Netflix, alphabet. All this happening as soft economic continues to pour in. Could Growth Stocks be your best bet right now . Guy . I dont know if Growth Stocks are your best bet. Let eat taos about these four names now. Across the board, weve all liked facebook, but weve been unanimous on our love. Dan shaking his head no and hell tell you its a little too rich on valuation. But i think the world wily find ourselves in currently lends itself to facebook. Number one is facebook. Netflix, downgraded the name. Another says the original con is underappreciated. Last time the stock report ed, t cratered, but held 95. Its traded well since. I think net flick felix has some well. Google, not sold on it either way and amazon again is ridiculously valued, but you cant argue with the price. Netflix is the only stock in there that doesnt have a motor. For now, the very high, top of the valuation bb absurd. I think were out of place here, seeing saturation in the core market. Seeing International Adoption not be what it was. Of all these stocks, google to me makes so much more sense that the other player, even though theres no disputing that amazon and facebook were improving their last two quarters. You dont get out of those stocks, but google to me, 22, 23 times giving you about the same kind of growth is the best play with multiple businesses that arent even really in the valuation. How about the shift from advertising . You were shaking your head, im sure you were going to poke a bunch of holes. I look at facebook and what this company is able to do. You look at the growth prospects, the 2 billion give or take users. They continue to grow. The ad growth is is absolutely increde bable. People are shifting from tv and the rest of the media areas to the social world. When you look at the acquisitions theyve made, the montization t tenyear plan of zuckerberg, i know that the valuation is high. This is a groout stock with plenty of growth, plenty of runway in front of it. Of all these names, i put that one number one. Google, number two. Netflix does not have a mote, so there is some headaches there. I like all three of these names. Not the fourth. Youre not alone. This is the fairly universal view and it goes back to last fall and i remember stan miller obviously the famed Hedge Fund Manager says he loves these names. Like an amazon, a facebook. Because they can actually do well in a nominal growth environment where a lot of cyclical stocks hit. Theyre piling money as youve said, back into the their businesses. They have longterm views and people dont care about valuation. That brings me to netflix. That was the story a few years ago, then you saw these subscriber growth methods deaccelerate. The highest that its been in the last five years. That International Growth is falling, so the o moe, i think you have to use netflix as a guide. The other names, theyre megacaps. Knelt net felix is a 45 billion market cap. Its in a different category. If history tells us anything, at some point, these Growth Stocks that are loved, will turn around. Or have one stop growing. Especially at the rate they are. But you look at the growth rate, you see out of fn facebook, this has to impress you to some degree. You can use google where they had certain deacceleration. Its loved and stopped going up. The digital ad space for google and amazon, all their leadership, to assume they can be the only two players out there dominating still an youn known market cap of the ability to monotize digital ad space. At some point, you get to a place where the valuation and market cap, what else can you do here. Dont we have to overlay a brigger question on, which is arent the same factors that are puching utilities and telecom to what some consider rich valuations or even staples into the same reason why people are flocking to these Growth Stocks. People are searching for either that yield from a dividend or that gain in terms of stock appreciation and growth. Which not to get all wonky, but to the ism, the manufacturing numbers have been disappointing. I think thats a fair word, so when wha a lot has done is taking the fed off the table i dont want to have that conversation, but thats what you saw today. The economy is challenged is a fair word and people are searching for yield and searching for it in the form of tillties. Is there anything wrong with getting growth and the dividend and fundamental story behind you . You look to the chips, look at intel, new 52week highs. Micron continues to run. Texas instruments, in all different aspects including the going to find valuations extremely cheap. And growth and yield in many cases. I would make an argument that these are cyclicals. Lt if youre seeing the stocks run, taking the cyclical stories. Housing and the effect for the broader economy, what if facebook and google are strong, the implications to me are that the consumer is is strong. Are not cooperating . But i disagree with that statement. It doesnt really, i think thats a hard thing from that. If you look at the names that are doing so well. Thats a reflection on the consumer. I think it has more to do with the secular shift thats going on in the advertising space. When you look at the way some of these stocks act, to me, you know, i look at amazon. I look at facebook and they speak to the issues that our dmi has about deflation or disinflation. You know what im saying in a way . To me, i think everyones crowded in these names for the future. Yet theyre a huge drag on productivity, inflation and that sort of thing. Those are things we may never get back, so to me, i think its technologys bad. I just think its pretty well concentrated among 2 trillion in market cap, about a half a dozen stocks. Dot to settle this debate the charts. Carter worth is at the smart board. What do you have . The conversation, what the data shows is that growth outperforms when the Business Cycle rolls over. Ism also stalled. Peak autos and employment. I want to look at the few charts, the new outperformance again of growth is a negative, not a positive. These are two, got the first and second two panelled chart. This is the s p pure panelled index. Those stocks in value, pulled out from the s p. Top hill. And its that index relative performance that the s p. So even as weve moved higher, weve not made it back to the high, one and two, even as you move higher, youve been underperforming the market, so, it actually has been a period now since april, where value has not been leading. Its been under performing. Here is the exact opposite. This is s p 500 pure growth index and what we know is it did make the new high. And it is not only going to absolute, its going up relative, so you have sort of the perfect storm. Its what happened in 2015 when the market went nowhere. You had growth working. This happens again, but we made no progress. When it rolls over again, you get big trouble. L lets talk about those are the four names, i would say this. Looks like that. Meaning you have a well defined trend and a breakout. But again, the action. Its not a positive in principle to negative for the market. All right, what do you think . Should we invite him . Do we have more questions for carter . Come on, carter. Come on over to the desk. Pull the chair out. Sir. Why is a breakout a bad thing . When people are concerned, they do the three things you said. They want to find, give me yield. Thats a defensive type of behavior. Give me stability, meaning if you dont dispoint me, consolation, ill play you multiple 25. Or growth. Its nothing to do with a Business Cycle. When people are feeling em boldened, they go for beta, energy, caterpillar and the bottom. This behooifr, in 2015, we went nowhere. We had a bifurcated market. Signals have come to life. Now, were revering again, but as the rotation, the markets made no progress. The russell 3000 is up 1. 4 in 16 months, so all tho rotation, if this happens the next time, which is that the growth rolls over again and cyclicals make new lows, you take the market down substantially. I dont agree. We havent progress. This is a lement of people market. Looking back over the last 16 months, its all relative to where people think the economy is and where weve come from. Obviously, theres been a lot of Trading Opportunities in there. I totally agree wed be sitting here in late fall 2015 talking about bank stocks and nothing else and that was a harbinger of bad things to come. How about the financials . The rails . The consumer. These things are not fall iing d dying. Outside of today consumers very important. Consumers relative performance to the market has been done. That sub sector, but the big issue is this. If you had to make one of four choices, real estate, gold, bonds or stocks . The single worst thing you could have done in the last year and a half is being in stock. Its a disaster. If youve been trading it aggressively. Even if you held it, youre up 1. 4 and not paid for the rest of the draw downs. Are we on the cusp of a new, important goal or is this quite peekish . Piquish profits, revenues. Auto sales. Employment. Cater, thank you. Pete. You dont care about piquish. You like facebook . I like facebook. I agree with carter, i think with the low volatility, you protect yourself, still be in the market in some way shape or form, and stock relaplacement. Getting option, taking some of these poss off, ifst not there, you dont have the same exposure. You wonder, do financials need rates to go up in order for this rally to continue . Because i still think especially today, you saw tenyear yields went to the 162 level. Back down to the low 150s. I think yields go down, i would submit at these levels, they do. A news alert on bill ackmaac. Disclosing a new stake in chipotle, in a filing saying it owns 9. 9 . Once again, thises a new stake. They also kaulded the company undervalued an attractive and said theyre going excuse me engage in discussions with the board in management. As you can see, the stock up nearly 7 this after hours day. Thank you very much. Remember, bill ackman sold a sizable stake. I think in canadian in order to find higher beta plays. Could this be the answer . Well, its a higher beta play. You think they can overcome what are still some possibly structural risks to the business. Think that the safety concerns were drawn too fast, but if you look at the stock, stock is bottomed around 405. Technically, its held up well. Its gone through this period where actually, you can make an argument that the market is figuring out even what the company cant. So i wouldnt run from this stock here. Its interesting. Are you happy . Or sad . How do you feel . Bill ackman getting involved. After some of the thipgs that have gone on the past year between herbalife and valiant, you say, okay, these guys make large, concentrated bets, dont have a huge portfolio and have gotten some of these dead wrong. To me, as an investor, i wouldnt be buying the stock here up 7 , but tims levels are correct and its going to take just one same store sales announcement. One uptick to get people thinking about this. Sort of binary. Uptick or a down tick. I suspect that the norovirus, e. Coli stuff is behind them. Its going to take some time. People are going to start going back. Maybe the headlines are behind, but people have moved on. It did hold the level, but the stock is still not cheap. Its not like bill ackman has a great track record. Its up 7 on the back. I understand whats going on. Because the Short Interest in the stock alone dictates that people have to no reason to chase this name. You wait for the same store s e sales to increase. Once you see that move, it wont be the end of that move because then, youll start to see potentially that trend i think you can wait and youre not chasing that. If we didnt get this headline about bill ackman, would we be talking about this as a great buy . I dont think were having a conversation about bill ackman. I think were truly trying to look at the company. Look at stock, the charts. Leave aside 7 . Dont buy it today and theres risk to the upside. Coming up, why Morgan Freeman and pete suddenly in a bitter feud. Nothing to do with take it easy. But it has something to do with the stock we talk about a lot. Plus, donald trump said something about the markets that might sound a little bit familiar to fast money fans. Well explain what has all of wall street talking and apple fans are gearing up for a big day tomorrow, but it could be what theyre not expect that could move the stock the most. Well tell you what that is when fast money returns. E w thre do lsmarter . E w thre ah,. Youreno aryoveing . Hochoes ci dont ow. Ah. Okay. Uh, oad laus sba iyootap . W, youug. Thshe w thwod s. We, e wos chgi. Aryoaskingugh essabt yourlt is magedwethanagement, crl s frh ingrnt epepips,lid tooua rameod t 3yoiv atue hey,es o aru . Anoney reps moy puaw forretint im , thorontire rabbifr voy Tesla Ceo Elon musk is on edge and that kixs off our top trades tonight. Asking employees to cut costs woo investors. The automaker still has its share of fans, including this big screen star. I own tesla. Tesla. Im a huge fan of elon musks. And i think hes got the most incredibly Bold Thinking ideas about where we can go technologically. Hes you know, what hes done is nobody else ever done. Hes landed a rocket ship, so its reusable. You know what a feat that is . Now, were going to be going to mars, delivering stuff to people who are going to be settling there just like they settled the old west. And bringing those ships back and landing them and reloading them. Will tesla need more than buy rs to turn it around . Andy, like in shawshank. So powerful. Really is. And thats the problem here. Elon musk is a visionary and hes someone thats been able to execute, but this is stock, weve said this. This is a trillion dollar opportunity. Second quarter, if youre asking, cutting the coffee machines and the water coolers inside the company, tells you where the cash burn is a that continues to miss and miss and miss. I love the battery. Its part of the business thats probably priced the most effectively and priced most in line and i think it should be priced where it is. The other rest of the company is way overpriced. Solarcity to me, is only saves elon musk aura and without that, i think hes got bigger problems. So, you and morgan disagree. Also, thats been a split between you and morgan as well. Take it outside. Every other day about this whole thing. You dont talk anymore. Doesnt take your calls. Hes a wonderful guy. Come on, morgan. You know, margin pressure, there are all kinds of different pressures on this company right now. And the model three that everybodys Holding Breath on waiting for this whole thing, is that going to be able to live up to it . Crush the margins that much . If they can raise the money and if they can ever hit the numbers they have set out for them. They broke the 200 day moving avrnl. When they did that, it was a little bit of an opportunity to try to ride this thing to the downside and now, its sort of back down and near that a area, didnt get quite down there, but thats the area i want you want to cover. Also arent talking. You said earlier, really smart mouth. Not that im surprised it was smart. Mr. Freeman just said, hes such a forward thinker. When you read the remail he sent to employees, it seems to nar w narrowly, so close in proximity. Hes talking about cutting costs in four and a half weeks. Seems odd and i have to assume he had some other intent by writing this email. Theyre going raise the money. Just matters at what cost to shareholders. Seemed odd hes pressing them for four and a half weeks. Ahead, donald trump is starting to sound like a few people quou you may know. Im melissa lee. Youre watching fast money on cnbc. Heres what else is coming up on fast. Yep, pete pitching the crew on what he says is the best stock to own right now and it could be a home run for your portfol portfolio. Plus, heres how excited apple fans are about tomorrows big product announcement. Well tell you why that could be a good thing for the stock. When fast money returns. Hon go pin jobs dar llion angrowy prramslikekedk do tecomy. We dont ebt pem ust 8 yes,st wbad newsormalless. Est feral prra donald trump taking aim after the r Federal Reserve this week. While in ohio this week, he told a reporter quote, theyre keeping the rates down so Everything Else doesnt go down. We have a false economy. The only thing thats strong st the artificial stock market. The remarks sounded similar to what these fwis have been saying. I dont think the fed wants to add a bear market to a recession. I think theyre going to keep this bubble going. Theyre going to talk as if they can raise rates because they dont want toed admit this is a bubble, but dont want the to let the air out. Zpl i think the market rs to a large extent, manipulated by central banks, not necessarily om the Federal Reserve, but those of the ecb and the bank of japan and so, stocks are kept artificially high. I think we have embarked on a policy, Monetary Policy in particular that has never existed in the history of the world. Whoever dreamed that central banks, their main goal would be to get Interest Rates in a minus category. Everything is designed to keep the stock market alive. So, should investors bb concerned that a republican president ial nominee is sounding a lot like peter schiff, mark barber and other extreme views . Zpl i believe a lot of whats just been said. A lot of the things, i believe. Artificial stock, its not artificial, i mean, its here. You can argue the reasons why, so when i say price is truth, thats what i mean. We can argue all day long about whether or not it should p here. This is where we are. I do believe a lot of the fed policies are to keep Prices Higher to make people feel good about things. Consumer sees the stock market hire. They want to buy. Our economy is still 70 the consumer, so everything im hearing, i happen to agree with, but should you fear him, a republican, being elected president and tearing the whole thing down . No is the answer to that question. A lot of these people are hit by buses. Being overly scared, were in a world of financial oppression. I agree. But dont fight the fed. Go with it. Still ahead, apple gets set for its big event tomorrow. Guy has a special fast money report, next. Acewk st g isndo bu omst to the hudsononallefromany to , eative buss ntiv inasturet,iversi parershs,and es arcreati astcomy anrit nmenin yk stat busi to rive. Rsi parershs,and es arcreati astcomy anrit nmenin yk stat t how you coytomoow today stocks higher, dow and s p up about