microsoft, which also reported a quarter a lot of people found impressive, but was down raises questions for me about the appreciation, the runup. how much is enough for investors? >> all right well, as we mentioned, we have the busiest day of earnings kicking off tomorrow the s&p finished the day flat. that does it for "overtime." >> "fast money" starts now right now on "fast," a megam megaquarter for meta a double digit jump in revenue and optimistic guidance. plus, the fed raises rates to its highest level in 22 years. and chair powell says decisions will now be made on a meeting by meeting basis. the dow eking out a gain, bringing its winning streak to lucky 13. and has netflix reached a break point? one of the traders feels the stock is too hot to handle he'll explain why. then later, riding the rails with union pacific, taking flight with boeing, and cracking open the results at coke i'm melissa lee, this is "fast money," we're live at the nasdaq

market site. with us for the hour, michael katopolis. meta's conference call just getting started. julia boorstin listening in and has the details. >> well, meta shares up 5% after beating expectations across the board. reporting 11% revenue growth that number is key, because analysts expected 8%, and last quarter, the revenue growth was just 3%. now, further this growth story, the company guided to better than axct expected accelerating revenue growth in the third quarter. i spoke to susan lee, who told mel that these results reflect solid execution across meta's family of apps, also better monthization of reels. the company did raise its 2023 expense guidance, due in part to a legal charge, but lee telling me in this year of efficiency, they've made very good progress

on the company's cost structure, but there are a number of factors that will drive expenses higher in 2024 including higher infrastructure costs, growth and payroll expe exp expenses, as hthey hire technica roles, and the metaverse they are expecting losses increase due to ongoing product development efforts in augmented reality and virtual reality. we'll be listening for more on this from mark zuckerberg on the call, which is kicking off now, and i'll be talking about all of this and more with meta's cfo susan li, that's coming up, her first interview since taking on the cfo role, that's tomorrow at the 11:00 a.m. eastern hour. melissa? >> julia, in all that time, you did not mention a.i. so, where does that factor in? >> well, what mark zuckerberg, i bet, will say they've been investing in a.i. for a very long time. a.i. costs actually are one of

the factors that are going to be driving their infrastructure costs higher they are investing in the computing that it takes to have a.i. they talked about how deploying a.i. is going to make ads better for their brands and a.i. is going to make ads more efficient, better able to target and send the right messages to the right people and then also make it easier to measure the impact of those ads. so, a.i. is one of these things they're going to have this chat bot that mark is going to talk about on the call, but also ultimately, just more tools for advertisers to make the platform more efficient >> julia, thank you. we sat here on this desk 24 hours ago, we got alphabet earnings, cautious optimism concerning what meta would report here we have it, guy >> yeah, and their core business continues to crush it's interesting all the things that julia just talked about, the cost, reality labs two years ago, when the stock made all-time highs, july 2021, that got the stock cascading from $380 something down to $88.

now, a bit more palatable. they have the core business back in line. the quarter is fine. the question is, are you getting concerned again that there seems to b typically, when a stock goes from 90 to 310, 250% move, you'd say, too much, too fast. i think in meta and facebook's case, it's a little bit different, because you can argue that that was a complete, you know, just -- some anomaly down there. >> yeah. >> and now here we are now so, valuation at 21 times next year's numbers is pretty compelling >> grasso? >> it's up 43% or so in the last three months 153% year to date. this is -- so, i doubt want to say that i'll take the other side, but i think you are hitting a wall this was -- because of efficiencies layoffs. pulling back from metaverse spend. no one knew what metaverse spend and now everybody is all excited about it because they think it's

a.i. you don't know if it's a.i., metaverse, all of the above. but at this point, i think you have to step back, see where the smoke clears, and see where the investment goes. >> but it wasn't all just efficiencies we are seeing an inflection when it comes to ad spend we heard that from alphabet. >> that got them going the tip of the iceberg was, let's lay off a little, we're going to back awful that $10 billion number on the metaverse spend, and people started to say, oh, okay, that's where we're going here, and then, of course, the ios privacy concerns, that sub sided a little bit, it was a host of everything >> okay. i get that the gains were jumpstarted bill this year of efficiency theme, tim. but other companies are in a year of efficiency if you look at alphabet, they were also cutting costs. they're doing their own job cuts, sort of rationalizing their real estate footprint. i don't mean to do a side-by-side comparison, but talking about companies with similar pes at this point.

so, what do you think of the meta story >> yeah, i -- i like the meta story. i'm long the meta story. so, we went from the year of efficiency at 18.5% eps growth we asked a lot of questions about how excited should we really be about threads, you know, i don't know about that, but reels, you know, very real and in terms of the a.i. implications and the addressable market growth for reels and what it means for facebook, i actually think the growthier side of the multiple, and there really isn't one in facebook -- meta, i almost facebooked them, and there was a time i said i would never meta them. meta had the best peg ratio of any major company in the world this is basically, based upon these numbers. with a peg of one times. eps growth around 18 times, a multiple around 18 times and the question is, how sustainable is it?

i think i've pointed out that i think the media and ad kind of spend companies were assaulted first and questions were asked later, as we came out of the early rounds of the fed and fears on cyclicality what we've seen, with everyone other than disney, which has got different issues, but certainly with netflix, certainly with meta, certainly with google, is these companies are actually seeing positive cyclicality in terms of their core businesses, so i think the comps were very easy here. i don't think you get carried away, but i think you stay here. no question. >> yeah. and i don't want to change the subject, i'm not changing the subject, microsoft on its earnings was down almost 4% in today's session, guy, so, there's not this sort of just fervor into big tech >> no. >> look past the blemishes of the earnings season. there is sort of a -- this is what we have you know, within that framework, we do have this gain in meta afterhours >> which makes sense that's encouraging

you want to see that there's not just this people just blindly buying everything on the back of dot com type of thing like we've seen historically i get it microsoft should have been down. i should continue to go down in terms of facebook, you talk about efficiencies, we'll talk about -- tim, do you want to chime in >> remember in the adams family when -- >> of course i do. >> every time she spoke french >> it's a thing. if you look in the u.s. and canada, $53.50 a year ago, its was $50.25 but it's a crossup swap. rest of the world was better means they're running their business more efficiently. if they are going to do the spend again, if the reality labs is going to cut into things, it might concern people. let's get to the other big story of the day, as meta shares approach afterhour session highs here the fed raising rates to its

highest level since 2001 stocks initially rallied after chair powell suggested there may not be another hike in september, but closed well off the highs. the dow did eke out 13 straight days of gains. the longest winning streak since 1987 let's get to steve liesman who has all the details out of the central bank steve? >> hey, melissa. yeah, the federal reserve, after that one meeting pause, was back ate again, raising rates in july, increasing the bonds rate by 25 bips to a new range of 5.25% to 5.5%, the highest level in 22 years. and jay powell in his press conference did not provide very much guidance at all as to whether the fed is done or if it has more work to do. >> i would say it is certainly possible that we would raise funds again at the september meeting, if the data warranted it, and i would also say it's possible we would choose to hold steady at that eeting. we're going to be making careful assessments meeting by meeting >> the fed statement did hint at more hikes to come, sayiing the

committee is determining the extent of additional policy firming that may be appropriate. so, kind of leaning that way after the statement and the presser, the futures market traded with a 22% probability of a hike in september. a sign the market believes if the fed is going to hike, it's likely to skip a meeting again on the plus side, powell spoke confidently about the chance of a soft landing for the u.s. economy. >> consistent with having a soft landing. you would have some softening in labor market conditions, and that's still likely, as we -- as we go forward with this process, but it's a good thing to date that we haven't really seen it >> all right, the next critical steps, as powell said, two inflation reports, two jobs reports before the fed has to make up its mind again about what it's going to do next and of course, guys, that's that speech next month by the chair in jackson hole. >> very, very closely listening. steve liesman in washington for us michael, every meeting is live,

you know, it's funny, because i feel like chair powell -- i could totally identify with him today. when you talk toe a small child, a 3-year-old, you say, you're not watching tv today and the child says, oh, maybe i'll watch in five minutes? no, you're not watching tv today. every meeting is live. they're going to look at every single dale that point he said that over and over and over again did we finally absorb that >> i'm not sure, melissa my 3-year-old doesn't start with five minutes, usually. maybe one minute but listen, i think steve said it very, very well, right, in terms of offering little guidance he kind of told us a lot without telling us anything. what do we know? we know they might hike. they might skip, they might pause. but we also know they're not going to cult. and i think that's a big message, because i think when you think about a pivot, and one of the pivot means -- it means cutting. it doesn't mean holding rates at 5.5% for three, six, nine months, but that is also a good thing. i think guy said this earlier

with regards to microsoft and meta and the difference between the reactions in the last two days, we can now focus on fundamentals a little bit more we know that the fed is not going to rush to put us into a recession. that might ultimately be the end goal, but that could be a year from now, two years from now, who knows? but i think actually this is a pretty healthy development for the markets. >> is the market -- is the s&p 500 at 4500 and change, is that reflective of this motion of higher for longer, that there are no cuts on the horizon here? and what sort of sectors do you go to in that environment? >> so, in a rising rate environment, we're always told that you don't invest in tech, but our tech is large cap tech who doesn't -- who -- they do not need to borrow money so, they have cash-rich balance sheets so, that's where full bull market, everyone got out of tech and we had a run right back into tech the market went from peak to trough and then the retracement

is that 76%. we've never had a retracement of 76% from peak to trough and not made a new high. so, the market looks like it's going to take out the old highs that we've had in the s&p. >> really? >> so, everyone gets a little offbalance on this, because you're right to be offbalance. we should have sold off. didn't now we retrace now what do you do so, to michael's point, i don't think the market -- the market is not going to worry about fundamentals just yet. the market's going to worry about momentum momentum is still on the bull side you're going to keep trading this market higher until it hits a wall and, yes, there's going to be down 2% days, there's going to be down 3% days, but what happens on those days, you keep buying the market and what gets bought, tech gets bought, but now value is actually starting to get bought, as well >> another interesting part of this whole thing, bank of america pointed out yesterday that the cost to protect is its lowest since they've been keeping records, 2008.

it's so cheap. volatility is sub 14, team so, that's another factor in this whole thing >> it is, and if you think about this 13 days in a row for the dow, it's, you know, it's really about industrials and companies that i think have been derisked. look at the banks, look at the kre. look at the bearish comment, we know that was 1987, we know what happened in '87, apples and oranges here i look at the fed today, it -- you can't say it was a nonevent and michael's right to point out what we know and what they didn't say, but i think the dynamic here is, you did see the dollar weaken, so, the s&p traded up 25 handles, down 35, basically it was a nonevent. the dollar traded down, and i think that also is supportive to credit if we were concerned, the fed was going to be overly aggressive and one day is not a view and a structural call make, but i think you watch the dollar

here, i think this dollar is going to continue to weaken. it's not going to happen overnight. and it already has weakened somewhat, but i think the message from markets here is that you are getting the kind of breadth that is telling you something, and it's telling you from a credit perspective, you derisk this market a bit >> for more on the fed's decisions impact, let's bring in terry duffy, cme group chairman and ceo. his company reported earnings, beating estimates. terry, great to see you. >> thank you, melissa. appreciate you having me >> we appreciate you watching us every night. terry, i want to get your reaction -- we know you do, because you email us constantly. >> i do. >> what the fed has done, in the context of this market, does this all make sense in your mind, the levels we're at the market, the valuations we're at, the huge gains in technology with the backdrop that rates will stay higher for longer and could go higher from here? >> yeah, melissa, i think it's clear as mud, and everybody that

i've known over the last several years that talked about interest rates has been absolutely wrong. everybody said the fed would raise 25 basis points, 50 basis points, 100 basis points and stop and if you managed your risk, and that's what i do, i manage risk here at cme group if you would have managed risk based on what you thought the fed was going to do or not be doing, you would be out of business like we've seen the smaller banks and we saw another one today with pacwest going to be sold. so, people need to manage risk it's hard to predict what the fed is going to do i think one of the reoccurring themes that i keep hearing, you know, from some of the pundits, not just on your show, but others, is that, you know, the verdict is still out on what is going to happen, whether inflation is going to be under control, whether it's not going to be under control. and i think those three words, verdict is still out, or four words, i should say, is critically important and people need to manage their risk, because margins are thin i don't know what it means other

than everybody that i've talked to over the last year has been dead wrong when it comes to what the fed was going to do. and whether there's going to be a soft landing or not, i think the fed's done a pretty good job of threading the needle to where we're at today, when he was bold enough to make a comment that he doesn't see recession, because i think a lot of us, you know, in the business thought we're going to see a recession over the last 12 to 18 months for sure and we still have not so, i think he's done a good job at the same time, but boy, if you are going to try to make a prediction, sometimes it's better to listen to the markets instead of talking and they'll tell you what they want to do. >> so, what are you hearing in terms of the activity in the various products that you offer snl you know, we're reading constantly about zero date expiration options, the popularity, the number of those exceed the number of s&p 500 options on any single day. it's just staggering how does your market view get reflected in your business

>> well, here, zero data options, you know, we all list the short-term options and they trade on -- they expire into cash at cme group, they trade and they expire into a futures contract and you have to take delivery so, that's the only difference so, some of the retail will go more focusing on the trade over at cbo as it relates to the delivered into cash, but you know, listen, our options portfolio in our business goes out multiple quarters into multiple years and the beauty of cme group is, you know, that's a small percent of the bigger part of our business, which is futures trading. and nobody else has that, melissa, as you know, so, we're the largest futures exchange in the world and we have a growing options business on top of it. for me, it's a win-win for cme group. we continue to manage it, others don't have what we have, as it relates to some of the product mixes we have. >> terry, in our world, when you are early, you're wrong, but you've been ahead of so many

different things, and in october, i think it was halloween of 2021, you announced that deal with google, ten-year deal, cloud infrastructure, a lot of people said, what does terry duffy see that we don't. and here in july of '23, a.i., all those things, you are sort of at the forefront. maybe speak to that integration and what that means to markets, because i think you are really positioned well for this >> well, guy, i appreciate that, and we did see a lot of things with google and the cloud, and i'm extremely pleased to say that we've moved many applications from market data applications to clearing applications into the cloud and we're progressing right along, but one of the things you touched on, i know everybody is touching on a.i. we're learning so much about a.i. and machine learning, and that is doing wondering to see how the market is going to look in the future. i don't know how much artificial intelligence is going to take place into the market. so, how much do these inputs go into people's algorithms today,

and how much are they going to go into them tomorrow? is it going to be good or is it going tobe bad how is market structure going to be affected by this? we'll be at the forefront of any change that's happening. i do think it's going to change. i hope for the better, i believe it's going to be for the better. but this is an interesting time. i know you talk about a.i. a lot, but in the markets themselves, in the market structure, we have not talked about a.i. and i think there's going to be a lot of conversation in the next couple years, as it relates to that part of the business >> so, in the -- you know, when we talk about a.i., we're mostly talking, terry, about the spending ramp associated with a.i. that needs to happen. do you see that just under way in the financial services industry is it just under way at cme group? >> well -- yes, i think it is just under way, and i don't think we've scratched the surface. as guy said, we came up with this transaction with google a little over a couple years ago on halloween, and we are just

putting our applications in there, we have not even gotten our markets into the cloud yet, melissa, we're hoping to have that done in the next year or two. and once we do that, we're going to see how the different artificial intelligence, along with the machine learning feeding these artificial intelligence, how the markets react to them. and i think it's going to be a fascinating time change is always difficult, but hopefully change brings efficiencies to the marketplace and lets more and more people participate in a way that makes sense for them to mitigate and manage their risk. so, really exciting times, as it relates to the markets with a.i. >> terry, great to see you >> thank you, melissa. appreciate it very much, you and your team. thank you. >> thank you terry duffy, cme tim? >> well, terry says listen to the markets, because, you know, everything else is maybe wrong, or it's impossible or it's clear as mud, i think is his quote and i agree with that. and also, you know, terry in the futures markets have also had a front row seat on positioning.

we're at a place now where you positioning for markets is very different than it was at the start of the year. sentiment is very different. and i think that's what we need to be listening to i think markets have come in extraordinarily long way, and i think we're at a place here where, you know, maybe the argument that people, the risk was to the upside, because this was the pain trade this is something we should be thinking about, maybe the other way. i think we're getting to a place here where markets need to p pause. we really are waiting to see the impact of the fed. >> you know, i -- tim, i think, from my perspective, maybe take a little bit of a different view you know, i would say listen to the patrol fit story listen to profits growth the companies we discussed in the first part of the segment, this was about earnings growth that's what you buy when you buy a company. you're buying earnings growth. and so, you can play momentum, of course, and that's a strategy, but i think for, you know, longer term returns, and growing wealth over time, you've

got to follow the profit story not necessarily the markets, because the markets do get things wrong, you knoll? and if you follow the markets, you know, instead of fundamentals, you know, that could be a slippery slope. coming up, a burrito bummer. major move lower in chipotle after hours. bring you the latest behind this drop. and is the red carpet rally officially over for netflix? one of our traders thinks so he'll tell us why he sees a blockbuster breakdown coming more "fast money" in two

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welcome back to "fast money. earnings alert on chipotle the company posted a slight miss on in-store sales. kate rogers is here. >> a mixed quarter for chipotle. beat on eps, slight miss on revenues in the quarter. same-store sales a slight miss at 7.4% versus the 7.5% estimated by analysts. operating margin, 27%. this actually expanded 2.3 percentage points, also a slight beat food and packaging costs down year on year that was due in part to lower ave kald doe prices, which is

good news, of course, for chipotle digital sales, 38% of food and beverage revenues in the quarter. now, on the earnings call, the ceo talked about restaurant operations and ensuring proper resources are being deployed for in-store and digital sales during peak times. he says there's room to continue to grow traffic for the business he also said chicken al pastor has the highest positive social sentiment of nil new menu introduction and said it was included in every 1 out of 5 transactions now, moving onto guidance, the company sees q-3 same store sales up low to mid single digits versus 5.9% estimated and as you said, the stock was down around 9% last i looked back over to you >> kate, thank you kate rogers. now, normally, at this time, when cmg reports a good quarter with good guidance, the stock is up and we like to call it burrito blowout. in this case, it is burrito breakdown. >> blowout works both well,

mels >> blowout is bad in real life >> could be good or bad. depends on the situation you're currently in in this case, it's not particularly good. >> not good. >> so, let's talk about it i think this was one of those things where comps came in light. when i say light, 7.4%, the street was at 7.5% it's like sell first, ask questions later. slowing growth, it doesn't deserve the multiple i totally understand why it's selling off. margins were better. it's still probably one of the best run restaurants out there fast food, whatever you want to call it. it's top of the list valuation is a concern however, this level, 1,900ish, this is where we topped, made an all-time high back in the fall, december of 2021 so, this is a logical place for it to stop now, this is just one quarter, if this is now a trend in terms of comps, then i'll be concerned. i'm not all that concerned yesterday. >> you wonder at what point do consumers start pushing back we see costs are coming down,

pressures on the consumer are mounting in terms of their credit costs >> and a lot of their revenue beat has been on price increases. so, to your point, you could be hitting a wall they like to expand stores at a rate of 8% to 10%. and their new stores are going to have a chipotle lane, which is a drive through that all works for the different environments that they're going to be conducting business in, but i think you give it a little bit of time to breathe here. a stock that's over $2,000, i think you're going to hear about a stock split. they've said they don't have nil interest in a stock split in the past, but maybe when you start hitting some pricing issues, you have to start making some of the retail audience, some of the institutional audience, get more interested in your name. that could be an opportunity, but i think to guy's point, let it breathe, maybe we can rachet up a bit in the future margins always look good on this one. >> coming up, the king of

stream, is it losing steam netflix down nearly 12%. and the red carpet reversal has one of our traders at his breaking point. and we are dialed into the meta earnings call we'll get the latest headlines with gene munster coming up. don't go anywhere. "fast money" is back in two.

welcome back to "fast money. it's been a steady decline for netflix since earnings last week password sharing crackdowns have helped boost the stock, one of the traders think the best may be behind us that one person is tim seymour tim, what did you do with it got rid of it, right >> look, i've been long netflix for, i tonighdon't know, year aa half and i feel like i've seen the

downside of where we've been estimated sub growth, and this really is a case where i think we've priced in a tremendous amount and appropriately so, from the password sharing crackdown, and even the monetization uplift that i think we're going to get over the next few quarters this is a valuation story. it's not that, you know, on the charts it hit 4le80, which usedt be support i think there's some dynamics here, as we get into -- into the fall, that have me a bit concerned for overall -- overall for the sector this is 28 times forward it's not terribly cheap. there's nothing wrong here all the reasons why i was long netflix i think are reasons to be long in the future. and so, to me, this is about a lot of things that slowly i've been either, you know, fading, taking profits on, selling upside calls on, half of this position was an upside call that got called away, and i think, at this point, i'm very happy taking some profits, but it's really about, i think i can own this cheaper and i think i will. >> yeah, i mean, this reminds me

a little bit of the conversation that steve had earlier about tech, and the fortress balance sheets and the lack of debt and how higher rates just don't really affect tech as much because of that. but i'd maybe say the flip side always holds true, which is the valuation side is actually heavily influenced by rates. so, you are counting the future cash flows so, when i look at any sort of growth company out there, i think the big thing to think about is, how are higher rates going to affect the multiple here and if rates aren't going down, then multiples most likely need to shrink, particularly if the earnings growth isn't there for it >> this is a stock where i had felt that they were a little bit over their skis with the password sharing, but i was a little bit early on that call. still had a little bit of a runup to it, so, i agree i think tim is going to have a chance to buy this thing probably all the way down to, like, a 350 number on it, which is a dramatic move from now, but having said all that, they've been the best strategy out of

all of the streami ing plays, they've been the only one who has been able to hit the ball out of the park. they had a crackdown on password sharing, that was the next obvious thing for them to do that only gets you so far, and let's see where they are with content, because it seems like everything else is a disaster in the place. so, people might have to pull their money back off the table, see where the chips lie, and they probably wind up back with netflix, but it's all about programs it's all about content >> ad spending is supposed to be higher in the back half, according to what we've heard so far. and that should be good. netflix is at a better position in terms of content versus its competitors. >> and tim is talking about a trade here and i think he did it masterfully. nobody sells to highs, regardless of what you hear on a daily basis. this is a level now, where am i going to get back in i think steve's level is right, 350 and 375, if you go back and look from sort of the fall of

'21, into that february level, that's the first place we briefly stopped with sort of 365, 370, so -- if you are looking to get back in, that's a great entry point. coming up, diving back into meta earnings with gene munster. he's got all the threads from the company's call next. plus, this week's monster slate of earnings isn't over yet. why options traders are betting on this mystery chip maker to make major waves "fast money" is back right after this

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welcome back to "fast money. stocks taking big swings after the fed decision but closing the day virtually flat the s&p barely negative, while the nasdaq dipping a tenth of a percent. the kre etf soaring 5%, its best day since early june, and the dow transports up 3%, best day since february that index at its highest level since march 2022 and a look at some other post earnings reports after the close. let's get back to meta earnings beat. the stock was up over 6% after hours. gene mnser has been listening into the call, the managing partner at deepwater asset management gene, what stands out to you so far? >> melissa, the pros outweigh

the cons quickly hit the pros from the call, is that september 27th, mark your calendars at meta connect, they're going to announce some a.i. products. these are related to the creative economy, basically helping you create more instagram content and also related to the metaverse additionally, they will have a.i. products related to agents. these are for customer support people, getting them more into the business side, something new for meta second pro was zuckerberg said that they are still in the year of efficiency. he talked about the threads team coming up to speed with relatively low investment, delivering a product that's had great engagement so, investors have seen that as a positive the stock moved up a couple percent after those two pieces they're pretty clear, they don't know how much these products are going -- the speed they're going to be -- the uptake will, and we don't know how much they're going have to invest and left the door wind open for expenses to go up potentially

dramatically next year, related to infrastructure. he just basically punted the question about what that really is going to look like. and here is the ultimately the question i'm trying to sort through, is, you have zuckerberg talking about this being the year of efficiency, but yet, their expenses for september went up by a couple percent relative to expectations and they left the door wide open for next year for expenses to ramp further, and the stock still goes higher. and i think the conclusion is this investors have moved on past the year of efficiency they want growth they're not as worried about the macro, and i you thisthink we'rg the stock reaction that the meta story is about a.i. growth >> investors are looking past a whole lot from what you're telling you, gene. just compare this to microsoft, which sort of indicated that it's going to be a gradual ramp in terms of a.i. revenues in 2024, which is disappointed to the street they wanted something a little bit more concrete, a little bit sooner, and started getting the

same messaging from meta, in terms of the uncertainty of that ramp to revenue. so, what does that tell you, the difference of the reaction, of the reception of, you know, on some levels, similar outlooks for a.i. and the impact on revenue. >> the difference is the degree that microsoft has talked about these opportunities over the last six months has been almost deafening. and in the case of meta, it's been a little bit vague. we heard a little bit at their annual stockholders meeting in may from zuckerberg on it, but it's been pretty cryptic about what that is, and so, i think just the nod from management that they believe in a.i., i think you -- i think that's the difference, i think that's why investors are seeing this as a positive >> all right, gene, jump back on the call appreciate your take on this so far. gene munster, deepwater asset management tim, your take on what you heard from gene? sounds like there are a lot of big question marks, yet the stock is higher. >> yeah, but again, it's from the year of efficiency to the

year of growth and that's why the stock has moved, really since -- above 300, really from 280, whatever you want to call it, but at a multiple that makes more sense than some of the peer group. and if you think about some of the dynamics, it's less about the efficiency, it's that zucker burg has relatively gracefully come in off the ledge on the metaverse. they have a cash cow business in terms of their core advertising business that has a lot of cyclicality in it that i think was overly punished. and the comps are interesting here i don't think they're going to grow at 20% a year until we really see some kind of an a.i. inflection that i'm not sure is even priced into the stock, but i think meta is a stock that, first of all, there's a lot of investors, there is, i think, you know, 80% of the street's got a buy on the stock they're upward revisions coming, and i think this is a stock that on risk/reward is a lot more interesting, and it's not necessarily playing as much on

it as microsoft or maybe an nvidia in a.i. facebook's core business, i said it again, it's facebook, their business is definitely exposed to a.i., and they have benefits now and the addressable market growth for reels, i think, is going to happen. >> if you look at facebook into the fall of 2021, it was lower left, upper right. there was no stopping the stock until they stopped themselves. and they seemingly got away from their core business and talked about the spend and the metaverse. the market freaked out, sold first, ask questions later, nobody understood it facebook couldn't explain it now, their core business is back, never really left. they're back on stable footing they're talking about the same things they talked about a couple years ago, but the market now understands what they're attempting to do i think that's the difference. and i think that's why the stock can continue to go higher. >> just to give technicals on this, and guy would probably agree with this, it had a pretty good leadup to earnings. you had the stock sell off from

$318 down to $288. so, if you are waiting to get back in, you might think, oh, did i just miss something here wait until it pops above 300, wait until it holds above 300, it's actually $305 you want to wait for, but don't rush in now. wait a couple of days. >> all right, meta shares up 7% afterhours. coming up, rounding up the reports from being the bell. boeing, coke, and union pacific. and options traders are buzzing ahead of intel's report. we'll tell you why don't go anywhere. back in two.

welcome back to "fast money. it was another busy morning of hours before the bell. let's start off with boeing. surging nearly 9% after posting a narrower than expected loss. posted its highest close of november since 2021. guy? >> tim talks about this, talking about afree cash flow story, that's true. we talked about this a month and a half ago, we talked about the bad headlines, the stock didn't go anywhere. and for the first time in awhile, the stock didn't sell off on headline news that was a good sign and, it's continued to be, so, still feels

like, you know, you can talk about valuation, i'm sure, but it still feels like it wants to go higher from here. >> the february 2020 collapse during the pandemic, if you go peak to trough on that one, we're almost -- we're a little bit above the 50% retracement in boeing on a stock price. so, this should be, in theory, where the stock takes a break. but they have such an -- you're lead-in, talked about government spend, they make such an outsized percentage of their revenue from the government spend and i think that's not going to be pulled back. so, i'd be willing to see if this has a little bit more legs to rachet higher. all right, up next, coca-cola. shares popping more than a percent after beating on the top and bottom lines raising full-year eps and revenue outlook. james quincy saying some customers are trading down to cheaper private label drinks, putting pressure on the beverage giant's profit margin. this is really the question. at what point do consumers start pushing back >> i think we're starting to see

it, melissa. you know, listen, you can only take so much if you look at the bottom third of income earners in the united states, they're not in a great position right now, given earnings growth that really hasn't kept up with inflation, a drawdown of savings, and so, you know, i don't think companies are going to be able to get away with it much more. and that could hurt margins, but i think we're pretty much hitting that breaking point as we speak >> tim >> well, coke, again, they beat and they raised a percentage point. it's been an extraordinary run for a company that no one said had any growth and it's been top line driven, it's been pricing driven i think of coke versus pepsi, i take coke over pepsi, just based upon the core business pepsi's been crushing it on their snack business multiple coke makes more sense to me. all right, finally, union pacific having its best day since march 2020 the railroad posting a mixed quarter, but the announcement of ceo tran sition send ing the stc

higher the stock is at its highest since last august, guy >> it is but this is a stock, if you overlaw the csx stock, you'll see the underperformance but it still has some ways to go it's starting to catch up. veteran line with valuations that make sense. but in the game of would you rather -- >> oh. you just self what you rathered -- >> i got yelled at last time on the show i had no intention of doing anywhere close i'm glad that you did it ump -- >> he just did it. >> he's right. >> oh, yeah. >> what -- oh. >> do what you do, grasso. >> okay. >> what do you think >> i'm frozen. on a chart, this is where the -- i don't like buying headlines, when you have change in management because they're always leading it's always a retracement back off it

this would be a no touch on the chart for me, this is right where it should stop anyway so, i would rate on this one. coming up, the intel on intel. the chip maker reporting tomorrow we are breaking down the big bets in the options pits right after thisgy lets you need more than technology. you need cdw who can help transform your organization with built for performance lenovo thinkpads. pre-configured for management flexibility and equipped with the intel evo platform. responsive collaboration tools give your team effortless connectivity to stay focused wherever they work. fetch. lenovo makes seamless productivity possible. cdw makes it powerful.

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welcome back to "fast money. this week's huge slate of earnings isn't over yet. cnbc parent company comcast, intel and mcdonald's highlight tomorrow the options market has the action on intel. kevin? >> hi, melissa today, we saw 1.73 times the amount of calls versus puts in intel. and heading into earnings, you're seeing an implied move of about 6.5%, which is actually less than the 7.5% we've seen over the last eight quarters the interesting part was this morning, we saw a big block of 20,000 contracts all the way out in october trade at the $27 strike, so, it's deep in the money. it was priced around $7.65, so, you're seeing this could be a potential stock replacement strategy over the next several months

>> all right, kevin, thank you guy? >> they're data center's been a disaster it's had a huge run. this was a $25 stock, what, beginning of the year. $35 now. it's just basically dragged up by the rest of the group but i think once again, my opinion, if i'm wrong, trust me, i'll say it, but they will move out outclassed they are in the semis space. >> up next, time trades. good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that.

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welcome back the new "fast money" podcast is now live taking a look inside the career of ryan cohen. you can listen by following the "fast money" podcast wherever you get your podcasts. time for the final trade around the horn. tim? >> yeah, citi bank, like carlos rodon, has really struggled, but i think unlike rodon, citi bank is about to break out, get above the svb levels mets for the sweep >> steve >> rivian. i'm not in it currently, but spiked higher middle of the day and i think there's probably more to follow >> michael

>> well, i'm not going to be too specific here, but i'm going to say, what, 70% of this year's rally is coming from maybe seven or eight names i think you have to play broadening out this rally. >> energy. psx. >> all right, thank you, michael, for joining us. anyofor watching "fast money. "mad money my mission is simple. to make you money. i'm here to level the playing field for all investors. i promise to help you find it. mad money starts now. >> welcome to mad money. welcome to kramer america. trying to make a little money. my job is not just to entertain but to teach and ut it in the context. call me or tweet me. i used to dread thes