Seeing its worst day since early april. Could it be signalling the end of one of the hottest trade sns we start with the story of the evening and its facebook. Crushing estimates. Firing on all slenders. The call getting underway. Is it a must own stock . Yeah, but theres a good chance by tomorrow about an hour into the day, im going to be out of it. I think this is a tremendous move. The options are telling us were looking for about a 9 move. If were somewhere north of 131, i think its time to take a few chips off the toibl table because maybe the Broader Market an the idea this stock has run into earnings, now extended the run well in the post. Which all makes sense. The numbers were phenomenal. Revenue beat. Earnings beat. The growth. When you look at the monthly active user growth, everything is strong and impressive. Mobile revs up 81 year over year. Revenues in general up 59. Maus, 1. 7 billion. Dale ali active users ripping. Ill give you another. You dont own it. We have been bull niche the stock for years now, but ill tell you, the metric that stuck out to me operating margins. 58. 5 . I think the street was like 54 . So on every metric, theyre blowing away. Pete mentions taking profits into this number. Probably not a bad idea. People will its been the wrong argument for the last six to nine months. Can it pull back . Absolutely. I think facebook will do this. How much better can this story get . . Thats the debate that needs to be had. Thaf crushed it. The stock is doing incredibly well. How much better can this story get . I think theres a ways to run. I think the tok at 131 or where ever it is right now is better here. With this information on this quarter. Than it was today at 122 or 23. I mean, the magnitude of this beat, the acceleration of this engine at facebook is phenomenal. So if you look at on every metric as pete and you guys said, its really fantastic and to be able to do that when youre already coming off big number, i dont think this moment is the peak. I dont think so. If you think b about whats happened with instagram, we dont know what they can do from ok louse for all we know is is is going to be the big thing guy wears on his head. Theyre saying 58, 59 year over year ebitda growth. I think costs are going to continue to go higher. I think the bar is high. I think priced to perfection and i own the stock. Not going to sell it tomorrow, but i wouldnt be putting new money to work. If we say is facebook the new apple . In terms of being the must own stock right now. Look at their operating margins. Tim mentioned ok u louse and virtual reality. Thats going to be huge three or four years down the road. Pete put out the fact they tried to buy snap chat unsuccessfully. They have many levers left to pull and yes, valuation, maybe its expensive. I think you own facebook here. The run continues to the upside. Rich greenfield cut it to a sell based ton fact investor expex tases are too too high. To be honest, i think richs call, again, these comps get very, very did i feel. One of the things you have to worry about is at what point are the demographics going to change on them as well. So weve all known that facebook hasnt been pulled for a long time. Doesnt seem to matter. Cool enough for 1. 7 million. Got a pipeline. Okay, but at some point, everybodys on facebook now, but not necessarily everyone has to be. Thats all im saying. The other part about these numbers is that people are making an assumption about organic growth. Is that the case . Maybe it is. The thing is, weve not seen the slow down. When we see that, thats when engineer i think we should be tarting to get more concerned but right now, its like under armour. Until you start to slow down, you can look at the multiple and say its not that expensive, but the most important thing theyve got an incredible pipeline. The reason is all these acquisitions and he has done an incredible job. Some may be overpaid for. Whats app, maybe they overpaid. Maybe. 17 billion is a pretty good number. Theyve got a billion followers. No doubt about it. Huge audience. Its another one hes made work and thats the one thing thats amazing. Theyve bought Companies Much more forward. For the talent level, scott, as much the technology. And its working for them at least up to now. Greenfield is going to be on the halftime show tomorrow. Well, just want to have some questions for him. When a stock is raising higher, getting in there and saying after the horses left the barn kind of call. Zpl Retail Sector downgrades galore were down. Thanks, that did me a lot of good. He put this out, when, yesterday . Who . Rich. Couple of days ago. I dont think this was a case where people were necessarily piling short into this number based upon that report, but management has been longterm thinkers and that to me is very important, especially when you think about facebook is as a Media Company when the legacy players are reacting daytoday. When you say longterm, suk put it out there, ten year. He is looking longterm, so this isnt somebody whos looking six months out. Bring in bob peck now. Hes monitoring the call on the red phone. Bob, you have a buy on the stock. And i guess youre feeling pretty good about that call tonight. Ayosz the board, it was great number, so users were up across the board in every region, even in the u. S. The modernization of these users were up 40 . Accelerated in the u. S. Mobile revenues up 80 . Advertising revenue, not slow down and all this on better profit. Grew 47 leading to marnlens in the 60s, so fantastic to see. So what well be looking for on the call, instagram and what we had on the quarter. The cfo should give that out and lastly, when should we monotize whats app. How much better can the story get . Is that the only thing investors would be concerned about tonight if they watched the stock have the run its had. Look at the metric, they jump off the page at you. On every segment of the business. Whats amazing is when you think about whats app and messager, they have a billion users every month. Theres a lot of leverage there and instagram is ramping from a base of almost zero to now north of 1. 5 million. Even with nap chsnap chat . That would be one of the things people will be listening for. Is there any impact to engagement or users . But based on the number, looks like there isnt. Well check in with you in just a bit. Facebook giving a boost to facebook, amazon and google. Wee wondering if theyre ready the to make a comeback. What do you think . I think netflix is ready. The four of us wanted this, netflix was down 12, 13 . We said as long as it holds that level, the stock is okay. It actually did hold that on huge volume that day. Now, its reversed and trading higher. We had one of the directors buy stock in the open market, which was really bullish. The stock, now, at least you have something to trade against on the downside. I wasnt bullish that night and so, in fact, i said i thought it was probably going to go lower. The fact its moved up to a range, ive been wrong on that. Youve been to a place where unlike facebook, weve really seen saturation of their customer base. U. S. Is slowing. International slowing. Margins arent there. They tried to raise prices. This grandfathering effect is something theyre very worried about. I think its negative. The minute you start to charge people for a service they got to teaser rate on, they start leave ing the service. You start seeing i dont want to be in netflix today. In fact, i think the stock is range bound. The top end of the range. I expect its going to test well. Would you rather be in facebook or alphabet is this the two dominant players in the space . I jump on facebook every time. Just because their growth and trajectory and what theyve been able to manage. When is zuck going to tart to revisit that snap cat . Offered him 3 billion. Is that ever in the cards again . Theres a lot of different im not a snap chatter, but im like a lot of guy, we had some on the show today at halftime talking about when you look at kids what are they doing . Not on facebook. Theyre snap chatting and the activity levels used there is incredible. Up next, bank of americas head of high yield says a rate hike could come much sooner than expected. Hell tell us what changes you need to make in your portfolio, plus, amgen and whole foods. Lore after hours. Both of those calls are underway. Were all over the headlines. Coming up. Plus, shares of cocacola plunlg lg. Could the stock be signalling one of the hottest trades is over . Much more fast money on a busy night is next. Welcome back. Making some hawkish comments in the july meeting. In september, the fed signal a rate. Saying Consumer Spending is growing strong eli an the lab r market has strengthened. The president esther whomts to hike rates now. Importantly, the fed aided a line saying theres less slack in the labor market and another line that said quote, near term risk other language said risk to the outlook were balanced. Thats led to rate hikes in the past. The fed continues to point to inflation thats running below its 2 objective. Bottom line, stroong data including better inflation data between now and september, but it could be a very patient fed uses this september meeting to do more explicit that a rate hike is coming. Back to you. Thanks, steve. Whats so funny about that . Great job, steve. Great. Our next guest believes that could be a mistake. Michael is the head of high yield strategy for bank of America Merrill lynch. Hes here with us. Everybody seems to be focusing on this one little pull out. Does that tell us that september is back on the table . Sure. I think its on the table. A more likely scenario is december. I tend to be more bearish. If they continue to see robust job growth and inflation or sides of inflation look like theyre picking up. Headlines im getting now from jeffrey, the founder and ceo of double line who said they cracked the door open, the fed, wu that the gdp on friday would throw it more open. In sunday, you buy that . The key is is probably more on the employment and inflation picture from here until september. Probably less on gdp. Most gdp tracking models suggesting 3 growth for the quarter q2. Does that throw the door open . Its already open, i would say. I think investors have mispriced it a little. If you look at the probability of a september and december hike after the meeting today, it went down. I dont understand how that. Did that surprise you that the dollar index traded high . And went straight down 1 . It did. But it fits the picture with the probableties. The market is is mispriced. The markets been too complacent with the fact september could be on the table. Where was that market yesterday . You said it went down today. Which i modestly. I think 52 chance in december. 30ish chance for september, now, its like 2849, Something Like that. So its gone down marginally, but it went down. The dollar weakened. Stronger in the morning. It weakened after the meeting. Oil was going down, but rates went lower after the meeting, so its clearly indicative that the market thinks theyre on hold. Zwl did you see gold and silver, the move they move . Gold hit a twoweek high. Thats right. Whats that all about . Inflation expectations . If the economic, if concerns about the economy have diminished, maybe they think inflation is going to go. Is that what its about . I think with gold now, seems to do no wrong. Gold goes up, inflations going up, you think the economys doing poorly, so gold is the answer right now. You were wondering if the rally you know, since the brexit throw off was going to have another leg, that maybe the gold trade would fall out of bed. I think gold is something that got an extraordinary bid and i would argue 60 bucks on brexit that its time to give back. From a fundamental perspective. I am bold, but i think gold is boar rrowing some fallout, whic think a lot of other assets will trade, i dont think gold has a lot more room to go. Just a pin you down, so jpmorgan says december rate hike is what they see. Your expectation now is september. No, no. The b of a house call, still december. What im saying is i think the market is mispricing the probability of a september hike. I got you. Thanks. December makes sense. Get through the election, so all the political stuff goes away. Post election. Raise in december. I think they shall raise in december. I think all the gold posts theyve put up, theyve met so they need to do something at point. Yields are going lower in the back end. I think tenyear yields. Ive heard your waivering a little bit in the last many days. Listen, the price action on bonds, the reason bonds in terms of what it meant for the overall market has been absolutely wrong. Right on bonds. Or maybe the reason why rates have been going down. Like there was a cat theres a global deflationary period going on. Finished . 16 hours and 30 minutes. Im off my train of thought. I think yields are still going down. I was wrong about the Broader Market. The more important part is the credit market. Somewhere out there. Trz. Take another look at the story of this evening. Facebook crushing earnings expectation. The stock is off its best levels of the afterhours session. 6 though, knock to snnothing n. Well hear from Mark Zuckerberg. Youre watching fast money on cnbc, first in business worldwide. Heres what else is coming up on fast. One bio tech stock is surging and it could be the start of a bigger rally. The ceo of that company will explain. Plus, its battle of the tech titans. Amazon and goggle out with earnings tomorrow and well tell you which one having the bigger move. When fast money returns. We. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Welcome back. Amgen moving lower. Meg has more. It was a beat and raise. Why have shares turned around . Its a good question. Good quarter for amgen. One thing they are highlighting is that the beat may have been driven by price increases, particularly enbrel, rather than increase demand across the board. That maybe why youre saying shares down slightly. The call is going on now. Its during commentary. In the q and a, we expect the hear questions about the new cholesterol drug as well as competition for bio similars, these generic versions of bio logic drugs. Finally, theres going to be questions about m a, engines got a loft cash. Bio tech value vegasyigss f sma companies are down. And of course, we got news yesterday from third point that they have sold out of their amgen state. Theyve sold out of this complete stake because we saw bert opportunities elsewhere. That the commentary across the board for big bio techs right now. Thanks. Meg, stay with us. Im wondering, they were able to increase price, but doesnt seem to matter for the stock. Do you think well see that more broadly in the space . Good question. These Big Companies still have been increasing prices on their drugs. We talked about biogen still being able to do so, its other drugs, the old eer drugs, that have more skrcrutiny. Thats something third point warned about, hint thag you vont invest in companies with lots of debt that rely on price increases. Thanks so much. Lets trade. This and then we can trade others in the space as well. I think in amgens case, i think the multiple is fair. Theres not a lot of excitement in that pipe long island yes, these guys have price in power. This is not a stock i need to run in and chase. I think the bio tech space breakout, lets see where this trades. Above the 200 day. 285 has been the top of that trading through that today. Maybe this is a turn. I think a problem the its run 15 a in a month. When they look at pipeline, i disagree. When you look at 16 drugs in late stage and thats possibly right there and the 35 billion of car, theres a lot of reasons to be excited. This is a bio tech, but trades like a pharma. Weve talked about this time and time again as that. Trades 14 or 15 times. Gives you yield. Has the elements along with xwrout and the pipeline is strong if any of those can be blockbuster drugs for them, that puts this thing into 200s. Weakness. It was strong going into the number today. It should be. They beat by a dime. Raised full year guidance by more than a dime beat. They still have an amazing pipeline to petes point. This is 13. 5 times forward earnings. I think its cheap for the space. They have a great balance sheet. The ivb has broken out through 285, so i think you buy the weakness. Im scared of the rhetoric. Its such an easy target. The whole industry for both sides and the idea that the government cant doesnt negotiate prices. What . Not in the price. It will be continue to be under pressure until sort of a sell the news kind of thing. Shes got to move. Up next, one of the hoets trades on the street is cooling off and some wadely held stocks down. As we go to break, heres another look at a facebook. It is surging this evening. Up nearly 7 on the earnings blowout. The call now halfway through the. The headlines from Mark Zuckerberg and how to trade it when fast money returns. Heres where we stand with earnings. Whole foods is lower. Facebook still soaring on its big beat. Sun trust bob peck monitoring the headlines from the red phone. Hes going to check in with us in just a little bit. The first group sitting out this rally. Hey, dom. Were at the halfway mark and things are getting better. Not looking great. Having already reported and if all remaining earnings come in with ek peckation, were to have 3 earnings decline. Before the season started, it was an expectation of a 3. 8 drop, so better. As for the revenue u side, they paint a slightly better picture. If all remaining Companies Report as expected, revenues will be down just. 1 from last year. One of the sectors getting more attention these days, the Consumer Staples. The high relative payers. Really need to dazzle investors. Check out ko ccocoa cola. Similar with mondolez and kimberly clark, which topped estimates, but fell after it reported results. A question is whether or not the higher than average valuations for Consumer Staples companies are worth it despite low interest rates. The ultra low ones, which provide little to no income for bond investors. Some of those may need to see fundamental strength that backs up those current valuations. Back to you guys. What do you think about this in. The reliance on the deividen, you can see, in two day, youve lost your whole dividend. Theyre prices to perfection. Theyve been priced to perfection and so this is the risk of earning great names at the wrong price. I know we talk about this magnet for these stocks, but i think its also because the Business Models for companies its going to be defensive and head winds. Not my turn. But i think really you sh