laurie's book. >> and tune in to cnbc tonight. you can catch a "shark tank" minimarathon. and following that, mark is on "the profit." and he's going to tell us what happened. >> no. watch it. >> "fast money" is coming up in a few seconds. what's on tap? lion's gate, got the pop. we have the vice chair of lion's gate, michael burns, on-set. >> over to you, guys. "fast money" starts right now. we have two developing stories in the auto sector right now. general motors and tesla. reports that the u.s. attorney is launching a criminal probe into gm's recall. and tesla under pressure, as new jersey commissioners ban sales direct to customers. let's start off with the latest on gm. go straight to cnbc's phil lebeau. phil? >> the investigations are

mounting for general motors. two were announced. let's start off with the a.g. office. late this afternoon, the new york a.g.'s office is launching a criminal probe of general motors, specifically looking at how the automaker handled the recall of 1.6 million vehicles. at issue is did gm know about this earlier? what did gm know? when did they disclose it to the public? there was 1.6 million vehicles. the part in question here is the key that goes into the ignition switch. 31 accidents. 13 deaths related with the recall of these vehicles, going between 2003 to 2007. here are all the investigations that have been attached with this recall. the new york a.g.'s office announcing a probe this afternoon. two congressional hearings. the second one was announced today on the senate side of congress. and then, you have nhtsa. it is probing how general motors handled that recall. gm has to respond to 107

questions from nhtsa. and you have all of the other investigations. the nhtsa answers are due on april 3rd. > >> has there been another incident that we can compare to how gm stock fares? >> a lot of people will compare it to toyota a few years ago, when you had the sudden acceleration incidents. and a lot of people are saying, how was that handled? they didn't handle it properly. but there's a big difference here. in that situation, that was a developing investigation, where you had vehicles that were on the road, that were being sold, that they were still looking into, trying to determine exactly what was wrong with those vehicles. in this case, these are vehicles that were sold between 2003 and 2007. yes, they're still on the road. but gm has already identified what the problem is. the question is, did it disclose the information soon enough? or did they violate the law, criminally as well as the nhtsa statute, how quickly they

notified consumers. >> we want to trade this. you're long gm. how do you view this? >> i am long. i don't love to see this. the only positive is that mary behr is so new on the job. i don't know if the strategy will be to get in front of it. we made a big mistake. it's not on her dime. >> she apologized a couple times for this. >> this is heating up more. she has to do more. and just to not fall on her short. she wouldn't step down over this. just get in front of it. we want to do the right thing. we made mistakes and we're going to clean them up. >> dr. j., what do you think? what is the options market pricing in for this incident? >> people began buying puts aggressively over the last several days. not that they had the ability to foretell the future about this. but they were nervous. exactly as phil lebeau said. do you compare it to toyota? and the acceleration incident with the floor mats and so forth? then, they started getting more

nervous and buying puts further and further out of the money. does the stock trade down to the january lows, around 30 bucks. that would be $5 worth of pain. ouch. i don't know if we get there. but that's a target on people's screens right now. that's what they were targeting. >> we've seen the outperformance of ford compared to gm by about a percentage point since the end of january or so. >> and fund managers look at year-to-date performance. ford is roughly flat year-to-date. gm is down just under 14%. i would think at a certain point, gm is going to be a buyable event. but to buy into the abyss like this, i would it on a short leash. and i would use the 33 stop. not a $30 stop. >> if you're in gm now, the news is out there. you hold on. and if you get a pop, $1 or $2, let's get up to 37, would be fantastic, then you sell off. >> not a viable pop? >> unless you're very, very

short term. you're in it and need to get out, don't do it right now. >> new jersey just voting to ban direct auto sales. a couple of months ago, guy and i went to a tesla showroom in new jersey. we spoke with the regional manager why new jersey was a good place for them to set up shop. >> new jersey is an advantageous place to own an electric car. you don't have to pay sales tax on electric vehicles. when you're purchasing a $70,000 car -- >> do you have to be a resident? or do you have to purchase it in new jersey? >> you have to be a resident. >> no sales tax. also, got a state tax rebate. a federal tax rebate. is this a headwind for tesla the or a set back? >> it's not a killer in terms of putting it out of business. but the new york metropolitan area is one of the top markets for model s sales. you don't want to lose new jersey. that's what tesla is losing, now

that the motorcycle division has said there's no direct sales allowed in this state. could people go out of state? could they go to pennsylvania? could they go to new york? sure, they can. that takes away the convenience mark factor. it's one more impediment of slowing down sales. and the interesting thing here, when you look at other states, tesla is constantly lobbying or fighting in court to sell their vehicles. i'll be curious to see if other states look at what happens here in new jersey and other states say, there's a blueprint. let's try to use this to stop tesla sales in our state. make no mistake. auto dealers across the country are fighting tesla. they do not want the direct sales model. this is what we're seeing in new jersey. >> tesla could change the showrooms into galleries. where they don't sell a vehicle but people can look at them. >> they can. you go in there, melissa. you say, that's a nice car. how much is it?

can't answer that question. why can't i do a test drive? can't take a test drive. imagine if you wanted to buy something and you had to go out of state to buy it? that's what's happening here in new jersey. there's people at this hearing today. and we had a camera there. and they said, this is un-american. this is not giving me the freedom of choice. this is what tesla owners want. they want that freedom of choice. the auto dealer's commission has said, we go through a dealer in this state. and that's the way it's going to be from now on. >> thank you very much. busy day for phil lebeau. let's bring in ben kallo who joins us on the fast line. how big of a setback is this for tesla? this is one of three states banning direct sales. >> i think phil brought up good points. it is a headline risk in that we're entering the legislative session. and we'll hear more about tesla's fight on a state-by-state basis. to increase consumer freedom.

and it does create an impediment in new jersey. he mentioned alternatives going out of state. this is one of three states out there, in the united states, possibly four, that have some rules constricting the sales to consumers. and this is in the united states. outside of the united states, you don't have these types of rules. and really, they're rules with dealer association groups in the united states. but it does slow down sales. it slows down the education process to some degree when you can't have test drives out there. a couple markets within the united states. and if you look at texas, which also restricted how the go-to market strategy, there's sales down in texas. the highest number of teslas on the road are in texas, outside of california and a couple other states. >> all right. legislation is being proposed in the state of ohio, as well. in terms of adding up the cost of tesla in fighting this,

through lobbyists, et cetera, and also the sort of impediment to sales in these states, what does that add up to? is that an impact at all? in your view? >> well, i think that the impact of innovation they're making in the goods market stretch have these store fronts and not paying margin through a dealer, i think it overrides any costs of lawyers out there in the long-term. it's innovation, another part of the value change that tesla is bringing to the automotive industry. >> but the stock has more upside based on the factor, despite the pop it's seen? >> i would recommend buying on the dips that the headlines create. this is an evolving fight that they'll have against the dealer network. and the state-by-state basis. we'll see that change over time. i do think that we'll see the model x throughout the year.

they'll showcase it through different marketing campaigns. and we'll hear more about the gig factor partnerships and the investors in that. you should see state subsidies being involved in that package. >> ben, a pleasure. thank you for your time. let's trade this. you already bought tesla. >> didn't do anything. didn't sell it. >> would you buy more? >> well, you know, i wouldn't buy more just because portfolio management-wise. i had no position in it, i would buy tesla on this dip here. and the reason why is i don't think it's going to impact sales that much. it hasn't in any other states. and it's not an idea that people are really going oh, i don't know if i want to have it. it's a $125,000 car. someone comes in a showroom, goes to a gallery, wants this car. >> they know how to find a way to buy it without a showroom in their state. >> exactly. >> you're watching a stock that popped 25%. it's due to come back, pull back a little bit. you hit it on the head.

people are buying this in the higher priced targets, based on the battery technology. based on the factory, versus the actual car. but they have that gullwing suv coming out. they will have the more affordable car coming out. i would wait for an entry point around 225 and get in and trade it. >> that seems to be what they're doing in the options, too. what grasso and beaks said. people aren't scared out of the stock. but those who are long, beak's position or yours, karen, would protect it with puts. that's the strike they've been picking, 225. they're not thinking it's sinking a lot below there. that doesn't mean that they know exactly how far the stock will go. but they must be looking at a similar price chart to what steve just said. >> and fact of the matter is, tesla's growth market is still china. >> right. >> there's no ban on direct sales in china, yet. and this is all about jobs. protecting jobs at auto dealers, which donate a lot of money. and in the three states where

direct sales are banned for tesla and other automakers, 135,000 people are employed at auto dealers. it's about those jobs, this battle is being fought on. coming up next, there's one chart that all of wall street was watching today. we'll show you what it means. and you heard of smartphones but smart homes is the latest craze. that's going up against google in the battle for your house. announcer: where can an investor be a name and not a number?

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let's get to the chart all of wall street was watching today. the sell-off in copper. copper showing weakness over the last three days. and year-to-date for that matter. there's new reports of a second corporate bond default in the chinese solar industry. the first one taking place last friday. this is a sign of potential crackdowns in china's financial system. copper is used as collateral for companies that can't get conventional loans in china. the question, is china falling apart. beaks? >> it very well could be. we could be witnessing the beginning of the unwinding of the shadow banking system. with copper down this much, i've been short copper north of $3. i covered today. and the reason why, you look at this company. it's a state-owned company. they have yet to allow a

state-owned company to default on debt. with copper down this much and getting this attention, the risk is they do come in and bail this out and copper rifts. if i'm wrong on this and this is a bigger thing and they allow this to default, you will have reverberations on other markets. >> aren't they using copper on collateral? >> how would it be a popible event, if that's a phrase? >> copper is volatile at this point. if you're short it and you've made a profit on it, why not take it? it could rip 3%. >> because there's demand, as collateral, once a chinese lending system dries up and loans are not as well available, isn't there demand for copper by companies using it as collateral. therefore, even if there's a falloff in demand because industrial production is lower or exports, it's offset? >> no. they're cracking down on that shadow banking system. they're not allowing the

overinvoicing. not allowing you to have copper as collateral. think about it as the housing market here in the u.s. when housing prices fell down, you had to come up with more money. it's basically like margin. same thing. if that starts to unwind, it becomes messy. >> what is the amount of copper that's used for this kind of thing? versus what the actual users of copper who use them to make things, build things -- >> very, very -- nobody can get a good handle on that. it could -- the problem is, it's in warehouses. people have pictures of these massive warehouses that it's just storing this copper for it. and nobody can get a handle on it. what you can look at, you saw the exports number. we actually had a deficit in china this week. and that's the first time i believe ever, at least in a long time. that is a symbol of the overinvoicing ending. you can kind of back into it from there. but nobody really knows how much copper is just floating out there. >> let's get to our top trades here. apple trading higher of being

upgraded to outperform. according to "the l.a. times," apple is pressuring the major music labels for releases on itunes. perhaps going after the likes of pandora. this was specifically cited the iphone 6 and what it could mean in terms of e.p.s. and selling prices for apple. all good things. >> i think the competition in the smartphone space, that's going to be increasing. margins are the first question you ask when you look at apple. i would say that apple is probably a sell at this level, even though value investors are looking to buy it there. every time everyone goes against pandora on a granular level, pandora wins. >> on the music front, apple won't win. but on the iphone 6 front -- what does that mean at the end of the day? >> you buy pandora. you sell apple. i think apple's margins are definitely in question right now. i don't think they're going to

be able to hold on to margins at this stage. >> according to this note, the average selling price of the iphone 6 is going to go up by $36. $36. the average selling price will go up. karen? >> so, you mean what to make of that and the overall profitability? >> yeah. he was saying that margins are going to go down. might still go down if a.s.p.s go up. >> when they say $36, by the time you get done with the whole thing and the plan and everything, i don't know what that translates into. people really pay the actual price for the phone. >> and the key, still, is the ecosystem. when you look at beyonce launching her new album on itunes, the people on itunes, 800 million strong that buy things through itunes, that's what you buy apple for, in my opinion. not because of the new phone because, like you said, grasso, margins are being eroded. i have to believe they will continue to be so. but to have 800 million strong and to have artists as big as beyonce -- to put it out here.

>> you look for the iphone to lead. so, if you -- >> i don't. i don't at all. i disagree completely. i think the reason you buy apple is because when they decide to, they can be the netflix killer. they can be the pandora killer. they can be all these things. they have a bunch of stodgy old, whatevers on the board. they're not recognizing. >> the ceo, i'll buy apple. >> okay. it sounds like you're describing a utility company. >> why not buy a utility and get a higher yield and not worry about the volatility. >> i agree. i'm not encouraging you to buy for the iphone 6 at all. >> check on courtney reagan who is watching veraphone. stock currently trading up about 9% after-hours. it's been a fairy decent performer. >> thanks, courtney. did you get into verifone? >> i did. and i bought it based on

technology. i bought it based on the ramp-up in a lot of the security systems, based on target. for me, you're going to be adding 15 million to 20 million devices at the register. that's going to be split between the number one and number two player. verifone is one of those. i'm going to hold this position right now. i wouldn't establish a position tomorrow. after the break, it is the home automation company that's shaping up the housing market with gains of 23% e so far this year. what's next for the smartphone vendor? the ceo of control 4 joins us live. tdd#: 1-800-345-2550 trading inspires your life.

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let's get some unusual activity in one retailer. doc was watching the home good space. what were you watching? >> restoration hardware. they rolled up from inspiring in the money calls. the 55 calls in march. and they rolled them up to the 65 calls. these are at the money. now, just in the money, after this roll. they did it fairly large. so, in other words, it's a customer who has been right. and if you've been in restoration hardware, you already know this. the stock has been moving from the lower left to the upper right. very rapidly. this has been a good one over the last month. the weather has not been against them for the last 30 days. many of the other retailers and their competition have said the opposite. >> welcome to your brand-new smart home. more homes are being built with automation systems before they hit the market. could this be the end of light

switches and tv remotes as we know them? let's bring in the ceo of control4, martin plaehn. martin, great to have you with us. >> great to be here. thank you for inviting me. >> the relationship gets you in how many homes? and that puts you in 5 in every 1,000 homes, i should say. >> control4 has been working with builders through our dealer network for many years. and we felt the timing was right to put in place a national program, which they will collaborate and put our technology in their model homes and their design centers, so consumers, prospective home buyers can choose to add that to their new home when they buy it. >> is this an option that a home buyer could choose? and so, is there a risk that perhaps no one will choose it? >> we've been working with them.

we're confident we'll get a rate for new homes. this is the 21st century. consumers are comfortable being connected. they're connected throughout their lives. why not have their homes be connected and orchestrated help them have a better life at home and make their homes more security. >> is there a guarantee how many systems will be bought through this program? >> we're not discussing the actual business terms. they're collaborating to put our technology in model homes. consumers will see it. we think they will choose it. we aim to serve our customers collectively. >> there's an agreement in place where cisco will unveil their own version of control4. what's the timing on that? >> that agreement was put in place several years ago. and when we went public, we discussed how we were going to

transform that relationship, as we go forward. and we're still working on that. >> it's karen. let me ask you. when you think about competitors, to me, adt comes to mind, with their pulse offering. they have a huge, embedded number of residential -- residences. how does your offer compare to adt's pulse? >> our big forte is operability and ease of use, for the devices in the home and those they want to buy. we support devices from hundreds of manufacturers, giving consumers choice. and a high probability of what they have in their home, we can orchestrate it together to produce the automated home. when they buy new connected products, they can be added to their control4 solution. i think that's different than what the service providers offer as a key package with a fixed number of devices, rather than an open architecture providing

consumers choice of best in breed for what they want to put in their home. >> google bought nest. are you for sale? >> you know, we're focused on serving the homeowners and being the leader and producing the connected and automated home. we keep our eye solely focused on being the best in our category. and keep growing our business until something changes. >> so, no? the answer is no? >> no. >> all right. martin, great to speak with you. martin plaehn, ceo of control4. ctrl is the ticker on this. ipo last year. interesting stock, obviously. >> love it. love it right here. it is the future of homes. google is in that space. there's other people wanting to get in this space. and the stock itself, that's not so bad. >> what are the barriers to entry? >> 7,700 different products. >> it doesn't matter.

i think google with mmm have 50,000 products. >> they could. but they don't today. >> it's not having the products. it's having the system that can connect all of the products. the problem is not being compatible. >> i'm not buying the connected home. that's such a small part of their business. this is a pure play offer. >> you did an interview with smart things, i think it was. this is a similar business. >> similar business. >> it seems to be the wave of the future. who gets there first, i don't know. that's a good question. >> i agree. this is a good company to buy. but i think it's taken out. >> oh, maybe. >> it's a bite-sized acquisition. coming up, moviegoers are gearing up for the release of "divergence," set for release of this friday. will it rival "the hunger games." michael burns, here in the building with his take. building with his take. that's next. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online

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we've been following this developing story all hour. tesla takes a hit, as new jersey is the third state to ban direct auto sales. let's check in with bertha. >> we've seen a number of customers come in. one who bought a new model s

this afternoon. another one right now, just checking it out. and we spoke with one man who had been looking at it. a doctor. he said, i've been born and raised in new jersey. and the idea that the new jersey legislature would say he can't buy a tesla here in this showroom upsets him. >> i think it's almost a restrain of trade. i think it's unfortunate, especially for a vehicle that's green, bringing a lot of good things to the table. why not competition? maybe the other auto manufacturers will start to hop onboard. >> one of the things he says is that he could go across the river and buy it in new york. but then, he has to consider the issue of the sales tax, which is higher in new york. so, he really feels like this is something that is unfair for him, as a customer. back to you. >> and is that going to be shuttered, that showroom? >> that is an interesting question, as to whether it would be shuttered. if you can't make a sale here,

whether they would be allowed to have a showroom now becomes a question. one of the things for a lot of customers is where they could go to have an interface to get it serviced. if they bought one from out of state, would they have to go out of state to have it serviced? >> digital sales of "the hunger games" sequel outpaced the movie in the series, by 40%. it's the latest success for a franchise that earned over $1 billion worldwide. lionsgate is gearing up for its next big release, "divergent." joining us is michael burns, lionsgate vice chair. there's a lot of buzz around "divergent." advanced ticket sales were off the chart. the data points are tracking to an opening that would be more successful than the first "twilight," which was pretty successful. what are you seeing? >> let's spike the football early. we are guardedly optimistic.

we feel good about it. "diverge "divergent" has sold 1 million copies of the book in the last four weeks. we're in the right place at the right time. we think the movie is terrific. we've been screening it around the country. and i think it's going to open well. >> everybody is saying is this going to be the next "hunger games"? you're talking about book sales and the tracking of book sales, did that eclipse what "hunger games" sold? >> it's hard to compare apples to apples. "divergent" doesn't have to do "hunger games" numbers to be a giant franchise for us. if it opens in the range of what people are talking about, we'll make three or four movies. the books are selling very well. we have a great cast. we're optimistic. >> shailene woodley. people might know her from "descendants." is she going to be the breakout star as jennifer lawrence was? >> i think it's also going to be theo james, who plays her love

interest in the movie. >> and they're romantically involved offscreen. does that help? >> i don't know if they're involved romantically offscreen. the chemistry between them on-screen is terrific. >> do you see this competing. two more "hunger games" to come out? >> different reliselotte. we're going to release this in march, which was the original "hunger games" opening spot. and then, we're going to have "the mocking jay 1" out in november. we're going to have enough space between them. >> just a quick question. i got a ton of e-mail and tweets from overseas about this particular movie that you're making because you were making it right in chicago. and a lot of people are following it. how do you track international sales? and how "hunger games" did internationally, versus domestically? because it really was a box office phenom. >> i think it will catch up. you look back at the first "hunger games."

it did more business, dp domestically than nationally. i think you'll see that on "divergent." it is interesting when you follow tweets. the social media on this picture is great. from tweets and from all the facebook comments that are out there and the likes, et cetera. we're in the release of the new tv spots, as well as the trailers. we're getting a pretty good reception. >> there's some estimates out there. $70 million first opening weekend. is that way off the charts? is that pretty much, you know, sound right? >> it's a math and a science. if the movie opens at a certain level, if it does a normal multiple of the opening weekend, it will do 2 1/2 times that. if people like it, it will do four-times, five-times. we are hoping for the higher number. we like our spot. we have a little competition with "the muppets." but we don't think that's direct competition. and the movie is terrific. >> focused on binge watching. and we're talking about movie

theaters. you still have "mad men." are you focused there, as well? people like to gobble up content on streaming? >> we love the idea of a different collection of buyers. we like the idea of binge viewing. we have "orange is the new black." and "mad men" and "nurse jackie," which we shoot here in new york. we love theyed that consumers can get content anywhere they want it for a price point that attracts them. look at the sales point of "hunger games." 40% up on "catching fire," compared to "hunger games. that's fantastic. >> michael burns, vice chairman of lionsgate. >> the stock stumbled a bit. but you buy it into this release. and you know, depending on how long you want to hold it, you can sell any pop you get. time for pops and drops. big movers of the day. drop for dupont. >> it came out yesterday. talked about how the next

quarter is going to be hurt by weather and the ukraine. i would stay away from this. it doesn't float. >> a big drop for fuelcell. down 17%. >> a 30% move from top-to-bottom. fbr came out and reiterated that it's a market perform for this one. didn't perform like the market. it was much worse than the market. top-to-bottom, wham. down 30%. >> drop for fannie mae. down 32%. >> that's not a drop. that's a big disaster. there was legislation proposed, basically to say, we're shutting downdown. winding them down. that will be hard to do. it will take a very hard time. >> a pop for t-mobile. up 1%. steve? >> this has shaken up the whole entire telecom space. i am out of the name because i got the pop i was looking for. it has the possibility to go higher. we want to go to courtney reagan with the latest. >> here's interesting news from s&p dow jones about how they're going to treat the google

c-class shares. they're going to treat the google class-a shares and the google class-c shares in the s&p 100 and s&p 500. this is the first time two classes of stock, the same company, have been included in the index. what makes it interesting is it brings the s&p 500 to have 501 issues but just 500 companies. >> all right. courtney reagan, thanks for that. >> kind of like the blue jeans. 501s. switching it. >> yeah. >> i don't know. what does it mean? i don't think it means anything for the stock. i wouldn't buy or sell google based on this news. nor would i buy the s&p 500 on it. twitter, we break down that trade. and we find out what other social companies are set to make bank. venture capital investor jeremy liew joins us next.

oil stocks slid today as crude settled below 100 bucks a barrel. mike khouw in orlando. what did you see? >> we saw some unusual call activity in cabot oil and gas.

and of the three, the one i found the most interesting was cabot oil and gas. we saw buyers at $35. above 40 by the third week in april. this is interesting because it follows activity that we saw several months ago in early january. we saw buyers of the same calls. and many others. this is a stock that's been under some pressure. it has exposure to the marcellus shale which bernstein indicated that wow you'd see low natural gas prices. this is a stock that's seen tremendous growth. a lot of analysts see growth here. we're talking about 30% growth. this is a cheap way they're making a bullish bet that the stock could make a move. >> thanks, mike. catch "options action" friday at 5:30. also check out the website. from facebook to twitter, social content seems to be the reigning king. but which companies will join the court? we bring in light speed venture

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shares of twitter moving slightly higher after the company announced the former youtube ad sales executive. b.k. bought twitter. >> just to be clear, the buys in twitter and tesla, those are almost like a hedge in case we get some sign of a meltup. twitter, i do think is interesting. obviously, social is a place to be at this point in time. and with facebook having a run and twitter being flat, i think there will be money allocated to this area. >> with a giant lockup coming? >> you're right. the first lockup that happened in february -- >> a baby lockup. >> that was. baby steps. baby steps compared to this. but twitter, i think is still in a strong spot, mel. i don't know that the video ads are the reason to buy it here. but to beak's point, if they want twitter, it has a small float.

>> this is not the type of stock you worry about lockups expiring. the volume that it trades on a daily basis. you worry about stocks that have a low volume. those are the ones that are impacted the most. and you talk about youtube. youtube is a jewel inside google. so, anytime that you could be exposed to any type of that type of cerebral capacity coming from google, that's where you want to be. does it sound like i'm long? i am, twitter. >> i'm into cerebral capacity. this guy right here. >> that smells delicious. >> social content remain the king, what would be the next big company? joining us from san francisco is jeremy liew, partner at the venture capital firm lightspeed venture. great to have you with us again. >> good to be here. thank you. >> i want to get your take on the next big thing is going to be. but i want to touch on bitcoin because it's been in the news quite a bit. recently with mt. gox filing for bankruptcy protection.

mark andreessen had a motion that mt. gox had to die for bitcoin to thrive and survive. do you agree with that? >> i do. and i think one of the interesting things that happened was the new york department of financial services has called for applications on new york-based bitcoin exchanges. that would have been really difficult if gox continued to exist because with an exchange, the buyers want to be where the sellers are. and the sellers want to be where the buyers are. that liquidity was getting caught up in mt. gox. now with gox out of the picture, we have an opportunity for a start-up exchange to be based here in the u.s., which i think is going to give a lot of people a lot of confident. they're going to know there's going to be regulatory oversight from u.s. authorities that we can feel comfortable with. >> a start up exchange in the u.s. would it be like a second market that has designs to be in that space? >> i think what second market is doing is great. there's a number of companies

that are looking at building exchanges here in the u.s. we have investment in a company that's an exchange based in china. but we're spending a lot of time looking at bitcoin companies in the u.s., as well. >> let's talk about the next big things out there, jeremy. the last time you were on, you talked about whisper. and whisper was a big hit at southwest southwest. we spoke to the ceo here on the program. give us another one to watch for. >> you know, i think this whole idea of mobile and the way that social is transitioning on the way to mobile is interesting. social is infusing every application. whether it be messaging or tinder, vine, instagram, all of the applications, single purpose, really popular on mobile. and the use case is just changing so much. it's been very exciting. and i think we're going to see more of it. personally, i think there's 20 app spots on the home screen of your phone. and each one of those is up for

grabs. we've probably seen winners for ten of those. and another ten to come. >> jeremy, it's brian kelly. i'm curious. you have snapchat, whisper. that seems to be the trend, to go to encrypted chatting. are there companies that you're invested in or talking to, that combine the two? bitcoin has built-in encryption. >> i think of them has different companies. bitcoin is out to disrupt financial services by reducing transaction costs and allowing programmable money, which i think is an exciting trend. i think the pseudonymity, the ability to use a nickname or a wallet name, instead of your own personal identity is secondary. and it's one of the reasons that some of the doctors got excited about bitcoin. but as we move forward, i think the people looking for trusted counterparties. so, the emphasis on that is probably going to diminish. i think with snapchat, people are talking to their friends on

snapchat. there isn't that much anonymity there. with whisper, you're right. that anonymity allows people to share things that they might not want to share. that allows people to bear their souls and be transparent to what's important to them. >> apple, is it waging war on bitcoin based on what it's doing to the apps in its app store? >> apple has made it harder for bitcoin apps. and so, i think you're seeing a lot more adoption amongst the android users. frankly, is most of the world. and so, i think we're going to see a lot of adoption for bitcoin outside the u.s. and in the u.s., as well. and with the changes in the regulatory environment, which are looking favorable. >> jeremy, great to have you with us. >> good to be here. >> jeremy liew, lightspeed venture. interesting he said android's most of the world. >> it is. but there's concerns about whisper that's been raised by south by southwest.

is it secretive? it shows up in your contact list that some of -- it may have come from one of these people, this particular tweet, if you will or this whisper. >> whisper. >> but how secretive is it? and can you find out who actually sent that one? that still remains to be seen. >> that's your concern, right, beaks? >> right. exactly. i don't even know -- whisper's the one where you can say whatever you want to the whole world and supposedly nobody knows. here's a public service announcement. >> somebody always knows. >> they know it's you. 100%. >> yes. >> you tweet it. we trade it. let's get some of the tweets. this one is for doc. how much higher do you expect zynga to go? >> i think it can pop again this week. it made a nice move. i am in this name. they bought the march 6th calls that expire friday of this week. i'm still in this game, looking for more of a pop. >> for karen. is that bank rally over? when will citigroup break 50 bucks?

>> i don't know the exact time and date. >> really? you don't? >> it happened last week. so, last week, i guess would be the answer. but i think it could happen again. i don't know about the bank rally. i like citi, bank of america and jpmorgan. >> coming up on "mad money," cramer has double-dose ceo excusives. united rentals. up. and organic sprouts. all that and much more on "mad." so our business can be on at&t's network for $175 a month? yup. all 5 of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share.

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time for the final trade. around the horn. steven? >> i'd rather not put new money to work. i've been putting money to work in bank of america. if i was forced to do anything, it would be google. >> i like blackberry. i know. crazy. >> i don't know who you are. i don't know who you are. who has hijacked b.k. >> put your whole portfolio in it. >> as long as it stays above 9, i think blackberry will do all

right. >> we sold our ulta. they had one bad quarter. might have another one. we're going to wait. >> doc? >> restoration hardware. the unusual activity brought me in. i'm sticking with that one through the week. >> i'm melissa lee. thanks for watching. see you back tomorrow at "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 and 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 some money. my job is not just to entertain you, but to teach and educate you. so call me at 1-800-743-cnbc. it is not easy to sing the praises of today's market, the dow dropping 67 points, the s&p