Skip to main content

tv   Fast Money  CNBC  March 24, 2015 5:00pm-6:01pm EDT

5:00 pm
>> jane wells, as no one other than jane could. thanks a lot this afternoon. we should note dan owns lockheed. no space-x though? >> no. i own lockheed martin. full disclosure will reserve comment in general. >> you're supposed to root for them. march madness like the e quif cent. thanks for being here. saved by the bell. does it for us on "closing bell." "fast money" begins right now. live from the nasdaq market site overlooking new york city's times square, this is fast money. i'm melissa lee. tim seymour, carol finerman, and guy adami. twitter closing above the key $50. is it too late to get in on the action? the apple watch out in one month. we'll fell you whether you're better off buying apple stock before or after the watch is released. the top story, the buyback blackout. that is the period of time before a company reports earnings when it cannot announce new any buybacks. we're entering that window for first quarter results. many think a lack of buybacks
5:01 pm
could lead to a pullback in the overall market. goldman is saying invest education should use any pullbacks as an opportunity to buy. companies focus on returning cash to shareholders such as apple, pfizer, time warner and fedex and specially financials, technology, consumer discretionaries. they're the biggest buyers of stocks so they'll feel the most impact. >> time warner, a trailing 12-month basis this is almost a 10% yield between your div and buyback yield. it's a company that to me has a lot of drivers also. the hbo spinout. the bundle spinout begins in a couple weeks. this to me is a name and a place where i think what goldman sachs is also saying is this may lead to buying opportunities. time warner, you don't have to buy it tomorrow. stock preenltly hit an all-time high. i think a lot of these names will give you an opportunity and you should make your polilist a check it twice. >> goldman says in half of the last eight quarters the s&p 500 traded lower during the four weeks prior to earnings season. a period? which we are.
5:02 pm
so the theory i guess is buybacks help prop the stock up or move the stock higher. without that support in the market, there is a dip. but this is your time to go in and buy the stock before they go back into the market. >> certain stocks, i mean, fedex at 1.70. closed at $1.69 and change. it's a level going back to november, december. then other stocks have had monster buybacks traded abysm abysmally now for a long time. ibm is a great example. pete mentioned last week i thinkt stock has bounced and bounced off 155 a couple times. the buyback has done nothing for the stock. the one recent one real quick, look what qualcomm said a couple weeks ago, a $15 million stock we purchased. here we are at 69. since july, the stock has not traded well at all. >> i love companies that do buybacks because i think it's a great discipline capital
5:03 pm
allocation, they don't do something stupid in terms of an acquisition with the money. it shows confidence in their story. but to me, to try to get in and in front of a blackout period for a buyback just seems sort of, you know, i would leave that to someone like pete, maybe there's something to do in the options there. >> you are cute, pete. >> you are too cute by half, feet. >> you know, i think the problem is when we go through the ennine earnings announcements we look for opportunities. i think a buyback plays into it later. obviously it can. to your point, karen, i'm not going to try to outsmart this thing or be cute. we've had great examples over the years when we've seen companies beat up for the wrong reasons and then they get hit to the downside. those are your opportunities. if they do follow up with buybacks, now that's a little, you know, icing on top of the cake finally which is what you want. >> you're saying goldman sachs is bummed in a way. >> that is not my reasoning ever for buying a stock is never going to be, hey, look, i think these guys might buy back -- >> we're in a blackout period
5:04 pm
now. >> i think if that's the way you're going to trade, you're going to find yourself in a very bad spot. >> did you say in four of the eight periods the market went down -- >> the last, yeah. half of the last eight quarters. >> the other four of the eight periods. >> i guess the market goes up or is flat. >> right. wasn't that extremely convincing. that was the best you gave me. that's what i was working with. >> goldman sachs doesn't need to be offended here. having said that, i think the note should be put in the right context. also, hey, the market could go through a period of weakness. no matter what, you could actually have very good support for a market. you're going to see an 18% increase in buybacks out of corporate america after a record year last year. there's a place, a bottom under this market. there's a bid here that will probably go away for the next few weeks. 80% of the s&p reports between april 13th and may 1st. it doesn't tell you to go out and buy the names but it outlines a dynamic in the market. google announcing it hired a new ceo who's leaving morgan stanley to join the company. the new hire leading many to
5:05 pm
wonder if a dif devidend or buy could be in the future. mary thompson joins us with a look at google's newest associate. >> she's 57 and a 28-year veteran of morgan stanley where he served as an investment banker covering tech an financial firms. she's been part of the senior management team that stirred morgan stanley through difficult and sometimes shaky financial times after the financial crisis. in a memo obtained by cnbc, ceo james gorman wrote, "it is with a heavy heart we see her go. over the course of the last five years ruth's work has been instrumental in putting morgan stanley on our front foot again. a graduate of stanford and morton business school, porat named cfo in january 2010. when she joins google at the end of may the tech jigiant will ge an executive who not only has deep experience running a balance sheet but the corridors of washington, d.c. she guided the firm through a changing regulatory landscape. during the financial crisis she
5:06 pm
led the morgan stanley team advising treasure try on fannie and freddie mac. president obama considered her for the post of treasury deputy secretary but porat withdrew her name from consideration. she'll be replaced by jonathan pruzan. that will happen at the end of april. back to you. >> mary thaompson, thanks for that. will a dividend or buyback happen soon? martin joins us on the fast line. martin, great to have you with us. what's your naugthoughts on tha terms of capital return? >> well, i think both of those points are probably a little further off than people might like to think. i cover media entertainment stocks and obviously buybacks are a theme there. i still think google has a lot of growth. i'm looking into this as a positive move, number one, ruth coming in, bringing in more financial discipline. patrick had i think good financial discipline. she'll hadd more but at the sam time not stifle google's
5:07 pm
investments. one of the attractive things is the fact she has a tech, silicon valley and wall street background so it can be a very good balance. you know, i think at some point there could be talk of a dividend. i wouldn't put it in the 2016 time frame to give you some frame of reference. >> there's a fine line between discipline, financial discipline, and stifling google's investments. some people might say some of those investments were basically for what, wasted money. so what do you think, what sort of discipline do you think she'll introduce? >> i think some of the things that have been longer term will be exactly what you see not go forward or not go forward at least as fast as it's been. i think some of the interesting questions will be how larry page who not very visible to wall street or the public in general is a very quiet but strong leader. ruth is coming in with a strong financial background. strong financial personnel. i think there's going to be a lot of healthy debate there. i think at the end of the day they will fine tune the investment portfolio, the capital investment planning, and
5:08 pm
the onex as well. i think one of the things that has been an issue, i think facebook as a direct competitor has done a better job in the last year articulating where they're spending, how they're going to spend and putting some framework around it. i think google needs to do that. i think ruth will bring that. at the end of the day they won't stifle the investments to where they still need to be fupushing for growth. eventually maybe a dividend but not real soon from my view. >> i love the higher -- when we learned two weeks ago at the cfo would be stepping down, it would seem like this was probably already deep in the works. i think it's a great, great hire. however, google i do view as somewhat insulated from any sort of outside push about capital allocation. they are controlled by the insiders. they've been resistant so far. i hope that that's changing. clearly she would be an excellent voice to add into the boardroom, but i think that this transition should be a smooth
5:09 pm
one and should give the street confidence that the business is in good shape. i think she's an outstanding hire. hopefully her interesting mix of experience will bring them some financial discipline, but i'm not surprised the stock's up. i'm actually surprised it wouldn't be up more and that morgan stanley wasn't down. >> along those lines, martin, are you more bullish google with this hire? >> i'm more bullish with the hire. the other point to keep in mind is google is competing extremely heavily and intensely for key talent. facebook is the obvious one, again, from a big public company standpoint. a lot of start ups. larry page, again, quiet leader. he knows the stock needs to do better in order to keep, retain and attract new top talent. if you can blend this formula really well with her, again, financial discipline, not to make it sound stifling, but add to it and make the whole greater than the sum of the part, and if you get the stock to perform better, you'll get more people, you know, either attracted into
5:10 pm
google or staying and frankly it's a real competitive search for top talent out there not only in silicon valley but out 06 parts of the world they operao opera operate. that at the end of the day is -- he doesn't come out and say that publicly very often. i think that's what's driving this move as well. >> martin, we do appreciate it. martin pyykkonen. pete najarian? >> i like it more. it's changing things up. he mentioned several times financial discipline. what they have to do is retain some of the talent out in the valley. it's not just facebook. there are plenty of startups out there. that competition level is one of the areas i think you spend. that's the side that goes into the rnd that people never think about. i think sooner or later i expect to see a dividend not too long from now. that's something -- >> are the options markets indicating at all -- >> nope, nope, just my own read through. >> one of my strong arguments in favor of google last week and the march money madness where we lost to these guys and
5:11 pm
facebook -- >> which has done well. >> hey. activism in google is something i think could almost -- the ownership is different than apple. having said that, they have more control of google. this is a key point. but i do think there will be a lot of pressure on these guys to give money back to investors. this is exactly i think a sign they are at least aware of that issue. that and the fact to me this is a company that really is growing, is delivering. they're dominating android, doing smart things with it. youtube, we talk about it. 19, 20 times earnings at 22 times growth. i like that. >> i think that's a compelling reason. everyone makes a good point. i think you should have a 21, 22 multiple on google. going to make $33 or so next year, puts you north of the highs we saw this time i think last year. or early in 2014. stock had a funky 2014. and it finally seems to be getting its legs undernoo s un. speaking of buybacks, a news alert on a new repurchase plan
5:12 pm
from merck. josh lipten has the details at headquarters. >> this news just crossing from merck, the company announcing a new $10 billion share repurchase program and a statement the ceo saying the action reiterates the confidence in the company's long-term business strategy and future prospects. with today's announcement, the company says its total outstanding share repurchase authorization now about $11.7 billion. melissa, back to you. >> thanks so much, josh. pete najarian, this is a pete name. >> this dove fail tails into wh talked about the at the top of the show. i own it because they have a great pipeline. i like the management team. i like the drugs that are presently on the market. obviously they had to go through patent issues over time and some of those going to the wayside. this is a company that just continues to reinvent themselves. stocks move to the upside. these pharmaceutical names, i expect more of them to follow. >> to your point, guy, there's
5:13 pm
only so much of a floor the buyback can provide a stock. >> certain companies, absolutely. >> yeah. >> in that world, i think pfizer sets up a little bit better in terms of stock. merck is -- my wife works as merck. let's get that out there. i want to make that point. i think pfizer in the space is much more interesting at these levels. all right. twitter topping the tape today surging 6% closing above $50 for the first time this year. does the social stock still have more room to run? we'll debate that. netflix getting some love from two wall street firms. the company goes live in australia and new zealand. we'll tell you the best way to play the streaming space. in one month, one month, the apple watch goes on sale. do you buy the stock now or wait to see if people buy the watch? we'll tell you how the stock usually trades around product releases coming up on "fast." friday night, buddy.
5:14 pm
you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com.
5:15 pm
we got this whole thing all wrong. don't worry about declining commodity prices. in fact, my bottom line is that the lower
5:16 pm
check out twitter's breakout topping the tape. shares of the stock up about 6% on heavy trading volume. pete, did you see the options volume also follow? >> absolutely incredible today and started right out of the gate. almost traded 300,000 contracts today. two to one give or take ratio with the call. they came in early, stock started to move, they continued to come in and continued all way to the close. >> what kind are you seeing?
5:17 pm
>> very short was really the attack today. the first couple of weekly trading, obviously march expires this coming friday. there's april and weeklies. there might be more. but they're coming for the 50s, 51s, 51 1/2s, 52s, all the way up. >> friday expiration? >> some for friday, many for friday, many april 2nd and continue to go out on the chain. >> is this a breakout to believe when you look at the chart? >> the option are saying that. i don't think the chart says it, yes. to me, it's still facebook. twitter's getting there. >> i didn't want to play that game. >> oh. >> it's fine. >> you have no choice. >> guy played by himself. >> i mean -- >> not a bad game. >> twitter. >> i tell you what, twitter, when i compare it to facebook, i'll play the same game, i see better monmonetization, sorry. i think a company whose sentiment was so low, clearly this is changing. you have to look at the
5:18 pm
breakout. 54 is the high level on the stock. on valuation, that's not your call. they're doing everything right they need to right now and you can stay with this. >> what the heck? it's like herding cats tonight. twitter or facebook? >> i think facebook. facebook is breaking out. twitter we're questioning whether or not it's a breakout. >> facebook, maybe not. >> they were coming for the calls last week. >> fine. >> yeah, giddyup. petroleum taking a big hit. the company announcing it's not for sale despite reports exxon or continental might be interested in it. they'll sell shares at a 22% discount to yesterday's close. >> i think short term obviously a lot of pain here if you look at the chart, $25 was the low, you can play with that as a bottom if you want to take a shot here. longer term this is a company, this obviously needs to be dropped into the context of your view on when oil prices we roof recover when you look at the curve.
5:19 pm
painful time to own the stock, especially two weeks ago exxon was rumored, other guys rumored to be in play especially losing reserves in places like russia. makes so much sense for them to be picking them up. it's interesting they didn't step forward and make a bid. not necessarily exxon, but anyone who could have used the reserves. it's a great company. is it a canary in a coal mine? we'll see. >> if you'd can't predict how far oil prices will go, you can't get a handle on how much cap x you need to cut. would you make a big acquisition? >> it depends on the strike. i think here -- the stock traded above 40 as recently as a week ago. this is just about as bad news you can wake up to if you think you're in something fthat's up for sale. so diluted. i think the conversion price is 39. they're diluting the hell out of this company to pay down this debt. if you're another enp company that has a stretched balance
5:20 pm
sheet like whiting does and you see they can't get sold -- >> uh-oh. >> -- they never claimed they were for sale, though. >> right. >> if you see they can't get sold, that's a pretty scary feeling. >> so there could be more pain across this sector? >> or you got to ratchet down your expectation of price. >> okay. next up here, netflix moving higher on the back of two bullish calls. cantor fitzgerald upping its private target. barclays hiking its price target to 450 on valuation for 2016, keith. >> they may be right. they may be the clear winner. one of our assertions -- >> assertions. >> my god. i think i've been on too ma many --. 480. my view was if it broke 440 would trade down to 400 quickly. it's bounced since then. i think the 440 level is to resistance. i'm willing to take profit camps and see what happens, in
5:21 pm
earnings on april 20th. if you ask me to pick a level, i'd rather be a seller of netflix than buyer. >> giddyup on netflix? >> i'm in giddyup mode on netflix. we talk about international exposure all the time. it's been laid out there so many times. latin america is the next greatest thing. europe has worked. now it's up to latin america as one of the areas they've got to find the growth that we expect they might get. if they do, the stock goes much higher. >> what i think is interesting, whatever six months ago hbo started talking about bundling and people talked about cutting the cord, it's bad news for netflix. in an unbundled world, netflix is king. it's debatable. this is a technology company, not a media company ain and is overprized. simon property making a final bid for a rival. karen finerman thinks the bid may not be what it seems. the fine print next. plus it's exactly one month until apple's watch hits stores. will the launch be a game changer for the stock in that
5:22 pm
and more "fast money" straight ahead. hello.
5:23 pm
5:24 pm
i am here to offer sophisticated investing strategies. my technology can help you choose the right portfolio. monitor it. and automatically rebalance it. all without charging advisory fees, account service fees or commissions. that may be hard to compute. but i'm a computer. so trust me. it computes. say hello at intelligent.schwab.com
5:25 pm
simon property group upping its offer to buy rival to $99.a a share. is simon really just throwing in the towel? karen's got the fine print. >> yes, this is the kind of fine print stuff i kind of love because this is a bump but really it's roadmap to a drop. it's a modest bump to $95.50. and it's meant to put a little bit of pressure on the company, but we know it's not enough. everybody knows $95.50 is not enough to get it done. so april 1st which is the deadline they've put out is going to come and go. we're not going to see them engaged or see negotiations and will see simon drop. we know this because simon took off one of their most useful weapons, took it out of their
5:26 pm
quiver in that they didn't nominate directors so they really -- it was such a good pressure point to put in the company, they chose not to do it. they're telling you, we're going away. i think it's going lower from here. the only hope if there's some activist out there. i don't think that's going to happen. we're short until next wednesday just to see what happens. >> you're short -- >> macerich. it still has takeover premium in it. people hoping they'll come to the table. they're not coming to the table. >> what's the next -- i mean, what could cause you to re-evaluate at this point? >> an activist coming. . another bump. but simon has said this is our final offer, we're done. they're telling you, we're leaving. let's hit a developing story here. authorities trying to figure out what caused a german jetliner to crash today in the french alps. cnbc's phil lebeau has the latest on this story. phil? >> nellis isknel because it's c little after 10:00 in france right now they have suspended the search for the evening because of darkness. and because of such a remote area where this german wings
5:27 pm
a320 crashed. wednesday will be key. as i mentioned, they have suspended the search for the evening. tomorrow morning, look for rescue crews to go in and actually it's recovery crews at this point, to start recovering bodies of the 150 people who were on board this plane when it crashed. the one good piece of news is that they have recovered one of the black boxes from this plane. we believe it is the cockpit voice recorder. that could provide some clues as to why this plane descended at 4,000 feet per minute during the last 9 minutes of its flight. put that into perspective, take a look at this graph. they were at basically 38,000 feet. and then over the last eight or nine minutes, they went all the way down to 6,500 feet. that's where they crashed. tomorrow, a couple of things to look for in this investigation. the black box analysis. don't be surprised that they have already got this en route to a center for analysis in france. and that we may have some clues
5:28 pm
provided tomorrow. maybe even some recordings. remember, the cockpit voice recorder doesn't only record a conversation with air traffic control, it also records conversation between the pilots in the cockpit. there's also going to be the search for the second recorder. that is the data recorder. that would hold a lot of clues about what happened with this airplane as it was in descent. finally, there was no contact from the flight crew with air traffic control which has a lot of people saying, hmm, what exactly happened here over the last eight or nine minutes that we didn't even get any kind of a distress signal, any kind of an alert out to air traffic control? so a lot of information we think is probably going to be coming out tomorrow in france. guys, back to you. >> all right. thank you very much for the update, phil lebeau. apple watch just one month away from its big launch is now the time to buy the stock? we take a look at how apple usually performs before a new product hits the shelves. and then "fast money" march madness marches on. today it's yahoo! versus sales force. we find out which company will
5:29 pm
join the elite eight of tech. more "fast money" straight ahead. for you is out there. the problem is some of it's in this lab. some of it is in her head. some of it's in this new journal. and the rest of it is in your personal medical history. ibm watson can not only read this data, but understand it. it's trained by doctors. and it's always learning. it can help find hidden correlations and help your doctor recommend treatment options for you. there's a new way to work and it's made with ibm.
5:30 pm
5:31 pm
still ahead on "fast money" it's almost time for the apple watch, in one month the product
5:32 pm
goes on sale. should you buy the stock before the big release or wait to see whether people buy the thing? sales force versus yahoo! yahoo! down 12% this year, salesforce up 14%. which stock is the better buy now? we'll debate it in tonight's "fast money" madness. from the baseball diamond to the business world, little league star mo'ne davis has already inked an endorsement deal and has a movie being made about her. she'll join us here on set to discuss her latest venture coming up. first we start off with apple. we're one month away from the apple watch release. what is the best way to play the event? let's bring in rbc capital markets hardware analyst, amit, great to have you with us. >> thanks for having me. >> when the actual watch was unveiled, it was a sell the news event. why do you think you should buy the stock right now? >> yes, we think you buy apple not for the apple watch alone but three, four different catalysts the company has in its favor, the iphone 6 6 plus that seems to be going strong. the capital allocation that will happen around the apple watch
5:33 pm
launch. it's less talked about but will continue to surprise people on upside. fourth, the apple watch, expectations are fairly tempered for an apple product among investors. this slykely going to be a neutral to a positive event as the watch rolls out. >> there's no possibility in your model or scenario analysis of actually being a negative? >> there's always a possibility about everything being a negative, so this will be a risk, i don't mean to undermine it. if you look at it, this even by more bullish expectations will account for 7% or 8% of apple's revenues. it moves the needle somewhat. by no means does it take off the tail wind you have from the iphone 6 cycle. >> let's talk about the iphone upgrade cycle. let's talk about what you're expecting for this with quarter and potential to disappoint on this quarter. i think it's going to be another strong quarter. that's my view. you have a window on apple through this number and i think things get very difficult on comps. >> i don't disagree, right? so the big data point that tim
5:34 pm
cook talked about on the last call was about low to mid teens of the current install base had moved to the iphone 6, 6 plus. that means 85% of existing iphone 5 or all the users still need to migrate to new one. that should give you i think some good tail wind for this quarter, potentially the june one. then you're right, starts to get very difficult into the 6s launch. i think that's where capital allocation and gross margins could help them. those are less talked about today. >> good to see you. thank you. >> thank you. >> amit of rbc. we wanted to know how apple typically trades before and after original product releases. and according to data from ken show, if you buy apple one month before a product release, the average return will be 4.68% with apple trading positively 77.78% of the time. if you buy apple on the day of the release, hold it for a month, your average return will be slightly higher at 4.87%. apple only trades positively
5:35 pm
55.5% of the time. so, you're not too bad off if you bought it now. >> right. >> yeah. >> yeah. and, you know, the apple wautch he touched on that but went to different spots of what he's convinced about why apple is going to work. one of the areas he didn't bring up was the potential for streaming and sol of that they talked about. >> the tv market. there are all kinds of catalysts. not just financial engineering. everybody likes to talk about these different things. the margin thing is a big issue as well. >> karen? >> i wouldn't be -- i wouldn't attempt to trade around the announcement or the launch, rather, just to see the numbers. you have to know what sentiment is. it's hard to get a sense for exactly what people think the numbers are going to be. to beat that. if you're going to be long, be long. >> tim says -- he says jim cramer says it all the time, you don't trade the stock, you own the stock. that's been the right way to play it now for a long time. there's no reason to believe that's not going to continue. time for pops and drops. big movers of the day. pop for dr horton up 1%. >> housing numbers clearly helped this stock.
5:36 pm
they moved to the upside. feels as if it's breaking out. wants to trade back to levels we last saw in 2006, early 2007. just about 31 bucks. not expensive at 13 times forward earnings. think it trades there. >> pop for hawaii earnings up 7%. >> aloha. this is taking off. a huge hit to the downside in late january. the outlook was weaker. slammed this stock. coming back ever since. nice move. i think there's still more upside to hawaiian airlines. it was 26. now it's around 22. i think it returns for 26. >> drop for pandora, down today. >> the news out is amazon is now releasing their own music service. amazon prime music is something that also will be without ads on a number of the ios stations. if you look at the stock, though, a lot of the stuff will be priced in. i think you take a shot. >> drop for sonis networks down 34%. >> you. the universal drops. there's fraud then there's a
5:37 pm
failed drug trial. then probably there's this. this was really, really bad. this was an enormous miss. it showed that the company was really not expecting it. they had no idea this was happening. they're trying to resize their cost structure. this is really bad. stay away, let it shake out for a while if you want to look at it. time for some unusual activity. pete is taking a look. >> that's what i'm talking about. >> you're watching -- j.d. >> j.d., chinese e-commerce company. last week were buying the june 29th calls. today they come out and buying the weekly expiring, april 10th expiring calls. looking at the 30 strike there. twh twail goi actually going out to the may 30th calls as well. makes you start to wonder is there something going on? i think the chinese internet could speak to that have been moving to the upside in down tapes. i think this is one of the stock that's ready to break out to the upside. >> a tale of haves and have nots. a lot of chinese internet
5:38 pm
stocks, some in retail, look at alibaba have been dogs. j.d. is rallying. people believe it's smaller, can move the needle. a very good management team. their top line is growing. i like the company. >> would you rather j.d. or alibaba? >> baba because i feel like look at where we are reversing the means. this is a stock that's oversold. i'm long it. not long j.d. that's consistent. >> i'm long baba but in the short term i think j.d. absolutely sprints past baba for sure. >> all right. coming up next, it is "fast money" madness. we're heading back to the internet space with the contest between sales force and yahoo!. the winner will move on to the next round and take an facebook for a battle for internet dominance. the loser will be eliminated. do not miss the heated dotcom debate right after the break. stay tuned. (trader vo) watching. waiting.
5:39 pm
for that moment, when right place meets right time. and when i find it, i go for it. (announcer vo) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps. and now, get up to a two-thousand-dollar cash bonus when you roll over your 401k or ira accounts. details at scottrade.com/retire.
5:40 pm
5:41 pm
♪ it is time for our "fast money" madness tournament. 16 tech names compete for the title of "fast money" champion. throughout the competition we'll have exclusive previews on cnbc.com/pro. tonight we're tackling two internet stocks which have had very different runs so far in 2015. one, on one side salesforce.com
5:42 pm
up 14% this year. on the other is yahoo!. struggling to find gains in 2015. down 12%. the winner of tonight's matchup will go up against facebook in the next round. now, don't forget, your vote counts, too. log on to twitter using #fastmoneymadness. tell us whether you prefer sales force and yahoo!. in this first round the viewer favorite will count as wone vot and will be used to break a tie. we've stheeeen that happen. each trader gets 30 seconds to make their case. tim, kick it off. >> we have a tie. let's break it in favor of yaho yahoo!. the sum of the parts valuation has been cheaped. it's linked to baba. guess what, it's moved probably 1.2 instead of .7 since baba has taken its plunge. tumbler, starting to pay dividends. bank of america says they're going to do over $100 million there. the company said that. the bar is so low, that will drive yahoo!. people are not expecting
5:43 pm
anything out of the core. i think this is great time to buy it. >> pete? >> you know, got all the way up to 55, haven't been in this thing for a while. i don't know if it gets back up to 55 because that's up to al y aliba alibaba. i think yahoo! is tied to where baba trades. i look at sales force. the valuation is incredibly high but they actually fulfill a lot of different areas i'd like to see which is growth. this is a company that's good huge demand, huge growth in the cloud. i think this company can extends itself toward $80 a share. it should win this match. >> karen? >> i'm going to agree with timmy here. i always look at valuation. sales force, very difficult for me to get comfortable with that. look at yahoo! valuation. the yahoo! business trading ridiculously cheap because the street thinks it deserves to be ridiculously cheap. i think baba seems to have found a bottom. if they are able to monetize, which they haven't been able to do yet, i think we'll see a floor there, upside in yahoo!
5:44 pm
and we might have some other catalysts, maybe yahoo! japan, maybe you see an activist in there. wouldn't be shocking. yahoo!. >> guy, are you sending yahoo! to go against facebook? >> come on. >> or create a tie here on this desk? >> you're darn right. >> listen, i get it. crm, 75 times forward earnings. expensive. pete talked about the growth. try 33% year over year billings growth despite significant currency head winds. jim cramer just had mark on on march 15th. great interview. there's this new wave analytics platform that the analysts love. i like yahoo! too, with pete, but yahoo! is dead money at 43. can't get out of its own way. sales force. that will get you done, sister. >> tie on the desk. that means twitter vote will break this tie and on twitter you all out there said sales force. sales force advances to the next round and will be paired up against facebook.
5:45 pm
next time we go to the internet conference. >> weak. >> tomorrow we're heading back to our payments conference with an exciting matchup between western union and intuit. who will win? who knows. exclusi exclusive preview ahead of each matchup. you want to log on for that. little league pitcher mo'ne davis joins us right here on the "fast money" set to talk about her new line of sneakers and test out her fast ball on guy adami. who's going to win that one? that's coming up after this break. ♪
5:46 pm
i'm almost done. [ male announcer ] now you can pay your bill... ♪ ...manage your appointments... [ dog barks ] ...and check your connection status... ♪ ...anytime, anywhere. ♪ [ dog growls ] ♪ oh. so you're protesting? ♪ okay. [ male announcer ] introducing xfinity my account. available on any device.
5:47 pm
at mfs, we believe in the power of active management.my account. every day, our teams collaborate around the world, to actively uncover, discuss and debate investment opportunities. which leads to better decisions for our clients. it's a uniquely collaborative approach you won't find anywhere else. put our global active management expertise to work for you. mfs. there is no expertise without collaboration.
5:48 pm
♪ stocks flat today, traders wagered millions in the options. at a big rally. mike has the action. hey, mike. >> hey, so applied materials, yeah this is one that saw more than five times the average daily call volume by 2:00 this afternoon. one of the trades that stuck out to me was a purchase of the june 27th 30 call spread. paid 36 cents na s for that. could be worth $6 million if
5:49 pm
applied materials got to the $30 upper strike price by june expiration. this will give it enough time to capture their general annual meeting as well as their earnings results which they're going to publish out an may 12th. also, of course, the other semis that typically proceed it. a lot of bullish activity in applied materials today. >> i'm sure you saw this, pete. were you in on this action? >> i was. i know mike remembers this as well. just a few, couple weeks, three, four weeks ago, huge buying in there as well, like 50,000 in a single day type of action out there. i'm still long the stock. i'm selling calls against it every time i see the volatility come up. >> all right. for more options action, check out our live show at 5:30 p.m. eastern time on friday. hour thanks, of course, to mike. she's a 13-year-old from philadelphia who made history in august as the first female little league pitcher to throw a shutout in a little league world series game. now she's putting her fame and fast ball to good use. mo'ne davis is teaming up with make a difference every day to create a shoe collection that will help empower young girls. proceeds from the sneaker sales will go to the because i am a
5:50 pm
girl initiative working to help lift 4 million girls out of poverty. let's bring in little league pitching star mo'ne davis. great to you with us. >> welcome. awesome. nice. >> honor to have you here. tell us about the shoes and how now got hooked up with the organization. >> i decided to help a shoe to help around the world and to get girls opportunities they don't usually have and hopefully give them an education. >> you got a lot of things brewing, mo'ne. you're in eighth grade, correct? >> yes. >> you're still playing? >> yes. >> at the same time, disney is making a movie about you. you got endorsements. >> yeah. >> how are you juggling all this? >> my mom does a lot of it. she keeps track of when i have to be somewhere or when i have to do something. and i'm just -- just have to make sure that i'm there. >> you're only 13 and yet already a movie is going to be made about your life. not too many years to tell about. what are you hoping that movie will show? what are you hoping little girls
5:51 pm
or other children will walk away with? when they watch it? >> it's pretty much going to be just like the book, my journey, and hopefully they get, like, all the good details in there, and i just want people just to be inspired and just hopefully whenever they make it big, or accomplish their dream, that they can say it was because of me. >> so high school next year, three-sport athlete. going to focus on? you play hoop. talk about the whole rig going next year. >> okay. i'm going to be playing soccer and basketball and maybe baseball. >> that's killer. >> can you just address real quick, you did a wonderful thing, reached out to somebody who said something they shouldn't have, they wish they could have retracted it. you actually reached out to the university to see if you could get them back on the baseball team. would you mind sharing a little bit of that story? >> well, so there's, the guy,
5:52 pm
and i just -- it was hurtful to me, but, i mean, i just got to stay strong and keep moving on and i just asked them to restate him. >> basically this was a bloomsburg university baseball player who tweeted something offensive. and they took him -- they released him from the team. you said please restate him. what's the latest? >> very classy. >> has he been restated? there's been so much on twitter about cyber bullying particularly of girls. >> i'm not really sure, but i mean, everyone deserves a second chance, so. >> so you're 13 years old. you already have a very big life for anyone. let alone somebody who's 13 years old. is that a lot of pressure for you or do you feel like you were made to do this? >> i wasn't made to do it, but, i mean, it's just a start of hopefully my career and, but, i mean, it is a lot, but then you realize it's not a lot at the
5:53 pm
same time. it's all spaced out. and i still get time just to be a regular 13-year-old, but it is a lot, though. not going to lie about that. >> mo'ne, you're obviously trading stocks all day long, right? and watching this show, osks. just kidding. no. one piece of advice to your fans, something you think they can also reproduce in their own life and something that you follow. >> to inspire oatthers and work hard and have fun with everything you're doing. >> keep doing that. >> good advice. >> congratulations. >> mo'ne is going to stick around. when she was on fallon, jimmy fallon, she threw a couple of fast balls. after the break we're going to have guy adami step up to the plate to see what he can handle. plus, we have your first news tomorrow when you come back. stay tuned. it keeps you keconnected at 30,000 feet. can it prevent future air disasters? i'll ask the ceo. plus a health care play that's
5:54 pm
up today. my take on boeing, honeywell, and 3m. "mad money" is next.
5:55 pm
5:56 pm
coming up on "mad money" tonight, cramer's got an exclusive with the ceo of health care services, a stock up more than 5% today. he'll talk to the ceo of go on the future of inflight wi-fi and he'll give his take on twitter.
5:57 pm
all that at the top of the hour on "mad money." we're back with little league pitcher mo'ne davis. this is a moment we've all been waiting for and guy has been bracing for. she's ready to throw a fast one to guy adami. >> you're thrilled about this. that she could potentially hurt me. >> for your safety, we're using a whiffle ball if you're worried about guy. >> knock him over. >> she brings it. >> knocked him right out of the picture. >> i mean, that's not bad that i caught that. >> that's not bad. >> throw one more. >> she threw the curve ball. >> that was a curve. >> that was nice. >> maybe the uncle charlie. dropped right off the table. >> i mean, it's pretty amazing what she did. really is. it's fan tatastic. a great career ahead of her. >> what do you see far out in the future in terms of your career? >> hopefully the wnba.
5:58 pm
>> basketball, that's where your heading. that's very, very cool. >> that would be awesome. >> let's do another one. knock guy over. let's get down to it. >> you want to try it, wise guy? good thing it's not a baseball. i'm done with mo'ne. now my hand hurts. >> how fast do you think -- that was probably like nothing. >> like, ten. >> how fast is your average pitch? >> about high 60s, low 70s. >> wow. have you ever had an arm problem? ever worry about the elbow or shoulder? >> no. >> lot of tommy john surgeries these days. you okay? >> not for me. >> all right. thank you so much for coming by. >> thank you. >> great to meet you. time for the final trades. let's go around the horn. tim seymour. what do you say? >> i go back to yahoo!. we talked about the march madness. this is time to sell the stock. oversold because of baba. >> i'm looking at ebay, a name that comes up all the time. obviously carl icahn named it. talk about splitting, all the various things that are going to be happening.
5:59 pm
this stock is going to push out of the 52 week highs. i think it breaks through new highs. >> karen? >> two things. final trade. if i could be long mo'ne. >> buy her. >> i'd be all over that. a great career ahead of her. so many different potential areas. but if you need to buy a stock, united rental, i like it right here. i think we could see some improvement in residential construction. which has really been weighing on us a little bit. >> we should start calling mo'ne -- >> tell any. >> fast mo'ne. >> that is genius. >> her team thought of it. i can't take credit. it's genius. >> "fast money." >> we should have a segment once a month or something, fast mo'ne. fast mo'ne on the basketball court draining a three. >> how about you catching the ball from fast mo'ne? >> i caught the ball. >> you looked scared, though. >> he looked scare. okay. >> all right. >> final trade. >> okay. >> the defense stocks, they'll get you done. lmt. >> i'm melissa lee. thanks for watching. see you back here tomorrow at 5:00 for more "fast money."
6:00 pm
meantime, don't go anywhere, "mad money" with jim cramer starts right now. 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. i'm just trying to save you money. my job isn't just to entertain but to educate and teach you. call me at 1-800-743-cnbc. or of course tweet me @jim cramer. you want leaders? this market is giving you a ton of super high growth leaders. the only pro

59 Views

info Stream Only

Uploaded by TV Archive on