mechanic is failing. inin fact the breadth indexes look fine just hasn't pushed through. >> there's it. we're done "closing bell" is over >> that does it for "closing bell." thanks to mike and everybody. >> escort out of here. >> have a great weekend, everybody. "fast money" begins right now right now. live flt nasdaq market site over looking new york city times acquire. this is "fast money. him i'm melsee lee the traders on the desk. on the big show tonight pharma stocks popping as lawmakers double down on the drug price debate senate republicans calling the democrats latest negotiation bill dead on arrival we'll goat you the names in our own exam then if the shoe fits did azmodan call all bird? we look at more side by side pictures of both and then zoom out to get the bigger pictures concerns this could raise. but first -- >> announcer: in a world where binge watching a national pass time, a universal battle is

raging in is streaming wars media empires strike back. comcast, at&t, disney and apple bring their shields to full. and netflix and roku burn up in the atmosphere who will dominate the next evolution? humanity will find out now yes, it was a week that change the world, a streaming roku falling a whopping 26% on increase in competition from comcast and facebook netflix slammed as ceo reed hayesings admits tough competition from disney and apple. who wins the next battle in the streaming wars. >> what do you think, guy. >> that in a world -- isn't that great. that guy is fantastic. >> good voice. >> great voice. >> but every movie trailer starts with in a world. >> in a world where melissa lee asks questions on her show. >> i want answers. >> and well it would appear --

nice laugh track. >> oh, laugh track. >> really on top of it. >> it would appear as though disney -- in terms of the stock disney is the most poised to go higher only because -- and tim could speak to this, the valuation, seems to be growing into a valuation it's never getting netflix valuation but sort of trend that way where obviously netflix is feeling the pain reed hayesings spoke of that exactly. in in terms of trading the stocks -- we mentioned this the other day we had roku right a long time. we probably overplayed our hands but a couple days ago we said you know it's headed back to 100. the 50% retracement of that. $25 low this year. the recent 175 high bang here we are. that union the radar screen. i'll tell you netflix 242 the low back on december 17 clintonless seems to have the bull's-eye for that but you get the trading opportunity against that the stocks are in trouble but i do think they're not going away. >> so much of this market has

been positioning when you look at the old names, the at&ts, comcasts, these are the names have performed and this is another arrow in the quiver if you will allow that analogy. >> sure. >> i think those are the names you want to buy. >> not sure she did. >> well if you look at the roku, roku, netflix, disney, everyone knows about vaemg there. it's a surprise with comcast and at&t >> maybe i mean, i think if you look at this -- what's going on, right where is the valet crewing it's accruing tothe content producers. so when you look at kind of that cast of characters out there, who has not only do they produce content now has the distribution and has other ways to monetize that content it's disney every day and twice on sunday. look how the charts trade against 130 not a bad place to get in apple you can write them off they have to spend a lot maybe -- listen, guy could be right. we might get an opportunity in

flet flicks and roku, trading opportunity but i would call it a bear market rally. you want to short that. >> isn't the difference between a content producer and platform? it's just money. >> why isn't netflix one of. >> it's not prove. where is the value going in apple is putting money out are they getting any revenue off that how long is it going to take the content producers will be the ones today getting the money np. >> but what's interesting is -- and i think this may be your point, mel, is that the reason netflix has been as successful as they are is they are a distribution platform and they have the distribution. and people applaud it people. >> they have both. >> they grew into into the content but they had distribution first whose got distribution first apple? i'm not here -- let's talk streaming wars i'm not here to argue in favor of apple. i'm here to argue against netflix. because net flex spent $20 billion in 2018 and 2019 so far. the problem is the wars heat up and the competition finally

comes online that we knew was happening, the expectations and really hockey sticking on the -- they're supposed to make 65 times a share when disney at 30 times is expensive and doing what they have always done i just -- i think netflix is the biggest problem here i think the other ones are growing into higher. >> isn't a product also of the value versus growth dilemma we see? netflix has a bull's-eye on its back for a hoff of reasons. >> right. >> one of them is the value versus growth. a lot of times when you look at apple you get both in an apple along with the icing on the top or the whip cream on the top of streaming. >> cherry i use the -- >> ice cream and the whip scream. >> another arrow in the cream. >> it's a good thing netflix put threw the price increase because in this environment you have to wonder whether or not price increases will come again? you've got at&t under more pressure to show that the time warner acquisition is going to

work. >> netflix probably did it the time they needed to. flew unthe radar screen. people having it didn't see it coming now people might be hypersensitive to it you make a great point in terms of trading it though, again, kudos to tim been honest for a while. but i think you get the trading opportunity against 242 and lines up niecely reporting earnings i believe on october 16th b.k. is right it's a bear market mouns are bounce and this is the first time i think you have seen the white reed hayesings eye. >> that's dramatic that alone. >> it's like the movie trailer. >> in the world where reed hayesings. >> you trade it against 242 there gou. >> are we at a point we have to see the valuations converge between the netflixs and the disneys of the world. >> i think we have seen that and i think netflix has a long way to come down and there is arguments should disney trade here i think maybe the most interesting, the next comparison is at&t and disney

let's take at&t's core business and wireless business and maybe even direct tv business and say these are low multiple businesses but as you look at content and sum the parts. to me the greatest room for relative value enhancement would be at at&t i know you can't value the whole business there but look at disney look at what we're doing with apple. treating the companies like the conglomerates they are and valuing the pieces differently and gets you high are multiple at at&t. >> yeah. >> i like tim's argument on at&t but i really just think that the story here is kind of the demise of netflix and roku we haven't. >> the demise. >> it's over. >> we knew at some point in time. >> in a world where any go out of business. >> exactly where any -- there meteors and flash out. but let's even talk about roku what does roku do? they basically dsh dush beau the hardware to connect to the internet so you can stream every tv going forward is going to have that on. a part of the business is going away between roku and netflix they are rightly down quit a bit.

and i think any go lower. >> rights out for roku. >> i don't think so. and it's interesting you have some analysts today -- you mentioned pivot alinitiate with the $65 price target, dramatic. >> right. >> but equally dramatic are the two analysts dd.a. david with one, ha 175 price target and one name escaping me $105 price targets. >> they're all wrong sfshl. >> in a world we try to handicap we're all wrong. >> they're probably all wrong. >> you see my people in the b.k. camp think it's going away and others think they can survive i don't know where i find myself but i think the $$00 is the trading opportunity. >> here is the argument about valuation enhancement and netflix and roku going out of business we have a case where think about all the cellular companies think about wireless, when these things start to become somewhat somewhat commodity advertised content isn't. but the services become so and if disney can deliver this at $12. 9 op disney plus

november 12th. >> and netflix for free. >> appear netflix premium inspect 15.99 with you 8.99 and 12.99. the point is if anything shouldn't they all be coming down. >> neshd be coming down. >> and pushing all the multiple be under pressure if they are competing aggressively. >> except the companies with the deepest pockets can weather the price decline and price car. can netflix with the cash burn it has it can weather. >> the $15 billion in debt they're been financing content, no. >> the one was the lower price have the least content netflix people are paying the premium "fast money" i don't think netflix sells off because the competitors sell the lunch i don't think i think it's the value versus growth. >> you think it's only rotation causing netflix down 25% over the past year. >> i don't think it's competition. for me to say it's zero competition, no, that's ignorant

but to say that it's 100% competition, that's ignorant as well i think it's a healthy amount of value versus growing and i think a healthy amount of competition. >> i would think this this rotation is the accellerant to the downside if this went on absent the rotation you wouldn't have as big a decline is how i would characterize it. >> four salable. >> in a world where b.k. uses four syllable words. >> it's a friday afternoon. >> the reason why competition concerns me is because it concerns reed hayesings. he said it in the past more in in passing he seems to be worried right now. >> he is worried more about gaming. >> but he is worried more about gaming versus. >> throw it all in whatever takes your eye balls off of netflix. >> exactly just eye balls. >> heerp is the other thing it seems the bloom is off the rose on net flbs flicks for the first time i know there's been ability to challenge the valuation for a long time. for a long time i was wrong and i may be still wrong but i think you have people truly question the business

model at this point and the profitability. at some point you have a structural issue i'm in the saying they're going out of business in this world. i'm saying that there is definitely a dynamic here where people were giving reed hayesings and netflix the benefit of the doubt every time. that these guys have the distribution, so far ahead no one could catch up, international and i think the multiple of the stock and the falling of the stock from the wall street and investor community is not ever going to be the same as what it was. >> back to you, because you think a big part of in is the rotation. >> right. >> or an accelerant if you wish in that world. >> yes. >> would you buy netflix here. >> not yet i think you see the rotation take place untilier end. apple is a buy comcast still a by disney has to hold 130 sflo when gou to the movies do you eat popcorn or. >> milk duds. >> krasens >> krasens. >> junior minutes. >> we're talking about screaming and watching tv here i am eating krasens because i feel like i'm snacking >> the candy bag.

>> behind the. >> folks at home. >> we have a candy bag. >> not anymore. >> it's candy free september. >> right. >> we're eating petiticans and almonds. >> the more you no. >> in a world where we are trying to keep it real that's the world. >> coming up, amazon accused of going after all birds. does in copy cat case have legs? plus the fedex trade talks live from times square in new york city. much more "fast money" right after this it was sophie's big day.

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. welcome about a back to "fast money. biopharma breathing a sigh of relief after senator mitch mcconnell warned nancy pelosi that her drug pricing plan would be dead op arrival in the senate what could it mean for the drug pricing battle obviously the drug makers liked the news. >> they should i think big cap pharma last weeks have been difficult for eli lilly. and merck.

the all time high 130. that's where it's headed valuations are not stretched the space had a bull's-eye injury that's now gone. >> i don't want to have to be forced to pick a name. i buy the xlv. by the etf only up 7% lagged the mechanic you have smooth sailing going into year end if it's dead on arrival. >> almost daring to you would you rather him. >> i'm not going taking the bait i'm not taking the bait. i want to go someplace else with this nobody tells me what to do. >> right. >> my question is for every positive headline like you get the negative headline there is a a lot of time to the election. >> but at least it delays it at least there is the stagnation if you were concerned that something was going to happen either before the election or that's probably off the table now. for me i'll got further down the food chain and say maybe look at biotech again. ibb, the nasdaq biotech traded really well today. the reason i say that is if there was any hesitation about buying out some of the smaller cap biotechs by the large pharmas because you didn't know

what pricing was going to be maybe there is more certainty in the world today. >> i think taking the headlines as at least a counterto you will at political fears we have seen kind of swirling around the secretarier is not enough to go out and buy it i don't think gnat valuations are irk particularly interesting. i think a lot of the companies actually also had a very good run in the context again of a slower growth economy where we had high dividend yields and predictable cash flow generators so this is never a reign to jump in or out of the secretary are for me i think that's proven over and over every politic willing cycle. >> speaking of companies caught in the capitol hill cross hairs azmodan under the spotlight this time for being a copy cat. images from leer show the online retail giant create add shoe bearing unkanye resemblance made by all birds not just that they sell it for $60 less per pair. so the question is, if amazon is doing this with all birds, could they also do this with any other

product that they sell on their site is this going to further raise regulatory concerns. >> i think the first question. >> any already do don't they you go on the amman they have amazon basic their product at the top which is exactly what they were accused of or was the concern this week that they are actually kind of promoting their own products so i think in already happens. looking at those pictures though there is a difference is the shoe lays they must be $60 shoe lays >> those are some ugly sneaker i think dan nathan wears those i would not wear those but the question is is white labeling for amazon in the ultimate position -- and we see essentially white label products in every major big box and every major food group, yes i think amazon are continue. >> i have zero problem with it anyone listen on on amazon if they cause you any adverse affects on your brand you pull it off amazon. i don't think anyone is going to do that. until that happens, it's going

to have zero affect on the market zero affect on the competition. and i'm happy with in. maybe dan gets a cheaper sneaker. >> they are horrible things. but as you know, imitation is the best form of flattery as they say and you can look across the tv landscape and you notice the shows on other networks that have taken this "fast money" format appear made it their own just saying without naming names. with that said, and our technician b.k. can speak to this, amazon has not traded that well if you look at it it a monster double top and hasn't recovered as the broader market has. all -- all birds >> all birds is the sneaker they're copying. >> aside of which dan nathan has multiple pairs. >> and the implication is dan has some really ugly shoes >> it's a aschum he is not here. >> that's the bottom line here. >> i'm not saying that it sounds sounds sounds like other people are saying that. >> dan and guy said it clearly. >> yes. >> the bottom line. >> unintentional. >> not the bottom line for dan's

shoes but bottom line for amazon. >> again, for amazon, i think this is probably not a big deal in the big picture of things in individual incident, but again i will use the term krerl accelerant and say the rotation out of the momentum is accelerant for amaze on president downside. >> dan strolls up on the set process the wings for "options action" with the fancy sneakers on. >> they are fancy. >> not knowing all these guys are putting his sneakers down. >> are those amazon sneakers >> in a world -- >> what are you guys doing >> making fun of your sneakers. >> the whole show has been off the rails, really. >> stick around, 5:30, "options action." >> "options action." >> back to amazon this could be a name caught up in the roe tossing as well. >> of course up 20%. underperformed you have a problem there but when you look at amazon they

told us this was going a investment cycle so i don't want to be in amazon when they warn us already. he already put the writing o the wall, love the stock for years but when you tells you he is investing that means look out no profits. >> i think dan's sneakers are nicer than all birds. >> knows are better than he usually wears. >> they're leather for one. >> better sneaker. >> coming up, putting a dent in the stock value but bond yields seeing a better swing. that's next on the markets bcu're watches "fast money" on cnmuch more fmz right after this . what if other kinds of plants captured it too? if these industrial plants had technology that captured carbon like trees we could help lower emissions. carbon capture is important technology - and experts agree. that's why we're working on ways to improve it. so plants...

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talks. chinese officials cutting the trip to the u.s. short no splang. they cancelled a trip to visit farms in mt. frufrp president trump later saying he doesn't need to strike a deal with china ahead of the 2020 election. the real story though look at the bond market. we saw stocks go up and down according to the trade headlines. bond yields sink and here here we at the lows of session 1.27% they had been up prior to the trade headlines about china cancelling the deal at 1.78 or 9. what is the telling the true story in terms of how we should view where the trade talks are a and how do we set up for next week. >> i think the bond market is somewhat concerned i think the bond market listened to eric rosengren of the boston fed. i think it also listened to the comments coming out of clarida and i think you get the sense the market overall is then going

to be concerned about growth if the fed is not as aggressive. >> i was surprised that rosengren saying that machining was already in recession effectively. didn't hit the markets hard sfleer i mean both the fed governors were not too enthusiastic about the u.s. economy. and particularly clarida talked about theeuropean economy hit hard we know that filtered over the danger to that stock rally and the danger we have is you have this pro longed trade war which guy talked about for probably a year and a half now and continues to hit earnings. we are back in this pattern of one day great news stock market goes up. next day all of a sudden it falls apart. stock market goes down. >> we have heard fed representatives tell us gnat tariff issue hasn't filtered through to the economy yet i think if if continues on you're just guaranteed more of a rate cut to me. >> it's a win/win situation. >> i knew you would say that because you don't like. >> i don't trust win/win. >> i wouldn't be afraid of -- i

wouldn't be afraid of it. >> guy. >> the good book wynn dixie remember that book looking at the clock. 1.41 was the high in the tlt back in july of 2016 we blew through it to the upside yields exploded to the downside. with we recessed i think yields are going lower i have no idea what it means to the broader market but tlt goes higher from here. >> final trade time around the horn tim. >> would you rather whether it we prayed disney, netflix. definitely disney. you have to watch the 128 level but a lot of people want the stock here and you should. >> brian kelly >> in a world with the looming trade where tit-for-tat, might want to have tlt on the portfolio. >> grasso. >> the market under pressure today and the stack that did not blifrmg blink was lennar np i stay long you should to a. len. >> guy. >> you know something melissa i know you think i forgot the final trade i did not you know

what was up 2%. >> i'm looking at you while i'm talking i can't pearl vision gdx i know up 2.1. gold going high they're does it for us have a great weekend. "options action" is up next. liberty mutual customizes your car insurance,

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happy "options action" friday, everybody. i'm melissa lee live from the nasdaq market site in times square we have a big show coming up. >> announcer: is there a doctor in the house or at least a chartist there is carter werth checks the vitals of health care by putting bristol myers unthe microscope then microsoft, apple, google and now amazon dan nathan completes his maga market quad effect aire. find out how to play the final name for the win plus, we're going to keep running with the