it will be worth it. that moment. >> clearly not anyhow, alphabet, anything you're listening for on the call >> you know, again, more gr granular detail on the cloud side of things jim cramer earlier said he'd like to talk about longer-term growth as opposed to operational stuff, getting margins up and the cost cutting maybe something like that. >> you said granular like grains of rice. >> look at you, paying attention. >> that does it for "closing bell." "fast money" starts now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. brian kelly, karen finerman, guy adami. tonight on "fast," the dollar sinking to its lowest level in more than a year the chart masters calling for a big rebound. what it means for the market. plus a slew of wall street analysts, seven, in fact, coming out with rave reviews for blue apron's stock. will the bulls turn the tide for the troubled ipo check out shares of alphabet sinking after hours now down 3%. despite the tech giant beating

on thetop of the bottom line profit hit by a fine from the european union that conference call is kick off now. gene munster is manning the red phone. josh lipton is out in san francisco. he spoke with alphabet's ceo, so, josh, we kick off with you. >> melissa, digging into this report briefly here, a couple numbers stand out, one is revenue from google properties $18.4 billion, that's search, youtube. talking to aaron kessler of raymond james, obviously as he points out, that's the highest marg margin businesses for the company up 20 pk he also pointed out reasons for concern in the report. traffic acquisition costs, what the company is paying their partners for mobile traffic. obviously when that's rising, can pressure overall margins a couple other key lines here that stand out, other revenues remember, that includes cloud, play, hardware, that clocked in at $3.1 billion. and other bets revenues. everything from self-driving cars to nest smart thermostats

operating loss of $772 million finally, other key metrics, paid clicks up 52%. costs per click down 23% actually worse than expected as you mentioned, i did have the chance to speak briefly with alphabet's cfo a couple points, one, on that eu of $2.7 billion, obviously wasn't the fine so much that worried analysts and investors but the knock-on effects could you see regulators take similar action against other google products? not willing to say much, simply they've had time to look through the analysis and that, in her words, an ongoing legal matter and i also asked her about youtube. you know, she mentioned to me a few times youtube was showing strength in the quarter but i asked her, you know, youtube has been this force in online video consumption for more than ten years. one she was break going to breat the business and give us a cleaner look po porat suggesting she aims to

give us more ex-closuposure bring you more headlines as they come. >> we'll check back with you later in the hour. thanks, josh lipton, in san francisco. what's your take, karen, on alphabet so far? >> my take is it actually was a good quarter there is some positives for sure top line is great. you know, tac, that was weaker so that's -- >> traffic acquisition -- >> right so that was a negative there i think there's great uncertainty about this eu fine, not just the fine, itself, if somebody knows if that's pretax or after, let me know. i'd be curious that doesn't matter. just curious more the question, what is the ongoing business going to be like in the eu uncertainty isn't a great thing. we're going to have uncertainty on that front for a little while. all that having been said, though, i don't think the valuation here is crazy at all the stock's run up, had a big month in the last, i don't know, maybe 50, 60 points since it had sold off after the eu fine so maybe it was just a little bit ahead of itself. optimism was too high going into the number still, this is an extraordinary

business like josh, i would love to see more youtube i don't know that they don't break it out more means youtube is weaker or stronger. >> right. >> or the other business is weaker or stronger or they don't want to do i don't know i'm guessing that's a very, very valuable business that doesn't quite get the multiple i think it would if we knew more about it. >> going into the quarter, past three months the stock is up 13%. is is ththat the context in whie take the -- >> last week, i said i thought google looked the best my inclination is google will rally the most after earnings. if you sat down, laid out the numbs they just reported and asked me would i reiterate the stance 100% i would have reiterated the stance what are people looking at a plus b equals c. c is revenue, very good. a company that trades at 25 times next year's earnings give or take, probably has high 20% eps growth

but people are concerned and gene munster is going to talk about this, paid clicks up big, cost per click down dig. >> right. >> by the way, that was the same story last quarter and nobody seemed to care it's been an ongoing story one of those things people don't care until they do -- >> it's been ongoing since the shift to mobile. >> exactly. >> the growth stl but it's cheaper. >> so what's up with the stock -- >> look, to me, it wasn't about the earnings necessarily you're right, if you look at it from an earnings perspective, it was a decent quarter the plas, you know, essentially the issue that they have in the eu right now isn't overhang on this stock the uk, alone, plas, the clicks, alone, accounted for 51% 51% of all search. that's amazing to me that's an overhang, it's going to affect the stock. i think investors are concerned about it you know, from my standpoint, again, they need to come out and talk about this. for them not to make comments on this on the call would be devastating in my opinion.

investors need to hear about it because there's a knock-on effect. >> forced to choose, buy or sell right now, down 3%, what would you do >> i'd buy. >> okay. >> listen, it was a great quarter. if we're looking for growth, it's a reason why this because been bn oone of the names, whero i get growth get it here. they have great top line growth. the problem, i agree with dave, it's a very good point, web y w have this uncertainty, overhang, what's going to happen in europe, how much that's going to affect their core business model, it's going to be hard for people to get excited about. i think you gbuy it down here, think you buy it here on the idea you're going to get more clarity and once you get that clarity, we should be -- >> i get that concern as a question mark over their business model in europe, but why didn't that surface way earlier -- >> it did. >> listen -- >> we knew about the fine, we knew things had to change. >> why didn't you talk about that >> back in june. >> i don't get >> as early as last week we were talking about this on the desk, specifically this issue about

google, setup for the quarter and the fang names this is one that presented the most risk from the standpoint -- >> i agree this is exactly the same issue that happened at 2:00 today, still there. >> right. >> i don't know what's different. i guess if people want to sell, they look for some reason, something besides, oh, i don't know, i guess i want to sell. >> or is this as good as it gets, right? so we didn't know about it -- we knew this was happening, we knew the fine was out there, right? now we got a great quarter maybe that's as good as i'm going to get as investor, you want to sell if you've written it up, wherever -- maybe that's why i'm frankly surprised that it's down i don't think it -- >> tell me why this won't be the sell the news event for the rest of f.a.n.g., for facebook, amaz amazon >> after hours, amazon was down roughedly 4.50 bucks that's a name set up perfectly for an earnings beat, and to outperforming the quarter. i luook and say that's another

netflix type moment we're going to see in amazon i don't think we we'll necessarily see it in facebook facebook is solid, steady eddie. >> we linked the four companies together for a lot of reasons. in a lot of ways, they couldn't >> the reason google is selling off alphabet in the aftermarket is distinct to alalphabet. will it affect those stocks? i have no idea it should not affect the stocks. >> netflix reported, subscriber growth is huge, that's great for facebook and google and amazon >> is part of the etf-ization of this trade so they will move as a group to some degree. >> let's look at the structure of the market now. you have passive inventostors in indices. if that starts to come off, you have investors, also rhythms sta take down the other to balance it out that to me is what opportunity for human trader to step in and say, you know what, this doesn't make sense, this is completely

machi machine driven that's to me, the opportunity here. >> human trader being you. >> as far as i know, i'm a human trader. >> i'm a human trader. >> buy the heck out of amazon ahead of earnings. >> for more on alphabet, "fast money" mvp, only person named "fast money" mvp, gene munster is manning the red phone for us. gene, what's your interpretation of the stock decline >> buying opportunity. at the end of the day, their business is strong, revenue growth has always been a key part of the concern for investors. i've covered this story for nine years. each quarter investors were concerned it would decline the last five quarters revenue growth has been between 20% and 22%. steady eddie, strong this company is the oxygen of the internet i think the traders on your desk summed it up well, why are people concerned about this eu today, not yesterday there is conference call risk going into this, maybe some investors were hoping far little

bit more but to put a fine point also on what the eu risk here is, we estimate this is going to cause street numbers for 2018 or 2018 to go down by about 4%. just to put some context, because there are future finds around android and adsense on the horizon for google. >> that's a fine related impact, though, correct, gene? that does not take into consideration changes that they might have to make to their search engine or to their business model in order to allay the fears of regulators? >> i wasn't quite clear. that actually was related to policy changes that will impact their business the actual fine is probably going to be closer to 3% or be inaggregate a $15 billion to $20 billion fine as josh lipton said, ongoing legal concern, that is a recipe for investors to do hand wrenching over the next few quarters. >> gene, cost per click, i'll play devil's advocate, continues to trend seem fwli in the wrong direction, right at what point should we be concerned or is it just the business model is changing

is that the way of the world right now? and as long as they get to that revenue number, as you described, it shouldn't matter >> i like how you said it earlier, is that this is -- the algebra of this is the output is revenue growth that's the most important. we see fluctuations between clicks and cpcs. the cost per click over quarter. investors should be focused on the output, revenue growth as we talked about, that's been rock solid for the past five quarters. >> so, gene, put it all together, how to you value this company, where should the stock trade, you think >> we think a 25 multiple. it almost has a sas like viz tonight visibility to it it gets us to 15%, 16% upside to where we're at today. >> gene, we'll check in with you later on get back on the red phone for us karen, is that how you value the company, 15% to 20% upside from here >> probably come out somewhere in that range. and, but i don't know, i love the revenue growth and i -- we haven't even gotten to any

financial engineering which they could do they won't the balance sheet, it's phenomenal nothing make me want to sell today. >> i think that's the point. is there anything in this quarter that says, okay, their business has changed dramatically yes, there's going be uncertainty, but at some point we'll get clarity. you're talking 4%. we're down 4%. seems to me right here is the place to be. >> is it worth it to have the uncertainty -- gene said the uncertainty could be for the next four quarters. >> correct. >> in this environment, do you want that -- >> better opportunity to look at and frankly the uncertainty is going to keep a lot of investors at bay from either defending their position or jumping as a new participant on the buy side. the uncertainty is going to last like you said for a few quarters, in my opinion, it's a no touch until we get some sort of explanation and decision. >> quickly, obviously conference call coming up a lot of things could change by then we learned that difficult -- not difficult lesson, we learned microsoft obviously things changed after their conference

call with that said, p.k. hit the nail on the head nothing has fundamentally changed with their business. the fact the stock is down a couple percent leads me to believe we've seen this dance and act before with google. >> sure. >> and we continue post earnings to make all-time highs over the last six or seven quarters >> so, again, our own josh lipton, gene munster of loup, are both on the conference call. we'll bring you updates as we have them. alphabet shares down 3% right now. coming up, blue apron soaring after seven positive calls from wall street will it increase investors' appetite for the stock plus the democrats taking aim at drug prices in their new economic campaign. karen finerman says one group of stocks could suffer the worst and might not be what you explain. chipotle under pressure ahead of the earnings report tomorrow why traders are expecting a huge move the burrito blowout, if you will, when it reports. much for "fast money" right after this across the country, we walk.

carrying flowers that signify why we want to end alzheimer's disease. but what if, one day, there was a white flower for alzheimer's first survivor? what if there were millions of them? join us for the alzheimer's association walk to end alzheimer's. register today at alz.org/walk.

if you could book a flight, then add a hotel, or car, or activity in one place and save, where would you go? ♪ expedia gives you the world in your hand, so you can see more of it. ♪ expedia.

yeah, and i can watch thee bgame with directv now.? oh, sorry, most broadcast and sports channels aren't included. and you can only stream on two devices at once. this is fun, we're having fun. yeah, we are. no, you're not jimmy. don't let directv now limit your entertainment. xfinity gives you more to stream to more screens. welcome back blue apron shares surging 13% after a number of big banks gave a positive outlook for the newly public meal delivery kit company. that kicks off top trades. stock getting seven, count them, seven buy and outperform ratings from the street oday all of the firms addressing

investor concerns over competition, mainly from amazon, but noted the worries were overblown and the company's product and innovation can withstand other players in the space. stock is down nearly 30% from its ipo. i believe all those seven were underwriters on the deal. >> i believe you're correct. >> that's a good guess if i had to make a guess. >> concerns we voiced on this desk now you're playing stock market, right? do you think it can get to effectively the $10 price, where i guess the ipo came out percentage wise, that's a significant move the competition in this space, as we all addressed, is huge and amazon lies out there as the behemoth, if i pronounce that correctly to you -- >> a-plus on pronounceuation. >> thank you very much >> what's the point? goldman talked about it. customer retention rate is going to be huge during the hypercompetitive stage of their business right now so if you want to play that game, that's great i still think the stock is a no touch or sell here >>. >> i think it's kind of laughable, actually. i don't know, they all loved it

at 10. >> they loved it even higher until they had to take the price range down. >> then at 10, let's get this deal done, what are they going to say now of course they have to say it's great. >> i mean, i don't know -- >> listen, if they're going to play that game, why not go to 12 or 15? why put a $10 price target on it >> $10 is good now. >> if you bought on the ipo, you got plugged, don't get plugged at 7 bucks stay away from this thing. >> i agree competition, et cetera, look, it was a higher-end range they were originally going to price it until we heard about the amazon whole foods deal priced it at 10 bucks which is still too high look, i done like the stock here i wouldn't be a buyer. >> let's get to our move of the day. check out the xrt retail etf, falling more than a percent today, posting its worst session in two weeks it was the sporting goods retailers that took down the space. hibbett sinking more than 30%. that news senting dick's, finish line and foot locker all

tumbling >> look, i'll tell you what, i think that foot locker in general looks as a setup to knee as me as a stock you can trade. the company has no growth. i get it it's dirt cheap. we acknowledgeding on t eon thei it was going to be at $50 within a week it traded there. it was a sell. it's back down to 45 have a dollar or so downside risk here. i think the stock trades back to the $50 level given the valuation, alone. >> karen >> i'm long. it's been -- >> foot locker. >> yes but the thing that's interesting to me, hibbett which i didn't focus on very much -- >> very small company. >> very, very small. they missed their total top line revenue, same-store sales i think was down 10% $27 million of revenue miss. the carnage this created in the entire space is many, many, many multiples of that so something's kind of off there. the other thing was surprising to me, when you read their release, they talked about they new website. >> e-commerce.

>> yeah. >> they're finally getting in. >> i sort of thought, oh, it must have been, you know, redone reintroduced. >> no, no, no, first time ever. >> i know. they launched a brand new website. so, you know, i don't know that this should be a proxy for the whole business i understand the retail business is really under tremendous threat it has been down on that same news many, many, many, times. >> sure. >> whether this hibbetts news is an additional -- >> granted hibbett is a smaller player, if hibbetts is a distributor for a brand like n >> we talked about nike. david's been spot on with this one. look at mike nike, when it repod earnings, held the $50 level bottomed out in the winter, november, december here we're back at 60 bucks this is where we topped out last fall if you enjoyed the run in nike,

now is the time to sell it it's a very good chance we retest the lower levels again. >> i'm with guy on nike. i think this is a place you start to take some profits even though hibbetts probably is not a good bellwether. i mean, maybe they get a bump when they have their myspace page back up who knows. it's not a space i want to be -- >> that's old, guy myspace. >> that's an old thing, myspace. i don't know if you still have yours. >> i do. next to my pinterest teenage page we should put it on the "fast money" facebook page. >> anyway, my point in retail in general, everybody's afraid that they're going to get amazoned. with that type of hangover on these things, it's a place i don't want to be there's better opportunities. all right. still ahead, alphabet is sinking after hours. the conference call is under way. we'll tell you what's driving the tech giant later this hour i'm melissa lee. you're watching "fast money" on cnbc first be business worldwide.

in the meantime, here's what's coming up on fast. . >> everybody loves seabiscuit -- >> rocky. >> the chart master tells us why he's betting on a comeback and the best way to play it. >> plus -- ♪ why woncan't we be friends ♪ >> washington, d.c., found somethinitou aeeg cldgr on but could spell trouble for one group of stocks. we'll explain. much more "mast funfast money" ahead.

when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. [car tires screech] [bell rings]

i put everything into my business. and i had all these points from my chase ink card. so i bought ingredients, utensils, even made custom donut cutters. wow! all with points. that's how i created the ripple: the doughnut in a doughnut in a doughnut. suddenly it's everywhere. i mean, it really took off. what will you create with your points? learn more about the ink business preferred card. welcome back to "fast money" live at the nasdaq market site nasdaq closing at a6,4 pur00 fot

time ever. here's what's coming up in the second half of the show, big after hours mover, alphabet sinking down almost 3% despite an earnings beat that conference call is under way. we have full team coverage josh lipton in san francisco he'll bring us comments from the c-suite later on gene munster from loup ventures manning the red phone. we'll get his thoughts on the quarter, a read what it could mean for other f.a.n.g. stocks. the dollar sinking to the lowest level in more than a year as the euro spikes seema mody is back at headquarters with more hey, seema. >> reporter: that is right, political noise out of washington, delay in trump's pro-business agenda and dollar diversification from central banks contributing to weakness in the u.s. dollar what does it mean for stocks morgan stanley thinks wall street could get a powerful tailwind from a weaker currency, seen as a huge positive for u.s. multinationals that do business abroad as it makes their products more competitive overseas analysts that cnbc have spoken to say look at mcdonald's,

caterpillar, pepsi, coca cola, some expecting revisions if it continues. another winner, emerging markets. goldman sachs say the markets have more room to run as a cheaper dollar makes debt easier to pay back. with a weaker dollar comes a stronger euro hovering around two-year highs as the european central bank ponders over whether to scale back on stimulus that sent european stocks lower as exporters there rely heavily on foreign sales german autos feeling this pain take a look at volkswagon, bmw and daimler down at least 5% over the past one week melissa, experts say it's the autos that are most vulnerable to a stronger euro. >> all right seema, thank you seema mody back at headquarters. brian kelly, if you're a holder of european stocks right now, would you rethink those holdings >> yes >> yes, absolutely yes. >> i think you do. the reason why, we saw pmis this morning that were starting to roll over. right? so the whole thesis on the european trade was growth is going to be better there than the u.s.

you've got a weaker currency o'er ther over there the exact opposite happened right now. you have a stronger currency, have pmis rolling over to me, what looks like -- you look at the euro at basically 2.50 since 2015 at support levels and the dax has broken a major trend line, to me it looks like there's a rotation globally going on where you're getting potentially money coming back here to the u.s. so that should lead to a bit of a stronger dollar and if that money finds its way into the stock market, to me, i think that's where it goes >> guy >> dax, spot on with this one, topped out in 2015 in early, i think the spring around 12,500 or so. we had talked about that level a number of times. it's been off to the races until recently and it's been concurrent with exactly what p.k. and seema were talking about. the dollar phenomenon. so, now your line in the sand, not that already lithere are lie sand, but i tell you what, 12,000 in the dax is a critical level.

we need to absolutely hold that otherwise this whole trade begins to unravel. i don't know where europe becomes u.s. but 12,000 dax to your point, the trend line right there is extraordinarily important. >> the dollar is a linchpin for so many trades what's next for the greenback? chart master carter worth with a contrarian call on the dollar. hi, carter, what is it >> a bit contrarian. i'm thinking at this point that's little too far, too fast, overdone to the downside let's look at charts and figure out why that might be the case so we know we have this well-formed head and shoulders we know that this is our neckline and we have a huge break. now, the measured move for this kind of thing is the width of the proceeding move. they're now almost identical we are right back to a prior 52-week low and my hunch is this is at this point overdone. it's about a 10% decline you have some throwback coming so, let's look at a longer-term

picture. this is the move, the dead period before the dollar really came to life now, one way to draw the lines here would be as follows they were back down to the bottom of the range in which the dollar has persisted, so i'm thinking at this point, we're due for sort of a move back toward the middle. a little overdone. all right. let's talk about staples this is an area that's obviously very international, if you will, large cap, household names that are exposed to strong dollar and i think you got a couple things going on here for starters, you have this unbelievably well-formed head and shoulders that broke out and then failed. a failed pattern is a very bad thing. so, not only did it fail that way, it failed this way. it has broken the trend line you put it all together, here are the two lines and what we know is that you've gone -- you've broken the fake breakout,

the break of trend, and to my eye, there's more to go. now, i want to show you something, again, the staples. how about relative performance it's at all-time highs look at this here's the same pattern. it's making new four, five-year lows compared to the stock market meaning even though it was up, it was never up relative that's a problem it's getting worse all right. i want to be short the xlp here's a long-term pattern of xlp. here's the trend line it's been in hooer wo we're hovering ominously at this low. i think we're going to break trend here i want to be short that. on the long side, i want to be long small cap for a catch-up trade, you got ibm versus spy here's the chart of iwm. i want to play this on the long side, play staples on the short side. >> carter comes over come on over, carter worth awesome. we'll bring the chair out. thank you, austin. >> bud

buddy, i'm with you, man. >> i have a question. >> i'm ready. >> is the dollar's strength chart -- the call for rebound of the dollar, it almost looks like it could be separate from from your call to short staples. >> well, okay, so the call of the dollar is in and of itself, right. >> it's just that this is overdone, down trends have countertrend moves just like the dollar over the last asieight months major international brands that dominate in terms of market cap, consumer staples, would be under further pressure because they're a disaster already on a relative basis of the market. >> yeah. >> so, carter, i'm curious, what we've seen is international capital flows happen, money comes back to the u.s., dollar goes up and the stock market rises for a period of time then the dollar gets too strong, right? so is this move just kind of a snapback rally type of thing or we looking at a more sustained move >> well, no one can know certainly i can't. >> you can't i thought you -- >> i mean, how candid is that?

we know all important moves start out as minor moves so this could be the minor move that ends up being more but for now you can make the judgment it's overdone to the downside and due for the minimum a minor move and possibly more to come. >> cbw, i'm not asking you to put your economist hat on but i'll ask this question. >> i have one. >> of course you do. does the strengthening dollar then almost by definition mean the bond market which has been extraordinarily strong until today, at least, does that mean that sells off or are they two completely different animals >> you know, sometimes those relationships are intact sometimes they're not. think about during this period of incredible dollar weakness, oil has been weak. sometimes those inverse -- my hunch is -- there's not any big move i'd rather be long treasuries than short >> is there a correlation at this point, inverse correlation, i should say, between the dollar and oil? or has that broken down entirely that's broken down, right? so there's no hope for that. >> you've never had this sort of aggressive -- you have a

seven-month selloff in s&p 500 energy, the longest stretch on record without a 10% -- as the dollar's been moving. >> all right how would you play a stronger dollar >> i guess the question is, large cap tech, mega cap tech in general. i love the small cap trade be long small cap in this environment. and maybe taking some off the table and, or going short the qs against it >> yeah. of all the sectors, that's the most sensitive to dollar -- >> absolutely. i just worry a little bit about going into earnings with the expectations of amazon and facebook, what comes out of that, being short the qs i would be long small cap here i think per trade it works i think looking to put out a short on qs after we see -- >> i think those pieces -- yeah, that's a good story. >> is that shocking to you, guy, to hear david seaburg willing to put on a short on the qs when he's been pounding the table on amston >> you sell the news, right? selling the news. >> that's your thesis? >> my thesis is i do believe, i think per trade, take some off -- the news -- i'm not

suggesting anything more than that i do think long term the structure is very solid. i think short termed based on carter's thesis here, technology is going to get hit, right if that's the case, wait for the headline reports, and i'd put the qs out. >> he's multifaceted, multidimensional he's not like -- not just a good looking pretty face. like, he's deep. depth. that onion thing, you keep peeling it. >> peeling it back. >> layers after layers >> also strong -- >> a long time with david, over a year now. >> a year. >> a year. >> two years. >> two years >> did you just say three years? >> nothing surprises me with him now is what i'm saying i'm devoid of being surprised. is that possible >> there you go. a compliment that's a compliment. >> devoid of surprises hohum. all right. thank you, carter. still ahead, alphabet out with earnings in just the past hour that stock is down take a look at this. this is practically after hours session lows we'll hear from the company's

c-suite on what drove that quarter. plus jim cramer sitting down with the hasbro ceo moments ago after the stock had wot its rs day in nearly a decade we'll bring you those comments much more "fast money" right after this

welcome back to "fast

money. hasbro toy maker's shares plunging, worst day since october 2008 despite the disappointing numbers, ceo brian goldner had this to say to qud mat money's" jim cramer. >> great growth in china, great growth in are russia bit of anni issue in the uk arod brexit and similarly in brazil that does not have a deleterious impact on the overall regional performance or international performance. >> all right. >> with more star wars toys on the way, today's drop a buying opportunity? he did sound positive on the second half, said he was well positioned on inventory for force day which is september 1st. >> as you have -- >> force day marked on my calendar, guy i know it's in yours "star wars." >> the force will be with you. >> force day. >> not with him. >> i thought it was may the 4th. >> that was a prior -- >> another >> several. >> force day this year is

september 1st. >> talking about hasbro, i will in a second, do i need so see the other 19 "star wars" movies before this? >> catch up to fully understand the nuances. that's what -- >> that was the r 2 d 2 person or the other one >> hasbro. hasbro. >> buy it? >> hasbro against mattel has been a winner for this desk for years now. and obviously much like honeywell and ge one's a winner, one's a loser. people are starting to question can this piggyback effect on toys off of movies continue? this quarter says no this is hot not a historically strong quarter i think there's going to be an opportunity to buy a stock i think the opportunity is going to present itself at 98 bucks. >> karen >> i agree with guy. i like to let it shake out, see the analysts start to rethink, maybe come out with not so positive notes tomorrow. and let it shake out it's great -- brian goldner's done a tremendous job. it's not so cheap you have to

dive in. >> catch the rest of jim cramer's interview with brian goldner tonight on "mad money" at 6:00 p.m. eastern time. switching gear, democrats taking on drug pricing as part of a better deal economic platform unveiled later today. meg tirrell has the latest reactions. >> when you compare the main point of today's plan with others proposed by democrats some say it may indeed be a better deal for the drug industry analysts i've spoken with point out the proposal actually leaves out some tenets put on the table, specifically for drug importation, drugs from other countries where they're priced more cheaply that's something president trump supported during his campaign. what is included in the proposal today are three main points. first, it would create an agency to police drug price hikes, an enforcer, levy fines on increases deemed unconscionable. give medicare part d the power to negotiate drug prices directly and third, require trug companies to justify certain

significant price increases 30 days ahead of time common research analysts point out that's less expansive than some previous democratic plans, that's not the main market ta takeaway it was literally summed up as, quote, who cares the ibb closing up in the green there. that's because republicans who are in charge have been unwilling to consider legislation along those lines and there is still a potential drug pricing executive order out there from the president so investors shouldn't be too complacent but overall, biotech's been shrugging off any major drug pricing concerns right now, mel. >> so, when he says, who cares, meg, does he mean because having a price gouger cop is a ridiculous notion to challenge unconscionable price increases >> reporter: no, not necessarily. i think the who cares, i've heard this from a lot of people today is more about the idea that anything proposed by democrats right now is probably not going to be legislated in. >> okay. so maybe ridiculous, maybe also not -- okay.

meg, thank you meg tirrell. well, i mean, it sounds odd to say that they're going to try and reel back or challenge unconscionable -- i mean -- >> yes, but i think -- listen, i share his opinion. if i had a pen, i would write the percentage of this getting through on a piece of paper and it would be a zero i don't think this happens i mean, they can't get anything done so why do you think this is going to happen? >> all right. >> i agree i do think it's d.o.a. i think, though, that the ability to negotiate drug prices really important thing, and i know trump has been on that. i mean, it's a very powerful lobbying effort, though, to try to prevent that. i'm sure but if that were to -- if that were to take place, to me, the pbms, the pharmacy benefit managers, i mean, it has to be terrible for them. absolutely terrible. the more different drugs that they touch and recommend and sell, any pricing pressure on that, terrible for them. >> amen. we've talked about that before 100%, you saw express -- not to pick on them, but they're the name that comes to mind, because

they also report tomorrow after the bell so if anybody in my opinion, if there's a place to be concerned, places that are actually making money where margins could absolutely get slashed, it's in that space what we've learned about buy wrote tech i think over the last six months is the science actually is behind a lot of these companies. look at the vertex headlines a couple weeks -- look what kite pharma has been doing recently there's a long list. i do think biotech continues higher if i were to be scared, i'm with karen. it's in the pbms. >> simply put, i agree, who cares, they're not going to get anything done. prices are going to increase slightly this year as expected the bottom line is, people don't care about what comes out of elizabeth warren's mouth at this point. this is absolutely 100% more of a, you know, jumping on the bandwagon trying to bring out people to get against the republican establishment it has nothing to do with the issue at hand. drug prices will not be issued -- will not be changed. they can't be impacted by them and people, investors, understand that.

>> all right let's get a check here on shares of alphabet. they're still down by just about 3% in the after-hours session. the conference call is just wrapping up. we'll bring you all the headlines moving that stock right now. much more "fast money" still ahead. so you miss the big city? i don't miss much... definitely not the traffic. excuse me, doctor... the genomic data came in. thank you. you can do that kind of analysis? yeah, watson. i can quickly analyze millions of clinical and scientific reports to help you tailor treatment options

for the patient's genomic profile. you can do that? even way out here? yes. even way out here. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

. stock up more than 40% year to date, fell close to 10% after second quarter earnings were announced this morning is this company worth toying around with? i'm sitting down with the ceo tonight for the play-by-play "mad money" is next.

welcome back to "fast money. tesla shares topping the tape today. the stock jumping more than 4% ahead of friday's highly anticipated model three delivery event. stock just posted its best since june 13th. still more than so 10% from its all-time high. will that model 3 help bring shares back to life, p.k.? >> i think for the short term. i'm a litt etle concerned here we talked about, at $300, when you want to buy it, might get up to $350. we're pretty darn close to that, close enough for horseshoes and hand grenades. for me, i'm probably a seller at these levels and maybe sell the news until some of this dies down looks like it's just got to waufsh owash out a bit. if you bought it at $300 -- >> are you in? >> i was i'm not in now. >> you're not in now. >> i like the story. trading wise -- >> sure. >> it was a week or so ago whe elon musk basically said he was surprised the stock didn't deserve -- i'm paraphrasing, didn't deserve the price tag that it -- stock's only gone straight up since then. >> he said if you believe in the

future, place your bets accordingly. >> he clearly watches "fast money" as well, a litany of people watching our show this stock, every pullback seems to be smaller and smaller, less duration i think the stock's going to continue to rally post that announcement we'll see what happens that what makes markets. >> i'm not a fan of the stock. again, it's a momentum trade here this stock, you keep going it's a coin toss for any i'm not a buyer based on fundament als alone. i don't believe they're cornering the entire electric car market i'm out right now. let's change lanes. >> oh. >> thank god. >> alphabet remains lower in the after-hours session. josh lipton joins us once again with sound from the company's earnings call. josh, what were the highlights >> well, melissa, in a few more numbers from the call. other revenues, play, hardware, the cloud business, $3.1 billion, up 42% year over year company saying a number of new cloud deals worth more than $500 million, up three times what it was last year.

of course, in that fight, google has their hands full with amazon, microsoft, oracle among others other bets, saw the revenue, $248 million the big drivers in the quarter, nest, fiber. overhanging this call as well, of course that eu fine, $2.7 billion. clearly having an effect on the results. cfo ruth porat talked about that impact take a listen. >> operating expenses including the impact of the ec fine were $11.5 billion. excluding the impact at the ec fine, operating expenses were $8.l billion in the quarter, up 18% year over year operating income was $4.1 billion. excluding the impact of the ec fine, operating income was $6.9 billion, up 15% versus last year in the operating margin was 26%. >> now, i did have the opportunity to speak briefly with ruth porat, asked her how the company is going to respond exactly and this other worry

about whether regulators have an impact on other products down the line the kind of snowball effect here she was not willing to go there with me, simply saying it's an ongoing legal matter one other points analysts are bringing up rising traffic acquisition costs. porat says it will increase, or focus, she said, on growing profit dollars we're pleased to have a strong position in a growing area melissa, back to you. >> josh, thank you, josh lipton in san francisco gene munster of loup is standing by with his analysis so, gene, what are the highlight in your view so far? >> well, tight on his message, third consecutive quarter he hit the a.i. theme in his first prepared sentence. google's north star is clearly fixed on that. let's see how that impacts their business over the next few years. has to be a net positive eu question and the impact of how that could have on android didn't come up until the sixth question not surprising the company didn't say much but they did say they believe that they'll continue to have strong customer engagement and then

lastly, i gragree, reiterating e trend, i think most investors are aware of that. that's kind of one of those kneeling parts to the quarter. >> so do you still come away with the idea that uncertainty in europe is going to frprevail for the next few quarters? >> i think so. i think probably over the next couple quarters that will be a bigger issue because there is another fine and more importantly, as you talked about earl yeah some impact on their policies, how they do business i think that, yes, near-term impact, six months i think longer term, this is a great story to own. >> gene, when do you think we'll see other bets start to be more meaningful >> we talked a little bit about wamo, self-driving car and their investle in that that's going to be one of the big x-factors. that's more in a 2020 type of timeframe. they cut spending dramatically, down 50% waquarter on quarter as expected. they're pulling out of the

finaler oafina fooib fiber other bets category. 5g, eventually we'll have internet access in our homes just as fast as broadband through wireless that's the bigger play google hasn't said as much about what they're doing there that's one of the structural takeaways from the call. >> give us a grade for alphabet's quarter, gene no great inflation here. >> no great inflation. b-plus would have been nice to see more upside overall, the story's in tact. >> all right gene, thank you. gene munster, founder of loup ventures "fast money" mvp, giving alphabet a b-plus. >> i think it was as expected. revenues better. core margin a little lighter b-plus overall again, the overhang keeps me away from the stock for the near term the overhang makes me not want to step in and buy it. >> i gave you the question at the top of the show, force to choose, buy or sell now. >> force me to choose. >> i will allow you to reconsider that now that we have all this information out

now what >> i think -- i still think for a trade, you buy it here i don't think anything changed that, being said, it does concern me if the street is starting to get worried about europe and that is just going to be the narrative, then i would be a little concerned. so, not as pounding to table as i was when you forced me to choose at the beginning. >> i think it was probably priced for an a-minus or better going in. >> right. >> you know, it was up -- it gid go up a fair amount that last hour of the day. now, if it were you, you'd be asking what can i do for extra credit, can i take it over >> b-plus is -- >> exactly right, karen. >> yes, exactly. i don't think they have a chance to do that next quarter we'll wait. >> first of all, for a lot of people, myself included, b-plus was an excellent exemplary grade, something i strive for. when you say b-plus is failing, for a lot of folks, you're hurting their feelings think about that, need not apologize, number one. i think we're being influenced by the stock performance in the -- so if you just look at the quarter, i actually give it an "a" because i think it was a

very good quarter. i can't control what's going to happen to the stock price. >> that means you'd be a buyer of the dip -- >> which is what we said before. >> all right let's stick with earnings. troubled burr reito giant chipoe reports tomorrow mike joins us from austin to break down the action. >> reporter: most of the stocks reporting this earnings season, the options markets have been anticipating more muted moves than usual not the case for chipotle. expecting a move of 7%, higher or lower by the end of the week, versus 5.6 % as the average over the past eight quarters of reported earnings. a lot of the unusual activity, we had unusual activity today, really started last week after the food poisoning incident in virginia we've seen four, five times the average daily volume most of those days, probably two or three times the pre-scare volume today. what's interesting is that there really is not a clear consensus on the direction it was bearish last week today, though, it looks like we have both bulls and bears making

bets on big moves by the end of the week buyers of the weekly 400 calls, a place where the stock was earlier this month, and the 300 puts so, expecting a lot of volatility in this stock going forward. >> you know, here on this desk, especially steve barrasso, if you're out there, he mentions a three-day rule when it comes to stocks that have had some minor disasters. i don't know if you consider a neurovirus potential outbreak. we saw the stock really get pulled down. have we seen the bulk of the shakeout, do you think >> i don't think so. i think the quarter is going to also -- you know, on a different side, you're going to see a breakdown a little bit my opinion, they haven't recovered from the last issue they had sales friends ha s trends have . therefore, it's a no touch for me i wouldn't be buying it on a pullback based on the neurovirus. >> they have a disproportional problem of poisoning their customers. >> perception. >> perception of it, that's exactly the problem, right that's number one. number two, we had a salads guy, a double meat or something you

had. >> ch$18. $18. >> ridiculous. >> that was a bill ackman special. you're a big-time hedge fund manager, maybe you buy that. $19 bowl you should say thank you, "fast money >> no issues, zero issues. i'm still here well -- >> 15 pounds heavier you're still here. >> big statement. >> i've taken it before, i will again. if you look at the stock last quarter, it seemed it got its mojo back. i thought last quarter they t n turned it around a little bit. i tell you, i think they're going to report a good quarter neurovirus, rats out of the ceiling type thing i think the quarter is going to be pretty damn good. >> mike, thanks. for more options action, check it out friday at 5:30 p.m. eastern time. up next, karen says there's one airline that's about to take off. we'll name names more "fast money" right after this hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge.

that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. she can't become a guitar legend just by playing air guitar. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to, even if it's chasing squirrels, synchrony financial can help you get there.

stock up more than 40% year to date, fell close to 10% after second-quarter earnings were announced this very morning. is this company worth toying around with? i'm sitting down with the ceo tonight for the play-by-play "mad money" is next. who knew that phones would start doing everything? entertaining us, getting us back on track

and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save when you choose by the gig or unlimited. call or go to xfinitymobile.com. xfinity mobile. it's a new kind of network, designed to save you money. final trade time brian kelly. >> so for me, i'm going to go with what dave said earlier in the show, buy iwm, i agree with carter, agree with dave. >> seaburg >> nice foot locker, i think foot locker here is a trade. not a long-term bet, but foot locker, buy it on this weakness here overdone. >> karen >> yes the airline trade, united airlines, we saw was down on this appointment with the earnings last week normally i do the three thf day rule i was out on friday and actually didn't buy any i bought it today. that is my decision.

>> great american company from the heartland, mel, you know where in the heartland indiana. you far with the state of indiana? >> yes, i've heard of it i've heard of indiana. >> you've been >> no. >> if you look, had a rough june, but they're getting their mojo 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.