two big sectors health care tech. >> tech np nasdaq up 1%. a lot of other stuff soft. the market looks comfortable as i say and stable in this reconcile zone for now almost halfway through september zboo that does it for the "closing bell. >> see youtomorrow "fast money" starts right now. "fast money" starts right now. live from the nasdaq market overlooking new york city's time square i'm melissa lee. the traders pete narjy team teerm o seymour it's a sale of two chip stocks amd getting crushed while micron soared that's not been the case this year. a top technician tells us the chip of choice plus bitcoin shows signs of life as the crypt of universe based soaring. the dow up 150 points. but fischer sitting out the rally all by itself. shares of the stock are down 26% from its all time high

the stock lost a whopping $46 billion in market cap this year. we knee all the problems the companies faces as the users flee the platform. washington regulations are rooming and the social giant tries to fight election interference one of the most widely held growth stocks on the planet. chances are you own it in the retirement fund. are facebook's best days behind it pete. >> i don't think they are behind it but when you look at facebook right now and temper was on there talking about this stock because it's a large position for him. it looks too cheap given the growth rate. trades at this times right now 17, 18 fiemts forward. a lot of reasons to look at it and say opportunity. the problem is they are telling them what the earnings call how much they would have to is spend. and i think that's a number that still is unknown because of that unknown i think that's why the stock is lange wishing. and it might happen that it will sit somewhere in a range for probably the next couple of quarters until people get more comfortable with how much money

are they going to have to spend for security how much money are they going to have to spend to make sure people feel like they can trust ffb again. >> you think the revenue growth will be there. >> i do. >> we haven't seen the end of that karen. >> i do also i talked last week about we're in a vacuum of news for facebook except negative news this part of- the testimony on the hill that kind of thing. that hasn't been good for them but i mean, still this is an extraordinary business and a very attractive price. i think we see growth. october 24th is the next hard event which is the earnings we'll see. we'll see to pete's point about spending how that's -- also remember instagram look at snap. where is that going? that's going to instagram. so i -- i hate seeing the stock down but i'm absolutely staying with it here. >> you say there is no positive until earnings but how about you had an earnings number six weeks ago. that was supposed to be a catalyst earnings are not a catalyst. i agree with pete but disagree

with also just -- what happened on that call was not that they said it's going to cost more to secure the companies they said we don't even know how to manage that whole process our most important asset is data and the bottom line is this is a company -- look, we fade for a company -- we talk about multiple it's cheap. we paid for a company the most important is the multiple. it's what multiple you think it's worth it's not necessarily what the earnings are it's a multiple of earnings facebook trades at16 times 2019 you know why because no one has trusted this management team to be able to secure this their most important asset which is data. i've been talking about this five months. and i wrote an op-ed on cnbc the bfl. >> didn't read it. >> i don't think the management team deserves any credit you should have because you would have actually been ahead of this trade. this stock is not only down since from that earnings number but it's down 10% since earnings which means people are starting to realize that companies who are data as the most important asset betterable able to check that. >> before you get in here and

slam tim, according to pew research they did a survey of adults use facebook. 54% have adjusted privacy settings 42% have taking a break from checking it several weeks or more and 74% did a combination. >> hold on you miss the most important one of the pew study. >> which is what. >> which i was going to do before you got in front of me. 25% of the respondents between like 18 and whatever deleted the app. okay here is the thing it's got the snowball effect numbers are getting derisked because analysts taken the estimates down dramatically. earnings growth next year supposed to be lowest ever 16%. sales growth around 20% or something. that sounds actually pretty good and the multiple trading at like 19 times or something sounds good except for the fact when you think about what is the snowball effect of lose attention uetzers in a important demographic? and here the other thing in america the average revenue peruser is about four times that around the world this is a u.s. issue right now

so if they start losing. >> this is. >> hold on if they start losing -- hold on if they start losing users where it's more profitable for them peruser in the u.s., advertisers start spending less here in the u.s., that's when you start to get a meaningful deacceleration in all the numbers and then you see less advertisers coming to the platform. >> there is an existential threat about whether people want to be the centralized platform i think there is a governance risk the bottom line i don't think the management team is transparent. i don't think they can be. and in a world where we have had the digital transition data is the most important asset in the world right now. it's the core asset. >> you guys are talking about two differential things but yet on the same side of the fence in terms of pressure on the stock whether b from governance or. >> i want to disagree with tim on something it's interesting we're at 161. 11 bucks higher than in march and the lows when we didn't have all the information, the company

hadn't guided down yet we are going back there. the lower we go the, the worse the centsment gets i'm in the damp where i see the massives as a tune they sent sheryl sandberg to the hill and mark zuckerberg. injury the lower stock goes. >> they want to be in front of you about they are not transparent to your point. i 100% agree i would also say when you guys talk about facebook everybody talks about facebook i actually focus more and more on instagram and other verticals where they have the growth i mean, that growth is actually continuing to grow facebook -- you figured it is stalling at some point it's stalled maybe losing lab. >> what was the trade on then? what is the multiple based on? is it based primarily on instagram and the growth there or the facebook core platform. >> it's a combination. and i'll give you great example. my example would be microsoft. what is microsoft? well, microsoft now everybody says cloud that actually was coming long

before when nadala took over it was about how do we grow outside of the core asset petition we do it through the cloud that's what he you see with the facebook and the investments facebook has made to get to the next level, not just relying on facebook itself. >> let me add one other thing to sort of -- i don't know if it's fight with dan or agree with dan. my inclination is fight but i might agree. you know who took numbers down facebook they took the numbers down they took the margins down in a very big way, right. so i think that the risk reward is very key. >> we're in the same camp. the they got it down and analysts brought the estimates down that's why we have seen a multiple like we have never seen in the stock before. >> what are investors -- what multiple are they willing to pay for a company that i think, again, their most important asset is data. this is the thing that's going on right now and it's google, amazon, netflix. they don't exist without that asset. >> in terms of the multiple that goes back to your thought that they already guide are took the

guidance down. that's if you believe the guidance that's if you you believe they have a handle on what this whole thing is going to spend. cost excuse me. >> yes i think they have. >> and i'm not sure we know that. >> we don't. we don't but i don't know for sure. >> dan's got his mic's upside down tonight which means that actually it explains why the entire conversation -- >> what, what listen here the company they added $42 billion on carbon no debt on the balance sheet still generating cash. whatever fines they paid they have guided to the cost relative to the cash flow here is the thing. the most important thing we know data is the thing they sell we are the product but they have a billion plus users and what's app nefrp montized that. what if they make a play into the payments. >> the convert calcium that's what i was talking about. >> what i'm saying again it's a matter of sentiment. it's derisked a good bit. >> from facebook to another tech giant stalling out we are talking about google facing a perfect storm of

problems let's go to julia boorstin for the details >> well, melissa, the ftc started hearings on competition and consumer protection, questioning whether google along with facebook and amazon are monopolies this comes amid reports that attorney general sessions is prepping an investigation into social media companies for censership, a leaked video from google could fuel allegations that the internet giants are biased against conservative. breitbart posting a video from the google meeting after the 2016 election in which the top executives shared disappointment over president trump's victory >> myself, as an immigrant and refugee, i'm -- i certainly find the selection deeply offensive and i know many of you do too. and i think it's a very stressful time and it conflicts with many of our values. >> google senior ceo saying i

think all of us would agree this election was particularly hard google responding to breitbart posting this video saying quote for over 20 years everyone at google has been able to freely express opinions at meetings nothing was said at that meeting or any other meeting to suggest that any political bias ever influences the way we build or operate our products but gogel c suite is facing guardian growing scrutiny especially after declining the senate's invitation to testify last week. house majority leader kevin mccarthy two-wheels it's time for congress to make sure google lives up it's motto doesn't be evil #stop the bias. we'll see who congress calls to testify and how google responds. melissa. >> all right julia thank you karen, so long, fischer. -- how concerned are you at this point. >> i'm sort of concerned some part i think it's ridiculous per thought having hearings about fox corporation with videos of them saying wow we are dlated trump won and

they're either biased or not biased in which case why should they say anything about google or twitter or anyone else? putting that sort of show aside, most pressing right now is september 25th we hear the attorneys general brief jeff sessions on -- i don't know exactly what it is to tell you the truth, what exactly they want to do besides they don't like google. the pr is bad. let's say that they want to do something -- they feel like we have to do something i think this doj has lost credibility already. but let's remember at&t time warner that seemed to be a politically motivated sort of case, right. and they lost badly. that could play either way we don't care whether politically motivated or not do it anyway i i doesn't love that. but i think we are a long way from a attorney general brechg to a microsoft type suit against google and others. the other thing is though -- there are kpetsive -- it's

ironic microsoft being -- are they being hurt here is that part of the problem? i mean that -- if that's part of what they're. >> you're talking about anti-trust issues here. >> yes i think. >> in terms of just the bias issue and whether or not algorithms are biased or not. >> here the is the thing high pressure let's say they are. they are not allowed to have an opinion? >> algorithms? >> are they not. >> is this company not allowed to have an opinion. >> it comes down to monopoly that's it they have 90% of search that's why the justice department can have a thing. i'm telling you i don't think you should poopoo. but jeff sessions is out in a couple of months who do you think they are going to replace who do you think is going to be in the top. >> might be distracted with other things right. >> i'm just saying it's submuch more in line with what conserves and the president think. >> let me just finish. if it ends up in a fight that would not be bad at all for google they could digest that. a fine

but if we talked about gdpr and for a long time and after that happened google went up a lot. we have already seen -- i think it's about $35 billion of cloud right now. hanging over alphabet from all of this circus in the last two or three weeks. >> right isn't there another concern there could be regulation regard wlag google could do. >> i mean, the result. >> the gdpr. >> separate from a doj investigation, separate from. >> that would be the result of the doj investigation. >> it doesn't have to be the result of a doj investigation. it could be the senate and/or the householding hearings about whether or not this algorithm is biased nornt. >> of course, and again i'm long google i like google, karen it's a reasonably valued company. but you can't it tell me more regulation is not coming you also can't me that who is more at risk a company whose value is all in an algorithm where you could be forced to change that algorithm or change it dramatically. that's the core asset.

>> you're wrong then you say i understand there is a risk which i do too. willing to accept that risk, for the power of this business, the price of this business, how much cash they have wsh whatever leverage they have best. >> i'm still long and not selling tomorrow but what i want to highlight is an issue i don't think investors are thinking about this is an issue where how we need to look at companies who core asset on the internet fame o same argument with facebook and i got to keep having it. the companies are at risk. you have a dynamic with more regulation the eu just passed rules today could force google and facebook to have issues and copyright and uploading content that's copyrightsed to the internet europe is leading the way. they continue to lead the way this is an issue. >> stiff it for the op-ed and cnbc.com. >> guess what. >> all right a break check out shares of sears, the company announcing earnings that were delayed. the company decline is ilgts an important business concept ever investor should know are we witnessing a for the unve

versele amd has the worst day in two months the top technician tells us he is betting on the chip stock later one bear marketter chip stock is headed for a turn around says pete he steps up to the plate for a fast pitch ison" ghafr eyrit te th [ upbeat music ]

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from the numerous with more on the story. >> sears did report the second quarter results. you pointed out delayed from this morning we tone know why the storied retailer did post another loss twice as large as a year ago revenues down 26%. now the same store sales down 3.9% that's the smallest sales slump we have seen in more than three years. but in context, sears hasn't reported a positive quarterly comp in at least eight years july and august did see positive monthly comps. that's there but there is really no real consensus because the company is no longer covered by analyst we don't have comparative numbers. the cfo does note the retailer continues to explore the he will sale of ken more brand the ceo had offered to buy it for $400 million in the release lampert says the company is quote hopeful that we can stabilize the store base in the near future. meaning not keep announcing the store closures there are under 900 stores now about a quarter of the stores they had ten years ago

in the same time period the company shed 98% of the market cap. the float is extremely small it's heavily shorted you often see the volatile moves- the market cap is under about $135 million at this point. so we want to make sure the viewers understand as we show them the stom chart here it's up 19% after hours. but, again, remember, 135 million market cap back to you. >> all right, court thank you. well, our millennial viewers we have many of them may not believe this next stat but series or sears roe buck and company as once called was once the biggest company in america in 1893 the retailer began as a mail order business selling wrist watches radical idea for the time for me you could buy socks be stocks, even a house from the catalog delivered to the msh. you could call it the internet of its time in the 1970s at its peak 4,000 stores approximately 350,000 employees. sears nounsed plans to build a

headquarters in down chicago, the sears tour giving the skille line bragging rights to the tallest building in the world for 25 years but then gave the monster wave of competition and then sears struggles to say alive with 800 retail locations. roughly 90,000 employees what led to the demise of such an iconic american brand and i guess this is sort of a reminder that can could happen to other iconic american brands we see around us today aaron, especially in the retail space. >> especially in the retail space. the idea of this being the amazon it was .it's strerd. it startwood the kmart mergener and it seemedat that time that it was a real estate play. so they became bigger bought kmart. and i think the strategy then was to milk the stores for cash and that was at a time when amazon was sort of just starting and retail business was really really changing.

the ridiculous thing about that number reported today down 3.6 comp store sale with, the best in a long time that's because they got rid of the worst stores this is the cream of the crop of what they have lost. >> still down 3 points. >> still down. and i mean i want sad. a lot of people work there it's -- i mean, they just didn't spend and they were levered. and i mean the fact that it's public is only the tiniest stub of really it's a reminder that -- it's unfortunate but it's interesting because you think how could that happen and could it happen to an amazon >> i'll put you on the spot pete as i like to do occasionally. >> he can handle it he is a big boy. come on. >> that's why i throw it at him. what retailer do you think today could heed the warning that is sears holding. >> maybe somebody like bed bag and beyond or something like that where they are not doing enough to be competitive the reason i think that some of the companies have survived and actually grown, best buy, they absolutely went right after everything amazesen was doing. they were supposed to be out of

business literally years ago after that -- they had lost competition there as well. but i think the real thing we see right now in terms of what's going on is those that can compete online whether home depot -- you go through the list if you can compete online and you have the store presence you can compete in this world against amazon and still win. >> net beneficiaries are home depot, lowes and best buy. sounds like we got to go to commercial >> no the entire retail space is gearing up for a big rally what did you see. >> today the xrt off the 53 week low last year. call volume is hot six times that of puts and a lot of sellers of long calls. guys coming in and gals long selling out. there was one trade caught my eye when the stock traded at 51.50. a buyer of 3,000 of the 51.5 next week expirks calms. preg up at 52.12

kind of the at the money play for the continued rally. if you look at the five-year chart the thing has been basing above the prior highs of the years ago here and maybe this is just a play over the next week or so that you get a further breakout. >> for more options show check out the bull show 5:30 tomorrow eastern time process coming up check out the mystery chart. the stock is down 12 peppers the past year. but pete says this biotech's worst days are behind it he gives us the fast pitch in the meantime here is what else iscoming up on fast >> you complete me >> that's what bitcoin investors are saying about wall street after a report that morgan stanley is jumping on the cryptoband wagon send bitcoin higher and we'll tell what you that could mean for the cryptocarnage. plus ♪ strangers in the night ♪ ♪ exchanging glances. >> shares of micromicron falling

while shares of nvidia rally awhy the ditchens which should you bet on we explain when "fast money" returns. >> announcer: options action is sponsored by think or swim by td ameritrade w? 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

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improving efficiency is what we do best. energy lives here. money. it's a tale of two chip stocks amd sinking today while micron soared the move highlighted a straej divergence let's get to dom in the newsroom. >> chip stocks have been at the cent of a lot of trader chatter for good reason. a industry group florida assumed a good market of leadership over the past years has been locked in a trading range so far this year but the vectors semi conduct etf, the sicker smh is still up 8% in 2018 given the positive price axe today. but you dig deeper and you see over the median term there is a big segmenttation between the haves and have notts in the chip space. over the last six months only

around 5 of the 25 stocks in the index etf poechted positive returns. and the variance between the best and worst perform certifies wide on the upside advanced microdivers amd up a whopping 156 peppers in the span. meanwhile, one of the worst performers has been memory chip maker micron which has lost over a quarter its value. micron is one of hedge fund manager david teper's top holdings and earlier today on the halftime report he talked about why he is still in the trade. >> we obviously think so because it's one of the stocks we haven't reduced as much. even though we reduced the portfolio it's a bigger part of the equity portfolio than before aflt we did reduce it somewhat but just less. so it's a big are part of the portfolio. >> so, from the horse's mouth david teper a bull of micron still bullish despite the downside price action. we see soo if the kmip stocks and differ owe divergence hold and whether they can be bullish

or provide a bingling in the bullish trade for the market back to you guys. >> thanks, dom well the next guest says stick with the chip winner let's go off the charts with todd gordon. >> yes the semis have be o sbn the focus of all -- the trading commune and just before we jump into the charts let me put something out there to just show how bifurcated the semis are if you look at the smh since november of 2017 we are at the same level so winners and losers. first two we start out with are the underperformers which is intel. intel has been under a lot of pressure here. so put it in context we are going back to 2009, the bottom of the credit crisis let's gauge how big each of the major corrections has been there's been four main corrections. number one, right here, you can see i've got it laid out here for you. a 25% loss over 15 weeks again, up here, we have doubled it 34% in 29 weks 35% in 38 weeks. and here is where we are right now.

as -- as much as intel has been underperforming we are down 21% in just 14 weeks so history is any guide, i would say this this underperformance in intel is still alittle immature and has a little ways to go. so i think if the market is going to continue to go sideways intel could be under pressure until we match up the prayer corrections. the other laggard in the intels did -- in the chips, no surprise, is micron. as we flip over here and micron is going to show an amazing chart. i know we can do it. jess give the heads up there we go pl this chart is amazing. again back to the 2009 loie. and it shows how well contained in this beautiful uptrend channel we happen to be. i put the same chart out on a month ago on "fast money." and we back op micron is the upper end of resistance this is the upper channel of resistance if the a cyclical stock we could get down and start to see

another 30, 40, 50% loss there is no support in sight from this chart on micron. now we flip over and lack at the two strong ones we are looking at here. next up i think is going to be nvidia this is a fairly -- a stock with a great amazing run. we are falling into a little bit of consolidationen i'm looking at this pattern. 80s rally up to the new all-time high and basically pull it up here. it does a three-way pullback you buy into some support. then you speck the new high. the exact thing happened here as we approach the new all-time highs. you have a three-way pullback and will go for support to come in and buy that. a kick are, this drop here was 7% this drop here was exactly 7%. so there is a lot of patterns and symmetry in the market finally a in d, amazing stock here. look at this chart this blows my mind 1973 i think this stock ipoed.

look ouch how much of a range for 47 rb 48 years this channel is sourced from 2001 we just started to break above that right now if we do a little bit of fib multiples -- i will spare you the gory details if you take a fib multiple impulse he was in terse of a trend break out jot the first objective in amd is $86 that's a minimum upside target. we could be getting started here in amd i think this chart is amazing. >> amazing all right todd, thanks todd gordon trading analysis let's trade it trade it or fade it we should do, in and out. >> let's play a game the first of the night mel champing at the bit. >> 30 minutes in what took long. >> that's all right we do it trade it or fade it, dan. >> you trade it. the stock is down 25 li 20% from the recent months it's been a bad, bad summer of news, lost the ceo, they had to push out

the 10 non-meter chip. i think there is catalyst coming in the fall at 45.5 or so. you see a trade back near maybe back to 50. >> my trading and fading is? >> yeah. >> i'm trade going with him. >> you are >> you're with him. >> i just bought intel the other day. part of the reason is i think it's a great opportunity because of the fact that they are searching out for a ceo. i think he is there. and a halfen chen oi moving to the up side. >> micron being tim trade it or fade it. >> fade it unlike intel which is a broader business model and has core competency look the roll crisis in d ram and nan are things you have to be concerned about those industries aren't going away in fact i think there is better surprising explain amongst the major producerers there. cheap is not enough here for me. >> you agree with todd actually. so dan. >> right on todd. >> i fade it too. >> look at that. >> a big issue with the semis is

not just trade we might have seen tons of double order in the first of ha of the year. look at the iphones announced, 512 megabytes of memory that sort of thing. >> fade it >> fade it. >> let's move to amd pete trade it or fade it. >> this one i'm going to fade. micron i still like. go against you guys on that. but this one i think the run has been too far too fast. >> directly against what todd said. >> right i've been in this stock 13 up to 30 with options not with stocks but i don't want to be there anymore i took off all the positions i'm not involved. >> today was an interesting reversal. >> massive. >> 10% reversal off a multi, multiple year high you see lower low are i'm again todd on that. >> lower lows that was great. >> yeah. you don't have to like everything todd does you know. >> it's hard not to. >> anyway, karen, trade it nvidia. >> nvidia, i got to fade it. this business is a industry is

cycle beingle this multiple is no wrp close to a cyclical to me great company i won hort it fade it only this much off the top downside. >> i'd trade this one. and i usually follow karen on multiples. but i think there is space in the gaming and i think they continue to actually deliver on new chips there. the chart is a bonus for me. but i think nvidia is not one to count against. >> pete what are you doing i got to hear what you do with nvidia. >> put him on. >> because you like it. >> you game on top of it. >> you know go with tim here is why. until the growth stops that's when that stock continues to go. as soon as they miss this stock goes. >> that's a guide uptrade. >> still hared check out adobe, the cloud giant reporting earnings after the bell. what top analysts are saying about the quarter. plus the bit boss made his way over there is a struggling r reh. fomo breakout, more "fast

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welcome back to "fast money. time for an instant replay a month ago to the day pete stepped up to the plate to pitch a electronic arts. >> now, established franchises, they've got that they have also got a pipeline. they have a deal right now with disney, a 10-year deal they signed when you look at all the different elements that go into ea forward as a publisher there is reasons to be excited

everybody focuses on mobile but it's going to the different platforms. >> since that call august 13th electronic arts down 13%. >> frustrating >> what do you do. >> i hold it i sell calls against the position i'm not down as much but certainly down i'm disappointed in the reaction we have even out of ea so far but i think going forward you know the picks a lot of the time we are look at further out that's why often times i own the stock. i own the stock actually. >> why don't you give it another try. give it up starting to feel better about things gilead this is a name i talked with tim earlier he also owns this name it's a great name here is why. there were opportunities here when the blood was in the streets not long ago look at the chart later. look at this management team it's a new management team and they have been aggressive. if you look in the last two years what have they done? made a hue acquisition kite that's something that's playing out and actually just this week part of what they are working with there on arthritis crewing o drug did put out good numbers.

the stock jumped the other day great for the stock obviously. the solid fundamentals of the krp. trading at 11 pe pch also a 3% dividend yield also in the the last five years reduced share count by buying back stock by 15%. so they're doing frgt right. everything you'd want if you ar shareholder of this company. they're going out and they're being aggressive and buying. and what they're doing in terms of buying back stock and with the dividends. now the strong pipeline in the growth this is the thing i want to focus on most. this was a hepc related thing. everybody o everything was about hepc for them. unfortunately that has been too good of a drug appear competition have pushed it down now. it's only about 20% of the revenues but where they make up for it and get growth, they are looking at the hiv franchise they are building getting big reporter and on collegy and great growth there the free cash flow it's flowing they will make more

squikss if they choose or buy back more stock. i think the stock returns to the highs somewhere maybe near $87 a share. it's taking a little bit of time but i like this name. >> karen has a request he. >> quick question for you. the new arthritis drug, how big do you think that could be for them >> not as big as what we see in some of the other categories when i you look at hiv that's the blockbuster. one of the drugs you talk about $5 billion drug. in terms of what people expect, where that's going to be going in terms of sales. i think there are parts of the pipeline where they have bigger blockbusters but everything helps and afcly that acquisition is going to feed no the on collegy side of things as well as other parts. >> no more questions time to vote are you buying the pitch op gilead tim. >> tom to me first. >> you own it. >> i own it. i'm buying it. there is pete give him the number one nod >> jesse ventura. >> good job, pete. i think the management team is dead on i'm worried about a bad acquisition. i stay there love the valuations >> you buy the governor's pitch

dan. >> i think it was a great pitch. but i'm not a buyer i will i'll tell you why if you look at earnings and sales the last two years expected to be double digits flat next year more blood letting. >> on the desk karen what do you say. >> i'm a buy i mean, used to be that they have huge bunch of cash i'm glad they use to do, did something smart. it's a little bit on the come to see. but i like it. i'd be long. >> two buys one he will. traders have spoken. but we want to hear from you do you buy the pitch you can vote on the twitter poll on cnbc "fast money. don't look now but a rally this week the is the crypto ready to rally back that and more on "fast money" heyde.

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doesn't exist. welcome back to "fast money. bitcoin rallying today and the word on the street that rumors of the dmiz could be greatly exaggerated. bob pisani is at the exchange with what could drive the comeback. >> me exaggerate forget it. the rumor that is the wall street wants to offer the services bloomberg reports that morgan stanley is playing to offer complex derivatives tied to bitcoin. gifting investors shin thetic exposure to the bitcoincoin contracts. they will be able to long or short the contracts. bloomberg is said the bank is set to launch once theory proven institutional client demand and after internal approval process

has been done. we reached out to morgan stanley by the way, and they declined to comment on the story so no confirmation here. goldman sachs is exploring derivatives on bitcoin, called non-deliverable forwards you'll recall that business insider initially reported that goldman was backing off on the bitcoin trading operations but the goldman cfo refute d that at a recent tech crunch conference. >> i think one of the wonderful things about being at goldman sachs is we do get written about a lot. and i never thought i'd hear myself actually use this term tp but i'd really have to describe that as fake news. >> okay. so why are these firms exploring derivative products instead of trading bitcoin? it's regulatory issues ig it's a big problem. custody is the problem the s.e.c. made it clear they are not pruchgt bitcoin etf's until the issue of custody is

rfrld. but how to story the private keys, self-store something not going to work. the s.e.c. requires private funds with significant assets to use a third party. so cryptocompany bitco is among the companies looking to fill the gap. they received a chart frere the south dakota division of banking. they have to file financials, adhere to know your customer and anti-money laurnderring rules. and file antidisclosure. if they can crack it this will be a leap for bitcoin pap back to you. thank you bob. for more we brought in our bitcoin brian kelly to get his take on this how important are the due developments. >> i think the morgan stanley is important for sentiment. you saw goldman sachs. people have been waiting for the herd, the institutional herd to come and so the fact that morgan stanley and citi bank, that helps sentiment. the custody is actually probably a bigger deal. because that's the rode block.

if you have more than $150 under management and you are a private fund, you can't custody your own assets you can only get sew o so big in this space with custody, institutional quality custody, regulated custody that's a big step forward. >> for more on how the latest development can make bitcoin comeback we bring in mike bell shi the ceo of bit co. >> what sort of interest have you gotten so far. >> it's been ongoing the last couple years as traditional finance started to get engaged with cryptocurrency as the mechanic has grown and spronen o shons proms for the future it's growing everywhere >> what's your guess a to who the commerce will be the first clients. >> in the spectrum of folks needing custody. there is more aggressive and less grfrs a number of hedge funds, family oftss, weallt math. frankly if we had solutions two

yeeg years ago the market would be farther along than today. >> one of the issues with custody in the past in bitcoin habits slow to get out of cold storage. some places take two or three days to get the assets por a trader like me that doesn't work the new offering, what's the time frame on that do you have different tiers for traders versus longer term investors. >> bit co has been servicing hundred attention of exchanges global ily for years one of the oldest players in the space. we can marry cold storage and hot storage. you do not want to move a billion dollars overnight. if anybody tells you you can move that quickly you have to wonder what are they doing behind the scenes could keep it safe. >> are you only dealing with bitcoin or across the spectrum. >> no we are it excited about all the digital assets in cryptocurrencies we support about ten different blfrps, 75 different coins and tokens overall and seen growth across all. >> custody seems like an important aspect of this

but when you hear about goldman sachs possibly -- i don't know how you want to praise it -- not being as optimistic about rolling out a trading devg as maybe previously thought morgan stanley's move, does bitcoin need the wall street, the institutional players? or is it the custody that has been the biggest barrier for bitcoin and cryptocurrencies to grow significantly. >> custody has been a barrier for institutional get in they are required from a regulatory perspective to have a regulated qualified custodian. that's a particular entry point which you can't go without they are fiduciaries to clients. they have to have make sure they have the highest security and regulatory compliance possible so that has to exist and without the fraz having been in place the last couple of years it's definitely slowed us down. >> i'm asking you this question, bk. >> let's do it. >> does bitcoin z need wall

street more than the other way around. >> we haven't seen a lot of new buyers bitcoin needs that i can tell you and he can totally the institutional herd is moving a little bit they have taken longer than i expected i'm a little blue in the face from holding my breath but it's starting to happen. >> and this makes you more opt miskt. >> i have been a customer of bit co a long time now and this product and having it regulated by state banking authority changes the game for me. >> all right mike, hope you'll dom come back and give us the jupt the ceo of bit co. >> check out the after hours action in adobe. reporting earnings what are the wall street analysts saying about the stock we get the details plus you have seen the don't miss the bar school sports ceo coming up on mad money

you see the cramer camp at the top of the hr.ou live at the nasdaq markets more "fast money" still ahead. introducing e*trade personalized investments professionally managed portfolios customized to help meet your financial goals. you'll know what you're invested in and how it's performing. so you can spend more time floating about on your inflatable swan. [ding]

this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. welcome back to "fast money. shares of adobe moving higher in the after hours sessions following the earning release. let's get to john foert with wall street's reaction to the results. >> hey, melissa. mostly positive. the stock was down after hours and it's been here and there on the news we got a couple of comments from

analyst moving after hours from brent thill and richard dafrs. richard davis says another boringly excellent quarter with many green lights up and down the functions. we got a classically fairly conservative adobe guide given the strong bungt trends we see for marketing tech should set up the firm for another upside niebt days from now. brent says adobe scored a hat trick three-quarters in a roe. solid execution no red flags excuse machine with little competition. keep an eye on crm, salesforce, closing the gap. meaning in experience cloud one of of adobe he is big growth areas be more and more pushing up against sales force which of course has customer management -- relationship management as their bread and butt are it's the intersection of marketing data and that sales data they are competing more and more but it's an open field where both of them have room to kind of gain some -- not exactly share but some revenue, guys.

>> all right, john thanks for the run down. and adobe shares we should know not moving in the after hours but a monster move year to date. and cloud stocks overall reining profits. shales of sales force higher by 5 a% since january adobe up 53% work kay is posting gains of 48% can the cloud stocks go higher if so what's the best bet. >> this reminds me a lot of what pete was say bag n individualias once they miss -- it's up 53% on the year trades at 35 times the earning growths. deaccelerating from mid-teens to higher growth rates. they massive secular trends in the enterprise software going to cloud. but at some point that comes home to roost. i look at exnext year and see growth lowers. the first sign of the you have of the company confirming that goes lower. >> the one name in the space i

have a position in is salesforce crm. i like that one. same scenario there. obviously look at pes you get nervous. but i like the growth. and absolutely love benny hoff and the style he has this goes higher >> the valuation is difficult. but you've been getting against the valuation now two years. the stock is up 150% the sales force adobe competition is something people should take seriously. in some cases that may push adobe to make acquisition. there's been are rumors about that you have to be careful of that as well. all right coming up next the final trades and we have the results we have gilead we'll find out how pete did. next need a change of scenery?

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all right. welcome become tp do you know what mark zuckerberg and pete narjen have in common? well thayer both all by themselves sorry, pete. 59% of the people voted no on. >> that's not very social. >> gob to be together and alone. >> way does he get sell even dion. >> is this cell ien did he zbloon i like teva buffett name how do you not like it i'll buy it tomorrow. >> karen. >> i like cbs. obviously are we get agnew ceo at some point valuation is interesting and there is a chance for corporate event >> dan >> alphabet i'm not a buyer here some of the things we talked

about earlier especially with the doj is a focus on this company for the two months to come here. so i'm not a buyer >> i like the symmetry. >> play the music. celine shets building what happened to tony braksen but i love intel but i love intel >> see you back here tomorrow. "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'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 want to make you some money. call me at 1-800-743-cnbc. or tweet me @jimcramer unless you're a genuine stock junkie, this could be a pretty boring busines