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tv   Fast Money  CNBC  July 30, 2020 5:00pm-6:00pm EDT

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built most of this in as it goes along. it explains growth working better than value. it explains the u.s. holding up better than the rest of the world. we'll see if it persists after we have a few months when we're not going to hear much new out of these companies >> we are out of time on "closing bell. thanks so much for watching. lots more on "fast money." tonight on "fast," the tech titan earnings bonanza alphabet, amazon, facebook, apple, all on the move we have full coverage standing by jon fortt on alphabet, julia boors boorstin digging in on
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apple. josh lipton has the latest >> reporter: apple says the stock split is to make the stock more accessible to a broad base of investors iphone revenue is blowing past expectations $26.4 billion. i did have the chance to catch up with apple's ceo tim cook we talked about those iphone demand trends and the mix in the quarter. cook telling me iphone 11 is the most popular iphone and we had a great launch, he says, on iphone se during the quarter. it was also very strong, an uptick in switchers, meaning android switchers, that we were happy to see and the iphone se is clearly helping with that i asked cook about those broader work from home trends, how is that benefiting apple's products and services during the quarter. cook says it definitely is, it definitely has boosted, cook saying, mac and ipad, we see
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those picking up for productivity we've son several school buys of ipads. we have the strongest lineup in both mac and ipads than we've ever had, a combination of those coming together at the same time that are production the results. we did ask cook too about china, what are business trends like in china during the quarter cook telling us they did grow 2% in real dollars but on a constant currency basis, they actually grew 6% so we definitely saw china sort of come back into a big increase from where it was in the quarter before where the shutdowns took place. and remember, in china, those stores have remained open. it's not like here in the u.s. we saw stores open and fairly quickly have to close. i asked cook does he think that made a difference, he told me, it has he says, i think getting the stores open again in china was key. we now have about 75% of the stores open in the world and i'm
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hoping the pandemic gets under control and that we can reopen those here in the u.s. soon. that conference call is kicking off right now. melissa? >> do you think we'll hear about the timing of a 5g phone launch? >> reporter: tim cook does not tip his hand to what's coming down the pike in his portfolio, melissa, like some of his peers. so i think it will be hard to get details. analysts will look for any kind of commentary about whether that annual iphone launch is on track or at least largely on track i think a lot of investors think, listen, if it was delayed by a month or two they wouldn't be too worried they might start getting worried if it meant those phones wouldn't be on shelves in time for the holidays even if they are, the big question is what will demand be like for those phones. they will soon find out. >> josh lipton on apple, thank you. guy adami, high expectations going into this quarter. we have the stock here higher on the back of this >> incredible. the one that sticks out to me,
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consumer services, the revenue is now 22% of their overall revenue, that's trending in the right direction. tim can speak to this, that's why they're getting the multiple they probably deserve. it's interesting, the last week, i think it was the 24th, and look, i was on record saying i thought the stock would trade back down to 325, you would get another opportunity to buy it on that all-time high but on that day, the stock was trading in the mid-350s. it was down precipitously over a few trading days and now we're up again this is the fifth split they have done in their history my sense is, it will happen at the end of august, the stock probably meanders on either side of 400 there's nothing not to like about this quarter >> tim >> the numbers are extraordinary, not just 22%, they grew 15%, if you think about it, it's a 56, $57 billion company on its own on an annualized basis the $198 billion of cash is
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something that's very important. i think the ability of this company to use their balance sheet and to create value for shareholders is something that continues to be underestimated in terms of the multiple, you put it at 25 times next 12 months on the services, iphone, about 16 times, mac at about 11 times, other products, somewhere around 12 times. you can rationalize a 22, 23 times forward multiple, which at this point, i think the street will be rush to ing to upgrade one. what makes this so extraordinary, the four big stocks that reported in the afterhours, apple was truly the one in my view that was the most off size in terms of how far it had run. from june of 2019 to this move in the after hours, you're talking about a 160% move, nothing short of extraordinary the expectations were high coming in, and these guys beat it it's a very big afternoon. >> upgrades on the street, brian
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kelly, can we upgrade a stock if a company does not give guidance for the rest of the year >> yeah, i think you can i mean, mepeople will. people will start anticipating whether or not that 5g phone will come out. they'll try to anticipate, the growth in the corner was a one-time thing, people are at home, they have to buy a computer, they have to buy an ipad, and is that sustainable. i think it is, i think you're seeing a real shift here people are going to come out and say it, there's nothing really wrong with it. i think people upgrade this. the one thing i would say in general, though, this is very clear about across the board with earnings tonight, is that number one, you never bet against the american consumer, even in the middle of a pandemic and number two, a lot of people have said, hey, the stock market is disconnected from the economy. we had a negative 32% gdp print
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today and these tech companies just crushed it. so the american consumer is still alive and well >> and the american trader, we're talking about robin hood and the popularity of the retail investor and here apple goes splitting four for one, so theoretically this is an opportune time in terms of the attention being paid to stocks by retail traders who are in there for the first time >> so that point, it's a little bit conspicuous. why would they do this when you can buy fractional shares with any online broker right now? so i'm a little shocked at that. but to guy's point, stocks will run into a stock split that's number one. think about where the stock came from it sold off 10% very recently. so they primed the pump going into this print. you had the consumer protection investigation that's coming up you had antitrust yesterday. so these things were sort of
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like a balloon or a beach ball being held underwater. and it seems like they all popped for me, though, i sold my large cap tech because i thought that the market was going to be selling off. market sells off, all these names drag you down. tomorrow we'll be positive i still think that selloff is coming i would be taking profits right now. i don't want to get back into large cap tech just yet. >> speaking to those new to trading at home, guy, you take one stock, it's like a piece of cake, you cut the cake in half and you still -- it's the same, it's the same piece of cake, it's just cut into different pieces, same amount of calories, same amount of fat that you're consuming, theoretically >> we shouldn't have to say this i'm not trying to speak down to anybody at all, but it's worth mentioning, the stock will be cheaper in terms of price, but it's not a cheaper stock and listen, i say it because i think we have to and i understand what steve just
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said, and my pushback would be, just to take the other side, my sense is maybe one of the reasons they did it, split four for one, is for the exact reason steve just mentioned, maybe they're not all enamored over the thought of fractional shares i don't know, but it would be the other side that have coin. >> let's bring in gene munster of loop ventures, green, great to have you with us. what stood out to you? >> let's take a step back. apple had everything thrown in in this quarter in terms of what would happen with the iphone that powered up 2% a year, really surprised me. the overall businesses were expected around mac and ipad but that shows the strength. this company has powerful tail winds over the next few years, 5g, wearables, ai autonomy what stands out to me is the ability to do as well as they are during the pandemic, and this tailwind coming up. i think these results really stand above the other tech
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companies that were reporting tonight. >> is there anything in this quarter, gene, that would raise the ire of lawmakers who are looking to rein in apple in any way? >> well, the app store is a central focus. yesterday 20% of the questions were directed towards apple. they did well relative to the other players. but those questions were almost entirely directed at the app store and there were questions how apple navigates that if you look at the other companies on capitol hill yesterday, apple is by far in the best position. the focus of these regulators is not apple right now, it is clearly facebook and google. and i think that that piece, this -- what i believe is the reality of them having a lower potential impact from regulation in the years ahead, because it will take years, i think that is yet another reason to own shares
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of apple melissa, as i put all of this together and think about what they did specifically about the iphone business, and think about what is coming in the years ahead, the next two or three years this cycle and 5g, wearables, like we talked about, i find it progressively more difficult to defend a multiple below what these other big tech companies are trading at and i ultimately believe that apple should not be penalized for his hardware business. i think this quarter is a great testimony to that. and putting it together, i think the stock should be comfort bring above comfortably above $500 julia boorstin >> melissa, facebook far surpassing expectations in terms of both revenue and earnings and growing daily and monthly users faster than the company anticipated. the company ending the quarter with 2.47 billion people using one of facebook's apps daily,
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that's up 15% from the year ago quarter. guidance is particularly important, as investors want to know if the ad boycott will affect facebook's bottom line. facebook is saying revenue in the first three weeks of july grew 10% from the year earlier period that's in line with the second quarter growth rate. facebook saying they expect that ad revenue growth to continue through the third quarter. now, that 10% revenue growth exceeds expectations facebook that outlook reflects economic uncertainty, the expectation that the recent surge in engagement will normalize, and the impact of the boycott, also noting headwinds from regulation that minimizes facebook's ability to target and measure ads. melissa, while facebook's guidance might be high without the boycott, it does show the impact of the boycott is not as great as analysts feared in the release, mark zuckerberg pointed to facebook's relationship with small businesses, indicating how much
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more important facebook's small advertisers are than the big ones that are boycotting facebook >> julia boorstin with the latest on facebook, thank you. results show us users did not go away and advertisers, the chunk of their advertisers, the small to medium sized businesses, didn't go away either. all the things we were pointing to, grasso, in terms of why facebook may emerge unscathed from all this attention, is coming to fruition >> yeah, i never thought the advertisers would leave. you have only a handful of choices. they have to stay. so they do what is right public-relations-wise. but this stock is back to where it was two weeks ago so when you look at the bounce that we've seen, once again, it was the type of thing where large cap tech sold off, but for me, ultimately, how can they make anyone happy? this country seems like it's as polarized as it's ever been.
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so whatever they do, they're going to make 50% of the people happy and 50% of the people mad. i think ultimately they fall short. but i think they've done an incredible job at threading the needle and obviously the stock is reflecting that >> tim >> look, jobless claims, continuing claims this morning were not good. everybody knows those gdp numbers which are kind of cartoonish smbs are not in any way out of the woods here the spending we've seen out of the consumer is the sugar high from dessert i will say i still think facebook has a lot of pressure on them from advertisers smbs, who are beleagued at this point, are the place to focus. but i don't think advertisers are just doing this for lip service and for showtime i think this is going to continue to be a headwind for the stock. i've been less than bullish on facebook i don't think that's been an awful call i think the stock continues to
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have the cap on its multiple i think some of the issues around corporate governance are things that are still going to be difficult for this company. the expectations and the noise around the company certainly would have made this a bit of a relief dau and mau numbers growing kind of mid- or low to mid- single teens for a company this size. but the real test is yet to come for facebook, let's be clear we have not seen the test yet. >> b.k.? >> actually, yeah, i would take the other side on that, on the small to medium businesses they don't break out the numbers for instagram. but i can just tell you from anecdotally talking to folks that run smaller businesses, they've had to pivot to digital, to online. and they've been running ads on instagram. and i can tell you on my instagram feed, i see a lot more ads than i have in the last couple of years. and those are working. and so you're seeing that while, yes, you have this big pr issue
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with major companies pulling away, i think it's a necessity for the small and medium businesses out there to be advertising now and trying to drum up some business. so there's nothing wrong with this quarter, again, we're going to say that about every stock that reported tonight. i don't think there's anything wrong with this quarter. and facebook showed, even in july, they mentioned, listen, our ads are up 10% and that's when everybody started to boycott them or pull off the platform i still think there's growth out there. >> what is your instagram handle, b.k. i'm quiet on instagram, i just lurk >> good to know. amazon's shares are jumping in the afterhours session deirdre bosa has more. >> reporter: the company had warned wall street covid-19
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expenses might lead to a loss, instead notching net income. the cfo attributed it to capacity, and a shift to a mixture including more, quote unquote, normal stuff. amazon basically anticipated that it would take longer for consumers to start shopping for nonessentials. the third quarter forecast, he says they spent over $9 billion in capex, most of that towards logistics and transportation, so that will be coming online as well as additional spending in the quarter we're currently in the different businesses, aws growth year over year falling below the 30% mark and slightly missing the street's expectations but aws is back tois h its
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historical high. physical store sales are down 13%, a big miss in terms of expectations that's mostly made up of whole foods, the grocery unit. elsewhere the company continues to fire on all cylinders we'll be on the call which kicks off at 5:30. >> did you, deebo as we like to call her third party seller services, that was interesting, seeing a big 52% pop especially after they were grilled about stifling competition from third party sellers yesterday, guy adami, that was a nice dig back at congress >> yeah, aws softer but to deirdre's point, she nailed it, you look at the operating margins overall, i think they came in at 6.6%. just for context, the street was looking for 1.5% so they more than made up for it in other spaces. and just think about this for a
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second amazon has something they call other, one of their revenue lines is other that line is over $4 billion in revenue. it's just remarkable in terms of the scope and the size of these numbers. and one of the things we had talked about was this pretty precipitous selloff in amazon which i thought happened on the back of the walmart announcement, probably set amazon up well into this quarter. now it's interesting to see if we take up that prior all-time high that we seemingly made a month or so ago. >> grasso? >> so when i look at the chart here, i go back to july 13 you get that price of 3344 then you go to 721, you get 3240 the reason i say that is if we cannot hold above that, you just have lower highs if aws is slowing, that's the growth engine in this stock. so i would think that if the market fails, i think you're going to see the 50-day moving
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average. that's 13% lower from here and that's the setup that i'm seeing in the chart. i'm looking for lower on a day when everyone is extremely high on the clouds. >> brian kelly >> yeah, so there's two things that stuck out to me in the amazon quarter number one was it took a shorter amount of time from people buying necessities to regular things i think that's permanent shift that's something where people had to go online to get stuff they wanted. they said, you know what, this is pretty easy, we're going to continue to do it. the second part that have is their paid unit growth which is basically a fancy term for stuff you sold on the internet that was up 57%, that's a huge, huge number. so again, not much wrong with this aws, yeah, it's weaker if you want to be picky about it, that's probably the case but not to get too far ahead of us, there's another company out there that cloud grew. maybe it's a competition thing >> paid unit growth accelerating
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57%, the fastest pace in a decade for amazon. so this was a standout number by many accounts. >> yeah, and again, so it shows where they diversified and putting some numbers behind what b.k. said in terms of what people are buying, normal goods, it's not just grocery. global e-commerce penetration right now is mid-teens i realize the u.s. is in the low 30s. it's going to be 35% in a couple of years to think about the growth that's still ahead of amazon and how far ahead they are but what they're doing right now is investing in other growth areas. and that is groceries, that's health and pharma, that's india. they're putting a lot of this profit right back into the business and they're going to be here again so when you think about the opportunity and all the things we're talking about that have been fast forwarded from covid-19, it's hard to not see amazon still having this kind of growth and their ability to switch on the operating income, especially when they can save money through different times, is really impressive
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so look, apple and amazon were the ones coming into this that had the most to prove and they clearly both proved the most >> the fourth tech titan with earnings out, jon fortt has the details. >> reporter: i do want to get to google's cloud growth in a moment first i want to talk about the advertising business overall that of course was suffering, was down that's why i think alphabet is up the least of the earnings beats today. cfo ruth porat called it an imagine macroeconomic environment but says she's cautiously encouraged by the results here focusing on cloud specifically, she said to expect head count growth, the rate to decelerate, but said, we are hiring aggressively in priority areas, still expecting head count to seasonally be higher as they bring on new graduates so that's good news for the economy, i suppose, they're
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still going to hire new graduates. also talking specifically about cloud, sin the cdar pichai, clo up a quarter billion quarter to quarter. ruth porat telling me they're on track to triple the size of the sales force under thomas curry, a goal he outlined to me months ago. they're continuing to invest there because they are seeing that growth where some other businesses are perhaps not growing so much, guys. >> thanks, jon fortt brian kelly, this sounds like cloud is about to get a lot more competitive, even more so than it already was >> that's probably if there's a negative takeaway to this, it looks like google maybe stole some market share from amazon, maybe stole some market share from microsoft, potentially, which means you're going to have probably thinner margins on
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that, because it's going to be a lot more competitive so if anything, if you want to say there's something negative about these earnings reports, that's probably the cautionary tale i suspect that takes a couple of quarters to play out before investors really start to get concerned about that, because the other parts were growing so well the other thing is, as you know, youtube subscribers, they really need to see that grows well, that could be another engine >> should we make much, tim, of the small stock advance we're seeing in shares of alphabet versus the others? >> you know, i think you've got a case where first of all, all of these stocks largely, and steve has talked about how maybe three weeks ago most of these stocks had peaked. i think you have a case where, look, we've had an extraordinary run in all these stocks. alphabet certainly traded cheap relative to apple, relative to
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amazon, and i mean relative in terms of a peg ratio it doesn't get the most bang for its buck there are reasons for that, in the past there have been transparency issues. i give ruth porat a lot of credit for bringing transparency to the business lines. calls like this is when investors get a little more comfortable with google from a corporate governance perspective. i'm long google, i'm long alphabet whatever we call it, i don't think i've ever called it alphabet on tv before. i love google. >> which is of course alphabet steve grasso, which would you be more inclined to buy now >> i was going to do a would you rather on large cap earnings but i thought you would smack me around a little. >> i would >> if i would inclined tobac be buyer of anything, i would go back to apple. i want to see how it settles into that four for one stock split announcement the fact that everyone always tried to use the hardware angle
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as a headwind and now that's clicking and that $46.3 billion they earn in services is always the tailwind that's the one i would be most inclined to get back in it settles in in price. >> taking a look at stock moves in afterhours, guy, this is extraordinary in terms of the amount of market cap moving at this very moment of. this is the market tomorrow that you're getting a glimpse of tonight. >> it's 35% of the nasdaq whatever index, right? >> 100 >> it's ridiculous in terms of the scope. >> yes >> thank you, i don't know why i couldn't come up with the number 100. it's remarkable. to play the would you rather rather rather game you just teed up, google scarce me a little here, this level is where we topped up at in february you have to look at it closely out of the four of them i think facebook has the most room to
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the upside it doesn't make mehappy to say it because i've said a hundred times, i loathe everything about the platform, but it's hard not to like the stock. facebook sets up well here >> do these afterhours moves, brian kelly, make you more bullish about the nasdaq and about the s&p 500, for that matter, because these companies are basically the s&p 500, for the back half? >> so this is a tough question the answer is yes, it makes me bullish, with the caveat my biggest concern is, we come in tomorrow and you've got good news and bad price action. that's something that i would be very concerned about it feels awful euphoric. is it as good as it gets right now? i don't think that's the case but i'll put that caveat out there. people at home that are trading, watch for good news, bad price action >> opening at the highs and not seeing them at all for the rest of the session, tim, that seems like that would be in the books as terrible price action
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>> it's possible look, this afterhours is like going to a music festival and seeing the beatles, the stones, the who, led zeppelin, all playing their best songs and the crowd is wondering if that's all they can get i think they can get more. amazon's call is about to get started, apple's already under way. we're listening in and will bring you the highlights and it's not just tech there are other big names on the move we'll bring you the results from ford, shake shack and more plus we'll tell you what this name is that's soaring to an all-time high, when "fast money" returns
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welcome back to "fast
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money. shares of ford are rallying. let's get to phil lebeau in chicago. >> reporter: the company lost $1.9 billion in the second quarter at 35 cents a share. that was far better than what analysts were expecting. they were expecting a loss of at least $1.17 a share. automotive revenue coming in a little better than expected, not a surprise given the fact that we knew there would be strong demand once the factories fired up again starting in early may, that's what happened there they ended q2 with $39 billion cash on hand they say even if there is a resurgence of covid-19, which nobody is expecting at this point, they have enough cash to get through that and the rest of the year this week they repaid $7.7 billion on their credit lines. that's a strong indication of how they feel about their cash position their guidance for the third quarter, a profit of between a half billion and $1.5 billion.
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part of that is because the launches expected in the third quarter, those vehicle launches are now in the fourth quarter. ford expects a loss in the fourth quarter because of those vehicle launches one of those vehicles that we'll be talking about, we'll talk with cfo tim stone tomorrow morning first on cnbc on "squawk in the street. you don't want to miss this interview. we'll talk about a smaller than expected loss and how ford has positioned itself now to perhaps, perhaps we can say the turnaround is starting to take hold there a little early to say that definitively, melissa, but this is the most encouraging i think i've heard analysts on the conference call going on now in a long time. >> they've been talking about 100,000 reservations for the new bronco suv, there's pent-up demand for that. >> do i think the new bronco will do well absolutely but these reservations, it's easy for you and i say, yeah, give them $100, put it down there. tell me what happens when they actually deliver
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>> phil lebeau, thanks ford up 2% the headline across your screen on the bottom, the 5g iphone could be delayed by a few weeks according to tim cook because of supply delays. we sort of expected -- i want to get to this quickly, we sort of the expected this given what qualcomm said in their release that they saw an impact on their outlook because of a partial delay of a flagship 5g phone, it doesn't take too much imagination to assume this is apple. but as long as it hits stores by holiday, it's all okay >> look, if that's the worst thing he says today, it's a huge win. after reading what qualcomm said, to your point, i don't think this was all that unexpected >> back to ford, steve grasso, this is a favorite, a number one holding of robin hood investors. >> yeah, i mean, if you look at the stock price, obviously down 27%, it's been beat on
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i was one of those people that put down the $100. i'm a sucker for the bronco. reminds me of my youth i put down $100, i unlike phil being so pessimistic, i will take delivery of that bronco once it does come due. but if you look at it on a technical level, you're caught between the 200 day and the 50 day. i think it's a great entry for the stock right now that's been so beaten on the covid low was $4 i think you're okay to be buying ford here. >> let's get to another couple of names that reported today ups topping the tape, surging 15%, hitting a fresh all-time high, reporting a spike in home delivery numbers during the coronavirus. tim, this is your final trade yesterday. >> yeah, the squirrel gets a nut once in a while. i think the revenue mix was something people were very concerned about with ups, because of the retail shift, a lack of b to b, and these numbers were good. the margins are good
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the trend here has certainly been very, very strong for both the shippers, ups and fedex. i think if you look at the margin profile, it's something that you still have to watch right now. and when you consider the covid rush, what this has actually meant for these guys, if anything this has been a blessing for disguise and forced them to raise their game a little bit which is amazing given the fact that guy adami is no longer driving for ups, obviously they need him during these very busy times. >> maybe they don't. maybe they have no use for guy adami in these covid times >> how do you know that? let me tell you, if you prick me, do i not bleed it hurts >> we had the baby cry >> i got a call from ups, actually, last week and they asked me to come back. >> to pick up a package? >> to pick up some shifts, wiseguy. maybe that's why the stock
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spiked >> let's get to shares of procter & gamble, posting its largest annual sales gain since 2006 strength in the home care unit that's like dishwashing detergent and all that kind of stuff. all the stuff you do at home, laundry detergent. b.k. >> yeah. well, i mean, hygiene, right this one was a no-brainer. not only that, early in the pandemic, in most places, it was really difficult to get these products so people bought extra and put it in their pantry i still think that could happen a bit. i'm not convinced we're done with covid i mean, phil mentioned that ford is thinking there's not going to be a resurgence. that's not my view at all, i think this fall we could have another very big resurgence. this would actually go right to procter & gamble we've had a pretty weak dollar, procter & gamble multinational should do fairly well. >> is there any concern if the economy gets rough, people won't be paying up for, you know,
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cascade or some of these other brands, they'll sort of go downmarket, so to speak, in terms of price, steve? >> yeah, i think people buy, to b.k.'s point, when people are hoarding, you go into these stores and you buy anything on the shelf. if they don't have a procter & gamble product, you buy whatever is there but obviously, stock price, people reach for that, investors reach for what they know and they know proctor. >> this is a pe of 74. guy, do you pay a pe of 74 for the seller of toilet paper and detergent? it's a higher multiple than apple. >> yeah. look, forward, if you look at next year's earnings, this is 25 times next year's numbers, which is expensive i mean, to your point, it's not cheap, but it hasn't been cheap for a while. and i think, if i'm not mistaken, it probably made close to an all-time high today. people are definitely paying up
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out on the risk curve and the valu valuation curve, which is fine, until, to your point, until it's not. that's not meant to be glib. in the future people will be saying, can you imagine when people were paying 25 times earnings for procter & gamble? >> tim >> i was thinking if i came home with anything less than cascade, my wife would leave me when i come home with white label brands, i'm in trouble procter & gamble loves me. i think the multiple is absurd this multiple has been absurd for two years, it didn't just take covid for the stock to not make sense on valuation. i wouldn't buy it. but i wouldn't short it. coming up, more on the breaking news on apple the company will large its next iphone later than expected more headlines from the company, straight ahead plus gearing up for under armour, the company reports tomorrow we'll bring you e adwhthtre en "fast money" returns
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welcome back to "fast money. it is the busiest day of earnings season. check out shares of mgm, gilead, all on the move. shake shack ceo randy garutti will be first on cnbc 8:50 a.m. eastern time peter kern will join "squawk on the street" at 10:00 a.m. eastern for an exclusive interview. of course we're keeping track of apple, facebook, amazon, ryatabet, we'll bring you the ve lest. don't bgo anywhere, much more "fast money" straight ahead.
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welcome back to "fast money. the busiest week of earnings season is not over yet under armour reports tomorrow, could be about to break out of its slump. michael khouw has the action >> reporter: right now the options market is implying a move of 12.5% after they report earnings tomorrow, larger than about the 10% it averaged over the last eight quarters. the most active options were the 10 1/2 strike calls that expired this week and next the ones that expire tomorrow are trading at about 50 cents so the buyers of that are hoping the earnings news will be good enough to propel the stock to new highs. >> quick programming note, ceo patrick frisk will be on cnbc
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for an exclusive interview tomorrow at 10:30 a.m. eastern time i think it was a week or two ago or so the company made public the fact that a couple of executives got wells notices which indicates there could be further sec action against the company, tim do you like under armour you own nike >> yeah, i'm very much a nike fan. without implicating under armour here, without noting anything other than the wells notice they received three days ago, nike has the level of corporate governs investors expect which is why they trade at a premium under armour has had issues over the last few years i'm not a fan of under armour, haven't been for a long time the youed by whi bikyoued by whn the sector
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>> obviously nike is the best in breed brand. when you look at the two charts, nike seems to be rolling over. under armour was considerably less a couple of months ago. this seems like the robin hood like traders are reaching for under armour because they can get a lot more bang for their buck if i had to choose one, it would be under armour now. >> for more options action, tune in to the full show 5:30 tomorrow eastern time. coming up, the headlines from the calls the ceo of dr. pepper is sitting down with jim cramer on ad money" tonight, 6:00 p.m. eastern time i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations.
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welcome back to "fast money. let's revisit big tech earnings after hours. alphabet, amazon, facebook, apple all higher apple's call is under way. let's get to josh lipton >> reporter: melissa, apple is not providing guidance but the ceo on the call is providing some color about when we should expect those new products take a listen. >> on iphone, we expect to see
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the recent performance continue for our product lineup including the strong customer response for iphone se. in addition, as you know, last year we started selling new iphones in late september. this year we project supply to be available a few weeks later we expect the rest of our product categories to have strong year over year performance. >> reporter: there is the key part, a few weeks later. obviously there was a lot of hot talk about whether those new iphones would arrive investors wouldn't worried if they would be delayed somewhat, they just wanted to make sure they would be on the shelves for holidays he seemed to imply they would be from tim cook and his presentation, talking about wearables, the apple watch, he called out, 75% of customers purchasing the watch in the june quarter were new, that would
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imply a lot of runway ahead. same with mac and ipad half of the mac and ipad buyers were also new to those products. some benefit there for apple for those work and learn from home trends >> they just increased their base in terms of the flywheel for sales and services, by bringing these new customers in. josh, i'm wondering, is it assumed that the product delay that he was talking about is the 5g phone and not another version of an iphone >> reporter: you know, he's not calling out what model of iphone there. it's assumed the iphones that are coming in september will be 5g enabled i think the question then is, if he's talking about those phones and they hit the shelves, the bigger question is what is demand for those devices really going to be like the consumer is facing some economic turbulence, analysts talk about by the end of the year they think 5g coverage at
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least in the u.s. will be spotty so we'll have to see how demand plays out. >> josh, thanks. let's bring back in gene munster from loop ventures gene, as congress is hammering out a new fiscal stimulus plan and we don't know about the enhanced unemployment benefits, i don't know how much that helped apple sell ipads and other things, but is that a concern at all >> no, there's something bigger going on here. i think we can focus on the results that came out tonight, they were impressive but really, what's going to happen the next six, 12, and 24 months and that really is what jumped out at me in the earnings call today. this is beyond any sort of stimulus activity. i want to point to two things. one is that the company is continuing to build its products and getting key products out essentially on time. >> sorry to interrupt, gene, but to josh's point, in terms of if you build it, will they buy it, will there be that demand for the 5g phone when they release it at that time, is it assumed
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that the economy will be good enough to have jobs in order to buy these phones later on? especially as we see covid resurgences not just in the u.s. but around the world >> so the reason why the iphone continues to be strong, and tim cook made a surprising comment on the earnings call, usually he doesn't really give guidance beyond a quarter what he said was there's pent-up demand for iphone, and this impacts whether it's a 25g iphon or not 5g. consumers have been holding on to their phones for longer and tim cook says that should lead to growth. 5g will probably be a disappoint relative to some expectations. but that doesn't change the expectation, they have committed customers and a massive install base that's been holding onto their phones longer. they're going to upgrade
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i've covered apple for a long time we're sitting in front of what could be a two- or three-year -- >> gene, stand by. i want to get a comment here on apple. this implies a huge upgrade cycle that's about to take place, guy >> especially when all of a sudden, magically your iphone gets slower and you're looking at it like, what's going on, and everybody parades into the apple stores >> guy, you don't have an iphone >> i actually do, i think i have the iphone 6, it works pretty well for me, but i'm not their target in terms of the stock, august 24 is the split date, i think the stock will trade either side of 400 to that date whether it's 410 down to 390, magically that's where we'll end up on. >> gene, thank you, we appreciate all your good analysis, gene munster of loup ventures amazon, the call is under way. let's get to deirdre bosa with the early headlines.
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deirdre? >> reporter: melissa, let's get right to the cfo telling us why this quarter is different than traditional q2s. >> q2 is typically the lightest retail quarter for the business. that's not the case this year. that means we can flex into space normally used for second half peak demand this gives us strong operating leverage in q2 towards peak in the second half of the year, we'll be adding significant fulfillment center and transportation capacity in the second half of the year. >> reporter: melissa, he also made a joke and said he was super impressed by the profit, he asked, does jeff know about this profit. this is some of the highest level of probability we've seen from this company. back to you. >> deirdre, thank you, deirdre bosa or deebo.
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tim, you were talking about that, the ability to turn a spigot and display a profit when wanted >> well, what's a bit ironic here, i think they were going to get a lot more of a pass in terms of showing profitability here but think about operating income, expected to be around $1.2 billion, and where they came in. clearly some of these levers are ones that may be one off related to some covid-related cost cuts. i think amazon is in charge of this number. i do think we just talked a bit about how the product mix was not necessarily in staples items and higher, more higher margin products i think we are getting to a place where apple -- excuse me, amazon is going to be able to increase that margin based upon the penetration numbers i talked about earlier. people will be buying everything across the board in e-commerce that they have not been. this is not the beginning of the story, but we're not in the seventh inning, we're probably in the fourth or fifth >> facebook's call gets under
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way at 6:00 p.m.whh , icis why we haven't talked about it in a while. up next, the final trade
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time for the final trade tim? >> yeah, these numbers by google were not awful, these youtube revenues of $3.8 billion are pretty exciting. google, the multiple, makes the most sense of the big four today. google >> steve >> everyone that we talked about tonight as a connected speaker to your home a great asset would be sonos, it goes higher. >> b.k., brian kelly >> my concern is that you get bad price action tomorrow. why not buy some s&p puts, buy
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the insurance when it's cheap. >> guy adami >> look at b.k., with all those fun gadgets you have, get yourself one of those restoration hardware couches because analysts will have to start raising numbers, mel thanks for watching "fast. >> "mad money" with jim cramer starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach, put it in context call me 1-800-743-cnbc or tweet me @jimcramer for most americans, this pandemic induced depression is a terrible crisis. but for many tech companies, t


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