opposed to ban them. >> one of the things i think emerging between apple's call and starbucks -- so many names today -- is going to be china. and what the resilience of the consumer there looks like. >> doesn't seem loob like the it's the kworts. >> no doubt jack dorsey timed the else with that in mind. >> sure. >> that does toes it for "closing bell." >> "fast money" begins right now. live from the nasdaq market site over looking new york city times square i'm mella lee. traders are tim seymour. karen finerman steve grasso guy adami. it's if the kids said last tring are drink of water now go to bed. we debate in tempered language starbucks gets a jolt from better sales of hom and abroad and bean counting. but we begin with apple and facebook both up about the same josh lipton is on apple. julia boorstin on facebook we start with you job.

>> the a few metric i call ou iphone revenue better than expected at 33.4 billion-dollar. ive nef due 7% a sequential improvement q 23 down 12%. mac revenue a bit lighter than but wearables home and accessories better than expected at 6.5 billion and services revenue up 18%. also better than expected. 12.5 billion the q 1 forecast, mel, apple a.m. guiding between 85.5 and 89.5 the street at 87 billion one of the metric i call out china revenue down 2%. a sequential improvement in q 3. down about 4% before i did have the chance to catch you have with tim cook we talked about trends and themes. one the competition in video streaming. apple tv plus launching friday we now know that hbo max launches at $15. apple tv plus at $5. i asked cook, is that hard and

fast is that going to shift the cook telling me you know $5 is where we start but we will see what the future holds. i don't want to lock oh ourselves into one side or the other. we also did talk about supply of some of the new products that you have enough supply was does he think to meet demand in cooling are cook telling me we are manufacturing the apps loop most air pods we can during the quarter but may not be enough. we won't know until the black friday and days after. that is a worry of mine. though cook emphasizing he believes that's a good worry to have. >> josh, thank you josh lipton in cupertino shares of facebook seeing a boost off results. let's get to julia with the latest there. >> melissa facebook shares up 2% on results that beat expectations across the board. showing strength with consumers and with advertisers though two key metrics to show the growth average revenue peruser instead of dipping by a penny from q 2 grew by 22 cents better than

analysis expectations at $7.26 and facebook's most valuable market north america and canada added 2 million daily active uses after two years of stagnation brent thrill of jefferiy saying he was impressed by the 11% earnings per share beat. he will be looking forward to hearing about guidance aegis capital analyst viktor anthony saying facebook captured meaningful share of ad budgets user my grate to the platform he says what's key for the stock now is how the company guides for both revenue and operating expense growth in 2020 now, at juft the same time as facebook reported its earnings twitter ceo jack doorsy tweeted the announcement that twitter will stop taking all political and issue adds he tweeted quota political message earns reach when people decide to follow an account

retweet. paying removes that decision we believe this decision should not be compromised by money. now this move by twitter stands in contrast to facebook's policy to not face check or remove political ads drawing criticism. facebook ceo mark zuckerberg argued that facebook should not limit free speech. we'll have to see if zuckerberg weighs on the latest move on phone number's earnings call now getting under way. melissa. >> julia, is a political ad considered asset one that endorse as candidate or paid for by a candidate. >> that's one subset there were the political ads purchased by candidates for candidates and then there are issue adz this could be something an ad for gun control or against against gun control. a hot button political issue like abortion. this is something both facebook and twirpt twurt have made changes to be transparent about the ads. wanting to make it clear about who is purchasing the ads.

but this is a big move for twitter to say, look this is not a huge piece of reef revenue and fdly we think it's better to be not enabling paid political roach. >> thank you julia on facebook tonight we got lots to trade and talk about. let's start off with apple right now the stock up 1.7%. we're a% off plus the session highs. what do you make of this as apple hit all-time highs yesterday. >> the the gross margin better than expected. the services gross margin significantly better than expected, 64.1% now. services now 20% of this quarter's revenue. that's good. could it have been 21, 22% could it make had me happier i guess but that's fine. i think the first quarter guide is fine. i don't think it's anything remarkable the question is has the run from 175 to 245 wherever you are, been too much too fast and does it stall out here i don't think it should. it's good enough to cope it going. but the market will be the

ultimate juror. >> i think apple was a hardware company. then it was a services company. >> in terms of the. >> per zbleepgs bull case. >> perception. >> and now when you have people talking about maybe hardware is better than it was once perceived to be and then you throw in wearables on top of it and services up 18%, sounds to me like it's getting to the price target of may be 280 or there base i've been long staying long. >> record revenues for services. >> yeah, we're seeing the evolution happen it's obviously there because of the multiple this was trade attention very much as a hardware multiple. the street fully embraced the story of evolution north of s&p multiple, right and we'll see if the trend continues. it's pretty good considering what a run the stock had, right, the bar was not sew high because people thought all right iphones maybe don't see it yet maybe next quarter i'm wondering if there was any attempt to get iphones in the

channels prior to a potential of another tariff raise i don't no know. compass it was an impressive quarter though i thought the guide was good i'm long it could trade off a bit because expectations now are -- people aresaying wows in great and then you get a frenzy. and then -- i'm long, like the story, like the evolution. but it is getting a little pricier. >> well, i'm long and stay rung. and you say, you know, it's trading at a premium about 7% proposal yum to the s&p which is not unprecedented for the company but unprecedented in the last ten years and to take steve ace point it has been making the transition as a hardware company now a hybrid multiple. and now trading at about 18 times trailing and if you get a dynamic here where i think people are starting to really grind into the whole services revenue it's now $50 billion annualized services company this is where that multiple probably needs to go higher. and to what guy was saying, where does it come from, the stock rallied 18% above the s&p since the last earnings period

it's outperformed the s&p by 1800 basis points that's extraordinary what can it do i still think the big institutional market is actually under weight in stock. and we have seen this stock go through periods where you can see outperformance it's overbought techry whatever that means there are people defining that differently but if you look at relative strength indicators and where it's been it can move higher the fiscal q 1 guide is extraordinary when you consider expectations. >> i would have thought the sigh of relief in the after hours sessions may have been greater in response to what they were saying about china china business improved. response to iphones there good and on track for the strong christmas spaels but the fear was setting up like a year ago when we had a run up in the shares and disappointing fourth quarter or disappointing guide and that was because of china. >> right well we'll see if that manifests. ds --s in a conference call that's going to happen

we'll hear a lot of different things apple had ups and downs. starbucks made similar commentary nike as well good for apple again the first quarter guide. extraordinary, i don't know if i'd go that far but i think it's good i don't think it's great i think the quarter was good enough the gross margin improvement i think is significant and the fact to tim's point now services a $50 billion business gives them a -- should give them a multiple closer to . >> and i don't think people were bullish coming in the print. >> into the apple print. >> we started. >> apple is stock up. >> hitting all-time highs. >> it wasn't -- we started -- people talked about hardware as more of a tail ntd or surprise to the upside. but i don't think as tim mentioned i don't think people got over welcomely long ahead of the prin i think there is people waiting for this print i think this print could be the catalyst for people to say, hey, you know, i'm taking a stab at this because i think i have 10%

upside from this point. >> right. >> let me add one more thing. >> um-hum. >> steve cook talking about the air pods. >> wearables. >> wearables, can't make enough. that's his worry i mean, that's -- >> pretty bullish. >> that's pretty bullish. >> go ahead. >> services wearables were the bright spot. i think you get to a place i think the street is going to be scrambling to upgrade. i think you have a case where there is a handful of folks bullish. >> scrambling to -- we have every single firm come out rising price target dripping over themselves. >> refirmgs of services revenue with margin gives people to raise the price on a stock that frankly i think this they want to raise on. >> all right. >> and i think the institutional role is under weight. >> the after hours session will be interesting because of the trade on this stock. up 1.5%. let's get to facebook now. what dough are do we bhak of the quarter? karen your take. >> the revenue growth is -- that's extraordinary i mean this is an extraordinary business we know that i think in light of what twitter is saying this is interesting.

all right, all the ads go to facebook or is it all right facebook now under pressure to thinking about doing the same that would be a negative for facebook i mean this is an extraordinary business i can't tell operating expenses they can put a whole lot of stuff in there, right? and if i were they i wouldn't want to railroad are a absolutely gigantic quarter when eye you're under scrutiny about being a monopoly. >> it is what it is though what do you do. >> we don't know what's in there. you could put a lot of costs in there. i'm still long i think that's an extraordinary business, not extraordinary price. i stay long. >> guy, you know the initials what are they. >> fb. >> that too. i was going to rpu. >> we love rpu but that was cool that's the stock picker when you look at the 7 it 26 on the rpu >> average revenue peruser >> we don't talk about that

every night i thought that was engrained in people's hitz pch the ad revenue year over year is 29% is extraordinary when you consider the size of the company. if you look at the headlines right now 2.8 billion users a month use one of the services on a million basis. 2.8 billion. that's why when people talk about the regulatory break up and people talk about the sum of the parts. you know there are other businesses here under monetized. >> okay. let's bring in gene munster our "fast money" friend founder of luke vent yurps sitting on the desk. >> nice to have. >> you let's. >> in the flesh. >> a professor. >> i want to start with facebook since the last thing we discussed. i feel almost like investors are holding their breath for the conference call and about the op exguide. >> that's the bombshell. >> that's the bombshell two of the last five quarters it makes sense to hold breath for that ultimately they laid the groundwork to expect expenses growing faster than revenue. we'll got context around guidance i think that the probability

that something is really off base during that earnings call is relatively low, given at the core there is two real take aways here one is that the users aren't going anywhere improve are kbref over the last five quarters since cambridge analytic they continue to grow 8% year over year and separately the concept that advertisers don't have anyplace to go. i'm old. i 50 i don't use instagram. i don't think facebook or instagram with good for the world. despite my beliefs i think this stock is likely going higher. >> so in terms of the advertisers being locked in terms of the users locked in and really no movement on those two fronts, does that help or hurt facebook in the face of regulatory concerns? and should -- how should investors react to that? on the one hand it's a gad thing for -- from the investor standpoint on the other hand, if it bolsters the regulators case then that could be a booed thing. >> yeah, i think that google's probably at the bilgds risk when

it comes to regulation i think facebook has a lower risk but probably in my if you mean 2 i think at the end of the day it will elevate facebook's risk specifically how they have shifted people from facebook to instagram using that -- that connection point as a competitive advantage. >> gene, understanding there is dialogue to come in facebook with that said, of just the quarter if that's all we heard operating margins were mat 40.7%. that's as high as i think i remember seeing them free cash flow, 5.6 billion. much better than the street was looking for. i'm surprised the stock isn't significantly high tharn than it is now are you. >> i'm not just because analysts have been -- we talked about analysts with apple. we think it's a magnitude much more bullish around facebook the last few weeks expect aches were excessively high going into this i'm not surprised to see the stock only up a little bit here. >> well, we want to switch to

apple before we poff on here gene, kwhafs your take and how do you think the stock is going to finish the after hours session? >> so this is a flawless -- almost a flawless quarter. they had the hiccup around the mac and ipad but don't want to spend a ton of time on that i want to shift to the next cull at four to eight quarters look like and the comps are easier because what we experienced the last few years. and the iphones fiefgt cycle is likely a couple years. you can build a case there are relatively clear sailing as much as you can in a company like this over the next one to two years. quite impressive that's one take away secondly is we talk about warner wearable and services together they account for 28% of the business and growing at 25%. the concept -- and this is getting to my third point about the stock is essentially what's happened is they have taken a core product with the iphone and built other products around it with services, and wearables and the other piece is becoming

a really important part of the story. that to me is a consumer staple company. that's a company that should be at a minimum valued at something similar to coca-cola and to proctor and gamble at a 25 multiple which should yield a $350 stock i was an analyst a long time i know the concerns and fear analysts have and why they only raise price targets a bit laid they need to look in the mirren and say think about the two years coming and think about the consumer state your name company and properly rate it at 25 multiple i'm waiting for the analyst to come out and put the stakes in the grountd. why not you? >> i no longer workfare the development bank but this should be a $350 stock. i don't want to say a year, year and a half but it's going measurably highe >> the brian for the argument is that coca-cola should be valued at 25 times. >> maybe. >> and i think there will be people who would say it shouldn't be. >> or proctor and gamble. >> if you make the parallel there is a dangerous side to the

parallel that is if coke is worth i don't know what. >> 18 times. >> 18 let's say. >> it's traded closer to 30. >> i think this concept of a consumer staple company it's different than with facebook orr goog or other tech. amazon other tech giants it's the only company tying it all together the challenge is they are expensive products and most of the world can't afford them. but that said they are tying things together and understand the concerns about that multiple but i believe that apple should -- investors and analyst need to rethink and give it a fair multiple. >> okay. we'll be following the two stocks the whole evening facebook up 3% apple up 1.7%. gene we'll check in later on starbucks heating up earning call underway. the bank of america etf strategist will weigh in on the fed rate cut and what it means for the market and what to expect from the december meeting. live from new york city sometime square much more "fast money" right after this

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we have breaking news from the mgn earnings call. contessa brewer has the information. >> she they sell to sell the mgn grand on the strip we should move movement towards

that by the he said of theperson mern-hinted at this this is part of montana g. m plan to go asset light rather than capital expense intensive looking to minimize the assets and funding three target ebidta next year of 3.6 billion, the 3.9. the street skens sus 4.3 billion. mgm says it's on track two free cash flow per share 3.50 they want leverage three to four times defectically one times lefrpg as the leverage comes down imitate told buybacks and divides go up. the earning after release dropped 3.3% now rebounding somewhat the positive territory in extended trading melissa. >> so contessa, to be straight, this is an outright sale or. >> they would do what they did with the bellagio.

semg the land under the property but continuing to operate it yourself and that's the way they maximize the value and don't forget, they had spun off a lot of properties to mgp and owned something like 60% of the stake in that company. >> contessa thank you. contessa brewer with the news from mgm guy where do you stand. >> market mum trading 18.57 times next year's numbers. for me if you want to trade something with the same multiple wynn is a better bet because you get tail nds for a deal with the chinese. if you force to play me the game we often play on the desk. >> i'm not forcing. >> you would you rather. >> i never force. >> that's an excellent point. >> no coercion i'm going to self-play and i would rather wynn. >> if you look at wynn, wynn up 25 year to date. las vegas up 20% and mgm up 20 peppers. the two former name haves a big are mcal exposure but go with

las vegas because you get singapore in there you get three veen yews versus macao getting brody. and mgm way too vegas dependent. >> starbucks perking up on after hours. >> i like that strong fourpgt quarter for starbucks. eps in line. revenue beating expect ace comps insided 5% globally 6% in the u.s. both better than expectations. in china comps increased by 5% important market too those comps in the china and u.s. showed transaction growth they are focusing on in store experience better. moving tasks to after hours for barristas and the company said customer connection story the a all-time high listen to kevin johnson on the call ceo. >> we have strong evidence the approach is working as demonstrated by the fact that we are seeing traffic growth across

all day parts. and we intend to build on the momentum in the year ahead we continue to see strong correlation between starbucks partner engagement and customer connection leading to increased customer frequency >> now, beverages also continue to boost same store sales, particularly cold befrpgs which c.o.o. rose brewer told us in the past tend to sell all year-round now the company said cold beverage are growing across all day parts. the china has surpassed 4,000 stols. mobile order sales 10% of the mix in q 4 in china. they have 17.6 million active starbucks rewards members that's up and in china starbucks has 10 million user and the stock melissa up about 30% year to date back to you. >> kait, thank you kait rogers, tim seymour, starbucks. >> i like it the numbers are fine

i love the u.s. comps at 6%. i love the membership services up -- 17.57 million in terms of the subscription services that's about 15% year over year loyalty and ticket prices. i think the 2000 stores growth for this year is also a little better than expected although i think people are more concerned about margins and actually getting the comps high are i think the numbers are great. again stock pulled back 17% into the number after hitting almost $100. >> a 3% increase in the average ticket for starbucks which is great. >> i like the 2020 revenue guidance up 6 to 8% thap that's tremendous wrote where a we're seeing it big. >> why are you pushing for mobile workingen oh the stores trying to maki a better experience and you get the add on sales in front. whenever i'm in starbucks i'm always picking up something else when i'm in starbucks. why would you want to push nationwide it's come out. >> you order mobile you go in the store you might pick up something else anyway.

>> no i'm talking about uber when you look at deliveries with uber they try to roll out nationwide next year so if they're nationwide here and now they have the agreement with alibaba that they're all over the place in china as far as delivery, don't you want people to your pinpoint getting in picking up in store, buying something else >> is that person going to do that or are they just not going to go i think they're not going to go. >> i don't know, i mean it's the person familiar with the product you don't sit there saying wow i'm getting mobile delivery. it's a person in the store and can get it in the office i would think you want them -- you don't want to make it too easy. >> making a purchase you might not make the other thing we see about deliveries, the tickets are larger tickets on delivery if you look at the larger ticket on delivery and it's for every fast food players but for starbucks delivery. >> i was trying to figure out how they increase margin

a year ago i got a croissant. >> they sell croissant. >> this year about a fichgt of the size for the same price. >> maybe i got bigger could be. >> could be. >> this now comes to down to valuation. kaern talking about the guide. i get it if they make $3.10 let's say next year. a $90 stock. that's losty levels. not suggesting it doesn't deserve it but you're getting rich in starbucks. >> more on earnings for starbucks head to cnbc.com and squawk on the street with ceo kevin johnson, friday 9:35 a.m. eastern time. i'm melissa lee. "fast money" on cnbc much more fast coming up. >> announcer: it's all about injures today on "fast money." we'll bring you the biggest take aways from the apple and facebook conference calls. and breakdown what it all means. and later, shares of general electric topping the tape today. but can the momentum continue? that and more when "fast money" returns (soft music)

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welcome back to "fast money. i'm julia boorstin with an alert on facebook. facebook career mark zuckerberg kicking off the earnings call by defending facebook's position to run political advertising. this comes after twitter announced this they will no longer run any politic willing or issue ads listen to what mark zuckerberg had to say. >> we estimate that these ads from politicians will be less than 0.5% of the revenue you next year. that's not why we are doing this to put this in perspective, the f.t.c. fine the same critics said wouldn't be enough to change incentive was more than

10 x big are than this the reality is that we believe deeply that political speech is important and that's what's driving us >> i just want to note that cfo david wayner made the comment about the revenue outlook saying they expect pronounced deacceleration of the growth rate in the q 4 and said therefore 2020 revenue did he acceleration would be less pronounced. >> thank you very much, julia. i don't know how i feel about what mark zuckerberg said. it seems a weak argument that we have such a small amount of revenue as a percentage from political ads we believe political speech is important they're not asked to ban political speech that's not the issue here with swirt twitter. they're banning political ads there is a difference. so it would be inconsequential to the bottom -- the revenue line. >> i'm sorry i thought that i heard that as ads. i don't know i understand what you are saying

it's not political ads that's tiny if it's political speech that ultimately leads to adz is that what you are saying. >> political adz is a small percentage they could do away with it and feel no impact financially. >> but he is saying. >> because we believe political speech is important. >> right. >> but there is a different between speech and ads >> political speech is at the core of the biggest issues, no i think that that's -- ultimately it's nice to point out we're not reliant on elections but i think what people really care about is have you gotten a handle on the security issues on your site i'm not sure -- gwen we wait for the call to hear about margins, i think they have to spepd. >> i don't think he wants to do it because it's opening up pandora's box and what else does he have to control i don't think they can do it how would you use that leverage -- how do you know what to shut down, what not to? how much investigative work do you do they're worried about breaches worry about braechgs upper back spend money and have

security breaches that's one you sh issue but when you worried about thp this when twitter says they are not having it and you get a lot of guys -- not just guys, money managers that want to sell facebook and buy twitter based on performance based on performance where you lighten up on a facebook position and then you buy twitter that's down 26% recently those people investing are thinking twice because now you have to see what time of material impact you're getting on twitter so twitter just talked themselves into a big are decline. if you wait for something in the hole to buy twitter because you'll get a chance in the mid-20s and see where it lies from let's switch gears, the federal reserve cutting indicates again but indicate being it may be the last one for a while. let's get to steve liesman with the latest. >> hey, melissa. that that's awl folks. chairman jerome powell announced in no uncertain terms the fed is

on hold unless there is a material change to expect aches. >> we think the current stance of policy is likely to remain appropriate. likely to remain appropriate as long as incoming information about the economy is broadly consistent with our outlook which is a positive one of moderate economic growth strong labor market and inflation moving close to 2%. >> bringing the overnight lending rate to 1.75%. trade concerns and global economics behind the cuts this time process but the fed says it's provided a lot of help to the economy and that's enough for now. dropping the phrase from prior announcement acting as appropriate. that had been the signal to markets that rate cuts were on the way. instead the fed says it will the assess the appropriate path of the funds rate that means being on hold a while now. what would it take for the fed it to resume cutting he says economic data would be would have to be weaker. how about a hike that's far off too he says.

>> i think we would need a significant move up in flan inflation that's consistent before raising rates. >> markets now see a 20% of rate cut in december and don't pak bake another in until march and barely at that a trivia question for you, are you ready melissa. >> yeah. >> what was the funds rate expect aches for 2020 this time last year? >> oh, for 2020? >> for 2020? >> wow close to 3 what was it, steve. >> 3.4. >> oh be wow okay what is it now. >> let's do high level math on national television. i know you're a harvard person you'll do this. >> i went a math person. >> i went to the university of buffalo see if we can do it. 3.4. now hat 1.6 it which i think is like 1.78. >> yeah. >> there's been 1.8% of relief. >>ia sure. >> 75 basis points of actual cuts but a percentage point

coming off of the expectations for future rate cuts that's we're -- that's powell's thinking there we provided relief we cut -- we reducing the balance sheet and we got rid of the hikes we were going to give and cut rates >> i think that's a nice way of thinking about it. but a lot has changed also in the past year in terms of the data on economic expectations. >> yahdy yadda we in a trade war, right. >> a minor detail. >> the minor detail. >> no biggy. >> that's a good point, melissa. actually powell made a pinpoint about in which is worth saying he says you know we have the same economic outcome we projected. but we're only getting there with a much lower fed funds rate so that's really what he is saying we incorporated all the global economic weakness and the trade war. >> right. >> he does -- basically he has the optimistic outlook on the economy. but only getting there through a much lower funds rate than initially projected. >> right. >> that would get there which

was a 2% growth rate. >> steve, thank you as always. >> pleasure. >> steve list liesman from washington, d.c. for more on the fed decision today let's bring in marry yaen bar tells etf strategy at bank of america we saw fed funds go down in terms of expectations for a december cut are you there? only a 20% chance. >> our economists are there for this year. but there is still concern that the economy can slow into 2020 so we haven't taken another rate cut off the table. we think there is risk you get a rate cut in the first quarter of 20. >> so what's your expectation about global growth? do you think the rest of the world is bottoming and that provides a floor. >> well we've been -- the global economy has been slowing the u.s. is slowing but not enough to see a global recession. we stay in that camp that we kind of muddle along, muddle our way through without seeing a major recession.

right, there is some european economies on the verge of a recession. but we don't see any major global recession >> so if you see trouble ahead for the economy next year, your investing in terms of the sectors you like are cyclicals so how do you sort of navigate that are you in it for now. >> so, yeah, we still like cyclicals because we are not calling for recession. we think the fed will remain accommodative. we think cyclicals attractive on valuations particularly the financials we actually still like the financials. we also cover etfs, one of my new roles at the bank. and one of the way you can do that is through the kbwb, etf kofrpg the kbw bank. we find them attractive. they have clean balance sheets still attractive foredividend yields for the longer term investor we think there is a risk reward that's positive. even if the economy slows and

the fed cuts rates. >> the bond market in terms of volatility with he see 10-year yeeltds in the curse of a year go from 3.25 back to 1.5 back to 1.85 1 ht 47. currently levels does the volatility in the bond market which is larger in market cap than the equity market is that concerning because if you associate the same volatility if tilt in the equity market we'd have different conversations on the desk every night. >> we don't think people are talking enough about that subject. we wrote about it, the firm wrote about it, how the volatility in the bond market is very high and if you look at where the returns the equity market looks a lot better than the bond market. what we're telling people is expect continued volatility in the bond market. we're still forecasting, the rate strategist think rates have going down even though temporarily backing up here and

that the trend in rates are lower. >> mary anne great to see you thank you for coming in. >> thank you. >> what i thought was interesting was the equity markets were stable. the press conference but we saw buying into the trt up 1.5%. what did you make of that. >> the yield curve flattened a bit. essentially the fed told you we're going to assess the appropriate path was the hawkishness. dollar weakened up and yields down told you the fed is going to be more accommodative than you thought. >> coming up all over big tech earnings with apple and facebook and lift lyft all on the move in the after hours. we bring back the tech earnings renaissance man. gene munster to fwrad the results much more "fast money" coming up non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad, because you have e*trade, whose tech helps you understand

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but the stock is now heading for a u-turn. >> so great. >> yeah. >> well, i mean they've been telegraphed a little bit not long ago about two weeks, they expect to be profitable i believe the fourth quarter of '21. that sort of gave you -- this is not widely different from that that was sort of a heads up. god for the industry maybe we are seeing some rationalization of pricing, should be good for uber but i'd rather own lyft >> upper backer is down a% in the after hours. i think that's an interesting reaction. >> you have to pick which side of the fence you want. do you want uber that has a lot of leverings pull and can be more diversified obviously the market wants to know they're laser to focused on this but i would be rather be an owner of ubfer eastbound if the businesses are not profitable. i'd rather know there is a couple of buckets to koos from versus having one. >> if you know the other businesses might not be voftable then they're not levers to put

just drafts. >> i'd rather have a couple of buckets versus one i know can't be. >> but the buckets are leaking, right? >> five leaky buckets or one >> depends on the leak. >> there was an environment in the market wanted those add-ones to their car so i think that was where uber was get going. but in fact that's right it's driving with the brake on. you have a case here where i think people reward the pure play even though structurally i wouldn't get excited by the numbers at all the short interest is 6% on the stock. there is no one -- very little confidence out there and these numbers don't sway the confidence even for the pure play. >> i'll say i actually like litt gou back to the july quarter a $60 stock. they told bus a pathway to profitability. if we are in we remember in the after hours it was $63.5 stob. the only thing did he railing other than uber which was a disaster was the lock up came due and we are talking about

$295 million shares or so coming free i think in august the 18th. now it's a $43 stock and again laser focused op profitability i understand the uber argument but, again, second time tonight would you rather i objectly would rather, lyft. >> self would you rather. >> same show. >> coming up, energy stocks getting zapped this year as the worst performing sector but options traders bet one name is about to come back to life on theaine rngs week. they gave you the name stay tuned

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this is just coming. the white house responding to twitter's removal of political ads campaign manager brad parzyckle saying twitter walked away from hundreds of millions of revenue a very dumb decision. meantime facebook shares turning sharply hire in the after hours. up almost 5% at this point let's bring in gene munster of luke ventures to discuss more about this conference call first, your reaction to this and is mark zuckerberg's statement about political ads and sticking by them is that the oh stock turned. >> i think the ultimately there is a concern that facebook had a lot of luchyness in their

business too we haven't talked as much about it but next year around political ads and him gichg context that this isn't lich lumpy that everything is organize inic and core and can be relied that was a shot of confidence for investors. that's primarily what's driving the stock higher it seemed to be tied close to the comment on the call zuckerberg's comment about that. >> have we gotten anything about op exyet. >> not much they've been coy about that piece tp at the end of the day i think this trend of op exmoving more in line with revenue growth is probably eprobably the skens you but they've been coy on the call. >> there is no sense yet for the investor community whether or not op exwill have to go up going into the political season. seeing they are sticking by political ads. >> i think that the fact that they haven't said it's going up or reiterated that is a sign by deductioning -- people deducing that they are sticking with effectively revenue growing at

the same pace as expenses. and i think that also is a piece of confidence. i was really surprised to hear that again someone who i try to be as mid-of the road as possible. but i have leanings more negative towards facebook. i was impressed. >> do you think that twitter's decision is going to hurt it in the long run maybe help facebook >> yeah, ultimately, yeah, i think that's -- the irony here is that this will create a little bit more of political advertising related to facebook's business. >> switching gears to apple, you're a busy man. you got two ears and two calls we're still up in the after hours session here gene, anything standing out to you. >> they came out a data point that wearables accelerated to above 50%. 50% for the previous two quarters probably like 5 a peppers that's impressive they also mentioned that three-quarters of the new apple watch buy resist -- apple watch buyers new to the platform process. we estimated about 75 million apple watches have been sold

lifetime to date that's a big dressable tamp apple doesn't break it down. we can back in the numbers they have now sold about as many air pods, 75 million as apple watches. another part of the story is to watch the trajectory they hint to this with wearables. watch the tranltry with air pods, obly with air pods pro but cook also reiterated that the apple contribution will be healthcare he said that many times before which makes me think of other biomarkers related to wearables. >> quick grades on quarters. >> i'm going with a b plus for facebook originally i was a b moved that to b plus and a minus for apple. >> marred greater, right. >> thank you. >> who wants to be in professor murnt's class. gene munster for luke ventures we stick with earnings options traders bet upon a energy stock this we can. look at the cramer cam jim breaking down one group of stocks he says is too cheap.

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earlier we indicated this response to twitter's removing political ads from the trump campaign manager brad parse could from the white house it was not from the white house. it was from the trump campaign we wanted to make sure we made that clearly distinct, the distinction very clear from the campaign, not the white house. switching gears here we are closing in on the tail enof a busy week of earnings but not done yet exxonmobil reports before the bell tomorrow after getting out to a hot start in 2019 the stock findsitself in need for fuel for turn around shares tumbling in negative for the year traders in the options market betting this stock is finally showing energy mike khouw in sunny las vegas to break down the action. hey, mike. >> exxon saw about two times average daily options volume today. implying a move of 2.5% op earnings but it was a longer dated december 2.5 call that saw the activity, about 2,000 traded for

27 cents buyers of calls betting it's ridesing above the 72.5 strike price for quarter they paid up 7.8% by december expiration, seven weeks omfr friday. >> thank you for that mike see you friday up next, final trades. >> announcer: topping the tape is brought to you by old dominion freight line.

apple still up 2% after hours. and facebook up 5% this does it for us. see you back here tomorrow at 5:00 "mad money" with jim cramer starts right now >> my mission is simple, to make you money. i'm here to level the play field for all investors. there is always a bull market somewhere. and i promise to help you find it "mad money" starts now hey, i'm cramer! welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you some money my job's not just to entertain, it's toejt, it's to teach to inform call me at 1-800-743-cnbc or tweet me @jimcramer. everybody's focused on the fed right now and with good reason they just gave us that quarter-point rate cut we wanted soad