appreciate it. jon, you too. you go and try to figure -- we're still clearly in the head-scratching phase p all of this announcement from google here. >> investors are buying it looks like in the after hours, with google shares up about 4 1/2%. melissa lee, i know you've got much more on this coming up here. >> yeah, we'll continue the head scratching and hopefully answer some questions about this. thanks, guys. "fast money" starts right now. live from the nasdaq marketsite overlooking new york city's times square, i'm melissa lee. your traders on the desk are tim seymour, david seaburg, karen finerman and pete najarian. today on "fast," bullion bounce. dennis gartman says the bottom is in for the precious metal. find out how he's playing it now. shack attacks the haters. the burger joint reporting its top and bottom line beats. one wall street insider says don't buy into the hype behind this special sauce just yet. but first to this breaking news on google, announcing plans for a new operating structure. cnbc's jon fortt's got all the detai details. jon? >> reporter: well, melissa, this is one we haven't seen before. google, the entity we know

today, is essentially changing its name to alphabet but keeping the two ticker symbols that it has that represent the two different classes of stock. so what happens underneath this alphabet entity? well, for one google still exists but that won't be run by larry page as ceo anymore. that will be run by sundar pichai as ceo. and google followers will now surnd pichai as the most important operating executive of the google of today. he rose up from running google chrome to running more than that, including android. he's recently had purview over pretty much all the internet businesses. now that becomes formalized. he gets control of all of google, the internet businesses, including youtube. susan wojcicki will report up to him. now, what's not included within google? non-google businesses under alphabet will include google ventures. google capital, the investment arms. it will also include projects like calico in life sciences. will also include google x,

which is the research and development arm looking at far out things like flying drones and putting diabetes-sensing contact lenses in people's eyes. so larry page and sergey brin will retain control of the overall alphabet company, and thus control of google but they are handing over the reins for google inc., the company that makes all the money and the profits, to sundar pichai. meltsa. >> jon, what's your take on why they're doing this? because it seems like the market is telling us this will unlock value that's not already reflected in the shares. >> this is a breaking release. i haven't spoken to google but i can tell you how it looks to me. things. one, sundar pichai has become an incredibly important executive at google. eric schmidt was sort of the adult supervision for a long time. sundar pichai has takeown on a roll sort of like that for the newer age of google. he's been able to execute on strategic plans, on technologies in a very crisp passion fashion.

perhaps they wanted to retain him. perhaps he had an offer from elsewhere. another thing this does is it takes larry page out of that operational and to this-some extent strategic command. he was an executive who didn't want to be on the earnings calls. you tended not to hear from him. he's got a voice issue that made that uncomfortable for him. now it's very clear that sundar pichai is the one running the business of google day to day and larry page and sergey brin, the co-founders, can take on more of a behind the scenes advisory role. >> jon, hit the phones. we'll check back with you later on. jon fortt with the latest in the change of struck for google. shares are lower by 5% in the after hours. karen, i know you've been poring over the -- theoretically you get more transparency as to what each business is contributing. >> maybe it's similar to the idea of a tracking stock where you can see what the underlying business is and get some clarity. we always talk about how a dollar of revenue at google doesn't seem to get the same multiple as a dollar of revenue at facebook because it's noisy,

because they don't break things out, because they do spend so much money on other ventures. so i think we'll get a more clear picture and i would think a higher multiple with that, but there's still more to go through. >> i think karen makes a good point. larry page said cleaner and more accountab accountable. this is a case where transparency into those earnings -- the other thing is a separation -- it seems to me this is all about youyoutube. youtube is breaking out monetization. watch time was up 60% year over year. i thought it was a big part of the last earnings. everything we're seeing in the last couple days. thematically this is the time for youtube to move. >> why couldn't they just break out youtube revenues in the youtube line of business instead of actually breaking down line by line each of these different buckets? >> well, let me guess. that they think each of these buckets don't get the multiple that they should. >> that's a big assumption for all the different buckets, that it's being undervalued by the market. >> absolutely. and i look back to the work we

did. the survey we did earlier in the year. john blackledge, he diddant analysis of some of the parts of google and i can't give the numbers off-hand. but valuating the parts of businesses. i look at if. provides clarity. values the businesses correctly. and lets the markets digest that. that's why the market's looking at it in a very positive way right now. >> sotp, some of the parts analysis, he's found it should be much higher. >> he broke it out and said it should be much higher. he valued instagram at $33 billion at that time. that's why we got to be very positive. >> and think of the multiple of businesses we're talk about here. when you talk about google, almost more than anybody else when you look throughout the universe right now. cleaner clarity, that's exactly what they're looking for. transparency. and now people are able to maybe put those valuations that a lot of us have always thought should be on there but they've always been too far undervalid yooud. >> for more on google here and this move let's bring in brian weezer of pivotal research. he's the senior research analyst and he's got a hold rating on this stock.

brian, what do you make of this move? >> well, it's probably positive. again, the transparency issue is paramount here. arguably, they didn't need to rename the company to do it. it's not a terrible idea. in the same way you could look at facebook, for example. i've long since thought of facebook as a holding company with a bunch of different things including the social network we know as facebook. in the case of google they are a bunch of different things including the search engine we know of as google. the video portal we know of as youtube. et cetera, et cetera. all of the non-ad supported businesses are so fundamentally different that break them out i think is very, very important. >> what is your sum of the parts analysis? is your price target $620 a share? i'm just trying to understand how value is actually unlocked and how we should take a look at this move in the after-hours session. >> given what's disclosed about google, i don't have a sum of the parts analysis because i've got no real basis. interestingly you were talking about youtube. what most people don't realize

is there's a business called gdn which is probably the twice the size of youtube. it's also profitable, most likely. businesses like that will probably get a bit more focus if there's more disclosure. i doubt there will be. >> could this be a precursor to some other big sort of corporate structural xha to google, neighbor a large acquisition or something like that? or a spinout of some of these business that's may be undervalued under the google umbrella. >> that would be giving them a lot of credit for something they haven't demonstrated a willingness to do as yet. i think there will be a lot to be said around taking all of the non-advertising businesses and managing them completely separately. i've never guessed for a second that they would actually contemplate doing it. it's a positive sign if they're going to provide transparency to these different businesses because it might give some suggestion that maybe at some point they will and that will be positive because there are investors who would like to be investing in a google life sciences business. but unfortunately when you

commingle it with an advertising business you get a negative value by combining them, i believe. >> we're going it leave it there. thanks so much, brian. we appreciate it. brian wieser of pivotal. interesting because in the letter in which they explain this change in the operating structure they explain why they chose the name alphabet. they liked it because it's a collection of letters that represent language, one of humanity's most important innovations. it also of course is alpha and bet, alpha being the investment return above benchmark. it is sort of an acknowledgment of hey, we are shareholder friendly, we recognize the fact we may be undervalued here and we want to do something friendly for you. >> absolutely. go ahead. >> i wonder if there's any coincidence also as ruth pour ath's first quarter as she was part of the reporting process and here's somebody that wall street has been embracing and saying we're going to finally have some accountability here. i think it's coming together at a time for these guys to live the kimonos as pete likes to say. >> lift the kimono. >> not for nothing. >> this is a company people looked at a while back as having

a spending issue. similar to what amazon had. this allows them to invest in companies -- >> isn't there a fear that the spending side of it when it comes to the fiber and the car and stuff like, that people are going to actually see what they're spending and freak out? >> is that alpha is behalf, you know, your benchmark? it's hard to know. i think people want to put that stuff in a box and put that into kind of the lottery ticket part of the valuation. the core business. if you almost think about microsoft with windows against all the other stuff stuff they're doing. i realize google's more esoteric but it makes sense. >> we're close to the after-hours session high at 5%. is this a move you're confident -- does this truly ub lock value so you say it's worth that 5% pop and you continue higher or do you say we don't know enough yet? >> we probably don't have enough yet. a lot of what we're talking about here and discussing if what we are talking about is correct, i think it does actually get this kind of value and can sustain what we're seeing in this 5% pop after hours. >> i agree. i think it's up maybe one multiple point. i'd hang on to it.

>> and it's a cheap stock. >> simply, this is what rallied the stock on earnings. the belief this is going to happen. >> belief something is going to happen. >> breaking out youtube, making it look better. >> now let's go to the massive rally in the street we saw today. all three major indices finishing with well over 1% gains. the s&p erasing all of last week's losses, dow jumping 240 points. hichbtsz a rate hike and a huge rally in china overnight adding fuel to these gains. it seems the hope there will be chinese stimulus was a major factor here. >> yeah, it's a major factor. people are looking at china. you can see that's where the fear is in this market. whether or not there is indeed a massive chinese slowdown or whether or not it's going to continue. that totally overshadows the fed right now. i think the concerns about lift-off are totally off the table. people aren't really focused on that at the desk level. they're now focused on what's happening in china, are we going to be able to move this higher, the market higher through earn sngz. >> i think people have been looking at systemic risks and element black swans for the market over the last few weeks and it's been greece, it's been

china. and the interesting thing is fed's lockhart out again today making it very clear to me that september's the time. and the b.o.e. chimed in. it's almost like they've had a chat, the whole world knows what's going to happen. the technical action on friday, the reverse intraday, gave you the foundation with china's almost a mockery of the economic data out there. it was so bad that people think it's going to be good on the policy side, yet we're rallying here in the states where it looks like policy is coming back. >> were you buying anything today, karen, or selling anything for that matter? >> we did buy a little more sun edison, which has obviously been -- >> nice day. good day. >> up 5% off -- still down terribly. but we bite little of that. last week we hate few air pockets in the market. didn't seem like panic selling but just kind of thin. summer trading. but this is a welcome relief. >> and karen said it exactly right. not panic selling. we didn't get that huge spike in

the volatility last week. we had plenty of volume which was great and the markets were going down but we held those technical levels. you guys were talking about technicals. look at the spidrs, the way they held the moving average. financials, health care. i've added to a few things but i didn't have knick brand new that i was putting on today. adding to financials, adding to some of those airlines. i still think there's huge up side there. had a guest on at noon talking about american airlines, still undervalued. >> i look at them and they're now back the at highs. delta, 47, 48. and yet the same industry issues people are concerned about are still there. i would have thought and in fact i was thinking this is a place to fade the airlines. i didn't do it. >> the reason i would go against that is look what warren buffett just did with pcp. that's saying something about aerospace. take a look at some of the reactions. look what boeing did today. some of the reactions there. this reniends me so much of his largest acquisitions before this, burlington northern. he went into the rails, suddenly everything that was feeding into the rails went higher. i think this is the sam story now. >> coming up next we're all over

the breaking news on google in the after-hours forming a new structure. a look at what it means for shareholders when we come back. plus the latest on shake shack's massive beat. the stock is pong. we're following all the news here today. much more "fast money" after this. yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. a

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. shake shack jumping in the after-hours session on earnings. let's send it over to cnbc's morgan brennan for the key takeaways from the report. morgan. >> a tasty beat on the top and bottom lines for shake shauk. >> oh. >> i had to. >> no, you didn't. >> delicious. a delicious beat. but the standout numbers, same shack sales, basically same-store sales growth was up 12.9%. that was much better than expected. and in the release ceo randy geruti said the fast casual burger chain opened three domestic operated companies last quarter and two internationally, adding the company's on track to open 12 domestic location this is year, that's up from 10, and that it expects to open at least that many on an annual basis next year and beyond. shake shack also raising ilths full-year revenue guidance and hiking same-store sales guidance to mid to high single digits. operating profit margins incrassed in part thanks to lower than anticipated food costs and the leveraging of

labor. so we'll be look informingar more color on that as well as on guidance and expansion plans in the earnings call which just got started a few moments ago and also worth noting in a separate release shake shack announcing a 4 million share secondary offering. so we're going to be looking for some commentary on that as well. melissa, back over to you. >> thank you, morgan brennan. a sizzling move in the after-hours session. >> oh, boy. >> the offering, though. it's interesting this still trades haier even those there's an offering coming. >> dan nathan pointed this out a few weeks ago, made a goint, that more liquidity is a good thing for the stock. this is still an $800 million market cap it's amazing the coverage this company gets doing great things but it's really about growth these guys have to grow at such an amazing level. better store openings, obviously the updated guidance but to me you don't chase this stock at 77 you're right up at the highs. one blowoff top just above that. this is a key level on the stock. >> more breaking news on google. let's get back to joanne fortt. >> a few details that i've gotten from google about this

restructuring where the company is going to be renamed alphabet. google inc. will be a unit and other units within that as well. sqult way can't's going to report earnings in q4 when this takes effect. google inc. will be reported. the specific numbers on that will be reported separately. alphabet will also be reported separately. a little more detail on what's in alphabet. things like google fiber will be part of alphabet, not part of google. even though youtube will be still part of google. google x also part of alphabet, not part of google. calico as i mentioned earlier part of that. there are also certain executives that are going to continue reporting to alphabet ceo larry page. those include ruth porath, the cfo. she will continue to serve a cfo function for google but she's going to report to larry page. david drummond, long-time general counsel for google-l report to larry page. google inc. will get its own general counsel separately.

also tony fidel who came over with the purchase of nest for more than $3 billion. he will not be part of google. he of course also has oversight over google glass and possibly some other initiatives. he will report to larry page. we're going to continue to get details about exactly which corporate functions, which executives will report to larry page versus google inc. ceo sundar pichai with just a little more detail on exactly how this restructuring is going to work with google being renamed alphabet, google inc. being a unit of that, melissa. >> jon-s there any indication that google's going to have some kind of a conference call to explain this nor to investors? >> i have urban heard they're going to have a conference call. i've just got a couple folks on speed dial to answer questions as they come up and there are many. >> yeah, it just seems like everybody in the world's got a lot of questions. karen's been poring through the finals. still has questions. and it would be nice if they actually talk to people and explain this further. >> they're talking to me. send me your questions and i'll see if i can get you some

answers. >> jon fortt with some details there on exactly who reports to whom within this new operating structure. >> i also woshd how they have a lot of overhead. so how do they allocate the overhead? that will help us get a better clarity on the profitability because my guess is that a lot of these hugely cash generative businesses are supporting a lot of the excess overhead. >> but since jon fortt is going to be speaking with google directly -- >> i'll e-mail you, jon. >> what do you make of the new developments here? >> with goog 12348. >> yeah. >> i'm a buyer of google long term. i think the stock the going to work out well. it's a great restructuring. it breaks things out into buckets that i think the street wants to see. s an investor i think the stock is -- first of all the long-term growth opportunity here is enormous. i think it's relatively cheap and i think it breaks it out and separates their costs in a way that make it a lot easier for me to really look at the company. >> all right. we'll continue of course following this breaking news on the street this afternoon. google announcing a new operating structure.

the stock is moving in the after-hours session, just off the after-hours session highs, up 4.7%. what if means for shareholders' long-term value for the stock. you're watching cnbc, first in business worldwide. in the meantime here's what's coming up on "fast." ♪ >> good question, biggie. we're asking the same when it comes to shake shack's meaty gains. the stock has sold but one wall street insider is sounding the alarm on a valuation that could cause serious indigestion. plus -- "fast" is going west. in search of the best investment opportunities in america. from stocks to real estate to cars, we're headed to the hottest city to find you the hottest trades. "fast" goes west. august 13th and 14th at 5:00 p.m. on cnbc. [ radio chatter ] ♪ [ male announcer ] andrew. rita. sandy. ♪

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you're watching "fast money." i'm sara eisen live at the new york stock exchange. watching shares of craft heinz. the company just reporting its first quarter as a public combined company. the stock is getting pressured here in the after-hours. even though the two are combined, they broke out results by individual stand-alone company.

kraft saw its profit rise. heinz actually saw its profit swing to a loss. the new ceo of the combined kraft heinz saying the company is focusing on the difficult and challenging profess integrating our two businesses. i guess part of that will be combining the two financials. interesting nuggets from this report. they reaffirmed that they are on track to cut $1.5 billion by 2017 in costs or synergies. investors really like that. it's part of the bull case on the stock. the stock, by the way, up 5% since it started trading as a combined company. in july two other key pieces to note. sales fell both at kraft and at heinz, reflecting a difficult environment out there for packaged food companies but margins increased at both of the units. and that is the 3g story. remember, 3g and warren buffett together own more than 50% of this combined company. no conference call this afternoon. but mels arks they will be holding a call on friday. of course everybody wants to know about those cost-cutting efforts. >> yep, they do.

sara, thank you very much. sara eisen from the new york stock exchange. seaburg. >> i look at this as a perfect example of confusion. right? i mean, they're waiting till friday to host the conference call. investors out of the gate completely confused by the release. but the cost-cutting aspect of it in the margins that was the most important thing to hear. hearing that you obviously hear a little lift in the stock in the after hours. i bet the stock actually resumes and goes higher when they have their call. we'll talk about that. that was the key we wanted to hear. we heard something about it. it makes me actually more bullish on the story. >> they got some decent positive sales growth numbers out the month before. if you hear from the guy, it's difficult making this transition. this is exactly what 3g -- and everybody was thumping their chest about. we're all about sinnar skris. we'll take the fat out. the stock was up 10% off the mortgager. and going into this number the bars with very high. i don't think you need to rush in and buy. i think those guys will cut the stock and i would try to buy the stock lower. >> their growth prospects going

forward is internationally right now. they've got some fx headwinds. the cost cutting is the beg thing everybody wants to hear everything about. >> we've got an earnings alert here on live nation. let's get to julia boorstin in l.a. julia. >> melissa, live nation shares trading higher after hours. up about 3%. the company says it's on track to deliver its 2015 plan to deliver record operating results. the world's largest concert promoter announcing stronger than expected revenue growth to $1.8 billion with earnings in line with expectations. the company says that the first half of the year's ticket sales rupp 7% over last year, saying in the second quarter about 1 million more that's not attended shows, spending about 18% more at amphitheaters and festivals. and the quarter is strong in growing sponsorship and advertising revenues faster than expected. ceo michael rapino saying the company is in the process of converting to be a technology company, saying now 21% of ticket sales are mobile devices. melissa? >> all right, julia, thank you. karen, you've been in this stock

for a while. >> yeah, and one of the things we like is the growth in sponsorship and the advertising julia just mentioned is actually accelerating which is a really good thing. michael rapino's done a fantastic job with this company. i do buy into the transformation as a technology company. >> it's funny because if a company like this went public today it would probably be labeled as a technology company given all of it, right? and yet it doesn't command a technology multiple whatsoever. >> no. but hopefully. starting tomorrow. >> coming up next, the shake shack call now officially halfway through. the stock is popping. latest headlines fresh from the call. and there you have it. up 9 1/4%. we'll be right back. ♪ ♪ it took serena williams years to master the two handed backhand. but only one shot to master the chase mobile app.

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let's get right to the big news on google announcing it has created a company called alphabet which will replace google as a publicly traded entity. google will become a wholly owned subsidiary of alphabet along with other google products like life sciences and the x lab. for more on the news let's bring in lou basson, founder of disruptive tech research. lou, great to have you with us. lou, are you there? >> i'm here. can you hear me? >> yeah. why do you think they did this? >> i think it's a smart setup.

i cannot plug them for the name of the holding company but i think it's smart to unlock the value there. i've said before, google's really a defacto etf on future tech trends. you think about driverless cars, the internet of things, the smart home, robotics. but nobody knows how to value that. and i think by splitting up into separate operating units there's the potential to do that. but i'd caution against getting that to happen anytime soon. how long did it take amazon to separate aws results? i don't think there's any intention to separate the separate business units by segment anytime soon. he will but you've got to give them credit for puttingment structure in place to make it possible down the road. >> what do you mean? you think they're not actually going to break out financial results by each business segment? >> well, i think you're going to get to google inc. but they've got a lot of stump works projects and a lot of other bigger ambitions in driverless cars. for instance, i don't think we're going to see those

separated out. i think you're going to see them rolled up into other buckets. just like you saw with amazon and aws. rolling into the other categories. it would be too early for them to break out those units they're investing so much in. and there might not be tangible results in in terms of earnings. that would be a big risk if you're trying to bring investors in to convince them that there's unlocked value here. >> so lou, your firm is a research firm and you feed research into investors. it sounds like what you're going to be telling your investors to subscribe to your research, that there is down side risk that there's down side risk to this move higher. you do not believe that google will break out the results. that the market seems to believe they're going to do and unlock value we haven't seen before. >> i'd say that's accurate. the more transparency they provide i think the more up side there is. i consider google a stock to own, not trade. but that being said, i think it comes down to transparency at this point. >> and you don't think they're going to give it to us? >> not as much as we'd like.

>> okay. we're going to leave it there. thank you. >> thank you, melissa. >> lou basenese, disruptive tech founder. >> really interesting statement. google's effectively an etf on future tech trends. and to the extent that the core business search is doing just fine, granted, you know, cpc was a little weaker year over year. some of the trends not so good. everybody loves google for what they think is out there and what they are doing. much as they want to vilify this company. but i think it goes back to youtube. i think it's about pushing youtube out there. i think it's either -- but giving tips own runway, giving it a chance to really grow because i think this is the most disruptive company out there in media. >> i think he makes an interesting point in terms of amazon and amazon web services. amazon didn't create another holding company in order town lock value with amazon web services. it just decided you know what, starting now we're going to report -- exactly. we're going to show you amazon web service revenues. and there it was. >> and to lou's point, lou's not convinced we're going to get enough transparency to be able to break all that out and be

able to figure out some of these numbers, but he also said if they dot stock's going higher. >> i think that's an interesting caveat as we are staring at a 5% gain in the after-hours session. for more on google let's get back to cnbc's jon fortt, who brought us the news earlier. anything new here? >> we're digesting what we got to this point. as we mentioned alphabet is the name of the overall entity. google inc. is are not that. and there are few executives within what now exists as google who will not be reporting to new google inc. ceo sundar pichai. they will be reporting to larry page. those executives include cfo ruth porat, david drummond who's been the general counsel pl tony fidel who came over with the nest acquisition and has purview over google glass and perhaps some other initiatives also under alphabet but not under google will be google x and projects like calico that are trying to break ground in life sciences. in the earnings report google

inc. revenues and operating profits will be broken out separately from those other divisions. those other divisions won't be given as line items. they'll just be given as overall alphabet. we'll have to see, of course, how investors digest all of that a lot of changes in the structure from the stock split to now this. >> thanks for keeping us posted. >> i was thinking about twitter's move too. for all those people who think the only people that will buy twitter are google, you've got an interesting backdrop here where we're clearly again -- the autonomy and the ability to separate the core businesses and be much more speculative, that is speculative by the way. i would just say twitter had a 9% move today too. interesting. >> do you press the short on twitter? >> i continue to. google's not going to buy them. facebook is not going to buy them. facebook it doesn't make any sense to. investors would be irate if they made that acquisition. and google, they want to get into twitter's not a social network. it makes zero sense -- >> it's not a social network.

>> twitter is not. twitter is not necessarily -- you're not friending people and communicating like you are on facebook. it is not a social -- >> news source. >> but as long as they figure out how to monetize. >> it's not an individual social network like a facebook is or like anything else is from that perspective. you're not bringing on people to you and communicating with them as a source. you're using them from a different perspective. >> got tyke break here. the latest headlines as they come in. plus the commodities king dennis gartman weighs in on why the commodity crush could be behind us. much more "fast money" still ahead. i'm only in my 60's.

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that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. welcome back to "fast money." we've got the latest from shake shack, which reported earnings after the bell and whose call is under way. that call still going on. we're getting analyst questions right now. but so far the company's saying that similar to last quarter it anticipates the stronger than anticipated performance to late fwf and early 2015, a return of crinkle cut french identifies and a shift from the -- and a

positive mixed shift from the limited time shake meister burder and a custard calendar change that happened during the winter. on the call shake shack ceo randy gar garutti saying the company's on track to expand restaurants faster than anticipated. >> developing kngs remain favorable for shake shack and as a result our team has been able to incrass our pace of openings to exceed our originally stated guidance. new domestic company operated shacks in 2015. we are confident that we will now open 12 new domestic company-operated shacks in 2015. >> garutti also noting that development plan through 2016 looks "strong" and reiterating already announced plans to enter the l.a. market. management also discussing new menu offerings including the chicken shack sandwich which is the company's first chicken offering. management saying due to overwhelming response it sold out in two days and returned to

the menu a week later in the stores where it's available. also worth noting we've seen some impact at shake shack from bird flu on eggs which have soared. the price of those have soared in recent months. and eggs of course are used to make custard. back over to you. >> all right. thank you very much, morgan brennan. for more on shake shack's big beat let's bring in "wall street journal" reporter spencer jacobs. spencer, wrote an article that was titled something to the effect, spencer of "that's one expensive burger." do you still feel the way given that same-shack sales really blew it out of the water, 12.9%, and they are going to open more stores than originally forecast? >> no doubt about it these are good numbers. these same-shack sales, which it's kind of a funny measure of sales, did better than expected. they made money. $1.1 billion. they were expected to lose a little bit. but let's take some perspective. this is a 71 outlet chain. it's worth now after hours numbers something like $2.7 billion. it's trading at 200 times this year's estimated cash flow. 100 times next year. wendy's is trading at something

like nine times. so it's very, very expensive. the food is great. i love the food too much. but it's just an extremely expensive stock even with this beat. this guidance is definitely encouraging relative to what we thought before the numbers. but you have to step back and say how much are you going to pay for this thing. >> i can't help but be a little skeptical of -- or conspiracy theorists of wow, these are great numbers and the secondary. wouldn't that be a good environment to sell a bunch? >> right. and it was two minutes after the announcement of the numbers they came out -- they filed the s-1 last month, late last month and they just announced the secondary. they're going to make at the prices that it's trading at in the after-hours something like $360 million. that's how much stock they're unloading. i would, if i were a shareholder right now, i'm not, i can't be, but i would do what the insiders are doing and sell into the strength because it's very difficult to justify this valuation, however good the burgers are and however get

shakes are. the numbers don't add up to me. >> it's david seaburg. quick question about the comp. their same-store comping out their numbers, they're doing a smaller segment of the actual stores that they have open. i think it's roughly around 13 or 14 stores. am i right there? >> that's absolutely right. they have 71 stores. there's a couple of things there. yeah, that 12.9% is somewhat misleading because the actual same-store sales were up by less than that. now, this year they're guiding for what anyone else that uses same-store sales, stores that have been open for at least a year, derived by the mid-to maybe high single digits. which is pretty good. mcdonald's would love those numbers. in-n-out has those numbers. habit burger has those numbers. but there are a lot of chands that would relish those numbers. 12.9% is mainly stores that have been open at least 24 months. if you look at their international franchise locations, they have a very big drop-off in the first year. so what they're doing by looking

at a 24-month period is there's this big excitement. they open in dubai or moscow and then it drops off and they're stripping out that big drop-off from what people are lining up out the door to when it's just a pretty popular burger joint. living here in new york, you know, you still see lines around the madison square park, the first location. people are still in line all these years later. but that's not the case. if you go out to paramus, new jersey you could just drive right up and get a burger. it's fairly crowded and they do pretty well, but it's not like it is here in new york. and that distorts your perspective somewhat. >> sure. >> looking at this company. >> spencer, thanks a lot for joining us. we appreciate it. >> thank you. >> spencer jakab of the "wall street journal." with an additional 4 million shares will the options come sooner? >> i think so. that's one of the points i would make -- >> what happens when the options are are come, you're able to bet in other directions? >> monster supply volatility and probably more active movement than we're even seeing right now. and we've seen a lot of it. from 21 to 96 to 48.

now 77. we've seen some incredible moves in this stock. it really is -- the one point, and you brought this up and i think it's a very important one, is when you look at the new york, the manhattan sales they are double outside of manhattan when you look at it. that's something that happens to be kept in mind. 2.2 million for profits versus 840 million in profits. that's a huge difference. everybody has to recognize that. and i'm just putting that out as a warning. >> we're not talking about the new store openings. it's very important to address that. they don't talk about that. they don't give any clarity about that. when they're com ng out the 11 or 12 or 13 stores that are doing very well that have been successful it's giving you a real value. >> they're almost cherry picking. you've got to get to an enormous amount of buildout in ten years to get to where you want to be. if there's so much growth price in this company, everybody says it and i have to repeat it, it's a great, great burger, they've been a disrupter in the burger industry. we talk about this all the game. it's in the price. absolutely in the price. and i would not buy it.

also technically 77 a big level for the stock. >> i didn't know crinkle cut fries are such a lever. >> oh, yeah. i was crinkle for a long time. >> the beaten-down commodity r58 lig to its highest level in over a month. is the worst over? the commodity king himself dennis gartman weighs in after the break. cnbc, first in business worldwide.

welcome back to "fast money." i'm josh lipton. rack space moving higher in the after-hours. that stock had been down hard year to date some 30% heading into the print. but rack space now saying net income did pop 30%. also some news on capital allocation. the board increasing the company's existing share buyback authorization up to $1 billion. the company saying it intends to complete at least 500 million of the new buyback within six to nine months. remember, rack space provides support and services to other cloud computing platforms like microsoft azure, for example. on the conference call the ceo saying margins are strong, churn is stable, and also competition in this cloud support market is fierce. also, they do question how quickly rack space can scale this business. in the after hours investors are sending that stock higher.

melissa, back to you. >> thanks so much, josh lipton. important thing is margins were actually stable even though the competition is fierce in this sector. >> this is a scenario where all they needed to do is come in line and basically meet kpgs expectations. said it was so bad in this stock. they came in, actually put up an okay quarter, in-line quarter, and the buyback is going to take it higher. i look at the stock and say rightfully so it's going to bounce tomorrow. and i think the stock's going to do okay here. i'd stick with it. i'd actually be a buyer at these levels. >> gold rallying today hitting its highest levels since june and take the gold miners with it. check out names like yamana, kinross, barrick. is the worst over for gold? dennis gartman the editor of the gartman letter. i want to hear it from your own lips. do you think the bottom is in for gold? >> i honestly do. it's the first time eveteen actually been even incipiently bullish of the gold market. i have liked gold in non-u.s. dollar terms for a lon period of time.

if you've own gold in euro terms or yen terms you've actually done quite well. but for the first time and actually it began on friday after friday morning around 10:30, it was as if the whole world began to change. the dollar started to weaken up. you started to get a reversal in the dixie, which i thought was impressive. it carried through in the foreign exchange market this morning. the canadian dollar got very strong today. extraordinarily strong. the aussie dollar got strong. the kiwi dollar got strong. all the commodity currencies were turning for the better. and that was very supportive of the gold. so yeah, i think for the first while you can actually say the lows may have been in 234 dollar-denominated gold. the lows have been in euro and yen-denominated gold for a long period of time. >> dennis, you're citing currency. aren't we in a rising interest rate, therefore a rising dollar environment? so the respite we saw on friday would theoretically be temporary. you're not telling me there's more demand for gold or that central banks are buying more gold. you're simply saying to me that on friday there was a weakening of the u.s. dollar, which

doesn't seem to be convincing because we're going to be in a rising dollar environment. >> we'll see. but you've got reversals. and i pay attention to the technicals in the foreign exchange market as much as anything else. and when you reverse, when you make a new low in something and close higher upon the day, when you make a new high in something and close lower upon the day, those reversals are often very important turning points, especially after protracted bear markets or protracted bull markets. you've had a low bull market in the dollar. and i thought we'd still go higher but you've got reversals the other day. and i think that's impressive. i think that's important. and i think attention should be paid. maybe the dollar has seen its best levels. certainly that looks that way against the canadian, the aussie, and the kiwi. it even looks that way against the cable. and that's going to bode well for the gold market. and this is for me, it is highly unusual to speak even modestly bullish of gold and dollar terms. i haven't been that way for 3 1/2 years. so i think there is something to

be said here. it could indeed be a turning point. the other commodity markets you saw strength in the grains today, which was impressive. you saw strength today in the oil market. i'm not 245 impressed about that yet because the contango continued to widen during the day in crude oil. so i think that might be temporary. but something has taken place. something began to change about 10:30 on friday. and it seemed to carry through today. pay attention. >> are you buying gold? >> i own gold in euro terms. >> are you buying in dollar terms? >> no. i won't buy it in dollar terms because i won't spend the money to buy gold in dollars. i'd rather use the trade if i'm going to be a buyer of gold i'm going to be a buyer in euros and yen because that has been the proper trade. give me a month from now. and if gold continues to hold above 1100 you'll spli interest and i may even think about beginning to buy gold in dollars dollar terms. but why not go to the trade that has been working? go to the trade that has been working for two years, buy gold

in yen terms. that's been the better trade. >> dennis gartman of the gartman letter. >> tim seymour, do you believe what dennis is saying? >> i tell you what. it's a bit of a change of view. if you get to a place on the dollar, if he thinks that the dollar's actually weakening here, it's also coming on a day when the fed basically said we're going to hike in september, which is what i think they said. you also have commodities which rallied across the board. you had a major commodity rally today and yet we're find every day that cash calls for core commodities are continuing to go down. if you look at the gold miners, a lot of them are produced in koushts countries where the currencies have been devalued so much the cash calls for gold are going lower. i've been someone that said by the way for the last 10% and wrong that i think commodities are bottoming. i think commodities are bottoming. so it's hard for me to argue with this except for the fact i don't see anything in the last couple days other than one of many bear market rallies. >> shares of freeport mcmoran soared more than 10% after the company said it is looking to sell off up to a billion dollars of common stock. some shareholders betting on an even bigger ramally.

>> another big reversal which gartman was referring to the stock hit a 52-week low today at 1010 but it reversed very strongly and one of the trades we saw was a sale of the january 12 8 put spread 10,000 times. that's someone willing to buy a million shares of freeport as long as the stock is below 12 bucks and it was well below 12 bucks but it's rallied strongly since then. this is probably someone who sees at least 10% up side in freeport-mcmoran this coming january. >> big night full of news this hour. we'll your final check on google this hour when we come right back. stay tuned. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement.

there's no way to predict that. for all the confidence you need. td ameritrade. you got this.

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get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great. take a ride on the 52-week high and low list. i've got some stocks with potential and others you need to stay away from. don't miss it. plus an cluexclusive look at a biotech that soared more than 25% today. "mad money" is next. now to a final check on google which seems to be levitating throughout the after-hours session. at its after-hours session highs practically right now. 73 707 is the level, up by 6 1/2%. wow. >> these guys deserve a higher multiple. we've said it for a long time. and i think it gets them on the road to that. i'm not going to buy this into this strength here because i don't think it is on enough. i want to hear a lot more about the reoring. but yes, a very good move. >> i'm a buyer of the stock.

in march 860 was the value. this stock's going higher. long-term, short-term buyer of google. >> separated out i think this goes a lot higher. >> a lot higher than here. >> i'm melissa higher. see you tomorrow for more "fast money." meantime "mad money" starts now. >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now. hey i'm cramer! welcome to "mad money." welcome to cramerika. my job is to educate, teach, and coach. call me or tweet me. how the heck did this market which has been absolutely horrendous for weeks finally manage to rally