>> as the dow is rising to a new record that there's one sector that is getting smacked down for a second day. we'll tell you where you can find the buys in that sector. >> melissa, we have to hear about this. people are arguing is this a good thing for the consumer or a bad one the same way they're arguing about the drop in oil prices, i would love to hear it. >> thanks, kelly, have a great holiday. "fast money" starts right now. live from the nasdaq market site in new york city's time square. a historic day on wall street today. the dow closing above 18,000 for the first time ever. names like visa, goldman sachs, home depot leading the index from 17,000 to 18,000. today hedge fund giant david tepper made comparisons between 1999 and what 2015 could bring saying "for next year, you have to be aware of the possibility for some sort of overvaluation of the markets and they are fair value right now." now, remember in 1999 the s&p went to a 30 p/e, next year is

now like 16, not going to get that high. so here we are, record highs and we asked ask tonight, is there still value in this market. tim, what do you say? >> i think there's value in certain sectors. i'm not sure what he said, frankly. and far be it from me to disagree. >> well, you're the em guy, you can see some of the similarities setting up, 1999, 1998. >> and david tepper makes $400 million before he turns the lights on every year so he's a very successful guy. but when you look at the market, i think if you look at commodities it's a value trap. i think you have to be careful, very interesting valuations. if you look at retail there's a lot of cases where people are looking at the retail sector and saying consumption growth will be supercharged next year with oil where it is. i think journal where you want to look at valuations. i would rather own france and germany going into next year because those are multiples that are interesting. >> grasso? >> i think there has to be a lot of things that stay the same for this market to keep going higher. so we've seen every other sector, every other space. we've seen emerging markets fall

off. no one wants to invest in them now. they're not investable yet. no one wants to invest in, to tim's point, commodities right now. the only bet in town has been equities so if things stay exactly the same, yes, equities are the place to be. i don't think they'll stay exactly the same. little incremental moves off the bottom in these different spaces, rates moving slightly higher takes the tail wind out of equities. >> i think it's difficult to say the market overall is overvalued but in terms of sectors, overvalued and undervalued. what do you think? >> what's overvalued? i mean, maybe the transports have gotten over their skis a little bit. i think a lot of people pounding the airlines for good reasons so maybe that. but the genius of david tepper is he makes what is a difficult game and looks at it very similar policeally and all along he's said don't fight the fed." he's been spot on. i've been the type of person that tries to find the canary in the coal mine. maybe they don't exist right now. so i think genius of him is the simplicity. to tim's point, i'm not sure

what he said. >> it's going to be good and bad. >> i'm not sure what is going to happen. >> well, very well -- >> i don't remember 1999 very clearly because you did have these pockets of just extraordinary overvaluation and anything internet related. and it didn't even have the fundamental underpinnings that some of these internet-related stocks have like let's say facebook versus something that had millions of eyeballs but no revenue. that was a big metric at the time, eyeballs. and that space went nuts and anything that wasn't internet related, i looked at banks, insurance companies, all of that were trading at ridiculously low multiples. so there are some things, i do think banks are trading at cheap multiples to be something like a twitter, trading at a very expensive multiple. i remember 1999 as a good year. i hope we're in for a similar -- >> it was a great year for a lot of people. and 2000 was the year --

>> 2000 started. >> and that was something the market had as it typically does. today i think people are underestimating where the economy is. i think feds funds are telling you that rates are probably going to go higher. that may be the biggest issue for 2015. i'm probably in the minority. >> so you feel good about the markets going higher from this point on? >> i think you have a fantastic backdrop of above-trend growth, zero interest rates, two major dovish ecb and job back in japan -- excuse me, boj. and i think you have this oil thing and i think it's powerful for markets. >> and tim has been spot on in terms of the market. he's been steadfast in his bullish view. today maybe the bond market -- and i'm the nil the camp that rates go lower but maybe it's backing him up because the way the tlt was not good. it's one of those days where typically goes green, stays green. today it pushed towards positive and spent the rest of the day going lower. one of the worst performances in a while. >> the two-year yields touching highs not since since 2011.

let's look at the small caps. grasso is keeping an eye on the iwm. >> he should be up here talking about that but he's bloated today, i'll do it. [ laughter ] he's been talking about the levels so if you look at this top right here, you have your double top right here. is this the triple-stop there's no such thing as a triple-top so if you look at these levels, if you're a real technician where you want to go by the book like my friend gary berman, he'll say this is not a triple top because this is a higher high right here so i believe this number is 1 - 120-97 so let's put this here. over here we topped out at 120.44 and someone can tell me if i'm wrong today. so what you want to watch is these levels in the iwm. but if you feel the overall market is going to backtrack and retrace, this is a good spot for you to be shorting the market. and you just use this as your line in the sand. so this is going to be your line

in the sand. if we start to level off above here and break through there and this becomes support, instead of resistance, which is what it is right now, then you have to say, okay, i'm dead wrong. and the market is moving higher. i think what you're seeing is window dressing going into year end and you'll see that correction maybe january, mid-february. because that's where what we've been on track to do. every two two months or so the market gives back. talking about huge? no, maybe 5% to 7% to the down side but if you're thinking that way, then you look for116 to prove that you're right and that ultimately 103 you rehash. >> so basically the bottom line is that you could put a short on here for 5% to 7% down side if it goes through 120.97 or so that's when it breaks higher and you take that short off? >> exactly. don't fall in love with your position. >> exactly. one name sitting out, alibaba. around 11% since sings day on november 11. today's drop comes since alibaba aunderstand inned it has spent more than $160 million since

2013 to combat the sale of counterfeit goods. let's bring in mark mahaney. what do you make of this non-performance in singles day? >> i think you pointed out the peak in the stock that's singles day. that was the single biggest catalyst for the stock. the stock went up into that, reached a high and sold off since then. you also have small lockup expiration that occurred a week ago. the next big lockup expiration is what you will see in the middle of march. i think the context here that's key is generally with these internet iep east coa internet ipos, you get such extreme volatility in the first six months, we've seen 40% to 60% corrections post -- sorry, off their peaks. we had that peak of 120 so we've had a 20% correction. i don't view it as a big issue. we like the stock, we think 130 where s where we'll get to. >> how is this notion that ali ban baah be's big hope in terms

of the great luxury brands reaching an international market. is there something to be concerned about here? >> i don't think so. that's something that just started at the beginning of this year. 95% of the profits, the revenue, the billings of this company are going to come from t mall within china itself. i saw the journal article and heard the complaints in that article. i think one of the "so what's" that came out of that is alibaba set up very competitive marketplaces in china so if you want to get traction with consumers, you'll have to spend a lot if you're just starting from scratch. i think that's something of a sign of success for alibaba. i'm not concerned about the t mall slowness in building up. you have to give that thing a few years. >> mark, it's tim. we had an interesting conversation on flip cart which is india's amazon and alibaba rolled up in one. one of the things they're saying is greater mobile adoption. can you talk about this for alibaba and maybe this is the upside people are missing because ali pay is going very

strong? >> yes, it is. look, mobile is the single biggest defining issue across the internet, from social media names, advertising names, travel, and certainly in e-commerce. as far as we can tell just comparing how alibaba has done in mobile versus call it an ebay or amazon, alibaba is right there with the rest of them. they're doing very solid double-digit percentage of their revenue via mobile devices and getting decent transaction rates ormontization rates, particularly for the t mall business. i'm not sure they're ahead of the curve but they're there with the curve and it's part of the bullish story of alibaba over time. >> great to see you. thanks for your time. mark ma haney. we've had maniagists going into sinl l days and we've said is that going to be the news event and they've all said no. >> except the stock traded to your point. it traded up to 120 in reverse. >> it hasn't recovered since. that leads you to yahoo! which

has done nothing it's gone sideways to slightly lower since november. how do you trade it? i think you hope for a selloff into earnings and report the end of january and hope you can get it to 47. but right here at $50, much like amazon i think you're flip ago coin, unfortunately you're looking at that type of scenario for a lot of stocks. yahoo! at $50, wait for a pushdown to $47, buy it there. >> for be be, in or out? >> i'm out. i got out around $105, i think valuation, i don't need to hold it. i think it will get there. >> i'm still long, we paid maybe $108 for it. i like it right here. we talked about dan had a trade of doing a 110 calendar spread but i think right now looks good. you can go out to march and sell some january 110s against it. i'd like it for the long term. so singles day was the top in the short term but that's all right. i'll hang on to it. another sector sitting out

the rally today, biotech getting burned again on the heels of a potential price war over help c drugs. is this worth bayh or is the run over? that's coming up. move over apple. find out why gopro could be the must have gift in stock this holiday season.

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record high of 2014. >> she's got chops. >> chops? >> she can sing. >> shares of gopro topping 6% on a positive note claiming the gopro hero is a gift of choice this christmas. let's bring in the analysts behind that call, there's a bye rating on the stock, michael, good to see you. >> thanks for having me. >> what's this based on? >> you know, i think that the market just universally hates this thing and consumers universally love it. so we have a huge mismatch between consumer buying activity and what the street thinks is a very short-lived fad.

i first figured out that this was in high demand when my twin 14-year-old daughters asked for one for christmas, and that was back in june. i've asked all of their friends, they all want one. my wife said "i want one." i have yet to meet a female who posts on facebook or instagram who doesn't want one of these cameras. i think what the market is overlooking is that this thing is positioned as an active outdoor sports enthusiast nichy product but it's actually a mainstream camcorder, it's waterproof, largely shock proof, inexpensive, versatile, hooks up to the internet and you can post vine videos on instagram. my kids, please don't tell them, are getting one each and my wife already got one. >> so much for that. >> the jig is up. >> no, actually, they won't know. [ laughter ] >> they're home right now but i don't think they're watching. >> that happens a lot, yeah. >> would you be bullish on a name like gopro? that speaks volumes.

i like it as well but how do you wrap your head around -- the camera is cheap but stock isn't valuation wise. how do you get around valuation here close to the 50 times earnings? >> i have these guys selling about five million cameras this year. my model says 4.7. i think they're going to beat that and probably exceed five million this year. i think the addressable market for these guys the s tens of millions and i think they'll sell ten million cameras a year quickly. you may see this step up to six or seven million next year, nine or ten the next year. when you sell cameras at that kind of a level, you're talking about these guys making many dollars a share. if they're making three or four bucks, a share, it's not expensive and i think i'm being conservative when i talk about the size of the market. if you remember, back when the iphone was introduced we were seeing fewer than 100 million smart phones sold a year. that number is $1.4 billion. i can see gopro cameras addressing something that has 50

million units of demand. they won't get 100% market share but they'll get a substantial chunk because they have the original idea. >> i get that whole apple aspect to this stock. i haven't heard you mention like that social media angle to it. so i've looked at a stock, garmin, obviously not as sexy as, that up 15% yooer to date. it doesn't have the whole nuance that gopro has. but after you get this camera, apple was able to deliver on the product. is this going to be a hardware company that can't really follow through once you get the first product? >> i think that's an excellent point and one of the great selling points on garmin is the interface is really good and they're integrated. so you get the -- if you get the watch, the camera hooks on the handlebars, everything seamlessly works together. i think gopro has to work on user interface. the social media angle is probably overdone right now. what matters more on social media is not that they're going

to monetize it but that they get free marketing. and try to remember all those gopro ads you saw during "monday night football," because you didn't see any. we know what gopro is without any advertising and this's because of the social media angle. i think that's worth $500 million a year. i mean, i really think they get that kind of free advertising. ultimately they may be able to monetize like america's funniest home videos. you might see that. but that will take parents buying a gopro camera when they have a newborn child or get a new puppy. i think that's what you're seeing this christmas. >> michael, great to see you, thank you. >> thank you, merry christmas. >> all right. so we'll play would you rather. garmin or gopro. >> garmin. garmin always. but i'm in the gopro camp. although tim seymour had a terrible gopro injury. >> i'm surprised that alone didn't take sales down. we were out there on a super bowl slide. that was it right there. it just -- >> you took it like a man,

though, look at that. >> there was some blood. it was fantastic. >> did you answer? >> i liked garmin for a while. people have written that stock off for years now. it's fine. i was wrong about gopro. i thought it held 75, but clearly it didn't. >> the next corollary. gopro or apple. because theoretically if people are buying gopros, maybe it's less money in the wallet for other things like iphones or ipods or ipads or i-whatevers. >> i think you have to go with apple by a lot. so many reasons to go with apple. one, the valuation is vastly different. the -- their cash hoard, gopro is a great company. they're an upstart, though. apple has a very experienced management team. gopro will clearly face some sort of hiccup along the way. there's never been a company that hasn't had a hiccup. we've seen apple do that and recover. we don't know yet if gopro can do that. on a ruisk/reward basis, it's nt

close. >> i don't see where gopro hasn't already priced in a tremendous holiday season. there's a lot of opportunities, i think that's in the stock. interesting it wasn't talked about the media, steve brought that up. no one is pricing this in. that's good news. apple has a lot of room to run, still. >> apple. i still own apple. >> garmin/gopro. >> garmin. it fights to get back above its moving averages. coming up next, green mountain getting hit with its first major recall. what that means for the competition. and rain and wind hitting the east coast. a look at how spirit airlines is preparing for the possible holiday backups. we're joined by the ceo of spirit later on.

take a look at keurig green mountain. so well timed. keurig recalled about seven million of its mini plus coffee makers in the u.s. and 564,000 in canada due to a hazard in which water can overheat during brewing, spray out and burn consumers, too. >> it's a scary time but not really. i don't think this company is really about the single serve anymore. i think this is obviously an impact on perception at a time a couple days before christmas. they're trying to go with the hot cold with 2015. and if you look at what's going on with green mountain, there's people that think it's just about lbos, that will there will be a feeding frenzy with coke and pepsi. i think you stay in the name because the growth is fantastic and i would not be swayed by today's move. >> i agree with tim. look at the fourth quarter in

the middle of november, a solid quart. maybe you can get a little rich on valuation, if you look at the stock, every dip of this magnitude has been bought and it wasn't a big selloff in the first place. next up, microsoft, a solid rally for the soft as pacific crest says the surface pro 3 was surprisingly strong and could drive revenue to the up side pac crest is raising its revenue and sets a $58 price target. >> microsoft has benefited from old tech being new tech. it's up 29% year to date and when you do your channel checks, if you look at it, all schools, my children's schools are using the surface pro. so for me, i'm figuring out who's buying them. they have the box deal with the nfl and now you're looking at kids, younger kids, are looking at the microsoft -- i was almost going to do what what the nfl does, call it ipad. they're looking at the surface pro. so if ipad sales have been weak,

maybe there's an opportunity here. i think microsoft, the biggest head wind will be if large cap tech underperforms and you see that iwm if it breaks through people are bargain hunting and looking for midcap to small cap. they have a bigger issue with that. >> it seems like nobody priced anything into microsoft for the surface. nobody had any expectations. so anything to the upside is like wow. >> i think it's incredibly -- i think there's a lot of optionality to it. i don't think people think they're expecting anything. i think it's about xbox, about the server business, the enterprise business and it's also 18 times earning, it fits that valuation mold people want. >> next up, hertz selling more than 8 president clinton after the company announced it's increasing u.s. prices for all hertz and dollar car rentals based on growing fleet costs as hertz pursues $100 million in annual cost cuts with investment to improve its fleet with more 2015 models. what does this mean?

>> this is the holy grail of the consolidation in the car rental space. we used to have so many players, now we're basically down to three, you have hertz, avis and enterprise which is private. and years ago the consolidation down to these three would have been unthinkable yet here we are. and so the holy grail for all of them is rising prices so if you look at avis today, also up huge. this may be just a beginning of the synergies that everyone thought we could get in the space and so i like hertz. >> the reason why they're raising the prices, and you touched on this on our conference call, is because it costs for for them to hold a car. they can't get as much money when they're trying to exit the trade. >> that's right. that's right. they're long cars -- >> so what duds that mean for the used car market? >> you know what? they needed to give a reason. >> so you think it's a bunk reason? >> maybe there's something to it. they didn't give a sense of the magnitude of the price raise

versus the change in the book value or the sale value, the resale value at the car at the end of its life for hertz. they needed some cover. i don't know. i think it's a really good thing for hertz. >> maybe there's truth in the cover, they're having difficulty selling the cars at the end of the lease whereas before they didn't have as much difficulty. maybe that means the auto psych is peaking out, maybe it means stocks like gm and ford are not as z cheap as they appear to be. but hertz is probably still worth buying right here. >> coming up next, your last-minute holiday travel, check with the ceo of low cost carrier spirit airlines. plus are they planning on adding any new routes to cuba? we'll hear from the ceo after the break. later, karen finerman has a new short to play the recent slide in oil. she'll explain. nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading.

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still ahead on "fast money" oils bounce sending airline stocks ahead of the holiday weekend. spirit airlines is here to give us the view from the front lines and oil may be up but karen has a new way to play crude's recent drop, we have the fine print on her recent trade. and is biotech's bull run over?

we have the details on the selloff straight ahead. meantime, an up day for oil sending airlines into the red with shares of low-cost carrier spirit leading the way lower by 2%. but oil's big dropoff of late has helped propel spirit to a banner year. it's up more than 60% in 2014. joining us now is ben baldanza, the ceo of spirit airlines. great to see you again. >> good to see you. merry christmas. >> merry christmas to you. how is the holiday travel season shaping up and are there may m major delays because of this bad weather we're seeing on the east coast. >> a lot of bad weather on the east coast. our weather models right now are the weather models we use are suggesting it's going to taper off a bit and certainly over the extended holiday period we may see more storms but overall we're handling it pretty well. at spirit one of the things we do is we don't cancel our flights. on the rate basis we cancel less than others. sometimes we'll choose to delay rather than cancel so hopefully we can get bay with that

strategy. >> good luck to all those travelers out there. ben, i want to ask you about what has been a concern for investors in the airline sector. i think that's the reason why we've seen this falloff, this drop off in the stocks and in particular yours the increase in capacity, specifically for your airline you are planning or you have accelerated growth to about 19% from 15% in the third quarter and you're planning decent growth in 2015. you're scheduled to grow about 30%. the concern of course is that there's all this savings from low prices and that's the time where airlines had capacity and they have too much capacity and that back fires. can you address this? >> i sure can. in some ways you have to look at spirit and the whole industry. they're a little bit different things. 30% growth for us is a great growth year for us, but that's 15 airplanes. in the national airspace, that's not a lot of airplanes. so the reality is spirit's 30% growth isn't the same as if delta and american were growing 1% or 2%.

it's -- and so we're not the cause of overcapacity in the industry. there's clearly been some concern that lower fuel prices can drive maybe less rational behavior in terms of capacity, but we haven't seen that yet. and so we're going to have to see what fuel prices do through 2015. overall lower fuel prices are good for the industry as long as the industry can maintain what it's been doing for the last couple years, which is a good focus on strong shareholder returns. >> and you haven't dropped ticket prices, have you? >> our ticket prices are lower in some off peak periods in more higher demand periods price follows demand but we've been able to pass the fuel savings along to customers in off peek periods a little bit. begot a bit of a bah humbug from "consumer reports" for raising our bag fee by $2 at christmas time but we chose to do that, trays bag fee $2 instead of raising fares so when you compare a $2 bag fee against a

$30 fare increase that you might see, we think we're still a good deal. >> i want to ask you specifically about dallas. are you seeing much pricing pressure there as southwest increases capacity there? they have low introductory rates for instance that might be competitive or more competitive to yours? >> yeah, they're certainly pricing pressure going on in dallas. love field, has opened up with the sun setting of the wright amendment has created new longer haul opportunities out of dallas for southwest and they put those flights in and added capacity there and putting intro pricing in place to let people know you can now find longer haul places from love field. we expected that's going to rationalize over time. if you look at a city like chicago or houston, other mid-u.s. cities that have a major airport like an o'hare or an intercontinental with southwest at the secondary airport in a midway or a hobby, there's no reason long term dallas shouldn't look like those markets and those are very stable and we expect dallas will turn that way eventually, too.

>> before we let you go. what's your take on what's going on in cuba? are you looks at that a as a big market for you. >> we're watching that closely but it's petroleum dhoremature will happen because we have no clarity in terms what have the new approach will mean in terms of open and free air travel between the two countries. but spirit is a big carrier to the caribbean today. we expect when cuba is open it will take a share of the market that today maybe goes to other places like cancun or the dominican republic as people want to try that new location. but only 90 miles from south florida, it's certainly a place that spirit is very interested in. >> ben, thanks so much. happy holidays, happy new year to you. >> same to you, have a safe holiday. >> ben baldanza of spirit

airlines. >> they're probably going to do 22% in terms of revenues. it will go closer to 50% outpacing the industry. buy the stock on any pullback every time. every time with this company it's pulled back it's been a time to buy it. >> i think you'll see crude come in lower and break $50 to the down side. still a tail wind for a lot of these airlines. looks like southwest has outperformed, up 117% year to date. american airlines up 98% year to date. delta up 71%. if you look at ben's stock, he's actually underperformed those groups that i talked about so i would stay with one of the winners. i would go with southwest or delta and play in the middle of the road right there. >> i'm in the timmy camp. i know in the middle -- i think it was december 11 we talked about the flushout and the 50% correction from the october low and recent high. textbook, it's bounced off today but i'm more in the tim camp, this is a name you want to stay with. time for pops and drops. big movers of the day we got a

pop for walgreens up 3%. >> pop on earnings, they beat the street estimates. also getting the alliance boots deal done. the ceo will be stepping down but it could be turning over a whole new leaf for walgreens. >> big pop for chesapeake energy up 10%. >> we talked about this yesterday with southwest energy completing a transaction so from the chesapeake side you're very happy they sold these assets for close to $5 billion. people thought maybe the deal wouldn't go through at a time people are rebounding these assets. good for them. i don't know if you buy tomorrow. >> a drop for avon down 1%. >> bmo cut avon to underperform and put a price target of $7 against the $9.29 last sale. i'm not sure why anyone would be long on avon. i guess you could be susceptible toll a short covering spike in the name. >> sue lily down 7%. >> they should sell the stock down only the name alone. itg's research has been spot on.

there's a huge shortage, this stock doesn't feel like it wants to bounce any time soon. >> a pop, office drinking. >> huh? >> office drinking, bottom's up "mad men" fans. here's a report we can raise a glass to. researchers at the university of illinois in chicago found that moderate levels of alcohol -- >> defined by? >> -- consumption can spur creativity. the study found participants with a blood alcohol content just under .80% performed better at creative tasks than their sober counterparts. getting the juices flowing does have the down side. intoxicated subjects underperformed teetotallers when it came to memory tasks. >> good to have that after the airline segment. >> if you're in an ad agency, the stuff you're creating probably sounds good if you have whiskeys, guy. >> we used to have whiskey on this set all the time. >> well, we need to ask our audience a little. >> it steve grasso looks astoundingly like that cat from "mad men."

what's his name is. >> john haim. >> -- john hamm. >> we always hang out on the floor of the stock exchange well, one time. >> oil prices are stabilizing but down nearly 40% over the last three months. karen's got the fine print on a new short position she put on to play the energy selloff. karen, what is it? >> here's the thing. i've actually -- we've been dipping our toe adding to our energy and i want to find hedges that aren't as clear as just shorting oil. that's not what i want to do. so what i've don is i wanted to play the north dakota housing boom. and sort of wondering all right, let's say the rental boom has come to an end or at least a plateau. that was the theory behind this. the way i found to do it is investors real estate trust, iret. so the thing that is interesting to me, if we have a stock of -- chart of the stock over the last six months we can see that as oil was in the from $100 range,

we don't have that chart but trust me, the stock hasn't moved that much from when oil was at the hundred dollar range. so what's behind the thesis is that they have been sort of repositioning their portfolio, selling older properties and building a development portfolio of rental, multifamily properties right in the heart of energy country. . so they're basically -- they're selling off their other properties and really betting big on this shale boom? >> i'm not saying it's a bust, that they're betting to bust but they have been changing around the -- so as they sell these older properties, takes them a wile to build the new ones so they're not earning their pay outout can we do an overlay of where the energy activity is and where their biggest building projects are? they've gotten unlucky in the timing of their projects that n

that we had wet spring and summer so these projects have been delayed but the biggest ones are in williston and i think we have a map of two of their biggest projects. to see where they are, they are right next to the airport, which is the airport that prides itself as being in the heart of the shale i was not familiar with this airport before. but these properties are right around the sloulin airport, renaissance heights, i love the name, i don't know why. renaissance heights is five buildings. it's a very big complex, a $62 million project for them which is very big. only three of the buildings are built so far. they're going to be starting the fourth leasing right now the fourth one will be starting to lease up. i've got to think that maybe the rental weakness hasn't started yet because most are for a year or possibly two years but i've got think that we don't have a lot of risk that rental prices

there will skyrocket and they will be able to pay vastly bigger dividends. >> the bigger concern is that when the leases come off in six month -- >> exactly. and it's not just these guys are developing, it's that everybody else has been doing it, too. so we're in a commodity-like market for one bedrooms, two bedrooms. i can't help that market has to go down. >> this company, i'm just looking at their chart which was the boom, it's down small in a six-month basis before these announcements that we got out of opec and before people thought they would be pulling back production. >> it's not that well followed. although it's a billion dollar company it has a 6% yield. they had one large non-performer, they had a number of properties that were eight or nine properties that they are underwater on. they wrote it down. that was a big hick up. it was not the end for them at

all. but it was sort of a black eye for them a little bit. and to me the building, the development part is the most interesting. >> the crux of it is not that this is a stock that boomed necessarily because of the -- that was an underlying -- that's not why the stock is moving. their kwleeld may not pay out given the oversupply. >> that's what i think will develop and they didn't have so much exposure to except they bought at the high. >> got it. still ahead, the biotech trade getting hit hard today with both ibb and xbi falling more than 4%. does the express scripts deal mean it could be in jeopardy. we're taking a deeper dive. that's next. you can bring back a lot of things from a trip around the world. but you can't always bring back customer data. because many customers don't like it when their data moves around. can i go now?

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the dow closing above 18,000 for the first time ever but one sector is sitting out the rally, shares of the i shares nasdaq, bio tech plunging almost 5% today, traders citing concerns about pricing pressure on specialty drugs in the back of express scripts move on hepatitis-c treatment. cnbc's meg terrell is breaking down the move for us. meg, there's a vacuum of

information because analysts have come out saying they don't have any idea what kind of discount is being given in order to secure this volume. >> it's just a lot of fear right now that this could be bigger but what folks are saying is if you know the industry well, this isn't new at all. but to recap what happened yesterday is that express scripts is saying it's going to cover the newly approved hepatitis-c drug on its largest formulary and exclude drugs from gilead and johnson & johnson. that hit gilead stock really hard yesterday. the nasdaq, the biotech inwas down a little bit. we're seeing it down a lot more today. we're hearing a couple things are at play. someone that there's fear other payers like cbs care mark could pile on and do the same thing, excluding gilead so people are worried it could get worse for fill with yad. there's also fear it will spread into other therapeutic areas, so not just hepatitis-c but other areas which are multiple drugs in the same class. people keep bringing up the new class of cholesterol drugs. those are about to come to

market from amgen and the question is there could be pricing wars. it's been a record year for biotech and there's profit taking at the end of the year so these are converging into fear today. we saw an interesting investor survey come out from mark shone balm today, he showed really cool data and we made graphs of those. he pulled about 140 investors on their fear over drug pricing sustainability. on a scale from one to six, six being terrified, most people feel about three to four on how terrified they are. >> this is done after the express scripts -- >> that just came out today. he sent these datas out today about which companies are most at risk for this pricing pressure. gilead is at the top of that but others people point out are biogen which is in ms and folks say maybe that is misplaced because all multiple sclerosis drugs are not the same. they've gottor great stuff in the pipeline. amgen and regeneral ron are also

high on that list. interesting, he also asked how optimistic folks are that biotech will outperform the s&p 500. more than half think it will still will and gilead is still their top pick for next year. so it's interesting to see how people are optimistic. a lot of people are saying this is a great buying opportunity. >> you sold today, why? >> we sold some. ibb and xbi both. we've been in this trade a long, long time. it's been a great trade for us. you like to sell it on top, we're never able to pick the top but it made us think, all right, if we are in a new environment here we have to take some money off the table. >> what happened to gilead? what happens with gilead? >> karen made a great point yesterday that when pricing is in focus it's never a one-day event. i thought gilead would reverse today, open down, reverse. it actually opened on the highs of the day, went lower, did bounce. i think the stock is dirt cheap. keep in mind, that abvi is like

five or six pills a day. gilead is one. in medicine you have to be compliance. trust me, it's hard you have no play one let alone five. coming up, the trade you need to hear after the break. .

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some traders were hit big. mike is in austin with the action. >> trading almost four times the daily average was kkr. they've been getting a lot of negative press. they announced another energy investment today but i think people should look at the fact that this stock is incredibly cheap, trading at less than nine times the next 12-month earnings as energy prices collapse, that only spells better investment opportunities for opportunistic investors like kkr. so this is probably a good play. they're making a bet this can go up more than 20% in 2015. >> thanks for that, mike. for more options action, check

out our live show that happens 5:30 p.m. eastern time on cnbc on friday. meantime, we got some time so we'll handle some tweets. you tweet it, we trade it. let's get to them right now. first up, grasso, why are you laughing? i haven't even given you a tweet yet. would you agree yahoo! should buy twitter or yelp. >> i think yahoo! will probably get taken out itself by what's going around there. yelp i'm not sure and i think twitter should be taken out bying into. >> google should buy twitter and yahoo gets taken out by woman? >> alibaba. >> guy, buy or sell lockheed martin. >> all time high today reverse close lower not a big deal. eight times forward earnings more expensive than boeing but it's a time we've talked about for some time. the defense stocks if you look have done really, really well. if you look at defense spending it's improving, not declining so although i think the stock might be richer, i still think you own lmt. what do you think? oh, you're not allowed to

answer. >> i don't think about that that way. [ laughter ] >> confident. >> what's a word for that? >> certainty. >> i'm going to go to break. we'll be right back. stay tuned.

take a look at the nasdaq closing in the red while the s&p clocked in another record. the dow closed above 18,000. biotech is weighing on the nasdaq 1200. time for the final trade, the last final trade before christmas. tim seymour? >> a big merry christmas to everybody. sell exxon here. it's up 7.4% in the last week, it's trading above where it was on thanksgiving the day before oil opec did not cut. >> steve? >> best buy flat year to date but that doesn't tell the story. it's up 39% from the october selloff against the backdrop of the s&p being up 14%ish. best buy will be one of the sweet stories of 2015. >> kaurn? >> google has not participated at all. bounced back a little bit in the last couple weeks. i like it here still. doesn't matter if you buy goog

or gl, buy one of them. >> i'll take the other side. son corps has bounced. i think the bounce continue. >> i'm melissa lee, thanks for watching, merry christmas. see sflu find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money". welcome to cramerica. other people want to make friends. i'm just trying to make you a little money. my job is not just to entertain you, but to educate and teach you, so call me at 1-800-743-cnbc or tweet me @jim cramer. typically these big government statisticed, you know what, they don't mean anything to me.