tv Fast Money CNBC April 1, 2014 5:00pm-6:01pm EDT
what she does from here and whether she follows through with the promises that she's made. >> got to go. a lot of news to cover this hour. let's hand it over to "fast money" with melissa lee. >> we are trading this news and of course we're going to continue to follow the testimony on capitol hill at this. thanks for that. "fast money" starts right now. live from the nasdaq market site we start with the breaking news out of washington, gm ceo mary barra apologizing tonight. did we get the moment that we wanted that investors needed in terms of gm putting it all out on the table and investors saying this is the worst? >> no, we haven't, but we've gotten a bunch of things that can at least begin to allow us to quantify. we think there's going to be a lot of overhang in terms of news flow in this company. look at the sales numbers, the market now, i have to look forward. they're not going to put this company out of business or not
even close of one percent is probably where this fine is going to come in. jpmorgan earns 25 cents. it's not going to be a great quarter. the numbers of in terms of sales, they're blowing it away. their high profitable businesses are growing. >> sometimes it's not about reality but perception. the perception as jpmorgan pointed out is that the market share losses could continue into the second quarter. granted, they said gm is a buy here. $5.5 billion though in market caps since march 10th which is when all the investigations were had. >> you need to separate from being an investor in this. this is the time to buy. we've gotten all the bad news out. there's going to be tape bombs potentially out there but it's held above 33 with all this news. remember what happened to bp. the time to buy bp was when all these problems were going on. i would buy gm and use 33 as my stock. >> i want to do a little
show-and-tell. i brought a chart for you. this is of bp. remember when then ceo tony hayward testified before congress june 17, 2010. a few days after that, that was the low for the bp oil spill. i'm not trying to say this is the exact same thing. it's not, but perhaps when things look really bad it's time sometimes to buy the stock. >> ken fine berg wants to act like vp so a lot of these things have a knack of being the bottom. >> nobody knows on this desk but the truth is if b.k. said there's going to be a couple of tape bombs left out there, if you're an investor and looking to bottom pick, i think you're better served waiting for this to establish itself above 36. give up upside, wait until it floors there versus taking a stab in the dark. >> bringing in ken fine berg, this guy is an attorney, he
specializes in disaster, he was the czar at gm. he was 9/11. >> quite a resume. >> yes, when it comes to the worst disasters in the u.s. and trying to find a way to compensate victims. this pressure from gm to compensate victims is going to come to fruition. >> the testimony today, they were very upfront but there's going to be tape bombs. mel, you've been like our risk manager, at least mine for the last five years. one of the things that i've routinely done is taken these situations and really thought about it and pressed the worst case scenario. to tim's point here, if you can kind of separate some things and get a sense for the fact that they're expected to grow earnings 17% this year, 32% next year, it trades at seven times -- >> does that take into account perhaps they could lose market share because of the optics of
this? >> what is different today than at least ten days ago when we knew this was coming down the pike. i don't think that much. what i said yesterday is compare the chart of gm to the chart of ford, to the chart of a number of other auto makers around the world. they're very similar. >> i would push back -- i think it depends on what time frame. >> i'm looking at it from the peek where all these auto guys traded. they were all multi-year highs, all pulled back on the economic data that was questioning whether there was real industrial growth global. >> according to the jpmorgan note which was march 10th, that's the benchmark they used the day before all of the investigations were announced, from that time period gm is down 8%. ford is up 4.5% and toyota is flat. it depends on what you're looking at. >> i guess my point is that all of these auto guys pulled back dramatically in a bad macro environment and to me this is an opportunity where they're all a buy. they're all a buy. in fact, if you see the numbers that came out today -- >> really quick, you guys brought up a good point. ford is up five percent, made
its year right now but toyota is down 7. gm is down 16 and doesn't look like it's stopped the bleeding yet. ford is definitely where people are going, maybe not to buy their cars but to buy their stock. >> b.k. could be right. that august low is about $34. you do not want to own this stock through that level. if it can stabilize through 35, it has hugged that 35 level for nine months. if you can stabilize, get through the news, you don't have to step in at this moment. i am long calls. i think we're going to see a stock at 7.5. >> i'm just talking about a trade here. you want to be the first guy in. they didn't name the river after the second guy. >> let's bring in mark ward. he's got the street's highest priced target on gm. great to have you with us. >> thanks for having me. >> what is the worst case scenario in your view? >> worst case scenario recording the recall? >> yes.
>> we've seen it. >> that's it? it's done? >> gm, the recall belongs to the old gm. i think what gm has done is addressed it head on. the company itself has been very transparent with the investment community, with testifying in front of congress. i think as you go forward, the big thing for them is get it out of the news, take care of your customers. >> i sort of get that but i sort of don't. the recall may belong to the old gm and i understand that because mary barra wasn't at the helm at the time but the compensation to victims, the optics, the potential market share loss, that belongs to the new gm? >> but the liability, if there are lawsuits, belongs to the old gm. >> can you explain that to me? i'm sorry that i'm being very -- >> absolutely. these are incidents that took place prior to july of 2009. so as a result, that belongs to the old general motors. if you are going to go after the company in that regard, it
should go to them. the new company did not have anything to do with that. it is their responsibility to take care of their customers and they're doing that with the recall and trying to apiece customers as much as they can. if you look back over the last two or three decades, gm has been the most responsive and cooperative with the federal agency as it relates to safety and i think you'll continue to see them do that over the next three, five, ten years. >> talk about the current product line and what you see looking forward. i know you've got a bullish outlook on the new product line and ultimately i think you've got a situation where the global economy is accelerating at a time when these guys have operational leverage for the first time in a decade. >> absolutely. i think when you look at the global basis in north america yoo you're in a sweet spot. the sales cycle is 15.5 to 16.5 in the next five years. you will see record profitable from gm. they're well on target to break even in 2015.
they're the leader in china. they're getting back about 1.7 billion from the chinese. south america remains volatile but it's not enough to have a major market on gm's performance. you have accelerated earns in 2015 in particular. >> we had a debate on the desk which has more upside, forward, gm or toyota. weigh in and solve it for us. >> i do not cover toyota but if you look at general motors and ford, they do move as a group, there's no question about that. if you look back five, ten years, general motors and ford move simultaneously. gm is at a low point from a valuation standpoint. ford has tremendous momentum with the new pick-up trucks coming later in the year and both companies will have strong incremental earnings. i like them both. >> thanks for your time. mike ward, the auto analyst at stern ag. let's get to ammon jabbers.
he's on capitol hill. >> i just came up from that media scrum that you saw live on cnbc where mary barra faced reporters after that long testimony on capitol hill. i had a chance to ask her a question about whether or not she would make this internal gm investigation public. she said we'll make everything available that's appropriate to be made available, very clearly not signaling that they'll make everything available of what they find in this internal investigation. i also asked her whether or not this would be an on-paper document that gm produces internally and she said that has not been decided yet. a couple of interesting answers there on the nature and scope of this internal investigation and whether we'll ever see anything from it. back to the hearing itself, these things are very carefully lawyered and parsed, but mary barra did give a very clear apology, saying she's sorry. take a listen. >> today's gm will do the right thing. that begins with my sincere apologies to everyone who has
been affected by this recall, especially the families and friends who lost their lives or were injured. i am deeply sorry. >> now, she also talked about the importance of customer safety and this was a point she was hammered on a number of times by the members of congress during the panel. take a listen to her on customer safety as well. >> it latest roundel recalls demonstrates just how serious we are about the way we want to do things at today's gm. we've identified these issues and brought them forward and we're fixing them. i have asked our team to keep stressing the system at gm and work with one thing in mind, the customer and their safety are at the center of everything we do. >> so melissa, clearly a couple of lessons from scandal management 101. typically you see companies in this circumstance site on on going investigation as a reason why they can't answer questions. that's what we saw mary barra doing here today. she did come out and take some
questions from the press, but she didn't go much further than what she had said during the hearing itself. some questions here about how forthcoming gm is being today and what that means about the size of the liability and the problem might have internally. >> thank you very much for that. let's wrap this up. in terms of what we've heard today from mary barra, what we know now, would you buy gm right now? >> yeah, and i bought it last week. you do have to look for some free fall event but mary barra, the testimony 101 tactic is you don't say more than you have to. >> she did just that. >> to give her a tough time for that though, i mean, let's face it, this company has got a lot of issues to deal with but the valuation is very interesting here. >> tomorrow morning i'd buy gm right here, wherever it opens tomorrow morning. let's call it 34ish around that
range. >> gm i'd wait until it stabilizes above 36. >> i'm long april 34 calls. some high flying names suffering from a major selloff in the month of march. three stocks that could be ready to break out this quarter. that's next. plus an epic debate on wall street and i'm not talking boxers or briefs. i'm talking biotech or high growth tech. dan nathan is here to break down two big names with super high expectations. the important question of would you rather is answered next. g. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. growth? growth. i just talked to ups. they've got a lot of great ideas. like smart pick ups. they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! awesome! awesome! awesome! (all) awesome! i love logistics.
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you can pay the bill, too. but don't worry about that right now. okay. how do i look? ♪ thanks. [ male announcer ] troubleshoot, manage appointments, and bill pay from your phone. introducing the xfinity my account app. ♪ first day of the second quarter starting out in the green. the first quarter showed the weakest market performance we have seen during the bull market as high fliers got crashed in the month of march. so what should you expect? with us is paul hickey. i saw your tweet about the month of march crushing in high flying stocks although they're still up in this year. >> i think that's the most amazing thing about the first quarter. how quickly the frenzy into
these stocks came and went. i think part of it was the slow economic growth. people were rushing into the sector and then when economic data improved a little bit, people started rushing out because growth wasn't at such a premium. so what we did is looking at some of these names like you said that we think may look attractive, may have the potential for a good bounce in the second quarter. two healthcare names, biogen and my lynn and then facebook is another one. all these stocks have pulled back and they're trading just above where they broke out from in january. so you have a defined risk. >> you pulled out these names because of the big move in the month of march but you like the technicals. >> right. >> let's look at facebook for instance. what we're seeing at least here to date maybe not the month of march specifically facebook is doing quite well compared to
twitter. i'm wondering how that factors in? >> it's a three-prong approach here, four when you include the seasonalities. we look at the fundamentals, the technicals and the sentiment. t the fundamentals, you want to look at what's going on with analysts' forecast and where they are even though it's highly valued to their peer stocks and so you can compare facebook and twitter, facebook has been better metrics than twitter. >> with your analysis you're going to need a market that moves higher from this? most stocks move with the overall market, so can we carry that forward with s&p going into new highs? you're probably going to need a handle for the s&p for these momentum names to gain oomph. >> when you look at those 22 names that we highlighted, a lot of those won't come back but
some will. will the three i mentioned definitely come back? i don't know. that's our best guess. catalysts going forward for the remainder of the year, expectations are extremely low, more companies lower guidance than raising guidance. that counters the fact that again, go back to the beige book, 119 mentions of the word weather, never before seen that many. analysts' estimates, the revisions have been positive five days in the last 18 months. analysts have been negative on stocks for a while now and if we think the weather played a big role in the economy here, and if that is the case, what you could potentially see is better guidance from these companies when they report. >> so let me ask you about that. facebook is on your list. i'm long facebook. i like it. but what does weather have to do with facebook? >> all these stocks went up fast and went down fast. the fact is they don't go according to the economy.
they're not cyclical. biotechs went up fast and down fast and i think part of it is to do with growth was very scarce in the economy towards january and february and that's what the stocks took off. as things started to thaw in the economic data these stocks pulled out. >> they're beneficiaries of the bad weather. >> you can say that. >> great to see you. thanks for your time. >> thanks. >> let's play a little game which we like to do. would you rather. we'll look at two high flying sectors. dan, would you rather facebook or gilliad? >> interesting comparisons as we've been double watching over the last few months or so, biotech and some of these social media names have been two of the categories that i think most people have been focused on. i looked at gillisd and facebook earlier and they both had eye
popping performance and both basically have tremendous potential earnings growth over the next year. but here's the biggest thing. one of them is defensive and the other is speculative. gill yad trades at basically 19 times. >> i'm sorry. this one is defensive and which is speculative? >> gill yard is expected to grow for infinity. it has a solid balance sheet, has a product that saves people's lives. facebook trades at 18 times, 16 times next years sale and makes a product that basically kills people or kills productivity. >> it's not cigarettes. >> gill yad has a product line, this whole hep c thing has been a major headline. a lot of these guys bid on total speculation about fda. >> here's a company that demonstrated solid earnings growth over time. if you can get through some of
these headlines in the near term much like the g.m. situation, the stock was down almost 18% from the highs two months agomeago. if we're playing would you rather -- and i set the stage here. >> you did. so would you rather? >> are you wearing briefs right now? it's clear the way you're so uptight. >> you're going with gill yad? >> down 20% right at it's 200-day moving average. i i think facebook is speculative. >> do you think gill yad is offensive? >> i think it is. if you look at the entire -- >> wait, offensive or defensive? >> offensive. if you have got a place where people only had to worry about their hiv patents falling off a cliff and they suddenly have a drug this is a company that's got a new life line.
>> when you think defensive i think other people have a totally different description in mind. >> especially a sector that's up double over the last 12 months. >> he bent the rules pretty well. >> they're both speculative. if you are big the biotech stock, you're speculating that they will come up with a new drug. it's a speculative investment. >> the stock is down 20% off of its highs. it bounced today but that's a chart that's a very difficult chart to grab. >> earnings are supposed to grow 86% this year, 56% the year after that. sales 44 and 31% respectively. >> okay. was this fun? >> yeah. coming up next, with casino stock soared in march but can the macau trade be short lived. plus the man who made this shower selfie famous. he's changing his tune saying
take a look at the major casino stocks today kicking off our top trades. wynn, mgm all seeing gains today after the first quarter gaining revenue came in above estimates of 20%. the street was expecting 15 to 17% for the entire year. grasso? >> these stocks actually trade off of an account we all know. las vegas is where i always seam to lean as far as a pick in the casino names because they have
singapore. everyone else has macau and vegas but they've an added growth spurt. april is a great month to invest. >> why ? >> people getting their refund checks. plus you have sweet 16, basketball, a lot of guys -- think about it, i bet a lot of guys spent of month in vegas. >> tim? >> maybe. >> it's a good name to invest in casino names and they still look okay on a chart and on a technical basis. >> we were shorting mel co when it was trading at 44 times earnings. 20% growth is great but macau has been growing at 60, 40% and that's what's driving so these guys who have grown are not going to do that. it's rallied ten percent in the last three days. watch the stock, ought be a
seller. >> united continental soaring five percent. ubs saying it believes the airlines as a whole will continue to grow. >> this is a big move or united and all the airlines over the next few days. i like this sector. we all know they figured out how to run their business and you saw oil down a lot today. if we start to get lower oil prices, these airlines are going to do even better. here's how you play it. united airlines 45.5. you wait for that price and that's where you buy it or go into jet blue and buy on a pull back. >> let's move to the emerging markets breakout. after a rough start to the year emerging markets index are rising 8% since february lows. ambassador, we got to go to you. >> the key is it's rallying -- way outperformed the s&p which is a spread a lot of us followed to get a sense of there's
sustainability. you always -- the prices have gotten so bad, opinion polls on bilma so poor. what we learned from yellen is that possibly rates could normalize faster. emerging markets love that. i know it's contrary to what people think. i think at 43 on the emerging markets i would be sellingup side. it's not going to bust through with the back drop we have. i'm waiting for more global growth. the time you make money is when things go from terrible to bad. we had that terrible moment in february and if you bought them then you're going very well. >> i wonder what jay carney thinks. i'm just kidding. dan nathan, you were in emerging markets trades. >> two weeks ago these guys had a great call. i got short using the taper tantrum playbook from the spring. yellen's testimony to me
signalled that eem could go and test a new low. i got carried out but i was long puts. they rolled off. i would actually look to tim's point. i'll be a seller at 42. more reaction to ceo mary barra's grilling on capitol hill. has the g.m. brand been damaged? we'll hear from a top executive for his take. plus two exchange ceos battling it out on cnbc. why the harsh words? we've got the details straightaway.
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money." we are live at the nasdaq market site in times square. the head of the highway safety administration is testifying right now on capitol hill over g.m.'s ignition recall. earlier today g.m. ceo mary barra faced a congressional committee and testified that the new general motors is nothing like the old. >> we've moved from a cost culture after the bankruptcy to a customer culture. we've trained thousands of
people on putting the customer first. we've actually gone with outside training. it's a part of our core values and it's one of the most important cultural changes we're driving in general motors today. >> so the question now is will customers forgive g.m.? let's bring in jack muir at kelly blue book executive editorial director and marketing analyst. great to have you with us. >> great to be with you. >> i guess the question here is do you get the sense that customers are hesitant to buy a g.m. vehicle now that this is going on? >> they haven't really seemed to be. it's interesting. this has been a big story for at least four weeks now, but yet it has not had much effect on sales of g.m. brands and partly because g.m. sells under different brand names. g.m. doesn't go out there to market so much as chevrolet, buick and cadillac. >> when you go to a g.m. dealer and you're getting to the point
in this issue where g.m. is being pushed or pressured to compensate victims and they may not, isn't that just bad optics? from a consumer standpoint that's terrible. >> absolutely. it's bad optics and something that g.m. wants to get past as quickly as it possibly can be and it is painting this as a problem from the old g.m. it is now portraying itself as a brand new g.m. that has a different mind-set, that approaches the business in a different way and i think they're really doing that. i don't think it's window dressing. >> g.m. is introducing 17 new brands or new models. ford is introducing 23 new models, 16 in north america. is this the new landscape of the automotive industry? are we going to get used to recalls with a lot more technology into these cabins? >> hopefully we won't. hopefully this will spur development, spur immediate change. some of these issues were raised as the products were being developed. they weren't even in the marketplace yet. others were raised when people
like me were testing these vehicles very early on, and that's when they should be addressed and that's when this could have been stopped very quickly. but the old culture at g.m. was to let these things go and it was a bureaucratic culture where you could pass the buck pretty easily and that's what happened i think over and over again. >> i think a lot of people will be confused, the average consumer. old g.m., new g.m. what they know is that g.m. is making cars and they want to buy a car. can you think back to other past recalls from manufacturers or maybe even g.m. where it seemed like something terrible was happening at the time and they didn't lose market share? that's a question investors want to know. are they going to lose sales because of this. >> what we saw most recently and the most recent thing that is kind of like this and actually i think it was more devastating to the brand and the company was the toyota situation with the
so-called unintended acceleration. that had to do with vehicles currently in the marketplace and at the same time it had an immediate effect but toyota has bounced back very strongly from that position of just three years ago. i think this will get in the rearview mirror of most consumers very, very quickly. >> jack, we're going to leave it there. thanks for your time. we appreciate it. >> my pleasure. >> i think those are excellent points in terms of the cars are not on the market right now and the other issue with toyota was much more devastating and therefore it had an immediate impact. now it's like nothing happened. >> you haven't seen impact in the sales and he makes the point that you do go to a g.m. dealer but you're buying a pontiac. dan is buying a pontiac gt. >> you just offended all these people out there. >> there's nothing wrong with that. >> i spent the last week driving a g.m., the yukons, the
suburban. loved it. >> fuel efficient, dan, nice. >> time now for pops and drops, the big movers of the day. intuitive surgical up 13%. >> they got fda aprool for a new surgical robot. the stock has reclaimed the gap from an earnings miss. i would not chase the stock here. >> drop for cliffs natural down two percent. tim? >> fill feeling the hangover effects of falling out of the s&p. i own it and i'm staying in. >> rite aid up two percent. >> they bought health diagnostic services. stock is up two percent. it's like meh. >> what was that? >> it's not yiddish. >> i didn't say it was yiddish. >> we all know what he means.
anyway -- >> what i do like is that it bounced off 620. >> pop for kb home. >> all housing recoveries happen when rates are increasing. kb homes should probably be bought from these levels. it's one of the cheapest in the space. kbh in particular, they're in the hottest growing markets. >> drop for originalality. two small phone rivals making the same april's fool jokes. both announcing samsung fingers, the first all over hand wearable devices that offers flach lens auditory reproduction. the glove comes equipped with
high arrest camera and boom box capability. drop for both of you guys. >> nice getting deaf leopard in there. >> good segue way. >> coming up we take a look at why investors may be fleeing cloud stocks, will they get grounded. plus the fight over two ceos put traders at a stand still today. what's their beef? more fast straight ahead. just waiting to be found. 648-1 tdd#: 1-888-648-6021 at schwab, we're here to help tdd#: 1-888-648-6021 bring what inspires you tdd#: 1-888-648-6021 out there... in here. tdd#: 1-888-648-6021 out there, tdd#: 1-888-648-6021 there are stocks on the move. tdd#: 1-888-648-6021 in here, streetsmart edge has tdd#: 1-888-648-6021 chart pattern recognition tdd#: 1-888-648-6021 which shows you which ones are bullish or bearish. tdd#: 1-888-648-6021 now, earn 300 commission-free online trades. tdd#: 1-888-648-6021 call 1-888-648-6021 tdd#: 1-888-648-6021 or go to schwab.com/trading to learn how. tdd#: 1-888-648-6021 our trading specialists can tdd#: 1-888-648-6021 help you set up your platform. tdd#: 1-888-648-6021 because when your tools look the way you want
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are the markets rigged? >> they are not. >> how can you be so confident? >> sorry, we got a hearing. >> that was mary joe white stating emphatically that the markets are not rigged by high frequency trading. hft was also the topic of a heated debate as ceos of two exchange traded jabs. listen to this altercation between bill o'brien and brad katsuyama. >> he said it in the book. you said it in the book, that's when i knew the markets were rigged. it's disgusting that you're trying to parse your words now. >> you are quoted that way in the book but -- >> let's walk through an
example. >> do you believe it or not? because you said it. >> let me walk you through -- >> lets a yes or no question. do you believe it or not? >> i believe the markets are rigged and i also think you're a part of the rigging. if you want to do this, let's do this. >> the heated exchange comes after the issue was brought back into the spotlight by michael lewis's book flash boys and after the fbi announced high speed trading initiative. bats as you recall was going to go public, had a glitch on their own exchange and never did. that's sort of the back story. >> these are guys that are in the middle of it and so you get a sense that there's more that we don't know and that's what has people so alarmed. as a guy that's in the market every day, i care about people that have preferential treatment or getting inside information. that's what we need to find out. being fast is not a crime. >> the real problem is
fragmentation. the issue you're worried about is liquidity. fragmentation where you have 13 exchanges, 50 some odd dark pools, it's supposed to help the end investor, competition, it doesn't. right now all you do is fragment the market so much so that no one stands up to bids, no one stands up to offers. they're spliced. >> you're saying it does the opposite to liquidity, it sucks it out of the market? >> yes. if you think about it, you have to make sure you're represented. so many different venues now. you're splicing your own order by tenths or whatever it might be and you're not even standing up to it because you don't know where the stock is going to trade. in theory it's supposed to trade best bid best offer. in practice it doesn't work. but they thought they were solving a problem. >> most people out there when they hear the market is rigged they think i can't make money, i shouldn't invest.
this is not a place for me. you can still make money in the market. still find your 401(k). you're talking about the minute u sha of it. there are guys on wall street 50, 100 years ago that would run across the street on front run orders because they heard it on the phone. this is a different game. it's still okay to invest. >> traders think this stock could go higher. dan nathan is at the smart board. software names in cloud in particular have outperformed technology. >> old software that's moving into the cloud has and we're going to hit that in a second. today here's a stock sales force that call activity was three times puts. a trader bought 3,000 of the june call spreads, paid 263 and that's defining their risk between 6273 and 70 where they can make up to 737.
what's interesting when you look at this chart right now, back in february the stock topped out at 67. the break even level is back near these highs. the stock came back down to support. the that was interesting after a 20% selloff. they're taking advantage of the price of options. let's go to the old tech names moving into the cloud. this is microsoft. this is a 14-year high and then here's oracle, 13-year high. to me obviously some of the names old tech have benefitted from the move out of chr, red hat and service now but one trader sees future gains so maybe you see a reversion of this trade. >> microsoft announced a bunch of price cuts. grasso, i haven't seen you for a couple of days. what are you thoughts as we go
into this conference which starts tomorrow? >> dan hit it when he was talking about safety bets with his biotech stocks. this is a space where people see that this is the safety bets for them. so microsoft is actually gained a lot of new investors because now you're mentioning cloud space. you're mentioning all the sexy words and people are starting to rethink what they thought of an old tech name. >> you can catch more options action every friday, 5:30 p.m. eastern time. check out the website. coming up, the man who couldn't live without his google glasses throwing them aside and calling the product doomd. what changed his mind? more "fast" coming up. ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs.
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young up and coming companies so you have your finger on the pulse of these things. why do you think it's doomed? before you loved it. >> it's not doomed long term. i still think a wearable computer on your face is going to be a big deal. this is the only gadget that knows where my head is aimed and where my eyes are aiming but this product is flawed as it exists right now. making a call with it, the speaker is substandard. you can't put more than ten contacts in here so it's hard to make a call because you don't have a keyboard with this thing. how it was sold to us two years ago at the google io conference, they jumped people out of a blimp and they were showing live video coming off this thing but i can't do live video with it, at least not with the native product so that's a flaw. then you look at the photo. if i take a picture of you here, i can't put that photo on instagram which is where most of the people are wanting to share
photos lately and even getting it on facebook or google plus it requires me to talk to it. if i'm at a concert like i'm going to be at coachella in a month and it's almost impossible. >> i'm sorry, but if you take a picture and if you're not going to talk to your google glasses to tell it so send it wherever you want to send it, how would you know? >> you say, okay, glass, take a picture and it will take a picture, or you push this little button. then you can forward it to google plus, but how do you know that that picture is sharp, that screen just is not good enough and i can't zoom in the picture. >> aren't you asking a whole lot from google glass which is still in the early stages? aren't these things going to be worked out? >> i give them that benefit a year ago. i have had these for a year now. a year ago i was really excited and i just overlooked these flaws, but now they are -- it's about time for this thing to
come out to the public and if these flaws don't get fixed, people are going to be unhappy. >> have you been wearing your glass for the whole time? there was a shot of you in the shower with it on and you're wearing it now. i mean, you really put this thing to the test. >> yeah, most of the time i'm wearing it. i've worn it a good 80% of the time for the last year. >> is there a shot you broke it? maybe it wasn't water proof. >> did you take that picture yourself or did someone take that picture of you? >> my wife took the picture of me. that was a stunt to show that it's water resistant. >> how long have you been divorced for now? >> robert, i've got a quick question. google though is, like facebook, acting outside of their core business to try to find disruptive technology, not find stuff in their own space. do you agree with what they're doing? it's about whether all these gadgets, that this is what these guys have to do. do you agree with this strategy? >> i do agree.
google is an aspirational company, a forward thinking company, one that has cars driving around and they are putting balloons up to bring internet to africa and other countries and doing these wearable computers including a watch that they announced last week. i think the strategy is good. it's clearly going to be an interesting product category that i expect a lot of others to jump into. it's just they are the first ones, the ones trying to cut through the trees of what this product is. that's why i gave them slack a year ago but now it's been a year that i have had this and it's like when is this going to get fixed so that it works. >> robert scoble, the lee yayson officer at rack space. >> i'm worried what he's going to do with that picture of you. >> we're not in a shower so it doesn't make a difference. let's get the trade because we were talking about how much
money google might have spent on this. they had the luxury because they have gobs of money. >> we are the first pitch of the first inning. other an apple, i don't think google will do it. coming up the market hit a new all-time high but is this a double? cramer is unveiling surprising data. that and much more top of the hour. meantime, your first move tomorrow when we come right back. stay tuned.
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time for the final trend. >> ibm. >> brian? >> one name that i don't think dan will find meh is amd. buy it. >> grasso? >> an old tech name that seems like it's got a lot more juice, hewlett packard. it's a new company. it's new tech like the old g.m., the new g.m. >> here's a stock that actually has no juice in it right now, costco. they're going to report march sales next week. i bought some calls today to
find my risk into their march sales reports. >> tighty whities. >> by the dozen. i'm melissa lee. thanks for watching. see you tomorrow at 5:00 p.m. for more "fast." my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. my job is not just to entertain, but to teach you. call me at 1-800-743-cnbc or tweet me, @jim cramer. did someone flip a switch? everythingha