azure, and at least a little bit of deceleration in the growth there. what does amazon put up? >> couple months ago, the new ceo of aws said yeah, there's going to be continued spending on things like infrastructure, but they are trying to be disciplined, as well. >> all the major averages higher today, but the nasdaq finishing for the month of july lower, first time since 2014. that does it for us here at "overtime." >> “fast money” starts now. live from the nasdaq market site in the heart of new york city's times square, this is "fast money." here's what's on tap tonight. megameta. shares jumping after its latest earnings reportreport. plus, the powell bounce. markets jumping after the fed chair suggests a september rate cut is truly in the cards. the ten-year hitting its lowest level since march. did the central bank just give the green light for investors? we'll debate that. and boeing shares take off as the company selects its next

ceo. what the former head of rockwelcome lynnrockwell collins can bring. i'm melissa lee, coming to you live from studio b at the nasdaq. on the desk tonight -- steve grasso, karen finermand m, but keeping hopes alive for a cut in september, if inflation continues to cool. we'll get more on that shortly. but first, meta earnings. the stock is up 4.5% after reporting a beat on the top and the bottom line. the call just getting under way at the top of the hour. julia boorstin has all the numbers. julia? >> that's right, melissa. meta giving third quarter revenue guidance in a range ahead of the analyst consensus. the company also narrowing its all-important capex guidance, bringing up the lower end of its capex range to between $37 and $40 billion. that's up from the prior $35 billion that the company gave

last quarter. so, in the earnings release, the company reiterating its commitment to investing in a.i., saying, quote, while we continue to refine our plans for next year, we currently expect significant capital expenditures growth in 2025. as we invest to support our artificial intelligence research and product development efforts. now, the daily active people on meta's family of apps increased 7% year over year to 3.27 billion, while the number of ad impressions and the average price per ad both increased by 10%. we are sure to hear more on the call about how much a.i. is boosting these results. and we may hear more about the impact of regulation. melissa? >> all right, julia, keep us posted. julia boorstin with the lowdown here on meta. the stock is up 4.4%. karen, what did you make of this quarter? >> so, i liked it. julia pointed out the highlights. the revenue was good, the capex was in line, ish, tiny degree of difference. so, all that was good. every metric was good.

however, i caution -- i'm excited about where it's trading, but so much can happen on the conference call, and we've seen that, you know, microsoft last night was a good example, on the call, they actually said they were supply cons constrained, which was a different feel than we had going into that, so, i definitely want to hear what he has to say. it is sometimes very much a market-moving call. so, but i liked it, and i think -- it's interesting that even with the pinterest numbers last night, they're not seeing the same thing, and i think what they're able to do is just deliver better ads and people will pay -- advertisers will pay for them because they believer. >> and even better ads, thanks to a.i. >> yes, yes. >> that's the thing about this a.i. model. it's not just investing in a.i. and selling it -- >> they're utilizing it for people who buy ads, and you can -- you know, there's lots of videos you can see, but one of them, ads manager, how it's very simple now, create a very different ad, choose that ad for different people, different times, change the text, and it's so easy to do.

s of, i like what i'm seeing, but i'll have to listen to the call. >> the setup was good. down 17% from the recent all-time high, so, that sort of augered well. we talked about that. average price per ad up 10%, which is significantly better than what the street was looking for. as much as this is a u.s./canada story, and it is, look at the europe numbers. europe was surprisingly good. and year over year growth there suggests that maybe there's some something there, as well, for them. you can always wrap your head around facebook in terms of valuation. care's right to focus on the call. it's been a messy stock for the last couple years, but you don't run too far away from meta here. >> when you have over 3 billion active users, it allows you a wide berth for other ventures you would like to do. remember what killed facebook? the metaverse spend. over $13 billion in metaverse spend. now they're spending $10 billion, and for the foreseeable future, who knows what that level is going to get to. where the capex spend hurt google and hurt microsoft, what

is it doing to them? not hurting them at all. because they have that core base. you -- it's almost like google other ventures. so, you have your core business, which is search, they have their core business which is ads. both the same thing. and then they could shoot for the moon now with a.i. spend. that's why you saw nvidia stronger on the back of this, because they are one of nvidia's top clients. >> well, the r.o.i. on the spend seems a little bit clearer and more linear for this case, as opposed to a microsoft, for instance, where we're not getting co-pilot revenues. here we are actually seeing ad revenues improve, and that's thanks in part to this spend, so, people are able to connect the dots between the spend and the increasing spend and the payoff. >> 100%. and you're seeing it in terms of what we just talked about. the flip side of that coin is the enhancements on a.i. and the ad spend. is that going to be offset about a slowing economy? facebook, the majority of their

business, the ad spend is small and medium-sized businesses. if the economy is slowing, the economically-sensitive companies will be those businesses. the first thing they will cut back is ad spend. so, to a certain extent, i think you have to feel the economy's on stable footing to consider, again, to still want to be long facebook, which, by the way, you should be, given the valuation, but that's sort of the risk out there, i think. >> i feel like we've seen -- we've been down this road before, where we say those businesses will cut back on ad spending and it is not cutting back at facebook, it's cutting back other places. they are getting the best return on investment. when you think, michael, about ka capex and a.i., this is going to be something that helps us through the slowdown? is this going to be -- how do you view this, a boost to the economy? >> yeah, i think, listen, long-term, there's no doubt that a.i. is a productivity enhancer and most likely helps the economy. the question is whether or not it's a good investment story. and i think definitely over three, five, seven, ten years, a.i. is the future, but i think you're going to see a broadening out of performance from stocks,

based on broader earnings, and it's not just an a.i. story right now. doesn't mean a.i. is bad. >> and you have seasonality as a tailwind. going into the back half of the year, you have the elections. right now, you have the olympics, which is probably still not going to decrease and who knows how much people start to view the olympics again, start to increase their spend, even though that's somewhat know talted in their budgets, you might see another ramp going into year-end, as well. >> what are you afraid about when it comes to the conference call? >> they dropped a bigger spend last time. that was a critical point. >> now, bigger spend is, like, ye yeah, bigger spend. >> they defined it in their release. if it's different than that, that won't be great. i guess his take on the economy? getting to your point about, okay, maybe meta might be the last place they would cut their spending, but if overall everyone's cutting spending, you know, i think maybe they get a lower dollar. that would be -- unless you drop

some other kind of unusual thing. >> where is the growth coming from in europe? is the ad price per -- the average price per ad up as a function of what we just talked about, or is it something else? those are interesting things. and the spend, without question. but i don't know what the first question will be, it's going to be a.i.-related, we'll see how the market handles that. >> that conference call under way. the stock is still up by 4%. let's get to the other big story for us today, and that is, of course, fed chair jerome powell signaling progress on inflation, as well as more moderation in the labor market. stocks adding to earlier gains. during the press conference, closed off the highs of the day. the nasdaq surging 2.6%. each having their best day since february. meantime, the ten-year treasury yield dipping below 4.1% for the first time since march, while the two-year hit its lowest level since february. and gold turning positive to settle at a new record. let's bring in steve liesman

with more. steve? >> hey, melissa, i'm looking at that 403 on the ten-year. i didn't realize it fell that low. the fed holding steady, 5.25 to 5.5. statements showed that the economy moved to a place where they could cut interest rates and jay powell said explicitly that a september rate cut was on the table if the inflation rate continued to decline or remain the same. >> if we were to see, for example, inflation moving down quickly, or more or less in line with expectations, growth remains, let's say, reasonably strong, and the labor market remains, you know, consistent with its current condition, then i would think that a rate cut could be on the table at the september meeting. >> powell acknowledged some policy makers, hey, they wanted to cut today, but that was not the view of the majority. in the end, all agreed with the

statement that noted there were more balanced risks out there. they were attentive to risk to both sides of the mandate. they, of course, saw better progress towards that 2% target, along with a moderation in the job market. so, the yield on the january 2025 fed funds contract shows the market went into this meeting pretty aggressively priced for three cuts this year already. it took the statement as somewhat hawkish. it wanted more expressive language. it became more confident with the yield falling after powell's press conference. some of that confidence may have come from powell's answer to a question i asked him, where he made no promises, but he did affirm that he sees rate cuts as a process, melissa, not likely a one-off move by the fed. >> what was your take, overall, steve? do you think that it leans -- he leaned more hawkish? i thought the tip of the hat to the risks to both sides of the

due dual mandate seemed a little bit hawkish. >> you know, i'm interested right now in what's going on on the committee. i feel like powell is more or less onboard with rate -- a rate cut in september, and a series of rate cuts that maybe start to move the funds rate towards normal, but what stopped them today? i think that's an interesting question. i -- apparently there are some members of the committee, i think i know who they are, who wanted to cut today, but who didn't want to cut? i'm interested on who the more hawkish wing of the fed is, and what their makeup is. now, agree, they are going to have two more inflation reports before september, and a couple more employment reports, including one this week, and that could really seal the deal. i don't think that the burden is especially high, though, for the data itself to keep the fed from cutting. >> so, steve, what do you think, though, when -- exactly where you left off, if we do get a

hiccup on a cpi print, you don't -- do you think that they still go -- as a trader, i think they're trying to be too cute here. they're trying to thread the needle too tight. what's the difference between september with the same data and right now? >> and to your point, steve, when you asked your question, he said before, 25 basis points isn't going to do anything to the economy. >> right. so, you want to do a series of cuts. look, he said several times they're going to look at the totality of the data. and it's important for you guys to understand the kind of inflation math that's coming our way, which is there are a couple big numbers in the past that are going to roll off the year over year rate, so, there is some tolerance in the year over year rate for a couple of those bumps that grasso was talking about. so, it doesn't have to be perfect, it has to be in line, and not suggest a reacceleration. so, i think there's some tolerance. and, by the way, i think it was "the new york times" asked the question about what the default position was, and it sounds to me like the default position is

to cult, so, steve, when you ask that question, i think there's higher tolerance for a bump along the way. >> steve, it's karen. thanks for being on today. it seems like the default is a cut, but he gave himself a little wiggle room. doesn't have to be perfect. they don't need to exactly meet or beat expectations, but can you wquantify the wiggle room they have with inflation data and maybe putting in labor data that could counteract inflation data? >> well, i could. i haven't opened my pce spreadsheet that call cue lates the three, six, and 12-month rolling rates of inflation for the core, the supercore, and the headline, which i do have, by the way, you think i'm making that up, i actually have that here. what i think you're looking for, karen, and i'm not sure this is what you're looking for in answer to your question, but look at that 0.2 place. that is an okay place. if we go up by 0.2s, a little tolerance to get at steve's question, for 0.3, and we're

going to be slashing rates, if we stay at 0.1 or 0 or below. that's where i think the delynn nations are. i think it's amusing to me that the fate of the nation rides on the decimal point of an uncertain number that could be revised away until future numbers, but that's where we're at. 0.1 isgreat. 0.2 is okay, 0.3, there's some tolerance. 0.4, we're going to have trouble. >> steve, first, i'll say, you know, to steve's point earlier what's the difference between november and september, too, you could make that argument, but do you think there's a little bit of a contradiction to what chair powell said today in terms of, you know, he stressed normalization in the unemployment rate, in the company, but then says that they're restrictive. so, which one is it? are we slowing down because of restrictive policy? or are we slowing down just because of normalization and post-covid sort of distortions coming back down, you know,

coming back to normal? >> that's an interesting question, i'm not sure i completely know the answer to that. i think there's a couple things going on. one is that we are starting to see the higher interest rates bite. remember, it's a year from now, it's a year ago that the fed hit these current rates right now. so, i think the fed believes it to be restrictive, believes there's scope for normalization, without really igniting or accelerating the economy. i think that's the way they feel about it. they had talked for awhile about this idea, hey if we don't cut and inflation falls, the real rate rises, we become more restrictive than we want to be, if we don't adjust the rate. i think we're going to be hearing a little bit more of that talk in the coming weeks. >> steve, thanks. >> pleasure. have a great day. >> you, too. in the afterhours session, the ten-year yield, we're down ten basis points after the official close of the bond market. michael, what is your answer to the question you asked steve? >> yeah, i think we are clearly

normalizing post-covid, and i think the fed recognizes this. i mean, listen, there's a little something for everybody in today's statement in the press conference. if you kind of assume that the fed was going to cut in september, well, you got enough to think they're going to cut in september. and if you think they should hold because of some of the base effects that steve mentioned earlier, and this is more normalization and not actually a slowdown, which is what we believe, that we're more normalizing process and the economy is quite healthy, maybe you wait until november, but i do think it's clear, the fed wants to cut. and whether they do it in september or november, you know, who knows, but also, who really cares? at the end of the day, you're going to have a fed that most likely cuts policy. >> you mentioned that gold is at an all-time high, say what you want about the gold market, it is flashing warning signs for the broader market, as well. you're getting the green light for gold to go higher. throw up the gold mining stocks, just look at the run these names have had. the mining stocks will not move

historically. now, they believe what's going on. so, everything looks great on the surface. rates are coming down. one has to wonder why that is. regardless, the gold market says, we don't care, we see something else. >> ask guy a question? >> of course. >> if i told you, for sure, cutting 25, that's what they're doing in september, does the market go up or down on that? >> yeah, that's, i think that's a great question, be careful what you wish for, right? i think the event itself might trigger a sort of sell the news, without question. and if it's more than that, if it's 50, whatever, obviously they are doing something because they see some weakness that maybe the rest of us don't see, or choose not to see. so -- it's not, again, michael can speak to this, it's not the inversion in the yield curve that gets the market, it's the resteepening, and it's happening right before your eyes. historically, when they start cutting rates, the market gets dicey -- >> i know we're up against it, really quick, five seconds. if you wait too long, november, the reason why november versus september matters is because there's long and variable lags

as it was in the beginning of it. so, they're messing around with a potential recession, so, they're trying to be too cute. if it feels like they should cut, they waited too long. >> but we're not messing around with a recession here. the economy is quite strong. we have 4.1% -- >> if it feels like you should cut, you've waited too long. it should feel like you're early. >> or it could mean that you're still getting inflation pressures once again. >> sure. coming up, we will keep an eye on meta and bring you the headlines from the conference call. "fast money" friend gene munster will join us in moments. plus, why microsoft's earnings weren't as bad for chip stocks as initially thought. nvidia leading the group today with a huge move higher. what is driving all those gains, next. and sticking with chips, qualm come and arm on the move after reporting results. bring you the details from the quarters, plus, a lot more afterhours action in etsy, carvana, mgm. don't go anywhere. "fast money" is back in two.

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team usa is back! let's see that enhanced 4k from xfinity. wow. everything you'd want is right here when you say... “olympics” so, what if your favorite athlete is... "grant hollowa”" nice. or you can't get enough... “swimming” definitely adding that to favorites. now let's check... “medal coun”" and when is gymnastics on? “olympic schedule” it's that easy. find it, see it, count on it with the best seat in the house. get the fastest connection to paris with xfinity. welcome back to "fast money." microsoft chers rebounding sharply from yesterday's afterhours lows, closing down just a percent after falling as much as 8% immediately after its report. the company suggesting there are no plans to slow spending on a.i., and that helped send chip

stocks soaring today. nvidia surging 13%. broadcom up 12%. the smh say its best day since march. did that give the all-clear? >> i was going to say, i mean, you know, if you look at nvidia stock, it hit that high of $140, it traded at $103 and change yesterday. that's a pretty big drawdown. so, i think it was sort of ripe for some kind of positive news. there was that, and then, so, the big spend, and then also, amd, with some good numbers, as well. so, that sort of created enough of a bottom for a bullishness, and i don't know, sort of a vacuum up. >> you mentioned the best line that was the analysis that the market did on it. it wasn't a demand issue, it was a supply issue. and so, i think everyone looked at it, you guys were talking about it on the desk last night, everyone looked at it the wrong way, and they thought it was about a spend, thought about a

dollar is going to get you how much on the back end, and it wasn't enough on the back end. but now that they know there's an unlimited amount, what perceived to be an unlimited amount of demand right now. let's get an earnings alert in on two names in that sector that reported earnings in the last hour. qualcomm and arm holdings moving in different directions. steve kovach has the details on those quarters. >> yeah, melissa, these two major chip names are reporting after that rally in the sector you just mentioned today. let's start with qualcomm, building on its 8% surge, up less than 2% now, was up 6% earlier. chip maker posting beats on the top and bottom line, showing a surge of 12% in sales for the important handset business to $5.9 billion. you can take that as a signal demand is starting to come back to smartphones. it's an important data point ahead of apple results tomorrow, as well. as for the automotive segment, aer have strong beat there. still a tiny part of the business. sales up to $811 million, smashing expectations of $641

million. and good guidance there, too, expecting between $9.5 billion and $10.3 billion this quarter. street was looking for $9.7 billion. and now let's go over to arm holdings. those shares sinking afterhours, really brutal, now down almost 11%. following today's earlier gains, despite the healthy beats on the top and bottom lines. revenue was $939 million, up 39% from the year ago quarter. and revenue guidance for the current quarter was largely in line with estimates, but it was light on earnings guidance. and lots of talk in this release about the future potential for a.i. devices running arm chip designs, but that's a ways off, mel. >> all right, steve, thank you. steve kovach. what do you make of -- >> i'll take arm. qualcomm, we talked about. let's just look at arm. it's had a huge selloff. it obviously bounced today. it's back to where we started the day, if not a tad lower. company that's going to do $5 billion of revenue next year, trades about $160 billion market cap.

you can do the math. that historically is excessively high and they guided down next quarter in terms of eps. so, it's not an indictment of the company at all, it's an indictment on the valuation. and i think when people really look at it and say, wait a second, i can own other companies a lot cheaper, they're going to go there. qualcomm, i think, is a very good example of a more reasonably priced semi stock. >> sitting here on this desk yesterday, with microsoft down 6% to 8% in the afterhours session on the conference call, would you have guessed that the nasdaq would be up in today's session? >> no, and quickly, we talked about it last night, i remember what we said, collectively, you're not looking for a place to sell microsoft, you're looking for a place to buy it. to answer your question, emphatically, no, but did i think it would bounce off that level, absolutely, yes. >> one of the thing -- going into some of these earnings, we had a pretty nice setup. things really gotten crushed. >> right. >> might be harder tomorrow when we listen to, we have apple and

amazon tomorrow night. >> steve? >> arm holdings, the market share in smartphones. every time i read this number, it's shocking. it's 99%. that, to me, is shocking. when you say, well, where's the stock -- everyone thinks now they have to diversify, now they have to go into pcs. and then, when they think that amd put up a great number in pcs, they're not going to be 30% of the pc market in the next few years. so, for me, i'm thinking, the bread and butter is 99% of the smartphones, why are we selling the stock off? >> you think the smartphone trade is going to be so amazing? >> yeah. think about the refresh cycle. so, i would look for apple to put up a number, look for a.i. to be a bigger refresh, and then look back to arm off of apple's numbers. coming up, a big jump in oil, as major developments in the mideast impact the energy space. what it means for crude. and we're keeping an eye on meta shares afterhours.

gene munster will join us next, to detail everything he's been hearing on the conference call. you're watching "fast money." back right after this.

welcome back to "fast money." crude surging more than 4% today. its biggest gain since last october. tensions rise in the middle east. iran vowing revenge against israel over the death of a hezbollah leader overnight. energy stocks rising. the oil services etf hitting its highest level since april. the c in the clam. >> excuse me? oh, yeah, i didn't know what you were talking about there. >> talking about the c in the clam. >> clam is doing well. actually. and again, as much as it's about crude oil, it's not, it's about valuation, it's about balance sheets and it's about some of the leverage that the lesser players have. and if there's ever meaningful rotation out of technology, energy will win. it's winning right now, sort of without it. xle was a whisper of a ten-year high, probably $7 or so. i think it was a little north of 100, closed at 93. these energy stocks are rightfully doing well right here. >> yeah, we think they're kind

of ripe for a rally, you know, you've got the rotation side that guy just mentioned. valuations are attractive. global growth is reasonably strong. you have the tensions in the middle east driving oil prices higher. things are just lining up really well for energy. and, yeah, we agree. >> i can't say that i agree with that. it's going to be a boring show. >> i'll disagree with you next time. >> probably be a lot easier life if i thought that way. i think this is a blip in the commodity price. i think that a lot of geopolitical is probably factored in, and going into an election year cycle, the administration will do whatever they can to make sure prices stay low, because that will tick up inflation, so, i think it's a short-term play. >> because they really have control over the price of oil? >> they did with the strategic -- >> good trader. around the spr. >> if gas prices are up from this point on election day, kamala harris loses. >> i agree with steve on the blip part of it. i mean, we've seen giant spikes,

whether it's ukraine, the beginning of the middle east situation, i think this is more of a blip. >> all right, details from meta's conference call coming up. we're going to check in with j gene munster for all the action there. stock is up 5% plus. we'll break it all down after the break. and even more earnings action to bring you. etsy, carvana, mgm, all on the move. the numbers from the reports when "fast money" returns. missed a moment of "fast?" catch us any time on the go. follow the "fast money" podcast. we're back right after this.

welcome back to "fast money." stocks rallying after today's fed decision where the central bank left rates unchanged, but fed chair jerome powell saying a rate cut in september is on the table if inflation continues to cool. the dow climbing 100 points. the tech-heavy nasdaq leading the charge, up more than 2.5%. and some more afterhours movers here. etsy posting an earnings miss. ebay, volatilefter raising guidance for q-3 eps. and mgm posting a beat on earnings and revenues. another check on shares of meta here. they are higher by about 5%.

ceo mark zuckerberg saying on the call to expect significant capex growth in 2025. deepwater asset management's gene munster has been listening to the call. gene, your take so far? >> melissa, just on that capex thread, they did 30 minutes of prepared remarks. the first question that q&a just wrapped up, and it was related to, how are they investing judiciously in capex, related to a.i., and zuckerberg basically put the hammer down and said, every product that they have will be infused with a.i., and added that the reason why tech ceos get on earnings calls and can't stop talking about a.i., because it's the most exciting thing going on with huge potential. so, at the core, i think there is still this gap between how investors think about capex. it's usually pointed out as something that is a negative, as it keeps going higher and higher. i can tell you this, melissa, based on zuckerberg's comments, that $40 billion, the high end of their range for calendar '24

and capex, i suspect it will ultimately be higher than that. >> gene, it's steve. when we saw the capex, we started the show, i said, we saw the spend on metaverse, the stock got hammered. now -- you are just getting a pass, because you have 3.2 billion active users, their core competence. how much latitude is the ad dollars going to give them with their spend in a.i., is it still the same environment, once we see a little bit of an ad dollar spend come in, then that spend will be questioned? >> if the ad business slowed, there's going to be more questions undoubtedly. the ad business, of course, for the september quarter, they're going to come in at the high end of the guidance, that could be 20% growth. the street, as of tonight, is at 15%. so, it's growing -- growin ing faster. susan lee say on the call that on that growth, the ad business, they also have stones that they

have not unturned, in terms of new monetization opportunities about facebook, kind of blast from the past, actual facebook property. steve, i think that number is going to continue to be well, but if i'm wrong, that's going to create more pressure, undoubtedly, on investor margins, despite on what's going on with this investment still ticked up from march to june. and i think that speaks to the ability for them to kind of carry this forward. i do want to mention something really quick that did come up on the call that's related to all their spending and it is a shift in how they are messaging what's going on in reality labs. of course, they're going to lose $20 billion this year versus about $18 billion or $17 billion last year, they're talking more about glasses. these are these ray bans, they are kind of shifting away from talking about the closed metaverse quest and more this ambient computing. i think that's a big opportunity that investors will appreciate more on that investment piece in the quarters to come. >> gene, it's karen.

thanks for being on. do you think that this improvement in advertising is a very meta-specific thing versus the market. do you have a sense of what's happening in the economy? >> well, i think meta's been more aggressive at introducing these advertising tools that are powered by a.i., of course what they had to navigate with apple a few years ago was a big headwind, it was a wakeup call. at that point, they started to add this. what we saw with their growth rate, 22% top line growth rate, that was a little bit higher than what -- that was meaningfully higher than what youtube put up, i think it was 1 13% growth. they are doing something a little bit different. that's the right comp, to think about meta's advertising business versus youtube, because that's more on the branding side. so, karen, to answer your question, i think they are doing something, zuckerberg talked about it in his repaired remarks that the tools are adding more attribution and specifically, he said, in the future, advertisers will simply give meta their objectives and their budget and

they will do everything from ad placement to creative. and did mention one last piece on this, that the -- the return on ad investment that are using these a.i. tools is up 22% for the ones that are not using these tools, and so, there's definitely something that they're doing unique here around this ad market. doesn't mean if the overall market softened, they wouldn't be impacted, but they're doing things right. >> gene, how do you think, and how do you think mark zuckerberg thinks about return on investment from a.i. spend? i mean, right now, we're seeing it through advertising. when we're talking about infusing a.i. throughout the product lineup, are we talking about selling an a.i. product, or just making that are products better so they can, you know, sell even more advertising? >> it's both. they have some unique products. he highlighted the meta a.i., he calls it the most used chat bot, i don't know if that's quite true, but the most used chat bot, and they want to get to a billion users around that and start to monetize it.

another a.i. first, of course, would be something in lam ma. i think they can have an aws type of a service eventually that they can do with llama. so, they are unique opportunities, specifically to a.i. which he said will take years to monetize. said need to be patient on this. but in the meantime, he said that they are also being an impact, we just talked about some of the advertising tools, and just the recommendation engines, content creation stuff that karen talked about earlier in the show, all of that is happening in the near term. so, it is this combination of both near, most of it is related to longer term kind of two, three years out. >> all right, gene, thank you. gene munster. >> thank you. >> monitoring that meta conference call. guy? >> thing about -- this is a company next year, $180 billion of revenue. reality labs will lose $20 billion. that's not an insignificant number on that kind of revenue. if they ever figure that out, just get it to some management -- this is sort of hair triggered. so, karen, this is, i think,

google, facebook, some of her biggest positions, rightfully so. it's positioned well. it's mess y in terms of the stock, but the selloffs have been opportunities to continue to buy it. >> it used to be a bipartisan target on meta's back, and both democrats and republicans had a problem with it. when was the last time -- i can't remember the last time he was brought to the hill. i don't think that's going to happen. but we are going to an election year cycle, so someone is going to be angry about something that he's doing. it's just -- we just haven't heard -- >> risk to the story? >> i'm trying to think about what could go wrong, the story where they're definitely at the top of the hill, and maybe -- maybe that election year cycle, which i thought was going to be a tailwind, will get people sort of up in arms if the election is going one way or another, somebody's going to be unhappy. >> it does seem that in addition to the hardware, you know, makers, for a.i., that meta is actually reaping the rewards

more immediately from its a.i. spend. >> right. advertisers are paying more. i actually -- guy brings up the europe numbers, which were really good. europe is a more difficult environment for them to operate in. that's a much more, you know, they don't really love social media. >> right. coming up, boeing's new boss. the company tapping an aerospace vet to replace dave calhoun. and shares of mastercard jumping after earnings this morning. the strong rumesults that have investors swiping into this name. "fast money" is back in two. (♪♪) (♪♪)

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we've got a news alert on chevron's proposed purchase of rival hess. kate rooney has the details. >> so, it's looking like there is a delay in the chevron/hess deal, according to a regulatory filing. the purchase now faces a new delay, so, this is about an arbitration panel that's not expected to hold a hearing until may of 2025. so, that is a delay based on what the companies had said earlier. and this has to do with hess's stake in the guyana oil producing joint venture. so, a bit of a delay here, this

deal was announced back in october 2023 for $53 billion, or 171 per share at the time. both companies on the move afterhours, mel. back to you. >> kate, thank you. kate rooney. there has been some dispute over who owns and controls guyana, which was a key part of the deal. >> hess is lower, which it probably is, i'm sure -- maybe just popped up, i didn't see it. you buy hess on the weakness. something will happen at some point and the stock is still too cheap below $150. yeah, you stay long hess here. let's get to boeing today. announcing its new ceo, robert kelly ortberg will take the helm in march. phil lebeau has the details on this one. >> kelly ortberg is a person who has been in the aviation industry for more than 35 years. he is well-known, both on the commercial side as well as in

the defense side of aviation. he ran for years the rockwell collins aviation supplier, the company, he ran them for years. in fact, if you look at his track record this is one of the things that intrigues people about this selection by boeing. while he was ceo, and we're just looking at '13 through '18, before the merger with utx, they had 14% annual growth. he was growing that company through a couple of act kwi sigtss in there, before selling to utx. his challenge now that he's running boeing will be making sure that they can get production of the 737 max elevated again. this is the annual production, or, annual deliveries over the last couple of years, and you can see how much it's fallen off this year. just 137 have been delivered. admittedly, production has been capped because of the issues with the faa and the protocols for making sure they're in compliance with all of the things they should be in

compliance with. if you look at where boeing is, relative to airbus, this has been a brutal five-year stretch. look at how things have changed. they no longer lead the market in narrow bodies. that is where airbus has made up much of its ground over the last five, six years. by the way, today, the company report ed its q-2 results, noboy is really paying attention to that. rider than expected of $2.90 a share. the street was expecting $1.97. revenue shy of expectations at $16.87 billion. the street was expecting $17.2 billion. and by the way, melissa, he starts next week, kelly ortberg starts next week. 35 days later, machinist contract expires. hello. welcome to the job. >> he's got a lot of things he's got to figure out really quick. phil, thank you. phil lebeau. >> you bet. >> the company burns a billion dollars in cash every month when they are not delivering planes to the extent they should be,

so -- >> this could be -- if everyone in this room thinks about, who is the best ceo they could name right now running a company, it does not matter. you go to boeing and you're running a pr nightmare at that point. so, you could be an -- >> you're saying it's a lost cause? >> no, i think he's going to get a honeymoon period, the stock is going to get one. i think it will trade up and the first whiff of another inls denlt, people will say, it's too big for any one person to handle. but 40% of revenues are government contracts and that's what keeps this thing afloat. >> throw up a lockheed martin chart. only because it's the l in the clam, number one, number two, just to illustrate what's going on with defense stocks. why do you mention that? if you look at boeing, it's three businesses. $6 billion, $6 billion, $5 billion in revenue. basically split evenly. one of those businesses, they're not getting rewarded for defense portion, so, if the market wakes

up and figures it out, the stock is just too cheap. coming up, investors charging into mastercard, after the payment stock poapsts strong results and numbers that had this payment player popping. more "fast money" in go. - [narrator] this is my coffee shop. we just moved into a bigger space, brought on another employee, and ordered new branded gear for the team. it was so easy. i just chose my products, added our logo, and placed my order. bring your own team together with custom gear. get started today at customink.com.

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welcome back to "fast money." shares of mastercard jumping after the company reported an earnings beat this morning. the ceo touting healthy consumer spending, pointing out cross-border payment volume was up 17% from a year ago. today's gain reversing the stock's recent downtrend, but the stock is still more than 5% from its all-time high hit in march. the consumer is still great, mike. >> the consumer is spending. it's certainly the strength of the economy. i think that's the theme that we've seen from this earnings season. >> karen? >> so, down 5% in what -- we're concerned about the consumer and if it's going to be slowing, i don't think that's terrible. this is a low 30 multiple stock. it deserves a premium multiple, but that's a pretty big premium. >> cross-border was interesting. up so strongly, right? >> surprised, without question, because we've been talking about mastercard, the underperformance since march of this year has been interesting. you actually had one of the first downgrades in the stock that i've seen in a long time

about a month, a month and a half ago. this sort of bucks the trend. but i guess the question is, you know, what -- are people combatting inflation with credit, and i think that's part of it, though, again, it's hard to argue with their transaction numbers. >> so, they're buying things that they have to buy and they're using the 29% rate -- >> i believe that is unfortunately the case, yes. >> i think this is a bifurcated market. people who have money are going to spend money, and people who have money are going to travel abroad and spend money abroad and when you look at it through the prism i just laid out, american express probably reaps the benefits of that, and it has outperformed visa and mastercard. so, i think you continue to stay with american express. >> do you think that's happening, in terms of the consumer using the credit cards -- >> i think you are seeing that, and you're seeing it in regards to delinquency rates, as well. yeah, you are seeing it. all right, up next, final trades.

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time for the final trade. let's go around the horn. steve? >> you know what grayscale did with ethereum, they made an ethereum mini. they did the same thing with bitcoin. btc is the symbol. >> karen? >> yes, so, you know, i say, going home with the girl that brought me to the dance, which is meta. if i own none, i would start buying it right here. >> afterhour session highs right n now. michael? >> i think you're going to see a continuation of the broadening out of the rally, and we like small caps here. >> thank you, michael, for joining us today. >> thank you. >> speaking of michael joining us, he got -- make noise,

interns, for michael. >> wow. that's great. >> i mean, that's energy. that's the energy that we bring here every night on cnbc's "fast money." >> that's right. >> barrick gold is doing some things here. >> thank you so much for watching "fast money." don't go anywhere. "mad money" with jim cramer starts right now. my mission is simple. to make you money. i am here to level the playing field for all investors. there is always a bull market somewhere, and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. how you doing, my friends? i am just trying to make a little money, my job.so call me at 1-800-743-cnbc or tweet me @jimcramer. when i was growing up and i

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