perhaps maybe he has insight how they can get that. >> they stabilized diet in europe. >> quick, stephanie, put you on t spot, would you have them buy another food or beverage? >> beverage. >> leave it there. thank you for being here. that does it for us on "closing bell." a special "fast money" live from san francisco starts right now. ♪ ♪ this is "fast goes west," "fast money" from the hottest city in the world. we're here to bring you some of the best investment opportunities for tech, real estate and beyond. dan nathan and guy. we made it out west. the hedge fund manager, another internet name he says is about to go on a net flex run like of its own and he'll name names.

also, one o. fastest growing areas in sports, the sports betting business is a billion-dollar business, we're cashing in on football with the ceo draft kings and the drones are coming literally to the roof of the san francisco burro. one of the fastest growing industries in tech and we're sitting down but first to the big story of the day, crude oil hitting a six-year low sliding below $43 a barrel and tonight we ask will crude's collapse lead to more selling in stocks? >> very resilient yesterday, when we were in new york, 2054 was the level we talked about in the s&p and bounced and rejected the lows rather interestingly enough. today, not a big day, either way to be honest with you but what i will say is this, the move in crude oil, i don't think is that healthy for the broader markets. brian kelly over this. it's terribly deflated. the markets at some point will react negatively.

>> is it just a matter of time or are you as bearish when it comes to what the drop means? >> yeah, i would say, agree and agree on the deflationary aspect. we had the bottom and people thinking crude made a double bottom. at this point it feels like we'll make a new low and do it in a nasty fashion and then the question is what are the effects on other risk assets and, you know, s&p earnings, think about the contribution of the energy sector here. expected to be up 12% in 2016. what is the effect of earnings corporate, u.s. corporate earnings when crude oil stays this low? >> is that a hard case to make? we're sitting here and markets within a few percentage points and retail sales in july, june was revised higher and looks like the fed rake is on hike for september. it's like you're telling me about one market and then i'm looking at the data, looking at what the markets are doing and it's another world. >> let's talk about retail sales for a second. we have time. only three of us today as

opposed to five. let's put it out there. i think the consumer is influenced by what they see and specifically in the broader markets. you said it yourself, the s&p within 2% of the all-time high. people assume because the stock market is doing well, that means the economy is doing well. that means they feel better about things, that means they spend money. it's consumer behavior. the fact they are spending money doesn't mean they should be or in a position to spend money. that's how i would argue against the retail sale argument. in terms of the broader market, the s&p is the last man standing. we lost to transports months ago. we're seemingly losing the russell. we clearly lost energy, commoditys is horrible specifically globally. the s&p is the last shoe to drop. 2054 was support traded down there, bounced, i don't know if it will hold the next time down. >> yeah, i would say if you think about what oil means to the two largest economies in the

world, u.s. and china, 30%, we me who is going on and feels like that the global economy, oil is a test for the fact that the global economy may be on the recession. >> as oil keeps moving lower, the next and hunter securities here in san francisco and joins us onset. great to see you. >> obviously, simply just the price and how do you look at where the prices will be six months from now? >> you guys eluded and don't point and a big strategy piece and 64 g and p and we do see in terms of producers in the u.s., in terms of production levels and careful because 2016 we think you see 11% from q 15 to q

416, a recalibrate to get efficient and see a growth path. >> we talked on this show or power lunch and come with stock recommendations and that's still not saying that much compared to the broader market. is it tough as an analyst to come on and pound the table on things like a cog or mrd each down about 20% over the past 12 months. granted better than the drop we seen in wti. >> yeah. >> but when you tell somebody losing money that's better than the drop, doesn't mean that much. >> yeah, that's true. absolute basis we look pretty bad right now and it is relative terms, yeah, that's how we sleep at night saying we're picking relative winners here and it's hard to make money when the commodity and all along in the

space. you look at the move to valero, and valero within a whisper and reverse and we've seen that before. the wit spread works in the favor and there is gasoline in a weaker economy. the refiners generally speaking still work in this environment. >> i'll tell you something interesting. i'm not in depth refiners but one of the big data points we got with q 2 earnings is continental's call and pioneer, harold ham is plugged in continental said he expects the wti, the crude oil ban here, export ban to be lifted this fall and said there has never been this much momentum in congress. you'll get a vote in both sides, the house and senate this fall and that's lifted. if that happens, that spread gets decimated and refiners get absolutely smoked. >> if that spread, if that actually happens, though, that will alleviate the glut and be

better for the names in your own coverage universal. are you recommending stocks based on that happening or too early? harold is a smart guy but a lot of people are saying this will be lifted for a long time. >> absolutely. no. it's a little early for us to make that call. our real call in this space is there is a select group of seal team six, high quality that will do fine. $50 type environment and those are names still kind of pounding the table. >> the parsely and. >> cabit, parsely, pioneer. >> thanks for visiting us here at one market. mike kelly, global hunter. glad you mentioned refiners, valero sold 30,000 shares. i don't know if he's a good seller of the stock. take it for what you want but never great. >> i can't speak specifically. no, it's never great but i will say this, mike makes a great

point but a point been made for quite sometime and potential for that and refiners to get decimated. that's been out there. i still think they have some tail winds. the price action to me bothers me a little bit today but i do think that just in terms of valuation and just in terms of the land scrape, the refiners are the way to play. >> i would say the large integrated, they have gotten beat up. chevron down 24% on the year. at some point, i think estimates are probably going to get too low. 65% earnings decline year over year and at some point with the yields they have, they cut back on buy back, at some point these things should find support in the very near future. >> we got an earnings alert on nordstrom. >> melissa, nordstrom reporting 4.9% beating the street easiest mitts of 3.8% and the company reads guidance on comp sales and net sales for the year but now the eps guidance for the year.

the stock responding nicely to the after hours up 5%. melissa, back over to you. >> kate, thanks so much. dan, what did you make of the action? >> it's tough. when you think about what we just had in the last week, macy's was really not a great report and people are there for other reasons for them unlocking value from the real estate but what they said is not particularly great. there are issues about back to school. think about a stock like ralph lauren, rl, this stock is down 30% on the year and makes lower lows every day. i think it's really a situation and a stock picker's market in retail. >> nordstrom is a big evaluation close to 19 times forward earnings, the surprise here in order -- nordstrom. rack up 1%. one thing that concerns me, huge inventory build. not a function of a recent

acquisitiacr acquisition but 11% is not great. i would buy macy's. >> coming up next, a tale of two secondary offerings. tesla and shake shaq selling more but traders had two different reactions. we'll tell you what it is that caused the different reactions in the stock. one area of gaming and sports growing like crazy. we're talking about daily fantasy sports literally taking over the world and we'll tell you how you can cash in on this craze and later, the internet stock hedge fund manager says it can go on netflix and trading at a 52-week low. much more "fast money" live from san francisco straight ahead. why should over two hundred years of citi history matter to you? well, because it tells us something powerful about progress:

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welcome back. >> melissa, shares tanking by as low as 13% as profits beat but sales miss. comp store sales increase 1.3%

and analysts were expecting a 3% rise. steve said the company is focused on rebalancing the menu with more value focused products. the mexican-style chicken chain expects to open as many as 24 restaurants this year and estimates earnings per share between 67 and 71 cents down by nearly 13%. >> kate rogers, thanks for that. that's quite a move and miss on the comp store sales, less than half of what analysts were expecting. >> that's right. the comps that are the problem. the comps were promised which is why the stock went from 98 to 88. there will be a time to buy. it's not ridiculously expensive. that sounds crazy but at 22 times forward earnings it's not nuts. that said, it's not time yet. they will punish the stock again tomorrow. i'd rather buy jack in the box if we got to 85 than el pollo

loco. >> because of restructuring is mcdonalds. new management and the great segment buying things from the ipad or something like that. here is a stock that trades really well in the high 90s and looks poised. if you see a slight uptick in comp anywhere, the stock is breaking out. >> rough day for shake shack. the stock tanking by 60% after announcing a larger secondary offering, $60 a share and the offering paving the way for options trading beginning on the cboe tomorrow. how appropriate, dan. >> it is. here is the thing. a lot of traders are waiting for this, short interest 43%. the float was small on this. this shares that are coming to market here should help liquidity and pave the way for options to be traded. for those of you that believe, you'll have other ways to express this view, but i got to tell you, down 15% on the day and down about $5 from where the price is secondary, that doesn't feel great. i'm sure it's going to get sloppier here. the recent support at $50, maybe

where you take a shot. >> was it just monday when they had blowout earnings but the stock up crazy? it's amazing the roller coaster and the stock. >> this is -- to me, it's way too volatile. it's great that option will be trading and a great way to play the name but i think dan's point is spot on. it's going to go south of $50. it might trade down to levels we saw back in june but if nothing else, 50 gives you something to trade against. next up a nice day of gains for tesla. they will raise half a billion dollars and elon musk will pbuy $20 million and tesla saying it intends to use proceeds for energy business upcoming model three project as well as factory guy. >> the key is elon musk will buy as many as he will buy. we did a descent job. recently when it traded up to 280, we said the fact it

couldn't take out the high of 0 0 20 -- 290 was a warning sign. 225 you buy it and guess what? it got down to 235 or so i think on tuesday of this week. is that enough? i'm not sure. let's see how this secondary plays out. let's see how it trades post secondary. historically, the last couple times, the stock has traded well after secondary. we'll see if it happens this time. people are trying to front run and might get burned. i'd rather buy it if it got mary? >> eight banks agreed to pay $2 million concerning the rigging and currency markets, the civil lawsuits alleging the banks manipulated the markets. the lawyer for the group saying that the banks were corporative and that litigation continues against the other banks that have not settled yet. eight banks including goldman

sachs, citibank, among others and jp morgan was the first to settle these civil lawsuits doing so back in january settling for $100 million but once again, according to reuterreuter reuter reuterss, eight banks settling. back to you. >> mary thompson, thanks for that. samsung hosting an event and taking more direct aim at apple and google. announcing samsung pay, the contact list payment system that lets people buy products in physical stores with phones and samsung unveiling two large high-end sets, galaxy edge 6, plus and galaxy note 5. they are going on sale earlier in the year than their previous generations. guy? >> i'm not a techie but what i'm told, people love the samsung phones. what they don't have going for them is the cool fact tomorrow that apple has to me.

they are a cachet to the name. how do you trade apple the stock? we thought it would trade down to 105. had this huge reversal yesterday and got down to 109 and bounceed to 115. is that enough? may be enough this time. i thought it would over shoot. dan thinks there is a chance but i'd rather, i'm inclined to own it here and potentially see that 105 and miss it and have it go back to 130. >> here is the thing, what have we seen so far? the phone makers are doing very, very poorly. >> samsung specifically in the second quarter alone down 15%. the slowest pace in six years. their smart phone shipments, globally down 15 >> so we saw the others making phones that are not profitable and ultimately, that has to come home to roost with apple. i think you'll see a stock probably 10% lower at some point in the balance out year because at some point, i think that the

differentiation, we started off talking about the pay service. everybody will have them. apple will be really seen for what it is really expensive hardware very soon. >> all right. still ahead, the latest tech craze taking the country by storm. the business of drones and we'll tell you how to cash in on where all the action is. you're watching cnbc first in business worldwide. in the meantime, here's what else is coming up on "fast". >> how would you like to make money off these guys tonight? one company allows you to do just that and it's one of the fastest growing most disruptive forces in gaming today. the ceo of draft kings joins us live on the start of nfl preseason plus, missed out on netflix? relax. because one hedge fund manager says he's found the next netflix and he'll tell us what it is when "fast goes west" returns.

. tonight, 12 teams will go head-to-head in the nfl's preseason kick off but the real winner is jason robins, the ceo of draft kings, one of the fastest businesses in fantasy sports. jason joins us live from where the action is. jason, great to speak with you again. >> thank you, thank you for having me. >> how much is a preseason kick off mean to you in revenues and/or fan engagement? >> well, the preseason is really just the hype coming into the regular season of the nfl, which is our biggest growth period every year. really the time when we add the most new customers and run the biggest games and have the most exciting prizes. >> how big are the prizes because that's a big cost for your business giving away the money and advertising. so what sorts of prizes are we talking about? >> our biggest contest going in week one is a $10 million contest, it's $20 to enter. top prize is $2 million. second prize is $1 million.

$500,000 to third and so on and so forth and that will be kicking off on september 13th, week one of the nfl season. >> how do you measure your return on investment on that sort of prize give away? >> you know, really for us right now it's about growing our user base and engaging customers and having the best customer experience out there. i think that there say tremendous opportunity in this business, and really, you know, at the early stages, which this still is, it's really about those things and right now where draft kings differentiates is by having the best customer experience. we have over ten for the competitor score over the competitor and the favorite site of daily fantasy players. >> i know this is early, jason, you just got a new round of funding, $300 million on july 26th from 21st century fox' sports unit. you're in the midst of growing very rapidly but at this point, are you even thinking about an ipo? are your plans down the rode?

do you see yourself as a tuck in for fox sports or espn or a publicly traded company? >> honestly, we're really not thinking about that right now. we're trying to grow our business build a great customer experience for the players out there and those t thingsendo a business and delivering an amazing product. >> so jason, to that end, how do you grow your business? more than just football? i mean, it's obviously football for many different reasons but how do you grow and make it more global, let's say? >> we are launching in the uk this fall. we're in the process of getting that up and running and we just hired a head of global development, so he's based in london and we'll be not only launching the uk business but the rest of the international business in europe and asia and maybe in latin america, although europe and asia will be the focus. launched a ton of new sports, just this year we launched nascar, late last year we launched soccer, ufc, and we

have a ton of other new sports in mind as we think about global expansion, things like cricket and rugby are popular worldwide in order for us to be a global player we have to offer those sports. >> great speaking with you. >> thank you for having me. >> jason robins, the ceo of draft kings. this is a fascinating business. i have to admit, i don't know much about -- not to anybody's surprise here, but one knock on this business is it burns through cash. the prizes but also spends a lot of money in advertising because the company wants to attract new users and there is only one way to do that and that's advertise sglg he mentioned global expansion. cricket, americanson't g how big this is, cricket. this will have legs but to your point a question they asked, they will get bought by disney or something. it's that simple. there is such a long runway and growing so fast. the cost of expansion is expensive but this is here to stay for decades.

>> it's interesting because we're having this conversation after disney's earnings and media stock got ripped apart after their earnings and studies that show people that engage in fantasy sports watch more sports so sort of a cycle that's going on when you play the games and watch more sports. >> they have to be in growth mode but a huge opportunity and somebody will buy them. you got to give credit to dan. he's been all over the disney movie and said it would trade down to 108. traded down to 108 and i'll give you one more. the counter trend rally. he's talked about that at the top of the show. it happened in win resorts. traded 94.5. these are levels we held in 2012. it's absolutely critical we hold these levels effectively or the stock is in trouble. valuation, this has been a stock that's in since the middle of last year, holds 94.5 and it's any man's guess. >> a lot of love.

on the isle, in the plane, your rooms are adjoining, actually. >> too much information. [ laughter ] >> coming up next, a billion-dollar fund that holds netflix as the biggest position but the hedge fund manager onto the next great trade and undercover drone play that could be headed for a serious short squeeze. much more "fast money" live from san francisco straight ahead. [ male announcer ] eligible for medicare? that's a good thing, but it doesn't cover everything. only about 80% of your part b

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welcome back to "fast money." we're live from san francisco. consumer discretionary, the best-performing sec ttor and energy hitting the lowest levels in more than six years. here is what else is coming up in the second half of "fast money." solar stocks getting crushed over the last couple months and sun power is no exception but we'll hear from the ceo why he think there is is a bright future in solar and the business of drones soaring expected to be worth more than 8 billion in the next five years but the money may be in software, not hardware. the company joins us later this hour to explain. but first, one hedge fund manager placed a major wager on

netflix when the stock was back at the lows. that investment is paid off quite handily. joining us onset is gill simon, the ceo with a billion dollars under management. gill, great to have you with us. >> thanks for having me. >> your prediction is netflix to 10 0 billion. >> we've been talking about this for awhile with disney and media stocks. the market is starting to recognize the power of netflix and the impact its having on the media, echo system so nice to get that recognition and definitely feels like it can be a multi year holding from here as they continue to subscribe and eventually raise price and, you know, just take share in the market. >> we're half way there in terms of the prediction, about $51 billion give or take on netflix. how many years out do you expect it to hit $100 billion or the sign post along the way you like

to see whether it be subscribers or countries or whatever met tricks you want to use? >> just a couple years ago we debated whether or not they could get to 30 or 50 million subscribers. if you have research, you hear people talking about subscribers globally and if you look at some of the markets they are launching, two of the top three broadband markets in the world are china and japan. obviously in the u.s., japan is launching next month and then they have hinted that china is in the works. so there is still a huge amount of growth for them globally and they just sit in such a strong position with respect to getting new content that it's hard to see that stopping. >> you mentioned the crush that we've seen in a lot of media stocks perceived to be losers to netflix' gains. on the way to $100 billion in market cap, who does netflix take down? >> the same companies that struggled in the environment. to single out, one vie coacom.

part of the reason is they skew towards kids' programming. when you think about nickelodeon and mtv, those are the networks, i have three children at home. they go straight to their ipad and netflix. it seems like that trend should continue and, you know, unless you have strong content, disney is a company that does, there are a lot of companies that can be impacted over time. >> i want to get to your newest play and that would be yelp. you took a position in the first quarter and it's interesting because you compared yelp's collapse to the collapse that we saw in netflix in open table in 2011 and in zillow in 2012 and facebook and say yelp has a premiere echo system. what is the market missing because you're completely going against the grain? >> as you just mentioned, we've seen this before. a lot of internet companies have

struggled as they have grown they had hiccups. facebook is a great example, everyone is mobile and hadn't started monetizing. not clear how that would play out. netflix had similar issues and companies had crisis of confidence on wall street that lasted for some periods of time. with yelp, this has really become a has sieve utility. over 100 million users in the u.s. and that number is growing pretty dramatically still. the page views are growing, the number of businesses coming to yelp is growing. this isn't like twitter having usage growth issues, this is a company struggling. >> gill, what is it when they put them shelves for sale, interested and called it? >> sure, first of all, google tried to buy yelp four or five

years ago and they didn't come to terms. i believe yahoo also at one point had been interested in buying yelp. >> that doesn't mean that it's worth anything today. >> well, today, they attempted to buy it for close to a billion dollars. that was five years ago, the company came public at 15. the stock today is at 25. a $2 billion valuation even though the numbers quadrupled. to your point, we're not sure if yelp was approached or put a for sale sign on the business. what we understand is that they were approached by another company that they went to goldman actually explored options but i think it's worth pointing out this is a controlled company. the ceo is long-term thinking and it's very hard to give up your baby when it's at such a depressed valuation and you still see tremendous long-term opportunity. >> so just to button this up, what is your blue sky valuation? should it be with market cap or price per share? >> sure, we think there is a path to at least $2 billion revenue over the next three to

four years. and so you know, most healthy internet companies growing in the 30% range, you can see a four to five x revenue that would be 8 to $10 billion. currently $2 billion. we've seen it before. that's a blue skies scenario but this really has become a great internet utility and they just need to get through execution issues. >> thank you for your time. >> thanks for having me. >> cio of apex. >> we agreed on netflix and gill, i think he would agree that he can be wrong for a couple dollars and be right for 30. half of what he said in terms of blue sky gets you at $50 stock and the good news is every analyst after earnings in the end of july came out and downgraded the name of wall street journal and jim cramer is negative on the name and they may be right in the short term but if he's right again, if 50% of what he says is right, it should be a 40 or $45 shot. i'd still rather own netflix, if

you want to play the game. >> would you rather. >> but they are on to something at yelp if you can stomach more. >> listen, i don't get it but love to hear him compare to a utility like facebook. i know they are having a hard time hiring sales, keeping sales. i would mention $2 billion market cap, $1.5 billion enterprise. there is cash on that balance sheet. it's cheap. i just don't understand why some of those guys interested in preiop wouldn't be interested. when you consider the cash google has. >> coming up, as oil drops, it's taking the solar stocks with it but the ceo says today is what the smart phone was five years ago. he explains next. plus, we'll tell you the one stock up more than 100% this year that traders are expecting another 15% move in before the start of september. much more "fast money" live from san francisco straight ahead.

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solar stocks as oil falls to the lowest level in six and a half years, as the stocks take a hit, solar power is expanding here in california and across the nation. we caught up with the ceo sun power and gave me a tour of a company project on the roof of san francisco's explore tore yum museum and i asked how the project could be a sign of what is to come for solar. take a listen. >> here is a building 100% powered by solar and it's almost 6,000 panels. so you can see sort of the space on the building is constrained so you need a high efficiency panel and that's what we do. these guys are unique, the exploring. >> what happens when the sun doesn't shine? >> when it doesn't shine you're not producing energy.

>> what about today? >> it will be gorgeous in an hour. you want high efficiency because you make the most of the sun in an environment like this. >> you look at this and think five years ago an insulation like this wouldn't have been possible? >> this is 100% solar energy. five years ago that was a goal. the pace of change is so rapid. five years ago the main stream solar was sort of kind of a techie renewable thing. >> five years from now, what do you think are the crazy solar projections that we might think impossible but you think is possible given the curve that we've seen so far? >> i think it's like the smart phone. the smart phone came in 2007 and now everybody has a smart phone. my i watch on. we're going to look back in five years and go can you believe we were building these power plants with transmission cables? now, you know, it's just going to seem ridiculous. you'll say of course you have solar on your building.

>> sun power ceo and president tom warner is with us here. tom, great to see you-all suited up this time around. >> california, the home court. >> exactly. it's an interesting environment because even though you are seeing tremendous demand and growth for solar instillations and energy, the stocks are telling a very different story and you're being held hostage essentially by the price of oil which really has no impact on the fundamental business. how do you get that message across because if the smartest investors understand that, obviously something is going on with the stocks in the entire sector, not just yours. >> well, you know, sort of go to her mentality, a sector thing. kind of crazy because such a massive opportunity and we're talking about the $2 trillion market. you get this giant market. we're a unique company with a unique technology and growing rapidly. thinking this too shall pass.

i've been doing this ten years. so i have reason to believe that will be the case. >> tom, you have a long-time horizon which you should in this space. so with the weakness in the space, is there a land grab going on? are you able to acquire assets sort of on cheap in this environment? >> great question because that's exactly what we're doing. we bought a 1.5 pipeline and we can exploit that over the next few years because we completely believe that the cost of solar energy is main streaming and so if people don't believe that, there is a great opportunity to set the table for really strong growth. >> amazing. the last time we spoke, it was quite awhile ago. maybe a year or eight month ace go and at that time i was asking about the rising cost of capital, rising interest rate and here we are rates probably lower or the same. how much upside do you think it could be for the business not factored in because people were

rising and has not come. what are you factoring in? what's your outlook? >> you know, we launched 8.3. in time we'll see the performance of that yield co and you see that because of the risk premium and the cost capital is a big deal. it's one-third of the cost of the system. it has a big impact and what we see with the public trading is we see that that risk premium compressed. we'll have to trade over time and have to see the per father or mother -- performance, and big asset. >> analyst day in november. we hope we'll see you then. that's supposed to be a big c e catalyst. >> we'll come see you and welcome to california. >> thank you, tom. so much to talk about but we got to leave it there. tom warner, the ceo great to see him and his business, especially interesting time in the space. >> the correlations, the stock is down 40% from the 52-week

highs but the stock up 500% from the 2013 lows here. we're dealing with something obviously it's tied to commodities, the price, something they produced and demand relative to the environment. so you don't touch it here at $23 but should find support. >> goldman sachs likes the name, supposed to name sun edison cut in half. if you give and play the game again, would you rather sun power? >> still ahead, drones taking over the world and josh lipton is outside with a very special guest. josh? >> reporter: melissa, we know drone technology is red hot so we wanted to try out this technology for ourselves. that's coming up next on "fast money."

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drones are taking flight and no telling how big the industry will get. josh lipton got a rare glimpse at one of the hottest commercial drone companies. he joins us on the roof of one market. hey, josh. >> reporter: well, melissa, listen, we know the consumer market for drones is really taking off. what about the commercial market and that opportunity?

so i wanted to try out the technology for myself. take a look. it takes off. and there it goes and transforms. >> that is sweet. >> reporter: andy doesn't think drones are just fun. the 22-year-old is the ceo of free skies that writes software applications for drones and he says these vehicles radically change the way americans do business. the app that launches in october can simplify drone power data collection for a range of industries from agriculture to oil and gas. >> you can automate that entire process and have a drone program set route and go and collect all of that data in a fraction of the time for a fraction of the cost. >> there are a lot of companies building around the drone echo system like aware, which is developing drone software and hardware, as well as sky heel

which is trying to make drones smarter with software and a platform design for drones, it's investors include mark cuban. one big hurdle for the commercial drone market, regulation. if a company wants to use a drone, it needs authorization from the faa and next year, new rules could go into effect that would limit flying drones during daytime hours and below 500 feet, but that's not stopping companies like general electric and midland from getting on board with this technology. now, the drone market, you look at the startups here, startups in silicon valley tracked nearly $200 million so far this year with funding according to cb insights. the drones you saw me playing with in that piece were dji drones. i'm joined by eric chang and i

want to talk about the commercial opportunity of the technology and we have this new drone onset, the m 100 and this is your first effort into the commercial space. so walk us through some of the bells and whistles with this drone. >> yeah, sure, so what we noticed in the consumer role, our products were being used for commercial applications. look at the exceptions now, we're at about 70% of exceptions here in the u.s. for commercial drone use. so this is the m 100, the first effort into commercial drones, real commercial drones and meant to be a developer platform so that people like and free skies and other companies you looked at can write against a drone platform but don't have to build themselves. nobody wants to build the drone, the camera and the visual pipeline and all of the things necessary to just get something in the air. >> and when you think about it, these developers like we profiled who are going to write apps for the drones, how important is that, eric, to think about in terms of accelerating drone adoption from here? >> it's very, very important. that is the thing that is going

to make the commercial drone market go in growth because obviously manufacturers making drones can concentrate on certain things, the things important to them but if you enable the echo system with smart phones, you can have developers against vertical markets and horizontal applications based on expertise. >> thank you for your time. melissa, back to you. >> thank you, josh lipton. let's talk about a drone plan that would be a lot of people associated with go probecause it it's is piper. >> here is a semi conductor company not ludicrous and you think about the fact it was bought by intel for ten times sales here. here is a stock where the options are going crazy. stock up 118% year to date and the price of options at all-time highs report september 1st, off cycle and option traders are expecting a move but about 15% between now and september 4th. that's a massive move. this stock never moved or one

time since it went public in 2012 has it moved more on a single day than 10%. i just add a point, we have a chart there. look at the double top or potential double top at 127. option traders are eyeing that 24% move in late june down from that high here so option prices are expensive. it's a tough way to make a direct bet. >> go pro initiated $76 price target. go pro is the way. >> for more options, check out the full show. we got a special one from one marp c market in san francisco. up next, dan and guy will tell you what they are watching for tomorrow's sessions. 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.

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♪ ♪ i'm going back, back to cali >> tomorrow, just to let you know, we'll be back here live at one market here in san francisco for another jam-packed show with investment opportunities. the hottest ones from the west coast. time for the final trade, guys. what are you watching? >> dan? >> keep your eye on oil. holding on for dear life. downward volatility in u.s.

stocks. >> guy? >> this is great. 3:00. nordstrom says hold onto the games. >> i'm melissa lee, thanks for watching. see you again tomorrow at 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. and i promise to he 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 just want to make you some money. my job is not just to entertain but to coach you so call me at 1-800-743-cnbc so tweet me at jim cramer. today the winners battle back. it was tough to