to accelerate red hat. the question is about whether red hat, you know, can do enough to accelerate ibm. >> lisa, thanks for joining us we appreciate you jumping on the phone. ibm up 4% on the news of arvind taking over as ceo that does it for "closing bell." "fast money" starts now. live from the market site at the nasdaq over looking times square this is "fast money." i'm david faber. trader tim seymour karen finerman steve grasso and guy adami. and we kick off with two major stories. ibm up sharply on news that ginni rometty. stepping down and she will stay on as chairman for a bit we give you the breaking details on the story straight ahead. but we start with the earnings alert. amazon, touching new all-time highs, after a blowout quarter earnings and revenues topping

expectations the cloud of course continues to be a big engine of profitability for the company. amazon giving up weak guidance for the current quarter and the conference call kicks off within the hour the stock up almost 12% in the after hours, back to the trillion dollar club first time since september of 2018 of course oh joining microsoft and the leaders till apple there. guy, start with you. give me your take. >> staggering quarter. 4.5% operating margin is a ridiculous number. i didn't see this coming i don't think a lot of people did in terms of the magnitude of the eps beat staggering. >> but 2025 near the all-time high back in the summer of '18, '19 the 2025 level is now the line in the sand. i understand the reaction in the after market to this because i think a lot of people didn't see it coming and are

chasing. it's euphoric zbroorjts. >> not euphoric when you consider how unloved it's been it's underperformed. think of the blow out earnings we had from microsoft, apple amazon is a strong number tleep in the nasdaq 100, underperforming by 20% in the last six months. the bar going in was very, very low and not surprisingly it's aws that's the victor. if you look at 67% of their profit and even in a competitive landscape we think cloud is becoming, these guys are dominant. >> it's a matter of positioning, you have both said that. you have google and microsoft for aws i would imagine that margins will be compressed going forward. in after hours, it means that everyone was off sides it doesn't mean there is conviction here. i don't see it that way. most likely i would fade this.

>> you think this is shortcut. >> no, no i think people were not expecting them to have this type of a blowout number. >> as well. >> after lagging and especially after bezos said this was an investment cycle i think for that, it caught a lot of investors off guard i think it might be overdone the next day or so. >> i think that's true but also the guidance was a bit more optimistic. i don't think they're normally in the business of giving optimistic guidance. i don't know how much of the moch that's good for but it's something i think the read through probably to given microsoft's cloud and in re cloud here, i think probably it should be google -- good for google cloud. >> we'll see next week. >> there was concern with the strong microsoft numbers that perhaps the market wasn't growing as quickly as microsoft was taking more market share with azure perhaps that's been answered i mean, 9.2 billion in operating income from aws.

>> with the negative headwinds from the pentagon. that was something where got investors. >> because it had become more competitive. aws was the clear leader so long and google now, guys >> no question, goes to show maybe the pie is big enough for everybody. but i have to say in terms of the stock, remember last quarter is when it cratered down to 1750 and people runs for exit doors we had a conversation that day i remember being on the show saying if you are selling it today you're doing it wrong. you could make the make argument now if you are buying it now you are doing it wrong but with that said the magnitude of the quarter is astounding to me. >> lets get more on the quarter from josh lipton joining us right now. josh, the call hasn't started. you never know what amazon shares on the call in terms of guidance, filling us in a bit more and how much they are spending to get things to us now by the minute perhaps instead of the hour

>> yeah, fair point, dave, the call does start in about a half hour just to add to what you guys are saying, the three big segments beat be, north america better than expected 53.7 billion international beat, 23.8 billion as you were discussing aws grew 34%, better than expected at 9.95 billion and another coming in at there has been concern about the growth rate of the aws. and the a tick up on the operating mannen from q3 the cfo had a media call high pressure let me bring you the highlights on his call with the reporters. he talked about the greater efficiency the company sees. they are getting efficient in transportation and warehouses, getting inventory closer tor customers of course. they've been spending a lot of time and money reducing shipping times to customers handling product he says more

fluidly. prime membership, the new number today. announcing 150 million prime members. last time we got that they said about 100 million. he was it was accelerated starting the one-day program he says the benefits are popular with folks free grocery andmedia the benefits coronavirus. he was asked about that. he said no update on the supply chain. they are starting -- we have heard this from a number of companies putting travel restrictions in place to protect people no visibility on q 1 impact. the call with analysts starting in 25 minutes. >> thank you, josh amazon had been the laggard for some time wheel the rest of the big cap techs went parabolic. >> ballistic. >> facebook down today

but still up more than amazon until we get to tomorrow morning and see where the stock opens. >> i guess the question is, at this point what -- if you walked in just landed from another planet what do you do with amazon here? i say you look at the quarter, put it in your. >> they probably deliver you from the other planet. >> less than a day. >> bad joke but you never know might happen. >> you look for the pullback to previous all-time high, which is 2025 you have a conference call you have to get ahead of they talked about a spend, we'll see if that comes out again. i think it could scare people. >> it's important for investors to understand how the street values the stock it's a blended multiple. some multiple of aws and the core, which is obviously astronomical in terms of top line but you give about a 10 times revenue knew number on aws the numbers are pretty easy to crunch the math. makes it a $trillion dollar company if you go ten times.

deutsche bank took them up to 11 times revenues that leaves 30% in the valuation to put it 1.4 trillion on the upside if you want to listen to -- >> now off of these results, i hate to get negative on it but off the results how quickly do we hear the spin on the political side about breaking up this company because when you look at these type of results and see them dominating every area they are in, in video, consumer's homes, aws, it makes me think it's going to be politicized in the next couple weeks. we trade off headlines you see algos sell this quickly. >> we are seeing analysts jumping all over each other to try to have the high on the street which is now almost 2500 it's almost universally outperform or buy. not anybody nesting gative on i >>en oh the prime membership

they added the most prime members ever in this quarter when they have never had a bigger number. greater than 150 million, which locks people into the ecosystem and means. >> you said the stock is aws it is. the rest feeds into the beast. and damn good at it it was before this it was apple now it's an amazon world where everything fits in from the core business and aws is not as tangible to most people. it's kind of a weird play off of it to analyze for a lot of the street. >> yeah, again, 9.2 billion in operating income for aws during the course of last year on 35 billion in net sales for the company. that's where the margin is for them as well steve pointed out we're also following breaking news in the last half hours. in on ibm, the shares up on news anyone y rometty stems down.

the currently head of the included and software segment is taking over on the 6th of april. rometty ramer as chairman, has been the ceo since 2012. investors like it right now. it's been a rough go no doubt about it. in terms of trying to invest in companies that are going to grow faster or invest in parts of the business that are going to provide some sort of growth while of course you have this book business that's normz not growing. >> software and those services but certainly koud we talked -- they reported last week they had a gad quarter and grew revenue 1%. they had this trend of bad quarter good quarter and they keep doing that. and the stock was where it's gone in the after hours last week and sold into this news but there is no question that the speckation gnat red hat acquisition gets them to the place that puts them with the other people we've been talking about the last five minutes.

that's the story here. and this is certainly an insider from ibm that i think people feel can take it there. >> short of me butchering name. >> i do that nightly. >> you do that. >> i knew the name i said it incorrectly. but i said on the fourth quarter january 22nd this is a perfect opportunity for her to leave the firm and hand it over to somebody else. that's taking place now. to tim's point, the stock is back to where we were a week ago post earnings. i'm not suggesting this is microsoft by any stretch but a lot of people thought microsoft was impossible for them to turn that aircraft carrier around five years ago. they did with the red hat acquisition although paying through the nose for it ibm might be upon the verge of similar sell it at your peril. it's it could be a surprise stock. >> isn't it odd they haven't turned it around sooner. if you look back 2013 was the high. $215 down 40% basically from there

unher watch. >> earnings are not better either. >> i don't believe they could turn it around. >> doesn't take into account the significant repurchases, so in fact, the earnings -- i mean as it ends up, those repurchases. >> lost warren buffett along the way who was relatively brief for him was a important investment. >> it should be cloud, ai. it's an amazing company it's not translated to a better stock price. it's still on a declining trend line back to 2013. so to guy's point, you have to break that -- break out of that trend before you get new investors willing to get onboard with ibm because they see it as the old company not new. >> on red hat, remember people were horrified at the price they paid for it. actually in hindsight it looks genius when you sr. consider the synergies that seem to be working for red hat. and sequentially they went to 24% growth on red hat meaning they are getting the synergies

and maybe this is the multiple you pay for- >> i had one conversation before we got on air with somebody involved said it's been six to eight months the board has been thinking about, most important single thing a board does is decide who takes over the company. they have been doing that. martin schroeder had been somebody who might have been a candidate to take over whitehurst stays because he has been thought of perhaps when he steps in the ceo role. he is 52 the new gentleman is going to be 57 i guess he is in play as a future ceo but they coop keep him importantly and moves up to president. >> to imtim's point. but in today's environment given what's happened they have to pay another 30% more for red hat today than originally. they overpaid but they had to. not unlike major league baseball times have to overpay for a player just put going out to the met

fans on the desk. >> but the new leader to your point has to be somebody from the cloud divisions, from those divisions. >> industry data, ai. >> right that stuff. >> things that are growing faster but can outpace the significant decline and the legacy as they call it businesses we see this a lot. you try and change a company like this doesn't happen overnight. >> a company like this. >> still has what, 400,000 employees. >> right she is staying on until the end of the year. the any sensed she would leave as chairman and get someone new seems to be a good governance practice to have a new kmarm when you have a new ceo not the old ceo. >> i don't know whether it's a split role or not. that's an interesting question when she departs will he take over as chairman or not. >> quickly on valuation, if if even matters here, picknell it always has to matter but if you look at the megacap tech space and what's been going

on here ibm trades at 10.5 times next year. we're talking about a company that had trouble growing earnings but the valuation if you look at relative value a a a time when megacap tech has had a huge run. people have to think about ibm on this context. they are buying upon a ceo certainly committed to cloud and we have seen this movie before. >> curious to see what rometty chooses to do as well. i have seen her around conferences. it's always a sign communicating a lot about a lot of different things beyond ibm. >> is that running for office. >> you have to wonder. >> looking to be head of a university. >> i don't know. i'll be curious to see what she end up doing of course she will be executive chair until the end of the year. the earnings parade rolls. we track visa western digital, electronic arts, levi out with numbers and big moves associated with them. plus of course we continue to focus on amazon's big move in the after hours. the company call is about to kick off and we will be on it monitoring

it stick with us live from times square in new york city. a lot more "fast money" right after this ♪ everything your trip needs, for everyone you love. expedia. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

or here on a wifi hotspot. lte xfinity mobile has more coverage to keep you connected to what matters most.

that's because it's the only wireless network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. save up to $400 a year when you switch. plus, save even more with $100 off galaxy a50. click, call or visit a store today. ♪ g♪ i want to go, go,es go where my baby is ♪ hey. hey. you must be steven's phone. now you can take control of your home wifi and get a notification the instant someone new joins your network. only with xfinity xfi. downlaod the xfi app today. welcome back to "fast money. the earnings keep rolling in as

you can see. western digital, electronic arts both moving after reporting results. full team kormg on both names. julia boorstin standing by on ea lets go to frank holland with western digital. >> rising shares 6% after hour after strong guidance from q3 revenue and beat revenue and eps. four% above what the street was looking for a bit of recovery story por the chip maker that has had a few days appointing quarters analysts i spoke with said they are focusing on sequential growth in revenue especially for flash segment. long bull research said the quarter was better nan expected. we notice better trends. there was a lot of investor concern about the execution in the nan flash business the concerns were how quickly gross margins recovers from recent bottoms i think they addressed these concerns the hard drive business flat sequentially but gross margin

improvement poef wedbush said the hard drive business underperformed on the revenue line spebl aches making up with revenues paying dividends with benefitted the had hard drive gross margin. the earnings call under way at 5:00 the stock improved 62% the past year and up more than 6% right now. back to you. >> frank,thank you lets trade western digital. >> a major double bottom around $37 from the spring and winter of last year the guides suggest it's not as commodity advertised as the market fierce but you have to ask yourself how much room to the upside. 8, 10% of the move but this is a company that as soon as it doesn't look commodityized. but as soon as you get 8, 10%. take the money and run. >> no one believes you see rationality among the core players and that's what they are priced for you see return pricing in nan

pricing and ssd, getting better. but rationality in this sector you have to believe in that players don't overproduce. >> you have to trade off technical though to guy's point this was working on a relative strength index that was basically overbought. came in a bit. now it's overshot. but i think it's about a turn around story where i would rather be a seller here than a buyer in western dij whenever you try to sell the little momentum tops you are a winner in the stock. on the back of his results and julia boorstin has more on the numbers for us from los angeles. julia. >> david, that's right ea shares now just down over about 2% they were down as much as 5% after the company reported its results. the call is just now under way the company's stock gained 15% since the last earnings.

now fiscal fourth quarter top line guidance was less than wall street expectations. digital net revenue came in lighter nan wall street expectations as well total net books for the quarter of $1.98 billion was a hair ahead of estimates 19.9 billion dollars. ceo andrew wilson on the call talking about the company progress growing the digital business, the company saying that digital net bookings over the trailing 12 months up 15%, now representing 77% of total net bookings the company also updated guidance for "star wars" fallen jedi ea says it expects to sell 10 million copies of the video game by march 31st. back to you. >> what do we think here. >> active vision. >> a bit disappointing on the guidance, revenue miss of all things i like revenue beats even if other things get in the way like costs.

so revenue miss is disappointing. although the stock has had the tuj run as julia said. take it back two or three beats it's not a disaster at all. >> usually the stocks do better when you have a new game console introduced we haven't seen the consoles introduced that's probably back end of this year but look at act vision and take to you both reporting february 6th. you could see pressure put on them if they sell off into it i would be a buyer on the dip. >> i think it's interesting it's not sold off more than it has. it's encouraging actually given the run up that karen talked about and the guide. you can say 23 times next year's numbers expensive. i'm encouraged by the fact that the stock is coming back here. you could walk in tomorrow david on your great show by the way. >> thank you. >> squawk on the street. >> i watch it! >> really? >> you don't have to name it it's one of things mbds you don't have have to say

monday night football. >> you do a great jimmy chill. >> that's his name. >> it might be positive when you walk in tomorrow >> actually it helps because i know what's going on i'll be able to actually -- >> hey guys we hit it all today this is what we do. >> i think on ea this is a stock recovering off the lows at 85. -on done so because the expectations on the key titles, including jedi, speck aches high pieper's research talking about twitch and the ea titles are ranking quite high so 12 times on a trailing basis. and that's maybe what you're not supposed to do because the better days were in the remember view. but we talk about the gaming stocks as targets as well in the media space as ner really the new form of media. >> streaming all these other paid services, everyone needs this type of an asset under their belt i'm surprised it hasn't happened sooner

but i think the m and a activity has to happen with one of these top names. just for the lie brr braers. >> there is talk about consolidation. but i don't know they're big names. it will be interesting if perhaps we do see something this year but not the first year we heard that. >> but to your point, important, i guess, zony and microsoft later this year with a new console. >> correct. >> coming up, we have two more big names on the move in the after hours. visa shares down, this after reporting results. and levi strauss making fresh comments abouthe tcoronavirus. we give you the details when "fast money" returns

welcome back to "fast money. the earnings extravaganza

continues. visa, levi strauss two other names. visa down. levi up. first lets get a take from kate rooney in san francisco on the visa numbers. >> hey, david, visa saw a boost in quarterly profit thanks to higher consumer spending during the holidays but visa saw higher operating expenses, up 14 peppers in the quarter, which is weighing on the stock. otherwise, the quarter pretty much in line with expectations eps came in as exactly the number analysts were looking for. a 12% increase from last year. revenue a touch light though payment volume grew 8% in the quarter. visa announcing a 9.5 billion-dollar stock buyback visa has been hon a deal spree this year. and in 2019 growing outside of the core card business through acquisitions in october it bought ram bis and a couple weeks ago announced acquisition of clad. analysts looking for details about how the companies factor

into the long-term plan. the ceo just now mentioning strategic partnerships in africa and taiwan and highlighted the agreement with the venmo card. investors are curious about china now the phase one trade deal is signed some want to know if visa and other firms might do business there. visa had seen a huge run up to earnings up more than 45% year over yao year on pace are rival master card david. >> thank you, kate the market caps always amazing master card is 330 billion-dollar and $450 billion market cap company. >> the stock was a monster the last decade. we talk about tul the time doesn't surprise me lower in the after hours. because in line is not good enough on this valuation but it seems to a happen every quarter. you still have mid-teens eps growth low double-digit revenue growth.

i think you buy the dip in this name. >> i think you are right this multiple, you know hitting the numbers is really not good enough particularly yesterday we saw master card which had better numbers and master card has done better since the beginning of 2019 they are -- they are both very rich though. i own master card. it's one i wrestle with. i can't in any way say. >> do you think the network for the venmo card should have been a bigger deal? i know it's a small -- the growth seems so outsized for venmo. paypal has no clue what to do with that. but it seems like it's such a tailwind for visa. when you look at the long-term chart of visa, you can't argue with tp obviously it's overbought but works offer the rsi. >> money making machine. >> the best chart on the space. >> the 10-year on this is incredible. >> isn't that the point, david they are growing mid-teens if you deliver mid-teens growth in a business like this, that's pretty darn attractive which is

how you get to 3 times forward multiple and a company going from $80 to $210 in two years. we talk about apple. that's extraordinary. >> you don't mind the multiple. >> i think in in environment people are willing to play that but growing 15, 16 times on eps is something you hold your nose on in this market. yeah. >> think about that chart as the evolution of e-commerce, that overlay is pretty good there and i think -- i'm staying long. it's rich. >> just to be -- go ahead finish the statement. >> it's rich but i think the valuation is warranted >> just to be reasonably, the 50-day. >> we're being unreasonable. >> i was being unreasonable when i opened it pup just to temper a bit. 189. they had a bunch of checkbacks with the 50-day moving average i would leak for a check back. >> the reference to rambus.

>> i engs inned to you last night he was the glue. >> he was the glue. >> that was the original name of the sylvester stahl own move. >> rachlt ambu, the long sad tragic line of coaches. >> it was so sad we forgot about it. >> we won't talk about it. lets move to revye that stock turning around after hours. the company making comments with the coronavirus. rahel at headquarters. >> this is the third time the company reported earnings after going public last march. higher on 2020 guidance, the move up 2.2% the quarter mixed one headline getting attention is from a reuters report, the cfo saying they are sheds stores in china due the virus outbreak.

china was a strong growth area they opened a store in wuhan, the ech center of the outbreak they are saying the virus results in a near-term financial hit. the cfo spoke about it on the call. >> the plan is to accelerate growth in 2020 and december was a very strong month. and then the virus had a significant impact to our business in january. it's really unfortunate how the outbreak of the virus has been impacting people's lives especially during the chinese new year we are taking in seriously and responsibly with the top priority being our people and business partners. >> now, david, china is a small percentage of the company's business but the ceo telling cnbc in a company in april that it was a top priorities the americas are where the company gets the majority of revenue. but last quarter they said the sales were flat at home. >> thank you, rahel.

we started on squawk on the street talking about the coronavirus and the impact how can you not? haven't talked about it this show guy, i'm curious you see it obviously continuing to grow. >> i'm in the minority where we think it gets worse before better i hope i'm wrong, clearly. my concern is the u.s. consumer -- things change extraordinarily quickly. you walk through times square you see more than a handful with surgical masks on. you wonder at what point does that affect consumer behavior. we are closer to that than people realize when 73% of the economy is driven by people buying things you have to be concerned >> i was going to say i'm not that concerned actually. because i think even that happens. lets say it's a given which i don't know it is but lets say it's a given. when companies report i think they have a free pass in this quarter to say we were impacted by the coronavirus certainly yen that has meaning parts of the business in china.

>> they have a free pass. >> every other disease resulted in a buying opportunity. with much higher fatality rates. so obviously nobody wants to see anything like that but with mers we had 30% and sars more than that. >> more cases of sars. >> and in the u.s. sars and mers i don't believe there was in fatalities in the u.s. but it was never out of control. >> but china is the second largest economy in the world. >> and we made it through sars and a bunch of other issues. >> they have 56 million people on lockdown. >> exactly they are more proactive this time around than with sarps. >> and i think that may be part of this. if you think about the social issues that the government faces in china and then the social issues that employers face, injury it's probably the right thing to do to close half the stores i don't think -- and in other words i think there might be

pressure on companies to do stuff like this. therefore doing the right thing and smart thing as well. there is nothing structurally broken about this. i don't love the valuation i think it was priced more as a growth stock in the ipo last year but i think you et to a place where in the short run -- i said this about casinos, a much more controversial thing. but there is nothing structurally wrong with the chinese consumer that wasn't wrong yesterday. yes, this is a virus, a tragedy, a time for caution and that's what the chinese government is doing. but it's not change the levi business in china six months out. that's my view. >> we'll watch many of the companies that have significant presence, starbucks, mlkds, levi. >> levis yeah. >> guy you were a lee jean. >> no, i wasn't and you know that i said many times i'm a 34-23. although i could go 34-30. becausist i have short legs. >> your legs are that short.

>> force of max must. >> i'm all torso and still short. >> what can i tell. >> you we have more today on the big earning earnings report and hear what everybody else wore when they were younger. >> measurements from guy. >> a stole for his feet. >> that's cnbc.com you can read about amazon being up after hours. also, a lot more there, ibm jumping on the news that anyone y rometty stepping down april 6th. adds to the gains in the after hours on that stock. you got to stay tuned how the stocks open at 9:30. don't forget that. >> good show. >> exactly we'll have more though on the big stories when "fast money" comes right back. - [narrator] at southern new hampshire university, we're committed to making college more affordable. that's why we're keeping our tuition the same through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu.

and now for their service to the community, we present limu emu & doug with this key to the city. [ applause ] it's an honor to tell you that liberty mutual customizes your car insurance so you only pay for what you need. and now we need to get back to work. [ applause and band playing ] only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best... to managing your fleet... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

welcome back to "fast money. if you're just joining us, we want to recap the big breaking news on ibm. ginni rometty stepping down as the ceo of the company she's been in that role since 2012 she will be replaced by are avein krishna effective april 6th. he's the svp of the companies cloud and cognitive software segment. rometty will retire at the end

of this year after nearly 40 years with ibm she will stay on as executive chairman as you see, market reacting positively to that news. we're all over the big move higher for amazon. look at this stock, market cap now eclipsing a trillion dollars. this as the conference call gets under way. we're listening in, we'll bring you all of the hdleseain and "fast money" is back in two.

man: how can i deliver superior long-term results? it begins with a distinctive approach to managing money. 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. with a nation-leading $150 billion commitment to infrastructure,

we're creating state of the art, 21st century transportation hubs, constructing new bridges, bringing high-speed internet to every corner of the state, and committing to low-cost clean energy. with infrastructure built for the future, the companies of tomorrow can thrive here today. see your future at esd.ny.gov. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

welcome back to "fast money. amazon shares up 11% following the blowout quarter of the company's call is under way. to josh lipton, who can give us some highlights on what's going on josh >> on the call, david, no surprise, questions about aws, the company's cloud computing business its profit center. showed up better than expected performance in the quarter on the call, analysts having some questions about the strength there, asking executives with those dollars added, would there be anything they would call out specifically on workloads or regions. executives saying when it comes to aws, what you're seeing is broad-based strength, adding new products and features. they're adding more to the sales and marketing teams. we know they're investing in the business that they're products lead the market and add to it

faster than the competition and continuing to expand of course, we also saw rival microsoft report better than expected numbers too this week another question on the call analysts have, executives, what is driving the upside to that revenue guidance their executives saying, strong holiday performance, big uptick in response to the one-day availability prime strong too 150 million paid prime members, more people join prime in q4 than any quarter before. david, back to you. >> josh, thank you more on amazon's big beat, joining us now is jared wisefelt for jeffries nice to see you. what stands out for you from this quarter and sort of what could be a read more broadly as well. >> sure, absolutely. you hit the nail on the head earlier when you look at strength in amazon's quarter, significant investor fear on two aspects, one, the slowdown in aws over the last three quarters, decelerated each quarter. so i think there has been competitive fears that microsoft has been gaining share on the

margin, posting that 34% year on year growth rate in the current quarter was better than expectations and earlier point was spot on you look at amazon over the last nine to 12 months, since they announced the reinvestment into the business to facilitate one day overnight shipping, combined with reinvestment in aws, the stock has lagged pretty significantly. if you're to look at facebook since they made that announcement, amazon lagged 25% on a relative basis to see potentially coming out of this investment cycle is why the shares are rallying here you look at the q1 guidance, significantly above buy side expectations and i think that's partly attributable to the fact we're now lapping the last possible quarter for reinvestment, so when you look at the calendar 2020 investors are optimistic we're now at the point where you get the best of both worlds. decelerating growth from operating expense and potential acceleration in core metrics >> so there is so much focus on the expense side and so much

focus on shipping and, again, you know are they getting into fedex's business or not, shipping costs up 43% is that a number going down, going higher >> i think overtime it is all abou even though you have the ability for them to invest in the business, which is clearly weighed in operating income in the past and dampened growth, the fact they have now invested in the business so heavily has facilitated to the point where -- where three-quarters a go it was 10% and that escalated to 18 to 22, yes, a head wind if an operating income growth perspective, hopefully not lapping that to the point where unit growth continues to accelerate. >> you look at the stock, a couple of different issues here, so do we not worry about aws deceleration anytime going forward? when does aws become a commoditized business, instead of just with the competition of microsoft and google, when do i worry about that, and, c, do i ever worry about any other metrics involving amazon other than aws >> for sure.

it depends on the investor you're talking to, tech investors are -- >> more questions? >> no, just three. he speaks really well and rattles them off really quick. i figured i would throw them all out. >> they're focused on aws, you look at the consumer retail investor, core gmb, so from aws perspective, it is the profit center for the company, earning 30% operating margins, international business is barely break even that's an important segment to focus on yes, you do have to worry about decelerati deceleration, but it is the law of large numbers these guys are doing $10 billion a year in quarter. it is decelerating at the end of the day, if you look at cloud workloads in its entirety, the biggest trend over the last three to four years has been the migration of public workloads to the cloud and that's the sole reason why ibm bought red hat you're seeing the transition there, which makes a lot of sense. if you believe that workload acceleration is going to continue, yes, there is competition on the margin between microsoft and google

with gcp efforts but rising tide lifts all boats. at the end of the day, every single competitor in the space is looking to maximize profits while delivering value to their customers and i think the market is large enough. >> see what i meant? that was good. >> stuck the landing. >> thank you so much >> great >> aws, i mean, if $9.2 billion in operating income with 34% profit margins are strong, what would you give as a multiple if that was out there as an independent -- >> tim mentioned it before has to be low 30s i would think. >> i think the street tends to -- i wish he was still here, he would could bring him back to talk about it, but he's gone 10 to 11 times revenue on aws and that's 70% of your valuation. so people who are i think certainly amazon say blended valuation of sorts, and that's one way to do it. >> amazing ten years of -- >> amazing. >> coming up, a to z earnings

coverage continues we'll dive into what the options market is expecting from alphabet we'll have more on that trade ahead. plus, there is a look at our cramer cam there it is. all powered up he's talking tesla tonight yeah he's got three reasons why the shorts are going to -- they're going to get blown out here? now? aren't they all gone already i'll talk to him about that tomorrow too "mad money" coming up at the top of the hour. in the meantime, we're here at the nasdaq itis n mesquare we have a lot more "fast money" coming right at you. ♪

high protein low sugar tastes great! high protein low sugar so good! high protein low sugar mmmm, birthday cake! and try pure protein delicious protein shakes

♪ g♪ i want to go, go,es go where my baby is ♪ hey. hey. you must be steven's phone. now you can take control of your home wifi and get a notification the instant someone new joins your network. only with xfinity xfi. downlaod the xfi app today.

welcome back to "fast money. today is the busiest day of earnings season. but that doesn't mean the action is over. alphabet reports monday. that's after the bell. and one options trader is betting that tech titan is prime to get back to all time highs. christian farmer is over at the plasma and will break down that action what are you seeing here >> thanks, david yes, so google, alphabet, the last of the faang stocks to report they he report monday after the close. what we have noticed is there say little bit more call activi activity, 1.5 times more than puts now a little bullish activity going into monday's print. the implied move, which is going to tell you what the

optionmakers are looking for the stock to move on the day of options is 4.5%. that's right in line with historical average of 4.5% one thing to note here is that it is pretty wishy washy from quarter to quarter we have seen a lot -- a few quarters have gone down, a few have come up it is kind of inconsistent one trade that stood out to me and albeit pretty small trade, but it gives you a sense of how institutional money is positioning, we saw buyer today of the 200 march 1580 calls. they're going out a little bit and they're expecting about 11% move with that particular trade, which gets you back to 52-week highs for the name what i like in google right now is the chart i think this is really nice, it captures the trend, one thing i note here is the breakout. i love to see breakouts, especially out of consolidation. so i think what you want to do here with this is stick with the

trend. notice that it is -- it is a little bit lofty, it has gone up quite a bit, but it checked back to the 20-day moving average leaders of the market, sometimes they don't give back that much more i like the name here and i would be a buyer if we happen to get a move back to the 50-day moving average as well. >> christian, thank you. karen what do you think of alphabet the stock is up 9% this year prior to its first earnings report on monday. >> it is up also in after hours today on the heels of amazon people are reading through, i hope that's correct. their cloud business, i thought also facebook's revenue was good so i think that hopefully bodes well for google as well. it is my biggest position, i'm long, it is only 2%, little less than 2% off the high it is a volatile one and the one thing i really always want to see is some sort of additional capital allocation move, really slow to do it

starting to pick it up a little bit with last buyback, but hopefully putting the money to work. >> real quick, cheapest of the faang names, 18% eps growth. the trajectory has been lower left upper right i think that continues >> for more on options action, be sure to tune into the full show tomorrow, 50 stn. up next, your final trade. ♪ ♪ ♪ ♪ ♪ high protein low sugar tastes great! high protein low sugar

so good! high protein low sugar mmmm, birthday cake! and try pure protein delicious protein shakes

the unparalleled landscape of park city, or the famed peaks of whistler, you've faced the hassle of lugging your gear through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing, real time tracking ship skis delivers, hassle free. ship ahead and go catch those first tracks on fresh snow. ship skis. your skis. delivered. at outback, steak & lobster oh no! it's gone! phew! it's back, with lobster mac & cheese. it's gone again! it's back, with shrimp now! steak & lobster starting at only $16.99. and if you want outback at home, order now! outback steakhouse.

time for the final trade let's go around the horn we'll start with tim >> actually electronic arts, i was thinking of my jedi mind trick. i was going to say electronic arts, buy you might. not funny. let's keep moving. >> okay. erin >> yes, on the coronavirus, and other things, we talk about amazon, the amazon -- i like baba, a chance i like it. not expensive, given the growth it has. >> same theme, to karen's here, iq, and it is any type of weakness you see on the coronavirus, this is the chinese netflix. keep it on the short leash, though if it breaks that, exit the trade, you have upside from

here. >> thanks for being here, looking forward to seeing you tomorrow ibm. >> that's the trade? ibm? thanks for watching "fast money. jimmy chill 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 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 is not just to entertain, but to educate, teach you, put it in context. call me, 1-800-743-cnbc. tweet me @jimcramer. what a day because of the coronavirus worries and then came roaring back whe