kevin o'leary is on for "shark tank tuesday." "fast money" is coming up in a few moments. sarah eisen, what's on tap? >> we're going to talk about apple and samsung, potentially losing market share big time, some of the local players in chosen without the right price points. the traders have opposing views on apple. we are going to have a debate, kelly. >> good stuff. over to you, guys. >> all right, fast money starts right now live from the nasdaq market site in new york's time's square, i'm sarah eisen in today for melissa lee. our traders sim tee more, dan nathan, container feinerman, ryan kelly. tonight, germany the once shining star of europe showing weakness after a new report indicated investment morale is at the lowest level since december, 2012. that sent the dax and germany and much of europe into the red. so is the u.s. still the best pla is to invest right now? beaks. first question to you.

>> so, listen, it's not the worst place to invest. there are worst place like germany. i think it's okay. i'm not completely conventioned we are talking about the strong dollar and whether or not that means the u.s. economy is back on track. i don't think the dollar is strong because of that. the dollar in my view is strong because the euro is weak. you seen capital flight out of europe. so it's more about other currencies than the u.s. dollar and i think if the dollar does get strong because the economy is getting better, that's a different story. that's not happening. look at yields, they're at multi-year lows. i think you are okay in the u.s. i also look to asia as well. >> you can't deny, it's the dollar, the u.s. treasuries and u.s. stocks rising in tandem. >> brian makes a good point. people are wondering how it could be so wrong so long. it's about the balance of the ecb, which hasn't gotten bigger, the feds is monstrous. where you want to be is emerging markets. we are going to talk about why

the dollar is potentially something i think this has been a first of all not an overnight view. it's a trade people have been wrong on a couple years, second quarter 2013 earnings, everyone was talking how the multi-nationals will get destroyed, meanwhile, it's trading sideways. the lows are good for commodities. i think we are in a million-year convalescent period and ultimately will trade higher. in the meantime, germany's weakness is your weakness, don't confuse it with russia, that is not why the gdp might actually be negative. >> that will be shocking to people. tonight we get japanese gdp, that will be shocking to people. but, really, i think global growth is actually alive and well. >> if you look at the u.s., that's where the positive numbers are coming from. first, jolts, it showed that openings are at the highest in years. the data points to the u.s.

>> trying to look to a play to take advantage of the strong dollar. i don't get that. to me that's the cart leading the -- whatever i got that wrong. you know what i mean. >> putting the cart before the horse. >> putting those two together. i feel if you want to make, you know, a bet about a protracted strength of the dollar then just bet the dollar. why go through -- you can use etf. we were talking earlier gdp. >> when you talk about the dix or edp, about 60% is the euro. you are making a euro bet. i am long euro for a very short-term trade. if you saw today, it bounced off a key level. i think in the short term, the next fortnight or so. >> whoa. >> a stone's throw. >> the dollar is mildly interesting here. maybe. but let's talk about the equity markets. possibly. you know, but here's the thing, you know, the dax is down 10%.

if the s&p were down 10%, they won't know what to do. the s&p is marked down 10% get in there. you ask is the u.s. a good place to be. u.s. equities remain a great place to be. tim brought up a big move in brazil and clone, i actually think some of you guys may fall of your chair here. i think you stick with the s&p 500 until we get the moving average at 1863, which it has not been below. the u.s. is strong. >> only what 3% off the record? >> i'm saying. listen, the u.s. is down 10% there is nothing strrlly there, it will be an opportunity, people will get in there and buy. i will button it up and say the dax is kind of looking interesting. it's really oversold. you could have a 3 to 5% bounce quickly. >> i think in a low wealth, you will get the big cap techs, you

will get dividends. you have this mini goldilocks scenario going on. as long as russia and ukraine and iraq doesn't impede or shock the economy, then, yes, i do think there is a place in the u.s. for your portfolio. >> that does impact corporate earning, tim, i want to get a thought on how you are playing that? >> i like to call u.s. major markets for them. i tell you that first and foremost. what it has in the japanese company, toyota motors, the u.s. is their number two markets there, number two went ahead of ford in terms of total sales. it's a whenfall for them when the dollar is strong and ultimately it means the japanese yen is a great export currency. their numbers in the second quarter were fantastic. i think they're in a react sell racing mode. exotica, luxury mobile has no headwind from the current slow down in growth.

>> dan, what about you? the dollar play. >> so here's the thing, right, if you are worried about the strong dollar, to me i would look to the u.s., at&t have 100% of the sales in the u.s., they don't have to worry about the currency. we are talking a yield environment where it's hard to find any. this kind of checks a bunch of those boxes, so i look to within america and a name like at&t. >> all right. we got an earnings alert here, watching shares of king digital crashing in the after hours. >> i thought you were going say crushed. >> crushed. back at hq. tell us water going on. >> well, crushed is the word. you took it out of my mind. we had earnings in line for king, revenues falling short of expectations and luring the goes saying they'll quote crush it for the second half of the year. on that call the ceo explaining that candy crush, which is king's biggest franchise posted worse than expected declines in bookings that were nost offset by other popular games.

so the entire king portfolio is experiencing a drop in monetization, basically meaning gamers aren't spending as much when they play, his team says they're focusing on turning out more games and more content for the games already being played. >> speaking now of our long-term strategy, we continue to make progress in building a new yorker of players. 2014 is a year of fran situation moving to a revenue base, offering more games to our audience. >> the key word, tran six, synga using that term in their earnings calm, in terms of what king is looking to do, game launch two, new games expected in 2014. they have acquired non-stop games out of singapore and they're launching candy crush on ten cent in chosen later this month. still taking a look at shares of king digital right now trading

in the after hours. those are down about 22%. tara. back to you. >> i will not forget that ipo dion the floor of the new york stock exchange when the watermelons were dancing around. >> are you going to trade this thing? >> i'm not going to trade, what's funny, zynga was very much attached to farmville. wii they went public around the same time that facebook where all these games were played. it had a 5 million market cap and $1.2 million in sales. you look at the market cap, it's been cut in half. when you think about it, you have king here, it's got, it had on the way out a $5 million market cap $2.5 billion in sales of candy crush. and there are some issues. i wouldn't touch it at $14 bucks. >> the secular thing is zynga. it's low barrier to entry, boeks could start his own online

gaming and i bet they'd have a few games. i don't know what your title of game would be. the point is that this is an industry where putting high valuations on companies where a new guy can pop up tomorrow with a new hot game and we've had people on the show i don't think it touches. the $150 million that was the part that was most interested. the dividend they probably herd that would be a floor, boex extremely astute assessment this is a message they tell you they got nothing. why didn't they go raise the money? >> problem. nobody likes king. nobody plays candy crush, which is unusual. i do, i don't spend money, taliban lies the problem. all right. >> endorsement to king shares. >> we should check out social media, twitter the shares actually went up today after announcing it will start promoting video advertisements that are also out with new numbers that show ads are reaching a larger audience than

previously thought. the company revealing that 2003 million of its active users are twitter bots. no question, guys, i don't think advertisers would want to reach the twitter bot community. mixed use here on twitter, right? >> i tell you, a month ago we were talking about new metrics for twitter, they athis is pa thetic. you can make the numbers anything. after those numbers where they showed their monetization was up 108%, people say give these guys some time. if you look back at the facebook model, it took them five quarters, ultimately, a place where the market needed to understand what the numbers meant, what the growth meant for a company that absolutely like facebook needs to prove it. i think the jury is somewhat out and to the positive side of the stock. you into ed to see how they continue to do that. >> that stock continues to be plagued with questions. nowhere near facebook. we're at what 271 million users.

>> but the difference between twitter and one reason why i bought a little bit and got out of it. the reason why i think the sentiment turned around is if you look at what twitter charges for an ad, it's about half hoff what facebook charges, so you don't need to have as many users as facebook. you need to convention advertisers to pay a little more. perhaps they can do it. i agree, the best you can say is the investment tone has changed on this. you probably won't get killed in it. i don't think it's a huge 81 side right now. >> the surprise was in earnings, people like that facebook did well. container are you touching any of these? >> i think the facebook is the most appealing. just because it's cheaper i don't know i'd buy that, maybe it presents a less atrajtive property. i don't know. the whole space is too expensive for me. >> here's the thing, i actually think twitter is a unique property. i think there is scarcity value associated with it. i think there are very few social media properties out there that are actually use. . it's the one thing i will say, it's a useful medium.

we use it. we are connecting in ways we never connected with people. >> would you click on a video ad? >> yeah, i would. let me tell you something. to me, i think facebook is a massive like productivity destroyer. i think twitter is the exact opposite. when you think about they have 1270 million users, let's say 50 of them are bots, fakes. i bought it at 3865 prior to the q2 print a couple weeks ago, i actually added to it a little today. i'm not telling you this is something for my grandkids, i think there are some legs to the story. >> speaking quebec of the participation and early stages and also engaging the media, justin bieber yesterday apparently on twitter. >> blowing up. >> blowing up, ultimately. >> shocked, called him a thug. >> there are valuations that don't make sense, this company is not an engagement. they post selfies, there is no commentary anything.

to me i think it's ridiculous. so when you think about it, guys, $27 billion market cap, facebook paid 19 billion for an app that has no sales. >> ryan, the man likes 26th. have a look at this move. kate spade is this an opportunity to boy into kate? that is next. plus one analyst says apple smartphone market share is going to take a major hit. find out why coming up on "fast." sthis billboard down? people find out state farm does car loans as well as they do insurance, our bank is through. good point. grab an edge. look there's two guys on the state farm borrow better banking sign. nope for real there's two dudes on the state farm borrow better banking sign. [ reporter ] breaking news from the state farm borrow better banking sign... we're seeing two men that have climbed the borrow better banking sign gentlemen please get down from the state farm borrow better banking sign. phil get the hose. okay he's getting the hose. alright, let's go. [ male announcer ] talk to a state farm agent about car loans that can save you hundreds. that's borrowing better.

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a major bust in retail. take a look at kate spade's massive interday reversal, reporting an increase in margin pressures despite beading on the top and bottom lean in the second quarter. let's write in web bush securities karina freeman, you like this company, you like this stock. would you say this is a buy opportunity? >> absolutely, it's a buy opportunity. we think it's an overreaction in the line that said they were potentially shifting their fiscal year 16 ebitda mar jen goal to fiscal year '17. they didn't say it was

unattainable. they warned that perhaps there could be that potentialiality. >> we seen this with mike raleigh kors, investors are looking past the double digit com store sales growth. kate spade 50% in america alone and worried about the third year discounts for a long time. >> revenues up 50%. comps exceeded whisper numbers 15 to 20% to:30%. we still love this store. we think there is significant top line movement driven by same store footage growth of about 40%. when you compare that to kors it's dif definitely at a better place trajectory. >> karen do you consider dipping into this? >> not quite yet. it did seem like an overreaction. i thought it looked leak they had a failed drug trial in the middle of that call. but the who el street was very positive on this. with good reason, they have been

putting up splash numbers who is left? i wouldn't be surprised to see a lot of reduce, sell, neutral. who is left? >> well, the kor's story hasn't changed. in fact the kate spade business the kor brand is surpassing expectations. the real drag is the kate estate brand a fledgeling start-up mode, all investments. i don't think the kor story has changed at all. >> thanks for joining us. a big mover day up 10 harris after any e earnings from web bush securities. let's trade it. container, what do you do? when do you dip back in here? >> if it is another awful day tomorrow, it was gigantic volume, then i would step in i think would be a fair trade >> dan. >> interday reversal on a company this size would scare me, somebody is liquidating. it's not just "fast money." i think like karen you want to wait another day and see it get

washed out really oversold. >> we have earnings from michael kor's, kate spade, which is the best of the bunch? >> i'd bring ralph lauren into it. that's the reason i like it. ralph lauren grew 3% last quarter. people weren't expecting 40%. i think you so to be careful of comparing kate spade and michael kors, kate made is keeping a narrower approach to her business an not promote and give huge discounts on retail. so to that extent i think it is an interesting play. why reach out to these crazy multiples when you go for a best of breed. luxury retail globally is kicking it. it is not sensitive at all right now to what is going on geopolitically. >> we'll see what happens tomorrow t. stock is up pretty big in the last year. coming up, are two of the world's dominant smartphone makes i makers about to lose on on global market share? whether there could be trouble ahead, apple and samsung next.

don't look now, dan nathan revised his grim reaper suit. the next victim of the triangle of death trade. sounds scary. >> it is scary. what's coming up next. >> way too happy. >> "fast money" means trading. .

the music streaming, don't stap, dan has his eye on one stock that has entered the quote triangle of death. with that scary introduction, dan what are you looking at? >> it's kind of new to the

program. the real issue of the triangle of death is it exist e exits to the downside, we have the chart of pandora, you look at this thing, it's 35% off those all time highs. it's a textbook head and shoulders technical formation here. here's the thing. it moved down to that downtrend in place sense those highs made earlier in the year. if it can't break out, i would be looking towards 22. here's the thing, if they have a repeat of some of the metrics as far as usage and if apple does what we think they're going to do with beats an rekind of invent online streaming music, these guys cousee, you know, some real bad trends over the next few quarters. this is not a stock you want to be long. i think you have to be careful in the low 20s. >> that gets taken out. >> that's the thing. yesterday, there was a reporter mentioned they could be a takeout candidate. it's giving all that back. i don't think people believe it. i think the takeout space, spotify is probably top on the list not pandora. >> we will put your triangle to

death out. apple andsomesung in the global market. fitch projecting global smartphone shipment market share will actually decline for the around 25% and 14% respectively by 2015 and that is down from 31 and 15% this year. fitch expects the global giants to take a beating as lower priced handsets become more popular in emerging markets like china and india. let's bring in our senior research analyst, who is in studio, a treat, tony, do you agree with fitch? we've heard this before the chinese rivals if particular are taking market share from the big guys? >> look, this is the tale of two markets. we have a low end market growing extremely quickly. we have a ma sure high end almost luxury market that really isn't growing. so the mathematics of that suggests apple will lose share. if we look back waerlds, the smartphone market grew about 40% last year.

the high end mark, phones above $1300 where apple placed exclusively. >> that grew 10 percent, so by definition apple -- >> you say apple, does that mean you expect samsung to sacrifice margins to compete with the local rivals? >> i think invarably at the low end apple will have to get aggressive to be more competitive. this is analogous to the pc market place. dell was king of the hill. at that time they had 18% market share and mar jens. we saw them come in, be very aggressive on price, dell lost share, mar jens went down. i think samsung feels that same challenge sample thanks for coming in. this commentary, low, i think is swg we would have said two years ago. although, they were a low cost player, they are now completely out of business. their sales were up 50%. these guys were fighting hard to

maintain margin and not drop down to price. what do you say to that? for apple, it hasn't been crucial to this point. they have been more concern about growing the way they believe they should. >> appetizing i think if we use the pc analogy, what happened for players like dell and hp, they took it on the chin if you look at the apple mac, it's game share, prices have gone up, the margins have gone up. apple has a protected and unique ecosystem. it's difficult to switch from a samsung to an ios phone. so apple i think ultimately will have a positioning in the marketplace where yes it will have lower share like the mac has 6% unit share today. i think the iphone will be a premium product. it's difficult. you have to repurchase them, et cetera. so i do think the difference in

ecosystem is really important. apple as the iose and those switching barriers were low. >> they were grouped together, if you look at the market share change, that was not different. does that factor in the new iphone and what do you think about total dollars, not just market share? >> i think part of it is that apple will have this protected high end whereas samsung gets about half of its sales from low to medium size phones and low to medium price phones, therefore they have to slug it out a lot more. the high end smartphone market is largely a replacement. people have been waiting for this phone. there is a lot of anticipation. >> the prices will be the same for, you know, a similar size screen but for the larger screens, we think that will be

$100 more. >> good to see you, tony, thank you for coming in let's trade this, everybody here has the trade on apple. all right. >> i'm sort apple. everybody we talked about. everybody knows will is a huge upcycle coming. they have this ecosystem. we know about that. i'm concerned after that, what st. next catalyst for apple. we had a company able to pivot on a dime inventing categories, now their huge invention is a beggar screen. >> that's the whole point. the refresh cycle. >> they have the home, the smart home, all the medical devices. >> here's what i think is important about apple because look at india, the second largest handset market in the year or the potential. apple has gone from .8 to 15% of this market. samsung has gone down. for now, let's not talk about apple five years out, the market will not price that in.

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[ music playing ] >> still ahead on fast money an ugly day for energy. we got someone who says it has a long way to go, fall even further down 15%. the expendables has been seen by already more than 2ple people it isn't even in theaters yet. we will talk to the vice chairman of lionsget a how this company is fighting illegal download of films coming up. cisco reports earnings tomorrow. we will tell you what kind of move traders are expecting after that big report.

we do start with energy, by far the worst producer of the day. it helps ease concern over the potential disruptions in iraq and in libya. commodities trader morgan downey is the ceo of money.net. he says oil has more room to fall despite the chaos that is happening in major oil producers like iraq, number seven in the world. >> yeah, but one thing to bear in mind for investors and oil traders, oim oil has a certain level of tension, you rush both of those now. prior to that, you had libya and nigeria, so the oil market is at a certain level of geopolitical tension going on, something investors have to be comfortable with. the fact that we are not rallying on the situation in northern iraq at the moment is a fairly strong indicator and thus we are headed towards lowering oil prices. >> what about the demand side of the equation? that's lower than the people are saying. >> the iea cut their demand

growth for the coming year down to the slowest level in three years. so the amount, people are not increasing their consumption. >> so, morroccan, we talk a lot about the refiners here. you are talking oil going down to the mid-80s, brent, wti differential, do you think that widens out and wti goes lower? what do you think? >> i think that over time that differential is good and pharaoh as in over the next one to two yeempls you got a lot of transportation changes in the u.s. that will cause that to occur. i think over the short term, will is noise, brent is up in the north sea. russia is one of the major influences on the brent price and the u.s. is obviously wti. so over the short term, you see a lot of volatility with the russian situation. although, russia is more of a gas situation than an oil play. the last thing russia wants to give up is its oil revenue, they're okay with using that as a weapon as opposed to their

oil. that wti brent spread will move a lot. over time, the next year, two years ago you will see that convergence occur between the two greats. >> let me ask you something on the demand diminishment, is that all economically driven or some of it switching and greater efficiency? >> it's almost all economically drimpblt it's not a luge reduction in demand. it's a slight reduction in demand forecast by the iea. but the efficiency continues to creep higher. people are buying more and more efficient cars every year and so, but there is a trend of that efficiency is eaten up by a lot of asian companies growing in chosen, brazil, there is almost no switching occurring, a little at the edges, we got middle eastern tesla is minor in the oil market and the oil industry, but those kind of alternatives, electric cars and natural gas are still very, very small parts of the oil industry. >> all right. morgan downey, thanks so much

for joining us, ceo of money.net. time to trade it, energy got beaten up pretty hard, guys, who has the trade on production and expiration companies. >> i leak the move in refiners. i should say i like the move back the way refiners are going, u.s. steel has a major cost advantage in terms of the product fee. i think the big integrated names, chevron, total on the russian news is way oversold. these are not names i think you trade up. i think they're names you boy and hold. >> it's crazy crude is down 10% on the highs of the year, in june when we learned about isis. >> you saw brent brake major trend lines, talking two, three-years-old, so you are starting to see the move into the oil market of, hey, ma eb the demand isn't there, think about it. if, you know, russia is not going, as morgan said, is not going to give up their oil revenues. that's the last thing they do. and if anything the saudis will

most likely up prediction as much as they can to try to smoke out some of the other players. >> all right. it is time now for pops and drops, the big movers of the day. we will start with you. >> that's not a pop. that a drop. intercept is up $100. dan was all over it saying do not buy this. so you know, up $39 for a benefitary situation that worked out the way they want it. >> that ain't so great. i'd stay away. >> we do have another drop here. chosen sol laer. tim. >> the excel maker, they are interesting companies. the problem is they bought a big u.k. solar producer. -is something a little out of their bailiwick. i don't lake it. i want it to stop. >> nuance down 9%. >> not a subtle drop in nuance here. you got. it's all because of earnings. i think on this you have to wait

a couple days so see if we have support here. for now stay away. >> dan. >> they put up odecent quarter. they reaffirm guidance of the year, revenue guidance, high teens. the stock is down %. i think the company basically put themselves up for sale in may. the stock rallied 40% on a multi-year low. the stock is sitting at very, very important long-term support around 30. it's below. that you want ob careful if you are looking to pick it up as a bargain, who knows what the outcome is, what morgan stanley will find, if there are no buyers, it's going long. >> some companies and sectors have very few options for growth. on mad money last night, jim cramer said there is one way companies can grow in this current environment. >> takeovers need to happen because takeovers can spur the growth that's required to ignite this stockmarket. >> so we're asking, what companies are ripe for consolidation? let's go around the horn. tim. >> well, amc network, this to

me, everyone is paying, paying, paying for content. these guys would be for the different. walking dead, they certainly have a lot of big hits. not ones i'm watching, by the way. if you are taking over a company, you want to buy a company, obviously, at an attractive price and take over a company that's generating decent free cash flow yield. i think the consolidation in this media pace, the content space continues, these people have to be on people's watch list. >> dan. >> i will look at google here. it will be not the same reasons that tim kind of identified. if you are the king, one of the biggest companies in the world like google is. are you so levered to one product for your sales, i mean, you have to think about diversifying. i will say this company has $65 billion in cash. you look at what their problems are it's real time search. they're doing it on twitter. this company should be bought by

google. >> that will assure them a foot print in the realtime search for the next ten years. >> you think google will buy it? >> they are consolidating data. the google and the buy the twitter. >> we look at retail lots. one setting up foisly for an lbo would be children's place. however, i own it. >> that is not the reason that i own it. i like the company. but i do think it having pulled back a little in the last couple of weeks that i don't see an lbo in the short-term at all. i think the fundamentals. >> posh me it's control force. we talk about that they were worried about 72 or 73 degrees is the optimal temperature. they bought it because it's a portal into the hole. who else needs a portal into the home? certainly apple has a ton of

cash to spend. it hasn't worked out that well. i still think it does well. however, container brought up an excellent point about the credit markets. >> that has really fueled this mna bomb, the financial engineering bomb. you have seen over the last couple weeks a massive massive outflow. this is rbs's junk bond indicator in europe and the u.s. they're saying it's overvalued in bubble territory. goldman did a great piece on how the move out has been a six sigma move out of a high yield and there is a huge correlation between performance on high yield and whether or not retail gets in and out of it. so if you start to see this area blow up, i think this is the biggest risk to the mna and the biggest risk to the market at this point. >> that is the credit cycle. >> the credit cycle. >> and the window closing. >> higher yields. in a high yield area, are you not getting compensated for any credit risk. >> or interest rate risk or any

risk. there is nothing. >> nobody mentioned food companies, i did that whole report. >> so you can answer. >> a lot of analysts are looking at companies like white wave growing very fast to be potential targets like kellogg and general mills. >> how about pen cal, a part of this big fight for brazilians and tyson and i think pen cal is a target. i on it for that reason, i own it. will is no question they will be spining off, procter & gamble will be spining off. >> campbell's soup, that's another one. >> let's talk about the food trade. >> we just did. >> coming up, will it be another blockbuster summer for lion's gate in "expendables 3" premiers this week. more fast coming up next. .

. >> welcome back to "fast money." we're watching shares of cree, light i miting di die diodes.

the first quarter guidance came in below wall street expectations, cree shares are down over the trade. >> getting hit hard, thanks, dom, mr. beaks, you have a trade on them. >> i think you have to watch on the $45 level. this was a great trade coming into this year. a lot of people didn't recognize led lights were the only ones that would be sold. >> that is already in the stock. we are throwing at 45. maybe that can old. >> lion's gate coming off a solid earnings report as it gears up for expendables 234 friday i turns out 2 million people have already seen it for free ahead of the requirement of the big budget film joining us, have vice chairman of lion's gate, michael burns, how does this happen? >> we den know how it's happened. we will get to the bottom. it happened with "taken" and

"wolverine" and those movies did okay. so we feel very good about actually the movie. it comes out on friday. it should be seen on the big screen. >> how do you feel about ticket sales going into this, the fact that already more than 2 million people have seen it. >> it's all around the world, maybe it's 500,000 watching four times each. it's hard to know for sure. we feel, yes, it may be effective at the box office, again, it's happened before. it's a little like whack a mole. we will vigorously pursue these guys. >> i know we were talking consol takes mna. certainly the sector is ripe how do you view what's happening in your industry in terms of consolidation? >> i think they will be consolidation in waves and happen every year and industries, if people figure out what the scale are.

i think you will see digital players in the content space that aren't necessarily in there besides distribution. we're a pure content play. we have done a good job building a business over the last dozen or so years. we have 16,000 titles. we are big in the television and the movie space. >> yeah "orange in the new black" is success for you, tell us how your recent success has been. >> we are excited about our new show manhattan. we aired the next day on hulu. every day there seems to be another content. that's a good time to be in the content. >> you are hitting on all cylinders, let's talk about china and ali baba. this is unbelievable exciting. in terms of scale and potentially reaching an audience that already has you, there are concerns and risks of operating chosen, talk to us how that's developing, how excited you are about that as a way to really

seem liable. >> if you take a look at the revenue out of china, even through china, india, 3 billion people basically zero revenue. a bunch of movies and television shows streaming. we have a relationship with ali baba. we are excited on kabam, our new social mobile game for "hunger games," coming out before the movies. again the world is smaller. that's a good thing for us. >> content companies are getting in battles with amazon. we soon disney as the latest example. does amazon have too much power here when it comes to ecommerce? >> i feel like i'm cheating on melissa cheating on you, sarah. >> we won't tell. >> she'd like to know you referred to as cheating on her. >> we feel that look, it's nice to have more than one player. its nice to have through the electronic sale comcast is picking up good market share. so you always want to have the

content provider. again, we're like the benevolent arms dealers, we'll sell to anybody. sometimes exclusively in many cases non-exclusively. we're noting a nostic to platform and technology. >> michael burns, good to see you, we don't want to tell the vice chairman of lion'sgate. who has the trade? >> it doesn't get you excited. the story does. "divergence," what's going on in the entire media space and the multiples pushing up everybody, i think you have to be at least neutral. i'm very positive. >> all right. coming up, cisco earnings on deck for tomorrow after the bell. we'll break down the action if that stock. how to trade it after the break .

[b♪ll rings] time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade. . cisco reports earnings after the bell tomorrow. some traders are betting the stock can move as much as 8%. dan is at the smartboard with today's "options action." sedan. >> today options volume ran a little hot almost one-and-a-half times average daily volume, but

there was one line the most actives was the september 27th calls, about 10,000 of them traded for about 20 cents. what's interesting about this strike, the largest strike of open interest in about a month or so ago, there was about 50,000 of them were bought also for about 20 sens cents, so when you think about these, this break evens is september 27 expiration, if you look at the one year cart here that, break even is right at the 52-week high. if you look at the five-year chart, it's also getting back to a level that it has not seen in many years. i will make one point. the applied move in the options market is about 5%. it's moved on average over the last five years 6.5% t. last point is this stock is at a point where the nasdaq made 14-year highs. many large cap peers, microsoft have lagged. this stock lagged dramatically here. so this could be a way for a long holder of this stock to lever up for a big upside move.

>> we will be sure to follow it after the bell tomorrow, cisco earnings. by the way, you can capture more options action 5:30 p.m. check out our website options action.cnbc.com. your first move when we return on "fast money." .

here. your first move when we return it is time for the final

trade. let's go around the horn, tim. >> nokia handsets no more, they announced good numbers this week. a catalyst for the stock. get long on the stock again. >> dan. >> twitter is interesting, it's not ready for a potential acheout by no means. they demonstrate to continue to improve on those metrics, the stocks move back. >> you want to watch kate spade, if it opens down tomorrow, then it's a chance to buy some of it. if it opens up, let it go. >> bk. >> i think you have to watch this space. 91-and-a-half up to 93-and-a-half that was a support. it's now resistance. i sold some more today. that's my final translated. >> thanks, guys, i'm sarah

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