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tv   Fast Money  CNBC  July 25, 2019 5:00pm-6:00pm EDT

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have sub quarter gdp number out tomorrow >> that's right. >> it is the last big reading before the fed meeting. >> right >> eric rosenberg in boston said he wants to see all of the data before deciding. >> and the data has been generally okay we will see if we get 2%. >> we are out of time. thanks for watching. that does it for "closing bell." >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square live, i'm million your traders the desk are tim seymour, karen finerman, dan nathan, guy adami. a trifecta of tech titans wrapping up the busiest earnings day of the season. alphabet, amazon, intel, all on the move in the after hours session. those conference calls getting under way. josh lipton just got off the phone, deidre bosa standing by gene munster is ready to break down the headlines coming out of the calls. alphabet soaring after the company beat on both the top and bottom lines
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guy adami. >> yes, mel. >> what is your take on this big surprise >> you know, dan, i and karen were talking before the show tim gets here typically with 40 seconds to -- >> hey. >> it is true. >> i said this quarter came out of nowhere and dan made fun of me as he typically does. the eps beat is extraordinary, beat on revenue. good for them. stock buy back operating margins 24%. i said to karen, i don't know, you can make this argument, i don't know if it is true or not. google, alphabet may be cheap you now than with the move yesterday. to karen's point she said to me, it might make more sense to buy it today, up 90, than at the levels it was. >> i haven't gone through the mass, i don't know how much one would adjust the earnings up what is happening here is google was in the penalty box after the disappointing quarter that they reported last time, and they didn't seem to have either a grand handle on it or they weren't -- they were not able to
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convey confidence that, you know, this was a temporary thing and that they would reaction sell rate growth so i think there's a bit of a rerating back from out of the penalty box to now you're back in good standing some me this $25 billion share repurchase is fantastic. this balance sheet, it is almost like an albatross of cash, one of the biggest cash hordes in the world. so for them to -- $25 billion, it is a very significant move. thank you for doing that as a shareholder, it has been very frustrating that you haven't. i think it is great. it doesn't say how long, but just from time to time still, it is very good so there's a lot to love in the numbers. also, we don't have clarity some to of the things yet the call is now. but i really do think there's back out of the penalty box, so that's very good. >> so i would highlight what you are talking about on the buybacks i would call it their apple moment remember when apple made capital markets a lever they were going to pull in terms of buybacks, we have been waiting for ruth porat, coming from a more
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traditional cfo environment, who has been seen as someone who brought a lot of transparency to alphabet and she has as karen pointed out, the last quarter where effectively we were hearing about an fx head win the reason for coming in light was complete garbage it is transitory and we haven't had those fx headwinds. >> right. >> i think it is an important moment for google to get the confidence from the capital markets as much as show that the core business is very much alive. >> you guys make it sound like google doesn't buy back stock. when ruth porat came in, they announced a buyback of stock. >> minimal. >> but the stock rallied a lot back then because they made a commitment to do it. >> no, it is because they broke up -- you could see they had more clarity it was really important. i know you are saying it dismissively, but it is important. >> of course. >> that's all right. >> go ahead. >> all right as far as the quarter, the last quarter on a $30 billion revenue number, they missed by a quarter. they said op ex would be growing
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less than expect, and that should be good for what this quarter showed, eps kind of beaten here. they talked about fx head wents which hit the stock last quarter. you have a billion dollar f kperks beat, the stock coming in was only up 9% on the year versus its maga complex. we know apple and amazon up 32% of the year. we know microsoft was up 38% of the year this is the one that like you said has been in the doghouse. if you look at q1 and say it was a one quarter blip, now you are back in business it is that simple. we are back to the level, gap down 212 back in late april. we know the doj and all of this stuff is lurking out there i would be very surprised to see this thing back up at the prior highs. >> to dan's point in terms of whether or not the first quarter was a blip, wall street walked away scratching their heads. they had no idea what was behind
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the revenues slowdown. they were writing heeven in this quarter, we have no idea why the slowdown do you write it down >> you give them a pass. the bull camp will say valuations still make sense, they have a dominant position. yes, this doj stuff is scary but it is going to take some time. i think if you are in the bull camp you could say, you know, we'll give them a one quarter pass other people will say they shouldn't be as lumpy maybe as they are that could be the other side of the coin you have to say the last two quarters have been lumpy on the bad side and this one is lumpy on the good side. >> simply, it is a company that if you look at the relative value to rest of the sector, dan talked -- i mean up 10% -- actually, down 13 since the last earnings period. just makes sense. >> joining us is gene munster, loup ventures. grade to see you again. >> hi, melissa. >> i am posing the same question to you do you completely dismiss the first quarter and what happened then because it was able to post such a great second quarter
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>> i largely do, and the reason is that google has been the gold standard for revenue visibility and stability amongst large cap tech over the last three years the revenue growth on an fx suggested basis has been between 20% and 22% effectively during that period. i mean unprecedented, and that dipped as we've been talking about here after the march quarter. the simple answer as to the reason i give them a past from the past quarter is their history would suggest it is, in fact, a very reliable revenue growth story it comes back to the theme that they are the oxygen in the internet they get us in a lot of different ways, whether it is search, youtube or cloud so simple answer is i give them a pass >> gene, it is karen let me ask you something so given this quarter, how do you think about valuation here what is the multiple >> i think that -- i agree with the logic this is cheaper today
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even with the move higher in the stock. i think that this is a great company. i don't think -- i think these results are most impressive and support the valuation. the multiple should go higher. i think if you look at the broader multiple space, apple is well under what i think it should be, but google should be higher as well i am also impressed by some of their discipline around op ex and still growing pay clicks, even though it desicelerated yer over year. all of in suggests that the multiple should be higher. unfortunately, we have this issue around what is going on with the government regulation, and that i think actually supersedes any of these positive fundamentals, at least over the next six to twelve months. >> so, gene, that's a good segue. you know, obviously facebook investors during the week were kind of excited about the fact you could define that ftc fine, but it was really related to some privacy issues, and then the stuff going forward will be really important really we haven't had any framework for alphabet do you think there's something
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coming in 2019 where we get some sort of guidelines about the sort of advertising that these -- political advertising that can be done as we go into 2020 because we know it should be a big driver for all of these platforms. >> yes, they will get a bump from that, and that's largely not reflected in the street numbers. so, you know, the call's going on right now they don't give official guidance, but they hint to where things should go so we will get some insight about, you know, how they think about maybe the political season a year from now. so that definitely is a positive, but, again, i put this in the context of there's a lot of unknowns around how they -- the reason why they can continue to go revenue so steady over the past three years is they have an incredible amount of control about how they monetize. they are working the lever between the user experience, number of ads you want to show and what kind of revenue they want to get. it is an incredible model. if if government tinkers with that, then that could have a profound impact on the growth. i'm not suggesting it is going
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down to 10% any time soon, but the simple point is, yes, the political season is an opportunity for them. >> right. >> but, still, again this overhang is bigger. >> quickly, gene, your grade for alphabet's quarter. >> oh, professor munster. >> professor munster is a-minus. >> nice. >> i think that everything really impresses rebound here, and the only -- my only negative was -- even though pay clicks were still impressive, i wish it would have been a bit better it was hard to find anything negative. >> gene, great to speak with you. we will check in with you a little later on as alphabet shares are higher by almost 9%. >> thank you let's get to intel here. two big headlines here the stock is soaring after it reported a beat and apple making it official, announcing it will buy the majority of intel's wireless chip unit for $1 billion dan, what do you make of the move >> listen, i think we had a lot of data in the last week or so look at texas instruments that from an analog perspective they're hitting on a lot of
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cylinders. there's scepticism there we saw what taiwan semi said last week. they called the bottom texas instruments said they're in the third quarter out of a five quarter cycle where things are kind of bottoming. when you think about a cyclical group like that, investors will buy the stock before the cyclical bottom hits, before you can call it. that's why you are seeing this stock that's gone from the high 30s now into the mid 50s i will make one point. the stock faced a lot of resistance despite its relatively cheap valuation to many of its peers at this level. i'm not sure it is a chase at 55, 56 bucks. >> i think the sentiment going into this was horrible in its name i think they were painted as, first of all, that apple deal highlights they've been terrible in new markets, right? they made disastrous acquisitions, exited mac au fee, you name it. people need to see them back to what they do the ten nanometer processer is something i think that will be a driver for these guys into the second half of the year.
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people are watching that. >> i think this, similar to alphabet in that the sentiment going in was terrible. they were in the penalty box as well they announced some pretty good thing. they could have kept it a little closer to the vest if they wanted to and weren't confident, so i think they probably feel pretty good about the quarter. so maybe a little rerating here also. >> dan brings up -- >> should -- >> i thought you were about to play would you rather. >> no. >> you had that would-you-rather face. >> why don't you play it >> maybe i don't want to play. >> no would you rather tonight please anyway, intel, please. >> half the valuation of texas instruments. i don't think it deserves to be half think texas is too expensive and intel is too cheap i still think there's room it is encouraging to see operating margins north of 30%, at 31% much better than what they had guided and much better than what the street was looking for let's get to amazon here i want to round out our tech trifecta, falling after hours on an earnings miss how should we think about this, tim? >> bottom line is people wanted
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to see i think more top line growth in other words it was a case -- we're focused on profitability because it is a place where i think people have the easiest place to check i think if google -- sorry, if amazon was going to excite people on this print, they were going to do better than 2% top line growth. that to me is the crux of it people want to see it. look, aws, which is what gives everybody the reason to take almost whatever multiple, although i think it is getting very com oodotized out there. >> you can drive a truck through their guidance at this point it comes down to, you see people saying all the time when they want to stop spending and show the operating leverage and the stock goes up on a print like that they are not worried i don't think particularly quarter to quarter. you want to see market share gains at microsoft and google and others where they're competing on price that's been the long-time bear thesis on awf for ten years. it hasn't played out but in the
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near future it will be more competitive. >> awls decelerated, down from 42% in the first quarter sequentially down, and 46% in the fourth quarter of '18-year on year. >> without question the space is comodotized. it doesn't mean there are not growth remember we talked about this, we played the game with eli -- how would you like to be cast as the ugly in "the good, the bad and the ugly?" >> too cool. >> that would probably be my role on the desk we talked about amazon the setup wasn't good. going from 1750, pressing against the all-time highs and we discussed this. now you say to yourself you have a major potential in a double top in the name. i think you have to stay on the sidelines for the next couple of days
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we have been steadfast for the next couple of days. >> jim cramer talks about wait for the conference call. here is one to your point guidance you could drive a truck through. we need a lot more color, a lot more nuance. wait for the call. i think it is 5:30. >> yes by the way, spending on the one day shift was a little bit more. >> i think a lot of people expected that. you know, it was initiated in the last 24 mont or something like that. here is the thing. we are talking about these little moves in massive trillion dollar names, literally. if you think how amazon is moving right now, at the end of the day though it is really important to remember that, you know, this stock sold off, what, 30% in q4 like that. people were wondering every day, what was the thing up here i think a lot of investors are being very complacent if you are playing for a massive breakout of what guy said could be a double top, you need something else to give it a bit more torque in all of these names to get them going in a straight line. >> more and more -- >> you know, i had a torque wrench in college. >> that's nice, guy. we will have much more on the tech earnings coming up. first to breaking news out of
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washington elan moi has the story >> melissa, the house voted to improve a deal that would increase the debt ceiling through july 2021 and also raises the caps on federal spending by $320 billion over the next two years the final vote tally was 284 in favor, 149 against this bill heads to the senate where it will get a vote next week, and the president has said he will sign it if it lands on his desk back to you. >> looks like a done deal at this point ylan moi in watching. >> as always, a great job by ylan the fact there was tension around the news, no way. in fact, that's a problem because the debt ceilings continue they're not market event because they always get solved the problem is if you look at the deficit and you look at where we are ten years into an expansion, it is a problem at some point. >> the earnings report continues on "fast money". starbucks, mgm, also on the move after reporting results. we will bring you the highlights plus, we are celebrating the busiest day of the earnings
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season with a good, old fashioned game of trade it or fade it. >> sweet. >> we'll find out if these movers belong in your portfolio. much more "fast" right after this
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welcome back to "fast money"
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i i'm melissa lee. wall street wrapping up the biggest day in the season. one in ten reported results today. that got us in the mood for a little game of -- >> trade it or fade it. >> they jumped it, mel. >> come on. >> they pulled the graphics too quick. >> i went off script starting with american airlines, putting that aside, guy, karen, it was down more than a quarter of a percent trade it or fade it? >> trade it. i still did a great piece with the ceo where he talked about -- it was so focused on the 737 max, when will it be in service, when will it be in service i think there's so much noise and so much cloudiness surrounding that we can't see through to the '20 and '21 where they talk about good, free cash flow it is very cheap here. the demand is there. you know, i think it was -- it actually traded at much higher when it opened, 34 and change i would be a buyer right here. i like it. >> i agree it is the ugly duckling of the big three, i think is the safest terms we can use these days
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unless ducks are coming after me as well. >> right. >> delta is outperforming. their operational excellence is what i would highlight this is kind of a pull back for a range trade i think offers an opportunity. >> up next, look at the rally today on an earnings beat. trade it or fade it, dan nathan. >> i think you trade this one and use the breakout level, just about 40 as a stop to the down side a lot of these guys have been all over the homebuilders and when you look at the suppliers, mohawk is starting to act a lot better these are relatively cheap stocks and they actually have been trading in a constructive manner you have results like that you have the 8% gap higher to new highs. i think that prior high -- i don't know, where is it, guy >> $46, january 2018. >> of course he knew it. i think you play for that. you play for new highs but stop at 40 bucks. >> you are mentioning stanley, black and decker. >> and sherwin williams. this would be similar. so -- and similar in market. so, you know, i would think looking for home depot and lowe's to put up good numbers.
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>> all right to the semi conductor. down from record highs after revenue guidance missed estimate guy, trade it or fade it >> trade it. i have to be consistent. we have been trading this for a while. the quarter was fine, the guidan guidance was light and i think it was light because they took into consideration the u.s. government is cracking down on one of the entities xilink trades with. the quarter here is valuation. it didn't sell off as much as it could have that's why i would trade this. >> let's get to 3m shares falling despite a beat on the top and bottom line. trade it or fade it? >> fade it this is an expensive company, getting a one-time game from divest tour. it is not an exciting place to be if you were oversold it is one thing, but if anything the number was not that great and look what the stock did on a was a good number. nothing. coming un, alphabet soaring on results
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what the ceo ruth porat told our own josh lipton that every tech investor needs to hear plus, starbucks heating up in after hours, hitting a fresh m lia le wwih. i'messe,e ll be right back after this. but perhaps this year, a more exhilarating endeavor awaits. defy the law nature,at the summer of audi sales event. get exceptional offers now.
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♪ welcome back to "fast money" time for earnings whip shares of starbucks and mgm moving higher after reporting results. we have full team coverage on the names. standing by with mgm but we start with kate rogers all over the conference call. >> hey there, melissa. starbucks out with a strong q3, beating on every metric,
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revenues hitting a new all-time high comps rose about 6% globally, 7% in the u.s., including a 3% bump in traffic across all data parts even in the afternoon which is notoriously tough. comps were up 6% in china. on the call the ceo said the comps in u.s. and china were thanks to similar initiatives under way. take a listen. >> the strong performance was driven by three key factors, an enhanced customer experience, relevant new beverage innovation and accelerated expansion of digital customer relationships the initiatives we are driving in the u.s. to simplify work, allocate labor to better meet customer demand, and improve our customer connections, all contributed to the strong performance in comp transaction growth in addition to the improved customer experience, we are delivering exciting new beverages that are resonating with customers particularly our cold beverage platform
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>> starbucks reward numbers up to 17.2 million, a 14% increase year over year in the u.s. 9.1 million now in china the company just took that equity stake in bright loom to license technology and increase usage at licensed locations globally johnson said the digital relationships increase the frequency of visits. important to point out last year in june kefrpjohnson laid out a for growth the stock fell over the past 12 months it is up and he said the growth is firing all on cylinders this report seems to prove it. back to you. >> how are they competing here at the nasdaq? >> the call is still under way but johnson said on it they're looking at smaller format and quicker speed stores to get customers on the go, in and out in china they have a big experience offering in china, that is one thing they are starting to get into in addition to the regular format stars we have here and
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abroad. >> thanks, kate rogers by the way, lucken is up 2% in the after hours session. it was an extraordinary quarter for starbucks. >> it was. the same-store sales numbers were incredible in china and here as big as it is, to is the same-store sales numbers growing, good for them i think the digitalplatform is working for them dan, stock is at 96, going to 100? >> listen, this thing at 85, you should have known it was going to 100 i actually had the wrong side of this i will tell you they put up a decent quarter last quarter and the comps were not as good as they are the comp growth is accelerating here, both in north america and china. that was the base case, it was going to be decelerating you are talking about buying the thing at 30 times next year's earnings and it is growing. >> 32 times. >> yeah. i mean so, you know, to he in i guess it makes sense i just don't -- have at it, tim. >> he is he owns it. >> i'll buy yours and guys because i have been long on the stock for five years
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when their growing u.s. comps are at 7%. >> i know. >> it is still the core market these guys are passing on price increases it seems like quarterly. so if you look at their ability to actually survive in a time when their labor costs are going higher, right now this company is bullet proof in my view. >> you pay, what, $10 for your frapuccino. >> it is funny you say that and you have seen it firsthand i don't buy myself. >> you drink other people's. >> i will say this i was in austin, texas, and there was a starbucks in the hotel. i got a sausage, egg and cheese on a muffin. >> how did it go >> it was banging. pretty good. i digress again. america's comp is up 7%. emerging markets they beat, and china they beat. it is incredible the knock will continue to be valuation. >> valuation. >> but the market is looking past it. >> let's get to mgm. that stock popping after reporting earnings contessa brewer with the details. >> mgm shares climbing, results
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on expectation even though it beat consensus in las vegas and macau, the property earnings before interest, tax, depreciation, it is considered an important metric. they are tackling one-time costs here associated with restructuring. those costs and expenses associated with cancelled contracts, swaps and debt, dragged down the earnings this quarter, but it means the company is on track to deliver 100 million in lift the second half versus the 70 million it had expected jim murran on expectations for the future here. >> as we look to the future, we expect to benefit from quite a few tail winds with improving property earnings, strong las vegas macro trends, and mgm 2020 benefitting us in the back half of this year and into next year. >> let's drill down here sports betting, strong convention business, strong. leisure business, he says improving. this quarter las vegas saw a 12%
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decline in gaming revenue. the house had some bad luck with table games. there weren't as many gamblers playing baccarat we heard it before and i learned there are fewer chinese visitors in las vegas or in other places around the world for that matter currency costs are a challenge the macro economic picture in china, we talked about that yesterday with las vegas standards a little bit, ongoing trade tensions the vip segment is sluggish there. we heard it from other companies. mgm says it is strong in mass gaming in macau. david katz just told me the expectations were set comfortably low which set mgm up for a solid quarter. he said, i expect most of the street is still wondering what the activist on the board will come back with he addressed it on the call just now and said the committee is exploring all options. whatever they are, it has to enhance free cash flow per share. it is not clear that selling
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would enhance free cash flow, guys. >> contessa, thank you contessa brewer contessa mentioned sands sands versions mgm, two different stories. is the takeaway you don't want to be exposed to a more china centric play, tim? >> certainly right now, certainly based on what we got yesterday also i will say part of the story has been real estate montization which has gotten people frothed up that to me is the differentiator between the stocks. >> it is interesting wynn on august 1st now you have to play the calculus, they're heavy macau as women. las vegas sands said bad things. you want to take a high on wynn, which is probably higher in the after market with mgm with the move higher out of the three names we just mentioned, it is still the cheapest of the three. i think there's upside on mgm on the backside of this quarter. >> wynn is up .4%, but it did lose i'm sure in sympathy today.
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"fast money" friend gene munster wl ll over the earnings calls heilbreak down what the tech titans are saying about the quarter when "fast money" rurngs
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welcome back to "fast money" i'm melissa lee. alphabet and intel soaring on earnings, those moves accounting for more than $75 billion in added market cap those conference calls are wrapping up. we have team coverage. jon fortt standing by on intel, but starting with josh lipton who is covering intel. josh. >> kind of oppenheimer's jaabou the print. there's concern about the company heading into the print they accelerating, jumping 21% this refers to a metric that tracks the company's coore profitability, up 16%. he notes a lot of hedge funds were short this name, explaining the pop in the after hours when you are having that kind of move you are allowed to take a victory lap. here is cfo ruth porat on the print. take a listen. >> once again our results were driven by ongoing strength in mobile search in particular as
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well as youtube and cloud. our total revenues reflect an acceleration in reported and constant currency revenue growth across all regions compared with first quarter. >> melissa, the ceo was also on the call and gave metrics about cloud business he said google cloud reached an annual revenue run rate of over $8 billion, so lifting the curtain a bit. that's something investors want, more disclosures from google, and you are getting new metrics. google cloud has the new chief, t thomas curran. they are going to triple their salesforce over the next few years so gunning for amazon and microsoft's business as you mentioned at the top, i had a chance to catch up with ruth porat i asked her, listen, you are facing more regulatory scrutiny from doj, and some folks thinks, i asked her, you have a primary target on your back given your dominant position in search.
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so told me in response, listen, we are subject to oversight in a number of areas. it is not new for the company, she told me, and we are engaged with regulators around the globe for quite sometime back to you. >> karen has a question, josh. >> yes, josh i haven't heard the call did they break out or talk at all about waymo? >> she did mention waymo a bit think they said something like 1,000 active riders. obviously a big question, karen, is really -- you know, we've heard our colleague, phil lebeau, talk about this, when are they going to branch out between the trial area, the metro phoenix area is 2020 going to be the big year, 2020 when waymo sees a big rollout? i did not hear her address those specific questions on the call though no. >> josh lipton in san francisco. thanks a lot karen, your thoughts on the conference call so far >> a lot to like good for her she got a lot of feedback from the last quarter that probably wasn't so great, so i mean these are great numbers. when you think about the scale
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of this business to have this kind of reaction sell ration, numbers so big already, it is extraordinary. >> yes, 8 billion in cloud, that's extraordinary we are not even -- we haven't even talked about youtube. we haven't really talked about some of their agenda in linear tv, that their google marketing live event that they outlined i think an interesting strategy there. we haven't talked about google maps we have not talked about the products i think we were leaving that stuff for dead, not youtube, but i think the other products are something that i think people had kind of said, you know what? we know there's some optionality in there but the company is not executing, i'm punishing the company? the call options. >> i think the call options are still valuable. >> in terms of youtube, it was a source of a question in the last quarter, right >> yes. >> morgan stanley was coming out, saying that the quarter's shortfall was because of unprofitable changes at youtube, and youtube is the area under scrutiny right now in terms of how quickly videos can be uploaded, violent videos at that. >> yes, i mean, listen, it is
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one that's going to play out but it has been a huge growth area for them i will make one point. you got geeked up about the $25 billion buyback. >> by the way -- >> there's a couple of things, what did we say? josh mentioned the cloud growth. they talked about ramping up salesforce there they bought this company looker, which is cloud analytics this company should go out and hi buy a slack, $25 billion for that and have them run the enterprise division or something. those are things i would like to see them do, especially when you think about the head you winds they have about online advertising because they have the monopoly i would be moving hard into the commercial space right now. >> i don't agree it is a giant purchase and they could afford to do both. >> what are you talking about? salesforce just paid $17 billion for tableau. it is happening. microsoft when they bought -- they bought linkedin for $26 billion a few years ago. talk to people about their integration there, with their cloud services and what that's doing for them
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these guys need a jolt they need a jolt and they need to get going on the commercial stuff because they will be having their core business eroded we haven't talked about amazon's advertising business i haven't seen the number for the quarter. >> i want to allow karen her chance to speak. >> who is geeked up, by the way? >> no, i am geeked up about it because they have plenty of cash these are not either/or things i don't look at the kwaert and say, wow, this company needs to fix itself, let's buy slack for a huge amount of money, right. >> yes, but if they printed the same sort of disappointing revenue growth as in q1 you would say, yes, they need to fix themselves, do something else. >> but they didn't. >> okay. >> so, you know, i think the quarter sort of speaks for itself on how the core business -- >> a company with this sort of revenue, like, you know, the stock is moving around. >> beating -- >> we got places to go. >> what is that? >> we have places to go. >> jim has a show in 20 minutes. >> i think it started already. >> we're chatting. >> i want to chat about intel because that stock soaring in
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the after hours session. jon fortt has been waiting for us what is the latest >> interesting a lot of factors that could have caused problems for intel in this quarter that did not, trade was one of them, listen to bob swan on that. >> there are some trade uncertainties creating anxiety across our customer supply chains and drove a pole of client cpu orders into the second quarter we atthalted shipments to certa customers in response to the u.s. government's revised entity list after a thor ee review we were able to resume shipments of some products in compliance with regulations, and the net impact on the second quarter was limited. while we hope and expect trade issues to be resolved, further tightening of export restrictions would come with revenue risks to our business. >> so some pull-in that's good, right particular for pcs, but still potential clouds on the horizon if there are further problems in trade.
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also pointing out that government buying has been weak, partly due to a difficult comp and partly due to uncertainty over things like trade, bob swan pointing out china in particular there, but also saying that cloud buying which had been weaker in the first half as mega scale providers like microsoft and amazons digest what they bought last year he expects it to pick up in the second half, part of why they can raise the full year guide the way they did, guys. >> jon fortt, thanks on the intel conference guy. gooip. >> i think it sets up to trade back to the april high which if memory serves was around 54 1/2 before it cratered down to 45. not to get off intel, but quickly to add one more line to this -- >> are you going back to -- >> throw it out there. >> go back if you want. >> you know the president is geeked up about -- you mentioned geeked up -- about the saudis. >> somebody is. >> somebody is in his ear saying, by the way, mr.
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president, alphabet is up 10%. don't you think that will put the crosshairs back on them? you know, they take advantage of our great economy, they have to pay their fair share, maybe we should be taking a hard look at them so they might be a victim of this success of the quarter and it may come at the hands of the administration. >> interesting theory. twitter has been a high flyer, one option trader betting the stock will return to 2015 highs. we will explain. we are all over amazon that stock is in the red in the after hours. atonree ll gets under way. we will break down the headlines when "fast money" returns.
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♪ welcome back to "fast money" twitter, the last of the social stocks to report earnings this week, and one options trader is betting that tomorrow's report could propel it to multi year hires. let's get to dan at the "options action." >> twitter reports tomorrow before the opening, the implied move in the options market is about 10%, but call volume about two times that of puts on average the stock over the last four quarters have been volatile, two moves up, two moves down, averaging about 15%. since the life of this thing, since they went public in 2013 the stock has moved about 2 1/2% the day after earnings obviously a pretty volatile stock here i will makethis point, you know like when you think about what
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facebook put up, what google just put up, what snapchat put up this week, i'm hard pressed to see that the advertising that is going to these platforms is not going to be exhibited in twitter's results tomorrow but the trade that we're, you know, really caught my eye today when the stock was trading at 38.43, a trader looked out to march 2020 expiration and bought the march 30th/50 risk reversal, paying 35% for that. that breaks up at 50/35 on expiration the stock is down 20% at 30, the trader put the stock down there. i know risk reversal is a strategy karen finerman likes to use once in a while. it looks like a takeout trade to me or getting leveraged in long position. >> for more "options action", tune into the full show tomorrow at 5:30 p.m. eastern time. check out the kramer camp and we will see jim talking with the ceo of align technology. you know that stock got its teeth kicked in. >> don't say that.
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>> after reporting results catch the full interview top of the hour. live from the nasdaq market site overlooking new york city's times square, much more "fast money" right after this. ♪ "options action" is sponsored by think or swim by td sponsored by think or swim by td ameritrade ♪♪ ♪♪
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. ♪ welcome back to "fast money" we've got an earnings alert on amazon the retail giant climbing back as the call gets under way to deidre bosa with the latest on the call. deidre. >> melissa, put simply amazon is spending more and earning less but it is amazon so it is a return to old days of growth over profit. one day shipping costing more than the company initially estimated. >> it does create a shock to the system we're working through that now, and we expect we will be working through that for a number of quarters but when the dust settles we will, you know, regain our cost efficiency over time. >> he added that the response to one-day shipping has been positive and volume has picked up also on the positive side, we did see top-line revenue growth pick up to the 20% year over year level some headwinds cloeing growth in cloud computing, facing more competition from microsoft and google remember, key is the race with microsoft for the $10 billion
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government jedi cloud contract e market expects them to have 9% of the u.s. ad market at the end of the year. on the regular torr regulatory, surprise here. they have a longstanding policy of not commenting on regulatory matters. when pressed during the media call he said that amazon's guidance does not include any particular penalty or impact from regulations, and so far on the analyst's call no questions on regulatory pressures. back to you. >> thank you, deidre bosa. for more reaction to amazon earning let's bring back gene munster from loup ventures thought on the call? >> they captured it pretty well, that the unit stepped up from 10% in march warter to 18% that was the best unit growth this had since march of 2018 i think that's the reason why, despite the comments of them continuing to spend, that the stock has not traded off
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i do believe that the spending cycle, there needs to be some light at the end of the tunnel the reason is that ultimately you do need to grow into your multiple, in this case amazon's multiple is -- call it just over 50 times next year's earnings. on the call the cfo was talking about going into spending for the next several quarters for this one-day shipping, and the stock actually traded up on that, which tells you that i'm somewhat tone deaf to be talking about valuation here, but that is another big takeaway here, is we are entering up -- buckle up because we are entering another investment cycle for amazon. >> yes, looks like we might go positive in the after hours on amazon what is your grade for the quarter, gene? >> b-minus a good return of revenue growth, but still -- >> b-minus. >> -- still the theme around earnings, you have to show earnings at some point. >> gene, great to see you. thank you for your analysis tonight. >> thank you. >> gene munster of loup ventures
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it is like deidre got into our head, amazon doing what amazon does, spending a lot of money for growth and in this case one-day shipping. >> i don't think they're that focused on, they -- >> not that focused on putting people out of business. >> that's another conversation you talk about a company that a couple of years ago, operating margins less than 1% guess what with the mix of cloud and everything, up to 8.6% operating margin that's a good number the question comes to this if you want to bet against the now in place double tops or let it play out. i say let it play out for a couple of days and see where it sifts down to. >> you are saying that the implication of what they're investing in makes them a target because what they're investing in makes them the dominant player >> yes, and it was said tongue in cheek if they're investing indifferent on profitability for the sake of actually, you know, squashing other businesses, that's one of the definitions.
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if you think about what also -- the conversation for the next four or five quarters, actually shipping could be an issue but we'll get back to efficiency implies to me they may be investing in shipping. we may get back to the whole thing where fedex is concerned and a bunch of other players, about them basically becoming independent as a shipper >> yes. >> i don't think being overly competitive is something that should get the antennas up of the government, you know what i'm saying >> we're on the same team. i'm telling you that the antitrust conversation with amazon has more merit to me than most of the other guys when you consider small businesses fighting. >> i would say about expenses, it is interesting. what did we see? tesla down 13% today, people did not like to see them cutting cap ex. >> part of the story was revenue -- >> i guess my point is the stock market, public investors have afforded amazon the ability to do this, to not show, you know, big profit margins and keep investing. so i don't really know what is going to change that at this stage of the game now that it is
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back at the prior all-time highs or near it. >> amazon after hours, we're down just fractionally right now. what do you think happens tomorrow as people digest this quarter? >> i don't know if it is a function of the other names trading much higher, maybe amazon is catching some of the tail winds there, i don't know i will say it again and i can prove it and be wrong, i think it trades poorly over the next couple of days we will vit resiit next week and see where it shakes out. >> up next, final trades
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. >> take a look at the big tech names in after shower session. amazon down by almost a percent here, mixed quarters and di ace pointment in growth of revenues. alphabet and intel blowout quarters across the board. intel up 5.25% final trade time, tim. >> i will buy intel, and i think this is a major change in sentiment. i think they finally have capacity to meet demand. ten nanometers is important. amd is not crushing them like everyone thinks. >> karen. >> starbucks, those were tremendous earnings. we talk about the gravitational tours towards 100. >> dan. >> twitter, i think this one has
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been range bound buy it towards the mid 30s and see a breakout later in the year. >> steve. >> nordstrom has gotten to the point of absurdity. >> how so? >> that does i 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 want to make you money my job is not to entertain, but to educate, teach and put it into context call me at 888-825-5225 or tweet me at jim cramer this has suddenly gone


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