tv Fast Money CNBC January 22, 2018 5:00pm-6:00pm EST
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listen for in the conference call. >> thee reaction on the entrance of disney, and open questions. >> the u.s. subscriber beats even though they raised 5 percent. that helps explains the gain that does it for "closing bell" today. "fast money" begins right now. "fast money" starts right now. overlooking new york city's times square, steve grasso, david see berg, guy adami. the real action is -- we'll head to hollywood florida, to puke to one of the pot-only etfs, and whiched tracers tell us what could be the match made in heaven
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it's been anything but a strange right for the hid maker of "stranger things." the stock is at an all-time haim, a whopping 64% in the past year, now with a market cap of $100 billion, the company smashing expectations. it looks like the unbreakable stock, do you just keep it simple doing keep buying? what do you do >> the answer is yes international numbers are crazy. stream looking for i think 5 million, but even domestically they're growing. the streamers -- just when you think they can't grow any more here in the united states, they continue to grow it means they absolutely have a moat i've said it many times, people
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aren't saying let's go hulu. it's all netflix and chill and everything else. that's why people are running to get into the same business, but they're about five years too late. >> i would like to report that other people, you people as you put it, you can do both or do all three. i think that's sort of the surprising thing about this whole thing. there is growth in the u.s., even as the others may be growing as wet north america we pretty much thought that was saturated, so the last few quarters we put that out to pat further. for the first quarter, i think this is the closest outside of the u.s., or something like that to me, what's really important is international is costing them a lot more to grow 524 million in negative cash flow, okay so you get 2 billion, you know, subs, increase, a 10% bump, a $10 billion in market cap, but
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free cash flow is the negative it's increasing. so i can't help you here i don't think you keep buying here if you didn't come in on jan set and say this is going to be the year of netflix and it's up 30%, i don't think -- >> this is the so to guy's point, you do have to buy this one. you can't buy all of them. i think they have pricing power. i don't even check it anymore. it would have to increase in price dramatically before i canceled the subscription. >> five bucks? >> it probably would have to double before i -- we're going to go from cutting the cord to everyone owning five or six of these. >> they can continue to and upside the street. look at the penetrations in the u.s. that's why we sea, to be an up side to it to that is significant. they have 53% penetration coming into this quarter, only 12%
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internationally. you have a play in expectations, if you will. for a very long time it's very positive in my opinion. usually they try to guide down >> they also blew out expectations when it comes to the total loss for a year. the total loss came in at $2 billion. which is better than the 2, 2.5 they guided for the year prior. >> amazon has a spend problem, still, but the difference is that it's howling up in top-line here it's showing up in subscriber growth and penetration. that's all the growth manager cares about. >> it's costing them more -- dan makes a great point, but it's a land grab, they're winning at the game three to five years from now,
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will they be able to turn up that knob? i think absolutely they will. >> at some point spotify is coming to market at some point, you know, net flex has doubled the gross margins that spotify does. to me i think they're going to have to expand horizontally, they'll want something other than streaming video to me that would be something that i would use my currency, just gained $10 billion in market cap today i would go on the and buy spoti spotify. >> when they know we all watch collectively on this desk. i think somehow that will make them more official, but when you look at it, have they priced themselves out m & a there's still probably one or two that could take them out i think that's still in the cards for them >> apple >> that's the first thing that can um to anyone's mind.
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i still thinks they the behemoth in the room. so tomorrow what the street does as a reaction. they blew out the highest-end expectation from an estimates perspective. it will be interesting to see what the sell-side analysts do. >> what they are all trying to do is emulate the netflix model, so doesn't that speak volumes for where netflix is at this point? >> which is one of the reasons why everybody was trying to get that other 30% of hulu that is floating out there that's what any terms of the land grab disney is not even close. >> i don't think they're within
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five years of being closed it's scale, and how difficult it is to compete, this son of monstrosity of a user base. >> by the way, roku shares are up after hours >> we have netflix, disney is $167, disney will have 60 billion in sales this year, and netflix is, what, a quarter of that they're in two different categories so if everybody is going to do what disney is going to do and pull their content that means netflix content will be much more -- in this release, they did speak to amazon
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studios. so this market cares about growth and certain metrics that's showing up. at some point it's going to matter empgts for more on netflix, let's get to the chart master hi, carter. >> i thought we would tart with the midday, now just look at this and how orderly this trend is let's go to the after-hours and see where this stock is printing it actually hit a high of 249, or call that 250 go back to that chart -- >> this is has literally stopped to the penny at the stop and then at the bottom to the penny,
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and then at the top, then at the -- and the bottom and the bottom if you took that up to harvard or wharton, you can't explain it, it's not sxliexplicable if you're a short-term player, you sell it. here and now, it is right to a level where the presumption is it will also start to run off gas. not in a bad way, but in a big hit, profits all good, whatever you like, but book your gains. let's go broader these are the top five stocks, and then of course netflix is up here relative to all these things that are 3, 4, 800 billion, so the top five stocks
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in the s&p let's plot them those six names are 14% of the entire market. well, let's pause on this for a second these top five, top six names have a price-to-cash flow of 28.7, for those that care about the fundamentals, and like chipotle and footlocker, so you can dig around in the trash or go with the winners for the same price. it's just on trend, and it's bounced, it's bounced, it's bounced. it's just bouncing now i don't see any real trouble in fact i would think you can get closer to the top of the channel. i want to stay long this group
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now most important -- i would say this one chart argues otherwise. that's the top six and this is relative performance they have had made for progress to the tech sector in two years. so if you were crowding and overbook, i think ultimately this is a heads you win/tails you win. i want to stay long this group and expect what happened today in netflix to possibly happen to the others. >> wow, carter come on over. >> yeah, giddyap. >> karen, thanks for bringing it is chair over. >> i'm in your camp. >> what will it take to convince you that netflix will break out of that channel. >> there's a lot of wid dom is pricedened and thousands of men
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and women hours have gone into figuring this out. they have all come to a judgment why are they pricing it right at 250? they're doing the work, right? so if they're a short-term player that's persisted from 80 to 250, right calls, sell, if you're long, and you believe again it will kill disney, stay with it, but you have to know who you are in the market. >> carter, understanding that over time the bottom of the channel will clang in price, where do we trade down to? >> what would be a normal giveback, why not 5% or 7%, but but we figure out the down side, i think we have to try to eliminate the up side. the market has reset the security to a level where it belongs. from here it's a lot of backing
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and filling or some backing away. >> carter, when you look at those names you just brought up, the names that are a big percentage of the overall market, do you ever look at the underperformers? i'm not there. do you ever look at energy as opposed to tech? or is it rinse and repeat for the last couple years? >> no. for sure -- in principle the best opportunities come from either winners that keep winning or finding the reciprocal, a great loser that's about ready though bottom. >> carter, which one is the least steep? facebook >> or apple. you think apple and facebook have held in consolidation and could be ripe for -- >> apple had the big drop or
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gap, and it's climbing back. i like apple see what he does -- he is at the pinnacle >> he exceeds all the rest. >> yes. >> clearly. >> clearly sorry. would you buy netflix here >> he scarce me. he's spot on with these levels it is scary though buy it here at 250 any more scary than at 200 >> more so now than -- this is something where i think carter mentioned it if you're looking a short term, sell it, the next three years? maybe you stay with it. >> i never expected them to blow out the way they did i'm not running out tomorrow morning and buying the stock i may wait a day or two, but ultimately this will continue to work. coming up, is the retail
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trader here to stay? we have the details. another speculative trade is heating up hot stocks, we will head to hollywood, florida and the etf conference to find out what is behind the buzz. later, dan nathan is so excited about one stock, he cannot wait to step up to the plate to give us his fast pitch. much more "fast" right after this in your car, you're sending about half a gallon of gasoline up in the air. that amounts to about 10 pounds of carbon dioxide every week. (malo hutson) growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener. the solution was right under our feet. asphalt. or to be more precise, intelligent asphalt.
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should be simple, fast, and easy. download the xfinity my account app or go online today. we have an earnings 'letter. >> a beat on both of top and bottom line for the first quarter of the year. the company reporting client assets of about 1.2 trillion, up 48% year-over-year, and new assets within that, about 26.5 billion. that beat estimates byabout $300 million form the president and ceo tim hawkie credits investor engagement for a few things and enhanced consumer interest in blockchain and cab
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abyss-related securities drove a further surgeon. that was in his first quote in the press release. there is one point i should pint out. average commissions we are trade about 7.54 dollars verse $7.72 in the fourth quarter. so we're seeing a bit of a tick down in commissions per trade, but it's the first full quarter after closes the acquisition and the company has said that's helped with earnings and scale, a 24-hour trading period they're going to allow for trades about five days a week for 24 hours, so no longer are we seeing, you know, open market close 24 hours a day. back over to you, melissa. >> love etf. , thank you, leslie. what does that do? that's amazing, even if you can
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trade a small basket something breaks, you can go out and put on some sort of position in at least those etfs. >> i think the fact there's more etfs than sing the stocks, it's such a passive-aggressive trading world? either when these -- to the point of cannabis and bitcoin, this makes this much more attractive, and a rising rate helps a company like this. >> a perfect playbuy is the cryptos, and all the way they're set up, they trade 24 hours. you have investors going in there. trading those like crazy aftermarket, so there's no reason why it shooter work out >> the stock surging after bess than expected earns, the casino stocks have been on fire and up nearly 8 on%. the big winner
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wynn, up a whopping 15%. should you keep betting on wynn? >> it's not las vegas, it's not netflix, excuse me, but it's similar in that the move has been ridiculous, but i would say, you know, you have eps growth of 30%, trading around 30 times forward earnings, if you want a critical look at this quarter, las vegas was a bit disappointing. if you remember whenever we were there, mr. wynn talked specifically about las vegas i think there's room to the up side it's very hard to continue to stay with these names, but ever since he bought his own stocks early 2016, the names have been off to the races. >> so what you're referring to is i think steve wynn said it had been years since he was this optimistic about las vegas so i think what you had over the last year and a half, you know, deis valued, overshot, and then
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it came back really hard i don't think i would take one quarter and drive too much off it the whole any property there, so to me you may have a barbelled approach if they could even out -- what macau trading -- >> wynn is you want, sands is up 10%, but mgm is more heavily weighted to las vegas. that's up 11%, or thereabouts. so it's something with the casino names that are atrackeding money flow it's not -- it was macau that gout it going, but now i think it's a casino event. >> does it strike you we went from et aamerica trade and the appear tide for gambling >> and crypto. >> and pot stocks. the same thing, in both venues, but i will say evident a
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global growth economy, and you have the stock market at all-sometime highs there's no reason why it shouldn't continue to work. >> sounds like a search for return they're looking everywhere for them. >> we all love it. >> that's a good one, dan. coming up, twitter thinking about 8 and a top executive could be jumping ship. you're watches cnbc, in the meantime here is what else is coming up ♪ match maker match maker ♪ look through your book and make me a perfect match ♪ >> announcer: our traders a a a number of names tacked -- while bitcoin is getting crushed, another risky assets is on fire, and here's a hint. we'll head down to the largest
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we had nothing to do with that tie. voya. helping you to and through retirement. welcome back to "fast money. pot stocks are flying high a number of cannabis-related games feeling the buzz the last month. so can investors expect more marijuana etfs to hit the marketplace? let's get to bob pisani in hollywood, florida he's got the shakes, by the beach, a hollywood swinger bob, tang it away. >> yeah, alternative harv zest njx is the symbol. sam masucci running it
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you've stef into a real pot here, my friend. they started december 26th they have almost $400 million. >> is there enough to invest in? can you buy enough to have a half a billion etf fun >> you can it's made up of 30 stocks, they trade 500,000 shares, minute with us per day, and the business is growing, the companies entering it are growing, like scott miracle-gro, which has invested $500 million, they were wildly held. we have pulled them together i think our indecent parts is -- look at gw pharmaceuticals,
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right? it's been wildly held. not to throw a kink into this happy stories, but jeff sessions says he doesn't like this idea and will not look the other way. what if we get a bunch of fir troops stoling in. >> the majority of our countries are outside the u.s., so we'll manies like that that are benefiting through 28 states now have approved medicinal marijuana. 16 more have it on the docket.
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these advancements are not going away you think that your companies will get shut down, small? significant? large chance >> i think at best it probably impacts -- it doesn't impact the medicinal side, maybe the recreational side, but there's so many medical advancement happening with the uses of the plant, i don'ts that going away. you do a lot of thee mattic, the gaming one gamr why done turn them down >> because we're not comfortable with the way they want to regulation it. and unwe're comfortable with it, we don't see ourselves --
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>> sam masucci, i've known you a lot time you stepped in gold on this one. >> melissa, back to you. >> thank you very much let's trade this bob is bringing up a good point, an etf of that side, is there enough supply, and is it of itself. >> it's absolutely moving they stocks a lot of names are pushing them around, and it will continue until you start to see more companies go public but look, this is a sector that you have to be invested in you look at a company, they are an amazing company and below 15 bucks, i think you scoop it up. >> scotts miracle-gro is the one that sticks out. i would definitely play it with an ehmmj is the other canadian
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marijuana. that's the one i would do it with but you can't buy single stocks. i think that's too risky at this point. >> i have one. >> is this a would you rather? >> would you rather buy cryptocurrency sit -- >> i would rather do the cryptocurrency sit i think it's a much bigger market, for things that are thinking about blockchain. >> or smoke a lot of pot. >> then buy a lot of crypto. >> could be a thing. >> i hope not. >> it's important to look. disruption of medical companies, big-cap pharma this is a big -- it's going to -- for more on the weed trade let's bring in our pot master, tim seemo? seymour hey, tim
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>> system my new moniker >> you're in ethereum and pot stocks, but fresh money white now, what is a better bet? >> i think value way iist i thi they see are valuations. i'm not going to tell you, if you look at canopy or aurora or gw pharma, they're not cheap, but in some case they haven't even begun to price in efficacy on a lot of the pain relief. whether it's epps lensy or industries that are starting to find application for this, that's the story here. it's not to me all that recreational in i think the legalization has been a catalyst, but the medical side has been a about ig de.
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the top four names make up 30, 40 percent, those names, you know, they are four, five, 6 billion companies, right now that's one way to get good exposure. >> when you're looking at the individual stocks, tim, is it important that these stocks are based or much of their business is in canada versus the united stat states. my view is if you listen to 17 attorneys general who in the last week have written washington and pointed out just how important this business is to their states how i think this
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is jeff sessions may have an aend that, but it's one i don't think is consistent i think people can invest in australia, in i think are very, very attractive now >> tim, thank you. i hope you didn't use your luggage -- >> i didn't bring it that's how i don't lose it. >> look, new jersey is coming into play. wait until executives watching the lines, wall street is goods to eat this up. still ahead, major drug deal on the street as celgene agrees to buy juno.
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what is the next biotech deal. plus dan nathan stepping up to the plates, deliver a chip for one chip stop up 38%, will the other adtrers buy in that is next much more phony phony, after this break let's get started. show of hands. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.
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>> when i think about the potential for this tax bill to be cut for that, what it does to the valuation, and then you think about the optionality, i think autonomous driving will be a macive investment thing, and next year you may find stocks lice auto nation catch a bit. >> they certainly did. up 17% since that call >> listen, this happened in the last month or so, up 52% or so i think you take the trade i didn't like the way it was acting i think the market now appreciates it, so to me 52 to 60 in less than a month, i take it. >> dan is on a roll everybody so head over to the plasma.
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>> here's the deal, under, the smh that's a semiconductor, but broadcom, abgo, is only up about 2% closed,some of the reasons why, they trying to buy qualcomm. the whole thing is a big mess. but the stock is kind of stuck here that's why i believe the reason for the underperformance i think the main reason for that is valuation, trading below market multiple, but the company is expected to grow earnings close to 20% on like 18% sails growth, so on a pe-to-growth,
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the symptom is pretty cheap, and die spied the underperformance if you -- this is 260 down to about 255, also the intersection of the up trend the stock haas has been up about 38%, obviously outperforms the nasdaq, but it has underperformed the index i think this stock 262 is a good buy. they'll report in late february, maybe get some resolution, but i don't think the m & a matter, but i think it goes up one way or another however, is there a circumstance where, listen, qualcomm says you're severely undervalued. there's a situation where you might see quality dom overbay? >> there's -- i think there may be some other politics
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i don't think they're going to overpay. they're very savvy about m & a you just don't know. we have don't know let's go on fundamentals i just want to make another point. they're at 7% couple to apple unwith unthat sold off was taiwansemiconductor, go look a that one so to me i think that a lot of the bad any may be in the stock. i did like -- i look micron, but all these stocks seem to be rolling over, so you have to wait a bit, but it ohms lines semis could be sick. >> i think it's a concern over the apple supply change. i'm a buyers of broadcom i think you can see some
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consultation, being long term, this story is intact i think the stock continuing to work. >> guy >> i'm with dan as well. broadc broadcom, there might be a bigger fish out there. abgo will get you done you can vote on our poll, plus. juno soars after celgene, which stock will be the nextig b biotech start? much more "fast" right after this erup to the challenge. the gig-speed network from comcast business gives you more. with speeds up to 20 times faster than the average. that means powering more devices, more video conferencing, and more downloads in seconds, not minutes. get fast internet and add phone and tv for only $34.90 more per month. comcast is building america's largest gig-speed network to give small businesses more.
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we have a news alert leslie >> that's right. i'm hearing from source being 18% of his firm has been laying off. it's about 56 employees to 46 employees so laying off about ten people only one of those people i'm told is an investment professional he told those who were laid off on friday and planned to announce at a client meeting on thursday the restructuring of the firm, it's in response after of the assets that they
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managed in 2015, so as a result they don't really need as much back office personnel. bill, as a result of this restructuring, plans to spend more time investing, less time marketing, which as you know, has largely been the face of the firm there have been some redemptions at the end of the year i'm told, but that was not particularly the year end event that -- he's posted losses for the last three years, so you're starting to see the -- >> thank you, leslie picker. >> his hear ones he wanted toss more focused >> you're smirking. >> i'm just smiling. you're right, it is a smirk. >> why
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fit, about a year ago now it's broadband snapped up for $105 a share. the deal gives san oy fit two marketed drugs for hemophilia, probably about $850 million in 2016 revenue san oy fit cites a $10 million market, but investors worried about increasing competition fr roche celgene acquired juno for about $9 billion at celgene spend $93 in to 2015 to acquire about 10% of the company it brings personalize the cancer therapies to market. that it will bring in $3 billion po peak annual sales, so they've had open season for m & :, with lots of big companies and
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older -- and of course there's a wealth of biotech targets valued between $2 billion and $10 million. >> meg, thank you. meg tirrell back at headquarters. there's been plenty of talk about deals to come, so we thought we would ask our players to play matchmaker here. who do they think would make the perfect match? grasso >> the market tells you more often than not where the target will be. bluebird has been out there a as a potential takeoff target i think i'm going to say pfizer blue democrat bird is the next one, and i think it's gilead that takes them out. look at gilead, and 12 sometimes
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multiple >> is celgene a partner? would they be an obstacle? >> i don't think so. >> guy >> me or dan at t tesaro has had a -- what's the point? better to buy these stocks when they're down than to try to pay up for them. i think pfizerless the comes in, they have a ovarian cancer that works. let's get to mike in austin to break this next one down?
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>> not necessarily some kind of a match, but allergan, two times the average daily call volume, the most active. over 2,000 of those traded for an average so these folks are making a bet that allergan will recovered. >> what's going on >> on the "fid hdler on the roo. >> pete knows all the shows. >> he knows all the lyrics it's amazing check on the full show on friday, 5:30 p.m still ahead everybody twitter in trouble, and now a top executive might be jumping ship. are you buying what dan nating is selling vote on our poll at
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cnbc.com/fastmoney much more "fast" straight ahead. you traded options. t i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade you myour joints...thing for your heart... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember.
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you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. twitter taking a hit on the notes that the ceo could be leaving. >> anthony soto is in talks to
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take over the ceo on so-fit. but our source says rules are still being negotiated sofi has been looking for a new ceo since the founder left in november losing noto would be a blow to twitter, considering that jack dorsey splits his time between twitter and squares. and warranting, quote, investors may know ascribe similar confidence in a replacement. and previous water experience. twitter shares are up about 30%,
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and stronger than expected guidance now, much of twitter's progress is described to noto a noted analyst saying he has a reputation to putting in better organization and management. >> julia, thank you. dan, is this a real problem if he goes? >> it depends. they don't want a long drawn-out process. everyone loves him jack is the ceo of two companies, i would bring adam bain back, make him co-ceo of twitter and jan issic c oceo i would make sarah fryer co-ceo. >> they have a user growth issue, no ad buyer wants to invest on the twitter platform you look at mobile and you talk about video, you talk about google, facebook even. every ad buyer is still gravitating toward the platforms.
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over here. >> that is the soundtrack of my life i think broadcom is good here. >> tesaro will get you done. we'll se s. >> my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach so call me at 1-800-743-cnbc or tweet me @jimcramer. even in this market, this beast of a market, you do ge
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