we'll be on that call. we're looking ahead at biotech next week. that's all coming up at the top of the hour, guys. >> a negative day, melissa lee over to you. "fast money" starts now, live from the nasdaq market, i'm melissa lee. a huge night for earnings and live team coverage continues throughout the hour. josh lipton is covering the call. don ch us over tu is on the cal first, to the biggest mover of the night thanks would be amazon blowing past estimates, take a look at the move. this move can only be called one thing, ridiculous. the stock 17%, massive earnings beef. for the latest, let's get to josh lipton in san francisco, josh? >> melissa, you're right. as the story in the after hours, amazon posting a 19 cent gain on $23.2 billion.

looking for a loss of 14 cents on 23.4 billion and just looking through the segments here, melissa, north america revenue 13.8 billion better than expected. amazon web services is cloud computing division, revenue 1.8 billion. a big step up from 1 billion a year ago operating income there of $391 million, also better than expected. certainly the company continues to spend. revenue, as i mentioned, 23.2 but they spent 22.7 that obviously has some pressure on margins though operating margins at 2% of worldwide sales also better than expected. as you mentioned, that call kicking off. i'm going to hop on it, bring you headlines as they come. back to you, melissa. >> the stock looking at an 18% gain and here is a really interesting stat. amazon is now bigger than walmart. this is an amazing stock story. look at the chart earlier this year and it was far from where it is now in the after hours. >> think about also how people

are able to look at the investments they made in fulfillment and logistics and all the things they are punished for are now the reason why they are walmart. this isn't just an online story but a company that spent $12 billion and may actually be spending less, therefore the operational leverage is why people are going bananas because people weren't expecting that. >> we don't know that leg of the story. >> right, and you know, when you look at the headline numbers and see things like 26% sales growth, you see them guiding higher for next quarter and crowd revenue up 82% and what is really interesting here is last year if you remember this quarter and then the subsequent quarter, they had cut prices on all the cloud stuff. this is the quarter where they start to laugh at and you can see that improvement in the numbers. absolutely incredible. keep in mind, the last two times amazon reported, it had a 14% gain on each day and stocks. this is a 17% gain.

this is just one of the most incredible stories of the year without a doubt. stock is now up more than 65%. >> what do you do now? >> stay with it? >> stick with it. >> absolutely stay with it. the question the other day was is this going to be an apple-like quarter or netflix? netflix-like move and you're getting the move. netflix hasn't given that much back and i don't think amazon is, either. we said they can pull the levers necessary to make it happen and they did. >> i'm a guy that's not going to buy it up 17%. i mean, i would take one-third off at the least. i'm not saying there is anything wrong with the company but up 65% and 17% in the after hours, why wouldn't you take some off the table? the one thing i would say about that walmart stock, i don't know if it's apples to apples. walmart just started doing some online sales, so i'm not sure it's exactly correct to compare the two. >> and the market doesn't,

either, if you think of multiples. the stock is priced at a ridiculous multiple growth that's probably going into. what is interesting is we van have analysts buys 35, 45, 50. bob on the phone today talking to us. we got a case where what analysts do? do they walk in and upgrade tomorrow because there is a lot of chasing. like netflix, a lot of people were behind the stock. that's not bob. analysts will come in and speak to a guide that said what do you do with this stuff because the street has to chase this higher even though most people weren't prepared for this number. >> or what if you were an investor that has not been in amazon? you're seeing the fruits of the spending this quarter, josh. how do you get into this? >> you have to hope for system kind of a negative short-term situation that causes the stock to come in, whether it's them blaming currency on something at some point in the future. keep in mind they have to do 6% margins for the fourth quarter, they may guide that down because of some new thing they want to

spend money on. that's what you have to hope for if you have no position at all and this is something that you really want to be in. i'm with b.k. i love the story, i don't see how you pay up 20% from an hour ago. >> again, the amazon conference call is going on now. we'll need to listen this carefully to see if it can hold onto the massive gains. for for more, let's bring in bob on the legendary red phone. web services was huge. what did you like about the quarter. it expanded with a 31% growth. that's driven by the japan changes. awso accelerated to 81% but all acceleration on growth done on better profits, for gross profit from 29 and the operating margins expanded in north america to 500 from 300. big expansion there. units accelerated, all across

the board it was faster growth, better profitability. the big thing to listen for the conference call is the they go through periods of harvesting. the question will be will they go back into an investing mode? >> what do you want to see from them at this point? >> the numbers we just saw are sustainable. that it's not just a harvesting mode. they can keep these margins and growth rates and don't need to reinvest and take down the free cash flow. >> what is your initial reaction to the stock given what we know about the earnings report. >> fantastic numbers. our hesitancy is evaluation. a lot of investors missed the capitalized leases. real cost. pretty expensive but if you look long term, it's a great asset. >> we'll let you jump back on the red phone. check in with you later on. let's get to the big earnings movers, starbucks jumping and to

dom chu. >> to bring you up to speed, starbucks putting a penny beat on 42 cent as share. analysts looking for 41. revenues coming in slightly better. if you want to give a small hats up to the analysts, close to right. comparable store sales up 7%. 6.1 was the average analyst estimate and this is why maybe a little bit of that stock action to the upside plus 4% here, they add 50 million shares to their existing buy back program worth $2.8 billion pushing things forward. separately, the company signed an awith pepsi to distribute ready to serve or ready to drink coffee products in latin america so that also playing into the story. lots of moving parts here but starbucks up by that amount. we'll keep an eye on the conference call and bring in more details later. >> thanks a lot. just off the after hours

session, up 4%. josh brown how do you trade this or the food stock in general? >> i like starbucks long. this is an example where you say look how hard this is and make money? starbucks went into this call with 24 analysts on the street, four neutrals, one sell. when you look at the options mark market. .5, two puts for every call bought on the july 24th weekly option strike. so when you think about something like that, the optimism going into the call. the natural incla nation is to go to the other side. sucks. >> wow, language. >> if i look at what is going on, what is going on is really starbucks is growing into its valuation but this is a stock if you look at it five to ten years ago, trading at 1.5 times, two times the multiple of the

street. it's to the food space and fast food space to me is an important tell here. multiple sales drivers and challenges and the international expansion is out performing. food will add 3% points and that's impressive. >> quick, would you rather starbucks, mcdonalds? >> starbucks. not that it's a big part of the revenue but china was up 127% year over year. unbelievable growth and margins great there. it is still a fantastic story. would i rather starbucks? >> would you rather? >> the guy, steve jobs of coffee. you got to stick with that one. mcdonalds has more. >> steve jobs of cover fffee. pandora and visa out with earnings. those stocks volatile in the after hours session. the latest from the calls and how to profit plus, it comes

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welcome back to "fast money." looking at visa, it's earnings healthy 25% in the fiscal third quarter thanks to stronger than expected growth in payments volume. the stock reacting in the after hours session on the stock as you can see up over 7%. now during the quarter, the company's payments volume rose by 11%, above expectations to $1.2 trillion. process transactions also increasing by more than expected 11% and cross boarder transactions. on the increase by 11%. that was a little less than ex many spected. charlie calling the quarter solid, getting a boost from improving economic environment. in light of the third quarter results, visa updated the outlook to growth in the mid teens from the low to mid teens, the firm cut the outlook for expenses and the tax rate slightly increasing expectations for the impact of a stronger

dollar. in the quarter, as i mentioned, payments process increase but we want to talk about europe because keep in mind the company is in talks to acquire visa europe and an option that can be put to visa and has to buy a visa europe and says it hopes to have it resolved by october. that of course, would greatly increase its global footprint where rival mastercard has the edge there. again, that is expected to be resolved by october. the company says it will get more information on two investors probably on the fourth quarter. back to you, melissa. >> thank you, mary thompson. we're seeing mastercard trade higher in the after hours session. >> talked about it last night. don't confuse the three names. american express is its own entity. stay with visa and mastercard, different animal and processing transactions and prove it once again. too expensive at 25 times forward earnings, maybe that's

the case. i don't think so. i think they are growing eps 18, 19%. it's fair. both stocks go higher. >> where do you go here, anywhere? >> done very well and ride and a little bit here and there. they are executing on all cylinders. >> the most excite part. >> starts with a b and ends with a q. >> we got big names reporting after the bell. >> let's start off with what is going on with a trt&t shares. they are positive. you can see in the after hours session up by 2.5%. now the move here, an interesting move here, they did beat on earnings and slightly missed but in terms of the overall wireless net additions, more wireless net adds than people thought they would have and that's kind of where a lot

of people are pofocussing attention. at&t nice move there. trip advisor, this is a stock that rallied into this particular announcement here. trip advisor comes out and reports numbers. they didn't exactly dazzle in terms of overall performance. revenues and earnings came in below estimates but a lot of expectations with trip advisor. juniper networks on the technology side, computer networking equipment up 11%, strong beat in terms of what is happening with juniper. profit and sales beat but the important part about move is they boosted guidance. perhaps a nice indication for spending on computer networking products, juniper shares up 11% and then netgear on the computer hardware side up 8% now. with netgear the story whether or not people are spending more on those particular products with netgear they did miss narrowly on profits and put post sales that came in better than

estimates and said there was a $3 million share buy back. so that's probably popping the stock up there. also some very strong revenue guidance. those four names, certainly making descent moves in the after hours. back over to you. >> thank you, dom chu. >> aat&t, 2.5% move is sexy. the quad play, ratio will improve. 5% dividend yield already for a lot of people that seen the stocks up and wireless growth is impressive. this to me for this company is a very important quarter, very good result. >> i would avoid trip advisor. i think that's a really tough space to play in. they could have a good quarter, bad quarter, you look at the chart of that stock, consistent with how they contribute to the street. google in the game, amazon in the game and great place. >> should we have known or suspected juniper's quarter based on that yesterday? >> well, i mean, you can connect

the dots, would have gone there but you're 100% right. the juniper and cisco is the question. i don't know, i think you can probably stay with juniper here. i think you can stay with at&t. revenue was slightly disappointing but a nice eps beat and the direct tv thing has to be interesting. i think at&t with the dividend and move stay with d. >> cisco shares are trading higher. >> i think that is the play-off because again, what we were worried about in the first half of the year is cap x would slow down on expanding the enterprise side and it looks like with these revenue numbers we're seeing out of the companies, it probably is going to expand. >> still ahead, half way through amazon's conference call and hear from the ceo and blowout quarter. the after hours sessions high, this is a move we're talking about 18%. in the meantime, here is what is coming up on "fast". >> it's make or break time for one big biotech stock that's

getting a key fda ruling tomorrow. meg terrell will tell us what it is and how much. plus, the shocking letter that has wall street shared. changing his tune on china and saying there are no safe places left to invest in that country but that's not all he said. we got the full letter in an exclusive report. that's when "fast money" returns. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought.

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welcome back to "fast." pandora soaring. julia has the latest, hey, julia. >> that's right, melissa, pandora's revenue, managing to grow 5% despite competence in apple's free music. the ceo saying the company hit a massive landmark in $1 billion in revenue and building pandora to a mimassive new scale. >> with engagement, june mobile met trick record ranked pandora number two with average minutes per user. this is significant. only facebook now includes

messenger, instagram and the properties were higher. done dora was double the next closest service and 138% higher than the next mobile music service. >> steve mcelderry andrcelderry mcandrews talking more about revenue for advertisers. a 10% move in shares of pandora, according to thompson, the percentage of shares out standing held short about 12% at this point. >> i think that's really the key. everybody thinks, had thought and maybe still does think clearly this company is going down, competition will destroy them. the other argument is that streaming business is growing and their program adds as are starting to work. the key is what is going on with expenses and customer feedback. the company is very interesting at these levels, frankly, and i think the numbers are good.

expense per earnings is something you don't have to worry about. >> setup going into this, stock down 65% year to date. revenue growth decelebrating. this quarter they surprised the upside in rev in the ad category. >> looks pandora shares are taking a leg higher up 11% in the after hours sessions. this is something we'll keep watchi watching. >> clearly. >> think pandora is having a big move? a big decision on a key drug in the pipeline. there could be a huge move. time for stock therapy with meg terrell. >> you say that whole thing every time, resident stock therapist. >> absolutely. >> regeneron, two questions around it. approval is expected. the first is how broadly will it be recommended? to find patient population?

remember last month when the panel met, it was more conservative on which patient should get the drug. if that comes in out of surprise thanks could move the stock. the second question that will be huge is where this drug is going to be priced. regeneron will be the first in the market and amigon is on the heels. they got approval in europe. amgen is the first in the world but regeneron could be first in the united states. how broad and much will it cost. >> how much -- that's hard to answer but we're looking at a stock up 35%. >> regeneron is remarkable. ever core initiated saying it could be the best biotech company on the planet and initiated with the hold because evaluation has gone up. a lot of this, expectation is priced in here. a slow lunch getting reimbur

reimburseme reimbursement? it really does help lower the risk of heart attacks and strokes or recoup the investment. >> have to let you go. meg terrell, stock therapist, guy? >> reagain ron, the stock is ballistic. a $300 stock, 560 now and trades close to 41 times forward earnings. one would have to think the good news is priced into this name. so probably makes sense if you enjoy the ride to take money off the table. i'm not one to pull the rip cord on biotech but you might have to. understanding that, if everything comes out favorable, they have earnings in a week and a half two weeks, it could continue higher. at these levels, you have to take profits. >> you cut the name two weeks ago for the same reason guy mentioned. broad label is in the cards for this game. that's why you pay 40 times next year's earnings up 40% this year with no rise in expected earnings and that's because they think will it get that broad indication. >> coming up next, amazon,

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welcome back to "fast money." amazon soaring after hours on the report. the conference call half way through. we'll bring you the latest headlines in just a minute. starbucks jumping after beating on the top of the both timeline. the companion announcing it will buy back 50 million shares, plus, another name in the green, pandora jumping double digits in the after hours sessions. after hour sessions highs for pandora. >> josh lipton is monitoring the conference call, what's the latest? >> melissa, no surprise on this call a lot of questions from analysts about amazon web services in that revenue jumped 81% to $1.8 billion and that cloud computing division jumped 407% to $391 million. listen what amazon executives had to say about amazon web services. >> we continue to see really strong usage growth. it's out pacing the revenue growth of 81%, obviously and so

we're really excited about it from a distribution of customers, it is a global business. we have a region spread throughout the world. we have 11 regions at this point and have announced plans to launch a region in india in the future. >> now, melissa, asked about margins when it comes, executives say aws is a capital intensive business but a good

margin kps pans expanded again. fantastic. the question will be will it be further pricing cuts as others come after this space and that's why you see so many questions on the call right now about margins. can they sustain margins or trade margin for market share growth. >> bob, we'll let you get back on the call. thanks. >> thank you. >> so bob is talking about harvesting operational leverages or something everybody is excited about. the company one year ago today was on the most pressure about this very, very issue. it seems like they responded. i know they didn't respond to the stock market but seems the company felt it had to be more profitab profitable. i think this is a great company but some of the best days now are probably behind on this cycle of the stock market or charts. the company is going higher. >> if amazon web services were gang busters up 81% year on year, who lost?

there is a cloud player out there feeling pain because they lost their business to amazon theoretically. >> or more business moved to cloud. >> that's true. that's true. >> well, microsoft, we heard on microsoft's call the cloud business is doing well, loser to both of them, possible. >> rack space would be the obvious choice if there is a loser out there but i would subscribe to the bigger pie theory. the analogy he uses. >> oh my god, b.k. >> just saying. >> leave josh alone, on the food. >> 17% up still. >> i don't want to be glim. take money off the table. everybody eluded to that. the best is to be ahead of them. they prove they can pull the leverage to make this a profitable company and improve margins. i don't see that going away. >> can't stand and margins they have not been there before. >> and i agree the last three or

four quarters have been outstanding. >> still ahead, hedge funds sounding the alarm. the letter they sent to clients and starbucks at the high, conference call and the latest headlines after this break. of i much more "fast money" straight ahead. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor.

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. starbucks after hour session highs, let's get to dom chu monitoring it. >> address add number of things after the company beat narrowly both sales and earnings and announced a new share buy back program worth 2.8, $2.9 billion. i want to talk specifically to something he said with regard to express delivery mobile pay. those are interesting points, shows on the call saying the initial success of mobile order and pay in the express store format are testaments to the growth potential of that format. the first express store in new york city showing quote initial results are nothing short of extraordinary he says. new york city express store handling volumes we would expect

from a store three times its size. the express store formats seeing nice tail winds for them and huge demand for two home and offices in terms of this delivery program. they say they are on plan to pilot delivery in seattle and new york city's empire state building before the holidays. just highlights from the call overall and remember, everybody is watching starbucks because this stock has been on a tear and for right now the coffee is hot and so is the stock, guys. we'll monitor more and bring you more. >> good one dom chu. >> i know. [ laughter ] >> thank you, dom. >> you got. >> for me, let's bring in peter saleh. he has a buy rating, $65 price target. great to have you with us. i want to focus on what dom recapped on the conference call and that's what howard schultz is calling the extraordinary pay of mobile pay, mobile order in the test store in new york city. the fact they can do business of a store three times its size is

amazing. walk us through how you think that operational leverage, not every market is going to be as conducive as new york city. >> yeah, thanks for having me on. i would say the mobile order and pay is going to be a benefit going forward. if you realize it's only been a couple hundred storms, maybe 300 or so stores for the current quarter they just reported. it's rolling out or rolled out the 4,000 location. so the real benefit is going forward and it's really going help them alleviate some pressure off the line so it's going to improve the put and the stores because you can order before you get to the store and walk up to the a accept pretty area and help them with the food and allows stores to actually service the dwguests faster. >> one of the most important things an analyst can do, put

starbucks multiple in the contest of the peer group and starbucks used to be very expensive to the sector, now it's not. where do you fall in line on this because the stocks moving higher every day? >> so, it hasn't been cheap in a fairly long time. i would tell you relative to the s&p, trading two times historically been higher than that. >> how about the peers? who cares about s&p. other guys in the food space, you tell me. >> no, it's definitely more expensive but where else can you get this traffic? nobody else has these. the only place you get these comps are in the pizza space like operator like dominos. you got an acceleration in traffic for the past couple quarters and this quarter went from last quarter from 3 to 4% and if you call, maybe two or three quarters back they were

concerned it would go flat. is it cheap? no, is it more expensive than the peer group? for sure. is it worth it? we believe so. >> we'll leave it there. thanks for calling in. >> thank you. >> how do we trade this? >> listen, what they are talking about is rolling out more of the technology and that seems to be in the food space, the real thing that's killing, that people are killing it with. i would look, just to give you a second kind of look at another company, red robin gourmet they just started rolling out technology. so now we see domino's pizza do successf successful, starbucks killing with technology. red robin gourmet, red robin gourmet burgers, easy for b.k. to say is the way to play it. >> you almost said grenades. >> grenades. >> i'm down with that one, too. >> bmg, new high in today's session using technology increasingly. >> i mean, tim and i talked about this quarter. i thought the quarter was good, not ridiculously good as the

stock suggests. jack in the box, last night i thought duncan brands was playing the coffee thing. this quarter is good. peep were disappointed by the guidance. that stock is okay. but the real winner continues to be starbucks. >> starbucks is telling people that they are doing now 9 million mobile transactions a week, mobile being 20% of revenue as people hold the phone up. when you have the customer programmed to do that and it's so much easier than any other method of pay, a, you move the line faster and b, the loyalty just spikes. that's how a company this size is able to start to defy the law of large numbers, the comps shoot up, it's the cycle, very hard to find another company that has it like this. >> do you take profits? >> in fact, you know, there is two things that happen, becomes too big a position of your portfolio so you have to pair it back. do you want it to be more over weight? yes, think about that. >> coming up, one hedge fund

heavy weight putting on a major warning and changing his tune on china. details right after the break. more "fast money" straight ahead.

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china's slow down, our industry is cut in half as they stabilize that economy. too hot in 2012 and too slow right now so somewhere in between is where we'll be. >> that was caterpillar ceo warning on china. this is one of the heavy weights with bridge water completely changes tune on china, as well. cnbc kate kelly has details from the investor letter, kate? >> thanks so much, melissa. tookc constructico connecticco constructive on china despite a letter that said and observation on july 21st, a call bridge water past few quarters, and have a classic call. pumping up stocks with excess leverage, bridge water missed a few things in the runup

including the bubble acceleration rate, it's subsequent deflation rate and the participation of key corporate entities as well as mom and pop investors. the losses to chinese households in particular substantial and even though corrective policy measures reduced the market drop, the true impact isn't known until we have the economics coming out. while the chinese government has tools and resources to stimulate the economy, emphasized in an additional statement, it will be hard to avoid a painful economic slow down written in that letter in the process. >> when you read the letter and it's a long letter, ten pages lodge, he acknowledges the fact the argument can be made that a small percentages of households invest in the stock markets but the combination of a debt bubble and the stock market bubble that has him concerned. debt being held by real estate

investors. >> don't forget the role margin played and the fact that the state allowed people to actually mortgage their homes as collateral for trade. risky behavior was going on and you're right, he notes that less than 9% of households participated and because of the nature, leverage, buzz of tecaue rate of acceleration and so on, the losses could be significant. he put them at 2.2%. >> yeah, the other shocking thing that we should keep in mind is that not too long ago, he was fairly positive on china. only in june, right, where he said that there are opportunities there. >> absolutely. and been consistently constructive on china and that's why they are parsing words today when they sent cnbc a statement saying we feel like our shift in think ing is over stated. we're constructive and optimistic.

they do say that and they have said that all along. i felt like the note they issued on the 21st, which said the change in our thinking, this is why we think it's a long, slow process, no safe place to invest. those are strong words. that was a big reversal from what he said, which was the dead issues that china faced were nothing but a tail wind. they went on to say the problems china faces, this was a month or two later in june were opportunities for the government to enact reforms. they still are and may be. but there is something here saying bridge water normally ma la -- meticulous researcher said they will have to watch. >> kate kelly joining us. in terms of his attempts to quanti quantify, he found 28 times there was a simultaneous stock market and debt bubble collapse and on average was 1.8% on gdp

growth for three years and afterwards, the worst-case scenario was 4%. >> he said it could be -- >> it should be somewhere -- >> he thinks somewhere in the middle. people act as if this just happened in china. the debt bubble l burburst two ago. the general article defines the sentiment bottom on china and people that think that u.s. corporates have enormous exposure are getting out of hand. >> the journal article but does the bridge water letter define the bottom in china. that's what it is. >> ray first of all means selectively looking at china maybe he doesn't need to be there. the journal front page article on china to me tells me -- >> the placement. >> it's a sentiment bottom. >> i would just say that china is the land of the day, not going to end. they point they do too little stimulus and looks silly or do

too much in which case they left their economy. i think they can flat the needle, something in between. this guy will buy etfs and stocks wholesale. they will put a floor under the market and i think to talk about the wealth in the country where less than 9% of people have any stock exposure whatsoever, i think it's a little early for that kind of thing. it really isn't a broad wealth effect there just yet. takes me under. >> this is the wild card in the global economy right now because the big concern over this stock market falling apart is the shadow banking system in china. that is actually big, not as big as here in the u.s. but fairly big. if you start to see that fall apart, more problems for china more problems talked about two days ago. that's what i would watch for. they have over. i'm in josh's camp. they are going to put a floor

under. >> i want to bring the conversation back, quick ly whirlpool was down 5% and ipm -- >> not about the stock market. >> i know that. i know that. >> starbucks just -- >> overall, in terms of china in the earnings picture -- >> scares me more than anybody else. with that said, no effect to date on our stock market here, which is what is our focus. real quick, you know, caterpillar, douglas speaking about the buildup in 2012, at what environment does their stock ever do well? that's a good question for him. what do they need to happen? none. >> none. >> that's everything. that is the problem. >> elevators and caterpillar is not the chinese consumer. two different worlds. >> let's continue with caterpillar. down more than 3% in today's session on the back of earnings.

mike, do you see it? >> this was a stock a lot of people were shortcoming in to earnings, four times the daily options buying today and you might expect to see short covering. what we saw was buyers of the july 31, paying 40 cents and that's that the stock could drop 4% over the course of the next nine days. seems like people are pressing their best. these options are quite inexpensive. they have come down in price represents less than 1% of the stock price. could this stock move 3 the%? i think it could. >> check out the full show tomorrow. in the meantime, coming up "mad money." talking partnerships and province with the president and coo of starbucks and plus, no course ceo explains the struggle and ceo of american electric

power. that and much more tonight on "mad money". >> coming up, traders will give the big movers their final grades right after this break. stay tuned. i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this.

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take a check on shares of amazon. just off the after hours session high. let's get the final word from our red phone friend. the conference calls wrapping up soon. what do you make of the quarter now? >> the key question is this harvesting question. it was asked a lot on the call and they said they will continue to invest and do things like mexico, video originals, india, fire tv, et cetera. a different areas they will continue to invest in. if you look historically, amazon will go through periods of three or four quarters of investing and harvesting. right now, you hit the third quarter of harvesting. so the question becomes is this a peak of the cycle? when you look at valuation, it's trading 50 times or so forward free cash flow. so somewhat expensive versus the 30% top line growth. that's why we remain in neutral so far. >> it sounds like you advice people to take profits now ahead of what could potentially mark the turn in the cycle.

>> i think the number one answer to that question will be your view on that harvesting versus investing schedule. if we are towards the end here and about to hit the e commerce stuff and head into a weaker beginning of the year, which is always the case of e commerce in 2016 it could be time to take profit. >> bob, thank you for joining us for the whole hour. bob peck joining us on the red fen phone tonight. a grade on amazon. >> you have to give it an a plus on earnings. phenomenal revenue growth. phenomenal growth in amazon web services. has to be a plus. bob makes some excellent points, if the cycle turns the way the stock traded over the last couple days and into this print, you have to be a little concerned. so a plus but don't be afraid to take profit. >> sam? >> starbucks a, trading scale lower but give it an a again, i want to know about mobile and the cpg, consumer product groups. this is where this company can grow more. >> visa a v for very good.

this is a gigantic company -- >> also known as -- >> it's a great global growth play. you believe things are getting better, own visa. >> can you believe he did this on tv? >> melissa see. "mad money" starts right now. my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help 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 some money. my job isn't just to entertain but to teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. a down day like this one where the dow tumbled 119 points, s&p