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tv   Fast Money  CNBC  September 6, 2016 5:00pm-6:01pm EDT

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right shoe or the right technology. >> and the right athletes. >> that's right. >> see how steph curry resognates on the trip to asia. thank you so much for joining us. michael santoli, stephanie link, that does it for us on this record setting day for the nasdaq. "fast money" begins right now. >> "fast money" starts right now. live from the nasdaq marksite, melissa lee. our trards on the desk -- tonight trk countdown is on for the biggest apple event of the year. it's not the phone or any gadget that's going get traders excited. plus, the pit boss says there is one large cap tech stock a screaming buy right u no. he will will give us that name and later, one group of left for dead stocks is suddenly surging and may be more than just a dead cat bounce. first, a record close for the nasdaq. it was led by one of the stocks, all time highs, you know the them as the fab, amazon,
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netflix, alphabet. all this happening as soft economic continues to pour in. could growth stocks be your best bet right now? guy? >> i don't know if growth stocks are your best bet. let eat taos about these four names now. across the board, we've all liked facebook, but we've been unanimous on our love. dan shaking his head no and he'll tell you it's a little too rich on valuation. but i think the world wily find ourselves in currently lends itself to facebook. number one is facebook. netflix, downgraded the name. another says the original con is underappreciated. last time the stock report ed, t cratered, but held 95. it's traded well since. i think net flick felix has some well. google, not sold on it either way and amazon again is ridiculously valued, but you can't argue with the price. >> netflix is the only stock in
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there that doesn't have a motor. for now, the very high, top of the valuation bb absurd. i think we're out of place here, seeing saturation in the core market. seeing international adoption not be what it was. of all these stocks, google to me makes so much more sense that the other player, even though there's no disputing that amazon and facebook were improving their last two quarters. you don't get out of those stocks, but google to me, 22, 23 times giving you about the same kind of growth is the best play with multiple businesses that aren't even really in the valuation. >> how about the shift from advertising? you were shaking your head, i'm sure you were going to poke a bunch of holes. i look at facebook and what this company is able to do. you look at the growth prospects, the 2 billion give or take users. they continue to grow. the ad growth is is absolutely increde bable. people are shifting from tv and
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the rest of the media areas to the social world. when you look at the acquisitions they've made, the montization t ten-year plan of zuckerberg, i know that the valuation is high. this is a groout stock with plenty of growth, plenty of runway in front of it. of all these names, i put that one number one. google, number two. netflix does not have a mote, so there is some headaches there. i like all three of these names. not the fourth. >> you're not alone. this is the fairly universal view and it goes back to last fall and i remember stan miller obviously the famed hedge fund manager says he loves these names. like an amazon, a facebook. because they can actually do well in a nominal growth environment where a lot of cyclical stocks hit. they're piling money as you've said, back into the their businesses. they have long-term views and people don't care about valuation. that brings me to netflix. that was the story a few years
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ago, then you saw these subscriber growth methods deaccelerate. the highest that it's been in the last five years. that international growth is falling, so the o moe, i think you have to use netflix as a guide. the other names, they're megacaps. knelt net felix is a $45 billion market cap. it's in a different category. if history tells us anything, at some point, these growth stocks that are loved, will turn around. or have one -- >> stop growing. especially at the rate they are. but you look at the growth rate, you see out of fn facebook, this has to impress you to some degree. you can use google where they had certain deacceleration. it's loved and stopped going up. >> the digital ad space for google and amazon, all their leadership, to assume they can be the only two players out there dominating still an youn known market cap of the ability to monotize digital ad space. at some point, you get to a place where the valuation and market cap, what else can you do
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here. >> don't we have to overlay a brigger question on, which is aren't the same factors that are puching utilities and telecom to what some consider rich valuations or even staples into the same reason why people are flocking to these growth stocks. people are searching for either that yield from a dividend or that gain in terms of stock appreciation and growth. >> which not to get all wonky, but to the ism, the manufacturing numbers have been disappointing. i think that's a fair word, so when wha a lot has done is taking the fed off the table i don't want to have that conversation, but that's what you saw today. the economy is challenged is a fair word and people are searching for yield and searching for it in the form of tillties. >> is there anything wrong with getting growth and the dividend and fundamental story behind you? you look to the chips, look at intel, new 52-week highs. micron continues to run.
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texas instruments, in all different aspects including the -- going to find valuations extremely cheap. and growth and yield in many cases. >> i would make an argument that these are cyclicals. lt if you're seeing the stocks run, taking the cyclical stories. housing and the effect for the broader economy, what if facebook and google are strong, the implications to me are that the consumer is is strong. >> are not cooperating? >> but i disagree with that statement. it doesn't really, i think that's a hard thing from that. if you look at the names that are doing so well. >> that's a reflection on the consumer. i think it has more to do with the secular shift that's going on in the advertising space. when you look at the way some of these stocks act, to me, you know, i look at amazon. i look at facebook and they speak to the issues that our dmi
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has about deflation or disinflation. you know what i'm saying in a way? to me, i think everyone's crowded in these names for the future. yet they're a huge drag on productivity, inflation and that sort of thing. those are things we may never get back, so to me, i think it's -- >> technology's bad. >> i just think it's pretty well concentrated among $2 trillion in market cap, about a half a dozen stocks. >> dot to settle this debate the charts. carter worth is at the smart board. what do you have? >> the conversation, what the data shows is that growth outperforms when the business cycle rolls over. ism also stalled. peak autos and employment. i want to look at the few charts, the new outperformance again of growth is a negative, not a positive. these are two, got the first and second two panelled chart.
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this is the s&p pure panelled index. those stocks in value, pulled out from the s&p. top hill. and it's that index relative performance that the s&p. so even as we've moved higher, we've not made it back to the high, one and two, even as you move higher, you've been underperforming the market, so, it actually has been a period now since april, where value has not been leading. it's been under performing. here is the exact opposite. this is s&p 500 pure growth index and what we know is it did make the new high. and it is not only going to absolute, it's going up relative, so you have sort of the perfect storm. it's what happened in 2015 when the market went nowhere. you had growth working. this happens again, but we made no progress. when it rolls over again, you get big trouble. l let's talk about -- those are the four names, i would say
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this. looks like that. meaning you have a well defined trend and a breakout. but again, the action. it's not a positive in principle to negative for the market. >> all right, what do you think? should we invite him? do we have more questions for carter? come on, carter. come on over to the desk. pull the chair out. >> sir. >> why is a breakout a bad thing? >> when people are concerned, they do the three things you said. they want to find, give me yield. that's a defensive type of behavior. give me stability, meaning if you don't dispoint me, consolation, i'll play you multiple 25. or growth. it's nothing to do with a business cycle. when people are feeling em boldened, they go for beta,
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energy, caterpillar and the bottom. this behooifr, in 2015, we went nowhere. we had a bifurcated market. signals have come to life. now, we're revering again, but as the rotation, the markets made no progress. the russell 3000 is up 1.4% in 16 months, so all tho rotation, if this happens the next time, which is that the growth rolls over again and cyclicals make new lows, you take the market down substantially. >> i don't agree. we haven't progress. this is a lement of people market. looking back over the last 16 months, it's all relative to where people think the economy is and where we've come from. obviously, there's been a lot of trading opportunities in there. i totally agree we'd be sitting here in late fall 2015 talking about bank stocks and nothing else and that was a harbinger of bad things to come. how about the financials? the rails? the consumer.
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these things are not fall iing d dying. outside of today -- >> consumer's very important. consumer's relative performance to the market has been done. that sub sector, but the big issue is this. if you had to make one of four choices, real estate, gold, bonds or stocks? the single worst thing you could have done in the last year and a half is being in stock. it's a disaster. >> if you've been trading it aggressively. >> even if you held it, you're up 1.4% and not paid for the rest of the draw downs. are we on the cusp of a new, important goal or is this quite -- >> peekish? >> piquish profits, revenues. auto sales. employment. >> cater, thank you. pete. you don't care about piquish.
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you like facebook? >> i like facebook. i agree with carter, i think with the low volatility, you protect yourself, still be in the market in some way shape or form, and stock relaplacement. getting option, taking some of these poss off, ifst not there, you don't have the same exposure. >> you wonder, do financials need rates to go up in order for this rally to continue? because i still think especially today, you saw ten-year yields went to the 162 level. back down to the low 150s. i think yields go down, i would submit at these levels, they do. >> a news alert on bill ackmaac. >> disclosing a new stake in chipotle, in a filing saying it owns 9.9%. once again, thises a new stake. they also kaulded the company undervalued an attractive and
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said they're going excuse me engage in discussions with the board in management. as you can see, the stock up nearly 7% this after hours day. >> thank you very much. remember, bill ackman sold a sizable stake. i think in canadian in order to find higher beta plays. could this be the answer? >> well, it's a higher beta play. you think they can overcome what are still some possibly structural risks to the business. think that the safety concerns were drawn too fast, but if you look at the stock, stock is bottomed around 405. technically, it's held up well. it's gone through this period where actually, you can make an argument that the market is figuring out even what the company can't. so i wouldn't run from this stock here. it's interesting. >> are you happy? or sad? how do you feel? bill ackman getting involved. >> after some of the thipgs that
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have gone on the past year between herbalife and valiant, you say, okay, these guys make large, concentrated bets, don't have a huge portfolio and have gotten some of these dead wrong. to me, as an investor, i wouldn't be buying the stock here up 7%, but tim's levels are correct and it's going to take just one same store sales announcement. one uptick to get people thinking about this. >> sort of binary. uptick or a down tick. >> i suspect that the norovirus, e. coli stuff is behind them. it's going to take some time. >> people are going to start going back. maybe the headlines are behind, but people have moved on. it did hold the level, but the stock is still not cheap. it's not like bill ackman has a great track record. it's up 7% on the back. i understand what's going on. because the short interest in the stock alone dictates that people have to -- >> no reason to chase this name. you wait for the same store s e
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sales to increase. once you see that move, it won't be the end of that move because then, you'll start to see potentially that trend i think you can wait and you're not chasing that. >> if we didn't get this headline about bill ackman, would we be talking about this as a great buy? >> i don't think we're having a conversation about bill ackman. i think we're truly trying to look at the company. look at stock, the charts. leave aside 7%. don't buy it today and there's risk to the upside. >> coming up, why morgan freeman and pete suddenly in a bitter feud. nothing to do with -- >> take it easy. >> but it has something to do with the stock we talk about a lot. plus, donald trump said something about the markets that might sound a little bit familiar to "fast money" fans. we'll explain what has all of wall street talking and apple fans are gearing up for a big day tomorrow, but it could be
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what they're not expect that could move the stock the most. we'll tell you what that is when "fast money" returns. e w thre do lsmarter? e w thre ah, .you'reno aryoveing? hochoes ci don't ow.ah. okay.uh, oad laus)sba iyootap? w, youug.th'she w thwod s. we, e wos chgi.
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tesla ceo elon musk is on
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edge and that kixs off our top trades tonight. asking employees to cut costs woo investors. the automaker still has its share of fans, including this big screen star. >> i own tesla. >> tesla. >> i'm a huge fan of elon musk's. and i think he's got the most incredibly bold thinking ideas about where we can go technologically. he's you know, what he's done is nobody else ever done. he's landed a rocket ship, so it's reusable. you know what a feat that is? now, we're going to be going to mars, delivering stuff to people who are going to be settling there just like they settled the old west. and bringing those ships back and landing them and reloading them. >> will tesla need more than buy
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rs to turn it around? >> andy, like in shawshank. so powerful. >> really is. >> and that's the problem here. elon musk is a visionary and he's someone that's been able to execute, but this is stock, we've said this. this is a trillion dollar opportunity. second quarter, if you're asking, cutting the coffee machines and the water coolers inside the company, tells you where the cash burn is a that continues to miss and miss and miss. i love the battery. it's part of the business that's probably priced the most effectively and priced most in line and i think it should be priced where it is. the other rest of the company is way overpriced. solarcity to me, is only saves elon musk aura and without that, i think he's got bigger problems. >> so, you and morgan disagree. also, that's been a split between you and morgan as well. >> take it outside. >> every other day about this whole thing. >> you don't talk anymore. doesn't take your calls. >> he's a wonderful guy. >> come on, morgan.
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>> you know, margin pressure, there are all kinds of different pressures on this company right now. and the model three that everybody's holding breath on waiting for this whole thing, is that going to be able to live up to it? crush the margins that much? if they can raise the money and if they can ever hit the numbers they have set out for them. they broke the 200 day moving avrnl. when they did that, it was a little bit of an opportunity to try to ride this thing to the downside and now, it's sort of back down and near that a area, didn't get quite down there, but that's the area i want you want to cover. >> also aren't talking. >> you said earlier, really smart mouth. not that i'm surprised it was smart. >> mr. freeman just said, he's such a forward thinker. when you read the remail he sent to employees, it seems to nar w narrowly, so close in proximity. he's talking about cutting costs in four and a half weeks. seems odd and i have to assume he had some other intent by
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writing this e-mail. they're going raise the money. just matters at what cost to shareholders. seemed odd he's pressing them for four and a half weeks. ahead, donald trump is starting to sound like a few people quou you may know. i'm melissa lee. you're watching "fast money" on cnbc. here's what else is coming up on fast. >> yep, pete pitching the crew on what he says is the best stock to own right now and it could be a home run for your portfol portfolio. plus, here's how excited apple fans are about tomorrow's big product announcement. we'll tell you why that could be a good thing for the stock. when "fast money" returns.
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donald trump taking aim after the r federal reserve this week. while in ohio this week, he told a reporter quote, they're keeping the rates down so everything else doesn't go down. we have a false economy. the only thing that's strong st the artificial stock market. the remarks sounded similar to what these fwis have been saying. >> i don't think the fed wants to add a bear market to a recession. i think they're going to keep this bubble going. they're going to talk as if they can raise rates because they don't want toed admit this is a bubble, but don't want the to let the air out. zpl i think the market rs to a large extent, manipulated by central banks, not necessarily om the federal reserve, but those of the ecb and the bank of japan and so, stocks are kept artificially high. >> i think we have embarked on a policy, monetary policy in particular that has never existed in the history of the world. whoever dreamed that central banks, their main goal would be
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to get interest rates in a minus category. everything is designed to keep the stock market alive. >> so, should investors bb concerned that a republican presidential nominee is sounding a lot like peter schiff, mark barber and other extreme views? zpl i believe a lot of what's just been said. a lot of the things, i believe. artificial stock, it's not artificial, i mean, it's here. you can argue the reasons why, so when i say price is truth, that's what i mean. we can argue all day long about whether or not it should p here. this is where we are. i do believe a lot of the fed policies are to keep prices higher to make people feel good about things. consumer sees the stock market hire. they want to buy. our economy is still 70% the consumer, so everything i'm hearing, i happen to agree with, but should you fear him, a republican, being elected president and tearing the whole thing down? no is the answer to that question.
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>> a lot of these people are hit by buses. being overly scared, we're in a world of financial oppression. i agree. but don't fight the fed. go with it. >> still ahead, apple gets set for its big event tomorrow. guy has a special "fast money" report, next. acewk st
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stocks higher, dow and s&p up about a quarter while the nasdaq closed at a a record high. here's what's coming uchl. we go behind the $15 billion call of duty empire and tell you how the game is employeeing up the competition and making money for shareholders and check out shares of chipotle. almost 10% stake in the chain. should you follow the bill dmar into the troubled company? a top analyst with a sell rating will weigh in, first, we start with apple's big day. josh lipton is breaking down
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what we can expect. hey, josh. >> well, the tech blogs become better here at predicting what apple unveils, so can tim cook still support us? we're going to soon find out. tomorrow, cook expected to unveil a new phone with a faster processor, pressure sensitive home button, improved water resistance and new dual lens camera system, also, removal of the phone's headphone jack. now, that could allow for a slimmer phone and apple could believe that wireless headphones are the future, but that might frustrate consumers who just love their traditional wire headphones. in a survey conducted by fluent, the digital markets firm, 64% said the loss of a headphone jack would be draw back not an improvement. tony says investors should focus on what apple does with pricing and how prices might be impacted looking ahead. he thinks they're going keep
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their current pricing scheme, so $6497 and retire the 6 and 6plus. apple also expected to unveil a watch. longer battery life and gps. he says there is some potential for upside surprise here in the device is considered more attractive to consumers. back to you. >> thank you very much. so, that's what the street expects. we wanted to know what main street thinks of the new updates to the iphone 7 and what they should be, so we sent guy to find out. >> it's guy, i'm out here in times square. we're going to ask people what improvements they want to for this next apple iphone. let's go. ♪ apple's making an announcement. what one improvement to the iphone would you want to see? >> like maybe faster software and better resolution in the pictures. >> well, i heard some rumors
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that it might be waterproof. >> front flash on the camera. >> i think we should be able to facetime multiple people. >> i would like apple maps to improve directions. >> they break so easily. the screen goes, i've had a screen come auch. and the charnlers, they break easily as well. >> your phone is damage proof, waterproof. battery last clonger. >> no wireless headphones. we don't want to pay apple music. >> i would like to see when we need to transfer images, to be easy. >> the facebook. and what's app i think and e-mails. >> i don't know if we can improve facebook, we'll work on that, but the what's app and other stuff, who knows, right? >> so, with everything that josh and guy just told us, will apple's event be a disappointment or big hit tomorrow in it seems like i'm a glass half full, expectations
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are super low. >> that's biggest part of this thing. is expectations are so low that they maybe could just step over it. much like the earnings season. when you consider what we went into this in this last earnings season, that's what happened. started throughout the financial, so you've got to look at this and say look, what are people expecting? based upon what you just say, i want a better battery. sure, a better processor. ipg they'll get those. if we can achieve that, maybe that's enough to send the stock hire. >> apple music, they're almost forcing you into it. when you get on it, it kind of jams up. i think expeck peckations. if people thought china was this you know, glorious foundation for them to build their hand set sales, india's even better. 2% penetration. u.s. is 39. gross margins will probably get better. i will say this whole services
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business, which was a big improvement, was off a low base. that's the other side of that. i've been saying services are better, but you have to be careful. >> no headphone jack. >> i think it's a really big deal. you don't want it to come with your new phone zplchlt a what? >> dongle. >> i don't want a dongle ever. not even going to -- >> this is going to be the third phone in three years that has the same factor, then when you add on the fact the improvements are moderate and there's stuff inside that people don't see, then you have the fact that i don't want more charging anxiety. i don't want to be pushed towards a blue tooth or headphone. or they're going to give quou a device that -- i don't think -- if you get strength as a trader, you'd sell it.
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i think the q4 results, when they come in late october, that's going to be important. people are not buying this device. remember, that sales are expected to be down 10% in this quarter. then you have to start waiting and seeing what's coming out in this new iphone 8 next year. that's a long time to wait. >> very passionate about the dongle. >> we all should be. >> tim mention ed what i know this it's got a bit of a chafe can you just for -- >> i feel like when i'm hitting my i-tunes on my phone with the updates to the software, i'm required to join, they make it difficult to not join apple music, which i don't want to join. >> i'm chafed. >> coming up, chipotle shares surging after bill ackman revealed a new stake. we'll ask one such analyst after the break, plus, it's the one old school tech stock that has pete ranting and raving. he's going to pitch it to his fellow traders. will they buy? we'll see. when "fast money" returns.
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welcome back to "fast money." check out shares of chip there is oltle after bill ackman
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revealed a 9.t% stake in the chain. if you've been staying away, does this news change your mind? steven anderson has a sell rating of $300 price target. does this news change your opinion on the stock? >> well, i would say miss ackman's enhittitled to his opinion, but did not change oir view. our view is since the e. coli outbreak and some other illnesses, it's a fundamentally changed company. with a different cost structure, a more restrictive cost structure and going forward, what had driven most of the growth was unit growth. that has had to come down and they made reference to such on the last earnings conference call. the multiples for chipo -- to
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help the stock inkre mentally in your view. >> there could be some measures we think could happen that could be increasing restaurant level productivity, maybe reducing level of labor, and even go so far as potentially going to franchising both on domestic level as well as expanding opportunities overseas, but accepting that, there's not right now, we still think the shares have some way to go to the downside. >> thanks a lot. we appreciate your view. steven anderson with the maxum group. last week, they nay announced another promotional idea. free entrees for children on sundays, families back in. they're really trying get people back in. that was your issue, that people might not go back. >> to me, it's too little too late. they didn't get in front of this when it happened. remember how long ago it was.
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crisis management and they failed and they're paying the price. people can totally forget about this. to a place where i think they're cleaning up their menu. i think people will give them a second chance. the customer of cmg was as loyal as any fast food or casual dining bir. >> like bill ackman to get in. >> i think he's just in front of it now and probably a little bit early because he's waiting and he actually is in the anticipation stage, i would say, of potentially seeing those same store sales final ly start to ramp up again, but i'd rather wait and see them. i think this is a wait and see story. the management has to prove to us that people are coming back to the store. >> yeah, just say that you have to remember, that sales are down 10%. while earnings have declined by
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9 or $8. about 75%. it's not going to take much to get this story to bottom out. i don't think mr. ackman should change anything. i don't think there's anything he can do to get customers back'ing burritos at chipolte. >> take the management. >> he gets rid of a lair. talking about this economy, you know what i mean, is the next coming of fast casual. they were unstoppable a year ago, so what i'm saying is i don't think the damage that's happened over the last year is something they're not going to be able to fix. i don't think an investor is going to do much. >> i think the stock was very ek pensive. before any of this stuff happened and still not cheap. i think you have to get back to valuation. shake shack and other places that get way ahead of themselves.
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>> we should note right now in the after hours session, this is the lows for chipolte. now about 5.4%. you want to know what traders are buying and selling? we've got a new game today. we love games. we are calling this the pitch. we give one of f the traders a chance to pitch the desk wouchb f their best ideas right now after a they are done, the traders on this desk will vote with their white boards on whether they are buying or selling this idea. >> i'm looking at cisco, what i find most interesting, this was the most unloved stock. it was stagnant, you take a look at this chart, it was trade ng the 20s, low 20s. this little breakout started. we had brexit and then we got this next break to the upside. that's the chart. look at how it's held on to the 200 day moving average. i love that. the most important thing is this. when you look at valuation, a 15 pe, the forward is a 125. when you look at dollars they
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have, the cash they have, $66 billion. only apple and a couple of names maybe have anymore than that. it's an incredible number. i love the balance sheet as well. then you look at this transition under chuck robins. this guy has been a master mind. very, very similar. i've compared him many types to microsoft and what he has been able to do. this is early in the transition. i think hitting the 52-week h h highs, the stock's going to break out. when ewe look at the fundamental story of this economy company, i love what's going op. from the hardware, the software, to security, i think they're in the right spots right now. >> pete. you came in hot on that one here. >> i tried to bring it to you, dan zblchl so, you talk about that balance sheet. what would you like to see them do? a big transformer of ak wii nadala made a $26 billion acquisition. the stock keeps going higher.
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>> and he did that two years in. i think this is still early. maybe they would, this is a company that loves to use the cash b to buy companies. p i don't think they have to make a massive transaction right now improve themselves, unless they do something in the security spot. that would p be the one area, maybe they look at a fire eye. >> this reconstruction is not only restructuring. for every 5,000 people, they hire 6,000. a place here where this company, i realize they are transitioning their business into software and services. but adding to the fact that the margins have picked up and i think they're topping out here. the best days are largely in price. >> i don't agree with you, tim, because i think it's the beginning. when you look at the mix between where the hardware and software is and where the money's coming in, this is a very, very spectaculsimilar thing. the services aspect of apple. i think the same thing in terms
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of what they're doing in the transition of the software and that whole world. >> moment of truth, pete. going to have the desk weigh in here on cisco. so, tim. buying or selling? >> reluctant buyer. because the stocks had such a big run. if you look at big cap tech, the valuation for this company still at a discount to its history and they are in better businesses. this is a buy. >> okay. so, buyer. >> nice job. >> what do you say? >> i am a seller here. profit taker. but i will tell you that i agree with a lot of what you guys are saying there. >> it says sell, i'm not buying her. buy at 28. >> that's a picture of you, pete. holding a football in one hand and a burrito in the other. >> very an poe. >> i'm going put my little plaque card. i borrowed a political chart. see what i did there? i'm with pete with the arrow. >> nice. >> apologies to hrc.
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back in may, listen, juniper was eating cisco's lunch for years. cisco finally turned the corner. traded down to 27.5. we talked about being june fehr specific to buy the name m off to the races ever since. 12.5 earnings. i think we need to push up towards levels we last saw. i think in 2007, which is around 35 bucks. >> how do you feel? >> tends to be b a tesa seller,e you, dan, but i appreciate the other two. i think we have just begun and transition is still in the middle stages, so i think there's plenty of upside. >> we can do this again. do this every day. >> still ahead, surging more than 4% today on the heels of a new partnership with australia. that had some traders piling in. we'll explain. plus, call of duty is a cash
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cow. shares up 55% in the past year and could be the start of a bigger run. you're watching "fast money" on cnbc. first in business worldwide. potle vs ♪
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welcome back. shares of act vision, blizzard and electronic arts both hitting record highs today. activision coming off a big fan event for one of the biggest video game franchises of all time. julia boorstin joins us live from los angeles. >> hey, call of duty has sold $15 billion worth of gail in the franchise and the brand is getting bigger by exanding into a truly year round refom non. today, they lawned packs for which customers will pay fween 15 and $50 for bonus content for last year's game. over labor day weekend, more than 10,000 fans paid between 50 and $250 for access to call of duty x p. watching teams compete in championships for a $2 million
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prize. attend dees got to preview the upcoming infi nate warfare game. the analyst just raised his target and reiterated his buy rate, saying the new game's customizable details will drive mic micro transactions, removing the ceilings. >> you can buy small things wen the game for $2, $5, $10, so not only are you paying $60 for the game, but now, if you want a new weapon or want a better outfit or costume or you want to advance to a higher level, you can actually pay a little bit of money. >> activision shares have rebounded from declines earlier this year. shares are up nearly 40% over the past six months. now, analysts are bullish that a new consult from play station, as well as microsoft's new x box
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could bolster sales. >> i've always thought if you can sell something virtual, that's just a genius business model. right. i was just thinking, need a new sword. pete. >> you know, the impressive part is this transition, they've all had to make over into the digital world and because of that, the margin are better. can they continue to be creative? if they can, you've got to love what these companies are doing now. when you look at activision, particularly, this whole call of duty franchise has been a huge winner. can they continue to make these things, i think they can. zpl anytime you can combine a new costume, weapon, i'm in. >> sword. >> dollars are huge. >> it adds up and you're enthralled in the game. shelling out money. zpl paying a lot of money to
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watch these guys play. >> it's not a big value. 20 times forward earnings, you think it would be expensive, it's not. costume or not. >> all right. dan's not over here next to me and that only means one thing. he's breaking down a bullish bet on alibaba. some traders need more room to run. >> really interesting, i should say. the stock broke out. the stock closed at 52-week high. four time average daily volume and there was a bullish role in calls in september that's pretty interesting. the stock was trading about 102. seller, 100 calls that were in the money to close. they own them prior and are taking profits. sold those at 290 and rolled that premium to finance most of buying 5,000 of the september 105 calls paying 70 cents to open. so rolling out and up a bullish bet there. pretty spresing action. it was easy to be bearish on
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alibaba for the last year. a lot of concerns about the state of china's economy and competition for alibaba and in the spring, there was an investigation into their accounting process. but look at this here. that breakout, frit powerful. there is no upside technical cy resistance for a bid. >> quick, tim, you're long. sxwl and i think it's just kind of interesting how investors were willing to buy into the u.s. tax story and not china's. >> all right. thank, dan for crushing the smart board over there. more options action friday at 5:30 p.m. eastern time. coming up, final trade, stay tuned. i' athe td adices move f, steve, oermaki wh you i' athe td adices lew u. move f, okay.ve, oermaki
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get ganized atoym. pete. >> the right prescription, eli lily. going higher. >> nice. tim. >> a 35% pullback. >> dan nathan. >> apple don't buy in. >> action packed show. i like the new game we're playing. i want pete to say something
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after i say this. silver wheaton. breaking out to the upside. say it. >> hi ho silver, giddy up. >> where did that come from? >> see u yyou back here tomorro. don't go anywhere. "mad money" starts right now.si! >> where did that come from? \s my mission is simple, to make you money. there'sal a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer, well come to "mad money." welcome to cramerica. people want to make friends, i'm just trying to help you make money. my job is to entertain, educate, so call me or tweet me. just when u to give up on this market -- >> sell sell sell! >> just when you're starting to wonder what the heck am

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