800 -- they have 500 million users that logged off. and that reaches up to 800 million. and stock up is 30% from recent lows. so i think what you are seeing in the market rielg now is pairing back and taking gains as we look for proof of execution here in q4. >> bob, this is not a new company. it has been on the market now -- i think it is november 2003 that is ipoed, and it has been around for a public company now for two years. >> 2013. >> forgive me. two years. so they are close to the ipo price here, aren't they.
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>> they are. about 10% from where we upgraded it. if you had just seen this cadence of product improvements starting to roll out, which just started over the last couple of moments, periscope and vine. and it is not so much the monetization that helps the topline growth but the reinvigoration of user which is important as well. >> thank you. >> tim? >> i would say that the justification for the downward guidance is something they have trying to give you here. that is fine. be conservative. but when i look at the mau's, x the fast track folks. these numbers came in better than people expects. to say that things are getting worse, i go back to the advertising. their a distant fourth but a large grower in the ad space and they have plenty of leg ahead tv. >> we have a busy night. back to headquarters. seem yu mody has more on hp enterprise. >> that is right. it is part of the business hp is
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spinning off will be added to the s&p 500 after the close of trade on friday october 30th. it will be led by meg hitman replaced by hudson city acquired by a bank. simon. >> it is a 1% move. but you are right, the chart looks dramatic. who would like to trade this. >> i don't know if it is all that interesting. >> i just said it. i'm sure they are thrilled there at affordable care aheadquarter. i think this is a sizable move long-term. >> anybody else find this remotely interesting. >> i think the callous around hewlett were about the spinoff and the cost cutting that are well in the stock price and there is not a lot to do. i think it is a sideways trade. the market is making a change. it is making it. >> and still ahead, is the fed ready to drom a bop shell on investors tomorrow. we'll show you the uneasy signs
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in the market that could spell trouble. >> what do go pro, am gen and tesoro have in common. one could see a massive move on earnings tomorrow and we'll tell you which name traders think it is and how you can profit. much more "fast" up next. h afri. this is an opportunity to right that wrong. the idea was to bring capital into the affordable housing space in south africa, with a fund that offers families of modest income safe and good accommodation. citi got involved very early on and showed an enormous commitment. and that gave other investors confidence. citi's really unique, because they bring deep understanding of what's happening in africa. i really believe we only live once, and so you need to take an idea that you have and go for it. you have the opportunity to say,
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we're back with "fast money." we'll we're obsessing about apple. crude fell 2%. transportation stocks got whacked, all as investors weigh what could come out of tome's fed statements. are we too kplcomplacent here? >> i think we are. i think anyone is nervous that they could say anything hawkish. and they are dovish whether there is nothing going on. i think that is problem what we get here. but i'm of the belief that one of the reasons the market is struggling because people realize that the market is bigger than they realize and the volatility is picking up today -- >> could she pull rank and say we'll raise rates in december unless there is a further
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deterioration. >> they don't have to have a conference. they will watch conditions and see how they change. but can she make a statement that is hawkish, yes. >> why would she. why back herself into a corner. >> because she won't do anything, eventually. what i said is the fed when there is nothing to do or easiest to do, they can be hawkish. when it is time to act, they do nothing. and that is easy to do right now. it is easier to be hawkish. >> and so i feel like we shouted you down there -- >> i shouted her down. >> but the point we're making is they keep saying we're live, we're data dependent. >> and the data keeps changing. so i feel like she -- to make any kind of -- we'll do it in december or whatever, they are clearly not ready to do that. so what does it get her in. >> the data doesn't get better. so when you think back to the september 17th meeting, the commentary was dovish. and that stole the market off. so bad news was bad news. so bad news for the economy was bad news for the stock market and we went back and almost
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tested the august lows. so to me if you have a situation where the commentary is increasingly dovish given what we've seen around the globe, we have a problem because the market rallied 10% off the news. >> to dan's point, i think you look at the transports today and it wasn't just airlines, it was airline and rails and ups and fedex, the triple whammy today for transports which has not traded well now for quite sometime. we saw transports lead the s&p a few months ago and i'm wondering if it is setting up for similar now. it feels that way. >> and tomorrow it is not all about the fed on cnbc. we're proud to host the republican presidential debate. coverage beginning right here at 5:00 p.m. here on cnbc. coming up, the one stock that traders are betting could soar 10% on earnings this week. you're watching "fast money" on cnbc, first in business worldwide. the only way to get better is to challenge yourself,
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ahh... steve, other than making me move stuff, ces. 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."
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acamai shares week. after a poor revenue and guidance. they expect lower revenue from three of the largest u.s. media accounts. they continue to compete with nop traditional players in the cloud and content space including amazon and netflix. third quarter results did beat on the top and bottom line but shares down more than 14% after hours. simon. >> that is a big move. tim. >> the stock has been caught in a move, that takes them below the bomb. it is a difficult time. that guidance was terrible. we're in a spice, where we priced a lot of great news into the cloud and these guys on valuation, it should have been sold on that weakness. >> from one former high flier to another one. go pro reports tomorrow. here is what to expect in the earnings edge. >> this is andrew for "fast money"'s earnings edge. we're forecasting only 8% growth of revenue. that is well below the street. second thing we're looking
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forward to is the eps number. and we think it would come well below the street. and third thing is any kind of news regarding the media strategy. we do expect a double-digit move in one direction or the other. we think if they beat what the estimates are, i think it is negative enough if they come in slightly or in line the stock will start to rally as people turn their focus to quadcopters in 2016. if it comes in lighter, where the eps misses off of the on ex returns we think the stock could retest the 52 week lows. this is andrew for "fast money"'s earnings edge. wow! >> and speaking of go pro. down. what is your take? >> here is the thing. expectations are low. and short-term interest is high. so the sentiment is poor. but the ipo price has a date with 24. if they get some things up, they may guide up. if you see value in this, and it is almost at a value stage,
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believe it or not, you want to buy it back toward the mid-20s. >> great terminology. thank you. >> i like that line. >> killing it. >> it is not just go pro, we have other big earnings. biotech amgen is out tomorrow. >> what is your thinking? >> i like am gen. when you compare it to the big cap pharma names. it has gotten up in the -- the m-word. the maelstrom of the biotech word. >> that georgia tech education. >> we went to jesuit education, but it cheap and you own it in earnings. >> and tesoro is next up. tim. >> the gasoline product and there is a flood of it. we're in a seasonal time. there is a place where the crack spreads have been starting to narrow a little bit. that is pressure. but quarter over quarter, the crack spreads are still better than the second quarter.
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i expect these guys could hit a record quarter. and i think if you are looking at the stape, the place that -- the space, the place that continues to work is the over weight refiners where it is difficult to own e and p, even though i would. i think it will be record and good numbers and trading up to 110 -- >> and then on thursday after the close, linked in reports down, is it the auction's market crisis. dan, are the markets pricing to the top. >> they are. and the options market is implying a 10% move. and that is versus the fourth quarter average of about 13%. so linked in moves a whole heck of a lot. when you see the way twitter is moving in the after market, you have to assume that a high valuation stock is priced for perfection. when you come over here and look at the one-year chart, you see gaps all over the place here. these are the last three quarters. so there was one trade that caught me eye today when it was
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trading about 200 and the options trader bought 900 of the october 30th weekly 220, 230 qualify spreads, paying $3 for that. that is the mass risk and making up to $7 if the stock is 230 or higher. when you look at that on a one year chart, that is not risky. 3 to make 7 if the stock is up to 230. and the options market is saying there is only about a 25% probability that 230 is the number on friday afternoon. and i just want to make one other point here. and here is the three-year chart of linked in. it has been traded in a volatile range here. so 230 is a logical level and using options as a volatile event is the way to play especially when you consider twitter volatility tonight. >> would you make a great teacher. >> that was great. >> so great.
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>> on the slides. >> did you hear that? >> see that, dab knows a low. that is regis philbin. >> and check out "options action" at 5:30 p.m. on friday. coming up tonight, cramer has an exclusive with the ceo of spirit. and cramer is offering answers on the oil chart and making a call on t-mobile's post earnings tumble. you don't want to miss it. tonight, "mad money." up next, the final grade on apple and twitter. plus the last word from am gen, and ives, with for "fast money" after this.
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good evening, it is time for the final grade on apple's earnings. dan ives, what would you give them? >> a b minus, c-plus quarter. still gas in the tank for coke going into 2016. >> on the on the right, bob, what is your expectation for twitter. >> a lot of apgsality going forward but a week guide. a b minus.
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>> thank you for your help. let's go around the horn with the traders on final grades of tonight's two top earnings. tim. >> let's go mets. b minus. i'll say no more. >> and is that twip or apple. >> there is a twitter icon up there, simon. come on. >> on apple. agree with dan, i think the quarter was a b plus and i think they did a nice job. i think the stock is dead money from here on out so a mine minus for the time being here a. and you don't have to be a registered republican to watch the debate tomorrow in america. >> good. i'm not registered for anything at all. >> as a foreign citizen, i want to make sure. >> i'm going with apple. pass-fail grade, it was a pass. the bar was low going in. it was good enough. it is lowish coming out. >> and by early in the morning and then bringing it at 5:00. excellent job. i go with gilead by the way. i don't know what more they need
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to do except put the $25 billion to work. they do that, the stock goes to 120, i give it an a. >> thank you very much. nice to be here today. i'm simon hobbs. fast is off tomorrow. but tune in for the >> 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 and i promise to help you find it. "mad money" starts now. >> hey i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you money. my job is not just to entertain but educate and teach you. call me or tweet me @jimcramer. expectations for individual companies right now are all over the place. and when that happens,

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