Covid surges to its highest level since 2018 disney jumping after hours julia . Better than expected top and bottom line results. Ending the quarter with 73 million subscribers. The company also announcing it will forego its next semiannual dividend and thats due to the cause of coronavirus. Disney shares giving up some of those gains, now about 3. 5 . The ceo saying in the call going on right now, the disney direct to consumer business is its bright spot. The growth of disney plus speaks volumes about the strength of our ip, our unparallel granting franchises and creators, all part of the disney difference that sets us apart from everyone else and when you look across our full suite of streaming services, we have exceeded 120 million paid subscriptions worldwide. Meanwhile, a smaller than expected loss. Losing 2. 4 billion due to covid, but down from the 3. 5 billion. The Company Also Reports that they are reassured by booking trends at Walt Disney World and urging california to allow its disneyland resorts to reopen saying people are showing a willingness to visit the parks and they are able to operate them safely. Julia, thank you. We mentioned after hours high. The dividend was due january 1. What did you make of this move is it weiss . What did you make of this quarter . What was the number you wanted to hear out of disney we wanted to hear about disney plus they grew about 22 . Around content versus distribution and better aligning entertainment, studio and sports with the Distribution Channels to let the consumer determine where these things were going to live this is what the market was wanting to see and something that wasnt born out of covid and the fact that studios were not open, so they had to send mulan through their own channels i think this may be where they are going. The most important dynamic is disney plus. I dont care they suspended the dividend i thought these numbers were solid. The fact that the parks experience was less bad, thats not why you are owning disney right now. Mulan was an amazing experiment in that they charged users to watch that movie on top of the subscription fee which i know you shelled out, guy. Its on a loop in my house. I hope they dont catch me watching it for the 73rd time. No, i havent been watching that movie and wont be paying for it i am not their target audience disney is in the sweet spot visavis the disney plus numbers. By the way, that was 50 better than the street was looking for. There is a lot to like here. What you dont like and have to struggle with is valuation even if you doubled that to 5 a share which is probably bestcase scenario, you are still talking about a stock trading at 28 times those numbers which is expensive by disney numbers the market is trying to figure out how to give them a netflix type valuation thats what i think the market is struggling with at 142 a share. For a company transitioning its model, for a company that wants to be valued more like a netflix as opposed to the traditional disney, how do you make that adjustment and think about valuation in the out years . Like what google has done to me that would be one way to highlight that i think the dividend thing i want to address. I feel like they are doing the right thing for sure given these massive losses which are shocking given the rest of the business they have cover to do it the other thing is, remember, they have a lot of debt from 21st century fox, whatever they called it before they closed they do care about cash flow and dont need to put the dividend back to where it was it is not necessary lit a binary choice. Thats not a longterm plan. Pete, where do you stand . I thought it was a good quarter. Should disney have a little bit of netflix love, valuation that netflix has some, mel, absolutely, but i think you have to look back. Disney the brand people are champing at the bit people want to go back to the parks. They have had the closures and layoffs and all of the rest of it but they focused on the right area and been dealing with the whole Distribution Network and trying to get more content out there. I think they are doing everything right, but to guys point, when you look at this company and try to piece together what would be the right pe, i think you are getting towards its not there yet but you are getting at something that looks like a netflix valuation already based on where we are in the process. They will start making more money and more money, but the big question is when thats what we all are struggling with. At that point in time we will see some nice jumps, but until then i think it will remain a fairly volatile stock between 125 and 150. The subscribers are more than expected, but we have seen these Companies Pull forward if 73 million is what you are basing the disney valuation on, because thats a huge catalyst at this point, what do you think about the pull forward effect and whether or not that trajectory of subscriber ads will keep up . I am not worried about it Going Forward. This is a case guy mentioned either stay at home or reopening, maybe stay at home has pushed the disney plus offering isnt that what they wanted to do jam the channels now the Biggest Issue is that the studio, which has been a cash cow and feeding into contents this whole new model is about how do we take our content it has been an extraordinary run and something they have to think about. No, i want to see them grow faster again they are pulling forward those 2024 estimates we will keep you posted on any developments lets get to the market. Cases are surging nationwide 143,000 new infections wednesday. Major news within the past couple hours chicago issuing a stay at home advisory meaning residents should hunker down and only leave for work or their needs. It takes effect monday we saw a reaction. Dow dropping off, and s p in the red. A lot of this was giveback. Guy . I dont think the covid is taking anyone by surprise. We have been talking about it seemingly for months and months and things seem to be getting worse. I understand why the market would sell off on the back of that i think will ber rosss comments about by the way, in 2021, we have to focus on the deficit we havent heard from him for months and all of a sudden comments come out which i find fascinating. Two weeks ago nobody seemed to care i think the market took some of its cues from that as well i think pete would agree that vix traded down to 22ish the other day. The vix will probably vacillate between 22 and 32. I think we are trending up that way. It makes sense to me i am fascinated the market finally seemed to take its cues from covid, but i thought the will ber ross comments under the radar might have been a catalyst the vaccine volatility is unbelievable some days it seems to be in our favor and other days not clearly we have this big flip around everybody that was going away from growth and going towards value and suddenly that trade in a matter of days completely changed. Look how fast they started to turn on the industrials and financials and then suddenly that flips but i think its interesting, mel, to watch the continued want for certain names. I think it does come down to quality. Less about growth, less about some of the other categories if you have quality names, those names seem to be the ones that dont get hit as hard to the downside and the ones leading when we have upside. If you find quality names on the discount, more quality for all of us. Lets bring in stephanie. Great to have you with us. Great to be here. Would you agree with pete, trying to name this market move versus val ute or take your pick in terms of factors . I am in chicago and i am not happy about the news from mayor Laura Lightfoot about being locked down for 30 more days at least my kids school is still open so that is a blessing we saw monday and tuesday what we thought was a big rotation out of the tech names into the value names. We saw it perform on the s p and thought is that the way our investors are going. Then it flipped yesterday and today we got no love for anything we had the nasdaq leading the way for part of the way, but every s p sector closed in the red so nothing today its karen. Thanks for being on. Do you think if we got positive news out of moderna, which would be the most likely in the near term, that we would see value out of that trade . I think we could. S p got up to 36. 80 i am sorry 3645 on the cash monday. So interday record high on that news if we get news again i think some of the news might be baked in because we are close to alltime highs i am surprised at the resiliency of the market, but i think a lot of it is based on vaccine news there are 200plus companies at any minute we can hear from one of them, and i think we could get a repeat of mondays action, karen. Into great to speak with you, staffnee thank you for your time. Stephanie lewicky of Td AmeritradeTim Stephanie was saying we are going to get a vaccine at some point. You dont want to be short the market i am not suggesting she was saying that. Everything i hear is that we are going to get a vaccine monday was an important step towards that even if it wasnt the final stop what do you do now the most quality and this is petes term and i think it is even some value in the megacap tech names but after being beaten down and cyclicality. But google for sure is booming for the stay at home economy and the economy that is going to open back up this is why, no matter what we do, rotate value growth. We do this every night because this is what the market gives us every day. Thats not a trade that somebody is going to get shut off yes, there is an argument about valuations with amazon and even apple, but thats where quality lies and why those names never run too far. Yesterday we had a 14. 5 correction in the nasdaq and 11. 5 correction in the last three months we have full Team Coverage standing by to break down numbers. And bitcoin booms. Our bitcoin baller will be here with thoughts on howuc mh higher prices can go. There is a lot more fast money on the other side of this quick break. T today, knowing were prepared for tomorrow. Wow dad, do you think you overdid it maybe . I dont think so. What do you think, peanut . Nope. Honey, do you think we overdid it . Overdid what . See . We dont think so, son. Technically, grandparents cant overdo it. Its impossible. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Its time you make the rules. So join the 2 Million People who have switched to xfinity mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. Welcome back we have earnings alerts from cisco. Lets kick things off with dee cisco is down 20 yeartodate if it could hold on to current gains, it could cut the losses significantly. It suggests it is seeing recovery last week a rival reported it had a pickup Chuck Robbins said, and i quote here, i think this enterprise thing is going to be fine. When pressed, he said they are seeing a robust pipeline then they saw a pause in the last quarter as Many Companies reprioritized, and that will bring them back to cisco another thing investors might like is the new ceo scott herren pete, you like cisco . I do, because i must have made a mistake on friday i was holding calls, but i sold them so i no longer have a position. Its impressive, mel and i think the most impressive part is what they are seeing Going Forward in the guidance security was up about 6 other areas of the Company Hardware was down about 16 . Not everything looked that great, but they are seeing improvement. Oft times thats important to hear the last thing i would say about cisco is this. Look at their valuation levels we talk about value. How great is a value when we talk about a 12 or 14 pe forward. This is an inexpensive company that has a lot of room if the ceo they are bringing around can turn things around, this is an opportunity to go much higher. Karen, that is the point tim was making about the intersection of tech and value now she is saying that it is going to be fine it is last quarter the stock was 48 and they had a weak quarter. The stock was 36 maybe ten days ago. So down 25 . It has had the benefit of the bar being somewhat low, expectations, and also they were able to report a really good quarter. I agree with pete, it is cheap this is interesting and i like they have good momentum. Lets get to peleton. That stock is dropping after its first earnings report. Josh it is battling back it was down and now flipping into the green jeffre jeffreys says that it looks good he points out the average revenue was up 38 when i talked to brent stock was down about 5 . Expectations were super high and he is right. It is up about 60 off its october low. The cfo, coo are on the call, highlighting wins including a renewal with an Aerospace Customer they did not name that customer, but they say it reinforces their strength with founder. Two they say with the u. S. Army. And they also say they are also supporting the trump administrations warp speed. When you say going up 38 that means the diversity of Customer Base is broadening . Its not relying on a couple of key customers . Yeah. Some have expressed concern and what is acustomer concentratio risk that after 17 years a company has about 125 customers. They want to know how big the market is. Brent is one of those analysts he has a buy on this name. He points out this renewal but the street wants to see less elephant and more antelope that was vivid. I remember that. Guy, everybody wants more antelope the than elephants. The stock really ran into this quarter. Thats it it went from 9 to 17 seemingly in a Straight Line i think the epf scared people and then they said guidance is i thi okay in terms of obtuse, tim robbins used that word in shaw shank redemption and it didnt work for him and, two, nobody should be hunting elephants given the environment we find ourselves on, with them on the endangered list maybe pick up a couple of antelope, but no elephants so you are advocating hunting antelope on the show thats a first no, i am more advocating not hunting elephants. Tim i am glad we have gotten away from the animal kingdom. This is a company that will be there for a long time. Maybe it is a tighter Customer Base and maybe you want to see 60 of revenues from 20 of clients and people want to see more diversity but right now there is no one else who does it at a time when we are overpaying for software companies. They understood what they did for Research Customers and it went from 950 up peleton is trying to go positive in the after hours. 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Check out the cruise lines singing sinking. You are looking at the cruise ship a passenger on board reportedly affected with coronavirus left barbados there were 53 passengers the measures they were taking to prevent an outbreak. Every passenger had to be tested before even flying to barbados and getting onto the ship within three days and then tested again at the pier he went on to say passengers were not required to wear masks on board until two days into the trip this is a smaller cruise line, not publicly traded. But for anybody thinking about a cruise, they will say take a look at that one cruise that went off and there was a covid case on it we have been grappling with this for a long time it used to be airplanes and then people got eased back into that. It seems like we are hitting numbers tolerable. With the cruise ships this is something going on people are betting on something positive from a vaccine perspective. This is something not very pleasing for the rest of the big publicly tra