tv Fast Money CNBC July 26, 2017 5:00pm-6:00pm EDT
just going to throw a lot of money in a lot of different places and hope it lands -- >> i felt it was important to get extrapolatable out there that's an awesome word >> it's an aggressive -- >> it's an awesome word. either way, it's good to read the whole thing. that does it for "closing bell." "fast money" begins right now. "fast money" starts right now with breaking news we are awaiting president trump. he's expected to make an announcement any moment now from the east room. you see it there live, about apple supplier foxconn opening manufacturing plants here in the united states. we'll get to that announcement as soon as it starts but first, we got to deal with the big story after-hours. facebook hitting an all-time high following its earnings report the conference call is just getting started right now. and julia boorstin is in las vegas. she just spoke with chief operating officer, sheryl sandberg, moments ago. julia, what'd she say? >> sheryl sandberg telling me that they are excited about the strong performance in the quarter and she pointed to the rise of mobile and instagram, in
particular she didn't break instagram's revenue, but she said that they now have over 15 million businesses using business profiles and instagram joining the 70 million facebook business pages. i asked sandberg about concerns that the company would no longer be able to rely on higher ad load to drive growth and here's what she said. >> our goal is for the ads to be really high of qualiquality. when you see a post from a friend, you want the ads to be as high quality as those posts and so we've been carefully tracking the exact of ads on the user experience over the last several years. ad loads up from a few years ago and we've been able to do this by improving the quality and the el are advance of the ads. and we've done it without significantly impacting people's facebook experience. >> more relevant the ads, the higher the revenue for facebook, and the better experience for consumers. now, i also asked sandberg about the company's projections that its capital expenditures would grow by about 50% this year.
>> we remain very solidly in investment mode. we are going to invest aggressively you already see that we're now at 20,000 employees, which is up 43%, year over year. we think we have a lot of opportunities to connect more people, to help people share more, to build more community, and you'll continue to see us invest aggressively. >> it sounds like part of that investment will go to original content. sandberg telling me that facebook wants to create a content ecosystem. we'll be listening to the call, which just got started moments ago, and will we'll bring you, melissa, anything else that comes out of sheryl or ceo, mark zuckerberg >> julia, thank you. let's trade facebook here, pete, and i know you got into this trade today, ahead of the earnings call. and it was a roller coaster ride >> guy and i were sitting there watching the numbers as they went past, they looked great, and all of a sudden we saw the stock down six points and then it started to make this march up he went out for coffee, by the time he was back, it was flat,
now it's up a couple of dollars. she focused on ads and that's exactly what everybody should be focusing on. and they talk about the quality of the ads, the relevance of the ads. that also adds to the ability for them to have higher pricing. and this is the place where people go for digital pip mean, right now, it's facebook and it's google. that's where they go 77%. this is something they're executing perfectly on, so that's why i think you would want to stay long this stock >> the pricing, though, is key, because you can't really increase the ad low anymore from where it is right now. it's almost fully saturated, but if they can charge more, that helps. >> he brought up google and the correlation to facebook and google on the ad revenue is about 93%. you watch google and you're going to figure that out the next time, too but they can get more into whatsapp and messenger and places where i think they're starting to put ads and they may not be as dense or as -- or at least as fertile of a ground to put these advertisements, but the advertisements are totally growing and these guys are winning with advertisers on the engagement >> i think pete's point that almost 80% of digital ads is
between facebook and google. and so it's, you know, one thing you just mentioned, saturate rates on their core offering, and what are they doing now? they're getting to, you know, they've saturated mobile and they've saturated their main feed and now they've moved t instagram and have just said they have about 700 million users there. so when you think about it, what are they going to do at some point when saturation rates get high they'll move to whatsapp and figure out how to monetize that. there's a lot of leverage here it's really hard to knock these operating margins year over year so how do you trade it the stock just rallied 10% into the print. i suspect, not too different than google. you could see this stock kind of come back a little and consolidate a little bit from that recent breakout level i just don't know how or why you would chase it right here at an all-time high after this great news it's up 45% on the year. >> i think the knee-jerk was users came out, 1.32 billion, which was expected and i think people sort of shot first and asked questions later. and then -- and dana hit it on
the head when you parse through these numbers. operating margins, 47% it was 43%, versus consensus, and it was up from last quarter, as well. so maybe they're not growing as well as the street wanted them to, but their business is being run better, as shown in the margins. so i think you can stay long this name. you know, i don't think we've wavered all that much on facebook over the last years i think you stay wit >> in the interview with julia, sheryl sandberg seemed to really emphasize spending aggressively. in past quarters, they came out on the conference call and it scared people. should we expect something like that >> there is no doubt that we could see this start to react and suddenly go to the downside. i have no doubts of that being a possibility. but i think it makes sense they've got to spend and grow. they talked about adding the employees. those numbers, year over year, that's a pretty incredible number when you think about what you put out there there. so i think what you've got to look at is, they've got all of three levers and continue to move down the -- you were talking about that, with messenger, whatsapp, across the
board, and obviously instagram, there are ways in which they can -- they're saturated right now in certain spots, but there are other areas where they've been growing that i think they're going to be able to add those ads to it. >> i think you get to it 27 times. instagram is going to be a billion in maybe a year and a half this is the story you want you want less growth in the core, more spending, but a lot of growth outside of that. >> what do you want to see in the conference call or hear in the conference call, dan, in terms of that turn to the other properties and actually selling ads successfully there >> so to me, it goes back to spending i want to hear more about how they're going to spend and how they're going to -- they've actually gone out of their way to say, well, we don't expect to monetize occulus in vr space how are they going to monetize whatsapp this massive untapped property so these are things that could obviously help the stock on its way to higher highs, every time you get a dip. and i just want to make one other point. we've talked a little bit about snap since its ipo
this is like a $16 billion market cap company facebook's about to cross $500 billion in market cap. when you think about it, this and twitter, they're like a pimple on its you know what. they just don't matter at the end of the day to me, at some point, there's got to be a value in the fact that those guys each have about 140, 150 daus, daily active users. at some point, some other property will have to take a very had look at this. probably google if they want to compete with facebook, in the social aspect. >> so occulus was the big acquisition they made, and they had to lower the praise on -- >> not real compelling >> not yet, but it could feed into things facebook does in the future in terms of the aggressive spend -- yeah, yeah, but they had to lower the price of the things earlier this summer they're not flying off the shelf. but in terms of investing aggressively, if they are to invest aggressively in original content, do you think that is how they get more ads on to the other properties >> it's not a terrible thought, right? i don't think that's a crazy
idea i'll say this. i think everything facebook does -- you could -- occulus, maybe they missed the ball on that you be, but whatsapp, none of us -- i think one person on the desk knew what whatsapp was. turns out, it was pretty ingenious by them. and look at what google and youtube. youtube seemed to be an afterthought i think people are now valuing youtube anywhere from 50 to $75 billion. so the guys and gals that are running these shops are doing a pretty good deal i'm not certain where facebook is going to go, but content's not a crazy thought. >> and one thing pushed by zuckerberg for a long time, video. every quarter you hear him talk about video, video, video, so to had ad on top of that, all of thaez streams. think about the ad generation they could get from that >> we got google, or alphabet's earnings, excuse me, and now we have facebook's earnings now that we have both results and we can see where these guys monetize and what they monetize, dan, would you rather? >> i think google on a valuation basis, and also, i think the sentiment is not nearly as rosy in google as it is in facebook
right now. i like the fact that actually google has been pretty volatile, has been trading in this range, fail eed at that prior high. the fact that it was down less than 3% yesterday, tells you there was no big problems there. investors are fairly comfortable. i think there's some fast money in it as the stock run up 7% into the print to me, i would rather much google here, i think >> interesting for more on facebook, we're joined by one of the company's earliest investors, roger mcnamee. great to see you >> great to be back. >> what's going to be facebook's next leg of growth >> melissa, i think the thick that every investor needs to keep in mind is that it's been a huge stock this year, but there is literally no impediment to future growth. the way i think about facebook is they have 1.3 billion daily users. think of those people as essentially being like the customers of phillips morris in the heyday of cigarettes they're addicted to this product. and there are no regulatory
controls on facebook at all and what they do and, yes, they have a full ad load on the mother ship, on the facebook website, but there is a lot of leverage to increase price there. that's enormous amount of opportunity in instagram, which is, you know, one of the most popular platforms anywhere and has the same kind of addictive user base that facebook has. and they haven't even scratched the service on messenger of whatsapp yet so i look at the traditional ad business here and i see zero impediments globally to growing this business. and you know, i think that the reasons to be concerned about it are largely environmental. you know, i think what's going on in our own politics in this country is very scary for the market, because the challenge to the rule of law is obviously a challenge to property rights, which should be a huge issue for investors. but within the context of the market, i think facebook is an unbelievably well positioned -- unbelievably, really no barriers >> roger, you're a very smart
guy. you've heard a lot of pitches in your lifetime. if somebody walked into your office and said they've got this company and there were zero impediments to growth, would you actually buy that? that sort of language makes me nervous. >> melissa, i'm talking about growth, not stock price here >> right, right, right >> the issue on the stock price, there are a lot of environmental factors that i think should be causing investors to be much more cautious than they are today. what i'm saying here is, there is no anti-monopoly regulation in the united states the european union, which does have some, just put the record fine on to google, and it literally had no impact at all so when you're an internet monopolist, as google and facebook are, you know, you're literally sitting pretty, because you have essentially no constraints to growing your business, to taking new acquisitions, in facebook's case, like instagram, like whatsapp, and transferring the benefits of your monopoly power to those new properties. as google just did with its price comparison engine, the one that the european union
challenged for anti-trust behavior and so i look at this and i don't see impediments. what i see here is ana stock market environment, where right now the earnings growth is fantastic, but you're also seeing big expansion multiples, so that does scare me. but so far -- as an investor, i'm personally very cautious i'm deeply long this stock, because relative to the market, i love it. but i have an outsized weighting in t-bills right now, because i look around and i see things going on in the global business and political environment that i have never seen in 35 years as an investor. and which, honestly, i'm not sure anybody's seen in a hundred years. and which i think should be scaring investors more than we're seeing now >> roger, it's tim so let me extrapolate that it sounds like you're saying facebook's a great company, but this sounds bubblicious. what's the valuation you want to pay for this company is 27 times too much >> to be clear, to be clear, i don't think the problem is
facebook's valuation in the context of a broader market. i think the question is, one of these days, investors are going to wake up, something's going to happen i don't know that something's going to happen, but in all probability, something will happen, that will cause investors to re-evaluate their enthusiasm for stocks in general. when that happens, there'll be no place for facebook to hide. it's expensive on a p\e basis relative to the market, but i think its fundamental situation justifies the valuation. so i think the relative value is fine but my fear is something happens -- >> so it's a broader market call, basically, roger >> exactly to me, that's the risk in the stock. and from where i sit, it's the only risk in the stock i think that they -- they -- you know, they're early enough in the growth curve on some very big properties -- i mean, what do they have three properties that have a billion active monthly users that's unbelievable. >> right >> i mean, frame of reference, there are 2.1 billion people in the world who would tell you that they're notionally christian. there are 2 billion monthly active users of christian. there are 1.3 billion daily
users. this thing is so big that the monetization opportunities, particularly outside the u.s., really haven't been tapped >> roger, thanks so much for joining us always great to speak with you >> my pleasure >> roger mcnamee, evaluation partner's managing director. an interesting broader call on the markets, being invested in t-pi t-bills and very deep, long facebook but in terms of facebook, do you agree? >> i think your question was an accurate one no impediments to business that is inherently scary, because there's got to be something out there that none of us thought of. by definition, it can't be -- have that big a moat but the market call is spregs, because if you listen to what he said, it's everything dan said maybe he said it in a little bit more conservative fashion, but it echoes a lot of -- a lot of the same -- >> far more articulate, would you also say >> i didn't say articulate >> you know. >> you know, i think one of the things, and why if i did a would you rather right now with facebook, i would say, i'll take
facebook, because their revenue -- because it's twice that of google the revenue growth is twice that of google. for that reason alone, and they own the space. everything roger said, the on thing -- he said this exactly. he said, the only thing that drags it down is the market itself >> as we had mentioned, president trump is expected to deliver an announcement about apple supplier foxconn opening plants here in the united states elan movie has got some details. we did get the two-minute warning. we're within that at this point. ian ylan, what should we expect? >> a factory in wisconsin is expected to create about 3,000 jobs right now with the potential for that number to grow to 13,000 jobs in the future local media is also reporting that foxconn will likely use about $1 billion to $3 billion in government incentives to make this project happen. that is very big deal for both wisconsin and for foxconn. n now, you can see there sitting in the front rows of the press
conference treasury secretary steve mnuchin, wilbur ross, energy secretary, rick perry we're also expecting that the chairman of foxconn, terry go, will be there as well. this was a deal that was negotiated in part with the help of donald trump's son-in-law, jared kushner. and so we will be expecting that announcement to come down very shortly. >> there was also some announcement by soft bank. didn't he introduce terry go to president trump? is there any financial involvement, as well >> what we're told is that this is a deal that the president was very personally involved in. there had been some question, when, if the president may have even helped select the site. and it is important to note that wisconsin is a state that he did win. so this is a deal that was very important to the president, but in previous days, this might have dominated the white house's agenda but today, it almost seemed so far lost in the shuffle, amid all of the other fast-moving news that we've had here out of
washington on sessions, on health care, on even the president's own surprise tweet about transgenders serving in the military so we'll see if they can refocus the agenda in this moment. >> absolutely. and i'm glad you mentioned the political importance of the state of wisconsin also, of course, the state of the speaker of the house so that could also be some political capital down the line. >> that's exactly right. so, we're told that foxconn will be announcing additional factories in the future, in other states the president's staff was asked in a conference call whether or not those would have to be in states that president trump also won. he said that they're focused on what states foxconn would see the most success in. not necessarily which ones had electoral victories. >> we just saw ivanka trump and jared kushner walk into that room again, we're expecting the president to enter that east room at any moment we're well within the two-minute warning on this. he'll take the podium shortly to announce that factor, as elon
had been detailing in the state of wisconsin you know, it's interesting, because jim cramer talked to tim cook back in may and tim cook also seemed to indicate that he would be interested and willing to open plants here in the united states. this really seems to be sort of a turn hear in terms of tech manufacturing, specifically. >> well, you know, first of all, i don't think there's anything wrong with everybody giving everybody something to throw out there politically. i actually don't think that that's bad a thing i think apple and fox jb coconn lot to gain. they make the mac book in texas. it's really about scale. can they do the kind of scale for the iphone here that they need to? >> and the critical piece to all of this is that foxconn is a stakeholder in sharp and they're going to be making lcds here in wisconsin. that's what the report says. >> a big point, what tim just said, scale. one of the reasons it will be hard to manufacture hundreds of millions of smartphones here in the u.s. is because the supply chain is over there in asia. unless you're going to flip-flop the whole thing, it just doesn't make it work
at the end of the day, this is a really great announcement. fantastic fantastic for u.s. manufacturing to get this sort of nod here but i don't think it makes a ton of sense to politicize this. in wisconsin, 3 million votes were cast for president. he won by 23,000 i don't think it makes a lot of sense to politicize it i think this is stuff that tim cook was pushing their contract manufacturers to do anyway, because it take a lot of pressure off of them >> our own scott cohn also skates, and of course, he's also crunched the numbers for the top states and he's done that every year for many, many years, indicating that wisconsin has one of the lowest unemployment rates, as well so bringing a lot of these jobs to wisconsin in terms of making a dent actually, the president has entered the room you see vice president pence, house speaker ryan we are awaiting the president to enter that room. you see that empty space there we are awaiting the president. terry go, as we understand it,
has also made his way to the east room. he's in the front row, as they're all posing there for the photo op ahead of the president's entry into the east room again, we are expecting the president to make this announcement, opening factories in the state of wisconsin. foxconn, specifically, will open these farvectories in the state wisconsin. let's listen in here to the speaker at the podium. >> vice president pence, speaker ryan, governor walker, and senator and the distinguished members of the cabinet, the dwu distinguished members of congress, ladies and gentlemen we are in the middle of the apple revolution high-resolution ak displays and a powerful 5g communications
will great increase the days of big data with artificial intelligence and new ak plus 5g system is born. hd display is the key for the future for example ak will enable new medical solutions to limit blood loss in surgery. and greatly reduce the cost of health care. foxconn and sharp are committed to build in america. this most advanced ak system, manufacturing industry in the world. why do it here
governor walker, i would like to thank you and your leadership teams. i would also like to thank you, mr. jared kushner, the white house of american innovation, for your hard work to make this investment a reality speaker ryan, thank you for all your advice and support. vice president pence, we are not strangers. we have facility in your home state. your support is very much appreciated. mr. president, we just met inside
we met in -- we spent 10, 15 minutes talking. i met you three times. each time you have emphasized the importance of manufacturing in america and providing high-skilled jobs for our american workers i feel confident to say, this is a win-win strategy mr. president, with you, the vice president, the speaker, and the governor walker, supporting america, we are confident that many american products will be a great success. [ applause ]
i know you are committed to close manufacturing in the united states. because of you, we are also committed to create great jobs for our american people. mr. president, the eagle flies thank you. [ applause ] >> well, first off, thank you to the president for hosting us you will be hearing from him in just a moment. mr. vice president, my good friend, and former colleague to the speaker, my good friend and longtime neighbor, to the legislative leaders here from congress, who i'll mention in just a few moments, to our
legislative leaders from the state, to all of you, but particularly, terry, to you and your team. lewis and alan, good to spend you guys here. spent a lot of time together with your great team, but we're really praesappreciative and co' be more excited. and i personally want to say, terry just gave a great speech there, but terry, for us, embodies not only in america, but in wisconsin, we think about success story in terms of hard work, determination, building a company with just literally a few thousand dollars in 1974, starting out, building the knobs -- remember the old knobs on the black and white tvs some of you are too young to remember this. but gallagher, i'm thinking of you in particular, but building those knobs and then getting an atari contract to build a joy sea-tac, as a kid, i can remember that, and now being one of the leaders in the world. and we are absolutely thrilled to have you here today and to have your success story be a rt part of the american success
story and coming to be in the state of wisconsin so terry, thank you. [ applause ] this is a great day for america. it is a great day for wisconsin, and it's a great day for foxconn. and today we're announcing the single largest economic development project in the history of the state of wisconsin, and one of the largest in the history of this country. [ applause ] and, in fact, we went back to verify this, this will be the largest green field-based company investment from a foreign-based company in u.s. history as measured by jobs. so this is literally number one. so thank you, terry. [ applause ]
foxconn in the state of wisconsin tomorrow and our state will enter into an memorandum of understanding, by which foxconn will invest $10 million -- >> billion >> excuse me billion. thank you. i'm glad to see paul ryan is keeping track of millions and billions a little different than dickerson, our neighbor to the south. >> all right you've been listening to governor scott walker of wisconsin, with these words following foxconn chairman, terry gou making official the announcement that his company, a spl supplier for apple, as well as many other technology companies will, in fact, be opening a new facility in the state of wisconsin. we are awaiting president trump to join this announcement, this party, if you will, at any moment soiin the meantime, we're gng toneak in a quick break. we'll be right back. stay tuned an your health. so if you're on medicare or will be soon,
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welcome back to "fast money. still listening to governor scott walker of wisconsin following the announcement that foxconn will be opening a new factory in his state we're awaiting president trump to make an announcement from the east ring. as soon as he joins the group of people there, we'll bring you his remarks. in the meantime, let's get an update on gilead, surging in the after-hours session. >> i've got my biotech blue phone out, which means a biotech earnings call is going on. i'll put that down for now the gilead call has been going on for about an hour, and nobody has gotten at the main question that investors have. which is with $36.6 billion in cash burning a hole in its pocket, what is gilead going to do with it is it going to make a big acquisition or not >> so you were seeing the stock up 2.5% after-hours. you can see here, that's that
cash hoard growing over time, getting much bigger in the last quarter, still wondering if they're going to do big m&a. the stock is being driven by a big raise in the second quarter. hepatitis c sales coming in ahead of expectations. the hiv franchise also doing well the company raising its forecast for the rest of the year everything looking pretty good for gilead some analysts saying that a little bit of that hepatitis c beat was driven by inventory in the quarter, so is that really stabilizing or not, are the questions on the call right now, as well as comp fission for the rest of their franchises but gilead doing pretty well here, and we'll let you know if they answer any questions about m&a, back to you >> meg terrell back at headquarters all right, pete, i go to you for gilead a pretty nice run in the past month. double the performance of the group. >> 64-74 now it's over 75 dollars we always talk about it. we all know how inexpensive it it's it trades at a single-digit moment the problem has been the slowdown in hep c and hiv. and tonight, we're hearing something a little bit more positive than we have been
hearing. they still do have all of that cash they probably do still need to make an acquisition. when that happens, we've been waiting now for a couple of years. sooner or later, i think they will they've got to add to this pipeline but for now, at least they're seeing a little bit of a positive moment coming back. >> are you in gilead >> i'm still in. >> and you're willing to wait for this acquisition >> i would probably stick with gilead from anywhere -- if it got down to 60, it start getting nervous, but i think i would stay in it, at least to 85 or more >> it's not for valuation that you're jumping out of this thing. it's now up 20%. it's bull market time for a stock that you were waiting for momentum to turn this is a stock you jump on this momentum, i think, rather than -- look, if hep "c" is working and sequentially these numbers were up over the last court, and there's probably upside is the downside to m&a a risk? or is it a driver to the upside. >> the yield's not bad either on gilead >> $37 billion in cash so sales were down about 8% year over year. so we should say, that's not
very good. except a year ago, this was a $90 stock. so maybe, in fact, the market took too much out of this name and i think that's what pete and tim are getting to here. you couple that with the fact that the ibb seems to be breaking out to the upside if gilead helps at all, the ibb continues to go higher as well >> you haven't beaten the drum on the ibb >> you got really nervous. when i agreed with you last month. >> it made me very uncomfortable. >> when you see that sort of move, off of -- you know, we had rich ross on last night and he was talking about the technical setup in this space in general he was playing for the breakout in the ibb over 300. all of you guys were expecting that it did but amgen's rejection at that prior high, it closed on a low today, one of the biggest names in the group pinpoint will be interesting to see if this stock can hold its gains in the after-hours. it's not up tremendously or anything like that the group does feel like it's had a nice contrarian run. maybe a little tired >> we are still awaiting president trump to start speaking in the east room about the announcement on jobs we'll bring that to you as soon
welcome back to "fast money. as you see there, vice president mike pence, making some comments regarding foxconn's plan to add tens of thousands of new jobs and a new plant in the state of wisconsin. we are still expecting the president himself to make some comments and as soon as he enters the east room, we'll bring you those comments live. in the meantime, we have some breaking news on amazon. the company working on a secret project to dive into health care industry cnbc digital reporter, christina for far broke the story on cnbc.com just moments ago she joins us now from san francisco. christina, you have written before, reported before about amazon's push into health care, and this seems like a deeper push at this point >> yep, at this point, we can safely assume that health care is the next sector that amazon wants to disrupt for several years, we've seen them getting into businesses like selling medical supplies and now all kinds of secretive projects are starting to emerge. just now, a few minutes ago, we dropped a story about a team
called 1492, which seems to have some poetic resonance. 1492, the year that columbus reached the new world, and this is a new vertical for amazon so they're trying to do things around electronic medical records. we hear getting that data out of legacy systems, and bringing entitle contact with customers, with users, so that you can share it with doctors. this is an area that wave see'v apple get interested in, as well so this is just a big and exciting area for amazon and i'm excited to see what they're going to do next >> there are some practical applications, as well. obviously, amazon has a lot of home products like the echo, for instance this team would possibly be looking at how to apply -- excuse me, sorry, christina, we're going to break away from this president trump just entering the east room right now, as you see him there, shaking the hands of foxconn chairman, terry gou, house speaker paul ryan, as well as mike pence, and the governor of wisconsin let's listen in. [ applause ]
>> please. thank you very much. i want to thank our great vice president. thank you to speaker ryan. we're working very, very closely. we're getting a lot done governor walker has been so tremendous from the first time we announced that terry even had a small amount of interest in going into this country someplace. and you know, when you give that to governor walker, it's pretty -- pretty much of a done deal ron johnson, senator, he's been so helpful to us on a thing that you haven't heard too much about recently, health care. and i think we're doing okay, ron. i'm hearing good things. good i'm hearing good things. secretary mnuchin, secretary ross, all of the congressman,
the great congressman, and senators we have in the audience, thank you very much. and thanks, especially, to my friend, one of the great businessmen anywhere in the world, terry gou [ applause ] >> i would see terry and i would say, terry, you have to give us a couple of those massive -- these are massive -- places that you do such great work with. and he's going to be doing that in a state that's very close to my heart, wisconsin. so we're very happy. one of the big job producers anywhere, at any time, scott
so, i know it's going to be fantastic for the people this is a great day for american workers and manufacturing. and for everyone who believes in the concept and the label, "made in the usa." [ applause ] today i'm pleased to announce that foxconn, a world leader in manufacturing for computers, communications, and consumer electronics, one of the rule great companies of the world, will badly state of the art manufacturing facility for the production of lcd panel products in wisconsin, investing many, many billions of dollars, right here in america and creating thousands of jobs. and i mean, american jobs. that's what we want. [ applause ]
another big investor in our country, steven, would you stand up he's raising so much money for our great republican party andrea, please stand up. please thank you. done a great job you've done a great job, steve thank you. foxconn will invest in southeast wisconsin, while a larger facility is constructed over the coming years and that facility is currently under negotiation. it will be about the biggest there is anywhere. the company's initial investment of more than $10 billion will create 3,000 jobs at a minimum, with the potential for up to
13,000 jobs in the very near future the construction of this facility represents the return of lcd electronics and electronic manufacturing to the united states, the country that we love. that's where we want our jobs. to make such an incredible investment, chairman go put his faith and confidence in the future of the american economy in other words, if i didn't get elected, he definitely would not be spending $10 billion. [ applause ] his great company has seen our -- you know, you see exactly what i'm saying, our administration's work to remove job-killi job-killi job-killing regulations, he's been watching.
to institute buy american and hire american. and all of those policies and to pursue the steps necessary to revitalize american industry, including repealing and replacing obamacare. we better get that done, fellas. pleas please, mike we need that so badly. cutting taxes, fixing our trade deals, and rebuilding our infrastructure we'll be submitting an infrastructure bill in the not-very-distant future. we're going to be submitting a tax bill in the very near future when this investment is complete, foxconn has the potential to create more manufacturing jobs than we've seen in many, many decades chairman gou, i thank you for
your investment in the american worker they appreciate it they will not let you down they never let us down there is nobody like the american worker. terry gou told me that he believes in america. and he really believes in america. and that is a great entrepreneur, one of the greatest in the world, by the way, he won't say it, but i'll say, one of the great entrepreneurs of the world, he has a real bond with the administration and with americans. foxconn joins a growing list of industry leaders who understand that america's capabilities are limitless and that america's workers are unmatched. and that america's most prosperous days are just ahead we are going to have some very, very magnificent decades
thank you all for being here thank you, terry, and thank you to foxconn god bless the united states of america. god bless you all. thank you very much. thank you. thank you. [ applause ] >> we've been listening to president trump from the east room of the white house, announcing officially that apple and amazon supplier foxconn will be building a manufacturing plant in wisconsin, creating 3,000 additional jobs in the united states. as the chairman of foxconn, terry gou, mentioned, this will be an 8k display plant, ultrahigh t-def tv. the president saying they better get the aca repeal and replace done he also alluded to infrastructure as well as tax reform he says, we will see that in the near future, but he did say, it is a great day for the american worker and the american worker
will not let foxconn down. >> you know, he said that with that carrier announcement in indiana last year. and this is a company, foxconn, i think it's really important to remember, late last year said that by 2020, they expect to have 30% of their factories automatic automated, okay? so they're also announcing every step of the way, how quickly they're automating their factories. to me, this seems like a real political announcement it's great they'll put some workers for a little bit >> it's also a company that's had enormous problems with the workplace and how they've handled their workers, and they've had -- and you know, there's a lot of ways to look at this this is also a taiwanese company, effectively and we've got a lot of problems with china the attempts to go after first china -- there's different -- i almost feel like there's different deals being cut. we also haven't said it's a great day for apple, while it's a great day for everybody else i would be curious to see how apple really feels about this. but it's great to bring advanced electronics back to this country, on some level, that's the most important thing coming
through on this message. are these guys going to be held to the same standards as every other country in the united states they better be and we'll see what happens >> $10 billion investment, it's creating jobs. i know you're going more on the negative side of this thing, but -- >> just skeptical. >> -- on the positive side -- or just skeptical either way, it's $10 billion, putting it down there -- >> they're getting a $3 billion tax break. >> sure, but they're get something that didn't exist here before and i think that's something that should be applauded. >> it was a star-studded cast in the east room of the white house, we had vice president pence, house speaker paul ryan, the governor of wisconsin, jared kushner, ivanka trump, steve wynn, the ceo of wynn, also. >> so why is steve wynn there, you have to -- it's just not coincidence that he was in the first row of this conference, steve wynn, right? so -- and what's the point well, the stock is down 5% today. we talked about it yesterday i don't want to give away the ghost here, but here's a stock that if you lack at that quarter, i thought it was actually pretty good pip understand why people were selling it off, but i think there's an opportunity to buy. the fact that steve wynn is
sitting in the front row, mind you, but because the stock is probably -- >> he was also very effusive about president trump's impact on las vegas >> guys, steve wynn is in washington because he's got his foot on senator dean heller's neck right now before this health care vote health care vote that is why steve wynn is in i'm here at the td ameritrade trader offices. health care vote that is why steve wynn is in steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade.
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my rare exclusive with the ceo of the corbett is coming up back up. hop onboard. i'm taking this one for a ride "mad money" is next. welcome back to "fast money. we've got an earnings alert on facebook up more than 4%, hitting after-hour highs let's get to julia bar stoorsti, who's been on the call julia? >> hey, melissa. facebook just tightened its spending range for the year, saying capital expenditures will grow between 40 and 45%, that's down from the prior 40 to 50% range. but as facebook treats this as an investment year, ceo mark zuckerberg outlined where facebook's future revenue growth will come from >> we're also working to build a business ecosystem around messenger and whatsapp messenger and whatsapp both have large communities and they're growing quickly with 1 billion people now using whatsapp daily, it is still early on the
monetization side, although we have started showing ads to a small number of people on messenger. i want to see us move a little faster here, but i'm confident that we're going to get this right, over the long-term. >> cfo david waner was cautious, though he warned that new revenue from messenger will not compensate from the declining growth in other areas. let's take a listen. >> we continue to expect that facebook ad load will play a less significant factor driving advertising revenue growth going forward, and the desktop ad revenue growth rates will slow in the second half of 2017, when we begin to lap efforts the limit of ad wloblockers in addition, we can want that our strategic focus on driving engagement to mobile video may slow advertising impression growth, given the relatively fewer ad impressions and video relative to news feeds >> wehner and sheryl sandberg as well as mark zuckerberg also discussed in how they're try to
invest in video. they say it's the most engaging content and they're committed to finding a place where professionals can find an audience and monetize that content. melissa? >> just quickly, julia, the comments from wehner he said that ad load won't be a drive forrer for ad revenue growth, but that doesn't necessarily mean a price increase on ads. sheryl sandberg was talking to you about the quality, could that offset? is he really say that growth in other areas won't offset the dollar growth in other areas >> basically, facebook revenue has been growing very quickly, over 50% a quarter but as the company gets bigger, that growth rate is slowing. and one factor that's been driving the growth rate is they've just been able to put more ads out there they've had more space for more ad inventory but sheryl sendberg's comments to me as well as a number of the things said on the quality is if the quality of ads were higher, that's going to have a better experience, higher return on investment for advertisers, and potentially, yes, higher ad rates. we did see the impact of higher add rates in this quarter and
higher ad rates, i would expect to be a force driving revenue going forward. they just won't have the room to have higher ad loads >> julia, thank you. julia boorstin from los angeles. after-hours session highs pretty much for facebook here pete najarian, you got into a trade prior to earnings. will you be out tomorrow >> yes really quickly, as a matter of fact not because of any reason like i'm negative and suddenly anything changed but when you get a move like this in the post-market, down $6, now it's up a few dollars, very impressive turn i like what she's talking about in terms of the relevance and all of the ads and how they're trying to work themselves into making those quality ads, all of that makes me start to think, you know what, maybe it's time to take a little off and maybe we get a little bit of a time for consolidation. guy? >> 100% right thing to do. this can it revisit even 165? but when you get a gift like this, an outstanding quarter, you take the money and run long-term, the stock continues to go higher, if you ask me. >> up next, final trade.
811 is available to any business our or homeownerfe. to make sure that you identify where your utilities are if you are gonna do any kind of excavation no matter how small or large before you dig, call 811. keep yourself safe. time for the final trade pete >> huge paper coming into back into wynn on this pullback today. wynn's going higher, going to go back towards 140 very quickly. >> tim seymouseymour, welcome b. >> great to be back. i like united. airlineses, ual. >> nathan? >> yeah, pete and guy have had a great call on gilead off the lows i wouldn't chase it up 20%, off that low >> it's good to have tim back,
isn't it >> it is now you have somebody to talk to about the mets >> juniper, big down day on big selume, but i don't believe it derve here tomorrow at 5:00 "mad money" 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 educate and teach you. call me at 1-800-743-cnbc or tweet me @jim cramer who says old dogs can't learn new tricks