Covering starbucks. Jess getting under way and hes got his left hand on the other red phone or right hand. Ready for that microsoft call which will start off in just about a half hours time. Out of washington, lets get to eamon javers. Reporter focused on those comments by sean spicer, Board Air Force one today talking about a border tax. Let me tell you whatson spicer said this afternoon. If you tax the 50 billion at 20 which is, by the way, a practiced that 160 other countries do by doing that we can do 10 billion a year in tax revenue and easily pay for the border wall just through that mechanism that is a 20 tax on imports. That comment got a lot of attention this afternoon just a few moments ago. Sean spicer invited a few of us in to his office to clarify those comments. He wanted to emphasize that his comments were not prescriptive. This is not saying what our plan is. Hes saying this is just one of a number of options. And, in fact, the white house chief of staff Reince Priebus came into the room while we were talking and said, we should emphasize this is one of a buffet of options out there. So the white house saying theyre not walking back those comments, theyre just seeking to clarify them by adding additional detail. A couple of other points here. I asked sean spicer how ceos should react to the idea of a 20 border tax of imports coming in, wont that increase prices. What spicer said ultimately the president here is responsible for the American Voters and he said the president s going to put American Workers first. I also asked him how this would all work. There are dynamic effects in his term of what would happen with the border tax that would create other benefits for American Consumers and for American Companies including lower cost they said of Law Enforcement and other things and the idea would be ultimately if wages were higher and more people were working in the u. S. , net, net that would be a good thing for the u. S. Economy. He explained his thinking on that 20 border tax from mexico but also clarified that they are not prescribing that. Theyre not announcing it or rolling it out but theyre just discussing it and Reince Priebuss words the white house chief of staff thats just one of a buffet of options at this point. Thats Important News from the white house. Thanks for that update and the collarification there. Lets talk about this because already in the day we saw a pretty sharp reaction. We saw the action in the mexico etf, the peso of course was on the move. Its other countries as well. Almost sounds like mexicos not being signalled out. This is not a mexico story, this is an everything story. When you look at the peso, the peso is was up about 53 basis points, if you look at how the pesos traded it had already priced in 70 probability of a 20 tariff. Ultimately you get to a place here where i thought the election was going to be the crescendo for the peso. Its 3 higher. Look at names like ksu and constellation brands. Really the unknown is enough to keep you away from those stocks. The growth comps over the last couple years is very difficult for them to achieve in a world even without this tariff. I get the selloff. Probably remained somewhat no touch. You may be setting up for a great opportunity. Kansas city southern to me is one of the highest Growth Company before this happens. Well have much more on mexico and President Trump later on. Lets get back to the earnings picture. Alphabet, google is still down. The bank stocks theyve been on fire so what do these results mean for the tech and the mega names in particular. Alphabet in particular the stock has been literally up in a Straight Line 10 . I think the couple things to take a look at but the cost per paid click down 15 . In q3 was down 11 so that decline is accelerating a little bit. The flip side of that is their other bets, the whole alphabet here, they saw an increase in sales of 60 or so. Thats their new digital assistant. Good things going on there. In general i dont think theres any massive cause for alarm. So expectations were high. That second part that dan was talking about, the other bets. Their spending was up but thats because they have other products out there. You have to ask yourself is google going to get the same type of pass that amazon would get when they spend money they know theyre going to make it at someplace else. I think they should. I would give them that bet. I think down 3 on this news barring anything crazy coming out of the Conference Call i think googles a buy right here. Why doesnt it get that free pass. Why doesnt it . Historic alley theyve had quarters where they crush and other quarters where they come out with something you didnt expect so i think i dont think they have the clarity in their business that a lot of other companies have or the clarity they should have. So i think they dont get the pass because of that. In terms of where you buy the stock, the stock was 760 in november. The 50 correction off that is 810. Does it get there tomorrow. Im not certain but i think theres enough in here. They get the benefit of the doubt youre getting high teens growth and high teens multiple. Everythings all time high so when i look at where valuations matter right here this is a company that has four maybe five unmonetized businesses north of a billion dollars that you just said are starting to produce. When you got a core thats very predictable theyre paying more for clicks. Some of those margins are less significantly than they used to be. Thats a cash cow and the company thats giving you the best valuation within that fan group or within big fan tech for that matter. You dont have to buy stocks at all time highs. I know the market is at all time highs. I just want to reference something that bob peck a friend of the show, last year after they reported their q3 they have seven properties with a billion users. Google has seven properties with a billion users. We obsessed over facebooks 1. 7 daily active users. If they ever get the hardware right, i agree with you, it could take off. Lets turn to microsoft. We talked about it yesterday. One stock youre looking tomorrow in terms of where do you potentially see movement to the upside. We talked about microsoft. Its not as robust as i thought it would be in terms of the move in the afterhours. Maybe its been mitigated by some of the other names. Microsoft and we talked about it, they seemed to have made the transition better than most of the other companies out there, valuation is still reasonable and i think you could still even with the stock up in afterhours you can still own the name. If you had to choose, aka, would you rather . Would you rather . Alphabet or so listen, im not as smart as dan pretends to be so you got to do those things with me. What i would say about those two and its not a knock on microsoft since alphabet is down 3 and unjustifiably so i would go with alphabet because its a better buy here. Im going to try that sound smart here. You were talking about high teens growth and that sort of thing. Youre getting growths at reasonable price with google. Microsoft youre really not. Its trading 22 times fiscal 2017. Low Single Digits so i much prefer google than the microsoft. Weve got one Analysts Covering two different calls in two different stocks for us, alphabet and microsoft. David gart is here. Put down that red phone. What have you gleaned from the call so far, david . Said for the Fourth Quarter they were firing on all cylinders. This is something we saw in terms of top line growth. Afterhours was more reaction in what theyre margins are doing but the company is basically making very strong indications relative to the growth of their cloud platform. Theyre now up to over 3 million paid Business Users of their q suite. This for us argues more toward enterprise. They talked very strongly about their strength in mobile. How this was helping to drive store visits by traditional retailers from that standpoint we certainly see a move here being made by google, alphabet that obviously partner with more traditional businesses and try to find ways to leverage a digital offline model which we think at the end of the day probably drives people to use google more than perhaps other competitors. How concerning is the cost per click met trick considering in the last quarter was one of the worst in years . Its always been a difficult for them and certainly this transition over towards mobile, you know, driving more and more of the searches. The certainly is going to be something they have as a head wind. They havent talked necessarily about the change in terms of their mobile ad formats but those are going to be rolling in during the first quarter, which certainly should serve to improve money tiesization. It play slow the rate. Obviously the q a hasnt gotten to that yet. It may very well. Ultimately on google what is the next corporate style action or forget the exciting things that are going on in the cloud and hardware, whether its on the corporate suite or whether its actually from a tax perspective whats the most exciting part of that in the google store that you like here . Whats next driver for investors . I think in terms of for investors, it may be small but rightly named area for the company in terms of other bets, what might be coming out as far as driveless vehicles are concerned. Certainly expectations in 2017 to see greater adoption. We will be getting to a situation where were starting to see these business lines broken out separately as theyre starting to scale. Certainly as they scale they stop being a source of losses because of investment and potentially an area of growth not only top but also bottom line. Well check in with you later on. Microsoft call well get under way in just about 20 minutes time. Were setting record highs across the indexes. How important is this google myth because its down 3 . It doesnt get sloppy. When you think about how much it ran. Look at microsoft on the flip side of that. These two companies are trillion dollars in market cap combined. Microsofts been consolidated for the last 6 weeks. Up or down i dont think it changes anything in either one of these things. Earlier in the week we started this conversation we started to see single stock volatility today. You start stocks southwest air was up 7 , we saw a lot of this moving around, around earnings. Were going to continue to see that. One of the views i had with volatility as low as it is if you wanted to stay in these names you could look at the qqq because theyre really cheap. So i think as you get deeper into earning season you may want to avoid some of the single stock risk. When i heard the numbers today i heard that these are two companies that have very exciting ambitions and in some cases truly executing. If you want to get excited about microsoft, people are giving amazon a multiple to the moon because that have growth. With pc shipments improving you could make an argument that this is feeding microsoft. But you can make some arguments that that might be soggy . I dont even know where to go with that. When you referred to microsoft valuations earlier compared to google, what did you say . It was lofty. She actually listens to us. Sometimes i do. I heard soggy. Still ahead were covering all of the major Earnings Report throughout the hour including starbucks. Well hear from outgoing Howard Schultz for the final time. The, inc. Isnt even dry but another huge media deal could be around the corner. Tensions rising between the u. S. And mexico as President Trump announce as major meeting between the two allies has been cancelled. This could mean trouble ahead for the markets. Much more fast money after this. Runs on intel . That ride share . You actually rode here on the cloud. Did not feel like a cloud. That driverless car . I have seen it all. Intels driving. The future traffic lights, street lamps. Business runs on the cloud. And the cloud runs on intel. I wonder what the other 2 runs on. car horn hey steve check out this guys leg. Yeah looks like a real nasty moving back in with his parents. What . No. I just broke my leg. No, this is a full blown move in to the basement, youre gonna be out of work without that money from. Aflac you might miss your rent. Aww i just moved out. Bummer man. Hey i used to have my own place. Yeah . No, no i live with my mom, but its cool. Health can change but the life you love doesnt have to, keep your lifestyle healthy with. Aflac did you know slow internet can actually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats over 6 times faster than slow internet from the phone company. Say hello to internet speeds up to 250 mbps. And add phone and tv for only 34. 90 more a month. Call today. Comcast business. Built for business. Money. Check out shares of Charter Communications soaring more than 7 . Verizon dipping 1 . This all on a the wall street journal of a potential merger between the two. Julia . Thats right. The the wall street journal report that verizon is exploring a combination with Charter Communications sending both stocks moving. Charter up and verizon down. The journal saying that verizon ceo made a preliminary approach to officials close to charter. This as theres growing except six about whether verizon will close its deal with yahoo in light of yahoos data breech. Those in favor reported theres no significant talks taking place between verizon and charter. Those stocks held on to their moves. And dish which was considered an acquisition target for verizon, rising on that speculation over the past few days plummeted today. Its stock down about 7 . Analysts have been weighing in. Writing about two big hurdles to this potential verizon charter deal saying, quote the first is financial. Can verizon afford it, we suspect not. The second is regulatory. Could a verizon charter deal clear antitrust hurdles . Were not sure. The near term likelihood of a deal is less than 10 with the chances growing to 25 over the next 18 months. Hair gan says the transaction does make since strategically would pass surpass 59 million homes as 3 million more than comcast has. One things for sure, this is just the beginning of major speculation but all possible combinations of telecom, cable and media companies. Its a new world. Thank you for that. Lets talk about this and what exactly if verizons going after the number two cable number in the United States, when it has five g coming down the pike what does it say about their aspirations in terms of the success of a 5 g will offer cable like speed over wireless. They want to offer all content over all devices and what happens if this deal does happen whether it gets confirmed or not or the feds let it go through then comcast is going to buy tmobile or sprint or maybe tmobile and sprint have to combine again first. Its going to be this whole vertical integration thing again. Ten years from now theyre all going to split up again because its going to be weve seen this before. Its happened again and again over the last 15 years with these sorts of companies so its likely happening. Its at t has a head start, a 3 year head start. I think it was the spring of 2014 and thats actually worked out rather well for them. I think thats the reason why i favor at t over verizon and the reason why even if its a verizon charter tieup . If you compare at t versus a verizon charter tie up. Which one do you like . I dont know the answer to that question. Its a would you rather exactly. Looking into the future would you rather. We need a crystal ball. Its very difficult. Right now i would rather at t over verizon. Really . You know what i would take verizon and its the way they stock traded today. It sold off on a what people are saying a 10 chance that this deal goes through. So what happens if there is no deal . The stock rises. What happens if there is a deal . One its already into the stock, number two depending on how the deal is structured you may have our players coming in having to buy verizon selling charter to capture that spread. Verizon seems like the best bet no matter what happens here. Doesnt it underscore what dan is saying. Theyre scrambling to do a deal and theyre caught behind. The other thing about these types of deals, what is the valuation you formally bought these stocks for as an investor, which was primarily dividend yield theyre going to spend more money, theyre going to be investing in businesses where its somewhat and were hoping the industry changes in their favor. Vertical integration, theres a lot of reasons why companys are broken up and thats one of the reasons. I own at t. I actually feel this stock can increase the multiple over the next couple years i stay there. Alphabet, microsoft, intel, starbucks all on the move after hours. Youre watching fast money first in business worldwide. Here what else is coming up on fa fast. The president of mexico and myself have agreed to cancel our meeting for next weeking. The tension between trump and mexico is heating up and that could spell trouble for a number of stocks. Plus its the one dow stock that traders see surging nechlgt week and well give you the name when fast money returns. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. 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