it's time now for "fast money" with melissa lee. what's on tap? >> welcome back, kelly. everybody loves a good moment stock, but lot broke in the month of march. down 67% from the high in march. we have an analyst saying the sentiment is unduly bearish, upgrading it today. we'll have that analyst on to tell us why he says it's a buy right now. >> and i understand maybe a little apple talk too? >> yeah, we'll mention it. >> all right. over to you guys. >> thanks, kelly. "fast money" starts right now. live from the nasdaq markets in new york city's times square, i'm melissa lee. timothy geithner, pete najarian, karen finerman, and dan nathan. a big announcement from general motors today. the company says it will have a self-driving cadillac available within the next couple of years. so why has the stock fallen today? that story is coming up. but first, tonight's top story, oil's big move. wti crude selling at an eight-month low today. and brent falling bowe 100 bucks a barrel for the first time in 14 months.

energy names like exxon, halliburton, schlumberger, all dragging on the market. the top five in the s&p 500. four of them, pete, were energy stocks. are you worried about this allergy trade with crude where it's at? >> i think what we're seeing is a rotation in the market. this was an area that was outperforming for a very long time. we had seen the energy stocks move into the upside. i think what i'm looking at as oil is dropping is last week we talked about some of the unusual activity in the airlines. take a look at the way the airlines continue to trade to the upside. the transportations in general, when you look at the rails as well you. had new 52-week highs in norfolk southern, in canadian pacific, in canadian national. you look at the airlines as well. continue to move to the upside. ual, dal, ha. across the board, we continue to see that move. so rotation, that's been the story of 2014. when somebody has outperformed, somebody else is looking for an opportunity. right now the opportunity is not quite yet i don't think for the energy news. >> hitting a record high.

you say rotation out of energy. does that mean the energy trade for 2014 is done? >> well, which part of the complex? if you look at the amps absolutely. you're talk more if this is truly not based upon a fundamental assessment of where the oil market. and i think the oil market is react to two things. fundamentals like data last night in china. we had much weaker data. that's weighing on things. japan's second quarter gdp contracted. i'm of the view that the world is a better place than all of that. but then you go into a week where you an opec meeting and saudi, with all that is going on, then you have stuff going on in the stwarktsry entirely tactical. it's a long way of saying oil prices can continue to go lower. some of it fundamental. some is technicals. and that's the trade. if you look at refining and utilization in the states right now, it's way too high. we're at record highs. it's coming down so you sell the refiners here. oil is probably going to go lower. and that's your trade.

>> well, listen. i would take it away from the stocks here for a second and look at the volatility. you're tacking about commodities. look at crude oil, down 12% in the last few months. look at the volatility we've had in currencies, that we've had in global equities. and all of the sudden now, you get a picture where the s&p, the realized volatility over the last ten days is 4. that's implying less than a 50 basis point move on a daily basis. we have no equity ball here. but we're seeing other asset classes move. so that volatility at some point has to kind of wake up global investors to the potential of further volatility. it seems complacent right now. >> i want to take pause. breaking news. courtney reagan back at headquarters. >> that's right. with edo have a deal here in the food space. general mills announcing it is buying annie's for $46 per share in cash for a total of $820 million. the deal expected to close later in this calendar year. the transaction has apparently already unanimously been recommended to annie's

stockholders except this offer. as you see, shares piking after hours. i think that's up 36% as more consolidation happens in the food space. back to you guys. >> all right, thank you so much, courtney reagan. and remember, annie's bnny is the ticker on that is a fairly recent ipo. in the recent years the stock has really had some problems this year, year to date. do we see any unusual option, guys? unusual activity in bnny or gif? >> i'm looking at bnny right now, annie's. i'm not seeing anything. i do see volatility that has spiked, but not not really seeing options. i'm looking at open interest, dan. i'm not seeing a whole lot of open interests out there as well. no is the most clear answer i can give you on that. >> the two top strikes are all puts and they're both in december. >> this is a very interesting space. i still own pinnacle foods. and it takes you back to the hillshire tug-of-war between the brazilians and tyson. this is a name i think can continue to move higher. i think the entire space, if you

logistic at a general mills, he's are in the middle of a place where some people think they can also be a target. but i talked procter & gamble in the consumer product space. this is all a dynamic that is changing and you're seeing global scale being very important, logistics important as well. i think general mills looks interesting here. >> karen? >> to me, it's all about growth. if they can't grow themselves, they can buy. this looks pretty expensive. but, you know what they earn on cash is next to nothing. so you can pay some pretty high multiples. it makes me think something like a hain, which is much bigger, i think of them often as a buyer, but i wonder at what point they would be a target. >> isn't this what you want to see? we keep hearing buyback levels at record highs. i want to see mma. this is a great tuck. in we did a whole piece on this a couple of months ago. we were talking about this about or annis. i think this makes sense. i want to see more in

technology. you're saying that expensive. but they're going to get leverage out of this. >> absolutely. they can run it much cheaper and they can earn a lot out of it. >> i like that from a market sustainability. we're all looking for the next wave. and people say we need to have mma activity. how can you hate buybacks when they're essentially raising the valuation of the stock by taking stock off the market. >> they're doing it at all-time highs. we have a situation. we talked about this. if you're am. >> you have to be happy about it. almost every purchase has been good. in this bull run for these companies that are at all-time highs. but historically, a lot of companies buy their stocks very poorly, and then they end up, you know, like the banks just did six years ago, selling them out at the lows. >> i want to get back to mma. general mills announcing it intends to buy annie's. we do see the pop on annie's hitting that $46 share mark. pete. >> amazing. >> where else do you look?

>> in the food space. >> food space first. >> i think to tim's point, thing is multiple names. well look al at all these various names. recently pinnacle someone of those names. campbell soup is another one of these areas where they're probably more of an acquirer right now. but when you look around, i think actually, at some point in time, the energy space starts to get interesting again. for all the reasons tim was talk about earlier. he didn't talk about fundamentals. these stocks are getting hammered to the downside. i think when you came into 2014 you expected to see energy and the consolidation. we've seen some but not nearly the amount we expected to see based on a lot of different reasoning. i tleek that space as well, outside of food. >> i would say inner, the it's interesting. we had price line that made that bid for opening and trulia and zillow and the failed sprint and t-mobile there are some deals that are actually keeping the stocks down. priceline is underperforming. zillow and trulia are facing some regulatory stuff. the t-mobile and the sprint thing was scrapped because of potential regulatory. so all these things don't make a

ton of sense. that's why on the annie's situation, it was subbillion deal, and that's a -- >> it's not going kill them. >> it's a good tuck in for a big company that doesn't have the growth. >> on the other side of it -- go ahead. >> on the other side of this hole thing, don't forget about the pharma space. we talk about it all the time, allergan deal, some have fallen apart, some haven't. it's a lot more to this than inversions right now, quite frankly. thing are so many companies out there looking for that pipeline, looking for that next drug. and when they dent want to use their own money to do that right now, they'd rather buy into it. that's why i think that space over the next three or four months will be absolutely red hot. >> let's look at hain, trading higher as well. sort of in the same space. organic food, that's all the rage. where the growth is in the food business. so we're seeing reaction in the stock. >> let me point out one other thing about annie's, there is a big short interest here, 22%. that's going to be some pain tomorrow. and it's going to make people think about other shorts that

are expensive and maybe shouldn't be trading as as high multiples as they do. but this could happen. that's scary. >> annie's went public march 2012. it was an ipo price of 19 bucks a share. remember that time? that was a very hot ipo when it did go public. but this takeout price is below the 52-week high of 52 bucks a share. so maybe sort of a concession that hey, this is as good as it's going to get right now from the management. >> this is as good a it's going to get right now in terms of taking out the health foods or good for you foods. and goes back to look at the casual dining space. this is where everybody is repositioning, or the companies that are doing very well. you look at the chipotles, the growth. a lot of this is coming from people changing their diets. you see what coca-cola needs to do. you see what mcdonald's needs to do. they will also going to be buying small companies without having to transform their iconic brands but will reward them for growth. monster, maybe not good for you

but it's getting you into a space where it's a new evolution of consumer tastes in the food and the beverage space. and that is exactly what you should be looking for. >> again, we'll be following this as we get the developments. general mills announcing that it intends to buy annie's for $46 a share in terms of the corollary impact, we're seeing hain shares in the after hour session. if they open where they are trading now, this would be a new 52-week high. let's move on the autos for. now specifically, gm, announcing that it will soon be introducing a hands-free 2017 cadillac models to consumers. cnbc's phil lebeau is live. >> interesting couple of days when you look at the announcement from general motors as well as the comments from ford chairman bill ford regarding how quickly we're seeing the connected car come into the marketplace and all the implication there's. with regard to general motors, gm is making a strong commitment here that not only will it have a cadillac model, a new cadillac

model in the 2017 model year that will have super cruise control, which will essentially allow you to do hands-free, foot-free driving on the highway. that's the main area where we're focus right now. they're also going to be focusing on vehicle to vehicle communication within the next couple of years, and vehicle to infrastructure. the implications for this, melissa, is when you look at a company like mobile i. mobile i has a number of different makers it partners with, and they're right in the sweet spot. you need the cameras. you need the sensors for the vehicle to vehicle communication and the infrastructure communication and for the connected car that can sight the lane lines and knows when to tell a driver look, we're needing you to take control. this is a really hot they're it's clear after talking with people here in detroit, it's only going to get hotter. >> phil, why do i want to buy -- why do i want to buy a deliver rest call from gm after they've had all of the recall issues? >> well, first of all, as much

as you will say, that there are still so many people who are buying gm molds. it's still the number one brand in this country, and number two or three depending on how you're counting automaker in the world. the bottom line is, this melissa. every automaker has to make sure that this technology works, regardless of the recall issue with noygeneral motor. it doesn't matter how cool it is if we take it out and the reporter says that's really cool and you go in the real world and it only works 85% of the time. it has to work 100% of the time. she sbegt they'll get the technology right. >> phil lebeau, thank you very much. driverless car. gm shares down with ford. no help from morgan stanley. >> this is not necessarily going change the demand profile of the cars in the short-run. if you look at the numbers, a lot of people, dan and i were talking this, you look at a charts with all the good numbers we've seen in terms of auto sales, we're at 2006, maybe peak

auto cycle levels here. and a lot of people are concerned. karen brought up, or melissa and karen brought up that they're worried about the auto loans. and that's a level of bubblelicious nature. this is another reason i want to sell tesla, because i think all the big boys are going to have their own competitive way into technology. and maybe that's a bit of a stretch. but the point here is that this is a very active space. but auto companies here have a lot of great news in terms of current sales pricing. >> what about reaction? >> i disagree. i like tess lap. i like it through options by the way, because i don't want somebody to absolutely get trapped. but when you look at the options and the implied volatilities are well below normal. and we see activity every single day. 280s to 300s today. in the weekend options all over the interest by a lot. i think this is some great opportunities throughout. elon musk talked about toyota and a potential deal in the next two to three years with them to work together. thing is a lot of reasons why

this isn't one of the names that goes higher. and the morgan stanley downgrade of ford, completely disagree with it. i like the china sales numbers, the 9% growth. >> worried about the f-150. >> and they're worried about the f-150, and they're the ones worried about it. ford is not worried about the f-150. >> lower than the outgoing truck? >> this is the number one selling vehicle. and i still think -- i own the f-150. i'll go out and get the new f-150. >> giddyup. >> mobile i had a great day. >> new high, even though it's levitating already, it just bring morse interest to the space. even the valuation is crazy. but it is absolute value, it's not that big of a company. i don't know. i think it's interesting. >> peter, elon musk, he just told you that the stock is expensive. >> right. >> to karen's point. but he said at $200 a share. >> hold on, guys. they're embarking on this giga

factory. they're going to spend billions of dollars. they're going to need to keep raising capital. >> you can keep saying it. but i like it at 280, 290. an ale's long-awaited iphone kicks off tomorrow. the tech and the fashion world buzzing. but what will investors think? that's next. and amazon announcing you can get its new phone for less than pack of gum. maybe the company's ads needed more gary busey. >> i've been on this earth nine years. i've never seen anything like it. you just have to win 70% of your points at net. and keep unforced errors under 10%. on the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. data can help show you how to win, no matter what business you're in. today there's a new way to work. and it's made with ibm.

it's in this spirit that ingu u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya. changing the way you think of retirement.

extra curricular activities help provide a sense of identity and a path to success. joining the soccer team. getting help with math. going to prom. i want to learn to swim. it's hard to feel normal, when you can't do the normal things. to help, sleep train is collecting donations for the extra activities that, for most kids, are a normal part of growing up. not everyone can be a foster parent... but anyone can help a foster child.

shares of an really down more than 4% over the last week. apple snagging mark newson who has worked with johnny. could it give us a clue what it might have up its sleeve with the new i watch and phones? joining us is "vanity fair".com's news editor. thank you for being with us i didn't quite get why they would get mark newson and then it became a little clearer. what do you think they have planned for him? >> i'm sure you noticed his

design team. he has done cell phone, watches, concept cars. he has spanned the spectrum of industrial design. and he is a real peer of johnny ive, head of apple's design. maybe he'll work on the products they already have in their line. it will be interesting to see. >> how is he regarded in the industry? >> i think he is arguably the most influential industrial designer of his generation, matched only by johnny ives there is a lot of talent in house there. >> were you surprised about this hire? >> i think it's surprising in sort of the long sense. but in the short sense, apple has hired executives from burberry, from yves lant laurent, from nike. it's sort of in that movie and beats acquisition. it does seem they're picking up as much talent and bringing in as much as possible. but these guys have been friends for 20 years. it's interesting to see them finally be employees of the same company. >> has he brought him in to be a peer or the heir-apparent? is johnny ive, is johnny ives on

his way out? is there another chapter for him? i think there is a lot of discussion about how he was passed over for certain roles when tim cook took over. this the last kind of segue for him? >> there has been some speculation to that front. i'm not entirely sure only because i see them as such peers. and this is somebody who is maybe going to fulfill that sort of soul mate role for johnny, and they're going to be able to call each other out. they've already been working on projects over the past year that they've been designing together for am. so we'll see. >> these are all interesting. does this make you more bullish apple? >> absolutely. >> you like that they're spend mongolia to hire these guys? >> and as you mentioned, burberry, nike. you look at system of the hires they have made to get themselves into a very interesting position right now. did you see that watch today from intel, for instance. that was incredible, i thought. they've made some partnership there's as a well. mike bell, who has been on this show talked about hey, look, we're going to get into wearables and we're jumping into it.

i think that does put a little more pressure on somebody likeasm. they have to produce. do you expect that i watch soon, or is that going to come later? and it is going to be far more than just an athletic gear. it going to a statement about fashion do you think? >> that's the question. we hear they might be teasing a preview tomorrow but definitely not to ship. they might ship next year, apple's i-watch. no one is confirming anything. i do think the hires and the outreach they've been doing to fashion editors does suggest they're going to really be looking to make something that actually look likes a watch and not that a computer that was strapped to your hand. but as you said, the pressure is high when apple is moving into this market. >> isn't it potentially really late to bring in someone like that for the watch? >> yeah. >> what else do you think could be down the road that would play in? >> i think it's interesting. when we spoke to apple, they wouldn't confirm. but they did say that marc and johnny had been working together over the past year on some projects for apple. again, they don't confirm it. but whether it's an t next

generation or iphones, we're getting new iphones almost assuredly tomorrow. so we'll see what they have coming up. >> thanks for coming by. >> thank you so much. as apple gears up to launch its smartphone, amazon makes a move with its own smartphone. just two months after launching the fire phone, amazon is cutting the cost of the device to 99 cents, down from $199 with a two-year contract. amazon shares are down about 1% today. you're saying that this actually looks like an interesting short at this point given where it's come from, it's marched low. >> investor sentiment has gone from grass half full to glass half entry. when you think of the introduction of the fire phone, this was a disingenuous project. it's not like the kindle that basically recreated the book buying and book reading experience a long time ago. and it really turned the industry upside down. what these guys try to do is come in late and put something in your hand that will make you

buy more crap on amazon. the device itself is not compelling enough. and it's obvious by the pricing there is no uptake on it. >> the thing that is amazing to me, the expectation no, sir phone were exceedingly low. and yet they have disappointed by a mile. and yet the stock hasn't really reacted that much at all. it's astounding. >> i think that's a good point. that's my view on amazon here. i think the expectations for the stock are so low. danny is bringing up a good point. it failed at 200. at 330 it better hold the level or it's going quickly to 300. it's been making slightly higher lows. so there is a very interesting technical setup for a company that nobody likes. we're going the talk about alibaba later in the show. should you be concerned about amazon in a world where we have possibly a bigger coming in to eat their lunch. >> the problem was obviously the pricing. should it never tried to compete with am at $200 with a two-year contract. that's ridiculous. so that was a huge mistake.

when you really look at in the big scheme of things, the one reason i would say i disagree with what you're saying, this is nothing for amazon. this is an absolute just minuscule part of anything to do with amazon. so failure or not, i don't see this dirks it's not a reason to buy or not buy the stock? >> right. it certainly wouldn't make we short it. >> they lose money on the phone. they lose money on the r&d. this is a company that doesn't produce a profit. they did $19 billion in sales and they had $40 million in profit. so every little thing that you tack on here, you know, and a listen, investors are hip to it. the last 3/4, this stock has sold off 10%. >> death bay a thousand paper cuts? >> ultimately it will be. it's an interesting techno setup here. it's moved to about 345. if it can't get through here, i'm going look for a short. >> are now in amazon? >> i'm not. but i would buy it. >> you would. >> yes. >> coming up, going behind the scenes as the alibaba ipo takes off. everything you need to know from the road show, and what the implication mace be for the u.s. market.

that's ahead. it's all about giving you a framework of how to look at the market. whereas the world has changed, our show has evolved. i am guy adami. i am "fast money.." >> i am a pete najarian. i am a "fast money." >> are you fast money? go to nbcuniversal store and order your "fast money" t. run with the big dogs. tigers, both of you. tigers? don't be modest. i see how you've been investing. setting long term goals. diversifying. dip! you got our attention. we did? of course. you're type e* well, i have been researching retirement strategies. well that's what type e*s do. welcome home. taking control of your retirement? e*trade gives you the tools and resources to get it right. are you type e*?

where the reward was that what if tnew car smelledit card and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com with centurylink visionary cloud a brinfrastructure, and custom communications solutions, your business is more reliable, secure, and agile.

machines will be sprayed to be made. and making something stronger... will mean making it lighter. one day, factories will work with the cloud. one day... is today.

good news alert on the latest from the sentencing of sac capital's matthew martoma. let's get to kate. >> thank you so much. i'm standing in front of the federal courthouse that was just the scene of a somber two-hour sentencing hearing in which there was much discussion, primarily about the length of the sentence in jail that convicted insider trader matthew martoma would receive. his lawyers argued that the amount of time in jail should not be connected terribly closely to the amount of the ill-gotten gains, but the judge in a key moment said i cannot and will not ignore the fact that the amount of the gains was

in the hundreds of millions, referring of course to the fact that this was a quarter billion in gains and averted losses, organizebly the largest haul for an insider trading mechanism in history. in the end, martoma received nine years. not a record for insider trading, but certainly on the high side. his forfeiture will be in the amount of about 9.4 million is essentially the amount that he received in a bonus for the year in question. there will be no fine attached to that. martoma i'm told watched somberly inside the courtroom, was silent coming out as well. his wife wept a little bit. they're the parents of thee small children. with him in jail for nine years, he won't be able to be with them that was one of their key arguments for leniency. one thing i should note, they asked if he could be placed in a miami prison camp, and the judge said he would make that recommendation. back to you. >> all right, thank you so much, kate kelly. coming up on "fast money," shares saying the sell-off of

the stock is overdone. the analysts will name that call later on. throughout the state. and startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. thanks to startup ny, businesses can operate tax free for 10 years. no property tax. no business tax. and no sales tax. which means more growth for your business, and more jobs. it's not just business as usual. see how new york can help your business grow, at startup.ny.gov but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

when you compare the top speed of dsl from the phone company with the top speed of comcast business internet... well, there's really no comparison.

why pay more for less? call today for a low price on speeds up to 150mbps. and find out more about our two-year price guarantee. comcast business. built for business. breaking news this hour. general mills says it is buying

natural and organic food company annie's for 46 bucks a share that news sending annie's higher by 37%, pushing other stocks higher, including white wave, boulder and hain celestial. joining us on the fast line, great to have you with us. >> yep, good to be here. >> i don't you take a look at this deal, and you think who is next. who is next? >> well first you have to look at, you know, what annie's is. it's a terrific brand, an umbrella brand, which is very important, because you can get good marketing leverage off of a single brand that can cross category or gain share across category. so it also is a brand that has millennial appeal. and certainly really good mainstream appeal. so across from natural to mainstream. who is next? you have to look at other large brands, say umbrella brands. there aren't too many out there.

you can certainly look at a white wave with their silk brand, with the horizon brands. they would be -- they've shown to be cross category potential. when you look at boulder, boulder is still sort of in development some of their larger brands. maybe earth balance is cross category. but clearly, it's a -- there is no -- there is no logical next one. annie's was always the one that everybody pointed to being the -- being a singular brand at this company. >> and that's primarily because the stock has been under some pressure recently? >> well, yeah. but also because, you know, they -- it's hard to find a brand, a singular brand, not a portfolio of brands, but that have cross category appeal. and leverage. and the other thing that annie's has that others don't is annie's is what they call a light model

where the manufacturing is largely outsourced. a purchaser of annie's has the ability to improve margins perhaps by bringing manufacturing in house. >> all right, mitch, great to have you with us. thanks for phoning in. appreciate it. >> yep. >> mitch pinheiro. some of the related stocks, boulder brands is one we've had recently. that is sharply higher and hain celestial another one that is often mentioned as an acquirerer, but in this context could also be an acquiree. we have news alert on dave and busters. >> that's right, melissa. so dave and busters, the arcade restaurant bar that was once public is now planning to go public again. the company has filed the paperwork for an ipo. s-1 paperwork just. in it will be traded on the nasdaq right where you all are. the tickler be play. the lead underwriters include jeffreys, piper jaffray, raymond

james and all believe underwriters for this one. dave and busters filing paperwork to go public. it was taken private and then flirted with the idea of going public again, but didn't. now it does appear that's in the plans again. melissa, back to you. >> thank you, courtney reagan. dave and busters going public. the world needs it. >> probably would not be a big buyer. >> the environment, though, not very good for these sort of casual dining. >> but the environment is very, very good or the private equity funds. that's exactly what this underscores. you're looking at kkr and blackstone, and guys that really have an ideal opportunity to monetize. >> alibaba kick off the road showed the. the initial public offering is days away. kayla tausche is here with all the details. kayla, there is so many twitter pics today of the line going out the door of the wall door astoria. >> we can thank the intern will. you go up there and seattle. he did a fantastic job.

but ever single investor that i spoke to that came out of this event, tim seymour lewded. >> yep. >> said i've never seen anything like it. both the scale of the event. you had more than 800 investors packed into multiple ballrooms, overflow rooms. and also the scale of the company. they were reminded just how many corners of china's economy this touches. this is the company that ships 60% of all of china's packagings. they're getting into digital content. groceries. they're literally getting into everything. now the three takeaways from all the investors were these. one, the company does have international ambitions. it's unclear what those are. but they do. but this the meantime, as long as hine's economy is growing, alibaba can grow too. second, valuation. it may appear massive. but because its margins are so thick and because it has so much earnings growth, that this may actually be undervalued at this valuation that we've seen so far. and finally, there have been

some questions about corporate governance, how control is concentrated at the top. people said look, i'm invested in google. i'm invested in news corp. i'm invested in a lot of companies that have this dual class structure that have a lot of control at the top. so long as the founders jackma and jonathan lou, as long as they can execute, i don't care who has the control. that's not worrying me now. if you still doubt how bullish people are about alibaba, look at gentleman hoo today. up nearly 6% intra-day, because there is this expectation that maybe the price range will be bumped up a little bit. maybe yahoo will be able to monetize a little bit. they're selling fewer shares than they had expected, but at a higher valuation, makes you think there could be a further upside for yahoo down the road. >> yahoo is trading at a levels not seen since 2005 you. say you like yahoo. >> it's going to $50 a share. >> i'm convinced of it. i see is option activities. this story was playing out when it was 28 and $20 a share. no one wanted to embrace it

because they said there is no growth in this company. the longer people stare at alibaba, now that it's finally on the cusp of being an ipo and they have pulled back, people are more excited about it. >> there is no growth in this company. but there is no growth in this company. >> i will show you one thing. >> a million dollar investment in jerry yang. >> he gets the credit. >> of course. but there is no growth in this company. when they had this cash pile on their balance sheet, it will not trade. >> i will challenge you with this. if you take away what they've got in al a baba and yahoo japan and ipo, what is left, where would that ipo go? >> i don't think there is a real buyer for it. >> it would be 15 or $20. >> as my aunt mary says, that's not today's problem. >> whoa! >> hey. >> and the fact that this is a a company -- yahoo is not going to have to know what to do with $15 billion, they're going have to know what to do with $5 billion. which is still a significant problem. it's much less value that she could destroy if you're one of

dan's folks. >> of course, the perverse suggestion that keeps coming up time and again is maybe alibaba will turn around and buy yahoo. while that has been the running joke throughout this process, i want have one more graphic i want to show you guys. alibaba upsized the portion of new shares it will issue. that's largely because they wanted to have enough cash to be able to compete with the u.s. big tech giants here to go head to head on some of the acquisitions. like say what's app happened again. they have more cash a than facebook. they will have more cash than ebay after the ipo. still slightly less than amazon. far less than google and a an ale. but it's still an important notation that alibaba can be a big buyer of companies here in the u.s. now. >> the best thing going for yahoo right now could ultimately be it's -- you could be the competitor that sort of leaves it in the dust. >> potentially. >> yeah. >> but if alibaba owns you and they're trying to buy scale, why wouldn't they take out yahoo and they would finally be in a better position.

because yahoo owns significant assets in things they want to totally control. >> alibaba, if it bought yahoo, if that headline crossed, do you think it's more than 6 bucks a share? >> maybe. it's just something that gets talked about. alibaba will have so much cash once it goes public that it could do an acquisition of significant size in the u.s., and it likely wants to. >> it does make you think how can you reconcile the differential between amazon and alibaba even if you take a chinese discount, even if you don't like jackma. it's just incomprehensible that they could be as wildly dissimilarly valued as they are. >> alibaba is cheap. >> all right. we're going to leave it there. thanks for coming by. i'm sure this discussion will continue. time for pops and drops. drop for campbell soup, down 3%. pete? >> it did drop because they missed on the revenues. i think this is another opportunity in one of those

names that has been actually performing to the upside. i think the dip should be made. >> macy's? >> a great run recently. but friday night motorcycle sake may have put out a piece that was a little bit bearish in general and credit card data wasn't quite as good. i love this company. best in class. i am long. staying long. >> pop for go pro up 8%. >> an upgrade by an analyst who actually put the highest price target on the street. i think about 70 bucks. up more than 100%. you know, the next real event obviously is bog toby their guidance for the holiday selling season. it's also going to be a lockup expiration. this is one that probably has high short interest and probably has some air over it. but it's just not my cup of tea. >> a pop for yinglie green energy. >> it is a stock that has serious balance sheet problems. there is talk they're spinning off assets. not a stock i would buy on this move. >> still ahead on "fast," a buy

and a stock jumps. the analyst behind that call tells us why he thinks this stock has more room to run, next. plus, karen finerman uses the smart board for the first time ever. and then nathan is going to get -- find out what she has up her sleeve, next. special powers when she has the shroud? no. guys? it's the woven one the woven one. oh, oh that gives her invincibility. guys? no, no, no... the scarlet king is lord victor's son!! no don't. i told you! you guys are gonna be so surprised when you watch the finale!!! you're so lucky your car has wi-fi. yeah...i am. equinox from chevrolet... the first and only car company to bring built-in 4g lte wi-fi to cars, trucks and crossovers. for that moment, where right place meets right time. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading.

that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours. you just have to win 70% of your points at net. and keep unforced errors under 10%. on the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. data can help show you how to win, no matter what business you're in. today there's a new way to work. and it's made with ibm. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets.

what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day arfolk southern.

let's get to the call of the day. shares of fireeye popping after a ubs put a buy on the cybersecurity firm. brent hill is the analyst behind that call. brent, great to have you with us. >> thanks for having me. >> you know you believe that sentiment has become unduly bearish. i'm just wondering, perhaps there is a reason for that bearishness, given the amount of revenue growth deceleration that we're going to see going to calendar year '15-'16. when you point out we're going to 40% range down from 165% or so, in the previous year? >> yeah, absolutely. our upgrades predicated on the stock is under massive pressure this year. we think cyberlandscape is very robust, and we think fireeye is a leader. clearly with the revenue growth will decelerate given the acquisition which helped the

revenue growth this yee. so they'll have an unfair comp next year. but when you look what is going on, no one wants to be the ceo of target again. when you look at fireeye's perspective on the cyberlandscape, they are an absolute leader, there is no question. we spoke to numerous customers that are using the technology. and what they notice, this product works and the other cybersolutions aren't working a at the same level. so we think optically, the revenue deceleration is going to happen over time, just given a lot of large numbers. but when you look at what is ahead for fireeye, it's fairly robust environment for all the security vendors today. >> you mentioned your note also that the team is usually the first call once there is any sort of a breach. that's fantastic. you would think this would translate into business for fireeye. in terms of the stock, it has not. from an analyst's standpoint when you look at this ride that went up to 90 something dollars a share in march all the way

back down 67%, was this a stock that should never have gotten to 90 something dollars a share? is this a stock that had been griffin completely on sentiment and momentum in those days? >> yes, it was. we didn't have a buy on it. we've known the coming for a long time. we've followed the ceo for over a decade. dave dewalt has been an exceptional leader. he ran mcafee, intel. he has done an exceptional job of running companies. but the stock got into a lead it swerved to be at 25 times revenue there is no cybersecurity name that traded at a double-digit multiple. and we had not recommended it. so the stock came back in. i think when they did the acquisition, investors believed it was a technology company. it's a great consulting service, and they have technology. but i think investors mistook the company for something different. and i think it took time for that to settle in. we think that obviously is

settled into the stock. and as we said in the note, it's one of the first calls. they train the fbi. they train the u.s. department of defense and other federal government agencies on how to deal with breaches. so you can't find a more trusted resource to bring them in. and then their job is to effectively cross the fireeye portfolio. >> brent, we're going to leave it there thank you so much for come often we do appreciate it. brent thill of ubs. >> thank you. >> 17% upside so when he put this note out. and i'm glad that he mentioned the history of dave dewalt, ceo of fireeye. mcafee, that was sold. and guess what? now fireeye is being talked about as a potential takeout candidate. >> who could buy it? this is a $5 million market cap. they're expected to have $4 million in sales. >> they bought it for $7.6 billion with trailing $2 billion worth of sales. this would be the most egregious acquisition. i don't know who can buy them. to me, 17%, given the fact that this stock was, you know, it was 200% higher just a few months

ago, that could be their there. he may downgrade this thing like that if it gets the move and a has high short interest. treasure sec secretary at a speak saying meaningful legislation is needed to shut the door on inversion. karen, noticed something pretty interesting that could indicate whether companies really think the government will crack down on inversions. karen sat the smart board with the fine print. your maiden voyage on the smart board, karen. >> happy to be at the smart board. well, normally taxes obviously don't get that much interest like they did today. but the the community was waiting with baited breath to see what jack wu said. here is where he starts talking. and what does he say? if you listen to him very carefully, basically, he says nothing. we're going to do nothing. he throws out some well, we really need to look at this, that. the stock started trading up. you had spreads they're rogue and astrazeneca in the uk koko potential by be a target for

pfizer that has long been in the works. that also traded up, although the pound was down. so if you look, absolutely nothing. the stocks go up. and this is just shire pharmaceuticals. it was a very brief speech. he recap as again, once again, i just want the say nothing. and that was where the stocks ended up. so a very fascinating speech by jack lew. more government in action. >> basically inaction meaning that the deals will more likely happen. so good news for you guys. >> good news in that they just can't get it together to do any kind of legislation, you know, you also had chuck schumer weighing in. but the bottom line is nothing new came out today. >> all right, karen. good job, right, dan? >> yeah. >> all right. >> stay tuned, because i'm going to crush it on the smart board in the next. >> oh, big talk. apple event taking place in less than 24 hours. why players are betting apple could make a big move by the end

of the week. more "fast money" ahead. kid: do you pay him? dad: of course. kid: how much? dad: i don't know exactly. kid: what if you're not happy? does he have to pay you back? dad: nope. kid: why not? dad: it doesn't work that way. kid: why not? vo: are you asking enough questions about the way your wealth is managed? wealth management at charles schwab

with centurylink visionary cloud a brinfrastructure, and custom communications solutions, your business is more reliable, secure, and agile. but parallel parking isn't one you do a lof them.ings great. you're either too far from the curb. or too close to other cars... it's just a matter of time until you rip some guy's bumper off. so, here are your choices: take the bus. or get liberty mutual insurance.

for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. see car insurance in a whole new light. call liberty mutual insurance. $26 billion. that's how much traders expect apple's market cap will move tomorrow when the company is expected to unveil a slew of new progress, but in which

direction? dan is at the smart board with more. dan? >> if you're looking at the weekly options, the implied move over the course of the week between now and friday's close about $26 billion. about 4.25%. one thing was interesting today, leading up into tomorrow's highly anticipated event is that the options volume didn't run greater than the average a daily volume over the last month. it actually ran about 3/4 of the average. but there was one trade that really stuck out to me. and it with us in the september 12th, this friday weekly put. shortly after the open when the stock was 98.80, there was a buyer of 25,000 of the september 12 weekly 90 puts. they paid 25 cents for them. they break even down at $89.75. that's down about 9.5% from current levels. when you think about the implied move, that would be doubling it up. i just want the show if you go over and look at the chart of implied volatility, the price of options, you know, option traders have pushed the move up to somewhere around where options usually get, the prices of option before earnings.

when you look at the chart right here, we just talked than $90 level. that's right here that would be a massive, massive market cap move. almost $50 billion. so anticipation is very hot. i would actually say the bottom line i don't think it's going to move a whole heck of a lot. you may have a couple percent either way. i think a lot of what we know about the leaks is probably in the story. >> thanks for that, dan. catch more "options action" a every friday. check out the website, options action.cnbc.com. coming up next, your first move tomorrow. stay tuned. ♪ when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim

from td ameritrade. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. i make a lot of purchases foand i get ass. lot in return with ink plus from chase. like 50,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards, even cash back. and my rewards points won't expire. so you can make owning a business

even more rewarding. ink from chase. so you can. it's in this spirit that ingu u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya.

changing the way you think of retirement. they say the best offense is a great defense. so tonight i'm stocking up on the names that are helping the u.s. fight a growing terror threat. plus, the power back? i'll help you address your portfolio for success. "mad money" is next. time for the final trades. let's go around the horn. tim seymour? >> another way to play alibaba is wb. this is a stock alibaba owns 25%. better news on the competition. it's a stock you should look at. >> pete? >> new eyes on friday. nike is going a lot higher from here. giddyup. >> karen? >> here is one my kpleeg presented this morning. molina health care. we are long. >> dan nathan? >> i think every announcement at the apple event tomorrow is going to be negative for amazon. i would be a seller of amazon. >> really? you should would be short? >> i'm going to go through options like my friend pete over

there. >> giddyup. >> i'm melissa lee. thank you so much for watching. see you back here tomorrow at 5:00 for "fast money." meantime, do not go anywhere. "mad money" with jim cramer starts right now. ♪ my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer well scum to "mad money", other people want to make friends. my job is not to entertain you, but education you. call me a 1-, and you can always tweet me avmt