wednesday. we've got many more months to go. >> i look forward, by the way, to see you in aspen. >> june 29th, "closing bell" will be live from the aspen ideas festival. we're very much looking forward to it. thank you for having us. thank you for joining us this afternoon. that does it for us. "fast money" begins now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. tonight on fast, a strange phenomenon is occurring in the global market. it could spell big trouble for u.s. stocks. we'll explain what it is and how you can protect yourself. microsoft agreeing to buy linkedin. if history is any indication, you might want to sell right now. we'll explain. and later, worried about a brexit becoming a reality? dennis gartman says he knows the one commodity that will surge. it begins with g, ends in d, may rhyme with old.

first we start off with apple shares falling 1.5% as the country underwhelmed the developers conference. josh lipton is there. >> reporter: melissa, the app store eight years ago had 500 apps. fast forward to today, 2 million apps that have been downloaded. some 130 billion times. ceo tim cook's jobs keep these developers very happy. he started his key note today by talking to the thousands of developers about the company's products and platforms. >> now we offer you four incredible platforms that power these world-changing product experiences. watch os. tv os. os 10. ios. we're going to move each of these platforms forward today. >> reporter: other apple

executives were also on stage today, including eddie cue and craig. developers i talked to, most excited about one change in particular. apple is now going to let them integrate siri into their answer. that would mean, for example, you could use siri to order an uber or book a reservation. apple music, which critics had said was clunky, confusing, now apple revamping that service, trying to make it easier to use and navigate. eddie cue announcing apple music now has 15 million pings, subscribers, up from 13 pl in april. the broader theme right here with the hardware business under pressure as of late, more important than ever for apple to deliver top-notch software and services, both to retain users on these platforms and hopefully also attract new ones. melissa, back to you. >> thanks so much, josh lipton. let's get to this. josh went through the highlights, basically opening

siri, incremental changes on apple music. but at this point, was that underwhelming? was that enough to offset growth in the iphone? >> underwhelming. we learned last week siri was a nonstarter. on the street nobody knew what siri was. >> congratulations. >> you saw it. >> he forgot already. >> sorry. >> the focus for apple is the cash reward. and valuation. you cannot call in two of those three. i think people will -- their products are becoming ubiquitous. there's no way to sugar coat that. other companies make what apple makes and a lot cheaper. now it's the cool factor. i don't know the answer to this, but if this brexit happens and the euro gets trashed, what toes that mean to apple's cash position, which is in euros

right now? are they hedged against something like that? i have no idea. i'm just throwing it out there. the stock is underwhelmed since may of last year. down 28%, s&p is flat. i get the story, but the stock price action is telling you something. >> i would think actually that they are hedged. i wouldn't think they are in the position of taking big currency bets. i wouldn't bet they're entirely hedged. but back to your broader question, i mean, they've got to do something transformative with siri. siri is so bad. i missed your piece. >> sorry. >> a lot of people don't know who siri is, it is the most frustrating thing to use. we see the echo and how interesting that is. if they can do something with that, i would find that incredibly useful. that would be a positive for me, a big positive. >> isn't it amazing we're in a position we're talking about apple and we're in an environment where people are favoring big names that pay out dividends. apple fits that category. yet it can't get off its own

back. >> i think almost the instant depth of the smartphone has been the talk over the last couple of months. i think the iphone 7 refresh is something that we're now kind of two years waiting for this. munster talks very highly of this. i think you have a place where the comps have gotten to be pretty attractive for apple to beat them. i know that's not terribly exciting, but what do we expect from wwdc. this was not supposed to be anything but a software update. so i don't -- i'm not disappointed by this. i'm flat the stock. i sold it last week. i think there's plenty of room to trade this stock around here. i don't see much moving it. i think it could be a place that still an atm, i think we've learned in the last six months, a lot of the big investors are already out of this name. >> i'm also flat the stock. i think it's valued as a hardware company. >> it is a hardware company. >> that's what's being valued

at. >> i think that by its nature, a hardware company that's in decline, if people don't see that ramp for anything to reach for that phone, it's really over for them. >> all right. >> you need virtual reality. you need aies, but you need virtual reality, something to get me to upgrade. i'm going to upgrade, but i'm not chomping to upgrade. >> that's a fair point. we weren't expecting much. but shouldn't apple have been making that transition so we would expect more software as a service for the incurring revenues, that could pay off in a couple of years. we're not necessarily seeing that right now. >> to tim's point, they gave you exactly what we expected them to give you. i'm not saying this would have been different under steve jobs. but in his day he would have -- transformative is the word karen used. he would have taken what is potentially just a humdrum ios upgrade and changed it into

something special. >> maybe they couldn't. >> maybe there's nothing there. but i think it would have happened ten years ago. >> when microsoft is buying linkedin, do you take a look at apple and say, you know what, go out there and think out of the box and do something? >> no, i don't, actually? >> really? >> i don't think they need to be reactionary to this. i know it's sort of stimulating thought about, who needs to buy what, and has the dance of musical chairs has done, you have to buy something. i don't think so for them. i think the question is, does one think priced in here, that you're buying a company where iphone 7 underwhelms, and if you are, the risk/reward is attractive. if you think it's priced in for great things -- >> somewhere in the middle. maybe they're focused on something in the middle. that's why the down side is probably what's going to happen versus the upside where they're going to shock everyone. >> i think this is a company that still has so much ahead of them in terms of services revenue, and that is the biggest

growth part of their business. i realize it's not that big of a part. these guys are going to do it. no one is more loyal than their fan base. >> gene munster joins us from the conference. gene, great to have you with us. let's get right to tim's point, the software and service, incurring revenue from services. when does that happen? when does it start to offset some decline we're seeing in smart fon growth? >> reporter: it grew at 20% last quarter, which is acceleration from 15% in the december quarter. it's only about 10% of their revenue. it's still really too small. it is actually heg that problem. i think the point when investors actually give credit for that is the point where they're not losing sleep over what's going to happen with iphone unit growth. it still weighs on investors' minds about the june quarter. it's hard for investors to look at the iphone 7 and growth because of what happened in june for all the reasons, the points

you've been talking about. ultimately i think they will get credit for their services businesses. it's about 50% more profitable than their core business, but it may take ta quarter or two for investors to warm up to that. >> we've got the iphone 7 launch. what sort of upgrade cycle, how would you characterize it? when the 6 came out, it was a change in form factor. there were major changes with that upgrade cycle. is there that same kind of catalyst surrounding the 7? >> reporter: there's not. but there doesn't need to be to get these numbers to move in the right direction. specifically, if you assume that they sell just as many phones as they sold in the iphone 6 cycle, which i think is a conservative estimate, you return basically to 15% iphone growth in the first half of 2017. and so even though the features aren't revolutionary, the average person who's using the phone minute to minute needs that new phone every couple years. so they can continue to ride

this train until they start to lay the groundwork for some of the bigger things you talked about. >> gene, it's karen. let me ask you, where do you think the ultimate mix will end up in terms of their lines of business to understand what the margins will be, and how this ecosystem ultimately ends up fitting into their whole business plan? >> reporter: the next several years, you're probably going to see iphone right around 50%. it varies between 50 and 65%. the reason why that probably is going to decline a little bit is you're going to see an increase in the services business. it is growing faster than the iphone. ultimately, five, ten years down the road as the new themes come out, like mixed reality and august meanted reality, apple is probably going to be one of the companies that will cannibalize their own business. if you think five, ten years down the road into autos and potential areas, it's hard to say what their mix is going to be. >> gene, we have to leave it there. thanks so much for joining us.

jean munster joining us from san francisco this evening. >> gene makes great points. i think he's the -- his price target, what is that, 50% rise from where we currently are. they need to do a lot of things really well. to karen's point about not using their cash, i don't think they're being rewarded for it anymore. it makes sense with global yields where they are. whether they want to or not, they better put it to work somewhere. otherwise i think they continue to be punished for holding the amount of money they're holding. >> i think they run the risk of actually doing a deal. remember when we were talking about apple car, or things that would really be a disaster if these guys forced themselves into being more of a hardware company. it comes to, where can you takes this ios, where can you actually continue to have mega, mega margin business. clearly the margins are falling. >> we all talked about this. if they're inside the car, it

makes me change my mind on the stock. it actually makes me get back into the stock. >> the car os. >> if they had an operating system inside the car where they integrate everything from voice to music to everything, that gets me more excited than it does right now. >> up next, the deal of the day. microsoft agreeing to buy linkedin. this could be a bad thing more microsoft investors. we'll explain. stocks hover near all-time highs. one technician is sounding the alarm. he'll tell us what has him nervous. the fear gauge just hit a three-month high. one trader made a massive bet that is going much higher. we'll take you behind the trade that raises a lot of eyebrows from the street when "fast money" returns.

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this deal is all about bringing together the world's leading professional cloud, and the world's leading professional network. >> when i think about the opportunity ahead around productivity, business process, and the professional network, it's a tremendous opportunity to expand our ability to grow. >> the combination of our two

companies, having microsoft behind us, just enables us to realize the things we always dreamt of doing. so we're excited about it. >> that was microsoft ceo and linkedin ceo this morning, discussing the $26.2 billion deal between the two companies that had the tech world buzzing today. but microsoft has a spotty history in acquisition choices. hey, dom. >> this is a big deal, melissa, on so many levels. so according to rich peterson, microsoft's purchase of linkedin rates as the biggest u.s. services and software deal of all-time. it also represents by a long shot microsoft's biggest acquisition in its history. but its reputation for big-time high-profile deals in recent years hasn't been all that rosy. remember some of these guys back in 2007?

it paid around $6.3 billion for online advertising company. five years later, it took a charge, wrote down nearly the entire purchase price. in 2013 it bought a finnish phone company. two years later it wrote down the value of that purchase. prior to today, its biggest purchase was for internet phone and video service skype, which announced back in 2011 it paid $8.5 billion. skype is still around, doing pretty well, but questions remain about just how much more it can grow. of course, there's always that one that got away. many shareholders are pretty happy maybe that microsoft didn't end up closing on that proposed deal to buy yahoo for $45 billion back in 2008. remember, fast forward eight years from then, it's worth closer to $35 billion at today's market value. melissa, while this deal by linkedin for $26 billion is

filled with possibilities, there's a reason why at least some are exercising just a bit of skepticism over whether microsoft's ceo can really get the most out of it. back over to you guys. >> thank you very much, dom. now, linkedin ceo addressed concerns about microsoft's past acquisitions. it was to operate linkedin as an independent entity within microsoft. i would remain a ceo and report directly to him instead of a board. so is this deal going to turn out a little bit better than some of microsoft's past ones, tim? >> first of all, you have to consider the price in which they're paying. they're paying seven times sales, which is an extraordinary number. when you think about what they were dabbling in last year with crm, it actually looks like an improfit in terms of what they're willing to pay, and possibly overpay. when i think about nokia, when i think about skype, when i think about these deals, they were late to the party. the world's leading professional

network with the enterprise and cloud presence, you're doing it at a time when they should do these things together. those other ones seemed like they were really, really reacting and chasing to get into an area that they needed to be. and that they were far behind. to say they're getting into social right now is a, you know, a leading exercise for these guys is a stretch. i remain doubious. i think they certainly are showing decent growth. but i wonder how they continue to grow at this rate. i think the professional services space is something that becomes very, very competitive. >> some of the examples how the thing would be integrated are interesting. i hadn't thought about, you set up a meeting in your microsoft calendar outlook and you go to linkedin and cross-reference those people easily, there could be integration there. but the analysts i spoke to today, they didn't now how they'll be monetized, though, how you make money off of that.

that's all great, but what do you do with that? >> i think we talked a little bit before the show about nest. there was the idea of being able to integrate that. and, you know, i -- history has not been friendly to the notion of operating as an independent entity within a much larger one. but i think he's a different kind of ceo. it's possible. >> you're a value girl. are you even looking at microsoft anymore? when i look at it down 9% year-to-date, you open up the show talking about apple, talking about valuation, this should be a sweet spot for microsoft. it's not. it seems to be out of favor. it seems like you're getting two losers. linkedin was on a downward trend. and you wind up the two of them meeting up. i don't know if they make a positive. >> certainly it adds a level of risk. microsoft is riskier today than it was yesterday for sure. i don't think the reaction of

microsoft was particularly popular. it wasn't so big, i thought. >> okay. all right. >> i look at opportunistic. this is a $400 million market cap company, give or take. a $25 billion deal. it's a big number, but to me, the risk is limited. there will be headline risk and maybe risk in terms of people talking about what a lousy deal it was. i don't think it will adversely affect their business. if they aren't able to pull this off, i think there is big upside if they can figure out how to monetize it. what's interesting is when they started talking, they said they started discussing this deal in february. go back -- >> that's exactly when the stock fell off. >> that's why to me they have an opportunity to get into social. yes, granted, at a big price. but a lot cheaper than it would have been two months prior. and they pulled the trigger on something to me that has a high risk, high reward. >> what does this do to twitter? more likely twitter finds a buyer. >> >> clearly the market was

ready to play on that today. the question is, where there is a strategic fit. twitter, a stock i'm long, the guys executing in the space are not necessarily strategic mixes, i mean, twitter is becoming out there on its own really effectively a media brand. that's a big problem for these guys. instagram, eating their lunch. this shouldn't be reading in that much more positivity. it takes a major player out of the game. >> still ahead, brexit fears weighing on the market. dennis gartman's got the best way to play a potential brexit. it's got a lot to do with gold. here's what else is coming up on fast. >> here, on the global markets, here are the u.s. markets. and here's what they're about to do. i won't tell you which will win the battle for your money. plus, traders are betting volatility is going to surge next month. we'll tell you how you can protect your portfolio.

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welcome back to "fast money." let's get to the move of the day. falling to the tune of 1.5%, toll brothers, some of the hardest hit names. it's not just the home builders. home depot hitting a three-month low in today's session. guy, what's up with home depot? >> i think people starting to look at valuation. in november here's a stock that went down to 110 only to move back to levels we saw a couple of weeks ago. i think what's happening now is, people are seeing the s&p, getting a little nervous about the market overall. vix is starting to move higher.

look at a name like home depot, a lot of people have been in it for a long time and saying now's the time to take money off the table. i'll be able to buy it back cheaper. i don't think it's a ridiculous valuation. i think they're doing everything right. i understand why the stock is going lower. i think you could probably see it back down to 120 or so, buy it there. >> on the builders? >> i'm still long polte. home depot was talked about the only spot in the group you could buy and feel safe buying. it's reversed the course now. kb homes is up 12% or so. against the back drop of the s&p, only up 1.6%. they are outperforming. i think they've been beaten up. stay in the trade. >> go on to grades, grasso's trade. >> i'll quickly say, watch home depot against the jobs numbers. it's clear, if you don't have a job, you're not fixing up your homes.

i think you have to be careful on that one. >> uncertainty over whether the uk will leave the european union. got the commodity king making moves. why a company is doubling down on its bet in the competitive world. ♪ you're not gonna watch it! ♪

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don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song. . welcome back to "fast money." a down day on wall street. the dow dropped 133 points. the move sending the volatility index to its highest levels since late february. here's what's coming up in the second half of the show. brexit vote just ten days away. what should you be buying or selling into the event? dennis gartman joins us with the brexit playbook. we'll sit down with a company's

ceo. selling pressure hurt stocks here. according to cornerstone macro's carter, he joins us at the smart board. >> the performance of europe and asia versus the u.s. market, you really get down to what you believe or don't believe in decoupling. you can decouple for a certain amount of time but not forever. a couple tables, and then some charts. this is the cycle high, the actual date. so all of europe measured by the stock 600, peaked first. russell 3000, coming up on the one-year mark. nikkei two days later. number of sessions here. really, what's important is, from those cycle highs, to where we are now, is, of course, the carnage. the nikkei down 23%. and then there's the smoking gun. meaning how long can the russell 3000, 98% of the investable

capital in the united states, how long can that hold out. i don't think it does hold out. this is the comparative charts of the three aggregates. you've got unto itself, u.s. equities measured by the russell 30000 and the stock 600 and nikkei. you're going to get convergence in my view. this is going back to the prior bull market peak. we've got the same circumstance. basically the u.s. unto itself. while they've all sort of struggled, it's still about the spread. and just a little bit further, back to the prior market peak in 1999, the same general circumstance. i think the issue is this. can this hold out and continue to be after 18 months when the rest of the world continues to deteriorate. my thinking is no. >> are there certain sectors, carter, in which the disparity is the greatest of those, and because of that disparity between, let's say, european

financials and u.s. financials or whatever sector you want to pick, that should also happen? >> you hit at the heart of the -- the european financials are in trouble. credit suisse has broken below the lows. but the trouble in financials, not only in the u.s., the second biggest sector by weight, the most important sector. they act terribly. that's one of the big problems. we just don't have support of moneys that are banks and other key, you know, sort of interest sensitive parts of the market. >> carter, good to see you. thank you. all right. let's take a look at the european financials. because the performance has been terrible. whether or not you want to go to financials, karen, or the broader markets. what's your take on this sort of analysis? >> obviously financials have not worked. they worked briefly for a window of briefly where the people -- there was more expectation the fed would raise.

it's very frustrating. it's off the table for the moment. a fed raise. but i don't know. i'm not looking at -- i don't think i'm looking at contagion here. i know there are many that think that will be the case. i don't think so. i think the uncertainty, though, seems to be rising, as i was more confident last week that we wouldn't have brexit. i still think we won't. i don't think things will calm down until the vote actually happens. >> one thing carter is talking about, it's almost like you've got to reverse. at some point they have to trade together after being apart. i could push back on that and say there's a lot of global markets that were underperforming the u.s. for five years. emerging markets, some may say, that's not necessarily the same group of countries we're talking about. if you're talking about where you're getting global growth historically and no one was saying anything about the em underperforming for five years, whether you think the dollar should be trading where it is,

our dollar, your problem, and our fed driving global central bank policy. so i still think the u.s. can outperform. i do agree, and i think it's worth looking at the russell. the russell is where i'm short. the russell 2000. this to me is going to be i think the most energized, certainly the highest leverage built into the short side. if things fall apart, you have credit issues and small cap. that will underperform. >> glass half full or half empty in that you think the u.s. will go down to meet the underperformance of the other sectors, or vice versa? >> i'm always half empty. but that's just the way -- i was raised in a wall street that if it can go wrong, it will go wrong. so i'm half empty. the russell failed at 120. that's a level it needed to close above. it appears to be rolling over. as do the transports. last week i think we had the ewg, the germany having the preemptive strike to the upside.

i don't know what's going on with deutsche bank. i'm not smart enough to know. i thought it was oil. clearly that's not the case. so there are bigger things going on in the european banks. >> the news alert on details at headquarters. >> baidu down as much as 5% after hours on a revenue warning. this is a revised revenue guidance for the second quarter of 2016, in the rate of 2.8 to $2.823 billion. bai durks has taken steps to implement measures requested by regulatory authorities such as modifying practices, and has observed a reduction or delay in spend from a significant portion of medical customers while a review is under way. that's impacting its revenue. the shares are down 6.8% on this revenue warning. >> seema, thank you. quite a drob drop in the after-hours. >> i'm long the stock. the headlines have been really

ugly when you consider the golden goose, which i think this is to the chinese government, could be under some pressure here from the chinese government. i think there's a need to show that they are going after fraudulent activity. and are seeking transparency. obviously are going to have the social issues that the chinese government is going to always stand in front of. so ultimately i think this stock is ridiculously cheap. what's the discount to trade at. i think it's at a place it's starting to get silly. 140 is where i would stop myself out of some of my position. >> this revenue cut 10% of a revenue cut? that is a very, very substantial cut. i don't know that this knee jerk -- it might be closer to your -- i would think it would be down more than this. >> the stock down from recently 190. to down to 150. >> volatility surging to the highest level in three months. the brexit vote, a little over a week away. commodities expert dennis

gartman telling us what you should be buying or selling ahead of that big event.

welcome back to "fast money." almost all of europe ended monday's session in the red as anxiety heightens over the

growing possibility of a brexit. seema? >> melissa, that's right. markets are in full brexit alert. less than ten days to go until the uk referendum. it shows that the lead camp has taken a six-point advantage over the remain campaign, heightening investor concerns that britain will vote to leave the 28-member eu bloc. an outcome that could have widespread negative implications on yirp and dramatically change the rules around trade and regulation. further adding to the brexit debate are powerful comments from the former uk prime minister brown who urged labor supporters to back an eu membership. he played an influential role in the scottish independence vote. it can be felt in the european bond market with the ten-year hitting an all time low. the british pound trading all over the map today on conflicting headlines currently

sitting at a two-month low against the u.s. dollar. >> seema, thank you. now, if britain opts to leave the eu, gold is going higher. how much higher? joining us to discuss is commodities king dennis gartman. dennis, what's your forecast? >> well, as always, i will rarely put a price on something. i will simply say the best one can do after being in the business for over 40 years is to say that i think the trend is up. i think it's from the lower left to the upper right. i think that trend is likely to continue. i think the circumstances prevailing in europe with the advent of the referendum next week, i think it's actually going to be -- the polls are even worse than a five-point lead for the leaveers. it depends who shows up at the polls. right now it looks like those voting to leave the european union are going to prevail. that's going to cause all sorts of problems for the rest of the currencies in europe. i think that puts pressure not only on sterling, but on the

euro. >> clearly people are not -- not clearly. but it looks like people are bidding up gold in anticipation of this event. what happens if a vote remains? do we see the gold flush to the down side? >> you could, you could see gold trade down 15, 16, $20, if the vote is to remain in. i suspect, however, the vote is that they will want to leave. the numbers look egregiously one-sided. the only caveat is the bookies. they take a lot of bets in the uk on these sorts of things. the bookies in the past have been very good at predicting elections, very good at predicting fed policy changes, very good at predicting ecb policy changes. the bookies still say it's 2-1 in favor of remaining, even though the polls show that the leavers have a dramatic advantage. >> you say the pound and euro will go down. so you're actually forecasting a

period in which gold and the u.s. dollar are both higher? >> i think you could see gold and the dollar both go higher. therefore, the proper trade is to own gold in euro terms, or even own gold in yen terms. but predominantly at this point you want to own gold in euro terms. you want to be long the currency that would be the strongest, that would be gold. short the currency or fund your gold in the currency that's the weakest, the euro is second. >> dennis, it's karen. let me ask you something. looking at the pound, for the same bet, what do you think the risk/reward of the pound is versus gold for the brexit event? >> they've beaten up the table so severely over the last month and a half. if i had to choose between one or the other, i'd choose not to be terribly short sterling. i would actually make my choice to be short the euro. i think sterling has discounted the demise of the vote

completely. it could go a little bit lower. you could take cable under one 35. i think having fallen down from almost 160, to below 140, in the course of a month and a half, most of the ill news that would be predicated upon a leave vote i think is already in there. i think the one that is -- that has the most exposure is the euro. because if you do vote for brexit, and i hate that term, if you do vote to leave, if the uk leaves, you'll see at the periphery, other countries say we want out, too. this is very difficult and disconcerting for all of europe. >> thank you, dennis. >> i'm long gdx. when dennis talks about correlations, they're on one day, off the next day. it makes it impossible for a trader to actually trade off of correlation. stick with what's working. gdx is up 90% year-to-date. so i know that dennis likes to

actually hold the physical. i'm using the outperformance of gdx if it goes higher in any market. ultimately the trade is higher. >> in your view at this point, the brexit gold right now, is the risk/reward to be long in brexit? >> i think so, yes. i understand that they vote to stay, there will be a knee-jerk reaction to gold to the down side. i don't think the gold rally is predicated on brexit at all. it started when japanese went to the negative interest rate policy. that's not going away anytime soon. i think as long as rates stay lower, gold goes higher. >> i think you listen to what dennis is saying about the ewi, ewp, spain, italy, spreads are widening today on the ten-year in those two parts of the world. everywhere else we're seeing yields plunge. >> the volatility we've seen in the markets, vix hitting the highest level since february. mike is breaking it down from his favorite chinese restaurant in massachusetts. >> there it is. >> there it is, mike.

>> yes. the vix was higher, so was options. the vix options volume hit the two times average daily volume about 2:00 today. much of that volume were short dated june calls. but i think the part that was most interesting, of course, is to take a look beyond the referendum and see what people were doing there. i think the most interesting and most active option was the july 24 calls trading for about $1.45. over 35,000 of those traded by about 2:00 this afternoon. that would require the vix to be above 25.45 for those calls to be profitable. obviously if you're making that bet, you're making a bet you'll see a significant spike in volatility. that would probably be accompanied by buying protection in equities. >> is it too high? did you miss that window at this point? >> it's closer to being a sale. i think there's more room to go in the volatility index.

i think it goes higher. >> by the way, that is not a chinese restaurant. we're joking. >> you just said it was. >> we're joking because the background was -- that background looks like you could -- >> we didn't say -- >> you can get dumplings there. i was joking. >> four of us were with you. >> is that traditional chinese restaurant music? >> i'm staying out of it. >> mike, thank you. for more "options action," check it out on friday. just the latest company to double down on the popular world of esports. an exclusive interview is next. here at td ameritrade, they work hard. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday.

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shoshow me more like this.e. the business of tomorrow show me "previously watched." what's recommended for me. x1 makes it easy to find what you love. call or go online and switch to x1. only with xfinity. welcome back to "fast money." over 50,000 video game fans are gathering for the electronics expo in l.a., and much more. julia boorstin is live in l.a. with a special guest. hey, julia. >> reporter: thanks, melissa. i'm joined by andrew wilson. andrew, thanks so much for talking to us today. we're here outside of the convention center where you have

5,000 gamers coming in to check out your new games. you announced a $1 million prize for competitive gamers to play your game madden. how are you going to tap into the excitement over esports and make this pay off for your business? >> for us, sports and competition is at the core of our dna since the beginning of the company. esports is the most appealing overall. madden, fifa, and of course, battlefield, and a whole bunch of other products later on. >> you've announced you're investing in the area of esports. when will we start to see esports start to boost your bottom line? >> we've been running large-scale products in asia, where esports has been big for the best part of a decade. i would expect through engagement in our games -- we're not focusing just on the elite levels of these sports, but competitive gaming overall for the entire community. i think you'll see engagement and increased profitability overall. almost immediately. >> vr is a hot topic this year.

you're making a "star wars" game for sony's vr headset. when will we start seeing vr affect your profit? >> that's a little further out, quite honestly. we also announced a racing game with google a couple of weeks ago. there's a whole bunch of stuff. we've got to figure out how to design some of the issues. technology i think will continue to get better. as those three things work forward, i think vr starts to have a big impact for us. >> you laid out the "star wars" road map. three more "star wars" games. the fact that you're tied to the success of those films, or are you? >> i think we are, of course, tied to the success of the films. the good news is, the first one was spectacular. by all accounts our expectations are every other film is going to be great. "star wars" has been big since i was a kid. i was born in '74, and "star wars" was already huge. it's an ip that transcends

generations, transcends geography. and our expectations, we'll be able to make great games for a long time. >> your stock is trading at an all-time high. what do you say to investors who think it's overvalued or doesn't have more room to run? >> come see what we're doing here. we've got a bunch of gamers coming through. the industry's never been stronger. mobile gaming, no signs of abating. you've got streaming coming through. vr coming through. this industry overall has a tremendous tailwind. we are uniquely positioned to benefit from that growth. >> we look forward to continuing to talk to you about everything you guys have in store. andrew wilson, thanks so much for joining us. >> thank you, julia boorstin, as well as our thanks to the ceo of electronic arts, andrew wilson. what's your play here? >> up 8% year-to-date. when i look at my kids, boots on the ground analysis, they love these games. they love the sports. everyone knows the tag line ea,

it's in the game. the first person shooter games when you switch over to activision, i don't know -- i don't want to get into the political correctness of it, but it's underperformed the group. grand theft auto is a whole other game. i don't know if i could even play that game. i don't know if i'm the right age for that game. i think i need to be older, more mature to play that game. >> or more experience in ripping off a car. >> either one. if you go for the laggard, i think you go activision. >> look, the company -- the pipeline of the "star wars" games, all the sports games coming out, it tells you the interest, but also the multiple that the industry should trade at. 20 times trade at a premium to activision. relative value, you stay in the one that's really working. >> you're a gamer. i say that sarcastically. >> and we wonder why we have an

obesity problem here in the u.s. i don't think the valuation is that crazy. they have a great balance sheet. doing everything right. the problem is, the stock failed at 75 1/2. that's where it topped out in november. i think it trades lower from here. >> coming up on "mad money," tech as a whole? stocks that could be winners off the cash-rich election cycle. top of the hour, "mad money." "final trade" is up next. ♪

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the "final trade." tim? >> we're talking about big cap tech. also things in intel. up around $35. a range trade. i don't hate this company but i think you can sell this, especially if you think the markets are pulling back. a name that will not hurt you on the down side. >> we talked about it before. the s&p put if you hold them, if you own them, hold them. i think the volatility will go up a little more and you'll have a chance to roll out of them at a better price. >> grasso? >> ridiculous as this sounds, gdx up 9%. i still think it's a buy. i'm still long. you might see a couple of pullbacks. gdx, buy. >> what's that game you were

playing? grand theft auto? >> i don't play any games. >> linkedin deal, i know it sounds crazy, but twitter up 3.5% today. i think twitter goes higher from here. >> see 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 ma"mad money." my job isn't just to entertainment but to educate and teach you. so call me. or tweet me. has tech gotten its mojo back? should we take advantage of today's weakness? the dow