can the fed pull it off. >> every cycle they try for it, get there many times. >> that's going to do it for tonight on "closing bell." have a good evening. "fast money" begins right now. live from the nasdaq marketsite in time square, this is "fast money", i'm melissa lee, tonight's trader lineup dan nathan, tim seymour, karen finerman and guy adami joining in a few, ahead on fast, beijing firing back, chinese companies could face devastating actions if they defy russian sanctions today china said it will respond firmly and forcefully if the u.s. does that how worried do investors need to be about this red-hot rhetoric plus, grim new numbers on where we are not shoppingful for picture doesn't look pretty for best buy, home depot, kohl's and bed bath and beyond. and on the options market 20 to 1 split could make amazon a blockbuster.

starting with europe's big mafr, ceo of volkswagen saying the impact of the ukraine war could be worse on the european economy than the pandemic. saying the global spooich di -- quote -- [ reading ] that in a surprise decision by the ecb to start winding down stimulus faster than expected dealing a big blow german dax falling 3%. not much better at home all three ended in the red, did call back many losses 10-year yield back above 2% first time this month. so should investors in the u.s. be worried about contagion in europe guy, a lot of companies are multi-national companies and do a lot of business in europe. >> the answer is emphatic yes, mel. germany is 5th largest economy on the planet, think i, if you aggregate the eurozone, put them

all together i think that's what aggregate means. >> it does. >> you would have the largest economy on the planet by multiple of the u.s. with 50 million people bigger population than we have so you absolutely have to keep this in mind, it will have an effect on the united states without question there will be stock that's can do well in that environment here at home. to think our broader market is impervious, great word, to go on what is going on in europe. >> treasury secretary janet yellen saying they believes it will be a soft landing is too l. early. >> said by former fed chair. guy adami. here's the chair, nice that she was being nice about things. >> secretary yellen. >> oh, sorry my point simply is we are way too early in this. we don't know how this is going to play out. to your point about u.s. multi nationals. here's the thing, the u.s. has come out of the pandemic better than most parts of the world

a lot of our multi-nationals are relying on other parts of the world to come on line. i don't know what the percentage of s&p 500 earnings or sales come from the u.s. but if you think we'll have 8% eps growth for s&p 500 this year given what's going on as we will definitely be in q2 before any sort of major deescalation that's just not happening. so at 19 times the s&p 500 with expected 8% growth, take that down maybe to flat if you're being really conservative. the market is still too high, still too expensive given the uncer uncertainty. >> timothy was racing his hand as a good student would do you have notion what the percentage of revenues are. >> i do. i have some facts. it's rare that i have some facts but today, 61% of the s&p revenues are domestic. 39% international. i think some of that latest number is skewed a bit by covid, supply chain, and certainly some

secular trends for sure on shore, but no question, yes, we suffer if europe suffers. if you look at the dollar the dixie is up 10.5%, the dollar index, 60% euro, again, weakness in the euro elevates the dxy that much more that is major head winds for the s&p. if you think of some of the dynamics we've seen the last time we really had to focus on the continent it was back ten years ago when we had a european banking crisis i don't think we're going there, not at least in the short-term the interesting things about the headlines from volkswagen today was bmw reported numbers out today with a record 2.5 million cars sold last year, even with supply shortages they were talking about demand being in line. one automaker says one thing the luxury automaker who has pricing power said something different. i think we all recognize the supply chain dynamics and commodity importance of

russia-ukraine, extended means higher inflation, we've been talking certainly for the last two weeks about the consumption dynamics where you're basically burning away the ability to consume with higher prices gas prices going into driving season in the u.s. i think are going to do that and i think people expect that's not the case i do think you have a case in terms of the market. positive today semis almost 2% off the lows you had oil prices down. the vix down small. although above 30 for i think the eighth straight day, which i think is good for equities because i think things are just over sold. >> karen, in terms vw versus bmw, good point in that every positive there's probably a negative out there, have we even discounted sales in europe often the notion things be slower. have question recognized that? if we look at cpi in italy it's

north of 40% people are having difficulty around the world we're complain being inflation here, it's even worse in some pockets of europe >> right i don't think we discounted that nearly enough at all maybe just a hint of it. if they go into recession which seems quite likely, unavoidable, actually, we haven't even begun to feel that we're all connected now. i respect janet yellen very much but i don't recall ever hearing a secretary of the treasury say that we're going to go into recession when we're not already in one, they just would never say that because it's sort of a self-fulfilling prophecy, the fact she said we're not i don't take comfort in that, i do think we're better positioned than other countriese clearly, versus germany our energy situation is far superior to theirs, that goes without saying, i do think we haven't yet felt the ramifications all that having been said

though, parts of the market i think are still high and parts are over done. we talk about the market as one monolith but it's not. so to me i just want to find good, cheap companies with balance sheets, balance sheets, balance sheets we're starting to see cracks a little bit. if you look at lqd, look at hyg. we're starting to see spreads widen out a little bit that's just the tip of the iceberg. we haven't really seen a credit crisis or even a credit scare. so that's kind of my one of my many fears >> i think karen is right to point it out tim talks about it all the time. credit spreads have been tame until recently we have been trying to point out the h ygover last few weeks if not longer saying this is something to keep an eye on. listen, it doesn't really trade. i get it but it made a 52-week low today. if you go over past ten years and look at this, it's been the precursor, in tandem or behind market moves and 81.5 h y

g, 88 few weeks ago, it's rolling over, it's unavoidable and what's it mean for the broader market i would submit the broad erp market will follow and will do it shortly >> you know what does trade bank stocks, citi group with new 52 of -week low, trying to quantify their exposure to europe we've all been around markets i started in the late 90s when we had asian crisis and russian crisis and lack of certainty will cause things to over shoot. i don't think we are there yet i harp on it because i get it let's keep s&p in tact down 10% on the year but when seeing the volatility we're seeing in commodities, in fx, in yields, we were talking about 10-year u.s. treasury yield traded 1.65% and today traded 2.01, again,

weird stuff going on, and it's not reflected in the stock market only thing i'm capable of talking about on this set, that makes me nervous because investors are lulled by the fact they had 26% gains in the s&p last year and are not looking at all of the these other components why the s&p is likely going lower from here. >> tim, overall are you defensive? do you feel it's time to be defensive? because dan was mentioning russian exposure, banks, how about european exposure banks, i mean, all of these big, financial institutions do business in europe forget about russia exposure but if europe is in trouble parts of their portfolios are in trouble too theoretically >> i think europe's had a couple different dynamics over the last week that are interesting. one is that you have actually seen group funding sore for energy bonds and more coordination of european central

banks more solidarity. there's good things happening there. we have seen european banking crisis we have seen a case where i think there's massive deficit dynamics across the european continent. if you look at the short end of the curve that's the most dramatic thing folks, we're at highs back to september 2019 is last time you saw two-year rates above 170. so we're talking about the potential for inverted yield curve. the dynamic for european financials is even worse as you see negative interest rates and they are more negative in europe than anywhere else the rally so great in deutsche and ubs, in sock joe, in bnp only six weeks ago has reversed massively and will under perform u.s. banked. >> wall street biggest payer saying easy bet s&p falls another 6% drop before year end.

let's bring in chief investment officer for thoughts on what is to come, mike, always great to get your thoughts. you made that call prior to there being any sort of war on continental europe, so, i mean, you haven't put out a note yet do you think the risk is to the down side of even your target. >> thanks for having me, melissa. yeah, look, i think, as you said, we were already -- we came into this year not that optimistic because obviously the fed was going to have to tighten due to the inflation airy spike and of course, growth is slowing, as you described. russia's invasion of ukraine only makes those two conditions worse because you now have more inflation so can't really back off. i would say one thing about geopolitical events like this, normally you want to rush in and maybe buy these events but this time it's different because central banks are hamstrung would normally flood the system with liquidity and can't do that this time and will have negative

impact on growth so it's much easier to say trade sub $4,000 was more difficult in january to make that call but now -- look, you all are saying it on the show, you're market veterans, you see what's going on under the surface, whether high yield, the breadth of the market, what the leadership has been, very defensive, so the market is screaming at us and we're not complete yet dan said it right, the market is priced incorrectly at 19 times we've had 18 multiple would be more bearish than most and i suggest we over shoot that some time this spring. >> what is the biggest risk to the markets right now? what do you think will be the number one driver to the down side to your target? >> clearly, i mean, this situation in russia-ukraine is front and center. nobody knows which way it will go, we are all hoping it calms down, i am hoping, praying for that, hopefully that fades and then i think the market will

focus on what it always focuses on, earnings in the u.s. the u.s. market is somewhat distanced from this situation geographyo graphically and football geographically and financially i think earnings will slow anyway that's been the call. whether it slows down or not we have to face negative against sectors maybe consumer and financial system now given what's going on in europe and of course technology which there will just be pay back in demand which has been playing out before this invasion. >> notice you put bore something beautiful. nothing more boring than rail roads. i happen to love them as a kid, that's neither here nor there. union pacific last look making all-time high. reasonable valuation in companies more efficient energy-wise in trucking names i'm not looking to play stock market but does it make sense, rail roads in this environment

>> absolutely. look we call this year the year of the stock pick erp, you got to find businesses that are somewhat protected from the issues we're face whog have pricing power or don't have issues other companies are facing and that may be one company. on that, i don't have any rail road names off the top of my head i love but structurally that makes sense to me look, this environment is changing obviously defense stocks maybe security stocks. i think oil services which will enter a structural bullish period because we under invested there's things happening from this unfortunate incident that will help some companies you got to bob and weave a little bit and find the new opportunities and not rest back it's going to be the same old type of market because it's not. >> mike great to get your thoughts thank you so much, mike williams morgan stanley. karen, are there stocks you're concerned about in terms ofs

european risk -- meta has a sizable chunk of revenues coming out of europe. >> it does although meta, talk about great balance sheets and erasmo ramirezs and balance sheets and valuations and i think the valuation on meta even if you discount it is so far below the market yet i don't think it should be so that's not one i'm overly worried about versus something like citi bank which, you know, i have some leaps there, that's sort of an embedded put in that you can't go below the strike. that's one i am worried about because of that contagion and because of credit contagion but also just the structure of a bank, right, is inherently levered that's the way they make money, so that would probably be my number one worry. >> yeah. tim? >> materials tend to have more exposure to europe than other sectors, it's certainly one of the leaders. i just think you see a bit of a pull back in handful of material

stocks in past couple days because of the parabolic move in the charts and underlying commodity that's their primary and i think it's weakness to buy. these are companies that figured out how to generate free cash flow and companies that i don't think you will see major pull back in copper prices, i think you can see a quicker response on ag, especially when you free up a little bit more of the global transportation dynamic here, i do think you have a case materials still look interesting. i think defense stocks look very interesting. you have a case where the pull back in the banks is something i'm not ready to buy even though i still think banks being priced for major credit cries are being over down. and they're pricing in main stream today is one of those days, it could v. been a day banks rallied on higher rate dynamic and they're telling you a different story. >> coming up stocks in the red as russian-ukraine rages on and

rhetoric with china heats up, what can be done to take down the temperature between the biden and beijing. plus all over the stocks on the move after reporting results. details straight ahead "fast money" back in two ♪ ♪ at cdw, we get today your hybrid organization depends on different networks, different devices and different ways of working. so how do you manage to keep everything together? cdw can orchestrate a cisco sase solution or secure access service edge. converging security and frictionless connectivity in one cloud based approach. so your dispersed team feels closer to home. for a unified hybrid workforce, trust cisco and it orchestration by cdw. people who get it.

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♪ welcome back to "fast money" we've gone an earnings alert on docusign after beating top and bottom line very bad you already got a beat in your pocket and not raiding your guidance. >> that's it the guide was horrible you have to ask yourself, we are now round trip the move from march, april, 2020, we know what happened then, all-time highs of docusign, right back down. you actually on price to sale it's not completely ridiculous at these levels, quite frankly you're going to flush everybody out, probably going to share 45, 50 million shares tomorrow, everybody's going to capitulate. this is fast fire coming, i could see it coming. >> roll the tape.

>> roll the tap. take think you can buy docusign tomorrow for trade it was a horrible guide but not a horrible quarter. >> i think mike wilson said it demand payback right. pandemic winners and people wilting to pay 20 times sales and now they're down 75% we have the playbook for this. the dot com and post-dot com thing. you're nimble have at it buy a stock like that down 20% because sooner or later there's no one left to sell it. it's that simple i've been saying for weeks and weeks, just when you think a stock down 60% can't go down much lower can continue to go down 20% every month we're seeing that. look at zoom it's going to do the same thing, trading seven times sales. that's probably too high for some of these >> he had at you. >> he usually does have at

people this one was specifically to me. that's the difference. >> specific. let's move on to oracle dropping after reporting earnings but turning around now that the call is underway, let's get to julia boorstin with the numbers. >> yeah, quite a turn around here, the stock was down as much as 6% after-hours on fiscal third quarter revenue of $10.5 billion. that was right in line with wall street expectations but the company reported adjusted earnings of $1.13 per share, a five cent miss from analyst expectations the company also noted that earnings per share were cut by five cents due to the deline in value of two of oracle's equity investments but snapped back one percent on guidance from the ceo who plans to push the company's top line growth to double digit next year and expect full year growth for cloud services and license support to be higher than last year noting that total

revenue for the fiscal fourth quarter is expected to grow between six and eight percent in constant currency, noting its cloud computing software revenue rose 24% from the year earlier and customers games 33% increase in customers for its fusion software one quick note at the top of the call, ceo announced oracle suspended all its business in russia a week ago. melissa. >> julia boorstin, thank you that's the d'angelo of that's the danger of trading oracle before conference call is underway they provided the guidance to turn the stock around. >> as noted they came in line. they were 6% last quarter are now 7, going to 8 what the street expects, split that, call it 7 and the recurring revenue of the business, cloud software and other dynamics are what have people more excited than they

have been. let's not forget this stock down about 30% over last three and half months into this print. valuation relative to itself as we're seeing with just about everybody not expensive relative to the last couple years to the extent people want to see more of the recurring revenue is the multiple helping here. that go guide was very, very solid and stock has been beaten up. >> the cloud numbers scared people into initial sell off but oracle trading 13 times it's number cheap to the broader market, not that that matters but was $105 stock couple months ago to tim's point and everybody loved what she was doing, nothing changed but the dynamic of the markets, i like the stock. >> and pe -- >> wells fargo down graded cisco and like their faster growing compet

competitors in cybersecurity and that should be a good business, again, it trades 15 time expected mid to high single digit growth there are cheap stocks cow probably hang out as long as you don't sea huge hits if enterprise spend. if you think europe is going to go into recession then all those names are vulnerable throw in ibm and things like that you will often point to it once in a while and think there's a turn around and it's cheap stock but these guys are all very exposed to some of those and we haven't had a period we're worry since q1. another one for you, ulta beauty after the bell. >> yeah, the call just wrapped up, ultimate beat expectations for both earnings and revenue despite the omicron surge and all of us wearing masks. -- comparable sales forecast looking ahead, for the quarter, comparable sales up 21% above

consensus as well, drivenby transactions and average ticket. comparable store sales grew double digits. e-commerce sales increased slightly and margins in stronger than expected and above last year skin care was up double digital incompetents both prestig make up sells decelerated from the third quarter. on the call they remain confident will return to growth, services grew 30% over last year and ultimate noticed there's not been extraordinary price increases yet in regards to inflation. melissa. >> does that mean they're able to raise price that that's probably coming? >> possibly, they talk about how really they have to follow the msrp, especially when it cops to comes to branded products and said we have to give you the price increases we're told to give we'll see what happens.

>> courtney, thank you that was fourth quarter masks are off, we have to spend money on make up or guy does. >> ha ha that's right you would think -- so omicron was still in that quarter, so we won't really get the full effects of it even partially in quarter. but i think that guidance was probably a little bit light. i think he's a little bit conservative i like the margin growth i thought they did a great job it should be up. they did announce a reasonable size buy back, i believe $2 billion, in their guidance laid out they would buy $900 million of stock back. they did in the quarter buy stock and i think get about 399 average or so. so, i like it. i think there's a lot to like. the one, i think, bright spot for the u.s. economy is that we haven't fully seen the reopen post-omicron and something like ulta will really be a beneficiary of that.

>> all right we're just getting started on "fast money" here's what's up next. >> announcer: caught in the cross hair, stocks under pressure as geopolitical tensions rage on so can investors trust the china trade? we're jumping into that one, next plus cracks in the consumer, retail foot traffic dropping as gas prices surge so is the consumer headed for a break down you're watching "fast money", live from the nasdaq marketsite in time square, we're back right after this you can't buy love.

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(agent) eric, you don't have any dramatic work to show them. (eric) yeah, but i got the new galaxy s22 ultra on verizon 5g ultra wideband. it's got amazing video on a crazy fast network. i can film whatever i want! come you spirit! how is that? (friend) good. (eric) are you filming or gaming? (friend) can't talk, online gaming out here is great. (eric) what? i've only got three more loops to get this. wherefore art thou? ok. i just sent you my reel. (agent) that was fast! (vo) now at verizon, buy the galaxy s22 ultra and get the s22 plus on us. 5g ultra wideband now in many more cities. welcome back to "fast money", beijing firing back at the u.s. today saying it will respond firmly and forcefully to any u.s. sanctions tied to

russia-ukraine, hitting stocks, down 10% worse day since september. more from senior fella the jackson institute global affairs and long-time expert on asia stephen, great to have you with us, great to get your thoughts here >> thanks melissa. >> how's this play out it seems like the u.s. and china are somewhat in a game of chick, i put sanction on you, you put sanctions on me. who has more to lose >> well, we've been seeing this tit for tat now for four years with tariffs and sanctions on tech companies but this is a different story. china is really, i think, now, melissa, a big risk of being it ain'ted by its new tainted with its new found partnership with russia. you saw the hand shake at the

beijing olympics they signed a partnership agreement with unlimited potential. so china is at risk of being tainted by this and can't afford to take the risk it will be isolated like russia and you know china needs the world probably more than russia. >> why would we hear report that's chinese oil companies were looking to buy stakes in russian oil companies? i mean, we're not getting many signs, are we, that china is willing to back away with russia could they possibly step in and broker some sort of peace agreement? are they in a position to do that >> i think this is their moment to do exactly that they have this long-standing sort of sacrosanct value that goes back to the 1950s with joe and lie the so-called five

principles of khouw-existenc respect for national sovereignty and territorial borders and non-intervention of other nation's domestic affairs. they can't afford to condone what's going on in ukraine so this is their moment to step up i wrote a piece overnight. that suggest what they should do including calling together a meeting of leading nations around the world, making a large donition to youunic e f to helpe children in distress, and stepping up, they're the world's best on infrastructure and i urge them to make a major contribution to the rebuilding of a war-torn ukrainian

infrastructure there's a lot they can do if they really want to deliver as a global leader that they told us they deserve to be thought of. >> hey, it's tim seymour, thank you for your expertise here, i will weigh in and say i've watched china be addicted to russia's industrial and energy inputs for years -- and finance greatest enemy in terms of this influence, in terms of the market cap of their stocks can you comment on that >> i agree with that, tim. the most dynamic sector in the chinese economy over the last five years has been these large, create ifr, innovative, internet platform companies and no under t theguise of common prosperity,

whatever you want to the call it, they are putting enormous pressure on the entire -- entrepreneurial activity and incentives to build new companies that have,yes, created wealth in china for entrepreneurs and by going after it they're biting the hand that feeds? >> last question china seems to be in a cross road right now can you see it taking a path it sides more with russia, willing to risk sanctions of the u.s. knowing u.s. companies will be hurt just as much as its own economy, in that it sees the way russia has become isolated because of the sanctions that the u.s. and its allies are willing to put on it and it doesn't want to be in that position in the future so moves to further isolate itself. >> i don't think china can afford isolation, melissa. that's the big difference between china and russia if china wants to play it cute and stay with its newfound

unlimited partner as it calls russia, again, i stress, it will be guilt by association and the world will begin to reject china. it's already had a trade war and tech war with the u.s. but it will find itself isolated from the world and that would really be a major problem for china and for its leader xi jinping who is looking to get a third term later this year. >> stephen, thanks for your thoughts, we appreciate your time former chairman of morgan stanley asia which is why we called him karen, how do you assess this china risk when looking at some of the companies you have in your portfolio, particularly ones with presence in china, et cetera >> right well, something like a starbucks, which i don't own any more partially because of, well, because it was expensive and also china growth which we

talked about last night and i think you brought up two days ago, is this really a threat i think it is. i don't think we're in a time we can say no nothing bad could happen so something like starbucks or mcdonald's which has come down a lot. it's not expensive here but i think it has excess china exposure versus some other names. as to something like alibaba, no shot of getting involved it's, you know, the history is too painful. maybe after the break we can talk about when my childhood dog died that would be equally as painful as my alibaba experience i can't get back in. i'm out. >> mr. roesch, he's forgotten more about this then i will ever know but i will say this, that hand shake came prior to the olympics at the eve of the olympics, right. we were talking about russia-ukraine situation in the fall i'm no genius, as you know, so it had to dawn on both parties that something was going to happen there

the fact theta put out a 5400 word document on the back end of it leads me to believe chinese are in this and i don't think they're backing away any time soon. >> for the first time in a long time parts of the world feel uninvestable we have a lot of strategists saying look overseas it's cheaper. china is uninvestable for a host of reasons. if you buy into esg-sort of things, you know i don't know it's a really tough spot i don't know about you guys i don't want to invest in china right now. i don't want to invest in avr's listed in the stater for a list of risk. >> you may not want to invest in europe, but tim, does it make the u.s. look better is a floor for this stock market that there is no other alternative kind of notion >> well, especially with our dollar getting stronger and despite the s&p exposure again, if you look at eem, emerging markets, you get 45% china. you need to invest around it

same thing in europe i think there's great stories but just buying the eu stock's 50 is dangerous here. >> yeah. coming up shopping, dropping, sag on retail foot it traffic, names hit hardest as consumers cut back plus burrito bump chipotle is the stock worth biting into it don't go anywhere "fast money" back in two. >> announcer: get your trades to go with the "fast money" podcast. catch us any time anywhere follow today on your favorite podcasting app we're back right after this. save over $1,000 when you switch to our ultimate business plan for the lowest price ever. plus choose from the latest 5g smartphones. get more 5g bars in more places- switch to t-mobile for business today. you can't buy love. happiness. or confidence. but you can invest in them. at t. rowe price

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welcome back to "fast money. the economy may be reopening but malls are a lot less crowded than a year ago, foot travers dropped 5.5% last week from a year earlier, the biggest drop in a year. look at the stores most effected bed bath beyond. victoria secret. home depots. lowe's furnishings too least-trafficked

stores how much should we read into the data >> it's incremental but never bet against the u.s. consumer. weaver never had inflation like it is right now all of the forces coming to at once a lot of the retails doing well but i will keep tracking it. check out chipotle share dropzing more than 3%. announcing a new menu item, the chain's first new chicken offering in 29 years. that's crazy 29 years >> what are you going to do with a chicken. i mean mcdonald's is ruining the day rid them self of cmg, number two, the stock is too cheap, dan saying what are you nuts it's trading 35 times last year's numbers yeah, but you have 30% ep ss 12k3wr0e7b8g eps growth and

uniquely positioned to take advantage of what's going on average price target 1800 is where the stock should be trading. i was on with you and sarah an "closing bell" february 8th when we talked about the burrito blow out, yes, i'll say it, said it then i will say it ted, huge cmgfan. >> we also heard there's burrito seasons. >> false. >> straight from the horse's mouth, ceo of chipotle tim, quickly, i love how chipotle can come out and say, you know, this new product which has existed in other restaurants for decades and bam the stock goes higher. >> bam >> hold on a sencond what is burrito season. >> what would you think it would be something cold you need something warm, comfort burrito, it's spring. >> i would hunke with a

burrito. i guess we passed burrito season, guy, probably good news for yfamily you have good news in the dynamics especially with price inputs ant multiples people are unwilling to pay. for a guy unwilling to pay 50 times on cmgi certainly don't want to buy it now even if it is down 30 times sky forward, i think you have a case here we have pulled forward and i think the multiple on the stock never made sense and some point you pay for it. up next rivian shares dropping after its report. we go inside the numbers, plus amazon surging after the stock split announcement could move it into a option powerhouse, moments away, "fast money" will be right back. esg is responsible investing. who's responsible for building esg into your investments?

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-- supply chain constraints specifically with semiconductors and wiring electronics they're talking about on the call and loss of $4.75 billion. here's the ceo during the conference call talking about the supply chain

>> challenges vary including production vicious, covid-related delays and semiconductors allocations we're working with suppliers to identify component challenges early to support the supply ramp up and develop other solutions if needed. >> the capex this year come in at $2.6 billion and the company ended the year with $18.4 billion. two final notes, first one, they will be naming a coo next week and the second one, remember the whole pricing snaf u if you will, last week, they said we're going to raise the prize 17 to 20%. they did see cancellations. not getting a number but of the people who cancelled after that was announced, half of them then came back and reinstated and they now say the level of reservations, pace of reservations is the same as what it had been in the past so they don't believe it will have a long-term impact. >> they've got bigger fish to

fry, phil, thank you, phil lebeau dan nathan what's up with this stock? it came out of the gate as the hottest thing around and disappointed at many, many turns at this point >> obviously a pretty immature, inexperienced management team with tons of competition coming on line and supply chains are biggest issues we know tesla made and shipped 1 million cars last year and are getting better at it and we know the germans are trying to secure all of the same parts, detroit is trying to do that, the chinese. so they have a tough road. and stock down more than 80% with highs close to ipo is how bull markets end, people. >> at the same time, i will venture to say this, they name a ceo next week, someone with experience, someone from amazon, and the stock could snap higher. >> just on a short bounce, stock could go up 30% second hand still be in a

down trend made no sense at 180 probstly won't at 150, but will start to make sense in the mid 120s i think it's going there you could see a mind-ripping mind-numbering rally on the back of that next week. >> coming up, we talk options turning amazon into a options blockbuster,a oexplainer after this happiness. or confidence. but you can invest in them. at t. rowe price our strategic investing approach can help you build the future you imagine. ♪ ♪ make fitness routine with pure protein high protein. low sugar. taste great. high protein, low sugar.. so good high protein, low sugar, mmm birthday cake and for a cheesy crunch, try pure protein snacks.

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so you can be ready for what's next. get started with internet and voice for $64.99 a month. and ask how to add securityedge™. or, ask how to get up to an $800 prepaid card. back to "fast money" check out amazon, up 6% following stock split. let's get to professor khouw, how big of a deal is this? >> yeah, so first of all, let's look at what amazon did today, traded a little over two times its average daily options volume what that turns into is slightly over 400,000 contracts of course if the stock splits than the options will need to split with it. just to think of it this way, essentially if you're going to have a 20 for 1 stock split then you will need to represent at least 20 times as many options contracts as well. what you would do is you would

take the strike price and just like the share price that is going to be divided by the split. so just by way of example let's assume you owned a june 3000 call about $200 option now you will own 20 of the june 150 calls. at approximately $10 option. the most active option contract today were options on spy the et f, that traded about 7 million contracts but multiply 400,000 by 20 what do you get? over 8 million contracts so this would actually have been the busiest option traded in the u.s. markets today i will leave you with one final point. when apple did their split it became the most active but after a while drifted down a little bit because some people trading options were looking for a cheaper way to trade the stocks >> thank you mike for more "options action" tune many torr amoowt 5:30 p.m. eastern. up next "final trade"s

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make fitness routine with pure protein high protein. low sugar. taste great. high protein, low sugar.. so good high protein, low sugar, mmm birthday cake and for a cheesy crunch, try pure protein snacks. time for the "final trade", tim? >> precious medal a m r k >> karen >> if we get a bad take and ulta

opens down i'd buy it. >> dan >> i take profits on xl. >> guy >> oracle sister. >> don't go anywhere we have a cnbc special tonight on the tech trade, stay tuned. this year's bi