remember that? >> i do. by the way, the stock that we'll be issued here at the new york stock exchange, no voting rights. very unusual. >> it will be the ticker snap. what i day. >> we'll see you tomorrow. "fast money" starts right now. >> it is an earnings extraf began z-a on this very busy night. we've got full team coverage. done those stocks are volatile in the after hour sessions. am general is up over 3%. chipotle is higher. filing its ipo in the last hour and there's something in that filing that you might want to

know about. the man who correctly predicted s&p 2,300 will be here why he sees an even bigger move for stocks. we start off with all the after-hours action and the move in amazon. what did you make of it? >> i was hoping we'd see a pull back and the aws number. that number continues to come down. it was 57% back in july. and now it's 47% growth. those rates are coming down and they missed some of the i like that growth rate still even if it's decelerating. that's the area we're seeing the growth and getting margin. when you really look at the fact that somebody like netflix their infrastructure is built upon this aws. there's a lot of customers out there. been waiting for a pullback. maybe i can get in tomorrow. >> it's all about the margins. they gave us a nice top line, missed on the bottom line. they know they have to reinvest

in this business to stay up with all the people knocking at their doors. these numbers were fantastic. the implied volatility, in this stock this is not a big move on some level if you consider where we are and where people are expecting. people are questioning not can these guys execute but what's the cost to stay where they are. >> isn't it all part and parcel? the cost to stay where they are and if they're executing -- if they're giving a forecast in the third quarter that was already lackluster and they're going to spend a bunch into '2017 and they come out here in the one growth area that they have, amazon web services is suddenly not firing on all cylinders or at least what the street was expecting, how are the numbers great? >> i think because i think the top line is excellent. these guys continue to grow -- >> you're just looking at the top line. >> these guys are taking market share -- every day we talk about the impact amazon's having on the rest of the world.

so yeah, i think these numbers are fantastic. the question is are people going to start to worry the cost of staying in the game and competing in transports and competing in retail. >> i don't think so. right now they're consolidated segment operated income. that was the guidance was low and that's what scared the heck out of investors. people had all eyes on that for q1. they guided around 1.1 to 1.8. the street was hoping for 2 plus. great quarter, tim. this is absolutely you buy on weakness here. the stocks up 12% year to date. little consolidation. i don't look at it as a problem at all. stay with amazon. >> let me play the devil's advocate. i wouldn't short it, but i wouldn't own it either. it's pretty mild when you consider the extraordinary run this has had. i don't know that they're taking market share. it's getting more competitive. we've seen so many other players

in the business there and where are the margins going to go and when you're priced like this company is don't you need to have perfection? >> the spending to get those customers, they are far ahead leaps and bounds ahead of the rest of the street in that segment. they spent a lot to get there and i understand your concern going forward, but i would say amazon unquestionable is the leader there. unquestionably is gained market share and significant market share and is hanging on to that market share and that's the important thing to the growth story here as far as long-term. they're not going to lose that overnight. the competition, all the pricing cuts, that's not going to effect that. >> if my time verizon is six months, "fast money," what do you think the stocks going to do? >> it's 40 dollarsish off the high. so when you really look at that we talk about tonight's move, i think it's an opportunity it's going to go higher. it starts to push up toward that 900 number six months out. >> let's extend that. five years out.

>> five years out, that's -- that's an eternity for me, right? i think over a thousand for sure. >> i think i know where you're going with this. if there's one part of the business everybody is excited about is aws. you name it there are people that are playing in this where they're getting this kind of growth. this is ca mod tiesed. is the valuation did he riefd off of aws. are people paying for that part of the growth or they paying for the core model which continues to expand? i think it's the core model. >> there's no question. here's the key. investors have extreme confidence in their investment strategy and the people we're talking to that's the theme we get back. they're very confident in their investment strategy and that's why people are buying and paying a premium for it. >> i would say its both. it's just like apple in terms of you got the billion devices out there. right now when you look at amazon it's exactly what you're

talking about but that's what the aws is building upon as well. they have to go hand in hand. one is feeding off the other. >> you gave your six month and your five year horizons. if you asked me two weeks, i got to tell you no. facebook maybe had an outside down day but again you're starting to see some price action outside of apple today or yesterday is starting i think to be a concern. for a market that to me has gotten come placient. these are the stocks that are going to run out of gas first and hardest. you gave me a two to three week or month view -- >> we had a lot of big cap tech earnings reports for the most part the action in the afterhour session day after earnings, look at this. we're down since they've reported. >> be focused on year to date returns so far and the give back. look at facebook. facebook same drill. facebook's -- >> 13%. >> they gave back a little bit

since then. i giveback is okay. it's healthy to give back like that. the expectations going into earnings. we're significant. you're going to see money come out -- >> there's a consolidation phase. when you have the kind of runs -- look at every one of those names, for the most part has run into the earnings, even ran post earnings and we see the pullback. facebook accelerated that whole thing last night. so that was in a 24 hour period. >> for more on amazon earnings report let's get to jean muenster who joins us tonight. gene, what's the take away here from amazon's results. >> i think you and pete nailed it. it's about the aws numbers. every one knows that amazon guides conservatively and they invest. investors i talk to want to see more optimistic around that aws number. i want to couch this that everything is fine with amazon.

the story's intact. there are 38 points that amazon gave on their press release tonight and one of them stuck out. they hit a kernel in there they added in terms of aws just over a thousand new features this year. that's up 40% from last year. and 40% up from the year before. my point is this, even though aws i think investors were hoping for more for an open ended opportunity like that there's reason for optimism to stick with this and i think all in it could have been better but it's good enough. >> you think those features should provide aws more customers or bigger contracts in the future, that this investment in aws will payoff later on even though we're seeing it slow right now? >> exactly. if you're a small business or even a big business, what you want is all of these features out there. what it allows them to do is quickly get projects up and applications running. so the number of features is a critical feature why people choose aws. that's something that google

lags. i think that's the reason why they talk about that number is they know it's important to customers and so i think that there's a lot of room to be optimistic about aws. i think that was the x factor in why the stock is down slightly but there's still room for optimism. >> what's the one question on the conference call you would ask about aws? >> i guess i want to know what they're doing with big customers. that's something that google cloud has been saying that they're winning more big customers and i'd be curious to see how they're doing in terms of winning over those big customers. >> all right. we'll check in with you later on. he's on the red phone with us with amazon. the stock is down. we have this interesting graphic here. this is amazon after the last earnings report. and what it's done since. it's higher. so it had a big lag lower off that report and it's okay. >> looks like the market,

though. >> that's fair. >> so what's going to drive gross margins? fulfillment was better and we get pushback from customers. it was better in this quarter. i agree with him. i think aws is the driver. i don't think that investors are going to be -- they're not as concerned about cost. i would be buying the stock aggressively on the pullback. this is going -- >> what's going on with prime adoption and where's prime? because amazon prime is the secret to the story here. i want to know what they're doing and thinking. they're also going to be tell us about some trends. this is a very big issue for them. they have to be asked about the impact on their business. >> it's not just amazon we got your am gen earnings as well. the other big story of the hour,

snap, inc. filing its ipo. expected to be one of the biggest ipo since alibaba. before you line up to buy, there's something you may want to know. the international man of mystery who correctly called 2,300 on the s&p 500 is here with an even bolder prediction for the markets. he's getting ready in the green room. you won't want to miss what he has to say. all that and more on this very busy night for fa"fast".

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>> julia boorstin in l.a. with the latest. >> snap, inc. has filed it's long anticipated s 1 the top four underwriters, morgan stanley, goldman sachs now snapping is growing fast. last year reporting revenue of $404.5 million. that's more than are six times growth from the year earlier. average revenue per user in the fourth quarter was a 1.05 and that key average revenue per user number was much higher in north america. it was $2.15 indicating

potential to grow that revenue overseas. snapping is not profitable. last year incurring a net loss of $514 million. the company has 158 million people using snapchat daily with over 2.5 billion snaps created every day. the engagement is dramatic. more than 60% of all active users use the chat service daily and daily active users visit snapchat on average more than 18 times per day. the community spends an average of 25 to 30 minutes on snapchat every day. it is worth noting the user growth is slowing. daily active users grew 7 pfrs from the second to the third quarter of last year but growing only from the 3% from the third to the fourth quarter. there are some interesting risk factors for this social company. the majority of users are 18 to 34 a dem groimpg which snap acknowledges is less brand loyal and more likely to follow

trends. one really unusual risk factor the companies two control factors have control over all stock holder decision anesthetize their voting control will not been diluted. it has no voting rights. they're not aware of any other company that's completed an ipo of nonvoting stock. >> thank you. we've got some more breaking news on snap. josh lipton more on the story. >> that $3 billion offer from facebook four years ago and remember that was a controversial move at the time but it turns out spiegle could have the last laugh. based on cnbc, 25 billion is the estimated valuation for snap. now that number could swing over the next fee weeks based on investor demand during the road show but based on that price we know spiegle and his cofounder bobby murphy are about to make a lot of money. the two men met at stamford

universities. they each control some 20% of the social media start-up. each stake is val ued at $5 billion. snap's biggest institutional share holder is bench mark which led a $14 million investment in 2013. 12% of the l.a. based company at this valuation that initially investment now worth some $3 billion. bench marked by the way also one of the biggest uber backers and investment that will eventually produce another wind fall for that firm. light speed venture partners owns about 8% of chat worth $2 billion. for snap's investors ipo is welcome news. it means they can finally cash in on their actual investment u.s. venture back tech ipos have been few and far between. only 12 took that public market plunge last year according to renaissance capital. >> thanks so much. let's bring gene muenster back in the mix. when i read through the s 1 very

quickly, one of the first lines in the prospective is snap, inc. is a camera company which i didn't get. why would you want to have a hardware valuation if you're being val ued like a social media company which has a much higher valuation? >> you hit it. that's the critical point that people don't get about snap, their mission statement. the reason they say that is they realize at the form the communication is going to change over time. today it's pictures and some text and text will go away over time. pictures, video, this basically we're going to revert back to high row give flicks. that's one of the most encouraging parts of the snapchat story. they get it the importance of the camera as the future of communication. i would point out the biggest concern that i have as investor when you're sitting down at that road show and talking to snapchat, when you think about the analogy to facebook, at the time facebook went public they

had news feed was just getting going and that was so pure and organic to what facebook did well. snapchat hasn't figured out that monetization that's cure to them. that's something that needs to be addressed. >> we got to get back to julia with some more breaking news on snap. >> i want to point out some very interesting numbers here in terms of the amount of money that was brought in by snap's leaders. evan spiegle reported total compensation this year of $2.4 million, now em-ron kahn who has brought in 2015 his total compensation largely stock awards was $145.5 million. so certainly a big stock award there to bring in chief officer em-ron khan in 2015. he brought home more money than evan spiegle last year. he total compensation last year was $5.5 million.

big pay days but a bigger payday for em-ron khan that chief strategy officer going into the ipo here. >> julia, thank you. karen, i know you've been looking over in the s 1. what do you make of this company? you're a facebook investor. >> right. i don't know actually what to make of some of it. clearly they're in -- this part of the growth phase. i'm trying to get a handle on what makes those expenses, cost of revenue. what is in there? they do breakout sales and marketing separately and so i want to understand those costs and obviously the growth curve of revenue, that's critical to this story and one other thing, the seeming decline in the rate of growth of user. that was interesting. i want to understand that a little better. they talk about some product rollout flubs kind of that that i think of as noise, but you do

have to wonder, are they reaching a point of plateauing and so some of those giant growth multiples maybe aren't so appropriate any more. i'm not sure. >> with the demographics 18 to 34 which is a bit of a concern and brings you back to the ar pu. >> you're out of place here with this company. i realize facebook is not cool and isn't that great for investors. this is imperative the engagement on facebook is unbelievable. the critical mass, the first mover status 1.7 million. apples and oranges. i get it. this is where you have to be concerned. where's the valuation? this was the top, baby. that snapchat ipo we've been waiting for it. there's a lot of risk out there and this really was the -- >> my concern was user growth slowing. the second i heard that, we

looked at each other and i was like -- >> did you get twitter flashback? >> i got thoughts of twitter and 158 million daily active users? when you look at the outside, they got 600 million in instagram. facebook is crushing them. the fact that that 18 to 34 i think it was julia that mentioned that is not a loyal group. that's concerning as well, right? there's a lot of things about what she's saying going into this ipo that make me say -- >> how many times do i want to see you put bunny ears and a tongue sticking out and all that stuff. >> i'm with you on that. >> in terms of short-term the impact on the social media sector, the facebooks of the world, et cetera, is this good for valuations or is it bad in that it draws capital away from these other companies? >> i think capital will migrate to the best growth opportunity so i look at facebook and facebook is a stock that we love and continue to love as is google or what have you. i look at a facebook and say, that's probably your best bet

right now to put money in to it. i'm not comparing it to any other names except for the fact that i think it's a great company. >> they talk about some of the investors. listen to bench mark being up there again. these guys are geniuses. they've been apart of 5.7 to 5 billion that's impressive. >> amazon, chipotle still down in the after-hours. amazon it is off the session lows. amgen calls are under way. amazon will be getting started momentarily. >> you're watching "fast money." in the meantime here what else is coming up on fa"fast". >> something big is about to

happen in the market and he'll tell us what that is when "fast money" returns. lpoumetogr hou e coio anatco

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>> we are live at the nasdaq market on this very busy night for earnings. those stocks mofrg around in the afterhour sessions. that call is getting started in a moment. the stock is getting hammered. she's on the biotech blue phone there the one and only gene muenster is dialing in to the amazon call right now. blue phone, red phone is like an east coast, west coast -- president trump hosting

harley-davidson executives but that is only half the store. a mon. >> little bit of drama late. travis kalnich of uber saying he has braug from president trump's economic council so he will not be participating in the big meeting here at the white house tomorrow. here's the note that kalnick sent out to his employees at uber. he said i spoke briefly with the president about the immigration executive order and its issues for our community. i also let him know that i would not be able to participate in his economic council. joining the group was not meant to be an endorsement of the president or his agenda but unfortunately it has been misinterpreted to be exactly that. so kalnick responding to some political pressure there on uber and its ceo. here's who we believe is going to be coming to many meeting. it's a list of big, big names in business including jamie dimon

of jpmorgan. elon must sick, larry fink of black rock, doug mcmillen of walmart, jim mcnerny of boeing. also here today were the executives from harley-davidson. take a look at these pictures. the president and the vice president having fun with harley-davidson walking out on to the south lawn and taking a look at the motorcycles, the executives of course wearing the leather jackets as you do when you're an executive from harley-davidson and you're coming to the white house. then we've got a little bit other news this afternoon that i should update you guys on. nbc has confirmed that there is a plan in place two u.s. officials confirming that the u.s. could impose new sanctions on iran as early as tomorrow. these sanctions are in response to continued terrorist activity and missile tests. the sanctions they say will not violate the iran nuclear deal.

we can tell you that there was a briefing here earlier in the week. officials here very upset with the iranian missile test and also with the iranian support in yemen. so if we see this set of sanctions as early as tomorrow, that would be a response to those two things that the white house here is saying are escalations and destabilizing for the region. >> thank you. despite the new administration's blunt style, the man known to move markets doesn't expect it to hurt stocks. he said something else might. accurately on a trump election, joins us live. he's jpmorgan's global head of derivative. short-term, we're basically at where you thought we'd be at and we think we're in for a pullback here. >> we could have a pullback.

our 2017 views that we still have upside in equities. 2,400 is our target for the year. so overall we are positive for the market but basically what's happening now a bit of come plain essentialsy setting in. how much investors are buying protections very little actually. so there's a bit of kplanssy and positioning is both from the mental and so you if look at the systematic investors, also volatility based investors because volatility has been so low they jack up the exposure and level. from the mental investors they're fairly long. they're beta to market is fairly high. pretty much everyone is relatively long. set up the stage for a little bit of the pullback.

>> say risk on the market that everybody is so come place sent. the policy that he promised will get accomplished we'll get accomplished. they think tax reform is going to come, et cetera he. >> i think there is like a decent probability of tax reform is already priced in the market. it's hard to pin the number. we think roughly two-thirds probability and my in some form it will happen. it's very hard to tell people like fade, go short. you could have this type of 5% pullback that that eventually would recover and buying opportunity really. >> is this long position that people seem to have is that because of bonds money coming out of bonds or this is always equity and this is how long the equity is now and it's longer than they've been in the past. >> it's a mix of things. so that's going to be longer process i would say.

so partially mental optimism. partially is technical in nature. as volatility goes lower and trend turns very positive, it draws lot of investors in the market. so i would say it's a mix of things. from the mental views some very sector views on policies, plus some technical impose. >> i get the position argument i'm 100% on board we're ultra, ultra long. what's going to turn the tide? we know that trump is being very aggressive with certain things out of the gate. the whole budget issue, the whole tax issue. what is it going to be that really turns it out and how long do we have. >> do we have six months? three months? >> i tend to think that what can turn it is basically more hockish spend. and i think this week was pretty uneventful or the message was

relatively so nothing happened. at some point they need to set the stage for hikes and i would be watching either fed meetings or data that will drive inflation data, which may put make people think that they will hike more aggressively. i think that's the most likely catalyst. there are all these sort of political issues and noise which some people do take it very seriously. my personal view it's not going to be the key driver of market because the care of these reforms tax reform is i think still there and that's going to keep people invested or buying the dips. >> marco, thank you. good to see you. he sees 2,400 by the year end. >> the fact that the fed is actually been so quiet and gave investors some room to show -- there are patient. the things i'm watching now, breakdown in transport, breakdown in small caps. they haven't been below 50 since september.

i'm not saying this is an omen or harbin jer of bad news. small caps broke down a year and a half before the rest of the market did. they are leaders so watch these. >> it feels like this consolidation and i would expect some sort of pullback if we don't see the catalyst that we've already had. earnings catalyst has been phenomenal. we're still just sort of trying to figure that whole thing out. any kind of pull back to marco's point i'd be a buyer of that for sure. 2,400 is not a lot of upside. it feels we're in this consolidating area now and it's a matter of where the leadership comes from. tim's talking about transports. they've broken down. somebody else always seems to take the baton and leads it to the next level. >> tech leadership -- >> i just listen to him and listened to the more hockish and

rates rising faster. we've watched the banks lead the market. i look at the banks. i'd rather longer term own the banks especially if we get some sort of pull back in the face of more politically driven -- >> you're not worried that they did not signal at all a march increase? >> no, i'm not. i think you have a much more politically driven fed right now. i do believe that. you're going to start -- we're seeing signs of it and that is going to bode well for the banks. >> the earnings extravaganza continue onz "fast money." those conference calls are well underway. we will bring you all the headlines that are moving those stocks. amazon, by the way, the lows of the session. who can swoop in and buy it? much more "fast money" right after this. head.thsaldyo fint i pm

>> welcome back to "fast money." macy's share getting a boost that the retailer would consider going up for sale. courtney reagan's in the newsroom with more. >> macy's outgoing ceo is open to entertaining friendly buyers to head of identify possible tint to shake up the board.

it would be a very big potential move before lundgren steps down after 13 years. that will happen sometime in march but he will stay on as chairman. now investors are excited about the possibility at least. shares did close up 5%. officially macy's has no comment on this report. now star board owns less than 1% of macy's share. a stake that began in 2015. shares are down 55% since then. the activist investor laid out a proposal last january for macy's to form two joint ventures one for the iconic flag ships and one for the mall stores. star board believed shares would go to $70 per hair is macy's allowed their sessiuggestion. it's typically in the spring. we don't know exactly when.

if star board wants to nominate directors it would likely have to do so 60 to 75 days in advance so that deadline could be coming soon. macy's has been working on unlock the value of the real estate. macy's hired eastdale secure to approach interested parties. it formed a strategic alliance with brookfield asset management to redevelop 50 properties, sold five stores to general growth properties, sold downtown minneapolis store as well. so it has begun some work but didn't follow to the letter the activist suggestions. >> thank you very much. well, we thought this would be the perfect time to play the macy's dating game. our four traders are standing by ready to think who they think should buy the beaten department store. let's introduce them first. bachelor number one is pete. when he's not buying puts and

calls he's looking for a cheap straddle so gity-up pete. >> he gets very sensitive when you mention tiny twitter following. >> wait a minute. >> bachelor number three is tim seymou seymour. and that's his real hair, guys. and you're in luck fellows because the last but not least is our bachelorette. they call her the chairwoman which is strange because she spends most of her time on a couch. go figure. those are your bachelor and bachelorettes. pete we start off with you who is macy's perfect match. >> i honestly -- this was very difficult to me. wro think anybody's the perfect match. it's a very difficult business that they'd be getting in to and the real estate doesn't have the value that everybody puts on it. if somebody's out there, blackstone. if steve schwartzman can figure

it out then there's nobody else other than him. >> david seaberg. >> i agree with you. it's a very difficult challenging sale here. declining revenues, you've got negative comps. there's one company that makes sense hudson bay. they can really leverage the distribution channel there. there's a lot of synergies. they would have to get a partner, though. >> tim, i think somebody's been looking over at pete's white board. >> we're going to have a little bit of a sword fight over you. >> i'm moving seats. >> any way -- >> i like all of your pieces, i want to see them all and i want to break them up. your real estate's probably worth 7 or $8 billion. i also think disney's going to like your parades and all your franchises and all your locations. i think the banks are going to like your credit division. to me this is totally a pe play.

i'm the much cuter bachelor, so i don't care that this guy wants you as well. there's enough of me to go around. >> maybe of you three but karen outranks you all. >> i'm going to spice it up a little bit. i'm going to go with the -- there's a lot going on i think we need both operating and real estate expense. something like blackstone or i think simon property group. we've seen them do creative deals so a little menage actually. >> "fast money" dating game. amazon and amgen on the move in the afterhour session. we got full team coverage. we'll bring you the very latest. e growe om

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for a free quote today. liberty stands with you™. liberty mutual insurance. tadirectv now. stream all your entertainment! anywhere! anytime! can we lose the 'all'. there's no cbs and we don't have a ton of sports. anywhere, any... let's lose the 'anywhere, anytime' too. you can't download on-the-go, there's no dvr, yada yada yada. stream some stuff! somewhere! sometimes! you totally nailed that buddy. simple. don't let directv now limit your entertainment. only xfinity gives you more to stream to any screen. >> it's a jammed packed night for earnings. amazon is tanking in the afterhour sessions. amgen which remines higher. we got complete team coverage. we go to meg on the biotech blue phone, meg.

>> the amgen call is on going, stock is rising after hours as the country did beat in the fourth quarter on revenues. they're forecast came in light on consensus. the thing that's driving the stock up is it's results of a clinical trial for its cholesterol drug. this drug is already on the market, however it was running a longer term study to see whether that drug reduced the risk of heart attacks. we have to wait until a conference in march to get more details on that. that's driving not only shares of amgen up but other companies working with the cholesterol space. remember this is the same drug that amgen has a patent fight going on with. it will be very interesting to see how that goes. he started off very positively talking about that meeting saying the president's interested in working with the industry on jobs, on trade, on taxes. but then of course he did address drug pricing.

listen to this. >> the president was also clear as he was throughout his campaign about the need for us to find ways to bring down the cost of drugs for citizens in the u.s. we want and expect to work with the president and the administration to be part of the solution in that effort. participation with the administration and congress we will seek to advance changes that enable more americans to have affordable access to life saving and cost effective medicines. >> interesting he mentioned congress there of course we have no details about what the president might be planning in termgz of drug pricing. working with congress is he talking about potential legislation. unclear. >> thanks so much. dave, i go to you for this. it is interesting that the pcs k-9 that has been affirmed basically. >> look, the fact that it's been reaffirmed or been affirmed if you will is a big thing for biotech it's another leg.

it brings the market peak sales opportunity from two to three billion. it brings -- it opens them up for opportunity to make a lot more money. the market needed to see this, endorses biotek. they're doing a lot of small to medium cap names. there's a great sign i think for biotech in junigeneral. >> they had all kinds of good numbers. fundamentally we talked about the story time and time again. very inexpensive stock the fundamentally side of it is great. bank of america, give them some credit. put them in a buy today with a 192 price target. that's the analyst you want to follow. >> does the political overhang is that too much? the very first question that merck ceo got was how did the meeting with trump conclude?

>> but it makes political sense to talk about this but we've been talking about this for two years. you can't tell me that this isn't in the price. it's a fantastic balance sheet. how about take the side of the tax reform. for a balance sheet like this they could do something with that money. it's trading right in the middle of the range. i still think it's got to break through 175 before you get excited. >> on amazon, deidra. >> you guys were talking about this at the beginning of the show and it might have been that aws number, the number relating to amazon's cloud business. it came in lower. just not quite as fast. that was addressed at the top of the earnings call. cfo told analysts that they had seven price cuts in the fourth quarter but that's going to be a constance in this business. i think that's really important because analysts we talked to about the cloud say the first phase of the cloud wars was about infrastructure. amazon had the clear lead there the next phase is about add on,

services, apps, what can they offer customers big and small in the cloud and that's where amazon may have more difficulty competing with the likes of microsoft and google. at the same time getting through those earnings, costs are increasing on the call amazon cfo addressed that as well. they're going to continue to spend on video content and continue to push into new businesses. a whole host of them just a few days ago it's creating a new air care cargo hub. the call is still going on. i don't have a red phone guys but i'll continue to monitor on my earphones. >> we won't hold it against you. deidra. >> gene muenster does have a red phone. gene, what are you making of the calls so far? are you surprised by the seven price cuts in the quarter on aws? >> that's the highlight and that explains the reason why aws is weak. they try to temper that because

they're going to continue to do that a typical quarter they'll do one to maybe two price cuts. so that had an impact on that number. that number would have been better. the takeway if i was going to grade this quarter i would give it a b. it just lacked a lot of exciting upside. the x factor they're starting to lay the ground work as a services company. they dodged the question on the call but look for them to do more on logistics. >> thanks, gene. do you want -- if you were an investor of amazon, i know you're not, would you want it to be a transportation company? >> well depends. the multiple that it gets now a lot of it i think is on the growth of aws and if we see that growth decline, even if the top line grows but the margin gets compressed, then that's -- that's a little bit disconcerting. the logistics company part of it which is growing nicely and they've got a lot of other great things that are interesting, that valuation is harder to

justify. >> the cfos talking about video impacting operating income. so these are things that they're spending money on, these are things that are bringing those margins down but this is part of the big picture so i think people been excited about this for amazon. people think they should be spending on content. >> up next, tim betting for a rally on one big bank. ur. cs

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>> final trade time. >> online brokers today got absolutely hammered with the shh waub announcing their going to cut some of their commissions. etrade is the trade. >> or alley orly is one of the auto parts distributor. this is a name that i think is very differentiated. it's going lower orly. keep an eye on it. >> karen? >> i'm looking at ralph lauren. i haven't done anything with it. it was down $10 today on not a bad quarter at all you however obviously the big news of the day was the ceo leaving after

not a long stint fighting with ralph lauren himself. i think there's something there but let it shake out a little bit. >> take this opportunity to buy weakness in financials citibank. go get it. >> see you for watching. "mad money" 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 a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to teach. so call me at 1-800-743-cnbc or s tweet me @jimcramer. how do you weigh the risk of volatility versus the reward of profitable