>> i'm not personally worried because i don't think i'll participate. >> i'm not worried at all. we'll be back tomorrow. somebody else with out at that time. we'll find out who it is at that time. that's it for "closing bell." "fast money" begins right now. >> enjoy. . "fast money" starts right now. live from the nasdaq market site overlooking new york's time square. pete najarian, tim seymour, tim nathan and guy adami. of google launches a new of new gadgets, but can they compete against the likes of apple and amazon. a top strategist who called the summer rallies stocks are gearing up for a move higher in the next two weeks. what's he looking at? he'll be here to explain. and later, there's one beaten down name that's got guy adami pounding the table. what it is and why he's excited. first we start off with the market. the action wasn't in the stock market, though. check out the yield and tenure.

the dollar surging it its highest level in a month and gold having its worst day in nearly three years. so are the markets signalling the rate rise is coming and what could that mean for the rally and your money? tim, what do you think? >> well, i think we're back to, you know, fed-speak that has people at least letting us know where there it is in the fed. i think they make the point this isn't just possibly about one and done. and i think the point is that they are actually concerned about systemic risks in the system. so on a day where we've got the general counsel for the ecb was talking ahead of an imf meeting about what it might look like to take off qe in europe. and suddenly, you have central bank machinations which leave people concerned. but wasn't gold supposed to be this fair weather friend that worked in any situation, including central banks that were screwing up? >> i thought so. a hint of sarcasm there. more than just a hint.

i think the entire day was predicated on those ecb headlines, without question. i think they came out and maybe i'm complete conspiracy theorist. i think this he came out as sort of a lifeline to deutsche bank. clearly, negative rates across europe are not working for the banks. and deutsche bank needs all the help they can get. so conspiracy theorists or not, that stock got a one-day bailout. should gold have worked? i understand why it went down today. but i've got to tell you something. of tim is right. this has been a tough trade for the last couple months. bond yields, what does it mean? i don't think it means anything here for the united states. i still think we're in this deflationary spiral. what. >> do you do with the plays people piled into. utilities, it wasn't just today. yesterday there was also a huge selloff. >> yeah, so it was utilities, staples, the xlp, etf broke down from a range consolidating and a lot of people hanging out. they were being -- thought this was a relatively safe place to be. and i think it does -- it is a factor of positioning. i think it was a very crowded

trade. and here's the thing. of i've just got to tell you, when you look at staples, utilities, metals and mining the way that acted today and obviously had a lot to do with gold. where do you go? what takes the market to new highs? is it going to be tech? i don't know. i don't know if that becomes such a concentrated trade. we know that it is, that you have the same sort of risk. the gbx has done 10% today, when everyone is heading for the door at the same time. i bring that up, because it seems that mega cap tack is a safety trade, just like the others. >> it's a safety trade and the reason i like the mega cap tech still, you look at the yield, growth, all of those factors, all play together. some of the names you mentioned earlier, utilities and so forth. a lot of us on the desk, tim has talked about this a lot, i've been here talking about it. you look at the valuations. are they a bit stretched right now in some of these names? and i think we would agree, say yes, but that's what everyone wants to do so piling in a trade. the most interesting thing, when gold broke 1300 today, that's when the acceleration downward really started to move.

and that was really right around noon. from noon until the close today, it was absolutely gold-led and everything else seemed to follow except financials. it still seems to be the place if we're looking for the next leg up and it's going to have to be if rates start to rise, is going to be something with those financials that haven't been performing yet. >> i think if gold is selling off, it's very constructive signal. that to me was such a safety trade. i don't think big cap was safety. i actually think -- >> you only mentioned gold, not gold plus bonds? >> when i look at today's activity, i think the u.s. bond market is being pushed around by global rates, because this was -- this is the flight to quality. so the fact it's selling off a little bit -- you have to watch the dollar. the dollar's breakout today is above the 200. the dollar struggled getting through there every single time. and everybody's bet on anything on this desk, i have to tell you, is subject to a move on the dollar one way or another. dollar has been sideways. if that's not the case, you've

got to recalibrate. >> i want to connect the dots of what you said earlier. you thought a lot of people were hanging on the safety trades, dividend yielders, not so safe the past couple takes. you also think people are hanging out in technology. what really is left here in this market? or is that the overriding theme. >> a great example. look how expensive the stocks were. on a historical basis relative to the market. so to me, that was a really -- that was a bad trade. i actually thought it was all clear until the december fed meeting and i thought that it was going to be demand for of this. the tlt, it's 135, 135, 138. it hasn't gone down too much here. so, you know, i don't know. maybe it is one and done in december. but big cap tech, i'm just telling you guys, microsoft is trading at 20 times. >> so what do you buy then? >> i actually think, though -- listen, i think we drift a bit higher here, okay? especially if hillary clinton continues to build this lead. i think it's going to be okay. and then you have to get your

arms around what does the rate tightening cycle look like? is it going to be one and done or whatever? and listen, last time, guys, when the market topped out, it was about 5%. 2000, 6%. they need to get fed funds higher sooner than later. >> so what is it, spoos and 2s? that's my girl right there. >> what would you buy in this environment? >> can we talk -- that's what tim taught you, right? levered energy, anadarko up today, and marginally. and i think health care is still cheap and the rhetoric in the health care space is going to wane as we get closer to the election. >> higher rates for industrials. look at the way the autos have performed after terrible numbers yesterday. look at the airlines. and this is where you have a valuation argument. the things we said two weeks ago, someone reported out on gm said the earnings were going to be sideways. >> do you want cyclicals? >> absolutely. and the valuations give you a lot of support, and they give you some defensive nature -- >> the biggest push back i got

on dane right now, when he talks about the valuations and tech space where people are going to hide. i don't agree, at wall. i think you can support some of the levels where they're higher than they have been in the past. because they finally have the growth that actually can support them. >> let's just talk about two stocks. >> let's do it. >> $750 billion in market cap. it's amazon and facebook and there's nobody with a brain in their head that can make a valuation argument. >> wait. you have both of them, right? >> yeah. >> yeah. >> his head -- no-brainer. >> i know. >> growth versus valuation. and let me tell you -- >> when you have growth and valuation. in other words, if you have enough growth for a higher valuation, that to me makes some sense. >> justified. >> when it starts to slow, then things change dramatically. until that happens, we haven't seen it in facebook yet. we haven't seen a lot of these names to the up side. i think a salesforce.com comes in there. you look at sales force right now. look at how that traded today. >> but --

>> really? do you think the 81 to $60 -- you don't think some of that pullback -- >> salesforce.com is a, what's going to happen to facebook -- >> 100% wrong. that went down because everybody is suspecting they're going to pay $20 billion to buy twitter or not. that's why the stock went down. no other reason -- it was heading towards the highs. >> went down 5 or 6% after the growth accelerated. a company trading -- >> so much growth, they continue to acquire, the acquisitions impressive. if they do twitter -- >> hold on. guy adami. >> hello. >> facebook and amazon. are they the next crms? >> are they the next crms in terms of going lower? >> yes. that's what dan was positing. >> if you made me pick between the two, i think amazon has more likely -- has more likely move to the down side than facebook. somewhat insulated in facebook. i think amazon has the potential to give you a tape bomb. >> i think -- i think the

defensiveness in big cap tech hasn't just been about amazon and -- >> how about microsoft? and cisco? >> mid 90s -- >> also paying a decent dividend and stocks relative to their history, depending which history you want to choose. that's the big argument. >> it's true. >> these companies have remade themselves. what's their multiple? microsoft obviously doesn't trade at the multiple. but meanwhile, growth rate -- >> guys, guys. hold on. the nasdaq 100 is 100 stocks. we all agree on that? five of those stocks make up $2 trillion -- >> what's the biggest one of those stocks? what's the biggest -- >> of 40 more seconds of this and that's it. >> what do you want to do -- >> apple trades at 14 with $200 billion -- >> time's up. moving on. >> just saying. >> can we bring someone else into this conversation? >> yes. >> let's do that. >> while wall street grapples whether it will ruin the rally, one strategist says fear not. tony dwyer who toned down his

forecast, here to argue his new bull case for stocks. this is interesting. this is exactly a time when a lot of people were saying this is not the time to be in the markets, or it's a time to have the most cash on hand and we're going to enter a volatile period. why bullish now? >> the day i turn neutral this summer, it was in mid july, in anticipation of 3 to 5% crash and we talked, who cares, a 3 to 5% correction, nothing. but when you're down to 3 to 5%, it doesn't feel like nothing. it feels it's going to accelerate and get worse. we're getting the weakness. and this whole gold move today ties into it. let's look at a time where you've heard about central bank talk about tapering, gold shellacked. interest rates up from 1.4% on their way through 2%. how about 3%. and the markets are up 30%. that would be 2013. so the idea that gold is telling us something, or higher bond yields are telling us something, that's not accurate in my opinion. you want the offensive trade. not shockingly to frequent viewers, tim and i, probably

agree. we call it an offensive bond surrogate versus a defensive bond surrogate. the defensive -- to dan's point, defensive stocks have been overvalued for a long timing. even the professional money managers i talked to in the divide income funds have moved away from them and into the more offensive sectors like financials, industrials. i would even though health care in there where you have some higher yielding names that aren't in those -- that space where everybody else is trapped. >> all right. >> well, here's the thing. so it makes perfect sense to rotate into cyclicals, if you think you're going to get this reinflation of growth. but there is so little areas around the globe that suggest we are going to have this reflaigs. that's the risk and then you have a scenario where possible the fed starts tightening into a weakening u.s. economy. >> let me throw some data by you. in the last 48 hours, all the global economies report their pmis. the vast majority are now positive above 50. according to my friends are -- where i get my charts, as you

guys know, there's a lead by the global pmis to global industrial production in two months with a .86 correlation. for the viewers, that just means they move together. with a global pmi leading. so the data is showing you're inflecting better in industrial production already, and now that should be set to accelerate, and we are -- a lot of investors are worried about what happens when the fed raises rates. could this be a replay of last year? it's absolutely opposite day going into that. the emerging currencies are in an up trend, not a down trend. commodities outside of gold today are rallying. they're in an up trend, not a down trend. corporate credit last year and i was so mad at myself for missing this. the -- remember china? the china market crash last august created our market crash? the flash crash? and then we recovered into the end of the year? corporate bonds never did. yields stayed high. there was still pain in the credit market. it's opposite day. credit is wide open. and obviously, on weak days like

this and yesterday it's not true. i want to buy the weakness. so to the earlier prompt in, i'm not really aggressive right now. i'm getting ready to be pretty aggressive. >> and into the end of the year. >> into the end of the year. >> with the elections happening, with -- >> it's great point, melissa. because typically, if you look at what happens on an incumbent win versus a nonincumbent win in a presidential election, the market typically bottoms before the election. actually, before november. so we've got a couple weeks left with some of this pain. if it's going to go down, it's going down now. >> in anticipation of a -- move higher. >> we went neutral from aggressive, which why wouldn't you make a bear trade? let's talk about brexit. you felt right for two days and then spanked three days later. so i don't want a trend called the down side. what i want to be ready to do is take advantage of it. you can't be aggressive if you're already aggressive. so i turned neutral -- you know, nid july on the show. and it was for that. i'm about ready to get aggressive again.

>> how much of this is bottom up and top down? because to be very encouraged you have to have a view you're going to see the earnings acceleration -- the bar is very low. so i think it's probably a tail wind. but top-down is -- brexit maybe didn't happen. >> the top -- the bottoms-up side is good. going into earnings season which starts next week. right now the -- the current consensus is from minus 2% growth. this cycle, every single quarter, the number has gone up from the beginning of earnings season to the end. so by 3.5%. so you should be betting it's up 1.5%. this is a replay of '85, '86 when the energy market did the same thing. 69% drop on opec increasing production to shut down production. and ultimately, that led to a 55% gain in the market as industrial production recovered globally. >> good to see you. thank you. >> good to see you guys. better watch out, i don't want to interrupt you guys.

>> you're good. >> tony has been spot-on for a long time. my question to him, we didn't have enough time, what would throw a monkey wrench into this whole thing? my sense it would be central bank missteps, which we may or may not be on the verge of. >> coming up, airline stocks jumping today even in the down market and so are another group of travel-related stocks. what they are and if it's not too late to buy. and google with a number of new products taking direct aim at amazon and apple, but may have tripped themselves up in the process. plus, as hillary clinton climbs in the polls, traders making big bets that one group of stocks set to surge in the week. what they are, later this hour.

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welcome back to "fast money." airline stocks jumping today, and that kicks off our top trade names like delta, jetblue, as delta says passenger revenue up for the month of september. and this is part of a broader trend we have seen in the travel industry. in fact, airlines up 12% in the last three months, and stocks like price line hitting an all-time high today, up 17% in the last three months while expedia up 10% in the same time frame. tim. >> first of all, priceline is the premier name.

valuation wise, what's the right multiple? these guys dominate the space 18 times, i think. i think there is a lot of competition from facebook, a lot of competition from google. of but i can these guys continue to carve out their space, property ads, third quarter numbers should be good. gave you guidance. i would stay in that trade. >> you still like the airline -- >> i do. i'm back into a couple of them. i've been in american a long time. calls way out in january, delta just yesterday, because there was huge call activity. jetblue yesterday, as well. i'm in a couple different names. i wish i was in priceline. when you look at the growth, tim, you talked about trading at about something like 18-ish or something -- >> yeah. >> but you look at the cash flows and what their profit growth is annually, 20%. i mean, there is so much reasons we should all have probably been in this name. and have just -- in my case, anyway -- buying back stock trading at 1500 at the highs, give or take, and yet still seems like it's a reasonable price. >> priceline or airlines? >> can i say expedia? >> yeah, sure. >> okay. expedia is one --

>> throw out all of the rules. who cares? >> when you look at some of the m & a going on in technology and reasons people are saying crm is hooking at twitter. look at the data. think of the search data that expedia, price line has. expedia at a $17 billion market cap could be something that got folded into, let's say, a google or any number of other players there. so that's one that's interesting to me. priceline is a cheap stock and have better growth. >> and is the highs are still cheap. that's the amazing part. >> can i throw an airline in, since we're playing a game? >> yeah. >> one hasn't been mentioned but we talk about from time to time, a stock doing well over the past couple weeks, spirit airlines. reports at the end of this month, if you look, here's a stock that's been in a down trend since april. but through 45, and we're pretty close, this stock breaks out. so spirit airlines into earnings might give you the best beta out of all of them. >> still ahead, shares of micron falling after hours. we'll get the latest from the earnings report. i'm melissa lee.

you're watching "fast money" on cnbc, first in business worldwide. in the meantime, here's what else is coming up on "fast." >> guy adami is serving up the pitch, giving you the one stock he sees as a home run for your portfolio. plus, drugs, sex and guns. ♪ ♪ lawyers guns and money >> just a few of the things reportedly for sale on facebook's new exchange. >> i'd buy that for a dollar! >> but could the stumble indicate a larger problem at the social giant? we'll explain when "fast money" returns.

♪ welcome back to "fast money." preparations are under way for tonight's vice presidential debate in virginia.

mike pence and tim kaine expected to square off on jobs, the economy and trade. and one emerging market a big focus if the options pits are right, it could be set for a rally. dan nathan, who surprisingly was left off both tickets, to tell us more. dan. >> so the eww, that's the etf that tracks mexican stocks here. obviously, during the presidential debate a couple weeks ago, everyone was watching the mexican pesos move around as the perceived winner was mrs. clinton. the eww today called really high, six times the average daily volume, most in two trades. one was kind of a lotto ticket out in december but the one i want to talk about in november, expiration. a buyer of 10,000, paying 84 cents when the stock was trading around 49.78, breaking even at 53.84. that's up about 8%. what's interesting about that break-even, you see the etf was hit in the last month and a half. the break-even back towards the august highs so the trader

possibly looking for a move back to that level. i just want to make one other point. here is the five-year chart, seems to have a lot of technical resistance at 55 bucks. just below where those break even but also found a good bit of support at 46, 47. so this maybe just on the day of the debate and heading into sunday's debate, the traders looking for exposure for a bounce in mexican stocks if trump were to continue to slide in the polls. >> is the election the primary driver of this market right now, tim? >> it is now. i would just say that also fiscal policy in mexico is also tied to fiscal policy. if we have a huge fiscal trade here, i would own semics also. an unfortunate trump victory, you could see this thing rally. you had the thrust, 21 on -- excuse me on the mexican pesos probably the lows you get there. trade through 50 here looks very interesting. eww. >> but you would rather semics.

>> i think the eww is a safe way to play this. >> more "options action" friday 5:30 p.m. eastern time. still ahead, google on amazon and apple. but should the search giant bag it? and facebook's new marketplace going live to a bit of a controversy, and you won't believe what is for sale. we've got the details on what could be major growing pains for the company, later this hour. [pony neighing] what? hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony.

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welcome back to "fast money." here's what's coming up in the second half of the show. one stock has had more than 25% this year but our own guy adami says it's about to break out. he gives us his fast pitch later this hour. sex, drugs and guns. no, we're not talking tim's

friday night. a few things that were immediately posted to facebook's new marketplace. got that story later on. first, google's big event launching a number of hardware products aim at taking on. >> google is a search giant and a force in hardware. that was at least the message of google's ceo as he took the stage and introduced a number of new devices and hopes he'll want to use at work and home. that included a new smartphone called pixel $149. qualcomm's processor, four gigabytes of ram, and google assistant built in, the company's answer to apple's siri and amazon's alexa. google's hardware chief tells me that what's going to make the

phone stand apart from the competition. >> the first smartphone with the google assistant built in, which is all of the investment we have made in ai and machine learning. it helps the user have a conversation with google and get things done. >> now another difference between pixel and its rivals, google daydream, the virtual reality platform. ibc does say vr and augmented reality revenue should hit $168 billion by 2020. google, of course, wants a piece of that action. but it believes the future is mobile vr, not pc or console powered experiences. so today it also unveiled a new $79 vr headset that can be used with these new pixel phones. as for content, google saying 50 partners are bringing apps and games to daydream by the end of this year. in addition to all that, google also introduced a new wi-fi router to strengthen wi-fi around your house. a new 4k chrome cast.

google sold 40 million of those. and google home will cost $129 that does undercut amazon's echo by some 50 bucks. so what does the street make of this? i did check in with cantor. it's not going to be financially material in the short term. this is an 8 0 billion company. but he does think google needs to be a dominant player in ai, artificial intelligence. it can't let rivals like jeff besos take the lead. >> josh lipton, thank you so much. this is the latest move as the tech giants battle. we would play a little game of "would you rather." here's a twist. for the short term and for the long-term, could be different answers. we kick it off with google versus amazon in the next three months. or the next three years.

goog google, amazon. dan nathan. >> google pinned at 800 for two months. >> the next three months and for the next year? >> yep, yep, yep. >> for both. >> can you answer -- i don't even know. what was the answer to your question? she just asked 16 questions. >> i it not. i asked two. pay attention. >> apple -- >> answered both with one answer. >> he understand the question. it's google for both. >> he did google for both. >> ask him again for guy-guy. please. >> for the next three months, would you prefer google or amazon, dan? >> for the next three months -- >> google, three months. >> 12 months, google or amazon? >> google. >> see? >> great job. >> why? >> oh. well, here's the thing. so i actually think the news today is really important, okay? what they're really trying to do is create a platform for artificial intelligence. they don't have the devices, branding themselves. and also i think you've got to watch out. this is really coming at samsung, too. everyone is focused on amazon

and apple. if this thing were to be a hit like the echo/alexa thing for amazon, people didn't think that would be something that succeeded in hardware. so i think that's important. so i think this is a great first step for google. >> i feel like alexa has already tied up a lot of partners with its device at this point. so it's nice that google is going to come out. but i would think if i were amazon, i would say to -- if you're going to develop for me, we don't want you to develop for the other people. like we want you to be locked into us. >> right. well, are we playing the game -- >> do you remember the question attention, pete? >> yes. google in the short term, i agree with dan. i think it breaks out over the next three months. if i go three years, i look at the eco system created by amazon. when you look at echo, the driver of prime right now, and you start looking at everything else from dash to the ews, which i think right now aws is the most impressive part of amazon. they seem to be beating those out there in the cloud world. if that's the way they're going to be able to move and shift

themselves around, i think amazon is one of these names like what is it -- cooperman? i think said it was one of his favorite stocks going forward? >> yeah, okay. i'm going to switch gears. i'm tired of this question. new question. move on. google or apple. next three months or in the next year. google or apple, tim? >> i think apple is -- google. next three months. and i would say the next three years, google. you're in a place here in the short run. first of all, remember, we have earnings season coming through for google. i think youtube is going to surprise people. trailing the three-month watch -- excuse me, views on youtube, they're up over 40%. i don't think youtube is given enough credit in this valuation. when i look out over the next three years, i look at the development of these franchises within google. i agree with dan in terms of the hardware. i just don't even think it's in anyone's calculus. if anything, a tail wind. google, google. end how i understand how to play the game. >> guy? >> google or apple, which do you prefer, short term or long term? >> i like this game.

so short-term, apple. why? >> why, guy? >> because google reports, i believe, on october 27th, and they have been prone to throw some -- we like to call in the business, tape bombs our way. so -- >> ooh. nice term. >> so there is a chance you could see that stock move from 5 to 7% to the down side. that's why i like apple in the short term. in the long term, google, because valuation is compelling and harder to replicate google than it is to replicate apple. my opinion. >> interesting. so google -- >> the revenues of the services is only 14%. and it's only the fastest-growing element they've got. so when you look at that, you want to go for a three-year deal. >> so you would prefer apple. of. >> absolutely. apple over all these names. >> i'm going to tell you something. apple services, they grew 20% last quarter. and -- that's off a low base. we should be seeing -- they do not have services in -- they have not proved that to us yet. they just haven't demonstrated that. >> but --

>> we're playing a hypothetical. >> it all adds into the same thing. >> a real game of hypothetical. th this. >> this is real tv, really happening, a real game. >> but where apple has to grow this space, we have a lot more room. >> so you think -- >> the whole eco system. >> i already chose google, google. but i like pete. >> hold on -- i'm going back to apple! >> you know you're with me. $200 stock. >> we're going to sort this out. still ahead -- >> are we going to sort it out? >> no, because tim was google, google. one stock has guy adami pounding the table, but do the traders agree. and shares of micron shrinking. the latest headlines after the break. ♪jake reese, "day to feel alive"♪

♪jake reese, "day to feel alive"♪

welcome back to "fast money." we've got an earnings alert on micron. dom chu in the news room. >> micron reporting a smaller than expected loss and better than expected sales. executives point to improving market conditions for slowing supply growth and improving demand across key segments, a number of them here. one is d-ram, the dynamic random

access memory, the chips that power pcs, increased by 20% last quarter. but prices are down 6%. so the pricing pressure still available around. first quarter guidance also beat sales and earnings per share. the shares are falling now by about 4.5%. 7.2 million shares worth of volume. this was a stock that arguably by some traders takes was set up for a bit of a disappoint. up 20% plus, 11, 12% over the past 12 months. it beat on the top and bottom lines, better guidance but negativity about where the outlook could be. back over to you. >> thanks, dom chu. this is a commodity market, basically. and so prices are lower than expected that you didn't necessarily be a complete surprise. where do you see the stock going from here? >> i think what dom points up, the up 20% year-to-date. and dan and i have gone back and forth, but one thing we agreed on for a very long time, when

volatilities give themselves the opportunity and they're nice and cheap, you roll out. and i think something like intel and micron and a lot of names that moved to the up side, it's an opportunity to move out only options, get out of the stock, any kind of a pullback -- gives you a great opportunity. >> the one thing that's interesting. remember last year it seemed like there was a takeover name all of the time? it's not any more. look at all of the semi activity in m & a and semi conductor. it's about about chips that feed into ai and -- >> i.t. >> yeah, to the point that it's so last-century, you know what i mean? and it's going in a different direction. it will always be a commodity player and probably a stand-alone. >> stock 90% off the lows, though, from may. if you think about it, this shouldn't be a huge surprise. switching gears, time for the fast pitch. this is our new segment, where we give one of the traders the floor to pitch one of their best ideas right now. and the rest of us tell us whether or not they are sold on the stock. so buy or sell. tonight guy is up at bat. so take it away.

>> thanks, mel. we have talked about this now for a while. you did a great interview with the ceo of royal caribbean a couple months ago. a lot of us have talked about this. but the cruise lines got crushed back in february. if you recall, for good reason. zika concerns, the entire travel space got whacked. but what happened there took all valuations into space down to post 9/11 levels. so now we see valuations that are cheap as they have been in the last 15 years. what's the driver? the driver is number one for all companies, china. now there's been softness in china. why? because of capacity overrides. they built too many ships. but the demand is there, and that's an easier fix. also, you have got tacit chinese government approval, extraordinarily important. a lot of analysts see 30 or 40% growth in china over the next five or six years. you also have a 2.5% dividend. why? because they do have great balance sheets, royal caribbean and increased their dividend a couple weeks ago. another good thing a lot of analysts getting on board here, as well. and let's go to the chart,

because guess what? the technicals look good. if you look, we bottomed out. we have this major double bottom here. dan will like that i drew that line. analysts upgrading the stock and a really good chance we see it towards levels we last saw last year, probably close to that $88 the mccrory bank put on it. all the bad news is in, zika is overblown. valuations are compelling and a huge growth opportunity in china. royal caribbean will get you done. >> i want to give the guys a chance to ask questions. stay right there. >> i'm not moving. >> i do want to give you props, because you're terrified of using that smart board and you sailed right through. >> sailed. >> you got that? with no problem. >> cruised right through it, guy! >> anybody have any questions for guy? >> what about the short interest, guy? the one thing you didn't mention was the fact there is a decent short in this stock, as well. is that something that plays into this whole thing? >> to me, that's a positive thing, because shorts will begin to cover and a lot of people got on the short side of this thing

and got offsides in the name. and if you look at the way the stock has performed on good tape and bad tapes, it's outperformed. today on the day the market is down, i think royal caribbean is actually up on the data. so your point, i think the short interest is actually a net positive, pete. >> hey, guy. what do you think about the free cash flow and their ability to buy back stock? that's been a big driver for the stock. there's a question that that could be too much in the price or something that you get a disappointment on it. >> no, i think that -- i just mentioned a great balance sheet increased the dividend. you mentioned on a friday they are buying back stock. that's an incremental positive. can i speak that intelligently into the free cash throw? no. can i speak sbrethly to their dividend yield and the fact they are buying back stock? yes. and, be again, they're incremental positives as well. >> time for the final verdict from the desk. pete, you buying or sell royal caribbean? >> i'm buying everything guy just put up there. he talked about china, he talked about valuation and he also put up a chart that made a lot of

sense. >> guy, you're compelling, convincing and cogent. >> cogent. >> yeah, baby! >> with your tacit. >> tim. >> i like that, tacit. >> fantastic. tacit put me over the top for guy, speez squeezing that one in. >> he had you at tacit? >> i'm a buyer of royal caribbean. i said all along, zika is not something to sell off any of the cruise lines on. it's a great-run companies a lot of free cash flow. i would stay in the name. let's go mets tomorrow. >> dan? >> massive debt pile at 10 billion bucks versus a 16 billion market cap. listen, this is a sell right here at 75 bucks. okay? i think his argument makes perfect sense. but what i'm saying is, he talked about that double bottom down at 65. i don't think you buy it. it's been up 10 bucks in the last, i don't know, couple months or so. it's right at a 200-day moving average. maybe if you get it back toward 70 -- the report in early november. >> last word, guy. >> last word is, turn that frown

upside down. why don't the two of us -- pete mentioned this big cruise ship out in the hudson river over there. maybe -- >> shouldn't pay me to go on a cruise, dude. >> what are you, killing me? >> guy. >> don't go there. >> sorry, mel. >> two buys, one sell. >> which means i win the game, is that correct? >> well, the markets will tell you if you have won the game. >> nice. >> that's a cogent answer by mel. still ahead -- i'm what? sounding off to our own jim cramer about the presidential election. we will hear those comments after the break. and facebook launching its new marketplace as users race to sell items. but it may not be exactly what the social giant was expecting. we'll explain up next. you're watching "fast money" on cnbc, first in business worldwide. parts a and b

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welcome back to fast. billionaire investor mark cuban sat down with jim cramer to talk about the 2016 election. take a listen. >> i'm going to support secretary clinton tonight. i think she is capable. she would make a great president. i think donald trump is just not fit for the job. and so, again -- i also want to be clear. i don't have any deals. i have not given them a penny. not looking for a job in

government. i wouldn't take a job in government. i don't want to be an ambassador. i have no interest in doing anything. i'm an entrepreneur and want to help entrepreneurs. >> catch the interview top of the hour, 6:00 p.m. eastern hydrogen botime here on "mad money" are you looking for prostitutes, guns, drugs? maybe it's time to log on to facebook. entertainment correspondent, julia boorstin, has got this story. julia. >> reporter: melissa, with hours of facebook launching its marketplace feature, people were selling drugs, guns, animals and sex. exploding on twitter and facebook itself. >> shocking that a company that is as in tune to what's going on in its platform as facebook to have those kind of issues come up is a big surprise. i think it's an oversight on a filter. and likely to be quickly

corrected. >> facebook apologized -- i'm sorry, the feature is skinld for facebook's 1.7 billion users to sell items to each other in the app facebook saying 450 million people already visit buy and sell groups every month. and facebook did apologize for the elicit items, saying a it technical issue prevented the identification of posts that violated company policies, saying, quote, we are working to fix the problem, and will be closely monitoring our systems to ensure we are properly identifying and removing violations before giving more people access to marketplace. as this tool rolls out, though, facebook could pose big competition to ebay and etsy, as well as craigslist. but facebook's marketplace has drawn criticism for the fact it doesn't have a secure payment system or star ratings like ebay and security experts say it doesn't facility delivery of the items people are buying and selling that could lead to in-person meetings with unvetted sellers. now this whole thing may seem similar, because it is.

facebook launched something very similar to marketplace back in 2007. it never really took off. so instead facebook shifted the feature over to allow people to post items to sell within its groups feature. so we'll have to see what facebook learned from this mess mishap and a decade of trial and error and see if it yields a better result. >> so many questions, julia. first of all, it's amazing there isn't even -- i mean, doesn't have to be a computer -- somebody saying, you owhat, sex is listed here, we shouldn't list sex for sale on our marketplace here. >> reporter: well, yeah. facebook has very clear filters for the kind of content on its site. remember that picture of a naked girl pulled down by accident, because it was a vietnam -- the filter said young girl naked, pull the photo down. and so there are definitely filters on facebook, but for some reason, there was really a glitch in the filters not working on this content. >> how does facebook actually make money on this?

do they get a listing fee or something? >> reporter: well, at the end of the day, it's all about keeping people within the ecosystem. it's not about making money from are the sales themselves. but facebook wants to keep you within the ecosystem. they don't want you to leave and go to a different app on your phone. could facebook potentially take a cut of each sale? as ebay does? sure. down the line. but right now it's really about making this system work, so people want to use it. >> all right. julia, thank you. julia boorstin. i mean, i don't even know where to go with this. in terms of the facebook trade, is this -- dent the reputation? >> no. >> i would think kids on facebook -- no kids -- >> i think they're going to get this right and if anyone is in a position to actually control a marketplace, it's facebook. so whatever is left of ebay, i mean, that's really what i think you should be scared of, because i don't think there is anything left -- >> and i disagree. i think what's going on with facebook highlights the fact that ebay was supposed to be the slow growth portion that got split up last year, up 19% on the year. all-time highs. it's actually outperformed

paypal this year. i think it highlights the fact that ebay has tens of millions of users. data, data, data. we keep talking about this, tons of searches and i think they have probably tremendous partnership opportunities in e-commerce right now. >> but doesn't facebook have that exponentially? >> a competitor of facebook may be very interested in doing something with ebay. because all of these guys are now aligning, right? >> what kind of competitors? >> 15 years ago, everyone thought yahoo! and ebay would be a marriage made in heaven. it could be amazon, it could be anybody. when you really think about it. so to me, i think the ebay thing where the luster was off last year, it's looking kind of sexy right now. >> isn't that in the trade now? you just said this thing outperformed? >> i'm just bringing it up, man. you poo-pooed it. >> another view here. >> a man thing. >> the biggest thing i take away, we have been talking about this throughout the show, apple, ecosystem, amazon, ecosystem and now facebook, we're talking about the ecosystem. and this is something where

zuckerberg put out this ten-year plan. we all know the acquisitions, 59 acquisitions since 2007. they are moving. there is going to be mistakes along the way. this is a guy always looking forward. >> it's funny you mention that. for google, i think there isn't an ecosystem for google. and that's just lacking in the hardware. they're trying, but no -- what i say to the goolth -- bought google home, buy paper towels -- >> right. >> to alexa, she buys from prime. >> customer base. i don't know if that's -- obviously -- listen, i think if facebook can figure out this virtual reality thing, this stock goes into the stratosphere from here. >> coming up next, "final trade." stay tuned.

"final trade" time. pete najarian. >> talked about it earlier, sales force, crm. paper, paper, paper, giddyup. >> tim seymour. >> google. 21 times next year, something you can own now and next year. >> dan nathan. >> crm, use a 70s stop on that. sold. >> crm, not xrt, by the way. crm. okay. guy adami. >> this is a spirited show.

healthy debate. >> yes. >> and there's going to be debate about this. something is going on in netflix. giddyup. >> interesting. i'm melissa lee. thank you so much for watching. "mad money" with jim cramer starts right now. . my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always work somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to a west coast edition of "mad money." welcome to cramerica. my friends, i'm just trying to make you some money. my job is not just to entertain, but to educate and teach you, so call me. or tweet me. i'll be at cnbc one