madness? was that a question? i'm sorry, there's a lot of voices in my head. >> i don't even know where to go with that. i said, did you fill out your bracket for march madness? >> i did, i did uva, baby. >> well, we have march madness here on "fast money." "fast money" madness. sweet 16. tonight will be the matchup, intel versus qualcomm. >> i saw this. sullivan was saying it's going to be facebook. i feel good about that pick. straight over to you guys. >> thanks, kel. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. our traders are here. alibaba getting a little boost after an analyst upgrade today. we have three more ipos that my deserve a second chance, coming up. and the ultimate stock competition. it starts today. round one of the "fast money" madness challenge. tonight, it is intel versus qualcomm. which one is a better buy? the trade is on the way in and so can you. so start casting your vote now on twitter. we start off with tomorrow's big

event that has all of wall street talking. the federal reserve decision out tomorrow, 2:00 p.m. many are expecting the fed to remove "patience" from its statement, paving the way for a rate hike later this year. how do you play the fed move? a new fund survey out today says that the fast money, and they actually used those words, the fast money, should take your profits and hedge global risk exposure after the fed decision. slow money opportunities are in unloved energy, emerging markets, and cash. so is that the best way to play the move? guy, what do you say? >> i don't know, that's pretty macro, that's pretty all over the map. i mean, i don't know, is the answer to that question. >> how are you playing it? >> the answer to that question is, i still think rates are headed lower. i think if the bond market wanted to raise rates, they would have already. i think the bond market is telling you that rates are headed lower, so the tlt continues to rally. i think pharmaceuticals still work, biotech continues to go higher. i think some of these bank stocks, i understand it's somewhat incongruous that the

banks will go higher, along with the yield curve going -- or rates going lower, but i think some of these banks work because i think the environment we're in lends itself to names like morgan stanley and goldman sachs. >> bank stocks, can they go higher if yields go lower, in your view? >> if that's a scenario, yields go lower and the whole market goes up, because people think, all right, the fed is on per mahold or forever patient, they could go up. aside from bank stocks, there are very few things or none that i own that are really dependent on whether the fed raises in june or september or not until '16. so i don't really play around it too much. and for the bank stocks, i think they're cheap here, almost in any scenario. i'm going to hold on to it. >> i agree with that. i didn't see the fund manager survey, although thing merrill lynch and michael hardin do a fantastic job. that's a great thing. they are saying two very different things. my guess is, what they're saying is they expect enough of a hawkish tone to tomorrow, that you're going to see people retrenching, that it will have an impact, it will signal that

the fed is not going to be deterred from having flexibility and doing what they need to do, even if everyone is saying, hey, don't topple the apple cart with a note today too that had people worried about the fed comparing it to 1937. what they're also saying, though, is things that are oversold, lie emerging markets and even the oil assets, first of all, those will get very hard on a hawkish fed statement. but they're saying there's value there. and that ultimately you'll start to see -- i think in emerging markets, especially in the currencies, i want to see the fed hike. that to me is the beginning of a healing process for emerging markets that's taken almost four years right now. it's not going to happen overnight, but it is a good place to start adding. i bought a little exxon today. i think it's a great place to be buying oil and integrated oils that to me are down through the december levels that they traded down to with oil, but i don't think brent is crude, and therefore, i think brent stays somewhere in this range. >> you mentioned oversold. how about overbought? i think some of the bank of america note is to take eu profits means, you know, we've seen a huge rally in european stocks, and also they're saying,

to trim their shorts, the dollar -- excuse me, the euro dollar shorts, trim that right now. just step aside for now. >> anything that's overextended, they want you to trim. but when you go into the fed meeting tomorrow, the market covers. they're nervous about "patient" coming out of it. so they're covering. if "patient" comes out, we give it all back. >> and "patient" coming out is consensus. >> it is, but michael pento's been really great on this. he's looking for the yield curve to be inverted. that would put all gains off the table. >> so would you say -- okay, all coming out. all what? all the gains from -- >> the equity market, the last couple of days. it's run up above the 50. i think you watch us trade maybe down 40 handles quickly. >> but i have the view that the dollar is so overbought the last few days we've had a small respite. until two days ago, we hadn't seen buying conditions in the dollar like that in 20 years, there were three times where we were this high on a relative

strength. >> not to jump on you, but go back. because i was in the same camp as you until i read this note on the inverted yield curve. why do you want to see them raise, where historically, you had that buffer between longer term note and the fed funds rate, much bigger than it is now. >> okay, i'm not sure -- >> so you have a 400 basis point buffer, usually. now you have a 200 basis point buffer. so you can get to that inverted yield curve quicker, rather than later. >> i'm not even commenting on that. i don't know that the yield curve couldn't invert, and i don't know that i want them to hike. what i'm saying is hike means clarity and a lot of things are waiting for that. but i think if you're in a place for the dollar, it's so overbought, 95 on the dxy, is where it can do and i think it probably will. >> catch the fed decision live tomorrow 2:00 p.m. eastern time followed by janet yellen's news conference on "power lunch" tomorrow. we have a market flash on oil inventories. dom chu has the details. >> so oil contracts are trading

mo actively right now and right now they're down almost 3%, 42.65 the last trade we're seeing. this after the american petroleum institute released its data for inventories, showing a crude build. an inventory build up 10.5 million barrels on average, street account analyst estimates are looking for a build of 3.1 million barrels. so a build that's more than three times the size of what analysts were looking for, hence the weakness in the crude oil trade. remember, oil was already at a six-year low going into this number. it seems like this could add to some of that momentum to the downside, guys. >> thanks a lot, dom. we're also getting another inventory number tomorrow. how are we setting up on the oil -- i mean, they were talking about the unloved energy stocks, maybe unloved for a reason. >> and now you're starting to see secondaries with some of these companies, in a cash flow buying. secondaries and stock prices have become crushed, it becomes this vacuous cycle. it's still telling yo uh that

crude oil wants to trade lower. we seem to have stabilized a couple weeks ago, but basically, we just stopped before making the next leg lower. that's been my contention all along. and i think we continue to move down. doesn't mean that oil stocks not cheap here, i just think they get cheaper. >> all right. now to an earnings alert here. shares of software maker oracle trading higher in extended trading, after the company delivered mixed third quarter results. oracle's revenue coming in softer than expected, getting hurt by a stronger dollar. but the company raised its quarterly dividend by 25%. dan ives follows oracle. great to have you with us. is the game in the after-hours session primarily or only because of a dividend hike? >> no win mean, there were white knuckles going into this release, and the cloud number was a step in the right direction, where the street was looking for, currency was the big headwind here and really oracle didn't need to do much. investors want to buy this theme into their strong fiscal 4q. they're looking at large cap enterprise tech. this is really the best of the bunch, if you look at hp,

microsoft, ibm earnings. you know, 6% ex-currency. so i would call this a step in the right direction. and it definitely seems like cloud and 12c are helping put fuel in the oracle tank. >> walk me through why everybody is getting all hyped up about cloud, when it's only 6% of revenue. if they get that cloud business, does that mean that they can sell through other services? >> that's the key. i mean, they are as well positioned to any of these big tech players in the data center. they have the full stack. so with larry ellison and we believe some potential acquisitions, they have of all of these, what i call the big uglies, the best chance to escape where the puck is going, be successful on cloud. we're not talking going to 10% growth, but can they get to mid-single digit growth, see operating margin expand, and the multiple really could expand here, you know, where you could see a stock going to the high 40s, you've seen a huge sentiment shift away from microsoft, toward oracle and large cap enterprise tech. they'll give guidance, which i would expect conservative, but

this is definitely one where the investors buy more into oracle over the coming months. >> dan, it's karen. let me ask you that growth. are you saying that's organic growth, or do you do it through acquisitions, because they've been fairly inquisitive in the past. >> that's really been the missing piece to the puzzle. so far, it's been organic. we believe if they're going to meet game-changing acquisition in big data, if you look at a name like tableau or potentially click or on cloud or cybersecurity, that's really been a key dna for oracle. and i think now with 12c, now's the opportunity for them to be aggressive on m&a, because large cap enterprise tech, it's really the sahara desert when it comes to growth and oracle has been the best of the bunch so far. >> all right. dan ives thank you so much. a sahara desert, the best of the bunch. not a ringing endorsement, but i think it's all right. >> i don't know. i think he said these guys are clearly best in class and i agree with that. until these guys disappoint, i think also what he was saying is

don't let the cloud business and the excitement mask the rest of their businesses, which is growing. the may comps get a lot easier for these guys. stock is trading in a range. i think you could probably own it around 41 bucks. i think the upside is limited. >> when you look at the other competitors in the space, think about cloud, think about cm and think about workday. oracle, although it's a multi-faceted way to play it, crm's chart looks better and it's stuck in that middle between the market caps. workday is the smallest, oracle tease t 's the biggest. hard to turn around oracle. >> what does the chart tell you? because we saw this after the december quarter woshlg beat on revenues for the first time in like three quarters on that quarter. it went up, and then it basically gave up most of its gains until now. >> it had a move from 39 up to 46. and then it's been trading around -- and it's in the low 40s. i think the quarter was good enough. they missed epps, they missed revenue. even margins were a little disappointing. but at 13 1/2, 14 times forward

earnings with the potential for growth in the space as dan just spoke about, that's why i think the stock is getting a bounce here. i think it does push up to those december highs that you just mentioned, 46 1/2. and? you recall, into december, this stock had been on a huge tear, probably trading at a 15-year or so high. for oracle, that's a big deal. i think it's good enough to get it back to the high 40s. >> mgm getting activist's attention today and the stock is surging more than 10%. we have the hedge fund manager who's calling for changes in a first on cnbc interview. that's next. gopro getting a big boost today after news broke that xbox users are downloading the gopro channel and watching a lot of gopro videos. is this the time to buy the stock? and alibaba getting an upgrade today after getting beat up this year. we have three other ipos that might deserve a second chance from investors, coming up on fast. [ male announcer ] approaching medicare eligibility?

don't put off checking out your medicare options until 65. now is a good time to get the ball rolling. medicare only covers about 80% of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans, insured by unitedhealthcare insurance company, come in. like all standardized medicare supplement insurance plans, they could help save you in out-of-pocket medical costs. taking informed steps really makes a difference later. that's what it means to go long™. call now and request this free decision guide and explore the range of aarp medicare supplement plans. all plans like these let you choose any doctor or hospital that accepts medicare patients. these are the only medicare supplement insurance plans endorsed by aarp. call now and request your free decision guide and start gathering the information you need to help you go long™. ♪

i'm almost done. [ male announcer ] now you can pay your bill... ♪ ...manage your appointments... [ dog barks ] ...and check your connection status... ♪ ...anytime, anywhere. ♪ [ dog growls ] ♪ oh. so you're protesting? ♪ okay. [ male announcer ] introducing xfinity my account. available on any device. big day gains for gopro. this after news that the gopro channel app topped 1 million downloads on the xbox video game system. viewers are watching an average of 25 minutes of exclusive gopro content during each viewing session. tim?

>> well, it's very interesting right now and i think they have a very loyal following and i think it's interesting stuff. but why do they have to post it on the gopro channel? why can't they post it on youtube? so for a stock that's so oversold, seeing a 2% stop, that makes me feel a little bit more nervous about owning the stock if i did, and i don't. i wouldn't short it here, because i think there's tremendous pressure on the company and i think there's a lot of short interest that could bounce. but i think it is going lower. and to me the valuation of 42 times is getting a lot better. it's a great hardware company, a great company, but a lot of competition. >> what's so interesting about this pop is it's built on this notion that it's going to turn into a media company. we're getting so excited about these views, although the company on the last earnings conference call said thaz a marketing tool and it is not meant to be revenue generating, yet here we are in this world where it's popping because of this. >> there's the underlying story in the fundamentals and then the excitement about it. it's just popping on maybe some more excitement as this becomes a little more concrete. but i agree with timmy in that

it needs more excitement on this same news to really, i think fund it. >> just a lame pop. and for a company that nomineed big pop. >> put that in lame pops of the day. a new segment on fast. next up, tesla elon musk speaking earlier today, making some very interesting comments about the future of driving as we know it. take a listen. >> to do autonomous driving, to a degree that's much safer than a person, is much easier than people think. in the distant future, i think it's probably going to be -- people may outlaw driving cars. because it's too dangerous. like, you can't have a person driving a two-ton death machine. >> a two-ton death machine, grasso. >> well, i agree with it. unfortunately, it hasn't saved the stock. the stock is off 30% from its highs a couple of months back. there's too much competition. they used to be the only cool car that was electric. now everyone -- the other choice used to be the prius. no one wanted to be caught in a

prius, right? this was the first one that was -- >> no, no! i mean, i'm just -- >> a lot of people have a prius. >> i had a visual of steve cruising around in a prius with the arm out the window. sunroof. >> you had a prius. >> sorry. >> now bmw has a ford, gm has one, everyone's coming out with more. i believe that autonomous cars are going to be the future, but not enough to save tesla right now. >> nice pop yesterday on this thursday announcement. no pop today. tried, failed, what happens on thursday? >> especially if this crude move to the downside continues, i think the move lower in the stock continues. i think tim feels this as well. that it's going to re-test levels we last saw in may, which was 175 to 180 and it has to hold there. if you look at the why it's traded since september, off series of lower highs and lower lows and i think that continues. >> shares of mgm resorts soaring more than 10% on news that they're proposing to convert them into a trust.

they think mgm is undervalued and converting it into a reit could increase mgm's value 70%. in february, i asked chairman and ceo of mgm if he is considering going through with this conversion. >> we're corporate finance folks at mgm. if we can find more value for our shareholders, we will do it. we've done it in the past. and i think it's a recognition of the fact that there's a lot of real estate embedded in these casino hotel companies, which is why a lot of companies are looking at, and we've been looking at it as well. you know, i've bought a lot of companies in my career and i've sold a lot of companies. that's easier. this is a little more complicated, which doesn't mean we won't do it or do parts of it, it just means it takes more time. >> let's bring in the investor at the front of this push, landon building founder and cio, jonathan litt. good to see you again. there is some urgency to this in that mgm pays a u.s. taxpayer this year. it should happen for the tax

benefits? >> i think there are a lot of things that are coming together right now that make it make a lot of sense. being a taxpayer makes it even more urgent. because in '16, '17, '18, as their earnings grow, they'll have more taxes they have to pay. >> and they have to deal with china assets or overseas assets, which could not be included in a reit, correct? >> no, china is what's caused the opportunity. you may recall, i was on las vegas sands three years ago, we thought macau was going to come back, it did, and now it's rolled over hard and it's dragged mgm down with it. and we would like to see mgm being -- china being a smaller part of this company. 85% of the ebitda comes from the united states. vegas is back for the first time since the financial crisis. so we think vegas being back, china being weak's creating the opportunity. they can pay down -- they have taxes coming up. they can pay down debt. lots of things going forward that suggest that this is the time for them to be looking at doing a reit. >> so just to play devil's advocate a little bit, this company is no stranger to capital markets and focusing on

creating shareholder value. why do you think they haven't done it until now and is now the time that maybe rates peak. >> first of all, they weren't a taxpayer. they used up their nols in 2014. so now they're going to be a taxpayer. there is an urgency to looking at it. we've seen lots of reconversions and that's usually why they're delayed. number two, they had a pile of debt coming out of the financial crisis, checking account be prepaid. it was onerous to pre-pay it. half their debt could be prepaid next year and this year. number three, vegas is back. and it's strong, and it's going to likely continue to be strong, which hasn't been the case. so it wasn't particularly inspiring to do anything here. so i think there's a lot of things that are coming together. we looked at it in 2012 when we looked at las vegas sands. we thought sands was the better bet. today we think mgm is the place to be. >> what's your take in the company right now and do you have the support of other large shareholders? >> we have 0.8% beneficial ownership of the shares. i believe that there are other investors that are interested in seeing this be converted to a reit as well, or figuring out how to unlock the value.

and i think jim is -- you know, jim and i have met several times this year and, i respect jim, i like jim, we were competitors years ago and he was on the sale side. and i think he's genuinely interested in doing what he had to do to maximize value for shareholders. >> so you think it happens in 2015? >> i think the election would be '16 in all likelihood, if they could get it together. >> joan, for coming by. what's your trade here? >> there's clearly something going on, and the question is, do they have to do a reit? they can delever and sell assets and it's a very interesting time to be looking at the company period, owning the stock and delivering on the reit, exciting, doesn't have to happen that way. >> that seems to me like a -- >> i think activism, i think the stock is in play, there is value there, delevering is very important to them. >> if the investors -- i looked at mgm too. mgm is the place that's garnered a lot of cash. las vegas sands, down 8% year-to-date. this one's up a percent or two, and wynn is down 11%. people looking for las vegas, as john said, las vegas is back,

this is the way you play mgm. >> it's amazing how the macau exposed casinos have been beaten up and analysts are piling on out and can go estimates even after the declines they've seen. >> look at the move in wynn over the last six or seven months. it's been unbelievable. but mgm traded 62 million shares today. typically shares trade. about a 9% short interest. you've got to believe a lot of those folks covered. but to tim and steve's point, a lot of optionalty here. your downside at this point, given what john just said, there is downside, but it's limited. i think the upside is pretty substantial. he nailed lvs. you got to know what he's talking about. >> it's interesting. i actually think, you know, macau is -- i don't -- i think this anti-corruption thing will pass. >> how about the how about the smoking ban. >> the smoking ban might be more difficult. but i really think it's -- >> but do you buy macau here? >> you're buying it for very cheap if you believe the other assets are -- >> coming up next, alibaba catch an upgrade today after a sharp sell-off, on the back of baba's

positive vote, we're taking a look at other recent ipos that might deserve a second shot at love from the street. and move over, apple, as consumers look to cut the cord, we're going behind the scenes with a tv veteran who's breaking into the streaming wars.

welcome back to "fast money." we're here to talk about a microcap. and i stress, microcap oil and gas exploration company called quick silver resources. the company has put its u.s. assets and subsidiaries into chapter 11 bankruptcy. now, what i want to point out is, this is a $7 million company, so it's not at all noticeable on the market radar, but what it does perhaps indicate is stress in the oil

and gas business, with regard to some of the smaller players here. in this case, this company, a $7 million gas oil e&p firm files for chapter 11 bankruptcy protection. now let's talk about c drill, a massive move lower. karen fineman has been in the name for quite some time if take a listen. >> we talked about c-drill a couple times in the past. we've bought some april calls, bought some more of the same april 12 calls. who knows where the bottom is. you know, i'd feel really dumb if this were it, within the last week or so, and i kind of didn't get in. so we've been -- i have definitely not picked the bottom. average down, got lower and lower, averaging up a little bit as well. you know, a name like seadrill is one we have and we've been in that for a couple of months. i would look to add to that. i'm long seadrill. i do think seadrill is really cheap here. i do like it. >> all right, all right, already.

>> uncle. >> i actually did sell my seadrill. >> now what? >> i did sell it. >> sold it? >> was that inspired by guy changing the ticker to put a "c" on seadrill? >> i want oil exposure, but i think of it as rearranging the deck chairs of the "titanic." i'm out of seadrill, went into more broad, diversified oil exposure. you know, i clearly was early, which is exactly the same as wrong, in this one. and, so i just diversified. the one other benefit to doing that is you get a short-term tax loss. that doesn't drive the trade, but i do think about those things. it was wrong, it was too early -- but i don't know when the bottom is going to be. i still don't know that. i want to have some exposure. i just want to do it a little more -- >> use less words. they're going to use this clip too. >> yeah, right. >> diversified. >> wrong. there we go.

sorry, bad. >> alibaba shares bopping today on an upgraded stifel one day before alibaba's $340 million share lockup expires. that's actually 430 million shares, i believe. the stock has had a rough ride, down more than 18% this year so far. are there other ipos that deserve a second chance? let's bring in paul hickey. you've been going through the rubble and have three names. >> so alibaba, everyone focuses on that. let's look at some names that most people haven't heard of, but probably should. they usually offer a better opportunity. the first is diplomat pharmacy. they're a specialty pharmacy and biotech is the hottest sector in new drugs. the thing with most of these treatments, it's not popping a pill, they're hard to administer or very expensive. so you need a company to administer the drugs and to track them. diplomat does that. they just reported an earnings triple play, they beat earnings, raised revenue and guidance. that's a positive. the next is fresh pet. everyone who has pets pampers them like their children these

days. and as we eat better, as humans eat better, the next logical extension is better food for their pets. >> that's ludicrous. sorry. >> i'm not a pet owner, so i would tend to agree with you, but if you talk to pet owners -- anyway. so they are the only pure play on this trend right now. and they have refrigerated sections in stores that they're installed in. and once they go in, they don't go out. no stores have taken them out once they go in, so they're high revenue driver for the store. and then, finally, the third one is paycom. they're an end-to-end hr provider for companies small and mid and even large companies. they do payroll, human resources employee training, and they help to manage that in an effective way. again, they reported an earnings triple play as well. and they're also part -- a member in our bespoke 50 list of attractive growth stocks. so they have good growth going forward and they're expanding. >> now, i'm looking at that screen, and i'm seeing, since the ipo, these are some py big gains. >> yes.

>> so what makes them buying opportunities now? i'm thinking, it's a double? i mean, the first diplomat is a double and you still want me to buy this? >> you look at the stock from a technical perspective, it's had -- it's consolidated a bit and it has seen a bounce and their earnings, again, like we said in the earnings, they administer -- earnings triple play, and they have guidance on the future. and when growth becomes scarce in the economy like we've seen, growth stocks trade at a premium. and that's why you've seen some of these stocks benefit here. >> but discuss so that the lockup on these, too. i mean, is there an element of this that, you know, i mean, fresh pets, $600 million market cap, but if the lockup is proportionately -- this could be a tiny amount of shares coming to market, but proportionately just as big of an impact, how do you analyze that and do you think it's just as big of a risk? >> with fresh pet, one thing you look at is -- that's the known, you know? it's a small float right now, over a third of the stock is sold short. so when you tend to see a lockup come in, shorts will have to cover their shares at some

point. >> paul, great to see you. >> thanks for having me. >> guy, you are the only one -- >> pet owner. i treat my dogs like i treat my kids, miserably. but diplomat, they just -- they did report -- well, ask them. ask both of them. dogs. diplomat, i think they had a $200 million secondary. i don't know if it's priced, but if it has not yet, i would be interested to see where is prices and how it works post that. apple has big plans to add its own tv streaming service. we're sitting down with one guest who's been on the front lines of the video streaming path. the founder of curiosity stream joins us live, next. ♪ ♪ (under loud music) this is the place.

♪ ♪ their beard salve is made from ♪ ♪ sustainable tea tree oil and kale... you, my friend, recognize when a trend has reached critical mass. yes, when others focus on one thing, you see what's coming next. you see opportunity. that's what a type e does. and so it begins.

with e*trade's investing insights center, you can spot trends before they become trendy. e*trade. opportunity is everywhere.

still ahead on "fast money," live from the nasdaq and new york city's times square, apple planning a streaming tv service, but there's someone else joining us the streaming space. he joins us on set coming up. and facebook getting into the payment space. some bullish bets on the stock made today. we'll break down the trade for you.

and the "fast money" madness challenge starts today. it is a battle of the chip stocks. intel versus qualcomm. which is the better buy right now? we'll debate it and you can vote now on twitter. so tweet us. let's start off with the streaming wars. apple's reportedly releasing a web tv service this fall and the founder is jumping into the space with his very own service called curiosity stream. the website focuses on factual content, is set to launch tomorrow. joining us in a first on cnbc interview with a sneak peek is the man himself, john hendrix. great to see you. >> great to be here. >> it is fascinating you and so many others will be in the streaming space. i want to get your take first on what apple could be doing that could launch this fall. how does that change the dynamics? you've seen it from both sides. >> it's an exciting time. and what apple, i think, is trying to exploit is this opportunity now with this, what i think of as the third evolution of tv, when you can watch what you want to watch when you have the time to watch it. and with apple, as you know,

they have $178 billion war chest, so they can certainly spend the money to acquire rights. and so what we're all after in the extreming world really are two targets. one, the cord nevers or the cord cutters, so of 18 million households here in the u.s. that don't have a cable or satellite connection, 10 million of those homes have a broadband connection. so for many of us, that looks like low-hanging fruit. many of those homes are light tv users. we all run into them at parties. we know they have the money to have multi-channel distribution, but they've stayed away. what apple is looking at with what's been called the skinny bundle, might be something that will appeal to that group. and then there's also just the people who want to supplement their video choices. and so, netflix, for example, has a good penetration within the cable and satellite households, which previous to netflix, had a steady diet of movies with showtime and hbo. >> so guys like you, who are offering this content,

streaming, and then also apple, you deviguys are like the thorn the sides of the cable operators, aren't you? >> well, in a way. but again, this is going to happen regardless of us. we can't stop this consumer demand to get more control of the video. and if they can watch it without commercials, they're going to go to that platform. so the streaming platform is here to stay. i think it will be a platform that's going to grow pretty dramatically over the next five to ten years. and it's -- i've seen this movie before, back in 1975, it's always driven by movie products, hbo established that platform to the home. and the rest of us looked at that and said, what's happening here? and it's delivering a dependable category of content, whether it's financial news or discover-type content that i did. so this third platform will be very similar. netflix kind of drove it with the theatrical product and then there was hulu with popular tv product, and i think you'll see then the categories of content

create menus. >> so tell us a little bit about curiosity stream, and is that an actual threat to -- i mean, you were at discovery until may of just last year. is this a threat to a discovery? how do we look at this in this landscape? >> well, i remain a very bullish shareholder of discovery, because of international growth as well as discovery owns all of its rights content and it can certainly exploit beyond cable. but for curiosity stream, we launch tomorrow at 6:00 a.m., you know, and the difference here is that rather than launching with one show, we have an entire catalog of content that's instantly available. >> how much do you spend -- >> well, we'll be spending in the tens of millions of dollars on content. so we have original content as well as acquisitions from great producers around the world, like the bbc and nhk. so it's factual content for the life-long curious. it's not for everybody, but we think it's for about 25% of the population, and that's a big market. >> all right. john, we're going to leave it there. thanks for coming by.

appreciate pit. >> thank you. >> john hendricks, curiosity stream, which launches tomorrow, by the way. so they spend tens of millions of dollars, versus netflix, which spends billions of dollars. a completely different order of magnitude. >> but netflix is still the bench marc that everybody aspires to. that said, the stock has been running into problem since it made that 480 high, i think it still pushes to 400. i think what all this shows is why disney is still -- if you lump disney in, why they're still best in class on any metric you want to use. people say they're expensive, they've been saying that for a while. if you're trying to find the best stock in the space, it's dis. >> should i be worried if i'm an investor in a cdc or a chatter. because basically the networks are getting an upper hand, because they're like, we can go to this appletv slimdown service, and you have people like me, i might cut my cord and not have the set-top box anymore. >> all you have to do is look at the performance in the name. when you look at the cvc, it's down 13% or thereabouts.

apple's up 15%. and even though netflix is running some technical difficulty, the stock is still up 22% year-to-date. so, it's playing out in the names. i would still be a short seller of cvc. >> time now for pops and drops. big movers of the day. got to drop from may search down 3%. >> macerich started the various poison pill and staggered board, things you want to do to protect yourself. this is far from over. i think it's interesting here. >> pop for sotheby's, up 2%. tim? >> yeah, yesterday, the new ceo announced an alliance with ebay to finally bring a digital channel out there to all their investors and it's a pretty interesting time to be bidding online. >> ha-ha. >> drop for dupont down 3%. guy? >> nelson ran a lot of noise. now you have these double tops going back to 96, i think at the $80 level, the stock has sold off since. bank of america and merrill lynch downgraded the name. it's going to get interesting,

but i think it makes a push down towards $70 even. >> pop for sony at 4%. >> everyone's familiar with the hack attack, the stock has recovered from that, it's up 4% year-to-date. they had the number one console, sony playstation 4, but i can't see a lot of catalysts going forward. if you're in the stock, you've reaped those benefits, i would sell it and lighten up. >> let's get a check on shares of adobe movinglower. jon fortt monitoring the conference call joins us now with the latest. >> hey, melissa. the news might not be as bad as the numbers looked right after the bell. here's how adobe has been describing things. yes, the subscriber number was a little bit lower than wall street had been looking for, but adobe said it was in line with expectations and they don't seem to be using currency as an excuse for other things. they say that fx has had no effect on subscriber adoption to their cloud sweep. they say that the mix has brought the average revenue per user down across the cloud.

people are adopting some of the lower priced offerings, but within their categories in the cloud, average revenue has been stable and they are forecasting higher subscriber growth in q2, q3, and q4 now. their guidance was a little weaker than wall street had expected, the mid-point of the guidance range is $1.15 billion. the street was looking for $1.175. so $1.15 versus $1.175. but adobe sounding optimistic on this call. kind of similar to how oracle was sounding. its stock is back up after-hours, though adobe is not, melissa. >> jon fortt, thanks for that. guy, a little soft and subgrowth for the past quarter, not great. and the valuation here is pretty high. this is an example of a company that may have been priced to perfection. >> to perfection. look, all-time highs. digital market up 14%, growing year over year, but down sequentially. i think it's a case where these guys are doing it right. jeffries had a note saying 65%

has already hedged out. but at this valuation. up next on "fast," let the madness begin. our "fast money" madness tou nn tournament starts off with intel and qualcomm. a heated debate as the traders debate which stocks should take off. and you can weigh in too. don't miss the action. plus, a special guest right of this break.

tonight we are kicking off our fast money madness tournament, pitting 16 tech names against each other, to find out which company is the overall favorite trade. throughout the competition, we'll have exclusive previews each day on cnbc.com/pro. for our first matchup, we have two chipmakers, intel and qualcomm, which have both struggled so far this year. the traders will each tell you which stock they prefer before the 30-second shot clock runs outs. and your vote counts too, so logon to twitter using #fastmoneymadness and tell us whether you perform qualcomm or intel. all right, so since it's our first matchup, we'll bring someone off the bench who's been on the sidelines this whole show, waiting in the wings, in

the shadows. "fast money's" dan nathan joining us here. >> clap for him! >> let's go! >> come on! >> yeah! >> give it up! >> all right. so let's start off. the first 30 seconds on the shot clock. tim, kick it off. >> intel. i mean, first look at the sell-off. we've already priced the in weaker pc numbers, priced in fx. it's a stock that's moved from 37 down to 31, pays a handsome div. in big cap tech, this is one of the more interesting ideas. i jump in here now. >> grasso? >> ditto. just kidding. it's got a better yield than qualcomm, but the internet of things, everyone thinks that qualcomm will be the ultimate winner there. i think intel is going to come on strong. obviously, the biggest revenue source for them is pcs. that's a problem for them. but technically, great entry spots. it's already closed that gap from that downdraft in october. i would be a buyer of intel. too many head winds in china for qualcomm, still even though they

settled. >> let's go to dan? >> i'm going to go with qualcomm right here. we know the news in intel. and what i frankly don't like about intel is how pc-centric it is. i think next month if this samsung galaxy 6 comes out and their snapdragon is in it, that will be a good thing. i like that 2.75% div. not a great entry. the stock does not act well after that announcement here. so i think if you get a weak market in the next couple weeks, pick it up somewhere in the mid- to high 60s. >> nice using the 30 seconds. >> karen? >> yes? intel. not surprisingly, the valuation is what attracted me most. it's not the cheapest it's ever been, but it is cheap. it has a great balance sheet, as you know, they're very aggressive. capital allocation, not that qualcomm isn't, but this is cheaper and the all know pc,

that's been a bad thing to be for a long time. i think that there's enough pessimism there to have it already priced in and so i'm going to go with intel right here. >> guy? >> righteous music we're playing. >> it's exciting. it really builds the suspense. >> i'm on the -- intel. >> what?! >> it's not because i'm falling in love with intel, i think it's the problems with qualcomm. you go back to july, you had that huge downdraft there 80 to 71, felt like the stock stabilized, then some band china news, the stock went from 70 down to 60. had some lousy quarters mixed in. to me, the $15 billion stock repurchase announcement was sort of this last-ditch effort to get the stock higher. it worked for a day. hasn't worked since, went from 72 to 75ish. now it's 69. they'd better knock the cover off the ball this quarter, otherwise, i think the stock is headed back down to 62. i don't think you'll get yourself in trouble with intel, here at 31. so by default, intc. >> four of you on intel and then there's lonely dan nathan there -- >> as usual.

>> with qualcomm. but he makes a couple of good points. >> i have said on this desk recently i think that in qualcomm, the news is also very much priced in. i mean, we know exactly what the china impact is. they've given us fresh guidance. we know that they settle. i think the royalties are something that people are much more realistic on. i think the buyback is really the key. because if you're playing defense right now, and maybe some kind of man-to-man as opposed to -- maybe guy is going zone defense on us right now. but qualcomm, i think with that buyback will be very defensive to me. we didn't even mention data center. i think that's very strong. intel far and away a better play. >> you mentioned valuation, qualcomm has not done well in the last ten years. they did tap the debt markets to fund this, but they don't need to. i think they might have been preempted. there maybe activists swirling around here. i don't know what you do. you got your buyback right now. but they have not been executing well, they've had a ton of head

winds, so i think this could be the first step. >> just to recap, you're on the desk for intel, one vote for qualcomm. and on twitter, you guys out there said qualcomm. but intel advances to the -- >> well, whoa, whoa, whoa. >> because it's two for qualcomm, dan, plus a viewer vote -- >> so all our viewers just count as one? is that what you're saying? >> basically. >> i didn't write the rules. it's just -- >> all right. that was almost an upset. >> i need my whistle tomorrow. tomorrow we'll jump into our big tech bracket with a contest between microsoft and cisco. log on to cnbc.com/pro for exclusive previews ahead of each matchup. next up on "fast money," facebook isn't just for birthday wishes and awkward pictures. they're announcing a new payment feature which allow friends to send each other money in the messenger app for free. dan will be back breaking down one big options trade that sees facebook soaring above its all-time highs. stay tuned.

♪ help join a continent with nearly 3 million rugged square miles with a single broadband connection. when emerson takes up the challenge, it's never been done before simply becomes, consider it solved. emerson. for you and your brother?house ♪ ♪

woooooah you're not just looking for a house. you're looking for a place for your life to happen. zillow facebook shares rally near 2% today after the company announced it will add a new feature to its messenger app, allowing users to make payments

to one another. dan nathan is at the smart board with more. >> options traders, they like the action here. call volumes, two times that of puts. there was one trade out in may expiration that caught my eye. a trader bought 6,000 of the may 88.50 calls, paying $1.13. that breaks even at $88.63, up 11%. look at this chart here. it's been there for six months. this trader is planning for a massive outbreak to the up side. >> your first call tomorrow when we come back. these days, the most important person in your business could be a software developer. so, how's the app coming? we've got to make something great. how's the app coming? we've got to do it fast. let's do this on bluemix. you can build apps with analytics, big data, even ibm watson. that could give us the edge.

let's do this on bluemix. it can provide code for you. we could be first to market. because being best is priority one. being first is priority one. there's a new way to work and it's made with ibm. tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so if you get a trade idea, schwab can help you take it on. tdd# 1-800-345-2550 we're getting a lot of questions tdd# 1-800-345-2550 about organic food stocks. tdd# 1-800-345-2550 [ male announcer ] sharpen your instincts

tdd# 1-800-345-2550 with in-depth analysis by schwab experts. tdd# 1-800-345-2550 and if you want to run your idea tdd# 1-800-345-2550 by a schwab trading specialist, tdd# 1-800-345-2550 our expertise is just a tap away. tdd# 1-800-345-2550 what's on your mind, lisa? tdd# 1-800-345-2550 i'd like to talk about a trade idea. tdd# 1-800-345-2550 let's hear it. tdd# 1-800-345-2550 [ male announcer ] see how schwab can help tdd# 1-800-345-2550 light a way forward. tdd# 1-800-345-2550 so you can make your move, wherever you are, tdd# 1-800-345-2550 and start working on your next big idea. tdd# 1-800-345-2550 ♪ tdd# 1-800-345-2550 open a schwab account and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 call 1-877-670-3357. tdd# 1-800-345-2550 or visit schwab.com/trading. tdd# 1-800-345-2550 schwab trading services. tdd# 1-800-345-2550 your go-to for trading know-how. tdd# 1-800-345-2550 ♪

final trade time. around the horn we go. tim? >> buy a little exxon, long-term, great place to get it. >> grasso? >> intel for about the 50 reasons mentioned before. >> karen? >> yeah, footlocker's had a huge run, but actually, i think finishline is much cheaper. shouldn't be this big of a divergence. like them both, but finishline. >> guy? >> i know he's in this tournament. they're playing north carolina. not today. just killing time. and jonathan litt, smart guy.

go back and listen to what he said three years ago about lbs, similar to mgm. mgm grand will get you done. >> i'm melissa lee. thanks so much for watching. see you back here tomorrow at 5:00. in the meantime, don't 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. m"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 @jimcramer. listen up, the trend, it is not your friend. because there is no trend. once again, we were unable to build upon yesterday's gains.