Munster is ready to hop on the amazon call. He has three red phones. We will start at the charts. Amazon hitting alltime highs after traders dump the stock into the close meantime, alphabet and apple pulling up in the after hours session s. Amazon the new king of tech, guy i ask you a question, who was the old king of tech right . I mean it stands if they are the new ones who was the old one. Apple. Queen latifah has been queen not latifah testimony one in england. Stay on track. You could have made an argument it has always been the king of tech this is what sticks out to me and this is we talk about all the time margins. Operating motherinlaws, came in around 3. 5 the street was closer to 2 . What does that mean . Once again, amazon can turn the dial whenever they want and show profits of that magnitude. Despite valuation is it the new, old king it is the king. It is the king. My opinion. Do you think its the king . Well it has shown signs of rising to the throne for sure. Especially versus what the other tech earnings have done not that the others are terrible but you look at Something Like amazon and you have that big selloff today, a reversal as a trader, i love to see that not only that, now the street is starting to make up stuff like hey they are going to get into search and they are going to start beating google amazon has had this tail win of they get a pass for a lot of different thing. Now people are really starting to gain on their momentum. It is ascending to the throne for sure. We talked about it a couple days ago its about top line Revenue Growth it is not about earnings they are threading the needle between their investments and demand they are finding the sweet spot. So they are absolutely moving the needle from a revenue perspective. Thats what people want to see they will continue to do that. Looks like they are guidance was decent for next year smack in the milled of the range. I think fine you can buy this stock still. The it practicing margin as said here people want to see this company pk more profitable. They beat most people anywhere from 50 to 200 basis points on operating margin 4. 5 in north america i think they have been sitting on the throne for some time now. If you think across tech this is a ecommerce play, a plaid play everything they are looking for. It is the company to beat. What is staggering about the move after hours is this is a company that had done 50 since the last time we sat down here and questioned guy whether they were sitting on the throne. Oddly enough they sell things to help you if you are sitting on the throne too long i digress. You sure do. Ross, who did the show at 5 00 a. M february, 195 the is when gene elizabe elizabeth, thank you, who is watching right now the fact they can turn the dial suggests there is still runway left for the stock aws beating consensus stilts. How about alexa. Bezos says 2017 projections were optimistic we have exceeded them. We dont see this very often except to us double down i means that an entire lever that we havent really factored in when it comes to the amazon story that alexa issing do to be this power house. Analysts are starting to pick up onnist but havent. Thats the catalyst i dont get it i dont want a listening guys in my house but everybody else seems to like them i do think thats another growth area. We talked about this six months ago in prime Membership Survey they had. We talked about the penetration alexa did. Superior in after hours, google is talking about their cloud revenue. Its growing faster than amazon right now. Look at that and google. It urn turned around significantly. Definitely one to watch. Where is amazon right now its in seattle bk, who knew. Just saying 1390 was the close 1472 in the after hours session up 6 . At 1472 do we think split for amazon, do we think split so it can be included in the to you to replace General Electric thats a lot of ifs in there. Lets take them one at a time. On a share split, first of all why do they have to split their shares its not that they feel the need to become more retail friendly. If they want to be included in dow they have got to. Its performing on the Playing Field and seems to be less concerned about the Capital Markets calls thennic. We do know even though there is no reason for it fundamentally if a stock splits there is a decent chance with a name like this you will see another boost. Apple split. Companies have gone to the dow and thats not necessarily been a good thing. We could have many conversations about Many Companies my sense is mr. Bezos, all of things he wants this the world, bog on the dow isnt at the top of his list. Easy a split coming. Which means probably have one announced on monday. We will go deeper into the three earnings reports right now, would you rather siebert, amazon, apple or alphabet this is before the conference calls, we can change our mind at the end of the hour, but for now. Amazon number one, google number two. Tim google. Only because apple has had amazon has had a move that we talked about yesterday it was trading at 94 hour side. It was staggering it worked some of that out today. I think the stock is way overbought even though everything they reported today is worthy . What do you think . Me . Yeah you. For a trade, in the next couple of days, i think that you buy amazon if you want a longer term thing, apple sets up really well against 165. To me thats the slower mover. Amazon you buy it here for everybody who sold it today and are going i have got buy it back. The numbers this google were disappointing, but the price action on chain valuation is higher im with hashtag smooth over there. Lets settle this with the charts christopher is at the plasma for instant tech earnings analysis who is the king, chris, and which looks like the best buy right now. Good question. Certainly a huge number this evening from amazon. 1472 gets us roughly back to the old highs. Want to put something in context. When we look at the longer term trend it is a been fairly orderly over the last lets go back to the amazon chart for a minute of the its been fairly orderly over the last number of quarters i think the move most recently has gotten a little bit parabolic. When we look at the move after hours in amazon we think it is an opportunity to paradown some risk when we go to apple the other of the other really big important ones here, flat after hours frankly after a number that is being perceived as not that great. Apple looks more timely in the longer term. It has come back right at the 200. We think it is a decent area to add some exposure. Last lastly, alphabet off the lows where it was ten or 15 minutes ago. We put this in context of the pigger picture again, another orderly advance, back to a good level near the 50 we think you buy alphabet, you buy apple and you are a little bit careful with amazon. Careful with the holder of the throne or the occupant of the throne you should say. Should we invite chris over. Yeah. Come on over, chris karen will bring the chair in thank you, karen welcome, sir. Thank you so at what level does amazon start looking interesting . I think when we look at amazon, even the last four or five years every single year there is a drawdown at some point. I dont think its out of the question given the performance of the stock really over the last 12 weeks, 16 weeks, that you fete some type of negative response over the next several days i would be a little bit careful. There is no question it remains one of the greatest trend we have ever seen but it doesnt mean it cant take a rest tilk chily the Broader Market seems hired. Its four days in a row that the s p has closed on the lows of the day. Be patient before you get back in to that one. Does the same hold true for the nasdaq and what we are seeing in after hours change your view . What is interesting here about big tech, it has done well when rates have gone up. 201, tech outperformed 2016, post election, rates went up, and tech went up im not sure that higher rates are bad for tech in context of the last years whats your thoughts on a blow off if we got through yesterdays high or the high of the year do then all these new buyers say i have got to get into it . I think the thing with a blow off it almost means you need retail there im not sure with a stock with a 1475 value you are going to get retail at this point im not sure the blowoff argument is how you want to approach amazon here i think its more likely if they announce they are going to split. I think thats more likely. Triple qs, they have performed fine relative to the s p. Where apple is 11 or 12 of that it has underperformed is it a good sign. It is a great sign. Intel acts fantastic oracle act fantastic this isnt just three names. They are important but there is other avenues to make money in this sector. Intel and oracle back up on the notion of the split and you mentioned the Retail Investors if the stock had split and we saw the same exact chart would your analysis have a different conclusion i think you could len towards that remember if you look at the s p 500 right now, the notional price of the stock has never been higher. We have a tough time buying the argument that a lot of retail money has made its way in here yet. I think you are going to have to see some stock splits before thats the base case. Chris, thank you for your analysis. Thank you. The other dynamic here chris is referring to. Think of all the passive money that owns the stocks through the spy. Thats how the money is being allocated into these and thats one of the reasons people make an argument that you have to be fearful. They have been expert boy back stop of passive money. Right now, over the past couple of days we have started to digest whether higher rates are going to be a head win for equity markets earnings are giving investors reasons to stick around. It is not just the spy. The qs, the momentum in the etf land in terms of the holders of these stocks isnt that a good thing. It is a very good thing of the it keeps the support mechanism under these names as well as they tech moves in that direction. The q 1 teflon guide was smack in the middle of the range i wish it was a lib higher my guess is it was a little bit sandbagged it could be an interesting trade tomorrow. Still ahead, hearing from some of the c suite of some of the biggest market movers. Plus are you getting wrecked today . Bitcoin is sinking rod minute toer says just hold on its hard to conjugate a fake word. Those are real world. Any 2003 the cryptocurrency is about to double its been a wild week for stocks ulmething just happened that cod send shock wave throughs market well explain what that was and what it means for your money fast money. Today, a focus on innovation in the Southern Tier is helping build the new new york. Starting with advanced manufacturing that brings big ideas to life. And cuttingedge Transportation Development to connect those ideas to the world. Along with urban redevelopment projects worthy of the worlds top talent. All across new york state, were building the new new york. To grow your business with us in new york state visit esd. Ny. Gov. Welcome back to fast money. The bitcoin blood bath continues as the cryptocurrency collapses through a critical level how bad could the carnage get. Bob pass any has the latest. The charts are ugly it was another must have day for bitcoin, which has gone on a completeround trip from a little over 9,000 in november, 20,000 in mid tees, and back down to a little over 9,000 this is what technicians call a head and shoulders top it is a very negative pattern. Its now its 50, 100, and 200 day moving averages. And Regulatory Risk as you know has been a major issue for all of the cryptos today, the traders focused on comments from India Finance minister, who said the government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these Crypto Assets in fountainsing illegal legitimate activities or as part of the payment system. Many misinterpreted it as an outright ban on cc but thats not the case he went on, the government will explore use of Blockchain Technology proactively thats hardly a ban. Bitcoins drop is down 35 this year alone, 55 from the december high. Some are now speculating, other cryptocurrencies could surpass bitcoins market cap, which is currently down to just 154 billion. Ethereum, for example, well down in the last couple of days is up 40 this year with a market cap now of 100 billion, roughly two thirds the value of bitcoin. Ripple is at 38 billion also down nearly 40 so far this year back to you. Babb pass any at the nyse the ethereum takes over in terms of market cap some in the world are referring to that as the flippining lets play a little would you rather here. Bitcoin or ethereum. We turn to our resident expert bk. In general, i had to close my eyes and buy one coin for the next year its likely ethereum there is so Much Development going on that. Thats ultimately where the values comes in this but there is thousands and thousands of the smartest minds in the world working on the project of ethereum. Bitcoin has stuff going on clez your eyes buy one, its ethereum tim, you are in enear yum. It is the only one i own. In a simplistic way its proof of concept because you are seeing the Development Going on. What we have heard about bitcoin is that at least there is a limited supply out there, there is a scarcity value but there is from a Technology Perspective there are more complex or better use cases out there. Thats my call on ethereum if you look at the charts and what has been happening for bitcoin, today was important for people who look at tech knickcals because it sliced through the 100 day level, it has been respecting certain levels, today it did not our next guest sees the cryptocurrency flying high to 20,000 by year end lets welcome ran neu ner. The worlds first and i think only cryptocurrency show besides what we try to do on fast money. Great to have you with us. The road to 20,000 is to the going to be an easy one. Bitcoin goes up and bitcoin goes down. It dose up and down very quickly. A few months ago we were sitting haoer and it was under 8,000 and it shot up to 20,000 in less than two weeks. This is nothing new. We have seen it go up and down we have seen it go down 50 at a time it is a resilient commodity asset. You are seeing we could see it bottom around 7500 how do you come up with that little imim thinking 8,000 is near the bottom maybe it goes down to 7,500 but i cant see it much under that because there is a lot of uptake and lot of retail money thats going into bitcoin. We will play would you rather bitcoin or ethereum. Bk changed his tune because not long ago he said he wanted to buy bitcoin i would buy ethereum for reasons that they are the smartest people in the world all developing on ethereum i went to their Developers Conference in can country, 2500 of the smartest people this the world, smartest people i have ever seen working and developing on the tee here yum protocol bitcoin has one or two use cases. Its either a currency or a storer value depending which school of theory you go to ethereum, you can do edge hadding, betting, voting, sports, et cetera, all of this network. To me ethereum is like the big network and bitcoin has two use cases. In terms of the use of a cc has an actual replacement for unin you come from south africa, thats your home n. Africa, there are plenty of use cases for a cc because of the vast numbers of people who are unbanked, the instability of some currencies in various countries. So there is really use case. In terms of the cc that would be used for money cryptocurrency that would be used for money, would that be bitcoin, bitcoin cash or some other coin out there . Currently where bitcoin is, it is a not ready to be a currency its not fast enough cant scale enough the blocks are too small they kill themselves every ten years. Bitcoin is currently in the a currency i think there are other block chains and other applications that have characteristics that are much more suitable to be a currency. Such as. Digiti bank clears every 15 seconds. Light coin has much faster clearances but none of the block chains today are ready for the scale of real world currency transactions why does it have a base of 75 hupd or 8,000 that you feel comfortable. I see bitcoin more as a store of value more as a digital gold as opposed to a currency. If you asked me if i hold gold at 1500 a ounce or bitcoin at 7,000, bitcoin for sure why . If i need to move a block of gold i need to get a truck on i. Bitcoin is phone to phone. I see it as the digital gold, the Digital Store of value the digital gold, i get the scarcity value of it but there is a valuation metric that people are looking at and saying that needs to occur for this to take off how can you look at it and say digital gold or scarcity value is going to stabilize the price when you den have adoption if you look there is real world development. Robinhood has promised free bitcoin trading. Starting today. Starting today. I was watching the volumes they went through the roof when you are seeing things like that we are making it easier for Retail Investor to start buying bitcoin. Lets be honest. The cryptocurrency market is ayearold it started in 2008 but only last year when ethereum came onto the scene that the cryptocurrency market became retail only for one year have consumers been able to start buying. Its difficult if you want to buy, you have got to find an exchange. It must accept currency in your country. Thats quite difficult when you do, to trade bitcoin is not as easy as to trade stocks you cant phone a broker to say hey broker please buy bitcoin for me i think 2018 is the year where the mecke niches to allow retail consumers to get into concludes start to open themselves up. That does what to the price does it mean its more volatile or more stable i think the price will become more stable. I think the volatility came when there was not enough buyers and not enough sellers and the price went like that as we saw with bitcoin as compared to the other cryptocurrencies, when people started to by bitcoin, ittic became more stable and when they couldnt buy them, still had the volatility. In the last three months, bitcoin was stable compared to the rest of the market the lower currencies they were going up 50 and 60 a day. And going down 50 and 60 a day. Right. I think that will make the price more stable and less volatility. Ran, thank you for visiting out. Ran neu ner, of cnbc africa. Hosts the only cryptocurrency show on cnn africa it seems like the Retail Investors likes smaller coins. Bitcoin is still the on ramp. The first thing you buy is you buy bitcoin. Then you take it and transfer it out and start buying the other coins. Retail likes coins that are under 5 because they think they can buy more it is the same discussion we had when we were talking about amazon people dont want to buy it because its 1400 people like the smaller coins. Thats been a phenomenon as more money comes into the system, more retail and institutional as well you will see dispersion among the coins and its going to look more like the stock market. Apple is now moving higher we will tell you what just happened on that call that send the stock up im melissa lee, you are watching fast money on cnbc, first in business worldwide. Heres what else is coming up on fast. Up in the sky, it is a bird. It is a plane. Nope, its Interest Rates and they are surging higher. And it could be the biggest risk to the rally we will tell you how to protect yourself. Plus, heres what it feels like to be a bitcoin investor. But ran neu ner says something mahay ve just happened that signalled the bottom. He will tell us what that is when fast money returns when a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. Todays Senior Living communities have never been better, with amazing amenities like movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. And theres never been an easier way to get great advice. A place for mom is a free service that pairs you with a local advisor to help you sort through your options and find a perfect place. A place for mom. You know your family we know Senior Living. Together well make the right choice. Welcome back to fast money. Bondyearolds surging around the globe. It could be signaling an end to the great bond bull market run lets go to don chu back at headquarters. The great bond bull market may have run out of steam. Thats an exaggeration but for more than a few folks the rising Interest Rate band wagon is one they are hopping on the fed is likely going to start its campaign to gradually raise Interest Rates in the coming months and years its arguably one of the biggest driving forces behind that steady move higher in Interest Rates here on the home front couple that with expectations for a pick up in inflation and Economic Growth and thats bearish for bond yield on u. S. Ten years fell as low as around 2. 03 in early deeds. We hit a high of 2. 7 , around 75 basis points in a matter of months it isnt just here german five year sovereign bonds rose and went positive for the trs time since 2015. Trade remembers wondering where the European Central bank about let out of the basis of unconventional Monetary Policy melissa, will the higher rates become attractive enough for big investors and of course the Central Banks . Back over to you. Thanksdom could the global rate rise be signaling bad news for stocks. Tomorrow the labt atlantic federal report to 5. 4 with a 275 ten year say what you want about yesterdays fed meeting. I dont know it was uneventful they let you know they see inflation. We have a meetings next month where its going to be powells first one. I think there is uncertain last night you had pmis around the world. Japan is at multiyear highs in terms of manufacturing china held to its highest level in multiple years. We are seeing global growth. Look at how our emerging markets responded, how high yield is responding they dont like it at first blurb. Its been a tough couple of days in the u. S but its been a really tough couple of days in emerging markets, in china, despite all this good stuff on the economy. Its also been a tough couple of days in germany dax was down from 135500 to 13,000 in a precipitous fashion to tims point markets dont seem to be liking the Interest Rates. When you are talking about the 30 year yield, 3 . Havent seen that in some time you talk about yield spreads and yield curves, im not sure what it means but we will be talking about yield point again. It is the speez 2 , 2. 75 ten year if you step back thats not a big of a deal. What is a big deal is how fast they have come up. Then the question s are they ahead of the economy or behind the economy . If they are behind the economy as the atlanta fed survey and the fed maybe hinted then perhaps you are looking at eve a faster increase. We know most strategists are saying somewhere around 3 they will start to revise their s p earnings of i think people are getting ahead of it a little bit. I dont think its panic time but without question bond yields are the achilles heel of the equity market. If we have a hot jobs number tomorrow, meaning higher than expected what happens to stocks . Look, i dont think you are going to see the yoold go to 3 in a trait line. We have moved quickly. I get it a lot of that is around positioning. Positioning to the 2018 issuance clean dairy. People were underweight. There was positions derisking last year. We need the move that happened in the past two weeks to happen again to get to 3 . I think we have established a cyclical bottom within the yields but i dont think we are going to run to 3 immediately. Think about this david. They are going to double their issuance next year from what it was last year. They are talking down the u. S. Currency import Price Inflation and a dynamic where they threw on the fire. With tax reform snoochlt and now a fiscal policy on infrastructure markets will be unconsideratible if rates move. Hot jobs market tomorrow. In fact, bad news tomorrow is good news for the market. Totally agree with that. It is about how fast the rates move. One trader is betting this spells trouble for one hot safety trade lets get to mike khouw. He is all over the place. Where is waldo or mike khouw in this case. Hes here. El perks, the etf that tracks the staple sector. We saw double the average put volume in that space today the trade that we saw was an interesting ratio put predator the march 57, 54 put spread. Bought 57s, told 54. That cents making a bearish bet that xlp could drop 5 or more in the next six weeks that may not sound like a lot but it is a stable sector and it is going to be testing the 51 week lows if it gets there. Options action tomorrow at 5 30 eastern time. Thats here at the nasdaq. Still ahead, apple, amazon and alphabet on the move after hours in the market. Apple seeing a reversal in the last few minutes gene munster has three red phones he is going to bring us all the latest headlines and tell us what was said on the apple call that has investors hitting the buy button much for fast money on this very busy night. Adow is always at 5 oclock. You like him. Your mom says hes done really well for himself. He has stocks and bonds your dad wants to go fishing with him. Your dad doesnt even like fishing. You like your brotherinlaw. But youd like him better if you made more money than he does. Dont get mad at your brotherinlaw. Get e trade with a 500,000 Life Insurance policy. How much do you think it cost him . 100 a month . 75 . 50 . Actually,duncan got his 500,000 for under 28 a month. Less than a dollar a day. His secret . Selectquote. In just minutes, a selectquote agent will comparison shop nearly a dozen highlyrated Life Insurance companies, and give you a choice of your five best rates. Duncans wife cassie got a 750,000 policy for under 22 a month. Give your family the security it needs at a price you can afford. What a night. Look at gene getting down yeah. Nothing phases gene. Certainly not focused. Oh, and theres the closing bell. sighs i hate missing out missing out after hours. Not anymore, Td Ameritrade lets you trade select securities 24 hours a day, five days a week. Thats amazing. Its a pretty big deal. So i can trade all night long . All night long. Is that Lionel Richie . Lets reopen the market. Mr. Richie, would you ring the 24 5 bell . Sure can, jim. Trade 24 5, only with Td Ameritrade. Welcome back to fast money. We have got an earnings alert on matel. Courtney reagan has more. Trouble in toyland. Matels shares down after hours after missing on revenue, reported an unexpected lost for this important holiday qur the toy maker attributes weak north american sales to underperforming brands in general of the of the companys four businesses the largest matel brand did grow but just slightly within that business is barbie sales improved 9 over last year, showing signs of continued improvement. The second largest business, the fisher price group, that saw sales fall 12 fundraise. The ceo said online issues including shipping costs for ordering late in the season hurt fisher price particularly here in north, he ma. American girl sales down the ceo says she is stabilizing tlechb year and expects to improve profitability. Nothing about a deal with rival hasbro send it back over to you. Courtney, thank you tim seymour you are a holder of matel. It took me from first place to the land of misfit toys matels problems keep mounting if you heard the ceo their looking at 2018 as a clean slate. Frankly it has been bad. Barb upu of up, fisher provides down 12. Toys r us, bankruptcy. Apple a big reversal in after hours action the stock is now up. What sparked the rally much more fast money right after this its a race against time. And keeping it in the right conditions is the best way to get that fish to your plate safely. dane chauvel sometimes the product arrives, and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred. tom villa we took our world class network, and we developed devices to track environmental conditions. This device allows people to understand whats happening with the location, but also if its too hot, if its too cold, if its been dropped. Its completely unique. dennis woloshuck if you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. Who knew a tiny sensor could help keep the food chain safe . We have a question about your brokerage fees. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh and i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. Welcome back to fast money. Alphabet, apple and amazon reporting earnings after the bell who better the break down the after hours moves than our big tech Earnings Team aditi roy, josh, and diedra. First adeity on alphabet. They have been going updates on google cloud, and hardware. On cloud, it announced it has become a 100 billion per Quarter Business alphabet saying its seeing traction with bed bath and beyond and Keller Williams the founder also talked about the companys investment in. A i. And the progress its aseeing with google voice in devices like google home we are very excited by voice. You know, we obviously seeing it being adopted strongly in countries like india its actually a significant part of mobile search queries in general and thing like Google Assistant and doing google home activates the trend. Right before the Earnings Call i talked to the companys cf ochltd i asked her about cash repatriation and whether we can expect to hear an announce member from the company on it. She told me while the repatriation tax provides a lot of flexibility it is more of a legal status than a change of investments. The Company Announcing a new tax plan resulted in an additional tax expense of 9. 9 billion this quarter. Thank you very much adeity roy in San Francisco lets trade this tim, since you liked alphabet the most out of the earnings on the. I think the valuation is the most defendable and the growth at you tube is really exciting of the it still comes back to what is going on with tack and the expense attached with that but the trend are positive if you think about the foray into the smart phone space thats something people seem to be worried about everything this company is doing especially on the broader projects and the google sites continues to grow and these are untapped businesses that offer functionality. With amazon we are hearing about Strong Demand for alexa. Google has google home yesterday microsoft calked about their cloud services. Azure. We heard that also from amazon tonight if you can crisscross, spl something about googles report thats the reason why the stock is down . Its missing those elements that you just talked about i think if there is one thing thats missing in my opinion operating margins were disappointing. Other companies were doing better marginwise, this quarter disappointed then they missed on revenue and eps. However paid clicks was a better number i think you have got enough for everybody. It comes to valuation and how big the moat is. Valuation is compelling and they still have the moat. The cloud, 1 billion a quarter is a big number. Thats growing faster than azure, faster than aws i look at that it is a billion this quart. Amazon is five and change billion. Thats probably why the stock turned in afterhours. The stock ended these numbers was only just behind amazon. Googles move was almost as stratospheric. Josh lipton is at apples headquarters with more melissa, the ceo started off the call talking about the iphone franchise, the performance of iphone x specifically take a listen. Iphone x was the best selling smart phone in the world in the december quarter corning to canalas and it has been our tep selling phone every week since it launched. Iphone 8 and iphone 8 plus rounded out the top three iphones in the quarter in fact, revenue for our newly launched iphones was the highest of any lineup in our history. Melissa, i also had the chance to speak briefly with tim cook i asked him how he thinks about the iphone x, is it a mainstream product or at that price point a niche product. Tim cook telling me you dont going the top provider in the world by being a niche product apple watch had the best quarter ever, up 50 the wearables product line, watch plus air pods was up 70 , the second biggest revenue contributor after the iphone and the cash pile, 269 billion over seas, what are they going to do with the money the cfo saying they will provide an update to their Capital Allocation program when they report their march quarter. Im reading something on twitter here tim cook announced the new phone after the x or the x they are calling to call it the magnum p iphone and they asked tom selleck if he was interested tom said no. Josh lipton is now the guy i am surprised josh doesnt hear about this you are going to be the face of the new phone. Look that the guy. What a stud. Put a tiger had on him and he is magnum pi. Thanks, josh. [ laughter ] what would tech earnings be without our friend gene munster . He is here he has had his hands full all night. Lets talk apples quarter. What stood out to you . Big picture is they fised the iphone number. Good news is investors were racing for this over the past weeks so the stock had traded down 6 . The reversal is the message from tim cook it is a not about any given iphone number a quarter. They gave away a number that rarely give out. The active hardware base 1. 3 billion users [ audio problems ] people buying the subscription wretch i think what you are seeing is that really means that their services segment, which is about 15 of the revenue, that growing the number of people using that growing at 58 , while the overall growth egg net segment is 28 that difference there means that the grot is going to continue for a lon time they are essentially signing a lot of people up i think you are seeing a natural handoff between people who traded apple stock over the past year in aepg of this cycle for investors who are long term believers in this platform one final point. If you have been playing close attention over the last couple days, 1. 3 billion active apple hardware users is similar to facebook at 1. 4 billion daily active users. Since the Services Number was surprising to you in terms of its strength, at what point do we see that moving the nields as opposed to us just calling it a iphone can we have a model going out ten yoos its going to be 25 to 30 of revenue in ten years its going to take a long time but the privatability piece, it is a 65 gross margin business over all margin is 38 you can see impact on earnings you put all that earnings picture together and you think about a 14 earnings number for fiscal 19 a 15 multiple on it gets you to 20 upside we are to the saying thats what the stock is going to do but to give you perspective, the gross margin on services is important to the stock. That is a important statement you just made because you look at the gross margin projections that most of the cell side has essentially for going out several years they dont look at a ramp in gross margins, a significant ramp at all. If that does occur, this could lead to 2019, an earnings path that could really take a lot of the weight off the iphone expectations investors and analysts as a former analyst, im always nervous about putting a higher gross margin on a hardware business the proof is going to be when the numbers start to come out. I think it will be a surprise to investors when it actually happens. Gene i have a question in terms of margins margin were flat n line with estimates here when tim cook says that the iphone x is the number one best selling iphone week after week in the quarter, what does he mean by that does he mean by total dollar amount because wouldnt that move the motherinlaws two things. Number one he means by their whole family they have a family of essentially four phones and variations of it to be the number one selling phone it probably means that 30 or 35 of the total units are iphone keep. In mind in the First Quarter when an iphone comes out, the iphone x, the motherinlaws tend to be lower as they ramp production and work on efficiencies. This is a trade off between the higher esp and the yields in the First Quarter out of the gate. Got it. We will they can in later. Gene munster im focus on 269 billion of cash and their ability now to really do thing with this im not saying they are going to be aggressive. They were very aggressive two and a half years ago when they started borrowing money and doing ways to kind essentially bring it back. But i think that means there could be significant share buybacks it could be accretive to eps. The services is what everybody wanted to see, needed to see, wanted to see this handoff between them its happening the thick i would say about tim cooks comments, own or two comments, he is talking about the biggest revenue ever from the joerks phones, remember it is the most expensive iphone ever as well you have to look beneath the surface. You have to have a hand off between iphone and services. It appears its happening. Up next, amazon hits an alltime high after hours. What has investors so excited right of a this short break. Directv has been rated 1 in Customer Satisfaction over cable for 17 years running. But some people still like cable. Just like some people like banging their head on a low ceiling. Drinking spoiled milk. Camping in poison ivy. Getting a papercut. And having their arm trapped in a vending machine. But for everyone else, theres directv. For 1 rated Customer Satisfaction over cable, switch to directv and get a 200 reward card. Call 1. 800. Directv you or joints. Something for your heart. But do you take something for your brain. With an ingredient originally found in jellyfish, prevagen is the number one selling brainhealth supplement in drug stores nationwide. Prevagen. The name to remember. Welcome back to fast money. Amazon is surging in after hours sessions deirdre has more. Continue to spend big on new untested business while showing fiscal discipline in taking over a bigger slice of Online Shopping sales in some cases, already adding to growth just now singling out Cloud Computing and advertising business as strong contributors this quarter. Advertising was also a key contributor as we are continuing to make the offerings more valuable both to customers and advertisers alike. Particularly strong in north america although not in the north america segment, aws had a strong quarter. He was also asked where amazon was focusing on spending money in 2018. He said the biggest effort in terms of investment will be in grocery and then it is b to b business. Lets trade it here i want to talk to gene munster here look at him he is working so hard. Jugeing the phones. What did you make of amazons quarter, what grade would you give it . An a minus. It was up 33 in the last three months, pulled off today before the print. I think this is all systems go for amazon one thing they didnt say about spending money on is purchasing target still believe thats in the cards. Hard the predict the timing of of it but i believe thats something we will talk about some day. They were talk being the need to integrate whole foods do you think they are ready for another acquisition. Cms is running the stores independently. It doesnt give them the punch they need to be impactful. Even though ecommerce is growing dramatically we are still going to have brick and more for off line. 45 of what we are going to buy in 5, 10, 20 years is on that front. Whole foods was the starter on that front what is the king of tech . Google, the oxygen of the internet and fang stocks, with the skpepgs of netflix i am a Firm Believer in those. Time for the final trade. Bitcoin below 9,000 right now tim seymour final trade. A big relief in apple so much cash to put to work. Those numbers look fine. Apple. Siebert. Massacre card top payments pick of the year. Brian kelly you buy ea. The kids like the games not the barbies and the fisher prices. This he like to may video games. Three red phones . Who can this guy is unbelievable old school brilliant you know what else is brilliant. Goldman sachs left and right im melissa lee, thanks for watching 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 most people want to make friends, im here to help you make money being realistic about stocks does not mean bein