Apple soars nearly 5 to a fresh all time high after reporting earnings moments ago crushing on every metric the company has added 31 billion in market cap just in the post market session. Weve got full Team Coverage gene is here onset, hes deialig into the call. Josh just spoke with tim cook, so josh, kick it off i had the chance to speak to tim cook lets talk about iphone number 41 Million Units in the quarter. I asked about that he said demand was greater than the shipment indicated because he did take down channel inventory by more than 3 Million Units. It was also impacted by the pau. Theyre seeing these reports andrew man and rumors cook said the noise andrew mors are at a different frequency than weve had and its clear because im getting different comments from people that there is a pause, but despite that, i feel great about how we did. I also switched gears and asked cook b aboservices business. Cook telling me if you look at services, we came in at 7. 3 billion. Up 22 year on year. Really great quarter and we have now achieved our goal of being the size of a fortune 100 company. Earlier than we thought. Weve now achieved it on a look back basis we are very proud of that. Im going to hop on the call and bring you more as they come. The question is simple. If you dont own apple, is is it too late to buy and what do these results mean for check as well as the markets. Dan, to you. A lot of people were focused on the guidance number, so an indication as to whether the iphone 8 will be delayed. It speaks to the fact theyre seeing a nice follow through what got investors off sides on this one was the fact they saw this pause they had this in the iphone unit number last quarter. Listen, there is nothing to knock b about this quarter nothing to knock about the swagger in which they gave this guidance this is a highly rumored quarter into this device and weve got a, there was a guest on the last hour, its the silliest thing. 1100 iphone to me, i think it makes perfect sense. Theyve had a string of releases that have been perfectly evolutionary theyve been strong devices. Theyve been able to maintain margins and so to me, the idea of making an aspirational iphone for die hard iphone users in his tenth Year Anniversary makes a lot of sense theyre still to sell a lot of the wups you have in your hand now. We talked eed the about of a phone sold now, is that a new higher phone, the phone that isnt sold after the new iphone comes out. I dont know to me, the service was interesting. Up more than i thought i had thought prior growth was really not that exciting this is more interesting i dont own it i wish i had this isnt the kind of day i would buy now. But i wouldnt its interesting, dan, youre not focused on china which was terrible and youve beaten up the company on that in the past. The thing that gives me solace or not solace, i actually think, get excited about that Services Number you analyze that, its a 29. 2 billion business you said gets them inside of a fortunate 500 company. The margins are north of 70 if you listen to credit suisse, its going to be a 22 billion business they were paying attention, but saying low base, but not that interested hold on on a sequential basibasis, it wp 2 it would have been growing 18 the last two quarters. To me, i dont think that inkrecrease is is that exciting especially as they beat on the iphone unit numbers, so theres plenty to think about looking down is that what your point is . You are actually lauding the company for holding on to this 1100 asp and thats exactly the people, fluent transactional customers, the very wealthy customers this company has are the ones that are dpoipg goigoie up the services. Spotify said they had 16 million paid streaming subs. Apple music has half that. Netflix has 104 million paid streaming subs and they dont have a streaming service, so to me, if you think about the f sfs business becoming a great er par of the whole, it needs to be something more all right im sitting home watching apple up almost 6 new record high. What do i do i know a big iphone 8 release is coming and i dont know what to do right now couple of away. Theres a good changs we retest the high of 134 and change. We have him on tonight. We do looking at him right now that was my view a few weeks ago, so clearly, i was wrong i dont know what happened with ipads, but even crushed the ipad number some people refound the ipad for some reason. To answer your question, listen, i thought it was going to 134. I was wrong. What do you do with this im not certain. Id love to go to the Conference Call, but i got to believe youll see a pullback. You got out of apple a while ago. What would make you reconsider is this quarter Strong Enough . Id probably rather by it on weakness we need to hear more about when the iphone is is coming out. I think this quarter is great, but that is still the most important thing. I was talking to an analyst at brdrexel hamilton today, he said if revenue is higher, that would indicate theres a delay how much . It was for 49. 3 and guidance is for 49 to 52 billion. So, thats a pretty small window of getting in on the quarter. Youre well ahead of the game that indicates they get the average and theyll get that first week of sales for the fiscal q1 and take them in the last week of the quarter and its very positive but does it really matter . I mean, ultimately, whether they get this out in september so they can showcase it going into their most important quarter or mid december, theyre going to wait until they get out the right product and here we are, all the things were talk iing about on this stock and no one here is really talking about the quick trade. Were talking about the value of this company, what they are creating in terms of a new use base or broadening their existing one i dont think it matters i agree in terms of does it matter if its a week or two weeks delays eventually, it will probably be a sale at some point in time but this was one of the bearish cases on wall street this is what caused analysts to take down their mats since the end of the seventh quarter going into this quarter. Thats the context in which this stock is now popping the one take away i have is that whatever this highend device is, theyre not going to pay above 1,000 is going to be such a small percentage of the sales of the new series of devices, so that, you shouldnt be worried now if its one the two months that really tripped out. O led, selfcharging thats not going to be the driver for this supposed supercycle tim mentioned china that was down i think its the fifth consecutive quarter that chinas been down double digits. To me, thats probably where the bulk is going to come from the lower it goes, maybe its not so bad because maybe you start to see a reacceleration of growth in china. Not trying to sound bullish, but the stock is at all time highs now. I agree. I think my point is simple the stock has been in trading range. It closed last quarter, may 2nd when they reported at 149. Basically, were in close right now, so its been flat line for three months why did it break out of the that range last quarter when the stock was flat after the earnings, we were all look iing at it, like basically flat up or down a dollar. Took a took a couple of days, then went straight up. I dont know if we have a chart for may, but it went for like 7 in the days afterwards it was a must own. Remember the day in early june when the stock literally fell like 5 in a Straight Line to me, you have investors off sides here theyre probably not going to sell this thing. I think the question is, what does this do for overall market. Were looking at dow 2,000. And i think its a tech market that was moving sideways and very positive. Four bucks. It shouldnt on the downside, but whatever. For more, lets bring in gene money center hes with the red iphone how would you grade the quarter . So far, it looks like an a minus especially given the number the 41 million unit number adjusting for xhachannel invent down they would have drown it 9 . It was up 1 this is the best iphone unit growth in about two years, so they really knocked the car off the ball despite this head wind they have of people anticipating the upcoming phone tim cook was just on the call there talking about ar your early discussion, i dont think anybody was talk iing abo ar kit i think investors who have the benefit of owning something for the longterm should take note in augmented reality put together the stronger than expected growth in iphone, for just the most recent ended quarter versus the current quarter, is your interpretation that people are just buying iphones and the there is no slowdown ahead of the launch of the new phone and that it will not be delay snd. Doesnt look like the fophon is delayed i think thats why its having a higher reaction. But i think again, on this 41 million number, the unit number, that was negatively impacted by people anticipating this i think what it speaks to is this base of 800 million active ios users that apple is turning. Obviously, that has a positive impact on the services business. Its going to take five years for investors to give apple the full credit for the services business, but it has grown between 17 and 26 over the past seven quarters i think thats to take note that this is a steady business should be positive for the stock over the long haul. Last quarter, you were excited about ar kit explain what that is and why is that something that investors should be focused on is there products attached to it is it sticky for the actual devices, related to services how big of an opportunity is it for apple . Its huge because its going to change how we interact with our phones today, its a touch screen in the future, it will be a glance a, eventually, a weara e wearable it will be b the iphone for next several years, so theres a cycle. It can charge more i srsps. Think of pokemon go go, but a much more rich experience. The services piece as you mention ed is a gold rush for developers theyre going to be scribe scrag to create new applications they win on two fronts asp and services well check in with you later on we want to trade apple show of hands. Whos inclined to buy apple right now . Buy over sell . Nobody buy over sell why but im not inclined to go buy the stock today. Is it too expensive no, its not. But again, lets process through these numbers. If you look at the tax revenues, details of this. The tax rate is 22. 9 versus expectations, theres Different Things here. I agree with genes thesis but back to technically. I realize theres investors and traders, but at 156, 157, we get to a place here where the stock could be at that level i would give it a couple of day to hold the level. You dont need to buy tomorrow what do you need to hear from apple, about the stock that will convince you that its a buy nothing we talk about valuation all the time we think it should trade above that and giffin the fact its got all the profits of the smart phone, too and net cap is 155 billion, but to me, its not just me. Okay, so ive been on the wrong side of this short the stock or anything like that just havent owneded it. Its not a crime in america. Wow saying that you know, at some point, the jig is going to be up thats why i ask gene the question about ar. Does it mean this is a segway into wearables the air pod is a brilliant device most brilliant since the ipad in 2010 and we dont talk about it. Some day, that may be a big business and it may be linked. Im excite d about the home pod that may come out around christmas. I may buy a few at 350. Thats upside omgs al ptionat even in the price. Do not get worked up, but why we want to own the stock for its core these core numbers are why the stock is trading where it is and i dont think you need the other stuff. I think people have been trying to, three quarters ago, people were saying apple is not innovating, its over. Something new is going to happen a scramble the reason i dont own it, on the surface, it looks cheap. I dont know what the right multiple is. The 16 seems great yes, so if you look at samsung, the multiple is half that. So thats what makes me wonder coming up, transports are sinking. Thats sending chills down the back of one top stlat gist plus, a major deal is coming, according to one market watcher. Which names will be b the first to make a deals . And later, theyre betting tesla shares will do something theyve never done before. 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If these guys are going to get their next leg, its going to be from china i would not own starbucks just because i think theyre not executing in the u. S i think the u. S. Execution is slow and i think the guidance was terrible but i think theyre being realistic. I think the china growth and the fact that china is still a tea exhumie i consuming culture. Doubling down on china makes a lot of sense i care a lot more about china for starbucks than i do for apple. Thats the story here. Where does starbucks trade after the numbers . Theres a lot of downgrades. I think youve got a lot of negativity in the stock. If anything, these guys have a reputation for being overly conservative should investors be more concern eed about the north American Business . Comps were up 4 . Its a significant miss, so they should be concerned. There is going to be a tribal down the road. How long do you have to wait to get that im not sure what the answer is, but say this as poorly as we did, at least i did with apple, weve done a decent job can starbucks we thought it would rally to make a high before howard left pretty much what happened. Double top from a couple of years ago, but now what . This 54 level which we plag flagged is an interesting level to hold. You can make a decent argument, so for a trade, it looks interesting. Still ahead, apple is soars after hours. The Conference Call underway right now. Well hear what tim cook is is telling wall street about the quarter of the new iphone when we come back youre watching fast money on cnbc heres what else is coming up on fast lets make a deal thats what the ceo of sprint says the company could soon do, so who might be buyers well name names plus, stocks are at all time highs, but theres something below the surface that could spell trouble and heres a hint. 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Welcome back we are live at the Nasdaq Market site the dow closing at a record high and coming within reach of the key 22,000 level heres whats coming up. The big story of the night apple hitting a new high and adding more than 30 billion in market cap in just the past hour that Conference Call is well underway weve got full Team Coverage gene is manning the red iphone josh is in california at apple headquarters they are standing by to give us the latest first, we start off with the autos getting wrecked today. Lets get to phil in chicago for all the details. Melissa, overall, sales were down 7 for the industry when you compare it with july of last year and remember, that was when we were in the midst of perhaps the most explosive months in terms of sales last year when we hit a high of 17. 6 million vehicles sold. Were not going to come close to that this year take a look at the major automakers for july and you see the big three were negative for the month. Below expectations with gm down more than 15 . The only one to buck the trend, toyota, up 3. 7 . Most were expecting it to be down 3 , so it was the bright spot behind the day. What was the weakness in july . Fe