they were used we did. but honking one that is were terrible on gas. you are more of a tent person. >> i'm not an outdoor enthusiast but the industry has been doing so well in the recovery up until this year where it has fallen off. >> and it seems like a millennial thing that's what they tell me. >> millennials and rvs that does it for us on "closing bell." toss it over to "fast money" starting now. "fast money" starts right now. riff from the nasdaq market site overlooking new york city times square the trader on the desk with us and tonight on fast, ktd going wind wild for cannabis the lines are long as gathers around for the first part in the century to get high on marijuana. but the stocks are plunging is this a sell the news event we tell you what pot ceos were saying today plus what happened to the net flex rally, the stock surging double digits but up only 4%

today. pete isn't worried in fact he buys the stock. you won't believe how high he sees it going. but first breaking news out of the white house. eamon javers on the ground with the details. >> the treasuredry department at this hour declines to name china as a currency manipulator as part of the official process the treasury department putting out this report at the top of the hour, saying that although china's currency process remains -- there is not a lot of transparency around it they say the direct intervention by the people's bank of china has been limited this year they are not name it a currency manipulator. they are saying no country meets the threshold under the statute to be named as a manipulator however they say there is a watch list to pay attention to it in this report in addition to china which is on the watch list they say the monitoring list comprises japan, korea, india, germany and switzerland. those are the countries the united states is concerned about. but officially according to the

report any say no country meets the threshold as a currency manipulator as of right now. >> eamon, in terms of being on the list, is there a benefit being on the watch list as opposed to to being labeled? if china had been labeled a currency manipulator what would the u.s. have done about that. >> that's the key question because we have seen the escalating tension between the united states and china, the trade war breaking out it would be an emphasis point on the part of the united states to say we are officially designating you and taking action about that. but it looks like the administration is not prepared to fully go there despite all the tension we have seen earlier today we did see the white house take other action that had negative consequences for china. that goes to the united states announcing it's going to withdraw from a global postal union that they said the administration said was giving china too much of an advantage in terms of sending cheap packages into the united states, particularly for online retail and also they said for opioids and drugs.

the united states signaling its willing to put out of the global postal union in an effort to stem some of that incoming trade from china, the idea here is that that benefitted chinese exporters and hurt american exporters who were trying to send packages to china they are willing to do some things in relation to china but not willing to go as far as to officially name them a currency manipulators. >> tim waste the significance of this. >> i think the significance is if you label china a currency manipulator you better look in the mirror is my view. a lot of asia on the list. you can make an argument that there are currencies trading with what the federal reserve is doing. we are talking currencies and i'm talking about the fed. but the reality is the fed has flooded the world with so much money and that should be a currency weakening device. the more important news out of china. what's the yuan.

they don't want it to break through but it's up at the level. wilbur ross said the talks are in high it us not in impasse. >> ups and owns, he said. >> so as we all know, this is not something that's solved overnight. that is the more important point. >> let's move to the big story of the day that of course is the banks gone wild check out moves. us bank corp. up 4%. morgan stanley up 4% kns up 2%. financials were the best performing seconder as the fed says it's staying the course are the banks out of the woods guys terrible dancing. but great rotation from growth to value. >> sit down. >> i love this song. vanilla ice, i have all his stuff. come on mel. >> i'm not joining on that i'm not condoning that. >> the conversation is about banks. >> it is. >> well, listen, i tell you broader market number one, i thought the market trade the well tim mentioned the chinese news,

the fact the s&p was only down one handle on day they could have given up most gains was encouraging. bank action finally starting to look good. look at goldman sachs, which had been negative i've been last couple weeks but traded well today. tangible about 169 give or take. you are talking about a stock 1.5 times tangible become. the stock should be 270, 280 the one that sticks out is citi bank $62 tangible book, a 1.5 multiple on that if you think europe is straightening out you're talking about a $907 stock letter c is the cheapest. >> think back on the last couple days where banks are finally catching a bid saying it's well valued. they're inexpensive and worth a buy. >> as owing y beara says this feels like deja vu all over again. they release very good numbers

they weren't as optimistic on the outlook for loan growth but the profitability is there and they are giving back capital. i'm not surprise the market waited it depends more on where the cycle it for the market and right now we are in a less rosy market but banks fundamentally look good. dan hates this bring it on. >> they don't a act well. >> they've been acting decent offer the about a back of angers. >> morgue tennessee stanley was 57 six months now. 47 now, 43 the other day sentiment was horrible you went in the print. the stock bounced a bit still in a massive downtrend so it goldman. can you quote valuations from here to eternity it doesn't matter. i'll tell if you jp morgan tells that you loan growth is slowing and all you have to do is look around as other parts of the market, look at autos, look at housing other consumer sort of stuff, i would take their word for it it may be. >> whose word.

>> jp morguen. >> now you want to take his word for it because it's bearish. but the interesting thing is when you look at valuation. >> no the price action in the rest of the group ex-jp morguen. >> there are names moving starting to move it's the beginning of that of something. and part of that is it's tough to find great valuation if the market is priced to perfection which a lot of people would say that lee cooperman was sawing about that but that doesn't mean there aren't areas that can't perform. make the time for banks. when you look across the earnings numbers they were strong because ever are that that's a reason to say you know, as many cases you talk about 10 times pe and you look at some numbers they're not bad. because of that with the dividend yields and with the buybacks all of that combined maybe it's time for the banks to start to perform. >> key ward are word is maybe. >> right. >> so at the end of the day. >> none us know. >> as the the last year and a half is underperform. >> flou year and a half. >> we talked about a lot of things rising interest rates

>> they have only underperformed from the previous year dan that was a huge run they had in 2017, right? you have to agree with that it's not been a year and a half they haven't done anything last year was great. and this year a struggling year. >> if it's bank's time to shine if is it value stock. >> you go back into value and not into some of the high fly zbleers yeah. >> talking about netflix on some of the other stocks some some of the growth stocks haven't traded well the last couple woks process maybe it's the right time for value names but value names we have looked at autos the last year and a half and they went lower until yesterday. and airlines have value and don't go higher. if anything there is a trough but it's not time to go ranling back in. >> value outperformed. i think airlines have a phenomenal run they have moved 30% the last few months the auto depth have been value death. the value stocks are not value

death. who pete makes the right paint point they had sniff perform if you look at jp morgan numbers .mnims went up five bits a slow steady. they not referred to the yield curve. if you license to jamie dimon talk about the economy and the strepgt of the consumer that's the most important dynamic for banks. people have jobs, asset prices high and the credit markets are strong why run out of the banks when they give you back to 3% of the capital. >> it's a market with value with growth i'm in the always saying i look for value. i look for value with growth banks have that. u.s. banks came out today. the profits and invest knew were record numbers is something to be sid about that we see if it follows threw. up 4% but how about the pharmaciesle area, health care world, j & jwsh merck, pfizer, united health had a monster move the other day. did pull back a bit.

those are values with growth. >> those are value names with the market and they outperformed at the same time as the airlines same trade. >> you talked about are we seeing the great rotation. >> okay here the thing there is value in the market based on historical valuations and relatively to some other groups. we have a group that are very overvalued right we see that. why did netflix gap out 11%? it was trading at -- something like that close up 5.5%. people are thinking about what am i getting here at peak parts of the cycle, economic cycle if you look at things economically sensitive and trading at a discount to the market. >> is net knicks economically sensitive from a market perspective it is but i don't see the business tall as being. >> why would you go into value traps. >> banks, transport. >> if people are paying attention to valuation in growth stacks that's what i'm saying. >> i'll go back. knock yourself out on autos. you've been right if you want to

be but i don't agree on airlines, banks, definitely don't agree on transports you know, i mean the rails have had a good run grant add bit of a pullback in fed affection. >> a bit at 52 week lows yesterday. >> you want to sell fedex here. >> what is it telling you? the question dsh dush don't listen to melissa it's a real problem i want. >> and he says you don't listen to me which is half true. >> you don't listen are we seeing a great rotation i said that about the way you do. barking a little bit. >> i don't bark. >> that's not nice to say. >> he didn't even say it. >> we have seen multiple. >> we were treading water and could be in a topping process. i want to tell what you last week showed. well a they rotated out of growth, tech med cap this. the groups are not trading weapon the xlf is down from the ten year highs it's not breaking

out. if the maga stocks the microsoft, apple, google amazon. >> he loves that where is your hat. >> if they go down at the same time the market is toast. >> i'm barking last word. >> i'll just say real quick. there are value traps and value with growth. and i think there is a distinct difference there i think the value traps those aren't the ones i'm talking about. >> you would agree with that. >> down from 65 to 40. that is trading like a value stock that once was growing and now is very unicycle might be calling the top of the -- >> can he we dan on a split screen with dan. >> he is arguing with himself. >> against everybody. >> he is. >> there it is. >> look at that. >> double the dan. double the dan guy please round it up. >> delta, "time" tim will back me up on this. the end of september is a $61 stock trading under 50 maybe the last couple weeks the airlines haven't fwn o been

great. chesapeake had great numbers last night we talked about needing to get through 75 on the up side. c the sx that closed lower on the day. dan makes some cogent points us bank loved it a long time but talking about a money center bank trading almost two times book value they deserve the premium valuation but at a certain point people say maybe that's too expense sfwleef coming up check out the move in netflix. surging last night after the earnings but now it's cut the gains up only 5% on the day but pete isn't worried about the action in fact he bought the stock today. he explains why. speaking of buying, elon musk is doubling on tesla. if history is any indication it may be a buy signal for the stock. prohibitition for pot in canada. that's over. the dedra boss is in new finishland for the day. >> you got to make the decisions moon beam or palm tree these are the varieties on sale as canada

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well back to "fast money." tesla ceo ee lop musk saying he is buying $20 million worth of tesla stock. but even with the vote of

confidence the stock traded down about 2% phil lebeau joins with us the details. phil. >> melissa, that announcement of elon musk buying $20 million worth of newly issued stock came out in the s.e.c. filing this morning. the filing was all about the finalization of the settlement between the s.e.c. and tesla over the investigation into the go private tweet this is the latest purchase of tesla shares by elon musk. in this case these are newly issued shares. the next time there is an open period for purchasing stock that's when the purchase will take place it comes a few months after musk said he would be bying $24 million in stock in june in march he committed to buying almost $10 million worth of tesla shares on the open market. and then in march of last year he said that he would buy $25 million worth of tesla shares elon musk has been a regular purchaser of tesla stock on the open market separate from when

he has been awarded stock options and grants and one of the complaints from those who have shorted the stock is that elon musk has borrowed against his holdings when he has recommitted to the company and purchasing more stock, unclear where the money is coming from, in this case with the $20 million. as you look at shares of tesla we should note out that we went looked at periods where musk said he will be buying x amount of shares. and there have been moments where the stock popped and moved higher that day and settled down and other times when there is no reaction it's hard to know whether or not people can look at this announcement and say, this will be a trigger for people to say we'll buy more shares of tesla back to you. >> phil, thanks. phil lebeau in chicago what could this mean for tesla stock? let's recall some other ceos bought shock remember jamie dimon. february 2016. that stock raleddy more than 95%

famdsly known as the dimon bottom don't forget about the steve wynn betting on his casino stock. this is something pete are refers to a lot. rallying more than 54% six months later could there be upside for tesla. >> not based on this like, i think the main point is yes he bought on every equity offering, even bought on convert ofrpgs think about it when the company issues new shares it's dilutive. he is trying to manage the dilution but the most important story we keep hearing rumors about is that this company is going to need to raise capital soon that's the issue how they do it and on what terms. ke buy whatever he wants the stock is not going up until we have a fix to a $2 billion capital hold in my opinion. >> or they bought a plot of land in shanghai to build a factory they have to raise money probably in the asian markets for a $2 billion facility there in asia, not even thinking about

the cash needs here in the united states. >> can i ask pete a question. >> yes. >> what gives a musk rat his musk. >> courage. >> courage and that's in my opinion what you need at this point to get long on in stock which do anything ahead of earnings which is about a week and a half two weeks from now. it's got to rekrp the 280 level which it hasn't done tp it did and gave it back i think you are playing stock market here. pete will tell you correctly if you want to be in if the options are cheap do it that way but buying stock on the back of ee month musk who has headline risk you need temeity. >> you go up on the sat with that. >> let's go off the charts with mkm partner technician j.c. o'hara zblool what are you looking at. >> i'm looking at the longer term chart of tesla. obviously we heard the news elon musk buying shares but the chart longer term is not

investable here. i'll tell you why. looking at longer term chart a lot of people think of tesla as momentum name. that makes sense going back to 2013, the stock rallied from 28 all the way to 280. that's 900%. ingrained in the investor's heads is the tremendous run. but if you look back and stepped back the chart hasn't worked you've been contained in a trading raenl for the last few years. yes, 2017 we made a stair step higher but still we have been stuck between 280 appear 380 a long time so is the risk or is the reward for taking the risk of trading or buying inside of a trading range? and we don't think that's the case here. and i'll show you why. we are looking at what the average day for tesla is compared to the average day for the russell 1,000 is average upday for tesla, 2.2%. that does beat the russell 1,000 average up day of just 4 basis

points that's good, positive we like that however, the average down day is minus 2% versus minus.45% for the russell 1,000. you get more boost on the upday than the down day. four to one. does that make sense in well yes it makes sense if i'm rewarded but if you go back to 2017 investors haven't been recard warded for the four times risk tesla is up 27% the majority of the return coming from the beginning of 2017 year to date tesla down 12% again, russell 1,000, since 2017, is up 29%. so i'm taking less risk on up days less risk on down grays a outperforming tesla. longer term tesla is not investable here. let's look at some numbers if you look at levels, again we pointed out we have traded within 100 trading range here. what concerns us from a charting

perspective is we broke down earlier this year to test the 250 level. we did that recently we ral idea become but look at the pris action today. very we can. our fear is that we fail at 280. we pull back and what happens? we enter that longer term trading range we talked about before between 180 and 280 which means if we break below 250 we have to consider risk to the downside to 150. as a risk are/reward perspective it doesn't make sense to invest in tesla here in our opinion. >> i understand that this is the long-term view from a trading perspective it looks like the 250 is a good floor floor and you bounce up to the upper range regularly. what do you tell clients saying i want to trade this thing >> well if you want to trade it this is the stock now as we showed the average update and down day that's a lot of juice if you are a day trader this is a chart you want to be in. but if you look at the volatility here you were increasing the volatility in the

u.s. markets right now we have seen increased volatility in the global markets now. if you are an institutional portfolio manager and you are looking to decrease the volatility of the portfolio, removing this stock helps you immediately. so trading, sure, have fun with this but as an investor, too much volatility, not enough reward in our opinion. >> j.c. thanks pete, what do you say. >> i'm a trader and i still hold a position i put on long ago when the 420 was floated and that's not looking so great. i'm out in november maybe i have time maybe something happens between now and then but the issue is as a trader i look at this and it's so different when we brought up the idea of jamie dimon and steve wynn buying their stock. the fundamentals were there and they were showing everybody this is a stock to by we have everything in line when you look at tesla it's a different deal because obviously they are a company that has to raise money. so i'm actually agreeing with you on this. >> what do you mean actually. >> every once in a while i go to the dark side.

because of the fact we see what's happening with tesla they have to raise money. the fact he puts 20 million in is not as meaningful as steve wynn and jamie dimen >> for more on that you can log on to cnbc.com first in business worldwide. in the meantime here is what else is coming up. >> i pass on grass all the time np. >> well, canadians don't have to anymore because weed is finally legal. but that might not be such a great thing for the pot stocks we'll explain. plus, pete is bringing the the heat pitching netflix yeah with, netflix he will tell us what has him excited when "fast money" returns. why bother mastering something?

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the difference between excellence and mastery, is all the difference in the world. introducing the all-new lexus es. a product of mastery. experience amazing at your lexus dealer. welcome back to "fast money. it's marijuana madness in canada the neighbors to the north officially legalizing pot with massive crowds gathering in stores all over the crow dedra bosa is in the middle of

the craze. dedra. >> reporter: that's right, melissa, the craze started in st. john's new finishland. everything from cheering lines, parties, a celebratory group wake and bake. and even a gigantic bud of cannabis we will show you that dropped from the ceiling at midnight in toronto. but after the celebrations day one is almost over tomorrow and in the coming days the initial high of legalization may wear off this country is going to be faced with tough questions ones involving supply constraints. we saw some of the issues today as well as cybersecurity when it relates to online sales. that critics say could turn people back to the black market. critics say police are unprepared to deal with cannabis impaired drivers there is the potential effect on the medicinal weed market. earlier we spoke to people in line saying they were having

problems sourcing medical marijuana in the leadup to the legalization now the financial wind fall as well, something to manage expectations perhaps because the government may not be -- may not get everything that it has proposed six months into california's legal weed era, the state reported far less than promised on the ballot measure. certainly these are all issues that have been debated in canada for weeks and years leading up to the momentous moment. but the dirchls is that now canadians have to grapple on them with a global stage with many watching. i know you are talking about this but noticeably absent were the biggest cannabis stocks who perhaps took a healthy leg down or perhaps investors are contemplating the the longer term challenging. >> thank you, dedra. well you would think pot stocks would blazing but as dedra mentioned instead they are looking burned out today. tilray, canopy, aurora.

>> we hate puns. >> sinking double digits in the past two days. about we get to the traders we should note that tim is long on this space sits on the advisory boards for cannabis stocks. for alling of his disclosuring go to fast at cnbc.com. >> was this a sell the news tim. >> i think it was. the news about supply shortages and bottle next, even online or hacks or -- injury that's noise. the reality is this is the first time this is happening there is going to be kinks to be worked out when people were talking about this they weren't talking about how smoothly it would go ner talking about the addressable market, and companies in a first mover advantage in a world where you have to believe it's changing consumption trends nationally. that's what it is about. >> we had the dean of valuation on yesterday. >> from nyu i believe. >> although he is in san diego but he makes an interesting

point. we don't know -- we can't really know the total addressable market we don't know what the uptake it on the ecreational side and th dahm that dedra talked about and that is the black market could still reign spectrum $supreme because it's cheap ner the black market because the government doesn't tax it. the government taxes it when it's federally legal there is a question of price discrepancy. maybe those sales won't go to the legal channel. and we won't see that market actually expand to what it should be. >> well the two things i'd say about the black market is first of all a lot of companies operating today at some point operated in the black market and legislate myselfed businesses. it's a reality i think that if you can bring consistenty, predict ability and actually regulation to an industry with a lot of uncertainty people go to market and priss are not the issue. they are not going to be the issue. >> there are a couple of other things going on. i don't know much about the companies or the supply constraints but if you go to

california where it's legal there are businesses booming around this. a company dauld eaze with it's like the caviar or uber eats of the. >> is that an app op the phone >> no. the weblts is built by shopify there are angles for new markets. banking opportunities and logistics. to me that's how you focused on this i don't know. >> the picks and shovels as opposed to -- >> yes. >> cnbc has been hitting the pot story with a number of of ceos appearing including tilray ceo and he said a few things about the potential size of the str industry ha that has our cannabis king up in passmore we thought it would a perfect time to play not so fast let's recap how it works. >> can we please. >> play an clip of the interview whenever tim feels like he jumps in and says not so fast. the interview will pass, the stamp appears you see then tim elaborates. >> are you ready tim. >> i've never been more ready actually. >> let's roll the tape.

>> let's go. roll the tape. >> i think the total addressable market over the next five to ten years globally is 150 to 200 billion. and i think you'll see a handful of of companies dominate part of that industry. let's say 80%. i think it looks more like beer than -- than any other industry that i can think of. and so if three or four companies control you know 150 billion in terms of market share you can -- you can get to two or three company that is have $100 billion market cap. >> hold on not so fast. can we -- stop it. thank you. some really important points here he says three or four points dominate and north 100 become tilray is a $15 billion company and a lot of people think that valuation is difficult right here i think the point is that what is the total addressable market

cap? and when you hear mr. kennedy talk about the markets i'm hearing the recreaks thele i think i don't think it's get nothing ot pain. or nurtry suit cal or bioaffirma i think it's extraordinary only a couple guys make it out. i think he may be right. if you think about the operators now moving forward and there are some in the u.s. not a lot of people know about that are run very efficiently have built businesses on not a lot of capital and may be the biggest guys that nobody knows about, be careful and batch out for the names. let's -- i tell what you let's keep moving and move to the next point. >> i also think that we're in a really interesting position where every ceo, every chief strategy officer at every other alcohol company and every other functional food and beverage company and every other pharmaceutical company is looking at this industry >> not so fast stop, stop for a second. first of all to put this in context, if you think about it

jim cramer actually had part of the interview earlier where he asked ceo kennedy, brenden, what do you think about the amazon -- or at least they've been refrpsed to be the amazon of the cannabis world constellation how do you expect to compete again if you think about it it gets back to who do you think is winning out? the guys that have built enormous cash pile and i would make an argument that a pile of cash without good decisions is away a lot of capital is eradicated i would not suggest that with constellation. but you have to be careful, the cash rich guys are not the only ones if pharma is coming in they are doing two different things in the industry that's exiting for tilray let's keep moving, finish this off. >> how they respond to constellation, that puts us in a good plals of in terms of having the conversations. >> really quickly by the way,

big knews after the bell, that mr. sands is stepping down at ceo and bill newlins is taking over interesting newlin was on the panel with mr. lenten and jim cramer saturday. some of this transition was underway i don't think this changes the story at all but it's big news for people following the sector because constellation is the big gorilla. >> pete, picks and shovels or growers. >> i own constellation for the reasons tim brought up but also they had a great business before they jumped in that mix is something going forward is great. >> still ahead, chip sticks have crushed. as the etf falls 10 peppers from the recent high. it could be worse for one of the sinking ships we explain pete will step up to the pete, getting ready to pitch one stock he says is screaming by right now. already 100% this year the name when "fast money" returns.

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welcome back to "fast money. time for the instant replay. last october pete stepped up to the plate to pitch home depot. >> 35% of their outstanding stock has been bought back in the last ten years that's massive they've been aggressive. and look at that chart it gives you a little idea is the stock at high sns yes, it is do they have growth? yes. this is a stock that goes a lot higher from here. >> despite falling more than 4%

on a credit suisse the shares are up 12% what are you doing with home depot now pete. >> you can own it. i saw that the i saw the pullback today that creates of an tune. because the sfok had pulled back from highs over 200, 210 actually on this downed grade where it is now i think valuationwise it's what you want grifr given the growth they have. >> a whole month step back up to that. >> come on, over the top guys when i say over the fop you know where i'm going. netflix. we teased this out here is the thing. looking at the management who is the founder of this? it's the same guy continuing to run it reed hastings. he has done fantastic. just go back and look at this company in 2012 where it was trade tlg. and where it's trading now i think he has done everything right and has executed almost to perfection they've had a few hiccups here and there but overall fantastic. the content production -- when you look at this company right now, they are creating so much

content. they are doing it overseas some of the content this they are now vertigo over it went from 15% to 25% of the revenue that's something very impressive as well. now, let's talk about some of the strengths they've got. they have growth, boy do they ever have growth they beat by a million subscribers the past when they reported last night. that's unbelievable really looking at that where do they get the biggest gains? international. they have growth geographically as well. talking about india and china and some places a lot of people said they couldn't grow there but they are and they are growing faster going forward. they will be free cash flow post-by 2021 but spending a lot of pen that's the concern they trade at high pe. i get it but the revenue is there. i think this is a company that regains the 400 number in the not too distant future. >> pedro love the work on the cnbc even reed hastings mentioned it. competition does that concern.

>> you they own it they have a big moat look at that chart they have a moat guy and their ability to show they can get that content out there that i'm talking about, i think that puts them way in front of everybody else and by the way, when you look at broad band, that is going to be a huge catalyst as that is built out, the cattle sift a monster forenemy internationally >> all right, time to vote are you boying pete's pitch on netflix? tim still drawing to starting with guy. >> look what i wrote pety and chill. >> buy or zbleel don't feign ignorance with me it's a big buy. >> dan you know, pete just said netflix and spill here the fact that you said it was a amazing that they beat by a million subs well, they -- they missed by a million subs last quarter. so i think that you have a lot of spotty you know subscribers especially as growth comes from overseas i just don't like this one. >> i'm shocked. >> what about chill was bad with

spill? confusing to me. >> spill is bad. chill is a good. spill is bad thing. >> tim. >> i'm not chilling or spelling i'm selling. crazy for me -- i corrected. >> concernle sand zbleers i think the cash burn is worse next year. the ralgs is absurd. there is enormous competition and the moat doesn't exist to me been wrong going. >> it looks like burl ives. >> almost no arms like this. >> alligator arms. >> yeah. >> see it's like no arms. >> alligator arms can't get in there. where is that thing. >> 2001 buy on the desk are you buying the pete pitch for netflix you can vote on the twitter poll or@"fast money. wait, where did guy go

there they are tim and guy are in the green room trying to impress a creator of the biggest esports league on the planet news flash old school nintendo doesn't count as esports guys. more "ston" teth fa meyafr is ron! soh really? going on at schwab. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95...

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open an account today. welcome back to "fast money. a major global esports tournament under way that shape up to be the biggest competition in the space

this emits a huge growth year for the competitive gaming industry josh lipton ready to get the game on from san francisco. >> let's start with the video game publishers. because so far in the month in the red. activision electronic arts and take 2 losesing team pipers mike olson says higher multiple stocks got hit hard in the pullback two, seasonality investors get it excited but don't stick around for the publish of the game this is a crowded slate this year some investors might be concerned about wallet share getting stretched too thin he says i also checked with michael packeter of we had bush. he says worries are misplaced they should expect the strong holiday season with compelling oent content he rates them all a buy. activision and take 2 up strongly on the year it's at just about the holidays be -- not just about the holidays they are interested in capitalizing on esports.

the totals audience for esports 395 million, a jump of 18% according to new zoo and esports revenue reaching 900 million in 2018. a 37% jump when important player in the market, league of legends, pulkd by tencent owned right gaims according to the new zoo ner the most watched the league of legend championship is going going on in korea, the winner raising the trophy on november 3rd last year 807 million unique viewers watched the semi fiebls back to you. >> josh lipton in san francisco. for more on the current state of esports let's bring in the contraries of one of the biggest league chris hopper is a publisher. welcome to the show. >> thank you for having me. >> you go by chopper so chopper you've been at riot for a long time you have seen certainly the progression of the league and the competition and the interest in esports

as esports goes more corporate, gets sponsors, et cetera, how does that change the look and the feel of the tournaments what you guys are able to do. >> you know, what's great about esports is we're able to capitalize on traditional sports and able to look at the decades of growth that baseball and basketball and football have had. in a lot of ways we can look at that and say how are they able to integrity the sponsor without losing what made the sports special. we are trying to do that with esports trying to keep the tight connection to players. keep them aspirational in the sense they can become pro players. shorten the loop between their game play at home ant pro play on stage in a lot of ways the sponsor don't detract. they support sponsor coming in the space because they want more investment in the ecosystem. we have seen threads on red it's saying we want more ads giving us more because it supports the industry they love. >> how does it help riot riot spent 100 million on

esports the the last few years. >> still haven't broken even. >> yeah. >> what phase are you at right now do you foresew a team where you break even. >> absolutely when we built the esports initially it was built on a value premises to the fans. and so in a sense it was the field of dreams model. we if we build it they came. and they did millions came. but we never thought about who pays to keep the lights on in the cornfield we are dealing with that. we are working with sponsorship, getting better distribution and content deals. leveling up the monetization element. bus we wanted to avoid putting the burden on the fans it would have been esz to slap a pay wall on make it pay-per-view but we wanted to remove the economic burden to increase accessibility to the fans. we are gaining the ground back. >> what are the refers you pull to increase profitability. and tencent are they putting pressure on.

>> you no tencent has been a great partner. they are the esports operator in cheyenne they are operating the chinese league lpl one of the most successful in the word world the we are trying to get content distribution twitch, youtube, spp plus for content out. different regions globally work with others depending on the region and for us it's about finding the partners to work with who are helping us monetize against the value the audience brings without pushing the economic burden back to the audience. we announce add global partnership with master card that's been received and acer, state farm, mikes this year and we have a lot on the plate for 2019 that we are excited about. >> we hope you come become and keep us posted. >> love to. >> chopper of riot. >> klopper is the man. >> interesting, you know i think the demographic for esports, players and viewers is pretty finite also the netflix and spill court

of category. i wonder if at some point we see this as it's just growing crazy take its -- take some share from some of the other forms of entertainment. i think it seems like it's here to stay. but the most interesting thing is like the advertising opportunities, the sponsorship opportunities are growing that's ad pie. >> coming up a semi smack down within the once high flying group down about 6% in the last month. could be more pain let's get a sneak speak will peek in the "mad money" studio tonight jim talking about why the fang names cld boue gearing up for rally more "fast money" still heyde.

welcome back to "fast money" with earning season in full gear there is a beaten down chip stock that could see interesting movers dan is at the plasma to break it down. >> taiwan semi, mel, this is a big one for the space. taiwan semi had a big move off the lows still well off highs mts options market is implying a 4% move in 2001 one dwreeks for taiwan semi. taiwan semi is the largest holding of the etf at about 11%. look what else is in there intel at about 11% and all the other big daddies, the smh, implied move is about 12% between now on the end of the week what's interesting about the smh to me is that you have a scenario where taiwan semi's earnings are important because apple is a 17% customer

of theirs, the largest customer is broad kochl, qualcomm pb amd, in individually, texas instruments all skpers of taiwan semi this dictates the next move. but today in the smh there was buying and puts looking out to november capture all the semi conductor earnings, 3,000 of the no 957 puts bought at 19.43 average. go to the smh chart why i think this is interesting. we've been talking about it a while. it's been topping out, right been moving down in this downtrend, the better part of 2018 look where it stopped the other day. 95 seems like big support for 2018. that may be protection below 95. >> thanks for that, dan. more "options action" check out the full show friday 5:30 p.m. eastern time up next the poll results on the pitch and the fil ad natres see that's funny, i thought you traded options.

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a sowers question you know what pete likes to extreme on netflix. tony braksen don't break my heart because america is not buying pete's pitch. >> time for the final trade. >> pety. >> you know, sorry guys but i'm going there again. netflix. i think it's going highe >> giddyup. >> there tony braxton. >> love asia tech, love tencent, not taiwan semi.

tencent, thank you. >> dan. >> i actually see no reason to buy netflix especially up 80% on the year look at this. >> take the final trade appear shove it. >> pmy that does it fo my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. for weeks now, i have been telling you we are in bizarro world. where good news is bad news. every time w