$5 in perks. live from the nasdaq markets overlooking new york city's times square this is "fast money. tonight it's an earnings blitz take a look at all the big names on the move in the after-hours session. our team of traders standing by to break down results. tim seymour, bono and guy adami. we're joined by managing partner gene munster let's get straight to it we start off with the big three, nearly $6.5 trillion in total. alphabet, apple, microsoft out

with results we kick things off with alphabet hitting all-time highs in the after hours. >> still listening to the call that comes on the back of an already huge run this year alphabet crushing analysts expectations, but i do want to single out a few specific businesses first youtube, revenue of $7 billion, represents growth of 83% year-over-year during the quarter and it's getting even closer to netflix, which booked $7.3 billion in revenue in the same quarter growth of youtube shorts mentioning as well, the tiktok competitor, also surging the ceo just said that shorts surpassed 15 billion views, up from 3.5 billion as of the end of january meanwhile, google's cloud unit grew by 54% year-over-year

the ceo just said the increase in cyber and ransomware attacks is a wakeup call for the industry and google's approach to security is a differentiator in the field google doesn't provide guidance, but i did speak with their ceo who was optimistic, but she said it was too early to forecast any long-term trends, especially given the increase in covid cases globally back over to you. >> keep us posted. deirdre with the latest on alphabet karen, you're watching this closely. what do you think of these results? >> just the revenue beat is enormous and already going in, the bar was so high, and if i had to bet yesterday, i think i said, i think google is going down almost regardless of what they announce given how much it's run up regardless, except if they put up a quarter like this it was just astounding i mean some of the other things that deirdre touched on, google cloud. at some point we could see that number become positive

but the revenue beat is so astounding just one other thing i want to highlight that i thought was interesting, the repurchase that they finally made -- you know, real money towards, they said they will buy class a shares and class c and the gap between those two at one time was negative it's gone very far the other way. that will close the gap. the class a shares will do much better tomorrow than class c shares >> the reason why karen said down no matter what is because of the massive run we saw going into this quarter, particularly on the back of snap and twitter's results last week. and that's the case for all of these earnings all of these ran up in the past month, but this one stood out because it's holding up. >> up 50% in six months, and think about it on a relative basis because the mega cap tech stocks have dominated the market and we've talked a lot about apple over the last couple weeks. google has outperformed apple by 33% in the last six months it's been extraordinary. so the youtube numbers, to me, this is starting to inflect into

a place where this is a hybrid valuation you could put on the company that deserves a whole lot more than the rest of the company. and an ad business that grew 69%. so over $50.4 billion in ad revenues, bodes very well tomorrow for facebook. this is the trend that we saw even last quarter from these folks. so punctuated all of that, a lot of that ad revenue coming from the retail side. so, again, really exciting i just think the multiple on google still remains in mega cap tech and i don't need to tell karen, who is looking at me like, yeah relative to the big mega cap peers, still looks really attractive. >> quarters ago we said is this the quarter we're going to see alphabet get rerated we're still waiting to see that. what do you think of the quarter? what do you think of the valuation? >> tim just spoke to the drivers of the re-rating, and we can really point to the ad spend, we

can point to the revenue beat of about $5 billion if we take a step back, this company is showing us how they've been able to put all the components together. you have user engagement with youtube which is allowing them to add ad spend revenues in that segment and they're continuing to invest in other ancillary businesses that allow them to diverse their revenue base, autonomous, new ventures and when you add in that they are buying back classes of shares, they're hitting on cylinders. it's hard for me to point to one distinct thing this is a situation where you're seeing a company buck trend. typically you're seeing them taking profits going into earnings they have exceeded the highest of expectations. >> adami, i go to you to find the nit to pick in this earnings report i don't know if you can find something. youtube ad business was up 84%

year-on-year when you talk about the high growth business and then drill down on shorts, that's churning great growth what do you think? >> you know, i would love to play devil's advocate but i said this last quarter and two quarters ago, and i'll say it this quarter, the stock, even with the after-hours move is cheaper now than it was four hours ago. and i'll stand by that they beat eps, the street consensus or expectations by about 42%, and, again, i'll say it again, and we've said this a number of times, you're going to see analysts have to raise their price targets. you're going to start seeing north of $3,000 just given probably the $110 or so they're going to earn. you want to put a 30 multiple on that, which i don't think is ridiculous given their growth, you can do the math. you're talking about a stock north of $3,000. it's not going there tomorrow, but it's going there and i will tell you the best thing that ever happened to google, i think a lot of people, and i'm sure karen will nod her head, is when they brought in

ruth in 2015 and although i can't see him, it is wonderful to have bono and the ice-breaker back with us again. >> we're all happy, that's for sure we want to get to gene munster for his take on the earnings gene, what is the valuation? what is the valuation that alphabet deserves at this point? >> higher than where it's at and i think the trajectory is think about this over multiple years the one piece that we haven't talked about is the sustainability one of the reasons why we have this surge is that as things have reopened, advertisers have come back to google, given that it is the oxygen of the internet they have a dynamic pricing model, which means that it can go up and it benefits the bottom line we're seeing the mechanics of a reopen and consumers rushing back the reason why i mention that is when i think about the valuation is that there is going to be a question, this impacts apple and microsoft and a lot of the tech

companies, but about the sustainability once that wears off. and i think that that could have a near-term kind of mute some of the upside, but ultimately what google is showing is its importance to advertisers, its reach, and there's a piece, this concept that isn't reflected in google share, what they're doing around transportation, autonomy, longevity. these are things that investors talk a little bit about, but could re-write the multiple higher so to answer your question most simply, there's going to be the a fracturing of faang and i think google and apple are going to be at the top of that list, and based on partially the results tonight. >> it's karen. thanks for being on with us tonight. do you have any sense of the apple privacy, the new rules and how they affect google or facebook i don't know what to make of it. is all this demand in advertising, is it just reopened

and stealing share from more legacy type of media >> the impact to google i think was likely minimal i'm sure that question will come up on the call likely minimal, because google is typically a user generated ad request. essentially you type in what you're searching for that's different than a targeting or a re-targeting model that facebook uses and those re-targeting models are more at risk when apple makes some changes about some of the data that you're sharing with an advertiser and so i think that what we're seeing in google is positive for facebook, and facebook also has incredible reach in advertisers. they're going to be spending more there the facebook numbers undoubtedly will be even better if it not for the changes that apple has made, but i don't think we're going to actually see -- it's going to be so strong for facebook, we probably won't see it in the numbers. >> let's move on to microsoft now. shares are moving lower in the after-hours session on the

results, the conference call kicking off in less than 30 minutes. let's get to jon fortt for the details. >> the bar was high given the valuation of microsoft they hit $60 billion in annual earnings for the first time. this is the end of their fiscal year but the $46.15 billion in revenue up 21%, beat the 44.22 billion expected $2.17 better than the $1.92 expected but really on the cloud, azure revenue up 51% that's just a little bit slower than google cloud turned in, and microsoft is bigger. also, intelligent cloud revenue, $17.38 billion, was up 30% year-over-year linkedin was up 46%. remember, they were doing layoffs a year ago strong software picture. if you're looking for the nit to pick, hardware, you know that chips have been constrained. windows oem revenue down 3% and

xbox content and services revenue down 4%. this is not the holiday quarter and there are those constraints, so maybe that shouldn't be a surprise. >> keep us posted on the call. jon fortt with the details there. guy, we'll go to you on this one. is it just that microsoft is up going into this quarter that is not helping? >> yeah, we've seen this before. people look at the valuation, but jon mentioned it, azure growth 46%, the street was at 42% and operating margins north of 41% there's nothing not to like. maybe the stock ran too much we've seen them run up in earnings and sell off in a couple of days a week from now we'll probably be talking about a stock making an all-time high i'll stand by that there's nothing not to like in this quarter. >> it's what we've seen in the past, which is an opportunity for people to kind of take profits. we've seen these companies have tremendous runs over the last few weeks. and as these fears around delta

variant and other unknowns come in, you've seen a rush into these as havens. with all of that said, you've got to think about the base that microsoft is growing up and to be able to continue to deliver these type of results from that base, i think this is probably a buying opportunity here. >> would you buy, tim? >> i would wait, but i agree, i would remind investors, what is the thesis for microsoft you've got three business units that are basically all north of $50 billion in annual revenue. they stand right in the front of the line between the intersection of the digital world and the move to the cloud where they have a suite of products that gives them tier one, and they're delivering. they're delivering probably $70 billion of pre-cash flow every year this is a company that deserves a premium. we're about 32, 33 times to cash flow or an earnings multiple gets you to at least another 20

bucks on the stock and i do think it's an exciting time this is the golden age of mega cap tech and microsoft has carved out its space again, the move to cloud and enterprise is something that i don't think we're mid innings on i think we're still very early here. >> theoretically if work from home ever comes back, the benefit was microsoft. it was to the cloud players. so that should in theory continue >> shouldn't continue is what you're saying or should? >> if the delta variant is a concern, then you want to be in this name. >> yes, right. it's just expensive relative to itself, it's somewhat expensive relative to the market it deserves a premium multiple for sure i don't know that i would jump in today if i wanted to buy more i would maybe let it settle out a little bit but i think it wouldn't be surprising to see analysts very positive on this there's a lot to like. the azure numbers, this many

years into it to have that kind of growth is pretty astounding. >> guy, if you were fortunate enough to be on the conference call and ask a question of satya nadella, the cfo, what would you ask? >> i would say to karen's point, it's the growth in azure we're seeing that so many people are giving them a premium multiple on the back of sustainable that's exactly the first question i would ask >> let's get to apple. the stock was trading lower after results the company's call kicked off at the top of the hour josh lipton has the latest. >> apple's results, digging into the segments, iphone revenue $39.7 billion. services, $17.5 billion, mac, $8.24 billion in the quarter ipad $7.4, wearables and accessories, $8.3 billion. apple did not formal guidance, but we expect more color and commentary

i did speak to the ceo, adam cook i asked him about the ongoing chip shortages we are seeing cook telling me they are being impacted, he said primarily affecting mac and ipad we had expected the shortages, but we were actual able to mitigate some of that, he said i think we have a world class operational team we talked also about who was buying the new iphone 12 line up, is that existing just upgrading, or switchers. cook saying we saw strong double digit increases during the quarter. as for china, i mentioned the 60% move there cook said iphones did extremely well there, the 12 pro and 12 pro max were very strong we set new june quarter records for mac, wearables and services. there was nice momentum across the products finally about mac and ipad, the skeptics will say students are going back to the classroom, workers are going back to the office and that's bad news for

mac and ipad cook telling me we're not making long range predictions, but i would point out that many companies are going to be in a hybrid mode and you're going to have them supporting employees from their office or homes i think it's here to stay and for many classrooms as well and it will be some sort of hybrid mode back to you. >> thanks, josh lipton let's go to gene munster what's your take on apple here >> there's the stock and the business, and eventually the business follows the stock they are not getting credit for the strength in the business up 11% versus expectations, they grew 36% it was not that easy of a comp it was flat a year ago this is impressive and you look at the stock and wonder what are we missing and what we're missing, of course, is the bingo word of the day of sustainability. so let me just quickly highlight the sustainability question. 75% of apple's revenue is going to have a tailwind for the next

few years, mac and ipad, iphone, 5g upgrade cycle but that in itself, i suspect, will continue to power great results and i think we're going to be asking the sustainability question again each time apple has a great quarter investors are going to wonder how long is this greatness going to last, which brings me to really the punchline and it's my guiding principle. we talked about google, but apple, too, around innovation. i think ultimately investors should rest well knowing that their core businesses are doing exceptionally well and more importantly that the company is tapping into new massive markets around transportation, health care, augmented reality, all of these have the potential to accelerate $300, $400 billion growth company so patience is going to be a virtue with this they may not get the credit today. i do believe that the stock for the next year plus should be $200 but if you start factoring in some of these other markets that

they're going after that i just mentioned, this could be a much bigger valuation than $3.2 trillion. >> i get your notion about sustainability and i'll direct this to you, tim we asked the sustainability question more pointedly when we questioned the valuation and we think the valuation is full. is that the case with apple? >> well, i think the valuation has come a long way relative to itself so the bingo word of reoccurring revenue or -- look, so services, which are up 33% year-over-year roughly, you can make an argument that 50% of their services revenue are apple related services, so this is reoccurring revenue. this is actually predictable and if you look at their eps overall, guess what, the transformations happen before your eyes. apple is now getting probably half, maybe even a little more than half of their eps from their services business. and so, yeah, i mean it's absolutely worth a whole lot more and that's why the stock has been rewarded.

>> gene, sorry, i almost got in trouble. so we always come back to this issue with apple hardware multiple, software multiple, how do we decide what should the hardware multiple and software multiple be to get us a combined multiple >> i think the sum of the parts would yield that you're where you need to be the stock is fairly valued if you think of some of the parts because of the difference between hardware and software. i think holistically that in the years to come, just think about, investors will think about it as a growth multiple like facebook and google companies that we can't live without. and i'm steering clear, i'm not endorsing apple marketing, but i do believe their products enrich people's lives and i think that companies like that continue to see growth and investors, i believe over time we are focused on the services versus hardware. let me just pose this. we believe that apple in the next year to two years is going

to come out with what we refer to as a 360 bundle essentially they will offer all their products as a subscription, so you get a mac every three, four years, ipad every two years. it's service and it works and in that case you start to think investors think about this as a holistic growth multiple then what is the multiple to finish your question, karen, what's the right multiple? i think that conservatively it should be 20 to 30 times if they learn $7 next year, that gets you to the $20. >> you've been talking about that for at least a year or two years, hardware as a service of the three we were talking valuation all night and that's key to seeing how the stock is moving but we are showing the forward pes. apple was 28, google, or i should say alphabet about 31, microsoft at around 34 which would you choose what do you think is the buy

here given the results posted and the reaction in the after hours? >> well, it's hard for me -- to answer your question, i would say google but it's hard for me to try to top tick them given the momentum we're seeing after hours i prefer to see a little bit more liquidity traded and then choose a point of entry there. if i may, that double digit sales in both new users, as well as new conversions, upgrading, that is woefully impressive. i don't think that can be overstated enough. considering the way that the hardware is to bring you into the ecosystem and then puts you in this service system, to me that is incredible i don't think that has gotten enough attention and that is clearly what caught my eye looking through the earnings. >> the hardware margins beat expectations if you think about how a lot of other businesses market loss leaders, you basically give away a product to get the higher margin if you're trying to get services

out of 69% margin, having a 37% margin on the hardware ain't too shabby >> no, and if you want to call it a loss leader, i mean, i can't believe i'm saying that, but to a certain extent that's what you're looking at now you're talking about services which are 21% of overall revenue, trending the right way. how do you trade the stock listen, this was a wonderful quarter. i think last quarter was equally outstanding, and if you remember, the stock traded up to about $138 nowhere near the prior all-time high of $144 then spend the next couple of weeks trading down to $122 what does that mean? past resistance becomes support and maybe you find it in the form of $138 i'm not suggesting it gets there. but if you haven't been in the name, that would be a tremendous entry point if it does get back down to the $138 level. >> we'll touch on you later. up next, we're breaking down a big quarter from starbucks that it is moving lower on the back of the results.

we're also tracking smd and visa calls under way. we'll break down the trades. rksie live from the nasdaq maette in new york's time square "fast money" is back after this. that's why i started medhaul. citi launched the impact fund to invest in both women and entrepreneurs of color like me, so i can realize my vision and give everything i've got to my company, and my community. i got you. for the love of people. for the love of community. for the love of progress. citi.

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welcome back to "fast money. we've got an earnings alert on starbucks. the stock is down in the after hours and the company's call under way. let's get to kate rogers with the details. >> despite the move lower, a strong quarter for starbucks with beats on the top and bottom lines, thanks to strength in it's u.s. business global same-store sales up 73% international same-store sales came in at plus 49% for the quarter, lower than anticipated. in its second home market of china up 19% and in the top market in the u.s. up 83%, driven by an 83% in comp transactions more color on the u.s. business, same-store sales up 10% on a two-year basis and cold beverages driving a lot of this quarter's momentum, accounting for nearly three-quarters of beverage sales grew to a record $24.2 million drive-through now represents about 47% of transactions and

mobile order and pay about 26% of transactions in the states. despite uncertainties with covid, they did introduce guidance, global up 18% to 21%, americas up 22% to 25%, international up mid to high digits on the earnings call which is under way, ceo kevin johnson sounding upbeat, touting the company despite supply precious and covid and beyond >> we're going to hear from kevin johnson tomorrow morning, 9:35 a.m. eastern time let's get to starbucks they raised the forecast and it doesn't look as good as it sounds given the tremendous beat they had for the quarter. >> these are really tough comps and ultimately to look forward, getting 21% north american comps, and effectively the same

thing on global, i love this talk about reoccurring and sustainability and the ability to pass on price increases they have the ability to do that they've had the ability to do that the mobile, the digital. the loyalty are part of why the multiple, as we've seen for other people, whether it's c mcdonald's, i love the company, i stay long. >> was it enough in terms of the range that they gave for the year they raised basically the bottom part of the range by 6 cents and the top part by 1 cent >> yeah, i think it's the guide because if you look at operating margins, they were up 230 basis points it's the guide and the international comps which were extraordinarily disappointing. but i think fp it gets down to $118, which was the prior all-time high, i think you buy it begin listen, valuation has been a concern for years and it continues to grow into it.

i think people were upset about the guide and maybe it's a bit of a sandbag, but the quarter in and of itself, the comps internationally is outstanding. >> and the loyalty figures they have in the united states, 90-day active members of the loyalty program, of which tim is one, up 48% year-on-year i don't know if you're among the 48% year-on-year, but that really speaks to this brand and maybe the premium that the stock should have. >> it does and starbucks is reserved for business meetings and days that i'm late to the office so i try to save when i can. but jokes aside, it's a tremendous company, and i don't think there's anything they could have said in any business segment or in any offering that they supply their consumers with that would have led to the stock trading higher i think it's a situation where this has performed so well recently and expectations were so high that i really don't understand how they could have

possibly traded higher in the after hours and we're seeing just that. >> that's the story of the entire market, close to record highs. this earning season was really a test, can the stock, can the company deliver to perpetuate the valuation it has achieved going into the reports. >> yeah, the bar is just set so high it's interesting to see all these gigantic numbers and think thank god the feds are still keeping -- >> wait until tomorrow we've got a fed meeting going on right now. and i don't think they're going to do anything. >> i don't either. >> but nobody is talking about the fed. and delta variant gives a lot of room for keeping the fed at bay. but it's amazing to me, when you saw those durable goods numbers, we had a lot of macro and housing prices that were up 16.6% year-over-year do you think that's healthy? do you think that's not a bubble i think karen was being sarcastic. and i think it's a case where

the fed should be paying attention to inflation, and unfortunately we all are. >> given market action that we saw today, guy, do you think these earnings, and we've got a lot in terms of the other earnings we're expecting, facebook tomorrow, amazon after that in terms of market direction. but based on what we've gotten tonight, what does that tell you so far about where we could see the markets going tomorrow >> i think it's enough to keep the markets moving forward listen, google's numbers were ridiculous i think the market will come to grips with apple's incomes microsoft is a function of the run. i think they will come to realize in a couple days those numbers were outstanding as well so i think on the margins, i don't think this does anything to take the wind out of the sales of this broader market rally. it's not a tremendous tailwind, but it's good enough. >> next we're breaking down results from visa and amd. both stocks on the morph in

after hours. plus, what went wrong for ups. the stock tumbling despite a strong waet. we're all over the after-hours action as the call gets under way. we'll ing bryou headlines. "fast money" is back in two. i'm evie's best camper badge. but even i'm not as memorable as eating turkey hill chocolate chip cookie dough creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine. you can't beat turkey hill memories.

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- had enough? - no... arthritis. here. new aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. welcome back to "fast money. we've got a double earnings alert. shares of amd and visa on the move we have full team coverage on both kate rooney is on standby. christina? >> so far their results did not disappoint in q2 because adjusted earnings per share came in at 63 cents the focus is around sales of its

data center chips which came in at $1.6 billion so that did beat the street that means data center and the gaming segment sales nearly tripled so amd is chipping away at its rival intel keep in mind the market cap is roughly $111 billion, half of intel's. other big news, the ceo said they are making progress in the automotive seconder. amd processors and graphic chips are used in the newly updated tesla model and that means you could play video games in your tesla, not when driving. amd has raised its third quarter and full-year revenue guidance it expects revenue to climb to 60% year-over-year the stock is trading partially lower because they were just talking about pc sales being flat and about potential shortages. that's just happening on the call right now. >> thank you our exclusive interview with amd ceo tomorrow at 9:00 a.m

yesterday we were previewing tech earnings, you went to amd down slightly in the after hours. what's your take >> and it's down 10% from it's all-time high. remarkable quarter operating margins were 24 hours, context, 12% last year and beat what the street was looking for. revenue guidance up 60%. there's nothing not to like. people will say it's a premium valuation and i think intel would kill for a quarter like this i think the stock is selling off maybe on valuation concerns. i think lisa su will assuage any concerns investors have. i think you buy the stock here. >> technically speaking amd has been around the 95 level and in the after hours it tested that level. i think that is going to be a key level look at and that will

give you an indication of how the shares are going to trade tomorrow. >> watching shares of apple trade lower in the after-hours session. news coming out of the company's conference call. josh >> apple executives are not giving formal guidance on this call but color and commentary about what they see ahead t. ceo saying they expect very strong double digit year-over-year revenue growth for the september quarter, but he said it is going to be lower in the june quarter, we just saw 36%. he listed the reasons for that he said there is a foreign exchange impact, services, he said, will return to a more typical level of growth. the june quarter he said benefitted frd favorable compares due to the covid lockdowns and the supply constraints we saw in the september quarter, he said, are going to be greater than the june quarter and that is going to impact iphone and ipad. when will those constraints ease tim dock saying he would not predict at this time how long the supply constraints would persist, but apple will work very hard to mitigate the

impact also giving gross margin forecast and said it's going to come in between 41.5 and 42.5% for the september quarter. of course it was just 43.3% in the june quarter back to you. >> josh, thanks. let's go straight to again the sequential decline in gross margin to be expected from supply constraints because of chip shortages and a question about the bingo word you had about sustainability >> so services are going to start to migrate back to kind of that high teens growth, so the sustainability is where it was for the past few years that doesn't have the tailwind, i talked about that 75% of their business has a tailwind. i did not include services in that there is an important take-away from the guidance whenever a cfo talks about lower growth rates, my antenna goes up if you parse through the comments and put a finer point on josh's very accurate reporting there, that the growth

rate, it really implies revenue for the september quarter of somewhere between $75 and $84 billion. a pretty wide range. they did talk about the component shortages and add had the iphone is going to be part of that. before it was just the mac and ipad so it's iphone and ipad this quarter and they said that the impact is going to be greater than it was in the june quarter. so the translation for that is they're going to have component constraints for the new iphone and obviously the iphone is a big part of their business and so i would look at this in the context of you need to address these three and look at them on a normalized basis and i think that if they have that supply constraint, the real guidance would have been probably somewhere between $82 and $87 billion, versus $81 where the street is at we won't start that see that but it does leave a silver lining, which is expectations for the december quarter will probably bump up because the demand that they're not going to be able to

fulfill because of the component shortages will shift over to the december quarter. >> and we've talked about that a lot, karen, in terms of supply constraints, but then it goes to the next quarter so what is the real downside? >> right, if you think about it is it a sale denied that will happen delayed or denied if you don't go to a restaurant because it's closed, that's been used up. >> especially on a refresh cycle. that's what they're doing. and it's interesting, because apple, they're maybe the biggest manufacturing company in the world. we haven't really heard this from them. they haven't really shown weakness in it's ailing everybody else and that december quarter, i think the street is somewhere around 83 million units. maybe it's going to be bigger. >> i think they have a couple of times had some production issues or -- at the beginning of the pandemic, i think maybe. but i don't get that this should be a big negative. i don't know i'm in your camp. >> unless guy is concerned about

a sequential decline in margin, or it is a concern that services revenue will go back to the way it was pre-pandemic. >> right, and then people will say, well, if that's the case, to short of dovetail that, are they deserving of the premium multiple they're getting with eps growth, which is, you know, in today's world it's not what we're seeing with some of the other companies like google and facebook, for example. so that would be a concern i would say, once again, in terms of the price action we saw this exact same thing playing out last quarter it found a home around $124, fell off of $138 i would submit the $138 level will become support here so, again, if it gets there, to gene's point, i think you buy it with both hands. >> meantime, visa shares on the move lower on the back of its results. let's get to kate rooney for the breakdown. >> visa beating on the top and bottom line in it's fiscal third quarter. the stock is down after hours,

despite profits, net revenue and payment volume all increasing year-over-year and improving globally visa is not giving any guidance this quarter the call is still under way here visa's cfo saying that travel and entertainment spending is approaching 2019 levels. the ceo, al kelly, highlighting cross-border travel spending that's improving as vaccination rates rose and more borders reopened he also says domestic travel improved about 20 points quarter over quarter he talked about cash use declining, which is good for visa, as well as improvement in global credit spending, face-to-face payments he says are stable essentially online spending is still strong al kelly also talking about crypto he says cryptocurrency purchases drove over $1 billion in payment volume he says it represents, quote, an

engine of new growth and the cfo just saying a few minutes ago that cryptocurrency spending brings more active cards and more spending per card for those crypto purchases visa says it works with more than 50 crypto wallets and platforms, which is up from 35 in the prior quarter the ceo points out that is more than the next leading network. he didn't mention mastercard by name it's still down after hours, down about 1.1%. it is still up roughly 14% this year back to you. >> kate, is there a sense in terms of the transactions done by crypto, that those are transactions that visa otherwise would not process, or are these transactions that would have been cash in process, but are now crypto and process >> i'm getting the sense these are new transactions, it's a growth engine for visa and thes others wouldn't be happening if you're going to purchase on a cryptocurrency exchange, that's something you wouldn't likely be

able to do with cash so it does seem to be a new growth area. it's been mentioned a couple of times. surprisingly on the call, i don't remember any other visa quarters where we heard as much about cryptocurrency spending and that being a driver of growth. >> kate, thanks. kate rooney. karen, you're commenting on the crypto line. >> i thought it was interesting, i think i read in their comments, they tie it to stimulus so i don't know if the end of stimulus will cool that engine a little bit i don't know it's interesting that they even call it out. that's kind of amazing. >> again, the sustainability question when it comes to visa and the stimulus, will it keep up? >> that really is a million dollar question, what is going to be the consumer behavior and we're seeing that in a lot of the different companies that we've been speaking about. essentially is this going to be a covid related type of dynamic or are these trends going to follow through in the new world? your guess is as good as mine. i will say i think part of the reason visa is trading the way

it is after hours, this stock absolutely was on a tear on the back of am ex earnings and i think it had to give up something. it's another one of those situations where i think a lot of this already been priced into the stock over the last week or so. coming up, we're diving into the rough day for ups. more on that, and what's behind the move next. plus, more big tech earnings, facebook on deck tomorrow after 'vllbe wee got your setup into the print when "fast money" returns. (sound of people returning to the workplace) (sound of a busy office) (phones ringing, people talking, meeting) the company we've trusted to keep us working remotely, is the same company we'll trust to bring us back together. safely.

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so put off those chores and use less energy from 4 to 9 pm when less clean energy is available. because that's power down time. welcome back to "fast money. we've got a news alert in the ipo market let's go to leslie picker. >> melissa, i am hearing from a source that duolingo has priced it's ipo at $102 that is above the range that it boosted about 18% from its marketing range. the top end of the boosted range was $100, so pricing $2 above that that implies a valuation of $3.7 billion for the app that teaches new languages to about 40 million users

$521 million is the offering size for this ipo. shares of duolingo will begin trading tomorrow they will be listed on the nasdaq under the symbol suol >> thank you, leslie picker. got a buzzkill for ups, seeing its biggest drop since october. the company saw a 16% decline in residential shipments, and the ceo will be sitting down with jim at the top of the hour with more on the results. you won't want to miss that exclusive interview on "mad money. of course it's had its impact on fedex, tim, and i know you're watching that. >> well, look, there's some sense that there's really some slowing in the e-commerce business and that may be short-term, and, again, very difficult comps. but ultimately lower u.s. volumes, but better yields overall to their business is actually, to me, not bad i thought today was a total overshoot in the back of also it was another day where you had a

couple of headlines, the imf out there, more on the delta variants and i just think people thought a lot about these trends, that i think look at where the economy is look at where the e-commerce trends are listen to what google and all the guys at apple are telling you today and it's very, very good for ups so i thought it was an overreaction >> i agree i have a little ups, i have a lot more fedex, and obviously that got pounded as well i thought that was very much of after overreaction i bought some today and did some options trades i think the valuation at 14 1/2 times, whatever it is for fedex right now, is discounting a lot of muted growth and i think they're still in the middle of the turnaround and i think as businesses reopen, that's profitable business for them because it's more concentrated, they can deliver a lot at one place. i think it's an opportunity. so you may get a better opportunity tomorrow or the next day, but i did buy some today. >> relative to the market

multiple, so this is how you have to look at fedex on a relative basis and it's very cheap relative to the s&p. >> guy, trade or value trap? >> no, trade i mean, you put a 17 multiple on the $24 and you've got a stock north of $400 and i power pitched it at $302 and you see it's $282. i think it's an overshoot as well people are knocking down fedex i'm not sure why value trade, that's what i would go with. >> apple sitting at after hours, close to after-hour session lows there are more earnings to go as facebook gears up to report tomorrow after the bell. we've got your setup when "fast money" comes right back. and the worst wait times. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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welcome back to "fast money. check out facebook shares getting caught in today's tech sell-off they report earnings tomorrow after the bell mike, what are you seeing? >> yeah, so we did see calls outpacing puts by about two to one today, but not all of the activities was really that bullish. right now the market is implying a move of about $20 higher or lower after they report by the end of the week.

that's 5.5% of the current stock price and that's in line with how much the stock has moved over the past eight quarters but the trade that caught my eye was a purchase of the august 6th weekly 360 strike puts somebody paid about $8.55 for a little over 1,000 of those obviously the pbuyer of those puts is hedging or outright betting that the earnings could provide some disappointment. that would represent a decline of about 4% by a week from friday. >> karen, we got really good results out of snap, twitter, and now out of alphabet and here we have what would indicate bearish activity in facebook what do you think is going to come out >> facebook is up three bucks in the after hours on the heels of google the bar is so high i'll say it again, like i said last night for google, that i don't know if there's a quarter they can report, and we saw google did it, but facebook will have a great quarter there's no question. they're going to have a phenomenal quarter >> you should ask guy because he

doesn't like the company, but he likes the stock. >> guy, you've said that many times. you don't like the company you hate the company with every fiber in your being, you've said, you hate the company, yet you like the stock. >> and fiber is important for all good diets that's a little bit of a psa for all you folks out there. nos nothing about the platform that i like, but i to like the stock. and i understand what karen is saying and you saw great quarters out of twitter and a reversal in the stock. i will say again, you can make a compelling argument on valuation alone that facebook should be north of $385. i'll stand by that. >> mike, thanks to you more options action, be sure to tune in friday 5:30 eastern time up next, final trades.

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>> karen >> yes, my final trade is the one trade that i did do today, which is buy fedex. >> tim >> should we give guy another shot >> are you there >> i'm going to go with visa >> thanks for watching "mad money" with jim cramer starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there's 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 want to help people make money call me at 1-800-743-cnbc or tweet me @jimcramer. at aom