>> guys, thank you so much for your time on the panel today. and for bearing with us, folks out here in dayton. have a great afternoon. "fast money" coming up in a few moments. mandy on for melissa lee. >> twitter, netflix, pandora, down double-digits this month. what does it mean for the broader market? is there something bigger at stake here? we have lots of questions. hopefully we get answers over the next hour. we're looking forward to it. >> i was going to say, go, flyers. >> "fast money" starts right now. we're live from the nasdaq market site in new york's times square. i'm mandy drurry. sitting in for melissa lee. our traders are pete najarian, karen finerman, and guy adami. and the sell-off in tech is intensifying. the nasdaq on track for its biggest weekly drop since june of 2012. you see it down there. the biggest point declines coming from big names like

google, netflix, priceline and amazon. so, as the nasdaq sits 5% off its 14-year high earlier this month, could this be the start of a much bigger correction? what do yu think about this, guys? is there anybody on this table that thinks this is the start of something much bigger? >> it could be. i'm a guy who has a bear suit in the closet ready to go anytime. i think the world's falling apart. but in terms of the short term with the nasdaq today, it hit against some and bounced off of some very important support. trend line that started back in july of 2013. 86.70, roughly, is the high from a few months ago. in terms of the very, very short term, i think there's a chance that the nasdaq bounces here. you also saw some of the momentum names that have been crushed over this. start to turn and burn at their very important support levels. i think let's call it the next couple weeks. a shot here to play it on the upside. >> what do you think, pete? >> i think this rotation that we've been watching a little while play out, continues to play out.

you see some pressure on the netflix. you see it on amazon. some of those, when you look at the multiples, they traded a much higher level. facebook had a nice rebound today. but look at what's working. it's big cap. technology or others. look at caterpillar today. look at g.e. today. very strong and finishing in the green. and you look at the big cap techs, microsoft or intel, a lot of the names trade very nicely. some of them hitting 52-week highs. they're pulling back. some people are taking money off the table and deciding where that money's going to be redistributed right now. but the high fliers, there's pressure on them. >> we have to talk about microsoft in a moment's time. in the meantime, what was working at the beginning of the year, the trade where e.m., emerging markets were getting slammed and everyone was going to new tech. really started to see a reversal here. e.m. is coming back. and new tech is getting slammed. what do you think is going on, karen? >> the high-fliers, it was hard to put a valuation on them that was supported by things like cash flow, earnings, that sort

of thing. that i view as a separate market. the idea that priceline, and amazon, and tesla, and netflix, have the same characteristics? that's a sentiment or thing going on. pete is saying there are pockets of things that's not affected at all. that's where i'd like to be. >> where do you think has been insulated? >> he talked about a caterpillar, which we do not own. what hasn't -- some of the retail names, absolutely fine. a name like macy's, we talk about all the time. and today, there was the bank issue, which was a very specific, very clear catalyst. >> i have a question for you, guy. are there any of the tech stocks that have been taken down with the negative sentiment, that shouldn't have been? was it warranted for the sell-off? >> priceline. the month of february was crazy good for priceline. since then, it's given almost all of it back. i think priceline gets interesting. it's not expensive valuation-wise. we talk about this all the time.

the problem with priceline, it's a $1200 stock. if you moved the decimal point over, people would look at it. it's reasonable in valuation. i think the reversal in twitter was interesting, as well. got bashed earlier in the day. closed green on the day. i think it's giving you a level to trade from. we talked about that last night. i think some of the names have become tradeable all of a sudden quickly. >> anything from priceline you think is nibbling at these levels? >> some names do well regardless. we talked about wearable tech. garmon is not a tech stock. but it sticks out to me. >> another i would throw into the mix, is something like qualcomm. hits a 52-week high today. it continues to be strong. you look at the growth they have over in china, as they build out and get more adapted with the lte. that's something that's going to work in their favor. there's so much strength there, i think there are multiple names

you can go to. >> are you sure you're not talking with grasso? he mentioned qualcomm yesterday. a way to play the wearable tech story. >> it's about the chip names. when you look at what's been performing, and intel and since they announced, that has been performing. there's names. there's pockets. wdc, seagate. some of the names, old tech. big data. some of the names perform well and the valuations are incredibly low still. >> talking up the old tech, let's take a look. for the first time ever, ipad users can download microsoft office from the apple app store. it went live at 2:00 p.m. eastern. the announcement came during the first-ever live event as microsoft ceo. the move signals a new growth strategy for microsoft. and the shares closed lower today. but they've been back up around boom time levels. levels we haven't seen since the

year 2000. rick follows microsoft. great to have you with us. what do you think about the announcement today? >> the stock ran up in front of the announcement. i love the job that he did today. he's got technical credibility. he articulates a movement. the mobile, the cloud. not about windows, windows, windows. that's what balmer used to talk about. it's about following the customer. where the customer wants to go, we're going to be there. it doesn't matter who builds the platform. >> since you mentioned windows, isn't it going to be cannibalization. isn't that at the expense of windows and the surface tablet? >> i may not need to buy that next laptop. so, microsoft will lose $50 every five to seven years on a brand-new laptop. they can make $100 a year to subscribing to office. they're better with the subscription revenue rather than focusing on the windows platform. >> so, a couple people on the street are talking about nokia and how that may hurt microsoft earns. they may not be able to meet

their estimates. where do you stand on that? >> we cut our estimates three to six months ago, when they announced they would do nokia. my numbers look lower than everyone else's. i've factored in a 10 cent hit from the nokia accusation. nokia announced a new android phone. it will be curious to see. we're hearing really good things about initial demand for it. it's not strategic to microsoft if it's android-based. will they keep it? i'm thinking they don't need the numbers that i think their new cfo really gets it. she's tough on cost. i think she goes after the cluster from day one. you'll have a bigger charge than people think. but i think she will protect earnings. >> whatever business they want to get into, they're the big guys in the room. cloud, big space. is the space big enough for them to co-exist with some of the smaller people? the f5s, the sales force. are are they going to gobble

these people up? >> they're in a bit of a different market. i think what they will announce to the board in june, and have an analyst meeting to explain it to us. on the server and tool side, on the enterprise side, it will all be about the cloud. platform is a service. you want to buy the products, you'll buy them in the cloud, hosted by microsoft. on the consumer, we've seen a version of office for the ipad. but half of the consumer market doesn't use office at work. they could care less about the announcement. they like evernote. microsoft needs to do things like that with the office team. you can monetize it. put skype in it. put bing in it. box, box.com, very popular for storing in the cloud. there's an opportunity for microsoft to pursue the consumer space, as well. but most of the focus is going to be on the enterprise side. there's a big opportunity for them there. >> are there going to be any surprises, whether he's going to shut down or not give anymore

resources to. >> karen, i suggested xbox. why are you there? it's not strategic to the company anymore. it doesn't move the needle that much. they don't lose that much money at it. bing, they could shut that down, as well. i think the bigger issue is, if you bought back 10% of the stock, and if you cut costs 10%, just came in and started slashing some costs, i think you do that easily enough. if you get the stock up 10 bucks, close to $50. and does he go after enhancement to shareholder value? or trying to fix the business? i think he gets it. i hear he's been reading books on shareholder value. he seems sympathetic. i think you get that in the second half of the year. it might surprise us in june and say this is what we're going to do to fix the business. if you're a shareholder right now, the stock's had a good move already. i'm hanging around and he announces more shareholder enhancement initiatives. >> a buy at 25 bucks. to confirm that. >> yes. >> let's trade microsoft, boys

and girl. what do you think? >> i love this name for the reasons you mentioned. also, the management decisions he's been to make on the street. and the shift on the focus of the cloud, when he built up that business. they own 13% of it already. they're going to get a lot bigger in that space, as well. i think when you look at microsoft, i agree with rick. this is going to $45 a share. i don't know if you're going to get much time to get back into this trade. >> and along microsoft, i like it right here. and i think $39 is going to be your support. close to 39, 36. i don't think you're going to get a better chance than to buy it right here tomorrow morning. >> a lovefest for microsoft. keeping with tech, tune into "squawk on the street" tomorrow morning at 11:00 a.m. eastern, for a first on cnbc, with blackberry ceo john chen. let's get a market slash with sheila on two names. they're moving after-hours.

>> let's pick it up with caesar's. they're down in the after-hours. this is after the company said it was going to do a secondary share offering of 7 million shares. underwriters will have the chance to buy additional shares. caesars was tpg and apollo. zynga is up by 2% in the after-hours. steven cohen reporting a 5.3% passive stake in the company. remember, steven cohen had owned 7.8 million shares. he's doubling his stake in zynga. and that shock is higher in the after-hours. >> thank you, sheila. >> i think the problem, caesar has enough problems right now. if you're looking in the casino space, there's better names that can outperform, whether it's mgm or wynn. all of those have exposure to the asian markets, as well as las vegas. coming up next, mike mayer,

dropping a citigroup bombshell. and the impact on citi shareholders. plus, the social snapback. all rallying back into the close, but with a lockup looming and earnings around the corner, and earnings around the corner, is the rally short-term? but way too many aren't. some brokerage firms are why? because selling their funds makes them more money. which makes you wonder. isn't that a conflict? search "proprietary mutual funds". yikes!! then go to e*trade. we've got over 8,000 mutual funds and not one of them has our name on it. we're in the business of finding the right investments for you. e*trade. less for us, more for you. the fund's prospectus contains its investment objectives, risks, charges, expenses and other important information and should be read and considered carefully before investing. for a current prospectus visit www.etrade.com/mutualfunds.

♪ turning now to citigroup, which kicks off our top trades today. mike mayer dropping a bombshell earlier today. just one day after it failed the fed's stress test. let's take a listen. >> john gursback, the cfo, was the chief accounting officer, going into the crisis. two years ago, citi was turned down for its capital plan by the fed. that's strike two. and yesterday, being turned down again is strike three. it's baseball season, scott. three strikes you're out. i think citi needs to replace the cfo. >> does citi need to replace the cfo? >> a few thoughts. i'm long citi. long going in today. i think it's -- he's got to feel

under a lot of pressure. i think mike miot is the single most respected bank analyst out there. he's going to the annual meeting. and i think, you know, that raises a question mark. he will bring that up there. and you know, he is a strong enough influential analyst that i could see this pressure starting to build. >> would there be anyone that's an obvious contender that would jump out at you to take their place? >> not right now. we haven't really looked. there's one question. if anybody knows the answer to this, i'd like to know. when you submit your capital plan, and they submitted the buyback and the dividend increase, is it a binary? will they accept the package or know they won't? or do they give you an amount between? my guess is it's binary. this is a black eye for citi. but i think the long-term story is still there, at under ten-times earnings. and under 80% of book value.

i think it's -- it prices in. >> and the u.n., too, defending when we had dick bove on the show. and what about you, pete? >> i like citi. >> yeah? >> i think one of the issues that citi really needs to face, karen, i think this is one of the big banks that might need to spin something off. when you look at the fact they have not integrated some of the buys over the years and they're such a massive bank, i don't like the mass of what they've got. but i don't think they have the risk controls, clearly with the mexican issues they've had and so forth, there are parts of this bank that can be spun off. >> like what? what would you see as the obvious spin-off? >> i think there's multiple places around the country in this global bank they really are citi. and the fact they have exposure in europe where they have not integrated into citi. they are separate entities they don't have all of the risk parameters to be able to run. and because of that, they run into issues like they did in february. and because of that, that's why i think they didn't pass the

tests because they haven't been diligent enough to make sure that everything is secure at the bank. >> good point. next up, lululemon getting a boost after posting better than expected earnings for the fourth quarter. lululemon's ceo speaking with courtney reagan earlier. saying that the company is focused into international expansion. >> if you're looking at anything you want to hang your hat on, it's direct to the customer. that's a growth area. it was a little weaker this past year than maybe some had expected because of the previous quarter. maybe some of the issues they've run into, as well, were weather. although, they never brought weather up as an excuse. when you look at the international expansion, that does excite you for lululemon. they have one store in london. but look out. europe could be a huge growth spot. >> there's a couple of problems here. the gross margins are a big concern going forward. there's increasingly competition out there in this particular space. it seems like every retail chain is trying to jump into the yogawear business. >> that's a headwind here.

it could have been worse. and that was enough to -- >> didn't they sandbag a little bit? >> maybe. if i were the new ceo, we talk about kitchen sinking the first quarter, saying everything is terrible. why set the bar high for yourself? set it as low as you can. >> easy to beat. a number of companies debuting for their first day today. for candy crushmaker, king digital entertainment. one big winner was trinet group. that was up around 20%. guy? >> it puts the spotlight back on companies like adp, which has sold off now. it hasn't had a terrific year. it's bounced a little bit. it held 75 is interesting. valuation, probably a little bit stretched. but here's the sort of slow and steady wins the race with adp. they seem to come out, beat edp by a penny or so. and the stock continues to quietly go higher. it's given an opportunity on the sell-off to get into it. i think all trinet does to me is

sput the spotlight on other companies. >> does it become some of the jitters that king injected into the market yesterday, about whether or not ipos are proper? >> it did. when you contrast the two, investors are acting rationally. you had king, which it's a candy crush. that's it. and if people get unaddicted to it, which mrs. b.k. has been playing for six months. i don't think it's possible. but other people out there get unaddicted to candy crush. then, the company's done. whereas, trinet, they do something. you have rational investors here. it calmed a bit of the nerves that we don't have too much supply coming. >> guess who is coming on later on tonight, the trinet chairman, burton goldfield. that's going to be "mad money" and jim cramer. the not-so-bubbly diet soda trade. and later on, the prospect of high risks but high rewards

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welcome back to "fast money." i'm mary thompson with a news alert. walmart is suing visa for $5 million, saying it charges high swipe fees on the credit card pvrjs by its customers. visa declined comment. but the suit wasn't totally unexpected. walmart is a retailer that opted out of an agreement over a wipe

fees. others, home depot, 7-eleven and target. >> mary thompson, thank you so much for the breaking news. considering, mary, was saying this wasn't completely unexpected, do you think is has been digested in the stock? >> i think this particular thing has been digested in the stock. and the way the stock traded today, you probably get a chance to play it on the long side. but on the long run, i'd rather be short visa. what this signals is that the fees are coming down. they're not going to be able to charge what they've been charging for the last 10, 20, 30 years. there's a lot of competition that has the fees compressed. and i would not want to be in this or mastercard. >> okay. pete is finding unusual activity in one particular financial play. pete? >> aris capital. very interesting company. the middle market tier is where they're buying and selling all the rest of that. the april 18 calls. 17 1/2. april 18 calls for purchased 10 cents. but over 7,000 traded today.

>> also got soda companies which may be headed for some pain. declining sales is really nothing new. but an unlikely culprit has reared its head. joining us is john jannarone. good to see you, sir. >> as you said, this is nothing new to see, soda volumes decline. diet coke has dropped off. in the past, they've been able to raise prices to offset this. you look at tobacco companies, they've been doing it for longer. but the falloff looks severe enough they're not going to be able to make up the difference by raising prices. >> do we know why? >> it appears there's been a lot of negative press around aspartame and diet stuff. there's so many options that people are leaving the categories. it's not a question of price. >> i guess pepsi has diversification in salty snacks. and coca-cola diversification.

>> 30% of coke's sales are sparkling beverages. that's enough to make a difference. and they've been trying to innovate new products. and they've come up with all kinds of things. like coke zero, over the years. this is not easy to do. and the pricing is not going to fix it overnight, either. >> let me ask you something. if raising the pricing isn't helping them get what they want, would lowering the price may bring back some of the customers that are leaving the diet drinks? >> they've tried that. it looks like in the last -- this is just one month's data. but the nielsen data from four weeks through march 15th, showed they cut prices aggressively. and it wasn't enough -- volume increased. but not as much as the price cut. even if it did work, that's not a good business model, right? you don't want to say my plan is to continue to weaken my brand by discounting it to death, right? in the short-term, they might win market share. but i don't think that's -- they don't think that's a long-term solution. this was a seasonal thing.

>> is there another category on the horizon? we've gone through the water phase, the energy drink phase? is there another category that says coke is going to get into that space? >> it's up to them to come up with something like that. the real answer is not playing with pricing. it's to offer something for consumers they believe is good for them. you would think if anyone could do that, it's coke, right? they have who knows how much market -- r&d resources dedicated to this, right? >> push further into the energy drink space, too? >> they're working on that, yeah. they've -- but you know, there's monster's an interesting company, too, right? that's out there, if you want to look for things that are growing quickly. that's the funny thing. coke isn't growing that fast. and it trades 14-times. monster is only a little more than that. it is a strong brand. don't get me wrong. it will probably be here long after we're all gone. but it's kind of hard to put that together. >> you think they're feeling the pressure, for years, these

companies did whatever they wanted to do. nobody balked at them because they were monstrous. now, they're under the microscope of some of the activist investors. do you think they feel the pressure? >> yeah. pepsi is under pressure to split up. but with coke, a big investor very unhappy about the executive compensation packages. i don't think there's something that activists are going to get upset about here. it's not a quick fix. what are they going to do? i think it's going to be challenging. but i give them credit. if there's anyone that can innovate, it's coke, right? >> got to leave it there. thank you very much. j.j. flash. coming up, with gains over 80% since its ipo and a huge partnership in the books, as well, is acceleron about to become the breakthrough name that you need to know? we're going to sit down with the company ceo for a live interview. that's coming up. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly

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♪ you thought you were done with us. not so fast. welcome back to the second half of "fast money," live at the nasdaq market site. well, the momentum starts, like

facebook, yelp and twitter, all snapping back after entering correction mode from their recent highs. but the performance of each company since its ipo has been pretty much all over the map. seema mody is here to break it down for us. >> definitely been all over the map. let's start with facebook because shares sank in the first couple of months as a public company. investors questioning mark zuckerberg's growth strategy. but then, shares staged a big turnaround, thanks to better than expected earnings. shares up 60% from its offer price. but a different story from twitter. we had a big pop in shares on its first day. but valuation concerns in february has resulted in shares und underperforming. it's trading above its offer price but down 27% this year. if you want a social media stock that's had a good listing and continues to move higher. any guesses that name? >> yelp. >> you're too good. it's yelp. all right. >> did you not know who you were dealing with? >> yelp up 64% of its first day

of trade. now, up 200% from its offer price. a couple catalyst here. you have strong earnings. mobile engagement is high. it continues to expand in europe, which analysts say is a near-term catalyst. >> what do we like? what do we not like? >> they all traded great today. they've been crushed. but they all bounced a uf of really key technical levels. they have been support, six months, a year, longer than that. and yelp bounced off of 75. a short-term type of trade. i think you can trade yelp to the long side against 75. >> i've been surprised that yelp is the quality trade around the world. i didn't really see that coming. but i've got to give kudos to guy. he was all over twitter on the down side yesterday. called the bottom. nice job. >> yelp, the valuation doesn't make any sense. we get that.

but one of the catalyst is a short of the name. that's going to drive the stock higher. if the tape holds in here, yelp can continue to do the grind, come into earnings, have an event. and it's up 18% on an earnings release. we've seen it before. >> i'm a huge fan of what zuk's been able to accomplish. he's been able to deliver on the mobile strategy. >> he was late to it. >> once it became the public company and he was put under the gun, and people started holding his feet to the fire, he's produced quarter after quarter. i like what he's done with some of the acquisitions. i know some of them probably it's tough for any of us to get our arms around the prices. the $17 billion, the $2 billion. and let's remember, the $2 billion, for instance, is a $400 million, with the kicker of the stock. he's doing things i think the right way. he's trying to hold off some of the competition out there. and figuring out ways to be innovative when everybody's arguing about apple is doing nothing to be innovative.

facebook is being innovative. oculus has multiple uses that will be interesting in the future. >> and one day, we're going to sit there with the googles on, as well. >> another sector that's close to correction territory is biotech. one company that's fallen twits as much as the sector as the sector is acceleron. the biotech company has produced four products in the pipeline. is it enough to turn the slump around? let's bring in dr. john knopf. what have you said on your share price? you have to comment on it in light of the action going on. how do you feel about it? >> again, we look to focus on our products. develop our products. we're making a lot of progress. our treatment for thalassemia, we're excited about it. we talked about the progress we made back in december. and the clinical folks, liked the data. and so did the investment community. we expect to present more data

this june. and everything is looking good. pullback in the sector, certainly some of the folks that have performed very well, often times are targeted a bit more than others. we're excited and look forward to talking about our developments this june at -- >> the fear was, you don't actually have any products currently on the market. your first product is likely to be available in 2017. but since your ipo, you've been up 80%. people are buying into hope? >> i think actually, our ipo in september, we hadn't really presented any clinical data on our product thalassemia. at the hematology meeting, one of the major meetings where thalassemia work is presented, we were able to talk to folks about the accomplishments we made. and it was well-received. and our stock really performed well since then. >> let's talk about, i know you have the partnership with celgene, which is great.

let's talk kidney disease. how big a market is that potentially? you probably looked at those metrics. how big a market is that? >> chronic kidney disease is a $400 million market. chronic kidney disease is one of the side effects of that disease is that patients develop anemia. so, they're treated with anemia. they're treated with a few other drugs to deal with it. the big driver, mortality in that disease, is the calcification of the vasculature. and it's been shown in patients to increase the red blood cell levels. and in clinical studies, it can reverse the calcification. it's calcification that's the big driver of the cardiovascular disease. and the driver of mortality in these patients. if we can correct the red blood

cell deficiency and correct this hyper -- correct the calcification of the vasculature, i think we -- the patients will benefit in a significant way and improve their life. >> certainly hope so. best in luck in fighting disease. dr. knopf for acceleron. has anybody looked at acceleron as a trade? >> i've been looking at the companies that have drugs on the market. i love where you are. i love that space. and that is what makes it so interesting right now. my favorite name is the space is amgen. and the reasoning is, they have so many drugs in the late stage right now, potentially could be huge. the company trades at great valuation. gives you a dividend, much like a big pharma. >> amgen. anybody else? >> i like xbi and ibb. i don't like to play particular companies. you wake up with a failed trial. it's the easy way out.

but this last run down 16% from the peak. that has been painful. >> it has been very, very painful for a number of those stocks. time for pops and drops. the big movers of the day. let's talk about a drop. gamestop, about 4%, pete. >> and the issue is when you look forward, you look at the guidance and the guidance is not where you wanted it to be. people will be very painful on your stock. they will sell it off. huge day today. maybe a bit of a washout day. double normal volume today. i don't want to buy it yet. but i will look at it now. >> a pop from symantec. >> some activists could get in the name. that puts a floor in the stock. it continues to go higher from here. >> and a pop from cliffs natural. >> speaking of activists, there's activists in this. but it got taken out of the s&p 500 last night, put into the 400. opened lower. ripped higher.

i like this space. i'm in this name. if you're thinking about a cyclical upturn in the economy, here's where you get your value. >> and a pop in the form of kohl's. popping 2%, karen. >> it was off the deal they signed. not sure if that was it. probably part of it. kohl's may have bought it. it's not expensive. and i think they're turning it around. >> we've got a pop for canadian cocktails. >> what? >> a bar north of the border is offering a new drink that's sure to fill your appetite. it's named the check mate. the hearty beverage is a bloody mary, with a full chicken, hot dog, pulled pork, a brownie. those that cannot stomach the drink, the bar offers light versions with sausage and chicken wings. >> that's perfect. you're a tiny, little thing. >> i could easily eat one of those. >> you're not even kidding around. it's amazing. >> i know what you're going to say. >> god bless you.

you have metabolism like a 9-year-old boy. >> i get a falafel sandwich every time on my way in. love it. let's get an earnings alert, on redhat. >> redhat, even briefly turned negative in the after-hours. remember, this was after the stock popped as much as 4% after its earnings. the issue here was the guidance on the conference call. during the conference call, the company said full-year eps would be 154 to 156 a share. sales coming in on the lower end when it comes to guidance. investors not happy about that. the fourth-quarter profits were stronger coming in. revenue increased by 15%. red hat, a flat levels right now. >> indeed it is. how do we trade it? >> sheila brings up a clear point right now. not only do you have to beat and give impressive numbers, but you've got to guide.

you've got to give the forecast of something in the future. if you disappoint, they're not going to be happy. that stock was moving to the upside very nicely. now getting sold off. i like it at these levels. there's better names in the space. >> not even gold can catch a break. hitting a six-week low. does it have further to fall? >> and amazon coming out swinging in the battle for your tv. and netflix is taking a hit. and netflix is taking a hit. that story, after the break. and you're talking to your rheumatologist about a biologic... this is humira. this is humira helping to relieve my pain. this is humira helping me lay the groundwork. this is humira helping to protect my joints from further damage. doctors have been prescribing humira for ten years. humira works by targeting and helping to block a specific source of inflammation that contributes to ra symptoms. humira is proven to help relieve pain and stop further joint damage in many adults. humira can lower your ability to fight infections,

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♪ video service in the beginning of april and reports surfacing it will offer a free video and streaming service. will this put it ahead of google and netflix? it feels like everybody is getting into this space. it's crowded. not everybody can survive. netflix is down in after-hours for obvious reasons. what do we think about this? >> it's the wave of the future here. let's take a look at netflix. it's already gotten killed. i'm not saying netflix can go to new highs. but a lot of this is probably priced into netflix. it's down 10 bucks now. 350 is a fairly important level for netflix. and i think if you want to be -- this is crazy risky.

i would not do this myself. you want to be risky, you can take a shot at netflix now. >> maybe it would be easier. not that netflix wants to put itself up for sale. we were talking about whether or not apple should get into this space and save a whole lot of time. and maybe amazon should buy netflix. >> that's a lot of talk. but apple with the deal with comcast on the settop, that circumvents netflix. in the longer run, i think netflix will have a tough time. they're going to have costs going up all over the place. >> anyone else? >> amazon is interesting. amazon was a momentum stock for the longest time. we said valuation is crazy. but the momentum is behind it. when it breaks. and now, it finally looks like it's a broken stock. that means amazon's in a position for the first time in a long time, that they absolutely have to prove themselves. not only on the earnings side of things, but on the stock side of things. at 338, 340, you have to wait and see. i have to look at it. at a certain point, it's going

to become interesting as a trade. i don't think we're here yet. >> no touch for amazon. back to the momentum trade. expedia and trip adviser getting hit this week. but coming soon, mike khouw is in los angeles with more. why are gains coming soon? >> we saw unusual activity in trip adviser and expedia. they traded well over three-times the average daily call volume. expedia caught my eye. about four firms have reaffirmed their buy ratings on this stock. we saw buyers of the may 75 calls. paying about $3.75 for those. earnings for this name come the first week of may. and if you're buying these, you're making bullish pbets to the upside, that expedia could be up by the third friday in may. guy adami was talking about priceline earlier. it trades a couple turns richer than expedia, on a valuation basis, it's probably the better bet. that's a stock that had less than $8 in earnings in 2009.

will probably do 52 this year. so, obviously, there's some good sentiment. but priceline is the one that's really performed over the long term. >> mike khouw, thank you very much for joining us. i don't know about you guys. i think he's looking kind of -- the best going. the combover. i don't know. i like this today. >> he dresses for where he is. he's in alaska or something. today, he's in -- >> sitting on the golden gate bridge yesterday. maybe he can do it for us again tomorrow. please? >> you can watch more "options action" at 5:30 p.m. and check out our website. and check out this move. sfx entertainment tanking today. right in line with karen's short call last night. we have to listen to our traders. ♪ [ bell ringing, applause ] five tech stocks with more than a 10%...

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liberty mutual insurance. responsibility. what's your policy? remember this instagram video of sfx entertainment ceo robert sillerman getting off a plane? yesterday, karen said she was shorting the stock, calling the clip ridiculous behavior, unquote. the company reported earnings

and dropped as much as 20% to a new 52-week low. karen, you signed of saw this coming. >> we were short going into it. let me set the stage for you. this was the worst conference call i have ever heard. >> what happened? >> well, first of all, let me just tell you, he, robert sillerman, he speaks with a very raspy voice, and very slowly. put that aside. ignore that part of it. and focus only on the content. that's what i did. i focused on the content. i could not understand what he was saying. i mean, i understood the words. just not in the order that he had them in and where they were going. >> you think he was possibly confused by what he was saying and not entirely in control? >> i don't know what was happening there. but it was so interesting, from the time he started speaking, until he finished, the stock dropped 20%. there's a very, very high short interest. we used that as an opportunity to cover half of our short. but here's what i think is really the problem for people who are long to think about. this is a rollup strategy.

and part of what they do is use their currency. now, you have a currency. this is a stock that ipo'd at 13. it trading a little over half that. if they want to roll up using this currency, people are going to be concerned about the currency, as are employees that have stock options here. i don't get it. i don't get the electronic dance movement. it's interesting and fun. i don't get it as a rollup strategy. he's probably a great promoter and really smart, as a public ceo. it's astounding. baffling. >> i can give you a primer on electronic dancing maybe after the show. >> you say it? jest. i love that -- what do they call it? electronic dancing. >> they call it jazz, these days. >> the rave. the rave parties. >> let's bring on a buzzkill. gold slumping to a six-week low. what's going on with the yellow medal? >> a lot of it had to do with

demand from china. and china decided to weaken their currency. the chinese started to buy a lot of gold. and we had russia, ukraine, crimea issues. and now that that's gone away, it's been deflated. you have the improving economy here in the u.s. the federal reserve potentially raising rates sooner. that's making a stronger dollar. you have the ecb starting their own qe. gold is challenged. that being said, at 1280, i'm going to take another look at it. >> 1280, we're not that far away from. >> about ten bucks away. >> you tweet it, we trade it. let's get some of your tweets to our crew today. guy? lionsgate. i cannot believe this sell-off. it is very cheap now. >> neither can i. i thought it would hold 30. it's not traded well since the fall. we started talking about it as it made a series of lower lows and lower highs. not good. i think it should hold here. but i thought that for a while.

but 26, it was the low back in the middle of may. so, if it bounces off the 26 level, it's interesting. i'm not sure what the next catalyst is going to be. this "divergent," a big fan of "diverge "diverge "divergent." >> how many times? >> seven. >> does seven mean zero? >> yeah. >> and we have karen, do you have your apple? >> yes. >> that's it? >> i mean, it's in no man's land here. i wouldn't add more. if it traded lower, i'd buy. it's no man's land here. >> okay. >> thank you. very succinct in your answer there. your first move tomorrow when we return. more "fast money" up next. mattel started in a garage.

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earnings. >> lady in red? >> google. i think it's overdone. >> guy? >> wearable tech. >> i'm mandy drury, catch "fast money" tomorrow. see you then. 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. >> hi, i'm cramer. welcome to mad money. other people want to make friends. i'm just trying to make money. my job is not just to entertain you but to make you money. tweet me at jim cramer. this market, this market is so