tv Fast Money CNBC November 12, 2019 5:00pm-6:00pm EST
final thoughts on the market we lost steam but enough to get a record. >> enough to get a railroaded. the question is have you had a bit of loss of energy now past earnings season and don't necessarily have an identifiable catalyst. >> that does it for "closing bell" today. >> "fast money" begins right now. live from the nasdaq market site over looking new york city times square this is "fast money. your traders are dan nathan karen finerman and guy adami and also joined by lori kalvasin, from capital markets markets grasping for green with only the nasdaq able to eek out a record now all eyes to wal-mart with earnings on thursday we break down what the options market predicts. plus the returns for short sellers and giving tesla a break. we start off with the latest tech company into the payment
space, facebook, the stock jumping after the social network announce the a payment service operating across all platforms straight to kait rooney in san francisco with the details hey, kate. >> the social network is stream lining the payment option was facebook pay think of it as a wallet on facebook, let's you send payments to friends and shop on what's app and instagram this is the latest sign of the tech giant push into payments. we saw a little bit of that with libra and the ambitions in cryptocurrency but what's app and facebook messenger have not seen huge adoption when it comes to the current payment methods. analyst tell me this is way to get the apps working together seamlessly and the hope is they'll be more engaged. facebook is partnering with paypal and stripe on the back end and still support credit cards and paypal checkout. analyst tell me this could be a positive for paypal since it's a partner in the announcement. and facebook pays seems to be
more focused on e-commerce than peer to peer options like ven movement o still paypal stock getting pennsylvania hit moved a little lower. also appearing tor pressuring square look at those shares down more than 3% today, guys. >> kate rooney in san francisco for us how does this shake up in the fintech in the stocks. this could be a game changer given how many users there are across facebook and the business integrated solution. it's easy to us eye the facebook service as opposed to another service. >> that's the tailwind for facebook i'm surprised facebook is not significantly higher after the last earnings release a week ago. i thought it was a fantastic report i thought it would push for the all-time highs of 211 or so. i'm surprised. maybe people are taking money off the table. but this is another tailwind in the facebook story dan yelled at me before saying i
know what you're saying about facebook in the beginning and i will say it. i want to hate facebook with every. >> fiber of your being. >> thank you for saying that but you have to like the stock and i think it continues high frere here. >> karen. >> good for you you've been saying that a while and that's been right even though you hate it. they have political headwinds, right. and aside from the anti-trust there is also, you know, the negative cloud overhoong ha hanging what do you do about political adz? and how much responsibility should they have in all that said, i think this is a good thing. we'll see if it gets traction. reminds me apple pay came out several years ago, almost no traction now it's finding its way a lot more so i'm optimistic. i think it's potentially a negative just for dollars chasing the payment space for them to move around to other securities. >> interestingly kate mentioned she is not sure it's about peer to peer and that's something you mentioned apple pay that's a big
component. when you think about the messenger unit this is where they have seen growth since buying what's app. david marcus was put in charge of that a few years ago. you think of the timing of libra and this noubzment in a short period of time you scratch your head a bit ais aing this was the logical. >> instead of rib ray. >> this was prior to libra get it in place get the $2.5 billion. >> and the dollars. >> the irony about libra it was a dollar-backed cryptocurrency we can't get in the board room and see how it made the decisions. but this is the obvious choice and they have the guide to run from david marcus. and then you say is it about peer to peer or e-commerce would be a facebook pay button across the web all oefrp the world. and then you think about this is one of the most used mobile apps any one as a given time. and you think about china and the why we chat does well.
the e-commerce is part of that but also peer to peer. this is the what facebook bulls have been waiting for for years. and it's odd it comes after the libra disaster. >> even putting aside being in the payment space it's about keeping people on the platform, staying on the platform. because more people staying on the platform, the longer on the platform, the better the ad dollars they get it's the virtuous cycle. >> that's the apple model, keeping people in the ecosystem. it's amazing that people haven't left facebook in droves in terms of what we have seen the last 18 months but nobody cares. the advertisers stay and the user base stays and gross. this is one more reason there. if you are looking for the downstream play. the stock went from $80 to trough in september. topped out at 1209 reemt this $50 level is a retracement
of the move. yes i understand that values is concerned but if you are looking to trade i think $100 gets to $100 makes a lot of sense. >> here is an interesting question facebook riss 3.5% on the announcement of this platform. should traditional financials get a hire multiple for the% of digital business they do i mean should we rethink how we think about a citigroup and jp morgan when was the last time -- i'm not asking that question i was going to stay stepped into a branch but today. >> an hour ago. >> you can't think of the last time i stepped in a branch i do everything on my phone. >> ridiculous. >> and should banks be accorded a higher multiple. >> he we think banks should have a higher multiple for a lot of reasons. but one thing they have been investing in digital enormously. you have yet to see the fruits of the laboring paying off but back to the fintech discussion we know it's forgoty
and overowned. if they dough don't get the full fintech model they should get more than they are getting now. >> people are thinking they don't need a traditional bank anymore. for that reason that's one of the parts of the longer term bear case for banks. on the flipside obviously i love jp morgan. use zell all the time. you need a critical mass i think it's getting there i agree on the multiple being cheap. even without needing to get the extra bump from a fintech valuation. >> that idea, i mean i can't credit for that idea mike may of wells favoring had a note out saying there should be a closer correlation to maybe a tech multiple for certain parts of the business. and of course some of the parts can't be unleashed unless you sell off some of the parts often times. but still maybe we could have the largest banks trading at 2 pe points higher if the consumer businesses were given higher valuation >> that's a significant pump,
two pe points high are in percentage terms that's a big move in stocks i'm in karen's camp, this is more to me a reason why banks don't need to exist necessarily in the world going forward yeah, maybe they can play in the game but if it's a commodity advertised why should you have the high are valuation. >> and it also seems the argument you were making at the top of the cycle i mean to revalue the banks. wove seen it time and time again about what the bank balances thechb investing in tech every top of the cycle for the last 25 years, at least i've been in the market and for some reason you never see multiples get too far stretched from where they are now. back to the original question, mel, ask apple how easy it is to create a bank sort of structure or offer credit to consumers that sort of thing when you come from the tech universe you partner with someone like goldman sachs who doesn't have a lot of experience dealing with consumers the way they are right now with this apple card this is going to be really difficult for a lot of these
guys what you may see is a big bank merge with paypal or something that has the infrastructure and has the tech build already and i would also take it a step further. we spent some time last night maybe talking about google alphabet what they do with the 120 or so billion dollars. if they didn't have regulatory scrutiny, i would tell you the google wahl set a zero and they need a paypal as part of their platform, that sort of thing that would be a logical thing but i'm not sure they can make the $150 billion-dollar acquisition. >> that's an interesting point in terms of google wallet. and if they had their druthers and no scrutiny, maybe they could buy something in the financial space but they can't so is facebook now going to attract the additional scrutiny of regulators because it wants to go into banking. >> the answer is absolutely yes. but i mean talk about scrutiny the guy has been on capitol hill twice, three times in the last 18 months and the stock does nothing but go higher. they've been as scrutinized as any companies and it doesn't
matter we talked about it last night. the google headline in my opinion that should have been more than a $10 move downside. but guess what higher today. nobody seems to care. >> the health data. >> we have been so desense advertised we should be uproar about that's a problem. >> our the next guest says it's not worth paying up for the payment stocks let's go off the charts with todd gordon trading analysis. >> first one is paypal and the conversation you were having is interesting. guy i like what you said if you don't own it you can pie it. unfortunately i own it this is the third worst holding in my portfolio paypal like you said, the $1000 lechl is key and if you could zoom in here you have an inverse head and shoulders, basically a lower low and then another higher low and move higher. we need to hold that level else i'm stopping out i'm not adding a lot of underperformance is the key take away. and paypal the other one with the
opportunity to really make a move significantly higher was square space just really really vulnerable through the uptrend line we obviously have thedown trend which would be a catalyst through the 65 region. but if you continue to break through about 61 in square i would say that's a no touch as well those are the two have knots in the payment space. the one i like, that caught my attention was fisvp you can see in isn't rocket science. where is the strength? we are making a new high in fisvp through 110 i'm looking at a add to the portfolio i like it in the payment space with regard to the consideration about larger cap banks with the higher multiple if they move to the new age of payments. bank of america i think you could do a catch up here clearly a nice uptrend here. with and just made a new high through 33 process i looked at doing jp but it's so far gone in this environment that i said maybe bank is a
little bit of a better play and in the trades you see 50 bps op the upside since october helping the financials resteepening ever the yield curve. bank of america a little bit of a catch up. >> thank you, todd. trading analysis.com lori you said before you didn't like the payment space is it the valueses you don't like. >> that and also the dramatic shift in the market in terms what have investors want we know that yield dividends are more no vogue. you get a lot of that with the banks at a cheaper multiple than you get with utilities and reits which people are pushing back on these days the thing we have seen with the grat grarts great longtime is secular growth stories there is less appetite for that in the market. people have played out the trends andrea worktd a long time some investors are looking for the word but slightly more boring stories at this point
with safety. >> a bore boring story is fisvp they expected earnings and revenue growth of 22% trading at what, 22 times. >> i just looked at it. >> back in the old days you would say that would be growth at a reasonable price even though it's a eabove a market multiple this is the nuts and bolts, the back bone of payments they've been aquis active and done smart things and seems they are getting paid back for it but this is the stock i think you want to buy on pullbacks >> quickly just reported on november 8th a lot of analysts ramp etted the price target the high i saw was $125 li 126 i don't think it's expensive it's boring. so am i but >> never boring guy just sometimes. >> most of the time. >> during the show mostly. >> unfortunately. >> karen for square, i mean it had all sorts of business but it sort of whittled down. >> it whittled down. >> got rid of caviar pink it's the timing on getting rid of caviar was a good move
one of the knocks on the story had been that the rate of growth of the gpb was slowing down. in fact it had plateaued qb did not continue to slowdown that was a big positive. i like the story for square. back to the banks though if i had to pick one i think citi bank has the most upside. >> over jp morguen >> yes even though i like jp morgan stitty hasn't gotten to the all-time high. it's a tenth of where it used to be but hasn't gotten to the last year high and i think it could get there. it has more exposure outside the united states that's been way weighing on it. >> coming up shares of sky works dropping after hours what does it mean for the chip sector apple reportedly tv in talks to bring on a major contributor in entertainment. much more "fast money" right after this ♪
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only with xfinity xfi. download the xfi app today. welcome back to "fast money. president trump talking about everything from the economy to trade talks in the speech at the economic club of new york today. we're joined on set by eamon javers to bring us the highlights eamon, welcome. >> nice to be here. >> unbelievable. >> you guys get to work inside this is cigarette. nice to be out of the weather.
cold on sixth avenue today. >> i can only imagine. >> this was a big economic set piece for the president. everyone expect add major announcement saying something about china, usmca where are we going. in the end he didn't say anything major news. we were thinking maybe a new date for the mcdeal maybe a location for the china signing he didn't do that. but he suggested that that deal is coming. here is what he said >> we're the ones deciding whether or not we want to make a deal we're close a significant phase 1 trade deal with china could happen could happen soon. but we will only accept a deal if it's good for the united states and our workers and our great companies. >> so the president saying it could happen soon is about as we close to the idea of any spechkts on the trade deem he also said he wants negative interest rates in the united states he says it happens in the other countries. he says the federal reserve is
blocking that. he wants the federal reserve to get out of the way-on leash the power of the economy you know more than i do about what it would loobl in this country and the impact but the president convinced that was the right rate today. >> he said something like give me some of that. >> give me that money. >> negative interest rates eamon when you piece together what he said compared with larry cudd low on the "closing bell" earlier. it sounds like president december 15th tariffs could come into play. because cudd low aid there is no movement on tariffs unless a deal is signed. >> and that's been the baseline assumption all along but what you heard today is the president suggesting that there is a possibility we don't get a deal remember he nounsed the deal back in october as having been completed pl well it looks like it's not as completed as we thought in october when the president was in the oval office with the chinese delegation now, the president talking in a way about the possibility that we don't have a deal at all. and we'll see whether we can get there. but he is sort of teasing the
possibility that we're close but he has been doing that a lot and we never seem to get there. >> as a traeg doesn't he have to say if we don't get a deal we go with the stick. >> you have the stick, the carrot, you have to be prepared to use the stick and this is a president who is in a situation politically now, i mean kbeechlment looming we have the major public hearing tomorrow which is base going to be the news of the day in washington but also an election cycle coming up in 20. president will need a win at some point and so the political calculus i think for the president is different than for xi jinping who is president for life in beijing and has the longest time horizon of any president on earth. this president needs to do something before next year i don't think he wants to go into the election wutt a trade deal. >> this morning jim cramer said are we getting trump channelling mnuchin or navarro do you think did it lean one way or the other
listen to larry cudd le on the "closing bell" i don't think larry knew what he was tranl. >> it remiepded me of the depart h line, the president you the hear marine 1 in the-backed process. the helicopter whirling president talks. theeps were the same points the president makes at the south lawn depart yurs a lot of this almost word for word, the rhetoric is what we've heard from the president before. i don't know if it was more mnuchin or navarro ultimately he split the difference and ended up no where. some of the tough op beijing rhetoric we heard. signs of a deal coming we heard before but no real progress in terms of enlightenment where it lands. >> lori from your standpoint i'm curious. if the president keeps doing this, is this enough to keep markets at record highs basically. >> i don't think so. i think we've been enjoying the fruits of whatever is coming out later this year. we've been trading on that since august you mentioned the idea that, you know, trump needs a win at some
point into election year i've been hearing that from investors since the end of august my question is investors and to you as well if he needs a win why haven't we gotten one by now. >> the question is when tp ultimately the timing of this i think matters. impeachment complicate that is a little bit because it could change the time horizon. but you might think the president is looking at the electoral calendar you have iowa, new hampshire coming up in february. the president might want to counterprogram that. and you know, you have something in the back pocket you can take out and smash the news cycle with that might be an opportunity for that if it's ready behind the scenes and we don't no he whether it's ready to go. >> i guess my second question is when we get the phase one deal what's going to be in it and will it be anything that will actually restore business confidence we have seen such a deterioration in business confidence some measures down around recession lows is phase one deal going to fix that. >> we have no idea i've been asking the same
question the president announced the phase one deal in october in the oval office. immediately i went in the press office and said great give me the paper. you know, kwlar the bullet points where -- where are some appraises with writing that show us what's in the deal? and there was nothing. there was -- they offered nothing in writing about what fs in the deal. the chinese -- essentially never agreed that there was a deal on the phase one deal. so where does that lead you? maybe there was a deal maybe there wasn't there was some kind of announcement and still northbounding the same deal. what's in it who knows. it's clear they punted the hardest stuff to phase two and three whenever those are coming. but all the stuff about intellectual property. all the stuff about cyber theft and correspondent theft of major corporate secrets all that stuff is not in phase one. that's in the harder phase two and three and not clear on the time line. >> you know the most important quarter of gdp in a presidential election cycle q 2 of this year.
>> that's when it's baked in. >> the q 2 you want a blowout the q 2 number to sway people's hearts and minds so if neaps the case, you get a deal in q 1. >> right. >> you unleash whatever is going to be unleashed on the economy in theory. hits q 2. >> well, i mean it sets up for it because gdp went from north of 3% piers in the first quarter around 1% in the next quarter. it's trending the wrong way. he can talk about the greatest economy in the history of mankind all he wants unk at a certain point you confuse the economy with the market what we learned if nothing else the two have never been wider apart. >> at some point politically what's the difference between a recession and depression the recession is when your wroer in law is out of work and gregs is when you're out of work multiply by 350 million is where the pliks shakt out next year. we don't know where that is next
year. >> thanks for having me. >> come on inside any time you want for more important the president's speech in new york city and the impact it had on the markets head over to cnbc.com here is what else we have coming up >> announcer: earnings season lighting up with the latest results out of the pot sector. we'll break down the numbers from-on one time industry industry darling tilray. and burger king taking the meatless meat game across the pond but has the plant-based craze run too far? 'lbrg you that and more when "fast money" returns. now you get jeep employee pricing as if you work here. at the jeep black friday sales event, you pay what we pay on select models. like the high-tech luxury of jeep grand cherokee. the most awarded suv ever. or other deals on the off-road capable jeep gladiator. and the legendary jeep wrangler. the most technologically advanced wrangler ever. move fast and take advantage of employee pricing plus at the jeep black friday sales event. jeep. there's only one.
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you know what meansan earnings triple skyworks tilray all in the red after results our earnings whip on all the names. kate rodgers and tilray. bertha coombs stig digging in on smile direct we start with josh lipton at move lower for skyworks. josh >> sky works, 50% year to date heading into the print in the red right now. checked in with craig ellis over at b. riley. he says kwur quarter modest beat outlook average raise. neither as significant has dorvo. know ellis saying he expected in my opinion he thinks the street expected too much from the quarter. he is bullish on the name he tells me it's well fogs positioned for 5g and well positioned for the kind tier 1 customers like apple. of course apple a big customer here on fiefrpg the ceo on the call saying the 5g upgrade cycle is under way and significant opportunity for skyworks given
the number of use cases he says, not just smartphones but industrial iot and ai. and his company he says is at the forefront of the sea change. the cfo talking about huawei another customer that was a headwind given he says huawei is on the american blacklist. he says the company's managing is well. melissa, back to you. >> josh lipton in san francisco. i think maybe the most important thing about that report is what josh said at the first opening of the hit, that issis up 50% this year. we've had a huge run in a lot of suppliers going into skyworks. it's like the tail end of the suppliers report zbroog josh mentioned korvo a keter when they reported gopd up 15% and skyworks up in sympathy 15%. to a new 52-week high that took the excitement that quarter they just reported wouldn't have gapped up. now it's back in the mid-90s, the breakout level and probably a decent level if you bleach in the 5g upgrade story and looking at a stock trading at market
multiple where expectations come down dramatically and then you look out a year and you say okay maybe the huawei headwinds will be gone. sag samsung a commerce and apple a third of revenues this is a place i want to place my chips on the board. >> hang your hat. >> oh there was a chip thing. >> i see what you said chips, like pull the chips. >> semi conductor. >> this boomer think i don't know if i'm supposed to be happy orred is 16 times -- it's not expensive dan's right. but you don't have earnings growths the reason you buy is the belief that the 5g rollout is tremendous. it's a $60 stock in december traded at $100 i think it trades lower than that i don't think 95 is the home the jokeout is closer to 90 and that's where it trades down to. >> lori do you like semis. >> they haven't looked that cheap or expensive to us but interests not a-free pass for anybody in the earnings season if you have gone up 50% heading into a print these you're less
than perfect investors are looking for reasons to take profits. >> let's get to smile direct club the stock tanking after reporting earnings bertha coombs has more on this >> despite the fact this they did have a top line beat, melissa, they didn't raise guidance for some investors as much as they would have looked they are saying now 750 to 75 a million not as big a raise the original guidance had been for $747 million one of the issues that people were concerned about on on the call is the legal expenses kyle wales get off the phone with him. he said yes they doubled from second quarter to third quarter and expected to be high in the fourth quarter they are not break being them out but they are feeling regulatory pushback in a number of states. not the least of which is california, which passed a law saying there needs to be more x-raies involved with people getting aligners here is what ceo david catsman had to say on the call >> we've had over 30 state board
inquiries. every single one we've been cleared. there's been no adverse actions. and i think as investors out there you have to understand that's the nature of this disruptive business, which is also what keeps competitors out, which it's really a barrier in a lot of respects. >> one cht things he says is they're going to be more proactive and rather than waiting and seeing what happens in each state. they're working with bill frift who helped teleadopt push through legislation in a number of states. and they're looking at pushing through teledentistry legislation to remove embed mts. >> berth aifr here at the nasdaq this is one of the ipos came to market, seemed like an interesting sort of business industry but the regulatory has not caught up with what this industry is. and here we are. it's sort of having to deal with the equips. >> right also makes you think, you know, that maybe it shouldn't have gone public, right. it was a different era, even
though only two months ago just -- and a lot of loss piling up aside from the legal i don't know with, this is one i think it's sort of orphaned a little bit because i don't know, it's a vicious cycle you know, been disappointing and continues to dispinpoint there is a big short interest. i'm surprised that hasn't been more support. >> she they shipped 106,000 aligners last year growth arthro, revenue beat but the more money they make they lose not a good business model. sounds like uber you're saying i know you have a solution for these guys and gals. >> go to brett itan. >> boris johnson brexit braces. >> braces over there means suspend zbleers that's why it's geenz. trick them all into get -- i've seen those movies. i'm just saying. >> very bad marketing. all right we move on let's turn to tilray, the stock slightly loafer lower after reporting earnings processes
kate rogers with more. >> the company reporting a loss on eps and slight beat on revenue to $51 million in the quarter. that represented a 40 oh% jump year on year increasing six fold and prices fell by half the stock had a run up after going public trading as high as $120 right now as just about $21. year to date down some 70% our wilfred frost asked the ceo if he regretted going public when the company did here is what he said on "closing bell." >> the last year has been highly volatile but there is a lot of pressure on the entire industry what i'm excited about and see it's still day one in in industry if you think about 41 countries legalizing for medical that will increase to 80 and currently only two countries in the world legalizing for adult use you are guy and
canada >> they are saying they are required to grow on the medicinal and recreational side. and they expect growth in q 4 into 2020. >> kate rodgers thank you. it's interesting to ask the ceo whether they regret going public the fact of the money is they got money when it was available. isn't that the most important thing when you go public as a company? >> yes if you need the moep for sure does we work they went public at any price? i bet they do. what's your -- you have the most in-depth knowledge of this space on the desk i think. what do you think of the industry at this point >> well, in canada there is a problem in terms of meeting demand that has been the problem there which is a good problem to have. at the same time pricing has been shaky they've got a whole bunch of new products that are going to be legal in canada come december 15th, the edibles, vaping
products but those are not necessarily seen as growth it's really the medically and recreational and recreational is the bulk of the canadian market. there are a lot of unknowns with cannabis even in the united states. >> if you look at canter fitzgerald she initiated a number of names. but tilray, market neutral $20 price target process they're all market neutral process you look at tilray the stock it's basically been upper left to lower right. only going straight down the last year. until that trend changes which it shows no sign of i think the stock continues lower. >> dan. >> i'll say we talked about smile direct, tilray, all the other money losing ipos that gone tourp, mel it's great if you put the money on the balance sheet that's how you building out the business but it's also a time where it seems some of the expect la active lights should be going off a little bit these are companies without public comps, not profitable not
telling you when they'll be profitable they have interesting regularry issues from ride share -- the list goes on and on. i think it's interesting with airbnb this is the last one to come and you know just like we started hearing stuff about uber and lyft and starred hearing with about we work we are hearing about airbnb and some of the issues they have on the regulatory front the issues they have on users that sort of thing. it's interesting, the biggest of this entire cycle can't come out and be successful for the people who buy them in the public markets. then you have to start to rethink how we're doing this and this goes back to guy's biggest villains of the 21st century. >> central bankers ben bernanke. >> maybe they never get here with the valuations if interest rates weren't so lo low and our president wants to go negative can you imagine the goofiness in the next cycle with negative interest rates in this country. >> something to pond are but if airbnb goes direct listing can we use that as a
taking of the temperature of the market. >> this is a massively disruptive company as you would have said about we work. they are disrupting massive industries ted end of the day global domination is part of it they need to raise capital that's ha big part amazon and sochl the companies amazon lost 85% of the value from the highs 2000 to 0 losing 65% from the lows of '09. you can't rely on what the equity markets give you. and tilray, it went public at 17 trading at 21. that's the only time they raised capital. how high did they get. they should have been doing secondary after secondary and ensuring. >> up to 200. >> i don't know how the board rooms work but they don't seem to be making good decisions right now. >> coming up a whole new world for disney but the rollout of disney plus not exactly magical.
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not without tech issues. let's get to jewely boorstin in los angeles with more on this. hey, julia. >> that's right, melissa disney shares gaining over a process percent after they make a move away from the tv bundle $7 a month is what it costs. 10 original series two original films lawmakering with 7500 episode and 500 movies from the flagship brand with pixar marvel, "star wars" and national geographic. now, the launch did have some hiccups. about 7,000 people reporting streaming errors this morning on the website down detect are. disneyland responding say the consumer demand for disney plus exceeded oh our highest expectations while pleased by the response we are aware of the current user issues and are working swiftly to resolve them. we haven't heard updates from disney since then. suns unveiling back in april, disney shares gained 18% while
shares of netflix facing new competition from disney and losing disney content have fallen about 20% but today's law firm is not just about competing with netflix and soon hbo max but also about building disney's digital advertising business it's bundling ad free plus with hul. you apt espn plus both with ads offering those for $13 a month with a $5 device h. lu is competing with youtube and pluto. and nbc universal peacock. they are tackling the ad supported digital market which disney projected worth over $50 billion in the year 2022 now, in the battle for content in the streaming wars it's continuing we have just confirmed that former hbo chief richard plepler is now in talks to sign exclusively at apple this comes as apple looks to ramp up content kofrpgs for
apple tv plus which it launched less than two weeks ago. back to you. >> julia, thank you. so plepler was key at hbo does that make you optimistic about apple. >> that's good talent but the race is so much more competitive. you see the logos of people getting into the business. i like apple, i am long apple not really for the tv but the rest of the business. >> dan, you are the person high think when i think of disney plus and wanting to sign up immediately. you were there at one what time. >> worked rate now i i was watching the mandalorian stream here. i think normally with technology you say let's go to the ones disrupting that's been the netflix for years. right now what the disney might prove in the next year or two is you stay with the incumbent who will will kablize theize existing businesses.
i throw comcast in there with a lot of levers to pull. the cord is getting cut. now these guys have been owning the kroents. throw a at any time in there with warner. i think these appleby platforms to to be reckoned with a long time i said a couple years ago we we'll see the bundling unbundles. i think this is like generational stuff definitely the which that bob iger does it with disney. >> you mentioned streaming wars and the players. but the model are different. look at hulo ad supported or not ads depend kwhag you paid for and comcast offering is ad supported. how do you compare that. >> there are three or four different models roku has its own model in order to own disney you have to make assumptions. are they growing to higher valuation given the business they are in trades at 23 timesish next year's numbers that's a premium valuation we talk about cbs is at 7.
i understand theresa a different business but is it a third or so of disney i don't know the bet on disney you continue to see the earnings growth and growing to 25 valuation. that's a big bet to make in the environment. >> but they are spending so much. >> at some point to pays off. >> right now we're at the fronted front end of the spend. >> that's the bet you're making. is the spend going to pay off? >> right. >> that's the bet with netflix to a certain extent. >> up next wal-mart on deck with earnings this week we break down what you can expect when the retailer reports. plus tesla shorts getting burned as the car makers revs up. don't go anywhere. much more "fast money" right after this for silky hair, glowing skin and healthy nails. nature's bounty, because you're better off healthy. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business.
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the lexus december to rembember sales event lease the 2020 nx 300 for $329 a month for 27 months. experience amazing at your lexus dealer. welcome back to "fast money. if there are any cracks opening up in the consumer trade, nobody told wal-mart. the retail giant up a whopping 28% in 2019. and when it reports on thursday earnings that is, options traders bet on even bigger gains. realm capital founder robert dasilva breaks down the action what are you seeing. >> wal-mart implies about a 4% move up or down. that's a little higher than average over the last four quarters it's been about 3%
most likely due because of the last quarter we had a 6% move. we'll see what happens there as you can see, two times the calls have traded versus out of the puts so pgs ohs traders are implying we think there is a larger move to the upside. most -- most of the opening interest has been in the 120 strike calls and the 125 strike calls. so as you can see, yeah, this uptrend from the december low touching the august low, where a right there at the highs based on theimplied move you could see a nice upside move to well over 120 or on the downside talking around 115 where there should be support. if you are long the stock, either own it or get into the calls which i like that trade up here. >> roger thank you so much roger da civil an what do you think of the consumer at this point, lori. >> we think the consumer itself is doing just fine we have gone through a brutal reporting season in terms of volume of stuff hitting every
day. and we were skourpg the reports looking for signs of weakness and couldn't find any. now, i think the stocks are a different story. i think everyone knows the consumer has been fine all year. at this point epii'm not sure what the new incremental news is to come out. we say if you're a believer in the cyclical recovery. buy the banks, financials buy industrial stocks, machinery stocks but we actually downgraded staples about a month ago so we'd sit on the sidelines with this. >> for more options being checks out owl the full show. "options action" 5:30 on friday. and food stock bringing you the most lucrative short bet in year np and jim talking to the interview of mick rn technology. we are live at the nasdaq in times square much more "fast money" still ahead. >> "options action" sponsored by >> "options action" sponsored by think or swim by t
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have liked but tesla is no longer the best bet for shortsellers that goes to uber. short sellers grabbed a billion dollars in profit since the company going profit back in may. grub hub being sliced. short sellers lost $80 oh million on teslas since turning around is it finally time to declare elon musk the winner guy. >> he is the winner today. good for him i thought the stock was failing at 275 you see where it is now. good for him bad for me. but there is a lot of ruppway left for the tesla story to go pare shaped in a major way bask in the glow now but i mean this to me is not the final chapter of the bull case i think there are more to go and i think the stock trades lower at some point. >> you can see getting into a virtuous cycle and the higher the stock trades the more sort of protection they can do in equity offering if they need to, right. >> right. >> so that cures a lot of ills
if they're able to do that buys him a lot of time. so, i think at the moment he is the winner >> yeah, he just announced today they found a site for pennsylvania new berlin gigafactory making cars locally in europe and china and in the u.s. >> it's interesting when you think about the market cap of uber and you think of the market cap of tesla they're similar and two different approaches by the ceos musk is always trying to burn the shorts dara trying to do his thing makes a few mistakes like on axe owe last night i think i'd go with dara although he muffeed the other night but musk all this stuff we're exhausted like other things sfla you don't think he improved since then. >> i think he has. just the clock is ticking until the next time we see something silly and the stock inthgog e other way. >> all right up next, final trades.
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it's unbelievable what you can do in the prius. toyota let's go places. "mad money" is next. time for the final trades. dan. >> yeah, xrt, the retail etf you sell here too far, too fast. >> lori. >> most people underweight small caps started to have a breakout if you believe the cyclical recovery they do better. get back to neutral. >> thank you for joining us lori.
>> kaern. >> i like to buy the rumor sell the news but hoping of buying the glitch in disney i think it's going to be huge. dan likes it too disney. >> dan likes it. >> dan likes it. >> sell it pay pell against $100 melissa tesla sew you team back here at 5:00 "mad money" with jim cramer starts next. my mission is simple, to make you money i'm here to level the playing field for all investors. there is always bull market somewhere. and i promise to help you find it "mad money" starts now my job isn't just to entertain but to teach you call me at 1-800-743-cnbc. or tweet me at jim cramer. sometimes the glass is half full sometimes it is half empty but i'm going to introduce you to a whole new category tonight. a third cate