have seen some gaps lower in disney earnings one of the most profound was certainly in pawing of 2015 you're in the collecting that much as a percentage of stock price. valuationn disney right now is trading pretty close to the all-time peak. and you might not see that in the stock price. why is that? because they've taken on a lot of debt frankly since a year ago probably about $40 billion of incremental debt on the balance sheet. so that is one of the reasons why we might be seeing a higher implied move right now obviously as the debt level goes up, volatility of the equity gets higher and we see that kblid in the options prices into earnings i like the idea of buying the calls there for $2.20. i'm not sure i'm comfortable with selling the puts at only $1.20. >> all right let's move on here from the magic kingdom to sin city tp let's check the casino stocks shares of wynn resorts leading the group nearly 25% las vegas sands not far behind up around 21%. mgm bringing up the rear with the 19% move high ner the year but despite big gains the chart master feeling lucky roaming the dice on one of the names head over to the plasma, carter break it down. >> you see

put multiples on the traditional business we know it's probably a work around investors are describing something like 80 million. clearly a lot from the valuation side is being put on disney plus service. >> do you agree with that? >> it remains to be seen how large lit be netflix has $150 million still using cash flow per year and you have a whole new suite coming in. you have amazon and disney who just entered hbo max, peacock which is comcast streaming service coming out next year. it seems so far we're not seeing a lot of profit. it's om going nly going get more competitive. >> we're not going to see profit for i don't know how long. >> five years. >> he said don't look for profits until 2024 and they are looking for 60 million by that point. that's basically a million subscribers they are signing up. >> that's the number of subscribers that netflix has in the united states currently and they are not profitable. >> they don't have a pay one window disney has that component. for everything it green lights for, disney, pixar, marvel, they get paid for that and it continue on their service and they continue to get paid. it's slightly a different structure for them >> dis

disney earnings. one of the most profound was certainly in august of 2015. you are not collecting that much as a percentage of the current stock price. valuation in disney is trading close to it's all time peak. you might not see that in the stock price, why is that they're taking on a lot of debt. about $40 million of incremental debt on the balance sheet. >> that is one of the reasons why we might be seeing a higher implied move volatility of the equity will get higher we are seeing that going into earnings, so i like buying the calls there for $2.20. i'm not sure i'm comfortable at selling those puts at only 1.20. >> let's move on from the magic kingdom to sin city. the wynn resorts are up 25%. los vegas sands up 21% mgm 19% higher the chart master is still feeling lucky rolling out the dice within unof these names >> you see those numbers, those are market performing number, inline with the s&p. we're going to look at lvs and see perhaps there is something setting up which should left hand itself to a pop let me just clear this disney and we will move on to lvs yes and no okay. so there is a bit of a skew and there it is. perfect show what

disney at 130 has to hold the level. talk about the competition there. that one is fading quickly as well and you're not getting that growth valuation with the disney i'd be careful about that not holding the lawful. >> qualcomm rallying after topping the level. spoke with the ceo and bring you the comments it's been a marvellous month for the markets. our traders take you inside the record rally and breaking down which stocks to trade and fade your favorite game >> it is. tethuch more "fast money" gh rit afr is (vo) the moth without hope, struggles in the spider's web. with every attempt to free itself, it only becomes more entangled. unaware that an exhilarating escape is just within reach. defy the laws of human nature. at the season of audi sales event. woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on deep research to help make quality investment decisions? with capital group, i can. ta

one, maybe another couple million of that. so i think disney is traditi transitioning their business model, so they deserve that premium valuationd you saw it, as soon as they announced disney plus, the valuation went from 16 to 24 overnight. walmart's another one where as the economy slows, more and more consumers trade down they're doing everything they can to drive volume, because it's such a low margin business from curbside to delivery to pickup those are the two i like the most >> walmart's up a percent or so today. >> after the break, we'll dive into a new report detailing how americans feel about banking with big tech on the heels of google's foray into checking accounts >> and as we head to break, here is a check on bonds. yields slipping to start the week on the back of uncertainties involving china trade. the ten-year yield sitting just above 1.8% closing bell will be right back. >>> welcome back to "closing bell." would you bank with big tech according to a new report, more americans are willing to give it a try. cnbc's kate rooney has that story from san francisco kate >> hey, morgan despite the data and privacy iss

on the future. >> well, it will be a hybrid valuation. there's disney'senuinely really strong with amazing brands, incredible i.p., great consumer products and then there are the three streaming services and one of the surprises in the earnings last night was how much disney grew espn plus hulu grew 500,000. so the existing services are doing well it's all about disney plus how do you do the math for those analysts and investors who are trying to figure out what the comps are going to be and how they're going to project it. >> we look at underlying fundamental earnings excluding the direct to consumer losses. disney's always traded at a premium and they deserve it. 20 to 30% to the market. something like that. then we've done a bull/bear scenario we've put in some -- we assume that there is some cannibal lieization in the 60 to 90,000, we have arranged for 11 based on the 11 million. netflix. streaming to market. disney directly is conservative. >> do you believe that disney is going to ultimately be picking off business from netflix. >> i'm speaking of i

valuation we talk about cbs is at 7. i understand theresa a different business but is it a third or so of disney i don't know the bet on disneye to see the earnings growth and growing to 25 valuation. that's a big bet to make in the environment. >> but they are spending so much. >> at some point to pays off. >> right now we're at the fronted front end of the spend. >> that's the bet you're making. is the spend going to pay off? >> right. >> that's the bet with netflix to a certain extent. >> up next wal-mart on deck with earnings this week we break down what you can expect when the retailer reports. plus tesla shorts getting burned as the car makers revs up. don't go anywhere. much more "fast money" right after this for silky hair, glowing skin and healthy nails. nature's bounty, because you're better off healthy. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from managing inventory... to detecting and preventing threats... to scaling up your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. - [sp

valuation premiums of up to 50%. the reason,to inv have determin that the companies have successfully adapted to the digital world while keeping a firmold on their customers loyalties. disney was an instantcc s, walmart is taking market share with online ordering.ni has done so well, that it quit selling through amazon and starbucks has figured out online ordering itself. the questionnow, have investors cowded a bit too eagerly into these popular blps. nike and starbucksre several perfect below their respective highs. they will be willing to give investors the benefit of the dow. >> first thing this ing, jerome powell metust the white to discuss economic issues, they talked about trade, growth, employment trends and inflation. as you well know, the two have been at odds over the directi of monetary policy, the president described this morning's meeti g asd and cordial. and afterwards, the central bank issued a statement saying theo commentse president were consistent with his remarks to congress last . >> here in the united states the stock market h been encouraged about the ongoinal tradeks with china. in beijing, there's a growing sense that getting a deal done will not

embedded in the discussion is if netflix is valued at x should disney pick up some of the valuation of netflix because of the road it's on therefore when you say the valuation seemed stretched right now are we not allowing it to expand bus it should expand because it's in the streaming business >> you know, i think that's tar fair karen has a view on this netflix has a 7-year head start. and airport you look at it a pretty sticky user base. i don't know how sticky in the years to come. but until now it's been good and you have the international growth i think disney would love to be a netflix at some point but the runway is not next week it's more like five to seven years from now in terms of the valuation it doesn't happen overnight at 25 times where it's trading now that's historically extraordinary expensive, understanding that they have the new revenue. >> it's got to happen. but you know what else has to happen apple has to. >> back up, back up. why do you say it's going to happen. >> i understand tfld. >> which does it got to happen. >> i'm not saying it has to get a netflix mums but it has to get a larger multiple

on a failed attempt to go public. so softbank took ownership of wework. just a fraction of its peak valuation. wework declined to comment. >>> disneys notched an impressive 10 million subscribers after its streaming loss. it did not say how many were from verizon subscribers. disney-plus launches in the u.k., germany, france, italy and spain on march 31st. >>> while you were sleeping, late night, as you might imagine, was focused on impeachment. >> are you a member of the gop? tired of all of the damni ining testimony you don't want to hear? introduci introducing bose fact cancelling headphones. place the headphones on a digit. insert them. >> i thought the impeachment thing would go away, like a common cold or a second wife. and here we are. worse, you can't even get the truth from shows like fox and friende friendemies. today's hearings had me on the edge of my seat, like when rudy giuliani goes on fox news. >> people in the nation's capital got an early start. restaurants and bars in d.c. opened up as early as 9:30 this morning for impeachment viewing parties. you know, just what the founding fathers always dreamed of. that had

will evaporate and verizon offering one year free as well, that skews the numbers, this is eye-opening. stuart: what this has done is move the disney company to a valuationalmost a quarter trillion dollars. lauren: yeah. stuart: a lot of that is on the streaming development which investors think they will go a long way, interesting stuff. other stuff to look at this morning. check cisco, they gave a not so rosy forecast, that's hurting them down 5 and a half percent. chip maker, up $209 a share, overall, though, we are going down just a little at the opening bell this morning, all 3 indicators down 40 for the dow, 6 for the s&p, down for 20 for the nasdaq and then this professor, actually he's an instructor at berkeley, he called americans in flyover people bad people, i will tell you how that reminds me of hillary clinton's deplorable speech, we don't like that,i will editorialize about it at 10:00 o'clock. record-breaking low temperatures, that's bombing for someone like sue atkins, star of national geographics of life below zero, i can't get enough of, the star is with us in the studio later this hour. neither one of the democrats star witnesses at th

valuation on my sales. >>> after the break, baby yoda has quickly become a viral standout from disney's new series 'lten, the streaming wars have wel ll you the name they say could out last the competition, when we return so servicenow put your workflows in the cloud, huh? mm-hm. your employees must love you. thank you. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you. whai tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. doprevagen is the number oneild mempharmacist-recommendeding? me

disney is by far the consensus favorite one you have to own. maybe it is suffering a bit in comparison to that if you look at disney's valuation, they're giving themdit for figuring this whole thing out. >> people are chasing disruption that's very much momentum. >> would you buy the tesla truck or stock >> i would probably lean more into the stock but i think, you know, there's obviously a view there that battery technology needs to come through. >> david, my favorite thing you said is cut the mustard. do you know the origin >> i don't i had to look it up. >> it's first used by o henry in the heart of the west. i looked around and found a proposition that exactly cut the mustard. >> i live right around from o henry's favorite tavern. >> it soaked into your brain. >> good to see you. >> happy thanksgiving to you both, too. >>> when we come back, a powerful storm will be bringing rain, snow, strong winds from coast to coast this thanksgiving your holiday forecast is next. >>> as we head into the busiest travel days this year, check out airline stocks over the last six months best performer, looks like southwest and united are neck and neck there up

valuations nearly 50 pshsz high50% higher than the s&p 500. are we paying too much mike santoli is here to answer that question. disney, starbucks -- >> there's a little sub class of global growth stocks each one of them over the past several years has had a scare or some kind of bear case that they were going to be disrupted whether it was amazon for walmart, netflix for disney. you can go down the list nike seemed to be outmaneuvered by adidas, selling through amazon, starbucks couldn't handle the online ordering volume i think what the market has done is said they have kind of cleared themselves of that big threat to their strategy and they got lots of buy-in by investors. all these stocks trade 25 times forward earnings, give or take w last week was emblematic of how you got this excitement over the idea that we can have this beloved global brand like disney doing the right thing and we don't care that it's not an earnings story for two years talking about flat earnings. walmart, talking about low single digit earnings growth everyone thinks they have it figured out. nike and starbucks are more classically traditional growth stories. people are paying up a lot to have them show it. so, all

the s&p 500 their valuations have gone to a similar zone to a premium of the zone between 25 and 29 times forward earnings and what maybe unifies the stories last week's news on disney earnings is the market decided that these companies once faced the threat of disruption and disrupted themselves, own the consumer relationships, to essentially go digital in their own ways starbucks was never quite facing an outside threat as much but the fact that hthey have one of the biggest electronic payment apps showing you they belong in here the market saying they're winners l winners long term. disease the market have this right? paying up too much with too much credit for success in a hurry? you saw walmart to peak and trade lower and then disney off the boil a little bit after the pop on the announcement to sign a 10 million new subscribers to disney plus. >> mike? >> it's a broader discussion and we're joined by two guests guys, happy monday good to see you. where are you on what the market's getting right here, specifically going into year end? >> we still like quality as a factor high return on equity. low debt to equity as a way of filtering through the stocks, some po

disney, walmart, nike. aside from the fact that they're all up more than 20% on a one-year basis, well outperforming the s&p 500, they all also have premium valuationsst a 40 or 50% premium to the market. the market is saying these companies have figured out the digital future in their respective businesses, i believe. so they're essentially saying they have the scale to make the investments. they fended offer a lot of the upstarts whether it's correct or not, it's also kind of hiding in some of the megacap names they feel a little bit defensive and people are willing to pay up for the quality of the global franchise as well as the current strategy, guys >> you know, mike, the question with that, the market has decided they do this and they know how -- they know and have figured this out but how fickle is the market when it comes to things like this >> that's exactly right. the market's preference could turn to we want to go back to the pure technology names. a lot of times they're not willing to put a heavy multiple on a business within an old legacy business and worry about the messiness of it if you think about ibm, nobody is valuing ibm's cloud