i wonder what it means for them to say they're going to be a content creator, they keep trying to define themselves outside what people think of them as. >> other than a camera company still, the iphone x, we'll see if they try to play that up, saying it will unlock augmented reality opportunities. a lot to follow here at 5:00 p.m. "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," check out shares of snap getting absolutely annihilateannihilate7 on disappointing revenues. we have full team coverage as that conference call kicks off julia boorstin is in l.a., "fast money" friend gene munster is mann enedin ening the red phone

we'll tell you how bad furniture stocks can get on the news that amazon is starting a furniture line first we start with a story captivating wall street and washington, taxes. the gop making a big push for its plan but some members are jumping ship ahead of the vote and some markets are taking notes. eamon javers has the very latest >> reporter: hi, melissa as we go into the release of the senate version of this tax bill later on in the week first is when we'll get it, we had a wobble earlier today when mitch mcconnell who said the bill will not be ready thursday, it will be ready friday, until mcconnell's office clarified that he misspoke, it will be out on thursday as planned senator ted cruz earlier today raising some of the issues that are concerning some republican senators here. and this is something to monitor, the state and local tax deduction issue is one that cruz

said concerns him, because it means that not everybody will get a tax cut. in fact some people on the individual side might get a tax hike he says he thinks that's a problem. here is what he said >> much of the pushback you're seeing to the house plan right now, the business side is terrific, but there are some taxpayers who are losing exemptions, particularly in some high tax states like new york or california, that could conceivably be paying higher taxes. i think that is a mistake. i think tax reform needs to cut taxes for everybody. >> reporter: the other thing ted cruz said today is he likes the idea of repealing obamacare's individual mandate to buy health insurance as part of the tax bill that would seem to increase the level of complexity of all of this, because you're bringing all those ugly obamacare politics into what is already the difficult politics of tax reform ted cruz saying he likes it because you get $400 billion of

savings against the score and you can use that money for other purposes by our count, there are as many as five republican senators who support this idea of bringing in the obama mandate into this debate that's one that's going to be fascinating to see where that lands, because ultimately that could add complexity or could get them savings they need not clear how that all shapes up we'll see the bill, we're told reliably, on thursday. >> thank you, eamon javers the russell is having its worse day since august retail is getting hit as well, macy's, jcpenney, nordstrom, also sinking finally, the banks, the worst performing sector today, down 1.5% as the interest rate environment continues to deteriorate. is tax reform a no-go, guy

>> i still think tax reform gets jammed through but on a day like today where the s&p is flat, the market is flat, everything seems to be fine if you just look at the headlines. the russell is down a percent and a half, that's concerning. as we've said all along, we have to be consistent what's more alarming -- probably the wrong choice of words. what's more interesting is bonds, this yield curve, tim can speak to this, at levels we haven't seen in a decade again, maybe not a big deal. the speed with which it's getting there to me is something to take note of. >> i have to feel, when i hear ted cruz -- >> standing up for new yorkers and californians >> i have questions, but we don't have time to get into it guy points to what's going on with the yield curve we've got from 135 to 68 on the yield curve aggressively, almost nonstop since december

this didn't happen overnight i'll point to the fed, yes,we got some uncertainty out of the way, now we have more uncertainty. bill mcdonough retiring, a dramatic flattening of the curve since the two events, a new fed chair and bill mcdonough mary ogrotny went on another dovish rant today, which puts more pressure on the long end of this curve i wouldn't overdo it, because we were saying a few weeks ago there was no tax cuts priced into this market so what are we saying? i think -- >> not all priced in, but obviously today's action was all tax-related, or the headwind of tax policy not changing. it's almost undeniable i don't think they get something passed i think it's dead. i think there's too many things, whether it's the interest mortgage deduction, whether it's property tax cuts. there are too many things to argue about. they keep bringing this flat tax

back in some way, shape, or form not going to happen. i don't think taxes, anything substantive, i don't think happens. i think it's, yes, a negative for the markets. the markets will probably absorb it but the bigger issue, tim touched on it, what about rates? does this give the ability to say, maybe they don't go and i've been in the camp of -- >> maybe they do not raise interest rates in december [simultaneous speaking ] >> from 128 to 162 in september, that's telling me they think the fed is going to be more aggressive than less >> yes, and the fed sees that. when we were at 85% chance, we dropped to 72% all i'm saying is throw it out there, there's a possibility >> here's the deal what we're talking about is a massive amount of uncertainty right now. is tax reform or lack of tax reform probably, yes.

is it the yield curve is going lower or flattening out? >> y yes. copper is lowering, leaving yields on the way up the market is all-time high, all-time high valuations why would you invest that extra dollar today if we get some kind of selloff on a tax reform i actually think that's a buying opportunity. it's just taking a little bit of the expectations out of the market until proven, until the economy starts to roll over, i think you buy dips at this point in time >> hang on one second. this is not groundbreaking right now. we are at all-time highs this dip, even if it was, that's why -- >> true, right we should put it in perspective. >> i'm fully invested, i remain fully invested i didn't get spooked, there is a part of me that wants to >> but you're sticking with your investment what's interesting is we saw these idiosyncratic moves, specific moves that we highlighted on the top of the show on the back of this notion

that tax reform won't go through. the stocks have sold off on the notion that tax reform could go through and actually hurt them, did not actually come back i'm talking about names like the homebuilders they didn't really respond so how -- >> that's how you wrap your head around it, how do you wrap your head around utilities trading as well as they've traded we've been doing this a long time if we talk about advanced decliners and the breadth of the market -- >> this is number 13 >> lucky 13. but all-time highs for the markets, you had one of the most miserable advance decline days in terms of breadth that we've seen in quite some time. the decliners far outweighing -- >> last week was an extraordinary week for mega cap tech it's a market that's getting through an extraordinary earnings season, getting through a market that's been getting

nuggets hope from washington which are hard to get two hopeful on you've about dynamics like hurricanes, you remove north korea, and now what do we do >> are we in a consolidation period >> i think we're in a consolidation period until we get a much higher dollar which could come. if we get the front end of the yield curve two years or lower, you get a higher dollar, that takes out a lot of the reason you're in u.s. stocks. until that really starts to happen, i think it's just a correction or just a consolidation phase. >> all right in our next guest says there could be another big obstacle to tax reform on the horizon, a government shutdown. the co-founder of axios joins us here at the nasdaq, thanks for joining us >> good to be here >> let's talk about the tax reform and then the government shutdown issue do you think tax reform will get through? >> probably q1 of next year is the most likely outcome.

i don't share your pessimism because the way they wrote the budget, they allow themselves to go to a deficit of $1.5 trillion that's a lot of money to play with and you have the republican party unified in wanting to do something on tax cuts. when you're giving people something, it's easier to do politically than take something away even the fights they're having to me are on the margins philosophically they're at the same place what you should do with the individual structure, with the corporate structure there will be lots of ups and downs, you guys will interpret what that means for the markets in the short term. long term, i think that ultimately gets done i think that obviously will have a positive effect on the market. in some ways i felt like the market has been assuming like a very robust tax reform package for some time. probably undervaluing a longer term political risk, which is i don't think people fully appreciate how much volatility there is in politics, which ultimately i think will echo into the markets you're going to see it tonight in this virginia race.

you're just seeing a level of polarization that each and every year only intensifies. and i think it makes governing that much harder and outcomes that much more wildly unpredictable. once you get through tax reform, people will start to focus on that reality and i think do that's going to affect a lot of business decisions and ultimately market conditions >> the notion that some senators are debating the salt deduction, five senators want to reintroduce the obamacare mandate which could get messy and complicated, that doesn't phase you in terms of your outlook for it being passed, cuts, that is, being passed in the first quarter? >> ted cruz, lots of people want to do lots of things we all do in life. at the end of the day they'll try to figure out what can you actually get into this tax package to get it through. they might end up repealing the individual mandate, largely for what eamon was talking about, it frees up more money which gets you around some of these debates about deductions you get rid of or how far you might cut an

individual rate. ultimately the reason it isn't part of the package is the politics of health care are just more complicated than the politics of tax reform and when you look at -- everyone keeps talking about this only being a republican bill. it's going to be mostly a republican bill. if you listen to what those democrats who are up in trump country in the senate are saying, i think they are winnable someone like joe manchin of west virginia could easily end up voting for this tax package as long as they don't needlessly complicate it or politicize it >> i'm curious about the volatility, particularly the markets don't want washington to do much, right we get tax cuts, and then you have a situation where they're not going to do much and maybe they're not going to add any regulations. to me, that would be positive to the pro market what volatility is the market not seeing that you're talking about? >> there's two pieces to volatility people underappreciate how the chances that we could end up in conflict with north korea, which

i think would have obviously massive consequences that is one piece of the puzzle. the other is that when you have this much volatility, it offense results in change in congress, which then, yes, could lead to there's nothing being done, which the markets would be fine with, but it also, you have a change in the house, you increase the chance for impeachment proceedings which obviously could have a big effect that is the piece. we had years where you kind of can predict what would happen in politics or once something happened with government, you assumed it was a law of the land for good no more. all the things that obama did are now being repealed on the regulatory side, even legislatively they're trying to repeal it. that's the new normal and it will continue, if you look at the trend lines on what's happening with both political parties. >> we're so focused on tax cuts, nobody's paying attention to december 8th, when the government spending bill expires when and you can face a government shutdown. is that a reality in your view

>> it's a reality in that it's a possibility. you have to be able to fund the government you have to keep it going, if you don't, there's a government shutdown there's real disputes obviously between the republican party and the democratic party over everything from building a wall to funding health care programs that need to be extended so it's a possibility. i don't think it will happen again, republicans understand that there's only one thing that matters right now for their political survival, it is tax cuts if they don't -- >> republicans didn't hear that the first time around, there was schumer and pelosi that he reached out across aisle and brought them in to defuse that issue, which is great. i'm more positive on him reaching across the aisle than the fractured republican party that is worried about debt and deficits, they cried about it for eight years, trying to have a kumbaya moment about this tax plan >> that's a very good point too. remember, there's still daca, the reform for that that president trump had talked about with nancy pelosi and chuck schumer. there's things that have to be

done that the president would like to get done, where if you can't do it with republicans, there's a route that you do it with mostly republicans and some democrats because they have things they want to get done there's always a concern when you have this level of function in our governance. i don't think that ultimately happens. i do think that sets the pathway for -- it might happen this year, in all likelihood, just given the legislative calendar and all the other things that the government has to deal with and all the distractions that pop up, it likely pushes itself into next year if that happens, for the republican party, for the markets in the short term, that's a good thing. what happens on the other side of that? we don't know. >> jim, thanks good to see you. co-founder of axios. >> so there are good things. the s&p made an all-time high today, closed unchanged on the day, that's a good thing emerging markets are still -- >> 6 1/2 year highs. >> things below the surface are concerning we mentioned the russel.

>> what's the rollover mark you're looking for >> that bothers me the airlines, real quick the airlines bottomed in september, had a huge movement in mid-october very quietly they're right back to those levels you saw in september. something going on there maybe it has to do with price line, expedia, i'm not sure. worth watching again, we talked about advanced declines a few minutes ago that's worth watching. tim talks about the internals, i've brought it up tonight, there are a lot of great stories. right now they're seemingly more bad stories we don't talk about than good stories that we do coming up, snap reporting earnings moments ago, the stock getting crushed. evan spiegel making some controversial cuts and later, netflix used to be the new media darling but with disney and fox still on the table, is the competition

catching especlliay? we'll tell you if traders bought this dip when "fast money" returns.

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pay per gig and unlimited. no one else lets you do that. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit or go to xfinitymobile.com. welcome back to "fast money. netflix getting hit today, down more than 2% disney put a target on the streaming giant's back how worried should netflix investors be right now, guys >> given the run up in the stock, you can understand why people might be wanting to take money off the table right here if you would examine the last couple of quarters, understanding the cash burn and

the money they have to spend on content, and now that's going to have to be accelerated because of what's going on with disney, i get all those things if you look at the growth internationally and the seemingly willingness for people to pay the extra cost they're associated with now, netflix raised prices, the market didn't bat an eye until recently. i think they're fine listen, i understand why you take money off the table here. >> why wouldn't you? that's point you've had money on the table and it's been a great call but why do we cower in the boots of amazon and every other sector and suddenly here we don't care, and by the way, disney, and by the way, a few other place with the moat not that deep, at a multiple that makes no sense, it's a distribution place, not a content place, or is it? >> to guy's point, if they raise their prices a dollar, i don't think they would lose any subscribers at all i think the moat is actually pretty good for what they have

now, you know, at this multiple and these interest rates and all of that, there's an argument that you might want to take some off the table, sure. but until the story breaks -- >> when we look at a disney, if disney comes to market with this, they're still putting their content on netflix until 2019 so for us to -- yes, i understand it, the market is a forward pricing mechanism, and no one's going to argue with taking chips off the table with a stock that -- >> what happens in 2019 with your disney content? >> i understand. this is not -- but there's a lot that could happen between now and then we don't know what those pieces are. all these different things, amazon prime, it's a great product, but netflix is an amazing product. people don't bat an eye and pay it so i do think that once people start rolling out over the top, they're going to have multiple over the top -- >> amazon is a great product which i don't pay for because i'm a prime member >> you do pay for it

>> but i get a host of other things along with it that's money i would have spent anyway and then i get the video service on top of it >> you say that in the most braggadocious way. i'm not a prime member >> i think your wife is and you have no idea >> probably. >> probably. >> disney wasn't that big a deal for netflix. i'll say this at the risk of being blasphemous, i think netflix was more important to disney than disney was to netflix. i'll put it out there. i don't think disney was part of the international growth for netflix either that's the whole netflix story i get disney leaving, seems to be a big deal, i don't think it's that big a deal the unfortunate part is we have to wait until january for earnings in the meantime, a lot can happen i think the netflix story is intact ahead, check out shares of snap, plunging after hours, following a report now down by more than 25% from its ipo price of 17 bucks.

ceo evan spiegel just admitted something that everybody knew. i'm melissa lee, you're watching "fast money" on cnbc, first in business worldwide meantime, here's what else is coming up on "fast." >> there's no disguising the real deal. and this is there's no disguising that shares of price line are a disaster. plus here's what amazon did to shares of williams san ononon wear fair today, when "fast money" returns you always pay

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so when we print the shipping label everything's pretty much done. it's so much easier so now we're ready, bring on the orders. shipstation. the number one choice of online sellers. go to shipstation.com/tv and get two months free. welcome back to "fast money. snap plunging in the after hours, a conference call is under way. let's get to julia boorstin with the details. >> reporter: melissa, you see snap shares down dramatically as its growth is slowing to less than 3% quarter over quarter user growth rate which is the company's lowest ever. ceo evan spiegel acknowledging a

fundamental problem with the app. take a listen. >> the one thing we have heard over the years is that snapchat is difficult to understand or hard to use. our team has been working on responding to this feedback. as a result, we are currently redesigning our application to make it easier to use. >> reporter: spiegel warning that redesigning the app, which they plan to be, will be disruptive to the business over the short term and it's unclear how their users will change their behavior he says they're betting on the long term payoff of a redesign spiegel also says they're betting on content, both more professional shows and new models for user generated content. >> we hope that showing the right stories to the right audience will help grow engagement and monetization for snapchat while we've made significant progress in content, we've historically been ignoring the broader stories for the snapchat audience in 2018 we'll build mormon at thezation opportunities for

these creators >> there's been a lot of talk on the call about the impact of switching to an automated ad sales model which they say has brought down ad prices more than 60%. they say ad impressions are up over 400%. spiegel saying that the fact that ads are diminishing engagement bodes well for the long term. it's worth noting the don't of the call has been very measured, despite the stock being down about 16%. they're still in the prepared remarks. we'll have to see how this measured tone changes in the q&a. back over to you >> thank you, julia boorstin in los angeles. snap is a recent ipo, third quarter as a public company. the third major disappointment as a publicly traded company >> they're saying, we're changing the app because it's hard to use, but we are going to make these changes, we don't know if anybody is going to use it still it really is not a great conference call whatsoever >> we've heard the issues for

years. >> hard to use >> that it's hard to use, for years. this should have been something they've been working on prior to >> i can't figure it out >> if you think about it, these guys, their main segment is 25 and under, they're slow in growth there this sounds like twitter this sounds like a company that hasn't figured itself out. i realize the engagement for those that are on this, they're very loyal, advertisers can probably get most of these same people advertising on facebook which has instagram. it just seems to me, why bother? >> dau growth has declined from 56% 20to 16% in the past year. >> not good. >> that wasn't a good number but go back to -- you mentioned this is the third quarter. the last quarter they reported, the stock cratercratered.

by the big of september, it was pushing north of 15. what does that mean? although the trajectory, as dennis said, is from the upper left to the lower right, there are a number of times, four to be specific, where the stock has had significant bounces off bottoms. in my you're probably setting up for similar again, i'm not saying race out and buy it tomorrow at 12 1/2 bucks but it's worth watching over the next trading days. >> the stock is up 13% in the past three months, short interest is 25% of shares outstanding. >> probably not so much after tonight, right i've got to think there are some people covering it but there doesn't seem to be any story here we talked about netflix and does the story break. the story hasn't broken here this story has broken. they have falling user growth. they don't have a product that people want. it's hard to use with no plan to fix it >> let's see what our friend gene munster thinks, from loop ventures, he's been listening on the red phone.

gene, you can put that down for a minute brian kelly makes a good point, has the story broken is this story done for snap >> never say it's done, but i think they've got a really hard road ahead part of the reason we're talking about the engagement here, that number has been a disappointment that's going to be a big investment cycle that they're going to have to go into to evolve the product one thing spiegel said on the call is they need a product that appeals to an older audience that's really tough. they own the college and high school, but to break from that anything what you're going to see is investors in wait and see. we're not going to buy this, this is the third straight quarter, it's going to go in investment mode. we'll be in hibernation phase. to answer your question, melissa, i don't want to say it's over but they have a tough road ahead >> hibernation phase for a company that's been public less than a year. that's asking a lot of investors, to stick with this

stock even though they missed estimates by 10% some would argue one of the main planks of their ipo road show is they could reach this very young audience i was talking to dan ives, a competitor, obviously, dan ives at gbh earlier today he said advertisers may not be that interested in that demographic anymore because the money simply is not there. i mean, do you agree with that >> i would agree with that historically that's not where the money is they need to expand, they're acknowledging that on the call the q&a hasn't started yet but that's one of the key things i want to hear, how much investment will it take and what's the time. i don't want to -- i think, you know, the reality is, this is a tough road ahead for them. there are some positive signs, 3 1/2 billion snaps a day, 7 1/2 million people in the world, that's impressive. the average snapchat person looks at their snapchat feed 25 times a day, that's impressive

for a demo that doesn't matter that much. >> clearly it's not a demographic. gene, is evan spiegel the right guy to make such a huge turnaround for snap? >> i think he is he knows the story better than ever we see this one company having difficult periods, we immediately look at the ceo. back a year and a half ago, people were questioning whether tim cook would be a part of the story. ultimately i think he's the right person to right the ship it's going to take some time, cost some money, and we'll see how it plays out >> gene, we'll check with you a little later on, gene munster from loop ventures with his thoughts on snap >> tim made the analogy to twitter. it does feel like these guys are running out of gas real really in what's supposed to be their growth segment but when we went around the horn discussing twitter, there was always somebody that could take twitter out, where -- that was at the end of the rainbow, there was the potential takeout.

is there anyone for snap now is there anyone that really would feel like they need to take them out? >> no. and twitter's got a bit of a unique product snap is competing against instagram stories. so you have a huge, huge competitor i would argue that twitter doesn't necessarily have a competitor and is an easy bolt onto something. >> the rainbows. >> or the dancing hot dogs >> i like the unicorns >> what was amazing -- >> look, there he is i mean, come on, it's -- you put it in any setting, you can snap a thing and the hot dog, drop the hot dog there. >> we've got to go still ahead, royal caribbean bucking the travel trend, the cruise stock surging to new highs, the ceo telling "mad

money's" jim cramer his secrets to success we'll give you a hint, it's got something to do with miscellaneous. jim cramer will join us live with those comments. plus amazon strikes again, the e-commerce launching two furniture brands, sending retail stocks tanking today we'll tell you how much worse it can get for that sector. much more "fast money" aer isft this is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. this is a financial transaction secure from hacks and threats others can't see. this is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. this is not the cloud you know. this is the ibm cloud. the ibm cloud is the cloud for business. yours. ♪ ♪

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company launching two furniture brands today as it tries to disrupt another industry let's get to deirdre bosa with the details. >> reporter: rivet is the more affordable line. stone and beam is a slightly higher end modern line, more in line with the wayfair price point than restoration hardware. wayfair finishing nearly 6% lower. restoration hardware off more than 3%. and williams sonoma lower by 4%. amazon announced the brands yesterday and said it's in the process of rolling them out so customers could see more furniture and more categories in the coming days and weeks. there's a range of sofas, rugs, and a section dedicated to stylists' picks. furniture is only amazon's latest brush into private label products it also has vitamins, supplements, even baby wipes morgan stanley counted nearly 35 backgrounds across 90 product

categories a few weeks ago, that number higher with its new furniture and active wear lines. it says amazon's private label business could be the company's next billion dollar profit opportunity. this is also a potential threat to other companies and industries, not yet competing with amazon. there's specification that amazon could create more private label brands particularly in groceries like snack foods and consumer packaged goods now that it has whole foods >> thank you, deirdre bosa it's been a year ofdomination for amazon since it announced its deal to. whole foods. stocks like walgreen and general mills have lost a combined market cap of $47 billion. will this destruction company? can we extrapolate what happened in that sector to what could happen to the furniture sector >> it will continue as long as amazon keeps getting a pass for not making money and jeff bezos realizes that he's on a wrecking ball through retail saying, you know what, i can lose money on this product

and put you out of business because my stock price will go up every time i announce a new market line. >> is there something different about this or is this show boating, what we used to do about best buy >> it's okay >> mel does it >> die i do it on expedia so you can't even showroom anywhere >> no, what i'm saying is you can see the general idea these are sort of the same things. i know they're private label, but a lot of these things are replicas of something else what do you do, is this something different? do you really need the amazon private label? or is it a customer experience when -- >> i'm not sure you can get this price point at your local furniture store. >> 700 bucks for a sofa? >> bob's discount furniture. bk, tell them about it >> exactly, that's where i get all my furniture >> what amazon has done in the consumable space, which is what

they've done with whole foods, makes a ton of sense it rests on their investments in logistics. can they do that in the furniture space? you can argue it's the same network. in the commoditized world of consumer products and electronics, yes, some of that is really commoditized choosing furniture, i don't think so as much restoration hardware has at least had one dance with the devil in the last couple of years on this very point again, they have their own membership card. they've done a lot with their inventory, to try to fight off amazon that stock has hit a massive run. that alone should be a reason. >> the price points between h s restoration hardware and amazon are very different >> wayfair is the one to me. that's a stock that went from beginning the year, started at 40 bucks, it's been at $84 a month and a half ago, 60 today

they're coming off what i would consider a disappointing second quarter, reported a week or so ago. guidance wasn't great. huge short interest. but to your point, are they now going to have the same dance that restoration hardware did a year, year and a half ago? rh figured it out because they indicator to a different client. i'm not sure wayfair can figure this one out, though >> let's stick with retail the big department stores all gearing up for earnings this week they could see some pretty big moves. let's get to mike khouw in austin with the options action hey, mike. >> jcpenney is implying a move of 13% macy's implying a move of 9% co kohl's stores and nordstrom implying a move of 8%. kohl's store saw double the average call volume. they were buying the 41 1/2 calls that expired this week, selling the 45 against it, one

by two what that is is a bet the stock is going to trade up actually out of earnings up to that $45 level by the end of the week, contrary bet there >> thanks for that, mike khouw in austin for us for more "options action," check out the full show, friday 5:30 p.m. eastern time. coming up, royal caribbean cruising to all-time highs after its earnings report this morning. after you hear what the ceo just told jim cramer, you might be buying the stock too cramer will join us live in a few minutes. the political shake-up in saudi arabia sending oil prices up this week helima croft will tell us how high she sees it going well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh.

feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

welcome back to "fast money. shares of royal caribbean hitting an all-time high on strong earnings, stock is up 65% in the last year our own jim cramer is in san francisco where he just sat down with the ceo, hi, jim, great to have you with us >> love being on your show, hi to the gang, what a quarter for royal caribbean. >> the ceo said something about millenials which is fascinating.

>> the millenials and the gen xers, they bring their parents and once they try us we own them and own their parents. the new ships, the new experiences, the new technology, all of those things keep people in touch, allow people to facetime, allow people to instagram from the ship. all of those things is what is driving this frankly incredible strength we're really quite excited to see it i must say it's very fulfilling. >> he didn't say snapchat from the ship what's really interesting about this, jim, is rcl, the millenial play, snap we're seeing get hammered in the after hours session, maybe that's not the millenial session. what's going on here >> i'm not sure snap as a stock or a company, no more than you can buy shares in animal house, what can you do? it's distinguishing itself on being distinctly uninvestable. it's got that blue apron taint

to it, which is saying something. famous created ships that are just great backgrounds, i'm at one market if i were into instagram, i would be redoing everything about myself i would just say, look, this is a major makeover for me. that's what people are using cruises for, melissa, they're making themselves over by taking pictures on a cruise >> let's talk take two here. in the after hours session, we're seeing a huge pop on the back of a big earnings beat, the stock is up 8% you've got the ceo on tomorrow what's your take on the quarter and the strength >> he's figured it out, he's got unbelievable content you've got grand theft auto, it's been terrific it's no longer seasonal, it's secular growth it will bring up activision and electronic arts, both which have been slammed because i think strauss will tell the story that there's competitive times ahead.

this is a great business >> jim, there's a bounce in your step because your eagles are kicking serious you know what, i'll give you that, well done. even with the move in robin caribbean, rcl has doubled i still think it's cheap on valuation. do you still thing it's keep >> yes, i do i've got to tell you something, guy. this is the most heavily shorted stock of the group people tell me, what a lay-up, it's got caribbean in its name, caribbean got hit by five hurricanes we've got to short royal caribbean. the business isn't that simple, is it? >> nothing in life is that simple, jim. as a giant fan i've come to learn that things are just not as simple as they would appear at face value. so no, i'm with you, jc. but i'm always with you, my man. >> the san francisco giants are good >> hey, come on. >> manning to who?

>> rub it in, jim. >> i rub it in because you know how long i've suffered we haven't won a championship in 50 >> we're not going to concede that to you just yet >> i'm very happy about how we're doing. >> jim, thank you, great to see you. >> thank you for having me, any time >> do not miss a very special "mad money" live from san francisco with the one and only jim cramer tonight at 6:00 p.m. eastern time, what a lineup he's got tonight, don't want to miss that show. ahead, the corruption crackdown in saudi arabia sending crude oil to two-year highs this week. is it too late to get in on the li cftilll hemaro wl be here to explain.

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welcome back to "fast money. it is the ultimate fight for the iron throne as a massive purge of princes and high ranking political figures through saudi arabia into a frenzy and sent oil prices skyrocketing. the prince ordered the arrests in what is supposed to be a major anticorruption campaign. talk about bad blood, and a story line that sounds a little too similar to the popular tv serio series "the game of thrones. helima croft joins us now, helima, welcome.

we have a little bit of time to digest what this means, what do you think this means >> i was just in saudi the week before, it was a stunning development one week later, they would repurpose a hotel from being a conference hotel to -- >> a jail. >> a jail, the penitentiary. we've never seen such a large mass detention of powerful financial figures, senior princes. it's raising concerns of investors what is the overall outcome for this country the 32-year-old crown prince is trying to consolidate power. yes, there are big corruption issues in the country but this does look like an effort to really make his mark and squash dissent. >> i like the statement that he came out through the state news agency today, saying essentially he doesn't want any of the companies or investments held by these detained people to have any sort of disruption in businesses yet at the same time there's a massive freeze of bank accounts. >> assets, bank accounts

>> i don't understand how that works. >> do i think this was perfectly rolled out probably not the question is going forward, does he have control over the situation, is saudi national guard going to be completely loyal, are there princes who could be sources of dissent. we'll need to watch over the coming weeks and months to see how much control he's exerting over the country he's been able to bend the bureaucracy to his will. but this is a real new element of instability >> is betting against him betting on a further rise in the price of oil >> betting against him means making the markets nervous the ballistic missile strike that almost hit riyadh, it's been called an act of war. >> where does brent go >> i would watch for do we have

more instability for wti we're looking at 59 to 62, kind of a tough range to break out of i think we would really need to see further deterioration in the security environment another thing to watch, though, everyone has stopped talking about venezuela, but venezuela signaled last week they'll need to restructure that debt, that's going to be very difficult given the u.s. sanctions we could be looking at a looming default of venezuela in coming weeks. >> thank you, helima >> it's often a positive for those markets. when i look at the oil space, the things that are the aggressive leverage plays in oil, you're going for drillers, oil services i think the other direction, conoco has gotten everything right in terms of getting cash back to investors. stay there up next, shares of snap down 15%. gene munster, something very e u ghafl n the call, we'lat thyorit ter the break.

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final check on shares of snap, stock down about 16% gene munster, let's get back to you, loop ventures, on the red phone. what's your main takeaway? >> expect big changes to the snap product they wouldn't give a timing for redesign of the app. apple's true depth camera which is on the iphone x, they mentioned that, it sounds like the current app doesn't fully optimize that. i think you're going to see some

measurable changes, some big changes coming they hope to expand their addressable market >> so it's a camera company that markets itself in the ipo, yet it's not up to date with the latest edition of the iphone for ar, a cute way to drive monetization >> there's more features that can use that new camera and will use it, but as far as fully optimizing it, there's some improvements they can make >> how did evan spiegel do in the q&a part >> it was a tough road ahead there, i think he did a good job of cooling people's concerns i would give this probably a c minus if i was going to grade the quarter. >> wow gene, great to see you, thanks for your analysis as always. gene munster of loop ventures, ouch, that's failing, basically. final trade. >> conoco is a conservative play >> where do you go, the utilities. >> twitter i'm still long

finally got its sea legs >> speaking of sea legs, have your dramamine ready royal caribbean. tying it all together, mel >> i'm melissa lee thanks for watching. see you back at 5:00 don't go anywhere. spial itecedion of "mad money" from san francisco with jim cramer begins right now. my mission 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 cram america. of course welcome to cnbc at one market in san francisco. my job is not just to entertain by to educate and teach you. call m