great to have you with us. >> great to be here. >> more to come, including the disney earnings call we have the highlights of that throughout on cnbc how did the show before us end who through to us tyler mathen >> is who picking up next. >> tyler math sfloon because "closing bell" is done "fast money" starts now. and thank you guys "fast money" starts now live from the nasdaq market site overlooking times square i'm tyler mathisen in for melissa lee. i'm not in kansas. pete narj. brian kelly, dan nathan appear guy dmaum dma yup process we are all over the big movers. drop box active vision all reporting earnings moments ago the conference calls under way and we bring ut the latest details on that. and tom rogers is here to give us his reaction to disney earnings and what it means for the media space and the future of tv and entertainment, how we

consume it first the big story of thedy the federal reserve keeping rates where they have been and saying it's on track to continue raising them steve liesman is still down in washington i told you to get on the train, steve. >> you didn't tell the producer of the show, tyler. >> no, i will put in a good word. >> jason if you could send a note but meanwhile let's talk about the aforementioned federal reserve which kept the rates unchanged in the november meeting. the range is 2 to 2.25 rate for the overnight funds rate but did signal the rates will rice meaning probably another quarter point coming in does maybe higher since we last checked and you can see the outlook for march and september. the fed had some really positive words about the u.s. economy, repeat whag it said last time. saying the markets strengthen, economic activity rising at a strong rate and unemployment rate has declined. they said household spending growing strongly but a tweak

they made to note of the gdp report and other reports bits investment moderated from the prior rapid pace the fed sees inflation near the 2% target. okay all of this sets up a potentially fraught meeting for december where markets expect the fed to hike. but president trump as you know has complained that the central bank is moving too fast. undoing what's done by the tax cuts to speed up the economy fed officials argue that the current rate is low enough to still be stimulating economic growth given the high rate of growth and the low level of unemployment any say policies should be, at least neutral if not a bit above neutral. but those guys will be the question for december and 2019 i don't know maybe we want to debate them now. >> the question for me, steve, is whether the fed could not not raise -- could not raise interest rates in december after having been jaw boned by the president? if they didn't raise them,

wouldn't they be accused of caving politically. >> let's do one of the all things being equal, tyler. let's say the job numbers come in does, strong, let's say inflation rate remains higher. i think that's the case. i think the bar was high to begin with for the fed not to hike and i think president trump's comments make it a little bit higher i think if you go back there was a reason why president clinton, president bush and president obama all decided not to comment on the fed and this may be the very reason. because when you do so when you make comments about it interest rates you raise that bar for them not to hike. >> all right and now go get on the amtrak, steve. steve liesman, thanks. despite all the worries over the fed's next move the dow managing to end in the green as you see on the chart up and down day. stocks slowly but surely climbing back to from october lows the do you up 7% since then less than 3% away from the

all-time highs but not much changing since october. the fed is still raising rates preponderates are still rising and trade fierce are looming what does the market think is different now, mr. adami what's changed in. >> before we start, we've been doing in a long time right pedro. >> 20u7 2007. >> this is your maiden voyage. >> this is the first time -- i haven't had so much fun. >> never seen you look sharper. >> it's like a party here. there are people all over the place. >> what's happening here it's 5:00. >> there is beverages out there. >> beverages of different kinds. >> i work on a show call power lunch without power or lunch you guy guys serve fun and food. >> if there was a mt. rushmore of cnbc you're on it. >> rur you're right given the choices. >> is anything different. >> i don't think it's dinner at all other than the fact that the markets come back in a significant way. when the s&p was down a couple weeks ago. mel looked at me and guy, what

do you think. >> i think we got 8 or 9% downside i said really. it got down about 11 and a half%. i thought another 3% i was wrong. with that said the had headwinds are there. you talk to steve liesman, the fed still in play on your show at power lunch you talked to the person who said if the fed doesn't movie in december he said it's catastrophic those headwinds are still in place. >> i think the market has change a bit. the selloff we had in october told you that equity investors think that the economy is slowing down but you look at the bond market, the bond market is tell you all signs are great. everything is fantastic. so either the bond market is right or or the stock market is right. and we haven't hit new highs in the stock market i think something changed. >> tan, what did the market need no digest in october that's different now? if he is right and they were worried the economy is slowing

down they should be worried the economy is slowing down. >> i think b.k. makes a good point. when you look at equity markets the world over ours are the only ones up. europe and asia, they're considerably in correction territory. global investors have been pricing an economic slowdown for some time. the u.s. still has been this really interesting of pocket of positive sentiment process when you think about the maga, motorcyclist, apple, google and amazon thp petition made up 3.5 trillion in market cap and making up a disproportion knit amount in the u.s. if you think about it threw the lens of equity investors you overlay the 10-year back at 3.23 the dollar index breaking out back towards highs close to 97 gep. there is a lot of potential headwinds. then throw in the situation with trade. that's a thing that has the ability to really damp down go global growth. >> and trade is what it's about

in my opinion. >> is the election matter. >> it it because it did prove that a lot of people said well it's priced in the markets, tyler. clearly wasn't with the kind of move we got yesterday, right now today is still trying to digest everything. you are now focused on fed and the fed -- they've been so transparent. they are going to raise obviously in december. probably two to three next year. but any still will be looking for the data and be data dependent. the real trade is are are we doing in terms of the trade itself, the tariffs? that's what i think the market is trading off of now. on positive days it's because people feel like, you know, president trump has finally going to sit down with xi and work something out but that's what everybody is focused on the fed's transparency gets less ugliness in terms of the the markets right now. now people understand there is checks and balances, house and senate, different sides, check with the president for sure. and that's going to keep it somewhat in line. >> all three of those matter

trade matters no question. >> number one. >> but the fed matters too because gwen, the fed -- the market tells you the fed may be making a mistake adding the dollar as dan mentioned. you know what i feel the dollar is the vix the higher it fwoes the more risk in the floebl economy all three, we argue about which one, it's all three of those that are a concern for the market. >> i would add one other point october is volatile. november has the potential to obviously be a consolidation phase. when we get close to g-20 and if nothing comes ut regarding trades expect aches are high. that's a huge mistake or investors and then you get to december 19 and the fed meeting. they had a small statement today. >> they are going to have a press conference. >> they are. >> and every meeting after that. >> the december has a potential for a volatile month. >> you don't want to talk one, two, three, it's 1 a, b abc on importance but tariffs are important. but with he with he see say our president is ready to make a

deal there is a deal i think that's incorrect i don't think the chinese are in a rush to make a deal. nor should they be and president trump will say correctly the markets are down 30%. ours down four or five%. threw his lens we are winning. but i don't think that's what the chinese look at thp they are playing a. >> they can play a long game they can play a long game and take more pain i would -- person to person. >> but they've experienced pain already. they have felt some of the pain. and they would want to sit down and try to get something figured out. and the fact that we don't have anything figured out right now, tyler, that's what we really heard from the industrials right. when we went through the earnings season so far, 75% through the s&p earnings when we have gone through it that's really backup the concern right now has been there is no visibility going forward for a lot of the companies so their guidance is difficult, cloudy for everybody to read through. >> feels to me like the story of 2019 is going to be not necessarily in in order, trade,

number one, interest rates, number two, and how the markets react to probably decelerating correspondent profit growth. >> yeah. >> there was one statement in the statement everybody said was a big snoozer. cap ex corporate cap ex that was the thing did he krerlted from the first half of the year the things that were targeted at the end of laugh year. if we anniversary those into the beginning of 2019 that's a huge, hunl problem especially now you have the divided government and you don't have the potential for the sort of tax cut that could get things juiced the way we did the first half of the year. >> this is fun hanging with you guys >> fun hanging with you. >> very, very good. >> team ex. >> our next guest says the market is hovering near. todd gourd isn't at the plasma plasma to break down the charts. what do you see. >> a lot of discussion going on about the 200-day moving

average. and a lot of people get exepedite excited about that the do you boy or sell this chart says do neither be aware you are in a period of conflict to put it in context this is the s&p since the credit crisis low i'm showing you three examples of a attacking the 200 day and consolidation. number one is around 2010. again here in 2012 a third time all the way up here in 2015 into '16 what you see is each occurens lasts approximately 92 days, 100 days, 144 days what does that mean to the current market situation i would say the first time we have attacked the moving average, the 200-day is around october 10th if history is any guide to what's happening in the future, you tack 100 days on october 11th that puts you roughly into march 1. what could that mean with everything you are talking about on the desk? it could mean a period of very

high back and forth consolidates, whip shaw nightmare for investors maybe a good opportunity for traders i would say don'ted try to traed the breakouts orp breakdowns you have to be nimble. if we are scooping long there is two two strong sector. consumer skrergsary. xly. the 200-average. snapping back above it i'm not looking for the breakout but you nibl traders could test up back up to the highs at 115 the relative strength. taking the s&p divided by xly, the consumer staplingles you soo he this ratio turn up yb consumer discretionary outperforming the s&p. you have azmodan, home depot, the three holdings in xly, all coming back here led by xl -- sorry amazon at 20%. the other one no surprise. this is a clean strong chart health care, xlv

we couldn't get below the 200-day. maybe we have a consolidation forming an inverse head and shoulders that might have the the ability to break out i like xlv and xly. >> rocks looks like a demonic some bell. >> "fast money" there you go. >> i got a quick question, todd, the first chart, the s&p 500 100 days out to march. you see volatility accelerate back into the march in the 28 large movement we had now back to 16. but you're expecting volatility spike back up above 20 again maybe even over 30 from the looks of the chart. >> you are talking vix be, right. >> yes. >> i think 12 is the new 20 in the vix. this is trading days this is not calendar or woks you're talking 100 trading days.

maybe the new norm is the 20 vix support. we could have a really period of back and forth in the s&p. as the trader stay nimble. use options. with you expect high volatility to stay. >> todd gordon of trading analysis guy what do you think more volatility. >> without question. i think pedro would say the same thing although the vix is now below 20 i thought the vix would top out at 30. let me mention a specific top. todd, mcdonald's, we have been universally extraordinarily bullish on mcdonald's for god reason stock has been unbelievable. i think it made an all-time high within the last couple days if not today. you look at margins, outstanding, the last quarter great. at a certain point valuation is going to be mattering. and at close to 23 times next year's earnings in my opinion, mcdonald's might be getting ahead of itself and a lot of stocks find themselves in that type of -- in that sort of circle of maybe we should taking profits here >> i think you got to be tactical what i take away from what todd

is saying. you're in a market that's not easy to trade. it's not going to be like the last several years you got to take profits when you have them and boy the dips when can you. and just trade around this market you have to be tactical. >> this goes by really fast, guys coming up check out shares of disney jumping after reporting earnings we tell what you bob iger just said that has shareholders excited. plus a new driver at tesla, as the case company names a chair over elon musk who is she and what does it mean for the stock. >> we explain and later retails ripping higher but could the group be heading for a black friday details we have the details. live from times square no new york city. and much more "fast money" right r isbreak.

♪ whoa! (phone rings) daddy, mommy's on the phone! hi! how are you guys? at&t proudly offers wireless and tv discounts to military, veterans, first responders and their families. visit att.com/hero.

[ready forngs ] christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone.

...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. all righty welcome back to "fast money. the question on every tesla lover's mind just got answered one longtime brody member has been appointed to take the chairmanship taking the reins from elon musk. phil lebeau has more. >> the new chairwoman much tesla is robyn denholm she has been on the board since 2014 she is the current cfo of a telecommunications firm in australia. leaving that job to take the full-time job of tesla ceo former toyota executive.

she is no dumby. she understands the tesla and auto industry. but it brings up the question what does the future hold for elon musk? and what will his role at tesla be like niepow that there is someone other than him in the chairman role. remember, he remains ceo of tesla. while robyn denholm and elon have said this is great we work together still marching to the drum beat of elon musk in other words robyn denholm will be engaged and everybody who identified talked to today familiar with her says look she is a good chairwoman at the end of the day this is still elon musk's company. and elon musk still holds massive influence in terms of the direction of this company even as they look to add two more independent directors finally look at shares of tesla versus the s&p 500 we are looking at this the last three years. the reason we bring this up is because mccory is out with a research note saying it's possible that tesla could get added to the s&p 500

this is not happening overnight. remember, to even qualify to be selected for the s&p 500 the company has got to have four profitable quarters in a row they had the first in the third quarter. elon musk says they are profitable from here on out, tyler. let's see over the next this quarter and first and second and third and fourth quarter of next year nonmaybe the conversation about the s&p 500 can be revisited >> phil, thank you very much b.k. what do you think this does to the stock i mean, musk is still, what the number one shareholder rb right. >> number one shareholder and also this person was part of the board. that's been part of the problem. they're the one nas oversaw in meltdown and didn't do anything about it i would call it a half step. a lot of people including myself were hoping there would be something like when sheryl sandberg into facebook you have to have somebody independent. the board is the issue here also and elon is not getting rid of

this company. >> she is kind of an inside outsider would they have done better to go outside do you know, thought. >> if somebody like tom rogers for example who is on the show later, if they tapped him on the shoulder the stock would be $500 a share. there is somebody on squawk box saying this is the next trillion dollar company i'll say this. i'm not going to pretend i've been right the last couple months but i haven't been. but if you look at the tesla stock was doing before elon musk tweeted funding secured backup that stock was going straight up the trajectory was higher. the last quarter should have built upon that. and i asked gene munster this. i said gene if you can back out the forra would the stock be trading 425? he said it would be given the last quarter. >> since that moment in the summer where blurted that out and then the interview with the, a and then the podcast with roguen it was down. but that has come back.

>> the most importanted podcast was the with rick an he got into detail there is an issue with that conversation, too. he said that they expect to be profitable from here on out. in stock has just gone from what 260, 270 up to $350 now. all of a sudden expectations very high again. i don't think that's the messaging that they need at this point. because you are just setting up for failure. >> all righty, for more on what's next for tesla, head over to cnbc.com. in the meantime, here is what else is coming up on fast. ♪ >> mom is always right and that's exactly what retailers are banking on for the holiday season with more deals than ever. but will the dash for discounts crush the stocks plus it's game on. as the biggest gaming stocks in the space try to take on fortnite but the traders think there is only one stock that can be called the gaming king we wl llilte what you it is,

much more "fast money" after this rebekkah: opioids has taken everything and everyone i've ever loved away from me. everything. i blew my ankle out and i got prescribed pain pills by my doctor.

if making my detox public is gonna help somebody i'm all for it. i just wish i would've had a warning. 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]

espn had its best quarter in quite a while in terms of sublosses. and what we are seeing there is continued erosion in terms of traditional subs but the growthen and in the original continue through the year and through the quarter. the sublosses abated substantially. >> that was disney's chairman and ceo bob iger speaking with julia woortsen after the company reported a earnings boat the stock up 1% after hours. pete you've been a longtime disney holder, booster what do you think. >> i like the the number numbers they put up. for espn that was something held out for all of us saying look at the crown jewel but the problem is the erosion

with that slowing that's something positive they crushed the earnings. crushed on revenue i think what they are doing is right. were they late to going to the direction to the compete with the netflix of the world absolutely but the acquisition they made is giving them a hunl piece of hulu which is great there are positives now. but going forward still love a succession plan in place of some sort that we don't have any view of right now and the other thing is how fast are they going to roll out the competition to get into the face of netflix in the future i think it comes along quickly now. but it's been a long time come. >> we had on two people earlier today, on power lunch, one of whom said the stock is going to 95 appear one said the stock is going to 150. >> the 95 days are in the rear view mirror for a while. back in the spring in stock was floundering, trading the $99.5 a few of us in themyle melt sitting it announced that gambling was legalized we talked about it on the show

that might be the life line for disney whether justified or not the stock rallied 17, 18%. the espn woes are largely behind them now coming down to valuation. are you comfortable with disney at 16, 17 times forward multiple with the rest of the space is probably half of that. >> and august of 2015 when the stock topped out near 122, trading above 20 times here you have a lot more clarity on some business that is were really putting the stock under pressure where did it go down to 80 something? at this point in stock is making a new high with the stable market here. it has a reasonable valuation and they changed the narrative a bit. once you get the other acquisition done you have the chunk of hulu. they can talk about the future as far as how they deliver the content. >> let's bring in tom rogers abmedia executive, the first president of nbc cable starting cnbc also the former strategist abcurrently executive

chairman of wynn viewen a a cnbc contributor good to have you here. >> thank you for the intro. >> pete made the point they moved into streaming but maybe not fast enough. is that the way you feel. >> well the biggest issue disney had this quarter is stopping people from spreading the ashes of their dead relatives around the disney parks but the stock is clearly not dead it's alive as pete said. mariosaid earlier. >> he did. >> he thought as much as 200 in the next two years but i don't see a new life here. the sports story is optimistic, as he was about espn, churned for the last quarter, germly was terrible people thought it was getting better in the third quarter churn across the industry worse. dish and director tv a third of that churn was horrendous. the new skinny bundle digital guys are not making up for that.

i don't understand the optimism. >> and the cord cut something still happening. >> it's still happening. >> it's here to stay. >> you're going to enup paying for more for sports rights. >> to guy's point, the big savior for the sports networks and people involved in sports marketing is this massive new source of gaming revenue and gaming gambling revenue. >> bank are bang. >> they inherit through the fox acquisition about 10% of draft king but my prediction is disney because of the disney brand is not a first in mover. >> that was what i was going to ask you. >> and that's -- that's not grabbing what's there. >> it seems to me that there is an opportunity -- you guys jump in here. there is an opportunity for a dedicated sports betting channel. but i don't know that that fits with disney's brand. >> well, it might be down the road i don't think they're going to move quickly and you know first mover means a lot in any of these businesses i was surprised at julia's earlier interview that the fox acquisition got very little

mention. that ended up being a smaller deal than it looked like they are getting about 30 million of the -- $30 billion of the 70 billion in consideration back by the spin off. >> sky. >> and other assets. but they end up with no sports story. they get rid of the regional sports channel justice won't let them own process tp the expansion story with the european storts sports isn't there. he mentioned nat geo but they don't make netflix. very interesting commentary out of todd younger, the great media analyst out of bern ernest that disney was beginning to look more like it was creating a cbs all access than new flet flicks. cbs all access going to be happen happy with 16 million subscribers the next couple years. obviously netflix that is 100 million growing to 300 pl. if he is right that's a different game i was surprised in the interview, iger didn't say with

the new studio superpower within the only studio superpower out there that they aren't expanding the number of films. if they're going after netflix you would expect the expanded film slate i didn't here that the the earnings dilution people worried about putting down $14 billion in new programming costs the way that netflix is spending by the end of next year. but you got to have more modest ambitions about what this thing looks like i didn't hear a new life stock's alive great consumer kpee the parks will do fantastically in that. but it isn't transformational. >> in terms of the gambling and guy brought it up. when they talked about the gambling you are involved in that world how big it is? should they be more aggressive with that in terms of the approach from disney. >> i don't think there is any doubt you got to be aggressive you got amazon, google, facebook all looking at sports right.

if you are a leader in sports rights and you are worried about declining ratings and subscriber view are fees and you need a new revenue rights to be the front bidder the last thing you want is the big source of revenue to somebodyelse >> one of pete's -- >> fight for it. >> jump ball. >> no fight here. >> video game stocks got annihilated in the last couple months when you think of the grab for content the last couple years do you think disney would move into maybe electronic arts? do you see the potential for synergy as we see with esports. >> i think esports is going to be huge. i think esports as an opportunity given the demographics that actively engaged in esports more than television sports viewing, certainly if i was looking to expand to sports franchise i would go heavily into esports. you know most of the successful games. big money games are shoot them up games so far. i'm not sure that's going to

change near-term "fast money" but over the long haul i think esports is huge. >> pete mentioned this bob iger synonymous with disney. is succession plan important in your mind in. >> in terms of the transformation of a company succession plan is everything. i think you really got to understand what you do to maneuver through a thicket of massively big companies just in the sports right arena the guy bidding on sports and not bothering the bottom line at all relative to how it impacts disney the thing is in great shape. the stock is alive mario is as good a stock prognosticator as anybody. i think in terms of long-term transformation succession means a lot. >> great to have you, thanks for being with us. coming up check out active vision, blizzard plunging in the after hours and the gaming stock is stuck in a

bear market despite blockbuster sales. what gives we hear from the ceo plus retailers have been soaring. but with the holidays some of the biggest players could be diving right into major black friday backlash. say that five times fast we will explain much more "fast money" ahead

welcome to emirates mr. jones. just sit back, relax and let us entertain you... ...with over 3,500 channels of entertainment, including the latest movies and box sets from around the world. ( ♪ ) we even have live sports and news channels. ( ♪ ) and your free wi-fi will start shortly. enjoy your flight mr. jones. world's best inflight entertainment. fly emirates. fly better. all right. welcome back, everybody to "fast money. retail stocks ripping hair ahead of super bowl of shopping of black friday

some of the biggest players pulling out all the stops to lure in shoppers let's go to courtney reagan with the details. courtney. >> hi, tyler in year retailers black friday plans are about voens and offering online deals weeks in advance. wal-mart is offering helm almost all the black friday deals online on wednesday, november 21st at 10:00 p.m. eastern time. that's 2 hours earlier than last year and hours earlier than targets's online door busters starting early thursday morning. in store wal-mart's deals start at 6:00 p.m. thanksgiving day, the same as last year. process but shoppers can fuel up with free could have pea appear cookies starting at 4:00 target opening at 5:00 an hour earlier and staying open an hour later than last year best buy, kohl's macies opening at 5:00 p.m. jcpenney

leads opening at 2:00 on thursday evening both will have associates with mobile technology to lessen the time you wait in line. amazon, target and best buy, they're waiving minimum purchase for free shipping throughout the holiday season wal-mart is sticking with a $35 minimum for free shipping. kohl's sticking with $50 and macies at $99. wal-mart and best buy are offering door buster deals online today other retailers have done similar. this year, those goal posts are moving stores are opening earlier deals are being offered online earlier than ever before and shipping is-free and getting faster tyler. >> all right, courtney thank you very much. when all the wheels and deals may be great for the consumer, could it actually bring the retail rally to a screeching halt pete, i will never in my life go to anything called a door the buster i promise you.

i never do did. >> i am the king of door busters black friday all the way baby i'm that guy. >> black friday is not wednesday. >> i tell you what's interesting. alt of the guys offering the ecommerce, the online, a lot of the time it's order online and pick it up they can get delivery too. but people like to go pick it up what do they do? they end up shopping at times. you are still getting people often times in the stores not just the ecommerce eystad. but getting them in the store for one other item. >> the deals are great, the free shipping is great but maybe not great for the company. >> i think you are asking the right question we are seeing this stuff about employment record lows, wage increases but also now hearing about all the things that are kind of getting consumers to buy earlier, giving enemy free shipping all this. i have to think for the retail stocks this is the last gasp as far as into this holiday season we are going to see real -- a lot of just discounting and see pressure on

margins because of the-free shipping i think you fade this rally. >> i think you fade it look at what really started this retail rally short covering the big trade this year among hedge funds was long amazon, short retailers like a macy's. on the lowest lows at the end of the october you say o saw macy dr. platz. amazon ripping people unwinding the position. i don't think there is a lot of fuel behind this then you get into the black friday price war even preblack friday sales that's not the direction you want to go >> fade the rally. b.k. thank you coming up drop becomes and active vision on the move after the calls and what was said about the latest call of duty game, meant to be the fortnite killer but did the battle royale modeiv le up to the hype we hear whether the krae says. more "fast money" after this

there is a lot of misbehaving that fwoes on here during the break welcome back to "fast money. activision getting crushed on earnings a month after the video game giant took the fight to fortnite with the latest titles in the call of duty franchise dedra bosa has the results of the call from vancouver. dedra. >> hey, tyler, shares sinking in the after hours on the holiday outlook and dropping the maus for the third straight quarter

to 345 million from 352. million. the activision mau up. this is the title you mentioned call of duty black ops four tp thp petition pressed the developer on black ops four performance. have a listen. >> our engagement to date is better than any call of duty content in years and spectator viewing higher than ever before. as a franchise call of duty has generated more revenue than the marvel cinematic universe in the box office and double that of the cumulative box office of "star wars." >> so impressive numbers but this latest call of duty release is so important to the company because of its blackout battle royale mode the answer to fortnite's run away success in october the company said the global sales exceeded half a billion dollars in the first three days but that disappointed investors who wanted more activision

plifrd saying they are energy i see eyed by the performance. but fortnite killer, that remains to be seen and it doesn't look like investors are convinced of that yet. >> for more on what the results mean for activision let's get our game on with michael sepso he is a former svp at activision and the cofounder of one of north america's first esports investigation. also an investor in activision what was the most important things in thisearnings report. >> i think people are missing the digital transition with that the sector is doing. >> away from buying discs in a store. >> we are thinking about unit sales that toents matter anymore. if you listen to the management it was about reach, nanlt naijment and player development. how long they staying in the games and how are they spending in the game it's not what's being sold a game stop or best buy. it's how long are they playing and buying in the game the other thing i took i think everybody missed this projecting over 4 billion in revenue this

year from ingame purchases that's more than half the total revenue mix. these that's the first time that's happened. this is huge. >> this is what happened when my son comes to me and said, dad, dad can i buy this and i said well you already bought it. and i have no concept that what he is really buy something some sticker or slick or some additional powers, right. >> yes. >> that's where the revenue growth is. >> that's where it is. the industry is moving that way. and the marlanaens are better if you are not going through the physical brick appear mortar direct to consumer they have the data and closer to the consumer. i think the other important thing if your son plays fortnite. >> he is. >> the battle -- the battle royale games, the people that are at home playing blackout paid $60 for it filber initially then this they buy stuff in the game the people playing fortnite it's a free download game it's a massive difference in the middle activision is doing a great job. >> if the revenue numbers are as strong -- mr. cottic talked all about that and you just cited

it, why did the stocks and my word my son would use, suck. >> whoa. >> bringing it home. >> i'm quoting him i would never use such words. >> i got to go with that i'm perplexed i don't know i'm looking at the sector and thinking i can't believe why this isn't a huge buy opportunity. take 2 did earnings yesterday. the digital sales up significantly. the new red dead redemption is a great game performing incredibly well they have an esports with the nba 27 game. i think the last guess said esports is going a producer i've been in the industry the 16 years. activision invested more than anybody of all the public companies in esports and they have the greatest product out there i think right now. >> the floor is open, gentlemen. >> dan danced around this earlier with tom rogers. but by the way tom rogers is a

stud are we. >> if i can say the other s word. >> dan talked about this these stocks are getting cheap even on a valuation basis. is it disney or somebody out there looking at these my question is electronic parts precipitous dr. platz if activision precipitous dr. platz. take 2 as well are they for sale would a company come in and gobble these up. >> i don't know, i guess disney could at theright size but i think when you look at -- so there is a difference between the stocks take 2 has a couple much huge titles huge franchises, the original ip they own 100%. activision ip incredible franchises be ka call of duty inheritically has done double the revenue of "star wars" box office historically. that's a huge franchise to own that's amazing ea is different. listened content i don't know if they're as big a buy opportunity or maybe because of the kind of content they are listening especially "star wars," if it becomes more of a buy opportunity for disney

you know, i think activision ambition is to be the next disney, not acquired again, i'm looking at you guys, why is this sector down so much? what's the trade. >> i'll hit you here we saw the monthly active users when you saw that turn down a few years ago in twitter, the stock was cut in off it depends how the stocks are being viewed by investors as milestone. if they are trying to get away from units we saw this with apple trying to do this, there is a bit of a period where people start to digest what that new business model is. >> all right, mike thank you very much. let's trade the sector what do you like b.k. >> i'm with mike on this i think it's a buying opportunity at this point particularly if you are talking about a longer term play i mean we are talking about espn is now covering egaming. bobby talked about the audience. people aren't just playing they're watching it's a massive market here i think on any week you should guy them. >> thank you, mike appreciate your being here. fantastic. speaking of the game stocks

check out the cramer cam, the mad man himself speaking to the ceo of take 2 about his company and staying ahead of the competition. tune in at the top of the hour for that but check out shares of drop box, the cloud company soaring after hours. could be a sign for another -- good sign for another name in elaspace. wexpin as "fast money" picks up right after this. r. dealing with millions of customers a year, like this one. no, i'm pretty sure i didn't order a squirrel playing a guitar. that's why you work with watson. it works with your systems to resolve calls faster and improve customer satisfaction. i detected fraud and helped reassign a new credit card. honey, they're overnighting us a new card. woooo!!! woooo!!! for ai that works with tools you already use, choose watson. hello! the best ai for the job.

hello! at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't. because your cto says we've got allies on the outside... ...& security algorithms on the inside... ...& that way you can focus on expanding into eastern europe... ...& that makes the branch managers happy & yes, that's the branch managers happy. at&t provides edge-to-edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when this happens you'll know how to quickly react...

[ready forngs ] christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone. ...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. all righty well back to "fast money," everybody.

got the earnings alert dr. platz box soaring after hours. following the earnings report. josh lipton sat down with the ceo drew houston at the company's headquarters out in san francisco hi, josh >> tyler, so drop box reporting paying users 12.3 million in the quarter. also arpu. average revenue per paying user. 118.60 in the quarter. stronger than expected i sat down with drew houston and i asked about the metricspectively what explained that strength in the quarter. here is what he had to tell me. >> we see that as a measure of how much value we drive per subscriber and the way we drive value per subscriber is make the product better there is improvements we made in this quarter in the last few quarters and you think about new features in drop box like smartening sync and those are driefgt higher and higher option of the premium individual plans and business version of drop box.

>> now on the call the company cfo also giving guidance q 4 revenue 367 to 370 the street was at 364. also the cfo saying they are raising guyedens for the year on revenue operating margins eand free cash flow. >> the stock up strongly right now. but down 13% or so for the year. guy would you guy it. >> yes i turned to dan and said if you get comfortable with valuation you buy it one because of the selloff and two, josh by the way who is -- are you a fan of magnum p.i. josh liptak isn't tom selleck reinkarin eighted but digress. >> minus about a foot. >> and he says. >> just a mustache. >> it's ridiculous. >> it's ridiculous. >> i'll tell you what's ricked the operating margin close to 13%. street looking for 8.5%. it goes higher >> that's what you're buying, you buy the growth don't worry about the valuation as long as you have the growth if the growth goes away you have a

problem. >> drop the drop box and get into the box that's been slayed i see a massive opportunity. box. >> box. >> the speaking of the cloud stocks options traders are betting on even more gains for another name in the space. salesforce dan. >> we the got. >> take us through it. >> invented the enterprise cloud here salesforce.com. call volume is two times puts. and there was the active strike where the december 150 call about 3,200 traded an average of 3.50 through the day a lot of those looked opening appear bought. possibly the earnings in about 20 days they report the q 3. that's a tough way out i'm sure pete agrees to look out that far out of the money and be buying calls in a name where option prices are very expensive. real quickly maybe why that 150 strike we have a 1-year chart process. that went into correction, down 20%. peak to trough broke down at 150 look at where

150 is that's the intersection of the upfriend from the 52-yoke lows and the breakdown level that seems a level that traders target into the q 3 print at the end of the month. >> bun of the best ceos of anybody from is benoff i like what they are doing amazing job of spending money when needed and acquiring companying the cloud numbers, this is the number one. >> number one pick thank you very much for more "options action" check out the full show tomorrow at 5:30 p.m. eastern time "optionsctn. nt,in tdes.io what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums.

and yes, it's all at one low price. td ameritrade. ♪ whooo! want to take your next vacation to new heights? tripadvisor now lets you book over a hundred thousand tours, attractions, and experiences in destinations around the world!

like new york! from bike tours, to bus tours, to breathtaking adventures, tripadvisor makes it easy to find and book amazing things to do. so you can make your next trip... monumental!

love this time for the final trade. let's to around the horn pete you first. >> nobody better out there than lulu lemon this is going high sfleer all right b.k. >> you know people don't like oil. countertan xlp buy that. >> pete had the lieu yous in bunch. >> no, they don't bunch. that's the beauty they don't. >> at leisure go with nike above 80 before the end of the year. >> at leisure. >> how much money do you have? how much money tell them -- tell the audience. >> i love this this was awesome stuff. >> crazy like two shakes of a lamb's tail. >> goes so fast. >> you know what's going up fast. >> to me tell me. >> discovery communications. >> a little disc o

thank you very much, gentlemen. >> great, tye. >> i had fun "mad money" with criminal gym cramer will begin in just a few seconds time great to be with you all. >>oved 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 money. my job is not just to entertain but teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. the single best thing that happened to stocks in november was the hideous bruising that we got in the month of october.