Reportedly approached 21st century fox to buy all or parts of the company lets get to Julia Boorstin with the very latest. A developing story, julia, what do you know . Reporter the latest is that comcast is in talks not to buy all of fox but certain assets, the entertainment assets it would not include the broadcast network. Likely a similar assortment of assets that disney was interested in, plus sky in the uk and star in india those two International Assets are particularly important comcast, although its cable assets are here in the u. S. , Nbc Universal is obviously more global but this would really allow comcast to position itself more as an international company. We have confirmed with a source that talks are still happening between fox and disney and it would be with a structure similar to what disney was pursuing now we see fox shares up 5. 5 on the news, comcast shares over 1 certainly a lot of movement in this media space right now, melissa. Weve had earnings reports since that initial report that david faber had reported about disney being interested in the assets of fox. Murdoch said they had the ability to compete in the entertainment business was he just playing the game reporter Lachlan Murdoch reiterated this as foxs Shareholder Meeting this week. Lachlan murdoch said they do not need more scale, theyre fine at the size they are. The message there is we will be fine if one of these deals doesnt happen at the same time, if you listen to the language that lachlan and James Murdoch used on their Earnings Call last week and then on their shareholder call this week, they talked a lot about the value of their brand this is something that both Nbc Universal, comcast, and disney have been very interested in, this big ip, global bands that can be exploited across multiple platforms, theme parks as well as television and movies they also talked about their global presence. This is something that both any and comcast are interested in doing more of. And i think that sky in the uk and particularly star in india are very valuable assets for these Companies Looking for more global exposure. A move like this, the International Case you made very well, julia, but in terms of domestic, providing something over the top, does this help comcast on that front . Reporter i think disney has already laid out its over the top direct to consumer plans they want content, they want brands they want to do a disney direct to Consumer Brand launching in 2019 comcast has its cable network, they already have xfinity, theyre building in different flexibilities. They take some services bundled together with broadband. They have all sorts of different packages but they are still selling tv services i dont know if comcast would do a direct to Consumer Branded product the way the disney is with what its doing for its disney brand of products if you think about the value of those brands, Nbc Universal has a movie studio they also have the theme parks there are various ways they could take the fox brand and do more with them its worth noting, were here in los angeles. The Universal Studios theme park thats just around the corner, there is a big Simpsons Ride simpsons is one of those valuable fox brands. Thank you, Julia Boorstin in los angeles with the latest on this developing story. Its interesting because you were making the point, tim, but a couple of weeks ago. Here was fox, going into earnings and before we get into earnings, we get the disney announcement earnings were very constructive, largely. Then we had this announcement. The stock has now moved 25 from where we were. It gets back to whats the multiple in this sector . Fox has given a lot of ground on their multiple you can make an argument that this changes the dynamic again, if it changes it for fox, it probably changes it for other people and this wouldnt be the place i would go for value in the sector i dont understand why fox would do the deal, it doesnt make any sense from my perspective. Content is the name of the game. You own content, you sell the network. Why would fox want to sell their content off . It doesnt make any sense at all to me. I dont think a deal like that gets done. Its a lot of cash. Thats fine, but content reigns the value of content, you see it, from the at some point of its being bid up for a reason thats whats driving the business right now its definitely been a performer in the space whenever there is smoke, theres usually fire when you look at the other networks or the other properties that are in the area, cbs, viacom, these have been both been beaten up and it probably puts a bid under the whole space, because people are looking for acquisitions now, one might be better than the other. I do believe fox is better than the other. If you look at viacom, viacom is down 32 year to date. You get Something Like a cbs down 11 year to date. I would start looking at those, the boats in the rising tide in terms of the mood were seeing after hours in comcast, does this make comcast a Better Company with these assets . And i ask this because theyve gotten they have broadband and could still charge for broadband even if people cut the cord and go to skinny bundles, whatever but thats not the way the stock is traded. The stock is traded as if cutting the cord is comcasts problem as well. To answer your question, does it make it a Better Company, yes. At a reasonable price, it makes it a Better Company. If they have to overpay for it, its an entirely different conversation you have disney on the other side, this becomes a bidding war. A couple of things stand out to me tim talked about fox it feels like it has room for the old high, which was 38. Viacom, which by the way made a sevenyear low today, i think, 22 and change but at a certain point, listen, i know the viacom quarter wasnt great. The meeting networks was pretty good for viacom. Is it deserving of half the valuation of many of its rivals . I dont think it deserves the same valuation but i dont think it should be half the valuation what does that mean . I think just in terms of rising tide type thing, i think viacom should be looked at here for more on this developing story, lets bring in michael wolf, author of the man who owns the news inside the secret world of rupert murdock. Michael, great to have you with us thanks for having me. What do you make of a comcast plus some of foxs assets tieup i think we should put a stake in the ground and say what we now know, because last week was disney, we had rumors. Now its very clear that fox has put itself up for auction. So i think that we can absolutely say fox is there is going to be some transaction that involves fox assets so fox, 21st century fox, the murdochs as we know them are now almost a thing of the past wow that is saying a lot for a family that has really shaped business, the business of news as well as totally this is a transformational moment so the murdochs are retreating from the Media Business. Rupert murdock, the man that made the modern Media Business, all of the consolidation we have seen now for nearly 30 years has been trailing murdoch. At this point in time hes going in the opposite direction. Thats big this, though, michael, assumes that by selling these assets, the News Business wont become a stronger part you know, that maybe there is this notion amongst the murdochs right now that they have to jettison the rest of this stuff so they can focus on news and it can become the powerhouse it once was the roots of the murdoch empire is in news Rupert Murdochs roots are in News Entertainment has always been a larger part of this company. This company grew on the basis of its investments in the entertainment business the News Business has been for a long period of time a very Good Business for the murdochs but it did not put them into the stratospheric and International League the News Business now, or for the past number of years, has been a not very Good Business. So they are retreating to something that its hard to find the logic here i mean, i believe that one of the things that Rupert Murdoch wants to happen is he wants to merge he wants to take this Company Private and he wants to merge the newspaper business, newscorp. , back into fox he wants his original business back together. Hey, michael, its tim seymour, thanks for joining us youve been saying the media world has been trailing rupert for 30 years are they trailing him now . Do i not want to be buying something that the murdochs are selling . Shouldnt that be telling us something . Yeah, if you believe Rupert Murdoch, if you trust his instincts, and remember the man is now 87 years old, you should be following him but i think you also have to say, is this the Rupert Murdoch who has set out to lead this business, or is this a Rupert Murdoch, an 87yearold Rupert Murdoch who is now saying it is the autumn of his years . Wellsaid michael, thanks so much for phoning us and joining us with your analysis, we do appreciate it, michael wolff. This actually happens with a lot of companies, ceos that are older. Do you want to take the next point . Speak louder. Im just kidding welcome back, by theway, weve missed guy for the last couple of days, good to see you. Im waving hi if you listen to the murdochs, they were making it clear on their Earnings Call, this isnt about us needing that scale and if we cant get scale, were cashing out. Im not sure thats the case the big boys need to get bigger at a time when antitrust is becoming more defensive on the ability to do that but its very clear that the media moguls are becoming vertical and becoming bigger to succeed. What does this say about comcast . I mean, is this a deal comcast needs to do . I think a little great deal for comcast. I think its a horrible deal for fox. Theyre reining in assets that are valuable assets, content assets but i do not think fox makes a deal like that i think it is a bad deal for them its a bad deal for them for fox i believe you have to own content. Thats the stand you have to own content. To divest them or sell them off and just to own the broadcast is not a smart move michael makes a good point in that this is the second whiff of reports that fox wants to sell assets a deal will get done, is his thesis other people would come in for these assets who else would come in for these assets does another Cable Provider want these assets, to your point, to have content of course well, i mean, lets play the game could a google come swooping in at some point . Why not . Could an amazon come in for these assets the nontraditional media companies, are they out there in the weeds . Look, clearly i dont know the answer to that question. Ill say this about theres something going to be done with fox. Whether its a good deal or bad deal, theyre clearly putting themselves out there i do think the stock continues to trend higher from here. For comcast, the International Footprint is really interesting because they do have these properties universal is around the world. And it doesnt have the commensurate presence around the world via cable channels for distribution right but i think youre on to something on the content arm the superhero content that fox does have, that disney probably wanted to put together with their arm of it. You said amazon, ill say netflix. Maybe you start to see some unbundling of a lot of these Different Things i dont know if that deal would get done but if fox wants to sell assets, theres a ripe audience that would pay a decent chunk for these assets but i still go back to, look at the undervalued entities in this sector look at viacom look at cbs. Because everything is going to start to be bid up and theres a lot more beta in a name thats down 32 superheroes, steve, you are cull straighting the superhero look here with that face if this deal goes through and they get sky, that deal is about to close, that will close june 30th there is some question whether that deal gets done. I think it gets done its an important element. Sky, when im traveling the globe, thats exactly what im wev watching theres a lot of value to them expanding that footprint in a world where the Media Business has no borders anymore content is being consumed on a global basis universal i think was a close second this actually puts them in the game now the rumor about disney coming in and taking the tv assets away, investors invest in disney for the nontv assets. I dont see investors buying into this trade. I dont think disney comes in and buys it. Theyre buying the trade. The stock has now rallied. Disney doesnt need this trade anymore, theyve completely changed the narrative, with one Earnings Call there is an Earnings Call where they changed the narrative to the negative this one is to the positive. Its a different story now theyve changed the narrative. The numbers, the last quarter, that disney recorded a week or so ago were not good i know bob iger is a genius and he changed the narrative but valuation, i do think disney trades at a premium valuation, they deserve it. I dont think they deserve the valuation that theyre getting off that quarter which was not very good. You can change all the narratives you want. The proof, as they say, is in the what . Pudding doesnt this get worse for netflix . I say no. We get to a place here where clearly the guys who have distribution are now getting into a stronger content play or the guys that werent in the case of disney, its all about distribution for us. Or the guys with content have much more leverage over netflix. Theyre curating their own content. They still have the international story. It doesnt seem to be hurting netflix. Youre telling me there is no competitive threat whatsoever on the content front to netflix if comcast owns its assets plus foxs . Theres always a threat its got a lot of momentum behind it. Were also talking about this as if its a zero sum game. I believe theres going to be a couple of Different Things that youre paying, whether its on your app, your laptop, or your television, theres enough room for a lot of these guys to have a lot different streaming. Its not one buyer or one guy holds the whole space. This chase for content has been basically derived from netflixs sort of efforts. They went out and spent money, they basically own hollywood they spend as why they see the value in it. Now youre seeing other players come in and realize the value. Theyre just behind the ball here disney has gone from a 19 multiple down to 15. Viacoms only content. You may not like their content but why is content trading at a discount content is not king the way it was a year and a half ago. One last question before we go to break. Who gets the biggest multiple boost from this deal in this space if this deal goes through . Comcast is a pretty big multiple right now i think comcast is 17 1 2, 18 times forward earnings impressed to think theyll go much higher than that i get it, its a disaster. You would have a 50 gain in price to earnings multiple, get it up to a nine, and its still cheap. I think viacom coming up, much more on these reports that comcast is looking to buy parts of 21st century fox as the story develops a wild day for the market, surging back after a rough week for stocks is this the beginning of a rally . And tesla shares clawing back from bear market territory, down 19 from its 52week high in september as it is gearing up for its semi truck unveil in just a few hours will the new vehicle blow your mind as elon musk has promised . Well have all the details the man who called the walmart rally in august, former jcpenney ceo ron johnson is here well tell you what other name could have a walmartlike revival, after that. Every day, on every street, in every town, across america. Small businesses show their love to you. With some friendly advice, a genuine smile and a warm welcome they make your town. Well, your town. Thats why American Express is proud to be the Founding Partner of Small Business saturday. A day where you get to return that love, because shopping small makes a big difference. So, on november 25th get up, get out, and shop small. Rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. Welcome back to fast money. Weve got an earnings literary earnings alert on Applied Materials. Josh lipton has more reporter we initially tipped lower when those results crossed, how moving into the green in after hours here. Ceo Gary Dickerson said Applied Materials in 2018 can deliver strong double digit growth across all segments. He talked about how the markets are getting stronger with a broad set of demand drivers. By that he meant manufacturers adding more functionality and new demand for display Technology Memory shipments he said are at record levels. He said industry dynamics remain healthy. He said the customers are healthy as well, theyre making a lot of investments but theyre also making a lot of money he gave a bullish forecast for spending on semi equipment moving to display, they noted that was the Fastest Growing business segment in 2017 this is a company that makes the products that manufacture those lcd and oled displays. Display revenue will exceed previous estimates for 2018. It had been for at least 30 and turning to that q1 guide, melissa, q1 semiconductor systems, thats demanand and dr, display is expected to grow 6 but higher in the balance of the year, melissa, back to you thank you very much, josh lipton Applied Materials one of the best performing chip stocks in the smh this year, tim think about whats going on in terms of the sell your phone, refresh business think about whats going on in the entire space its a name that you listen to the performance theyre get in their core business. The valuation is not terrible at 19 times relative to the pierce, this is actually extreme value where in chips do you go . Semi is breaking out, we talked about that a couple of weeks ago, thats still interesting. Amat is interesting, they guided hire this stock doubled this year, as you said go back and look at what this stock did from 98 to 2000 the same exact move right now. The levels were trading at now is exactly where we peaked out about 18 or so years ago if youve been fortunate enough to be in amat, this is a good quarter. I would be taking money off the table 100 micron. Ive been in and out of the name, i thought i was a genius, the stock is trading at 46 right now so i look kind of silly. Around these levels, around the 40, 42 mark, david tell pper, is a double i like micron, tomb i do think amat is a stock you can continue to own, tim hit it on the head, its not super expensive. Stick with it, the momentum is is there still ahead, its a story of the after hours session. Comcast looking to buy parts of 12 th century fox. Well have much more on this story. Fox, by the way, is up by about 7 on the news comcast, a parent of this network, is up by 1. 2 well have all the latest after this im melissa lee. Youre watching cnbc, first in business worldwide meantime heres what else is coming up on fast. You just blew my mind thats what tesla founder elon musk hopes to do when he unveils his big semi truck hours from now rli on the scene. When fast money returns. This is about giving hard working taxpayers bigger paychecks, more take home pay. This is about giving families that are struggling peace of mind its about getting this economy to grow faster so we get bigger wages, more jobs, and we put america in the drivers seat in the Global Economy once again. It looks like wall street is the one in the drivers seat the speaker of the house paul ryan doing a bit of a victory lap when the house passed the gop bill and everything is awesome again after a volatile week, the dow soaring up more than 200 points today. The nasdaq made a new record that tax euphoria is add to go the gain tax reform moving along, stocks are flying its the start of a year end rally, new seasonality, guy. Holidays come a week away gobble, gobble. Turkey day, you talk about it in june and people chase it until year end there seems to be no exogenous event on the horizon to derail it the market doesnt give you ample time to sell the highs weve been floating around here for seemingly months which means in my world we continue to grind higher regardless of what you think about sort of the world at large. When you really look at whats happening, right, so were rallying on taxes, or at least something getting done i think were getting a little bit ahead of ourselves the house, this vote is an easy one. When you look at the senate and murkowski and collins and mccain and johnson, theres a lot of reasons why this thing can really get a fist in your face, so to speak. Im not sure, that would be the thing that can take us off track as far as the year end rally in my opinion, because thats why we indeed rallied today. Russell tells me things are going to be awesome. Russells been throwing fists, you know, any time theres a whiff of taxes you cant tell me that this market isnt needy of a tax deal this is the debate that goes on. I would say this about todays market even though i think bullish sentiment is at record levels and the market is compaplacenco many things were oversold. If youre looking at relative strength indicators, you have major support. Look at the iyt or transports, which we follow obviously not just because some of these companies are important, because dow theorists believe this is a tell for the economy it bounces right off the 200 emerging markets bounced off the trend line all the higher risks and cyclical names got a high yield rally back they needed to happen. Im not sure one day takes the market out of that trend that it was in yesterday but this was important sort of along those lines, if youre a fund manager, right, and you have ridden this rally, a rally you probably never thought would have happened when donald trump was elected parking lot, wouldnt you be inclined to take profits no. The narrative is set up, theyre riding the wave. The investment, the strategies have changed a lot theres no reason to take money off the table. The winners will stay wellbid or at least youll see a decline in selling at year end the losers are going to stay sold even without a tax deal hold on today was earnings today really was earnings in a shift. Well when you walked in this morning, the futures were up eight handles. It was both definitely both. We saw that curve earnings for the last three weeks. Right, but high yield, everything that we saw shift overnight wasnt but to tims point, we dont get a tax deal, we slide right back down. We absolutely sell off, we probably have a shallow selloff that should be bought aggressively at the end of the day, were not up here because of tax were up here because of really strong earnings, really strong basic global growth, if you will, the narrative there. Unless theres a crack in that, i got to tell you, i think the market continues to work there is a bit of a crack, real quick, tim can speak far more intelligently about this. What kind of crack are you talking about . Chinese yields are up 4 . Havent seen that in quite some time they seem to be tapping on the brakes in not stepping on the brakes in terms of their credit markets. Again, nobody seems to care yet. I dont know when people start to care. But thats something out there as well. We talk about the yield curve all the time i wont talk about it. Rates are back at 2013 level. In china, after the Peoples Congress which ended two weeks ago, people are very concerned, they greased the rails, everything was perfect, now theyll tighten it up. Look at commodities, copper has been down 10 in the last week and a half oil has run out of a little bit of gas the Global Economy is chugging along. Its important to watch china. Interest rates are still a big deal if you look at the twoyear note and the fiveyear note, it tells you that there are sensitive parts of the global credit curve. I still think thats something you should be watching well have all the details of comcast and 21st century fox. And elon musks unveil, phil lebeau, musk has been pushing this hard on twitter reporter they say its going to blow our mind what will elon musk tell us about their electric semi . Or will it leave us with more questions than answers that story and fast money returns. Of violating the constitution by taking money from foreign governments and threatening to shut down news organizations that report the truth. If that isnt a case for impeaching and removing a dangerous president , then what has our government become . Im tom steyer, and like you, im a citizen who knows its up to us to do something. Its why im funding this effort to raise our voices together and demand that elected officials take a stand on impeachment. A Republican Congress once impeached a president for far less. Yet today people in congress and his own administration know that this president is a clear and present danger whos mentally unstable and armed with nuclear weapons. And they do nothing. Join us and tell your member of congress that they have a moral responsibility to stop doing whats political and start doing whats right. Our country depends on it. Allow you to take advantage of growth opportunities. With a level of protection in down markets. So you can head into retirement with confidence. Brighthouse financial established by metlife. Lets get back to Julia Boorstin with more breaking news julia . Reporter it seems there is yet more interest in foxs assets now dow jones is reporting that Verizon Communications is also exploring acquiring parts of fox. Of course this comes just on the heels of news that comcast is interested in buying some of those fox assets this after last week, news broke that disney was interested in buying some of those fox assets. It seems like fox is out there now, open to a sale of at least part of its assets, the entertainment assets that of course includes International Exposure through assets in latin america as well as sky in the uk and star in india. Theyre drawing a lot of interest from u. S. Media companies that would like greater International Exposure fascinating developments, thank you, Julia Boorstin in los angeles. Craig moffett is on the line, thank you for calling in what do you think of verizon jumping into the pool . Frankly i would be a little surprised about either comcast or verizon but verizon has always said theyre not interested in content. And while i suppose it makes sense to explore, they havent shown all that much interest in following the at t blueprint or trying to vertically integrate and now with the department of justice questions about whether that deal is possible, im not sure they would be in a rush to do it. Yeah, i actually want to play you a sound bite, from the ceo of liberty media, this is what he said about those vertical deals. How many Subscription Services are consumers going to step up for . Disney for fox, dont know, but my guess that was about getting scale, trying to increase their for disney . For disney, for direct to consumer offering. Throw that in with a challenge, the government by entering into the time warner at t merger discussions has thrown all that a wrench into anyones plans i dont know how you can announce a big media deal today and have any confidence you know exactly what the government is going to do. Your skeptical for those reasons . Lets say a comcast was successful in terms of agreeing on a price do you think that it would ultimately be rejected, craig . Well, i think it would certainly have a reasonably high risk of being rejected remember, effectively whats leaking out of the doj right now in the at t merger is that theyre not happy with the behavioral remedies that they apply to comcast so theyre effectively telling you theyve got buyers remorse for having allowed that deal to get through. So saying that they would allow comcast to do yet another one is a bit of a stretch remember, again, disney approached fox before the news broke that the doj was looking to block the at t deal when that approach happened, everybody, all of us thought that the at t deal was highly likely to be approved. Now it throws everything up in the air and you really have to wonder how hard somebody like comcast would even try when the risk would be so high. Lets put aside the regulatory concerns and the possibility that any sort of deal could actually be blocked by the doj does this make sense in your view for comcast to go after these assets or for verizon to go after these assets . Does it make you more bullish on comcast or more bullish on verizon . Well, it depends which assets look, Cable Networks right now are problematic. And the studio is quite interesting. Now, again, could the studio be merged with comcast for antitrust reasons, again, just on horizontal scale, is a different question but the studio, the fox studio is an attractive studio. There are certainly some attractive Sports Networks there and some other and general Entertainment Networks that are better than the average cable network. But i dont know that a lot of companies are looking to really significantly increase their exposure to Cable Networks right now. Do you like the notion that comcast could gain a more International Presence in india, in the uk and europe, as well as in the latin america well, yes and no. There arent a lot of direct synergies other than it would help them ensure distribution of the nbc assets if they had distribution assets elsewhere. There is some merit to that. But there again, i think its a little hard to say that the nbc assets would have trouble finding their own distribution at reasonably attractive economics. And outside of that, the satellite business is clearly better elsewhere than it is in the u. S. But the u. S. Deterioration in the satellite business is synonymoin some ways a harbinger of things to come everywhere i would be surprised if comcast said i really want satellite as a distribution platform. Craig, well let you go, thanks so much for phoning in, we really appreciate it, Craig Moffett of moffett nate hanson some serious regulatory hurdles for whoever has apparently stepped in for these assets. Without question. I think everybody understands that going in. Again, how do you trade the stocks on the back of it fox, despite the fact that its up significantly, a 25 stock a week and a half, two weeks ago, 32 now. I think that continues to trend higher this clearly things are in play then names that are undervalued, we mentioned viacom. Talk about a discovery networks, disca, think about that stock, what thats done and the valuation there. So i think all places with content now should get a boost in terms of valuation. If we are to believe there are serious and possibly insurmountable regulatory challenges to any of these deals, shouldnt we fade every move higher across the board at some point this has been a wakeup call about the value of these assets the assets have been driven to a place where people say, as we talked about on the show, content a year and a half ago was fetching a high multiple now the Justice Department is saying we wont be comfortable with behavioral commitments like we were before youll be able to find out if its political with the at t time warner with cnn, youll find out if another deal goes through, thats how youre going to figure it out number two, theyll figure out how to make these deals go through because they see the environment, they see the landscape. They will shred through whatever they need to to make a deal for investors. Tesla scheduled to unveil an electric truck will the new vehicle blow your mind as he promises . Weve got the details. Plus walmart posting its best day in a decade. Ron johnson will be here with an even bigger call on a different retail name. Much more fast money on this very busy night. Welcome back to fast money. A big night for tesla coming up. The automaker set to unveil its highly anticipated semi truck at its Design Studio in hawthorn, california in a few hours. Musk has said it will blow your mind fi phil lebeau comes to us from redondo beach. Reporter hi, melissa what is it all about beyond the design as you mentioned going into the commercial break, this is all weve seen over the last couple of months along with these teases that this is going to be an incredible reveal, that this is the beast, it will blow your mind its a silhouette of a semi truck. Well see it in a couple of hours from now is it a range of 350 to 400 miles as was suggested earlier today, which would be interesting to players in the truck space . Or does it need to be higher than that, 500 or 600 mile range . That would be truly one of those moves that would get Trucking Companies interested that feeds into the second question do the economics work . And at the end of the day, it doesnt matter how incredible the design and the look of this truck is the trucking operators want to know how much money can you save me per mile. Finally, when and where will this truck be built. There has been some suggestion that it is likely to be built in 2019 at the fremont plant. But as we talked about, melissa, that plant is already busting at the seams. They probably have capacity in terms of a manufacturing line. But if you go into that plant, there are cars double parked all over the place because theres just not enough space for all the employees out there. As you take a look at shares of tesla, keep in mind well see the truck tonight, and then we will finally get some answers to some questions and i cant stress this enough, melissa, i have talked to a number of trucking executives, people who run logistics operations, all of them say the same thing i really dont care what this truck looks like, i want to know about the economics. Does it save me money, will it save me money, then ill be interested im sure they dont care if it makes a latte either, which is also promised by elon musk. Reporter exactly phil lebeau joiningus from redondo beach. Part of economics of this, think about trucking and the engines, theyre much more fuel efficient these days, you can go farther on a tank of gas the bigger the battery gets, the heavier the truck gets, the smaller the range or the less cargo the truck can transport. Its a difficult thing to balance out. I would think for all the reasons you just mentioned, this truck arm that they have is going to make their cars a lot better, theyll have to Push Technology and efficiency with a lot heavier vehicle than the s or x or whatever else they come out with on the road if youre looking at a stock of a trading vehicle, you have to look at the 200 day, basically 320. Its had a good rally back, guy pointed out the rally. I would not buy the stock until it overtakes the 200day moving average at 320, its an at trading range until proved otherwise. I hear what phil says about the fremont factory. If the model 3 ramps productio s as much as elon musk promises, in order to be capable of producing a semi truck it hasnt been an issue before its almost been applauded and again, despite a billion and a half cash burn, its a company that continues to have the Capital Markets open to them but its going to get down to really at some point, its game time, model 3, 2018. Weve got to get there and to be talking about the semi, exhibiwhich is a very interesting concept, if they can get into the Light Commercial truck business, its a massive business for them. Right now it doesnt sound like were there. If you do and if you are, lets price this thing as an auto company. All right the thing, by the way, the unveil, is going to be webcast tonight. Im going to linked in. The man who called the walmart rally in august, ron johnn, isos here with an even bolder call. Much more fast money after this more great camera features and more power. And more than just unlimited data, we give you unlimited plans with hbo included for life. Because you deserve more entertainment. And more spokespeople. Talking like this, saying the word more. At t. Its time for more. Am i too close . I feel like im too close. Get the iphone 8 and with all at t unlimited plans, get hbo for life. Only from at t. Your bbut as you get older,ing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Welcome back to fast money. It is the amazing race big box giant walmart going head to head with online retailer amazon in the race to claim dominance in the retail space. After blowout earnings today, walmart had its best day in nine years. The shares soared nearly 11 , sending the stock to record highs. It is up 44 this year while rival amazon is up 52 russell trailing behind amazon a little, a monster run in the last three months, jumping 23 our next guest, ron johnson, founder and ceo of enjoy. Com, said a few months ago that walmart was amazons biggest threat welcome back to the show, ron. Thank you, good to be here. How worried should amazon be is walmart being the vulture i think they should be really worried. This is a decadelong prize fight, every quarter is a new round. Walmarts coming back. And if you think about it, theyve Forward Deployed inventory into things called warehouses that are really stores theyre lower cost to operate than amazons Distribution System theyre learning how to use those stores to serve customers. Sometimes the customer does the logistics. At times they bring it to them theyve been at a lower cost operation than amazon. Walmart is making pretty Big Investments when it comes to buying online properties, expanding its Online Presence which has paid off in the last couple of quarters weve seen a depredation in the quarters for u. S. Only, its only 36. Is this a race to the bottom it doesnt matter . Its not, because if you think about it, walmart has said were not going to be adding stores were going to invest in making our distribution and irrelevant more productive. For decades, thats a lot of capital. Now they have to put their money, they put their money into digital competition. Amazon is going to have to drive the physical footprint to compete. And thats going to be the capital. Do you see the stores as being, you know, an ability for them to actually distribute . Theyre not million square foot Facilitation Centers like amazon has, that allows them to take the online orders and distribute them properly. I dont see the solution for them to find the store and actually use it as an availab v asset. Half of america lives within seven miles of a walmart half of what you buy in amazon is in a walmart store, all those core commodities and stuff having that distribution footprint with that inventory Forward Deployed is a comparative advantage thats hard to beat ron, when you talk about that physical presence, and, you know, ive been looking at this, when you look at walmart and walmarts customer basically is an amazon prime customer i think walmart could steal market share from amazon versus viceversa, basically. Right who does amazon come for if they need that type of warehousing or stores . Is it a target its target i would think it would be target whole foods is the grocery what target is to mass. Its the upscale discounter. Target has made a lot of investments on new brands, cleaning up the store. Its image. The prime customer is heavily that target young mom. So i think theres a big synergy there. That would be a big bold move. If they need to move, targets got 1500 stores on main and main of every city in the country you made a great call on walmart, ron, kudos to you he should be right here is there another retailer that is poised for another walmartlike revival i dont know about that but i would say target got unduly hammered yesterday theyre basically doing what they said they would do. Brians taking a long perspective. Hes competing on product now. Hes improved pricing, hes fixing the stores. Hes working on distribution hes working on every element all at the same time target is going to compete better than people think if you had to choose to put one dollar to work in one of those, which one would you choose for the next decade, i would pick walmart ron, thank you. Ron played would you rather he did. Ron johnson. Mr. Johnson, real quick merchandise inventories at walmart were up 7 10ths of 1 year over year thats how they unlock margins going forward. They finally figured it out. To your point, they absolutely can compete with amazon. All right coming up next, final tre. Ad well, its earnings season once again. Yeah. Lot of Tech Companies are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its hard to make sense of it all. Well, victor, do you have something for him . Check this out. Td ameritrade aggregates thousands of earnings estimates into a single data point. That way you can keep your eyes on the big picture. Huh. Feel better . Much better. Yeah, me too. Wow, you really did a number on this thing. Sorry about that. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from td ameritrade. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. 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These are the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. Plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. Remember, medicare doesnt cover everything. The rest is up to you. Call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. Go long™. Time for the final trade tim. If you think theres momentum here, stay in the iyt. Xot on the weekends you know whats really hidden under the radar . What has been hidden under the radar, steve pulte homes up against the flat to down s p stay in the homebuilders but target, if i got two final trades, target would have been my other one you dont but you already threw it out you know who came up with the idea for the apple stores, anybody know ron johnson genius you like the Animal Planet very much so, yes i watch it all the time apparently not enough people watch it but Discovery Communications on all this noise we talk about at the top of the show, that will get you. Be nice to the tigers im melissa lee, see yo my mission is simple to make you money. Im here to level the Playing Field for all investors. Theres always a bull market somewhere, and i promise to help you find it. Mad money starts now hey, im cramer. Welcome to mad money. Welcome to cramerica other people want to make friends, im just trying to make you some money my job isnt just to entertain you but to educate and teach you. Call me at 1800743cnbc or tweet me jimcramer. Dont be so quick to ascribe todays epic rally to the fact that house of the representatives passed their