software cycle. cybersecurity may be carving out an exception here. >> certainly interesting. he did add a little more color on the comments about what we've seen with the macro. >> yeah. lots more to come this week, a lot more a.i. announcements, as we have teased here on "overtime." >> that's right. that does it for us here on "overtime," with all the stocks lower today. >> "fast money" starts now. >> stock averages. live from the nasdaq market site in the heart of new york city's times square, this is "fast money." here's what's on tap tonight. a bruising day for apple. china banning iphones from government offices. the eu hitting them with new regulations. and fears rising about revenues. plus, disney wars. the media giant battling with charter, and now it's going to have to pay up to get full control of hulu. and later, airlines flying into fall filled with turbulence. fighter jet delays ground shares of lockheed martin and am c's less than meme-rable day.

i'm melissa lee coming to you live from our brand new set here in studio s worst outperformer. the stock dropping 4%. part of the blame due to a troubling development in china. beijing banning iphones at work, and the headline the eu is slapping apple with new regulations that will most certainly impact their business. all this as apple is battling revenue declines ahead of next week's big iphone event. we have talked about this so many times, about the notion that china can just flip a switch and hurt apple and here we have a taste of it, guy. >> the existential risk. we've said it, and it hasn't come to fruition. stock's gone higher. we're within a whisper of an all-time high. this is the huge risk for apple, and now it's government workers, but again, china can do whatever they want here, and i thought for a long time, if they want to escalate the etric, if they want to continue to turn it up, apple

willing the biggest company with the biggest bulls eye on their back. and i'll say this, i'm shocked the stock doesn't down more than it was today. i would have -- if you told me that, play the game, tell me what's going to happen, i'd say the stock's down 10% and it wasn't close, which was a good sign, but this is the first, i think, of many. >> if you look at analyst report across the street, and they list risk disclosures on apple, they give their bull case, tell you why, and then they say risks to their outlook, number one risk is always regulatory kind of escalation with china, number two is typically some kind of loss of dominance at the app store. two things that popped up today. in europe, especially, because they're calling them a gatekeeper and talking about knocking down the app store. if they're going to do it or not, apple has to hold tight here. they have to defend a lot of the privacy dynamics and the ios, element set tra. so, i don't think they're going to go quietly. i would point out, i'm surprised this didn't happen to apple not far after we beat up on huawei.

and here's huawei, in the last week, has come out with their mea mate 60 phone, same sales pace that the iphone 14 came out last year in the first four days. it's a much better priced phone for china. obviously the chips inside make the chinese regulators a lot more comfortable and i think it's a real threat. i think there's competition in the form of another phone, i think big brother is really on top of them and i think, again, analysts have to respond to this. >> putting all of this aside, there's still questions about apple's valuation. >> yeah. >> relative to the market, relative to itself, karen. >> right. so, i mean, that -- it is expensive, even without this news or where it was yesterday, before this news. i mean, i agree with tim, china's always been front and center, boptth as a market for consumers and obviously as a place where they're manufactured. so, they're pretty vulnerable to china, and that's not a great place to be. i'm surprised -- in hindsight,

thinking about it, why this hasn't been more of a potential penalty on apple for awhile? it's not surprising to me that this level is still expensive, right? i think this multiple north of 30, we talk about, you know, the software, or, the services multiple being much better than the hard wear multiple, but still, it's a pretty big multiple. it's down a lot from the peak, i wouldn't -- i own a little left, i would not jump in and add to it here. >> i jumped in. i added to it. >> that's exactly what you did today. >> i sold it, i bought the stock today. so, to guy and tim's -- to everyone's point, this has been sort of in the mix forever. we've known about this. so, you start off the show, china can flip a switch. so can apple. they can flip the switch, too. they can start manufacturing off. they have started to manufacture, right? so, this would have been a bigger shock years ago than it is now. >> sorry, what's the switch that they're -- what's that going to do. >> take manufacturing from

china, they can take the reliance on china -- >> makes the phone more expensive. is it a good thing? >> everything is going to be made more expensiexpensive, tha whole biden administration, let's bring everything home. we've established that everything is going to be more expensive. would you rather it be more expensive or more levered to china. >> he would you rathered, melissa. >> the key is, you want to get less china leverage, what is what apple has been doing -- >> there are other unknown questions here, and that is, can the government further, can they say, not just government officials, but state-owned enterprises, companies -- >> why wouldn't they? >> we have stakes like an ali baba, by the way, and say -- >> sure, this should have been done -- >> concerned about data flow out of this country. >> and we're concerned about it, as well. so, this is very tit for tat approach to it. this has been already in the mix as far as the iphone is considered as far as privacy concerned. but didn't china do this with tesla, as well? right? no one can own a tesla.

>> government or military officials cannot use tesla. >> and it -- the tesla sales weren't really crimped. so, is there -- is there a propensity for people to have two phones? i don't know. china is different than the u.s. >> guy, you have a burner phone, right? >> now everybody knows. i mean, why do you -- >> a guy like you has to have one. >> right before the nfl season. >> just to put a bow on it. the reason why i got back in, it seems a little contrived, it seems overdone. everybody is talking about september being a terrible month, i think it's going to be a good month for the markets. if it's a good month, it's good for tech, if it's a good month for tech, it's good for apple. >> the fact that this iphone 15 release, we're getting on the 12th is, you know, whatever cliche you want to throw at this, it's evolution, not revolution, i mean, there's nothing earth shattering going on here. i look at the declining iphone sales, i look at the pull forward, i look at the discretionary headwinds for every econcompany -- i don't th anybody has more of a tailwind from covid than apple.

>> tim, only because -- real quick, only because on the innovation, when has apple ever innovated? >> fair enough. we've certainly complained about innovation at apple, it's only been a camera, it's been a case and what not. eye look at the second quarter numbers, where they beat, but it was still declining sales. >> yep. >> and the beat came from 8% in china and 5% in eu. eu, which, by the way, includes india for some reason. but the two growth markets, the two headlines, for apple, it's only about the multiple, so -- really, it's about whatever you want to put as a multiple on this stock and the street has gotten comfortable throwing a 30 times on this, and i just don't know that you do that in this environment. >> rising interest rates, 28 -- i have -- whatever, let's call it 30, round up, but as tim just said, three quarters of declining revenues and earnings. high single digits earnings growth. high single digits revenue growth. if you said any other company other than apple, you said, the

stock is too expensive in this environment. it is too expensive in this environment. guess what? apple does go down, too, over periods of time, over the last seven years, ish, apple's had probably six our seven 25% to 40% peak to trough declines. so, it does happen. >> let's play this out then. if the environment is so bad, or potentially so bad, isn't this exactly what you want to be in? you want to be in a company that has a lot of cash, does not depend on the capital markets for cash in any way. has a customer base that loves the product, needs the product, it's almost like a utility, like toilet paper. >> whoa, whoa, whoa. >> i don't know what you're doing with stocks at home in the lee house. >> i'm just saying that people do not want to live without their iphones. >> and i get instructions about what -- >> in order to still buy that phone. >> right. i believe all of that, that people absolutely think it's a necessity to have their iphone, but i don't believe it's a necessity to have a 30 multiple,

right? and so, we've seen rates move, just talk ing about math all th time. so, it wouldn't be surprising to see -- if you talk about a drawdown of 25%, gets us to 24 times. that's a -- probably the market will be much lower if it got to that. still be above, so, even though it is a necessity, the stock here, this is not -- it's not a bu built-in floor. >> our executive producer was just in our ear. would you rather, you find yourself in the toilet without your iphone or toilet paper, what are you more upset about? again, you know, that's just bad -- >> it's -- right over the line. >> tim seymour, one step too far. >> didn't take long on the new set. >> did not. our next guest is the street's biggest apple bear. his price target is $120 a share. walter, great to have you with us. >> thanks, melissa, how are you

doing? >> good. is it tough to have this price target on apple seeming juggernaut in this market? some would argue despite the headwinds today, the stock acted well. >> well, it's been touch. we had a sell since march, the stock's up 20%. outperform the s&p, but underperforming the qqq, so, you know, the issue, though, is, i think as you guys were talking about, it's not growing. the company is not growing, and the multiple just went from over that period from 25 to 30 over the past four years from 15 to 30, for a no growth company. they're showing some minimal earnings growth, because they're buying stock back. then the question is, okay, that's already happened, it's the last three quarters, what about next year? maybe people are expecting them to return to growth next year. and look, the single primary driver of this company's revenue and profit growth is still the iphone. it's 52% of revenue. right? so, and what's happening, today, earlier on cnbc, you had the ceo of at&t tell david faber that

people are just holding only their phones longer. i was listening to you guys before, you are 100% right. no one is going to get rid of their iphone. the question is, how long is it going to take them to upgrade to the next mod snl and we all know the battery dies, but the battery's been getting better. and what is it about this year that's going to get you to buy it? the higher price? the telcos, which is where all the product goes, these are the guys that are doing the promotions. mike seibert talking about promotions costing them her. what's going to make you buy your iphone or replace your iphone faster than you did before? that's the question. and -- >> what is the most likely trigger for this decline that you see to 120? is it -- i mean, you can argue that if the market overall goes down, apple still remains higher, relative to the markets, and if the markets go higher, it's because of apple. >> yeah. >> sort of a lose/lose situation for you bears out there.

>> yeah, certainly, again, didn't expect multiple expansion when they missed the quarter and generated a nickel off of a lower tax rate, right? you don't expect that to happen, but going forward, you know, i did this back in 2012. same issue with the operators and we were wrong early on you and then it kicked in, where the replacement cycle extended, the stock missed and they had one of these drawdowns that you guys were referring to earlier, so, why do stocks do down? or why do multiples contract? when companies miss earnings. yeah, i didn't happen last quarter, but if they miss last quarter, or if the street is expecting 3%, 5% growth next year and it's not 3%, 5%, at some point, investors look at other large cap names that are out there and say, maybe we should be in those names rather than apple. and that's theoretically how the call can work. but you're right, up to this point, it's been painful, and it's not worked, even though they've missed earnings, not dliferred any type of growth. >> walter, it's interesting, and i -- you probably know the number exactly, but i think

apple is in about 350ish etfs of which it's in the top 15 holdings. so, in the world of passive investing, where nothing matters but money flow, apple wins to that, and they're probably the biggest winner. so, part of your thesis, i would imagine at 120, is something happens in the broader market, as well, is that accurate? >> i mean, look, i'm cognizant, i'm not going to be the macro guy making that call. it's certainly been surprising what the market has done this year, relative to all of the things that are going on. so, i'm aware of that, but as a fundamental analyst, if i look -- and look, we've had a neutral on this before, i've had a buy on this more than i've had a sell on it, by a large stretch. but if i look at a company and i look at their valuation, i look at the free cash flow yield, i look at ratios and look at my numbers being next year $17 billion lower than revenue, if i'm right fundamentally, the market should reflect that. and i get that there's large companies that are diriving the

market, but when they reported last quarter, the stock was down and the market was up, so, do have leadership that obviously benefits from in-flows, but sometimes leadership changes, or the waiting within those large companies does change, if there's other companies. there's analysts out there saying, hey, this should get a services multiple. netflix pe multiple is lower than apple. so, it's not like it becomes a services company that's going to rerate to a higher number. that's a lower number right now. >> walter, great to get your take. thank you so much. >> you bet. >> and karen, i mean, i guess your portfolio is one example of this, where you have a google or an alphabet in favor, instead of apple. >> much, much bigger. just add one mathematical point to about apple. because rates have moved so much and the multiple is so high, those are no longer accretive. might be a floor to a stock.

>> rethinking your -- >> no. i think the risk is -- so, if you look at where the stock stopped, it was around 170ish. that's where it stopped back in may. so, the -- august low was around that level. i think your risk right now, 20 up, 10 down. >> okay. apple's breakdown, by the way, creating a dom mow ino effect i markets today. are we in a so goes apple, so goes the market kind of moment? kind of feels that way. >> look, at different times we've seen that. so far, it's actually -- you know, qqqs have outperformed the market over the last few weeks, and it's funny, because that point we were saying the market rep was growing, since that point of mid-july, a lot of this is rates related. transports underperform by 7%, industrials underperform by 3.5%. so, it's almost as if apple, despite whatever is going on, and today is a bounce downward after a bounce back in apple, frankly, if apple really gives

ground, the numbers just don't lie. the market has to pull back. the reflexive dynamic here is, you're going to see more rotation. i think over the last week or so, as some of the growth data's become a little more troublesome, megacap tech's caught a bid. >> interesting. tim talked about this on our 12:30 call, the chinese currency continues to get whacked, nobody seems to talk about it, nobody cares. they should. dollar/yen continues to go higher seemingly every day. we're going to come in for a show, bank of japan intervened in the end and it will last for a day and a half. that's not going to work. dollar is going to continue to go higher against the yen, which is not a good thing for equities. and to the apple point, yeah, apple is clearly important. rates are more important, and very quietly, ten-year yields are back to 4.3%. it's a big deal. they're not going up for the right reasons. that's my view. >> and by the way, the boj has been trying to jawbone the yen and it worked for a small window of time. >> one minute. >> and then reversed. >> boj has been so offsides on monetary policy and -- you

brought up toilet paper, by the way, not me. >> you took it to the next level. >> this is what happens around here. >> mine was a metaphor. yours -- >> that went over my head. coming up, rough skies ahead for airline costs. so, will the pain at the airport pump continue to be a headwind for the space? we'll debate that next. plus, all eyes on arm. the ipo market picking up steam ahead of one of the biggest listings of the year. will the high pro file debut pave the way for more to follow suit? the details when "fast money" returns. pnc b and work there. because you call these communities home, and we do too. pnc bank.

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welcome back to "fast money." two major airlines today signaling there could be turbulence ahead. southwest warning on revenue on some of its leisure booking stalls last month. and united telling the street spiking jet fuel costs. let's welcome in phil lebeau. >> i love this place. >> meant to be. >> that's what we were going for. >> that's good. oh. let's talk about the airlines. it was alaska had some negative comments today. and the bottom line is this. jet fuel, if you looked at it,

since the beginning of july, has been on a tear, relatively speaking, and as a result, what did we hear from united today? it said that their jet fuel costs up about 20% in the third quarter, they didn't bring down their guidance, in terms of earnings, but they -- they issued the warning there and you heard the same thing from southwest. we see these higher costs here. not the greatest commentary regarding leisure demand, but they didn't warn. they did say unit revenues will be lower than expected from their previous guidance. and take a look at jell fuel. as we mentioned, up about, what, 30%, 35%, since the middle of july. this is the largest cost for the air airlines, so, this is not a surprise that we're seeing this from the airlines. and as you look at the airline index, all of this raises the question, what can we expect beyond the third quarter? it's starting to feel, to me, similar to what it felt like before the pandemic, when, remember, warren buffett and

others said, there's a long-term play with the airlines. i'm starting to feel like there may not be a long-term play. they're back in this trading dilemma. you trade them up and down, up and down. demand is strong. demand remains strong. little soft on the pricing, in the third quarter. but not terrible. so, why is there no love for these stocks at all? >> i'm curious, phil, how do they stick to the revenue and cost guidance they gave in july even with fuel costs going up so much? >> a lot of that has to do with the demand. they had a great summer. international, united is killing it. they are absolutely killing it on the international business. they've got the pricing there, they have the demand there. they added the capacity at the right time -- >> but the cost guidance remains the same. >> the math doesn't add up, is your point. >> right. i know what you're saying. >> it would be one thing if they saidcreasing capacity. airlines, when they get sloppy

on capacity, the multiple dies. >> that's the concern out there. there's more capacity this labor day to thanksgiving than 2019. and they might be over their skis. >> well, you said this and i'll just say this, because i've said it before, i think airlines are the greatest trading stocks in the market. and i think if you look at the underperformance, and i think delta underperformed its multiple and its earnings power for a long time and it shot up, 14 straight days, i mean, it set a record. and i think they can go lower here. >> yeah. karen, what do you think of airlines here? >> well, i don't own them. i'm wondering, how much do they hedge that oil? for some amount of time, maybe they are okay with the cost, because that's -- >> right. >> make it up on the other side. >> they need them to come down. >> sometimes we've seen that oil is actually not been such a headwind and they are able to charge more, we've seen oil, can they still do oil or gas surplus charges, gas -- >> no. >> they can't. >> no, not right now. >> the market won't bear it --

>> the market won't bear it. that's my opinion. now, the market has beared higher costs on these international routes than have been out there, so, i mean, there is a little bit of firnls there, but i think there's not as much as you might imagine if oil continues to move higher. >> may i ask phil a question? the rules still apply -- >> i'm trying to play by the rules. you have to understand, phil, if we good-bye the guest, one of us -- >> is the question about toilet paper -- >> well, close, but no. existential risk -- united can say whatever they want. there was a ground halt the other day -- >> yesterday. stopped me from coming into new york. i had to rebook on a different airline. >> there seems to be a risk here with the airlines on the back of all these -- am i being too dramatic here or is there something going on? >> look, what happened with united yesterday was a very short ground stop. it's not good if you are there and you're like, i got to get to new york. i'm not going to sit around and wait to see whether or not the ground stop is lifted.

ultimately, the flight i was supposed to be on did take off, but i didn't know that. and i was like, i got to get to new york, one way or another. so, i rebooked. i do not think there's an existential issue here for united or southwest or any of the other airlines. i do think that we will occasionally come across this. and i know that's not the answer people want to hear. but i don't think there is an extenistential issue here. >> i think the bigger question is, does oil come down. katie stockton tweeted today, she saw it up to 94. we're seeing the spike. t today, we saw a spike on the back of the production -- >> i think we're at the higher end. so, katie sees it to 94, i said, i think 100, that big fat round number is probably going to be the limit to the upside, thereabouts. so, we're closer to that then -- you can sort of see the light at the end of the tunnel. southwest chart is the most hideous chart in the airlines. delta, united, still look okay to me, so, if you are going to look, if you want to bottom fish and look at southwest, then you

can probably take a stab at that, but i don't see any reason to be -- to go out on a ledge and buy any of the airlines right now. >> i don't see any reason to trade airlines on oil prices. we don't reward them on the way down. we don't talk about it being a windfall on the surplus to them. i just think, look, i'm a big fan of delta, i'm a million miler, i've thrown a lot of miles on delta. >> bragger. >> i think this is the best airline by far in terms of what their execution is, their balance sheet, a company that didn't have to -- and karen talked about this during covid. the enterprise value for all the airlines changed dramatically, it didn't at delta. i just think -- we have a trouble giving them credit for running these businesses e officially, especially through all the tests they have over time. and they test us all the time. i think they're run better. >> phil, great to see you. >> it's great to be here, guys. >> thank you for making the trip. >> remember, put the little colored buttons in here so we can all -- >> all right. after the break, we've got some afterhours action. shares of american eagle and

c3.aio c3.ai. and don't call it a comeback, though it may be one. with arm's debut inching closer, could more high profile names be next? the latest on the ipo landscape ahead. you're watching "fast money," live from the nasdaq market site in times square. back right after this. to balance risk and reward. with one element securing portfolios, time after time. gold. agile and liquid. a proven protector. an ever-evolving enabler of bold decisions. an asset more relevant than ever before. gold. your strategic advantage. ♪ is it possible to fall in love with your home... ...before you even step inside? ♪ discover the magnolia home james hardie collection. available now in siding colors, styles and textures. curated by joanna gaines.

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is it possible to survey foot traffic across all of our locations? yeah! absolutely. with the advanced connectivity and intelligence of global secure networking from comcast business. it's not just possible. it's happening. welcome back to "fast money." stocks dropping as the market continues its sluggish start to september. the dow falling 200 points. the s&p down more than half a percent and the nasdaq leading the losses with a 1% loss. now on a three-day losing streak. some earnings alert. shares of american eagle and c3.ai lower after earnings. but gamestop jumping 6% after reporting its results. and health care company rezmed

getting an upgrade. buy rating on this name, saying the headwinds appear to be priced in. the stock slightly lower, now 30% in the last two days, last two months, i should say, as obesity drugs gained in popularity, causing analysts believe that if tfewer people ae overweight, there will be less demand for apnea products. in what many investors hope could be the jump start that the listing market needs. instacart, klaviyo and more are expected to price before year's end. our next guest, nelson grigs, great to have you with us. >> this is awesome. >> this is fun, right? have you sat on this set before or no? >> i've been sitting here waiting for you guys to get back up here. >> don't throw anything in the middle.

>> no, we're -- we're thrilled, it's -- your 16th year with us. feels like it's a cool location. >> 16 years, amazing. so, what does arm mean for the listings market? >> i think ashrm is a unique de. doesn't mean, you know, window opens up, but we're siege some signs of life. for the first time in 18 months, we're seeing significant activity, so, you have that, a little bit of pickup in m&a activities, which gives a floor to valuations. and companies are doing tests in the waters, so, it sets up a 2024, depending on how arm and the other companies you mentioned perform this fall, so -- >> yeah. >> but it's a very big deal. >> what are some of the sectors will reignite this market? a.i.? >> well, a.i. is -- i spend a lot of time out in california, most meetings are with a.i. companies, but i do think enterprise, tech, is very well

capitalized for the next, you know, 12 to, let's call it 18 months or so. so, we do see more retail names, some pe-backed deals. we'll see some tech, but i think tech is probably more the, you know, april, may story of next year than anything sooner than that. >> let's play stock market for a second. august volumes for the nasdaq were great. 7% growth. very accretive. and gives you visibility. the stock doesn't trade like people understand it. what are people missing? >> well, i think you mentioned the deal, and we're obviously very hopeful that it closes, as we expect it to, and it's up to us to prove to investors and clients that they see everything that we see in the deal. our business, our core business, is performing very well. i manage the corporate businesses as well as investor businesses, so, the index businesses are doing well. so, the core franchise is doing what we would expect it to do in a market like this.

with the acquisition, it's up to us to show, again, our customers and investors that we're going to deliver. >> nelson, you spoke about the private market. can you get a little bit deeper -- >> sure. >> what can the person watching television right now glean from that relationship from the private market to the public markets? >> yeah, no, i'm glad you asked. you look at the valuation disconnect in the public markets, happens every sect and is real time. the private market is a much more slowly moving market. so, when there is a market like we have now, it takes awhile for those valuations to come together, so, for the last 18 months, we really saw almost no activity. now, we're seeing at least ten times the amount of order flow coming into our platform, institutional trades coming. small handful are at a premium to their last round, so, we're just again seeing, i think the valuations that are in the private sector have reached a level where the sell side and the buy side are getting to be more comfortable where they are, which then portends to hopefully

a better public market and ipo. >> let me ask you, for the arm deal, what's sort of the best-case scenario. i don't think it's a giant pap. what would sort of be a good underpinning for the market to really -- for ipos to come back? >> i think it would be for the deal to perform well. they're on the road right now, so, wouldn't comment on what that looks like, but as they go through their pricing, if it performs at a level where -- it's a very large transaction, and if it performs well, i think it's important not to focus just on arm, because there are other deals, as well, so, we need so see more of a broad-based performance, the bio techs will go next week and other deals will follow arm. >> nelson -- >> great to be here, and excited to have you back up here and looking forward to all the activity we're going to see up here. great to have you. >> see you soon. nelson. what do you think of -- how important is this? >> well, first of all, look, this is a -- a unique ipo,

especially when you consider the history of the company. the investors that are involved, the people that have nurtured this to a point where it's ready to sell, it's ready to sell, and i think it's going to do well. it's very important. we talked about the private markets getting to an equilibrium point that make it interesting. the other thing that folks at the nasdaq should be proud about, the leadership of the nasdaq 100. all we do around here is talk about how the -- the nasdaq 100 is leading and it is semiconductors and sub sectors in that growth profile that seem to be driving the market. coming up, the disney drama drags on. the company's charter feud continues and other media execs are sounding off. more on that next. and a defense drop. shares of lockheed martin falling after outlook in delivery updates and the news had investors hitting the eject button. tus.details when "fast money" rern

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here's why you should switch fo to duckduckgo on all your devie duckduckgo comes with a built n engine like google, but it's pi and doesn't spy on your searchs and duckduckgo lets you browse like chrome, but it blocks cooi and creepy ads that follow youa from google and other companie. and there's no catch, it's fre. we make money from ads, but they don't follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. welcome back. another dustup for disney. the entertainment giant is still fighting with charter over its ka carriage fees and agreed to move up negotiations with comcast for the purchase of the piece of hulu it doesn't own. 33% could fetch comcast more than $30 billion.

julia boorstin is here with all the dollar and drama around disney. julia? >> well, melissa, brian roberts, the ceo of comcast announcing this morning that they have agreed with disney to bring the timing of their sale talks for comcast's one-third stake in hue lee up to september 30th. that's up from the prior deal to start talks in january. roberts saying that hulu's previous $27.5 billion valuation was hypothetical, saying it's way more valuable now than it was five years ago. all of this as disney faces a negotiation with charter over licensing fees, and charter's demand that it be able to offer disney+ to its subscribers at no additional cost. now, comcast's roberts saying he's not surprised by the dispute, as every company deals with their version of what he calls this transformational moment of what's happening in the entertainment industry. meanwhile, paramount's ceo commenting that a dispute like

this seems inevitable, and that he's been focused on deals to bundle in access to paramount's streaming apps into certain pay tv packages along with their linear tv networks. now, all of this comes as disney slashes the price of disney+ with ads to just $2 a month, that's 75% off for new and returning disney+ subscribers for three months. now, this is a promotion that's long been in the works, as disney works to draw more subscribers to its dual-revenue stream option. melissa? >> i was surprised they moved the date up, because that would force disney to pay up sooner, and it's not necessarily in a great position to do so, unless you think that because of this charter dispute and because of this quote unquote transz formational moment, that it wants full control of hulu so it has more control over how to offer its content directly to consumers. >> look, disney would not have agreed to this if it didn't make sense for them to have clarity around this. clarity about how much they were going to pay, clarity about which as sets they were going to

have, to be able to bundle in, perhaps with the other streaming content. so, i think clarity is the name of the game here, melissa, and i think knowing this thing is looming in january, why not get it done sooner? i think that was sort of the approach here. >> all right, julia, thank you, julia boorstin following the developments. tim, you had your sort of angry moment with disney -- >> one of the greatest tennis matches for american men's essential nice at the u.s. open was on last night and i couldn't -- i thought, all right, i've got espn+, i've got disney+, let me wave it in and i found that, you know, spectrum, my cable provider, you know, is not, you know, that's how i'm getting through the pipe, and that's getting blocked, too, so -- people are finding out that this extra money that they're paying isn't really getting them the freedom they want and essentially, you know, building their own bundle, not so good. by the way, i want to bring back, you know, the comments by the godfather, tom rogers, guy calls him a stud. >> he is. >> one of the things he pointed out, disney's future is being

dictated by transactions. and by deal flow that they really -- it ties their hands. and it kind of feels like that's also what's going on here, even though this may be the purchase that they need, it's not a great time. >> yeah. >> interesting. i watched roku, i think it was the end of july, stock went up 30% after earnings. which is -- which is pretty amazing. but if you look at where the stock was and where it is now, i mean, it's barely budged. there's going to be an opportunity, i think, to really -- if you are looking for a short side trade, it's going to come in the form of roku. they are doing better, still a company that trades at a ridiculous valuation, they can't figure out how to make any money. roku here at $86, it gets to the mid 90s, might be great short trade on the horizon. >> maybe disney isn't doing so badly. disney's seen a 60% jump of hulu plus live tv sub skrscriptionub. >> that gets to your point.

exactly right. so, i mean -- they anticipated this was going to happen. it's not crazy, knowing they have this issue with charter coming up. here's a potential way for them to alleviate that somewhat, paying up now. it's only four months difference, but if it can help them. now, you have to think, comcast is going to make them pay extra for that. why give it to them for free? >> that's obviously -- the play that has worked out has been the comcast stake, what is that worth? the stock has been trading on that, almost unilaterally, and i think it's still the best buy. disney looks like the bottom is ready to fall out, so -- this has been the pandemic low area. if it doesn't hold here, it's $20 to the downside. coming up, locked and unloaded. what had shares of lockheed martin losing altitude. that delivery update that had investors on defense. that's next. plus, roll credits. shares of amc plunging after a new stock sale announcement, and

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( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall. welcome back to "fast money." lockheed martin shares diving nearly 5% today after the

defense giant cut its outlook for f-35 fighter jet deliveries and delayed deliveries for its tr-3 jet. it now expects to deliver 97 aircraft this year, down from earlier expectations of between 100 and 120. the f-35 accounted for 27% of lockheed's net sales in 2022.fl. >> i did. the move probably makes sense. but you can look at lockheed martin, you've had moves of this magnitude on similar types of headlines. they always come out the other side. valuation is extraordinarily reasonable. probably given this move and given what you just said in terms of revenue, probably about as expensive as it was before the move. with that said, you don't run far from lockheed martin. look at the last quarter. it was excellent. this is lower left, upper right. >> it's amazing in the world that we live in, almost like cybersecurity stocks. you would think you wouldn't have a more bullish environment

for these names. especially with defense stocks. and if you look at lockheed, if you look at general dynamics or north run grum monday, all of these charts look terrible to me. so, i don't know, if this isn't the right time to buy them, i'm not sure what would be the right environment to buy these names in. >> i don't think this does much to the short-term numbers. it may put a little bit uncertainty on '24. i think it's an overreaction. and i think they're going to stay defensive here, pun intended or not intended, i don't know. you're right. this is a sector you want to own, and i think -- i love boeing here, too. coming up, amc plunging. shares falling hard after a stock sale announcement and options traders are getting a front row seat to this drop. how they are playing it, next. "fast money's" back in two. you ok, man? the internet is telling me a million different ways i should be trading. look!

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with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network. here's why you should switch fo to duckduckgo on all your devie duckduckgo comes with a built-n engine like google, but it's pi and doesn't spy on your searchs and duckduckgo lets you browse like chrome, but it blocks cooi and creepy ads that follow youa from google and other companie. and there's no catch. it's fre. we make money from ads, but they don't follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. welcome back. sneak peek at the cramer cam. catch his full interview with the ceo of crowdstrike on "mad money." amc shares plunging more than 36% to a fresh 52-week low

after the company announced a plans to sell 40 million new shares to raise cash. amc converted shares to common stock in august. and also did reverse split. karen, you've been keeping a close eye on the debt. >> i have been. the debt, the debt that matures most -- the soonest, is the 2025. i actually think, wow, it doesn't trade as terribly as it could, given what a disastrous situation this company is in. that's not that bad. so, they issued 40 million shares. the stock today traded well over 40 million shares, but apparently that wasn't the company issuing their stock yet. so who knows when that actually happens. it's sort of like, you remember "apollo 13," everything blew up and they were taping stuff together with duct tape and ricochet around the moon to land safe -- that's what these guys are trying to do, at 100 miles an hour, where they are losing money hand over fist, a tiny

blip up for taylor swift -- i don't think that's enough to make it. i'm excited to see how this ends. it's extraordinary that it hath hasn't already. >> two years ago, when this stock was riding high with the momentum of -- you know, the -- the memers. it was idiotic. it burned 6 $30 million in '22. i don't know what it burned in '21, probably the same amount. going to burn a couple hundred, 250 to 280 this year. this was a broken company, it had nothing to do with the establishment or hedge funds -- it has everything to do with secular headwinds that have been going on in the box office and it was a great summer, by the way, and the, you know, t-swizzle and the swifties aren't going to save them, either. on the day that news was announced, i mean, i think the stock barely budged and it shouldn't have budged and maybe it saved it being down 20%, which is what it seems to do every day. this is shocking and it's been shocking that the shenanigans i

think have been going on. >> the ceo went to hero to shareholders to -- >> eight shares, by the way. >> well, that was a disaster, they should spend money. >> they should spend money on a gold miner, of all things. >> he was their mel gibson in "braveheart" and it's -- he's nowhere near -- >> that's not fair. that's a great movie. you just -- take that back. >> i take it back. >> all right. >> but let me ask you, is there another ceo around that could still have this company be not bankrupt? it's an extraordinary -- i'm not saying i would buy it, but i find it absolutely amazing. >> cat with nine lives. >> yes. >> the special shares called apes -- >> the apes were jammed back on them. >> they sold a hedge fund -- you will take your debt, retire it, we'll give you shares, and you can sell them right away. i mean, they -- the -- nine lives, i don't know if they're all legal, they seem to be. but it's extraordinary. >> when karen said she surprised

it hasn't come to an end, one-year performance, the stock is down 88%. if you get overly negative on a stock that's down 88%, tomorrow it could pop 30%, 40%. and no one is shocked at it. so, you could get whip sawed in this name twice before noon. this is a no touch for pretty much everyone on the desk. >> options traders betting today's amc losses could get even bigger. kelly intelligence ceo kevin kelly has the action. what did you see? >> hi, melissa. with today's downside move, it's no surprise that we saw 1.43 times the amount of puts versus calls in the name. and this, you know, what steve said is right. it's whip saw so much. we're seeing an implied volatility of 166.55 in the stock. now, today's options, we saw the most heavily traded contracts were the near term $10 puts for this week, as well as next week,

so you had over 110,000 contracts in those two strikes for, you know, those two expiries. so, downside move from here, same below ten. >> all right, kevin, thank you. kevin kelly. for more options action, tune into the full show, that's friday, 5:30 p.m. eastern time. up next, final trades. with the women's tennis association to remove boundaries... ( ♪♪ ) because this game is for everyone.

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time for the final trade. let's go around the horn. tim? >> delta airlines. i am long. i do think that the dynamic around the news today, i think they're going to hold it together. valuation's really attractive. >> karen? >> yes, one area that's been holding up is the banks. i bought some more jpmorgan today. >> did you wink? >> did not. did i? >> what do you mean by that? >> hello, jamie. steve? >> apple, negativity is overdone. i took a stab at it again. >> guy? >> mel, we were just talking about this, nobody hits more meaningless home runs than pete alonso. it's amazing. >> what are you talking about?

he's one of the most prolific home run hitters of his time. >> doesn't matter. >> we talk the truth on "fast money." >> the nasdaq, mel. it's too cheap here. back to you. >> all right. thank you for watching "fast money." see you back here tomorrow at 5:00. meantime, "mad money" with jim cramer starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people make friends. i'm just trying to save you some money. my job is not just to entertain, but to educate, put it in context. call me 1-800-743-cnbc or tweet me, @jimcramer. cracks. we're seeing some cracks in the armor of perspective earnings from some very important companies, and it is getting