rate hike next year. >> it will be tough to have another record close with facebook down. >> nas dasdaq was the leader it looks like it will be under pressure tomorrow. >> the snap call will be one to listen into as will "fast money. snapchat down 25%. thanks for watching. "fast money" starts now. >> this is "fast money." i'm melissa lee. to kick things off is a major earnings alert on snap that stock is plummeting after hours, down about 23%. the call is underway let's get straight to julia with more on the quarter. >> that stock is plummeting after snap reported third

quarter revenues and missed estimates. the company guided to lower than expected revenue for the fourth quarter. snap added 13 million users over the course of the quarter. that beat estimates by about 4 million. but the ceo warned that apple's privacy changes are impacting the company more than anticipated saying - nouz spiegel goes on to say the company is building its own first party measurement tools to mitigate these privacy changes and also noting that supply

chain constraints and advertisers are hurting its business look at some of the other social names taking a hit on this news. facebook, twitter, pintrest and google's parent alphabet these other social stocks are so exposed to advertising in that ios system >> investors wanted to look through and look at what we have right now. the reaction -- the ripple effect across the sectors is notable. >> i think what they warned about. it is a measurement issue. if they can't measure it makes

it challenging to advertisers. snap said we are going to be working with apple and we think that will work out that's not accurate enough and that's why snap is building its own measurement and data system. i think the blog post a couple weeks ago was indicating we could see some impact like this. melissa, this is an unfamiliar area, new territory for all of these companies. they are trying to navigate it it is not just a question of can their ads work, it's whether they can measure how well they work >> keep us posted on this. the latest on snap guy, what do you make of this >> this might come back to bite me in the rear end snap was expensive going in but a lot of people loved the stock.

goldman staachs initiated with $90 price going in but i get it, valuation is concerned, they whack the stock. facebook down here in my opinion is a bit of a gift if facebook didn't warn already all of the things they were going through, you have to believe the quarter monday will be stellar i think you have to buy the stock. i couldn't figure out what the stock likedooked like into earns but i think it looks compelling monday >> why shouldn't investors in facebook be concerned about what snap is saying they said the bigger impact would be in the third quarter. we are getting confirmation from

snap there was a big impact in the third quarter. are you worried, karen >> i am always worried about everybody. it's my nature but as facebook and alphabet holder, i am worried facebook had a crescendo of news from a whistleblower and other things the valuation is something that can't be ignored snap had a higher valuation due to its higher growth so when you miss and have a high valuation, you will get punished more i don't know if this is enough of a punishment for facebook and alphabet, but they have addressed this if we get a bad take on the day facebook announces, if it trades down on the same news of the apple privacy changes, i don't

know but ultimately it comes down to valuation. one other thing that's interesting is for paypal which has gotten crushed on the idea maybe they will buy pintrest, this just adds more cold water to don't want them to do that. i think facebook and alphabet will hold up the best. >> who needs crypto? this is a stock 23 times revenues that's crazy i think the apple io srchl campaign tissue is an issue for all of these players it is a macroissue it is what it is i do think advertisers have a more difficult problem and then

there are companies that this is what they do for a living. i think this serves them quite well it's interesting to hear about supply chain dynamics also affecting the ad campaigns that is something we hadn't heard. to me this is a snap issue >> it makes total sense, right but when i read it, it was like that is something i haven't thought about, pete, the supplies issue impacting their advertisers which impacts advertising with snap which is another headwind that snap faced. >> absolutely. and they promised so much. if you look what they were projecting for this quarter, it was astronomical you guys are talking about the right things when you look at this from a valuation perspective and pe or whatever metric for snap versus

facebook, it's not even close. they trade in the 20s in terms of pe. there is a lot of difference between the companies. i realize they are both in the social world growth is an issue when they projected growth for next quarter, that didn't look so great i think there is a reason snap is in the box and getting hammered facebook i bought stock on the pullback i will probably be reevaluating again to add more stock on the pullback because i think it's far too cheap and facebook is so much better run and so much more mature >> the rest of the group trading

lower down on this issue as opposed to when they actually report on the snap call i would think investors still want clarity on when the bulk of the impact will be felt of this ios change if the companies can't give clarity on that, then it's an open ended question that's hard to deal with >> clarity, in terms of this -- this is just my opinion -- the best company to give clarity would be facebook i would imagine, but i could be wrong. claire comes in many different forms. you get bang for lack of clarity for the valuation snap was trading at and valuation of doubt at what facebook is trading at google is probably lower as well i haven't looked the setup in earnings, i was

apprehensive on facebook given the sell-off and subsequent bounce i am clearer now we will see monday night and you could start by roasting me >> let's get your take, jared, on snap? >> i agree with what everyone is saying apple privacy change clearly impacted the business more than expected snap has been beating revenue by about 10%. here we walked into something not in line, but a straight out miss revenue of about 57% year on year which is a staggering

numbers, but investors were looking at something closer than 70%. underneath the surface you have the engagement trends which are positive when you look at daily active users they are ahead of the street their guidance on the conference call, coming in ahead. it is not a user problem, but goes back to the fact they are having a significant problem trying to be as effective with their ads in this world. it is not idiosyncratic to snapchat anyone will be impacted. but when you look at it trading so much above, clearly a reset for sure >> jared, i have a question for you.

based upon what you are talking about, it sounds like you are viewing this the same way we are, but i want to hear confirmation facebook, what are you looking for monday after this evening? >> i think all of the points made are spot on when you look at relative valuation, they are trading at ten times, not revenue the street already has revenue cut in half. down to 20 in next year. similar to what guy was saying it's almost a free look. the setup is more than reasonable >> it's tim.

let's look at ad pricing around digital ads which has been such a strong story what do you take from snap's headlines on global supply chain for medium pricing are the tail winds intact? >> i think they are. we are going through something transitory, but you think about what is happening at facebook and apple and twitter. i think they are in a good position the one wild card is what you talked about in terms of snap highlighting global supply chains are a mess. does that impact advertisers

is the consumer potentially more impacted than not? so you have head winds within the overall advertising trend environment to think about we could see a rotation more into software because you have a big chunk of internet offline. >> can we talk about the reset because of these new privacy rules? i like looking at it as a rule change everybody has to contend with so it affects all of these players. but once it gets to the other side of this, what does that world look like? because it's less targeted and the information is not as good, do ad rates come down? how do investors think about that >> we are going through the reset and rates will come down the rates of snap, those that

have the big r and d budgets facebook will spend $85 to $90 billion next year. they are pouring billions into this they will do what they can to increase efficacy. longer term i think they are working on a solution, but there are other alternatives do you have advertisers that shift dollars away from facebook or snapchat? do those benefit from an advertisers shift perspective. this does level the playing field across the board everyone is facing these head winds and it's not just a snapchat problem >> it can't be assumed that everything goes back to normal after this reset there is a possibility there is a shift. >> absolutely, unless apple

backs down, but i don't expect that tim cook takes privacy so seriously. that's a headwind for the entire group for sure >> jared, always great to get your perspective karen, how do you think of this reset as jared put it. >> one thing he talked about, which i think others have as well, is the ability of facebook and google to navigate this maybe better than snap and some others that will be interesting to see. however, i'm optimistic they will be able to do it. i don't know,even if they are able to do it, if it still hangs over the stocks and puts a ceiling on them. it is not making me a seller of alphabet or facebook i saw it down 3 or so percent. i am not a seller.

i think they will navigate better than most >> we were talking about some of the biggest names getting whacked in the after hour session and the impact tomorrow has to be a negative one on the broader markets. guy? >> when you can see stocks of this magnitude, facebook, when you see 2, 3, 4% move, it makes you wonder if it happens to individual names, what could happen to the broader market i think it sort of reminds us that this could happen it's going to be fascinating how the broader market trades tomorrow we have seen news not necessarily of this magnitude that has been brushed off over a day or two, tomorrow will be interesting. this is just my opinion. but it seems pretty snap specific in terms of the move.

i remember the first conference call was a disaster, but they have been great ever since this is their first misstep. i want to give it the benefit of the doubt unless facebook proves me wrong monday, which i don't think they will do >> the part of the tech sector getting waxed in the context of rising rates that doesn't help either you are taking a hard look at not only the sector itself, but the context it is trading. >> but facebook being value plays in the middle of the sector should make them more immune we talked about maybe cap stocks being defensive in a lower environment. this could be good for the economy. not necessarily good for mega

cap tech i think the most important thing is where we come from. google and facebook make about 10% of that. up 4.5% over 5 days, svix, is up 16 they have had a big run. this summer seems like a distant memory and that's the most important issue right now. pete, seeing the moves in the after hours, what is the thing you buy tomorrow or maybe tonight in after hours >> most intriguing to me was facebook i reached in once at 344 and then had a run and pulls back. i will be looking at that. i realize there are dangers in the future

but with the pullback by facebook, pretty significant, and a recovery, we are up 1,000 points in the nasdaq itself in the last week. even with the rates where they are and still seeing the nasdaq stocks which are the ones supposed to be under pressure. it shows you how powerful this move really is it is microsoft. these big mega cap names that i think still are names we should own. not only do they look great on valuation basis, but they are still growing, growth stocks as well that combination tells me there is room to the upside for a lot of these names coming up, intel shares are sinking after reporting. >>and me> so say a macy's split

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welcome back we have an after earnings alert on intel josh >> intel was up about 10% this year, down about 20% from its two-week high. but now is down sharply. $90 versus expectations. the data center business wasn't as strong as expected. eps was light. gross margins going down suggests costs will be higher next year. questions where is intel on the product roadmap. they said demand for semiconductors is strong but a challenging splooi environment he said he didn't expect the semiconductor shortage to end

until 2023 as for data, they said there are short-term supply constraints impacting that business as well. for more tune in tomorrow morning. we will be speaking with the intel ceo. >> a lot of questions. josh, thank you. >> the culprit is supply chain according to the ceo >> should they be hit harder than others? maybe. because people think intel has so much to prove to be a global player and where their interface is it was going to be a two or three-year process in that sense you could say give them some time but we want to hear about the cap spend, about the commitment

that puts them in position at some point to take the pricing control away from taiwan semi, et cetera. it doesn't change where the stock sits, which is significantly cheaper to taiwan semi and other comparable players. data center group growing 10% is not good enough. two quarters ago that's what knocked this stock out of bed. >> value trade, pete >> i feel like it's a value trap it is frustrating. tim is probably frustrated with this i think he is in this stock, i am in this stock >> yep >> the constraints, we all understand that. we know we will hear that, but

it feels terrible because i think as we hear others in the industry, i think we will hear other numbers, whether it's amd or others. it is frustrating. this ceo had a handle on things and was ready to push forward. when i look at the projected earnings numbers, it's frustrating because they are not there. there is still a lot of spending to go into this. they have great free cash flow we know that but the frustration level is high this stock goes two steps forward and one step back. and here we are back to the low 50s. >> do you think hearing the other reports, you will hear that there are their own problems unique to intel >> i think it's intel problems

there are a lot of good things going on for other people. texas instruments which i didn't understand on valuation $15, continues to climb higher. it wasn't a complete disaster. if you look at some others kline computing came in. and operating margins were better than the street was expecting, down but decent they took this stock to the woodshed which to me is surprising but people are saying intel has to prove themselves and they haven't been able to do it >> coming up, a big call on macy's one analyst saying it could be a $42 stock. >> and trump spac.

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welcome back to "fast money. macy's shares going up if e-commerce spinoff becomes reality, the firm sees the stock going higher great to have you with us. are you saying that after the spinoff macy's, the brick and mortar part of the business will

be worth much, much more >> yeah. the ecommerce business is worth as much as one to two times sales. which is $42 there are different scenarios where the e-commerce is undervalued relative to where it's trading overall when we look at comparable companies, they trade at one or more times sales multiples this is possible and being analyzed but there are a lot of risk factors and separating the two businesses will not be easy. they will have to go over hundreds of service agreements clearly the customers on the channel behaving and shopping in

both digital and physical. >> thanks for coming on. i am confused. is it possible that the rest of macy's, with the debt, bricks and mortar and some under scale, is worth negative depending how they divide up the e-commerce sales? >> that's an interesting part of the story. the rest of the business he would model as declining 3 to 4% and model the digital business growing 9 to 11% thinking about a sum of parts, clearly an valuation would be lower on the brick and mortar business but a physical presence helps you acquire stores online. the customer experience occurs

across the channels. macy's has real estate we have quantified that at $2 billion. but the question is can macy's achieve this e-comm without this happening. >> what's puzzling to me is you have part of the business, e-commercewhich is worth more and the bricks and mortar which is like a shrinking iceberg without any e-commerce unit. you have two moving parts and i don't understand how in the end value is much more than now? are markets that inefficient that we are not recognizing the extreme valuation gap between the bricks and mortar and e-commerce >> it's an attractive idea

the market is skeptical. the multiple of macy's being 7 to 8 times de is low so it is tbd in terms of conviction and what the company can do our overall called for digitization and calling as an e-commerce retailer. part is time horizon, part is execution and part is understanding what kind of decisions you would have to make which would be quite complex in splitting businesses the future of retail in our opinion is physical versus digital. can you separate them? >> thank you, oliver tim, i will go to you. it seems like an extremely

complicated relationship to extricate, if you have a sale made online and brought to the store, there would have to be service agreements because the store will send back the merchandise for the online to process. it's complicated >> it is that's what oliver is pointing out. it is the combination of the hybrid multiple you want to see macy's get look what walmart is doing or how about target. oliver didn't just upgrade this stock today or yesterday he upgraded it six or eight weeks ago and pointed out digital presentation will be 42 or 43. a lot of folks have gotten excited about macy's, but i think this call is something he has had out there for a while. part of it is a sum of the parts and looking at it on real estate

and a dividend no one thought they could pay the dividend is something you don't buy the stock for, but protects you on the downside >> guy >> in summer of 2018 it was 42 i think if this gets to 32 which is the price target you just mentioned, i think you take the money and run. coming up, trump spac surging. striking a deal to launch a social media platform much what could this mean for the social media platform and after hours snap is still down about 23% the company's call is under way. we will bring you any news as it's called out. back after this.

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welcome back whirlpool out with its third quarter earnings >> whirlpool shares are falling. it was the biggest company's revenue miss since april of

2009 they said con i sstraints were elevated across the chain. asia was very weak net sales dropping 21% compared to the same period a year ago following the divestiture of whirlpool china. more consumers were cooking and was a driver of the business in the past bhwhirlpool has been able to raise costs to offset costs. but whirlpool shares are down 22% from its 52-week high. >> tim, you as a shareholder, what do you make of the quarter? >> supply constraints and dynamics are things we know. the question you have to ask,

some of these trends around demand things that are well understood or investors have belief in. their international business is underappreciated i think the valuation makes this stock highly compelling. we talk about going through home builders in more traditional ways and not a read on how people are investing in their homes. the tail winds are in whirlpool's favor. >> they have already raised prices, karen much how do you think about that >> i think they still have some pricing power. they were able to do it before this question we always ask. is a dishwasher delayed or a dishwasher denied. i would like to hear the call. that will be tomorrow morning at

8:00 had supply chain issues not been a problem, what could they have delivered. some of the pullback was on housing and supply chain it's trading down. i am long and like it, but i want to hear the call and see whether there are demand issues from housing >> pete, your quick take >> i look at this stock and it's way too cheap. it was $260 and we are down significantly off that it trades in a very low multiple 10% short on the float a lot of reasons i would like to sniff around and maybe start a position, but it will have to come after if i hear something about demand i want to hear there is still demand for their products. trump spac surging

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welcome back to "fast money. check out digital world acquisition corps.

spac soaring more than 350%. they plan to launch a social media app called truth social. he said he was laurng nching ito stand up to the tyranny of big tech he was banned after he was accused of inciting the january 6 riot karen, you had a position. what is the status >> spacs are a misunderstood entity the warrants to me seemed ridiculously underpriced i could not understand why someone would not buy the warrant which has an 11.50 which is now trading at 17, versus the stock which is now trading at

57 that's only the spac portion the combined entity is closer to $10 billion. that's great valuation out of something that doesn't quite exist yet. i don't know what happened to make this thing took off it is interesting. i do think there is an audience for it and it could be a competitor if i was fox news, i would be kernds -- concerned. i don't know how he will be covering it. to me there was a complete mispricing people don't understand how warrants work. that's crazy, $10 billion out of nothing. nobody has seen the business the prospectus isn't out yet >> this is one of the most

mentioned tickers on wall street, even exceeding game stock. so there are a lot of layers on top of whether or not this could be a player in the social media space. >> that is the story to me this could be the mean stock we talk about the next few months without mention. as karen mentioned i think it has a 57 handle. nothing nothing without the company, we have seen it enough times in other stocks to see what can happen if the masses get behind this. i think you sell this -- this could do very odd things over the next couple weeks, so strap in >> options traders are betting on more green ahead for tilray we will be back right after

this

welcome back we are all over the after hours action on snap much let's get

back to julia with some color from the call. >> the first 35 minutes of the call was the company reading its prepared remarks now they are in the q and a. the first question was a very long one and a very long answer from evan spiegel. he described the situation as a frustrating setback. but over the long-term they are investing to create solutions to help better serve their advertisers over the long-term so he's trying to focus on the solutions and how different their systems will be. he details how relying on apple wasn't sufficient to finding solutions. snap shares are still off more than 21% >> thank you, julia. and she mentioned some of the bigger players might be better positioned to deal with the changes in terms of having more money to spend to find new tools

to deal better >> facebook, as much as people want to shoot against them, they are the best equipped to take arrows shot their way. this just reinforces some of the points we made earlier >> karen >> i agree with guy agreeing with me agreeing with him earlier in the show. it did sound very specific i think goggle as well has the tools to do it if they are down a lot going into earnings, that could set up nicely, as guy is pointing out, for monday shares of tilray are trading higher options traders are betting this burn continues mike >> we saw more than two times the average daily call volume. this does typically trade and

out paces puts the most active actions are the call strike calls that expire tomorrow, but also seeing some of those that expire next week they traded for about 57 cents they are betting it could rally about 9% plus over the next week >> tim, i know you notice this and you are at a cannabis conference in vegas. >> this is the annual industry event. all of the exciting things we talk about in cannabis, growth, everything >> the stock was up 21% over three days some people have been critical, rightly. but if you think about sales multiple, which i think is rightly, those that are profitable in the u.s. aren't

profitable on the current tax regime they are a company that will be there. i think there is a strong brand story. but for cannabis it has been a difficult six months, but you wouldn't know that in vegas. it's game on and pretty exciting time >> so exciting that you are wearing a t-shirt under your blazer >> well, it's las vegas. it's purple and i am wearing that intentionally if i was in miami, this would be my don johnson look. vegas, mel options action, the full show tomorrow at 5:30. up next, final trade s until we . oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya.

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wait, we can stay and go. hpe greenlake is the platform that brings the cloud to us. ♪ should i stay or should i go now? ♪ ♪ ♪ time for the final trade tim? >> walmart they deserve more of a hybrid multiple >> chairwoman? >> if you can buy facebook in the 20s, i think it's worth a look monday for sure

>> pete? >> seeing a lot of great activity on nvidia i think it's still going higher. >> guy >> i wish i could see tim's. i don't have any return 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, i'm just trying to make sense of it here because i want to make you some money. my job is to entertain, to educate, teach, and put this whole thing in context so call me at 1-800-743-cnbc or tweet me @jim cramer