everything else. disney gets credit in advance for getting this right i don't think it will change, but it is an expensive stock relative to where it's trading >> 500 times would be twice a day. that means samuel is watching in the morning and you in the evening. >> i'm exaggerating, but it is a lot of cars. >> coming up now is "fast money. >> i'm melissa lee tonight's lineup -- let's get straight to it disney's streaming service front and center and meeting staggering numbers let's go to julie who has all of the details. >> daniel is in charge of the distribution of the content saying that the disputribution

model is working 86.8 million subscribers that's up from 73 million announced at the end of the last quarter. and rolling out to latin america and a new distribution deal with comcast, and they said with the likes of apple has been crucial for its growth and a lot of talk about the amount of exclusive content on disney plats ten star war series, 15 live action series as well as pixar they say the key thing about this reorg is that they can be nimble and decide where each one goes on a case-by-case basis

they said some movies will go into theaters, but others will be available day by day, screaming at the same time they are in theaters. that may be controversial with theater chains we will see. really setting for the a nimble strategy of distribution, but disney plus is at the aenter of it and in terms of overall numbers, they are showing growth espn has 11.5 subs >> i am sure there are a lot more headlines you will keep us posted on. but in terms of the 86.8 number, how many of those are not paying how many of those are getting it for free >> disney has always reported paying subscribers they have a deal with verizon,

but verizon is paying disney so this is not a ton of people with free trial period, they are getting people to pay. and another thing, it is not just about the fact they have partnerships, but they have been putting exclusive content on platforms. and in march they will be putting it on disney plus at the same time as theaters. this could be controversial. >> could it be announced that bob may depart there have been comments he would be willing to serve in a biden administration but people have been wondering about bob iger >> i have been hearing reports that he is considered for various roles. one said they would love to see

him be ambassador to china as far as i can tell, that won't be coming today. as far as i can tell they want this to be about disney and focus of the company is something iger has put forth, but he will be revealing the content slate. christine mccarthy will be laying out new financial forecasts for the company. and later on a break and then showcasing some of the content for disney plus. there could be a surprise, but from what i hear he will be focused on content >> the stock is up the stock is up about 35% plus

and what do you think, guy, now that they are getting some of this huge valuation that netflix has. >> in this case, it is right saying that disney is morpfing into a streaming company if you include others, it is north of 500 numbers valuation is a concern at 32 times next year's numbers, it's expensive to what it was in its history, but it is not disney of my father's or your father's disney. it has morphed into something else so maybe that price target is

right. >> that was wells fargo. and morgan stanley also increased their price. lots of spending do you like that as a shareholder? >> netflix is still cash flow negative it has been great for netflix shareholders guy is talking about this hybrid multiple how can you not take 130 million dc customers across their spectrum and not say, wow, this is real, major critical mass at some point they will have pricing power with this. and the rumor is they are going to start raising prices next year but if you put a seven times multiple on this stock, seven times sales, and look at netflix, it trades at about 11 times trailing sales and put the legacy business at 15, 16, 17

multiple, you have 180 stock that's what the street is getting around to. i think this will be a sum of the parts of the d.c. and legacy business why shouldn't disney rate? they are not earning money and will spend a lot of their cash on content, but that's to be rewarded if you look at the other players in the industry like netflix >> do you agree, karen this stock just hit the all-time high in today's session with a major part of its business effectively shut down. >> they do get a pass on parks and hotels so it doesn't matter how bad those quarters coming up are. but i guess, to me, it's expensive. they did a tremendous job in the last year. the growth is fantastic.

at some point i always think companies need to make money netflix i guess teaches us a different lesson i have been concerned about the debt from the fox acquisition, but in a zero rate environment, it doesn't matter how much debt you have so i understand why it's trading up. i can't see getting on board here, but i would not be surprised if it goes higher. i don't know how much they will focus on some of the legacy businesses i don't know if they will spend time on that or if the whole story will be all streaming and that's the disney story. >> it seems that's the valuation expansion part of the story which is important to shareholders when i heard ten new star wars movies for disney plus, i

immediately -- >> delorian brought this out last year. they launched disney plus with this the fact they have 87 million viewers on a $2 billion spend in the first year viersus netflix who may do 15, 16, 17 times higher you think of marvel universe, pixar, this new world order we are in whether these creators don't like the fact we will have dual releases, it's happening and i can't think of a better catalog than disney to roll out this new content once made for the big screen i buy the argument tim says seven times sale for this part of disney's business i do have a problem with where it is when you think about the

other legacy businesses, the challenges they have in their network businesses with espn, that sort of thing those are all still there. stock is at an all time high could it pull out at the 140 breakout level but this will be a different company going forward. tim and guy and karen have been all over this for months and months >> multiple choice follow along three choices. if you want to get a pen and paper, you can do so now it's a good time you are literally doing that >> disney, comcast over netflix. >> i don't need my smart board for that netflix is still -- there used to be a softball team that played in westchester in my area called the king and his court

and they would smoke everybody netflix is the king in his or her court and everybody else is the jesters. >> tim, i would think that tim making the moves would be turning up the screws on a competitor like hbo max which is charging a lot more than a disney-plus subscription costs >> yes, and yet that has helped the at&t stock over the last couple days. they created major head winds talking about how movies would be running through hbo max and this is one of the questions for disney how will they handle feature films. if anyone is in a position to do this and stay ahead of everyone is the group with the best studio out there disney studio, we forget that some of the blockbusters that have been turned out in the last

ten years that have been billion dollar franchises and they keep rolling them out i think disney has competition and i think hbo max is an undervalued asset, but i would rather own disnevy over at&t. the executive chairman the media and a cnbc contributor 86.8 million subs is huge for a business that had zero a year ago. >> it does and they have done a wonderful job with subs. but the sub number doesn't reveal everything. i once remember being on the show and discussing netflix and

asia a lot of cheap mobile. well 36% of the subs are $1 or less coming out of india so you have to put that against what their total revenue is and it brings it down quite considerably you have to look what they are doing in the u.s that's a big global number, but they are doing about 35 million in the u.s they have been at it about a year paxton a few months and it's about $26 million. plus distribution will end up with some enormous buying. the event is about rolling out programming. is there engagement with viewers is pretty low. the studies have shown that

netflix, amazon, even youtube have huge viewer engagement compared to disney which is only about 5%, so to really get up their pricing to have a price value proposition that will put them in the leagues of a netflix, they have to get much more engaged they need more original programming and to do that they have to spend more than original across hula, star and disney plus how much they are willing to spend is a big issue >> thanks for coming on. let me ask you when you talk about this enormous growth and value. how do you value it? >> when you think -- you can't value disney without thinking about all of the head winds

involved disney has more opportunity than any legacy and it has more headwind because it's such a big part of the bundle basically, you have to think when we go from 100 million a few years ago in satellite subs down to the mid 70s today, you are talking about $17 of value coming out of that bundle which they are trading for subs somewhere in the 6, if they are bundled, 13 dollar range that's a big tradeoff. and those streaming are lower margin subs. so they are losing much more per subscriber as they dwindle in the cable satellite world to the revenue streaming world and the

direct market in the consumer streaming world which as satellite and cable they don't have you can't look at disney thinking they will make this transition to streaming and there is no real cost. the head winds are huge and i don't think the market is focused on because the brunt of those head winds haven't hit fully. >> we have to let you go, but quickly a multiple question. >> i have to agree with guy. netflix is in a field by itself in terms of the rate it can charge internationally would run circles around disney plus broadband next disney i would put last. >> tom, great to speak with you.

thank you so much. tom rogers we should note that comcast is the parent company of cbc. how do you think about the streaming landscape a year from now? a lot of change in one year. >> i think tom brought up good points about disney. i cut the cord last year and am using hula i have a bundle with espn plus and disney plus. i think there will be tremendous opportunities as that cord cutting increases. but i think the pick of netflix hasn't gone anywhere it has been rejected above 550 each of the times it has been there before september so i think before the pandemic

we were pricing in the negative growth so we will see what that looks like in 2021 especially as all this competition rams up, peacock and warner and disney max. i think there is a lot coming. i am not so certain that netflix is the play. >> the investor day presentation continues. we will bring you any news as it breaks coming up, another big story. air bnb going bonkers. should you book this in your portfolio. but wl weilhave reports on oracle and lulu lemon. i have an idea for a trade. oh yeah, you going to place it? not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila!

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llue lemon and oracle moving up after hours sarah has the latest on lulu >> this is a better report than expected beat the estimates on wall

street strong sales is the name of the game up 22% overall. on the call talking about she was quicker to go out shopping after the lockdown than he was, but that has been a growth driver for the company another number that beat expectations, online sales, up 93%. an update on mirror. that was the first ever acquisition, the at-home leisure company. it is selling online lulu saying it will have about 100 million in sales they say they gained in north

america, and mcdonald is saying he believes they are in the early stages of reaching the total addressable market and they cite new guests coming into the store and online this quarter and the new bra. the stock is down after hours. a few potential reasons. they did not give guidance citing uncertainty around covid-19 impacted by capacity in stores and a high multiple, trading around 60 times earnings so that will always be a debate on the stock. >> where do you stand on lulu. dct business up 94%? >> here is the thing that's so

amazing. 43% of their business and they were able to increase their gross margin 1%. everyone else, including lulu actually saw margin compression and they are seeing margin impression i am skeptical of mirror if it were freely traded today it would have traded more than 5 times revenue. maybe there is a market that would wear lulu is increasing and they increased their buyback to $500 million. my only problem -- and i don't own it anymore -- it's so expensive. when it got to about 50 times earnings, i felt i had to sell as great as it is, you won't pay any price. no surprise it is down this was a fantastic quarter

>> 56% gross margin for a retailer tim, where do you stand on this? >> i like the story but too expensive. 43% dtc from a year earlier. the sales are extraordinary. does it get any better for lulu than this? i think there is a real comeuppance for some of these retailers when we get well through covid when the multiples don't have the same tail winds guy can talk about the abc pants because i know he is an advocate, but i think this stock is too expensive >> it is the underwear he said yesterday, quoting guy but that's a lot of this work from home pandemic is it going to be this good later on are people going to want to buy

those yoga pants if they have to go someplace >> maybe the trajectory slows, but 56 times the numbers i will see your gross margins which were outstanding last year were 19% and this year at 18.3. better than expected, but operating margin a little lower. if you are looking to buy the stock it comes in the form of october high when we traded up to and failed at 356 kudos to sarah doing extra hours on the work for lulu >> we always appreciate it when sarah grazces us with her ex per

tease. eric >> oracle shares dropped but recovering a bit after guidance better than expected. and slightly beat analyst excellence, but parts dropped. like cloud license and on-premise license dropping 3% remember in the quarter the federal government agreed to a deal allowing tiktok to move their data on to oracle. that's not final yet melissa, back to you

>> thanks, eric. your take on oracle? >> it is not particularly exciting when you see that license revenue disappointing and see low single digits, stock up less than the s&p 500 on the year, much less than the nasdaq, you would say why are he thinking of spending $10 billion. why would they spend cash -- they have $40 billion in cash -- why would they get involved in the tiktok deal. get involved in a company like tanium, 90% gross margins. they need to layer on to other services to cross sell that's where i would be focused. >> coming up, snap and twitter a win-win.

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welcome back to "fast money. take a look at air bnb soaring in its debut soaring 113% check this out one of these things is not like the other. words from "sesame street. bigger than book pg holdings, marriott, expedia. air bnb is now bigger than

target and goldman sachs we could talk about money being left on the table, huge first day pop, but the question we need to answer tonight is does that make sense? guy adame? >> they are expecting double digit revenue. start doing the math it will take five years to deserve this valuation maybe that's the way the world is maybe it is the greater fools theory thing but when you look at this and door dash yesterday and say what am i missing, it doesn't make any sense to me. it takes a long time to grow in these valuations, but the employment situation in this country is not getting better. as a matter of fact, it seems to be getting worse and we could talk about things getting back to normal but in my world it's ridiculously expensive, melissa.

>> karen >> one thing i find interesting that i didn't notice until this afternoon, the entity of the company was not selling stock. it looked employees, hundreds of names of people selling. i don't know if the company left any money on the table even if they did, they were selling 31 million out of 260 or whatever the number is all of that having been said, i don't get it at all. it's crazy reminds me of 2000, of ridiculous first day, things up 1,000% that ended up going to zero there is real value here for sure, real value in doordash this much real value i don't get it and the total market reminds me

in 2000 they would price things by eyeballs. these other companies are not trading close. >> maybe the thought is that air bnb will displace the business of hyatt and marriott which it eclipses in valuation. can you get your arms around that sort of explanation >> it's funny, a few years ago when we saw these gig economy companies take off and we were worried about businesses and workers because of disruption. when you think about it, the hospitality industry has about 2.5 workers that a lot of them are furloughed or out of jobs. if air bnb comes back, which a lot of people think they do, there will be tremendous disruption in our workforce. it's a great company we were all renting houses on

vrbo before air bnb existed. it's not like they invented the space. to me it doesn't make sense. but it is not on the bankers, it's about the investors who want to buy it >> rick, good to see you >> good to see you again how is everybody doing >> great you still own shares have you sold any? >> i have sold zero. i have invested along the way and happy i did. >> that answer sort of answers this question. you got in on a thrower colowert basis. would you buy air bnb stock at 144 a share? >> i would differently, air bnb is set up for the post vaccination world

where people would be traveling and they have done a great business during covid. you think about consumer brands going forward. air bnb has become a verb for both hosts and guests. so to be part of the permanent 21st century economy >> it's tim. would you say air bnb was helped or hurt by covid if you look how they were pitching this deal, they were making it seem as if this was a friendly way to travel the irony is that they seem to have benefited from covid. >> if you would have told us in february that air bnb wasn't going to be a public company, we would have been shopped acked a you had told us it would be a

public company in june, we would have been shocked. they were negatively impacted by covid, more cancellations than bookings, but as all of us adapted, the company adapted a quarter of its bookings are for 28 days or more. so this work from home culture, air bnb has co-opted and worked. they have captured that part of the market at least when i start traveling for business again, i would rather not be around people. we don't need a restaurant or bar scene. i would rather have a secure place of my own and i think that plays into air bnb on the business side. now it's taking advantage of covid. >> rick, it's dan. congrats on another great exit

here is the question i have for you. the word exit. there are a lot of different ways private companies can come to the public market we have seen the traditional ipo like today and past ones like spotify, slack, that sort of thing. your firm just launched this year how about how you are advising your portfolio companies or what does this with air bnb tell you about a spach going forward. >> traditional ipo doesn't work. there were a bunch of games that people tried

# from dor dash yesterdor dash e were shocked air bnb today, shock there is a tremendous number of companies that will want to go out in 2021. i think you will see a diversity of ways companies go public. there will be diversity where people will complain about them on twitter fall the same reasons. i think stacks will get certain shares and there will be listings as we have seen a couple this year >> always great to hear from you. we have breaking news. the fda's outside committee of advisers voted in favor of pfizer and buy biontech saying

the vaccine outweighs the wristings. 14 yeses, 4 noes and 1 abstention the disagreement was whether to include 17 and 18-year-olds in the vote the discussion is continuing we will see if they discuss what age group they would recommend it being issued for. but favorable for the first covid vaccine in the united states now it goes to the fda and they determine whether to authorize its emergency use. this is a big moment >> this is good news, meg. assuming the fda in full approves the panel's decision --

it sounds like they haven't decided who would get the vaccines there reportedly is a letter saying that ubar drivers should be considered essential workers. >> it has been recommended for health care workers and those who live in long-term care facilities like nursing homes. states can make their own plans. most states said that is their plans to give the first doses too. almost 3 million doses are going out in 24 hours. all of the states have different plans for who they will pry prioritize and then we will hear how the cdc recommends the next group. who is an essential worker

should people over 65 be prior advertised first and moderna's vaccine is up next week we will have potentially two vaccines within weeks, but this is a hung discussion -- huge discussion >> meg with the update the first advisory group approv approves the first vaccine for use in the united states tim, what should we expect the reaction to be tomorrow? >> i think we have had a big run in reopening stocks. for a guy who has been bullish on airlines on good days and bad days so average that out you normalize earnings if you get back to international travel and business

at some point you have to say we have done a lot of work on the way back i don't think we will get a very big response on this ultimately, yes, you buy reopening plays, and i think we have had that point. i think the concept of the vaccination has been priced in for a month and a half at this point. i don't think you run out of these opening stocks i don't think you will see a big bounce on this news. >> you see carnival up by about 3% dan, i thought it was buy the rumor, sell the news >> well, they bought it and kept on buying it now we know that the vaccines are coming the report as it relates to this pfizer vaccine that earlier in the year that the trump administration didn't buy another 100 million doses or so. i have said it numerous times.

i think this will be an easy innoculation of our population for a whole host of logistics. it's based in the market and not discounting the potential of a pushout of that process where we will not be back to normal until late 2021 or possibly early 2022 >> dr. fauci was saying he would expect a return to some sort of normalcy by the end of next year guy, we were making the point before that on the most recent of vaccine mondays, it has been less and less and less what do you think tomorrow >> i don't know if it's a broader mark thing i thought it was expected in terms of the outcome it is a great outcome.

but i will say i know for a fact that dan nathan was talking about pfizer getting to $43 which we saw in early 2019 and now you have to make a decision i think it's probably a good idea to take a little money off the table. so i would be taking profits on pfizer and staying long in ibb >> it feels like this may pave the way for the markets continuing to be strong into year end at least. >> i think so. i disagree with dan and the thought that even if a vaccine isn't rolled out seamlessly and even if there are hiccups, the positive sentiments that come from it will be possible who knows, we might get a stimulus package i don't know if that will

happen but i do think this good news will continue to be good news for a while. albeit bang for the buck i think if the fda came out with something different, that would have been far more newsworthy. this was expected. as the population gets inoculated, i think we will continue to see positive news. >> a check on some of the stay at home stocks peleton and zoom are down about a% -- a percent we will keep monitoring. coming up, another market that could get a boooum t of today's news, energy

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welcome back to "fast money. huge day for the energy trade. mike spotted a huge move for one name in the energy market. >> we were looking at oxidental. more than 25,000 traded for

$1.65. buyers of those are betting the rally in the stock could continue we also saw it in southwest, schlumberger, and etf. all seeing bullish activity today. >> tim, are you buying moves like this today? >> i have been long slummer jay f -- schlumberger for the last three or four months opec started percolating in february or march. oil was the last to come out of it it doesn't mean that demanding has recovered, but it brought more discipline back in opec i think they will hold if the dollar stays low whether it's integrated names or schlumberger which have brought those levels back and are well below the covid level.

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♪ only 14 days until christmas and goldman sachs is getting grinchy on one name. you can head over to the website to read more about the call. he makes it clear he likes the company, but it's the comps. what do you make on best boy >> grinchy is probably the right thing to do even hope to this is a company i'm largely bullish on, too. i think you will see holiday season -- people bought those

laptops, iphones and printers throughout the year. i think this was one of the best years best boy will see. i think the stock needs to create a bit >> we are thinking of creating a countdown clock for not this christmas, but the following christmas. >> starting the 26th -- >> starting now. >> you are saying goldman sachs is grinchy, i know when you go to best by you go there with a legal pad and walk out and buy things online. so maybe your habits make them grinchy. i think tim's point makes sense. that's where we topped out in february the quarter was fantastic, but maybe the best is in the stock right now. 91 makes sense to me >> the analyst says he expects

good comps to be reported when comps are reported in march so expecting a good holiday season. but the question is whether they can top the performance. >> i don't think the valuation is that stretched. the pandemic and working from home but it's come down a fair amount already. i am disagreeing with the grinch here i don't know what the opposite was, but i am not frosty on it >> cindy luhoo >> good one, guy your final trades coming up next but we are hoping things will pick up by q3. yeah...uh... boss: doug? sorry about that. umm...what...its...um...

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♪ do not miss the race and opportunity in america looking at the latino community, that is tonight at 8:00 p.m. eastern time time for the final trade tim seymour? >> disney. you want new content, how about the kardashian family on hulu and star reason enough to buy it. disney >> dan nathan? >> i think an unsung player is

siri >> i agree with dan on that. and i agree on home depot. i like from the valuation. lowe's had a good day and i like home depot aspsx >> all right "mad money" starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there is always a bull market somewhere, and i promise to help you find 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 you, but to educate, teach, and put it in context. so call me at 1-800-743-cnbc or tweet me @jim cramer. the market about to break