>> exciting and cool graphics we get to play there as well. mike, main markets, back to them keeping an eye on whether amazon drags. >> seeing if neck absorb the amazon hit as it's shone the ability to absorb the one off earnings misses this zbloonz out of time on "closing bell." thanks for watching. >> "fast money" begins right now. live from the nasdaq market site overlooks times square. f2 this is "fast money." i'm melissa lee traders tim seymour. karen finerman and guy adami and joined by mark tepper president of strategic wealth prrnlts. the businessest day of the earnings season in the books visa intel, gilead on the radar tonight. we have the latest from each on the quarters but beginning with the stocks to watch in the after hours that would be azmodan. the tech giant falling hard offer a earnings miss. we have full team coverage stapg by to break down results gene munster firing up the red phone in minneapolis we kick-off with more on the

amazon big quarter josh lipton live in san francisco. >> besides the bottom and top obviously investors concentrate on the q 4 guided are guidance light. between 86 and 86.5 billion. obviously for investors that's critical q 4, the holiday quarter dy just have a call with amazon cfo brian osafe ski. there are one-time items he mentioned weighing on q 4. he mention add consumption tax kicking in japan, from 8% to 10%. that created prebuying in september having a net negative impact in q 4. but the central question for investors is going to be the bottom line guidance well below what the street was looking for. on the call he fielded a lot of questions about that is it all one-day shipping he made it clear they are in investment mode and do believe where they need to be. they believe there is cost in the short run. he believes that's where amazon

needs to be and there is evidence he says it's paying off. good increase in purchase behavior from prime members. they're buying more products, more oft but obviously weighing on the bottom line. aws i talked about that too with mr. osofskip it came from it growth rate a tick down. 9 billion lighter than the street was looking for guys at baird looking at 9.1 billion. i questioned about growth rates. he says bottom line they are happy with the progress. it's a 36 billion-dollar run rate up 9 billion year over year leading stroot any features and products not worried he seems to kait about the fluctuations quarter to war o quarter. >> well check back with other developments let's trade amazon obviously into the quarter the expenses were the primary concern as always with amazon. operating expenses growing faster than sales growth. >> people anticipated that not as much because the stock is down in the after hours. if you look at it it's not the

disaster that i think people want to portray. yes, the growth rate in aws slowed down tp so did azure yesterday. it's still significant 36% growth rate. revenue guide absolutely disappointing. but now you have to ask, everybody is dying to get in thing a few months ago what are the levels tell new i'll tell what you they tell you. the low recently about 1365 give or take. we made a recent high of 2035 month and a half two months ago. the level we are at basically right now in the after hours is a 50% retracement of the entire move the double tops we talked about forever held up. but now you look to play offense in amazon instead of defense in my opinion if you sell it here you are trading wrong. >> if you are dying to get into this stock a month ago would you die to get it knowing the holiday quarter would have fallen short of forecasts? >> i'll take a different spin but my glass is half full too. you have the miss amazon

historically the implied bottom down 15% i think this is a victory smoothing out the business aws while not growing where it is is clearly with microsoft head and shoulders with google as a distant third in my view taking cloud of which we are less than 10% of enterprise on the version it's good news for them yeah i know that prime shipping q 4 costs double what they were in the second quarter. if you look at fulfill costs overall that's hurting the margin azmodan which spent a lot of mones ago into their logistics, erp, warehousing t up a notch is doing the same thing. doesn't concern me as a shareholder. i have to tell you i think this is an environment where you want to be look for opportunities to add to amazon. because there is nothing about what they told me today that signals just a structural problem with the company. >> yeah, i grow with that. obviously it's spend, spend, spend. they can afford to do that it's down this much i don't think -- if you are a bull and that's part of the thesis on the story that anything coming out

right now should change that you know and they give this guidanceens of 80 to 87.5 billion that's enormous range. they're throwing that out there. i wouldn't read that much into that as well so, you know, it's too expensive for me this doesn't change it from oh now it's in the range of excellent value. it's not really going to be my thing. but the these he is intact. >> mark. >> this is one of the core holdings look at this as a buying opportunity. i would expect probably a call from a client or two tomorrow to try and figure out what's going on and basically what i'm telling them is a few things number one the weak guidance is typical for amazon they are notorious for sandbagging the holiday projection and blowing through , right. they have a significant competitive advantage. and they're spending right now to continue to strengthen the competitive advantage. and it's still too cheap given the growth it offers over the course of the next few years

i think fair value is 2,200 to 2,400 on amaze >> stock down more than 6% right now. let's get reaction to the quarter. luke vent yurps on "fast money" friend gene munster. feen, what was your take here? >> melissa, there is the company and then there is the stock. let's talk about the stock this is a high multiple stock call it in the mid-50 range with netflix and google and facebook kind of in the low 20s apple in the high teens. so the bar is high and the reason i want to start there is that ultimately for high-multiple stocks to move higher you have to do one of two things guide for higher revenue or higher earnings you're right they typically guide conservative but there is a way we can adjust for that i'm trying to strip out of the language around it versus what they typically do and effectively this is what we had. the december guide was the revenue guide was 1% below where the street was at. this is stripping out all of the -- some of the psychology they do around it. and at 1% below.

last quarter they guided revenue up 2%. on the earnings side guided down by 28% versus 27% last quarter didn't deliver on one of the factors to move it higher. the simple take away is this this is a solid company. but i don't know if the stock is that compelling right here i think it's somewhere in between. because it didn't deliver on one of the two key factors >> gene, when you talk about spending and spending to grow later on, i mean, how do you view how much spend is going to bring in that additional prime membership or whatever your metric would be? >> so the impressive part here was one day. absolutely that's going to be the theme on the call. that should be the focus here. it's been the focuses over the last six months yielding incredible returns with the paid unit sales it was 10% in the march quarter, 18%, now 22% essentially defying the laws of physics when it comes to growth.

but unfortunately the massive growth hasn't yielded the upside in the forward outlook making for adjustments there so ultimately to answer the question, is how do i view it? it's absolutely the right thing for them to be in this investment mode. it's the right thing for them to push for consumers to think even more broadly about the wallet versus amazon. and one-day is a powerful proposition around that. but ultimately you need to continue to grow that base of prime users. they're at about two-thirds of the u.s. has prime membershipships. ultimately that could be 75% there is room for upside but it gets more difficult to climb in circles back to the core underlying question, which is the multiple you pay for the growth outlook my belief is we're probably fairly valued right now. >> hey, gene, that's where i wanted to go with this you have a subscription service in prime talk about the growth maybe nearing the inflecten point. and the anniversary of raising prices 230%.

then the aws subscription service. as an analyst talk about blended mixed multiples on a lot of companies can you approach that way, do different multiples and come up with a different aggregate. >> a lot of people do that the price targets when they think about the sas multiple for aws and more traditional tech multiple for the retail business, you get to call it 20, 25% upside from the stock is today, kind of a the 20 times elaborata multiple the essence of in is i don't think that sum of the parts approach is necessary hi applies to this stock here i think the psychology around the growth is critical and that is ultimately why this stock has continued to move higher is they've delivered on the growth and the -- the essence of this is that that power of a one-day shipping needs to sustain beyond one quarter. they need to have that impact the next four quarters if they are successful at doing growing units at 20% plus over

three-quarters i think the stock moves higher if it drifts back for the mid-teen range i think people aren't looking at the sum cht parts they are looking at the broader top line. >> gene, i don't want you to play stock market here but i'll ask quickly do you think we round trip the december low? i think december 17th there abouts stock as i mentioned earlier trade the down to 1363 orders and see the cross hairs or is that a kpreet out of reach. >> that's a overreach on the downside but i feel there is just better places to put money. this isn't again great companies change all of our lives we'll use it a lot but not a compelling kbifen what's happening with the fundamentals and the multiple it just doesn't add up to a compelling buy here. >> do you think that regulatory risks or increased regulatory risks come up on the call, gene? talking not about what's going on with europe in terms of using data to target customers better but the cloud and the capitol one hack now what if aws is labeled as a

systemically important financial utility that could open another can of worms for amazon and the business. >> it is come occupy the call. it's one of the most efficient calls on -- in all of tech earnings calls but they won't answer that and i think that you know the piece just to bring in really to a tight point is that the issue with regulation is pretty simple is aws and retail base there is little synergy between the two the one is that aws creates cash funding the retail piece i could see regulators seeing that as unfair to traditional retailers or other online retailers. that is the point of conflict. i bet it will take two years to sort out. >> all right, gene, we'll check back with you later on when the call is under way. gene munster of luke ventures. any thoughts here based on our conversation with gene >> yes i mean, i still think the growth is there i mean we talked about it yesterday. 59% growth rate for azure is 59% growth 35% for aws is 35% growth.

i think there is huge opportunity if you don't have a position in amazon you can get one at a very, very fair price >> okay. let's shift gears from one part of the tech trade to another kmip maker intel spiking after hours. let's get to john fortt at headquarters. >> just licensing to the call with bob swan talking i'm bringing you the latest there. just to get the first details out of the way it was a beat on the top and bottom from intel. far and away they also raised the full-year guidance by $1.5 billion ceo bab swan on the call talking about supply which is a crucial new for sbrel. they haven't had enough it's been frustrating for pc makers and others wanting to get more from intel he did just say that they do expect increased output for q 4, the supply will be up double digits also, single digits in 2020. but still not enough, he said.

he said they are letting customers down right now with supply constraints and they've been unable to build out vsht o inventory we have heard before that he is putting more color into the intel growth story. i think it's more of the bob swan manifesto on intel growth, talking about a.i. and the need toed about build custom built chips or aiidc says in a couple of years 75% of he enterprise applications are going to incorporate ai therefore when i intel can tune chips to artificial intelligence, that makes them more valuable to customers that perhaps counters some of the supply issues and process technology issues that intel has had. also the argument that they are technology beyond process could give them an advantage that will bolster gross margins perhaps millsa. >> john fortt at headquarters we'll layer turbbob swon tomorrow at 11:30 a.m. eastern

time on "squawk alley. in the meantime what's the trade here >> it's interesting- that was some bullish guidance, right. >> yeah. >> that was interesting to me they would feel comfortable being that bullish when they didn't need to because there is a lot alt of potential uncertainty in the next quarter. they must feel very good the data center -- that was really really impressive so i think -- you know we talk about -- it's better to own here higher than it was this morning lower. >> yeah. >> yeah the high harjen data center business is growing nicely i think the fact that intel had been- look the last couple quarters for intel was not good in fact they threw cold water on the sector some people felt it was their business which wasn't in high growth businesses of the chip chain but, you know, you have to be excited by how these guys have essentially not only reaffirmed that they actually are dough he seeing growth they have to kick up kpand because the kick up supply because the demand better than expected but they talked about china and impact and haven't seen a major impact. i don't know if that means you

should be fearful of the eventual but it's a relief for company that i think people were priced to the downside on the number. >> data center beating revenues by 10% that's a big deal to tim's point process margin it makes the operating margins close to 36%, significantly better than the street was looking for $20 billion is 8% off the market cap. that's not insignificant that's one more thing. and valuation to karen's point, you can make an argument it's cheaper now in this move than it was a couple hours ago 54 are the sort of the breakout level. it's above there now stay long the stock. >> two days ago watching the entire sector trade load loer texas instruments. >> two other chip maker tell a different story. >> sure and now we have intel and add that with your taiwan semi conductorter a dane, the positive ones what's the meng of the chip secretary ner your view. >> you are getting different stories, right i think it all depends on what the end market is. if you are in growing end markets you do well.

nvidia a good example of one we like end markets amuse feengs ai data center gaming, a great play we bailed on intel back in the spring replacewood broadcom. we like broadcom, great 5g exposure, important over the next year. good dividend yield and on top of that with the siemtic acquisition. 30% of the revenues come from software. >> and the quick take away with if you look to industrials and automotive no baun o in in environment. >> you know what that means? not good. >> oh. >> the more you know, tim. >> thank you >> at any time didn't you have to take language in college or. >> one of the things we tried ourselves on the show is not talking over people's heads. >> no baun o is not over people's heads. >> it might be for some people. >> i feel better now. >> comment on the chip secretarier. >> oh, i feel better now you have a case here where look at where semis trade over

overall as a group outperforming massively in tech. maeft massively outperformed the s&p. taiwan semi a white label mfl forefor the industry trading all-time highs taiwan semi is the biggest take what's going on impressive zblienchts visa gillialiad on the moves the highlights from reports. twitter tanking today for one technician tells you how to play the stock. one technician tells you how to play the stock live from new york city times square much more "fast money" right after this that for over 85 years has focused on keeping confidence up when markets are down. an approach where portfolio managers work well independently. and even better together. who don't just invest, but are personally invested. can i find a proven approach designed to deliver results? with capital group, i can. talk to your advisor or consultant for investment risks and information.

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welcome back to "fast money. visa appear and gilead reporting after the bell we havecoverage. meg tyrell all over the call but kate roger on visa. >> the call stig going on. but visa without with beats on the top on a bottom lines payment volume up 9% year over year processes transactions nnlzed by 11% to $36.4 billion pfeffer client incentives at $1.7 billion ceo laid out the company priorities in order to be a leader lead ner the space on the call take a listen. >> drive populars for trshl clients. expand access with new players

seller sin tech, increased customer engagement by enabling a variety of platforms and simplifies the payment experience extending value end capabilities across the ecosystem and enabling new money movement with our network of networks. >> the company also announcing a quarterly dividend increase of 20% to 30 cents per share. the stock up over 30% year to date had been down in the past three months np. initially got a pop as the earnings report came occupy now it's up just slightly again. anything we hear from the call we'll bring to you over to you. >> kate rogers at headquarters on the guidance looks like if you dig deeper there are a couple of things might have contributed by like a lower effective tax rate the bloom is coming oft rose a bit after hours. >> well, also up almost $5 into earnings today a front runner. some of the numbers for guidance are revenue upload double digits on this scale that's tremendous. >> mid-teens is what i saw it's crazy. >> that's insane

the transactions up 11 percents. they talked about paying banks more. >> yeah. >> so that's -- that's hitting them on the expense side so they talk about a $1.69 billion. this is extraordinary, though when you think about the scale here and to see that kind of growth we see across a number much pay pennsylvania pal, square, visa master card record reporting i think tuesday. i would expect similar growth. it really is incredible. >> it's expensive should be expensive. but mid- >> long master card. >> sorry i'm a little flummoxed over the if a fact that i think mid-teens growth for a company of this size with this revenue stream and predict ability is extraordinary. and explains why it's trading at a multiple that it's certainly in the high rent district. but buying back or -- sorry, well adding 20% to the dividend another megacap company showing how free cash flow akreetive they are and giving is it back to investors is greats. >> we own the stock, a

phenomenal performer, obviously a tremendous shift towards us being a cashless economy and when you look at visa a all weather stock. back in 2009 when credit was down double digits, debit up and they have a good strong debit card presence and beyond that they have the best margins in the industry at 70% >> low double digit revenue growth as well which might be more interesting and i'll say the eps growth mid-teens. mid-teens in my bath i can do to the math 14, 15, 17, 18, 19. means 16, 16.5 see what i did tim stay with meme. >> that's no baun o. >> 16.5 is better- anyway my point is. >> i want that beknow baun o. >> deserve the 27 times trading at next year earnings. >> moving to gilead, stock falling on results meg tyrell has the details. >> a pree in line quarter for

gilliaiad pl wall street reaction on those lines. brian abrams pointing out amid solid results, the cancer drug fell short of expectations quote likely to perpetuate skepticism but the long business. the relatively underwelcome you'll be it in line bared baird as brian skoerny was blunt when i asked him which guide gilead is down it's like boring quarter after quarter about talking about being innovative and building innovative team but having nothing to show for it. obviously frustration apparent there are to a stock count about 3% over the last year. lots of questions on the call going on now process about m and a of course the company finishing the quarter with $25 billion in cash. ceo dan o'dea didn't give hints about major deals to come saying on the call the company strategy will remain driven by science where we think the most unique opportunities are in the four therapeutic areas where the company has expertise. back to you. >> thank you meg meg, at headquarters. >> i feel like this is the

ongoing refrain with with gilead going to do it a deal. that's which you buy gilead now no deal. >> then punished for a deal so people say they overpaid in a position they can't 2019 is the year they want to forget it's a giant fan new york football giants. >> i understand the reference. >> the same with gilead. >> 2018 was the year we wanted to forget and 2017. >> i know. >> but actually i argue that is gilead as well. >> my point exactly. >> not bueno. >> i use to do that you can't use it twice in one show $85 billion market cap company the stock is cheap yeah, cheap, no growth as much as i had like to say buy gilead with both hands i played that for a long time doesn't work. >> they have enough carbon the balance sheet to do something so big it could be detrimental. they have enough rope to hang themself with that money on the balance sheet. >> good for them for not doing

it they have done a couple in here that were akreetive and completely evaporated out of the share price. you here it hcv and hiv franchises are slowing going to place with where place where they aren't material they are material now and the numbers were weak on hcv, good on hiv but thus not enough for the company but the street seems overweight on the stock. about and it's been a bad call a long time. i've been wrong as well. >> i think within farm aire you want to focus on on kohlgy hcv is in atlantic and sales on the decline for gilead since 2015 and there is really very little chance of them reversing they go out with the ceo and more on collegy brktd and still not doing much i'd rather be with bristol myers after the sell gene acquisition 70% on sfrrp on collegy.

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somewhere where all of the good news of yesterday we will slowly get more details on the balance sheet. and i think you can actually obviously buy downside volatile relatively cheap level to where you were yesterday. >> can i push my luck on the last call. >> last quick word. >> twitter overreaction. pushds xlc down. the options look good. eight more companies top ten out of holding xlc a lot of good stuff coming in the communications the creating a good create. a secretary are spdr. >> trading analysis.com. todd >> this is the first take on twitter. guy. >> on -- i'm disappointed for many reasons, not least of which the fact that they used july and

august seasonality as an excuse. i mean seasonality by definition it's seasonal. it's a little -- but maybe it was worse than it typically is what do i know but july and august historically pretty lousy shouldn't have used that it's round trip back to where we were remember they changed the metrics went from getting away from active ut users stock down to 29.5 off to the races ever since. i think you buy it again here. granted, i never thought we'd see the levels ever again. but here we are i think you got to take a shot. >> this is the most inopportune time for twitter to have issue was advertising platform engagement should remain elevated through the election next year. and it looks like these issues with their advertising platform is going to continue all the way through 2020 so big issue for them. >> does google or facebook benefit from this. >> i don't know, i'm concerned -- i don't know if they also have the same problem. my hope and guess is not but i don't love that part of it. >> coming up we are gearing up for the busiest we can for

earnings and options traders looking to hang up on one name, the report on monday. we tell hue. amazon earnings call under way we break down atwh has the stock moving lower much more "fast money" right after this

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welcome back to "fast money. the earnings parade continues into next week at&t kicking off on monday reporting brit and early before the bell and options traders aren't convinced the reports will be enough to carry through. >> looking at the last eight quarters at&t averaged moves under 5% the pgs ohs market expects a move more modest than that high pressure right now implying a move about 4.5%. today's activity was not particularly bullish zpit how the stock has behaved this year. a lot of the trades were bearish, some more neutral in nature the largest of those is the one we are talk bag here we saw a seller of 2,700 of the november 22nd weekly, 40-strike calls for just 18 cents. so the seller of the calls is obviously ma making the bet is stock it is not rallying through the 40 strike price. certainly not by the amount of premium they collect which is relatively modest pat 18 cents a share basically betting the stock stays below 40 or i'm guessing

they own the stock that they would be willing to sell it at that level we can see the stock is obviously performed very well so far this year. but basically they're drawing a line in the sand and saying this is the level where i'd be willing to get out here is something to think about. why would someone sell calls and collect that's than .5% of the current stock price. one obviously is they are willing to sell there. the other though is looking at the past 11 years only three insteness at a has the stock gone up where these would be in the money. had you told these you would average 40 basis points of incremental return in the course of a month you can see why someone might be inclined to do this. it's a high probability bet but obviously collecting little to do it. >> all right tim you own this. >> i do. and so if you look at the charts first of all you're back to that -- today's move took you back to the preelliott announcement where the market believed the elliott activism is something that's going to push for change in terms of either people outside of the company coming into the c suite.

to me the story here is the fact that the cellular business is now in a place where i think it's actually stabilized dramatically the media business is really where the jury is out. what's going happen to hbo max, the streaming service? but it's a case where i do like some of the parts here and i think in terms of the media valuations that have come along way back remember two and a half years ago where we were, some of the companies have the ability to restate and this is a media company. >> mike thank you see you tomorrow that's when the full show happens tomorrow 5:30 p.m. eastern time. up next. a game of chicken. why there could be a new challenge ner the fast food chicken wars the delicious details ahead. check out amazon in the red on the back of results. company conference call now under way. we bring you the latest from the c suite .. don't go anywhere, "fast money" is back right after this. >> announcer: "options action" is sponsored by think or swim by td ameritrade. i see best-in-class platforms and education. i see award-winning service, and a trade desk full of experts,

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today expecting mcdonald's to sberp the chicken coop and serve their own chicken sandwich nextier. guy. >> yes, melissa. >> which stock do you feel peckish. >> apropo pink is huge fan of "fast money. >> pink. >> it's just pink not the pink. >> no article. >> why are we talk bag that. >> listen by the way. >> that was really random, because that nothing to do with anything. >> nothing to do with chicken. >> just popped in your brain and you blurted it out. >> remember he we did the chicken taste test a few weeks back. >> you lost by the way. >> i did lose because wendy's by the way we did and with the blindfold. >> a look back. >> a look back. >> good times. >> what i'll tell. >> you you sure it's pink. >> oddly enough as it turns out. >> what i'll tell you the sell from mcdonald's is overdone. people point to valuation. if you want to play the space chicken or no chicken, the chicken dance if you get married

and play that, don't -- >> just play it here now. >> invite me. >> repeatedly. >> this is a huge drop even though mcdonald's gained share in hamburgers they lost because of the wendy's nug et cetera and chick filet. >> people don't need to go to. >> the kiosk i love the kiosk. >> yeah, the mcdonald's when you think of mcdonald's you think about burgers, rate? i like qsr pmt we don't don't even own own any of of the fast food stocks because they are expensive aflt with the pullback in restaurant brands it's more attractive you have burger king we look pop eyes definitely strong any day of the week whopper over big mac. it's a better sandwich plus 3% dwreeld on restaurant brand. >> sharz on amazon on the move on the back of the conference call and look at the cramer cam

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money. check out shares of square tearing it up today. gaining more than 5% the payment stock riding paypal wave amp 8% surge. jack dorsey tweeting out now buy stocks on the cash owned app commission free and any did he nom designation will nation. the you can buy portions of a suffolk. this makes buying stocks and building wealth accessible to more people. did square deal a blow to the online brokers could it be good for business. >> i doenl think buying shares is in itself anything for square's business. but i do think the evolution of square is wanting to be your bank asset manager, wanting to be all of it, lepder, software provider is interesting the stock is up itching about 10% for the year it's not cheap by most metrics it is down i think touching 100 at one point last year briefly it's expensive but i think the story is

somewhat compelling. i like square cash i like square capital. i like that they sold caviar to focus more on business there is a lot to like at square. >> guy. >> ubs initiated $81 price target yes expensive. but to karen's point this was a, sr. 100 item not it matters. it had a move to the townside. i'm with her i don't think this in and of itself is a big deal but giving them a entre into businesses i do think $60 you can own it. >> if you are td, schwab, any of the other -- e trade are you worried. >> they have different concerns we talked about them the last couple weeks with the issues with essentially zero cost commissions or no commissions. but the dynamic i think for those companies is about balance sheet retention. and where they get their online traders into loans and other services that i think are higher marj with regard to square, as karen pointed out, first of all square cash and the ability to have the stickiness of the flafrmt and cross selling is ray really part

of the story there i think part of where we continue to see the guys surprise, the stock is one of the most volatile you could have invested in in last 12 months. a range about the 607 to support is found. >> square paypal or none of the above. >> visa. visa paypal. visa my favorite so when we look at square. >> he chose his own adventure. >> is that lourd. >> within a none of the above category. >> so, you know the valuation on square is far too rich which everyone else already said but, you know, they're getting into base i'm not sure how it's going to positively impact them from a money station pinpoint. this is probably sog that's geared more towards millennials. i don't know that it's really -- i don't know that they compete against schwab and td pmt more or less going for the savers that robinhood is working with right now. but frankly i wouldn't want to own any of the brokerage firms right now because there is way too much fee compression.

>> switching gears, amazon still lower after the results after the bell for the latest. let's get to josh lipton he has been listening in the on the conference call. >> amazon cf oh on on the call with analysts first question off the bats bat was revenue guidance for the critical quarter highly disappointed. he says we are they are excited about the. holiday season making rapid progress and one hi day shipping they needed to be aware of the timing of holidays in india. japanese consumption tax certain headwinds to international growth in q 4. the company is in investment mode to make good on one-day shipping spending 800 million no the last two quarters to expand the free one-day delivery problem spending another 1.5 billion in q 4. the cfo explains why he thinks it's a smart investment. saying we are pleased to the customer response to one day you can see it in the revenue acceleration and also unit growth acceleration. more spending for aws as well.

he says we are investing a lot more this year in his words specifically they are in salesforce and marketing personnel. melissa, back to you. >> thank you for more reaction to the results let's bring in lung vent yurps founder gene munster he has been on the red phone listening to the conference call any juice in developments. >> melissa, two developments one on the december revenue guide we talked about being a little bit softer than typical, even the typical soft guide is i felt they gave a compelling explanation for that, the number of holiday days in the u.s. this year they talked about a holiday inn india, timing shifting and also some taxes starting in japan that pulled some bying into the september quarter so i feel like that is something that will in fact pass and kind of sets up the march quarter for potential revenue upside guidance. on the opposite end, on the expense end, they talked a lot the first three questions were about one-day delivery and the cfo mentioned they are

early in the u.s. and have been investing in this quarter $1.5 billion and said we haven't started the international piece. one-day shipping is working. unit growth jumped from 10 to 22% in the last two quarters they will roll role this out sbrengsly and i suspect that's setting the table for a year or two years of investment mode. >> one to two years of investment mode. all right. what's your grade, gene? >> i'm going b minus one-day shipping is working but didn't yield the top line punch that we really needed. great company, but i don't see it being a great stock in the near-term. >> all right, gane, thank you. great to see you gene munster of luke vent yurps. >> thank you. >> b minus one to two years of investment are you glass half full. >> i am because i've had the periods with amazon before we knew in the numberings there was a trade off between one-day prime and margin professor munster, first of all he teaches a tough class he is looking at difficult

issues structurally i think there is nothing wrong here. but i do think -- i'd be more worried about margins as it relates to aws where there is a lot of competition in the cloud. i think that's been a high margin business for them. >> mark? >> short-term pain for long-term gain they are spending heavily right now but strengthening the competitive advantage. and whenever amazon rach et cetera up spending it spooks investors and the stock price comes down then in about a year or so they turn that profit spicket back on and investors will come back stocks going up. nt,in right upex fal trades.

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for opportunity to buy a pullback in atennessee today is fundamentally fine into numbers i boo it. >> karen. >> giving up on ebay there for the restructuring. but the fundamental part of the business isn't what i hoped for. turned a good trade into an ech one i'm done. >> mark activision call of duty mobile 100 million downloads in washing call of duty modern warfare out tomorrow going to be a hit. buckle up. >> we mentioned last night that tim seymour on the hook over there rr october fest at the hard rock. in the area you should go.

just to see tim in straight pants. buy admission. the value row quarter equally outstanding vlo. >> see you tomorro 5:00 for more fast. jim cramer, "mad money," starts right now. my mission is simple, to make you money i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find hey, i'm cramer. welcome to "mad money. welcome to cramerica i not trying to make friends, but try to make your money my job is to educate, train and put it in context. so call me at 1-800-743-cnbc or tweet me @jimcramer. a day where the dow dipped 28 points and inched up 1.9