huge export and import market. >> everything everyone thinks it's deferred and not over, and not tipping things into recession. >> interesting to watch the 150er tomorrow job numbers strong still depressed from a week ago. >> "fast money" begins right now. live from the nasdaq market site over looking new york city's times square this is scott woman they are for for melissa lee. traders tonight here and tonight on fast markets raising to new records if you think we have gone too far too far too fast we have three names you might want to own. shares of twitter taking flight. is is is it time to look at the social climber and shares of aurora cannabis tanking in the after hours the company cutting jobs, announcing the ceo is leaving. we'll break down that action but first we begin with a big earnings alert on uber the company just announced on the earnings call it expects to be ebidta profitable by the

fourth quarter of this year. that's a full year earlier than expected shares popping on the news, giving a bit back. but nonetheless well into the green about 3.5% kate rooney following it in san francisco and has more tonight hi, kate. >> that's right, hey, scott, the big highlight from the call now. the ceo moving up the time line for profitability. >> our progress in 2019 and 2020 plans gives me the confidence to challenge our teams to accelerate our ebidta profitability prove to q42020. so moving the goal post there. some other highlights from the quarter uber losing money but not as much as expected. a better than expected eps loss a beat by 4 cents. on revenue moviely in line and full year losses for 2019 came in .1 million. gross bookings a miss. we saw decelerating growth rates and the ceo saying on the call

as well any had a tempered outlook for gross booking for next year and the stock fell a bit on that. i got off the phone with analystis that's the reason for that and a big loss for uber eats as well expected, 460 million, almost doubling from the comparable quarter a year earlier but again uber ceo drawing a line in the sand saying that last quarter and the current q1 quarter would be peak loose losses for uber eats. >> dan, you tell me. smaller than expected loss you pull forward by a year you're ebidta profitability map. >> yeah. >> and the stock not get nag huge. >> can i ask a question? when lyft reported in the last year in the november quarter they were forced to match what lyft said. didn't they tell us this. >> but they pulled it forward another year. >> and dhara got a lot of heat because the lyft pulled out

front. the stock was trading up 10% maybe 15 minutes ago come in a bit. i think that 2020 guidance was softer than expected that's one think. >> eats is an anvil. >> he is saying things like accelerate m and a to quicken the path to profitability. there is a lot that has to happen lets remember this is adjusted ebit this is not a particularly sound earnings metric one way or another. listen, this stock went down, got cut in off half from the ipo to november 6. the it's rallied about 50% the pendulum has shifted here and now the company has to put up they caught up from a sentiment standpoint as far as what investors were thinking about a profitability to the main rival and now here they are and they have to put up. >> lets talk about the setup too. if you look at uber versus lyft from a technical perspective you have uber above the 200-day. lyft the opposite below the 200-day moving average almost tested to the dollar and failed.

and they both trade for about 4.57 times sales you get a similar valuation. now the question is, do you value the optionality in uber's other businesses that's the key do you want focused or uber trying to do a lot of things i like that uber is rationalizing some of the businesses we're familiar with what they did in india, cutting costs from a head count perspective i like ub uber if you can deal with the interim volatility. >> some of those that optionality is t reason was eit was at a discount. it's hard to know. yeah, maybe the expense load attached to uber eats is better in 2020 than expected. they sold the assets in india, which were definitely of an anvil, nice word, scott. >> thank you. >> but i think you have a case where the outperformance of almost 1200 basis points against lyft, you had some of that run as much as it seems sentiment turned and people want to loo look at the operational leverage in the company -- because that's what you're talking about. if you get to where the

incremental unit dynamics in the u.s. are better, look, a lot of this flows to the ebidta line once they get there. people could do that and you could see analysts doing it but i think the stock had a massive turn around in sentiment. >> welcome, scott. >> thank you, guy. >> good to have you here. >> great to be here. >> and i expect to be playing tight end for the giants this time next year there's a long way from now until then i think you have a gift right now. the stock up 53% since the november 15th low. take the money and run here and stay with lyft which we've been saying a while i don't think lyft is getting back to the 63 level where it broke down from a quarter last smr. if you play would you rather, which we are right now i would rather lyft than uber. >> turning in his grave right now and he happens to be a huge "fast money" fan >> reference being how -- you can't put yourself in the tight end spot.

>> can you -- can you really ever escape the fact with uber that it went public too late, that it was already pretty mature by the time it went public and it's fighting against that. >> when you see that over and over again -- i know we are talking about softbank in a bit but the funding environment for the later stage companies that are private is difficult when you think about door dash post mates these are competitors in the food delivery space maybe the funding environment for the later stage private companies is on the margin of benefit for uber in that space. >> what did consolidation in the delivery space helping eats? if you have some -- some consolidation. >> why is there consolidation. >> well too many players you have too much competition. >> right. >> so somehow you would think that at some point somebody has to get together with somebody else, and maybe that helps the eats business, bus the competition then disappears by one. >> but i think. >> if not more. >> but consolidation is happening for a couple of

reasons. partly because some aren't making money and i think they're effectively dropping out so, yes if you get to a place where you can have pricing power in the delivery service, i don't think that's coming any time soon it's not structurally there. >> i just want to make a point about the question, scott about did they go public too late? i think it's important, the last 18 months shows us that the public markets were more discerning about profitability than the private markets this was a shell game preponderates wrote low. you had massive infrastructure like softbank vision fund doing this pushing it forward. you tell me in 2019 if uber had 13 billion in revenue and the necessary income loss of $4 billion. how would the public treated greater loss of greater percentage of revenue a year or two ago. not well is my guess because if you go back and look at some of the ones that went public in the last few years, twitter back to 2012, snap and a whole host of others, the public markets haven't been kind,

relative to the broad market for those names. >> but people like mark cuban would say they went public too late after the bulk of growth had happened investors were essentially paying for. >> and everybody owned it. >> right. >> i think that's right. and dan, you're right because of the way if you think about what's been coming out to the private markets and the way the markets did that whether wework, et cetera, et cetera but think about the federal reserve and what the federal -- i think private equity has been given a stoking of the fire. we have never had a bigger balance sheet in the country these guys have thrown more gas on the fire. private equity i think will be runs to lyft because money is free. >> speaking of uber we are following a developing story on the big investor softbank. reportedly attracting interest from activist investor elliott management the "wall street journal" saying elliott has taken a 2.5 billion-dollar confiscate in the company. elliott confirming it did not confirm the size softbank shares have been under

pressure over the past year as high profile investments in uber and we work failed to deliver. are we setting up for a clash? i mean, look paul singer, masasan. >> seemingly going head to head. we talk about we work all the time for good reason but there are other investments they made that dun did well. you mention uber and we work others did well. the stock got punished too much for the we work situation. with that said to your question i think that's what's happening. we are sitting up for a bit of a fight. >> we don't know. >> it would appear. >> is it a partnership. >> you would know better than i. you speak to the people. you let us know. from my vantage point that sets up for a bit of a battle. >> thank you. >> no, it's true i'm glad everybody is trying to figure it out. >> wait, wait. couldn't this just be them looking sum of the parts i know this isn't necessarily a good exercise. i think there is no question that's there's governance at

safety passenger what you are alluding to, guy, the way the stock moved it's trading at a discount of the nav of the things it owned at some point this is a hedged fund ash traj. >> talking about buying back stock to rationalize the stock price with the size of the investment i wonder what that ends up doing to the share price whether positive or negative. >> if you want to know you can dig into the 250 page report that bern ernest wrote a few weeks ago. it was interesting soft softbank the berkshire hathaway of technology they were doing a sum of the parts thing process that gets to page 124 something like. i fell asleep there. but listen, this is not a name that u.s. investors can trade particularly at least people watching in show so, at the end of the day i think the main thing here is that they are going to have pressure on them to do this stuff they did i think if you are investing and taking activist position in softbank, you want them to rational rationalize some of that tough but this is a company dedicating

$38 billion. they have approved to vision fund 2 this is the path they are going. process if you didn't like vision one they are going to vision two that's goes to the point where the opportunities are in the investment world a and masa sees them in the private market. >> if you think about the flow through to uber and elliott pushing and pushing and if effectively they have more control at softbank if you are an uber holder is this a good headline. >> let me also say faber sources confirmed to him the size. we don't have to say reportedly anymore. he -- he has gone on television and said that too. so. >> right on. >> he would know coming up, break out the rally cap. or is it time to take cover. what you should do with the money as there is all time highs. pinterest and wynn both on the veftmo aer results we'll dig in when "fast money" returns. what do you see? we see a billion more people breathing free.

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welcome back to "fast money. another record day on wall street the dow s&p and nasdaq closing at all-time highs. what happened to the fear surrounding the coronavirus. are investors getting tovi bullish too fast mr. adami.

>> maybe people aren't bullish enough everybody is so happy about everything the economy the best we have had in the history of our nation i get it. >> you sound really sarcastic there. >> i am because i was going to see when you have proctor and gamble trading at 20 times next year's earning con ed is a utility. >> is that the key to the market. >> it's not. but the valuations are ridiculous people are just paying up. >> you get con ed right. you nailed it. >> zevldly so but with the vix at 159s. >> i have processes e and gpg. i didn't have a big beal because the window is open in the winter because you want the fresh air back to the market you have 20 warning signs flashing red and metrics and valuations nobody seems to care. >> all right well here is the thing the market -- literally they got plugged the way they get plugged. the massive bid of liquidity we

saw that in china after the markets closed a week. and stock markets ripped if you think about 2020 earnings that should be the driver for u.s. stocks. think about global growth. i'm not trying to sound dramatic but again i said two weeks ago if the deaths in the cases double the week after week after week would that be significant i don't know but the reaction to whatever those numbers are are the things that are going to put, you know, basically a massive headwind to growth right now. >> it's the same reaction we get every time we think we have some wall of worry to climb and then in fact that wall is taken away we're suddenly better off than we were. >> because of the l word he use pd liquidity. >> and the environment is not going away. >> totally lets make it clear we just had 4 q federal reserve jumping in essentially the fourth time they jumped in in and given more ammunition i don't think they're taking it away any time soon this is the same path the market

takes every time we in trade war news and ended up a year and a half later getting nothing done. and in fact had a market high sfwleer well if you think the market has come too far too fast our next guest has three names to hide out in fund saturate's rob sluymer. >> we think the market cycle is intact more upside in the market through 2020 the issue is tactically a lot of the are over bought and start pog peak a lot of stenographs were long and people are look being for other areas to put capital to. we have three ideas. we screened a long list of stocks that technically and took them to the high hires at fund saturate brian raascher. he does the earnings rechgs. the rechgss are less bad and improving. lets look at general dynamics. stocks in a big bear market right down to the to 0 week and going sideways and getting a

hook developing here it's a defensive name in the defense sector not extended doesn't look like the stock market and the relative strength. you have to squint but it's turning. when the market comes in pullback this is a time to own name here next name we talked about in on january 16th on the show and still like it it's the same sort of profile as general dynamics, a big bear market through '18 and '19 base the around the 200-week moving average secular support and the turn taking hold and relative strength improving the last couple months. >> we think this is a good place to be. not crowded trades, not expensive and the earnings back drop starting to improve the last one this is what my colleagues called the agreement tomato a nasty bear market three or four years down 60% starting to bottom. early but not crowded trade.

not a name with a lot of momentum earnings data getting better the technical pattern getting better and starting to run up the 200-day 40-week moving average. this is a great place for capital. especially with the 6 months horizontalen >> general dynamics looks best the 200 day upward sloping showing support there multiple times. but the earnings comment and the back to the overall economy. i did bring some charts. but about liquidity and lower interest rates that leads manufacturing data. the correlation is extremely high you saw the pmi print out of the u.s. if you believe manufacturing is recovering that has a really high correlation with earnings revisions. earnings revisions get more positive as manufacturing hooks higher so if you believe in that story, which i still do i think over the next couple months vukd the waters muddied a

bit because of coronavirus but to the point of positive earnings revisions potentially a catalyst to support the market where it is now i think that's a real possibility. >> you gave me a nice segue. speaking of corona i think constellation is a great company. certainly beer business when sales are shrinking. they have divested a couple of acquisitions this is a great product company in the world i think and this valuation is interesting. >> general dynamics discounts to lockheed martin. trades 13.5 next year's earnings significantly off the high if you would rather i'm playing it. >> every ten months. >> it's one of the shows you can do it. i would rather general dynamics. >> general dynamics. >> still ahead talking opinions and poker pinterest and wynn on the move after results plus all over uber's conference call already moving the stock up next

you hear from the man writing the book on you'rer. mike isaac with us stay with us "fast money" is back in two. whatever happens out there today, remember, you have the hilton app. will the hilton app help us pick the starters? great question, no. but it can help you pick your room from the floor plan. can the hilton app help us score? you know, it's not that kind of thing, but you can score free wi-fi. can it help us win? hey, hey! we're all winners with the hilton price match guarantee, alright? man, you guys are adorable! alright, let's go lose this soccer game, come on! book with the hilton app.

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welcome back to "fast money. check out shares of aurora cannabis there they are right now down 12.5 on news the ceo is stepping down the company saying it's cutting 500 jobs you want to take a. >> i will, in fact i was at the just talking about this sheet. these guys have 200 million on the balance sheet at the end of the year and $140 million in cap

ex this was at one buoyant a $15 billion company. i think it goes lower. the balance sheets needs fortification and i think it comes with equity dilution >> gw pharma having a big move in the after hours i'm trying to get the news that's back to 90 now basically a double bottom. whatever news out seems to be positive this is a name we mentioned couple months. in that space, gwph. >> you like that better than aurora. >> not going to suck me in >> it's sick months. >> i would rather gw pharma. >> we know where he is going moving on the earning rolling in pinterest and wynn on the move after results. we have full people coverage breaking it down contessa brewer standing by on wynn kick it off with julia boorstin with more and pinterest's quarter. >> pinterest shares soaring on better than top and bottom line

user results the stock gaining about 17% in after hours trading on top of the 5% growth going into the close earlier today. now, pinterest monthly active users grew 26% from a year ago to 335 million that's 4 million more than projected. the company points to the value in making it easier to shop on pinterest with companies increasing their uploads to catalog feeds by 70% from the third to fourth quarter and clicks on product opinions doubling the past year the company saying they are planning to launch a verified merchant program in coming months james cordwell of atlantic equities telling us the impressive revenue upside shows pinterest is on track following the air pocket they hit in q3. the earnings call with to get under way in a couple of minutes. and investors are likely to press the company for details on how pinterest plans to make more money from the international user base, where average revenue

peruser is just 21 cents compared to the $4 the company gets in average user here in the u.s. back to you. >> we appreciate it julia. you've been long this stock a while. >> this is interesting i pitched this a month ago i think it was a scarcity thing. a lot of the names closed at the dead lows 2019 ipos, the sentiment couldn't have been worse. this is a company doing all the right things when you think of the fact that they gained 13 million user on a sequential waist up 26% year over year. 335 million that's more than twitter. sales at 30% that's likely to be the case for a while here and if you get that rpu outside the u.s. at 21 cents what julia said that's zero compared to 4 dlarps in the u.s. there is a big bang for things to grow on the valuation inches it's a nichy think. it's a great to be on wal-mart.com who knows. >> i would have thought after last quarter you would reset what were not great expectations

for 2020 and apparently they weren't reset that modestly. and in fact this left room for them to outperform here. 12.5 billion company this is a significant play and i do think there is scarcity in the online social kind of -- ever what you call this a retail stock, whether a social media stock, there are places that people need to go. >> international quick month average three times the size of the united states. if you get half of of the rpus of the u.s a good stock good for dan companies went public too late very mature. pinterest is one of those. it's getting sea legs. i think you stay with pins i have a pinterest page as well. >> sea leg. >> excuse me. >> you should see my page. >> a pinterest page. >> i don't know what that means. >> what do you have up there. >> fashion, rock 'n' roll. trivia. >> ranger hockey there it is for you folks as

home. >> to be fair friend of the show guy had that in 2013 rick heightsman early investor tomd us about pins you created a page. >> nice job on the power pitch. >> thank you. >> surrounded that trade. >> flying squirrel. >> all right great segueing thanks we'll get serious a moment we have a news alert with the latest numbers on the coronavirus. our meg tyrrell delivering that. >> numbers out of huba province the epicenter where the outbreak is happening in china. new cases coming in at 2447. yesterday more new cases almost 3,000 yesterday that does represent while more cases a potential slowing in the number of new cases we are seeing reporting an additional 69 deaths today compared with 70 confirmed deaths yesterday so, again, a slight slowing there. it does bring the total to more than 30,000 cases across the world. and 634 deaths we do expect to get more numbers

out of the rest of china tonight. the numbers will increase. guys the world health organization saying today they did see the first slowing in numbers today. talking about yesterday's numbers. two days not enough to say this is a trend but they are saying it's going in the possible right direction, scott. >> important nonetheless thank you so much. by the way tune in to the special report, cnbc's outbreak: coronavirus tonight at 7:00 p.m. eastern time we have plor hon the coronavirus. wynn addressed the outbreak on the earnings call. contessa brewer listening in and has details. >> yeah, coronavirus talk of the erwin resorts. the ceo kicked off tackling the challenges in macao where wynn gets three-quarters of the revenue. >> it was a controlled and organized closure of casino. we do have the hotel and a couple restaurants open for the few remaining guests in macao. but during this time while the casino is closed, our operating

expense burn rate is roughly 2.4 million to 29.6 million a day. >> 2.5 million used every day. he sates it's largely payroll for the employees. he says the focus has to be on them the casino is on the hook for the salaries even though the gambling seize there is preventing chinese tourists from traveling. can't come to the united states or go to las vegas that segment already suffered already np the volumes down 30%, a $50 million decline in ebidta. plus wynn's las vegas presiden says the far east visitors, well, they can't get back to china. they are gambling at wynn and other casinos. she called it a choppy market. but they say it's ramping up

scenes the outbreak is controlled and contained you will see people traveling again. >> it's a choppy stock chart that is thanks, contessa following wynn for us. >> look, without any lack of sensitivity towards what's going on globally when you see the health crisis in the past, the most extremist sentiment moment has been the time to buy in fact i don't know if we have gotten there you have gross gaming revenue out of macao for january down 11.3%. it's getting worse but i think to the extent that wynn is priced in a lot of the pain as contessa said 70% of the revenues come from chinese locals i think you priced in a lot of bad news it wants to hold 120 looks like it has in the short run. i think it's a buying opportunity. >> last time you hosted i think was january 28th you pushed back talking about las vegas sands saying why would you try to buy this for a trader trading around $65 we said great question but the stock price to do in from 78 down to 65

held the highs in november and now rallied 4.5 or $5. i think that's what tim is talking about trading around stocks beatenen up, somewhat unjustifiably. >> so, look near term i agree held the 200 day but to the point much being priced went back and looked at the 12 months pe process in 2010 trading in the 190s now lower than that. and the next 12-month pe is about the same as it was in the 190. you are not actually getting that much of a value even given the much lower stock price i won be all thattited about jumping in the name right now because the valuation even with the lower price hasn't re-rated that much. >> back to the chart, before the announcement the chart was breaking out sentiment around the stock was getting to a place where people see greater free cash flow and strength from the asian properties you can't eradicate what's going on as we can't eradicate the virus. but i think that's the sense that the stock is -- this might be just a pause in the road of a

stock rerating >> well for more on the earnings head to the website, cnbc.com here is what else is coming up on fast. >> announcer: we reveal our mystery chart. what's got this chip stock spiking higher today and later biotech keeps booming. houp options traders play the markets. we have atnd ath a whole lot more coming up on "fast money. is wildest turn yet. prepare to face the forbidden forest markets. we have that and a whole lot more coming up on "fast money. oh markets. we have that and a whole lot more coming up on "fast money. markets. we have that and a whole lot more coming up on "fast money. wizarding world of harry potter™. only at universal orlando resort. stay at an amazing universal hotel with rooms starting from $79 plus tax per night. restrictions apply.

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welcome back to "fast money. micron leading the chips higher following a upgrade at raymond james today. upgrading to strong buy from montgomery perform thanks for improving supply and demand for d ram and memory chips up 0% from the jun lows. and up roughly 10% this year can it continue to go higher it's not like the analyst guy read the note because we talked about it earlier today. >> he is pumped. >> it's not like they are discovering something new. you could easily say the call is late. >> you could say that, scott. >> but not if you believe it has more upside. are you finished laughing at your own joke. >> nobody got it.

>> he joins 25 other analysts rating it a bay. few who rated it a hold and tell it seems everybody gets on one side these stocks are making 52-week highs given what we fwhoe is happening to the supply mcmahon, what we no he is happening potentially disruption of mchgt going on in china. and then there is the demand aspect ultimately the 5g thing if everyone is playing for the supercycle upupgrade thing i'm not but you are likely to see pent up demand and if the stocks are trading fine in goes back for the 52-week highs they are 65. >> what do you have mikel. >> doesn't less bad mean higher and less good lower. >> the negative revisions on the company were minus 9%. i was looking at stats on that one of the top -- the highest negative earnings revision moment up of the the semis

that's less bad than people thought. and it's priced in less bad the last three months. i don't think this is a reason to get excited we priced in less bad and soon it's about less good. >> dan flagged where was anybody in may of 2018 yoend where i was. by but micron was around $62 that's where it tops out you have the major double copy see it coming clear as day were they late yes is there more room but now picking nicols on the freeway. you take profitser >> nicols in front of a steam roller >> james taylor. >> nicols on the train tracks. >> what does it matter if you pick up nicols with things coming at you it's going to hurt. >> trade school. >> deep and funny but we got to go. >> of course we do. >> another winner today was twitter. that stock topping on earnings, twitter report the biggest quarterly user growth with

active daily users hitting all-time high. stock the best day more than a year is twitter a name you should own, jeff. >> growth was great and expectations low i heard you talking about it on halftime but it's worth repeating. looking at sellside analysts eight buy ratings and 35 hold or sell ratings the sentiment is low if you see foregood quarter it's possible that shifts that becomes a catalyst this is my opinion but it doesn't seem like they have gotten ads right yet. when i'm on twitter i never click on ads on instagram i'm constantly clicking on adz. i know there is a difference if neck get it right that could be a catalyst to faster ad growth i like the name here. >> it's the fourth quarter of accelerating daily active use he issers it's a case of advertising acceleration in the u.s. but more importantly, the bleed on sentiment after the last quarter, there is nothing extraordinarily different other than that people were shocked after the last quarter that expenses were growing in advance

of where the advertising revenues were. they're more or less in line now that's the snap back. >> first quarter guyedens wasn't than great and the move like this so i think you can continue to own the stock. people got off sides on the upside and definitely before $30 stay with twitter. >> check out the after hours action in the stock we talked about at the top of the show it's uber. we bring you the latest from the conference call, the stock up just shy of 5% it was up higher than that process. about halved the gains in the after hours. one options trader wetting on a 20 perez% breakthroughout on this biotech name. we'll reveal it in 2 ♪

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giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. all right news on amazon developing right now s contessa brewer has. >> jeff bezos must be in a selling mood because he sold 66 million and change more of stock. that's on top of the $1.8 billion worth of amazon stock that he already sold this week you know, he said in the past he plans to sell a billion dollars worth of the stock every year to help fund blue origin but now

this is up over 2 billion, scott. >> must be nice. contessa, thanks that's contessa brewer moving on uber shares taking off on new the company expects to beat ebidta, of the profitable by q 4 this year we have a sbrof tomorrow with the ceo on squawk box on 7:00 a.m. eastern time lets talk about uber with the man who wrote the book on the company. mike isaac is "the new york times" technology reporter and the more of superpumped, the battle for uber. mike, good to have you on. >> thanks for having me, man. >> what's your reaction to not only the quarter but more importantly the remarks from dhar an on the call about being profitable a year earlier than expected. >> i was waiting for another quarter of bloodbaths and laying out how much money they are burning. but the quote really struck me at the top of the call and the

remarks which is the era of growth at all costs is over. and i think you just wouldn't have heard that from unicorn companies and especially newly public companies just a year ago. but uber is really trying to prove this is what we are doing, trying to cut costs in many ways and the street is not willing to put up with insane growth. but at the end of burning cash to get there. >> i know, i get it. sounds good. but they are spending a lot of money. >> yeah, look, i think the -- the big question mark is the food delivery business like, you know, ride hailing now is actually the big sort of high point was that ride hailing is not only increasing but starting to stabilize and perhaps maybe can turn a profit earlier than one would think. and we see that -- those trips grow in latin america and other regions where it was a question mark but food delivery is the things

that there is a lot of irrationality there. if you have companies like door dash willing to burn tons of money and grub hub and well-funded competitors in the space it's hard for them to turn a profit quicker so that's where it's still painful for them. >> how do you get your arms around the issue of regulatory, you know, laws that have been passed in california and elsewhere around who is an employee, who is not, how the company deals with that? >> yeah, that's the other -- i mean, i think there are two big problems for 2020. food delivery and really what the fate of what employees are going to be, or are they impose, contractors, workers right now in california where "i" there is you know this bill ab 5 that is saying that the drivers could be considered employees based on current tests. now uber is trying to basically make a lot of different tweaks

to the platform to shift how they treat drivers and they are very small. but they ultimately add up to the idea that they are just contractors. and they vowed to spend something close to $90 million with other delivery companies fighting this in a ballot initiative this year so it's not settled. it's still a big question mark but they're not going to take it, you know, without a fight. >> yeah, dan nathan is next to me has a question, mike. >> hey, dan. >> there's been a lot of talk about the rid hail market. at what point do you think as we get closer to profitability will investors focus on the advanced technology within uber which is the autonomous division and will that be the next leg of growth for the company. >> totally that was talking to one of your producers earlier. that's my biggest question, for -- if you remember back in 2016, 2017, the big drum beat was we're doing autonomous this is the future of how cars

operate and not just us we have to catch up with google. and now, you know not just uber but sectorwide everyone is cooling on autonomous and i think coming back to earth and how long it will take to get there. if you look at how expensive for uber in particular the autonomous division is, it's not cheap, right they have to spend a lot of money and essentially had to do a separate funding vehicle to make that work for them, to kind of save the balance sheet on how much it costs. i want to know what their long-term plans for it are is dharaing with to keep it? there's been talking of do they spin it out, sell it to an auto maker? they haven't been clear and the employees in there talking to are questioning it i would love to know if there is renewed commitment or if they want to ditch it at many some point. >> tim seymour has one. >> mike, international or domestic model

that's defining the difference between the companies. they want to talk about latin america and other parts of the world. is that the right strategy >> yeah, i mean, look, that's the real difference between whether you are an uber or lyft believer if you are a lyft bull, part of your thesis is essentially we have focus, sticking to the u.s. and canada and this is where we can focus on turning a profit eventually which i don't think is outlandish but that said, uber has how many different irons in the fire? they have uber health attacking bringing people to their doctor's appointments. er freight, uber comfort, increasing the margin on uber x rides. look, they are spending a lot of money and doing a lot to try different things but the other argument of that is there is more growth potential when you have so much more of the market you attack. i don't know to rule them out entirely. >> appreciate the time

as always, mike, and a reminer one more time andrew ross sorkin with dhara tomorrow, 7:00 a.m. eastern on squawks box check it out coming up is it time for biotech. one of our traders sees a big move higher for a big name that trade straight ahead. we want to show you a live look at our cramer cam. jim is spicing things up tonight, chatting with the mccormick ceo. will the run continue? find out at the top of the hour. following "mad money," the special report, outbreak: coronavirus. at 7:00 p.m. eastern back after this.

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we're back with "fast money. biotech is burning up the sector on pace for the best week in more than a year and over in the options market there is one name that's getting a lot of attention mike khouw at the plasma breaking it down with "options action." mike. >> yeah, it's very common to see unusual options activity going into a catalyst like earnings. we are talking about gill yatdiad. but gilead already announced earnings yet today more than five times the average daily call volume after the earnings came out and viewed as disappointing.

what i thought was interesting in this call activity was purchases of the april 80 calls, one block of those, 3,000 of which traded for $1.109. over 30,000 trading overall. that's a bet it rises above the strike price by $1.10 in premium. if you look at the chart you see now notable it is. it's morabund for more than a year but relatively cheap trading at 11 times earnings right now. even if it gets up to the level here that represents about 100 billion-dollar market kpapation. the company doing 8.2 or $8.3 billion this year what's going on someone risking 1.6% of the stock price. i don't know the catalyst but a lot of bullish bets.

about 12.2 time earnings tomorrow. >> are you on oa. >> i will be and we can talk about this. >> 5:30, right. >> that's right. >> are you come on you say it like you don't know. 5:30 you know you hosted the show. >> you hosting tomorrow? >> trying to host it right now. >> we should talk about gilead real quick merck announced spinning off a unit i don't think there is m and a plus the fact for time times in 2019 gilead bounced off 62.5 this makes a lot of sense to me. >> can i resume hosting now. >> go. >> thank you where are we going here oh today two new biostuck the thing was moving in the wrong drebs. >> i was reading it backwards. mills jeff biotech like do you the prompter going the wrong way. >> i think gilead working on a short-term break out

i like the valuation look at ibb, the overall industry etf you know that's having a tough time at 1.22 at the level now pay close attention to the current level whether it moves up or down is important. >> for more "options action" tune in the full show tomorrow 5:30 p.m. eastern time up next, final trades. ♪ >> announcer: "options action" sponsored by think or swim by td ameritrade ♪ ♪ ♪ when yowhat do you see?itical issues facing our world,

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all right. one more time a reminder that man right here dhara, the uber ceo with andrew ross sorkin for an exclusive interview tomorrow morning on squawk box at 7:00 a.m. eastern time do not miss it lets do final trades now timmy you are up first. >> hard to gauge where we are with the virus certainly we talked about better news emerging markets were certainly the headline the head of the storm e. m has traded back significantly i think there is rom for this to go mcis throwing money at the problem. you had good news into this eem. >> jeff. >> you know obviously ge has gotten pummeled industrials tend to do well when manufacturing bottoms as i was august talking earlier i think that's

happening. looks to be moving high are and could continue. >> daniel, guy mentioned merck, some of the spin on that one i think it's finding support maybe play bab are for this. >> guy. >> i find it's interesting you engage number one, number two, general dymi mnacsr. sluymer gor one. number two, general dynamics, mr. slimer got me thinking >> that does it for us "mad money" with cramer starts 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, put it in context. so call me at 1-800-743-cnbc or tweet m