Blow to the worlds biggest tech company. Were going to start off with football fans breathing a sigh of relief ahead of Aaron Rodgers new york jets debut. Disney and charter inking a deal to end a blackout that was keeping espn and all of disneys cable linear channels blacked out for all spectrum customers in new york and around the country. Shares of both stocks higher today, but who came out on top in this deal . Cnbcs julia boorstins got the latest. Julia . Well, melissa, sources on both sides are describing this as a winwin. Disney and charter calling it tron t transformative, and gives new appeal to charter tvs business, wheel at the same time, increasing the reach of disney with ads. And also, disneys payment for that app. Now, disney ad supported tier will be included in spectrum packages, what they call a wholesale arrangement for all of spectrums video subscribers. Espn will be included spectrum tv select plus video packages. When espn plan ching its direct to consumer flagship service, it will be made available to spectrum tv select customers, as well. Plus, charter says it will sell all of disneys direct to Consumer Services to its broadbandonly users. Now, the buy rating on disney, writing, quote, we believe that todays deal reflects a todayoff from linear economics, but to sixes both disney and charter to drive value amid the shift toward streaming in a digital future. So, there are some signs of the bundle certainly getting skinnier, charter is dropping some of does knees smaller channels, including freeform and disney xd, but for but the benefit for disney is far outweighing that, because theyre going to get new come sensation for disney , and that reach increases the potential for that streaming ad business. Meanwhile, charter has a new po, all the extra access to apps, in order to hold onto its pay tv subscribers and retain that part of its business. Melissa . All right, julia, thank you. Julia boorstin. Is there really a winwin situation, tim, as a shareshoulder of disney, i ask you . Its really hard for me to understand this. On some level, it and the joernl coined this a referendum on the future of tv, and whether this really helps define that, it seems like disney had major, major concessions here in terms of their ability to control their product. And it was always supposed to be about dtc, the problem is, if you dont control the pipes in a lot of the cases, this is where you end up. It does seem to me, we learned a couple things. Espn probably more valuable than it seemed yesterday. I believe. Thats one of the outcomes here. Espn appears to be more like garbage than it did yesterday. So, it is a case where i just think disney maybe finds that the broader distribution is the more profitable model and it kind of gets back to the new form of tv, i mean, whether its netflix that started this with an adsupported tier, by the way, very positive for netflix, so, if you think about it, maybe this is just linear tv 2. 0, i mean its obviously not, but it feels like people are ready to watch tv with ads and adsupported model and thats where everybody wants to be again. Its six of one, half dozen of another. Its not clear right now who won. I think its sort of winwin. When i look at the alternative, it was bad to disaster. Bad for charter, not a disaster, though, but for disney, i think it would have been a disaster, actually. So that we didnt end up there, i do think thats better for each side, but if you look at the stocks reaction, charter felt happier about the deal than disney shareholders. But all right, this wasnt the break that we were expecting, the huge change, but its a change, and its its not luke its like its over. The dynamics are going to continue. Yeah. I dont know if its a winwin. It seems like 11th hour, needed to get something done, i mean, the way disney traded today, it wasnt particularly all that inspiring. It opens on the highs, basically closes, not on the lows, but around the lows. No bounce whatsoever. Didnt trade a lot of volume. Traded 25 million shares today, typically trades 15. Maybe if it traded 65, 70, closed on a high, wed have a conversation. Charter is interesting. 11 times next years numbers. They speak at a conference on the 13th. This stock, even with a 30 bounce over the last year or so, is still cut in half from its alltime high. At least you can make, i think, a case that theres some momentum theres no momentum behind disney. I go back a year ago, it was a conference, and he said linear tv is dead, he was praising netflix. We had julia on that day, i think, talking about it on the show, so, its interesting when tim just said, its about the pipes, again, its about distribution, and look at the outperformance of a comcast, a charter, that thing. So, the jury is still out on here. I agree with espn. I mean, that is the thing. That is the thing that they are going to quickly move to monetize. And i think its interesting, we talked about it a few weeks ago, they brought back a couple of the guys that were instrumental in, you know, helping him prior to his, you know, leaving the company a few years ago to figure this thing out. And i think this is going to be a really important thing that this move, whatever they do, i think, really determines the future of this ecocompany as a media company. I think it does underscore the weakness in terms of the offerings on espn . You as a viewer were looking to watch u. S. Open on espn and were disappointed yeah, i mean so, what is this package serving . And where is disneys strength in the streaming business . It cant kill off linear tv, not that it wants to, but that seemed to be sort of the inevitability, right, that people were jumping to, this is going to be eventually the march to the end of linear tv. Hasnt really done that. Theres a place for both, at least, for now. Yeah, it was a tough weekend in my house for a lot of different reasons. Im not even sure there is football in new york after last night, so lets be clear. I just think that the fact that were talking about a Spectrum Plus bundle thats going to include, you know content that disney i mean, on some level, that sounds really bullish. It sounds like and the fact that were going back to an adsupported model when dtc and streaming, were going to have pricing power, was supposed to be the model. And thats something that kind of brings you back to the legacy players. So, i realize that the content that disney has, at least, i think the sports content is worth paying for, i want it, i have to make sure i have it in the right vehicle. I dont need the underwater basket weaving that comes on their dedicated offering. So, sorry, im a little frustrated. Im frustrated with the stock, im frustrated with sports, and i dont think we know right now, other than we know that charter seems like they got what they wanted. Right. Dont laugh at me, come on. Is that on the ocho . When they have the crazy can you throw up a 10, 15year chart of disney . Its truly, absolutely astounding. Its flirting with those march 2020 lows, right, where it basically everything was being thrown out then and you have to go all the way back, 13, 14, but we started talking about the streaming capabilities, we talked about how did knee wanted to capture a little bit of the netflix pixie dust and making content moves, making some Digital Technology moves, that sort of thing, that stock went from 50 to 100, a year, year and a half or so. And if you look at it, its right back, you know, below those levels here. And really feels like theres the streaming multiple was something that disney got in the early days of announcing disney . And they were getting something like, a lot of analysts on the street were doing the hybrid multiple. They value the parks at one thing and then they put a revenue multiple on the streaming business, but that revenue multiple, the street used to be between eight to ten times the streaming number and layer in the multiple on parks. Now theyre at four times, if im just looking at jpmorgans report here, and i think thats fair. It was the growth they were getting the benefit from. Netflix is not about the growth, its really about the profitability and the free cash flow. And thiss something thats extraordinary and what makes, again, their streaming business very different. Getting back to the stock reaction, that is the case, do you think any part of the valuation changed based on this deal . Because if the answer is no, its no surprise that disney stock barely moved. I think the market answered that question today. I dont think in my opinion, i dont think theyre rewarding it at all. I dont think it has i dont think it means, obviously it means something. In terms of the stock, in terms of traders, they dont seem to care about this. Its trading, to me, like this wants to have a 75 handle at some point, and then you have a day where it trades maybe 100 million shares and washes everybody out and you have your capitulation moment. For more on the deal, lets bring in rich greenfield of light shed partners. Hes on the fast line for us tonight. Ill pose the same question to you, rich. Is this really winwin . Or is there really a winner here . I mean, look, disney had to do this deal, melissa. Like, when you look at the existential risk to espn from a permanent drop, and you have to give it to chris winfrey, he went to he really pushed harder than weve seen anyone push on disney and on espn. But iger, look. Iger is an amazing negotiator and he got a deal done. Did charter get everything they want . No, i dont think charter got everything they want. They certainly wanted lower penetration requirements for espn in terms of packaging, but look, they got doisney being included at a low wholesale rate. For charter subscribers, the viewers watching fast money right now, disney caved on that, and thats not something disney wanted to do, heading into this negotiation. So, i think you have to give charter the win, but its not as big of a win as charter would have liked, and disney avoids the collapse of espn. Did the nfl bully these guys into coming to a deal . I mean, thats a really good question, melissa. I dont know. Id say every Sports League, disney is wedded to every Sports League is wedded to espn, or the vast majority are wedded to espn, not to mention things like fc, as well. Everybody wants espn to survive. I dont think espn was viable if it lost all charters 14 million subscribers. I dont think you can recover from that. So, i think this gets you to survive. Obviously, theres still going to be significant financial headwinds. I mean, i would look at their you had two doors for espn. Bad and worse. Bad was accepting a deal you probably didnt want to take, worse was not being carried at all, and having to suffer through stepup in sports right season, so, this is better than the worst case scenario, but i dont think so, the reason why you guys were talking about the stock rs reaction this is t a clear, like, obvious huge win for walt disney. This is doing what they need to do to continue to, you know, have an jongoing linear busines, theres still real challenges how they transition espn into a viable dtc business. Im talking the true core espn going fully dtc, thats not an easy transition to pull off. Rich, its karen. How do you think this what do you think the future holds for them, Warner Brothers discovery, paramount, how do you think those play out . Karen, you are asking the most important question out of all of this today as she does. Is this a new paradigm . Is this the new construct in which all programmers, meaning media companies, i dont care if its your company, nbc universal, paramount, does everybody now, when theyre doing a deal for Linear Cable Networks or Broadcasting Cable net works, do you have to include your streaming at a wholesale rate as part of that bundle . Thats obviously something that never happened before, charter has deals coming up with several other big media companies. I believe all of them are going to have to do this. Thats going to be cable safe now, given that disney just agreed to it. And does this become what comcast does if you think about comcast, they used to include peacock as part of your video package. They started making you pay for it. I wonder if that holds up if its peacock, paramount plus, everybody who subscribes to linear tv packages just get all of the streaming services, and that really changes the future of streaming, its more about the bundle again, funny enough, its more about the bundle and less about actually being dtc. Maybe thats just recognition dtc is really hard and most companies are not cut out to compete with netflix. That makes it seem like t these, you know, streaming services will be offered more adsupported, if that is the case, if theyre going to be offered free within the bundle, but it could be an opportunity for people to sample this and say, you know what, im willing to pay for it without ads . Look, i think thats absolutely true. And i think one of the questions that i have is, when you think about the adsupported, do people like do people want to upgrade and pay more to get rid of the ads . I assume charter will offer i dont know this, but i would guess theres, like, a, hey, get it for free, but you pay extra 4, 5 to get rid of the ads thats the way beepeacock first launched. Theres a lot in process, but the good news for the consumer, if you were paying the big bundle, because youre a diehard sports fan, you are now getting more stuff as part of that, your price is obviously going to keep going up, which is a negative, but at least you are not having to say, hey, im paying for Disney Channel in the bundle and paying for disney out of the bundle, and what happens with hulu and hulu probably gets included with disney , it does seem to be a net positive for consumers, as you look at it, forgetting what it means for the companies, and im really cup use whether every other company has to follow suit now. Rich, thank you for phoning in. Rich greenfield. Guy . How do you think about this . Disney, to me, you wait for the capitulation, you havent seen it yet. Charter seems to have some tailwinds. I think it has some room to the upside. But tim mentioned earlier, netflix is the clear winner, still. Its thr s netflixs world pare those teams . Play the bills, buddy. As disappointed as i am today, enjoy it while it lasts, jets fabs. Why is disney not a value stock . Debt, for one thing, right . I mean, thats something in common with bothWarner Brothers and paramount, debt. Its interesting that tim is so frustrated over the weekend, i know it wasnt just the giants. Yeah. Some of this stuff, its getting its getting really complicated, okay . So, it used to be, you sign up with spectrum, you got your cable, you got your internet, you got your line, they put a w box in there and you have the channels. Now, you have internet, so, heres what i do. I have youtube tv and the red zone we have a lot more access to cool stuff that we couldnt get before. If you wanted the directv, you know, all access plan for nfl, but then you have to start picking off all these things. Sounds complicated. A lot more complicated than they want to get back to the pund m. It really is. Somebodys going to bundle it. Its the streaming plus bundle with an adsupport ed model, which is the same thing when i watch cable tv. Theres three things i want to watch, cnbc, espn, and news. And thats it, so sometimes you walk into a new york city diner, its 12 pages long on the menu. Its hard to make the decision. Its hard to do. Guy still gets a steak. You went down the road. I know those menus. Hot open roast beef, corn if they have it what does it mean . Gravy on top. Thats not on every menu. Every menu. Stop it, tim. You greasy spoon in your neighborhood. Chocolate shake. We have a news alert, back to news, on u. P. S. The Company Announcing financial details of its contract with the teamsters union. Frank hollands got the details. Hey, frank. Hey, melissa. Details just crossed. Important to note, shares have fallen since july 25th when the teamsters announced the deal with u. P. S. That would be ratified to avoid the costliest strike in the u. S. In the last 100 years. Today, as you mentioned, u. P. S. Released their take on the financial details. We sat down exclusively with ceo carol tome. Its not a 30 billion deal. Its a great deal for our people. Its a great deal for all the stake holders. When i look at the economics of the teamsters deal, compounded annual growth rate of that deal is 3. 3 . To put that in perspective, the yield on the fiveyear treasury today is 4. 4 . And even if you look at the historical average of the fiveyear treasury, its 3. 7 . So, we came in a number that was under a fiveyear treasury yield. Thats pretty good. All right, we did ask, again, but carol would not release the exact cost of the teamsters contract, however, u. P. S. Said that 46 of the cost of the contract would be born out in the first 12 months of that deal. And tomorrow, worldwide exchange, well have the full interview with carol tome, on the teamsters deal, the holiday peak, and a. I. And Machine Learning in their operations. Thats tomorrow. Melissa, back to you. Frank, thank you. Frank holland. Surprise to you, karen . I mean, i didnt know the numbers would be exactly. I guess its a little bit better than i thought. I like u. P. S. I like carol tome. Very good she said, we will not have a strike. Said that way before, maybe she gave up some negotiating power, but i think its better overall. Im a huge marisa tomei fan, spelling is different. Go back to february of 21, this stock has bounced from that level. You have something to trade against. Valuation is okay. The stock has gotten whacked. This might be sort of a catalyst for the stock to trade higher. We have big Union Contracts to discuss, and so, you know, im not saying maybe apples to oranges, but they noir. Coming up, were watching oracle in the afterhours session. That stocks on the move after reporting results. Bring you the details from the quarter next. Plus, diamond not banking on banks. Why jpmorgans ceo isnt so optimistic about his own seconder to. Dont go anywhere. Fast money is back in two. Ai has the power to generate solutions. But if its using unverified data, it could generate problems. Your business doesnt just need ai, it needs the right ai for your business. Introducing watsonx a platform designed to multiply output by tailoring ai to your needs. When you watsonx your business, you can train, tune and deploy ai, all with your trusted data. Lets create the right ai for your business. With watsonx. Ibm. Lets create. sirens [due at target in 5 ] copy that. Make a hard left down the alley. Networks got you covered. [please confirm requesting backup. ] changing route. Go. Roadblock ahead. Back up, back up. Reverse reverse next level moments, were 30 seconds out. Need the next level network. [north corridor, hurry ] coming through or 3, lets go. The network more businesses choose. Transplant received. At t business. The power goes out and we still have wifi to do our homework. And thats a good thing . Great in my book who are you . No power . No problem. Introducing stormready wifi. Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. Welcome back to fast money. Weve got an earnings alert for you on oracle. Shares at afterhours lows after the companys report. Lets get to Kristina Partsinevelos for more. Oracles push into the Cloud Business has many excited for this report, and exactly how oracles ceo started the earnings call, pointing out that business, which is called oci, grew 66 . Thats less than last quarter. Oracle is still ways away from aws, microsoft azure. All came in lower than estimates and contributed to the slight revenue miss of 12. 4 billion. Oracles cto spoke about future growth, saying, quote, as of today, a. I. Development companies have signed contracts to purchase more than 4 million billion if capacity of oracles gen 2 cloud. For guidance, it was going on just as i came downstairs. I heard the ceo say that total q2 revenue should grow 3 to 5 . And that means a nongap eps should also increase about 1. 27 to 1. 31, this is lower than the 1. 33 adjusted estimate and why the stock just dropped and even more from that 4 negative level to now 8 lower. She talked about cap x spend being similar in fiscal 2024, but still, all of that information, not enough to get this stock up. Yeah. Kristina, thank you. Slowing growth in a key growth area at a time when the stock is up 55 year to date, guy. Right, exactly. Flip side of that coin is, valuations okay. Trades at a market multiple. If this was trading at 55 times next years and you have this number, id be like, not good, stock should be down 10 , 15 . This is a reasonable valuation, and by the way, cloud services, plus license, is now 77 of the revenues. I mentioned that, because thats highly visible recurring revenue, you should be rewarded for that, so there was a time when ibm used to trade at a huge multiple. Oracle is not enjoying that. The stocks had a huge run, but i think its overdone to the downside here. If you look at june, the gap there. The Company Reported and guided and talking about the great trends here. This is a company thats going to benefit off this, some of the growth rates they just had up there are kind of eyepopping, but the stocks rallied 15 in the last month. When you think about the multiple that guy is speaking to, its very expensive for this company that doesnt have the sort of scale that many of its competitors do, so, when larrys on there, i was looking at the press release also, he said, you know, is this one of the biggest, you know, technological shifts yeah, maybe. With an exclamation point, not a question mark. They have to speak this way, but the growth rates are not, if theyre decelerating. Thats why some of the companies that have these huge springs, you know, sold off a bit. The stocks up 100 in the last 12 calendar months. What do you want . And their last quarter, they were up 18 or so in terms of constant currency. And this was a pullback, but there was nothing bad here. I think youre buying the weakness, which is what guys saying. Theres a lot more fast money to come. Heres whats coming up next. Time to bank on banks . Not so fast. Even jamie dimon isnt too hot on the group right now. The details next. Plus, semis surge. Qualcomm landing a sweet deal with apple for the next few years. A chip check and the latest curveball being thrown at apple in china. Youre watching fast money, live from the Nasdaq Market site in times square. Wee ckig aerhirba rhtft ts. With comcast business. It is. Is it possible to use predictive monitoring to address operations issues . We can help with that. Can we provide health care virtually anywhere . We can help with that, too. 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. Its not just possible. Its happening. This thing, its making me get an ice bath again. What do you mean . These straps are mindblowing they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. And you are . Im an investor. In invesco qqq, a fund that gives me access to. Nasdaq 100 innovations like. Wearable training optimization tech. Uh, how long are you. Im done. Im okay. Hows the chicken . The prawns are delicious. Oh, i have a shellfish allergy. One prawn. Very good. Did i say chicken wrong . Tired of people not listening to what you want . Its truffle season ah thats okay. Never enough truffles. How much are they . Its a lot. Oh okay im good, that its like a priceless piece of art. Enjoy. Or when they sell you what they want . Yeah. The more we understand you, the better we can help you. Thats what u. S. Bank is for. Huge relief. Yeah. please dont go by harry casey, Richard Raymond finch ping please dont go please dont go please dont go please dont go dont goooooo dont go away please dont go welcome back to fast money. Jpmorgan Ceo Jamie Dimon had a hot take on the new capital requirementss that have been imposed on banks. Heres what he had to say. Honestly do they want banks to be investable again . I, you know look at my money, im not going to sell my stuff like that, i think were going to navigate it. I wouldnt be a big buyer of banks. Id be no better than equal weight, whatever you call it. Quite a chuckle. Speaking in new york earlier today. His comments come as big banks remain deep in the red for the year. Id love to call up the Jpmorgan Bank analysts to say what he has to say about jamies comments. What do you have to say . Well, if hes equal weight, i think he had about a billion two worth of stock, so, i dont know where the rest of it is, but i think, you know, its kind of in his its sort of talking his book, and that he wants to say to regulators, look , your making this business so difficult, thats going to be bad for the economy. And for a long time, he said, you know, you know, if he were a private credit lender, this would be great for him, because regulators are driving the business away. Nevertheless, im long jpmorgan. Of course you are. As you should be. But when he said listen, i get it, tongue in cheek to a point, but he chose to say it, as well. And hes saying a lot of the same things weve been saying for awhile. Regulation is coming. You should not be paying a premium for a lot of these stocks. On top of that, you wonder, what is going to be demand for credit Going Forward . What does the environment look like . I dont think its necessarily favorable for banks. Well, thats i think this is a credit discussion on the consumer level. Were throwing around numbers, we do it all the time, and some numbers i was looking at this points, in terms of debt, essentially debt servicing as a percentage of Household Income is now at a level its not been since june 2008. At 4. 3 of the take home salary, it starts to become an issue where you wonder banks are always, lets sell first, ask questions later, and as it relates to the consumer, as it relates to credit. C citibank, the fourth largest money center in the world, its trading as if theres a big, big problem. Ja jamies right. And if you look at global banks, european banks trade at 0. 6 , with about a 6 dividend yield. I think that looks pretty interesting, especially in a world with their Central Banks are having to raise rates. One might say that, you know, households, they built up a lot of savings during the pandemic, but the San Francisco fed says all the savings that will be exhausted by the end of this quarter, which is, by the way, just around the corner, so the note on strength of the consumer may not be there as Interest Rates continue higher. And the other thing is, what is the performance . What is the sentiment from jamie dimon, whose bank reacts very well relative to the other names we could announce right now. You look at the bkx, theyre trading where they were in midmarch when we were in the throes of a banking crisis that took down some very large banks, when you think about svb and signature and the like here. So, again, they probably signify if the company does get a bit tougher, if consumer gets worse, if unemployment goes higher, that we are probably going to finally have that recession that a lot of these same investment banks, their strategists, their economists, are putting the odds of a recession at under 20 . Goldman just put it at 15 . Thats what theyre telling me. Coming up, an apple a day givings qualcomm a big boost. Inking a deal with the tech gi giant. But its not all green for ap apple. We have the details from shanghai when fast money returns. Missed a most of fast . Catch us any time on the god. Follow the fast money podcast. Were back right after this. Let Innovation Refunds help with your erc tax refund so you can improve your business however you see fit. Rosie used part of her refund to build an outdoor patio. Clink dr. Marshall used part of his refund to give his practice a facelift. Emily used part of her refund to buy. I run a wax museum. Let Innovation Refunds help you get started on your erc tax refund. Stop waiting. Go to innovationrefunds. Com you really got the brows. Welcome back to fast money. Stocks kicking off the week in the green. The dow jumping 87 points. The s p up nearly 0. 7 . Eli lilly and novo nordisk hitting highs today, as the popularity of weight loss drugs boosts the group. And shares of rtx dropping. A manufacturing flaw with its engines will result in a 3 billion charge this quarter. The stock falling to its lowest level in over two years. And another down day for bitcoin. Briefly dipping below 25,000 for the First Time Since june. Qualcomm shares jumping almost 4 today. Chip maker extending its agreement with apple to provide 5g modems for smart phones into 2026. This as apple is set to unveil the iphone 15 tomorrow, which will reportedly have usbc charging ports. Big deal for qualcomm. That was always a question mark. Yes, its a big deal. The stock has been hammered over the last you look at the last six, nine months, down significantly. You think an announcement like this, given their valuation, this stock is up easy 5 , 10 . I dont think its a particularly good performance, so, good for qualcomm, but weve learned historically, its great to say apples a client, blah, blah, apple has a way of squeezing their suppliers. Yeah, 22 customer, so, its important. And a lot of folks looking at qualcomm and how they missed different trends over the last two years, that, you know, smartphones are really, really important for them. 40 of their business is samsung and apple combined. Yeah, it didnt trade particularly well. The one thing ill say about apple, with some of the china stuff, when you think about it, apple has been gaining share in the smartphone space in china, its got about 20 . Thats up pretty significantly over the last two years. And some of the nationalistic stuff, weve been talking about this. Really interesting. We said, going to be the last battle fought. The chinese came out so quickly and targeting apple shows they could get a lot more aggressive, but the flip side of this is, the theyre still number four in market share in china. This is a lesson were going to be talking about with evs and other Consumer Products with u. S. Names on them. Well, theres no question. The news last week was apple and it was whether folks at state enterprises could use the phone. Thats not the news. The news is huawei mate 60. Theyve been able to get around the 5g chip dynamics, and created a phone with a chip in it that allows them to do what they want. You look at android marketship for the last two months, theyve been stealing it. And huaweis taken a two to threepoint share rise in that time. So, i just think, youre going to continue to see this. It doesnt have to be apple being outlawed. I think we did the right job with that story last week. The state soes, that would be something massive. That was not the suggestion. The suggestion is, part of it was just sentiment. Part of it was the reality that apples devoted to much time, and the market share gains theyve made have been extraordinary, but at some point, i think the phones too expensive. Those people who work at the soes, they make a higher salary than other people who work in similar urban areas, so, thats really a demographic that one would think apple would want to keep, thats a demographic that would bile those higher priced phones, so its just sort of the tip of the iceberg, but this bundles up all of apples problems, which is really slowing Revenue Growth overall for their devices. Yeah, and a multiple that i think is just too high. So if this accelerating to the downside and gets sort of not just a, oh, government employees, but it gets broader and maybe a little bit more than a suggestion, that would be terrible news. Doesnt seem to be priced in. One thing. Uhhuh. You can poopoo this launch tomorrow, but guy, usbc port . I love those. Thats my favorite port. Much better than the b or the a. Coming out with the usbc port. I can hardly contain it. Take a look at me. For those of you on radio, its just a staire. More trouble for apple, a surge of social media posts over the weekend drumming up support for huawei over apple. So, what could the seemingly nationalistic push mean for the iphone makers business in china . Eunice yoon has that story. Eunice . Reporter thank you so mu, melissa. Well, the hash tag thats most popular is huawei rockets, which 710 million views. Now, the argument is that Huawei Technology must be taking off, now that the u. S. Government is looking into whether or not huawei phones had breached u. S. Export controls. State media, as well as Chinese Media more broadly, has been fueling this nationalism. State tv posted a clip that claims despite the u. S. s extreme bullying, huawei has risen. It is promoting the china chip, china heart. Another outlet says the mate 60 is a pearl harbor wakeup call for the united states. Polls are pitting the huawei phones against the iphone 15. This one asks, would you give up your iphone now that huawei is back . Most answers tend to be prohuawei. Now, what we havent seen is much discussion about the reported iphone restrictions at government entities. In fact, the government has yet to acknowledge blatantly any of these notices. Melissa . Eunice, youve been there for awhile, youve seen these spurts of nationalism on social media before against other u. S. Brands. And im wondering how this sort of compares, in your view. Reporter well, its bigger in that its targeting apple, which a lot of people thought that wouldnt really be touched very much, just because it does, in fact, as you guys were discussing, employ a lot of people. And also people do love the phones. And i think thats whats kind of interesting here, despite this nationalism surge that were seeing online, its difficult to say whether or not that actually would translate into sales. In fact, there are some people who are commenting and kind of pointing it out a little bit, before some of the comments disappeared, where they were saying, you know, theres these polls, all the responses are prohuawei, but why are the sales proapple . Eunice, thank you. Eunice yoon in shanghai for us tonight. Just quickly, it doesnt have to be an outright ban. It can be whats known as a shadow ban, implication by the Chinese Government andt, and se, if you think about whether apple is in this country, huawei is that National Champion company, at least perception chl. And the fact this is a phone that is a much more affordable price point with technology that is being applauded. Its actually this is breakthrough innovation without having to use the same technology to get you 5 g. Weve been talking about nvidia, where the orders have been coming in, and i just think if way roy and the other chip makers over there are able to replicate some of the advances weve heard, i think that these stocks are trading way too expensive, i mean, like the nvidia thing, so, to me, i dont know. This is one that i still confounds me. Coming up, just another merger monday. Delicious details on a billion dollar junk food acquisition. Should you snack on these stoc s . Traders are hungry for gains. Oh, boy. And dojo the mojo tesla needs here . That and more when faston tus. Mey this is dr. Arnold t. Petsworth, hes the owner of petsworth vetworld. Business was steady, but then an influx of new fourlegged friends changed everything. Dr. Petsworth welcomed these new patients. The only problem . More appointments meant he needed more space. Thats when dr. Petsworth turned to his American Express business card, which offers flexible spending limits that adapt with his business. He used his card to furnish a new exam room, and everyone was happy. Built for dr. Petsworth business. Built for your business. Amex business. What do you see on the horizon . Built for your business. Uncertainty . Or opportunity. Whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined Risk Management are needed most. Drawing on deep expertise across the worlds public and private markets in pursuit of longterm returns. Pgim. Our investments shape tomorrow today. Welcome back to fast money. Huge boost for tesla today. Shares seeing their best day since january, as the super computer dojo could charge teslas valuation by 500 billion. Dojo is the Technology Behind teslas autonomous driving systems. Analysts upgrading the stock to overweight and rising the price target to 400 bucks. Thats more than 40 higher than todays close. What do you make of this so, its 850 billion 62 so, add another 62 , right . Now its a 1. 5 and listen, adam jonas is great, it was his note, good for him, the stock rallied, i get it. This isnt happening, though, next quarter, its not happening, probably, a year from now. And when you go back and look at tesla, its in my opinion, for the next couple quarters, its about margins. And last quarter margins, i think, were 17. 5 . A lot of people thought that was going to be the trough level for that. I think historic or legacy automakers are about 16 . God forbid on october 18thish when they report that number 17 or lower. This stock is way too expensive at these levels given those parameters. It kind of felt like this came out because the price target was behind the stock. And there was a need to justify raising it to 400. It did. I dont know that he needed to, but it is interesting that you Start Talking about a 10 trillion tam. And when are we talking about this . And this has always been one of my biggest problems with tesla, when it was a 50 billion tam. And so, you know, thats the dynamic. And i think, again, the idea is they have and this is his words, an asimilarilar asymmetr advantage. Theyre crushing people left and right. Some of the dynamics, when were doing valuations that go out to 2030, but god forbid 2040, thats the problem here. So, look. Hes a bright guy, hes been hes at times been very ahead of this trade and looked like the target was actually behind. I dont know, 78, 80 times earnings, somethings in there for that already. You would think. I dont know, so, to me, this was just the collective data of all of their cars on the road that theyve had for years, they talk about how many million miles they have, asimymmetric advantage they have. I believe that, but i just find this difficult to see also. But i missed the whole wagon. Meantime, adobe reporting thursday. Increasing a. I. Fervor around the stock. Options traders are betting the hype will translate into gains when results cross the wire. So, lets go to mike khouw for that. Mike . Yeah, it traded about 1. 5 times its average daily call volume. The Options Market is implying a move of about 5 after they report. Thats in line to with their historic average. The busiest contracts were the september 542. 5 calls. Those expire at the end of this week. Over 2,200 of them t. A bet that the stock will trade higher following earnings. All right, thank you, mike. Mike khouw. For more options action, tune into the full show that is friday, 5 30 p. M. Eastern time. Coming up, twinkies getting a little sweeter today, as the snack food brands parent innings a megamerger deal. Could the weight loss drug craze take a little sugar out of the e t k stk . Thulmate lunchbox trade is ahead. sirens [due at target in 5 ] copy that. Make a hard left down the alley. Networks got you covered. [please confirm requesting backup. ] changing route. Go. Roadblock ahead. Back up, back up. Reverse reverse next level moments, were 30 seconds out. Need the next level network. [north corridor, hurry ] coming through or 3, lets go. The network more businesses choose. Transplant received. At t business. The power goes out and we still have wifi to do our homework. And thats a good thing . Great in my book who are you . No power . No problem. Introducing stormready wifi. Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. Welcome back to fast money. Jm smucker adding twinkies, hohos excuse me . I dont think ive said that on air. Acquiring hostess. Meantime, an lists at Morgan Stanley out with a note, outlining risks that Widespread Adoption of weight loss drugs pose toll p packaged food maker. Does that take some sweetness out of this deal . Tim, you love your hoho. Easy. Though, i mean id like to do a would you rather on the ring ding versus the ding dong. Its not something i traffic in. Whether hostess suffers from this or not, talk about one of the great deals of all time, when we were on the show that night and we were talking about things like yodels and things like that, so i dont know, at this point, seems like hostess just rang the bell. Sea, seem yeah, seem like a for a deem. My favorite smuckers deal was the acquisition of jif peanut butter. Skippy anyone ever call you skippy . I actually is there some i like smuckers here. Stock got whacked, i get it, people said they overpaid, i get that. But its been a great brand, and valuation is still reasonable. So, i think on the sell off sjm is buyable. Tims going to put this in the cannabis. Munchies. If you have, like, the cannabis and whats going on here, i mean, like it could be part of the cannabis ecosystem. Listen, kids, dont do drugs, stay in school, but it works in that etf. Marijuana is legal. I think this notion that if people reduce the number of calories they consume, they reduce the number of meals and what does it do to coke and pepsi . Thats sort of the bottom line. Right. Thinking, will there be a twin can i we did this with beyond meat, though. Weve done this with a lot of the, some of the wellness yes, i hear you. But so do we two straight to coke and pepsi . Because, i mean, what look at cash ca carb carb carbonated soft drin ks. Right. More fast money in two. Dad, we got this. We got this. We got this. We got this. We got this. Yay we got this. We got this life is for living. We got this lets partner for all of it. Edward jones every day, businesses everywhere are asking lets partner for all of it. Is it possible . With comcast business. It is. Is it possible to use predictive monitoring to address operations issues . We can help with that. Can we provide health care virtually anywhere . We can help with that, too. 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. Its not just possible. Its happening. At Morgan Stanley, old school hard work meets bold new thinking. At 87 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. Old school grit. New world ideas. Morgan stanley. Welcome back to fast money. Today marks 22 years since the september 11th attacks on america, as we leave you tonight, we want to remember all those who perished on that tragic day, nearly 3,000 people lost their lives on 9 11 here in new york city, the pentagon, and in shanksville, pennsylvania, where flight 93 crashed. 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