i think it is somebody on silicon valley's joke on all of us to generate multi-billion dollar valuations. >> very possible. >> sometimes it takes a lot of time and effort to type a text. someone might know -- >> yo, kelly. okay. we're going to follow the after hours action in oracle. one trader thinks it might soon be time to get into coach. >> over to you guys. "fast money" starts right now. live from the nasdaq marketsite in new york city's times square, i'm melissa lee. tim seymour, jon najarian, karen fireman, and guy adami. don't we'll have you choose one of our stories. logon to cnbc.com for are that. commodities spiked. gold breaking out today up more than 3% on the back of fed chair janet yellen's comments yesterday that rates would stay low for the foreseeable future.

violence in iraq driving up oil prices today. the spread between brent and wti crude getting wider here. let's start with gold. >> gold to me is -- bear market rallies in gold can be very deceiving, very painful. this is one of them. gold will be at $1,200 before the end of the year. i think it is a natural place -- the fed has normalized interest rates somewhere around $9.50. if you believe the fed is missing inflation here, you'll rally gold and that's misplaced. janet yellen i think is looking for wage inflation. we don't see that yet and calling the data noisy. i think gold is absolutely a head fake. to think we'll be taking gold back up to the old levels. otherwise you must believe central banks are ridiculously out of hand. >> ubs cut their price target for gold earlier in the week to $1,200 from $1,300.

>> i think the gold market got scared by yellen's comments. the word was "noisy." and there was nothing noisy about those numbers. you read into it. maybe they've lost control on the inflation sheet. i'm not sure that's the case. this won't last just a day. gold canover shoot to the downside and the up side but i do agree this will probably be a rally to sell. the other side of that though i believe is the move in the bond market then just as easily fadable. i would answer that question yes. i think the sell-off in bonds today is one you have to buy but again it might take a day or two to shake out. >> monster move in the gold. is there a trade there, you think? >> there have been up until this point and maybe they continue to be. but after a huge move today, to tim's and guy's point, you take a look at the quarter, folks. we are closing out this quarter in just a couple weeks. as you look at it, we're

busine businessically back melt to be back down 2%. chasing the shorts, chasing the cover, because tle were betting and they overstayed their welcome. as far as the minors, yes, in particular gdx. the gld had huge volume about three weeks ago. we cited it, said boy, off the charts as far as option volume. stock volume as well or the etf turnover was extremely heavy. today it turned over 24 million shares of that etf, the gld. that is huge. it 6.5 million a day. there is squeezing and some betting that there is inflation but i am in tim's camp. think it wears out very quickly. >> i never understand gold. wasn't all of this out yesterday, wasn't there time for there to be a reaction in gold, and yet it didn't seem to start reacting until this morning.

why is that. >> is this part of the iraq trade that also drove brent higher on the session? is this part after safety trade? >> i think if you look at what's going on across the commodity space you also are seeing food inflation. this is something that people are playing. the gold trade, this didn't just happen yesterday. gold traded down to $1,240 and gold ultimately is i think going back there. the same time with the minors. have you to be concerned. barrick was trading with a high 15 handle not too far back. this is already trading back over 18. gold miners have had a big beta. i think a lot of this news was out there. ultimately what this is telling you is that the fed is missing the rates are going to go higher, the bond market is leading the way. i think rates will go higher but not that. much higher. i think rates can go 30, 40 basis points. >> rates went lower yesterday after she spoke. the bond market modestly rallied

rates going lower. so it took 18 hours for the market to sort of digest this. tim and i think we'll agree to disagree on rates. i think we agree in the aggregate where gold is headed. >> but in terms of oil here, with the spread widening, isn't that a much better outlook for refiners? a few months ago we were looking at a $5 spread. now look at where it is. >> what we've seen over the past 72 hours or so is a widening indeed. we've had days when wti is going down when brent has been going you up. it is back out to about $9. that's great for holly, hfc, for wnr. a lot of the lls, the louisiana sweep, not just wti but louisiana sweet and the oil coming out of there, that's huge for these guys. >> it is not as if refiners -- it's totally underperformed the space. i'm not sure you missed the

straight. t i think you can stay in this trade because i don't think this trade has had the same kind of movement as the rest of the space. >> i think you still have room in conocophillips. there's another $6, $7 or -- >> i want a pss 5 2-week high. >> you wonder if conoco philips behind closed doors is upset that they spun them off when they did. with that said conoco has recouped all of those losses effectively from that spinoff, and more. i still like cop here. >> oracle is falling sharply in afterhours session. let's get the latest with josh lipton. >> melissa, oracle reporting missing the street's expectations. oracle reporting 92 cents on 11.3 billion. street looking for 95 cents on

1 1.5 billion. revenue on new software licenses unchanged at the 3.8 billion. that was also a miss in terms of what the street had been expecting. software updates, 4.7 million. basically in line. hardware system up 2%. new licenses is what analysts will be asking questions with on the call. i'll be on that call bringing you headlines as they roll across. >> thanks, josh lipton for that. intel gave us a head fake. we all thought maybe business spending was okay. but here we are. it wasn't so good. >> i'm not sure people have been calling oracle, part of this is a transition of this company going to big data, going to the cloud. this is a dividend play. this company continues to re-invent itself. the new software disappointment. having said all that, this is the part of their business that's growing 65% to 75% qua

quarter over quarter. it is a big part of their revenue mix. it is growing quite a bit. this company on a valuation basis looks even more interesting now than it did yesterday when the world was rotating into mega cap tech. i think this had stock is going to be brought unless there is a surprise in this call we don't know about. >> more headlines from the conference call as the meeting progresses. blackberry soared today after posting a surprise profit for its first quarter and beating expectations. the ceo said there is more to come on cnbc earlier today. take a listen. >> i wouldn't just write off the device yet because the device is large revenue obviously. a good device will give you a very good top line growth. i am very focused on being able to make money with our devices. >> is this the start of blackberry's big comeback? joining us, mark su, tech analyst at r bchbc. was that mostly deliver by short covering? >> it is a case of a very

heavily shorted stock and the results were actually less worse than feared. interesting with blackberry, for every person who's long the stock we have somebody who is short the stock. it's been a constant tug-of-war. what they have been able to do is improve their balance sheet so i think that's giving it a little bit of squeeze today. >> in terms of being at the tail end of the cost cutting, it was remarkable how much he was able to reduce its expenditures 57% year on year and 37% sequentially. since they are at the tail end, what's left now? they've just got to sell more phones. do you see that happening? >> yes. i mean they have to go through many difficult quarters of asset sales. they sold their real estate. they had to get a tax refund. it was almost like burning your furniture to keep the house warm during a nuclear winter. for them i think it is really about has the fire died down. we think it's settled. it is really about stabilizing revenues, getting the

profitability out of the devices and trying to move to bbn and make more money. it is a growth market and there are some loyal customers who are actually giving blackberry a second chance. >> thanks for your time, mark. mark's got a hold rating on the stock. nice call by collin gillis of bgc who upgraded blackberry going into the quarter mid afternoon yesterday. that was bold and it worked. but in terms of the blackberry trade, burning your furniture to keep warm during a nuclear winter in that's never good. >> doc and i had had a street fight a couple weeks ago, it was trading 7.5. good for doc, good for collin gillis. to your point, they just seem to be living on borrowed time. these guys have had six or seven lives and they seemingly have 15 or 16 left. i don't know what the stock can do from now on but i've been wrong. coach getting killed today. the four-year low.

is this the bottom worth buying now? we want to know what you think. vote at cnbc.com/vote. would you rather? i know, this is guy's favorite game. we want you to play along. would you rather michael kors or coach? the votes will show up live on screen. your chance to participate is coming out next. get our your phones, tablets, and computers. plus, the ceo of a broadband company that could change the way you binge watch "how was car cards."

welcome back to "fast money." we are keeping a close eye on shares of the dollar store family dollar. that's because carl icahn, the noted activist investor hedge fund manager has sent a letter to howard levine, the ceo and chairman of family dollar. in that letter he says that family dollar that is consistently underperformed its peers and on most, if not all operating metrics. he also says we believe that a number of reasons we discussed last night, it is imperative that family dollar be put up for sale immediately. he's calling for family dloor put itself on the auction block. he says that, "an overwhelming majority of the company's shareholders would be in favor of a sale." that's their position. also that they want three of

their representativesate@ed to the board over at family dollar. carl icahn putting a formal letter out to the management and board of family dollar. he wants them to put themselves up for sale and he wants three of his candidates added to the board of directors. melissa, back over to you guys. karen, who do you think could buy family dollar given you wouldn't buy the shares? >> i think it is kind of expensive. carl could buy it, if he wanted. he actually could. >> would he? >> i don't know. >> i have no idea. i think it is a little expensive. shares of coach diving. issuing guidance that disappointed many people on the street. our own karen finerman was not surprised. she gave thus warning a couple weeks ago. >> we think that it is very likely where we call kitchen sink quarter where they just reset the bar entirely. clearly this brand has been in trouble. not just everybody taking part of their share but everything

sort of seems to be going wrong. and i think that's a chance for hill to reset the bar lower. the company wants to talk it down. they want to talk their own stock down. i believe them. i hear them. whether or not they've said it, i still hear them. i do think this is a 3wr57bd that ultimately could be turned around but not by june 21st which would be what they need to do. >> how big was that kitchen sink? >> pretty big. they've elongated the timeline turnaround from next year, continuing through to fiscal year 19. they don't expect to get back to 30% operating margins until fiscal year '19. >> there could be incremental pauses in the story for a stock that's down to four-year lows dp. >> they lower the fiscal year

'15 to $280 this year. there could be incremental positives. such as you said, a kitchen sink guidance, but it remains to be seen whether or not that customer is going to come back to the store an how quickly and are the new merchandising and product initiatives going to take hold. >> it is a really interesting story. i had a colleague all over this and convinced me of the story on the short side. i think they have said to you, we are dead money for a long time, don't look here. so people will look. i do think they are an enduring brand but i don't see any real strong positive catalyst right away. >> even in the fall? supposedly in september the new line for the new chief creative director is going to be out and they're going to focus on better leather and better styling. could that be the incremental? i think people see a decline like this. not just today but over time. thinking there could and value play in that there could be a trading opportunity with the

stock where it is right now. >> for sure definitely in the short term there could be some opportunity. they are committed to the dividend. it gets people excited when the stock trades down at these levels. they were relying a lot on merchandising and new product in september but it is not going to be a quick turn. it is going to be a very long turn and it will be a while before we see people -- >> should we pay any attention to anybody who's saying leveraged buyout here, that these guys are a candidate for that? >> it is a really large company and there haven't been many consumer deals that have happened at this level. i would be wary of those rumors. it doesn't really make a lot of strategic sense for a lot of people. maybe a european player but i don't see that likely. >> all right. we want to ask you out there, if you had to choose which company would you rather own? it is our "would you rather" game. these are the choices, michaelle kors or coach. logon -- >> the stock. >> yes. the stock. not the handbag because guy, i know you are going to comment on the handbag.

logon to cnbc.com/vote. click on the logo of the luxury retailer you prefer as an investment. you can vote as many times as you like. tell us. in terms of your trade, karen, where are you on the trade? >> yeah. if i -- with a gun to my head i would actually probably rather buy coach even all that having been said. kors is just so expensive. maybe the business is going a little bit out of it. business is fantastic. product is great. stock has had a huge run. >> let's take the gun out of the equation. in terms of your short trade on coach and the timing to where you see it could be a value by, where are we? >> it's a while. i think it's a while. you got to wait. >> the yield is 3.7% or so? >> well, for now. but again, this is a turnaround trade that's going to take some time. competition is crazy fierce. i'm not sure the brand is as iconic as we think.

valuation is scary. would you rather? michael kors. >> would i rather? coach. i believe that $35 today, tomorrow, the next day, i think i'd take a shot and/or for everybody who always says, yeah, i'd like it cheaper, sell the put below that stripe. >> the voting is happening right now. it is almost a dead heat. guy, you weigh in. >> come on, guy! come on, buddy! >> this is fun. lot of pressure. >> i can just sit here and -- >> no. >> kors! kors! >> really. >> 19 times -- yeah, it is expensive but this has a cache to it where coach has gone away. kors are is taking the lead there, wise guy. michael kors. 19 times earnings, $89.50. i think i like to right here. >> would you rather? >> would you rather? 55% of you said kors. that's where it is. interesting. interesting debate here. >> fun game. >> let's do it again. >> i think we will!

you're not done voting yet. we came across two very intriguing stories that caught our eye today for "pops & drops." we want you to help us choose which one to talk about. so do you want to hear about a pop for a 60-meter long noodle out of china or a pop for zombie pigeons? vote on cnbc.com/vote. we will read you the story that you pick later on in the show. coming up next, a harley-davidson can you plug in. details behind the iconic brand's latest foray into electric greeks aft electric vehicles after the break. tdd#: 1-800-345-2550 searching for trade ideas that spark your curiosity

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i really hope you guys out there are voting. cnbc.com/vote. keep the votes coming. the question do you want to hear about a pop for a 60-meter long noodle in china for a pop for a pigeon coming back from the dead. vote now cnbc.com/vote. we'll read the story you pick later on in the show. so far the pigeon is winning. nobody wants to hear about a noodle? really long noodle? the story later on in the show. harley-davidson unveiling its first electric motor vehicle kicking off our top trades tonight. this coming monday harley will give us the first look at the live wire inside the event in new york. the bike can go from 0 to 60 in four second. engine is completely silent and batteries must be recharged after 100 miles. >> part of the beauty and genius of having a harley is the noise that it makes when you go through. you're hanging out in your

apartment and those 37 harleys go down the road, you hear them and you feel them? that's part of the experience. so this offends me on a number of different levels. >> maybe they will make a noise -- >> it just said silent. go back and read. that said, that said, this is an iconic brand that 16 times forward earnings is not ridiculous. shipments if you looked last quarter were very strong. enough after short interest where i still think this stock goes higher despite the fact that they are selling out to the man. yeah, that's what i just said. >> wow. next up, netflix, a down day for the stock but good news for chelsea handler fans. she's been signed to do a 2016 late night talk. >> she was getting $9 million a year to do that show on e! now she's going to be over there with netflix. it will be some stand-up as well

as some production that she and her people do. she was one of the people that was thought of very highly to replace letterman and so forth. could this happen? could she be a real draw for netflix? maybe. but that's 2016. that's a ways into the future. >> this is not a factor in the netflix trade today, is it? >> no, i don't think it is. but again, people are questioning whether netflix can deliver on the content. at one point it was all about, hey, they're paying so much for it. it's topical, it is important that they continue to deliver. >> after the break, the big reveal. do you viewers out there prefer a pop for a long noodle from china or perhaps a pop for -- >> from china. >> glad you dropped that. >> you might not want a long noodle from new york. >> few do. >> keep the votes coming. cnbc.com/vote. (vo) watching. waiting.

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the viewers at home have spoken. you've all chose ton hear a pop about -- pigeons! we'll have that story at the end of "pops an drops." time now for ""pops & drops,"" the big movers of the day. we got a pop for celgene up 4%. >> i think the stock split announcement helped but this stock has been coming back since early march when it had the precipitous drop with the rest of the space. i think it will push up and take up that 175 all-time high. >> the whole space actually has been under some pressure lately. but trulia, this is not deep enough to jump in yet. >> starbucks, delivering on valuation and growth. i stay long. >> we got to drop facebook down 2%. >> website crashed last night,

mel. that's what it said on the site. sorry, something is wrong. it's not as bad as the fail whale that used to come up a lot over in twitter. but nonetheless, the site goes down. people get nervous and some people decide to sell. >> a pop for the story you chose -- with more than 90,000 votes. >> that's crazy! >> zombie pigeons one. a group of geneticists are looking to resurrect the long-extinct passenger pigeon. they'll use museum specimen dna to bring the birds back from the dead. before extinct, the passenger pigeon was the most abundant species on earth. >> what could go wrong with that? >> now he who is a big pigeon guy? guess. mike tyson. >> pigeons -- >> maybe not the passenger pij.

whi pigeon. >> brad pitt bought the rights to this movie already, the one where they resurrect a pigeon. then the populous starts to morph into -- >> that's the story you people wanted. 90,000 votes. fcc releasing its annual measuring broadband neshg report this week. for the second year in a row, viasat topped the list with speeds. the chairman and ceo is live from san diego. >> thanks for having me on. >> the past couple times we talk to you we focused on accessing broadband, accessing internet on planes. you've got a residential service here you are trying to grow. tell us about that and how exactly you provide service to customers because i think most people have not heard of this. >> well, there are a lot of people in and around metro

areas, as well as in the most rural areas that just can't get really high-speed broadband. so we're on a little bit of a mission to show that satellites are really good way to do that. this fcc measuring broadband america is a really good forum for people to understand how good satellite can be, that we can deliver speeds. we advertise 12 mega bits. we deliver 17 to 18 on the downstream. we think there is a lot of growth opportunity with it. >> at the same time, we should note that the market share is pretty small when you go up against the likes of a comcast, the parent of our network, or time warner cable. you've got like 1% of the market right now. is part of the function of being fastest that you have the fewest users, so therefore you are not clogging the pipe, so to speak? >> well, our target market right now with satellite is really to connect the unconnected.

some people felt that satellite could only serve people at no other choice. we are trying to show is just move up a notch and say we can be a better choice than things like a dsl line at a megabit or two. or people using 3g or 4g wireless for home. it doesn't make sense to target a fios or comcast level. we are working to improof ove o schedule. we have 640,000 subscribesers since the end of march. i think we are the fastest growing isp of our size. >> a lot of analysts last quarter were disappointed with the net subscriber ads. down 54% year on year. you are aiming for $900,000 for early calendar year 2016 but analysts are skeptical because that would imply a 30% increase

in additions given where you are now. are you still confident that you can hit that target? >> well, we do still think we're going to grow. there are some seasonal issues in terms of the the rate at which we add subscribers. the other thing we've been focused on is trying to increase the value that we offer to subscribers. one of the things that we've been reporting on is that our average ref pvenue per subscrib has gone up because people sign up for more valuable plans. one of the things we are aiming to communicate to investors is what our strategy is and why some higher value subscribers are better for us than just adding basic subscribers. >> that's what's different from a lot of the other providers and that is you sort of have an a la carte. if i binge watch "house of cards" or "orange is the new black" on netflix and use

enormous amount of broadband -- whichvy been known to do -- you might charge me more than guy who just uses the internet for his yo app, for instance. >> yes. the issue is, in order for us to provide good service, we have to know what the volume, how much bandwidth people are using. we try to make forecasts over that but we also try to shape our plans so that people who useless, pay more, and those who use more, pay more, and balance that. meantime we try to come up with new satellites, we have one coming up in two years that will let us twist the dial and give even more bandwidth to everybody across the board. that's sort of the strategy. but doing that well is what lets us deliver the speeds that we advertise. >> mark, we'll leave it there. thanks for your time, always good to see you. >> thanks very much for having me. appreciate it, melissa. >> interesting model here. if they can move the needle in terms of market share they could force others to take a look at tiered pricing. >> what they did and they disappointed in the first quarter but what they intend to

do is find their suitable customer base and they're not going for everybody. i think the way the stock has moved the street has gone somewhat neutral on it and it reflects kind of a balance. huge opportunities, lots of competition. i don't think you have to run out and buy this one but it is a very interesting business. >> you put it long term, it is a volatile stock with 70 couple weeks ago. jim had this gentleman on a couple weeks ago on "mad money." he said basically the same things. now there's some sort of judicial event going on that sort of muddies the picture a little bit more. it is not ridiculously expensive, believe it or not, at 26, 27 times forward earnings if they can do what they say they are going do. but you got to take a line in the sand here because if you wait for earnings it is going to be too late. >> following oracle. cnbc's josh lipton has been on the call. >> on that call the company's cfo just giving guidance here. q1 revenue guidance of up 4% to

6% that would imply revenue of $8.7 billion to $8.9 billion. street was looking for $8.8 billio billion. larry ellison says he is focused on one thing an one thing only -- take a listen. >> focused like a laser on one goal over the next few years, becoming the number one company in cloud commuting in two of the most profitable segments. software as a service, and. platform as a service. >> why is ellison so confident he's going to achieve those goals? because he said they had the most complete portfolio of products in the cloud pointing out they're already number two had in overall sas, or software as a service sales. >> thanks so much, josh lipton. you tweeted out the office was

only looking for a 4% -- >> it's already 50% more than that, the move today. what's that say? it said that the volatility which you cite all the time as being at historic lows for the broad market was a little too low in oracle as well. what happens, it moved outside of that. it's basically pushing to a standard deviation move. i like it down here though and i would be accumulating if it stays down below 39. >> it seems a little overdone for the magnitude of the miss given that they didn't really guide significantly lower else your in the year. so that's odd. though him saying this is our goal, he can get to that goal. it is like being at an auction. you can win if you just keep raising your paddle and buying things. he'll get there, if that's what he wants. the question is at what price. >> i think it is overdone, too. you want to look at this quarter and say bad margins, maybe. but it wasn't a disastrous quarter. i think it is just one of those quarters where the stock got ahead of itself. it will do a back ha-end fill.

new company is taking on google's shopping express and amazon fresh. instacart. a grocery delivery service promises your order at the door in less than one hour. coming up we talk to the ceo about his latest $44 million round of funding. plus, dr. j found some unusual activity in one financial name today. we'll tell what you that is after this break. more "fast" straight ahead. and it feels like your lifeate revolves around your symptoms, ask your gastroenterologist about humira adalimumab. humira has been proven to work for adults who have tried other medications but still experience

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welcome back to "fast money." smith & wesson shares a big focus for investors. fourth quarter earnings topped estimates by 5 cents a share helped by robust consumer demand and strong operating margins. however, shares are taking a big hit in the aftermarket as the gunmaker warned of significantly lower than expected sales for the current quarter and full year as well. so again, it is not the results this past quarter. current quarter forecast and full-year ones are dragging this stock down after hours. >> thanks for are that. let's get some unusual activity. dr. j's watching ago. assured guarantee. >> assured guarantee. they came in and took some profits on some july options

today, meaning they were sellers of those and they rolled them out to october. so big numbers. again, one of my favorite patterns when we look for unusual activity is when somebody takes profits and sticks with it rather than just exiting. they are sticking with it and saying i think it's got another quarter's worth at least. i bought along with them. >> delivery demand is taking up. ins instacard is taking on google shopping express and amazon. the company just received another $44 million in funding to make it company. the founder and ceo of ins instacart, you don't have any inventory, you don't have to story the groceries or worry about spoilage. you just worry about the means of getting this product to somebody's house. >> that's correct. we don't hold any inventory. we don't have any warehouses. we don't have any trucks. when you order your groceries, we connect you with one of the thousands of personal shoppers in our network who go to existing stores such as whole

foods, costco and many more and pick up your groceries and deliver them to you within one hour. >> how do they know what to buy? i assume if i'm going to hire somebody to go pick up groceries for me at whole foods, i will have gone to the whole foods website. while i'm there, i'll just have them deliver it. why do i need to bring somebody else in once i deliver the shopping list? >> many of the stores do not have a website or inventory online. instacard gives you an amazing experience where you can pick your groceries, then check out and say i want the delivery within one hour or between a pre-subscribed one-hour window later in the day. the shopper gets that notification on their shopper app which is a very sophisticated app which actually shows them exactly what to pick an they deliver them to your door without you even having to leave your house. >> i got a question for you. i'm a little bit older than you. i remember a company called cosmo in 1999-2000 which to me was a bike messenger service. they raised $250 million and it

went to zero. what -- why is this not the next cosmo. >> yeah. so cosmo and webband were some spectacular failures. this time around things have been very, very different. for the first time in history we have a huge population base which has smartphones. these are people, just like you and me, who can actually use their smartphones to pick up groceries and earn money as a result of that. with bike messenger services like cosmo, they actually had warehouses. they actually had infrastructure. we don't need any of that. for us, instacart was profitable from day one when i was working on it from my apt. >> how do you divide the profits? the shopper has to earn something. you take a cut of it? how does that all work. >> the shopper actually gets a commission based on the number of items they are picking and the number of deliveries they are making as well as they get to keep the 100% of the tips that the customers may provide them with. the customers pay a delivery fee

and some of the retailers offer a fee to instacart as well. >> tell us a little bit about the demographics of your shoppers. there's got to be themes in terms of ages, metro, socio, economic. give us an idea of who is using your service. >> absolutely. they are cuss mess and shoppers. shoppers are the people who are doing the picking and delivery. >> i mean your customers. >> got it. the customers, there are four distinct demographics of customers. we have ones that are moms. moms love instacart because they don't have to take their two kids to the grocery store. that in itself is incredible for them. for office managers. the last thing they have to do, they want to do is go to the grocery store every single week to pick the same items up. elderly and disabled are great customers for instacard. finally, young professionals like myself. i love the convenience of having instacart. >> who is your greatest x esest

competitor? a fresh direct or uber? >> uber does not do grocery delivery. >> but i would think that they could. >> grocery delivery is surprisingly challenging. to pick the right avocados, to pick the right type of produce and items, how do you replace a type of ketchup, for example? how do you integrate with a grocery stores in a really interesting way? it is surprisingly difficult. that's why we don't think that either one of those companies -- >> amazon and google have deeper pockets and they probably know it is hard to pick an avocado and they figured out how to do it. >> absolutely. amazon twlb are two tice of competitors that we have. ones that are infrastructure heavy and ones that are infrastructure light. when you order from those companies, you can get a limited selection, only the selection that's available in their warehouses. on instacart you can order from all the stores in your city.

also because they have these trucks they don't have to drive around, the best can you do is a next day delivery which is terrible from the the customer's point of view. with instacart you can get insta delivery. just like uber. there are infrastructure light companies that don't do fresh groceries. while we agree they do have deepdeep er pockets, our products are way better. there is definitely a long way we still have to go. >> thanks for coming by. interesting product. >> yeah, very interesting. the idea also that you might be able to just use everything right here. in other words, the payments and everything back and forth. i like it. i'll definitely -- if i was in san francisco, mel, i would give it a shot. one institutional investor making a big wager on an oil company. we'll break down the trade on the other side of this break. more "fast" straight ahead. with fidelity's guaranteed one-second trade execution,

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welcome back for "fast money." ak steel shares are dropping 3% in after hours trading after warning of an unexpected loss in this coming quarter. steelmaker is now forecasting an adjusted second quarter loss of 2 cents to 6 cents a share versus wall street expectations

after 10-cent profit. the company is blaming extreme winter weather and poor hedges for the weak results in the current quarter. shares of newfield exploration up more than 70% this year, some are betting it could move another 30% this year. >> newfield exploration traded more than ten times over its average daily call volume today. most of of that was attributable to a single trade. we saw a buyer of january 45 calls, they bought 5,000 of those for $3. to reduce their cost they sold 5,000 of the 55 calls in january. you see just how far up that is. basically this is a bet that newfield is going to be above $47.50 by january expiration. that's kind of interesting. if you look here you'll see the stock was much higher if we look back at a five-year chart. 260 is what they are expected to make but arguably the reserves are where the value comes from.

with the development of lng terminals along the gulf, that might be what trade remembers betting on. >> check out the website at optionsaction.cnbc.com. coming up next hour on "mad money," the household name cramer thinks is a juggernaut. did you get one of those 17-pound restoration hardware catalogs? i did. yeah. cramer makes the ceo do some heavy lifting coming up at the top of the hour on "mad money." those things are pretty heavy. [bell rings] ♪

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the next generation 2015 escalade. ♪fame time for the "final trade." let's go around the horn. >> yore kworacle is a gift down. larry ellison will get where he needs to go. i think a lot of people will be waiting for this thing to settle and i will be buying it.

>> wr grace. gra is the symbol. i like the stock. unusual call activity. they were buying a lot of upside calls. maybe this one is ready for an upside break. >> karen. >> yes. coach. if you want to initiate a position i think you still got to wait. there's going to be more fallout. why would i buy half back today? because the risk/reward are has changed a lot from yesterday before the analysts did. but it is a dirty company. one day it is a buy. just not tomorrow is the day. >> do you think that that one day is relatively soon or do you think that one day is like a year from now? >> somewhere in between. six months from now could be the day. >> that grace building in front of it. very slippery, the -- >> oh, yes, i know that. the sidewalk. >> the sidewalk. it is a little bit wet, that's a trade school for you folks. if you're going to tour manhattan this weekend, if it is a little bit slippery, be careful in front of the grace.

>> cbi, poppycock. >> i'm melissa >> 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. [ applause ] hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to make you money. my job not just to entertain you but to educate you so call me at