The Ceo Mark Parker is stepping down, replaced by nike board minneapolis and service now ceo john donaho, marker will be the executive chairman we heard from parker exclusively on the closing bell. We have spent a lot of time over many months working on succession planning. So this is this is not something that happens in a matter of weeks. So its really unrelated to oregon project or other issues this is about me on the board really wanting to make the build on the momentum weve got. Add the horsepower, accelerate against our strategy and do it while im here and in a position to lean in and make this as successful as possible parkers departure comes a the dame the crow kevin planning leaving his post in the new year as well. Both stort sporting stocks time to lays up and buy or sit on the sidelines. Can you just say that. I just did. Do you have ears i do. It hurt my ears. Youre sproech so much smarter than that time to lays up and buy. Ha ha. Based on this mr. Donaho on the board of nike for a while it will be seamless in that. There was a New York Times article october 1st not particularly flattering for the current ceo. I dont know although nike trades at a very high multiple, 27 times next years earnings, they seem impervious to whatever is going on in china. Because the china growth last quarter was outstanding. Despite valuation, despite this headline i think the stock can go higher. This is interesting because when the headline crossed i thought nike i would think it trades off on the news here it is higher by a . Ral is an interesting choice when you think about nike and why investors are excited about it and it commands the multiple he does. He spent six be with seven years at ebay donaho its something that he pushes way into this direct to consumer thing is real for them then you think about the tech background the last few years at service now. I think that investors should feel pretty decent about this. And the stock is basically unchanged or up a little bit right now. But i think the guys point that this is a stock trading at alltime highs, trades at a high multiple and they need to continue to do some things and not have the adverse effects we see other Consumer Brands right now having with global trade and the strong dollar and all that stuff. Theyve done a good job navigating that. But i agree with when youre a high flier like this, the multiple is really high, anything that can sort of you know, move the momentum a little bit would have an outsized reaction as the multiple comes down i think its great i just the supplies i guess of it, would make me a little bit concerned. But i wouldnt be a seller on this but i do think there is just a little bit of additional risk here that wasnt here early yesterday or hours ago. Nike trading guy alluded to nike 27 times ebita. I agree with you i agree with everyone. I think to steph back a bit on nike there was a premium for the ceo they had if you look at underarmor performance underperforming that should be more bullish you might see switching out of nike and buying the underarm armfer there is a pairs trade to be baud. Thats the next part of the question bear with me, guy. All right. If wei play the game of would you rather, yesterday, ua. A versus nike which would you choose when i pose the question to you today does that change. If we played yesterday what would you choose. This is a twopart question. Yes. Im honest which i always, as you know i would have said being nike without question. Nike has growth. Underarm armor would have lost the way if you fires me to play the game on this monday october 21st, nike. But now. On october 22nd. Things might be different. Not nike. On tuesday october 22nd what would you say. I think there can be respectfully to kevin plank who got upset at us years ago when we asked the legit question you founded the company are you the right person to take it forward. Relatively benign question but i understand why you get upset but in could be the relief underarmor has been waiting for. Playing tuesday october 2 ened, game changes like that its under armour thats a great youre trying to be nice to mr. Plank. He made a phenomenal to dow mri. The minute steph guess to nike mo am i talk bag steph curry its over put a fork in it putting a lieutenant in charge is not the thing that reinvig rates broegt ill say this about nike last september or last month stock broke out above 90, held that going to where. A hundred. Thats your theory. Just it will. And listen i think you know look at with your levels 90 is the level breaks down you dont wasnt o own it anymore. You hear ou the levels. I think the macro that might be the case because a lot of times technicals already have dissolved every other fundamental reason why the stock should be moving everything is in let chart anyway so i dont disagree with you but the headline risk right now is is favors the would you rather of the underarmor id rather be a buyer of that for the reasons guy stated versus being a buyer of nike at this level short term. Its more of a turn around story. The guy who is or will take over as ceo paskt frisk has been working with kevin plank working with the company there is a argument he is a continuation of the turn around. Maybe its in place enough to for plank to step aside and let him take over. Maybe i dont know im not exactly sure if you were to ask me to have played i would have said nike and nic fee both days. Okay. Just because object in motion with the momentum they have versus one without it, and i just i won be surprised if efrl years from now we see the return of kevin plank at underarm zbreer ala howard schultz. Ala schultz. Kevin plank at nike that would be a surprise. Yeah. I want to ask you a question. What is it 800 pound gorilla or elephant in the room. A large object that you cant. That noun is talking about. The 800 pound gorilla is the big. Whatever it is gorilla or elephant but its interesting on the same day within hours of each other, the ceos of two premier are stepping down. Is there something see, i dont believe in coincidence there aint no coincidence. I was waiting for in. I brought it up. Are you saying you think this could be a top in in space not necessarily a top but is there something out there that both see that are the the roast of us arent pay pehlinginging attention to to is it something with china trade deal it seems odd. Tough sledding ahead. That would be my initial reaction, yes, melissa. Yeah, i mean kind of cooky. It is. Whoa you saw that headline it was so silly you guys had the interview with kevin plank earlier. I thought it was did everyone know about this . Was it a contrived but the parker headline was extremely shocking on the same day. It makes you scratch your head and i dont believe in coincidence either. The other story is service now lead lutesing the ceo. Lading low now well cover that angle later in the show. Bit we hear from the incoming nike ceo and outgoing ceo tomorrow 6 00 p. M. Eastern on mad money. Up next snap chip oelts, Texas Instruments on the move after recording. Live from new york city, mh uc more fast money right after this but in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Liberty mutual customizes your car insurance, hmm. Exactly. So you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty liberty, liberty, liberty, liberty that could allow hackers devices into your home. Ys and like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Chipotle and snap on the move both reporting after the bell full Team Coverage josh lipton all over the snap earnings call. Kait rogers has the details op chip olts at headquarters. Chipotle out with a strong q 3 beating on metrics across the board. Same store sales increasing by 11 percent surpassing expectations for the 9. 3 increase this quarter. Digital of course halls been a big focus area for chipotle. Listen to ceo brian nicol. This quarter Digital Sales grew 88 year over year to 257 million and represented 18. 3 of sales during the seasonally slower summer quarter for digital. And were knocking on the door of digital becoming a billiondollar business. The companys Loyalty Program chip oelts rewards now at 7 million rewards members. Nycoles said the company is just scratching the surface the leveraged data they said they could open fewer restaurants this year. And as it accommodates those drive through lanes for skbhers. It says it will have about 60 lanes open this year and some of the 2019 openings could sthift to early 2020 because the location haves a longer construction sign. And the theory receive positive Customer Feedback and ner kass o blank blanc o in several markets. They are not rushing they want to get it right. Brian nycole sits down exclusively on the exchange 1 00 p. M. Et to recap the quarter. Effectively in terms of guide ens what they guided to Comp Store Sales at the high end of the previous range. Yes. Theyre not raising anything. No, no. Everything was basically right in line but sounded very positive and upbeat. There was confusion around the store openings basically they say they will shift to to 20 because the chip on thatten storing taking long. Kait rerng rogers at headquarter process is reiterating guidance enough for a stock doubling the past year. Probably not. But the move to the downside i havent been on the cmg store. This defies logic. But this is one you went to harvard theyre writing about this Harvard Business review sfla yeah. What a great journey. They have really turned it around in a short period of time now they have probably i dont know 30 eps growth trades at a huge multiple. The only knock in the quarter is what you mentioned maybe operating margin slight miss i got to tell you they cant sell the stock on the wak back of quiet are with the in line the stock is going higher again. Expect aches is high going in maybe was a buy the rumor sell the news because they started selling before the actual news came out top bowne 20 today but ran up 100, right i feel it was priced for perfection they delivered ner perfection only the slightest flaws in that its just for me too expensive to own i would have said that 2,090 ago. Everyone reporting in the space, domino was mcdonalds, darden everyone had trouble with comp i love when Digital Sales are up that made me buy dominos i love mcdonalds working on Digital Sales. I lo of it. Other people dont love it because they invest in Digital Sales for the future. Its true there is a capital expense so the whole element of growth but you need to invest in the winner i think you wait until this stock pulse back labts and id be a buyer on some weakness. Has to pull back more so than it has already. Mcdonalds . Mcdonalds . Mcdonalds i think is a buying opportunity because mcdonalds is a staple, a safety bet. When the market comes in mcdonalds usually goes up i think you get a gift in mcdonalds at this point. Lets move on look at snap, the stock lower after results. Lets get to josh lift lipton with the details. Just a dwik take from the street Raymond James has a hold on the name quick take on the results kessler saying on revenue fairly solid growth driven by north america. Europe he emphasized deaccelerates. U. S. And europe he characterized as disappointing on user growth. Just given the strength from snap in q 2. Guidance he resolved as in line with estimates co Evans Spiegel on the call saying 210 daily taf users there was a clear path to profitability. Talked about engagement saying each daily active ut user opening snapchat about 30 days on average investment areas he calls out scaling content and ar platforms. Back to you. Thanks, josh, snap, dan. Really interesting. Obviously we spent time this year talking about the Tech Companies nafb disruptive coming to the Public Markets using money. This is a Company Since the ipo in 2017 has been losing money. Theyre doing a billion 7 in sales this year. Growing at a good clip on the adjusted basis losing 300 million on a gap basis. A billion. The stock up 150 on the year. With that user growth they have it doesnt make sense to me. It comes down to the scarcity value horrible sentiment last year and horrible Stock Performance and maybe the company turned it around focused more on kroid. But again 19 billiondollar market cap using money and Everything Else is losing month a Disruptive Tech getting meerd. I right bought it right before the clo he is. Right before the close. Same on netflix and i felt terrible about the netflix trade immediately then great after 4 00 i dont feel great with the stock down 3 . But im okay a because the stock sold off 26 since september snap that is i think you get a bit of positioning. The street got incredibly bullish of late. I think youre seeing a bunch of analystists protect the name tomorrow so i think you stay in the trade. Room to 12. 5. I hear what steve and dan are saying you dont have the active user growth you need to justify the valuation. Yes it sold off significantly since the middle of august i think there is further room to the downside and Fourth Quarter revenue guidance was disappointing in my book. The thing thats interesting to me, in became an ip trying to be an ipo today i dont know it would have this valuation. It seems to me like that that wouldnt fly i dont know why i still dont know why. Its lower than its own ipo price. Its valued lower than what it originally came out. I think the market has done a good job i think danburys up the important point, the scarcity value of it then you have the opportunities internationally and in india you have ad dollars. I think its the guide that hit it because it beat it on every other metric whether or not niece are the right numbers or the numbers to grow, they beat estimates. Usually you see the stock run when they beat youre not seeing that now its all about the guide. Lets round the earning triskta Texas Instruments plunging after after hours following its report eric chemy at headquarters to breck it down. The stock down more than 9 in extended trading but off the worst levels of the after hours session. The chip maker missing on sales culling out particular weakness in communication equipment as total revenue decreased 11 versus last year another big reason for the drop is weak guidance for the next quarter. Texas instruments now forecasting eps of 91 cents to 1. 09 for the Fourth Quarter analystists expected 1. 28 interesting the weak guidance comes after recent encouraging signs of growth. The company just raised dividend by 17 in september. And data earlier this month showed pc shipments rose the Second Quarter in a row. Texas instruments downbeat the outweighing on amp intel micron appear nvidia. The last time Texas Instruments opened down more than 8 in reaction to earnings, october 2008 wow eric, thank you. Eric chemy you guys over on this side are saying a important earnings relate release. I think its hunlly important. Again im shocked that Texas Instruments was trading north of 130 with a 24 forward multiple with probably i dont know 9 eps growth in this environment with so many unknowns. This guidance im not surprised its not down more than it is it should be a lot lower its still expensive you can make an argument now that it might be more expensive now than it was two hours ago. So, again, i think texan is too rich this could be a bellwether name Going Forward. Todayed marketwise it was a weird day and this adds to that weirdness. I just say i know investors especially those tracking cyclical tech were folksed on on the name better part of 2019 the migrate giving guidance where they thought they were in the cycle a quarter ago they they were like three fiskts through true the downcycle thats why it broke out last quarter in july giving guidance you and i were sitting here saying why is it up 7 the guidance wasnt that good. The guidance for q 4 from 1. 28 to a dollars at pipd point is really bad when it comes in below like you say its back towards 100. We see the sentiment spill over the rest of the semispace smh, the etf tracking semi down a fracture pun issues a couple of bucks shy the 52week high. How much of this is with headline with trade woes how much is about backward looking concerns about commerce cutting orders base the on what they see or lack of dairt clarity Going Forward. This is above all moving averages and pierced all of them in a single stroke up 36 . You saying its momentum . No im saying i wonder how much Going Forward if we look at the terrible story backward looking but if the trade wars subside and you get more clarity, more confidence, is it more of an student Going Forward to buy a discounted stock versus something something else. How far do we extrap the late in terms of technology. I think we extrapolate. If for no other rhiannon than the run has been its gigantic so we often see a lot of times somebody misses everyone trades down somebody else misses everybody drads trades down on even though half thenous is out there already i won surprised to see that. Is there an trapino slayings between semis. Beyond semis . I dont know does this have affect on apple. Uts, industrial tech. Industrials this week which we hear from caterpillar, roper. Did texas just back to the point about we saw a lot of ordering ahead of tariffs that sort of thing earlier in the year that are the so of thing. Listen that could be one of the reasons why it got to where we were and those results werent that good here is the thing. If they are wrong on where th