solar edge, a maker of inverters for the solar industry. that finished the day higher by 15%. we have an exclusive with the ceo coming up. >> 15%, all right. straight over to you guys. >> thanks. "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. here's what's coming up tonight, downgrading tesla. a major move from outperform to underperform. we have the man behind that move coming up. and solar edge popping 15% on its first day of trade. we'll talk to the ceo in a cnbc exclusive. here's the one chart that really caught our eye today. sandisk closing down 18% after cutting its revenue outlook. the semiconductor index, which got whacked yesterday, closing down more than 1% space. dan nathan, should we be worried? >> you should be. this is how it happens. when you look at the pc supply chain and the smartphone supply chain, we've seen a weakening for months, almost for quarters in a way.

and when you throw on the strength of the dollars, we know a lot of their sales come from overseas. it's really been a very difficult combination. and i'll take it a step further. it's microsoft, right? it's all of these guys who are feeding into this supply chain. and then the oems, the original equipment manufacturers. we've seen horrible data or numbers out of hewlett and then the storage providers, so if you look at the pc supply chain, it looks really bad. what does that mean for the broader market? it's probably telling us that the consumer pc, we know that has weakened a bit, but let's talk about the enterprise. and that's really what's going to happen and move the needle here. if you're looking at it from the top to the bottom or the bottom to the top, it doesn't look great right now. so to me, i think there is potential that you see follow-throu follow-through. a lot of these stocks have come down to levels, i know people say at 30 bucks, it's cheap. but to me, you have to be worried. >> are you worried? >> yeah, all these stock s probably should have bounced already. but whether it's ram or d ram, these are prices that people

feel like they're catching a falling knife, so where is the bottom? so there are some sell-side stocks that are constructive. d ram still in free fall. >> when i got up this morning and read the story about sandisk, i immediately went to microron, western dig, all those guys and i was shocked by the end of the day, they didn't really sell off along with sandisk, even though they sold off yesterday. >> they sold off yesterday, that was a gigantic, across the board, without any kind of sp specifici specificity. this is very specific. and if you look at the performance, it wiped out all of last year's gains. so i don't think you can extrapolate a disaster like this from everybody else. i actually think the other ones held in there pretty well, considering how badly that sector did yesterday. so i think micron might have found a floor around here. >> six or seven analysts, all of them basically said it was san dusk specific. they were startled by the severity of the miss, but all said it was a sandisk-specific

thing. it's down 18% on ten times normal volume. only trades 9 1/2, 10 times normal earnings. and i'm not saying go out and run and buy sandisk tomorrow, but the you look at the magnitude of this miss, it's going to get interesting really quick. i'm not surprised the other stocks held in there. qualcomm flushed out early, closed basically unchanged, as did intel and a couple of the other names. but sandisk is going to get pretty interesting pretty quickly. if you look at the price targets for a lot of the analysts out there, anywhere from 75 to 1 u bu bucks over here. >> dan, why are you mr. scaredy-cat over here? >> there's one behemoth in the entire market and it's apple and they're squeezing the heck out of every one of their suppliers is. when you think about disk drives and nan flash and microprocessors. so i think you have a real problem here. and the bigger issue i have is that the stocks, the semiconductor index was a massive outperformer last year, almost up 30% versus the s&p up

13%. and now you have that just falling apart. and so this is not the sort of destruction of leadership, of prior leadership, that you want to see in a raging bull mark. so to me, i think you have some of that leadership that is falling by the wayside and it could signal weaker -- >> let me just play devil's advocate for a second. micron, for example, 36 a couple of months ago. now it's 26 and change. do you think -- i think that down $10 or not quite 30% already reflects a lot of pessimism and a lot of the bears -- >> it does. but just like that stock overshot on the upside, because it was also $10 2 1/2 years ago and shot to $36. and when you see these commoditized sort of businesses, when they overshoot, they often overshoot to the downside. >> and microron's fall today, that's not overshooting to the downside? >> i think you're talking about s&p 3% from the all-time high. if you want to call a bottom in a stock that's down 20-some percent or something like that in a matter of months, have a

ball. but i think it has broader implications for the market. >> let's get to our chart of the day. grasso's over at the smartboard with the key levels inspect s&p to watch after the sell-off this week. >> let's look at a couple of these levels. right here, 20.68 is the 50-day moving average. we broke that one. so 20.58, which is where we closed right here, that's the level to watch. and it's more importantly the level to watch on a quarterly basis. right now we're overbought on a quarterly basis on a chart. this is a daily. so you have to go back to december of 2012 to see the last overbought on a quarterly basis. i'm sorry, to see the last time we had a down quarter. we weren't overbought. the two times previous to that that we were overbrought, were '07 and 2000. markets sold off 50% and around 45% on those two quarterly overbought status days. so you have to watch this level right here. that's the most important level in the s&p for the close of

business, the last day of the month in march, this is the one that will define whether we have a down quarter or not. >> so 2058 next week. >> in the cash, correct. >> guy adami, what do you think? >> i think steve's numbers are always very good, first of all. the other two things you have to look at, i think, the transports to me have sort of given up the ghosts a little bit. we had trouble 168 since october. bounced up against that level a number of times, failed. here we are in the low mid-150s, and the russell in my opinion, the iwm, needs to hold 121. we're close now. if you see the russell through 121 and continued weakness in the transports, the levels that steve talked about on the downside in the s&p are almost a foregone conclusion. >> are you sure of this market -- >> yeah, and i put a new short of the xlp, the consumer stable etf. it reminds me a lot of intel and microsoft, how investors crowded in them last year for their balance sheet, for their buybacks, for their dividend yields, and they got kind of expensive. at a market multiple, intel last year, at its highest, was expensive, to itself, okay? so the consumer staples actually remind me of that.

and we've already seen procter & gamble down 10% on the year, we've seen some of the other names that are in that xlp also act very weak. so to me, i actually think you want to avoid these crowded, defensive -- or perceived defensive names, because i think they have the potential to go much lower. i think there's defensive money hiding in them. >> do these names look overvalid? >> i actually agree with them. >> wow. >> i know. i don't want to, but in fact, i do. i think we've seen the f/x, you know, hit that the p&gs of the world are going to take. and i think they're expensive and i don't think of them as a place to hide. however, we sold some s&p puts today. the volatility index has gone up a fair amount, not that it can't go higher, it can. but it seems like we've seen a sell-off the last few days and i wouldn't be surprised to see a little rally into quarter end. >> let's talk oil. wti getting another big boost today, now up 10% since monday as fighting in yemen escalates. saudi arabia launching air

strikes in the last 24 hours against the houthi militants in yemen and will reportedly lead a ground operation with egypt. joining us now to unpack some of the details about the complex battle is riva bhalla, the vice president of global analysis at global intelligence and advisory form, stratfor. great to have you us with us. in your view, what is the worst-case scenario that could happen here? >> well, there's little direct impact to the oil markets here. yemen is a pretty negligible oil player to begin with. i think where a lot of the speculation and fear is coming from is, one, when we look at the naval blockade being led by saudi-led forces, there's a question of, will those blockade operations actually disrupt the frequent 4 million barrels per day of oil that transits the strait. and i think the answer to that is, there's very little chance of disruption there. the actual military operations

are not going to disrupt. there is some potential for harassment attacks, but i think the capabilitieses there for the houthis to do any real damage to any ships going through the straight is very little. i think, really, the big thing to focus on is the impact to the saudi kingdom itself. there isn't really much of a conventional play here. you're not going to see a big, you know, proxy battle between iran and saudi arabia in yemen, where the two are coming to blows there directly. but, i think saudi is very legitimately concerned about two things. one is unconventional attacks along the border. so cross-border attacks by houthi guerillas. and two, the persistent jihadist threat. so when you have saudi forces leading a coalition, and air strikes in yemen, obviously, there's a risk of collateral damage. and that's prime fodder for the number of jihadists who are in the region and who have their eyes on the saudi kingdom. >> riee reva, why would we not

direct conflict between the two? we know it's escalated because of the iran possible deal with america now, nuclear deal. so isn't there a sense of urgency in that whole region? don't you think the clock has sped up dramatically as to what confrontations are really on the table and what are off the table? >> yeah, but it's greatly nuanced, right? so saudi arabia is obviously very concerned at the idea of the u.s. and iran having this developing agreement, and so that's why you see saudi taking such an assertive role in the region. but when it comes to yemen in particular, the gulf states have a very big strategic advantage. that's right on the gulf and whereas the saudis are operating right in their neighborhood, the iranians really have to project significant military power to do something there. we're not going to see some sort of naval conflict break out between these two forces. iran is heavily constrained when we talk about conventional military capables there. i think from the iranian point of view, what they wanted to do was poke the saudis and poke they did. the saudis are now trying to

basically bite that finger off by trying to cut off the houthi supply lines in making sure that the houthis can't consolidate control in yemen. but ultimately, that's a proxy conflict. that's not a direct conflict between these two focuses. >> reva, going to leave it there. thank you for your analysis. reva bhalla of stratfor. so reva says it's unlikely there will be any disruption. but the market is trading as if there could be. what do you do? >> the market is trading as if the shorts -- you can't be sure with geopolitical risk out there. if you enjoy this, you're almost forced to cut profits to cover your shorts. but you had the oil volatility index up over 5% today, and the xle, which should have been up significantly today, i think, was unchanged and lower most of the day. so those two things say to me, once the short covering abates, we have further room on the downside. >> and i would add that this is the worst-possible scenario if you're talking about corporate profits here in america. if oil were to go up for some sort of disruption issue, not

because of a demand issue, then, you know, you have people who are now scrambling to hedge at these lower prices, they're giving guidance based on prices here. you don't really want to see this sort of volatility up and down. you really want to see it settle in, like it was doing before it just had this big bounce. >> karen? >> i agree. i thought we would see more strength than we did. the oih was basically unchanged on the day, after two big days of oil rallies. that was a little bit disconcerting. it feels like it's something very much different. >> google getting a new cfo and the company just releasing her new pay package. hear the details after this break. and shaking up the news business. vice announcing a daily newscast with hbo. and it said analyst who downgraded tesla from outperform to underperform. find out why he had a change of heart, coming up. you can find a new frontier. there's nothing stopping you, and a lot helping you.

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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. welcome back to "fast money." we have a news alert here on google. it has just disclosed what it's going to pay its incoming cfo, ruth porat. she will make a base salary of $5 million. that's modest compared to other

cfos. but google will pay ruth a special one-time signing bonus of $5 million. it could be returned if ruth terminates her employment with google before the one-year anniversary of her start date. google has agreed to make the following stock grants to porat. $25 million in stock and it will be given in the first calendar month following the month of which she was hired. also, a $40 million biannual grant starting to be paid in 2016, and that will vest on a quarterly basis between the years 2016 and 2019. google will also assist ruth porat with any relocation expenses and will be eligible to participate in a compensation program generally available to google's executive officers. so $650,000 base salary, $5 million signing bonus, and another $65 million in stock grants, vesting in the next few quarters through the year, about 2019, it looks like, melissa. >> dom chu, thanks a lot.

karen, finer, what do you make of this package? >> it sounds like big numbers, but it's not, i think, for a name like her. and we don't know what she might have had to walk away from morgan stanley, if she had a lot of stock there that didn't vest, we don't know. i hope she deserves it. and they'll pay for a van for her to move her stuff out. >> u-haul. hbo standing its relationship with vice media kicking off our top trade, ahead of the launch of its new streaming service. they'll air a half-hour newscast and it will be the first daily news program hbo has ever aired. vice chairman ceo shane smith spoke to us earlier. >> i think they're doing exactly the right thing. they're moving into digital and ott as we're moving into terrestrial and features, at the same time. and i think they're going to learn a lot from us about our demo and we're learning a lot from them about what to do on the terrestrial side. >> dan nathan? >> it's a brilliant deal.

when you think about who hbo is now going to be competing with, it's going to be netflix and all these things established on the web and that is shane smith's demographic. that is vice's demographic. so what they're doing now, they're going to make something hopefully a lot of people will subscribe to this $15 a month service and maybe get rid of some of the other services they were doing on demand. for vice, it's a no-brainer, for expanding their content, and for hbo, they need to draw in a different demographic or subscribe on a monthly basis. >> we talk a lot about the potential bubble in the private space. take a look at what vice is valued at right now, $2.5 billion, give or take. take a look at lionsgate. amc, $5.3. netflix, $25.25 billion. is this right, guy? >> i am not an actuary. does it look right? >> to see lionsgate -- >> does it look right, i think you make an excellent point.

what stands out on that list? netflix. they said they would upgrade the stock if it got down to the low 300s. that's a pretty significant move. it wound up to be the case. i think it's going to trade 400. i think it's going to trade 400. and i think for a trade, that becomes very interesting. will we see the low 300s? i don't know. i think we will see 400. i think it can get long against that. >> when you talk about content, talk about the one that's been performing, disney has been performing, up 11% year-to-date. we looked at this stock at 85, at 90, at 95, continue to say buy it. it's at 105 right now. if you're going to get in at this level, i would use a $100 stop to the downside to limit losses. >> breaking news here. i want to get back to dom chu. news on yahoo!. >> so yahoo! now has said that in a regulatory filing, it has approved a new $2 billion additional share repurchase program, so, again, yahoo! board of directors has approved an additional share repurchase program of $2 billion.

that's according to a regulatory filing with the s.e.c. so, right now, it looks like those shares, up about maybe two-thirds of 1%, about $200,000 shares of volume, but interesting news on the share for purchase front. >> thanks a lot, dom chu. you like this? >> i like buybacks and i think some investors are afraid of acquisitions that aren't so great here, so buyback would probably be preferable. >> it shortens the rope of which marissa could hang herself with. >> and they're still very tied to alibaba, they won't have this tax spin until the second half of the year. so they need to figure out how to keep this stock going and create some value for the core. and that is the biggest worry, that they take this cash and go and make bad acquisitions. that's been the biggest knock against the ceo here. yeah, i think you want to see them buy back shares right now. >> let's talk tesla. the stock falling about 6% since yesterday. clsa downgraded the stock from an outperform to an underperform.

pointing to near-term earnings risk from lower margins from the new model-x. joining us is andrew fung. >> thanks for having me. >> it seems like much of this call focuses on the lower margins for the model-x launch. we've heard a lot of analysts talk about this, and you said you've discussed this with the manager, beyond what they've said on the fourth quarter conference call, which is when we got that red flag, and your work on how the model-s margins rolled out when it was first launched. what did management tell you specifically and what was your thinking on the model-s and how that could, you know, educate you in terms of how the model-x margins could be. >> sure. i think some of the misconceptions really is that the -- while the model-x is a derivative of the model-s sedan, you know, there are other complexities in the new design and so, initial margins may not be as strong as what investors are anticipating. if you look at initial margins when tesla launched the model-s in 2012, they were actually in the single digits for the first

soef several quarter. and consensus is flat through 2015. so we expect model-x margins to be similarly dilutive in the first few quarters and therefore margins will decline sequentially in the back half of this year. >> and you took down your margins for 2015 and 2016. 2015 moves to 24.5, and that's compared to consensus, which is 27.5. so there's quite a big discrepancy there. you expect, then, the stock to be basically trade roughly into earnings as we get more color on what the actual impact on gross margins is going to be? >> yeah, i think, i mean, looking into the first quarter, having missed the previous two quarters, tesla's going to do everything they can to hit the volume target, at the very least. there's going to be a lot of discussion on margin, i assume. but ultimately, i think the market will continue to debate whether they can grow profitably, and it will take quite a few quarters to get a clear picture on that. you know, when the model-x actually launches in the second half of this year, that's when

we'll get a better sense of where the margins will be. >> andrew, it's karen. as tesla voyeur only. let me ask you, which metric is more important, the number of cars sold or a beat there versus skinnier margins? which would you -- which weighs more? >> i mean, i think long-term, volume is clearly an important metric to look at. in the memory, given, you know, more concerns around whether or not the company needs to raise additional capital and concerns on whether they can actually grow profitably, this is something that the market is increasingly looking at, just to get a sense of what the ultimate long-term opportunity is. and given that, we've given a bigger focus on that as we look at the stock performance for this year. >> andrew, going to leave it there. thanks for phoning in. do appreciate it. >> great, thank you. >> andrew fung. part of his call was the impact of fx, which has moved against tesla since that fourth quarter conference call. >> stock is off 35% from its high. and we've looked at a couple of things.

karen brings up a good point. what's more important, margins or the total sales? the problem, though, is that margins are going to shrink further, because there's a tremendous amount of competition that wasn't there before. they were the only cool guys on the block that built an electric car. now everyone is doing it. the tunnel, the ramp, everything, every other major car company is doing. china didn't work out for tesla, margins aren't working out. i would still stay clear. >> and they're not building the right car for the competition they have right now. they're still building a very high-end car, even as model-x will be a high-priced car. so until they go mass market, which is two years ago away, we really aren't going to know how that lower end competition is affecting them. the big issue, like you just mentioned, china. this is where they're going to sell those $100,000 or $120,000 cars and they don't seem to be selling them. i saw something in a report that february sales in china were down 45% month-over-month in january and we knew that was bad. so the sentiment is bad here. there seems to be no good news. and with margins shrinking and end markets -- i don't know where you go with it.

>> technically speaking, the stock doesn't trade well. where do we see it going -- >> you sound like me. if you start looking like me, we're going to have a problem. >> we'll have a huge problem, actually, if i did. >> since september, lower lows, lower highs. i've said it for a while. 220 has been support on the way down, resistance on the way up. i think it's going to tray the may low, which was 177. you're scaring me, by the way. >> 177. >> and then would you look like her? >> i hope not. still ahead, biotech stocks trying to stage a comeback today, but are the valuations just too crazy? we break down the numbers after this break. plus, late this hour, it is the next round of our "fast money" madness bracket. and this time, it is apple versus hewlett-packard. get ready to vote along with our traders on who you think you should move to the next rounded. more "fast money," straight ahead. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops,

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welcome back to "fast money." here's our earnings alert. gamestop, no fun for them. the video game retailer is down about 5% of reporting earnings of $2.50 a share, missing analysts' estimates. sales came in at $5 billion to top it all off, we have first quarter and full-year guidance that missed expectations. sticking with the consumer, restoration hardware also down about 5% in after-hours. the home goods and furnituringings retailer reported earnings of $1.02, which beat analyst estimates by a penny, but sales came that matched expectations. but it too offered guidance for the first quarter at disappointed. the silver lining is ceo gary friedman says most of the sales and earnings not recorded in the first quarter should be pushed forward into the second quarter, the current one this year. back over to you guys, melissa. >> thanks a lot, dom chu. >> i'm not surprised gamestop is

down, but i'm surprised gamestop is here. >> like, in existence. >> i would have thought this business would have been disintermediated a lot -- a long time ago, but it still hanging in there. >> with that said, though, is there a trade? >> here's the thing. the stock is actually up about 10%. in january, they had reiterated this current quarter guidance and they had missed and they had guided down. i don't think expectations were too high, but the stock had rallied. so amazon, cloud, all these services will kill them long-term. but the stock has 45% short interest. the shorts have it right right now. but to me, this is not one -- i do not think you trade it. i don't think you buy it down a couple. >> biotech seeing a little relief today after a three-day sell-off. briefly positive before any of the day's flats. is the sell-off over? time for some stock therapy. let's bring in meg terrell. we've seen this happen before. >> that's very true. and we had this really cool graphic we showed earlier in the day and i like it so much, i

want to show it again, if we can. which compares the first three months of 2014 with the first three months of 2015 for biotech and we see a very, very similar pattern. it looks like the run-up and drop-off this year was a little bit steeper, because the sell-off start earlier in the first quarter last year, but we've seen this before. and in previous sell-offs, the losing evacuates this year, we've seen a four-day losing streak that ended february 4th. that was tied to gilead forecasting bigger than expected discounts on its hepatitis "c" drugs. but last year you saw these sell-offs, and in the middle of the year, around janet yellkin's comments, we saw another sell-off. and toward the end of the year when express scripts came out, people started worry again. so often these events will lead to a few day sell-off in biotech. right now, there's no similar event that led to this. it could be the end of the first quarter, people starting to sell. but there's also increasing fear, because biotech has been going up for so long, people are

looking over their shoulder, saying, when does this end? after such a hot friday for the sector, people got a little spooked and said, maybe we're overheated here. so you did see, obviously, some selling off over the last few days. but if you look at analyst estimates for the largest names in the space, they still think these have 10 to 20% growth in their stock prices, if you look at the average of their price targets. so for gilead, 19% expected growth. sell gene, 17%. and for some of the smaller names, elexion, not that small, but 23% for them and juneau on last night, they said they think if the science works, they're undervalued. analysts expect they could even go up 22%. and that's a stock that's had a crazy run so far already. and so, you're seeing people still optimistic about the space. michaelee coming out with a note from rbc, saying this has three things that make him optimistic. one is m&a. people were like, that valuation is really, really large for half of a drug. but other deals like mps, this

is driving a lot of the interest in the sector. also seeing innovation. what we're seeing in alzheimer's and cystic fibrosis and gene therapy. this is going to continue drive optimism. and you're finding growth in biotech where maybe you can't find it in other sectors. there are people who think we're just too hot. >> i've got to ask you about a stock-specific story today. huge move in intercept. >> yeah. >> huge move. >> i'm bummed about that one, because i wanted to preview it tonight, then the data came out. this was a competitor to intercept, genfit. i used to think it was pronounced differently. but it's just genfit. it's tied to obesity and diabetes. there's nothing for it right now but it's potentially in 5 to 10% of americans, so a huge disease. so this is phase ii data. there is also of anticipation for this. and what genfit found, on the top line, the study failed. it didn't meet its primary end

point, basically because they saw a clearance of gnash in the placebo group. when they took those people out of the analysis, the study met its end point, so genfit is going forward with it, potentially into phase iii. but you saw on that news, intercept's stock go way up. and as we saw in the biotech market recover a little bit today, some people are saying that's related. intercept, a lot of buying there, could have been some short covering. and there was another positive news event this afternoon with a company we've talked about a lot with its obesity drug getting cleared in europe. >> meg terrell, thank you. all right, meg makes an interesting point in terms of the sell-off. the sell-offs we've had before were caused by specific events. this one, not so much. is this more concerning? >> well, yes, i guess, because it's a fear thing. if they're going to sell out of the biotechs, it's going to get

painful. and 75% of biotech stock out there have zero or no earrings. amgen trades at 15 times foreign earnings. gilead is 9. they're not expensive in my opinion. i think the stocks work. but if everyone wants to sell at one time, it's going to be painful. >> coming up, solar is making a big debut. we talked to the ceo in a cnbc exclusive, right after the break. ♪ ♪ (under loud music) this is the place.

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shaking up the solar sector. solaredge technology is making its debut at the nasdaq. pricing its ipo at the high end, it's up 15%. let's bring in the ceo of solaredge, guy selli. great to have you with us. >> thank you very much. >> not have many people are familiar with the inverter or microinverter market, but basically your customers are the installers of solar installation. one of your biggest customers is solar city. >> that's correct. >> i understand that it's just under 20% of revenues in 2014. how sticky is that relationship? how easy would it be for solarcity to say, we're going to switch away from solaredge to another supplier of inverters, because we saw that happen. when they switched away from sma

and they lost tremendous market share in a matter of 1 1/2 years, because you stepped in. >> so first, that can, of course, happen. in this market, people can change technology. the benefit of the solaredge technology are so unique that it seems to be part of the necessary percentage of any big market, especially in the commercial and residential space, so we believe, and quite confident, that our sharing the market will grow and won't go in another direction. >> so it's specifically your technology and what is it over -- what is preventing a competitor with perhaps more money and that is profitable from actually just sort of replicating what you're offering? >> so the solaredge technology was invented on an open bi billboard, so we are very well patented. we have 39 a awarded patent, another 36 patent eed applications. it took three years to develop

this technology for a team with lots of background in any sort of basic design. it will take somebody, even if they are willing to step on all these patents, another three years, while we're improving our technology, the technology reducing its price at a rate of every 8 to 24 months. but the combination of the better patent and the ability to run faster than competitor will be, we believe will open a gap and others won't be able to narrow it. >> okay. in terms of market share in the united states for residential and commercial -- i understand that you're residential and you're in commercial as well. you're in third place according to gtm. >> that's correct. >> behind m phase as well as abb. >> that's correct. >> m-phase last year, it's a formidable competitor and also introduced a lot of new categories in the past year. it has a home energy management system, a modular storage device. it also acquired operations and maintenance providers and done all these other things. do you see that that is your

path as well? >> i think that if you look worldwide, 93, 94% of all the installations are using traditional string inverters. the only place where you see that microinverters back to a big portion of the market is the u.s. u.s. in this way is more advanced. i am confident that the solution we are bringing has the best of both worlds. on the one hand, we are optimizing every panel individually, providing monitoring and safety, as part of the solution, while on the other hand, we can compete with the traditional spring inverter technology price. so overall, i believe that we'll get faster and and bigger and bigger market share. just to go over the same data, in 2012, we had only percent, and i think our future looks quite good. >> guy, we've got to leave it there. guy sella, the ceo of solaredge,

sldg is the ticker on this. karen, why did you invest in this? >> i thought the technology, to the extent that i understood it, to be honest, i didn't understand what he was doing, but maximizing each module, was really interesting. the valuation was interesting. i don't think it's crazy here. and you know, they've done a tremendous job. it seems like a new company, but it's actually, i don't know, 9 years old, i think. they've been doing this for a while. >> and remember, sun power bought solar bridge in november, also microinverters. >> how do you trade the space, is the next -- since the apple announcement for first solar when the stock was mooreanderinn the 40s, it's been hovering around the $60 level. i think it's making a plateau to the next level, which is 75 bucks. i think the risk/reward sets up. i think route 58, you're out, and looking for a move to 75. it's not that expensive of a stock, 12% short interests. i think first solar is a play right now. >> time now for pops and drops.

big movers for the day. a pop up 7%. dan? >> up 7% on a slight beat and a mild guide down here. you know, the stock broke out to 15-year highs almost -- excuse me, seven-year highs, but it's a massive breakout here. i don't think you chase breakouts in this market. i think this is a stock that has a lot of foreign exchange exposure. i think if it comes back to that breakout, that's where you buy it, but that's somewhere probably closer to 90 bucks. >> pop for lululemon up 5%. karen? >> yeah, they had some good earnings and i think also a low bar. so we had some traffic acceleration, which is a very good thing. the comps were up, the men's division was up, the valuation is up. it's okay here. it's not as cheap as some other things, but good for them. >> pop for dr. pepper and snapple. >> a lot of people think this stock is headed to 90 bucks. it's been parabolic now for a wile. but the momentum seems to be still behind dps. i think yo uh stay long. >> drop for union pacific, down 2%. grasso? >> rail's been under pressure.

look at today's low, 106.75. wait a couple of more days and see if it holds that low. if you want to get in, use that as your stop. >> coming up next on "fast money," just one more company can move on to the second round in our "fast money" madness tournament. tonight, the matchup between apple and hewlett-packard. the battle is on right after this break. we're reinventing inhow we do business, so businesses can reinvent the world. from pharmaceuticals to 3d prototyping, biotech to clean energy. whether your business is moving, expanding or just getting started... only new york offers you zero taxes for 10 years with startup ny, business incubators that partner companies with universities, and venture capital funding for high growth industries. see how new york can grow your business and create jobs. visit ny.gov/business

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time for "fast money" madness tournament, where 16 tech names compete for the name of "fast money" champion. throughout the competition, we have an exclusive preview each day on cnbc.com/pro. tonight, a battle in our big tech conference. one side, apple, up 12%, and edging higher today after an analyst at credit suisse bumped their price target. and hewlett-packard down 20% today. your vote counts too. logon to twitter using #fastmoneymadness and tell us whether you favor apple or hewlett. each trader gets 30 seconds to make their case. so 30 seconds on the shot clock. grasso? >> i don't know if we really have to debate this. apple is up 12% year-to-date. and if you look at hewlett-packard, it's down 20%. hewlett going into a splitting up of the company, still hasn't gained the confidence of the investment community. apple, cash hoard, cool protects

still, must have stock, must have products, it's a no-brainer, apple. >> no-brainer? come on, grasso. but i will agree with you. i think apple's cheap for the right reasons and i think hewlett's cheap for the wrong reasons and you have to stick with what's working. we have the capital return, the watch coming out, i don't think that's going to be very exciting, and we have earnings here in late april. i think the iphone cycle still works. i think it's going to be up or down 10 or 15 bucks, either way, i don't think you'll see this parabolic straight up from here. >> karen? >> i agree with both these guys. you know, valuations for both of them are not crazy, but apple is such a superior franchise at this point. and you know, while it's sad not to have steve jobs there, tim cook does seem to be much more focused on share price, which is something steve jobs really never seemed to care about at all. and we've seen that through the capital allocation we've done throughout the last year. so me, no-brainer, apple. >> you know what that means -- >> i'm moot, as usual. >> go ahead, your side. >> it feels like being home.

>> you wanted to be mute? >> i'll make an analogy you won't understand. now, apple is the kentucky of this tournament. i know that goes over your head. kentucky is going to get knocked off, but not this round, neither is apple. it's apple, better product, better management, better metrics. it's all apple, all the time, until the next round. >> all right. so straight across the desk, apple and on twitter, you also said apple. that is the first time in this tournament that that has happened, that everybody -- >> you know what that means? hp -- >> exactly. >> that means apple advances to the next round. that should be interesting. tomorrow, we're moving on to the second round of our tournament, the exceptional eighth of tech. our first matchup is between nvidia and intel. so be sure to logon to cnbc.com/pro for exclusive pr e previews ahead of each matchup. coming up, on a day where chipmakers are feeling the pain, we'll tell you the one name that traders are getting bullish on. that's right after this break. is here and it's free! make faster, smarter, better trading decisions with vectorvest mobile.

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. after a big sell-off, qualcomm managed to bounce its from lows, and traders are betting there's more upside ahead. dan nathan is here with the upside. >> call volume was two times that of puts today. there was some interesting call volume that caught my eye. this happened when a lot of the semi stocks were down on the

day. a trader bought 5,000 of the april 10th weekly 70 calls, paying 22 cents. that's $110,000 a premium. doesn't sound like a whole heck of a lot, but it's about 5% out of the money. that's where that trade breaks even on april 10th. and if you just look at the trade, it's a series of lower highs and lower lows, the chart, it's a disaster right here. and i guess if you're looking to kind of leverage, maybe an existing long position that you have, this is one way to look out of the money and look for what look like dollar, cheap calls in the name. if you have that 5% move, you have a lot of leverage to the upside. and i'll make one last point here. when you think about a 22-cent option that expires in two weeks, you have to be very careful. the options market is only saying about a 10% chance that these calls are in the money. >> thanks for that, dan, for more "options action," check out our live show tomorrow 5:30 p.m. eastern time. shares of con edison falling 3% into the close after a fiery building explosion rocked new york city's east village.

cnbc's jackie deangelis is at the scene with the late ossen this story. >> reporter: good afternoon, melissa. that's right, bill de blasio issuing, having a press conference saying that the initial investigation shows that it was, in fact, a plumbing and gas work problem that caused that explosion at the building 121. it was that fire and explosion that then caused the partial collapse -- the collapse of that building, the partial collapse of the building next to it. over 200 fdny personnel are on the scene and nypd presence is very heavy here as well. you mentioned coned, the crews are all over the place, trying to work on this accident. as you can imagine, it really is a chaotic scene. residents have been evacuated here and one person that saw the explosion told me it literally shook the whole neighborhood and surrounding area. of course, resident have said evacuated. they are waiting to get back into their homes, but this is a difficult situation right now. the nypd also telling me the fire has not been extinguished just yet at this time. back to you. >> jackie deangelis on the scene

in the east village in new york city. thank you. coming up on "mad money" tonight, sky works solution up more than 800 percent since 2009, but does it have more room to run? plus, the company that houses all of your favorite grocery stores. jim's catching up with briksmor property group. all that and much more coming up.

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iphone. no, not literally. i have the company inside that could help you cash in on apple's success, and a way of profit off of all those stocks to the supermarket. "mad money" is next. have you guys ever been to the "fast money" website? there are -- i mean, it's just an amazing place. >> absolutely, duh! >> the highlights of the show, the great interviews from the day. you can learn all about steve grasso. >> love it, love it. >> fastmoney.cnbc.com. time now for the final trade. let's go around the horn. steve grasso? >> you know, it's been a real fight to see where you make money in energy in this space and there's been a limited places you can do it in. refiners have been the shining spot. i think that's going to peter out for a bit. go to the service names. go to halliburton. >> dan nathan? >> earlier i mentioned xlp. the leadership in that etf, the highest weighted names don't act well. if you want to short stocks in this market, you want to short

weakness and that's where you go. i'm long puts in the xlp. >> which stocks in the xlp do you dislike the most? >> procter, coke, walmart. >> wow, that was fast. >> sharon? >> yes, so we've seen a little bit of a rebound in equipment rental space, another name is manitowoc, doing a spin of their food service business. i like it, i like the food service business, and if we do see a bottoming out here, i think it's good to run for a while. >> guy adami? >> can i say i miss dan nathan. he's been away. >> he's all tanned and relaxed. >> relaxed. >> and steve grasso, he's handsome. a handsome man. >> shameless. >> yahoo! i've been waiting for a reason to buy yahoo! and this announcement today in the midst of our show might have been the reason you get long yhoo. i think you do it against the 42 stock, as my friend dan said, yahoo! will get you done. >> think about the letters, though. >> now it's a procedural thing. >> it's all screwing me up. >> morgan stanley just initiated

yahoo! with an overweight. >> giddyap! >> i'm melissa lee, thanks so much for watching. see you back here tomorrow at 5:00 for more "fast money," although i'm going to be on vacation. "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. welcome to "mad money". welcome to cramerica. other people want to make friends. i just want to make a little money. my job is to educate and teach you, especially on days like today. call me at -800-743-cnbc or tweet me @jim cramer. after the market's hideous performance this week, let me remind you comebacks from deep se