Lets put on the fang trade. I think each of these companies specifically scott had something idiosyncratic and important an its own road map that sparked interest beyond just the last 90 days. Doc, facebook crushed it. Alphabet, mobile search driving. Amazon, the obvious thing, plus the cloud. These are not small revenue numbers were talking about here, judge. When looking at alphabet or google, up 25 year over year, the revenue side. This is a huge amount of revenue. This isnt like, you know, some of the stocks we talk about that, oh, it was 100 million and they beat by 1. 2 million dollars. No. These are in the billions. This is like appleesque kinds of numbers, and as people come on the air and like to say, the law of large numbers says they cant keep doing yes, they can, and yes, they did. And take a look at amazon. One important point on that, jon. We used to talk about these names, reverently, we would say, these are the companies that are going to figure out the future, and you would be right, its different now. Big momentum growth drivers. But its different now. These are the Companies Creating the future. Amazon is deciding what the futch sir goiure is going to lo. Google and facebook too. Different than a visionary getting his way. Jimmy, wall street is back on the gravy train big time today. 20 analysts raised price targets on amazon. 20 on google. You now have 7 price targets on google, or or on google up more than 1,000. Let me say this i really dont believe that fang is a useful acronym any it more. It was useful in 2014, these four stocks leading the markets. All the markets gains in 2015. To what josh is saying, each idiosyncratic companies and good reasons why amazon is have be 20 upgrade. Right one thing quick. Netflix, example, taken out of this mix . I agree, totally agree. Taken out. The business is starting to peak. The stock rolled over. To your point, josh, i dont think theyre creating the future the way they were a year ago. A replacement for netflix and happens to start with an n. In my opinion, the most Important Company that we almost never discuss. And the company is called nvidia. When you think about everything thats happening over the next three to five years in Virtual Reality, augmented reality, whats going on with video games and pokemon go and beyond that, whats happening with beta centers. Nvidias graphical processing unit chips are involved in every one of these stories and not just involved, creating what the future looks like. This stock has been on an absolute tear. Yes it has. The stock is 1 away from its 52week high as we speak. As is amazon, facebook the low is 19 because only very smart investors know whats going on here. We dont talk about the stock enough on the air. They are involved in everything. When you talk about creating virtual worlds, what you really need are incredible graphics and you need deep learning, ai that teaches itself on the job. In these environments and this companys platform, pascal and the new chips at titan will be the building blocks. This company could be the intel of ai and verch wirtual reality becomes less of a geek fascination and more of what everyone reacts with in the world. Two questions. Is it big enough . Throw that out there. In fang. Right on the number, 30 billion on the number. And chairman of the reserve, im goin to say its big enough. And second question is why doesnt facebook have a much bigger advantage in terms of going out and Building Hardware themselves . They dont make chip. Its the chips. Whats really going on ramping as were talking about it, by the way. Going on with graphics cannot be overstated. I dont suggest the stock will go straight up in a straight line. Its already had a huge run, but i do believe its being discovered. I think Virtual Reality as an investment theme at its infancy and a company thats pretty important. By the way, look what amd has done. This is a stock that couldnt get out of its way for almost 20 years. This thing is like tripled. This is also involved in the same kind of graphics and some of these new markets. So i think its important we move beyond netflix, yeah, struggling a new breed of big Growth Stocks youre willing to pay up for. I think there could be. Pe of like 48 . On these these are companies that have Growth Potential that gets investors willing to pay those multiples. How about this . You stop at the multiples with with amazon and with google all of these year, but the businesses justified it. So nvidia, high of the day. Facebook year to date up 20 . Amazon up 13 . Over the last month, and nvidia up 59, call it 60 now. Alphabets up 3 . More muted. S p up 6 . Most stocks far outpacing broader market. The past 24 hours. This point, too trying to think of next. Back to what i was saying. Frank was appropriate in 2015, basically ten stocks in the s p 500 positive, and the rest laggards. These four at the top of the list. This is a much broader based rally this year than in 2015. Yes, still laggards like the financials, but what im saying is, if were going to make it fang or bagel or any of these acronyms all were doing is randomly picking letters and tickers out of a very large spectrum of stocks going up. Is there a lock . There will be. Somebody came up with bagel, you remember. I do. It wasnt me. The amazon numbers were stunning. I bring up the appleesque kind of revenue numbers, these are like 30 billion. You take a look at that revenue, which is up i think 30 or so year over year and you look at amazon web services. That side of it up 58 . That side alone of what amazon does, you know. Again, on this desk we talk about it all the time. The website and the cloud, amazon is just killing it, and up 58 on a huge number. They just are owning this space. So i think what you said at the top, josh. Take a look at facebook. Whos their competition, judge . Nobody. In my mind. I mean, some kids are going to be on snapchat, but snapchat doesnt make money lie facebook and Mark Zuckerberg make. Same with amazon. Amazon building 18 fulfillment centers. Not talking about software. Talking logistics powerhouse that you could start seeing not only in their own earnings but in the deleterious effects in other companies earnings. The problem, people cannot get their arms around the valuation. Other than exactly right. Our next guest. Stephanie link. Buying alphabet and amazon over the past months and joins us on the phone. Steph talksing about fangs, wondering if theyre back. Whats your take . Scott, how are ya . Good, thanks. Yeah back. Never really went away. Pockets of opportunity to buy them, but growth is impressive. Lets just start with amazon. You said, the valuation has always been a hard one. Deal with some parts. The only way to kind of get a higher level, but i just stress that not only was revenue and margins better than expected in every single segment, you had this Company Really focused on operating leverage, and i know everyone kind of is poo, pooing guidance, the only reason why the stock is not up more, in my opinion, but this company was able to produce the kind of growth both top and bottom line, margin expansion, while at the same time theyre aggressively spending. That growth Going Forward is really going to continue. And i would just throw out two things. Cloud, only 8 of overall spending is in the cloud at this point. Youve got a long runway on the cloud side and on online retail, they prime, growth, only 10 penetrated internationally. Its 40 penetrated here in the u. S. , but youve got a long way to go in terms of this growth. So happy theyre spending, seeing operating leverage and can get to some of the parts number. It is higher than where you are. Absolutely i would buy that. Give me something on alphabet, too. The streetious obviously likes number. Hardpressed to see another cfo, applauded on wall street, ruth when she does a call, the street eats it up . Totally turned this company around as well. Growth was always there, scott, but the execution was always kind of spotty at best. So you had 25 u. S. Growth. Thats the best in five years. And along with facebooks results, it totally dispels the notion that digital dollars are decelera decelerating, that is key. Money to going to both of these companies and that is going to continue, and that is why you need to be involved. In terms of kind of the headline numbers were really great. Go through the surface, operating margins expanded 100 basis points from last quarter alone. Free cash flow over 2 billion year over year growth. And their own bets revenue actually better than expected. So a really good quarter, and this ones lagged. Right . So the expectations were kind of muted and you can get around valuation. Ten timeses to 16 ebitda but growth midteens. You can get your hands around and why i think people will continue to buy the stock. Steph, thanks for calming in. Perfect day to get your insight on that. Have a good weekend. You do the same. Stephanie link joining us. Talk about apple up more than 5 this week. You know about the numbers beating expectations. Price target again. Brian white reiter ha eerating been a positive view on that stock. How should we look at apple now, doc, Going Forward . From what we heard from Hillary Clinton last night, as well as donald trump, theyre both going to be talking about the tax ramifications of companies that are leaving all of that cash overseas, judge. 215 billion of the 235 billion theyve got are overseas right now. To the extent we get not just rhetoric but proposals from each of these two candidates about how they would address that, that could be either a big positive for stocks like amazon, or could be a big negative. Depending if they want to use a carrot or a stick with how they get that money back here. Brian white at drexel takes apples price targets to 1850 saying as the dark clouds of doom begin to part here comes the sun. Good luck. Im long the stock. Not going up 80 . Hes been highest target on the street forever. S that his schtick. The report was a low bar they cleared, if you want to sink your teeth into something unmitigatedly positive, the Services Number at 6 billion. Put it in perspective, about 15 of total revenues. Going forward, looking whether the iphone 7 will have good pickup and frankly youre not going to know until it comes out. Hear analysts saying their channel checks say its going to do well and other analysts say exactly the opposite. Youre not going to know until the iphone 7 comes out. Treads water until then. Im still in it because it generates a ton of cash. Josh . Yeah. Im long. And i dont really need it to go to 185. As a total return story, buying a stock with a below market multiple during a cyclical trough, incredible iphone business, the worlds fare again, releasing the 7ened every falls back in love, funny to watch it go higher. Meantime i sit. They buy back shares, a decent sized div dentidend, less upsid. Thats okay. A big marx chure company in a maturing industry. To be clear, scott, you can see another 10 rise easily in this stock. Thats a reason to be in it. I want to touch. So nvidia quickly before we go to break, guys . Looking a the that stock up now 1. 25 . Take a look at thats again, the 52week high on nvidia, 57. 22. The stock is currently just shy of 57. Well get you a chart. There it is. Full disclosure, no position in the name yet. I am looking to add. I probably shouldnt have said anything nice about it today, but at some point i will be long the stock. No position currently. Good stuff. Up next, reasons to worry. The Halftime Report, just getting started. Announcer youre updates a hero. Are the bank ready for a crisis . If not, how bad will things get . Were just a few hours from getting Key Information on the health of europes Financial Sector that could move Global Markets. Plus a big setback for biotechs and pharmas next frontier. More halftime with scott wapner coming up. Watch us as noon eastern every day. Tokyostyle ramen noodles. Fresh ingredients, stepbystep recipies, delivered to your door for less than 9 a meal. Get 30 off your first delivery blueapron. Com cook. Its time to discover that in a lexus suv. Theres no such thing as adverse conditions. Come to the lexus golden opportunity sales event this is the pursuit of perfection. Welcome back to the Halftime Report. A major event happening in three hours that could move Global Markets getting a glimpse into the health and stability of the european banks. Josh brown started prepping us last week. Wilford sfrofrost is here. European stress results 4 00 p. M. Eastern time. Banks are the sector down year to date, worst s p sector. In europe the situation is even worse. Stock 600 banks index is down 27 year to date, actually despite turning in a 6 gain for july. The stress test results come at a time when the banks are already beat up. Late on a friday . Delayed until close of the u. S. Market. Read into that what were we will. Just this week a good glimpse of how bad the situation is as well. Deutsche bank results, poor, ubs and barclays, surprise, very low expectations, all three ceos making it very clear the situation of european banks is rough. And the european Banking Sector in challenged. The question josh is, if these results come in sort of more dire than expected, what sort of rollover affect could you have from europe over into the u. S. Market early next week . Look, heres my take on this. The best case scenario, a nonevent. That would be fine. However, the big market events weve had in u. S. Stocks have already been currently related going back to august with beyond valuation, what went on earlier this year with the dollar ripping and then reversing. These have been currently issue, the brexit episode. I think the concern here is the Fivestar Party in italy, even with a comedian running it, and all of the things you can say that, oh, its a nonevent, rensi basically bet his government on this. If it looks like italian moms and popless have to take a hit. Politically hes toast and then germany is faced with yet another possible exit in country, or a country thats going to be bellicose of that exiting and probably not so great for, a, risk appetite, b, the currentcy situation. Watching to see if theres going to be another political firestorm. And our watch list, five here, the best performing one year to date is down 37 . Thats the thats the winner. The winner. The winners down 37. The loser, down 81. Right. And the italian banks have been very unprofitable, loads of mpls. A chart showing how much nonperforming loans they have relative to much bigger economies, and only about half provisioned against, you know, brexit made that worse but hasnt caused the problem. The italians are in a difficult position. European doesnt allow a state back bailout, clearly what they need. They could do it. They could, but spun politically by likes of the fivestar movement saying germanys stopping us from fixing our economy. They stopped greece. Look where they are. We have to pull out. Adding a police spice to a brexit moment which they wont want to have. Potential of a backstop eventually . Do you take a look at potentially investing in some of these european banks . Scott, i cant european blue chips, nonbanks, if there is some kind of break im talking about bavnks. Starting with this. Not in italy. A great trade a month ago, getting absolutely destroyed. For a few week period had you to nail the exit quickly, though. And donelock said on the show that day, well, judge when we talked about it, the 23rd and 24th day of the vote and the day, friday after when we actually had the reaction, we jumped in, bought a lot of stocks, bought hsbc, barclays for clients and things like that. Both played out very well, versus what i should have done, of course, was shorted Deutsche Bank against it. Deutsche came down wilford, 17. 5 and 18, all the way down to 12. 5. Others recovered. Hsbc is back where it was on the 23rd prior to breck it. Potential. And let me spin it to your interview with jamie dimon on monday, were looking so much forward to at 1 00 eastern time. The main issues you hope to hit with jamie are what . Listen, definitely touch on the divergent performance weve seen from european banks to u. S. Banks. U. S. Q2 earnings were pretty good and the results of the banks stress test here got lost a little bit, because they came out the day after the brexit result and were pretty strong. I dont think weve grasped on that. And isnt as bad as european banks. The woert sector. Look at that. And brecxit is a big topic. Is the fallout as bad . Pull people out of london . The political situation here as well. Interesting, as we look at the debate, both sides of the political debate unite on beat antibanks over here. Getting perspective from here will be fascinating. Not to mention following gdp today. The first half of the year in the u. S. Growing at a rate of 1 after the revision downward to q1. Interesting to sort of get his perspective on what the real economy looks like from his vantage point. Absolutely. Particularly when we look at the first half of the year. Particularly the first quarter. January, february, terrible. Since then, actually results have been strong. Both with jpmorgan and other banks as whole. Is h2 going to be like the first two months of the year . Crude oil doing a rollover again. Not to mention. What do we worry about barks and their exposure to that. Cant wait for that monday. Wilford frost joining us today. Big interview on monday. Jamie dimon, the jpmorgan chairman and ceo, an exclusive interview and only on cnbc and its 1 00 eastern time. Look forward to that. Oil hovering. Talking about it in a bear market territory. Exxon and chevron painting a gloomy picture. Is the big runup ending . The number one analyst will tell us. Is the bottom falling out of pharma and bio tech . 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