Cnbc news lauren hurst was the first to report this story she joins us now. The attorney are prepared to expand their probe beyond the companys advertising business to its search business, people familiar with the matter tell me texas which is leading the probe announced the investigation earlier this year but so far, the investigation has centered on googles advertising business texas has issued subpoenas for materials relating to that business now other states will lead the charge in investigating Google Search and android units separately people familiar the with the matter tell me they will issue subpoenas on those businesses. The attorney general investigation is running concurrent to a doj led inquiry which google confirmed earlier this year. Lauren, just quickly, what is the implication of separating an investigation into search versus android. Reporter so the key point is they are very serious about the investigation. Its not shocking they would be curious to learn more about either search or android, but what is interesting is they want to use their resources to investigate, to write up subpoenas, to get more materials. If youre google, the reason why youre worried is you realize just how serious the ags are in investigating your business and taking it apart piece for piece. Lauren, thank you Lauren Hirsch with the latest. Read the full report online. What does this mean for alphabet, tim . You think about the Company Performance wise, we hit fresh ice before we got to this news, and this is a company i think actually started to provide a little bit more insight into their business, the disclosure, the core business is very strong look, you would think if they were worried about regulatory stuff, they wouldnt be going all in on health care, too project nighten gayle, le, does seem like theyre shying away. You look how the stock responded when we got the first announcement in june, it took the stock down significantly we have heard this news before, and frankly we know theres a target across silicone valley, and i think until we get further down the road, i dont think this is a moment youre throwing google out the window. Its amazing, right, we learned that all 50 ags are investigating, they have separated the investigation into theory in search and android, and the stock may have gone a little bit lower on news of this right now, its basically unchanged. Its amaze sging. It seems like most importantly, and the stock price doesnt care investors dont care we have heard about the story escalating for a while now everyone sort of writes it off, same way we wrote off brexit, trade, powell, all these Different Things on a granular issue, its google now thats writing it off. And look the stock is a classic brand. It hasnt even begun and this has gotten to prior tops, usually the beginning, not the end of a move. Its a muted reaction, this time, very much like facebook. Theres a lot of different examples we could use right now. When the regulatory comes down, the hammer really hits and then it seems to get a little bit less, like the trump tweets and all the rest of it us and some of the Democratic Candidates running, everybody is worried about health care and the rest of that. There are reactions and then those seem to go away. This seems to be the case for google its had a great run 25 , i think, year to date the stock. Its been the class of faang. Absolutely. It is the classic faang, youre right. You wrote a number of cnbc. Com opinion paces. I have penned a few. About facebook and the troubles facebook faced and why it was going to be an issue for facebook why is this different in your view my view on facebook is that this is a confidence issue and a trust issue with the management team, and something ultimately that would trickle back into usage. Now, lets be clear. We have not seen it hit facebook in terms of their advertisers. We have not seen it in terms of their platform, in fact, their platform seems to be as strong as its ever been. I think with google, again, in terms of the user right now, there has been some concern with data, and this has popped up in the last couple of days. They decided to get into health care, and forged a partnership that people are concerned, what theyre going to do with the data as it relates to health care theres a lot of trust for google theres more trust for google than facebook and that separates the two. The regulators may think otherwise but the core users might feel differently. I would add one other thing to it. You watch the reaction out of facebook i wanted that downward move. As soon as i saw this headline, hey, this is great because this gives you that opportunity to buy. Now it looks like that opportunity has already been wiped away i mean, the opportunities youre looking for is facebook knowing that people say theyre going to leave but theyre not going to leave and that was the reaction when you look through all these regulatory issues that he went through, and we thought the guys were going to leave, they didnt they thought theyre going to continue to grow if youre an advertiser, you have to be there you cant avoid this, and when you look at the play, what happens in the long run. If the worst Case Scenario takes place for google, is it a fine, so do you think that theyre going to be crushed with the fine theyre not going to be crushed with the fine, so i think investors look past it, and say, google is going no place, it will be there. It will still be a huge revenue stream and i have to be there as well antitrust to me, and it basically implies theyre going to break the company up. It implies theres a monopoly, theyre not letting other competition in and i believe that with megacap tech, at least in the case of google and facebook, we talk about this as well i think the sum of the parts, actually, would be a benefit to investors. I think if you had to break it up and actually try to sell the businesses on your own. How would you break up alphabet who gets the new ventures. The argument on antitrust is probably related to what extent they are dominating the data, and dominating the advertising plane. In terms of what i think is at risk is the confidence level around data. Lets turn to another tech name apple here, the stock hitting a new all time high for a 6th day in a row, its on pace for its best year in a decade. Some are starting to turn sour on the name. We have learned that warren buffet trimmed its stake in apple last quarter and trump master says it is time to sell this stock why dont you go over to the plasma and break it down for us. Think about google. Google is the same price it was 18 months ago, which means thats the opportunity has yet to really break out. Apple broke out and to some extent you have exploitation of potential and its quite steep and uncorrected. A few charts, only three, lets look at it, this is the 150 moving day average over the past two years, and what we know is you could say, well, so what, it gets above or below, but lets pull this back and look out over a bit longer time frame. This is the same chart and its looking at where the stock is, above or below the 150 moving average. Lets pull it back further and look at a twopanel chart. What the top is doing is looking at the same circumstances, the current stock in the 150day moving average and the bottom panel is calculating automatically, instead of having to wonder, just how far above the line is it and what you see here, and this is quite something, every single time that apple has traded 24 above its 150 day moving average, it has peaked and rolled over. Thats happened literally simultaneously every time for the past seven years at this point, as opposed to to something that has the potential to break out, google has already broken out, and what comes to mind is trimming, doing something, before, as they say, someone does it for you. Interesting before someone does it for you i mean, come on back. I was just out of curiosity, looking at ratings on wall street, not that we put a lot of stock into that, but 65 are either at a buy or strong buy. Or a hold right, i did the same thing you have like 27 at buys, 14 at hold, and 7 at excels. Its the highest since a year ago before the 20 decline. Right you always get this peak where everyone rushes in to carters, i think his point with using the chart. If you think about it, you have apple tv plus. You have i cloud storage, music, thats becoming a much bigger part of the story than it was a year ago, two years ago, and definitely three years ago people that own the stock stay the course now more than ever before i just think that the point that carter is making is a totally valid one, however you want to lock ok at it youve outperformed the s p, the entire market since june im going to say it over and over again, because that is extraordinary, and that is a reason to say, hey, you know, you could be a relative value player here, im long apple. I sold some up side calls, call me away, ill be okay with that. I think we get into the argument, are you an investor or trader in apple and im an investor he owns apple from 2. 30. Not quite but from the 1990s. Ive owned this stock for what feels like forever, but there are times where its a great opportunity. I loved what i heard, and i know its options action thats speaking for you, but its a great opportunity to sell calls against it right. The only issue is applied volatilities have come down significantly. The prices you used to be able to get a couple of weeks ago are no longer there. You watched the vics get to 12 to 14, applied volatilities has dropped. Youre not getting what you were getting. Still makes sense to ne. Kind of like disney, the big run up in disney, the big spike we got yesterday, i thought that was great in my final trade, sell the up side calls in disney against the stock. I want to hold it. I have been selling options against apple for what seems to be months and months and months, they work out. The problem, the negative, i guess is, you have to be able to take a little bit of a osz loss it if i were you, sell those calls against it, buy them back if it gets through the stripe. Im through well see where we end up by the end of the year. Can i ask a question, mel. Is it a sure its related to apple theyre talking about volatility, and i would think when you have a stock thats rocketed this high, if im willing to actually sell a little bit more upside from here, it would be worth more because the stocks got so much momentum going into that the implied volatility, generally go out as stock goes up people get more and more confident in what theyre seeing when theres not confidence. Over what time frame. Its all about that. One thing youre talking about, if you want to be bullish on this the Analyst Community is not bullish. We know that a whole recommendation on wall street is a sell, right of all stocks covered. In fact, it 10, 12,000 stocks, 5 of stocks get a sell rating over time because no one wants to put a sell on it, management wont speak to you. Thats not supposed to matter last time i checked with the chinese wall wall street is compromised in that sense only 5 of all stocks are sells. A hold is a wink wink sell and what we know is basically half the analysts are saying wink, wink, sell, and half are saying buy the collective 12 months price target is 254. If you want to be bullish that factors in analysts that all due respect have no clue clearly no respect. I like the all due respect. In every career and path in life, theres 10 of the people that do it really well there are 300 . Where are we. Hopefully were in the top 10. Coming up, break out the chips, nvidia materials are on the move, well break down the big headlines from quarters. Tensions rising in hong kong that could have big rippled around the worldment we well tell you whats at stake for the obglal economy much more live fast money right after this make fitness routine with pure protein. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. The best combination for every fitness routine. Shares of chip makers after reporting earnings after the bell lets get to seema mody. Reporter fluctuating between gains and losses, revenue guidance for the Fourth Quarter came in weaker than expected but the street remains fix sated on the strength that its seeing in its Gaming Business. Sales and gaming up from the 1. 3 billion it brought in the Second QuarterCeo Jensen Huang says our Gaming Business from hyper scale customers powered q3 results key questions analysts will want to know is when is nvidia unveiling a product it hints at, and whats the outlook on crypto industry, they do specialize in chips used in the crypto sector. Applied fe Applied Materials, thanks to growth in founding, laundry and chip business. China, despite signs of a slow down continues to make up 30 of net sales. The stock is higher in extended trade and now trading at its highest level in 13 years. Both chip stocks have been on fire this year, up over 50 , recovering from what was a pretty tough 2018, and even chip equipment makers, and amd are up big after reporting better than expected earnings, plus further channel checks suggest that demand is starting to improve for semiconductors and the big question is here whether demand can keep up with wall street expectations back to you. Seema mody at headquarters. Pete, where do you go here, which would you rather. I would stick with Applied Materials because i think thats the space to be in right now and obviously the numbers, that gave us a pretty good look but the gains, that really does sound kind of interesting in terms of nvidia. The one spot they are good is gaming thats a small portion of what nvidia is. Because of that, it tells me i would rather be in the maker and the ones in the chips. I think gaming is the aspect that everyone concentrates on, then you have data centers, and then with 5g, whats the automobile going to look like. Whats the connected home going to be looking like i think when you look at it as a gaming stock, you leave a lot there, so i think you leave a lot on the table so i would rather, it was would you rather. I dont know. The extension of would you rather. She did, yeah exactly, and by the way, a bunch of new games coming on the market, and these guys are always great with coming out with new chips going forward, and with the gaming cycle. Youre going to see a lot of that stuff moving forward, a lot more in the cloud, a lot more to think about going forward. Depending on how you measure gaming, itincludes chips in pcs, 53 of their business, when they tell you that gaming is a little bit softer than expected, even though it had been expected seasonally to be somewhat soft, i think thats a concern considering where the stock has come from. Think about the stock, is it up 130 off the lows we hit back then, and the 130 level, which is something its bounced off a few times, it got there back in may, so i think the extraordinary run into these numbers, i think this outperforming the rest of a chip space thats been on a tear, you shouldnt be surprised by this, and i think their business is actually much more rationalized at these levels than we have had in past years when we could have had this kind of run. Semis overall, the subject all year, their relative performance to the tech sector peaked in q4 17. Really . Correct thats two years ago, and they have yet to make a relative high things like apple are acting so well, but the interesting thing is that the beta trade, as good as its been, adjusted for risk or beta, not only is it not outperformed tech, but even worse than that. Somebody at home is saying, and i thought i was up 74 and thats different. But you got things like mu, intel, which are a big part of the aggregate. As a theme, a bet, as good as its been, it has not been an alpha generator, given other choices in terms of tech overall. When we have the conversation about semiconductors being cyclical. Adjusted returns too, is often carters point. Right so that doesnt apply to that conversation you could still believe and it could still hold true that semiconductors being a cyclical sectors are indicators of the economy. To what ones investment experience has been and what the opportunity cost has been. Yeah. Your favorite semi in the space is very conservative intel. And i believe in the company, still, the ceo, im not 100 all in on, but i think over time im sure hes going to be the right guy. We have much more ahead here on fast money heres whats coming up next. The protests in hong kong continue to escalate we take a look at the ripple effects in the market. And how it could impact your investments. And later, tesla shares have nearly doubled since june. But is that rally about to hit the skids. Atndreak it down th a much more when fast money continues. Whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu only one things more exciting than getting a lexus. Ahhhh giving one. The lexus december to rembember sales event lease the 2020 nx 300 for 329 a month for 27 months. Experience amazing at your lexus dealer. Fidelity has zero commissions for online u. S. Equity trades and etfs, plus zero minimums to open a brokerage account. With value like this, there are zero reasons to invest anywhere else. Fidelity. Welcome back to fast money this was the scene in hong kong as protesters flooded the streets of the Central Business district the mass of demonstrations reaching new heights over the last few days as protesters clash with police, the increasing instability giving rise to worries about the impact on the chinese economy and what that could mean for the Global Markets. Derrick stiller joins us now, great to have you with us. Thanks for having me. You make the point that the actual impact on the chinese economy from hong kong, it wouldnt be that great, but its the other ways in which hong kong brings money into china that could be harmed. Thats right. If you took a list of the major of challenges of the chinese economy, they dont allow rural people to own land so how do those people get richer. The state sector is huge, and they dont allow competition, so they suppress innovation those dont involve hong kong, except at the end. At the end, the chinese run up a huge amount of debt. They acknowledge this, open the Financial Services market, creating opportunities but a lot of those firms want to base tems in hong kong to take advantage of the opening in china and thats where the protests can matter. Congress is considering a bill sort of saying whats going on in hong kong is not okay by us, how could that royal things, either when it comes to the trade wars or when it comes to getting money into china well, the bill by itself doesnt really do very much. Its more a symbolic action for you. It looks Like Congress is trying to warn, and they have been for some months, trying to warn the central Chinese Government away from acting in hong kong, the only way the bill would matter is the chinese decide they are upset by the interference in internal affairs they have a chance to be upset and they havent done it i think whats at risk in hong kong is if the situation intensifies in the form of chinese intervention or spreading to the rest of china or parts of china, that would escalate, completely change the situation on the ground. The bill, we have had a chance for a chinese reaction and we havent had one yet, so i think its just a symbolic action by the congress. Derrick, its tim seymour, thank you for joining us what do you think about capital flight, and i realize that the hong kong dollar is nothing you want but if you think about some of the Access Points in and out of the country, hong kong access for capital into the country and as we think about Global Markets as trade skpers and investors, e need to keep that focused on our risk factor list what do you think overall in terms of the sentiment around capital flight in china right now. Well, that ties back to those big questions, i mean, i think thats representative of hong kongs role. Capital flight is really about failure of the chinese economy to reform and to increase productivity it started in spring 2014 after the chinese reform effort at the third meetings didnt go anywhere so thats not really about hong kong as you said, hong kong is an important Capital Access point, so money is going to leave china through hong kong if they can and the events are thereby going to cause people to panic more than they would otherwise. The capital flight, longterm problem is not about hong kong, its about china, its own choices but in the shortterm, it does add to the feelings of panic people might have. I have money in hong kong, do i take it out of hong kong, bring it back here send it overseas, whats going to happen there. If there is an uptick in protests and there are financial actions by china or the United States in response, you could have your money frozen, so i do think theres hong kong icing if you will on the capital flight cake. It does look like the protests are escalating, derrick, day by day, if it gets to the point where Chinese Forces actually cross that border and enter the fray to try and control whats going on, how could that impact the trade talks. Well, thats the disaster scenario, the chinese have clearly shown they dont want to do that. They have had an opportunity at various points to act, not that i would say thats justified im saying they had an excuse. They dont want to, they dont want to cause a problem. One of the reasons they dont want to is that would be the end for the trade talks. It would be the end for the current trade relationship, the u. S. Would impose tiananmen style sanctions and all the opposition and discussions we have had so far would melt away. A concrete example is senator mcconnell, the majority leader in the senate, he has blocked a whole number of antichina bills on a bipartisan basis that have come up from the senate. He on the other hand is very pro hong kong, and that block he has put on the bills would go away instantly if the chinese intervened and you get a flood of harsher measures from the American Congress than we have seen from the trump administration. Great to get your analysis on this, derrick scissors of aei. It sounds like there are few scenario in which things could be affected, whether it be the trade war or Economic Outlook for china. At the same time, you know, the hang seng is down every single day that there are protests. How should we parse this out as traders. We cant forget about whats going on over there. People are leaving hong kong as they knew it, its over in terms of building a business im not going to comment on whether the politics are right or wrong because apparently you cant. Whale say if you look at what i will say, we had data that took you back to 2003, Industrial Production numbers that took you close back to 2002 you had fixed Asset Investment we havent seen since the late 1990s. You have to be concerned and thats what the bond markets did after a rally back in yields, you said the ten year pull back on risk concerns. This seems like something the market is overlooking. We talked about things the market has overlooked before, and we have become numb to it. This to me seems like this could be a mine field where were thinking everything is going to work out, and theres not much in the overall market. This is the one thing that i think can affect a lot of the market right now. Weve got a news alert here on the pentagons cloud contract deal with microsoft. Ylan mui has the story. Amazon is formally protesting that 10 billion jedi cloud commuting contract that the Defense Department had awarded to microsoft amazon confirmed that it filed a preliminary notice on friday in federal court. Its not clear when the next step will be taken in a statement, Amazon Web Services said that federal procurements must be handled objectively and a manner free of political influence. The process contained clear gis deficiencies and errors. Amazon had been considered the front runner for the contract. President trump is no fan of jeff bezos, personally attacking him by name, and there have been multiple news reports that the white house was concerned that the deal would go to amazon and wanted it to be scrutinized. Defense secretary mark esper had to recuse himself from the Selection Process because his son works at ibm, a competitor amazon is starting a legal challenge in federal court over this major contract. Back over to you. Ylan thank you, ylan mui in washington when microsoft won this, and i turn to you because you love microsoft so much, oh, maybe microsoft has an in on some of the contracts in the future, how does this play in . Obviously this means something, and you can understand where amazon is coming from. They see whats going on they understand the entire process. It makes sense that they would challenge it whether or not they win, theres a lot theyre going to have to dig into to find any real truths about why microsoft got this we know microsoft has been the guy whos been right on the heels of amazon in terms of the cloud, aws is number one, microsoft below them it makes sense there was a possibility of one or the other. Microsoft one, was that decision made in fair way thats what were going to find out. Lets be honest, microsoft continues on their way, and they are continuing to be a challenger to amazon in all different aspects. Nimagine, just imagine for on second that amazon wins this challenge and that there was bias in this whole process that opens a whole other can of worms in terms of where the Administration Stands when it comes to jeff bezos. Tough thing to imagine. At large, not just amazon. Well, look, i think this type of a process would go on anytime, i believe the government is awarding a massive contract why wouldnt you file a complaint, why wouldnt you want an investigation i dont care whether this is defense spending or in the cloud. Because there are obvious play skpe ers and make sure this is followed through on. Microsoft, as pete has pointed out has been crushing people in its wake and in terms of their ability to manage the platform in a cloud that has die namynam that allow people to trade. In terms of variability, this kind of action, apple plunges 40 at the low last year, now has this huge ricochet microsoft has been the steady 45 degree angle all about risk adjusted returns. Microsoft is the blow out winners. Coming up, Aurora Cannabis reported results, moving sharply lower in the after hours well bring you the big highlights from the quarter. And speaking of earnings, home depot set to report next week, going to drive Home Builders to new highs. Well explain, much more fast money straight ahead. Not much, how about you . Are you answering my text in person . I am. Yeah. Lol. Come on in. This is tech that helps you be there. The nissan altima. Now offering the most techadvanced engine in its class. Im part of a community of problem solvers. We make ideas grow. From an everyday solution. To one that can take on a bigger challenge. We are solving problems that improve lives. Whether your beauty routine on ais 3or 57,. Enge. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Let me tell you something, i wouldnt be here if i thought reverse mortgages took advantage of any american senior, or worse, that it was some way to take your home. Learn how homeowners are strategically using a reverse Mortgage Loan to cover expenses, pay for healthcare, preserve your portfolio and so much more. A reverse Mortgage Loan isnt some kind of trick to take your home. Its a loan, like any other. Big difference is how you pay it back. Find out how reverse mortgages really work with aags free, noobligation reverse mortgage guide. With a reverse mortgage, you can pay whatever you can, when it works for you, or, you can wait, and pay it off in one lump sum when you leave your home. Discover the option thats best for you. Call today and find out more. Im proud to be a part of aag, i trust em, i think you can too. Welcome back to fast money we have an earnings alert, the stock is falling hard in the after hours session. Lets get to Frank Holland at headquarters with more on that. Shares of aurora falling 9 after reporting eps of 1 and a miss on revenues compared to estimates. Terry booth said that slower than expected openings of Retail Stores over the summer hurt the companys sales, very similar to the commentary we have heard from other canadian producers, such as canopy which reported earnings this morning. Fell to below 1 per gram in Canadian Dollars and that was a target for aurora. Unlike cronos, aurora said its prices increased slightly but overall, its really been a different few months for Canadian Companies that produced cannabis stock prices have fallen by nearly half over the past three months melissa, back to you. Frank holland mentioned aurora isnt the only pot stock thats been burned. Thats so wrong its low hanging fruit. Its not that bad. The cannabis carnage over the last couple of months pretty bad, cronos, till roy, ache radiolo the. Province of ontario is not opening enough stores, this whole cannabis 2. 0 which was going to get them to be selling higher margin products is slowing down dramatically. Canopy did it this morning, theyre pulling outright guidance im reading through some of the notes also on auroras numbers sounds to me like theyre fore stalling, pushing out products which were seen as exciting growth and theyre talking about were waiting for Global Demand to pick up, domestic demand to pull up. The inventory issues in canada are getting scary. Again, we went from a place they were having trouble getting product to market to a place where everybody increased production its a scary time, a long way from the bottom that was called by one of the brokers out there, i think a lot of people are wondering what are the die nyna that bring you to the bottom companies have reassessed expectations and essentially themselves, not only pulled guidance but reset the bar thats important. When you think about it, when they first came out in canada with legalization and all the stocks ran up. If you look at the path to profitability. If you dont have one, youre thrown out now now vaping, it doesnt matter whether or not you use vitamin e acetate or not everyone is selling your name. You have to have a clear path to profitability. We saw canopy say, the interim ceo say three to five years for full profitability thats a long way out to be throwing darts right now. Last quick question, these were the canadian lps that reported and the u. S. Is on deck should we extrapolate. Its a different market. No, i dont think urkyou shod i think the Addressable Market in the u. S. , especially in individual states, illinois is coming online, a 2 billion market, i think is very different. We just want to mention that tim seymour is all in on this space, a long number of names and the Portfolio Manager of cannabis, sits on Advisory Boards for all of tims disclosures go to fast. Cnbc. Com. Were doing whale watching as hedge funds are giving us a look leslie picker is doing the highlighting reporter third point taking a stake in smile direct club during the quarter that. Went public in mid december, 23 a share, and slid to 9 since then revealed that his firm bought 750,000 shares during q3 and held them at least through the end of september that news is sending the stock up in after hours trading. As you can see they are up 1. 4 . Berkshire hathaway is filing moves in after hours trading you mentioned the firm trimmed the stake in apple during the quarter and took new positions in restoration hardware, and petroleum, both trading higher on the revelations as well its important to note with whale watching that all positions in 13 f filings are as of the end of september, and may have changed in the six weeks since then melissa. Leslie, thank you so berkshire is taking a stake in oxy earlier this week, carl icahn cut his steak in saying that the stock was extremely dangerous to own now. Pete, you have calls. Which makes it interesting. And we have seen nothing but call activity in a lot of Different Energy stocks. Occi being one of many its interesting to see buffet going in as carl is exiting. We know the time frames are something we dont know exactly but i think this is interesting and i think its something that weve seen energy becoming a bigger and bigger and bigger portion of what were seeing in unusual activity you guys are taking bets because its a small percentage of the overall market. Its the smallest it has ever been, and theres a reason why enps like an occi cant perform because theres oversupply status and theres a reason why refiners can because their input costs are the lowest they have been. Thinking about buffet, trimming apple what does apple have he trimmed wells fargo theyre steep and uncorrected and what is he taking some of that money, hes buying something thats down and to the right. Occi is literal any a free fall. Catching the fallen knife, hes not doing that, just putting a toe in the water. Not steep, though, is really just in the last six weeks or so it may not have been the best time to have trimmed they have had big moves in the Fourth Quarter. Lets not forget buffet is a guy who does the blood in the streets analogy. Hes waiting and looking at energy, and saying you know what, im going take a shot here, here, here and he does a good job with it. Up next, home depot building big gains, and bigger rally ahead. Well break down the action. Tesla revving up after getting a vote of confidence from Consumer Reports. But well tell you why there could be much more going on under the hood stay with us fast money is back right after this do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Most people think of verizon as a reliable phone company. woman but to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. Virtualize their operations. woman and build ai customer experiences. We also keep them ready for the next big opportunity. Like 5g. Almost all the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. Of millions of americans during the recession. So, my wife kat and i took action. We started a Nonprofit Community bank with a simple theory give people a fair deal and real economic power. 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Its interesting because home depot typically has an implied move, a move of 1 1 2 , except for this quarter in particular, it has an implied move of 3 a little bit more than normal. I think thats because last quarter we had a break away gap that adds to the positive momentum going into this quarters report so home depot fell on your radar today. What was the action like today. So the action is a little bit slanted towards call buyers. We have a little bit more call buyers, input buyers not seeing anything too unusual. Im seeing activity in the 245 and 240 strikes in next weeks series. And the technicals, what are you seeing heading into earnings. I love home depot i think its a great technical name it has a lot of relative strength especially in the home builder sector, and consumer discretionary. Its pulled back on to the 50 period its a great area of support to buy it off of and consolidating. Im looking at a potential break out. Youre be bullishly positioned into earnings. I am primarily for the preearnings momentum move which is helped by walmart, in addition, but on the actual move its interesting because home depot oftentimes will fall slightly and then rally after the report so im actually cautiously bullish for the report, and then in the post earnings move i would like to trade home depot. I concur with all of that whats interesting is lows, lags coiling to do something interesting. Home builders as a group has yet to exceed their highs of january 2018, so it might just be this constituent that would help the xhb do it. The itb got right there and started to falter so it will be very important, i think, lows maybe in a way has the catch up potential that would deliver even a bigger pop. Interesting what you think about lowes. Definitely. Lowes is an interesting competitor for me, home depot, lowes and home depot are neck in neck. Home depot has been doing really well, particularly in the pro renovati renovation spa renovation space, and they have done a good job giving the experience for the pro republican valentines day t republican valentines d, and thats something that lowes doesnt have right now. Would you rather. Lets do this set up by danielle, im ready to roll. Go ahead. I would absolutely home depot, and shes talking about professional services. Thats why they have the 3 or 400 basis point multiple advantage over lowes, and i think they hold on to it i think also if im playing Home Builders, i would rather be in, would you rather, rather, and sometimes it maps on this desk but even when we talked about restoration hardware, thats another way you can be playing this consumer reinvigorating the home. I didnt know you had a would you rather graphic its that official its crazy. Danielle, great to see you, danielle shay, simple trading. Com. Tomorrow, 5 30 p. M. Eastern time, and take a look at the cramer cam hes got the full interview at the top of the hour live at the nasdaq in times square, much more fast money still ahead. Turn on my tv and boom, its got all my favorite shows right there. I wish my Trading Platform worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. Oh, wow. You two are going to have such a great trip. Thanks to you, we will. This is why voya helps reach todays goals. All while helping you to and through retirement. Can you help with these . Were more of the plan, invest and protect kind of help. Voya. Helping you to and through retirement. By the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. All along he was whether youre out here on lte. Or here on a wifi hotspot. Xfinity mobile has more coverage to keep you connected to what matters most. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. Switch now and see how you could save up to 400 a year. And get 50 off when you buy any new lg phone. Xfinity mobile. Click, call or visit a store today. Welcome back to fast money Consumer Reports starting to change its tune on tesla phil lebeau has the story. This report from Consumer Reports, its based on survey answers from people who say heres what works in my car, heres what doesnt. About 400,000 people fill out this survey. After calculating what works and what doesnt, Consumer Reports ranks tesla 23rd out of 30 brands, but more importantly they recommend the model 3 and model s, thats a designation they took away last year when they dinged tesla for questions about the build reliability and this runs counter to a narrative thats been swirling around the company over the last year, year and a half, and that has to do with the quality of the craftsmanship of the vehicles that are being built out at the plant in fremont, california we saw these pictures of the tent out in the parking lot, the permanent tent and people said thats no way to build a car thats the reason the quality snipped last year. According to Consumer Reports it is improving and the owners of these vehicles say its improving as you take a look at shares of tesla, which by the way, have just been on a tear over the last six months remember they unveil the cyber truck, thats their electric pickup truck that will be happening next week in southern california. Phil, they yanked the recommendation, wasnt it just in february . I thought it was last year but ill have to go back and check. I thought it was in the last Consumer Reports annual automobile survey. Which they do this every year, and it usually comes this time of year, and it was based on what the owners of the model 3 were saying, you know what, the build quality is not that great. They have changed their tune this year. All right phil, thank you. Phil lebeau in chicago for us. So on twitter, i get a lot of questions about tesla, and i got a lot of questions specifically for you. I dont know why they dont just tweet you. They do they tweet me. They dont like me. Youre short tesla, what do you do when osaka is up this much youre a long time believer in the bear case but in the meantime, its a painful short. These are Great Questions with a stock this volatile, i would never put a hard stop on it people say wheres your stop you dont put a hard stop on a stock that moves 20 im short 310, 315 what i think has happened since the last number we saw with the huge cash balance with the profitability, stuff we have never seen in the company, i dont suddenly say all those things im worried about with the Balance Sheet go away. Theylessen because the ability to raise cash is greater now right . Of course they do but a squeeze in the stock that may be coming about them actually overcoming Balance Sheet concerns which i dont think they have because i look at the Net Interest Income of last quarter and it doesnt tell me they had that much cash in the Balance Sheet of the last quarter, it tells me they pulled a lot of lever on the Balance Sheet of the lags quarter. If you think the company is executing so well, which the valuation, which makes no sense anyway if they were executing and did have a Balance Sheet would go to another level. Is it a car company, tech company, data company, this is what i struggle. Youre still short im not drowning in a short. A lot of this has been played through the option market but to say you put a hard stop on it, and being in the whole 15 on a tesla short is not something you lose sleep over. Its just not. If it were a risky short, you have unlimited risk to the upside the stock is up 60 since october. It is overbought, but it hasnt unwound the overbought yet, so either the stock has to come in or its going to unwind the overbought, and still you have a 22 short interest, so this could go higher than up 60 in a month. Higher or unwind. We know the june 3rd low, 175, here it is, 300 if its going higher, the path higher, more likely than not passes through a lower price, sell off, dip, whatever word you like, thats whats due. Implied volatility is important. This is high volatility, on a stock thats gone higher ayg got to be very careful plinthe options. Up next, final trades sourced colors and flavors and are gluten dairy free. Theyre all clean. All the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. It nice . Ce. This is the mostawarded minivan three years in a row. The van just talked. Sales guy, give em the employee price, then gimme your foot. Handsfree sliding doors, stow n go seats, man, yall getting a hook up and yall dont even work here. Pacificaaaaa nongmo, made with naturally sundown vitamins are all sourced colors and flavors and are gluten dairy free. Theyre all clean. All the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. Final trade time, i think twitter is going to breakthrough 30 in the next couple of weeks giddyup. Sometimes theres nothing wrong with trimming a winner, apple, trim, sell, do something. Sometimes theres nothing wrong with adding to a winner. Nike. Steve am i supposed to say something. Witty and whatever. Take it easy steve. Especially for me mcdonalds watch the 187 level, i think youre okay to get back in. See you tomorrow here at five, mad 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 is not just to entertain you, but to educate and teach you. So call me at 1800743cnbc or tuite me jimcramer right now in a totally new paradigm, one that must be put in context, it doesnt matte