Apple’s U.S. Investment… And A Disney Earnings Debrief 8/6/25

24:18We 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? I 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.

24:56It'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.

25:39So in other words, we'll be putting a terraform of approximately 100 percent 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 percent 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.

26:23OK, if for some reason you say you're building and you don't build, Then we go back and get we edit 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 calls. They were taken to the cleaners, frankly, and moved to other places, in particular Taiwan. But I think a lot of those companies are coming back, and they're coming back very rapidly. So that's a big statement, 100 percent tariff.

27:06I want to thank you very much. Tim, would you like to say a few words about your company, please?

27:14Good afternoon, everyone. Mr. President, thank you very much for having me here today. You've been a great advocate for American innovation and manufacturing, and 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 U.S. over the next four years. That's already yielding results.

27:57Earlier 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.

28:42It 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 Global Foundries in New York.

29:30Thanks 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 today. today. 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.

30:25MP 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.

31:11In 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, in 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 putting American innovation and American jobs front and center.

31:52Thank you, sir. Great honor. Thank you. Thank you. Appreciate it. What a job he's done. What a job. Incredible. I want to thank you very much, and thank you, J.D., for helping along. Good job. Really good job. Any questions, please? Mr. President, Mr. President, you promised on the campaign trail to bring forth a manufacturing renaissance. You just mentioned 17 trillion dollars in your first seven months or so. Can you talk about how an investment like this, all the other ones that you laid out, will positively impact the millions of Americans that trusted you with their vote? Thank you very much.

32:28It 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 to 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 percent 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 congratulations on this investment President Trump in.

33:35Thank you. A great example of putting America first. What does the labor force look like to fill these jobs that you have? Do we have enough skilled American workers to fill this? 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.

34:12So 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's right now building 58 coal-fired plants, 58 big ones. And here we were saying we don't take all 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. It costs are down.

34:48I 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 CNN and MSDNC, too, the same thing, where they say, well, costs have gone up. Costs haven't gone up. They've gone down. I'm 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 'am. Yes, Mr. President. Have Putin and Zelensky agreed to a summit yet? And where and when would that be? Well, there's a very good prospect that they will.

35:28And 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. Excuse me? How close do you think you are to some kind of peace? 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.

36:08And 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 a model of the plane right there so you know 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 so this is the brand new one they just ordered similar but actually quite different it's new and enhanced uh it's an amazing machine went 36 hours we had 52 tankers up in the air loading up our planes because this was surrounded by F-22s and F-35s.

37:05And 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 a big threat. That was a nuclear threat. But and here's the new one that we just ordered a large number of them. I'll put it. Mr. President, what was the breakthrough today? Did Vladimir Putin make some kind of concession that he hasn't been willing to make before? I don't call it a breakthrough. I mean, we've been working on this a long time.

37:47There 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's lost over 20 ,000 since the beginning of the year, 20 ,000. And I guess the estimate for Ukraine is about 9000. It's 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. It went four years and didn't start.

38:24But 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 that would take from Biden 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. Mr. President, in the past, you said you would know if Putin was happening along.

39:07What makes you any confidence that he is going to be in the future? That was President Trump and Apple CEO Tim Cook talking about the iPhone maker's newly announced investment in U.S. manufacturing. But we made a lot of progress. 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 percent after hours now, about 5 percent. Let's get more on this whole press conference with Megan Casella. Hey, Melissa. Who is standing by at the White House.

39:41Yes. 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, 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 percent 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 U.S. would potentially be exempt from that.

40:13But 100 percent tariffs on all chips coming into the U.S. 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 percent. 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.

40:51So potentially big news there coming out of this Oval Office spray, Melissa. All right, Megan, thank you. Megan Casello. Let's get back to Gene Munster of Deepwater Asset Management for his thoughts here. Gene, as you heard from Megan, a huge 100 percent tariff on semiconductors brought into the United States. How do you how do you think about that impact? 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.

41:23This is a deal. Let's just kind of take three steps back here. I'm positive on Apple. I think the stock is significantly undervalued, but today's announcement wasn't about manufacturing and substance in the U.S. It was about a deal. 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 through, and most of that's on the supplier side, it's not on Apple's side, on the supplier side, if that doesn't happen, it sounds like there's going to be some sort of a clawback for the tariffs that aren't there.

41:57So at the highest level, I don't see this as any operational change. I see this as yet another stroke of genius from Tim Cook at navigating a pretty unpredictable environment. But from like a margin perspective or like 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? I think it sifts back.

42:33Listen, 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 days in the broader market. So I think it sort of sifts back to that 207 level again. All right. Coming up, a number of names on the move. After Hours, Lyft, DoorDash, Airbnb and more, all reporting results, the details and numbers from the quarters ahead. Stay tuned.

43:02Welcome back to Fast Money. We've got a double earnings alert here on Airbnb and Lyft. Both stocks sharply lower after the results. CNBC's Mackenzie Cigales 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 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 percent, now down just 5 percent after missing on revenue for the quarter and after hours trade.

43:40It all comes back to its intense rivalry with Uber. CEO Dara Khosrowshahi told CNBC that Uber isn't seeing weakness in the consumer, while Lyft's numbers showed weakening U.S. travel demand. Their CEO, David Risher, saying that they're leaning into partnerships for its autonomous vehicle strategy on the call just a minute ago. Now, with 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 Cigalos 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.

44:18You had Uber versus Lyft. And then And for Airbnb, you have other, you know, Disney, for instance, versus Airbnb. You see different data points showing different things. You bought Lyft just a couple days ago. I did, and I'm going to stay long. And I'm going to say that tomorrow I bet you the stock is positive. I think that all the operational things, indications, and metrics look good. This is a much smaller version of Uber. I'm staying long. I'll probably get longer tomorrow. And he might be 100 % right. But then you look at it in the context of what Uber said. I mean, although the Uber price performance was sort of squishy afterwards, I think it puts into context exactly what you just said.

44:57There's winners and losers. I think Uber's the winner here. 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.

45:16Disney 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. Great to be on the same team with you guys again. 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.

45:52It's getting more bullish on. But now this quarter concerns you. 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.

46:32It looks like subs on both Hulu and Disney Plus 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 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 time being. What are you talking about? I don't want to get him in trouble with his comrades.

47:17He wants stud. Well, you're a stud. There you go. Senior stud. But with that said, you also were sort of skeptical at Netflix a couple weeks ago, So 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, far less sub-growth than Netflix, it really shouldn't be in a position here of taking away that degree of transparency.

48:12And I don't even understand it. Advertisers have to know how many subs they're 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 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.

48:53And between Hulu and Disney +, 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. 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? Well, everybody has some growth pains here that I think show that being in the streaming business is 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.

49:43And 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 caught in a bit of a difficult position here between right-sizing expenditures. AMNA NAWAZ, Tom, always good to see you. Thank you, Tom Rogers, senior advisor to Versant. CNBC's 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 corn here is their parks business, right?

50:24And that was actually a big 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 going to be positive for Disney. All right, up next, Final Trades.

50:46Quick check on shares of Apple after our session highs up 3 % on top of the$150 billion market cap added during the session. Final trade time. Steve Grasso. Lyft. It's a team effort. Let's turn it green tomorrow. Courtney. Disney. We talked about this on the show. I think it's worth taking a look at here. Dan. Yeah. Guys, McDonald's. Playing for a breakup. My roommate from college, Dr. Ron Pecknessy with his daughter, Isabel. Love Ron. Keyboard player. Keyboard player. Extraordinaire. Uh, Uber. Alright. Thanks for watching Fast Money. See you back here tomorrow at 5. Mad Money with Jim Cramer starts now.

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