← CNBC's "Fast Money"
CNBC's "Fast Money"
Apple’s U.S. Investment… And A Disney Earnings Debrief 8/6/25
00:52:03
Apple’s upping its pledge to spend big in the U.S. What Deepwater Management’s Gene Munster thinks of the tech investment, and if the deal will help the stock catch up to its Mag7 peers. And debriefing Disney’s latest earnings report. What media trailblazer Tom Rogers sees in the numbers. Plus, the earnings blitz continues with Lyft, Shopify, McDonalds and DraftKings. Fast Money Disclaimer
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- [00:00]
Melissa Lee
What does it mean to live a rich life? It means brave first leaps, tearful goodbyes.
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Steve Grasso
And everything in between.
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Melissa Lee
With over 100 years experience navigating the ups and downs of the market and of life, your Edward Jones financial advisor will be there to help you move ahead with confidence.
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Dan Nathan
Because with all you've done to find.
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Melissa Lee
Your rich, we'll do all we can to help you keep enjoying it. Edward Jones, Member, SIPC.
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Dan Nathan
On WhatsApp, your.
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Melissa Lee
Personal messages stay private between you and whoever you send them to. So things like the passport numbers for your honeymoon stay between you and your fiance. And that video call for your grand's 80th stays in the family. Even your streaming password stays between you and your college roommates who still ask for it every week in your group chat. Because on WhatsApp, you your personal messages are yours. No one else can see or hear them, not even us. WhatsApp message privately live in the NASDAQ marketsite in the heart of New York City's Times Square. This is fast money. Here's what's on tap tonight. $100 billion. That's how much more Apple is committing to invest in the United States. Details on this deal and how it potentially helps the company avoid a big tariff hit and the best breakout ever. The rally in one stop catching one of our traders eyes today. What is behind the move and how they are playing the name right now. Plus Wal Mart jumping on a bullish pre earnings call. All the numbers From Lyft and DraftKings, latest quarters and Disney inking a major deal with the NFL industry veteran Tom Rogers is here to break it all down. I'm Melissa Lee, come to you live from Studio B at the Nasdaq. On the desk tonight, Steve Grasso, Courtney Garcia, Dan Nathan and Guy Adami. We start off with the Apple deal that more than paid for itself. CEO Tim Cook arriving at the White House just about an hour ago expected to announce an additional $100 billion investment over the next four years to build up manufacturing in the U.S. news of the deal sent shares of Apple surging over 5% during the trading day and that adds more than $150 billion to its market cap. But even with today's gains, it's still more than 4% below where it closed on so called Liberation Day. And it's the only Mag7 name that hasn't recouped those losses. Apple just issuing a press release with details of the deal. Let's bring in Steve Kobach who's got more on this. Steve?
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Dan Nathan
Yeah.
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Steve Grasso
Now there's so much to unpack here. And so let me tell you the big headline numbers here and what is actually new and what is kind of continuations of partnerships and so forth that Apple already has the big headline here though, two and a half billion dollars that's going to go towards an expansion of the Corning facility that already exists in Kentucky with the goal of eventually all glass that's made on your iPhones and your Apple watches will come out of that facility. Right now that it's other places as well, it will eventually be 100% from there. So that's the biggest announcement in here. The rest of it, a lot of continuations of previous and existing deals that with other suppliers here in the United States. I'll just rattle a few off. That includes Coherent Global Wafers, America Global Foundry, Samsung, Broadcom and a number of others. Texas Instruments was also thrown in there. On top of that, just some more details about the Houston factory that was previously announced in that first $500 billion announcement that is happening in the northwest side of Houston. Construction they say is already underway that's going to be producing artificial intelligence servers for Apple Intelligence and that is expected now to open in 2026. That's when they expect to reach full production there. It's under construction now on the Broadcom side. This is a little new, I think, developing and building cellular components for 5G and wireless connectivity to be made here in the United States. But look what Apple really gets out of this, Mel. And as we know, it's the tariff relief. So while we don't necessarily see a direct exchange, here are Megan Casella down at the White House today. She was pointing out that Apple is not part of that doubling of India tariffs. They are still getting that exemption that was announced today. We know Apple has shifted to so much of its production meant for the US Into India because of that lower tariff rate outside of China, with the eventual goal of getting as many phones that they make there into the United States. They're still not there yet. They're not making enough to fulfill demand. That's still an ongoing process, but it will be ramping up. So in the meantime, some tariff relief. We'll see if there are any more details happening in this White House event that we're expecting to happen any minute now. But those are the highlights.
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Melissa Lee
Now, Steve, I'm curious and I understand that there's a lot to unpack. The release just came out. But what is your sense in terms of, you know, the furthering of investment with these partnerships with these partners does it take away dollars from others? In other words, is it moving dollars that would have otherwise been invested overseas someplace, moving to United States, but also inherently raising its costs because things will be more expensive here?
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Steve Grasso
They do give one example of that.
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Dan Nathan
Mel, and that's that factor I was.
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Steve Grasso
Telling you about in Houston, Texas, making those servers previously say that work was being done overseas. Now it's going to be, or, sorry, now next year rather, that's going to be happening all in Texas. So that is one example of that.
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Dan Nathan
But again, so many of the names.
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Steve Grasso
Listed in this press release are existing Apple partners. I just rattled off so many of them to you. They're already built into the iPhone and other Apple devices. So this is a lot of this is just a continuation of the agreements. But that's why I started off with Corning, because that is the one solid announcement and deal, an expansion of something like a real building actually being built, an expansion of that and eventually the idea of all that glass for Apple devices being made in Kentucky. So I wouldn't necessarily say, at least on my first pass of this, that it's taking away from other investment areas.
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Melissa Lee
All right, Steve. Thanks, Steve Kovac. And you see in the after hour session, those partners across the board that are getting expanded partnerships with Apple higher firmly, I think. Did you mention Corning like a week ago?
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Steve Grasso
We did. Corning Glass Works. It's up in upstate New York, where I hail from. Listen, as the guy who generally likes to be optimistic on this desk, okay, you know, the commitment to this plant in Kentucky is literally two and a half billion dollars. Guy could probably do the math on $600 billion. So it's literally a rounding error on that. Five percent of the components that go into iPhones are made in the United States. Right. And so Kovac just, Kovac just mentioned, Steve Kovac just mentioned that they really want to kind of reorient their supply chain to the United States. It just can't happen. Right. When you think about it, I mean, Tim Cook has spent the last 25 years, and really the 15 years prior when he worked for Steve Jobs, creating that ecosystem in and around China because that manufacturing, but also because the efficiency of basically bringing all these components in. A lot of them are made obviously in China and manufacturing them shipping here. If you make all the glass in Kentucky and, and then you're shipping it to China to put on the iPhones or shipping it to India, just doesn't make a whole heck of a lot of sense. And the other thing I'll just say about the $600 billion. So if you think of all the hyperscalers in the last few years they probably spent 6, 700 billion dollars in CapEx that they hope to get a return on. Right. By renting out that compute and putting the models on there and having the rest of the world, right, kind of use their clouds to access these models. Well, Apple, you know how much they said on their call last week that they're going to spend on capex? $4 billion. This is a company that I, you know, Apple intelligence, dead bang loser. Right. And who knows when they're ever going to join the party. And granted they didn't need to, they don't have a cloud business and they don't need to build the models but they're just lights out when it comes to AI. And so to me I just think that they have actually misappropriated some of the, you know, some of the things that they should have been most focused on right now. And I just don't think these sorts of commitments that will take 10 years to actually spend that amount of money are really going to happen. Maybe it gets them the exemption, that sort of thing and maybe that's the point but to me I just think this is kind of a non event.
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Melissa Lee
Maybe that is the point. Maybe that is the point that it's going to take 10 years, he's going to outlast the Trump administration and by then you pull back the reins. But in the meantime you can navigate this environment. You can curry some favor with the administration, get the carve outs that you need.
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Steve Grasso
Yes, and that's exactly what it is good for him. You get, you get that monkey off your back and the stock acts in kind of. I think if there's any good news here is that the phones are probably not going to be assembled in the United States which theoretically means they're not going to be more expensive, potentially hurt margins and those types of things. But just in terms of the stock probably traded two times normal volume today. Okay. But anemic bounce since that April low as opposed to the broader market or some of its rivals. I think the all time high in the stock was 260Ish much earlier this year or late last year. Yes, we've bounced but not nearly to the extent. So I think this is just a one day reprieve in my opinion and.
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Melissa Lee
I think this really is just to appease the current administration.
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Dan Nathan
Right.
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Melissa Lee
Because I think their biggest risk to the downside is their tariffs. They are one of the largest companies here in the United States who is exposed to Chinese and Indian tariffs which if they're going to be exempt from that it really lowers that risk for them. On the opposite side. I think one of the biggest risks to the upside is their AI strategy and that just stays still, isn't there? I think until they have that, yes, maybe they're going to not as be as bad on the downside but I just don't know what that catalyst is that's going to bring them higher until they have the strategy and that's just still not here.
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Steve Grasso
So they, this was a company that was rewarded for not doing Capex originally.
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Dan Nathan
And then it became a headwind to them.
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Melissa Lee
Right.
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Dan Nathan
I think this is a home run idea for them.
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Steve Grasso
I think they have to eventually bring manufacturing here. The phones might be more expensive or.
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Dan Nathan
There could be efficiencies.
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Steve Grasso
12,000, $12 billion they received from the new big beautiful bill in free cash flow. So I think whatever they're spending that's going forward as well.
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Dan Nathan
Right.
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Steve Grasso
So they don't do a ton of capex but they do a ton of R&D. 30 billion a year minimum 30 billion a year.
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Dan Nathan
So they are investing, they're just not.
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Steve Grasso
Investing the way the other companies are investing. They need an AI strategy or they could buy one but right now they're.
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Dan Nathan
Doing what they have to do and I think they're doing a great job at it.
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Melissa Lee
Yeah. And maybe are we being too harsh on Apple when it comes to AI? And I've been sitting here, you know, and I've been amongst you in terms of saying why don't they have anything yet? And it's been a disappointment, disappointment after disappointment. But at the same time they've never been first with any product and maybe they are in still, you know, a decent position to get a strategy on.
- [10:31]
Steve Grasso
Well but iPhones have not been growing. Right. So to prior to this they've been flat year over year as far as units and so the quarter they just put up, one of the reasons why I think the stock was up obviously because they put up I think mid single digits and really a lot of that was a pull forward. They talked about China reaccelerating a little bit. That's been a really tough spot for them. But when you think about it, I mean the government over there in China has been, you know, stimulating the consumer. The iPhone fell into a stimulus program there. So for the first time ever, so you saw that sort of growth and again I agree that I don't think it's the end of the world that Apple Intelligence really failed but at the end of the day the last two products that they've launched, Vision Pro has been a dead bang loser and that was supposed to be really innovative in and around, you know, Air VR, all that sort of stuff, spatial computing and then you think about AI. Every day there are like five amazing headlines about the products that OpenAI are shipping. Right. The sort of deals that Anthropic is doing with some of the biggest. What's going on with China and the open source movement over there, Metta with, you know, they're kind of getting their act together a little bit. So Apple is not part of the narrative. I think that's one of the reasons why it's down 20% from those recent highs. So to me I just think there's much better names to kind of play this.
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Melissa Lee
By the way, we're showing you a live look at the oval right now where Tim Cook is scheduled to speak at this event where they are going to be unveiling this $100 billion investment. We should be clear, according to Apple, this investment will last for four years. So it's not 10 years or an indefinite amount of time. It is four years. As soon as the press conference starts, starts we'll go to IT to hear what Tim Cook has to say. But in the meantime it is, I mean Apple stock until today it has been just trading sideways after it bounced off the April lows and then it sort of just floundered even with today.
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Steve Grasso
I mean obviously today was a good day. But again look at it in the context of what we've seen since its all time high. For example, just if our crackstaff and EC and they are crack staff can just do an overlay of Microsoft versus Apple over the last couple of years, you'll see a complete outperformance by Microsoft over the last three or four months as opposed to Apple. And that's, you can throw other stocks in there as well. It's just been sort of floundering. It wins because it's in 420something ETFs of which it's one of the top 15 holdings. It wins to passive investing but it loses in the valuation game in a major way in my opinion.
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Melissa Lee
Let's bring in Gene Munster of Deepwater Asset Management for more on Apple's latest investment. Gene, always good to get your take on. I mean it's, I would imagine no coincidence that this announcement was made on the same day that the reciprocal tariffs on India were doubled. And yet Apple does have an exemption there. How much does that save Apple? And we're just trying to figure out what is that return on investment for that $100 billion.
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Dan Nathan
It's a nice return because most of that hundred billion is not going to.
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Melissa Lee
Be spent by Apple.
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Dan Nathan
They're going to push that to their suppliers.
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Melissa Lee
They're going to ask for concessions. I think it's mixed.
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Dan Nathan
To see what this means for the suppliers, the action.
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Melissa Lee
I'm going to interrupt you. President Trump has begun speaking.
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Dan Nathan
Let's listen in Legends of Our Time, my book. Before we begin, I'd like to say a few words about the shooting at Fort Stewart in Georgia. As you know, five people were seriously wounded and two very, very seriously hurt around 11 o' clock this morning. The shooter is now in custody. And the Army Criminal Investigation Division is on site to ensure that the perpetrator of this atrocity, which is exactly what it is, will be prosecuted to the fullest extent of the law. The entire nation is praying for the victims and their families and hopefully they'll fully recover and we can put this chapter behind. But we're not going to forget what happened. We're going to take very good care of this person that did this horrible person. This afternoon, we're pleased to welcome to the White House one of the great and most esteemed business leaders and geniuses and innovators anywhere in the world. Apple CEO Tim Cook. Amazing job. Thanks as well to Secretary of the Treasury Scott Besant and Secretary of Commerce Howard Lutnick for being here, wherever you may be. Oh, there you are. Hello, fellas. I missed you. Today, Apple is announcing that it will invest $600 billion. That's with a B, in the United States over the next four years. That's $100 billion more than they were originally going to invest. And this is the largest investment Apple has ever made in America and anywhere else. And it's just an honor to have you. As you know, Apple has been an investor in other countries a little bit. I won't say which ones, but a couple. And they're coming. They're coming home. $600 billion. That's the biggest there is. The company is also unveiling its ambitious new American manufacturing program, which will bring factories and assembly lines across our country all roaring to life. Areas that were not doing so well are doing very well. We have about $17 trillion coming into the United States, which is more than ever before. That's never even come close. There's never been anything like it. Even you. That's even a lot of money for you. But we have Commitments of more than $17 trillion. That was as of a couple of weeks ago. These investments will directly create more than 20,000 brand new American jobs and many thousands more at the Apple suppliers like Corning, Broadcom, Texas Instruments and Samsung who all deal in that world. As part of this historic commitment, Apple will massively increase spending on its domestic supply chain for the iPhone and will build the largest and most sophisticated smart glass production line in the world in Harrodsburg, Kentucky, which is a great. Actually I did very well there. I like it because I see I did very well there. I did very well in Kentucky, but it's a great place. You're going to be very happy. I thought maybe while we're up I'll interrupt my own speech by you might show them a little bit about the product that you're going to be doing in Kentucky, Tim?
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Steve Grasso
Absolutely. Do you mind if I step up?
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Dan Nathan
Yes, please.
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Steve Grasso
This box was made in the U.S. california. And this glass comes on the horning line. It's engraved for President Trump. It's a unique unit of wine. It was designed by US Marine Corps corporal, a former one that works at Apple now.
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Dan Nathan
He's done well, designed it for you.
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Steve Grasso
And the base comes from Utah and is 24 karat gold and it sits. I'll take the liberty of setting it off.
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Dan Nathan
Wow.
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Steve Grasso
Well, let's see.
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Dan Nathan
There we go.
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Steve Grasso
Congratulations, Mr. Francis.
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Dan Nathan
Thank you so much. The great people of Kentucky, you're going to find it a great place to do business too. It's fantastic. Isn't that nice? We're doing these things now in the United States instead of other countries, faraway countries. This is a significant step toward the ultimate goal of ensuring that iPhones sold in the United States of America also are made in America. With the mass infusion of capital, it's announcing today Apple will also build a 250,000 square foot server manufacturing facility in Houston and invest billions of dollars to construct data centers across the country from North Carolina to Iowa to Oregon. That's big stuff. Apple will also open state of the art manufacturing economy. It's going to be a manufacturing academy in Detroit and that's a great place to do. You know, big things are happening in Michigan and Detroit. They're coming in because of what we've done with the. I call it the great big beautiful bill. I added one word great. But we have the probably the biggest, most comprehensive piece of legislation ever passed. It's going to mean unbelievable numbers of jobs and no jobs on. Think of this. Whether it's tips or overtime, Or Social Security, no tax. So no tax on tips, no tax on Social Security, no tax on overtime. And it's just a small bit of it. For Apple and others businesses, we're talking about the deductions and all of the things. And actually for people that go out and buy a car, first time it's ever been done, we talk about deductions for companies, but they're going to be able to deduct interest rates when they borrow money to buy a car. If it's made in America, has to be made in America. So it is amazing. And one of the reasons I think I can say that Apple's coming here is the legislation we just passed. With this kind of investment, Apple will also open other facilities, rare earth magnets from Texas and build. Oh, I love that you're doing this. I love that, I love that. And build a brand new rare earth recycling line in Mountain Pass, California. I know that area. That's where they have a lot of truly rare earth. That's fantastic. I love that. And Apple will help develop and manufacture semiconductors and semiconductor equipment in Texas, Utah, Arizona and New York. For years, Americans have watched as many of our leading tech giants built their factories overseas and exported American jobs abroad. But under the Trump administration, we're doing everything possible to make this the best place on earth to build a factory or grow businesses. I'm allowing them to build electric producing plants with their factory because otherwise they'd have to hook into the grid. And I think it's one of the biggest things we've done where you can build, Tim, your own electricity, you become your own electric manufacturer and that goes along with the plant. So you become a utility. So congratulations, now you're in the utility. I hope, I hope they don't value your company based on utility, but that's okay. You're going to make, you're going to be making your own electricity. And as you probably know, for much of this and much of many of the things that we're doing, especially the AI, they would need actually double the electricity that the country now produces for everything. So it's massive electric and they're going to be able to make their own and they're getting very fast approvals. Lee Zeldin is doing a fantastic job, including with a 100% expensing on the one big beautiful bill. In return, we're asking our businesses to invest in America and they're coming in at levels that we've never seen before. So I don't know when it shows up, but there are A lot of factories and a lot of plants that are either under construction or soon we'll be starting construction. So can't tell you exactly when, but I want to be around in about a year from now and two years from now because we're going to see an explosion I think like this country has never seen before. Never. Today's announcement is one of the largest commitments in what has become among the greatest investment booms in our nation's history. And we've got the hottest country anywhere in the world. You know, I told you the story that and Tim, I'll tell you, but I went to the Middle east and I was with Qatar, I was with UAE and the king of Saudi Arabia, all great leaders. And then I went to NATO and saw many great leaders. And we just finished that about four weeks ago. Everyone, virtually everyone, said in effect that we were a dead country. One year ago, America, this was a dead country. We were dying. We were dead. And now you've got the hottest country anywhere in the world. This would have never happened except for certain people. Thank you very much. I appreciate it. Nvidia is investing $500 billion to go along with Apple. $600 billion. $600 billion. Micron, great company, is investing $200 billion. IBM is investing more than 150 billion. SoftBank is investing substantially more than $100 billion. TSMC is investing $200 billion. Johnson & Johnson, $55 billion. Merck, Stellantis and General Motors are putting many, many billions in. They haven't determined the final number. And many other countries are investing tens of billions of dollars. And I'm not going to give you the whole list because the list is too long to read. But it's hundreds of billions and even trillions. I mean, it's trillions of dollars that's being invested right now. Last week it was announced that our economy grew at 3% in the second quarter and consumer confidence is surging. Blue collar wages are rising rapidly. Costs are way down. You know, I listen to these horrendous frauds on CNN and various other fake news networks and they say costs are up. No, no. Costs are down. Gasoline is down. It's going to soon, I believe be less than $2 a gallon. It's around $2.40 right now. Many places other than a California where they tax you out of business, but. And a couple of others, but gasoline is way down. The price of groceries are down. How about eggs? When I first came here my first.
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Steve Grasso
Week.
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Dan Nathan
The press hit me very hard on eggs. Eggs had quadrupled or something. I said I didn't know about it. Give me a chance. I've just been here for four days. Well, eggs are down, everything's down. Price is down. The only thing that's up is stock prices. That's really up and that's through the roof. The stock market has been hitting all time records, all time highs. Last week it was announced that our economy grew at levels that we haven't seen in a long time. But the real levels of growth are going to be judged in a year from now when you start seeing some of these incredible plants because we have car plants opening. They're coming in from Canada, from Mexico and from all over the world. And they're coming in because they like the way the election worked out, but they also like the fact that they don't want to pay tariffs. And the tariffs I think we'll be take. Well, we're taking in hundreds of billions of dollars in tariffs. I won't be so specific other than to say because we don't even know what the final number is. We just made a deal, as you know, with the EU where they're paying hundreds of billions of dollars, Japan paying hundreds of billions of dollars and numerous other countries paying hundreds of billions of dollars. And we're not even completed there. And as you know, they found $25 billion three weeks ago. They said, we have a surplus of $25 billion. And they said, where did this come from? They said, check the tariffs. And they checked. They said, you're right, that's where it came from. And we've really just started. This is just in its infancy. So we have a great country, we have a country that is going to be very rich. It's a country that we're very proud of, but it's going to be very rich. And it's companies like Apple, they're coming home. They're all coming home. And we want them to come home. They have to come home. We're going to treat them really well. We're going to be putting a very large tariff on chips and semiconductors. But the good news for companies like Apple is if you're building in the United States or have committed to build, without question committed to build in the United States, there will be no charge. In other words, we're not going to be charging. So a lot of countries, a lot of companies are leaving various other places and they're coming to the United States. So in other words will be putting a tariff on of approximately 100% on chips and semiconductors. But if you're building in the United States of America, there's no charge. Even though you're building and you're not producing yet, in terms of the big numbers of jobs and all of the things that you're building, if you're building, there will be no charge. So I just want everyone to know that. And I didn't even tell you that inside. We discussed the concept, but I didn't. So it's a big factor. So 100% tariff on all chips and semiconductors coming into the United States. But if you've made a commitment to build, or if you're in the process of building, as many are, there is no tariff. Okay? If for some reason you say you're building and you don't build, then we go back and get. We add it up, it accumulates, and we charge you at a later date, you have to pay, and that's a guarantee. So that's a big statement. And I think the chip companies are all coming back home. They're all coming back. You know, we started with intel, and gradually intel was just taken over the. Over the coals. They were taken to the cleaners, frankly, and moved to other places, in particular Taiwan. But I think a lot of those. A lot of those companies are coming back, and they're coming back very rapidly. So that's a big statement. 100% tariff. I want to thank you very much. Tim, would you like to say a few words about your company, please?
- [28:17]
Steve Grasso
Good afternoon, everyone. Mr. President, thank you very much for having me here today. You've been a great advocate for American innovation and manufacturing. I'm grateful for your leadership and your commitment. That's a commitment we share at Apple, because American innovation is central to everything we do. Our products are designed here. We're hiring and growing here, and we support 450,000 jobs with thousands of suppliers and partners in all 50 states. Earlier this year, we made our largest ever spending commitment, $500 billion to the US over the next four years. That's already yielding results. Earlier this year, we broke ground on a new factory in Houston to make advanced AI servers. And just last month, the very first test unit rolled off that factory's line, proudly Made in America. President Trump shared some kind words about that work, but he also asked us to think about what more we could commit to doing. And, Mr. President, we took that challenge very seriously. I'm glad to be here with you today, and I'm very proud to say that today we're committing an additional $100 billion to the United States, bringing our total U.S. investment to 600 billion over the next four years. As a part of this, we're launching Apple's American manufacturing program. It will spur even more production right here in America for critical components used in Apple products all around the world. And we're thrilled to announce that we've already signed new agreements with 10 companies across America to do just that. First, with today's announcements, I'm proud to say that Apple is leading the creation of an end to end silicon supply chain right here in America. From design to equipment to wafer production, to fabrication, to packaging. In Texas, we're working with manufacturers like Texas Instruments, Global Wafers America and Applied Materials. We're working with AMCOR in Arizona and Broadcom and GlobalFoundries in New York. Thanks to President Trump's vision and with his help in his first term, we also led the way to bring TSMC to Arizona by committing to be their first and largest customer. Today, they're producing tens of millions of chips for Apple using one of the most advanced process technologies in America.
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Dan Nathan
Today.
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Steve Grasso
We're going to keep working with our suppliers to move even more of this incredibly advanced work to America. And this year alone, American manufacturers are on Track to make 19 billion chips for Apple in 24 factories across 12 different states. Second, we're committed to buying American made advanced rare earth magnets developed by MP Materials, which will become part of Apple's devices shipped around the world. MP is the only fully integrated rare earth producer in the United States. And with this partnership, they'll be significantly expanding their flagship facility in Fort Worth, Texas. We're also thrilled to work together on a cutting edge rare earth recycling line in Mountain Pass, California. And third, in Kentucky. We've worked with our partners at Corning to build the world's largest and most advanced smartphone glass production line. And I'm pleased to announce that very soon, this is, for the first time ever, every single new iPhone and every single new Apple watch sold anywhere in the world will contain cover glass made in Kentucky. In addition to the American manufacturing program, we're also significantly growing our investments in AI, including expanding data center capacity in North Carolina, in Nevada, in Iowa, in Arizona and Oregon. So we're going to keep making investments right here in America, we're going to keep hiring in America, and we're going to keep building technologies at the heart of our products right here in America. Because we're a proud American company and we believe deeply in the promise of this great nation. Thank you all and thank you, President Trump, for pulling or for putting American innovation and American jobs front and center. Thank you, sir.
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Dan Nathan
Great honor.
- [32:57]
Steve Grasso
Thank you very much.
- [32:58]
Dan Nathan
Thank you. What a job he's done. What a job. Incredible. I want to thank you very much and thank you, JD for helping along. Good job. Really good job. Any questions, please? Mr. President.
- [33:12]
Melissa Lee
Mr. President, you promised on the campaign.
- [33:14]
Steve Grasso
Trail to bring forth a manufacturing renaissance.
- [33:17]
Melissa Lee
You just mentioned $17 trillion in your first seven months or so.
- [33:22]
Steve Grasso
Can you talk about how an investment.
- [33:23]
Dan Nathan
Like this could be.
- [33:24]
Steve Grasso
All the other ones that you laid.
- [33:25]
Melissa Lee
Out will positively impact the millions of.
- [33:28]
Dan Nathan
Americans that trusted you with their vote. Thank you very much. It changes our country. I mean, our country is a very different country than it was six months ago. And people like Tim are coming. We had Micron in yesterday. We had all of the big, great companies that you read about, you don't know about, but you read about, many of them were making products outside of our country. Foolishly, we lost them. If we had the right person sitting in that seat, that would have never happened 20 and 30 years ago. When you look at the chip business, it would have never left our shores. We had 100% of chips originally, and then we slowly got taken down to nothing. We have the biggest chip companies, both of them, but we have the biggest in the world coming in. They're going to Arizona and beyond. And we're going to have, in a short period of time, we'll be up to almost 50% of the chips from starting in nothing, and that's something. But we have the greatest companies in the world coming into our country, and that means jobs and it means wealth, and wealth means security for our people. Okay, Brian. Yes, sir.
- [34:35]
Steve Grasso
Congratulations on this investment, President Trump, and.
- [34:41]
Dan Nathan
Great example of putting America forward first.
- [34:43]
Steve Grasso
What does the labor force look like.
- [34:44]
Dan Nathan
To fill these jobs that you have? Do we have enough skilled American workers to fill these? Well, we do have a lot of workers, and we have a lot of workers that hadn't been looking for work because they were disincentivized, frankly. And people like Tim have tremendous schools and training centers that they build along with a lot of their big plants where they train people on whether it's glass, like in Kentucky, or computers or whatever they might be doing. It's a complex world, and they train people and they do a great job. So it's a whole new workforce now. We have a lot of them in energy because, you know, they've always liked energy. As you know, coal has opened up and opened up big. We brought it back and brought it back in a very large way. You Know, China is right now building 58 coal fired plants, 58 big ones. And here we were saying, we don't take coal. We have more coal than anybody else in the world. We have more oil and gas than anybody else in the world. But we have tremendous energy jobs. And the energy, as you know, we're booming with energy and that's why the gasoline prices are down. Costs are down. I just hope when they watch these shows, I watch this, I won't use names because I just make them better known that nobody knows who they are. But I watched this group of people on, on CNN and Ms. DNC to the same thing where they say, well, costs have gone up. Costs haven't gone up, they've gone down the arm telling you the thing that's gone up is stock, stock prices and success of our country. Our country is really, really doing well. Successful. Yes, ma'.
- [36:21]
Melissa Lee
Am. Have Putin and Zelensky agreed to a summit yet? And where and when would that be?
- [36:27]
Dan Nathan
Well, there's a very good prospect that they will and we haven't determined where, but we had some very good talks with President Putin today. And there's a very good chance that we could be ending the, ending the round. Ending the end of that road. That road was long and continues to be long, but there's a good chance that there will be a meeting very soon.
- [36:51]
Melissa Lee
How close, how do you think you are to a deal?
- [36:52]
Dan Nathan
Excuse me?
- [36:53]
Melissa Lee
How close do you think you are to.
- [36:55]
Dan Nathan
Well, look, I don't want to say I've been disappointed before with this one. You know, we've solved five wars, plus add to that Iran where we wiped out their nuclear capacity for weapons. They would have had a weapon within two months, maybe less. And that was totally obliterated. Turned out it was a total obliteration. And the pilots and the people that did that job are really, we have the greatest, we have the greatest armed forces in the world. But that was really something. In fact, there's a model of the plane right there. You got to bring that up, Susie. We have to see that. Look at this. This was just given to me. You know, we ordered brand new B2 bombers. This is a plane that over a period of 36 hours of constant flying. Look at this. This is the brand new one they just ordered similar, but actually quite different. It's new and enhanced. It's an amazing machine. It went 36 hours. We had 52 tankers up in the air loading up our planes because this was surrounded by F22s and F35s and it was flawless, Tim. Even you would say it was flawless. And every one of those bombs hit their target. And then we had Tomahawks shot in from a submarine 300 miles away, and they hit. Every single Tomahawk hit its target. It was amazing. And that was, that was a big threat. That was a nuclear threat. And here's the new one that we just ordered, a large number of them. I'll put it in.
- [38:38]
Steve Grasso
What was the.
- [38:39]
Melissa Lee
Mr. President, what was the breakthrough today? Did Vladimir Putin make some kind of concession that he hasn't been willing to make before?
- [38:46]
Dan Nathan
I don't call it a breakthrough. I mean, we've been working on this a long time. There are thousands of young people dying, mostly soldiers, but also, you know, missiles being hit into Kiev and other places. But in terms of soldiers, I think Russia has lost over 20,000 since the beginning of the year. 20,000. And I guess the estimate for Ukraine is about 9,000. It's a, it's a terrible. It's a terrible situation. We want to get it stopped. You know, we don't have American soldiers there, but I feel I have an obligation to get it stopped. This was not my war. This war would have never started, not even a chance. And it didn't start for four years. I went four years and didn't start. But this is Biden's war. This was, was on his watch. And, you know, it's funny, we had no land was taken from Trump. It was taken from Bush. It was taken from Biden. The whole thing they would take from Biden if it weren't for us. But it was, and it was taken by Obama. Take a look at what was taken with all of the land that was taken. Nothing was taken by Russia from us. Not one ounce of land was taken. I'm here to get the thing over with. It would have never started if I were president. And we're here to get it stopped and get the death stopped. Yeah, please. President, in the past, you said you.
- [40:07]
Melissa Lee
Would know if he was happy to move on. What gives you any confidence that. Mr. That was President Trump and Apple CEO Tim Cook talking about the iPhone. Maker's newly announced investment in US Manufacturing.
- [40:19]
Dan Nathan
Made a lot of progress.
- [40:20]
Melissa Lee
They went over a lot of the companies mentioned in the press release, but one that stood out is MP Materials. Tim Cook saying that advanced magnets will be in iPhones now that stock is higher. Had been higher by as much as 8% after hours now about 5%. Let's get more on this whole press conference with Megan Casella. Hey, Standing by at the White House. Yes. Hey, Melissa. Absolutely. This is still ongoing and we don't know how long this will be ongoing for. But the biggest piece of news that I would flag from there was we already knew the details of the Apple investment going into this. So the newest piece of news that we got from that was the president floating that he's looking at tariffs of approximately 100% coming in tariffs on all semiconductors imported into the United States. He did caveat that just a little bit, saying that any companies that are making a commitment to build or are already building in the US would potentially be exempt from that. But 100% tariffs on all chips coming into the US would have major impact on the industry and of the many, many end users, as you know, of foreign aid chips. So we do have to wait and see. That's a result of the national security investigation on Section 232. That is still ongoing. But I had been told to anticipate that potentially wrapping up sometime this month. So for the first time there, the president telling us what sort of tariff he's considering now, saying up to 100%. I will say we could see exemptions on that. So we'd have to wait and see. But we also could see it being broader than just semiconductors and actually hitting derivative users or derivative products that contain semiconductors as well. So potentially big news there coming out of this Oval Office spray. Melissa. All right, Megan, thank you. Megan Casella, let's get back to Gene Munster of Deepwater Asset Management for his thoughts here. Jean, as you heard from megan, a huge 100% tariff on semiconductors brought into the United States. How do you, how do you think about that impact?
- [42:13]
Dan Nathan
Well, Trump said right after that the companies that are committing are not going to be tariffed. And I would just, given the context of the conversation, I think that one of the key takeaways here is that this is exactly what we all thought. This is a deal. Let's just kind of take three steps back here. I'm positive on Apple.
- [42:30]
Melissa Lee
I think the stock is significantly undervalued.
- [42:33]
Dan Nathan
But today's announcement wasn't about manufacturing in.
- [42:37]
Melissa Lee
Substance in the U.S. it was about a deal.
- [42:39]
Dan Nathan
And part of that deal is that Trump gets the headline and Cook gets the tariff break. And he also warned, Trump warned that if, in fact, this manufacturing doesn't play.
- [42:51]
Melissa Lee
Through and most of it's on the supplier side, it's not on Apple side on the supplier side.
- [42:55]
Dan Nathan
If that doesn't happen, it sounds like.
- [42:56]
Melissa Lee
There'S going to be some sort of a clawback for the tariffs that aren't there.
- [43:00]
Dan Nathan
So at the highest level, I don't see this as any operational change. I see this is yet another stroke of genius from Tim Cook at Navigating a pretty unpredictable environment.
- [43:11]
Melissa Lee
But from a margin perspective or a substance of how Apple does business, they're still going to be assembling these in other countries. Still be very dependent upon China and India. Right. Gene, thanks for sticking with us throughout the press conference and great to get your take. Gene Munster, what do you think happens to this 5% stroke of genius gain that Apple made in today's session?
- [43:34]
Steve Grasso
I think, I think it sifts back. Listen, the broader market still, Steve said this last night. Last week's technical damage has not been undone by the moves we've seen over the last couple of days in the broader market. So I think it sort of sifts back to that 207 level again.
- [43:47]
Melissa Lee
Right. Coming up, a number of names on the move after hours, Lyft, Door Dash, Airbnb and more. All reporting results. The details and numbers from the quarters ahead. Stay tuned.
- [44:02]
Steve Grasso
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Dan Nathan
Some were fatal.
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Steve Grasso
Tell your doctor if you have an infection or symptoms like fevers, sweats, chills, muscle aches or cough, had a vaccine.
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Dan Nathan
Or plan to or if IBD symptoms.
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Steve Grasso
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Learn more at 1-844-cosentyx or cosentyx.com you're.
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Stronger than HS ask your dermatologist about Cosentix.
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Melissa Lee
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Melissa Lee
Welcome back to Fast Money. We've got double earnings alert here on Airbnb and Lyft, both stocks sharply lower after the results. CNBC's MacKenzie Seagalas has got the details. Mac. Hey, Mel. So Airbnb shares reversing course during the company's earnings call despite a Double beat on Q2 earnings. Investors appear concerned about the company's growth trajectory following a cautious Q3 outlook for both revenue and and adjusted EBITDA. It comes as Airbnb faces tough comps, particularly against strong performance from rival booking holdings. And Lyft shares down as much as 14% now, down just 5% after missing on revenue for the quarter and after hours trade. It all comes back to its intense rivalry with Uber. CEO Dara Khosrow. Shahi told CNBC that Uber isn't seeing weakness in the consumer, while Lyft's numbers showed weakening US Travel demand. Their CEO David Richer saying that they're leaning into partnerships for its autonomous vehicle strategy. On the call just a minute ago. Now both of these stocks, Mel, it seems to show investors are pretty jittery around the health of the consumer because we didn't get a clear read from these prints on travel demand. Mac, thanks, Mackenzie Seagalos in San Francisco. Or it shows or underscores the idea that there are winners and there are losers in every sector when it comes to capitalizing on the consumer. You had Uber versus Lyft and then for Airbnb you have other, you know, Disney for instance, versus there and Airbnb. You see different data points showing different things. You bought Lyft just a couple of days ago.
- [47:18]
Dan Nathan
I did. And I'm going to stay long and I'm going to say that tomorrow. I bet you the stock is positive.
- [47:24]
Steve Grasso
I think that all, all the operational things, indications and metrics look good. This is a much smaller version of Uber. I'm staying long. I probably get longer tomorrow. I think it makes and he might be 100% right. But then you look at in the context of what Uber said, although the Uber price performance was sort of squishy afterwards, I think it puts into context exactly what you just said. There's winners and losers. I think Uber's the winner here.
- [47:49]
Melissa Lee
All right, coming up, digging into Disney's results, how streaming and theme parks are helping offset some TV woes, and how a newcomer to the streaming wars is speaking up before its debut. All that when fast Money returns. At Capella University, learning the right skills could make a difference. That's why our business programs teach you relevant skills you can take from the course room to the workplace. A different future is closer than you think with Capella University. Learn more at Capella.
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Melissa Lee
Disney sliding almost 3% after reporting mixed third quarter results this morning. Earnings topping expectations, but revenue missed slightly. The media giant did see growth in its streaming business and its ESPN yesterday announced a major NFL Network deal. For more, let's bring in media executive Tom Rogers. Tom is a CNBC contributor and a senior advisor to Versant, which will soon become CNBC's parent company. Tom, great to see you.
- [49:01]
Steve Grasso
Great to be on the same team with you guys again.
- [49:05]
Melissa Lee
We're always on the same team, right? Just formally once again, back to Disney though you had been this is a story that you had been getting some more getting more bullish on. But now this quarter concerns you.
- [49:18]
Steve Grasso
Yeah, I would say you can't take anything away from this NFL deal. This is great for espn. I think it will really help the streaming service. One caveat. I had hoped that Red Zone was going to be part of the streaming service because I thought that would really help with younger demographics. In terms of the standalone ESPN streaming service. That's not part of the deal. It's an upgrade pay. Other than that, this is really good for the sports side of the equation. I think the trouble here is you can say streaming grew, but it was really modest. It looks like subs on both Hulu and Disney plus are are pretty stalled certainly compared to Netflix sub growth and when it comes to advertising, it looks like they were flat to slight decline when it comes to the streaming side of the equation. That that gives me pause. That should be the growth asset of this company and it's hard to put growth against that with those kind of numbers. Although my feelings have not changed in the slightest. I think now that Tom is a senior advisor to Versant, I should probably shelve the Stud moniker for the really for time being. I don't want to get him in trouble with his with his comrades. Stud he well, you're a stud. There you go, senior. But with that said, you also were sort of skeptical at Netflix a couple of weeks ago. Correctly so, because the stock had not seen an uptick until today. My question is, does the Disney earnings release give the green light to get back into Netflix? Well, Netflix results are much stronger. I think both of them not giving information anymore on subs is really misguided. You could understand Netflix saying that it wasn't going to give guidance on subs anymore because it's gotten to a point where you could argue that's less relevant. Disney, with the kind of sub growth that it is showing here, with far less sub growth than Netflix, it really shouldn't be in a position here of taking away that degree of transparency. And I don't even understand it. Advertisers have to know how many subs are reaching on the ad tier. You can't say an advertiser. Sorry, we're not going to tell you. If advertisers know, the world's going to know that number. And unless they start stop giving the percentage of new subs that are on the ad side versus the non ad side, going to be able to figure it out. But yes, I think overall where the two are today, Netflix is comparatively in a much better position. Having said that, got to give Disney kudos. It's got more streaming revenue than linear revenue at this point. It's got almost half of its viewing coming from the streaming side, totally different from any other legacy company. And between Hulu and Disney plus, they do have the most ad revenue of any streaming service. So, you know, you can't say they haven't built something there that's there to last. It's just not growing at this point the way it should.
- [52:25]
Melissa Lee
But yet if Disney's having problems, Tom, and its path has not been linear, this trajectory that is. What does it tell you about the other streaming services?
- [52:38]
Steve Grasso
Well, everybody has some growth pains here that I think show that being in the streaming business, not easy. I think they're attacking it by cutting back on costs to increase profitability. I was surprised that the CFO said that they weren't looking to put any more money into domestic programming. And everybody's been hit with higher sports costs. The sports cost strain is causing less money to go into entertainment programming, but they need more entertainment programming. It's that volume that really drives engagement, which is what Netflix has been able to profit from. So I think they're, they're caught in a bit of a difficult position here between. Right. Sizing expenditures.
- [53:29]
Melissa Lee
Tom, always good to see you. Thank you. Tom Rogers, senior adviser to Versant cnbc, soon to be parent company. Courtney, you like Disney here, right? I do, and we talk a lot about the streaming and comparing it to Netflix. But the other side of the coin here is their parks business, right? And that was actually a big one reason of their beat. And we're going into an environment where the consumer is stretched. Disney is not a cheap experience to do, but it's still helping them. And after they did this $60 billion investment into their parks, that really seems to be paying off. I think that's to be positive for Disney. Up next, final trades. Quick check on shares of Apple after our session. Highs up 3% on top of the $150 billion of market cap added during the session. Final trade time. Steve Grasso, Lyft It's a team effort.
- [54:17]
Steve Grasso
Let's turn it green tomorrow.
- [54:18]
Melissa Lee
Courtney, Disney, we talked about this on the show. I think it's worth taking a look at here. Dan.
- [54:23]
Steve Grasso
Yeah, guys, McDonald's playing for a breakout. My roommate from college, Dr. Ron Peg, is here with his daughter Isabel. Love, Ron. Keyboard player, keyboard player extraordinaire. Uber.
- [54:35]
Melissa Lee
All right, thanks for watching Fast Money. See you back here tomorrow at 5. Mad Money with Jim Cramer starts now. All opinions expressed by the Fast Money participants are solely their opinions and do not reflect the opinions of CNBC, NBCUniversal, their parent company or affiliates, and may have been previously disseminated by them on television, radio, Internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information the Fast Money participants consider reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Fast Money disclaimer, please visit cnbc.com fastmoneydisclaimer how will you.
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