from these tech beg weathllweth. if it reverses -- >> if it shrugs at this -- the response pattern changes to earnings over the course of the season so maybe now we're in the positive phase. >> it's quite an afternoon. thanks, mike. that does it for "closing bell." "fast money" begins right now. "fast money" starts with another earnings bonanza. four major companies reporting moments ago their conference calls getting ready to kick off. full team coverage. plus, "fast money" jegene muense manning the red phone. and that is exactly where we start tonight. check out that stock going.

so is this quarter reminder that amazon is still the king of the jungle and is it in the other names of about to become must-own stocks, again, guy? >> tar zan and everybody else is jane not to cast dispersions -- >> what dispersions? >> you know. you've been with me most times. most time i'm wrong. ever since president trump started tweeting about amazon, you have not heard one word from jeff bezos, the only time you heard from him was a week and a half ago, we're up to 100 million prime subscribers, they're going to absolutely smoke earnings because they can. look at operating margins, up 3.8%. looking for 2%. they did it because they could. you still own it here, i say yes. >> aws revenue up 49%. >> this is an important point. this is a company that just printed $51 billion in sales about 10% of that was aws, okay, and that was up 49% like you

said year over year. that is a disproportionate amount of their profits. when you think about all that they're spending right now. they're global shipping costs are up 38% year over year. they're spending for this retail which is pretty unprofitable. when you have aws growing like that and all we heard all quarters, microsoft's gaining on them, the pie's getting bigger. they're maintaining shares. aws is allowing for this unprofitable shares of the retail front. >> we're supposed to be 45%. that's significantly stronger. if anything that's almost enough shift for the segment that's the highest profit margin part of their business. the top line 51% is extraordinary. that is well above expectations. to me, i think the overhang from the regulatory side is something that's -- i think you can overdue it a little bit as well. at the end of the day as much as even i have said, there are ways you could go after amazon on an

antitrust basis. i think there's -- there's an argument to be made that gdpr is something you have to worry about, all this european regulation coming down upon them. t the essentialment in this stock took a major turn. they're putting themselves in a position despite shipping costs to increase margins. >> what you do you think, karen? >> we haven't seen a tweet from the president about amazon, so that's allowed them to lay low a little bit which is really good for them. him saying absolutely nothing as it turned out absolutely correct. he had a gigantic quarter to announce. i don't think it should have a lot of regulatory pressure in the stock, really. i think that ship has sailed. the president distracted by other things right now. i don't think there should be any discount on it for that. extraordinary quarter. great that we're finally looking at earnings earnings. not all the other kind of noise

around the world but earnings for the market. >> you said we had not heard from jeff bezos when it comes -- i think we actually heard from him in a shareholder letter in response to trump and that was not mentioning trump or regulation once in that entire whatever, 12 page shareholder letter that he had. >> his silence spoke volumes. >> here's the conspiracy theorist. >> i like this game. >> amazon stocks all-time high adding $50 billion in market cap just like that. >> does president trump not get back down with the tweet tonight? the short answer is maybe he'll give it a shot. look at the amazon quarter. they're not paying their fair share of taxes. we need to do something here. that could happen, dan. i don't think it will having the same effect it had last time. >> if anyone has a brain and you see a tweet from the lunatic in the white house, this is a company that's investing in their business, they're putting people to work, they'll have this second headquarters, and hire 50,000 people, right. they're not paying taxes because they're reinvesting the

business. tim cook who actually might have been one of the biggest apple, one of the biggest beneficiaries of this tax cut last december, he's in the white house yesterday. you know what i mean bezos doesn't care. he's not responding. what i'm saying is, tim cook has to cow town to the president, jeff bezos doesn't. >> i think you're saying it's overdone. the shipping costs are overdone. they're setting the market and these guys are in a position to push the market around. they're united natural foods business is important. the reason they did that whole foods deal is because they want to compete and dominate in the consumables business and they're crushing it. this is very bad news for target and walmart and for all those guys that are trying to play in this space as well. competition is fierce. >> dan makes an interesting point about the importance of -- are you surprised -- are you surprised -- the one point that i found the most interesting let's put it this way was about aws and the importance to amazon

of aws but that also gives them deeper pockets, right, to bank roll other businesses that may not be so obvious, like buying a grosser or investing more in planes or airplane hangars and to the impact to a walmart to the targets of the world, the effects of them having such deep pockets, they can spend, spend, spend and not many money in other parts of the business and put people out of business. >> you can't stop. you can only hope to contain amazon. who spent for five years almost ten years so much in logistics and procurement and erp and warehousing and no one knew what was going on. meanwhile, no one can duplicate that footprint right now. >> they've been really rich for a long time and have had access to a lot of money for a long time. sometimes they leave them for dead and we don't remember it. so it'll be interesting to see what they do with this health

care thing with jpmorgan and berkshire, whether that becomes a business, i don't know. aws just started seven years ago -- >> obviously this shift towards, you know -- towards these cloud providers in the public sphere is a master secular shift. we just talked about. this is a massively ca mod did i ties yood product. so the only thing -- >> that's been the argument for two years. >> 20 years ago there's a company called exodus communication which is doing the same thing. when all the start-ups went under in the dotcom boon, exodus went bust. they had a bunch of servers -- >> are you talking this is not -- you were just talking about it from a positive. >> it's a fantastic secular shift that's going on. one of the biggest in computing

in 20 years. >> what do you mean? >> listen, amazon just did more aws sales in t-- >> what i'm saying is, it's not going to last forever and at some point when those margins start declining and they losing shares, then we'll get back to oh, yeah, online retail is not particularly profitable. >> the next 12 months, though? >> it's going to be great. >> largely, let's be clear -- >> they haven't cared in the last seven years -- >> it's not been ever about margins for amazon. it's been about the top line and that top line is insane. >> it's been important because they've been able to grow sales at 40% a clip for the last five years because they had the margins from aws, because they were a first mover and because they nailed a secular shift. >> switching gears, sort of,

we're showing the faang stocks across the board. >> would you rather, rather, rather, but of the faang stocks. >> facebook, go ahead. >> facebook, amazon, netflix. >> most interesting one. >> google. >> well, given the moves of everything we just saw right here and now, alphabet. >> alphabet. >> alphabet, alphabet. it's the most compelling on these values. >> interesting. >> alphabet. alphabet is a company that despite regulatory overhang and they've got as much as anybody, by the way, they're paying the european commission, they're paying their dues. i think they'll work with everybody and be fine. they have more businesses to me that are less monetized. youtube's exciting but google is the best valuation by far. netflix, you know how i feel about that. i would be running for cover. >> it was a would you rather. >> i played it right. i played it right. >> yeah, yeah. >> don't lump me in. >> let's get instant earnings analysis. let's get to the charter master.

hey, carter, what do you make of amazon >> incredible stuff. what's telling is where industrials were poor reaction to the earnings, banks, it's the opposite with tech, of course. let's go through the big three today that have reported. this is the interesting thing. it hit high right after the print of 1641 and now look where it's trading 1615. remember that number 1615 and let's look at the chart. the all-time high was 1617. it was a tuesday, march 13th. so i think you'll get a netflix type reaction. we'll struggle to make a new high. sort of in a buy, sell, hold sort of thing. i'm in the camp that you take some profits into this move. we're just too far above trend and i think it'll get to the high back and not progress. moving on. now, this in a way is the best of the bunch, in terms of the reaction. it is making an all-time high.

57.20 if you look at the chart, this is the interesting thing. is this catch-up finish? what i mean by that is, this is the laggard compared to all semis, it's spent all this time not progressing and it is just now having broken out over the past year. it's not steep, so we're printing clear new highs. this follows through. finally, microsoft, and also i like this one, two of the three for tomorrow trading higher. down quite aggressively, holding down if you will. the thing that appeals to me, as this thing from amazon, this is still very much sort of on trend. itnever got quite so steep. any opening weakness i'm inclined to buy microsoft. >> carter comes over. >> he has to. >> ryan will bring the chair in. thank you, ryan. i'll play would you rather with you. what's the best chart?

>> so i think the sleepers going to be intel. it lagged by so much. the fundamentals is probably the cheapest. i would say that's goingto be the most surprise. i think amazon would be like netflix. that fade and right at the prior high, to think about that if you go to 1641 and now at 1615 i think it'll fight at that. microsoft is maybe the slowest moving but i also like that one. >> let me just go back. intel, which is one we all agreed on was the one to own in the space, i saw your chart, where do you think it could go >> the prior high which was only on the 18th of april days ago which was 54.50. we're printing 57, 58. if you looked at the long-term, there's plenty more to go. in the low 60s. >> carter, so let's talk about this. amazon's making new highs. it was one of the first mega cap stocks to make a new high after that february selloff and the nasdaq came back and made a new

high. we're much lower now, though. could we have those stocks making highs that we're just talking about right now, could we have the nasdaq remain in the range and not make a new high? >> if you think about it, what determines the whole is the parts and we've heard from a lot of the parts, after moves like this we're nowhere near the highs the nasdaq 100. at that point you can infer that those high -- >> my question is, really, are we one step forward, two steps back in this whole thing are we making a lot of ground here or are we just going to churn? >> is it a goalpost trade? that's really the market we're in and you still have room on the cues to trade this higher. >> let's talk about the two sectors leading on the year. number one is consumer discretion up 4.5% and right behind it is tech. here's the distinction. the consumer discretion is up 4.5% but the equal weight is

down 1%. whereas in tech, the equal weight and the actual weight are even. meaning, tech has a much broader participation rate in terms of its strength. my hunch is if you get down to the growth value, you don't want to be in financials industrials. you want to favor growth which is dominated by tech. >> i agree with carter. real quick, but in terms of valuation, intel's the most compelling. you know what, he actually might be right, too. >> carter thank you. coming up, monitoring the two big after-hours calls are just about to kick off. you'll get the latest comments. plus there's more, starbucks, intel, expedia, we'll bring you the latest details on those names as well. say it ain't so, the former ceo of paypal is surrounding the alarm on bitcoin saying it is the greatest scam in history he joins us for an exclusive

interview about his controversial call. you're watching "fast money" live from times square in new york city. much more "fast" right after this. ♪ lower carbs. ♪ lower calories. ♪ higher expectations. the light beer you've been waiting for has arrived. introducing corona premier.

hey, want thedone.est internet? and now, xfinity mobile is included. you can get up to five lines. you can save 400 bucks or more a year, which you can spend on a funk-tastic music video. ♪ dance party boom. ♪ simple. easy. awesome. come see how you can save $400 or more a year with xfinity mobile. plus, ask how to keep your current phone. visit your local xfinity store today. welcome back to "fast money." we've got earnings alert on expedia. seema? >> reporter: rebounding after hours thanks to stronger than expected bookings. it's a sign that its spend on marketing may be starting to payoff the street is excited by its growth in homaway.

expedia's competitor to airbnb which sold a year over year growth and the ceo is confident there's more room to grow. >> home aways online and reported gross bookings to $10 billion on a trailing 12 month basis. a nice milestone as the team continues to make great strides in transitioning to a true e-commerce business. it's still early days and we have lots of work to do but we continue to see a tremendous opportunity ahead in the $120 billion alternative ak accommodation space. >> while shares are higher, expedia has been the underdog in the online travel race and that's primarily due to the increase in costs as it tries to play catch-up to industry leader booking holdings and invest more in the vacation rental space as airbnb continues to expand into new markets, specifically in asia. also worth noting that since dara left expedia, shares are

down nearly 20%. one pain point continues to be tra vaggo which expedia is a big shareholder in. challenges continue in yesterday's results. also later this year, sources close to cnbc say expedia's contract with marriott is set to expire where the hotel chain will likely negotiate for lower commission fees, that of course could hurt margins. back to you. >> thank you very much. if i'm a marriott or another hotel chain, i'm wondering why do i need expedia? i personally use expedia to showroom. i look at the prices and go direct to the hotel. >> i do too. i like marriott. i like their global business right now. they're growing 4.6% if you look at those numbers in the last quarter. these guys -- they're consolidating the space and they're the highest gross name in that space. >> karen, we're in a pretty good spot here? >> we are. i'm surprised that the marriotts

have actually done as well as they have. i would've thought we would have seen a much more effect from the airbnb, like look what's happened to the rental car companies. why have we not seen that much effect i wouldn't be long on here. >> expedia to me is a relief rally from last summer. it was $140 stock. the question is at what point does marriott close to 22 times now forward earnings, at what point is that too expensive? to your point z it deserve that valuation in the world we find ourselves in. apparently yes, but for how much longer. >> i think expedia is a totally fine job. you can make all these qualitative judgments about what it is or not. it's obviously a -- this thing is trading 20 times, 19 times next year, double digit earnings in sales growth. they just got off losing the ceo to uber who people thought was an absolute star.

let's give them time here. this one seems fine. still ahead, we are all over those after-hour movers. we'll bring you those details. i'm melissa lee, you're watching "fast money" cnbc. here's what else is coming up on "fast." >> mom, dad, it's evil. don't touch it. >> that's what the former ceo of paypal is calling bitcoin. he'll tell us why in an explosive interview. plus, it's the question every investor wants to know -- >> are you the key master? >> no, not that question. they want to know how much a stock is going to move on earngsnd wllin ae' tell you how to figure that out when "fast money" returns. nt, we're helping today's leading media companies create more immersive ways to experience entertainment

with new digital systems and technologies. get ready, because we're helping leading companies see it- and see it through-with digital. (barry murrey) when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference.

(barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away as we get faster wireless connections, it'll be possible to be able to operate on a patient in a way that was just not possible before. when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away? ♪ welcome back to "fast money." there's one area of the bitcoin market that's booming and it could be pointing to new signs of life. bob pisani is breaking it down.

hi, bob. >> reporter: that's right. futures trade sg picking up. bitcoin futures trading started in december on the cme and the cboe. they saw a record day for trading bitcoin futures at the cme which traded over 11,000 contracts. and at the cbow hit 2,300. what's going on? some of the volume is being driven by the role as we call it. this is the april contract for the cme expiring on friday. there also appears to be increasing interest. cme that 50% of the trading volume yesterday was traded before regular u.s. trading hours. this does not look like a one day event. trading in the cmes bitcoin futures have been increasing every month since trading began in december and even at the cboe march was the strongest month,

though april is weaker. the bottom line is this, trading in bitcoin futures has been creeping up almost every month and the contracts seem to be settling with very few, if any, issues. this is a very good sign. don't kid yourself. trading volumes and futures are a fraction of trading in bitcoin itself. in april, volume in bitcoin itself routinely exceed 600,000 on a daily basis. still, the trend looks like it's moving in the right direction. back to you, melissa. >> thank you very much. tim what do you make of this pick up in futures trading >> that is what we're all talking about in terms of the institutional audience and the more legitimate audience. the other trend that's very impressive is the chart. the deck 19 high and that down trend from, there you actually are around 8,000, you got that through that trend and -- you know, with bitcoin it's going to be volatile but you're largely holding that 200 day and i know that noes not necessarily the only thing to look at. the price action -- you've broken that down trend and at

909,100 -- >> bitcoin may be booming but our next guest says it is a scam. former paypal ceo bill harris called the currency the greatest scam in history noting that it is a pump and dump scheme unlike anything the world has ever seen. how does he really feel? bill harris joins us from san francisco to stand by these claims. great to have you with us. >> hey, how are you? >> good, thanks. reading through this op ed, it's the bear case, the critics case that's been put forth for a long time. not accepted as a means of payment. there's no store value because of the volatility in price. is it possible, though, bill that perhaps bitcoin has not yet found its use as a cryptocurrency yet and that we're looking at the united states where there are numerous ways of z-ijtal payment and the use of dollars is reliable and good and we're not looking at other markets that need an alternative currency such as the emerging markets >> well, sure but even in

eemerging markets might as well use existing currencies if the local currency is subject to hyperinflation. >> you were out there in silicon valley and you probably hear a lot of the adventure capitalists compound on the virtues of bitcoin and block chain. >> yes. >> is there anything about this that you think is not a scam or does everybody drinking the kool-aid >> well, yeah. there's a lot that's not a scam, but yes, everyone's drinking the kool-aid. just a couple of days ago, somebody relatively prominent said bitcoin is bigger than the internet, bigger than the industrial revolution. >> what about tim draper >> yinlt to mention his name, but yes. >> he's also saying that in four years it'll appreciate to the point where the bitcoin or -- bitcoin and all cyber -- cryptocurrencies will be worth about how the entire s&p 500.

>> there's just -- there's no relation between value and usefulness and on the usefulness side -- there's the currency like bitcoin and then there's the technology, like block chain. block chain technology has terrific applications, including financial transactions. we don't need a new currency to do it and, by the way, there's no reason that a new currency should instantly have, you know, billions of dollars of value. >> it's karen. i read your piece. i agree with almost everything you said on the ico market, but bitcoin itself, a lot the arguments you made one can make them for gold and yet, gold exists as a part of peoples' portfolio. you can't really transact in it. you can transate much easier in bitcoin and it's only a store value. it's not as volatile. been around a lot longer -- these are properties that bitcoin has as well and people think of it as an asset class

which bitcoin is emerging as. how do you differentiate between gold and bitcoin >> i think similarly, gold is yes, an asset, but not something that generates revenue or profits. it's just something that sits there. and it's got a long history of being something that people will look too for stability and it has reasonable stability in price, at least visa have i something like bitcoin. where does the value come from if it's not an effective means of payment, if it's not a great store value and i don't think it is, at the vest least the volatility what makes it valuable. people say scarcity. there's no more than 21 million bitcoin that will ever be minted fine. my autograph is scarce. i can promise that i will never autograph a piece of paper more than 21 million times, but it doesn't make it valuable.

>> the network effect could make it valuable and if you think about -- we could sit here and go back and forth on that. jack dorsey, obviously the founder of square, recently said he thinks the world is going to have a single currency and he thinks it's going to be bitcoin. isn't there some truth to the potential for that if you think of the digital age we're imme e immersing in >> i absolutely believe that money should be digital, is becoming more digital and will be effectively completely digital. it doesn't mean we need a new currency to record that. >> all right. bill, thanks for your time. it's fascinating to hear your thoughts on bitcoin especially as a former ceo of paypal. >> you bet. >> let's trade this. i want to get to that notion that you can be a fan of the block chain but not endorse bitcoin. how do you maintain that distributive ledger if there's

no incentive for the minors out there, there's no way to reward people for investing in the software and system? otherwise block chain just becomes an enclosed system, doesn't it >> we can be critical of bitcoin as the vehicle but not necessarily be critical of block chain and certainly the -- whatever one is in agreement on and what bill is a pioneer on is essentially digital transmission of money. so, you know, i think that's a valuable view. i don't necessarily -- i wouldn't fight someone saying i don't think bitcoin's the horse. this isn't happening and the digital currencies aren't real value, i just don't know if bitcoin's the one. >> we got a news alert. sprint and t-mobile news. jackie. >> t-mobile and sprint are making progress negotiating their merger terms aiming to successfully complete a deal potentially as early as next week. this is according to people familiar with the matter coming

off the reuters headlines. the stock is moving after-hours up about 6.5%. >> okay. thank you very much. what does this mean for competition within the space when you narrow down the number of players >> last night we talked about at&t. we had a long conversation, 32 is on the show lastnight. we talked about basically draw the line in the sand at $33 and that's effectively where the stock closed. now you look at it, it's up in the after-hours, if you're looking for risk/reward off this headline with an easy stop to the downside it's at&t. >> in terms of what this means for the sector when we have been in a real period of deflation. your bills are going down essentially. fewer players out there means what, less competition, could these guys get pricing power back for verizon, at&t >> or maybe lose it less quickly, i don't know. you need to look at the tower stocks. this isn't great for them. you got a bigger competitor who has more pricing power.

>> it won't matter if there's three or four guys. that's the better way to play wireless right now. you have to go back to see the comments that at&t had about upgrades and the cycle for wireless, it's very mature, saturat saturated. we've been talking about this for three years and they're ultimately going to have to. at&t has already moved on. they have right they need and now they're going for content and distribution. >> regulatory problems, headwinds here >> they've gone out of their way to point out how they're not and i'm not sure the measuring stick within the regulators is what's real or not. >> verizon, at&t are up by just about a percent. coming up, it is a busy night for earnings here on "fast money." amazon, microsoft, intel, starbucks, all on the move after-hours. amazon the big one up 6% touching all time highs. that conference call just starting. gene standing by on the red phone. all fireupd about the quarter.

much more "fast money" still ahead. improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

welcome back. starbucks is falling after-hours. eric. >> you can see after-hours starbucks down 2%.

that gives up all the gains it had made today which had been all the gains starbucks had made for the month. ceo kevin johnson talked about their biggest growth area right now is in china, where they saw 4% comparable year over year sales growth there and he talked about trying to grow that chinese coffee culture. >> we continue to mindfully evolve a coffee culture in china where the reward will be healthy long-term profitable growth for decades to come. >> he'll be on cnbc tomorrow morning right around the opening bell at 9:30. you'll want to check that out. back to you. >> thank you, eric. you're a shareholder, tim? >> i'm not too worried about these numbers. i look at the valuation in the stock which has done nothing over the last year, year and a half. 20 times forward it's, you know -- it's attractive to me. it's a very consistent company

with multiple sales channels and multiple buttons to push. i'm not so reliant on china as you think this makes it sound like it is. >> we talk about these faang stocks and -- >> starbucks isn't a faang stock. >> when we talk about growth and who can get it from china and it's not our mega tech companies, apple did have that and now it's actually hurting them. they haven't even benefitted from china yet. this is a stock that is trading 20 times, double digit earnings and they're focused on it longer term. that's a great longer term bulk case. if they are ever able to make it a coffee culture, they'll be there -- >> they don't need to make it an entire coffee culture. they're growing this organically. i like how they're growing their china trade. they've been at this a while. >> amazon to raise the price of its prime annual plan effective may 1st. >> do you think anybody is going to flinch?

no way. >> no way. >> no way. that's one shipment of bad sneakers, guy. >> how much are they raising the price? >> i'm not sure. >> whatever, it is, fine, we'll pay it. >> the next thing i buy online will be the first thing i buy online. i'm not there -- >> 20 bucks. >> 119 -- to. >> that's a big boost. >> $20. >> the concern we have about starbucks briefly is margins in asia-pacific were lower and we can talk about valuation which is right. if the margin deceleration would be a concern for me. >> amazon shares up 7% right now. it's a big tech earnings extravaganza right now. we're talking about amazon. amazon new record high here up 7%. intel soaring to its highest level since 2000. we'll bring you all the latest headlines from the conference calls right after this break.

time for our big tech earnings whip. let's get to earnings alert in amazon. >> just a few minutes into the amazon earnings call, the cfo saying that amazon would be raising the price of its annual prime planned in the u.s. from $99 to is $19. have a listen to what he said. >> so effective may 11th, we're going to increase the price of

our u.s. annual plan from $99 to $119 for new members. the new price will apply to renewals starting on june 16th. now just before that he said that the value of prime to customers has never been greater but he also pointed out that the cost is also high. amazon is going into new businesses and offering more and more to its prime members. this is important because last week we finally got for the first time a number on how many prime members amazon actually has. amazon has more than 100 million prime members. so the price will be going up for existing members at a later date but immediately -- almost immediately may 1st for new members. we'll let you know what else we hear. >> thank you very much for deidre. let's get to gene. this could be very meaningful. i would imagine that the churn related to a price increase would be minuscule to very low, and in terms of revenues, this

is -- i don't want to say significant in the context of the total revenue but this is important. >> it is important, melissa. let me put quick context on it. as an analyst, the math doesn't get any easier. they told us roontly there's 100 million prescribe subprice screws that's $2 billion a year in annual pure profit. this is all incremental. i'll try to put that in perspective for next year, 2019. that's going to add 4% to the bottom line. this is a big deal and i think speaks to how connected people are or committed these prime members are to the amazon platform. >> we saw this with netflix as well. they raised prices and that was pure profit and people basically didn't flinch. >> i don't think most consumers are going to flinch. they used the earnings call as a platform to try to sell people on why you got to stick with this and one of the metrics they gave out was 100 million items now that are delivered for free

over two days, prime, which is one of the benefits obviously of prime and that number in 2014 -- 2016 was 20 million. we've had just some exponential growth in the numbers that qualify that. no one's going to flinch at. this it's a bignumber that's added to amazon's bottom line. >> it's karen. did you have anything in your model for next year for price increase for prime subscribers >> we didn't. we did not. i did not pick that up from investors either. i think that this is a surprise and the mag any tuds a surprise too. a typical price increase is 10%, they're doing 20% this time. >> does this signal the first price increase since 2014, does it signal they're going to start spending a lot more on content. they give that conat any time to free to prime members, video content? >> i'm glad you brought that up, because there's very -- i'm going to run out of adjectives to describe how powerful a

quarter this has been and in particular around the profitability basically double what people had expected. i want to remind people about a philosophy that amazon has which is they have talked in the past flexing their profitability muscle to remind investors the type of leverage in the model. that's what they're doing this quarter. in this call they will probably remind analysts, don't get carried out with higher margins. they're going to invest in prime and other products -- could be in health care, who knows and new forms of echo, so expect -- this is really good. don't want to take anything away from the quarter, you would expect from tempered optimism. >> you sounded pretty jazzed about the quarter overall, even when the first press released drop, how would you grade the quarter? >> i mean it was very few as out there. it was an a before and then when they did that price increase, i hate to say it but it's an a-plus. >> wow. so you would buy the stock

tomorrow up 6% >> i think that this company is -- to answer your question, we're still believers in amazon. the stock does move higher over time and part of the reason is that these are still early. retail is going to get still systematically taken apart by amazon. this concept of dropping things off in your car while you're at work. it's brilliant how they're attacking this. acceleration from 43 in september, 45 and 49% in the march quarter. is testimony to a killer product and growing market and so that's an a-plus type of a quarter. >> gene, good to see you, thank you. >> thank you. guy adami, you agree with gene. a-plus on the quarter. >> melissa knows what that means. >> tim and i were just saying we never got one so it's foreign to us. >> don't throw me in there. >> amazon -- when he says they'll put things in -- explain

that. >> they're working on -- >> i'm not exactly sure how exactly it'll work. >> don't make a face at me. it's a legitimate question. >> didn't you watch the news yesterday? >> any way, any way -- >> it's a ridiculous quarter. operating margins were almost 4% twice what the street is looking for. it's crazy. >> gene didn't mention concerns at all about margins in this company. he thinks they'll get better. if that's the rub, i'm not sure that -- >> what he said was actually they could go down as they start to spend more and so don't get too optimistic. >> that's all been the push/pull on amazon. >> this is an analyst community that has really pushed at amazon to show them they can make money and i don't hear any of that in gene right now. he's going a-plus on them sorry, guy. >> what do you mean guy? >> i'm amazed at what an extraordinarily powerful machine it is. i would like to see the competitors as well will be seeing more from that. >> i guess the question is does

wall street still believe in how amazon spends the money. it's assumed they're going to spend it somehow. >> as long as they don't care and when they're growing sales the way they do. this is a company that maybe at best will have $200 billion in retail sales this year, we have a $5.5 trillion retail market in the u.s., less than 10% of that is e-commerce. as long as they don't care about increased profitability then they care about the top line and the story's going to continue to work. coming up, a huge beat on earnings. the stock soaring to its highest level on 2000. after-hours we'll bring you the very latest from that company's conference call. we're live at the nasdaq markets. muchor me "fast money" still ahead. it's true. so all...

evening long. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you? no one thought much of itm at all.l people said it just made a mess

until exxonmobil scientists put it to the test. they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's not small at all. energy lives here.

hey, want thedone.est internet? and now, xfinity mobile is included. you can get up to five lines. you can save 400 bucks or more a year, which you can spend on a funk-tastic music video. ♪ dance party boom. ♪ simple. easy. awesome. come see how you can save $400 or more a year with xfinity mobile. plus, ask how to keep your current phone. visit your local xfinity store today. welcome back to "fast money." shares of intel surging after-hours. let's get to aditi roy in san francisco with the latest in the earnings call. >> hi, there. intel shares are soaring right now after a big earnings win. a key metric, the data center

group revenue number that came in at $5.2 billion versus 4.84 billion estimates. that number's referring to chip's use and servers. that's apart of the business analysts are watching very closely. it's also one that the company is investing in since cloud is such a growing category and more and more industries are shifting towards the cloud. to that end, intel's data centric businesses accounted for nearly half of its first quarter revenue. the company beat on revenue coming from their client computing group which refers to pc and mobile chips. to that category, competition from companies like amd, and the decline of pc sales which has prompting the companies to focus more on its data centric business. ceo also gave investors an update on how the company's tackling the inspector meltdown vulnerability. >> intel and the industry stepped up a tough clench as we responded to the security vulnerability.

i'm pleased with our progress and proud of how intel and industry partners addressed this issue corroboratively with transparency and with customer first urgency. we're delivering against our security first pledge and we've now rolled out microcode based mitigation for all intel products launched over the last nine years that require protection against inspector and meltdown. >> memory is another focus of the company. that business broke the $1 billion mark for the first time putting in line with analysts expectations. back to you. >> thank you. karen, when we had -- we're talking about what could replace facebook in faang, you had mentioned intel. >> sort of. it's a weird one, yeah. it's a little different kind of -- >> fing? >> i thought it was going to be gain. >> i do like intel. i think we've all liked intel. one of the very few things we agree on. and, they're guidance was raised.

this is a business that's just hitting on maybe not every single cylinder but the big cylinders very hard. >> it was 30% of revenues in 2017 full year. they said it was 50% in the quarter. it's about 45% margin on it it's a high margin business right now. if this keeps up, analysts will be changing their models dramatically. i think there's much left to do here. >> earnings season is under way as you know. you may be wondering just how much your favorite stock is set to move. for that we turn to the options market. that's when we talk about -- dan, break it down for you at the plasma. >> it's an interesting topic. we talk about this all the time and we talk about the applied move in the option market. one of the reasons i really focus on that is just because let's see how investors are investing into this. how do you think think this one day event will be. how do you figure that out since weekly options have been listed over the last few years at almost every large cap stock

there's a really easy way to do it. i'll use intel as an example. first and foremost you want to look at the money. the call and the put at the 53 strike. you put that premium together that is the weekly at the money straddle and intel and you divide by the stock or the strike price depending upon which is closer at this moment. let's just look at this. yesterday on this very show i said the implied move in the options market was about 5% and that was the case today. like i said, it closed at 53. the money weekly call was offered as a 1.35. it was offered 1.35. that's $2.70. that's the implied movement between now and tomorrow's close and you divide that by 53 and you get 5%. so if you buy it, you buy the implied move, you need that movement one way or another

today. 2.70 plus the strike is 55.70. you'll need above that tomorrow to make money or 50.30 if it go ler final trades up next. you know what they say about the early bird...

he gets the best deal on the perfect hotel by using tripadvisor! that's because tripadvisor lets you start your trip on the right foot... by comparing prices from over 200 booking sites to find the right hotel for you at the lowest price. saving you up to 30%! you'll be bathing in savings! tripadvisor. check the latest reviews and lowest prices. hey ron! they're finally taking down that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard.

what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management. final, trade, tim? >> intel. i liked it. i wouldn't sell it here which is

similar to buying it. >> dan >> microsoft. it goes to 100. >> guy. >> two week high in macy's today, mel. >> i'm melissa lee. thank you so much for watching. "mad money" with jim cramer starts right now. my mission is simple -- to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere. 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 isn't just to entertain but to teach you call me at 1-800-743-cnbc. or tweet me @jimcramer you know how it matters in this market, a day when the s