Transcripts For CNBC Fast Money 20170808

Later, is there a big target on big tech . Google is the latest tech company to get caught up in a political firestorm. Jim vandehei says the drama is just Getting Started first, we start out with the big story. Disney announcing it will pull all of its movies from netflix to start its own streaming service. The news taking down both those stocks julia borstein is at disney headquarters julia. Well, that is just part of the story. Bob eooiger announcing what he called a strategic shift announcing another 42 stake in bam tech he announced theyre going to launch a new espnbranded Live Streaming Subscription Service that will launch early next year saying it will have 10,000 live sporting events. This move capitalizes on a few trends that weve seen the sports side, first of all, live sports continue to be very, very popular 94 out of the top 100 tv shows in 2016 in the United States were sporting events for instance secondly, the espn brand is still very strong. And, third, we have seen a fairly significant increase in appbased Media Consumption on services that are over the top or direct to Consumer Services so we felt that it was time for us to take a bigger step in that direction. Netflix shares declining as eiger announced in 2019 disney will pull its movies from netflix and launch its own direct to consumer disney Branded Service, saying theyll make a, quote, significant investment in original shows and movies for this new service. We had a deal that gave us the option to move our films from the netflix platform to somewhere else starting with the calendar year 2019 slate thats what were doing. So were creating a disney Branded Service that will have those movies on them, on it, and if you look at the 2019 slate, it includes frozen 2, toy story 4, and a live action remake of lion king. So its an incredible slate. Now, we reached out to netflix to see if they had any comment. They responded saying u. S. Netflix members will have access to disney films on the service through the end of 2019 including all new films that are shown theatrically thank yrough end of 2018 so making sure people dont panic about their Netflix Subscription no word on how disneys new Subscription Service will cost iger says todays announcement represents an entirely new growth strategy. You asked specifically about the marvel relationship. Do you know when that ends as well because he made it clear he would not pull the shows but perhaps the agreement ends, coincidentally, in 2019 when they launch the service. Well, they have no plans to include marvel into this service. This service is really designed to be disney and pixar branded its for families. And its really about those two strong brands. He did say its possible that eventually down the line they could potentially create another marvel Branded Service but for now, theyre maintaining their relationship with marvel they are contractually locked into that relationship with marvel because they are creating new shows for netflix that are those marvel shows for netflix so for now, no changes to those marvel shows, but well see what happens. Part of it may hinge on how well this new streaming Service Works thats disney branded. Just to be clear, we have no guidance, yet, right, that democrats come on the call . Disney doesnt give specific guidance they give general guidance what we knew is disney has said fiscal 2017 is going to be a Slower Growth year and stronger growth was going to return in fiscal 2018. That of course starts with a december quarter, which is when the next star wars comes out we havent heard any changes to that so far, but well be listening and let you know if anything happens. Julia, thank you. Julia borsten out at disney headquarters whats your take on why the stock is down on this news heres the thing. At some point estimates have been coming down all year long for disney and i think expectations werent particularly high. I think the fact of this strategic relationship coming up down is giving investors pause they know netflix has been their primary Distribution Channel ill just mention this she just said this is that next year, fiscal 2018, theyre supposed to see a significant bump in earnings and in sales eps growth is supposed to be double digits, again, for the first time in a couple years sales growth from 1 to 6 stock trading about 16 times next years expectations to me you have a level here, the stocks trading at 103 in the aftermarket. The stocks even cheaper if you believe in 2018, you believe in what theyre doing strategic, the stock is probably as cheap as its been in years in 2015, this stock was trading 22 times earnings. Well, they were in a different place though it probably should be trading that multiple. But i think what this deal tells me is just how predatory the environments going to get it makes you think about what goes on in the telco space if you talk about the commoditized portion of delivering services. If disney steps into the fray with their brand portfolios never been better. Lets be clear, i think disney, 17, 17 1 2 times 2018 is the best of the breed with the most insulation and what they announced today to me, its not great for the sector because it speaks volumes but for these guys, it means i think theyre kind of in charge. If disneys willing to hive off its properties, right, its Marquee Properties and marquee content and offer direct consumer in its own bundle, could others do the same of course they will you could totally go around netflix or around their distributor and saying im going direct to consumer too with my marquee content and marquee brand. I dont know how much room there is for so many acts or so many, you know, i dont know how maybe thats what they said about cable before there were 200 cable channels. How many of them ended up being not worth anything true. I applaud disney for making aggressive moves, thats great however, the landscape is really shifting i dont see the end of that right now. These are tectonic shifts its good company and good for them for doing what they have to do but i would wait it out. Disneys announcement is an acknowledge ment of how well netflix is going i make the argument netflix can go higher. I understand it wont but you can make that argument disneys now trading at about 15 1 2 times next years earnings their Media Business and their studio. The studio as well. Yes. The Media Business continues to decline so what is the right multiple for an industry granted, they should have a premier multiple whats the right multiple for a Media Business in decline . I dont think its 15 1 2. You can make an argument its closer to 14. What does it tell you both stocks are going down . Not that things are necessary binary in stock market land, oftentimes they are disney comes out with a big announcement direct to consumer streaming bundle the stock goes down. Netflix also goes down it means theyre going to spend more its bad for everybody be we see a lot of companies in growth phases where theyre spending. Investors dont like spending not at first. At this point, if theres tectonic shifts, you want to be the one forcing that shift at this point, they rode the wave of netflix as they went from zero to 100 million subs. Now theyre saying you mentioned parks, studios they want to control the relationship with their customer on all these Different Levels because they know now they have the most intimate way to actually communicate or to deliver content to their customers and thats through mobile cell phones, however app centered world i dont think its bad but to your point, 57 channels and nothing on when was that song written 20 years ago now we have 300. A lot of them bad. Look at a e, look at discovery. Pushing forward, making these shifts possible for all intents and purposes. In terms of disney owning that relationship. Imagine the data they will also have, be privy too now they will know very intimately the habits, when its consumed, how long its consumed Consumer Products their Consumer Products division loves this. Again, theyre the most diversified player theyre a Media Company but theyre an entertainment company. Theyre a Consumer Products company. And i just think this speaks to youre right, theyre going to spend more money. Suddenly, like, hey, were going to develop new content disneys been developing new content on their own forever it makes you think its going to get into a place where you start to have four or five guys that are a choice for people to throw down on the Subscription Service. I think it starts to speak to the environment. For more on disney earnings, were bringing in James Stewart, a New York Times columnist and author of the fabulous disney war. And now who knows, his next book could be called streaming war. At this point. Whats your take on whats going on i think first of all this netflix decision is a huge strategic move for them. When iger said strategic shift, he was understating it all the years, decades, ive watched disney, they said over and over again content is king we are platform agnostic we will let our content go to the highest bidder suddenly, they are turning their back on that, saying were going to create our own platform that is huge now, why is the stock down i think, you know, theyre going to lose some revenue by cutting off netflix. Theres going to be a period they dont have a builtin, you know, Global Subscriber base this is a gamble i understand it. In a way, i think its bold, its decisive. Its the only real path for growth even if it does work, theres going to be a time where revenues goes down, investment goes up, before the growth if they can pull that often with the next fiscal year, id be shocked. Maybe. You have to take a longer term view on that. What does it mean for netflix . Is this a signal others will follow in disneys foot steps . Good question i mean, disney has the strongest brands if anybody look, theyve got the disney brand, theyve got pixar, theyve got espn. If anybody can go direct to consumer with their own platform, they can do it i dont know how many others have even the luxury of that option not a whole lot come to mind in my view. For netflix, i mean, netflix is a must, you know, have app without disney i think the decline there is a little exaggerated i think your point earlier, like how many of these blocks do you want to see when you turn on your tv. Like what do we get now, eight, nine, ten . Again, is it going to be 100 i dont think Consumers Want that i dont think theyre going to pay for that independently but for disney, the problem so i think netflix will be fine probably theyre way out ahead on this. Theyre doing fabulous creating their own content. Disney will now be in head to head competition with them theyre not going to be partners anymore. That is going to be a war. So let me go back to something you said earlier, so if you were in disneys shoes and you were trying to navigate these changing waters, are you saying you would do exactly what theyre doing . I probably would. I like to think i might have done it a little sooner. Before the early movers had gotten quite so far ahead. You know, thats water under the bridge its easy with benefit of hindsight. Ive been saying this for some time i still think it disney is a huge company it is doing great. Again, the theme parks are great. The movie studio is better than anybody ever could imagine how do you dobetter . How do you grow . And then youve got this giant Cable Network thing. It is shrinking, shrinking, shrinking. And the Cable Companies who were your great partners have basically turned their back on you because theyre letting people get skinny bundles and theyre cutting the cord so that isnt going to grow if you dont do something dramatic. I dont see any alternative to what theyre doing here. Were going to leave it there. Thanks so much for coming by always great to get your analysis James Stewart of the New York Times. We should note that disney shares in the afterhour session, lows right now ill bring it back to netflix. At one point you said disney buys netflix. Ive said it a number of times. Now what . Off the table . I guess this yes, i would imagine its off the table because i actually think listen, i understand its a pipe dream. I also think what this means now, bob iger now stays through 2019 potentially into 2020 if you think about it is actually a positive for disney as well. I was going to say, what jim just said is he would have liked to have seen them make this shift earlier. Remember when tom stagsleft an it was a debate about who would take over . Because this is what he wants to do this is his legacy, his positioning this company he already made the marvel, the pixar and lucas films, right theyve got espn is maybe turning a corner we know whats going on with the parks. Lets fix distribution im going to put this to you right now, right here. Whoa, whoa. Would you rather disney or netflix, fresh money today disney in a heartbeat and i will probably be doing it tomorrow morning somewhere between 100 and 103. All day long, i totally agree. Disneys Free Cash Flow positive right here doing great on all cylinders nobody else can come to market with their own offering like these guys i dont see anyone who has this musthave content. Disney all day long on val cation ive been negative on netflix and wrong so this is more of a reason to say id double down. Would you buy disney on this dip . Over netflix, absolutely. So many of their cylinders are hitting. The big one obviously isnt. But its a great company. Now theyre in netflix arena and netflix has proven they can do this better disney has to prove themselves in the arena theyre about to get into over the next 18 months were assuming this is going to work but netflix is trying to play in disneys arena. Netflix is going to content. Thats where i have a problem. So so . The answer is i think disney trades several hundred i think netflix will bounce from the selloff weve seen right now. Coming up, well have much more on the disney bombshell pulling its movies from netflix sending both stocks lower in the afterhours session. Plus, it is the two words from President Trump that took down the market today. Fire and fury. How serious a threat is north korea to the rally and later, a retail resurgence a number of beaten down retailers soaring. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. 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You get up to 5 lines of talk and text at no extra cost. [ laughing ] so all you pay for is data. See how much you can save. Choose by the gig or unlimited. Call or go to xfinitymobile. Com introducing Xfinity Mobile. A new kind of network designed to save you money. Words from President Trump that spooked the markets today, fire and fury. It was an unmistakable new warning from the president as he was about to start a briefing with top advisers on the opoid crisis in this country but it comes after a weekend where new sanctions were adopted. Secretary tillerson eerson atte diplomacy with north korea and today reports of advanced Nuclear Capabilities from the country. Heres what the president said could happen next. North korea best not make any more threats to the United States they will be met with fire and fury like the world has never seen. He has been very threatening beyond a normal statement. And as i said, they will be met with fire, fury and, frankly, power. The likes of which this world has never seen before. Those comments were seen as far from a deescalation of the current back and forth between the two countries. Some recent threats, developments in this situation, include the north Korean Foreign minister yesterday saying the Nuclear Program in north korea exists solely because of threats posed by the u. S and then today, the Washington Post reported that now north korea can make a Nuclear Warhead small enough to fit inside a missile. Thats significantly upping the ante of a potential ability of north korea to reach large cities in the mainland United States at a briefing here down the road in bridgewater, new jersey, kellyanne conway, the senior counselor to the president , only called the comments by the president strong and obvious and declined to comment further about exactly what he meant or exactly where the u. S. strategy could go from here, melissa. All right, kala, thank you, outside the president s bed minister golf resort so we saw the markets react clearly. What was interesting is we saw a much greater, it was a swing in the markets that was very tight range. There wasnt a bid for treasuries necessarily or the dollar. So what happened . At a time when markets are at alltime highs and you pick your asset class because its not like you want to own treasuries here i think you have a dynamic where, you know, the vix and volatility got so low, weve been having these moves in the market especially during summer volumes. Its not a surprise to see this kind of spike. What do you do with this kind of rhetoric i dont think you do anything. I think its a lot of bluster. And i think it would be crazy to escalate something based upon the bluster from, you know, the fat kid in north korea i just dont i mean, its one thing to have a lot of threats that are made. This isnt bluster from the president of the United States, not just north korea no, i understand that serious bluster and lets face it, when people have thought about some of the concerns of this administration, it was that there was on the Foreign Policy side potential for impetuous responses that werent well thought out. Thats not going to happen here. North koreas been an agitator for a long time. Theyre not in a position to do what they claim. But, listen, this is politics i think that we saw today over policy which is really kind of scary in a way when you think about any sort of preemptive anything that we would do and hes threatened military action you know, so korea is 35 miles away from the dmz. Theres really nothing that can go on here other than diplomacy at this point. So for our president to speak the way this authoritarian Leader Speaks is really not very constructive so when you bring it back to the markets, you know, no regulative agenda, all this stuff that hasnt mattered. Markets have kept on going the economys doing okay it seems like the global economys doing okay theres one thing that could kind of mess this whole thing up, i suspect, is some sort of dustup on the Korean Peninsula a game of chicken between these two guys i dont think is pretty conducive. Or not u. S. And north korea but u. S. And china in relationship to north korea which could be a much bigger impact to the markets. You bought insurance not too long ago not too long ago. Way, way, way out of the money. How much to the downside . 20 you know, cataclysmictype insurance. You got to wonder actually would it even be solvent because who knows what would happen in that scenario. I agree with tim, i dont really want to trade around the rhetoric today it does scare me i dont like to hear it at all but im not going to trade around it. But i do want to own protection in case this comes with a market thats really had nothing to worry about. So i mean these have not been things to trade until they are you know, i agree, dan, politics over policy is always really hot. Disney announcing it will pull all of its movies from netflix to start its own streaming platform for espn, its a Major Development in the world of media. Cnbc spoke to the man behind it all. Well hear from him after this break. Look, up in the sky, its a bird. Its a plane. No, its just bit coin. And its gone buck wild. And its taking a couple of stocks with it well explain how to profit. Plus, with google under fire from the right, could big tech become the white houses next big target an fl tell you what it could meor the rally when fast money returns welcome back to fast money. Retail making a comeback the rally nearly 4 in just the past month cnbcs bestdressed man himself, our own dom chu. All right, so this pocket square is about the fanciest thing ive got but i got to keep up im not sure how much more of their Discretionary Income people are spending as of late what we do know is the sentiment has turned at least for some beaten up Retail Stocks over the short to medium term heres what were talking about. There are over 80 stocks in the s p 500 Consumer Discretionary sector and around 12 of them have seen double digit percentage gains over the course of the last month and retail has been a standout. So heres what were saying. Midscale Department Stores, khols, about 12 year to date target up 15 in the last month but still down 18 in 2017 luxury goods and apparel michael kos surged on a strong earn ooings report one of the biggest laggards has turned things around and is trying to hold on to year to date gains this doesnt mean theres been an all clear signal on retailers or the consumer in general is somehow Getting Better overnight. Some of these stocks have been heavily shorted during the recent downtrend closing out short positions may be a big part of the buying. The overall consumer discreti discretionary sector is the third best performer in the s p 500 and now its not all about netflix, price line and amazon well see how much that bounce for the Retail Stocks last ive got to go to you and kors i thought, whats karen think of this yes, i thought it was, you know, i thought up 8, where it ended up, is beyond what i thought could happen theyve guided higher by, i dont know, 11 cents or so so you put and 70 multiple on that that doesnt quite make sense to me it does show how badly they have been hurt over and over again by the same news and some of which of their very own making for sure. But the bar was so low in some of these names you saw ralph lauren today also up huge. I think, you know, for kors, its greater the er thertheyreg progress now down midsingle digits as opposed to high single digits. So the response was really that things were way too low before right. And so i think well see maybe a little bit more of that. Although childrens place today, i actually sold the rest of ours. You did because at 16 times, its not crazy expensive at all they have a huge cash position but its all the way back up its now up 18 on the year. I think, you know, ill take the money off the table there. This bnz overabalance overaln the retail, the sentiment its been gone too much so its caught back up to where it should have been, because it never should have been down there . I would say yes july 14th, the morning, 6 00 in the morning, you recall where you were no, but ill fill you in you were sitting right there i was sitting to your right. A news flash came, target gives guidance, do you recall . Stock was trading 50 1 2 what did we say, dont fade this rally, this is actually very good guidance. Target probably got beat up by the amazon whole foods things. If you like walmart at 17 1 2, 18 times, you have to like target at 13 1 2 timings thats what we said then i agree with that now. Target reports on august 16. The stock today on a pretty lousy tape, i think the stock continues to rally. Next guest says there are two big names that are still worth a buy. Lets go out to chris. Nice to be here when we talk about the sector, we have to start with the most important stock in the group and its amazon. Its not lost on us. Even as the market is at a new high here. Amazon sold off here over the last week or so. Were right back to the 50day average. As we were about this time a few weeks ago. A few months earlier earlier in the year. The question is, can support hold for fourth time i think theres some nearterm risk here. We had a big down day in june. Volume has started to pick up here i think the 982 level on this chart is key you break 982, it brings in the conversation of 900. So if we cant own this one what do we want to own . I want to focus not on bad charts are bouncing, but charts that spent the last several months putting in big bases. I think nike is the best example. Nike doubled from 2014 through 2016 quietly starting to base here. 57. 58 is good support. Thats where we think you buy the stock. I think you play for 65 here ill give you one more this is coach. Chart back to 2012 were talking about a fiveyear downtrend. That is now over over the last 18 months, weve put in the bottom. Were Holding Support here very good level near 45, 46 to add exposure so dont buy bad charts that are just bouncing. Look for names that have already based. Nike and coach i think are your best two options in the sector. I think chris comes over, what do you think . Yeah, come on good charting there yeah, good plasma work over there. So you spoke about coach and how the chart looked constructive for the year so when you take a look at kors, how does it look now with this big move higher in todays session . Listen, its not a stock im buying with its a big move over one day i think its hard to say it has the characteristics you would associate with a really adorable move it doesnt mean it cant go up from here. If i own the stock, id be thinking about, mm, where i want to start letting this one go like the move we saw today. The pushback would be the july 3rd low, 950. We bounce strongly from that level. You think if we break 982, we have a more significant downdraft . I think 950 is not important as we look at the price history over the last 12 months. Weve had this up trend thats been very elegant in place really since this time last year i think 982 is the level here. It brings in the interday underneath that. But you have to remember, the lo longterm trend is still up. What we talk about is tactical weakness after an incredible run. What does it mean for the broader market, i think thats the bigger question. While youve lost maybe amazon here in the long term, money isnt going to defensive groups. This is not a riskoff move, this is a rotational move. I think ultimately thats probably instructive for the broader tape. Go being to the xrts. We broke kind of a resistance level. Im not sure ten cents tells you its a breakout time if i look at the risk reward, the best was 50 bucks. Is it just doesnt that really tell the whole story . Because, i mean, what are you shooting for exactly i think you absolutely nailed it we have to think about this move in a tactical sense. Thats why i want to focus on a name like a nike or a coach that have spent the last 18 months bottoming and basing these arent just one or two day moves. Theyve put their time in. Theyve repaired themselves. Thats where you look for a more adorable advance chris, thank you. Its interesting, the chart, coach, nike, talking about kors, rl was up 13 today. These are brands i think you have to kind of maybe differentiate between some of these retailers we know a lot of these Department Stores are really strategically challenged they have actually had substantial short squeezes well get a bunch of them reporting on thursday and friday and youre going to see whether these bounces are dead cat bounces or really commensurate starting a base. To me i think the srt is still in the downtrend its still 20 from alltime highs about a year ago i think that one sets up for traders as a great short 39 as a really charging neckline for what is an epic, epic head and shoulders chart. I think its the worst chart in the market. Still because you said that before. Yeah, you know what it did, it did what its supposed to do. It rallied back to the downtrend. To e ime, we get through the earnings, then it sets up as a great short. Still ahead, disney and netflix both lower after disine announced big news by the way, those levels on disney, levels we have not seen since the end of 2016. Plus, a big target on big tech jim will tell us why drama at google could create waa r between washington and Silicon Valley you may want more than parts a and b heres why. Medicare only covers about 80 of your part b medical expenses. The rest is up to you. You might want to consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like any Medicare Supplement insurance plan, these help pick up some of what medicare doesnt pay. And, these plans let you choose any doctor or hospital that accepts medicare patients. You could stay with the doctor or specialist you trust. Or go with someone new. Youre not stuck in a network. Because there arent any. So dont wait. Call now to request your free decision guide and find the aarp Medicare Supplement plan that works for you. Theres a range to choose from, depending on your needs and your budget. Rates are competitive. And theyre the only plans of their kind endorsed by aarp. Like any of these types of plans, they let you apply whenever you want. Theres no enrollment window. No waiting to apply. So call now. Remember, Medicare Supplement plans help cover some of what medicare doesnt pay. Youll be able to choose any doctor or hospital that accepts medicare patients. Whether youre on medicare now or turning 65 soon, its a good time to get your ducks in a row. Duck quack call to request your free decision guide now. Because the time to think about tomorrow is today. Welcome back take a look at shares of price line, down 6 here on afterhours trade. Expectations were just so high coming into todays Earnings Report with the stock hitting a record high of almost 2,068 a share this of tafternoon. Price lines Second Quarter gross bookings fell short of what analysts were looking for guggenheim analyst jake fuller writing that we are concerned that price lines performance and guidance may not be well received given heightened expectations price line said its current guidance assumes that its growth rates will be mainly due to the size of its business price line operates many sites including bookings. Com, kayak, open table among others. The stock has been on a tear, up 40 so far in 2017 but shares are plunging here in extended trade still outperforming its main competitor expedia on a year to date basis all right, thank you. Seema moda at the nyse they blew away any p e on revenue. It was the Third Quarter guidance that was disappointing. I would submit you have about 17 eps growth it still trades 23 times forward earnings i dont think its a retick lid multiple for this company. You have trumps comments which dont think i dont think travel stocks i also think they filed a mixed shelf for an undetermined amount that will be interesting to see when and if that comes to market so what does that mean 1900 was the level about four or five months ago. My sense is thats where it holds on the way down. Im having a little deja vu when they reported, it was the same thing they beat their Current Quarter and guided down. What did they do they just beat this quarter. I think guy you said you buy that dip 6. 5 on a stock up 40 on the year alltime high . I dont think its the end of the world. If you believe in the forward guide ents an, you believe theyre going to beat it lets stick with tech google in the cross hairs following the termination of one of its employees over a controversial memo and the drama could last a while josh lipton joins us from San Francisco with the latest, josh googles ceo clearly felt a red line had been crossed. That james demorai, the author of that divisive memo, violated the companys code of conduct with this manifesto. Dimorai said innate differences between the sexes could, in part, explain the lack of women work until tech. Writing women on average have more openness directed towards feelings and aesthetics rather than ideas women generally have a stronger interest in people rather than things relative to men these two differences in part explain why women relatively prefer jobs in social or artistic areas google has now fired him for that memo, described as offensive. Says the ceo did the right thing. I think he meant to do it i think he wanted to create the controversy and the discussion he got his opportunity despite the fact he said he didnt get a chance to talk, he get plenty of chance to talk this is the consequences of what he did now, others arent so sure, though commentators on the right have come to his defense. Including rich lawrie, editor of national review, who wrote, it is one thing to disagree with this memo. It is another thing to believe the views therein should be forbidden. But this fight might not be over in a statement to nbc news, he says he thinks he was fired for political reasons and that he is currently exploring all possible legal remedies melissa, back to you. Josh lipton in San Francisco. So will googles latest issues lead to even more scrutiny for the biggest names in technology as the war of words continues between President Trump and Silicon Valley giants like amazon . Should investors be worried . Lets bring in cofounder fast money friend jim vandehie. Weve been waiting for when President Trump will turn his attention to technology and start blasting it for one reason or another do you think this is the time, this is the thing . I dont think this specific instance but i think your viewers should be prepared over the next year for really the tides to turn against Big Technology companies if you go back eight or nine months ago, this country had a very romantic view about all of these highperforming big techs. People feel, rightly so, facebook influenced the election they feel were turning over way too much data to these big companies. Theres a feeling theres a lot of money being made by a few for a lot companie creating jobs overseas if you look at europe and the views of that continent towards tech, youre starting see some similar signs here on top of that, you have republicans and democrats in a new manifesto starting to talk about antitrust legislation as it applies to these companies. So i think this is real. I dont think its happening tomorrow but do think its a trend everyone should Pay Attention to i mean, is this is Technology Going to be the next Financial Sector in terms of the president s sights it seems like whatever sectors doing well is contributing to a wealth divide in this country becomes the target of the administration well, listen, he has obviously fought with Silicon Valley over immigration and other topics and there is a wing inside of the white house, steve bannon, steve miller, others, who would love to take a very aggressive stance against google, facebook, other technology companies, would love to use antitrust rules, would love to figure out ways to regulate their usage of pe personal data. If you look at the way the winds are blowing, more and more people have concerns with the behavior of these Big Technology companies, which you and i know have a very arrogant view of washington and of anyone outside of Silicon Valley. But the game is changed. Because so many of these companies, so much of what theyre building, so much of what will be built in the future is a coalition of technology and bureaucracy. Whether you have that collision, dont you think washington is going to start to intervene . Jim, let me ask you something, do you think amazon would be the first one in the cross hairs, given the washingtownershi of the Washington Post and trumps disdain for the post its one of the companies at the top of the list. Not big fans of google, not big fans of amazon i think the president doesnt spend that much time thinking about the specifics of these individual companies but i do think at any moment he could turn certainly his rhetoric against these companies. And he has hes talked about doing much more on immigration than hes actually done. Hes done a lot but not nearly as much as i think bannon and others would like. The more they see in the poing numbers, the more they see anecdotically, theres a populist tide that helped them that now could be hurting the Tech Companies thats where the alignment comes in thats where i think people have to Pay Attention if you didnt have donald trump as president , i think this trend would be one of the biggest stories of this calendar year. Its a big titanic shift were out of time i got to ask you this. Because you and axios have done a ton of reporting is zuckerberg going to run i think everybody who runs a big Company Thinks they can run the country. This is relevant to what we talked about hes hired a lot of political advisers, particularly people who worked for barack obama, to work for him and for his charity. If you think about his problems, hes aware of what were talking about. And he needs to look at Facebook Like it is a political candidate. Hes got a political problem hes traveling the country because he knows he needs to better understand the country. He needs polsters and strategists because he can tell the same trend lines in politics were seeing so whether hes running or not, his company, a massive company, has political problems of its own. If he decides that having all of that makes him feel like hes in a position to run, obviously would help him to be in a position to run. I dont think thats what this is about. Jim, you always have an interesting take onthings. Thanks so much axios cofounder dan . Its a tough one. The facebook one is interesting. I think if he or sandburg considered to run, i think that would be a big problem for the company one way or another the way i see facebook is they had a problem suppressing fake news here and theyre willing to suppress real news in places like china and that would be the in next leg of their growth. To me at some point i think the jig is up as far as the 45 sales growth that we see theyre reaching semimonopolistic levels as far as online advertising. When you talk about being in the sites of regulators, i think they will clearly be in the sights, no matter whos in the white house. Disney lower after its Earnings Report but the big news is the mouse house taking on netflix. Announcing a number of new streaming services ouhaboigll y wt b er just told investors. [pony neighing] what . Hey gary. Oh. Whats with the dogsized horse . Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. At where instead of payinging a befor middlemen,em. We work directly with family farms to deliver Higher Quality ingredients for less than you pay at the store. Get 30 off at blueapron. Com cook thats why at comcast were continuing to make4 7. Our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Disney now at after hour session lows julia has been on the call and join us now. With disney chairs lower on revenue that fell short of wall street expectations due to weakness at espn, theres been a lot of questions on the Conference Call about espns Upcoming Streaming Service and what kind of threat the new disney Branded Service would pose to netflix. For the espn Service Launching next year, iger says theyre going to look to license more sports content and they will include ads. Now, he says there are no plans to include ads in the disney Branded Service. Heres what he said about the kind of content that new disney app launching in 2019 will feature. It will be the pay movies and the pay window so that means theatrical window, then what used to be called the home video window which is now dominated by digital and then post that, the window netflix has, disney pixar movies will be on this platform in addition to that, we will have significant amount of Disney Library product from the disney studios over time and television Library Product but were going to make a significant investment in original Disney Branded Television and Motion Pictures for just this platform now, iger saying todays announcements and the new majority stake of bam tech theyre buying give disney a built to reach consumers in new ways and leverage of strength of their brand in ways competitors cant. Iger said todays announcement set the company up well no matter what changes happen in the media ecosystem. Hes certainly talking about potential for more cord cutting. Did he mean theatrical window, movies that might be in theaters currently or movies offered elsewhere as a payperview he said there are no plans to try to shorten the theatrical window so the movies theyll be offering will come in the same window after theyre in theaters disneys one of the few Media Companies that really is less interested in shortening that window because their films do still perform so well, theyre number one in terms of studio Box Office Share this year. Julia, thank you. Take a look at disney shares here were close to the afterhour sessions down by just a fraction lower before were at levels right now we have not seen since the end of last year. So who says to buy the stock on a dip . I think its very interesting, 100 bucks is a very key level of support for the stock. You know, what were hearing more about the deal and the digital tells me that these guys are addressing the Biggest Issue that i think they had. I think espn is still one of the best brands out there as well. Wait, theres a lots going to happen. Well see. We dont know how its going to look, so id wait. Chipmaker nvidia reporting after the bell thursday. Break down the move. The implied move in the Options Market is about 8 thats actually pretty shy of the average over the last four quarters, about 14 . I have a chart here. But, you know, heres the thing, when we look at the implied move, its about 14 in either direction for this week. If you are inclined to play this stock one way or the oo, when you consider some of the earnings move its had over the last few quarters, there was one where its up 30 . Another one up 17 14 implied move is foot so bad. You take half of that if youre bullish and you want to buy a call aftermoney call is 7. Thats what you have to clear. This thing was up 60 at one point on the year. Its obviously at highs. To me when you think about this, its been up over the last couple of years, the money puts to protect, makes sense, or stock replacement, aftermoney calls, that sort of thing. I think the move is pretty cheap. Fdariy, full show, we have final trade, stay tuned. [brother] any last words . [boy] karma, danny. Karma [vo] progress is seizing the moment. Your summer moment awaits you, now that the summer of audi sales event is here. Audi will cover your first months lease payment on select models during the summer of audi sales event. Alzheimers disease the fi is out there. Survive and the Alzheimers Association is going to make it happen by funding scientific breakthroughs, advancing public policy, and providing local support to those living with the disease and their caregivers. But we wont get there without you. Visit alz. Org to join the fight. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . 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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 but to educate and teach you so call me at 1800743cnbc or tweet me jimcramer. Has this market, has this stock market finally stopped freaking out about the