The hard earned dollars. This is facebook could facebook be broken up by government shares down on the threat of government action. All that ahead but beginning with the headline sending stocks to new records. The United States and mcagreed in principle to phase 1 of a trade deal Kayla Tausche live at the white house all day. Breaking news all day long and joining us now with the late breaking details kayla. Waiting official word from the white house and the u. S. Trade representative on a limited agreement between the u. S. And china that would see tariffs on sunday delayed or cancelled and would potentially roll back some earlier tariffs or cut the tariff levels from previous rounds. The wall street journal and bloomberg both reporting that President Trump has signed off on this agreement that was presented to him by miss top trade and economic advisers earlier today. The meeting that the president held was for roughly an hour in the oval office. And at one point he was joined by ceos of major multinational companies. Couplens, Union Pacific and Stanley Black and deck are, as well as the leader of the business round table, the influential Corporate Lobbying Group that has been advocating for potentially some breakthroughs with china that would see some of the tariffs that are so costly to the companies i just mentioned being rolled become. As i mentioned broien we are awaiting official word i dont want to go out on a limb too far and say exactly whats in the deal because at this point we dont know. But going into that meeting there was an expectation that beijing would be signing off on this deal potentially as soon as tomorrow and that the ambassador here in washington would formalize that agreement in some way. That would be what is different about in deal this time around compared to previous times that the president announced there had been a detante. This time the deal actually a deal thank you very much. Lets look at how the market reacted to all of todays headlines. Stocks surging at the open after the president tweeted we are close to a big deal with china then we got kplasen or skeptical. Then the news broke kayla told you about. Boom, new highs. Mike wilson by the way, welcome. Does the trade news change your outtlook at all heading into the new year no, i mean this is part of our outlook for 2020 we need this to actually for the Global Economy to bom in the First Quarter which is the call from the economists i think what this really does is it adds fuel to the fire of the rotation weve been seeing we saw it more of that today where the cyclical are outperforming the defense he he was. Yields are trying to break out im not sure yet were at the age yet. Here is the risk of the deal right. Markets top on good news bom on bad news this is going on for a while. We finally have good news thats good helps the recovery next year the question is how much is priced and i think. Apparently all of it. I dont know well see. In some skurpts it has you have to live under a rock to know its not coming its good we got it done the risk on the other side is was there pullforward demand i front of sunday threat of tariffs if a fan if there is there could be a air pocket in the First Quarter. I dont think its material enough to derail the economy but it could derail some of the more cyclical stocks with the big move we are hedged we have financials and overweight sim staples and overth japan and europe. Because thats a cheaper way to go cyclical exposure toed trade. Label me the person living under a rock this was basically the same deal i think they announced on october 11th, 200 or so s p points ive said appear say it again. President trump has done a masterful job of speaking to the market through twitter, his words. Good for him with that said, does in materially change the earnings forecast for 2020. No. And thats the thing doesnt change the Economic Forecast and doesnt change the earnings forecast materially for the s p 500. It does change it potentially for the economies geared towards Global Trading japan within maybe germany, south korea, some of the areas hurt by trade more materially and maybe some of the more cyclical areas we could see a pickup in demand once again, guy, i think theres been pull forward in certain areas. Semi conductors being the most obvious one where theres been pull forward of demand thats an area tariffed on sunday if that doesnt happen we may see a pullback in orders. What if we get part of the deal where they reduce, roll back existing tariffs. Yeah. Would that increase the s p earnings estimate. It could potentially thats no the in the base Case Forecast we dont know the anticipates yes yet. Thats for phase 2 and we dont know the timing of phase 2 yet the Public Policy strategist thinks phase 2 could be after the election may take a while to get the rollbacks. This is a fast moving situation not in terms of getting it done. Its been taking a long time but fast moving in terms of the flip flopping back and forth whats in the deal, whats papered whats agreed to by handshake . There is a long road here. I agree with you, guy, the president has been masterful using a phase one, talking to the market seeing the reaction and use going to his advantage. Especially when the deal is mostly about ag and not ip and it which is the reason for the deal one of the most extraordinary moves was in rates and the fact you see the uplift in anything thats a reflation trade. Yes. So the rotationinto resources and commodities is this something that continues . These are great looking charts. Look, we are overweight value relative to growth thats the value added idea. The Growth Stocks have bchted tremendously from this sort of shallow recovery fear about trade, et cetera. And any got overvalued and lower rates is part of that. Lower rates moving up is damaging to those stocks that money has to move somewhere. I think financials is the first. And banks outperforming. And potentially energy and materials. We had started to see the Commodity Prices have a move in the last week. Thats related to the same thing. Mike looking at the dee cyclicals whether european auto, copper hong kong these have been turning three or four months. Thats right. Waept it already in the charts that something was going to have an positive outcome. Absolutely. Its a combination of other things trade is part of it. The stocks got priced for recession. Thats what august was august was the cyclical being totally thrown out the door. Pricing in a recession theyve been recovering a lot of reasons. Part of that is we avoided a recession for now and trade is another boost to that. I think whats going on in the election in the Great Britain is a big deal right. That has made progress as well we dont know the results yet. Theyre coming out shortly but that kwob a positive for potential fiscal stimulus another area of stimulus for the cyclicals. To that effect we will get to more on the british vote at the top of the show looking down there was headlines crossing that looks like Boris Johnson may be able to keep the conservative majority well get more in a second. Sorry about that dan. Interesting point about the reflation trade and the last time we thought about in was 2018 it came amp the big jobs excuse me the big tax cut in late 2017. We saw rates go back up. What did we see this year . Rates went down in front what was three consecutive rate cuts by the fomc pmt here is the thing, is 2020 going to be like 2018 stock market was volatile preponderates went up because people felt better about Global Growth and that sort of thing. But it was a volatile year and the selloff fro the january highs to february lows fook seven, eight nine months to get to the prior highs does 2020 set up like that if we if you would pulled forward for the market performance. In 18 the u. S. Was leading economic expansion because we had the stimulus nous its the Global Economy bottoming. They are more attacked by trade. Quite frankly the u. S. Economy is more closed i would argue the u. S. Economy is going to bottom later than the Global Economy which may actually keep downward pressure on u. S. Rates. Okay. How is that possible when we started reinflating before everybody else why is our life cycle going to be longer and stronger. Because we pull forward demand we did a fiscal stim laws huge in 2017 that fed through 18 one of the things that does is create cost pressures for companies. Our call part of the equal that was right we had the earnings recession and didnt have Earnings Growth this year as well and the small midcaps are suffering. The trade deal does not alleviate that pressure. Thats unique to the United States and may keep downward pressure on treasury rates we are long treasurys because thats a hedge against our cyclical bet we are not going all in on the reflation trade yet. Think about what the fed though has done. Today you could make an argument fed announced 365 billion in the Balance Sheet dynamic may be more important than anything. We wrote about that a lot this week. We think the single biggest factor in the reflation first of all first they ended qt and cut rates three times and doing 60 billion a month plus repo operations look at the year offer year rate of change its bottomed in august and gone vertical the way that transmits into the equity mechanic is volume. Snpd realized vol is 36. Unnatural 6 on 100 years basis is in the 0. 5 percentile as low as you could see. We wrote about in last week because its attracted cta flows and vol targeting flows to tune of 175 billion in Global Equities just over the last two months so thats look, i mean i think that that is a skfrgs that people they talk about in, the fed Balance Sheet but havent quantified we tried to quantify it. Its going to persist through year to end for sure and probably into the First Quarter. Im sorry, chris, go ahead. I think what you describe is a environment driven by liquidity. Remember, 10year yields are 150 basis points below where they were 12 months ago thats stim la active money growth 10 percent annualized is that bull he shall for rest of world for 2020 than domestically. We think it is. If you are pro cyclical you think growth gets bet are play the higher beta areas. The s p 500 has been outperform is because people are nervous. Its the defensive equity market. Get fog vil villan in the uk in a second. But guy youve been talking about the are repo how can we not the repo thing in a few days day after new years and not be a major dent in the equity market. I wish i knew the answer. Nobody there are a few people paying attention you being one. Thinking i think all of us on the devg tried to talk about it. I think the fed clearly sees some problem child out there that theyre trying to deal with through the overnight repo rate started on september 17th or thereabouts when the rates spiked to 10 . Whats going on . Is that the sort of the boogie man out there that there is distressed bank theyre trying to carry through as long as they can . Or am i sort of reaching here. Look, the consensus few view and we would share is that we had a drain on reserve treasury raised a bunch of money to pay the fiscal defends about 300 billion of fund raising. And the fed underestimated how much excess reserves they needed in the in the Banking System at 1. 2 trillion. It was actually they thought 800 billion. They missed the mark by is 400 billion. And the market reacted there was Corporate Tax payments made in third quarter. Thats the common belief okay now theyve been plugging this hole for a while right. And hasnt been resolved yet. We think seasonally this is the time of year banks need more liquidity. Its okay this persists through year end if we see it persist after year end then we have a big are problem. Something to watch. Mike wilson a smart segment appreciate that. Thank you. Take care. The tra trade deal not the only big global macronews. Dont forget what we just talked about the uk elections brexit potentially on the line voters heading to the polls but the results looking good for the guy in office. Villam marks in london. The matter the first exit poll a few moments ago after polls closed here across the uk. And it looks like the conservative party led by Boris Johnson will gain around 50 seats compared to what they had in the previous articlement that will give him the workable majority when it comes to getting the Withdrawal Agreement with the eu passed through the building behind me once this fresh Parliament Takes its seat. However the chairman of the party saying a moment ago that these numbers should be taken with caution a spokesperson important thes office of labor party saying its far early to call the results. I would say though that this same exit poll two years ago, the 2017 general election very, very accurate. 2015 got the right result although not the right numbers just to give you a sense of the context for numbers we are seeing 368 seats projected on the exit poll for the conservative party to 191 for the next major opposition, 326 to it is the magic number for a guaranteed majority breye you may have said this i apologize. Were looking at the big move in the british pound which is up 2 peppers against the u. S. Dollar. Pound sterling up a big move according to the Financial Times this is the biggest win by the conservative party since margaret that muchers 1987 election they have not had ha very Strong Majority for the last nine years theyve been in office nine years but not had very Strong Majority its made it difficult as weve known the last couple years for them to get a lot done on the theresa may, Boris Johnson there was always efforts by the parliament behind me to stymy the governments attempts specifically on brexit and this marmt of those numbers hold true once we start getting the actual constituents vote numbers through, it will be much, much easier for Boris Johnson to pursue the brexit he wants to pursue and the market perspective of course thats about certainty, allowing people to see january 31st, a date for the uk to leave the eu and the uncertainty we have seen the last few months in theory would be taken off the table all right villam, wow what a big day big night in the uk. We appreciate it and again you can see the big move in the British Pound Sterling up 2. 3 against the u. S. Dollar. S its highest level since june of 10u7 2018 aside tim seymour from a currency trade any other way to play the result a stunning victory for conservatives. There is. And great irony in the pound is rallies because the conservatives could force a hard brexit this is not supposed to be pound positive on a net level. In terms of the pound its a risk on currency when i see the pound running to me thats a good sign for Global Growth whether thats whats happening its from a market and risk on perspective something we have seen many times. Back to may of 2018 in terms of the breakout through 136 on the pound im looking where you would have a major breakout right now this is certainly very good for i want as it is with all the other risk on today. Think about from a different vantage point, the british pound, an extraordinarily developed economy, correct, moved 2. 3 in a matter of minutes. In terms of a broad are market the dow jones for example, more than a 60 oh point move in the dow, which if that happened wed be talking about the entire show. I dont think, my opinion, i dont think currencies should move that way. Especially developed market currency and i dont think the u. S. 10year rate should from to 3. 25 fomented 1. 50 to 19. 90. This is what Central Banks do. When i mentioned the huge net short position you nodded. You have people short sterling two years here. Thats beginning to get unwound. They just got purmgd in the face. Look at sterling versus euro has the huge move. Et cetera more about the European Union and i think the currency market tells that you today. Looking at whats the percentage move upon the pound well show that later on in the show stung results for the conservatives biggest conservative marngt according to the fte nays thatchers verkd coming up another big story, facebook under fire, the big and i trust headline sent the stock tumbling today plus all over tonights after hours action adobe, broadcom, costco all on the move there is a lot going on, trade, brexit currency moves. After hours stocks woo. Break it all down live from the new yorks time limits square on the Nasdaq Market site more fast money right after this flying south for the winter. They never stray from their predetermined path. But this season, a more thrilling journey is calling. Defy the laws of human nature. At the season of audi sales event. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. And save even more when you say bring my own phone into your voice remote. Thats simple, easy, awesome. Click, call or visit a store today. All right. Welcome back to fast money. This is a big story on one of the worlds biggest companies. Facebook shares down nearly 3 today. Its on reports that the ftc is raising new antitrust concerns against the company. Is the specter of a breakup of fischer loormg larger now . Julia boorstin live in the l. A. Newsroom with more process julia. Well it might be, brian you see the stock chart. Facebook shares took the turn lower when the wall street journal report came out saying the ftc is seeking injunction against facebook as soon as next month. The ftc looking to block how facebook integrates app including whats app, menger and instagram. Because the integration could plak it harder to split up the company in antitrust case we reached out to ftc and facebook both saying no comment on the report. To put the report in context as part of the antitrust inquire yao into facebook the ftc is examining the social platforms request acquisition such as whats app and instagram to see if they were aimed at snapping up rivals and crushing competition. Mark zuckerberg says its a top priority to sbeg integrate the messaging apps to allow use tors communicate securely and easily with end to end encryption across the platforms the report says the injunction could look to bar facebook from the plan to integrate the apps making it hard to split up the company in antitrust case the marketers saying its important to note there is a great deal of backend integration in the Facebook Properties when it comes to advertising. As a result facebook has been able to grow ad revenue significantly. Now, for this to all come to pass, the ftc would need a majority of the five members to seek an injunction and then file suit in federal court to obtain one. Brian, it will be a definitely big story to watch. This is a big story to watch. Julia boorstin appreciate you bringing it to us. A lot more tomorrow. But chris, right now would you buy facebook. Im a buyer here. Listen youve. On any weak zblies on any weak sflis. When the government is sniffing out breaking it up. Whats remarkable is these are the headlines all year and the stock resilient in this light of that. To quote mr. Ron burgundy this takes it up a notch. I think the difference is here four or five times it finds support near the 200, 190, 192, i think to buy the stock if you rook at it as part of fangs. Everything you say i agree with there is a reason facebook is cheaper. There is a people put Management Teams at a prem up management they think is innovative at a proposal upnp facebook traded at a discount for a long too many and it continues to the argument is that they will not be able to the doj, ftc are concerned about antitrust especially meshing the apps together and then difficult to break it apart when it sounds like they want to. Weve been saying or some have been saying i certainly at least believe breaking up facebook into the parts, some of the parts is a way to unlock value. Also probably a positive on the margin for the company listen, again i say why i think sum of the parts that could be a situation im just throwing it out there i think some people agree with it some disagree with that said, over the summer technically we talked about, the it did everything it needed to to make the run towards i think july 2018 high of 211 and change we and talked about that it concerns me that we pushed up the 203 and it seemingly for the day has failed i would be concerned on the back of that. Remember how quickly that summer the stock went from basically 210 to 140 in a straight line. Not suggesting thats the move but youve seen the stock move time limit violently down before. Its a tough trade. I think this is different this is a piece of news if you look back to 20 years ago when the government set sights on microsoft they startwood a sequence of events like this worried about it being too big and hard to break up making one point we went into 2019 on the stock, the headlines were different it was about how was user data. Analytica a different p. O. Box. And investors got comfortable with the fact that they are growing sales from 5 a billion to 70 billion this year. But earnings are going to be flat year over year because they do that stuff to secure the data, secure the platform against bad actors and that stuff. What they did stealthily this year is added in a whole heck of a lot of spend on the interoperability of the platforms and ftc is concerned how to break it up and they accelerated that and it makes it harder and they did it stealthily when they knew the stock is cheap and its hard to say sell on the normal fundamentals. The headlines are terrible and you gave back six or seven days of gains who care. To mr. Guys point. What did they pay for instagramable. 1 billion . What would it be worth today as stand alone. People think its 100 billion. 200 billion. Not 200 billion but clearly more than they paid for it. Guy adami its a 70 oh billion Market Cap Company broken up you think it could be a trillion. I dont know about a trillion i remember when whats app came out i never heard it because okay boomer. But dan nathan spot on. 20 billion deal. Think about what that metric would be now again, thats why on the sum of the parts you can make a cogent bull case for facebook. Big story too i stee a banner in cnbc. Whats apping now more coming your way on fast money here is whats on deck. A slough of big tech stocks posting results in the last hour the desk breaks down the numbers. Plus netflix versus Disney Alibaba versus amazon. How you aypl them against each tore other to make a profit. That and more when fast money returns. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. And who doesnt love going home. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk welcome back to fast money. While we were on the breaking news animation because if you are joining us there is big news out cht United Kingdom the british pound hitting the highest level since june of 2018 the news is this remember the National Election showing the kesht party is not only set to win the urk election with the clear majority but overwhelming majority so large in fact that the Financial Times out with a headline that it looks like the conservative guys could win a biggest majority in Uk Parliament or treeft overwhelming victory in election since margaret thatchers team did it in 2011 we have seen the euro get crushed against the pound. Thats inverted. The pound up against the euro, pound up against the u. S. Dollar chris verone im not a big currency guy they matter its a huge market. This is a two or three finger move in milepost one of the biggest moves in some time its speaking speaking to how short the street has been on the sterling and this is less about the uk. Theyre a trade can we make money on this. Long sterling, more shorts to cover. Long sterling i love you lay it out boom moving on. Earning alert on two technology titans, both on the move reporting numbers. Weve got full Team Coverage to break down the names seema modi breaking down with broadcom and josh lipton with more on oracle quarter. Brian in terms of the quick take from the street i caught one patrick wahl raven from j and p security sturts we want to see sustained growth. Did not get it here. Data base grew that was a miss and other growth in line with expectations cf oh on the call calling it a solid strategy she expects Revenue Growths rates to increase. You will see us expand margins and grow eps double digits for the foreseeable future she gave guidance q3 revenue expected to grow 1 and 3 . Nongap eps growing between nine and 11 . Between 9 and 57 cents she expects constant revenue will grow faster than last year. Reporting doubledigit growth for the year Larry Ellison on the call talking rivalless he says they have Old Technology and the Customer Base in his words is up for grabs. And finally brian i want to end on adobe bring you those results. Remember that stock up 35 year to date. Heading into the print they reported 229 on revenue of 2. 99 billion that was a beat on the bottom and the top guys back to you. Josh thank you very much. Anybody have a strong point of view on oracle well oracle quickly, i mean they missed. Lets put it out there eps basically miss revenue basically a miss they are talking about 2 Revenue Growth thats not interesting they can talk about nongap eps growth as much as they want. Its nongap eps growth which we know can be orchestrated the stock is it relatively inexpensive. But its me andreaering at the 5 a level forever. The issue with the oracle is the infrastructure is something that its growing slowly the only people use going are oracle customers theyrenot breaking in status quo enterprise as guy said, the stock reflects that because the valuation isnt difficult relative to itself i think its truly a question of they are still a Database Company and the biggest threat to legacy i love how they are going after s. A. P. P. They may want to go after blockchain and. Because blockchain and ledger are the biggest threats to databases. I wonder if investors are watching blockchain growth and sitting on oracle its saying its not worth the money. The s p at a new high every day. This stock hasnt made a new high in six months right there there is a message that the market is not impressed with results i think 54 is the key level if you are long under 54 the risk a larger problem developing. Good sfuf stuff let us switch gears to the big Semi Conductor stock moving after hours seema modi back at cnbc hkq with more on broadcom. And updated of an upbeat Sales Forecast not enough to lift the stock but broadcom bets 5g will boost demand for chips in 2020 the company says in 5g cellular infrastructure we are leveraging our Ethernet Technology to bring the network to the edge. Now ceo haktan acknowledge its a tough year for semi conduct ner general. But he says the broadcom core business is holding up well and the ability to grow inorganically through acquisitions of technologies has helped the company diversify and expand business. We are looking at shares of broadcom turning lower in after hours by as much as 1 and it has underperformed the broader Semi Conductor index this year. Its up 28 versus the etf up 60 . Analyst are currently asking questions on the Earnings Call and we do expect, brian its relationship with chinese tell com player huawei which was a key skplers to broadcom to come up we will be on the call, any details we come back to you. Seema, thank you very much. Semi conductors as a group have been red hot. The smh etf has investors shaking their heads. If they didnt guy buy it a few months how high can the chips rip process christian is over at the plasma to break down the action what are you seeing in semis. We see some risk on markets. I think overall when the mechanic moves higher we want to see the semis break out. Thats what we have going on here and so first i want to look at the technical and smh etf. And one of the patterns that i really like is when we satisfy see consolidation and uptrend. We have it in a tum of different places on the semi etf one right here and then a move higher then secondly recently what we see is a little bit of consolidation in the break higher which is a nice thing that we want to see. And then secondly what i like to do is look for two Different Things when we look at trading there is two seeks one is confirmation. We are looking at smh over the qs looking at how the sector performs in the overall market and you can see we have the same thing going on here. We have a little bit of a dip and we have now some nice real nice relative strength going on in the Semi Conductor versus the overall market. So great way to kind of play in group and what weve been say seeing the last couple days on friday we saw applied materials, a lot of option activity yesterday taiwan semi was another name breaking out to new highs. Now we option activity in amd pch i think this is a great name to play for momentum it has a little bit over 9 Short Interest in the technical we have the same thing going on here we have a bit of consolidation and break higher and then a little bit more consolidation and it looks like were breaking higher again so thats the first see. We have the confirmation the second of all we see two times average call volume. Which is the conviction that we want to see as well when we play a name within a group. And i think one one trade in particular caught my eye today right out of the gate today we saw momentum in amd and a nice size trade they are going after february here which gives us a little bit more time in the trade and going out and spending 345 when you do the math here you get 2. 4 million thats a nice size trade and good indication that someone is looking for amd to push higher and push to new highs. I thinks in a great way brian to go played ahead and exploit the pof move in the semi ukt the can. Chris farmer thank you very much. Whats your take on amd. If you are in this trade, the semi trade and looking for names levered to the continuation of the momentum amd is clearly one. Its but its up 50 in the last two months the idea of continuing to play that into the new year defining your risk with calls make perfect sense. I just want to go back to one of the things mike wilson said at the top of the show. If there was a group that might have seen double ordering and inventory build into the potential tariffs, its these guys but the idea of defining your risk into the new year into q4 earnings season which starts for the semis in midgerman makes sense to me. Good stuff. For more options action tune into the live show tomorrow night by the way, 5 30 p. M. Eastern time its already friday amazing tim coming up right now he play not be santa. Im not. Not you but he has presents its chris sitting next to you he is unwrapping the latest pair of trades heading into the new year more fast money right after this have you ever worked with dr. Francis . Oh yeah, hes ok. Just ok . Guess who just got reinstated well, not officially. Nervous . Yeah. Yeah me too. Dont worry about it, well figure it out. Ill see ya in there just ok is not ok. At t has americas best network, now with our best plans, at our best prices, starting at 35 a line for 4 lines. New from at t. phone ringing a phones offers big button,ecialized phones. And volumeenhanced phones. , get details on this state program. Call or visit and accessoriesphones for your mobile phone. Like this device to increase volume on your cell phone. phone ringing get details on this state program call or visit on the first day of christmas my true love gave to me welcome back to fast money you know the song. Its christmas season. To honor the season we cant give you a partridge or a pair tree but we give au pair trade chris ver yen with a holiday wish or something. We are talking about two pairs we like for 2020 well start on the shortside we have amazon obviously important name biggest weight in discretionary. I think its lost on a lot of people it hasnt made a new high in 330 trading days the longest its gone without a new high in 10 years its been dead money here. Its just hanging on vul nerably below now a flat 200day moving average. I think if you start to see this break the 1720 level traded at 1760 today below 1720 it reinforces the short case but what do we want to pair it against . I think we want to pair it against the competitor on the other side of the world, alibaba, the exact opposite picture much like in 2015 when in started to bom and turn up as cyclicality reemerged around the world. We are seeing a similar chart. I like the 150 oh and 200 are uppedward sloping i likes it a cyclical leader. This is the p and l if you are long baba short amazon to make sense ever this, alibaba underperformed the better part of the last two years. Thats started to change meaningfully over the last 12 months we think that continues into next year. The other pair i want to talk about very similar, another name, netflix, which has just not participated in this move this year. It peaked about a year ago made a lower high this summer. Still stuck below the 200day. Still down today on a risk on day. Net flex down today. What do we like it against i continue to like disney long s in a great pair against netflix. Its only a couple months ago disney broke out of the huge 5year base. We have good support right near near the 50 appear 200 any consolidates is an opportunity to get long here again if we pair these and think about what the p and l looks like this is long disney, short netflix. Again disney the underperformer the last several years that has started to change over the last number of months process i like disney long versus netflix i like baba long versus amazon. Good stuff, chris verrone. I plof what he is doing putting disney against netflix because the driver for disney breakout was disney plus love baba over amazon. Breaking out on the 2year consolidates as you pointed. 20place times in the eexaminers and 30 times in the cloud make cheaper than amazon. We talked about the parts earlier. On disney, look, forget disney plus the studio is just kinning to crush it frozen 22 did already over 1. 0 billion probably the sixth billiondollar franchise they got star wars coming. The gift that keeps on giving. Love that trade as well. Adding this on disney the charting was interesting for five years you could have sol disney at 120 it was a great sale every time until it broke out earlier this year. The point he makes if it goes back for the 130 breakout level you keep buying there because you might see a new range established there especially with the fundamental drivers that seem to be a tailwind for years to come. Good stuff guys chris interesting stuff. I know is bob ig sr. Watching he is happy. Fan of the show. He is call in well make an call in show. Big numbers from airbnb we tell what you it means for the home sharing company ahead and the market debut and Goldman Sachs making a bet down under at the land of wonder at least in america. The one food stock this they see blooming with even you can get that right get that right were back after this. We started a Nonprofit Community bank with a simple theory give people a fair deal and real economic power. Invest in the community, in businesses owned by women and people of color, in affordable housing. The difference between words and actions matters. Thats a lesson politicians in washington could use right now. Im tom steyer, and i approve this message. 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. [narrator] at Southern New Hampshire university were committed to making college more accessible by making it more affordable. Thats why were keeping our tuition the same for all online and campus programs through the year 2021. [woman] i knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look we can do this [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. Welcome back to fast money. Everybody. We are getting new numbers out of airbnb. Deedra bosa has them. Touting new tax and regulations stats. Closing out the year having collected a total of 2 billion in occupancy taxes and says it resolved the majority of Outstanding Litigation in u. S. Cities as the start upheads to an expected 2020 listing as regulatory skroutny blds its avoid the tax in some cities law legal action. It says it collects in three of every four listings. Now meanwhile Online Travel agencies like booking. Com, vrb oh and home away as they moved to home sharing its unclear if or how they handle occupancy taxes. We reached out to them but havent heard back finally, brian as you know airbnb says it was ebidta profit noble 2017 and 10u8 it has a leg up on the cash burning unicorns like uber and lyft. This is key to how they view its value. Deedra, thank you very much quick comment, anybody awaiting the airbnb ipo given the recent not successful ipos of others will they do it better. Maybe airbnb will be painted with a brush it doesnt deserve. The fact we get the tax numbers and backtrack into the Balance Sheet and more importantly the income statement and profitability. But going into 2020 you have a dynamic where some of the uni corn ipos have been so poor injury the expectations on pricing could be in the investor favor. The risk of airbnb is like uber you can have a city council says you are legal you have to live in theabling to rent out the unit if you want to be on Airbnb Airbnb is the largest city here in the United States guy, would you rent out your house. To who. You said. Im not renting it to you i offered you to stay as a guest. I didnt want to stay just stop in. Do that as well. Up next, the wall street food fight. Four big calls on four big restaurant stocks. The names coming up. First the cramer cam jim talking with the ceo of robinhood. Catch the full interview at the top of the hour on what else mad money. Live at the nasdaq back right after this. To leave your phone with a guy named flip. ding but its more than your phone, its your business, your customer data, your sales figures. And who can forget, those happy hour selfies . Not flip. honking, gasping this isnt working. Introducing samsung Business Security solutions, with knox software. With the galaxy note10, you can remotely wipe data or lock phones, so your business is secure even when your phone isnt. Samsung business solutions. 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. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. And save even more when you say bring my own phone into your voice remote. Thats simple, easy, awesome. Click, call or visit a store today. Welcome back to fast money. More breaking news on oracle about the c suite. Josh lipton, what do you got. On oracles Conference CallLarry Ellison making news here there are no plans for a second ceo at oracle. Ellison saying it was an unusual situation that hurd and cats katz team. They were focusing on strengthening the Management Team in place. Brian hurd passed away in october. A tough talented salesman. Somebody with strong relationship was the wig corporate customers. In many ways i would argue he was the face of the company. You know, i interviewed hurd a number of times on the network when there was news, time to lay out the Company Strategy it was hurd but ellison saying there is no plan for a second ceo. There we go thank you very much, josh. Lets move on to Goldman Sachs initiating coverage on a big buffet of restaurant stalks. Slapping sells on dardsen. While telling client buy brinker and only chili and tim swb seem whats your take on the restaurant calls would you own the bloomen onion. I do frequent the outback you get the frafty must go the bloomin onion is not something im taking down. Here is part of the call, casual dining and that segment is underperforming the quick serve. Can you make the argument that you see resurgence in a couple of brands. I think the entire space is overbought and the valuations dont make sense because the defensive. Any also own fleming and sta steak husshouse, the thesis of the call is delivery get people back because they arent going to restaurants as much as they used to it 2 in decline in traffic every quarter since 2019 every quarter ten years in a row. Looking at the quick serve the same benefit look at mcdonalds and for other places slapping the delivery on there. Pifrpg they cant compete with that. Fine, what about brinker and chicagoly. 15 to 24 since the summer valuation is reasonable at best cledta profits here. Thank you very much up next the final trades what i love most about being a scientist at 3m is that 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. It is time now for final trade on a thursday. Around the horn, tim seymour. Partridge in a pare tree. Disney i like it on fundamentals and restating. It kins. I like china which means i like baba paired against amazon. Alone or only paired against amazon. We like it every which way but loose. Nice job. Your turn, collide. Starbucks upgraded at jp morgan 25 peak to trough for the summer it works back up into the new year starbucks. The smh you jammed in midshow was genius nobody but myself caught it well done. Smdh. I will tell you eli lilly trading well brayen. Back to you. Got a little time to work with. Guy adami. Last night i jammed you up. Tount look at me. Guy adami thank you for watching fast money. Mad starts now 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. To put it in context, my job here, entertain, edge, teach, call me at 1800743cnbc or tweet me we hear they chinese