hammered because it looks like dilma rousseff could win. >> is that the one that lindsay lohan is backing? >> i don't know. >> have to choose between that and the european stress test. what a sunday coming up. thank you, everybody. "fast money" begins right now. melissa lee, what's going on? >> all right, kelly, we've got an exclusive with the ceo of nxpi. he will join us in a few minutes. >> great stuff. over to you guys. >> "fast money" starts right now. live from the nasdaq market in new york city's times square. your traders are tam, karen, and guy. lots of news at this hour. amazon's conference call starting right now. shares are down about 10% after the company missed on revenue and missed on earnings as well. we've got bob monitoring the call. he'll bring us the latest coming up. and a win for old tech. microsoft reporting earnings moments ago. those shares are soaring. 4% in the afterhours session. plus big rally today on positive

news from caterpillar. recov we're covering all this throughout the hour. but let's start with amazon's big miss. guy. >> going to trade, if and when it gets there, that's the time to buy. i think this is your opportunity. this level would be faced with a bit of a double bottom. it obviously has to hold here. the quarter was an absolute disaster. i think timmy was expecting that. i think doc talked about it as well. margins were awful. everything bad, bad, bad. but is it like the netflix quarter last week when they obliterated the stock in the market. that stock has since rallied about 18% to 20%. if it holds right here, which i think it absolutely should, you can see an easy bounce to me back up to that 310 level. >> maybe kudos to guy adami. a stock without a lot of catalysts, and clearly, what they announced today, operating

margins are under pressure. they're growing almost 20% a year. the pattern has been to beat slowly to guide down lower to the next quarter. and a lot of people are expecting the fourth quarter in terms of holiday, in terms of fedex, in terms of shipping. things are at their back on some level, and yet to be delivering here, too much investment, too much investment in other parts of their business. i would not touch the stock. the good news for traders like guy is investor sentiment is probably at lows for at least the last few years. and that's going to work to your favor, if there's any good news here. but right now, i don't see the catalyst. >> so not broken here? they are under pressure. not only do they have this quarter on their backs, but they also have the pressure for delivering the packages, actually in time for the holidays, which is not what they did last year. >> yeah. and since we're saying thank you to everybody who made a great call, so did you about this one. because the pressure, the margin compression here on amazon and their web services is tremendous. it's coming from google, coming from ibm to a lesser degree.

and it's coming from microsoft big-time. so would i say that this stock is dead? no. but this comparison to alibaba where it's what amazon is only potentially bigger and growing -- >> why would one make the comparison to alibaba? >> exactly, that's the problem. >> going after amazon. going after different ways to reinvent themselves. alibaba does not need to. i think it's kind of apples and oranges. >> obviously this one for me is valuation is just sort of way out of control. even after this miss, even after where it's trading, you know, it's a pendulum and it swings. i wouldn't say it's swinging to way too cheap on a valuation basis. it's still way out there. i still think maybe people are coming to -- the emperor has no clothes in that the valuation. great company. love it. we use it all the time.

>> investors don't have patience for companies that cannot post any sort of profits and trade at a high valuation. we've seen that go away. >> and we've also seen stocks like this have moves to this magnitude and have subsequent bounces. i mentioned netflix. a lot of people threw darts against it. a lot of people said the netflix move is absolutely over, which it might, in fact, still be over. but look at the rally in that stock. since that aftermarket when it printed 325, i think it's trading with a 380 handle. >> let's get some more on amazon. bob pack is listening in on the conference call. any silver linings here? >> yes, a couple. five sort of key takeaways. one, north american sales slowed a lot. had been growing about 14%, 15% and slowed to about 5%. look for that to be a focus. international margins were the weak part on margins, down 2.7% versus being about flat-ish. gross margins were actually

okay. $30 billion at the top part of their range. and margins being negative. typically a big, positive season there. so look for a lot of focus on costs, and are they getting the roi and what they're spending on. >> we haven't got on the the q&a part, but what is your first question if you have that opportunity? >> the first question will be how do they know the money that they're spending. they're actually getting an roi. whether it's all these investments, whether it be content on video, spending. how do you know you're getting a turn on that money? what proof points can you show to us? >> why is it, bob, that you didn't -- i mean, did you have that question last quarter or the quarter before? i'm just wondering why now, one is wondering what the roi is on some of these hobbies that amazon has. >> yeah, you know, what they tend to do, they talk about having sort of harvesting and investing periods. every once in a while, they'll

show you harvesting. show a proof point that they actually are getting r oirvegoi getting their margins. it's the perpetual question on amazon. >> we'll check in with you later. amazon sinking in the after-hours. down by 11.25%. now to the latest news on ebola. bellevue hospital is testing a doctor who recently returned from west africa for the deadly disease. meg joins us with more. >> we're still waiting for a lot of these details. we know this is a health care worker working with doctors without borders. had been in one of the three affected countries in west africa in the last three days. had fever, gastrointestinal symptoms. has been transferred to bellevue hospital, which is the designated hospital in new york city for potential ebola cases. we should get the results within 12 hours. right now, we don't know. they're also testing him for

salmonella. also testing him for malaria, flu, other things that could cause these kinds of symptoms. as flu season heats up, we'll probably be seeing more. but because this person was in west africa, there's a risk. >> has this person been out in public? there's been some reports that despite an alleged self-quarantine, that this person was out and about, going to a bowling alley, this and that. >> we don't know from official sources exactly where he had been. we know from doctors without borders that people who had been in those areas, when they came back, they were told to self-monitor. so he was taking his own temperature. he was checking himself out. so when he realized he had a fever, he contacted doctors without borders. they contacted the new york health department. so they're all checking this out and taking a lot of precautions. the new york health department is being very careful to say there isn't a risk of you in the population contracting ebola. >> so we are to understand that he had been in west africa within a certain amount of time. the new cdc regulation, i'm

wondering, would they maybe monitor more closely under new guidelines? >> right now, the cdc guidelines say that everybody has to come through the five airports that we know already took in 94% of the people coming in from those countries. now what the cdc is saying is every single person coming in having been through the countries should be monitored for 21 days. so exactly what they had been doing is what they're doing now. >> okay, meg, thank you for bringing us the latest. we bring up this ebola news because the news did shake stocks a bit. stocks did end the day in full-on rally mode, despite having hit the highs and giving up those highs on this headline here. the dow at 213 points. the fact that we were able to give up those losses so quickly, tim, was that concerning? >> well, yeah, a little bit. have to rally 7%, 8%. if you look at the nasdaq, it's

10%. look at the airlines. if you're going to do your ebola trade, and we talked about this over and over again. it's been a huge opportunity in the last couple weeks. but american airlines, continent continental, reports say bang, big numbers. they're back up almost near where they were september 5th. it says for the broader market after a rally like this, you have to be careful. also, what really drove it this week? it was the ecb. to me, everything on the hearing out of both my contacts in europe and whatnot is the breakdown between draghi and berlin right now is starting to increase. unconventional measures not terribly popular. this to me and global growth were what caught us. we've got good pmi numbers out of europe, but i think you have to be very careful if you think it's going straight back to the old highs. >> what were you trading today? >> we were doing a lot of chips yet again today. traded microsoft on the long side and amazon on the short side as you and i did on "earnings squad." i love how amazon is getting down to these critical levels

that guy and tim have been talking about. broke through that 285 level. it gets interesting down here, but i do still question, though, call it apples to oranges or anything else, why you would want to earn a company that's losing more money faster now than a company that's making money with a different business model. >> karen? >> well, i wasn't on microsoft or short amazon either one. trading today, you know, looking at the banks, we didn't do a lot of buying today. i thought the market held in pretty well. i'm hoping that volatility has started to come down. as we see earnings that will get back to a more normal reaction to fundamentals. i hope. i don't love that risk on risk trade. but i like the banks here. even with them having rallied a little bit, i still think it was way overdone when we had that severe bond move, i guess it was a week ago. >> coupled with the oil move in the same day. >> we spent a lot of time

talking about oils. >> i think tim hit the nail on the head. the fact that we rallied before the selloff over basically a four or five day trading period is probably too much too fast. 1970 should become resistance. what was interesting to me, they've been banging the cell gene drum up 6% today. another all-time high. so there are still parts of the market that are very interesting. so to me, that's what i was looking at today. >> who says pcs are dead? microsoft numbers coming in strong in the last hour. the stock is up in the after-hours session. we've got answers for you next. if you're making payments with your smart phone, there's a good chance your phone has a chip from nxp superconductors. we've got that coming up in a "fast money" exclusive.

microsoft out with earnings moments ago. the stock moving higher in the after-hours session. joining us now is dan ives, who covers microsoft at fdr capital. looks like a great quarter. what questions do you have? >> yeah, i mean, it's hard to find anything negative here. these are stellar results in a choppy ip environment.

the biggest question for him is what are the biggest challenges in terms of turning microsoft into a cloud company. you finally have the microsoft ship moving toward smoother waters. >> it's interesting that you say what will it take to turn microsoft into a cloud company, because even despite the rapid growth of cloud, it's still only about 3% of total revenues. so it's beginning to take a lot in order to turn it into a cloud company, at least on a revenue basis. >> it's going to take a lot, but you finally feel -- and you've seen this in the stock. this is like a pilot on a plane that's coming into the cloud. you've got office 365, du jour, and the windows ten block from coming out next year. you finally have the products, the strategy, and the ceo that can take microsoft into the renaissance of growth. and you compare this with the dark days we've seen in tech earnings with ibm, oracle,

s.a.p. it's a stark contrast and i think it speaks to microsoft, you know, potentially entering over 55 community from the stock perspective. >> as it migrates from software and more and more towards consumer hardware, how much should we get concerned about gross margins, which we did see narrow to 63.4% to 72.2 in this quarter. >> it's a concern, but i think you've got to look forest to the trees. ultimately, you want to see the growth here start to get away from the traditional pc environment, and i think it's one where they managed the street well. but from a financial perspective, and that's when it could start to pick back up. it all comes back down to growth. i mean, that's why the stocks move. that's why guys -- you feel like the product and the growth is there. and especially in this choppy tech earnings season. i mean microsoft, i print his earnings out and frame it in my office. >> all right, we'll see if he takes your advice on the redecorating. thanks for your time.

dan ives coming to us from fbr capital. he made a good point about the earnings before microsoft. they were not very good. >> they're operating. >> this just shows you how lousy ibm really was in my opinion. not a great job by me, although it was a decent ride. you wonder at what point does it become expensive? i don't think it's expensive forward earnings. rick thinks it's beginning to 50. it got close in early september. feels like it's going to print there now. >> 47.57 was the high. we see that again? >> yeah, i believe we'll see it tomorrow, absent another big whatever, because it's basically 47 right now. touch 47 twice in the afterhours. pulled back just a little bit. i think you squeeze the shorts just a little bit. >> still got the deadweight of your former girlfriend, nokia. >> talking about nokia, for all

the people who don't know who i was dating. i dumped her a little late. i think this stock is trading at around 16 times 2015, based upon at least where the street has it. that's not cheap. and for just -- i wonder where the catalysts are in the short term for a stock trading near its highs. the one thing i like about this is i see the street in the fourth quarter is looking for big cap defensive tech. that's worked much of this year, even if their earnings hadn't been spectacular. there's nothing to run away from in terms of their earnings here. >> we've got an earnings alert here on pandora. let's get to dom. >> those shares are down about 7%. the company is posting better than expected third quarter results. the internet radio company said that total listener hours rose 25% to 4.99 billion in terms of hours, while active listeners gained about 5% to 76.5 million. those numbers, both of them, were both just slightly below analysts' expectations. as a result, shares down by about 7%.

so good top and bottom line numbers, but some of the dug into metrics for listeners and active users, that type of thing may be what's sending those shares a little bit to the downside, melissa. back to you guys. >> devil's always in the details, right? >> yeah, and it was significantly lower than this. their guidance is decent. that's the only positive that i was able to pull out of this call, was that the guidance forward is pretty decent. but this is a crappy quarter. there's no two ways about that. it's about a buck off the session lows. that's the good news. >> at bad valuation, there's just no room to miss. it's a dangerous. >> the stock's been cut from 40 down to 21.5. they are growing their listener hours. >> you like it? >> i like it. >> you buy it? on this pullback? >> look, i don't need to buy the stock tomorrow. there's a lot of reasons you need to wait and see. but they control the radio market. the switch to local ad revenue is what's happening for them.

yes, they're doing it. >> at the beacon theatre, by the way. big fans of "fast money." >> it's amazing who likes us. it really is. it's been a rough month for the bank sector. the financials etf trading lower by 2% since the start of october. is a bigger move lower ahead? we've got that trade after the break. from record-breaking highs to major market meltdowns. every night, the "fast money" team makes sense of the trades. serving up in-depth analysis and actionable advice. >> i don't think you want to be in large u.s. multi-nationals. >> all to help you prepare for the next trading day. >> it's not good for the stock market and not good for the company. >> this is "fast money." >> we're in this huge deflationary period. i think interest rates bear that out. >> have a markets question for the "fast money" traders? tweet us @cnbcfastmoney.

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coming back any time soon now. >> index up 6%. >> boom. yes. russia's google, whatever you want to call it, trades on the nasdaq. this is a stock that has been beaten, mostly with russia because it's a fantastic company who beat on earnings by six cents. you don't need to buy this one tomorrow after this move. i'd watch it. >> drop for royal caribbean, down 2%. >> this was on earnings, a little bit disappointed for the quarter. guidance also a little bit disappointing. maybe a little bit of ebola mixed in there. >> crazy. a pop for lockheed martin. >> this is interesting. revenue miss, and the stock trades up today, 2.5%. liked it for a while. it wants to go higher from here. >> one trader is making huge bets that one sector is about to run into some serious pain. mike coe is here with the action. >> there's an old signing that

you should buy the dips and sell the rips. but you probably want to take a look at doing the opposite. a big institutional trader was doing that in the xlf today, which saw nearly 1.5 times its daily put volume. where we saw that activity was a big roll of the november 21 to the december 21 puts. paid only 17 cents for that. basically that would put the stock, as you can see, at levels that it hasn't seen since the beginning of the year. actually, i think what's going on here is people are taking advantage of the fact that options are now getting cheaper again with stocks elevated, now is the time to put on some protection so you can ride into the end of the year and breathe easy. >> thanks for that, mike. check out our live show, 5:30 p.m. eastern time tomorrow. coming up next, the amazon call officially halfway through. the stock is down nearly 12% after hours. we've got the latest headlines fresh from the call after this braechb break. the chip just reported a blowout third quarter. the ceo of nxp semiconductor joins us live for an exclusive straight ahead.

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amazon shares sinking on earnings. let's get to julia. >> amazon shares tumbling as its investments and growth weighed on its balance sheet. the ceo focused on just how valuable those investments are for customers, talking about the improvements, adding capacity to meet higher holiday demand. he said while growth has been softer, they continue to see a huge opportunity. one area where they're focusing is on conversion from physical media to digital media, saying they're working on a number of different ways trying to address the softness, but they did admit the challenges in the shift from buying to renting. he called out the issue of textbooks, in particular said that's one area which really hit their immediate revenue. as to a rather snarky question from an analyst about what metrics amazon does care about, he said cash flow and return on invested capital. >> thanks, julia.

guy, it sounds like there's too much stuff going on. going to digital media. the fire phone was a disaster. >> the euphoria of 403 when everybody was all lubed up is similar to the trough sentiment now at 277. and this is going to come back and bite me, i know. but i say you buy it at 277 with a tight stop. that stopped being the level that we outlined. the low was 18 or so months ago. >> into the holiday, too. >> listen, this is either going to work in a week or it's not. so forget about the holiday. this is over by probably halloween. but i think you're looking for a bounceback to that 315 level. you stop below 270. >> the launch of apple just last month introduced many people to the notion of paying with a phone for the technology behind ship-based payments has actually been around some time. nxp semiconductors maybes chips for smart phones and has supplied hardware for more than 2 billion bank and government i.d. cards. joining us for an exclusive

interview is the ceo and president of nxp semiconductors. great to have you with us. >> thank you for having me. require know you're not going to say iphone. i know you're not going to say that you're in it. but every analyst report that we read says the line of portable and computing in the quarter was gang busters on a quarter on quarter and year on year basis. year on year up 60% because of a certain rollout of a certain phone recently. how shall we look at that line item in your balance sheet in future quarters? >> we've been really fortunate to drive a lot of growth. we've grown it two or three times the rate of our semiconductor peers, so i think that's really the strength associated with it. if you look at our revenue for the current quarter on the year over year basis, it was over 20% growth. our earnings per share was over 59% growth. so i think we've demonstrated strong performance.

extending the battery life associated with the phone. one of the most convenient things is making sure your phone is available and doesn't run out of battery. we have a product that extends the battery life which is very significant. had some significant interface parts. and then obviously, when it comes to mobile payments, we are the leader and will continue to be the leader in providing the contactless banking chips, specifically for china with a huge rollout taking place in china. >> i want to ask you about that, because in layman's terms, it's chips that go into these bank cards in china. so if you even think about existing cards, that must be a huge market. and then there are probably even more cards that have yet to be issued in a place like china that doesn't fully embrace the use of credit cards as much as the u.s. how do you look at that potential at this point. >> it's a significant growth opportunity, but we're well under way. in fact, the china union talked

about they've actually shipped over a billion cards to their users. we think there's still 2.5 billion to 3 billion users there associated with the credit cards. by providing that fundamental security gives them a distinct advantage. one of the things that happens in china, they can dictate it so it rolls out at a much more rapid rate than in the u.s., where you know there's discussion about the implementation that will probably take place over five or six years in the u.s. because it's not dictated by a government organization. >> do you feel like you have a leg up in the chinese market because you're not a u.s. company technically? >> possibly. i think the really key factor for us is we worked with them on the technology. we're the leader in the technology. we have about 60% or 70% market sharing contact, and by providing that technology lead and allowing them to look at different provisions they can do to expand to offer different opportunities beyond just being used for payments directly. but, you know, for merchandising and e-telling associated with it is one of the factors that's

really allowed us to play a significant role. >> i.d. is your number one revenue contributor. number two is automotive. so people always think of mobile eye. but you're working with some of the suppliers that supply to the major big three automakers. >> exactly. we have the first design win in the industry in vehicle-to-vehicle communications with delphi back about a quarter ago, where they'll put in place communications in a high end u.s. automotive manufacturer for safety reasons, so that it can actually warn you, you know, three or four car lengths in front, if somebody puts on the brakes, you'll get a signal so you can begin to stop then and not wait for seeing the red lights behind you. we think it's complementary and we think it's clearly an opportunity to see significant reduction associated with accidents, save lives and reduce the expenses. >> maybe qualcomm on that win,

correct? >> we beat a significant competitor. and we won for one significant reason, because of the security. you talked about our i.d. business. it's really a security business where we ship encryption technology, we ship it in the form of a semiconductor, but it's really encryption software that we're shipping and the reason we won that design win is because we offered the security that delphi and this automotive company were looking for that our competitor didn't have to offer. >> we're going to have to leave it there, but it was great to meet you. >> thanks a lot. >> the ceo of nxp semi. this is one that you've been in. >> yep, and i love it. >> mostly because of muirfield communications. >> and last week when microchip had that warning and people were panicking and basically throwing babies out with the bath water. rick's stock was down to 54. today it's $10 higher. came back like that on that v-shape bottom. i still like it here. i think it goes higher into the end of the year. >> this stock still offers value, too, especially some of the smaller companies. but when you look at their free cash flow generation, this is

one of the catalysts for the stock. the problem is the charts. it looks like 72 bucks. it's probably capped. i'm neutral here. >> he's done a fantastic job in his tenure there. i like it a lot. >> doc just mentioned he spent 53.5 to 64 where it traded to. i think it can back and fill a little bit down to 59.5, 60. they have their analyst day on november 5th. i think you want to try to get yourself long ahead of that from here until then. i think you're going to find it at 59.5. still ahead, tim seymour channelled his inner mick jagger at last night's hedge fund rocktober fest. stay tuned.

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some unusual activity. >> exactly right. this stock hit $94 middle of september. cratered last week around $76. today they stepped in buying january 87.50 calls. i can certainly see why people would do that. they bought them in really big numbers, exceeded the open

interest. i bought it with them. >> so you bought prudential in this. >> i bought prudential costs. >> hedge fund community came out in droves last night for the oktoberfest leg to stand on foundation. tim seymour took the stage for a set. >> wow. i didn't go, unfortunately. i couldn't make it. it was a highlight. do you know how much money rocktober fest raised? >> this journey continues to build up their popularity. they are truly making a difference right now in young people's lives around the developing world, which means obviously you're changing their lives forever at a time when you actually do that. for a guy that travels around emerging markets, this is particularly gratifying to see. >> we should know that steve leishman joined in. there you have it. he has a great band, by the way.

i've seen him a few times. >> i think steve and i need to actually jam. >> together, right? i think that would be great. >> steve is unbelievable. one of the class musicians at that place. look at him go. >> good work. good work, steve, and of course, our own tim seymour. >> it's like a geritol commercial. >> is this the pot calling the kettle black or what? let's move on to the final trade. >> in terms of this market, i think you can trade the airlines now. sell united airlines at these levels. i think caterpillar's numbers, too. my final trade is sell united. i think there's a lot of names like that that have rallied back. >> neighbors. it's one of those oil stocks that's been hit pretty hard. down 25%, 30% in the last month or so. we were buying that one today on unusual activity. >> karen. >> i like finish line. they got oversold. and i think it's good value, right here.

>> guy. >> buy the flush in amazon. buy it here at 278. you add to it at 285. pull the ripcord at 315 profits. take a loss at 270. >> either going to be a great trade. >> good call. >> you and gary busey are tight. thanks for watching. that does it for us. catch us back here tomorrow at 5:00. but don't move. up next, there's a new type of crowd funding that's attracting thousands of investors. "cash crowd" takes over after this quick break. stay tuned. they're still after me. get to the terminal across town. are all the green lights you? no. it's called grid iq. the 4:51 is leaving at 4:51. ♪

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welcome to "the cash crowd", where entrepreneurs who are crowd funding make the pitch of their lives. first let's get you up to speed. >> now there's a new type of crowd funding, where private business owners can raise the money they need to grow by offering equity. it's called equity crowd funding. to invest, you need to be an accredited investor.

what the s.e.c. defines as individuals who make at least $200,000 a year, or have a net worth more than $1 million. not including your primary residence. there are dozens of platforms doing this. since equity crowd funding became legal in 2013, it's been used by hundreds of companies. tens of thousands of investors have already helped raise millions of dollars. and now, we're going to introduce you to entrepreneurs who are raising money through crowd funding at this very moment. >> there's a lot at stake here for us. >> and put them face to face with some of the top business minds in america who may want in. >> we're here to raise $500,000 to a million. >> they've got 30 seconds to pitch their company. >> i'm all in with whole light. >> to the superpanel and you. >> i'm christopher hubbard and i'm going to change the world. >> for the first time on tv, see who has the passion, the dedication, and the right

business plan to convince the crowd. the cash crowd. >> every deal pitched on the cash crowd is open to a crowd of accredited investors who can get in online. but know this, while start-up investments have potential for explosive growth, they're also potentially extremely high risk. we'll meet the entrepreneur in a moment. first, let's meet who he's here to pitch to. lynn tilton, self-made billionaire and owner of the largest woman-owned business in america. she's invested in and restructured more than 240 companies. she owns md helicopters, rand mcnally, steeler cosmetics and more than 70 other companies. eric ryan. co-founder of the cleaning company method, a brand he started in his apartment and turned into one of the fastest growing consumer packaged goods companies in america. with sales over $150 million in 2013. and alicia serrant, board member

of new york angels and a managing director at golding seeds. two angel groups that have invested over $160 million. her recent investments includes a socially responsible brownie start-up and a company trying to cure alzheimer's. >> here comes the entrepreneur who cooked up a pet food so pure and healthy, he's happy to eat it himself. >> my name is john juliaci. i'm the founder of whole life pet products. it's the mission to make the best tasting pet treats on earth. they're functional freeze-dried. we pioneered a really great philosophy named farm to friend. it parallels what's happening in the food industry with farm to table. we source all of our ingredients from farmers and fishermen and other small food artisans, only in the usa. our products are 100% human grade. >> chicken, my favorite.

i've been a dog owner my entire life. and i'm really passionate about pets. and when i saw what was happening in the industry where companies were really cutting a lot of corners, i decided i wanted to be part of the solution. i'm all in with whole life. it really is all on the line. we really do need to raise this money so we can accelerate the growth and really take it to the next level. >> and welcome to "the cash cow," john. it's nice to have you here. whole life pet is currently raising money on circle up. the deal he's pitching is open to accredited investors online and the ones sitting here in the studio. john, how much are you looking to raise? >> $940,000. >> okay, the cash crowd is ready to hear your pitch. you have 30 seconds on the clock. >> i'm the founder of whole life pet products and our mission is to make the highest quality, safest, best-tasting pet treats on earth.

natural treats, we created farm to friend in our all-natural, safe pet treats are made with human grade ingredients and sourced only in the usa. we're here to accelerate our growth, we are financing the launch of two new innovative products, and we're building a sales team that will take us from 2.3 million this year to 25 million in five years to become major player in the pet treats space. >> okay, we're out of time. panel, he's all yours, and indeed, the treats, which, of course, you have in front of you to try. why don't you kick us off? >> i'm looking for your truly differentiating factor. how come you haven't been able to be in petsmart or wal-mart or the big retailers yet? what keeps iams or procter & gamble from doing the same thing you're doing and putting you out before you start? >> lots of questions there. we're a premium brand and there's a natural progression in our space to start in the pet specialty channel small boutiques and kind of work your way through. we just got into petco

unleashed, which is a big win for us, and our brand would not be sold in wal-mart. it's just not the right channel for us. >> eric? >> part of your thesis that makes this brand interesting is if you can really build a larger scale. right now it's only 5% of your business. give us a sense, like what are the proof points that you've already achieved that would give us some comfort around the ability for this to work in grocery. >> we've been really fortunate to partner early stage with some great grocers. what we've done is really learned a lot. we've learned what works, what doesn't work, and from that we formulated an entirely new brand. we've adjusted our price points. we've adjusted our packaging. and we have a real solid strategy to achieve growth in the pet specialty channel and in grocery. >> but what are the turn rates? >> the turn rates that we want to achieve are going to be velocity of three or more turns per sku per week per store. >> are you getting that now? >> we're in the two range. we've lowered our price point, which is going to drive more velocity. >> alicia. >> so let's talk about potential

channel conflict. if you're going into pet specialty and you're going into pet superstars and then grocery stores, oftentimes you need a different brand to attack each different channel. but from an investor standpoint, you worry about the marketing spend that's associated with supporting various brands. so how do you reconcile that? >> we're a one-brand company. and we've really thought this through. we had some leakage early stage because we hadn't really paused and thought about what products fit in each channel. but we have a solid strategy. we have products exclusive to pet specialty, the small independent boutiques. we have a new line that we're launching that's specific to grocery and won't be sold in any other channel. and we have products that are going to be sold into the natural channels as well. so we've really thought through the one-brand strategy with specific products that are exclusive to each channel. >> got it. >> do you want to come back in here? >> i think the only thing for me is what is the premium price for your product to a lesser product? >> our predioducts range from 5

to 15.99 and we are a premium brand. but we want our products to be available to all pet owners. >> but what's the premium? >> what is the premium? >> if you're 5.99 to 15.99, something that isn't -- >> 5.99 to 6.99 for a bag that size is actually the normal price range. that wouldn't compare to something in wal-mart. >> or something not organic. >> correct. >> are you going to do what i think you're going to do? >> can i really eat this? all right, i'll do it if simon does it. >> nope. no carbs after 4:00. >> the point -- there's a serious point here. you would eat that and maybe we'll make you eat it later because it is so nutritious. >> they're human grade. >> not bad. >> no, thank you. >> it's time to talk cash. will the super panel show whole life pet the money? we'll get answers after this. and, does the online crowd

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welcome back to "the cash crowd." this is the moment for the entrepreneur serving up a pet food so pure and healthy, he likes snacking on it himself. that's true. >> yes. >> but snack time is over. it's time to talk money. here are the numbers. whole life pet went to the crowd looking to raise up to $940,000. now, you need to raise at least a quarter of a million, $250,000, to be funded. let's have a look at where we now stand. wow. so congratulations. after several months of crowd funding on circle up, you're now $590,000. the question is, for this panel, how much closer to your ultimate goal of 940,000 can you now get? let's hand it over to the panel. the minimum investment in this deal starts at $25,000. eric, john has asked to hear your verdict first. >> first of all, i'm hoping for no weird side effects on the flight home. it actually tastes surprisingly good. i think you've built a really

interesting special business. i like the category. we invested through encore. had a great outcome in that. i'd love to put more money to work in this space. for me, my interest is in mass retailing. and i don't think you're there yet with the proof points. i'd love to stay close to you. i'd love to get this in front of target and see their reaction. but for right now, not investing. >> alicia? >> so, john, i think you're such a great guy and you have so much heart in this business. i absolutely love this space. i think you're talking about consumers buying products for four-legged children, really. but i think i'd like to follow you a little bit longer and potentially invest in the future. i'd like to see specific data around same store sales and also to see your organization grow a bit beyond just yourself. >> two members of the panel are out. lynn, are you coming in? >> you know, i'm feeling a bit the same way. i think you have a great concept in a space that makes sense. i actually am struggling with you being able to grow your sales to the numbers you want

without building a very large infrastructure because you're not going to the mass space. to set you up, you have to build a lot of sdna to get numbers that won't make sense. i think you should take our advice, go back, because i think you're on the right track. >> okay. there is someone else here who would like to further invest in your company. the founder of circle up, ryan, welcome to the show. >> thank you. >> nice to see you. >> on behalf of the circle up growth fund, i'm here to announce a direct investment into whole life. the circle up growth fund is a fund made up of third quarter institutional investors. looking for diversification, including those on circle up. we're going to invest $287,000 into whole life. >> wow. >> 278? >> correct. >> wow. that brings whole life pets' crowd funded total to $877,000. you are so close to that 940. for how long does the offer stay up on circle up?

>> it will be open for 30 days. the pressure's on. >> the pressure is certainly on. thank you. thank you to our super panel. that's all from the cash crowd. "mad money" starts right now on cnbc. you find it. "mad money" starts now. hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to make you money. my job is not just to entertain you, but teach you how markets can go off like they did today. call me at 1-800-743-cnbc or tweet me @jimcramer. the s&p shot up