piper jaffray said it could be up, what, 50% between now and the end of the year. but i believe investors are in a divergent path of that. and there are five holds and one sell. but the stock is down 25% over the last months so investors are not buying what wall street banks are say being apple. so obviously it is a bit of a contentious situation. the stock, we know the valuation and the balance sheet and the capital return. all that sort of stuff. we've got to get through this earnings report on tuesday night. the options market is implying a 6% move. if you are long stock and you are worried you might want to put a collar against your long stock. and what specifically is that? well that is selling an upside call, taking in the premium and buying a put to the downside. and you're basically collaring your stock. so lets look at stocks and then i'll give you the trade. this is how i'm arriving at the call strike. this 110 level is a big breakdown level both in august and then in december, the stock found a little support at the opening of the august 24th low. it jus

piper jaffray says apple could rise by 50% in september. he is recommending a buy on january 26.e fuel that rally and multiple expansion. let's look at how apple shares are doing premarket. aboutks like they are up 2%. they traded at a lower multiple today, over the past 20 months. tom: we saw goldman sachs do the same thing a few days ago, but munster carries an awful lot of weight at piper jaffray on the product cycle of what apple will do. vonnie: exactly. time for my morning ross street -- time for my "morning must-read." from "the financial ceo's anditing about cmo's. the title of the op-ed is "the tiny shifts that sink bill -- that signal huge changes." actually, that is an old op-ed. i will read it from the newspaper itself. intensity, and paying attention to how authorities are managing them or not in china and elsewhere. she is talking about the movement to capital, but not just large sums of capital, not just vast flows. at thesaw gillian tett espresso bar down here. love your morning must-read, and this is something we were doing yesterday. regulator,a chinese how do y

piper jaffray most notably saying that shares could rally 50% by september. that is when we expect the new iphone seven to drop. in addition, microsoft is up. it is one of the top stop picks -- top stock picks. amazon is seeing retail plans expand on the order of 7000 jobs a year. you.: thank let's get a check of the headlines with mark crumpton. mark: thank you. though blizzard menacing the eastern united states could rank near the top 10 to ever hit the region according to the national weather service. to two feets, up for washington, d.c., eight inches for philadelphia, eight inches for new york. some roads in virginia are already seeing deteriorating conditions. an american tourist from ohio is under arrest today in north korea. the university of virginia student is accused of plotting against the government. another american on spying charges was reported earlier this month. in advance of next week's anniversary of the arab spring uprising, egypt is cracking down on dissent. a number of activists are accused of planning demonstrations. donald trump is ou

. -- bank of america and piper jaffray saying it is a good buy.icrosoft and google contribute into games. performer wase also one of the top performers in the nasdaq, and information consulting company. it reaffirmed its forecast following flooding, saying it would not affect numbers. back to you. emily: julie hyman in new york. anotherp, spotify adds layer to the listening experience with the help of a startup and eminem. lifeeriscope stream new into your twitter feed? ♪ emily:emily: in today's version of out of this world, spacex hoping for repeat success after a successful landing of an orbital rocket back on earth in december. willmusk says spacex attempt another landing on sunday, this time on a barge in the middle of the ocean. has unsuccessfully attempted this kind of landing three times before. it is arguably more challenging a land attempt because it is a moving target. the company websites at the attempt would be like trying to balance a rubber broomstick on your hand in the middle of a storm. elon musk is out with comments on apple, say

piper jaffray coming out and other companies coming out recently, bank of america reiterating a buy.ng i found a man china somehow. it is seeing that while some other analysts are saying the opposite. stephanie: if you put in perspective where apple falls in the portfolio of many investors, it is still considered a winner if you compare energy stocks. this could be a moment where you saw a lot of investors sell into the end of 2015. they are looking at the market and saying i am selling because in a month i think the overall market is going down, then i'm going to reload the ship. if you talk to investor after investor, people like iphone's. jon: there are investors that are not in apple. one reason, it is one of the most well researched stocks on the planet. stephanie: there's no edge to be had. jon for: that reason, there is no edge to be had. any uncertainty, it is china. when matt winkler talks about the strength of u.s. consumers and discretionary, the uncertainty is china. story, if my support is down as a retail investor in china, do i want to spend $600 on a microphone -- on

a couple of positive analyst calls helping stocks from the likes of bank of america and piper jaffrayaying it is a good buy. microsoft, and google contributing to tech gains. , one of the top performers in the nasdaq, is an information consulting company. there has been flooding in its operation in india. the company reaffirmed its forecast following flooding, saying it would not affect numbers. back to you. emily: julie hyman in new york. coming up, spotify adds another layer to the listening experience with the help of a startup backed by andreessen horowitz and eminem. later, can periscope stream new life into your twitter feed? an exclusive with kim on bayport later in the program. ♪ emily: in today's version of out of this world, spacex hoping for repeat success after a successful landing of an orbital rocket back on earth in december. elon musk says spacex will attempt another landing on sunday, this time on a barge in the middle of the ocean. it is part of the company's cost saving quest to build reusable rocket. spacex has unsuccessfully attempted this kind of landing three ti

here to discuss the xerox changes is a senior research analyst at piper jaffray. make of this xerox split? this is probably the most are medic change that xerox could have taken coming out of this strategic review. the decision was arrived at after a very thorough and comprehensive review by the board and management. my understanding is icahn did not really have a say, but obviously he is supportive. first, it sharpens management focus. it makes sense to have leadership dedicate their attention on each separate business. secondly, higher invest ability because now you will have a place investors can go to. talked a bit burns more about why she thought the split was the right move. given the strength that both of these businesses have, combined that with changes in the marketplace, with changes in , thatdustry, competitors is probably best for us to be separate companies, not together. emily: what are the growth opportunities in document technologies? are they big enough for a stand-alone business? a number ofe are those opportunities still within document technolo

gene munster, piper jaffray. thanks so much. tim culpan, our reporter in japan. thank you. with apple now, fit bit taking a page from the cupertino company's playbook. the wearable company releasing the blaze, a fitness tracker with some apple watch like features including a color touch screen and changeable bands. investors, however, weren't enthused in the face of increased competition shares falling to their lowest price since fit bit's ipo. fossil and underarmor also debuting fitness devices. staying with the latest, imagine waking up to the smell of fresh coffee or croissants every morning. a google back start up is making an alarm clock that will give you just that. >> over the last couple years we've seen a lot of innovations with alarm clocks that wake you up with different lights and sounds and vibrations but this is an alarm clock that wakes you up with smell. this is the olefactory alarm clock. it is an alarm clock that wakes you up with smell using the little pods. these little pods contain scents developed by a french perfume house specifically meant to stimula

let's bring in mike olson from piper jaffray to review where we are on netflix.at reed hastings says there, in this country subscriber growth is slowing, below their estimates and market estimates, despite doing better internationally. do you think that's why it is down? >> it was a mixed quarter, international was great, but we are bumping up against large numbe numbers. we have a saturation point that we may be inching closer to domestically. >> what does that realization mean moving forward? is that something people can brush off as they accelerate internationally? >> i think they can brush it off, as long as the growth is there internationally. there are positives and negatives of being so early on in international markets. the positives are we're super far from saturation, mid single digit penetration, a lot of room to go on that side. the negative is we're at a point where we don't know what a lot of new country also look like for netflix, they don't have a brand, content. so there's a lot of spend that has to happen. they're shifting a lot of marketing res

larry mcdonald is with societe generale, craig johnson with piper jaffray.e problem with the financials? >> well, the credit profile of the major commodity multinationals, the anglos, the glencores of the world, the petrobrases, they need to improve in order for the financials to improve from here throughout the year. >> craig, let's talk about -- i want to ask about the company that mary was just talking about and that is american express. do you think the turmoil is overdone there or is this a company in crisis? >> well, when you look at a chart, tyler, of american express, this is a stock that's been rolled over in early 2015 and it sold off quite hard since then. from my perspective it looks like you kind of in your ka pitlization phase and a real zaz that all these problems are now here. stock looks pretty oversold. i'm not ready to step up and buy it yet. i want to see some sort of indication that that low 50s can start to turn higher, but a lot of the negative news looks priced in. >> thank you very much. find more trading nation at tradingnation.cnbc

. >> aaron roj engineers, piper jaffray. >> apple does have a top selling camera.t's iphone. >> still is. >> coming up, jp morgan, the lebron james of banking. we'll look ahead to citi and many more. plus, the 2015 halftime portfolio champ josh brown unveiling his top picks for 2016. he is already ahead in the new year. find out how he is managing the volatility. you are watching cnbc first in business worldwide. in new york state, we believe tomorrow starts today. all across the state the economy is growing, with creative new business incentives, the lowest taxes in decades, and university partnerships, attracting the talent and companies of tomorrow. like in utica, where a new kind of workforce is being trained. and in albany, the nanotechnology capital of the world. let us help grow your company's tomorrow, today at business.ny.gov >> italy yanl prosecutors say dna analysis led them to detain a man in the death of american ashley olson. olson was beaten before being strangled in her apartment in florence over the weekend. olson was from summerhaven, florida. wit

some analysts, including piper jaffray's jean meunster think ebay will keep struggling to return to commerce growth. however, he says it's already reflected in the stock price, which is why he remains neutral. in fact, most analysts covering ebay, more than 60%, agree with that call and are on the sidelines for now. for cnbc, i'm jh lipton in san francisco. >> and we've been telling you this morning about the resignation of japan's economy minister. the japan minister is to name the xlpd. we'll bring you more developments on that. a confirmation as soon as we get it. but that's the story. he's a fmer executive of the ruling liberal democratic party. he will be the new economy minister. that's a report coming from the public broadcaster. >> meanwhile, let's get back to the earnings picture moving stateside with shares in paypal only a few months on from its spinoff. the results marked 21% revenue growth and 27% eps growth on an adjusted currency neutral basis. the company sees tremendous opportunity to expand as money becomes more digital. >> alibaba is expected to report its weakest quarterl

piper jaffray's gene munster recommended to investors that they buy this stock ahead of the earningsl. remember, apple has been hurt along with every other major stock that we follow in the selloff that we've been witnessing so far this year. that stock definitely moving higher on that recommendation. now, the weather outside might be frightful -- i had to say it, i'm sorry -- but the markets are red hot right now. so what is the best way to play all of this as we look at a very snowy shot of the white house? i want to bring in our floor show. traders at the new york stock exchange, the cme group and the nymex. steven guilfoyle, new york stock exchange, s&p, dow, nasdaq up for the first week, it looks like, of the new year. does this mean that the capitulation is over? >> i don't think we actually saw capitulation, but this is a really huge technical step. 1880 was the s&p number we came in looking at. that's the number we needed to hold in order to have a positive week. now we're looking at a couple level higher. now 1901, we just saw a bounce. if we could hold that level or get abo

piper jaffray gene munster saying the stock could rally by the fall.ng us now for our call of the day. gene, i don't think anybody is surprised to hear you or see you or read a bullish call from you, but this is a big one. >> yeah. it is. part of the reason we think this is a golden opportunity to be more aggressive and in general, as you said, we've been positive on apple, but there are periods where we think our just unique students, and we think this is one of them. let me quickly go through why we believe that. valuation on a ten-year basis is near -- the second is that i've spent the past week meeting with investors and it's clear that they are handcuffed going into the earnings call. there's going to be a massive reset. our belief is that everyone is waiting for this reset to happen. important waiting for the street numbers for the june quarter to come down on the march guide. >> why not just watt for the reset? there was a note earlier this week from one of your competitors at ubs who thinks that the iphone numbers could even be worse than peopl

apple being written up by piper jaffray.re says that the iphone seven could result in the rising 50%. it is a $533 billion company. that would be more than a quarter of a trillion dollars added to the market cap if gene munster is right. disney is another one. in an article out this weekend, saying that it offers compelling value. it has fallen to a 52-week low with an 11% drop so far year today. buying sharesiger in the stock of the company he runs yesterday. finally, i want to mention macy's. look at macy's in the premarket. right now, up 2%. if you will get a year to date, it is relatively shocking considering what we have been through on the markets as a whole getting crushed this january. for macy's, it has been a great month. its bestpace for monthly gain since 2011, up 16% on speculation that there could be a buyout. also, this company has used warm weather as an excuse for sluggish sales so far this winter. if we get this cold wet weather front coming into the east coast, we have already felt it in temperatures, but

piper jaffray says the share price dropping by 50% when the iphone seven comes out. alix: we will talk with him later on in the hour. now i want to check in on the bloomberg first word news. mark crumpton has more from the news desk. mark: the blue -- blizzard menacing the eastern united states could frank near the top 10 to ever hit the region that, according to the national weather service. more than two feet for washington. a foot for philadelphia, and eight inches to a foot in new york. some roads in southwest virginia are already seeing it. in conditions at the storm moves north. an american to arrest from ohio is under arrest in north korea. the university of virginia's to do is accused of plotting against the government. this was reported earlier this month. egypt cracking down on defense in advance of the arab spring uprising. expressing concerns the marched withill be protest. they have arrested a number of activists accused of planning demonstrations. donald trump is out with his first attack ad aimed at rival ted cruz. called an inconsistent politician who

try tourn always attention away from its profits, but the piper jaffray senior analyst told bloombergstors want to start seeing some form of tangible returns. >> the pace of margin growth is paramount on investors lines. margins are improving year-over-year, but i think investors are really trying to cope with this risk that amazon goes back. the good news is what they are spending on is producing faster unit growth. yes, amazonds, spends a little bit more, but they are getting a return for that very quickly. for you is what you make of this push into logistics? what do you think of them leasing planes, trucks, getting out there and doing it themselves and taking that responsibility away from ups? is that a good idea for them? gene: for a company that doesn't say much of anything on their earnings call, they did talk more than expected about the logistics, and what they said is this was essentially -- the reason why, they are knowledge and they are doing it, is when they have this surge in orders, they need to have some a backup when ups and fedex orange there for them. that is what t

the piper jaffray ax so to speak. he said it could achieve an upside of 50% by the current levels since the launch of the iphone in september. david, do you know where that would put this? >> yes, i do. at almost $150. that doesn't seem realistic. >> oh. doubting tom. doubting david. he's just saying valuations very attractive. remember, there's been multiple compression for apple. you look at the multiple. it's the same multiple. it's like delta, united airlines, and apple. what he's saying is we're going to pay more for the earnings. a lot of people felt march is the trough. what you're saying is buy it ahead. for people who are not us on wall street every day, what he's saying is take it. do the thing that no one's doing, which is buy ahead. everyone else is saying wait for the bad quarter and the guide down. he's saying buy ahead of the so-called bad quarter. the absolute opposite of the $93 call we got the other day, which seems like a lifetime ago. >> it does. it does. these days stretch so long they feel like w