then we have to be concerned. >> thank you all so much for being here. >> fast money coming up in just a few seconds. >> over to you, melissa. >> fast money starts right now. i'm melissa lee. here are tonight's line-up. social climbing to all time highs. breaking records today in twitter has gone from a teflon stock to cult-like status. is it too late to get in on this investment? no juice for blackberry today and what it means for the smart phone wars. trouble brewing in china?

find out why a potential credit crunch could send shock waves. >> the dow closing at the record high. names light twitter, tas esla, solar systems. and that meteoric rise is reaching beyond financial news, even catching the attention of blogs like the drudge report. when was the last time you saw that? does that mark the top in the stock? >> a huge volume. >> my view on twitter is everybody including myself said it was going down to the mid

30s, buy it then. now 20 forms later, that doesn't matter. it's a supply and demand thing. maybe today flushed a lot of people maybe we could see a bit of a pull back. >> what is interesting about this stock is that investors love this stock. wall street analysts, not so much. 45.62, that's the estimate of 21 analysts, excuse me. gordon, it's an interesting dichotomy here. >> i think it's overvalued. everybody is saying the fed is tapering. it's still $450 billion. their balance sheet is going to

expand. i think the momentum play is still there. with the valuation where it is we wouldn't be looking to get into the stock. >> we mentioned cult-like status at the beginning. we mention this because there was an analyst floating around and this is their quote. they perceive the next dominant media tech platform. >> i realize these are different industriesment when these things take off they're great for the ride. i don't think it's wise to shorten it. it can go higher. if you're not in it. i would say stay out of it. who wants to take a huge gain in

the last three days of the year? >> this has all the earmarks of something going on. somebody thinks they know something. there is a shortage and they didn't bring out nearly as many share shares. >> we talked about it at noon with melissa. how many of those traded today. over 400,000 calls traded. 300 and some odd thousand of those were just in the january time frame. they are very short term. they are using it as a substitute for stock substitution. why buy a $75 stock if you can buy an option for eight or nine dollars or two or three dollars when you're talking about they are buying 85, 90, 95. this is with the stock at 75 and they are saying by january it will be there.

do i think it will be there? not necessarily. >> you were talking about going into a prayairs trade, twitter facebook. >> i did it a week ago and i expected to be in for weeks and months. i sold out of facebook and went into twitter. i took the trade off. >> i can't justify a move of 30% on the up side. >> you are the options guy. this is huge. these people who are buying calls. >> well, they make it if they're selling them. they're paying a lot of these things.

i think that makes the most sense right here. i will take a slice of that 70 to $80. >> for you folks at home, john will be at denim and diamonds. >> i was waiting for somebody. >> this shirt is all black. it's got pinstripes and embroidery. it's amazing. >> it's just good luck to wear tim cook black. >> apparently. >> for me, anyway. tesla higher by more than 10%. ben, great to see you. >> thanks for having me. >> china has not figured out how to tax vehicles.

is this really the market that has the potential that people want it to have? >> obviously china is going to be very strong. i think that we have a little bit more bumps in the road. it's probably noise but it will take a little bit. >> you made a great call. we do give you props. >> in terms of downgrading the tok, really close to the high. your price target is 20% higher. >> yes. >> at what point do you say this

could be a great stock? given the upside that you see to your price target, within your coverage universe, are there any other stocks that have the same or greater return over the next 12 months? >> i think there are bumps in the road for tesla. i think we have seen lower lows than we saw. i would rather be in solar. i think it's going to be one of the strongest years we have had. people get caught up because of solar city. they have been up for a couple hundred percent for the year.

>> what percentage of this is an intellectual property play? they seem to have it figured out, them being tesla. >> i think so. that's probably why it deserves a valuation that it has. i think in the long term they are the leader of the technology. tesla is is a couple years ahead of them in terms of battery costs. down to their store fronts. >> i do want to ask you about solar in just a second. 100 or $200, what's the next stop? >> it happened very quickly but closer to 114. >> all right. let's switch to solar. >> you're talking about solar

being very strong. i will take the opposite view there. china is clearly your number one target. we had a chance to speak to the president and they put out specific targets for utility scale and solar insulations. he said he's going to stick to that here. are you still as optimistic? and secondarily, i know that solar city, sun pow er are not s tied. as you know, that will weigh negatively on the stocks. >> you're right. merry christmas.

there is a lot going on besides just the china demand. obviously you know the module prices have come down dramatically. that's what is driving the global demand. china is a very important market. the biggest market in terms of megawatts. we were talking about germany a couple of years ago. now we don't have to worry about all of that. >> sun power over solar city? >> in the longer the, yes. i do think so. there is technology value there. and you know, you have to tally

70% of them you have great management team and great balance sheet and you don't have to just deal with the short term risk of just being exposed. >> ben, great to see you. happy new year. >> let's trade this thing. >> the move up to 194.5. this move we have seen. that's a 50% correction. i don't agree the momentum is back. i think the choppiness is back. >> we think that the market is going to be tough. module prices are up. margins are going to come down. we think the stocks are in for some trouble next year.

>> ups and fedex didn't deliver packages on time. did anyone come through without a few bruises? the ultimate channel checker will tell us who came out on top. plus the problems in china that could deal a shocking blow to commodity plays next year.

>> today's top trades. first up, soft bank's newest target. >> this is rapidly consolidating. as the few remaining independent players. they have got to think about how the regulators are going to look at it. its now at valuations. i think if you have owned this stock, this is probably a good time to ring the bell.

>> he couldn't round up the money mill. i think additionally, when you see a big turn over, those wash out tops or bottoms. this isn't one of those. it's not the 150 million. it's not the 50 million. >> i think it actually print 780 or 785 recently. and then you still have a precipitous drop today.

>> topping 16,000 today for the first time in six years. up about 2.5%. five year lows here. >> yeah. it is interesting because the yen has been week and the nikkei has been moving. something's wrong here with the stock. i think it should be a lot higher. i hike the name. i think there is something to it. >> if you had asked me a month or two months ago. i would have said 150 easily.

and it's not. that worries me. >> you don't necessarily have to be in the big capex porters at this point? >> no. >> you heard me say earlier that i don't like the currency devaluation game that japan is saying. companies like toyota are not just based in japan. sales and production are all across the globe. i think you're kind of stuck opening and waiting. that's a tougher road to hoe. >> coming up next, another record closed. now is the perfect time to look outside the states for some great opportunities. plus we will show you unusual activity on the high seas and

what it all means for your portfolio. stay tuned. [ male announcer ] this december, experience the gift of true artistry and some of the best offers of the year at the lexus december to remember sales event. this is the pursuit of perfection. tdd#: 1-888-648-602121r tjust waiting to be found. ties 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 tdd#: 1-888-648-6021 and work the way you think, you can trade at your best. tdd#: 1-888-648-6021 get it all with no trade minimum. tdd#: 1-888-648-6021 and only $8.95 a trade. tdd#: 1-888-648-6021 open an account and earn 300 commission-free online trades. tdd#: 1-888-648-6021 call 1-888-648-6021 to learn more. tdd#: 1-888-648-6021 so you can take charge tdd#: 1-888-648-6021 of your trading. (voseeker of the sublime.ro. you can separate runway ridiculousness... from fashion that flies off the shelves. and you...rent from national.

because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (natalie) ooooh, i like your style. (vo) so do we, business pro. so do we. go national. go like a pro.

>> dell is on track for its best yearly earning. here to explain why the chief global strategist at jp morgan fund. david, good to see you. >> good to be here. >> why should it fade? a lot of strategists have very optimistic price targets. >> i didn't necessarily say it would fade. the stock market is going to give you a good deal less. we are 30% higher than we were a

year ago. i thought more than 10% a year over the next five years. people need to temper those expectations. >> you're looking at europe when a lot of other people are looking at japan? >> i think so. europe's got a solid recovery story. they start out with an unemployment rate of 12%. if it continues to improve a number of years. there is a number of earnings potential growth. and discount to u.s. stocks so i like that story. on japan, i like the japanese story, but there is a lot of risk in here.

japan is going to raise the sales tax. maybe they will get into the depreciation, maybe they won't. they are like a cat on their ninth life. so i -- i am basically what optimistic. i don't see as much risk in europe as i do in japan. >> i agree with your comments. i follow you quite often. i follow mr. lee and jp morgan who has taken on the bull's monotra here in the u.s. great years like 2013 are usually followed by another great year. how do you respond to mr. lee who is also from jp morgan? >> you know, i don't really have any particular disagreement. i tend to make longer term

forecasts than tom does. but, fundamentally, i think the u.s. economy will have a very good year. it will be the strongest year since 2005. we may well see a continuation in this momentum. we are seeing investors move from bond funds into equity funds. but when i think of it in terms of valuations, we are above long term advantage. i think people need to look for opportunities outside the united states and not just here. >> david, thank you. appreciate it. gordon johnson, europe over japan? >> i think so. i think that that will be a major issue. >> let's move on to the next

subject. take a look at several of the dry bulk shippers today. a lot of these are new highs. dr. jay, you like this space? >> i do. and i have liked it for the last two months now. this thing has been on fire. >> do you have to believe in the china story in order to like the space? >> i don't think you have to but it's certainly a big contributor to it. i think that china will have some issues that they have to deal with. shippers, the momentum behind, it's not exactly the same as tesla or twitter. but its turn overs are five or six times normal of stock and options. that is telling you people are getting in here, betting that the stock gets over five. if it does it might get more institutional. shippers have been out of favor. this might be their come back.

>> more leveraged to energy. can you take a look at the sector? >> the ones that we like are in the master partnership sector, which has its own at but s own . they tend to be energy plays liquid, natural gas shipper as d the like. to us it is very, very attractive. that's where we are. >> alreadies have been interesting, too. we talk about railroads on this show for a long time. the one that has had the most has been kansas city southern. it is seeming -- i don't see anything getting them out of it. >> that's more of an energy play as well.

>> nobody ever talks about it. unique to them. >> your thesis hinges on the fact that companies have not spend for a very long time. >> capital stock if you look at it from the united states, it's 22 years old. if you look at productivity, we're talking about roughly zero% growth. so productivity has declined. >> gordon mentioned before the problems brewing in china. it could shake up your portfolio. coming up, that story coming up. later on, ups and fedex facing major backlash over packages that did not arrive in time for christmas.

straight ahead, stay tuned. we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. it's as simple as this.

at bny mellon, our business is investments. managing them, moving them, making them work. we oversee 20% of the world's financial assets. and that gives us scale and insight no one else has. investment management combined with investment servicing. bringing the power of investments to people's lives. invested in the world. bny mellon.

>> time for beast of burden? >> the first three notes of beast of burden may be the best guitar lick in all of music. that's trade school. >> it is. >> right there. >> time now for pops and drops. big movers of the day. we have got a pop for go go. >> we have got the ceo on. it's a great trading stock. >> a weak period of december, ebay is sicklically great to begin the year. below the $50 level. >> a whole lot cheaper.

you don't have to worry about it. >> as usual, you had me at monster. it's a nice pop and better than normal volume. that's a strong move. also four times normal option activity. >> and we got a pop here. for glow in the dark pigs. scientists managed to breed green glowing pigs. they are perfectly healthy and should live as other pigs. scientists hope it will open the door to genetic therapies to treat human decisions. >> you have to eat that pig bacon, is there anything you have to worry about in the aftermath? >> they were supposed to bring

these out before christmas. other animals being bred to be glow in the dark. >> all over it. >> mike is in austin, texas, with the options action. >> so, you know, john was talking about all the volume that we saw in twitter options. i did see one buyer of the february 65 calls. they paid for over 3,000 of those. that would be about 17.5% higher than where the stock closed the day. here are interesting things.

gordon was talking abhow much cheaper facebook is to twitter. companies that vastly exceed on the net income line what facebook is doing on the revenue side. so i think in terms of valuation i think that's why people are using options to make their bets. >> all right. catch more. and check out our website optionaction.cnbc.com. rates rising and concerns over a growing credit crunch in asia. plus, the huge rally this year in bank of america along with the rest of the big banks. we have a deeper dive straight ahead. [ indistinct shouting ] a a .

>> here is is a recap in tonight's executive edge. >> 338,000, so that's a drop

from 380,000, so 42,000. big drop. >> the united states is back to the world leader when it comes to economic activity. >> this is a country that used to build 2,000 shopping centers a year. you still have a positive gdp. more per capita in the bricks and mortar. >> we saw a crisis go to 5 trillion. this is a critical imperative time for the bond market and dictate where the stock's going to go. >> we have formed a high times growth fund where we're trying to link together investors who are interested in investing in this business with companies that are legitimate up and

coming companies that need investments chl. >> high times growth club. >> should be serious here. it's fitting that the guy that looks like bluto. >> who is bluto. >> stop right there. >> animal house. he looked just like him, that guy. very interesting. that's a little trade school for you folks. 6. >> will that detrail the stock? >> again, as i stated before, 10 billion next year every month. they're not easing. they are not tightening.

>> i can't believe you put me up to that bluto thing. now i will get all of this hate twitter. i have no capacity for remembering movies. >> i could grab that stick and ask people in times square. >> you go out there now. >> could there be a way to trade those worries in the commodity space? >> we have seen a spike despite significant injections by the ppoc. liquidity is flowing into china at a large rate. banks are very concerned with liquidity. we think this is something that is flying we low the radar. we think it gets much worse next year. if you look at the total social

financing in china, it was up significantly last month. so the money that's flowing into china, the credit that is flowing in is now finding its way into finding more empty office buildings. we think the demand for commodities is going to slow. >> how do you play this? >> the way we're playing that is we're shorting u.s. steel, joy global and more. we think that's going to have a negative implications. we also think that the reduction in capex spin will have negative implications. that's why we're shorting joy global. >> and you're saying that stocks are overvalued? >> we're not in complete agreement. >> on the other hand, on the mining side, companies out there that are dirt cheap.

i think you're absolutely right. what's going to happen with chi china? you're right to worry about overnight lending rates. it feels like this is happening with regularity. and it usually ends with a whimper not a bang. >> let's move on here. >> failed to deliver packages that were supposed to arrive before christmas. chief knowledge office. that's a big title you got there. you're the chief of all knowledge there. >> just for our little part of the world, i suppose. >> of course he did.

>> so we heard the story yesterday, you think it's going to be a disaster. but the stocks didn't do anything. >> not surprising. i think at some basic level, you know, if you're doing the math and you figure out that the math broke, these are smart people. if they didn't have the math capable of figuring out how to get the package delivered. you know, it's the same thing. they probably delivered a fair number of them. particularly ups. >> in terms of amazon, it didn't get talked about a lot.

>> joined in the third week of december, specifically. >> as they always do for amazon. you can see that in their shopping behavior. it goes way down in q4, although this year for the first time, more than half of all amazon shoppers were amazon shoppers all year. only wall momart gets more. amazon gets more than target, cvs and wall greens. it's part of the fabric of how people buy things in the country. not a holiday curiosity. >> target has been miserable since july. and obviously the last couple of weeks, the headlines didn't help, right? but at a certain level does the stock become compelling to you when you look at where it's been and where it's trading now? >> target, an excellent business

in many ways, the news on target makes us a little nervous. obviously canada was a significant shortfall over expectations. the other thing with holiday and target, they from a shopping perspective are right in amazon's cross hairs. that's what the category point of view. but the problem is by the time you get to target you have already spent all of your money on amazon. that seems to be some of the challenge that target has on the holiday season. >> today is is a huge day for many folks and obviously for you in the lincoln tunnel, very big. a lot of malls had record trofk today. how much of that is deep discounts and how much is deals

that are not as big of deals? >> a few factorsment one is gift cards, which is huge. as they become a massive part, you also have this fascinating thing where if retailers don't get people back to spend the gift cards they can't count it as rev. there is real incentive for the retailers to get out there and get people back in their stores. i think the story with malls is selective. some are destination tourist spots like mall of america. they're going to do very well. so i think mall traffic, i suspect the reports tomorrow are going to be that mall traffic today, though significant, inconsistent as well. >> thank you. thanks for weathering the traffic and the crowd.

>> gordon johnson in terms of the retail trade, a lot of people were down. >> i think clearly the consumer has been strong. it's looking positive. if you look at all of the negative trends, the lag effect, the government shut down, i think it's amazing that consumer spending has been so strong. these are stocks that, you know, we look at as longs, not shorts. >> values in the retail space. >> growth in the retail space is very richly priced. but i think one demographic is luxury. as people start to move out of the target and into the luxury demographic you will see growth. one place that is pretty cheap is nortstroms. great brand name, great service. >> you actually like jcp? >> i love jcp. it's been weak but the reason we like it is the sentiment is extremely low.

if you look at sales in the november month over month, the best they have seen since july. they have reintroduced private brands, which is 20% of sales. we think it will be a strong stock. we think they are taking value back from kohl's and in 2014, people will look to get back in this stock. shipping stocks -- not shipping but ups, fex ed, no new high? >> bad news good price action. i think in fedex they shrugged that off. today was not great. fedex is cheaper than ups. >> so you're switching uniforms? >> no, no. >> you're not going to wear the brown short shorts? short shorts. >> that is fantastic. >> you think it's fantastic. >> it's fantastic. >> you're the only one saying that. you need to be delivering the

packages. >> that's the footage of me in the warehouse that i'm going to deliver. there i go. see you later. >> did you drop the package? >> they needed you this holiday season. >> that was a great time. i should go back. >> maybe you should go back. you treat me pretty -- >> hash tag sure. >> moving on. we are trading your fweets next. (announcer) at scottrade, our clients trade and invest

exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade-proud to be ranked "best overall client experience." [ male announcer ] this december, experience the gift of exacting precision and some of the best offers of the year at the lexus december to remember sales event. a a a a a

[ male announcer ] at optionsxpress, our clients really appreciate our powerful, easy-to-use platform. no, thank you. we know you're always looking for the best fill price. and walk limit automatically tries to find it for you. just set your start and end price. and let it do its thing. wow, more fan mail. my uncle wanted to say thanks for idea hub. he loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day. [ male announcer ] open an account and get a $150 amazon.com gift card. call 1-888-330-3136 now. optionsxpress by charles schwab.

>> you tweet it we trade it. let's get some of your tweets tonight. bullish on nuance. >> when that stock flushed out at the end of november, we said here's your opportunity. turned out to be the case. we said it probably trades up to 15.5, 16. so although i still like the story, it's not nearly as easy as it was before. if you taught this when we talked about it, there is nothing wrong with taking money

off of the table. >> next one up is jim. will bank of america be back to 20 bucks? i think they will get permission that will help. two, i think people will start looking past tangible book value. as the company continues to get profitable, they're useful. so look to the company to start to get valued on regular book value. the legal woes would start to ebb, they have actually started to ep, al bbeit from a higher level. >> does gordon johnson like american tower? >> there is going to be significant infrastructure investment. specifically mexico as well as south africa and brazil. and mexico and brazil, you have

roughly 4,000 subscribers, and south africa you have roughly 3,000 subscribers. so you're seeing significant investment there. the stock is cheap. we like the stock. >> lulu due for a bounce. >> i own it for that bounce. >> we have got your first move tomorrow when we come back. stay tuned. tdd# 1-800-345-2550 searching for trade ideas that spark your curiosity

tdd# 1-800-345-2550 can take you in many directions. tdd# 1-800-345-2550 you read this. watch that. tdd# 1-800-345-2550 you look for what's next. tdd# 1-800-345-2550 at schwab, we can help turn inspiration into action tdd# 1-800-345-2550 boost your trading iq with the help of tdd# 1-800-345-2550 our live online workshops tdd# 1-800-345-2550 like identifying market trends. tdd# 1-800-345-2550 now, earn 300 commission-free online trades. call 1-888-628-2419 or go to schwab.com/trading to learn how. tdd# 1-800-345-2550 sharpen your instincts with market insight from schwab tdd# 1-800-345-2550 experts like liz ann sonders and randy frederick. tdd# 1-800-345-2550 get support and talk through your ideas with our tdd# 1-800-345-2550 trading specialists.

tdd# 1-800-345-2550 all with no trade minimum. and only $8.95 a trade. tdd# 1-800-345-2550 open an account and earn 300 commission-free online trades. call 1-888-628-2419 to learn more. so you can take charge of your trading.

>> time for the final trade. dr. jsome. >> i like tech and atmel is another maker i like. >> jim? >> bp trading at book value. >> gordon? >> micron. i think the sandisk risk is not real. >> guy? >> a nice day yesterday? >> wonderful day. christmas is the best time of the year. >> ho ho ho. >> merry merry. >> it has not bounced since.

i like it at $78. >> i'm melissa lee. thanks so much for watching. you can see more fast at 5:00. thedom they tore will be here. "mad money" with jim cramer begins 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 and i promise to help you find it. "mad money" starts now! hey, i'm cramer. welcome to "mad money." welcome to cramerica. i'm trying to save you money. my job is to educate you. call me. up day, down day, flat day. there's something you need to understand. investing can be a lot like comedy in both disciplines,