they are. these etfs, according to what buffet said about the derivatives, they are weapons of mass destruction. because what stands behind an etf are bonds that don't trade. it is larry fink and he is a goodbye and i like him, we're good friends but if he doesn't think they are unsafe, will he guarantee liquidity. so when people want to get out of the etf and sell the bonds set behind them, who the hell is going to buy those bonds? is larry fink going to buy them. that is my whole point. black mark is not going to buy them. >> between bill acman and larry fink, these are great friends. >> i never said anything bad about acman. >> well let me ask you -- >> but fink does what does he and he does a great job. he sells that stuff and it is a great job he does and he does just what he should be doing. his job is to make money for black rock and he does it. and i will tell you that these

etf -- the whole cut, not just etfs, the whole system is a precipice to some extent. >> let me go back to activism and i will take you out tv and put it on bill acman. there are activists that are right and wrong. and bill has had great success at certain times but herbalife has turned out thus far not to be the same success and if you look at jcpenney you could see real damage that took place. do you worry about making the wrong decision yourself? >> yeah, i think we all make wrong decisions, however, i think in a certain way, over the years, i learned this. that if you where conservative and have capital, that is why i frankly got out of the hedge fund business. i did it for a while and actually, i was a good guy. i got been i got paid for being

ethical because in '08 when everybody wanted money i didn't have to give it to them, because i had three year money so i did it. so i sort of made a deal with people. and i bought them out. it is one of the west buys -- the best buys i made. anybody who wanted money i gave it to them, i spent about a billion and a half. and being an activist, it doesn't go together. i have good friends that are activists that make a lot of money. but the problem is if you don't have permanent capital, you get caught in this kind of quagmire where -- you're going to have cycles. we're losing money in chesapeake for instance. not a lot. because we made money the first time, but transocean we're losing money. the energy we did well because cvi worked out for us. but my point is in a strange way some of the companies -- i know it sounds completely weird to you and you won't believe me, but i don't mind them going down because i know in my mind i will

buy more of them and i'm waiting to buy more of these companies. and i know it sounds anti-intuitive, but i've done that all of my life. when the companies go down, i have money and the buying power to do it. and you can laugh and say what if it gets under pressure. but i was a big buyer in '08 and '09 of a lot of companies. >> and you mentioned aig. you are seeing the coo, on thursday. >> he's coming to see me. >> you don't go to see him. [ laughter ] >> what is that conversation going to be like? sort of bring us inside of the room. what happens? >> we're really very friendly. i could make you laugh at my expense -- >> that is okay. >> oh, i'll tell you this, it is sort of funny. in this case, i'm only going to meet him in my office. and he was laughing, when we wore going after family dollar,

so this guy comes in from tennessee and comes up to have dinner in my apartment.and i knew we were never -- and he in my mind, and it is not a secret, he wasn't the guy to run the company but he was coming up to schmoose a little bit and he's laughing and he comes up and he says, we have -- i make a martini and i said have a martini. and he said, i would love to have a martini. i would love to. but i must keep my wits about me for this meeting. i said, it's not going to help you. [ laughter ] >> i want to turn the conversation briefly towards politics. i mentioned it earlier, al gore was here and i mentioned the idea that donald trump believes that you should be his treasury secretary should he win the presidency. officially, do you want the job? >> no.

i think -- i know he says that. but there is no way, would ever do that and it is a joke maybe. i don't know if he is joking or not. >> i think he is serious. >> well certainly not. i'm not going to be secretary of anything in washington. i deal with washington a lot and we're very involved with washington now. and by the way, i have to tell you something, that washington has tremendous gridlock. and we all know that. and there is a law that it is almost absurd. it is almost complete no-brainer not to pass on the next month which is -- and it can be passed and it is closer than people think and i've been working on this for the last three weeks, talking to schumer, talking to paul ryan, talking to all of these guys about -- >> about? >> about re pate ration. in other words, we need a law that allows the companies, before they are moving out like pfizer -- >> so you are against

inversions? >> definitely. they shouldn't be inversions because we have to keep the companies in the country. it is not the right word. it is ridiculous. but i don't blame guys for doing them. warren buffett said it. he said look, i do charity obligations to my company. if the war allows these then people will do them and i don't blame them for doing them. and what you have to do, it is so simple, is to change the law. they -- the only ones that don't want to do it, soo seems to me, because i spent the last -- literal week on the phone talking to all of these guys, centuries and congressmen on the ways and means committee, in the house and on the finance committee, and every one said we definitely should do this. and what you do is pass a law and you say, this money that these companies made over there, they are right not to pay taxes on them. because you know why? because they made widgets over in another country. and they pay taxes in that

country. >> what is the chance -- do you think there is a realistic chance? >> i'm hoping. and i'll be proud of myself if we get it done but i'll be proud of the congressman and senators that do it. i do believe that ryan wants to do it and schumer wants to do and i think they want to do it. the fight is you have these two -- in this -- in washington, the problem isn't these guys aren't -- i find a lot of these guys that i talk to on the phone in washington, i me you won't believe this, a lot brighter than the ceos i talk to. so i really mean that. so it is not that they are not bright. but the trouble is, that they are dug in. that the left wing of the democrat party is dug in on one ideology. and the right wing of the republicans are dug in. and so the argument is -- if we do this and pass inversions, this money we're never going to get. there are companies that will leave like pfizer and as we sit here there are more and more planning to leave.

and it is very, very bad for this country if that happens. they will lose jobs and i think we're much morrow pressive economically than other people do. maybe stanley who just talked thinks so. but what i'm saying to you is that the level of the democratic party, why should we forgive those taxes. and you say, but you don't -- but you're never going to get the taxes. it is not your money. you're never going to get them. they are not going to be repatriated. and not only that, but leave the country. so it is idiotic. well we think it is wrong to lower the tax. the republican side said let them take the money back and don't charge taxes at all. so it is really almost -- it is almost like in a fantasy world. alice in wonderland. the two sides are so dug in against each other. but in this case it would be so bad for the country that if you don't pass this, that what is going to happen, there will be more pfizers. warren buffett did it, pfizer

did it, and there will be a bunch of companies, like you say, the ceo likes to buy stock back, the ceo likes to make money for his company because options and inversions make your stock go up and therefore there is a lot of that happening if they don't pass that up in the next three weeks or months. >> i want to open it up to questions in a few minutes. are you supporting trump, so we know. >> yeah, i'm supporting him. >> so he's your candidate? >> when i say he's my candidate, i don't see anybody else. i want someone to shake up washington with the right and the left wing being so crazy and a think you need somebody who is not just a politician but somebody that can do it for the outside. sow need somebody like a trump that can face up to them and fight and get something done. >> what do you think about then the conventional wisdom that his candida candidacy, early on, there was a view, broadly speaking, that he was not serious. >> oh, i think he's very

serious. i don't agree with that at all. i don't know him that well but i've known him for years and years he's dead serious and he thinks he has a chance to win. and you don't. and i -- i can't say -- i'm not really a politician. i don't go to washington very much. in fact, i don't go at all. but i talk to them on the phone. so i -- i find my time better spent here. but i would tell you, that trump is serious. >> final question for you. you just started a super-pac. $150 million. correct? there is an argument in this country about money in washington. and the roll that money plays or shouldn't play. and i just -- just walk us through your thinking of starting the super-pac and whether you think fillo sofically -- philosophically it is a good or bad thing. >> i think if a super-pac discloses what they are doing -- the law that you are talking about was because they weren't

disclosing. it was secret. money was being given in secret. but i -- i see nothing wrong with going in and trying to press your point and trying to get things across in washington. the trouble is that most of the time these guys in washington just go out and try to raise money. and they keep working on raising capital. i think if you really want to change the laws, it should be more like in england where there is a certain amount of money the government gives. you want to go for government, you pant certain tests. i haven't thought about that. but you pass certain tests and do certain things and show certain records an they give you money. and now you don't have to worry and you don't have to worry about kissing somebody's -- to get the money. and this is what should happen. that is what i think. >> thank you, carl. let's open it up to a handful of questions. >> we've been listen to carl icahn speaking at the deal book

conference with andrew ross sorkin. talking about the role of activism and how he is a long-term investor and he came with a list of how many companies he owned for multiple years. also talking about aig, a recent target and his plans to meet with the company's ceo on thursday. and he also talked about the energy patch, how he is losing money. done well because of cvi but cheaper pricesin tice him to buy some more. karen, where would you go first in this conversation. >> he talks about how long-term he is. and you get the call, carl icahn is on the phone for you, you think something is happening right away. some of the executive compensation which is a hot button for him and the issues i think this is fine to be short-term in terms of cutting -- cutting excess compensation. i think it is good to set long-term goals. but the other thing that is interesting is how big some of the targets are getting. things that used to be

absolutely just -- >> unheard of? >> yeah. you look at aig, that is more difficult for him. he is probably charming at his dinner at house i'm sure. tells great stories. >> he did make a point that the ceo is coming to see him as opposed to vice versa on thursday. >> but the aig building downtown is exquisite. >> beautiful architecture. >> but i talk about the permanence of capital. you can't be a activist and a hedge fund. it is too difficult. permanence of capital allows to you be wrong for a long time and he has been admittedly so on a number of different stocks. lng, fcx notwithstanding. so has he picked a bottom in energy. i don't think so. i think he'll continue to go into that space. >> i think for the viewer out there to take away from what he just said, what karen was speaking about with an aig or apple. he owns 53 million shares of apple.

this is not a trade or a short-term position. when is he going to tweet because apple is down. he is leaving this one for his son. and it is probably the same thing for aig. and then you look at more things like e-bay last year, he wanted to see a spinout of paypal and he did it and the same thing with family dollarment those are the "fast money" strads you should -- trades you should be thinking about. >> he said at some point he is buying more energy. he didn't say when. and that is interesting because energy was up today and has bounced off the lows so much if you look at the xle, getting to the 200-day moving average. now look at the 13 d's if he starts filing saying owns more shares in the next couple of moz, that would be then at a point where i would start to buy energy but not for now. >> one thing to his credit, when biotech was the absolute worse thing you could own and m clone was single-digits, he bought it. he bought it in size.

so he does like to be the contrary an. >> coming up next, tesla is soaring despite missing on earnings. a conference call about to get underway in a few minutes. we'll hear from ceo elon musk. and a couple of investors could be attractive takeover candidates. we'll give you the name. and later, if history is any guide, now to be the time to buy retail stock. traders making a lot of money. much more "fast money" straight ahe ahead. sold every month. this is a very big problem for us with respect to fast and efficient transportation. it's kind of a losing proposition to keep going this way. we are trying to tackle the problem with several different modes. one of them is the brand new metro. we had a modest forecast: 110,000 passengers per day in the first line.

we are already over 200,000. our collaboration with citi has been very important from the very beginning. citi was our biggest supporter and our only private bank. we are not only being efficient in the way we are moving people now, we are also more amicable to the environment. people have more time for the family and it's been one of the most rewarding experiences to hear people saying: "the metro has really changed my life."

welcome back to "fast money." let's get to the other big story of the night and that would be tesla. you see it there popping in the after-hours session, pretty much the highs despite missing on earnings. phil le beau has more on the quarter and it is really about the guidance for the full year. >> right. the guidance for the full year, which left basically rests on what happens in this quarter, the fourth quarter. let's quickly run down the numbers for the third quarter. there was a loss of 58 cents a share. wider than expected. most were expecting a loss of 50 cents a share. revenue coming in slightly lower than expected at $1.24 billion. but as you mentioned, melissa, this is all about the guidance in terms of how many vehicles tesla plans to deliver in the

fourth quarter and therefore for the full year. and their guidance is that they will deliver between 17,019,000 vehicles in the fourth quarter. that means they expect to deliver between 50,000 and 52,000. there is no shortage of people out on twitter and the forums saying they are lowering guidance because they said they would deliver 50,000 to 55,000. they are making 50,000. that is what they talked about. they are talking about production with the model x. on the investor news letter they put out a note saying the primary limiting factor to q4 deliveries is the near term ramp on the model x production, with the biggest constraint being the supply of components related to the second row monopost seats. and we're going to hear from elon musk on the quarterly earnings call.

we'll hop on that and bring you his comments. tesla a nice pop after hours jumping more than 11%. melissa, back to you. phil le beau, thanks for that. and as phil mentioned, tesla ticking higher as we await the conference call. but the second part of the excerpt is these factors add uncertainty to the build plans but we will emphasize quality and we think that is the right decision for customers. i think in another quarter in which the context is different, is opening the door to a miss on q4 deliveries. >> so what is going on here in the stock. so a couple of things. i think people check up on the short side. and correct me if i'm wrong. each earnings report is a selloff in the tock and people are trying to get ahead of that today. because this quarter to me, it was good. i don't think there was any great shakes given the company's value apgs and given the environment -- and given the environment we're in. the people are looking past margins declining just a bis, but all about delivery.

225 is a pivot level. and let's see what they say in the conference call. i think it will stay from these levels though. >> i would say the expectations were not high. the stock is up 23% in the last month or so and every preview that i read expected them to actually guide down the full year deliveries here. but here is the thing. this is the third guide-down since the summer sow have to get a sense they are making two cars that in very much demand on the same production line and talking about building out the giga factory for the stationary storage and they have to raise capital for it. and to guy's point. i think 240 is probably a level that it sees some resistance in the near term. >> you don't go out and buy this tomorrow morning or in the after hours at 231 or whatever it is trading for right now. maybe they miss. i don't know. the sentiment was so bad coming into this. it wat at 270 not barely a month ago. so you are going to have some positive reaction to this less than negative news, i guess. to me, what concerns me, is this

reminds me of amazon. where people look past the fact that they are losing money, that they are burning money. and all avenue sudden you wake up one day and investors are very concerned about it and it goop -- gaps lowerm and if it gets to 180, i might take a peek at it. >> and 180 would be the year's low. >> and supportive of the last several years. >> and the 230 level is what we were at a couple of weeks ago, mid-october. so we'll have more on the tesla conference call when it gets underway in 8 minutes. meantime to cbs. seeing volatile moves in the after-hours session. julia boorstin is live in los angeles with the key takeaways from the call. julia. >> well, melissa, the kre less moonves saying they are looking at different options for the all access app. it is possible they could after a $10 a month version with no ads. $2 less than the hula ad free app which many including netflix ceo has suggested is a force for

court cutting. he struck a bullish tone on the call on the traditional tv bundle saying predictions are over blown and not only is traditional tv advertising rebounding but cbs is finding more ways to make money from dvr and digital viewing. >> as distributeives roll out the skinny bundles of far fewer packages, we will be part of the packages because of the strength of our content. as we've proven in the deals we've done, we will get paid even more per subscriber in a skinny bundle than in a traditional bundle. >> moonves added it is likely one or more media tech companies will launch in the next year which will add rerve. he guided to a particularly strong q4 saying the ad mket is strong and that nonpolitical ad revenue is paying to be up by low single-digits. he said the next 12 months looks

like it will be strong. now he wouldn't divulge the number of subscribers that they have but he did say they are interested in investing in more original content beyond the star trek series they announced this week. melissa. >> julia. than thank you. karen, let's go to you for this trade. >> i don't know how well it was received because there was financial engineer. i think the revenue miss weighs heavier than the earnings beat. so i won't jump in here. i would let it settle a little bit. >> gee? >> you want to make a read through to disney. but if you look at the cable portion, they miss. they beat on entertainment and it was a revenue miss over all. they have been underperforming since the beginning of 2014. it is not an expensive stock. it is not ridiculously priced. the read-through is disney. i can't believe disney under rod rails will miss two quarters in a row. so i think -- i apologize, bob

iger. i think you'll see the upside in disney on wednesday -- thursday, i believe. >> is the disney read-through a fair thing. >> that is what i punched up. when i looked at cbs, i said you have to look at disney the way it has traded. it has traded up since october so you have positive sentiment going into the earnings report. so for me, if i was long disney, would you take off into tearnins report. if you want call options. but this is the most vulnerable trade here. >> facebook out with earnings tomorrow and that report could send the stock catapulting into one very, very elite club. we'll tell you what that means and how you could profit. i'mmi i'm melissa lee, and you're watching "fast money." in the meantime, here is what is coming up on "fast." it is for certain retailers and we know which does best between now and thanksgiving. we'll give you the names.

plus many high flying ipos have crashed and burned. but could they bet the next hot takeover targets. the names on traders' radar screens when "fast money" returns.

welcome back to "fast money." i'm seema mody. shares of herbalife are down 1% in after hours trade. the nutrition company posted mixed quarterly results has a strong dollar contributed to sagging sales. revenue down 12% clueing foreign exchange rates but rose 5% excluding currency effects. the company raised the full year earnings guidance. herbalife hassen -- has endured much this year. including the conversation with bill acman. >> thank you, seema mody. and we just talked about carl icahn. >> and these two are right at each other. i love to look at fundamentals and i think they are nod trading on fundamentals at all. and there is the idea, if there are withdrawals at pershing, he would need to cover and make the stock go up.

i hate -- i wouldn't want to trade on that kind of stuff, but he has a huge short. 35% short so i think it is a no-touch long or short. >> up next, zillow sinking after a spike on a big beat. the company saying it completed the acquisition of trulia ahead of cramer. we just spoke about the quarter moments ago. take a listen. >> we have between 60% and 70% category share. zillow two years ago only have 30% to 40% category share. so we keep gaining market share in the category. leads to real estate agents for example which is a key metric were up 37% year-over-year this quarter. so despite of what happened competitively, we're growing audience and leads to agents and average revenue per agent and the metrics are moving in the right direction. >> b.k., what do you make the stock. >> the metrics might be moving in the right direction but the stock isn't. and the biggest problem is the real estate market is clearly softening right. so they made a good move as a ceo to acquire the 60% of market

share by going with trulia. but now you have to trade on the fundamentals of the real estate market and that is what you are seeing here. so would you be a seller. i wouldn't be a short seller but any was long, i could get out. >> you can catch the full interview on "mad money" tonight with jim cramer, starting at 6:00 p.m. right after "fast." up next, u.s. steel, stock getting whacked in the after-hours session after posting bigger than expected loss on the materials, a big part of the rally recently. >> disastrous quarter. commercial markets are not improving. steel prices reverse direction during the quarter. they didn't say anything all that good. you have to give a shoutout to mike kuo who said this is a good chance that it would print up to 14. well it got up to 13.5 today and close enough for government work as they say. the commentary is not good. and i think shorts will knock it down to another 52-week low. up next. falling oil prices, should it

boost the major retail stocks but that hasn't happened yet. why is one wall street strategist saying now is the time to buy. and as we head to break. the shares of tesla. the call a minute underway. we'll hear from elon musk and the stock up 10%, $20.67 in the after-hours session. much more after this. vo: know you have a dedicated

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welcome back to "fast money." here is what is coming up in the second half of the show. we are three weeks away from black friday but could now be the best time to buy. the four names that could be set for a retail rally. and tesla call is just getting started. we'll hear from elon musk on the quarter coming up. but first let's start off with the deal on the street. activision snapping up candy crush maker king digital for $6 billion. both of the stocks rallying but king digital trading well below the ipo price of $22. and tom has his own offering. tom. >> here is my offering on the initial public offering side of the story here. if you take a look at the ipo market since the beginning of

2014, kathy smith at renaissance capital, they manage a fund. they put together some numbers. since that time period, 90 ipos have raised at least $250 million apiece. among the ipos, more than half, 56%, are now trading at or below their initial public offering price. that is an important distinction there. over half are now at or below the offering price. here is the interesting part. if you go to 2015 alone, check out some of these stocks. bojangles, party city, box, are some of the four high-profile. bojangles, restaurant chain, down 9%. box, cloud storage, down 7% from the ipo price. blue buffalo premium pet foods, down 10% and party city down 6%. so when it comes to the ipos, all four had double-digit gains in the first day of trading and are now trading below the ipo price. back over to you guys. >> thank you, dom chu.

and let's trade the ipos and karen, she said she wanted to trade bojangles. >> fried chicken and biscuits. you have to come to me. it good well out of the box it. traded up to $28. probable shouldn't have been there. i think it is a good time for this kind of -- this kind of company because you have gas prices where they are. because you have people employed. i sort of like this one. i think it is not crazy expensive here. so this is one i would actually take a look at. >> chicken looked delicious. >> i can't see -- i was talking to the ceo, talking about how breakfast was a big deal for bojangles and has been and other companies that have breakfast all day, and they have had it all day. >> you know what i would eat breakfast all day is shake shack burgers. this is another ipo nobody is talking about. it had a massive year. they report later on in the week. huge short-term interest again. but this is up more than 100%

from the ipo price. i'm not sure if i would buy it close to $50 billion but closer to $40 is a better level. >> you looked like you were going to say something snarky. >> what is wrong with having a burger for breakfast. >> good protein and calcium. >> the lettuce and the tomato. declining price of oil has yet to help retail stocks but right now may be the best time for investors to do shopping for themselves. paul hicky joins us from 30 rock. paul, good to have you with us. >> good to be here. >> i think everybody knows if you are going to buy retail, you should buy it before black friday, but how far ahead of black friday do you do that? >> if you look at the relative strength start of the retail versus the s&p 500, the group's relative strength peaks toward the end of november, just after thanksgiving. so you do see a leg higher in the relative strength toward the mid-october to late november period. then from there, the investors

start getting away from the sector here and you hear bad news about the individual companies. but when you look at individual retail groups, most of them do better than the s&p 500 in the month leading up to thanksgiving and do worse in the s&p 500 in the month to date -- in the post-thanksgiving period. so there is a clear trend and dichotomy between the two pe periods. and if you interested on the individual names, you should focus now rather than when you get the frenzy around black friday. >> does it matter how the stocks per follow coming into this period. i ask this because the retail sector of the s&p 500 is up 4% for the last month so going into this period. >> like i said, it tends to outperform during this late october, november period. and it is 4% in the last month. look at the what s&p 500 has done too. so it is not ridiculously out from reality from the market.

but so you look at individual stocks and individual groups and you see better performance there. like amazon, a case in point. it has a great year. but it has been a high flier for years now. it is not considered a bricks and mortar retailer but it only had one month down in the november month period before thanksgiving. if you want to focus on individual retailers this is a surprising one. barnes and noble. nobody buys books any more. but i know they have the nook. but it is averaging a gain of 9.3% in november pre-thanksgiving. and one down year during the bull market where the stock was down during that period. so investors have gravitated toward the stock during that period. and some of the other more names that we're going to highlight here were urban outfitters, dillard's and abercrombie.

and those have done well. whereas walmart, the king retailer, has been a lag ard during this period and down during the bull market. so there are individual trends within stocks, but if you are looking for retail, this is a good time of year to be in the group. >> okay, paul. great to see you. thank you for those picks. paul hicky of the spoke. these are earnings that we don't often talk about. like barnes and noble. they sell -- i mean they sell books. >> let's stop talking about it. you know what i like -- can i tell you -- he said dillard's macy, nordstroms. the department stores that are u.s. sales here. and this is the moment of truth. if the gas at the pump is going to help out consumers, it is at the next month and a half and those stores, for middle america. so i find those kind of interesting and macy's in particular and i don't mean to step on karen's toes but there is catalyst and activist involved. all three stocks were a 52-week low last week.

>> breaking news on tesla. let's get out to phil le beau with the story. phil? hi, guys. we have a quick update on the tesla conference call. elon musk has just begun the call. a couple of questions regarding the model x. but to give you an update on a piece of news that has just come from tesla. it has a new cfo, jason wheeler has been hired. he is the vp of finance at google but moving over to tesla. he will be the new cfo. we're going to have comments from elon musk regarding model x production and bullish comments we'll have those in a bit. we'll hop back on to the conference call. guys, back to you. >> thank you, phil le beau. and we are expecting them to announce a new cfo because the cfo was about to step down. guy adami at this point, we are holding on to the gains, 12 minutes into the conference call. >> it is 2:30, i know it is still the conference call. i know the bounce -- the people got themselves sideways and

short side into earnings. i think those people are covering. and i think they will rue the way they did and think it will go back down to the 205 level earlier today. and still ahead, facebook is on deck for tomorrow after the bell when traders are expecting a big move in the stock. we'll explain after this break. much more "fast money" still ahead. excellent looking below the surface, researching a hunch... and making a decision you are type e*. time for a change of menu. research and invest from any website. with e*trade's browser trading. e*trade. opportunity is everywhere.

welcome back to "fast money." the groupon conference call is underway, announcing the 2016 revenue guidance which is well below forecast. it sees sales coming in the range of $2.75 billion to $3.05 billion. analyst consensus was for $3.5 billion. this is after the company reported a mix set of earnings and a beat on the bottom line and miss on the top line. also the ceo stepping down. shares right now are halted, waiting for them to resume trade after hours. melissa. >> a lot going on there. seema, thank you. so a mixed quarter. the ceo stepping down. >> there is a lot of strategy shift. we know they came out and it was a name -- whenever. and they started to compete with big box retailers and that hasn't work.

and old mang is -- manager is leaving. they have $1.1 million in cash and $2.2 billion cap. and at some point they will shut down and say give us back our pay. >> shut down? >> the brand has been annihilated. >> you have a groupon for that tie. >> that is why he is saying -- >> it is a pierre carden, 100% rayon. >> and now courtney reagan is at hblgd headquarters with the headline. >> they are just beginning to get into the meat of it. but if you look at the key metr metrics, etsy did add act visit buyers and sellers. in the third quarter as a publicly traded company. the gross merchandise did grow. up nearly 22%. to $568.8 million. however shares plummeting after hours because it is really the

fourth quarter details in the guidance that is dragging down shares. the hand-made and vintage goods retail doesn't expect the year-over-year gross margin trend to continue in the fourth quarter because of shifts in seller services, revenue growth, second, they expect market expenses to continue to grow faster than fourth quarter revenue. third, it expects new hires will outpace the fourth quarter new hires last year. and reiterating the warning from the first and second quarter that the strong dollar will dampen demand for the foreign buyers to the foreign goods. think shareholders are trying to figure out what the earnings results mean. it is hard to see how they fit into the retail industry. melissa. >> courtney, thanks for that. and amazon launched its own section that sells hand-crafted, hand made goods and that is on top of the woes they are facing. >> you don't want to go up

against amazon. that is a war you lose. the quarter wasn't a disaster. it is the guidance that is scaring people. margins will go the wrong way scares people a lot for all of the reasons courtney just said. how you trade the stock was the question she asked. i think you trade it this way. short interest. think about 15%. if this stock is probably going to make a new all-time low tomorrow. if it trades north of 7 million shares, 10 times vol. that could be the short-term, you might get a bounce off of that. that is what you are looking for. 7 million shares and north of that. >> facebook up 30% this year. will it get an earnings bump tomorrow night. what the traders are saying, next. plus, check out share of tesla, holding on to 229 here. we'll hear from elon musk about what is getting investors so excited. you're watching cnbc, first in business worldwide.

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he at td ameritrade, they work 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. the conference call well under way. phil le beau has the details. >> most of the questions so far have primarily been focused on production of the fourth quarter and the model x. and in particular, whether or

not these production challenges that you and i talked about earlier, that were part of the announcement in the third quarter, might be a bigger concern. elon musk pretty much saying i'm not too worried. here is what he said regarding the model x. >> the x is just getting up production. we're making progress with each passing week. actually, seven days a week, every day, i get anpdate on manufacturing progress and what the issues are. and we see no fundamental issues on the production ramp. >> having said that, he has made it very clear, from the time they delivered the first model x and through the earnings release today, that this is a car that has a number of technical challenges, including the backseat, which they are now deciding to move production of the backseats an the internal

structure of the backseat in-house instead of through a supplier. that will see whether that hampers production of the model x as we move into the late half of the fourth quarter and the next quarter. the call is going on and we're going to jump back on it. >> phil, quick question here. are you getting a sense of how back-end loaded the quarter will be for the model x. the language in the shareholder letter indicates that they are still ramping up and fine tuning production and there are analysts on the street skeptical as to whether x beyond the founder series have been delivered. >> no. not enough clarity at this point. there have been a couple of questions regarding the ramp up but so far no clarity in terms of whether or not it is going to slow down or be slower in ramping up than many people have expected. >> phil, thanks so much. jump back on that call. phil le beau in chicago. b.k., what do you make of the quarter? >> i still think you do not buy into this pop tomorrow morning or after hours.

i i think there is more to come out in the conference call. i think analysts will be concerned about production. so again i go back to maybe at 180, i would take another look at it. >> it is about 229 in the aft after-hours session into moving on. facebook reporting tomorrow and some expecting big moves. dan is at the smart board with reaction. >> they will report tomorrow. the option market is implying a 6% move in earth direction. versus the third quarter average of about 3.25. i want to break this down quickly. the stock closed at $103. if you looked at the week options, the november 6, 103 calls an puts, if you add them together they cost $6, that is a 6% move in either direction if you were to buy the weekly at the money straddle and that is really important because when you think about this, you would need to move above 109 to make money or below $97 to make money. if you were just to buy the move. here is the stock it. had the move in sympathy with

zaurn and google. i think you probably see the stock consolidate. i'm not expecting a massive outside move. but for those looking to maybe buy protection against long stock and want to play it directionally, it is implied volatility. much well below the last quarter when they reported so the prices of options in earnings looks kind of fair if you are willing to pick a direction. >> "options action" on friday at 5:30 eastern time. coming up next, the traders tell you what they are watching for tomorrow. stay tuned. when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about.

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before we get to final trad trades, we should know that you at home and three guests can watch "fast money" live here at nasdaq. log on to charity buzz to enter your business. it is for the lulu and leo fund. so please do bid. time for the final trade. dan. >> twitter, i heart the button. >> microsoft. >> it looks like it will head toward 60. >> coors reporting tomorrow morning. i am long and i'm nervous but the stock does not reflect a meet or even close so hopefully the bar is set very low.

>> gee. >> dependent -- tenet health care. thc folks, we talked about it last week. >> i'm melissa lee. thanks now watching. see you back here tomorrow at 5:00 field for all investors. there's always a bull market somewhere. my job is 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 save you money. my job isn't just to entertain but to educate and teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. they were bad. just not bad enough.