>> it's 17 times 2017 ev to ebida.hat's how we have traditionally thought about amazon's valuation. to put that 17 target multiple into perspective, google right now is trading at about 11 times, and so it's a significantly higher multiple versus google. we think just given the growth opportunity is where -- it deserves a bigger multiple. >> you say we're at 13 times now. you think it expands to 17? >> exactly. we think as these -- this story plays out on multiple level that is the multiple will go up. >> gene, does amazon have the best business model in the world right now? >> i think they do, and part of it is because they're hitting with you fwo different angles with retail and that's a similar theme, and i think if you just especially look at the other, you know, top ones, facebook has obviously got a good business model, but i think the sustainability of commerce is probably a bigger longer-term theme versus facebook. >> we haven't even mentioned prime and the potential of being a multi-year positive trend for thi

we raised our guidance on net ads for the year, but kept our ebida.here was a year -- a compare to last quarter on the tax rate that was confused. i think once it settles down, people will understand we had a one-time metro pcs demigs commissions cost, but the results top to bottom were absolutely fantastic. i think by tomorrow the next day people will understand. >> i have people at home saying, well, wait a second, every time you report, the stock pops. >> gu to the store, and there's at&t sales guys saying, i haven't sold any phones for a year and a half. sell him the direct tv. don't tell him, by the way, that he can buy it. sprint gives it away for free. put the app on your phone. >> this is the third good thing you've said about sprint today. now i'm thinking maybe they're not as stupid as you thought. >> they're not dumb and dumber. no, i think -- i would expect sprint to post some pretty good numbers, and the good news is it's not coming from us. i think it's good for the industry. it's good for the u.s. >> let's talk about the industry. you t

three-quarters of 80% ebida, and they're also positioned at non-high he wanted, which is currently growingthan the high end, and we think that's the case going forward. >> interesting. >> they're also not as sensitive to supply growth versus a more oornship heavy lodging companies well. >> it's good to have you on the show. congratulations, again, on this honor. ten straight years. >> thanks, scott. take care. >>> john, by the way, is our resident leisure and gaming expert. joins from yous chicago. doc, you probably talk about these groups of stocks more than anybody else on the desk. what did you think of what the analyst said, and do you agree? >> yeah. well, i love leisure, judge. of course, i'm going to be on that side. as far as the gaming pics, obviously the guy is spot on. gaming as far as mccau, even chanos was thinking about perhaps covering shorts. i don't believe he has. he said he covered shorts, and i believe glencore. he was thinking about mccau and leaving that out there still. crown, which is mpel. unusual activity. both of them made v-shaped bottom from the beginning of oc

if we back into that on a dollar basis, it's several billion dollars of ebida decline. we talk about wage investments again. $1.5 billion. we assume thor commerce loss, that means multi-billions less. i think that's the price element. then there's a wide range around that. are there other pieces, and can you sort of give a little bit more clarity if the dimensions of that are -- >> i'm not sure about your several billion. you talk bed about earning per share. it's related to the $1.5 billion in wage and store structure. can you do the math. it's not several billion beyond that. >> and e-commerce and price would be a component that we would point. as neil showed you, the e-commerce profitability trend is the wage investment and the other investments at the same time, and we're trying to give ourselves some room as it relates to price. we can talk more about that if you guys would like. i think that's one of the key questions that i'm sure you would have on your mind. i just want to -- underline the wage decision that we made at least one more time. this is a big investme

at 5.5 times ebida, a pretty small amount of growth ends up paying you decently well.specially with cash balance that they have to return capital to shareholders and, you know, drive earnings growth, even if your top line growth is single digits. >> look, i suggested earlier this morning doubt this company at your peril. >> yeah. >> there are significant questions about the growth trajectory and what that ultimately means to where the stock could go from here. it's no accident, i guess, that investors have been wondering that. the stock has underperformed amazon and google and facebook, and you could probably find a few of the big techs on the year that just have blown past what this stock has done. andy, it's good to have you on. thank you. >> thanks, again. >> andy hargrave. steve weiss. >> it's quality company. it's got a fortress balance sheet, but if you want to make real money in the market, this is not going to be the place. they haven't gotten penalized, although you can argue the multiple is penalized. for mediocre product launches, the watch, then you have tv

so that 12 billion looks like 12 to 14 times ebida.rar ri has a strong brand value. >> i'm valuing it at 2 1/2 times of a typical auto company would trade at relative to revenues. here's the challenge they face. they have huge margins. those margins are as high as they are because they're scarce. if you had 15,000, 20,000 ferraris being sold a year, i don't think they could command be a premium. to keep the premium they have to in a sense keep growth low. they can't allow growth to pick up to 10, 15, 20%. if they do that scarcity that made them so special would not be there anymore. >> where are you verse that is 12 billion? >> i am at 7 billion. >> a lot less. >> a lot less partly because i don't see the combination of growth in margins you would need to get to 12 billion. i can see 1/2 of the equation but i can't see the other half coming through. >> do you have an update on tesla? i know it was kind of a big deal when you valued it at 67 last year when the stock was trading at 170. >> i revalued it about a year later at 130. i said

. >> this administrator which is consolidating earlier this year a deal was done for 16 times ebida.t. >> when i walked for michael stein jeret over the years he said it was a good gutt check. if you bought a stock and it went down, it went down, what are you doing in the stock, in terms of cogent, it goes down and you buy more. that shows you conviction. at this time in the market having cash isn't so bad. when stocks go down, we buy more. >> the other thing though is the most common thing, marrying the losers. i'm not talking about my wife. marrying the losers. number one taking a profit. up 20%. then the stock triples and then you ride something. you buy it. you ride it to zero. i can't sell it now, it's down 50%. that's a terrible thing to get into as well. you need to know whether to buy more or whether to cut your losses. >> well, there is the story about the man who goes into the broker's office with $10,000 and he buys -- the broker buys 10,000 shares -- $100,000. six months later he calls back and says, where's the stock? i can't see it. 27 it's a better buy than you paid te