check on tesla because that will be the story of the hour with the conference call, mike, what's going to be the key here? >> they can get any confidence in these production targets and also explaining the cash burn and the whole deposit situation with a lot of these customers. >> and can he keep his cool? >> i hope there are at least a couple. >> the tone -- >> he's gone after analyst, short sellers and the media. >> there we go we'll see. the highlights will be on "fast money" which starts now. "fast money" starts right now live from the nasdaq marketsite overlooking times square i'm in for melissa lee, pete najarian, karen finerman, not a fireman. >> i've been called worse. that's okay. >> it's been a while since i've been in the seat. >> and guy adami the stock racing toward a trillion dollar market cap and the first u.s. company to reach the landmark and you won't believe how high and some analysts think it could go plus, it's a wynn fall get it

maybe not. the casino crushed continuing after hours. wynn down nearly double digit sdmas earnings call under way and we'll bring you the very latest, but we start with tesla. one of the most controversial stocks in the market charging higher after reporting earnings moments ago posting a larger than expected loss we've got full team coverage throughout the hour. gene munster is getting ready to jump on the earnings call that starts in about 30 minutes our phil lebeau is in chicago standing by with instant analysis and remember, it is the call that everyone will be watching phil, kick it off with you as we await word from mr. musk himself. >> scott, this is a relief rally. that's what we're seeing right now because if you look at the numbers for the quarter we've said it all along, the earnings per share is really not what people are focused on. yeah, it was a loss of 30 of and the expectation was a loss of 292 per share and that's not what's moving the stock. what's moving the stock is the cash position ended the quarter better than many people

expected $2.2 billion of cash on hand the cash flow $739 million that's better than estimated we could see them going through 1.1, 1.2 billion in the quarter and they're still projected to be profitable in the third quarter and the fourth quarter and when it comes to model 3 production in term was where they were in july, could they sustain at 5,000 per week? the company said they did hit a rate of 5,000 per week at times during the month of july that doesn't mean it was all month. it means that they were able to not only achieve it at the end of june, but at times during the month of july and they are still projecting a production rate of 6,000 model 3s per week by the end of august, and finally, one other piece of news that perhaps is giving investors a little bit of relief. they're going to be trimming their capital expenditures for next year. it was expected to be $3.4 billion they're now saying we don't think we noeed to build as many

assembly lines and therefore they'll bring back the capital expenditure expectations by $2.5 billion and again, scott, that call starts in 25, 30 minutes. >> which is why, phil, we will check back in with you later on. despite a largerr-than-expected loss, the stock is higher. is this the beginning of a tesla turnaround and do you just keep betting on elon musk >> first of all, welcome aboard. >> thank you >> nice to have you, although despite your butchering of karen's surname. >> i know. it's terrible. >> it's been a long day for you. >> i apologize >> i think tesla's trading 3.20 or so, and i think tesla now the negative headlines will start to dominate and thery is a good chance we see 280. steve said i hope not. i'll stay long and it traded at 288 or 289 on monday in essence, you can actually be both right what's the point cash burn wasn't as bad. in the cash position is probably better than people thought what does it mean?

it means shorts like mr. musk said will get squeezed if this can close above 325 over the next couple of sessions it's probably poised to take out the all-time high. >> you were long into the print. >> i got long around the 280 level originally when it faded back in may. so that was for me when i was trying to bottom tick the stock. i bottom ticked it quite effectively. i traded at that time 370 and that's why it bailed out of the name so the momentum to guy's point everyone is negative you go to a kid's party now and everyone's telling you, that's a hell of a short. that to me, everyone is on the wrong side of the boat i'm going to stay long because i do think you'll see another pop. >> miss finerman >> yes, sir? >> yes i feel leak we only have half here, right? we haven't heard him -- we haven't heard him speak. we know how eventful that could be >> that's right.

does he question the questioners like he did last time? >> yeah, that was on. >> does he talk about the shorts like he likes to do and troll david einhorn last night. >> i saw that. sending him a pair of shorts or -- short shorts so we only have half the information that we need i don't get it i don't get the valuation. i mean, i think the product is fantastic, but i don't get the valuation. i wouldn't have known it here, but i sure as hell wouldn't short it i know at the kid's birthday parties and i'm glad you added that you have kids and that's why you went that's important. >> i know you own the stock an it's a momentum play, and do you get the valuation? >> no. i don't think about it and nor do i think about the valuation of amazon. i thought people that were focused on the valuation were missing the idea that they're only going to get exponential growth in that name. at what point does valuation have to matter

>> you can't say never >> they said never with amazon. >> that is true. that is true. >> i do think amazon is a totally different story. he wants to be a car company i don't want to slap on a car valuation on to a tesla. so i have a problem with this. this for me is about when does he get the little momo back? he's trying to be something that i don't want him to be i want him to be the growth guy. i want him to be the momo guy. i don't want him when you see what he's going to be profitable and you see the headline come across and there was a time when he used to say i can be profitable and never even say the quarter. no one cared he's definitely running out of time on this and -- >> you think he has to start to live up to the projections >> everyone is holding him accountable for the first time in the last, let's call it a year >> the three factors coming into this is are they going to miss and they probably are. >> it doesn't really matter because everyone is forward looking still.

they're giving him the opportunity to be the elon musk he's been. the other is cashburn. >> capex, they're going to cut back a little bit and they think they'll be more efficient and they cut back 9% so there's a lot going on in terms of what was several months ago and the cash burn problem that they have and how much they have phil talked about $2.2 million and there are a lot of different factors right now, scott, that make it a very interesting trade and will the shorts get squeezed this time? production is one of those, but the last thing, really is about elon musk and how he handles this earnings call will he be prickly, angry and attacking or will he be more of a ceo of a company that is trading like a tech company that's masquerading potentially as an auto company that's what we're waiting for. >> that's become now the most important thing beyond the numbers is how musk acts publicly do you care about that >> i don't think he's going to slip up the way he slipped up on

that call. >> did he slip up though >> well, you know -- >> sometimes that works a little bit, right >> it depends. on the call it was fine. the other comments that he made in an unrelated incident, that's not fine, but on the call i kind of want my ceo to stand up to a -- to an analyst and tell him get back in your place i've got this covered. >> what? are you serious? you have public securities out there and they ask you a question and you think that's an appropriate response >> think it's an appropriate response if the analyst just keeps whining about the same things and he's been wrong for year after year, and month after month. i think it's warrened and i think we expect ceos to sit in this little box. i want him to bite every once in a while. >> are you serious >> this is elon musk. >> i understand if he -- if he's too busy >> that was tony sacconaghi. >> i like tony >> if he want stross to have a n

the call, that's fine, but for him to be on the call and dismiss, meaningful, important questions, i don't know why -- why -- he needs to be accountable. >> if you go back 15 or 20 years, but i'll tell you why the guy in the world oftentimes confronted by folks. it was different how he did it and how he handled himself in the past, but there were times when he'd be pretty angry, as well and so it's a different time now and elon musk is far more aggressive. i'm not saying that he should be doing this combative sort of thing with the analysts like he has, but -- >> karen said he should be held accountable. his stock got clobbered and he -- >> i mean for not addressing questions. >> he himself doesn't want to have the cfo on. >> sell the stock. >> all right okay we can discuss later >> for more on tesla, let's bring in gene munster who recently wrote a critical note of musk. it was an open letter and why

don't you weigh in on the debate that we just had on the desk it seems beyond the fundamentals of tesla, beyond the numbers it is more these days about musk himself. >> it is, and as it should be. i think investors are kind of shivering to see which musk shows up odds are that he'll pull it together, but the way i weigh in on this is what happened on the conference call was unacceptable pete, i love you, but i think it crossed the line and it progressed from that point part that gets missed in the whole question about elon musk and how he behaves is this company's very different than a typical company. elon musk uses a referral network. his personality could drive sales. you don't see commercials for tesla, for example separately is he has to win over investors in order to keep funding the story. i think there is an important sub point to tonight's results when they talk about financing that debt for the chinese, for the shanghai factory

that is a sign that he still has confidence and this is a very important topic and we will be acutely listening to his behavior on the call tonight >> i have a question for you on that you say he has to win over investors. he's won over the true investors. he's just a guy who is not really willing to go in front of the analysts and he's willing to actually combat with them when they do, when they come back and forth with him i'm not saying that what he did was absolutely right i don't believe that, but it seems to me like he is a guy who is talking to the folks that want to buy their stock and want to own that stock and those guys have done very, very well. because when you look at the metrics over last multiple years the metrics haven't changed a whole heck of a lot and they've gotten worse and these guys have continued to be wrong. many of them that haven't analyzed the stock the way that a lot of us have you particularly, because you talk about this, a tech stock first that builds into the hardware side of it being the cars, right? >> we're definitely believers in

the story. it's a wonderful mission with renewable energy it's not about making a great car. that gets lost in some of the noise and my final thought on his behavior last quarter and it was bizarre, and i think that he could have done it in a more measured way >> all right gene, we'll be back with you shortly. stay near the phone. i'll give you the last word. from a former analyst himself and a notable one, at that >> i think at this point we've reached peak pessimism in tesla. can you imagine it being more negative than it is right now? >> even guys after that analyst call were on the fence about it and came out against it and you saw the stock price suffer, so i think people have gotten long on the tooth in the negativity and we're starting to see a better elon musk and i think we will see a better one on the call tonight and the stock can ratchet considerably higher from here. casino stacks crapping out

and shares of wynn reporting earnings moments ago not a pretty picture there it is. more details coming up bitcoin falling off the wag be on this week down 10% what wall street's king of crypto is here, and he says the sell-off could be a good sign for the on currency >> later, the international man of mystery, there he is. michael calanovic, and he'll tell you why it's time to make a big change to your portfolio live from times square in new errk city. the's much more "fast money" after the break. we all want to know about the new thing.

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welcome back to "fast money," wynn getting crushed on earnings off session rows this after caesar's took the whole group down today contessa brewer following the story all day long >> so wynn gets the majority of its revenue from macao and their vip business when macao got hammered the ceo blames the world cup which attracted gamblers away from the casino and he pointed fingers at his competitors who re-entered the vip business though he did not mention them by name. las vegas sands said they outperformed in macao in q2. wynn's commitment to luxury and experiences are paying off in q3 he says in july their monthly sequential growth is up 20% significantly outperforming the market, that their ebitda here

is up 4.3 million per day and he reinforced his commitment to japan and he's very excited about going in there and talk about construction about the casino in massachusetts and he mirrored what we heard from caesar's ceo today about the big market drop there that there is going to be some softness in quarter 3 in las vegas because there is a lack of scheduled, vents and last year this time they had a big fight, the mayweather fight and that was a tough call for them. anyway, maddox says his view on quarter three is mrirorring what we heard from caesar's >> yeah, and that's why we're seeing the stock much around though it is well off the lows contessa brewer back at headquarters. >> the thing i find funny is the world cup p it's been scheduled for quite some time. it's odd to me that it was a surprise in the quarter. >> softness in july, august, and maybe things improve in the summer and you own wynn. >> i own wynn and i'm glad to see. earlier it was down 10% or

thereabouts. when they first came out and now it's only down 2% or something like that, but i think if you do look going forward, there is las vegas sands is right there and the vip started to turn around in july is what contessa was saying and that's why we're seeing the stock start to come back i see this stock very easily in the 170s in the not too distant future. >> the stock's down 15% today. wynn, we sort of had a cold, remember, we talked about it after the steve wynn episode happened and we said the 165, 170 level is a gift that will trade it back to 200 that's the good news the bad news is it failed at 200 which is where it topped out earlier this year in january if you think this is a one-off quarter and macao will re-accelerate. 150 was the low in the beginning of the month and it holds right there. >> you to to ask yourself, what's more important than ma

qaa owe. >> if you go with las vegas, both of them have had head wins reit now it's got to be macao, you're sticking to the wen that says wynn or las vegas sands is down year to date and looking for a laggard to karch up is going blue in the face. >>y asked you. >> that's a question that you can ask. >> no show would be complete without bitcoin. don't worry. wall street's queen of crypto will be here to explain yet sell-off could be a good thing and in the meantime, here's what else is coming up on fast. >> and remember, my friends, future, ven future events such as these will affect you in the future. >> and the man who some say can predict the future says it's time to make a major change to your portfolio j.p. morgan's top strategist marco calanovic will be here to

explain what that is plus, with the tesla earnings call moment away, wall street wonders will musk have another meltdown >> next. next boring, bonehead questions are not cool ne >> we are live on the call when "fast money" returns great... when i can keep up! - anncr: thankfully, prevagen helps your brain and 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 to "fast money," shares of apple jumping 6% as the company races to the market cap. how high does wall street think it will go our josh lipton is live with those details. josh >> scott, investors celebrate apple's results today. so, too, did a lot of analysts a clean beat on the path to 1 trillion morgan stanley's katie huberty says she cease more upside down downside risk and hits news for 90 days and the path to trillion intact and amir chimed in and others a bit more cautious here with positives and negatives,

largely balanced at current levels we view it as fair bernstein's tony sag nacconaghis on your show earlier today giving his take on the quarter take a listen. >> many people, ourselves included, were worried about the traction that the iphone x might have with consumers at that price are price point and apple is proving us wrong. >> still, sacconaghi remains market perform on the name worried that the increase in average selling prices are leakly not sustainable, longer term, he says and skeptics in short supply at least today apple charging higher here, getting ever closer to the $1 trillion milestone most analysts covering apple continue to believe you should own it 61% have a buy rating on the stock. back to you. >> josh lipton, thank you so much >> you guys agree. >> pete najarian 207.04 is the new level we need

to get to. 207.04 for a trillion dollars. >> morgan stanley, raised her price target to 232. that gives you an idea of how bullish she is after this call and she very directly and i read her note directly. >> i'm sure you did. >> i'm sure i did, too she has not waivered and y have 31% in one and 37% in the other and those numbers are real any other company these would be the entire -- 30 billion. >> i'm sorry > >> services is 30 bill onion. >> these numbers scott give you the idea that these increase >> yes >> it was 10 billion in the quarter for the services. >> 10 billion annual. >> revenue was 30 billion and everyone was worried about is this number going to do anything more than an incremental move in the stock? it's been an iphone company and

it's been a hard wear company, but if you look at it, if they can move the needle on all these other things, they are moving the needle. >> but this is something that should have never been pulled in to that value with the fang stocks when they were getting slammed off of netflix and this was getting slammed, as well and it's not a fang stock and on the pr peripheral of a fangle ement >> that w when the rest of the quote, unquote, fang overvalued names were getting slammed apple was never an overvalued name. >> despite thing about move in apple our next guest says it is time to get out of growth and into value let's bring in the man some say can move markets and derivatives and quantitative strategy, marco calanovic, welcome back. >> thank you >> if i had a quarter for every time someone said values it, i'd be a rich person right now >> that's true we're not saying get out of the

growth and go into value we are saying value could rally here and we are also focused on some specific market session ams and femerging markets we think positioning is very light and we think there is quite a bit of a short positioning on the option. if you could have a bit of a move up, you could have a rally in emerging markets. we do like value sectors who are also related to sort of either a trade or potentially weaker dollar or some of the sort of sectors which just look cheap. >> what do you mean? like which ones? industrials? >> industrials would fall in the value category and they're not as cheap. >> energy? >> energy, very much driven by all. so we would, for instance point to semis and you know, even sort of tech segments and emerging markets. financial, some of the financials like european banks or regional u.s. banks so you'll find the value in every sector, you know

so we like value rotation started happening last week. we think it's going move, you know that said, we are overweight tech as a sector so don't get me wrong. we are not negative on the tech. >> let me ask you something. when you talk about value, how do you define value? is it cheap to itself? cheap to the market? >> what's your criteria? >> we look at within sector and we normalize the sector and price per earnings and price per sales and price per book and we look at the different industries and generally, generally, we were a bit concerned with the sort of stocks that rallied too much momentum and hypergrowth stocks and some of the valuations are pretty high and arguably in the last week, many of them came down so maybe we're less concerned, but we do still think that value can have legs value usually rally when there is a risk on trade and there is strong growth. we do like the gdp and we do think trade will get resolved sooner than later and we also think the dollar is a bit strong here and those could also be

catalysts to propel the value. >> would you be overweight emerging markets relative to the united states? >> so in our allocation, we are overweight both u.s. and emerging market. we are cautious in europe and japan so we do like u.s. i would say we do like better emerging market. >> because of the hit that they've taken? >> emerging market took a big hit. they're down almost double digit this year. since 2007 emerging market are down so they never recovered from the crisis. so if you could have a good growth and if you could resolve the trade nonsense, i think they would rally pretty fast. >> thanks for being here, as always >> j.p. morgan's marco calanovic. >> is he more james bond in your opinion? >> i know my answer. >> he's definitely more bond villain. >> what do you think value or growth here glad you asked, scott. >> what he didn't mention, marco. i think there's real value in

health care. pete's pointing at me because i think he agrees with me. you look at what's happening with pfizer over the last week, week and a half since president trump put the bull's-eye on his back since it's castigated i think it comes in the form of health care >> so i think apple is both, right? we talked about that netflix is definitely growth and i think you have to have a fair share of growth and the damage has been done to the growth side of the equation. i do think you see some money coming back in there because i think when people start to look at value, karen said how do you judge value, and i think people are perplexed with that saying am i going to get any type of appreciation in stock price, in capital return or anything what is value and what's growth? they'll come back to the name that has run the bull market for the last two years >> i was literally thinking. >> you were going to say castigated >> no. that's a big word.

>> i never worked on the farm, but when i looked at health care thank you. the health care side of it, though, you do have a lot of names out there, whether it's pfizer or merck and even biotech. >> health care has been doing incredibly well. >> right incredibly well and we're seeing a rotation come back toward them along with the financials and i know we don't see the growth that we want to see and financials are putting up, and the lone growth, when that hits and with the 3% on the yield right now, giddy up. >> tesla is higher after hours and the conference call moment away gene munster ismanning the red phone. he will bring us the very latest from the always colorful elon musk plus, square volatile after an earnings beat. jack dorsey on the call as we speak. we'll bring you the telast there, as well more "fast" after the break.

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>> welcome back to "fast money," square falling after hours following the report aditi roy with the highlights from the call and the latest analyst reactions. ash d aditi. >> the company's q3 guidance came in short of expectations and wall street analysts are weighing in on those numbers and pa ma mark palmer said while the q2 results were solid, the adjusted eps any adjusted ep ebitda guidance was light versus consensus expectations as was its full-iary 2018 adjusted eps

and adjusted ebitda guidance it appears that square was unable to surmount what had been a very high bar. however, other analysts were more bullish josh beck from key bank says while some may nitpick given the company only maintained its 2018 ebitda guidance of 240 million to 250 million despite a q2 '18 beat, we believe the momentum broad based momentum suggests it is growing into a small business management platform complimented by a growing presence in consumer financial services. on the call cfo, sarah friar said the company is doubling down on investment in the business while staying mindful of fiscal discipline the company is focusing on three main areas of investment and omni channel and also financial services and international growth as far as other growth areas, the company's cashout customers

spent their 250 million can cash card tripling since 2017 and the peer-to-peer cash app is faster than paypal's venmo, according to a nomura report and caviar, the online restaurant app saw q2 revenues double year over year >> aditi, thank you very much. karen, your sister works at square. >> yes my sister works at square. it was an outstanding quarter. there was a lot to like about it the revenue acceleration was very good and the services platform we haven't even begun to see it yet and the restaurant services all of the way through from there and all of the way through to caviar to deliver the food. i think people are a little disappointed in ebitda and they said they've been consistent saying we're going to spend to grow, and they keep saying that. i think these numbers were great. the only problem is the bar was very high going into this earnings report. >> okay. >> payment stocks are a big part of the bitcoin bull thesis and

this week, the cryptocurrency could be, dare we say in bitcoin purgatory. bitcoin fell below 8,000 after braking through the key level after the sec rejected what would have been the first bitcoin etf. investors are wondering if bitcoin is doomed to be stuck in the of,06,000 to 7,000 in may. it's not actually bad for the bitcoin currency the head of digital asset at sufk lana and we call him wall street's crypto king welcome back >> thank you >> why is it not such bad news that this etf was squashed >> so there was a couple of things and i was on about three weeks ago and there were three things we talked about with b.k. and a rot of tlot of what we sp, and every time we got to 6800 it petered out and rolled over. dan brought up the point that he didn't care about any rally because it was a wear market

rally. we continue to have lower highs and lower lows and we needed to break out of that. you look forward to the announcement of a new bitcoin etf coming out and you look toward this past month and there's a lot of enthusiasm around it and you get to 6800 right to 7200 and it gathers there and goes all of the way up to 8400. the winklevoss etf is denied and it grinds back down to 7500 here where are we today >> dan's point still remain, right? we need to see higher highs and lower -- or higher lows and the hold of 7500 bounced higher and i think it probably is very bullish and the technicians i talked to are concerned about 6800 and that's the level where if it breaks through it would be negative as far as the bitcoin etf denial, they're for commissioners and one was for a dissenter. this is -- everything was put out there that needed to be put out there and the etf needed to

be approved and there was liquid and the manipulation of the market and you had to address those concerns to move forward it held to 6500 where it is today and it probably rallies higher from here if there's more good news on the horizon >> are they hoping for more regulation or more adoption? how do i get -- because when i talk to guys and i speak to global funds every day i want to know how people can get a little more liquidity in these names to get in and out quicker and how they can have the right to trade it on their desk i don't even know what i'm hoping for if i'm a bull right now. >> so a lot of things we talked about. if more banks were clear in the futures which trade $400 million a day and another $250 million a day and the changes that underlie them and there's $650 million a day in u.s. liquidity there. what would be a big, brand-name pension endowment foundation and insurance company came out and said in a filing over the course of the last three month, i took a 1% allocation of my equity

risk bucket because bitcoin has a zero correlation of stocks and by going 1% bitcoin and 99% equities my risk profile is lower. square is half as volatile as bitcoin, right so if i own $100 of square and $50 of bitcoin, i've basically got the same risk on it. as soon as institutions start to think about bitcoin like that and not as this scary thing that needs to be regulated it's about smart regulation it's not about more. i don't think we want more regulation i just think we want more regulation and regulatory clarity. >> a quick question about bitcoin because what someone pointed out was a lack of volume and as it was plummeting, volume completely dried up. has the volume returned to give you the confidence that maybe it has sort of found the 6800 bottom and maybe it will start rising again in has the volume returned >> as b.k. always points out, the majority of the volume happens outside the u.s. and the u.s. volume is what i care about

because that's what will get the etf and u.s. institutions into bitcoin. that has been pretty consistently at $400 million a day and it had dipped down to 200 and it's right back up to $400 million a day and the futures combined six of the last seven days and over $400 million a day. so $400 million a day is not nothing. it's enough that calpers or a state pension could put a little bit of money in there and i think that would be the sign, that you know what i've got to get in now because every institution is looking on the dance floor and no one is dancing and nobody wants to be the first person out there >> has nobody done that? >> they're circling a long time and no one has taken a 1% position >> i think someone who has -- i have not seen a filing where someone said a big brand name that has a 1% filing in the futures and in the absence of the qualified custodian they can't hold the spot, and i think there will be a catalyst, if the irs had a diminimus transaction

under $400,000 that would be a big thing because then people might want to buy their mcdonald's with a bitcoin. right now if i buy mcdonald's with a bitcoin i have to figure out the gains and report that to the government things like that that will take a long time to work out. everyone wants it fast and now it's the society we live in, but this is a long game, and i think a lot of things are happening out there where people see the opportunity and we will continue to see institutional adoption and the plumbing get built so that can happen. >> thank you very much >> thanks. >> all right for more -- for more on bitcoin, head to futuresnow.cnbc.com to see what our own brian kelly had to say about the cryptocurrency's drop. >> coming up, press scripps getting reports that activist carl icahn will try to stop the planned merger with health insurer cigna. we'll have the very latest tesla up 7% after hours at the

highs. elon musk speaking on the earnings call right now. 'lte's he going to say wel ll you when we come back on "fast."

welcome back to "fast money," shares of express scripts volatile in the after-hours session after reporting earnings this after carl icahn is taking aim at the company's merger with cigna. we'll get to our meg terrell with the latest.

>> express scripts did report the second-quarter earnings and they look like a non-event when you look at the bombshell dropped by carl icahn. he's reportedly had express scripts $54 billion this being reported by the wall street journal. the journal reporting he may seek to influence other investors and encouraging them to also vote against the deal. reportedly the issue with it is the price was too high it was worth $96 per express script shares. you can also see that express scripts has not traded up to that amount. it's $74 a share right now and about a 20% delta from when the deal was announced in addition to the price issue that icahn reportedly has with the deal, there are a couple of other things that have emerged as pressures to express scripts'

industry one of the analysts is the drug pricing blueprint and the focus in it on the pharmacy benefit manager's industry and the rebate structure in pricing and that causing a lot of pressure in that space. the other one is amazon's acquisition of pill pack getting into the space and causing more pressure on the industry and those emerging and building since march. shareholders are scheduled to vote on this deal, august 21st and a lot to keep watching for back to you. >> looking forward to this developing story with icahn now attempting to block the deal, what does it mean for shareholders of express scripts? guy? >> express scripts can't be happy. i never thought express scripts was all that interesting anyway. i think mr. icahn is on to something. i think the real play is i've been wrong for a while and cigna is too cheap on valuation. the stock got crushed earlier this year and if you got etna close to 18 times and you have to love cigna.

in terms of a value play, i think it's cigna all the way >> okay. >> that's it you don't want to ask, pete, karen or steve >> i was wait for example someone to offer something up and there were crickets. >> crickets. >> molina, humana and a giant in the space and u.s. cigna probably would trade up. >> right reports icahn could shake up the cigna express merger sent the options market into a frenzy mike ko out in san francisco with more. >> we did see four times the average daily put volume in express scripts. some of it was interesting because we did see a buy of over 4,000 of the weekly 79 puts and that was before this news came out. those are obviously profitable already and we saw about a thousand august 70 puts which, obviously s an indication that the stock is going to be going lower after this news. >> yeah. mike, sorry. i didn't realize my microphone

was open and i didn't mean to distract you there >> no. that's quite all right >> mike ko, outside in san francisco. live television. that's what happens. >> check out the show at 5:30 p.m. eastern time. >> thank goodness i didn't say anything worse. >> still ahead, tesla up in the after hours and elon musk just apologized on the conference call we'll tell you what for and get instant reaction from tech guru gene munster (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level.

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♪ ♪ >> that's good

the digital divide is splitting this country. we have parents who are trying to get their kids off of too much social media and computers,

and then we have parents who would only hope their children have access. middle school is a really key transition point, right. the stakes start changing. students begin to really start thinking about their futures. what i like about verizon's approach is that it's not limited to just giving kids new tools, it's really about empowering educators to teach in different ways, and exposing kids to more active forms of learning. giving technology is not a total solution. teaching technology, now that is. welcome back to "fast money," tesla after hours highs right now. the conference call is under way. let's get back to phil lebeau in chicago for the details. phil, what is mr. musk saying on

this call that has the stock rising >> well, it's a couple of things and we'll play the sound bite from him about profitability and that's yet stock is moving higher, but we should make two big notes because this has a lot of attention first of all, the tone for elon musk is much more conciliatory and not combative and prickly as he sometimes can be and he's apologized to tony sacconaghi who asked the question last quarter and he was told that's a bonehead question and that's the notes in terms of the tenor of the phone call why is the stock moving higher here's elon musk talking about where the company is now in terms of profitability possibilities starting next quarter. >> our goal is to be profitable and cash flow positive for every quarter going forward. [ indiscernible >> in terms of supply chain that's not always possible, but

we're confident that provided the economy's roughly where it is today or reasonably good and is not a big push, i feel comfortable achieving a gap income positive and cash flow positive quarter every quarter from here on out >> scott, you combine those comments along with better-than-expected results in terms of liquidity and cash burn from the second quarter and that's why you have the stock moving substantially higher after hours. back to you. >> phil lebeau for us in chicago. let's get back to gene munster also listening on the phone at the plasma give me your reaction. you're the guy who wrote the open letter telling him to get back on the program or whatever, but does this take things in the right direction? an apology to tony >> i was very surprised, scott, and i think it does kind of show a new tone

people don't change overnight. i want to caution investors that i'm sure there will besomethin in the next few months that might not sit right, but this is a major step forward from a very proud person to have that kind of commentary and that's kind of the shine on this quarter here as far as the substance, his reiteration that they will be profitable in the perpetuity now, i think is comforting because that's the whole negative story here is that they'll run out of cash and that's comforting and one thing thing to think about here is when we look at the number of pre-orders and i'm not taking reservations out anymore they're taking orders rather than reservations and they don't even have model 3s in all of the stores for people to test drive. as they get out into the wild i suspect you will see an acceleration of growth rate from the model 3 in the next couple of years very encouraging developments here on the tesla story. >> gene, what was the most interesting thing on the call? i'm actually looking at the

quote from musk to tony sacconaghi no excuse for bad manners is what musk said to tony sacconaghi >> it's the subtle point, and it's funny that we're talking about this kind of stuff, but that is the most significant part, at least in my mind because elon musk is such an essential part of the story and to have some increased confidence that he's on track i think, should reassure investors that this wonderful mission that they're on can be accomplished >> what -- give me a final grade then if you take everything into consideration. the numbers, musk himself and you put teacher munster puts what grade on this >> this is a b-plus, and i think the financials still aren't where they need to be. they still have some work to go there, but i think his commentary and his tenure on the call and what they're saying about continued profitability going forward makes this a very respectable quarter and gives the company a clear path to

continuing to move the stock higher >> gene, good stuff. gene munster thank you for joining us there >> did he apologize to tony although you had no problem with his behavior >> the stock price sold off and i had a problem with it being long you want a ceo that defends the stock. he didn't defend it the proper way, but i do applaud him for not being bashful when people come at him. he comes right back at them. yes, he did not say it properly, but i do appreciate that he is combative to analysts in his name having said that, the stock's trading at $325, up 8% it's infamous for getting back those profits the following day during trading we have to watch this name and it runs into resistance at 329 and 340. so there are some hurdles here that we have to do to get back at that 373 really high price in the clouds that we saw moments

ago. >> we knew they'd probably miss, right? there were a lot of things that we basically kind of knew going into this quarter, but addressing the financials, that, i think, was the most important thing and we look at the cash position and the efficiency on cutting back on some of the capex. that's something so they're giving up a little something, scott, becoming more efficient which is something we had to do and i like what steve's saying, does it pull back a little bit or can it get to 329 >> karen the apology. the idea of having this visionary ceo who is also sort of more reliable and calm and not so e moeshlgs i think is important particularly if you need to come back to the mark. >> yeah. let's do final trades and go around the horn. pete, you're up first. >> paypal was a couple of weeks ago and i really like paypal it sold off. it's a great opportunity after selling off at these levels. >> karen >> long horn, should be interesting. >> square, it's about services

and i've been long this name since before i was a teenager. i'm staying long. >> are you back with us tomorrow >> say it, pete. >> giddy up! >> you know what else is giddy upping >> celgene >> darn right it health care biotech, baby. >> all right that's it for us "mad money" starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there is 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 you, but to educate and teach you. so call me at 1-800-743-cnbc, or tweet me @jimcramer. a day like today, a day where the dow dropped 81 points, the s&p lost