Amazon, intel and starbucks just three of the big names reporting in the last few moments and we have a full team covering all of that she is on deck to monitor the amazon call that starts in 30 minutes. Josh lipton in San Francisco listening to the intel call and suzanne lee back at headquaters on the starbucks call. Well check in with everyone at the hour well start with amazon. The last of the faang stocks to report earnings. Sinking after missing estimates by more than a buck. The stock is still up 36 this year so did amazon simply run too far too fast and do you buy the dip or is this the start of a bigger sell off . It would be disingenuous to say i saw this coming because i didnt across the board we were bullish on amazon and i remain so but the biggest story is not the epa miss, revenue beat, guidance for the next quarter, revenue is ahead of schedule. What disappointed me and disappointed the street though is operating margins came in about half of what the street is expecting. The story for the last couple of quarters has been margin improvement. This is clearly a couple of steps back that coupled with the fact that he had a big reversal on things that well talk about later now youre seth up for a google type situation where you see weakness in the name. They are an investment cycle. They spend money like drunken sailors. Sometimes the market says its okay sometimes the market says its not. Heres that situation right the stock ran about 10 or 12 in the last two weeks off of lows from earlier in the month so when you think about what is in the number here or whats in the stock as you have this, most people would be pretty happy with the fact that it was 11 of the total. Part of that was the fact that they missed their operating profit in that division by 85 million bucks which isnt a huge amount on a 1 billion number. 4. 1 billion in sales in that unit but what did we learn from microsoft last week . Theyre gaining some ground. So like this is going to be a more competitive thing aws grew 42 year over year. Was down sequentially and i was a significant deceleration and thats to be expected. They cut prices in may by 7 so we knew there was going to be margin pressure and if you look at aws, that to me has been the marginal difference where people have been able to say everyone know what is amazon is doing in retail and you can put evaluation on it somewhere in the cloud is where people have been giving them a pass so you talk about the cfos on the tape saying our video content will continue to increase sequentially. Ghoe theyre going to spend whatever they can to dominate this space. Prime to support prime and take it to this next level whether its 100 million or 200 million this company has to spend. Its on sale for 33 less than before. Do you buy it here no, the stock is up 40 year to date. To dans point it ran up along with Everything Else the 50 day moving average, 994 i dont think theres a rush in to buy this stock. They didnt want to turn them on right now its a cycle right now. All of these faangs ran up into the print facebook did. Alphabet did and alphabet sold off so was it netflix after the print it was up 10 so theres things you doubt and things you dont doubt amazon is in the doubting camp is it still bright ahead yes. Do you agree to wait . You have to digest a little bit. We had two massive announcements. 14 billion bid for a bricks and mortar super market. They did a deal with nike thats going to be a blockbuster thing. How many echo devices did they sell im not a bull on this story im a bull on the story but not a bull on the stock. Thats important to remember everything theyre doing on the strategic front is great for us as consumers they probably have 80 Million Consumers in the u. S. That are prime customers and sold more voice devices. Theyre going to put that in front of you before google does or am does. Do you feel like you missed amazon, its up 40 but its a 1 t 1,000 stock its 155 name thats the way you play this. What does that have to do with it . For me i can buy more and when its up 75 its a big difference versus up 39 . I love alibaba and if im looking for relative growth thats it. I dont think amazons issue is the dollar price in the stock. No, right now one is up 39 one is up 75 and if you think india is going to be a great story for amazon, china is the growth story for alibaba and amazon isnt going to have an easy time in china. The two things that dan is pointing out, hes not necessarily in love with the stock valuation. Think about what happened in transports and about what happened in retail we have a markets conversation coming up but dont think that a lot of great news, the transportation sector, ups and fed ex are sweating over amazon as being the next essentially predator we saw that Retail Stocks are up 7 off of the lows that were hit on prime day how much good news can you bake into one stock. From a valuation standpoint that you bring up, in our lifetimes, is amazon going to have a valuation that makes everyone comfortable probably not when is the valuation going to get to a point where everybody bias the stock and doesnt mention the valuation . Its going to be tough and relative value in the space theres other places to go but guy said this, it would be disingenuous to say we have been pushing back on amazon have to say, 300 ago i thought it was too expensive but a lot has happened in the Business Model and a lot has happened in the space. We know amazon is in the drivers seat. I just felt, i have been bullish but the only reason why i backed off lately is because i dont think he has a reason to turn on the spiggot right now. Its done the work for him right now, no reason to beat the drum again. He doesnt care either. Its up to wall street to get on his page hes not going to get on their page. Oh he cares when this stock doesnt perform and he thinks everyone is betting against it he does something to work on the earnings he pulls back on investing and investment cyclel and shows eps. As big a story as earnings, the trading activity during the intraday was as equally big a story, in my opinion just to drill down here, amazon traded over 10 million shares today. Typically trades about 3 made an all time high today. Had a huge reversal on the back of your show that well talk about at noon. Youll have armchair technicians which i fancy myself to be talk about the potential for an island reversal and all kinds of things so steves level of 994 is not that far away quite frankly. Ill give you the whole couch. Think about facebook, they had great numbers. Maybe amazons numbers arent as good but yesterdays was going to give facebook the benefit of the doubt. For all things amazon, gene mon munster joins us as we wait for the talk there is the phone and gene. One metric that i dont remember you talking about was 27 . Thats up from 24 last quarter. So let me put this into perspective. A leader in market share ecommerce theyre accelerating their growth and theyre accelerating the pace of their market share this is a trifecta of a lot of good things happening. Its a concern that theyll continue to spend like drunken sailers. I think theyre sending like a company that wants to take over a lot of industries. There are three industries that amazon is going after that are secular growth ecommerce is 10 of the bottom line today cloud 15 of business is done in the cloud and if you think about video content, 10 of video spending is done online verses the air so this is not a valuation type of a company. Im very encouraged by these results. Going to be tuned into what theyre going to say obviously on the call but theres a lot to be positive here. Why is the stock down 34 now . Because operating guidance for the September Quarter was for loss of 350 million in operating income an the students at a positive 930 and thats fears of investors they had back in 2014 when they went into an investment cycle and the stock was down 25 in a year thats why the stock is down it had a run plus you start stoking the fierce and at the end of the day if theyre spending and the spending is resulting in a lot of positive things in the business. The risking know is that people will now start to rethink faang as a group as others look at the faangs as a group and the run they had why not do what traders have said and wait. If you think the space itself is going to have a little bit of a come down why not wait i think youre getting cute fluctuates in the market might cause that but goi back to the three areas theyre disrupting theyre disrupting that at an accelerating pace. I like to think about big changes that will come and amazon has three positions within that. You talked about whats going to happen in the Third Quarter explain to me if you can why were operating margins 1. 7 when the street is closer to 3 . Well spending result youed in hr unit growth. The exact details, theyll probably give to us on the call. Could be from lead generation and advertising prime, buying more content for prime its hard to see exactly what drove that but again gi go back to the ecommerce piece. Thats rock solid. Well below what microsofts business grew at but thats a quarter of the size. Well get more details on the call. Well see you back in a little bit grab the phone and well jump back to you as needed. Does he sway you im the least bullish on the stock for awhile but let me tell you one thing have not mentioned for 2017, the stock evaluation is a listen not to own it. You asked will it ever grow into that valuation and it may never it may be a very special stock for a long time. The most important point is that they are spending to grab units. Theyre trying to grab more mind share from their consumers and everything they can to do it and he also said that only 10 of total retail sales were online when you think about it these guys are grabbing half of 1 of every two of growth growing online we have a 5. 2 trillion in the u. S. This story has legs so youre going to look back and say were spending a lot in q2, 2017. That makes perfect sense to me in facebook, in google was so euphoric that you couldnt find anybody that wanted to sell him and thats one of the reasons why you see some some disectionf all of the stocks. If you saw that reversal on amazon and reversal on facebook if you look at a chart during the same period of time it was inverse relationship you need to see faang week lets see if it lasts longer than a day. Coming up, check out intel jum jumping after hours. The latest details next. Plus, there he is now, the man that moves markets. Moving himself. Hell be here to talk about his note that had all of wall street talking today just a moment. And twitter getting crushed today after the company one of the traders bought the stock this morning eyll tell you who it is and why thre banking on a turn around y playing air guitar. The babys room wont build itself. And her paw wont heal on its own. Were all working forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. Even if its chasing squirrels, whats going on here . Um. Im babysitting. Thatll be 50 bucks. You said 30. Yeah, well it was 30 before my fees, like the pizzaordering fee and the dogsitting fee. And the rummage through your closet fee. Who is she, verizon . Are those my heels . Yeah yeah, were the same size. In shoes. With tmobile taxes and fees are already included, so you get four lines of unlimited for just 40 bucks each. The price we say is the price you pay. An outstanding quarter here with the Data Center Group up 9 to 4. 4 billion. Strong demand from the cloud giants the service providers. Enterprise weaker down 11 reaffirmed that forecast he gave for the business unit. Chips for pc up better than expected he said intel keeps driving the evolution of the pc experience several months earlier than expected now going to be a leader in that 70 billion autonomous driving market intel sees competition out there but we are ready for it. Scott back to you. Thank you so stock, you know. I like it i like it, i like it this stock is down underperforming the most important piece of news that i got is that this is going to close early. The other piece of news is that the internet of things group was up 26 year over year. That was a 17 billion deal. They did two years ago we talked about it so these guys are not going to miss the next seeing seeingel cycle. I respect it. Trade is 12 times earnings what do you not like about it the presumption that these guys because they made a couple of acquisitions is going to make up for the past where they missed the boat. I like intel and im long the stock and i appreciate your approach which is i think theyll be in the places they need to be do you . I do. Do you . Ultimately you are giving them the benefit of the doubt in an area that they dont deserve it and data senter is the one exciting part of their growth model. Over 30 plus and theyll continue to grow that. Internet of things is a cool area but theyre not there so if you think about where the cutting edge chips and companies we talk about all the time on the show. Its the first inning of the game if youre a met fan you can argue the season is over i look at the valuation relative to where the stock has been. This say much more sensible longterm investment but a lot of faith being put in them being able to compete on the high level. 38 was the level back in the end of 2014 youre betting theres going to be Earnings Growth they havent seen over the last two years but until you start seeing measurable eps growth its dead in the water here at 36 thats the worst session in more than a year. Ups down 4 on its outlook fed ex as well southwest air lines down 15 off earnings united down 3. Whats going on . You havent seen a rosy picture out of these guys. How do you know i wasnt watching. Ill bet you whatever you have in your pocket you werent watching. I might have been hosting. The transports were in trouble he turned out to be white. Ill say this, now getting back to that 160 level we talked about for quite sometime thats your line in the sand in terms of the transports. Bottom line here is the airlines if you look at the valuations they reported two weeks ago. Theyre a much more disciplined play the transports do have trouble here youre buying airlines on weakness as i have. Still ahead, amazon sinking after hours. Were going to hear the latest about what they say the street is missing about the report. First in business worldwide. In the meantime heres what else is coming up on fast it looks like nothing can stop this market but a top strategist says theres one thing keeping him up at night. Hell be here to explain plus. Where did everybody go . Thats what twitter shareholders are wondering after a quarter with zero user growth but one trader says the stock is a reing scambuy despite the sell off. Much more fast money after the break. Where to get in. Where to get out. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Following the earnings report. We have full coverage of the stocks the Conference Call is about to get underway any minute. Susan lee back at hq listening in on starbucks well bring you the headlines. Better moving those stocks later on in the show but first we start with narcotics opening day at record highs before a big midday reversal lets get to bob for those details. Theres not a lot of interest in bidding up the market in these prices they can cascade into larger drops. It always starts with the lee leaders. This time it moved into faang stocks like apple and then bio tech names like celgene for example. Then secondary leadership like materials that could have done well this month. Moving on is the relative strength index it charged the momentum of an index or stock for a short period of time thats a scale of 1 to 100 so a reading above 70 is considered overbought and oversold. At the open the nasdaq composite. I have never seen this reading in 20 years on a major index 99. 3 out of 100. Im not sure if thats a historic high but a reading of 99. 3 is absurdly overbought. And in the past they usually turn back. Im not trying to turn anybody into a Technical Analyst im well aware a t lot of our viewers have the looking at Technical Analysis but the markets have gone nowhere but straight up for nearly three weeks and in this Case Technical talk is a very useful way to illustrate you. Well a man that moves markets strikes again as some investors say his note is partly what spooked investors. Jp morgans global head of quantitative strategies. Joins us now good to see you again. He comments on that about the time the note comes out as well. Questioning the same thing whether people are too complacent or volatility is too low and its going to end badly as a result. We should note today around 12 30 and basically it will most likely put in lows now this morning we think it poses a risk to markets and why the risk is there, because theres a number of strategies and determine how much it is and therapy. But they have a lot of things in common which is basically that they rely on their ability to sell the market and cut the loss on time. That order becomes bigger. Its the biggest loss. And also the strike gets closer and closer to markets. And fundamentals are healthy when you look at earnings season right now we forecast 132 dollars. Thats up from last year and we have to say basically that global is better and 4 only last month so thats a boost to earnings and theres finally this promise of potential tax reform so one side fundamentals are healthy. And i talked about volatility. Why volatility is risky and why its at a turning point right now. The second one is Central Banks and Central Banks basically theres a Balance Sheet and size of the Balance Sheet which is right now at a record level and its about to get smaller. I want to go into this issue of volatility or lack there of and i want you to listen to what robert told us at noon today volatility was pretty low. Its surprising to many people what triggered that crash and its nothing the crash kind of triggered itself. To be clear hes not saying that were on the precipice of another 29 style crash but his point doesnt sound all that far away from the types of things that youre worried about. Its basically the same point. I mentioned a number of these strategies that have this, i call it 1987 type feature. Volatility gets low and they all get levered and something triggers it and volatility starts going higher and its hard to stop if you look at the cycles of volatility in 93 or 94 and 2001 overnight the european, basically works hand in hand with draghi. We dont see inflation and we should get moving faster this goes back to three weeks ago. That to me is what drives off. Absolutely. Thats why were saying, market did sell off today but this is thing of today this is probably something that gets triggered by one of the Central Banks. We have ecb in september so september 20th, 21st and september 7th. We also have a seasonal 8 you. Were thinking about what sectors will be the Leadership Group attend of the year whats your thought on where you should be investing in the market so we like financials and health care and energy those are our sectors and our underweight sectors are Consumer Staples and Consumer Discretionary and the rational behind that is that we are likely to stay in this growth where value may keep on outperforming sort of financials and still have a number of good things going, working in their favor and sort of more expensive names like samtaples, low volatility stocks or high quality stocks. Whats the conviction on energy its, you know, its a bit of a contrarian now speculators are short. Dollar had weakened quite a bit. It doesnt its not reflected now. Thank you for being here. Yeah, the other side of that coin is at an all time high. They dont buy them for protection but to correct premium. Thats dangerous and i dont think you can answer it either when or how that ends. Im guess a lot of folks look at their screens and saw that spike and said im not doing anything and actually that was of course the right thing to do because every time we had one of these, june 9th. What did you do on that day . If you did anything with you your disappointed. His 40 page memo had a lot of people talk. His whole point was better to be early than too late id rather have the risk of missing out on some of the gains that could be left and there could be a bunch of gains left and be too late when its too late to get out. Thats compounded by the fact that theres a lot of people that did miss. Theres a lot of money piling into the market now that has miss which had will exacerbate the things they have done a good job. Bottom line is financials are going to be best defended if the Central Banks are moving. Twitter tanking 14 today after the Company Report 0 user growth last quarter but dan nathan says now could be the time to buy. Hes going to tell us what has him so bullish plus, amazon and starbucks are on the move in the after hours well hear from the top executives at both of ose th companies and whats driving the stocks tonight much more fast money straight ahead. [car tires screech] [bell rings] initially is up 5 and now were down 4 in global sales comparisons missing again in the quarter. Concern about the Global Retail environment and thats why starbucks and its ceo are expressing concern for the rest of the year. In the quarters ahead, todays challenging retail and consumer environments compounded by head winds related to the retail disruption underway has us taking a slightly more cautious view as we enter q4. With a more cautious tone starbucks is shedding assets that includes closures of all 379 stores remember starbucks bought it back in 2012 for 620 million. Now there was a bright spot in this report card china sales higher than anticipated in the quarter they bought the other half of the china joint venture today. Largest spend in the history starbucks is building 500 store ace year in the country. Mobile has been a headache for starbucks or at least in the first two quarters serve as bottlenecks in the back end failing to keep up with mobile orders payments increasing to 30 of all transactions both gaining from the previous quarter. Thank you so much what do you make of this stock initially pops like 3 and then it goes into the tank on the cautious comments from the executives. Cautious comments, people look at comps. U. S. Comps are 5 . Overall comps missed, the street was looking for a certain number i saw they missed by almost 1 so overall comps were a miss and then couple that with the fact that people are starting to look at starbucks valuation wise and say maybe it doesnt deserve the premium valuation its gotten. On top of that 64. 5 going back from the all time high in 2015 and maybe its topped out in the shortterm and we had this discussion i think it holds 54. 5 which is the low last year. We have seen this with starbucks so many times and its an opportunity to buy the stock. Well go with china. 1,300 stores and theyre partnering up. They have shed this unit that doesnt make any sense bottom line is if you think about what is going on with mcdonalds and the rest of the fast food space, bigger getting bigger scale means something. This is a joke thats not a big deal. Thats not something that they cant overcome. Doesnt this suggest though valuation has been there for a long time. The u. S. Comps at 5 the mobile payments 30 of all transactions opportunity that suggest they have kind of figured out mobile after all of the headaches they had. Theyre smoother and their online and Royalty Program has a lot more value than people are giving it credit for and if you want to trade any of these guys at a premium starbucks deserves a significant premium because of the multiple channels they operate in. You can argue every time you bet against it and see the stock sell off it does rally back but id rather put more focus on technicals you could make the case that this is a head and shoulders pattern or triangle of death this to me looks like it wants to break down. The ceo will be on tomorrow morning, the new ceo that will be an interesting interview to hear his tone with the Technology Issue mobile payments being able to execute which i know jim cramer is going to put his feet to the fire on has been the most significant issue. This guys is an operations guru thats how he made his mark. Hes responsible for the International Growth when i hear them talking about disruption in the consumer space, frankly i find that puzzling because i think these guys dominate a space thats not really i think we all agree that these guys are first movers in using technology to streamline orgd a ordering and it goes back to that conversation with amazon. Do you buy it here down 5 from the highs. This is a story. They just guided down. They just told you that things are taking longer to make this transition the stock was at 64 a month ago and now its at 57 and the low for march was 54 its just a rush to pay 28 times for Something Like this. Get a story like this where you an intermediate to longer term and get it coming toward you rather than bidding it up like people were coming in may. Tomorrow morning, 9 00 a. M. On squawk on the street t starbucks Ceo Kevin Johnson will be with the gang in the morning to give him reaction to the quarter. Twitter is tanking today poegs its worst session in nearly a year now is the time to buy the stock. Hes going to tell us why. Plus amazon is sinking more than 2 following its own earnings miss the Conference Call underway as we speak fast money friend gene munster has the red phone in hand. There he is. There is the phone he ge lliv his thoughts and why hes buying the dip. More fast money right after this your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. [music playing] across the country, we walk. Carrying flowers that signify why we want to end alzheimers disease. But what if, one day, there was a white flower for alzheimers first survivor . What if there were millions of them . Join us for the Alzheimers Association walk to end alzheimers. Register today at alz. Org walk. Rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. Twitter is having its worst day in nearly a year that stock tanking more than 14 after reporting 0, thats right, 0 new monthly users in its Second Quarter but dan you actually bought twitter today. Yeah. I actually got a little inspiration from the star of your program the Halftime Report the reformed broker. The stock is down 10 and im looking at this list on twitter hes using and he listed all the things the company could start charging for i use this thing, im not an active tweeter but i use it. This company is starting to get their act together and thinking about the fact that theyre not going to be growing users but theyre going to figure out how to squeeze dollars out of the users rather than through advertisers using users as the product but coming back to their power users. When you think about this last year and the political cycle we have been in the way entertainers and sports people use this medium theres things they could charge for thats going to play itself out over the year. And then the maus but when you see twitter, when you chart twitter, besides today, the demise of twitter and you look at snap, it comes out of one and goes into another. If you see snap under the gun, everyone is worried about head winds, everyone is worried about instagram. Its not going to come off of snap and go into twitter its going to come off of snap and go into facebook. All of them. Do you think its going to go into twitter look at that chart it went some place. It got back up to 20 bucks because people thought there would be m a again. Its not the guys buying facebook. The stock is down 23 in three days and you have it tested over and over again. Im not saying pound the table and go into full position i bought some at 17. I have an order for the same amount. Have the same amount at 15. I think youre right theres a lot of valuation dan are you talking about these guys monetizing by actually in some type of a subscription way or are you talking about advertising . Thats what everyone else is doi doing. I was sit in bed and it was like all of a sudden i saw live video streaming from, you know, Financial News network and then a tab right next to it said live market commentary and its starting to verticalize the tweets theyre not making a lot of noise about it. Thats so obvious right facebook was up 3 . Gained 15 billion in market cap. Twitters enterprise value is 10 billion so if you get the stock back toward the mid teens where you think it bottoms out you have a 7 or 8 billion enterprise Value Company and i think is a very very scarce social property. Theres other uses for it other than just being social network. Im long the stock and i didnt need to hear about that time early in the morning. May i make a quick point. How do you know it wasnt late at night. It was late at night. I dare say on the quarter they reported this morning the stock would have been up 5 and not down the amount it moved today. I would actually sell, i would sell down side puts and buy upside calls and do it for even money worst Case Scenario you sold the december 15 put and use the proceeds to buy a call, worst case you get active 15. What else can i do for you. Tomorrow, 5 30. Explain intel again. No, a segment here. Lets talk snap. Tomorrow is the last day to trade snap the Options Market is a pretty big move dan, beat it. Heres the deal. This company has two events over the next two weeks. Option trader is going to be focused on this. If you look out to this lockup expiration who knows if investors sell the stock its obviously down from 29 it closed below 14 today. The Options Market is pricing between now and next fridays close. Thats going to incorporate the volatility around the lockup and then august 10th thats the Second Quarter as a publicly trade company this could go the other way next week if investors choose not to sell. All right full show tomorrow at 5 30 p. M. Eastern time more news on starbucks coming up after hours and susan lee has that back in the newsroom. The Revenue Growth will come in at the low end of a previous range of 8 to 10 and when it comes attorneyin comes into profits thats below the 58 cent estimate that analysts were looking for. Back to you. Even more reason why you have to check out that interview tomorrow morning still ahead amazon sinking after hours following its own earnings miss. Were going to bring you the comments right after this. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. I was trying to listen to the last minute. Theres lots to get to on the Earnings Call but questions on amazons guidance going into the Third Quarter and what the whole Foods Acquisition means for the Bigger Picture heres what the cfo said about their grocery strategy. Were experimenting with a number of the formats from fiscal pick up points on amazon go to online ordering and delivery to your door through prime mail and amazon fresh and well see how customers respond. We like the response we have seen so far. We think all of those are valuable services. Now he ended by saying they were excited to add whole foods to their grocery offerings and as i was getting on tv he started to talk about cloud as well some concerns around the operating margins and its decelerating and when you compare that to microsofts last quarter, nearly 100 growth some analysts are suggesting a better position and big corporate customers but scott as you said amazon still spends like drunk sailors. That was no different this quarter. Thank you so much for the update there lets go back to gene munster. What is your take away thus far from what you heard on the phone . Well, more good than bad from the call 6 of the 8 questions had something to do with earnings. These are multitiered questions. Analysts are keying in on the earnings piece the good piece is that the guidance in september was negatively impacted by then expanding their ability to fulfill by 30 so investors can rest easy that this is not some structural change in terms of the pace of how amazon is investing. I would throw one small caveat on that. Whole foods is not in the guidance its probably going to be an investment phase around whole foods so analysts need to start to take that into consideration but the net of this they did a good job of explaining why the margins came down. So you give the quarter what grade then i give it an a minus and the reason is that the unit growth accelerating aws in line with with last quarter and lastly is that the areas that theyre spending in makes perfect sense that theyre spending to build out content and fulfillment and thats the right thing for the longterm. Thanks for getting on the call and bringing us the headlines as well. Lets bring all of this back whats the need to rush into a stock thats performed so aggressively well. Its not a structural change how does he know that just yet fulfillment, whole foods, i dont think we have the answers. Maybe people are questioning whats the need to rush out of it whats the need to rush out of it its up 40 the stock earlier in the month was at 950 in june it was 950 the stock was up 14 and can we take it easy on drunk sailors. These guys that was the theme of the show. I think its going to light up if you think about amazon international, india, content is weighing on the stock and at times they care about this and at times they dont. Right now theyre investing in their business we spent all of this time while they try to take over whole foods and everything thinking about the other industries theyre going to dominate. Their core business isnt going to be as high margin as it was last quarter. These concerns about as youre with microsoft, aws, amazon, real competition fierce the cloud space will be commoditized at some point it will be ill say this real quick i gave google or alphabet a a i give this a b plus so you can see that 950 that dan just flagged. An interesting session tomorrow to say the least given the Bigger Picture sessions. Thanks for joining us scott. Been a pleasure. You can catch fast money again 5 00 p. M. 5 00 p. M. Eastern tomorrow options action right after that 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. 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 educate you, but teach you. Call me, or tweet me jimcramer. Look, it happens stocks rally too far, we get a reversal the market starts hating everythingt ve