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tv   Fast Money  CNBC  October 22, 2019 5:00pm-6:01pm EDT

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where is it? they've had problem was the vehicle launch, the ford explorer plenty of question base that curing the conference call reporting earnings after the well tomorrow. guys wab, back to you. >> phil lebeau thaengs for that. final thought, mike, crossthe session lows but small declines. >> watcher the semis tomorrow after texas instruments. >> out of time that does for "closing bell." >> "fast money" begins right now. live from the nasdaq market site overlook new york city's times square this is "fast money" "fast money." i'm melissa lie. karen finerman, dan nathan and two guy adami. tonight major developments you out of boeing. the head of the commercial airplane unit is out we'll bring you the details. earnings armt on snap, chipotle, texas instruments all stocks on the motivate we break down the headlines. biog n posting the pest best day in 20 years after the alzheimer's drug shows promise more the breakthrough. with you we begin with breaking news on nike
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the ceo mark parker is stepping down, replaced by nike board minneapolis and service now ceo john donaho, marker will be the executive chairman we heard from parker exclusively on the "closing bell." >> we have spent a lot of time over many months working on succession planning. so this is -- this is not something that happens in a matter of weeks. so it's really unrelated to oregon project or other issues this is about me on the board really wanting to make the -- build on the momentum we've got. add the horsepower, accelerate against our strategy and do it while i'm here and in a position to lean in and make this as successful as possible >> parkers' departure comes a the dame the crow kevin planning leaving his post in the new year as well. both stort sporting stocks time to lays up and buy or sit on the
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sidelines. >> can you just say that. >> i just did. do you have ears >> i do. it hurt my ears. you're sproech so much smarter than that time to lays up and buy. >> ha ha. >> based on this -- mr. donaho on the board of nike for a while it will be seamless in that. there was a "new york times" article october 1st not particularly flattering for the current ceo. i don't know although nike trades at a very high multiple, 27 times next year's earnings, they seem impervious to whatever is going on in china. because the china growth last quarter was outstanding. despite valuation, despite this headline i think the stock can go higher. >> this is interesting because when the headline crossed i thought nike i would think it trades off on the news here it is higher by a%. >> ral is an interesting choice when you think about nike and why investors are excited about
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it and it commands the multiple he does. he spent six be with seven years at ebay donaho it's something that he pushes way into this direct to consumer thing is real for them then you think about the tech background the last few years at service now. i think that investors should feel pretty decent about this. and the stock is basically unchanged or up a little bit right now. but i think the guy's point that this is a stock trading at all-time highs, trades at a high multiple and they need to continue to do some things and not have the adverse effects we see other consumer brands right now having with global trade and the strong dollar and all that stuff. >> they've done a good job navigating that. but i agree with when you're a high flier like this, the multiple is really high, anything that can sort of you know, move the momentum a little bit would have an outsized reaction as the multiple comes down i think it's great i just -- the supplies i guess of it, would make me a little
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bit concerned. but i wouldn't be a seller on this but i do think there is just a little bit of additional risk here that wasn't here early -- >> yesterday or hours ago. >> nike trading guy alluded to nike 27 times ebita. i agree with you i agree with everyone. i think to steph back a bit on nike there was a premium for the ceo they had if you look at underarmor performance underperforming that should be more bullish you might see switching out of nike and buying the underarm armfer there is a pairs trade to be baud. >> that's the next part of the question bear with me, guy. all right. if wei play the game of would you rather, yesterday, ua. a versus nike which would you choose when i pose the question to you today does that change. >> if we played yesterday what would you choose. >> this is a two-part question. >> yes. >> i'm honest which i always, as
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you know i would have said being nike without question. nike has growth. underarm armor would have lost the way if you fires me to play the game on this monday october 21st, nike. >> but now. >> on october 22nd. >> things might be different. >> not nike. >> on tuesday october 22nd what would you say. >> i think there can be -- respectfully to kevin plank who got upset at us years ago when we asked the legit question you founded the company are you the right person to take it forward. >> relatively benign question but i understand why you get upset but in could be the relief underarmor has been waiting for. playing tuesday october 2 ened, game changes like that it's under armour that's a great -- >> you're trying to be nice to mr. plank. he made a phenomenal to dow mri.
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the minute steph guess to nike mo am i talk bag steph curry it's over put a fork in it putting a lieutenant in charge is not the thing that reinvig rates broegt i'll say this about nike last september or last month stock broke out above 90, held that going to where. >> a hundred. >> that's your theory. >> just it will. and listen i think you know -- look at -- with your levels 90 is the level breaks down you don't wasn't o own it anymore. >> you hear ou the levels. i think the macro -- that might be the case because a lot of times technicals already have dissolved every other fundamental reason why the stock should be moving everything is in let chart anyway so i don't disagree with you but the headline risk right now is -- is favors the would you rather of the underarmor i'd rather be a buyer of that for the reasons guy stated versus being a buyer of nike at this
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level short term. >> it's more of a turn around story. the guy who is -- or will take over as ceo paskt frisk has been working with kevin plank working with the company there is a argument he is a continuation of the turn around. maybe it's in place enough to for plank to step aside and let him take over. >> maybe i don't know i'm not exactly sure if you were to ask me to have played i would have said nike and nic fee both days. >> okay. >> just because object in motion with the momentum they have versus one without it, and i just -- i won be surprised if efrl years from now we see the return of kevin plank at underarm zbreer ala howard schultz. >> ala schultz. >> kevin plank at nike that would be a surprise. >> yeah. >> i want to ask you a question. what is it 800 pound gorilla or
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elephant in the room. >> a large object that you can't. >> that noun is talking about. the 800 pound gorilla is the big. >> whatever it is gorilla or elephant but it's interesting on the same day within hours of each other, the ceos of two premier are stepping down. is there something -- see, i don't believe in coincidence there ain't no coincidence. >> i was waiting for in. >> i brought it up. >> are you saying you think this could be a top in in space >> not necessarily a top but is there something out there that both see that are the the roast of us aren't pay pehlinginging attention to to is it something with china trade deal it seems odd. >> tough sledding ahead. >> that would be my initial reaction, yes, melissa. >> yeah, i mean kind of cooky. >> it is. >> whoa you saw that headline it was so silly you guys had the interview with kevin plank earlier. i thought it was did everyone know about this?
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was it a contrived but the parker headline was extremely shocking on the same day. it makes you scratch your head and i don't believe in coincidence either. >> the other story is service now lead lutesing the ceo. lading low now we'll cover that angle later in the show. bit we hear from the incoming nike ceo and outgoing ceo tomorrow 6:00 p.m. eastern on "mad money." up next snap chip oelts, texas instruments on the move after recording. live from new york city, mh uc more "fast money" right after this
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chipotle and snap on the move both reporting after the bell full team coverage josh lipton all over the snap earnings call. kait rogers has the details op chip olts at headquarters. >> chipotle out with a strong q 3 beating on metrics across the board. same store sales increasing by 11 percent surpassing expectations for the 9.3% increase this quarter. digital of course halls been a big focus area for chipotle.
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listen to ceo brian nicol. >> this quarter digital sales grew 88% year over year to $257 million and represented 18.3% of sales during the seasonally slower summer quarter for digital. and we're knocking on the door of digital becoming a billion-dollar business. >> the company's loyalty program chip oelts rewards now at 7 million rewards members. nycoles said the company is just scratching the surface the leveraged data they said they could open fewer restaurants this year. and as it accommodates those drive through lanes for skbhers. it says it will have about 60 lanes open this year and some of the 2019 openings could sthift to early 2020 because the location haves a longer construction sign. and the theory receive positive customer feedback and ner kass o
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blank blanc o in several markets. they are not rushing they want to get it right. brian nycole sits down exclusively on the exchange 1:00 p.m. et to recap the quarter. >> effectively in terms of guide ens what they guided to comp store sales at the high end of the previous range. >> yes. >> they're not raising anything. >> no, no. everything was basically right in line but sounded very positive and upbeat. there was confusion around the store openings basically they say they will shift to to 20 because the chip on thatten storing taking long. >> kait rerng rogers at headquarter process is reiterating guidance enough for a stock doubling the past year. >> probably not. but the move to the downside i haven't been on the cmg store. this defies logic. but this is one you went to harvard they're writing about this harvard business review
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sfla yeah. >> what a great journey. they have really turned it around in a short period of time now they have probably i don't know 30% eps growth trades at a huge multiple. the only knock in the quarter is what you mentioned maybe operating margin slight miss i got to tell you they can't sell the stock on the wak back of quiet are with the in line the stock is going higher again. >> expect aches is high going in maybe was a buy the rumor sell the news because they started selling before the actual news came out top bowne $20 today but ran up $100, right i feel it was priced for perfection they delivered ner perfection only the slightest flaws in that it's just for me too expensive to own i would have said that $2,090 ago. >> everyone reporting in the space, domino was mcdonald's, darden everyone had trouble with comp i love when digital sales are up that made me buy dominos
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i love mcdonald's working on digital sales. i lo of it. >> other people don't love it because they invest in digital sales for the future. >> it's true there is a capital expense so the whole element of growth but you need to invest in the winner i think you wait until this stock pulse back labts and i'd be a buyer on some weakness. has to pull back more so than it has already. >> mcdonald's? >> mcdonald's? >> mcdonald's i think is a buying opportunity because mcdonald's is a staple, a safety bet. when the market comes in mcdonald's usually goes up i think you get a gift in mcdonald's at this point. >> let's move on look at snap, the stock lower after results. let's get to josh lift lipton with the details. >> just a dwik take from the street raymond james has a hold on the name quick take on the results kessler saying on revenue fairly solid growth driven by north america. europe he emphasized deaccelerates. u.s. and europe he characterized as disappointing on user growth. just given the strength from
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snap in q 2. guidance he resolved as in line with estimates co evans spiegel on the call saying 210 daily taf users there was a clear path to profitability. talked about engagement saying each daily active ut user opening snapchat about 30 days on average investment areas he calls out scaling content and ar platforms. back to you. >> thanks, josh, snap, dan. >> really interesting. obviously we spent time this year talking about the tech companies nafb disruptive coming to the public markets using money. this is a company since the ipo in 2017 has been losing money. they're doing a billion 7 in sales this year. growing at a good clip on the adjusted basis losing $300 million on a gap basis. a billion. the stock up 150% on the year. with that user growth they have it doesn't make sense to me. it comes down to the scarcity
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value horrible sentiment last year and horrible stock performance and maybe the company turned it around focused more on kroid. but again $19 billion-dollar market cap using money and everything else is losing month a disruptive tech getting meerd. >> i right bought it right before the clo he is. >> right before the close. >> same on netflix and i felt terrible about the netflix trade immediately then great after 4:00 i don't feel great with the stock down 3%. but i'm okay a because the stock sold off 26% since september snap that is i think you get a bit of positioning. the street got incredibly bullish of late. i think you're seeing a bunch of analystists protect the name tomorrow so i think you stay in the trade. >> room to 12.5. i hear what steve and dan are saying you don't have the active user growth you need to justify the valuation. yes it sold off significantly since the middle of august i think there is further room to the downside and fourth quarter revenue guidance was
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disappointing in my book. >> the thing that's interesting to me, in became an ip -- trying to be an ipo today i don't know it would have this valuation. it seems to me like that that wouldn't fly i don't know why -- i still don't know why. >> it's lower than its own ipo price. it's valued lower than what it originally came out. i think the market has done a good job i think danburys up the important point, the scarcity value of it then you have the opportunities internationally and in india you have ad dollars. i think it's the guide that hit it because it beat it on every other metric whether or not niece are the right numbers or the numbers to grow, they beat estimates. usually you see the stock run when they beat you're not seeing that now it's all about the guide. >> let's round the earning triskta texas instruments plunging after after hours following its report eric chemy at headquarters to breck it down. >> the stock down more than 9% in extended trading but off the worst levels of the after hours session. the chip maker missing on sales
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culling out particular weakness in communication equipment as total revenue decreased 11% versus last year another big reason for the drop is weak guidance for the next quarter. texas instruments now forecasting eps of 91 cents to $1.09 for the fourth quarter analystists expected $1.28 interesting the weak guidance comes after recent encouraging signs of growth. the company just raised dividend by 17% in september. and data earlier this month showed pc shipments rose the second quarter in a row. texas instruments downbeat the outweighing on amp intel micron appear nvidia. the last time texas instruments opened down more than 8% in reaction to earnings, october 2008 >> wow eric, thank you. eric chemy you guys over on this side are saying a important earnings relate release. >> i think it's hunlly important. again i'm shocked that texas
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instruments was trading north of 130 with a 24 forward multiple with probably i don't know 9% eps growth in this environment with so many unknowns. this guidance -- i'm not surprised it's not down more than it is it should be a lot lower it's still expensive you can make an argument now that it might be more expensive now than it was two hours ago. so, again, i think texan is too rich this could be a bellwether name going forward. todayed marketwise it was a weird day and this adds to that weirdness. >> i just say i know investors especially those tracking cyclical tech were folksed on on the name better part of 2019 the migrate giving guidance where they thought they were in the cycle a quarter ago they they were like three fiskts through true the downcycle that's why it broke out last quarter in july giving guidance you and i were sitting here saying why is it up 7% the
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guidance wasn't that good. the guidance for q 4 from 1.28 to a dollars at pipd point is really bad when it comes in below like you say it's back towards 100. >> we see the sentiment spill over the rest of the semispace smh, the etf tracking semi down a fracture pun issues a couple of bucks shy the 52-week high. >> how much of this is with headline with trade woes how much is about backward looking concerns about commerce cutting orders base the on what they see or lack of dairt clarity going forward. this is above all moving averages and pierced all of them in a single stroke up 36%. >> you saying it's momentum? >> no i'm saying i wonder how much going forward if we look at the terrible story backward looking but if the trade wars subside and you get more clarity, more confidence, is it more of an student going forward to buy a discounted stock versus something something else.
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>> how far do we extrap the late in terms of technology. >> i think we extrapolate. if for no other rhiannon than the run has been -- it's gigantic so we often see a lot of times somebody misses everyone trades down somebody else misses everybody drads trades down on even though half thenous is out there already i won surprised to see that. >> is there an trapino slayings between semis. >> beyond semis? i don't know does this have affect on apple. >> uts, industrial tech. >> industrials this week which we hear from caterpillar, roper. >> did texas -- >> just back to the point about -- we saw a lot of ordering ahead of tariffs that sort of thing earlier in the year that are the so of thing. listen that could be one of the reasons why it got to where we were and those results weren't that good here is the thing. if they are wrong on where they were in the cycle and we see a sputter here and then adown turn then they're all too expense
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every. and you look at intel in the low 50s within high 40s, low 50s all year. >> the beauty of the thing is they trade as a group. one goes up they all do. if we see a headline positive in downprocesses 10% in texan will be bought quickly. and you could be dead right on all fundamental analysis but it doesn't matter >> up next, what is next for service now? did the company says he is leaving for nike we the tech take on the shake upand major new developments out of boeing, the head of commercial airplanes unit is out. we'll wri you the latest when "fast money" returns - stand up if you are first generation college student.
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welcome back to "fast money. recapping the big news we brought you at the top of the hours, nike ceo mark parker stepping down in the new year. replaced by service now ceo john donahoe. we hear from donahoe 6:00 p.m. eastern on "mad money. check out in the meantime the reaction on shares of service now. that stock down 8% right now off the after hours session lows let's bring in jared wisefield, managing director and tech sector specialist at jeffersy chemical o welcome great to have you thank you. >> thank you. >> is this drop in the stock warranted from service now. >> from investors i spoke with the, the biggest reaction has been just a sudden shock this was just not anticipated. you've had a lot of turnover in the c suite over the last three to four months the cfo stepped down and went to snow flake in the private secretary are. donahoe was recently appointed investors are taken aback that we have seen the turn over in a short time. >> is bill mcdermott, the former coceo of s.a.p. can he fill the
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management gap. >> they are bringing nonan incredible leader. longer term sharmds are of a positive view in terms of who they are bringing in but it's more of better understanding than near-term disruption to the market because it's a complete schick shock given donahoe has been in front of investors for such a short period of time and built up the credibility to see this happen so quickly is just surprising. >> jared, what's your service take now service now down 25%. if the all-time high in summer the space seems to be under pressure the valueses getting richer as they go 40 billion market cap trading at 12 times sale what's your move on the space. >> to now i want not idiosyncratic. process the entire space has adown draft the last four to six weeks weeks and investors are mindful of q 4 when the software complex. the ig the etp was down 2% this year is different because
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igb is down 25 frers if highs because you've microsoft and oracle hold up microsoft green for the month of september outperforming the broader market parallels to q 42018 on the ffrs the names that had stratospheric names. oolts of the names growing into valuations and it's been a lot of pain. i think investors that i speak with generally cautious in terms of thinking about how to underwrite risk for names trading at fairly crazy valuations >> jared when we see software and we see hardware and see all tech as a whole. >> yeah. >> trading down and weak to your point, if we do see a macroheadline, does that rally the entire space which. >> yeah. >> what does it rally the most where -- is it software what rally the most off that positive headline. >> if you see a positive development in terms of anything happening with trump and xi and any kind of trade relationship
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smh will outperform to the upside if you think about smmh and the pressure it's up to with texan which is a bet weather on the conference call talking to automotive and industrial impacting business and that's a function of trade tensions that are impacting. it's swla wakwards looking to your point you see rally in smh outperforming achlt. b but that's an important point when smh is outperforming igv outperforms. under the last three four weeks you have seen the rotation out of igv and into smh as cyclical and value outperform tomorrow it'sing interesting because all of tech looks like it could be for sale with given what's going on with service now and texas instruments. >> what part of technology looks most stable valuationwise considering this -- the cloud that's overhanging software. >> sure. >> regulatory over the likes of facebook, texan warning? >> absolutely. withinmys there is the interesting dichotomy because
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you see likes of texas instruments have the with the nchgt reaction adding 15% down sequential will fry a revenue perspective and shares under pressure within semis you saw taiwan semi put out strong the numbers. ter a dine put you up strong number walks up 6% there are beats and raises those are isolated to apple supply chain, because apple does well right now in terms of the new iphone unit sales and anything related to huawei huawei is doing well in terms of 5g in china. if you levered to 5g diplomats levered to apple new technology such as ai you are outperforming right now. >> great to have you thank you. >> jared wisefield of jefferiy. >> guy. >> what's the level in service -- if i recall the stock down today apparently on no news i saw down 5%. it's interesting that somebody had a whiff of this down another 8.5% ifrl it's extensive valuation but the st. croix stock is down from i think 300 and change since early this year. if you go back and look,
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september of 2018, topped out around 203 or so so past resistsens becomes support. 203 is right in the cross hairs probably trade tlg tomorrow. >> coming up bilk changes coming to boeing as the company faces fallout from the 737 max planes. we have the laeflt lafayette dealt. bows biogen the best day in 20 years. what's behind the surge and what it means for the drug giant. it means for the drug giant. fms returns stay with us's boun, because you're better off healthy.
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well bang toplace fms. following a major develop story out of boeing. a new head of the commercial airplanes tuition. let's get to phil lebeau with the details. >> we've said sometime pressure has been building on the beardship and the boeing board of directors to show it's taking actions in terms of making changes that will send a message that the company is determined to get the 737 max resolved and back on track. well, kevin mccallter running the boeing commercial airplane division since 2016 he is out. effective immediately replaced by stand deal. a 33-year veteran of bogt with a number of positions within the
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skmergs airplane division. most notably on the sales end of that division. particularly over in asia. and in china you look at shares of boeing keep in mind that this is a company that not only is wrestling with a-betting o getting the plane recertified and back in service but also convincing customers that can can ramp up production when it returns to service and start delivering the max at a faster rate next year that's the challenge for stand deal don't forget, tomorrow morning before the bell, we'll get boeing q 3 numbers the number are not going to be as much as the focus for investors as will the comments of ceo dennis muilenburg when he talks analysts this will be the first time to hear from him since being removed as chair of the company and also since the documents coming out last friday which had a lot of people in washington, d.c. asking, what exactly is going on with this company? how forpgt right has it been in
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sharing information? we talked about extensively over the last couple of days, melissa pch but you can bet the questions will come up tomorrow morning. >> thank you, phil in chicago for us guy on the conference call you the brought up boeing as somebody something to watch because of the price action we saw? >> decent price action today maybe it's people clearing up short positions. we'll know more 15 hours from now. but you have no edge into earnings tomorrow in my opinion. we can make an argument about free cash flow, valuation, the fact that maybe january regulators in new york are going to let the 737 max's fly again all those things wait and hear what they say tomorrow before you pull the trigger. process i understand the valuation argument it's compelling but i think there is too much headline risk i would wait >> i agree on the headline risk. but yesterday we learned the dividend is staying where it's at maybe that aleasts some of the cash flow worries or problems that entered as possible headwinds. it gets back to what i've been
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thinking and feel. if it were any other stock, this stock should be down more than it is. it's getting back to the name, the word, dwo oply frant granted the headline risk is atrocious this is a terrible situation on any level. but the levels the stock has been able to hold have been impressive to me. >> you're making the point just yesterday, if this were any other company with a product out there that killed hundreds of people. >> yeah. >> the stock wouldn't be where it is. >> and that's the point steve makes here and i grew he with that. one other thing that's interesting is that ceos says the buck stock with them it's interesting to see the shuchlg of the deck chairs thing back to wells fargo. and you beirut that up as a crisis management situation a few years back we were on the desk the stay john stum of resigned and brought in a lieutenant tim sloan and looked at each other saying he is not long for the world. because you can't fix a cultural
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problem with people who are multidecade people part of the culture. i think this is exactly what boeing did i suspect muilenburg is going to be gone. he has to be, because if anything comes out more about what they do abwhen they knew it, the buck has to stop with the ceo. >> quick question muilenburg is out. what does the stock do up, down. >> is donahoe going there? wait. >> kevin plank no, i don't know that's a good question because up until recently i think his tenure there had been secure >> right. >> right so i don't know. i guess it depends who they get. but i think more than who is the ceo chair is when they get that plane flying. >> right okay coming up the big move for biogen, the stock soaring today we break it down and later what you can expect from tesla when the report results tomorrow stay with us
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welcome back to "fast money. check out shares of biogen the best day since 1999
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following a surprise announcement on the alzheimer's details. >> and meg with the details. >> a shocking about space for biogen seven months after the stock cratered on the news and the lead alzheimers drug newsides show it does work and plans to file for fda approval next year biogen got more data more patients when it stopped development if had data up to december 2018 on 1705 patient in analysis since then it got more information about 2060 patients. and more were on higher doses of the drug all told one of the analysis sis show it met the goal slowing the declines of alzheimer's and the wall street clearly cheering the new and the stock coming back from the initial high some of the notes are betraying the skepticism on alzheimer drug
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development. if you torture the data long enough it confesses to anything. steven seedhouse at raymond james says we don't think the plan is going to work and assign zero% probability of success to the drug in alzheimer's but it dpaf a boost to the biogen and the etf today. and given how many people are alzheimer 6 million americans appear no drugs are approved to slow the course process this could be a major product for biogen not the mention of course the hope is brings to patients with the diseases. we will talk about the questions and more with the biogen michelle vounotsos tomorrow morning. >> the data submitted today which led them to conclude dwas a farl was through december 2018 it collected more data it conducted additional studies or are those studies were in process and they collected those data and analyzes them. >> when they ran the futility analysis, the data they had were to up december of last year. they decided in march to stop
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the trials and as of that point any more data and they stopped them at that point. and since then they've analyzed that further data and had a lot of conversations with the fda and said today those conversations said, the fda says it's reasonably to potentially file early next year which they will do. whether that leads to successful approval people are starting to question >> meg, it's karen let me ask something you talked about some improvement. how significant was that how and see measured >> so they have different measures of cognition and things like that. on one of the measures and one of the trials they saw a 23% improvement versus place bo in thes kochgt declines thinking and remembering. and improvements on daily functions just in regular life being able to get adrien a do things around the house and things like that so that was significant. and it was stisktically significant? one of the studies the other study is wasn't. they said a subset of patients
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on a higher dose did show it worked whether all of that together will convince the fd pachlt will be the question. >> and for the other drug companies which other drug companies have drugs that have been declared failures, alzheimer's therapies that are based on the same sort of mechanism aching the plaque in the brain. >> the list is so long, mel. eli lilly was a major one. pfizer was in the space. ross again entech. merck. i attack to the am lloyd build up in the brain and with whether the hypothesis is right. and they say they think it is and maybe the other drugs didn't hit it direct are connectly weren't getting into the brain well enough. they have ways of explaining why the trials didn't work where they say theirs does. >> meg, thank you. meg tyrell at headquarters. >> we have been saying a while now -- and it's lagged we've been saying a while biogen
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is too cheap obviously this is the headline this is the lead this issue news and the fact gnat fda didn't shut it down and there is a pathway is encouraging but look at the earnings release. they had a fantastic quarter 9.17 eps the street at 8.30 beat on the revenue side they have many other drugs at 9.5% forward earnings with the move today i will say again biogen is too cheap. i was dispoint appointed how it sold off laet the day. i don't think you can achieve the raymond james analyst. i don't want to vindicate or criminalize the wrong person but zero% probability? how can you attach a zero% probability to anything but death which is inevitable for all of us. >> or taxes. >> or taxes. >> coming up lyft getting a big lift as the company says it races to profitability could in start of a bigger u- -- be the start of a big u-turn for the stock. look at the cramer cam
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jim talking with the hasbro ceo as the company tumbled on earnings live at the times square market site much mor "fast money" still ahead. when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind.
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as which will of would say to pull. >> why. >> because they have their hand in a bunch of businesses >> i was going to see levers to be noft not profitable. >> you could look at that way too. but if you have to choose between one or the other it would be ub are. but a large extent of this has been the reaction we have seen in the stock price when you start talking about technicals people are playing for a bounce and i'm not sure you're ripe for
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a bounce in a lot of the names that possibly could never become profitable as a whole. it depends on the environment that you invest in. >> because we see where ub are has so many businesses should it have been 3.5%. >> i don't know. it's a a sentiment trade i'm disagreeing with steve i'm not saying he is wrong with ub are but when you talk about lyft this is not a hail mary not hooking out two years and satisfy any satisfy see something about more rational pricing and north america. tease wrp it's focused that's why i like this better than ub are. uber may work too but not soon from a profitability standpoint. lyft is telling you they have a way tlgt and every quarter with incremental process the stock should grow to the valuation better. >> moving on, investors are gearing up for tesla, the company reporting results tomorrow after the bell. what's the options market expecting for the look car maker? let's get in the walks the realm capital founder roger dasilva
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zboo good tosz. >> you you as well melissa. >> what's the options in market implying. >> about a 8% move typical, smock in the range of 8 to 10% where it typically moves. however last quarter is dropped 15% people are geeing up for that as well. >> did the options market last quarter get it wrong. >> d price to do wrong for sure. >> how are you interpreting the action you see. >> well it seems that a bunch of calls traded last week, the nov 230 traded rolling up to the november 280s but what they are saying is locking in profit but poging for upside. >> dan are you watching in. >> roger makes a good point that implied move is high right now basically been moving that percentage after the stock had a run like that you may want to think about buying calls if you look for that long exposure. if you get it wrong it's going 10% the other way. but the point is really important here baying short dated calls in the stock like tesla with implied
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volatility is elevated et cetera a tough road to hoe. >> you're look fog a big move. i'm a fan of elon musk what he has done i love the cars. a buddy of my owns a tesla and arrive about it. love the cars love elon. i don't love the stock. >> right. >> guy what do you make of. >> you and i actually remember a test drive. >> we did. you drove the model s. >> i did not allow you you'll recall because you don't have a license. >> i have a license. i have a license >> we went to cheese cake factory. >> women drivers sorry. >> stereotype. >> it has nothing to do. >> we talk about the gap from last quarter we got back there. >> we got back there and filled the gap shorts covered i think the hail mayory has been -- the china situation maybe they can salvage something there they are taking the eye off the ball if you made me do would you rather higher or lower. >> that's a game. >> that's a good game. >> higher or lower. >> would you rather lower.
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reporter tomorrow. >> the stock has been up on a tear could be the position into that it's up 18, 20% from recently lows still a 25% short interest in this fundamentals or not what you buy this stock for you by it for growth and a bigger vision. but i think you could have front-loaded a lot of that positioning into this print. so on guy's bet, higher or lower i would go lower as well. >> karen, well i think dan didn't you have on a put spread last time? >> yeah, like a -- >> i think -- the put spread i thought was interesting. >> the guys make aood point. we know the deliveries were slightly disappointing we know margins having a hard time making it of theable, the model 3. to me i think you got back up to the level, filled in the gp if you are long stock you think about selling calls against it implied probability of options high take in yoeld or consider a put spread or caller to protect the long position if you want to stay long. >> roger thank you roger dasilva. >> appreciate it. >> tune in to the full know show
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for "options action" on friday 5:30 p.m. eastern. up next, the final trades. >> announcer: "options action" is sponsored by think or swim by is sponsored by think or swim by td ameritrade. ♪ ♪ ♪
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money. a lot of after hours moving to watch in the after showers hours investigation tomorrow chip oelts guidance in line. snap down 3.5% texas instruments down 10% guy adami, which one are you looking at in erms it of biggest repercussions. >> the most important for the broader market is clearly texas instruments. with far reaching ramifications. cmg is specific. snap we can talk about a while but texas instruments what it means to industrials, autos dan's tech names is texan is the answer. >> by the way, watching nic oservice now losing its ceo. so much to track final trade time grasso. >> texan takes the overall mathematic down snap turning green tomorrow maybe help from the semis hopefully but snap i'm long. >> karen. >> yeah an sfroerd run in banks. i think taking a bit of money off the table selling upside calls in bank of america is good thing. >> dan. >> i agree with everything guy said about texas instruments
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and i just think that because of that focus on cyclicals and what's driving the smh trade sell smh on rally the next couple months. >> game war the world series slb. >> more tomorrow at with jim cr 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. 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 some money. my job isn't just to entertain but to educate and teach you so call me at 1-800-743-cnbc. or tweet me @jimcramer. some days i feel like jan brady except of instead of marcia, marcia, marcia it's index funds,
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