the markets, since the inauguration, the s&p 500 is up 20%. since election day it's up 27% so he still does have that to show. >> which is in line with the historical returns of the u.s. stock market, 10% a year. >> but the dollar is down, which is another interesting -- >> guys, thanks for watching. >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking times square, i'm melissa lee. tonight on "fast," disney jumping after a big earnings beat as the call gets under way. tivo ceo tom rogers will weigh in on the move and he has a few words for ceo bob iger. stocks on a slow grind higher the dow rallying 170 points to its highest level in two months. this as the s&p 500 closes just pennies beneath its 200 day moving average but we start off with the

state of the union just hours away, as president trump is getting ready to address the nation with a number of key issues like trade hanging in the balance, what should wall street watch out for? let's get to eamon javers at the white house with more on that. hi, eamon. >> reporter: hi, melissa i taugd to the vice president about this briefly yesterday and asked what we could expect to hear in the state of the union, and he said a lot of good stuff about the economy. so watch for that. otherwise officials are relatively tight-lipped about any announcements. one thing we'll watch for is wlorc whether or not the president announces a date for his upcoming meeting of kim jong-un of north korea he suggested that the two leaders will get together at some point, not clear exactly when that will be. we'll watch for that tonight as well aides are walking us through some of the themes in tonight's address, some of the issues the president is going through, starting with immigration, which has been such a partisan slugfest over the past month or so in washington but the administration is convinced that there is some

kind of a bipartisan deal here on this and all these other themes they're talking about tonight including on trade, infrastructure, lowering health care and prescription drug costs and national security. administration officials suggesting that the president wants to reach out in an uplifting tone here to democrats, offering some kind of compromise on each one of those issues or at least a bipartisan venn diagram with some overlapping interest between the two parties. it has been a partisan slugfest over the past couple of weeks. even today the president trading tweets with the senate democratic leader, chuck schumer. each accusing the other of impropriety here in the hours leading up to the state of the union. so the tone here not a good one. we'll see whether the president can change that tonight in the state of the union >> yeah, certainly not the same crowd that he had just a year ago when he delivered this address. when it comes to these issues, eamon, do you see that there are real -- i don't want to say possibilities, but probabilities

of bipartisanship when it comes to certain issues, like infrastructure or drug pricing >> reporter: you know, drug pricing maybe. it starts to feel like we're already so close to 2020 with a lot of the democrats having announced their campaigns, it feels like half the senate democrats are running for president this year. none of those people will have any incentive to work with the president on anything, to give him a victory on any issue so i don't think there's a lot of room -- >> even if it's a victory for themselves >> yes, even on something like, say, infrastructure. one thing to watch on infrastructure is how both sides approach the environment in a very different way the republican infrastructure bill would probably have a lot of environmental regulatory exemptions and ways to speed up the process. democrats probably wouldn't approach it that way at all. so when they get down to hammering out the actual legislation and what's in it, you can see a myriad of ways where even something where they have an interest that's common like infrastructure, they can get bogged down in the details

and not see eye to eye and not able to make much progress it does not feel very optimistic today in washington. we'll see if the president can change that tone with his speech tonight and whether it carries through the early morning tweets tomorrow. >> mr. sunshine, eamon javers, thank you. so will president trump's words hurt or help this rally as the trade deadline and another potential government shutdown are just around the corner pete, what do you say? eamon was not optimistic. >> doesn't seem to think bipartisan will be a part of this at all. i still think it comes down to the trade agreement. as much as anything out there, we talk about powell and the fed and now we're talking about the trade agreement. can mr. trump, president trump, actually get something accomplished there i think that's the key from the options perspective, it has stayed exactly the same, status quo, for about a month and a half everything is short term nobody wants to go out long term as we've seen volatility pull back, we are seeing people buy protection further out, but everybody is trading in this environment.

i'm not so sure we're in an environment where people are actually investing it feels much more like trading to me. >> it seems like a wait and see. all these things are front loaded in the first half of the year by the back half of the year in theory they should be resolved. >> i certainly would hope so i'm hoping we hear some good stuff out of the state of the union tonight. i really think it's going to be constructive i am confident that trump is a friend of the market when i heard right after the christmas eve sell-off that he was reaching out to hedge fund managers to get advice on how to prop up the market, it really gave me some confidence that he wants to give himself an attaboy and give himself credit when the market goes up so i do think we'll hear positive progress on trade i think that's the biggest thing other than the fed that could help to propel the market forward. >> you're not going to get any positive progress on trade february 15th is going to come and you're going to have a situation which could get a lot

more hairy if he does declare a state of emergency then you have a situation where it basically assures there will be no bipartisan anything from here on out because that's going to be wrapped up in the courts and they'll be doing things by transferring moneys from other places to do this sort of thing. so that's really a bad setup and that's february 15th then we get to this march 1st deadline on trade. i tell you, if he was going to shut the government down, what do the chinese really have what incentive do they have to cut a deal that just kicks the can down the road. >> because their economy is hurting sharply. >> when you literally think about it, what are we talking about? we're talking about 20% tariffs or 25% tariffs on $250 billion worth of goods or whatever their economy is hurting but they're finding other places to sell their goods i don't think it's as dire for the chinese. this is the country which has the 2025 plan. >> yeah. just a few weeks ago president xi was talking to top communist

leaders saying they need to do everything in their power to prevent political instability because of the economic slowdown that really underscores the dire straits that the chinese might actually be in. >> yeah, i agree i think this is the best hand we've had to negotiate with the chinese in a really long time. i think ultimately we'll get a deal i don't think that march 1st is necessarily a binary event i think if the talks are progressing, then we could kick it down the road a little bit further. to me the most important thing in this market is still trade. it's interesting that we see some names like boeing today, that's starting to have a lot of positive things priced into it already. it's also interesting to me -- so on december whatever the low was, this was mispriced $75 billion? that's crazy. >> so boeing above 400 buyer or seller of that? >> i'd probably be a buyer if you look at what's happened with boeing the last couple of quarters and maybe the last couple of years, take a look at

this earnings growth and cash flow they have gave out guidance and of three different pillars in which they have double-digit growth when you have a company like that trading at 20, maybe 22 times, it sounds a little bit expensive, but quite frankly with the cash they're putting off, i think it's really interesting. i think that's the big theme i'm taking away so far from the earnings season has been cash flows. it seems like the market wants to hear about cash and how much people are making, whether it's google, whether it's apple, whether it's anybody they want to know are you throwing off a lot of cash >> when the talk was below 300 a month ago, were people talking about the tremendous cash flows? i just think people are getting absolutely turned around right here you just said it, there's a lot of good news that is in the market right here. david rosenberg, he put out that we haven't talked about the baltic dry shipping index. it's trading at two-year lows. what do you think that's telling you about the global economy no one thinks that the u.s. economy is going to lead the globe into a recession right here it's coming from china, it's

coming from europe >> you said china wasn't as big of a threat and now you're saying that they are suffering mel was just talking about that. they are suffering >> but it's all interrelated so what i'm saying is people have been calling the doom of the chinese economy, they don't have to do bipartisan. it's one party, okay so they're not sweating a march 1st deadline, they're just not talk to anybody over there who does business over there. >> and there aren't elections for the most part. >> what's that >> there aren't any elections to worry about. >> i talk to people over there and they're not worried the way we are on "fast money. you're doing it wrong if you're getting all geeked up about the market on february 5th up 17% from the lows when people were giving away stocks on valuations despite the cash flows >> i would say that your vision is correct the people that are in charge are looking at 2025. how about the people underneath them they aren't very happy about that, and that's what they need to address that's why they want to make a deal as bad as we do

that's part of the reason they are in such dire straits right now. they need to get a deal. i don't think it happens -- >> he'll probably say it ten times tonight, we'll see, we'll see. >> let's get a deal. which stocks or sectors would see the most bounce? and is china actually the better investment off the back of a trade deal >> they may both be, right i think industrials are a great place to be, united rentals, something like that is a great place to be. autos have been really hurt, that would be a great place to be with google turning around today, i was on a plane but i caught one minute of jim and he said something really smart, which isn't surprising, he's very smart, that he loves to listen to a call in a vacuum, without knowing how it was received, whether people thought it was good or bad. >> without any analysis or whatever. >> not knowing where the stock trades and i thought that was really interesting because there was a lot to like in that report last night. and so if you put up good

numbers, even with the market having bounced so much, i think you'd be rewarded. interestingly, google ended up up today. >> anybody who said we've got good numbers or decent numbers but will spend money on investments, they get slammed. >> listen, it was fine the stock was down 15% but they have decelerated revenue growth and operating margins at the lowest level it's been in multiple years. >> and where is their multiple the lowest level it's been -- >> it's actually not it's actually above 20 for the first time. >> back out the cash >> we could have backed out the cash on appear foal five years when it just dropped 35% listen, guys, this is -- you know how to do this. on a pe to growth, it was trading in the teens and now it's trading -- >> i blow the whistle on this conversation we're moving on. for more on how the president's state of the union could impact key areas of the market, let's bring in former u.s. senior treasury official kim wallace kim, it is great to see you, especially on this night we want to do a little rapid fire of the key issues that

could be addressed we start off with trade. what are you expecting are you expecting any encouraging words, any revealing of the cards he's got in front of him >> i don't expect revealing of the cards, but i do expect optimism from the president both because there's a conversation being held within the administration as to what they want to do and when they want to do it on trade with china, but also because as has been stated on your panel, there are a lot of people hoping for optimism when it comes to trade because that's what most people in the markets are paying attention to. my view is that this is a much longer conversation, that the competition between china and the u.s. is multi-pronged and will not be resolved easily, and that all of those elements will impinge on trade talks you could see a conclusion of trade talks around transactional numbers of china buy that don't do anything to resolve the

underlying differences on tech transfer, on the way business is run in china, and more importantly adherence to wto rules. i also have to add that i am no longer with the eurasia group. >> thank you very much for your update and thanks for joining us even though you're not with them i wanted to get to a point that you are white house reporter, eamon javers, was making just a short time ago and that is that he didn't think there was really any hope for bipartisanship given the 2020 election is around the corner and that the dems are not looking to give president trump any sort of win. i wanted to know what your take of that was in the context of infrastructure and drug pricing. because those seem like issues that could be construed as a win for either side. >> i tend to favor eamon's view of this, as dark as it is, in large part because the work that they have to do this year on capitol hill is fiscal, and it starts in ten days it continues into debt limit, as you all have been talking about in the spring, and then it goes into the back end of the beginning of the fiscal year

october 1. the history for the past ten years has not been constructive, certainly not optimistic when it comes to those negotiations. so i think how fiscal goes this year is how the year is going to go on the issues that you raise, infrastructure spending is a favorite of everyone and all parties. my sense is that there's a better chance for an infrastructure deal in a countercyclical program, whether that's this year, next year or 2021 and on health care, that's something near and dear to most voters' hearts i think both republicans and democrats understand the power of remaining on the right side of voters when it comes to health care. and so what we saw in terms of the administration announcing that it was going to attempt to reduce drug prices by affecting people who sell drugs in between the transactions, look for more of that adjustment i don't look for a big legislative agreement between republicans and democrats on what to do about health care

policy going forward. >> all right, kim, thank you so much for your thoughts we appreciate it kim wallace in washington, d.c., for us. mark, i want to go to you. we were talking about drug pricing. you've liked health care do you think this is an issue especially since we have senate finance committee hearings in a couple of weeks and a lot of the ceos will be there >> on a short-term basis it could be an issue and cap some of these prices. when we look at a more secular trending in diabetes management, cancer management, i do think a lot of the companies that we're focusing on will still be very good plays over the course of the next few years. >> your top picks in health care. >> i still love merck, i own pfizer as well some of these biotechs will start to turn because they have to start spending that cash. quick programming note, two big interviews tomorrow starting with treasury secretary steven mnuchin at 8:00 a.m. on "squawk box" and then steve liesman's exclusive interview with janet yellen tomorrow afternoon on "power lunch." you will want to watch both of

those interviews. coming up on "fast" check out some of our big earnings movers disney is her and snap soars and electronic arts sinks. plus the stock surge off the los. one top strategist says he has three reasons new highs are coming and fast. he'll be here. later, pete stepping up to the plate to pitch one under-the-radar tech talk he says is about to break out much more "fast money" right after this

welcome back to "fast money. " we've got an earnings alert for you on disney which is higher in the after-hours session but off the session highs. let's get over to julia bore st - julia boorstin. >> the cfo warned that the studio will continue to face tough comparisons, saying it should report between $450 million and $500 million less in revenue than the earlier quarter. ceo bob iger has been focusing on disney's direct-to-consumer business espn plus has 2 million subscribers and saying he's bullish on the pcoming disney plus >> we're confident our iconic brands and franchises will allow us to effectively break through the competitive clutter and connect with consumers we'll also use our brand to help

undescribers quickly navigate the content on disney plus creating an efficient interface that enhances their experience and affinity for the service. >> iger saying he's able to buy more brands to benefit their library and saying the way the company is structured enables them to leverage their brands for digital at minimum additional costs. >> we have in the walt disney company not only a collection of brands and we're adding to them with national geographic and search light, et cetera and so on, but we have talent, both executive talent relationships and production capabilities that give us the ability to scale up nicely in terms of our output. and not invest that much in overhead or infrastructure to do that >> iger also saying he believes there's huge potential for hulu to grow. disney controls 60% of hulu once that fox deal closes >> thank you, julia boorstin in

los angeles. pete, you own disney what do you make of the quarter? what do you make of the emphasis on dtc business? >> i think that's the shift they have had to make i think we've all -- maybe i think we've all agreed that they have been slow to do this, but they finally are in the process of doing it. that's great i think it's something they're behind the eight ball right now. they still have to make up a lot of room because they are still way behind at this point. >> they're late to the game. netflix is spending $8 billion a year developing original content. that would be a significant stride for disney to make if they really wanted to compete head-to-head with netflix. hulu would help them to get there partially, but i do think they have their challenges in the streaming market. >> they're spending a lot more than $8 billion, but the billions that they're spending on original content makes up less than 10% of their entire catalog. what does disney have? they have a catalog. they're pulling their best stuff from netflix i think bob iger is late to the game the fact this stock is not down more on this guidance they just

gave, the fact that cable subscriptions only declined 1%, i think investors will give them a little time to figure this out. >> haven't they already? what has the stock done for two years? that's the problem i don't disagree with you, i own the stock. but my point is they are late to the game. >> so it traded as low as 90 something. so here we are at $113 i'd say it trades at a market multiple. >> why do you own it still sf. >> i own it because of a couple of reasons i still think iger is still as good a ceo as there is out there. he's made great acquisitions over time and that's where their bok is in terms of what they own, all these brands and everything else. i just think that the streaming is something they just kicked to the side far too long. >> now they have decided to do it, they haven't lost any position >> it's going to be a little tough tore make up that room, even if they are pulling away from netflix. let's bring in tom rogers, long-time media executive and cnbc contributor tom, it is always great to have

you with us. >> great to be here. >> can disney catch up at this point in terms of dtc? >> i think disney successfully changed the narrative here to talk about streaming i don't think things have really changed for investors in terms of the state of play what i mean by that is the traditional business, make no mistake about it, is in decline. it is truly in decline they're managing it well the results today show they're managing it well but subscribers are going to continue to decline. viewership is declining. kids viewership is in freefall that's bread-and-butter stuff for disney so overall they have a lot to manage through so the question is how big is the direct-to-consumer streaming business going to be. >> can they offset that decline in the core businesses. >> right and the thing they have got to do in changing this narrative is they have got to get away from

the netflix comparison they cannot catch netflix. netflix is going to have 170 subs by the end of the year, and disney will just be launching. netflix will probably have 300 million subs in the next five years. the best estimates i've seen on disney plus over that period of time is 50 million, and that's stretching it. remember, there are only 35 million households in this country with kids 5 to 15. that's what disney plus is going to appeal to, an it's going to be some subset of that espn plus off to a good start, but 2 million subs is one thing. they need 3 million subs just to pay for their half of the ufc, the ultimate fighting package that they picked up, and that's one sport, one rights contract so they have got a lot to prove here that i don't think helps when netflix is the bar that they have to meet in terms of success. >> let's say the street gives them some time, right? they're a premiere company and

have great management. let's say three or four dwquarts down the road, where do they need to be for you to think, all right, they're gaining some traction here, even if they're not remotely close to netflix. >> i think we'll just be getting evidence of the beginning of something in three or four quarters from now. i think it will have to be a good year and a half into the disney plus launch to have a sense of this. but, you know, they don't have a lot of their content it is tied up still in netflix it is still tied up when it comes to the fox acquisition in hbo. there's a lot of that that they aren't going to be able to pull back immediately so it is going to be the new stuff and originals. and when i hear people talking about, well, they got a lot of content, a lot of it you won't be able to rely on you don't talk about it because it has avenger, you talk about watching netflix because of the originals. i haven't heard the commitment

to original production and the kind of originals that they're going to need to invest in and to pete's comment earlier about cash and the street is looking for cash, that is a huge commitment in additional cash beyond anything i think people have really begun to model that's where the rubber will hit the road when we see what they're going to do there. >> what should iger be doing then what's your advice >> well, one, i would get into sports gaming and gambling on espn inexplicably they're staying away from that full disclosure, i have personal interest in the company i run in that sector. that's the big pool of revenue in sports. i don't understand them staying away from it two, i would lower expectations by just getting rid of this netflix comparison. >> they're not making it, though, are they the street is making it. >> they feed into it they should talk about these being streaming businesses with the potential for success without that having to be held over their heads and three, they have got to be able to manage growth going for

it the way netflix just goes for growth without having to be too preoccupied with managing the decline. when the recession hits, cord cutting is going accelerate like nobody is predicting advertising will be hit, the parks are going to be hit. we all know the recession is going to come. those are things that can really get in the way of your focus on growth and you've got to make sure your organization is prepared to continue to focus on growth all the way. >> tom, great to see you thanks for coming by. >> thanks for having me. >> tom rogers. >> fascinating we're still making the comparison to netflix, netflix had negative cash flow like $3 to $4 billion last year on that spend on original content i think if anybody is able to actually make a decision to compete with netflix on the original content, it's going to be disney. so if disney is going to have problems with cord cutting, those guys may have problems by pushing up the subscriber costs that they just did recently. how far can that go? to me i think disney is an easy one at this point.

disney not the only earnings mover. snap is soaring. electronic arts crashes on their results, down 15 p%. plus stocks soar off the lows one top strategist says the market has nowhere to go but up from here. fie find out what's got him so chorish. mu me "fast money" still ahead.

♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest. ♪ ♪ let's go from plans... to full-blown production. ♪ ♪ let's go from being on-call...

♪ ♪ to being on-line. american express can help move your business forward with loans, vendor payments and buying power. chat with one of our 4000 specialists and let's make it happen. the powerful backing of american express. don't do business without it. welcome back to "fast money. the market melt-up continues as the s&p closes just pennies below its 200-day moving average. it's been somewhat of a dash for trash as once beaten down sectors like industrials and energy lead the way. with the growth trade getting back in high gear in the last two weeks, is this a recipe for a bigger rally let's bring in phil camporelli great to have you with us. why new highs? we're going see new highs from here >> not as bullish as we were at this point last year when every

pmi and growth rate globally was going up at the same time. >> right. >> however, nowhere near as bearish as what the market was telling us at the end of last year to quote the late, great prince, this is what it sounds like when doves cry, that is a clear pivot that powell made people have talked about it a lot. one, it eliminates some of that policy error concern, that risk of the fed moving too much too blindly. that was why we took equities down it also elongates the cycle. so if you have a year this year where inflation stays around the fed's target, growth stays positive and earnings just stay positive, that's usually a good runway from here for stocks. the second is trade. we don't expect some grand plan on trade by march 1st. however, there's low-hanging fruit. one of those is just no new tariffs. that would be a win in terms of certainty between china and u.s. trading partners and i think the third is

earnings so earnings season this year hasn't been spectacular. i think 70% have beaten on eps that compares to high 70s in prior quarters there's a big difference this time companies that beat are rallying on average by over 2.5% that day. we haven't seen stuff like this and a lot of that has to do with where we are were going into this earnings season so reasons to be optimistic. >> so is it more that expectations have been reset or is there a real change -- you mentioned global pmis. that really indicated a downturn before a lot of equity markets indicated the downturn last year are we seeing an upturn, an inflection point or no >> this is like a financial conditions rally what does that mean? it means that the fed, a lot like they did in prior parts of this cycle, are taking a pause you saw today stocks up, bonds up, right? this is less of a fundamentally

driven rally that we expect u.s. growth to be at 4% or earnings to be at mid-20s so less of a fundamental story of gang buster growth, which is what we were saying last year. more of just the financial conditions environment that is positive for taking risks. by the way, china is doing stimulus as well the dollar, the fed being on the sideline, that's a positive vm story and that's something we didn't say at all last year. >> for a good part of last year off of the q1 lows the market rallied and yields rallied too and the equity markets were comfortable with that. now we've had this reversal in yields and it's happening because the fed has gotten a lot more dovish, back to your prince quote. doesn't that make you a little worried how late in the cycle we are, and betting for new highs at this pointin, i don't know, what are the catalysts >> the fed has now introduced volatility as well so they have backed themselves in a corner. if we see some sort of gangbu

gangbuster real in the s&p or if we see inflation not cooperating and they have to come back in, we're not pricing that in. we think the fed will be on the side line for the better part of this year. if that happens, that's a problem. in terms of late cycle, i think there are two rirvsks. one is holding an asset class that falls the other risk is thinking that a recession will happen in two months and it lasts for two years. we're not talking about 2013-2014 returns in the market, we're toppinging about the elongated cycle based on the fed telling us -- in december they told us we want to go a couple more times and not adjust the balance sheet, so they have made a complete 180 on that. >> phil, thanks for coming by. pete, are you as bullish as phil is >> i don't know if i'm as bullish as what i'm hearing. from what i see out here, this has been the greatest trading

environment in the last three or four, five weeks that i've seen in a long time it's been kind of crazy. the moves we're seeing in short periods of time, whether some of the faang names or industrial names, it doesn't matter, pick your poison. we're seeing movements that are very, very rapid am i bullish that's going continue probably not but i do like the environment he's talking about which is, hey look, maybe the trade is not completely taken care of, this trade war, but at the same time maybe they extendi it out and stop the tariff talk back and forth against one another. >> but don't you get back into that same box where the markets go up enough and the fed may pivot again? >> if it goes up too much. >> exactly, because of market volatility and a change in conditions, the fed can do the opposite too if things reverse. >> if things reverse i don't know how far i don't know the way to fair value. they'll probably wait a little longer he gets very excited, apparently, which is good. i don't want to trade around things but with the volatility index

coming down as much as it has, i think in the mid-teens i'm going to start buying more protection against the loan. >> so we're bullish. i do think that the fed is on pause right now. i call it the powell pause i think trade right now is the most important thing because i do believe that the fed's pause is really -- the majority of it is priced in last january we were at a forward pe on the s&p 500 of about 18 we came limping in to january 1st of this year at a forward pe down at 14 we're back almost up to 16 i think that's pretty reasonable given where the fed is at right now. now we need to see some progress on trade i don't think we're going to get a deal done by march 1st we just saw the longest punt in super bowl history on sunday of that the only exciting thing that happened. i think we're going to see a punt i don't think we'll see anything by march 1st. >> yields going down for the wrong reasons this time with crude oil pausing maybe for like reasons that aren't great for the global economy we already talked about the

baltic dry and then you think about one group that's not participated in the u.s. market here over the last couple of weeks, which i think was really important it was telling you the tale all last year and that's banks they just cannot get going since that period right after earnings so to me i think there's enough reasons as the market feels like it's just floating up a little bit more, it's right at that 200-day moving average in the s&p 500. there's enough reasons to not get in there and buy at this point because you feel like you missed out. coming up, two big earnings movers, two very different directions snap soaring while electronics arts is getting crushed. plus pete here bringing the heat, warming up to pitch one soaring chip stock he says is about to rip even higher the name when "fast money" returns. ♪ 'cos i know means♪ ♪ to walk along the lonely street of dreams ♪ ♪ here i go again on my---

you realize your vows are a whitesnake song? i do. if you ride, you get it. geico motorcycle. 15 minutes could save you 15% or more.

welcome back to "fast money. semi conductor stocks surging from the december lows up more than 22% from the bottom pete here says there's one name in the group that could break out even higher. pete, head on over to the plasma. >> i did going to head on over to the plasma. if mel tells me to go to the plasma, i go to the plasma yes, this stock has made a move, don't get nervous about that

i'm doing on semi. the ceo has 30 years of experience he's been at the company since 2002 by the way, i wrote in here the acquisitions this didn'tguy has executed on 9 acquisitions since taking over this company this is really interesting how they're building these bolt-ons an these sensors this is the self-driving car stock a lot of people don't know about. everybody knows nvidia, intel, this one is stealth and people are finding out more and more about them even though this company made a huge run to the upside, it trades at 11 or 12 pe. i like what we're seeing in this company there. i tell you what, well here's a look at the chart. you can see where this was you can also see where it's been but look at this move. don't let that move scare you. i think this thing has plenty of room to be able to get back up to potentially at least these levels call it 25, 26, something like

that the last little point that i had on that first slide was the call buy. they have been buying calls. last week they were buying huge amounts of calls today came back for even more. they were going to march 22 calls. very, very aggressively positioning for this stock to go to the upside. it's still inexpensive and they have got all kinds of growth there's a lot of reasons to like this company. >> dan has a question. >> pete, obviously it trades pretty cheap to most in its group but the consensus is calling for 6% eps decline year over year and flat sales growth so trading 11, 12 times. is it really that cheap and when are you expecting the cycle to kick in? >> i think it's still cheap, dan. one of the things is this is a china play if we get a deal, this is a name because they're so dependent on china that really could explode this to the upside and they're throwing off a lot of cash no china deal, yeah, we might see a big pullback, that's why i'm in the options right now i am not in the stauock, i am in the calls. >> are you buying pete's pitch

for on semi? karen, what do you say >> yeah, i've got to pass. you need cajones, i don't have them. >> a lot of charts at the bottom of the ocean. >> i think you did a good job. within the semis it's really all about who the end user is. i think exposure to enterprise spending, we're bullish on the cloud, we're bullish on 5g, the valuation looks good. >> dan. >> i'm selling mine to mark. not a buyer. it wasn't a bad presentation, i just think the stock has run too far too fast if you think about if a big part of the story is what's going to happen with global trade, i'm not sure you want to be buying the stock up 30% right now. are you out there buying pete's pitch we will reveal the results later on in the show. plus, check out snap and electronics arts posting huge moves in the after-hours session. y.ose conference calls are under we'll bring you the very latest when "fast money" returns. we're drowning in information.

where in all of this is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you partner with a firm that combines trusted, personal advice with the cutting edge tools and insights to help you not only see your potential, but live it too. morgan stanley. figuring it out... not that fun... and like my dad, you might want medicare supplement insurance, too. uh oh, more research. no big thing. not with this website. unitedhealthcare insurance company created aarpmedicaresupplement.com to help make your decision easier.. with answers to important questions about aarp medicare supplement insurance plans, insured by unitedhealthcare insurance company. like how this type of plan, also called a medigap plan, helps pay for some of what medicare doesn't.

and how aarp medicare supplement plans are the only ones endorsed by aarp. selected for meeting their high standards of quality and service. and check this out. all you do is type in your zip code... and find rates for the aarp medicare supplement plans in your area. it's that easy. what you need is right here, including short videos that explain some of your medicare and medigap options. read about the key features of a medigap plan, too. like, this type of plan gives you the freedom to choose any doctor who accepts medicare patients. with no networks. and no referrals to see a specialist. use this site however you like, whenever you like. if you're ready to go, apply anytime at all. or if you just want to learn more, ask for one of these. there's so much information out there online. this one site makes it simple. it's your guide... to help you decide! so, if you or someone you know is turning 65 soon,

or thinking about a medigap plan, this is a great place to start. research a little. learn a lot. or just find rates for the aarp medicare supplement plans in your area. aarpmedicaresupplement.com hard to say... easy to use... and filled with great advice. just like your dad right? yeah, just like you, dad. welcome back to "fast money. " shares of snap and electronic arts with after-hours move josh lipton is all over ea's reactions in san francisco julia, we go to you first. >> evan speegle, ceo of snap, saying the company is stabilizing after a redesign saying they expect financial momentum to continue, bolstered

by the opportunity in snap's android app and an interest in content in its discover section. >> as far as my observation is concerned, we're most focused on discover and improving the depth of engagement there. we're excited about the improvements around personalization and also around merchandising content more effectively. today we see a lot of demand for content created by our community and also huge demand for shows and more premium content. >> as for competition from facebook, especially in the stories ad format that snap pioneered and instagram copied, the company said they're glad the format is getting traction and that it will help snap as well also saying their self-serve ad is driving results, reaching 17% of 13 to 34-year-olds. to grow their user base they are working on marketing overseas and reaching an older demographic, older than 34 take a look at snap shares up over 20%

back to you. >> julia, thank you. let's trade snap so up 20%. is this a sign of life or is this just a short covering rally down >> i don't think it is. >> you don't think it is what? >> it is signs of life. >> it is, okay, all right. >> just listen to evan on that call he sounds really energized he has to be energized, they have lost a lot of people over the last couple of years the big number is they're reaching 70% of 13 to 34-year-olds that's a pretty unique platform for advertisers. i think the thing has been down in the dumps for months and doesn't surprise me you have this huge gap on those numbers. >> the issue i have with the 13 to 34-year-olds, they don't spend enough money. >> you should see my kids, dude. >> so they're struggling to get to that 34 plus crowd. they're the ones that have the ability to spend they have lost, what, two cfos in the last year i don't think that's a good look they do really well with the

filters, but i've got to tell you if i see one more filter with the doe eyes and reindeer nose, i may shut down mine. >> the giant short interest, right, if you were here for the demise of this company, i think it's time to throw in the towel on that trade. i don't know if that's the same as there being big signs of life i don't know. let's move on to electronics arts that is getting crushed. josh lipton is all over the story. hey, josh. >> melissa, let's check riding with the street's reaction i checked in with michael from webbush. he said they missed badly on revenue. the full year guide was even worse. the bright spot was live services flat year over year it looks like battlefield missed completely, mobile got crushed the stock deserves to be crushed on this printing

colin sebastian put out a note to clients before the call and said he was more cautious before these results which compounds existing concerns over franchise strength in terms of what's going on here, the ceo andrew wilson pointed to a couple of issues. increasing competition that impacted sales of battlefield 5. he said mobile, harder than ever for new games to break through on the call they tried to talk about their pine line, anthem, a new game coming out. they talked about a new battle royale game. the game broke a million unique players in under eight hours but investors not concentrating on that right now, melissa. >> josh, thank you josh lipton in san francisco karen. >> i see the street with 23 buys, 11 holds and zero sells. so if you're a client, i think you've got to wait and you have people who will have to issue

mea culpas today. >> the guidance was so bad and the quarter was so bad, i think not only a three-day, i think this is a no touch for a while until they show us they have to prove something now because it seems like they're getting beat on every single front they're trying to compete in. >> is there any hope for -- is there another video game maker over ea? this is an ea problem so, therefore, you go somewhere else >> i would prefer activision i know that's trading way off its high the biggest problem with ea is they haven't evolved as video games have evolved they're still focused on selling units of their games, whereas everyone else doing it the right way are focused on selling in-game purchases. so it's all about the battle royale fighting, it's the fortnite and call of duty. >> the freemium model. >> you guys laid it out. the stock will be at a new 52-week low and it's got an enterprise value of $20 billion and they'll have $5.5 billion in

sales. we talk about the need for these companies to have content and platforms and they're slow we keep talking about these guys are slow to do that. they got the content so this to me is with $4.5 billion in cash and a $23 billion market i think it's probably takeover bait down here i would have said it $25 ago. one options trader made a whale of a bet on wynn much more "fast" still ahead (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level.

only with td ameritrade. because when you want to create an entirely new feeling, 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. a product of mastery. and the army taught me a lot about commitment. which i apply to my life and my work. at comcast we're commited to delivering the best experience possible, by being on time everytime. and if we are ever late, we'll give you a automatic twenty dollar credit. my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome.

welcome back to "fast money. wynn resorts soaring 40% off the december lows. one option trader is placing a $3.5 million bet that the casino stock is about to hit the jackpot. dan, show us the cards. >> here you go it was options volume, call month 6 times average daily volume it looked like a bullish roll up and out where a trader sold a call spread in march that he owned or she and they rolled it out buying 10,000 of the april 135-150 call spread. those break even at 138.50 so that's probably a long, just looking to add leverage and rolling it out a month we have a couple of charts here. kind of interesting. the next identifiable catalyst will be the q1 earnings. look at how it broke that downtrend and got above that recent resistance. maybe it's due for a bit of a

breakout we do have a ten-year chart and this is the one you've got to be worried about if you're long and playing this thing off the lows. it's pretty much an epic head-and-shoulders top if that fails, it is going back and you better be owning calls by defining your risk rather than be long the stock. >> i'm not in there. ever since steve wynn had to step down, i've been very apprehensive to be part of this. >> no wynn, no stock for you >> i have not been in it for quite a while. >> just because steve wyn nervous system n is out? >> he was the guy that was buying -- >> and he sold when he left. foopons ti cckr tiaconhe out the full show friday at 5:30 eastern time up next, final trades. ♪

you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.

welcome back to "fast. on semi is up 2% after hours why is pete so sad because america is not buying his pitch? >> that's okay. >> 66% said no, 34%, though, said yes so it's still tony it's not celine. >> i like toni braxton you know what else i like? the movie fast 5 you know why welcome to brazil. giddy up. >> i had no idea where you were going. >> still looking at things that are cheap. i like fedex right here. it's up. >> mark tepper. >> i like o'reilly i think fears of electric vehicles and amazon taking over

the world are overblown when it comes to the auto parts retailer so i think there's a lot of upside. >> dan. >> fast 5 is where they introduced the rock. he's got nothing on you. my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a pull market somewhere. i promise to help you find it. mad money starts now i'm cramer welcome to mad money i'm just trying to make you some money. my job is not to entertain but to educate and teach you call me or tweet me at jim cramer what will people pay up for? what inspires customers to pay