Transcripts For CNBC Fast Money 20240713

Behemoth consolidates a space under going massive upheaval it started with smaub cutting commissions to zero. Sparking a flurry of headlines over the frantic race to the many bottom. With the news of the deals between the two giants mass the race to zero become a sprint for survival guy. I dont know. Hello, mel. Hello. I dont know if its a race to zero or sprint to survival. Its genius by schwab. Dan nathan alluded to it a few weeks ago. Schwab was genius, cut rates to zero watched the keters go to zero in terms of stock td amerd trade went from 50 to 32 in a straight line. And then making this announcement they are probably buying the stock or company at levels they wouldnt have been able to buy them a month or so ago good for them. This makes schwab a huge forepersons in the business. And the play. They are a force. Even more so now. En and quickly i think people say etrade next to go not so fast. There is room on the downside. The Second Derivative play, Morgan Stanley, for example, i think you see in my opinion injury you see advisers sort of flee the wire houses more so than they have and go to names like this to hang the shingle, do their thing, get paid more, own their business i think this could be really negative for Morgan Stanley. It wasnt today. It could be. What is Charles Schwab buying what would they be buying. Matt levin at bloomberg he had a good piece out saying schwab broke ameritrade to buy it if you think about it you went through what was the loss revenue Going Forward from commissions . I think, you know, 7 of schwabs revenues were commissions versus 36 for amerd trade. Really what they are trying to do is aggregate assets but they want the trader thing. Because they are going to cross sell and get new revenues from the asset bases. I guess the biggest thing i would say is these are commodity advertised utilities when you see the pricing of services go down and there is not a lot of daveiation. Ill tell you i know the guys at amerd trade. Nef good tools they have good stuff when you put it together i think youre going to find probably better education, better tools and then they figure out how to cross sell a lot of things. What did they buy they bought a brand. Come on, they bought a sticky brand. The two names together, 80 billion in market cap. 5 trillion we said at the top of the show and no one is close. Think about the stickiness of the asset base guy brings up the dynamics in the raa and Investment Management business. But the people with the companies probably have been there a long time. People dont really switch so the fact that theyve gotten that big of a hit start on everybody else and essentially as we talked about put the competition out of the game. Look if you listened to td calls over the last year you heard frustration from Analyst Community whatever executing all day long where is the growth coming from . Where is the growth coming from . Lets pennsylvania face it this was the question. The had m and a question was the the question everyone was asked. They expected etrade but look at this. I think its brilliant. It was only september 30th schwab did this. So the target has lost more in market cap i mean they were able to buy it its only seven weeks later. This had to have been started before today, the discussions. They seem to be far along. That has to be a couple of woke process. Think about how quickly they went out and did this. Crushed everyones business and then are seemingly able to buy a big swath of assets. I mean thats pretty impressive. Now obviously its a land debra debra are grab what do you do in . You are left, interactive breaker etrade. You have to be scrambling because its only getting harder its already hard enough as opposed to to september 30. Is it even possible for a Morgan Stanley or a Goldman Sachs to buy one of these platforms . From a regulatory perspective zbleen absolutely from a regulatory perspective zbliets possible. You know what is so funny thats such a 199 question if fast money existed in 1999 thats the questions they would ask. Were partying like 80s 19920 years later. Its interesting to think of the evolution. They were massive disrupters in the 90s. Schwab schwab was a zwrupter in the 70s. I think the only path forward is really consolidates amongst what we called the discounters and now we call them online. Disrupters getting disrupted themselves robin hood came out and you have platforms saying. Free. Were taking this out to they were disrupted and jumped ahead and now they skated where the public was going and here we are today. Nobody even close. One last thing about antitrust the customer is paying zero for a lot of things. Maybe the administration would have some problem. I doubt it. Market share is at issue. I dont know. But whats interesting when you think about the combined revenues of the companies its like 16 billion guy mentioned Morgan Stanley abwith company with a similar market cap to the combined entities and 40 billion in sales. Its more diversified. You could see an Investment Bank buy Something Like that. It would be a smaller percentage of their whole it makes it more competitive in a way. If you see six Online Brokers go to three thats not great. Thats when regulators get their antennae up. Think about in the wireless space when they wouldnt allow three and four to merge you in duopoly, verizon appear and at t schwab was genius for a a number of reasons not least of of which only 7 or 8 of the revenues were drive. By commissions where e trades and some other places from 15 to 30 . They can say we can afford to go to zero. But now look at schwab the stock and say does it make sense at the levels stock rallied today. But trades close to 20 times next years earning was no significant eps growth its taking time to make it happen my inclination is if you chase schwab here you are trading wrong. And here is the other thing about that chart that kmart is a function of a 10year bull market. On some level think about the market theyve been in think about the low Interest Rate environment. The 5 trillion in combined assets is something to do with home equity loans and rochlg credit thats huge margin business that they offer thats great for them. If you think and concerned about the cyclicality of in type of business where we are in the market cycle, thats another reason to be cautious. Kind of what guy is talking about. Does the deal make them better suited for thedown turn to come. It makes them better suited for a market connecteddown turn. But we talked about the consumer guy talks about how levered they are. Penchant and wouldnt for spending thats the story is the u. S. Consumer levered and there is no question that theyre baieroing money from the banks who i dont think are giving it away and they have collateral at he is these places. But thats part of the core business. I think time is right, the correlation with the market, right, is clearly there. But also, i mean if rates move higher its really good. Well, hold on, they took out the number one competitor how Many Industries do you see that happen and then when you think about how leveraged in technology they are and how much cost they take out . No matter what the market does two years out, three years out this is a home run for the fact that theyre not competing on the marketing front. These guys spend hundreds of. It can trade down if the market is down. Of course. Right. Were fl agreement. Listen to you. Very dismissive sounding. No, no, no. Thats as good as it gets fours. I think thats really impossible lets play karnak. I like that game putting the card up and say. The next the next combination in this space will be. Oh, wow. I think at a certain point etrade goes i dont know if Goldman Sachs going to gobble up etrade will go but there is going to be pain for the next couple of months its going to be painful for etrade they are letting that one die on the vine and somebody will come in and gobble it up. But if i had to guess, etrade goes, march of next year how is that . Like that. You want to play karnak. Is he allowed back. Im back. Im back you might not see me until the c block. But i think its robinhood tim. It could be aic at a operative. I think youre also talking about there could be private equity mona sees a lot of value in etrade etraed is not going away tomorrow be clear. Lets talk about the pole position how about a money center bank. Yeah. That business is most aligned. That makes sense. You need to scale in private equity and reduction of cost it has to be somebody giant that would make sense. Private equity is also great at taking businesses private that are in structurally difficult times. And finding and finding the valuable assets, selling off pieces the total playbook. Asking you guys as shareholders, ifcy citigroup or bank of america one of those two lets say said tomorrow were buying etrade would you be happy. For the right price i would be i think, again, the businesses are complementary. And citi and bank of america have booming, driving Wealth Management raa businesses that this makes sense but the infrastructure, the pipes everything they have makes a lot of sense. Karen. I agree i think its a chance for them to reduce costs and run more efficiently i would. Interesting all right coming up. Dont ask dan. Dan is out. He played karnak already. Stock finishing in the red and one tough technician has two names amid the pullback shelter. Former ceo allen quest trom giving the retail round up and the winners and losers of the retail space much more fast money right after this as a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. It is nice. His haircut is nice. 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. Can your car do this . Man, yall getting a hook up and yall dont even work here. Dont act like im not doing yall a favor. Yall should be singing my praises. Pacificaaaaa with employee pricing, get 4,107 below msrp plus 1,000 bonus cash plus 0 financing for 60 months on the 2020 Pacifica Limited what are you doing back there, junior . Since were obviously lost, im rescheduling my Xfinity Customer Service appointment. Ah, relax. I got this. Which gps are you using anyway . A Little Something called instinct. Been using it for years. Yeah, thats what im afraid of. He knows exactly where were going. My whole body is a compass. Oh boy. The my account app makes todays Xfinity Customer Service simple, easy, awesome. Not my thing. Well back to fast money, the record rally taking a breather this woke with the dow and s p 500 falling hard the third day. If you think this is the beginning of a pullback the guest guest says he has ideas where to take cover. Thanks, melissa lets look at the shortterm pretty much every Technical Analyst on the streets has been worried about the shortterm peak developing. Here is the market coming off a little bit a lot of sport down in the 33025 ray range. We have been bullish on the market all year. And we are the playbook in 2019 where we get the momentum peaks here and here and here and now here, is unlikely to give us the same sort of pullbacks we saw through the bulk of 2019 why is that . If you look at the longer term chart we think the playbook changed. We used this chart a number of times before but whats important is the longterm s p in the top panel, the 200 week moving average, tracking the fouryear average for the market and such a good barometer for the longterm expert we saw if had it 2011, 2016 and 2018 as well. Coming out of the trading range were in the market cycle and in the secondup leg not many people follow this but its a coppic curve. We found it good over the years to track into the cycle lows there was one back in 20112011 and 12 and down in 16 this should carries to us 2021, 22 they we think there is upside for equities in general. However a lot of people are concerned. Caterpillar is not defensive by any means. But we think we are not seeing that much pullback thedown trend has been broken. You get the pullback in fact interesting today when the market was down cyclical were up, banks up. And yields were up we still think there is more upside in the cyclical names maybe a little volatile but still going higher the relative performance trend in place two years is reversed similar to what we saw in 2016 so if you are concerned about the market i can understand not wanting to buy caterpillar our view is it goes higher well into the First Quarter you want a defensive name, j j is well suited the 200 week moving average its sitting on it. For reference if you think about nike in 2017 thats the exact spot before it took off and thats exactly where disney was in 2008 hovering around the 200week moving average getting ready to go. Sure its weak hasnt had a lot of portauprince but thats what nike and disney looked like over the last couple of years defensive name id stick with Johnson Johnson. Rob sommer come over. Bring the chair over as he so aptly does. Remember will hit his head. Got stapled. He got those removed. So he is all redhead. He is not a redhead. Neither here nor there. I understand youre a Technical Strategist but when you prept these ideas to clients, whats the reaction . I would think that that you get a lot of pushback. On the cyclicals . So. On Johnson Johnson and kaerlt pilar caterpillar for one is in the cross hairs of china trade war. 00 . The Johnson Johnson has the litigation risk. Weve been bullish and cyclicals through the year i think we got the semi call fairly well throughout the year. The turn in the cyclicals looks longterm to us through at least 2020 we see with jp morgan breaking out of trading range no one wants own deep value or cyclicals. And i tell you if you look at the charts they look convincing from a longterm standpoint. I can understand a bit of volatility into the year end around some of the names that run. Cat is up 26 off the november, october lows on j. And j. Push. Thats great we want to hear people dont like the names thats how people get back into the stock. Are you saying lets talk about if something goes wrong with china trade, that the cyclicals have a different risk reward built into at the prices than the market on whole. I think we have to make the assumption its an assumption. It could be. It trade goes bad, these sticks will be hit with you, again, if you step back a lot of the stocks have been under pressure two years. When while trade is part of the issue i think a lot of is the economy. And the backdrop talking to top lee on the fund saturate on the fundamental side the ism look like they are about to bottom. Its more about the economy than the trade deal yes there is volatility but i dont think theyre going down that much. Seems like the same part of the trade would be germany and trade economies. Yes imt bm. Would be a fedex. Do the charts feel similar. Fedex is a bit different animal but generally across the industrials and transports, banks its the same profile. One to two years down to the longterm secular uptrend which i think is important germany is similar em looks the same. And part of that trade is i think the dollar is peaking longer term. Thats going to be a controversial call but i think thats whats happening i think its going to be a big tailwind for cyclicals. Rob of fund saturate. Would you rather on this end of the desk. Not cater cater pearl epilar. You go back to the Third Quarter october 23rd missed on eps, missed renew then the Prior Guidance which you could drive one of their tractors through. Oh. Its trau 1175 to 1275 was guidance ratcheted that down now you have negative eps growth and trades at too big a valuation i understand if you think some magical china deal is happening and all of a sudden every rig in the country mass a caterpillar labor neck to it yopdio i dont see that. Im not playing your game. What. He is calling for a little pullback let me tell you this, the december 31st quarterly spy. The eps trashing the s p 500 the at the money put is less than 5 the s p up 24 if you thought you wanted protection between now and the he said of the year it costs you 1. 5 thats stounding it tells you a level of complacency i think youre going to be back towards the 300 level or 3,000 in the. Im not sure going to get it. I think you get a shallow consolidates. And i brought him back. Dan is so in trouble. See you guy in the f block. We should take your chair out. Take robert all day long. Thanks for that rob head over to the website cnbc. Com here is what else we have coming up on fast. Retail at the forefront again today. With earnings from gap and nordstrom. We dive into the numbers and look for the winners and losers in the space. And then we explore the universe of under the Radar Software companies to find out how the Options Market is betting on ve. Va systems those stories and more when those stories and more when fast money returnslky hair, gn and healthy nail natures bounty, because youre better off healthy. Wow giving one. How did you guys. . Dont ask. The lexus december to rembember sales event get 0 percent apr for 60 months on all 2019 models. Experience amazing at your lexus dealer. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back to fast money. The retail earnings keep rolling in np shares and nordstrom and gap both on the move after reporting results. Back to Courtney Reagan at headquarters with the details. Nordstrom shares up almost 9 after beating earnings by a wide margin, increasing fullyear guidance that one by a bit. The rack busy, positive sales growth 1. 2 on less inventory. But but the Department Store sales unit saw net sales fall 4 fewer markdowns in the quarter that helped grow margins on the call the executives said theres been a strong response to the new york city flagship one month in and a stronger sales lift more so than expected at the mens store across the street copresident ariniga nordstrom said opening the flagship has been the most important milestone in the Company History first imagined about 20 years ago and took 7 years from start to finish the open the doors doors. Gap shares are higher as the adjusted earnings game in slightly better than the preannounce number the comps unchange, down 4 . The lowered fullyear Earnings Guidance was reaffirmed on the call interim ceo Robert Fisher said the search for a permanent ceo is moving with, quote, urgency. And the company is looking at internal and external candidates fisher also said the old navy spinout is moving forward. The board and i continue to believe in the strategic rationale of the separation and the benefits it is expected to provide. First, the focus provided by separation will enable both gap, inc, and old navy to better serve their two distinct customer sets. Each with operating model taylored to their respective business needs. Fisher continued to say looks they are kpeting with focus on value. He said the separationwill ultimately drive improved cost efficiencies in the rebuilding of both the operational structures and operating models for both companies but gap brands that recommend and old navy by itself the big question was that spinout going to continue now that art peck is no longer ceo as of now, yes back to you. Courtney, thank you become at headquarters there lets get a trade first karen in terms of the names. Well, once again, we see haves and have notts jwn is the most interesting. They raised the mid32 to 340. At 8 sent raies raise trading at 10 multiple. Yet up 10 so people clearly pessimistic. The bar was low going in and they managed to hop over it. Macys on the other hand, the bar low but still tripped over it i dont know how its its its going to be tough sledding well get to it. Yeah. Its been a week of hits runs and error in the retail space. Lets get perspective from a man who spent more than five decades in the industry. Allen questrom retail resume runs deep known for top jobs at jcpenney around barney new york and served on walmart board as well now a director for the retailer at home allen welcome back to fast money, great to see sfwlu nice to be here. So many people called for the death of the Department Store. Here we are we have a few reports, some misses, some hits. Whats your assessment of where we are now in the space. I think the Department Store in particular mall businesses is undergoing enormous change and frankly we need to see a continuous closing of stores i would say another 30 . We have just too many stores i think the good news you heard from nordstrom even though the business was down, they have fewer stores i think they can put the kind of attention into the fewer stores needed in the Department Store space. The stores have got to be exciting theres got to be a reason for being there. And quite frankly right now i dont know what the reason to go to pennys or macys is. If you go into the nordstroms stores nef terrific Sales Associates the new store has a tremendous presentation of food which brings a lot of energy and it brings people back into the store on a regular basis, particularly in the city that may not work so belle well in the suburbs i think one of the things you see when you see the walmarts and targets, they have a Grocery Store business that Grocery Store business at walmart is over 57 of their business that means people come in every week to buy. In the case of the dp stores they dope have that. People are not come in because they can buy it on the internet. And its not they have their Internet Business themselves but the point is if i dont come in to buy in the store i miss all the impulse purchases. I buy my bra or underwear but now i i buy that on the internet but now i dont pick up the impulse purchases. Thats the biggest thing hurting the malls and the Department Stores is people are not coming into the stores as often, not visiting as many stores because they prelanded through the iphone. Right. And this all happened in the last 10, 12 years since the iphone has become the dominant force of peoples communication today. I agree with that i have a bloomingdales three blocks from my house and i havent set foot there a long time but i have bought online. Allen. You should you should go to the bloomingdales, the store now because any renovate andrea done a terrific job in the kemp rather side. Maybe ill give it a whirl. On your recommendation is it that the stores, the chains are reluctant to close fast enough . I was talking to terry runde green formally of macys earlier this week and he said the same thing that we are completely overstored his number was lower, maybe 20, 25 of stores need to close. But is it just that Department Stores dont have the courage to make the hard decisions fast enough its a matter of giving up a lot of volume. And in fact you may end up gifting up a lot of volume and profit on the shortterm but remember, walmart and target both were willing to give up volume and profit as they put in the changes this that they put in place two, three years ago. That resulted in big improvements in their profitability and in the sales and its really about how do i make my store a reason to be quite frankly right now im not sure why you want to go to bloomingdales or macys, why you want to go to nordstroms nordstrom has done a where the job when you go in they have really good sales people who help you threw the transaction many of the Department Stores they lost the touch with the people the people are not involved with the customers. Many not even trained. And thats an enormous detriment. In addition to the fact the stores are not neat and exciting that has to be done. I think can you do it better by foegdsing in on fewer stores, whether 20 or 30 process , it needs to be less and we need more attention into the stores to make sure you have the right Sales Associates, right assortment and you make the asort thement exciting so people want to come in and see whats new and different. Right now thats not happening. Who are the winners in the space, allen and do you own any Retail Stocks aside from the places where you have worked . I tend not to buy ri was goio buy if i was buying stock it would be it would continue to be a target, walmart. R. Are. H restoration he has done a fl fantastic job of creating new ideas. The questrom retail basket. One last thing allen, the thing concerning you most because this is interesting. The whole consignment trend that we see with the likes of a posh mark pan the real real plp do you think this could be a threat to the Retail Business at large in. I think its a its going to be a small business. Okay. I think if people say that they dont want to buy new clothes because its bad for the environment that may be a difference but i think people still want to buy new clothes. But there is not a lot new out there you think you need to add to your assortment. Its the merchandise fault at this point not can exciting enough. Its also its more the peoples fault because its the managers who have to make the changes and the creators have to come up with interesting ideas. Allen great to speak with you. Thanks or your time. Nice to be with you. Allen questrom joining from us dallas tonight. Always good to get the insights. What do you think of his retail basket. I like it and first of all its hard to argue with taggart and walmart. Who needs to own dwoin and other high octane. And orthotarget and have the returns you have had he had lowes in his list of folks losing touch with the commerce lowes gave numbers that were strong even though they do traded at twoturn discount to home depot but i think the Big Box Stores you can make an argument there is too much competition and too many stores. Ariniga that the valueses here are a bit scary. Here on the fast money we try new things and recently tried something why are you smiling at me dan . Dan is being so mean to everybody tonight. What are you talking about. We started something called the chart of the week. Do you recall that melissa lee. The. It was the restoration hardware. Restoration. I think that stock can go higher quickly nordstroms i hear karen they boat the quarter eps 18 cents only ratcheted guidance by ache inle maybe 7 cents. I can understand why the stock i thought it should have been north of 40 post earnings i was in rate in assertation that you had a rally i thought it was from 38 to 32. Were you saying something mean. No of course not you brought up the real real i i think niches like that are interesting when we talk about overstored ner growing sales 30 a year thats niche but its a feature on amazon or other sites its not a stand alone take a look. Great brand and always opportunity for resale and that thing i think interests. Pot stock taking center stage during the democratic debate but we tell you why they are really lighting up. D ll in anwebrg you the changes for google much more fast money straight ahead. For every dollar you spend at a small business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. 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. Now offering the most techadvanced people talking for every dollar you spend at a small business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. The amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. Issues do matter i have a lot of respect for the Vice President he is swore me into my office as a hero. This week i hear him say i dont think we should legalize marijuana. I thought you might have been high when you said it. That was cory booker taking swipes at former Vice President joe bidens stance on marijuana. Last nights president ial debate cannabis stocks soaring a second straight day today is the cannabis craze turning a corner. Lets take it with a grain of salt after the battering early in the week there is an argument that monday monday we had the capitulation moment on the streets. But the positive past few Days Congress voting on federal the prohibition the more is ac roe and the expungement. If yous listen to the Canada Canadian lps and the devastating bad earnings any talked about ontario where they need to sell the high margin products has not been doing it that was a major issue ontario says theyre changing that dramatically then the operator like cure leaf dont need to come to market gtis numbers were fantastic you have a dynamic where people could see the profitability at the end of the rainbow doesnt change the dynamics in Capital Markets a bit. Its a very difficult time. Shouldnt that be a push pull for the u. S. Operators, what you said about the house mochgt forward or closer to federal legalization and then being profitable federal legalization would be bad for them wouldnt it. If you ask the companies, the big multistate operators while it affects profitability they are happy building the businesses they are building and you see separation between the haves and have notts in thte until late 2020. I want momentous event towards legal sayings gives people a sense its happening but the industry doesnt want it that quickly. Its all about profitability doesnt change the trends in the short run. But we go so oversold. Canopy growth is up 50 in three days this is extraordinary. Its the Biggest Company in cannabis and added 2 billion in market cap thats noteworthy dont mean it changes everything but it means it was overdone. From the politics of pot to advertising of politics google making changes gearing up toward the 2020 election. Julia boorstin with the details. Google announcing it will stop giving political advertisers the ability to microtarget political ads. That means candidates will target based on age and gender and postal code but not using data about political affiliations or public voter records. Google also clarifying the policy on misleading advertising. Say saying it bans deep fakes but the number of adds on which it takes action for the violation expects them to be very limited google plans to roll out the ban in the next week ahead of the december 12 general election in the uk and then will make the changes more broadly globally in january. Now, in response to the google announcement facebook which doesnt fact check adding says we have provided unprecedented transparency into all u. S. Federal and state campaigns. And we prohibit Voter Suppression in all ads as we said we are looking at different ways we might refine our approach to political ads. Now putting these comments and these moves into context, twitter ceo jack doorsy recently announced that twitter is banning all political and issue advertising while snap allows political ads but fact checks all of them. All of this comes amid growing regulatory concern for legislators about the power of the tech giants. Federal Election Commission Ellen Weintraub recently called for ban and microtargeting in the honest ads act proposing that online ads follow the same rules as t ads reintroduced earlier in year after originally introduced back in 2017. Now political ads are just a tiny fraction of the ad revenue of the tech giants but how the company that we are talking about here, facebook abgoog and lesser extent also twitter and snap decide to handle the issues around political ads will be important when it comes to the regulatory skroutny they face back to you. Julia, thank you. Julia boorstin in los angeles for us as julia mentioned, a small percentage revenue overall for all the platforms. Its a here is the huge but it drives massive engagement i think in the trump and Hillary Campaign combined they spent 80 million in 2016. But think about the engagement in the shares. And how do they make money they make money selling ads based on engagement metrics. Its fuel, right its the most divisive stuff they can get on there and push it out and engage and sell other ads. I think whats fascinating about this is that megacap social media who control the way we assume and the way advertisers advertise are making up rules right now and this is 2. 0 or 3. 0 at one point this would have been seen as total violation of free speech, Free Expression and these guys some of these people were the most righteous people on those topics saying we are keeping it out there they know the business is at risk the good news is we dont know the answers for social media and advertising because were evolving as a society. But these are important folks making important decisions and theyre decisions they wouldnt have made a year ago. I think there is a couple much constituencies right under the microscope politically there is that. But pushback internally from the employees about how they felt about what the company should be doing. I think that was an sporn constituency as well i dont think its going going going to make a difference in sper sperngs i hear you on engagement. Because the revenue is so small. Facebook engage many, the october 30th, the was north of 56 one of the first times in recent memory. The stock for all the noise out there and there is a lot of noise you look at the Third Quarter absolutely spectacular you can say maybe the Fourth Quarter guide was a little squishy. I think they are sandbagging i think it wants to trade back to the july 2018 high of 211 or so and see what happens when it gets there. Up next, tesla set to unveil the highly anticipated cyber truck in los angeles tonight well tell you how the big reveal could drive the stock plus options traders loving one soaring software stock, up nearly 70 this year alone we tell you the name and how they are playing it. 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With a nationleading 150 billion commitment to infrastructure, were creating state of the art, 21st century transportation hubs, constructing new bridges, bringing highspeed internet to every corner of the state, and committing to lowcost clean energy. With infrastructure built for the future, the companies of tomorrow can thrive here today. See your future at esd. Ny. Gov. Welcome about a back to fast money. There is something very interesting happening unthe surface of the software space. Often overlooked names like avalara, could you pleasa. Pay cromme there is one more name reporting earnings next week and the next guest says it could be the next software sleeper to door tieb ka trade Group Christian joins us now i feel we need a drum roll what are you looking at. Looking at Veeva Systems reporting next week, next tuesday. I mean, i think the Software Group has rested a bit valley really outperformed the past couple weeks. We are seeing a move back for the Software Plays as well as some of the higher beta tech i think really its interesting that these names have come back in vogue right as the trade tensions move up we are seeing it feels like were seeing some of the same plays we saw earlier in the year become really good its like deja vu all over again to reference one of the greats. Oh so what kind of move are you expecting. So december options are pricing in 9. 5 move which i think is a lot i think therightway i to play the name is through a call spread you could do that through the december 155165 call spread spend bag 3. 5 about 2 of the stock price which is a good way to play it and i think the other thing thats really interesting about this is we start to see some call accumulation further out if you look out in march where we are seeing call accumulation yesterday which totaled about 700,000 in premium, a good size. And in terms of the technicals, you like this as well. A lot of these Software Names are starting to do the same thing, starting to retake the 20 oh Day Moving Average opinion 550Day Moving Average this is starting to do the same thing. With the names like service now that moved up zeenlt shopify is one and could you pleasa software. This one has a good chance to revisit the highs as well. Christian thank you so much. Thank you. What do you think its its a 22 billiondollar market cap the options are expense of but that said i think thats how you play the stock like thats expensive and also up 70 on the year you probably want to define risk if you have a directional inclination. Up next, it could be an electric night for tesla as the company gets ready to roll out the pickup truck well look at what investors are watching for in the reveal check out the cramer cam jim has the ceo of chip maker amd whose stock doubled this year that at the top of the hour. Much more fast money still ahead. But in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. What are you doing back there, junior . Since were obviously lost, im rescheduling my Xfinity Customer Service appointment. Ah, relax. I got this. Which gps are you using anyway . A Little Something called instinct. Been using it for years. Yeah, thats what im afraid of. He knows exactly where were going. My whole body is a compass. Oh boy. The my account app makes todays Xfinity Customer Service simple, easy, awesome. Not my thing. Welcome back to fast money. Shares of tesla trag to get become to alltime highs as the company gets ready for the cyber truck reveal tonight phil lebeau has the details on what we can expect. Melissa, you know the usual with the reveals elon musk is putting on a show later tonight in california. And when he does, the cyber truck people forget about what they show us. These are the things people will focused on in terms of the details about the truck. Range, tow towing capacity we expect it it it is a truck to plug tools into. Think about a generator on wheels respect and the base price in . Under 50,000 thats where elon musk wants to keep it. This is him talking last month about the cyber truck. My opinion and this could be totally wrong it iktd be totally out to lunch here but i think because the cyber truck is our best product ever. And theyre not going to have it out to the customers until probably late 2021 well see if they give us details today. Thats the estimate at this point. Gm today said by the Fourth Quarter of 2021 it expects to have its First Electric pickup truck. Ford likely will be in that 2021 time range as well ribian maybe 2021, maybe 2022. Finally i want to show thu truck. This was announced today by Lordstown Motors you might say, who is that. Remember the work Horizon Company . They bought the plants from General Motors this is the electric truck, the first they expect to build in the plant coming in the Fourth Quarter of 2020. Looking at shares of tesla remember the reveal is about 11 15 tonight eastern time melissa. Do we cash spend with, cash burn has been a concern for in company phil, do we know anything about the economics of the build of this truck no. No thats the great fascination with this. The economics of it and also is it a niche model or is this something saying look we can really take on the pickup truck dominance of the big three. I would steer towards the niche model at this point. Phil, thank you. You bet. Phil in chicago for us. We know the crossover y and model three appear share lots of parts and economies of scale there. But for the company to embark on the brandnew vehicle we dont know where its going to be made we dont know if there are common parts with another vehicle that they make i dont know a lot of questions. There are a lot of questions. And the biggest question is can the stock continue from the 175 to 354 unabated move over the last couple months i would submit no. Now i said that probably the last 34 3r5 or 40 so thats been wrong you you have to ask yourself is this the he will is the news event . I think it is. The 38o 386 level he with you he with you saw in june of 2017 i think people are flagging that we dont get there. 380 on the chart you can see resistance sell the news event means this isnt an event we think is catalyst i dont think it is. The catalyst is doing 360 to 400,000 in deliveries and being profitable again you know, im cynical on the stock, short the stock my view is these tend to be side shows. The important thing is can they make this at 45 grand probably not if they cant make the model 3 at 35 grand. Lets see profitability and cash flow and follow through on the trends that were extraordinary and i think thats really the most important for the stock. The other thing limiting about the stock or this truck is that a pickup truck is really popular in the United States but not around the world. Yeah. En a tesla a Global Company at this point thats what they are banking on that they can get the economies of scale by being global this is niche in so much as the u. S. Is a primary market for the vehicle. So kathy wood for arc investment a tesla bull today on the network somewhere she said evs are about to explode. Let me tell you whats happening that more trpg the fortd mustang match e transparency on pricing. Five different models. Told you when theyll be they deliver on price abtiming and execution. And i think thats why evs ple xt in the u. S. 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. 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. Final trade time tim. A lot of news on google in the last we can. But the earnings reinforced this is great valuation a Company Growing in excess of the valuation. Chair wom. I find myself in the uncomfortable position of agreeing with dan. Oh. I didnt i think protection is well priced. Stay long. Dan. Im comfortable being with guys twitter here twitter. Guy. Nuance, breaking out to the upside, melissa. That does it for us see you back here tomorrow at 5 00 mad money with jim cramer starts right now. My mission is simple, to make you money. Im here to level the Playing Field for all investors. There is always a bull market somewhere. And i promise to help you find it mad money starts now hey im cramer welcome to mad money. Well to a very very special west coast cramerica takeover other people want to make friends. Im just trying to make you some money. My job not just to entertain, but to educate, teach, put it in context. Call me, 1800743cnbc, or tweet me