inflation here. >> that's -- i think it's a long way out before we get to that point. in europe, that's what we're looking at over there because that's global deflation in play all the time. >> that's my homework for the weekend. "fast money" is coming up in a minute with melissa -- i mean, sara, what is on tap? >> filling in. we're going to speak to grasso, who was asked a question by mah on the stock florida. "fast money" starts right now from new york's time square. a very big day on alibaba, opening $92.70 a share. well above the expected pricing, ending up 38% with a market cap of $242 billion.

jacque moss speaking on cnbc earlier. >> there are so many things you have to do to our ecosystem. not only we're helping small business in china. i think small business in africa, in southeast asia, europe. if we want to acquire this and buy these companies. can help the ecosystem. >> talking about the ecosystem of alibaba. our own steve grasso spoke with jack ma before the opening. joining us now on the fast line. steve, good to talk to you. what did he ask you? >> my new best friend, jack, was actually -- he was really interested in the pricing mechanism. how it starts from 68, where we were going to open it on the floor. what that -- what that whole process looks like, who we were talking to, the mutual funds,

the pension funds, what they were saying and what prices they were talking about as far as supply and demand. he struck me as a student of the market. it was really -- really nice to see. >> yeah. and it's interesting because he sort of got a word in with bob pisani, who was inside post 8 inside of the open. he said, i'm learning. i'm learning a lot. clearly this bet on this company has a lot to do with him. his vision for the company, the former english company who started this in his apartment. a very much -- to see him in that humbling moment right now and to see him on the floor of the new york stock exchange, it was reshocking, wasn't it? >> it's refreshing, too. what's kept investors away from this issue has been the lack of clarity or investing in a chinese company. and i think he was able to set a lot of those fears aside so i think the stock has more room to the upside.

a lot of people were nervous about it and he put their nerves at ease. >> steve grasso, thank you for the added color from the floor. where was the alibaba trading? >> let's talk about the pricing mechanism jack ma had so much in. here are some interesting stats, 320 million shares sold to the public in this ipo. total trading volume today, 71 million shares. not the entire ipo but still close. the bulk of trading came in just the first ten minutes of trading, over 54 million shares traded in just the first minute around that open. around is11:50 a.m. it dropped off and then picked up noticeably at the session lows. that's when alibaba dipped below $90 a share to $89.95. the reason why that's important is at that point, volume spiked

up. about 5.7 million shares traded in just that one minute when it dipped to the lows around 1:20 p.m. eastern time. some think that was the underwriters coming in to stabilize the stock around that $90 level. we closed out at $93.89. the reason why i bring this up is because after everything was said and done, guys on the desk here, the average trading price, the average weighted trading price at the end of the day was $9 2.88, just 18 cents higher than the opening trade for alibaba. kins dense or mechanism, the volume weighted average price was pretty much the exact same as opening trade at $92.70. >> it's brian kelly. i'm curious if you got any sense of what kind of trader was there today. a lot of day traders, electronic

traders in there. i know jack ma was careful who he placed the initial shares with. who do you get the sense was trading this today? >> you don't get a sense there was a whole bunch of activity in there. the huge rush came in that first -- we'll call it a half hour of trading. out of the 271 million shares, the bulk came in just the first 15 or 20 minutes. which meant anybody who wanted to sell or transact the shares got it done very, very early in the day. when we saw it drift toward session lows and back where we finished the day at $93.89 to finish the day, none of the trading volume spiked unless it was around the lows, $89, $95. it leads to you believe there weren't high hedge funds trafficking. people got it done early and let it flow throughout the course of the day. by the time the day was done, it ended up trading close to its

average price it started for the day. >> thank you for the play-by-play on alibaba's record breaking day of trading. nobody is going to buy it here, right? >> he's going to buy it -- >> is or did buy it first and then we'll talk about is going to buy it. >> i think the stock looks very interesting. back to what dom said, were there flippers out there? they buy a hedge fund and flip it in five minutes? >> absolutely. if you were handed 50%. i don't think you would tell the bankers that and i think a lot of people would shield their hand and deal the syndicate. looking at the stock, went up 50% today roughly from where people were talking about the original price range. for a stock many people thought was priced 40% to 50% cheap, like baidu. this was not a place to chase it. do a lot of people want to own this company? a 68% over the last five years and 80% of the chinese enter met

market? >> you're enticed. you didn't buy? >> absolutely. >> i'm going right to yahoo!. we talked about it. jon najarian put a great piece out saying he expected a wash in yahoo! saying if you couldn't sell ail lil bab libaba, maybe yahoo!. >> was it a hedge or just the fact thaw don't need it as a proxy anymore? >> i think it's a combination of the two. i think if you can't sell alibaba for whatever reason, why not get yourself short yahoo! or take the other side of it, because yahoo! has been a proxy trade. >> the assumption in that is the market hadn't priced yahoo! efficiently up to today. in other words, you could have seen yahoo! spike pore portion at to the move. >> i was surprised. >> it didn't move today and hasn't moved for ten days -- >> you can make the argument -- some made the argument, the higher baba went, the lorwer

yahoo! went. >> it got underneath $40 a share. if you overlay these two right now, you could see -- guy, to your point, it's interesting. ten times normal volume today when you're looking at yahoo!. it's very interesting. if you look at both, as people got nervous in alibaba, they got more nervous in yahoo!. as it alleviated at the end of the day, yahoo! came back towards $41 a share. i think until the options start, in a week, they'll have options trading in here a week from monday. once they don't have those, then we'll find out where yahoo! is really trading. >> it was one of the best days ever. way higher than normal. you bought yahoo! >> yeah. listen, i have -- i missed the run-up in yahoo! coming into the deal. but now that the deal's out there, and it was down 4%, 5% today, valuing yahoo!'s core business at a negative number, yahoo!'s core business may not

be worth a lot but i went in, i was able to buy yahoo!. i think 40.50 was my price. you don't have to worry about corporate issues and -- >> and i leaned on art cashin because he said, they're going to hold this deal at $90. when it got down $90, i added to the call spreads i already had in yahoo!. don't have anything in alibaba. but i added more call spreads. i expect to see this mid-40s, up to 50. and because of that i added to it a lot better -- >> a lot more talk on "options action." shameless plug. for more on the stock, let's bring in rosenblatt securities martin. >> good to be here. >> i know you said alibaba is a good value, good deal. do you still feel that it surged in its opening day to $93.89?

>> it's interesting when you look at the valuation, but where it was initially priced it was about fair value to amazon and facebook. i think those are relevant comparisons, at least as good as we can get. where it closed the day, it's about 30% premium to those. but, you know, the road map here and the runway and so forth in china they can execute on, they can grow into that valuation. i think an interesting context here when facebook went public relative to google, it was a significant premium, a long, long time ago. when google went, it was significant to yahoo! at the outset and grew into that valuation. so, you know, we as analysts, i know this has been a big transaction event, the ipo itself. we need to look and see, what is the company going to do, number one, with all the cash they've had. we've been talking about gentleman ma all day. he's a great spirit behind the company. other people, and i think joe in particular, maggie, the cfo, we have to see how they manage

expectations. they managed it really well coming into the ipo now we have to see -- >> today was really jack ma's day. by the way, he got $4.7 billion richer today between his stake and the shares he sold. martin, talk us through the valuation a little further. closing out the day with a bigger valuation than facebook. a little less than half of google. do you look at the price to earnings and look at something like an alibaba versus amazon? amazon is not profitable and valued much higher. how are you reaching these numbers? >> there are three ways you can value this. number one is on pe. i don't do that right now with alibaba because they may have an artificially low tax rate so the pe may look better. it was only 10% to 12%. i think eventually we'll look at free cash flow. and i'm project willing to within the next year plus.

right now the most tangible way you can look at it on enterprise value to ebida. the upside they have in terms of refuse new growth probably justifies that. admittedly it's less reasonable than it was at the start of the day. they have to dlir, they have to execute, all of those logical things. you're in a framework where it's still, quote/unquote, fair but not cheap. >> that seems to be it is sentiment on the desk as well. rosenblatt securities, martin. >> i would argue there's somewhat of a political premium in this because this is a state-sponsored monopoly. jack ma became the face of chinese business for the whole world. so, i would say there is some -- china certainly is not going to wanted to see this company fail and they also get benefit for being part of that state-sponsored monopoly. i would think it trades at a premium. >> we dint didn't talk about

it's a play on the chinese economic boom and growth story, which has started to come down a little bit. >> kind of the point is sheer size and scale puts them at a massive advantage over their competitors. logistics is what this is all about, their ability to execute is where they're going to hold onto their margins. i think they dwarf amazon. if you look at revenues to ebida 20 times. it's about skashlgs size and move to mobile -- >> and look at where the future of online shoppers are. they're moving in opposite directions in the u.s. in terms of growth numbers. >> i think if you take away one thing from today, this shines a bright light and very good light with chinese consumption story. people think it's about macro, liquidity and momentum. they have it. >> is the iphone 6 worth the wait? the lines outside the apple stores have been longer than we've seen before. deeper dive after the break. we needed 30 new hires for our call center.

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>> home depot revealing 56 million debit and credit cards were impacted by the data breach. the company adding it is stepping up security. this was under the radar. a giant number there. >> they raised up full year guidance to $4.50. good for them. the or thing is i don't think these negative headlines are going away. i'm surprised the stock has reacted as well as it has. i bought this around 90 bucks, i take it at 92. >> that number in terms of the hacking was bigger than target but the stock didn't react. we saw target's numbers get hit and -- >> because target is, somewhat argue, a broken company. i wouldn't argue that. i think tar get a stock you can own here. target has put a lot of money into their canadian business. that appears to be broken. if you look at home depot, i agree with guy.

this will cost them about 30 cents -- sorry, 30 bips if you look at third quarter numbers. very insignificant. it's what we've been talking about the housing sector, a downstream play. >> i think the home builders is where you want to be. we saw great numbers out of that. not only that, we saw wells fargo is going to start easing credit conditions which to me is -- we had our gentleman on the show this week who said, that's the bottle neck here in the housing. so f that happens and you start to hear credit easing and rates stay relatively low, the itb is the way i'm playing it. >> apple because iphone 6 and 6 plus hit shelves. apple fans lining up around the wosh. josh lipton is around the palo alto store that we saw tim cook open. josh, i guess you survived the stampede? >> reporter: that's right. it's interesting because. started with the wave of preorders we saw last week. apple fans got up at the crack

of dawn to order that new iphone 6 and 6 plus. if they they were looking to get their phones quickly, they would be disappointed. shipment dates we saw were quickly pushed back for weeks. preorders for the new iphones topped 4 million in the first 24 hours. that's about twice the iphone 5 initial sales numbers. still, those looking for new iphones right now had to try and buy them the old fashioned way. standing in line at the apple store. from coast to coast around the world, we saw apple customers standing for hours, if not days. at the apple store behind me in palo alto, california, the first customer actually got here on tuesday. >> what kind of job does this guy have that can get there on tuesday and afford a $700 phone?

>> it helps these analysts lead to their estimates. it is important how many iphones apple sells in the first weekend. 10 million? >> you're right. people want to know those numbers. the option activity in there, all very bullish. the stock did pull back late in the day. incredible amount of calls trading. 9,000 contracts trading, 20 million more stock shares trading than normal. a lot of people actively in this name. they're waiting for these numbers to come out, which will take some time. >> with all these phones selling out, lines around the block, why isn't it at highs? >> up 20% -- >> are you not impressed with the product or the stock? >> i think apple the stock. i love the product.

i think it's fantastic. i'm going to get one. i think apple stock in the short term has probably topped out. >> all the people looking to sell the event, i still don't see -- there's no selling. >> right. >> i look at this ecosystem. some people are calling it a super cycle. it's amazing how people pick their spots to choose on apple. when there's a delay in china, these are the same that said china isn't an important market for them. they may have bottle necks in the long term and then people say, who cares about short-term sales. it's about what happened next year when they run out of the next thing. to me, look at the valuation. look at the company. look at the dividend yield and the stock not to go up 20% in the next two weeks. a very well priced company who continues to innovate and pays you a good dividend. >> and bigger is better. people are buying the phones. >> we all know that. >> bigger has always been better. >> next, and he's got a big phone in his pocket. pete spotted unusual activity on one alibaba competitor. latte or au lait?

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apart. it is a company that might have issues. this is why this thing sold off. we'll talk about it on my final trade. >> pop for walmart, hire 60,000 temp workers ahead of the poll hey season. >> and focus on e-commerce. this stock's actually going higher. i think they're starting to turn the corner. >> drop for tesla, down 2% on goldman sachs note saying the carmaker may need to raise capital. >> september has not been kind. i think holds there, you buy when it gets there. >> we saw a drop for s.a.p. after buying softmaker concur. this got buried in yesterday's news flow. >> it wasn't a terrible deal, as far as the stock price would say. it's going to hold around the 74 level. if you're in it, don't panic out of it at all. give it a couple of days.

>> let's get unusual activity alert. you're plugging ebay. >> when you look back to apple when they talked about doing apple pay, it hurt ebay because people thought it would hurt paypal. the november 55 calls, 24,000 traded. by the end, 27,000 were bought. $1.45, in that range. people think it's going higher. >> on a day of alibaba's debut. the giant marketplace. it is time for the final trade. around the horn. tim? >> i sold oracle a few weeks ago. i'm a buyer above 40 bucks. >> ebay options got me, love it. >> itb. >> guy? >> have fun with those animals on "options action" in a minute. good crew tonight. >> a lot of -- >> mobileye. >> i was there for the ipo. very exciting. that does it here for us on "fast" but "options action" is

next with -- >> fast money means trading. everybody has to bring their best information each and every night. the entire trading day is the preparation for the show that night. >> it's idea generation. it's all about giving you a framework for how to look at the market. plus, the world has changed. our show has evolved. i am "fast money." >> i am pete najarian. i am "fast money". >> go to the nbc universal store and order your "fast money" tee. run with the big dogs. better th. siemens trains are not your grandparent's technology. they're something that's gonna change the cities we live in today. i find it so fascinating how many people ride this and go to work every single day. i'm one of the lucky guys. i get to play with trains. people say, "wow, we still build that in the united states?" and we say, "yeah, we do!"

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♪ freak out ♪ freak out >> this is "options action." tonight ifrenzy. consumers and investors are freaking out over the new iphone but could long lines translate into long-term potential for the stock? plus, where are alibaba shares headed next? >> hot tub time machine. >> we don't have those but we have a special report. tesla shares are breaking, too. not quite like that but they are selling off. we'll tell you whether it's a