and what this means for people who may not realize you own it. in your 401(k) you're involved. pay attention to the sglerngs not a decisive breakout. everyone was watching. 19th day out of 46 we crossed the 2100 line in the s&p. maybe we get another one tomorrow. >> we'll leave it right there. thank you so much this afternoon. that does it. no mars on "closing bell." "fast money" is coming up right now. >> no mars. live from the nasdaq market site, i'm melissa lee. two huge stories. blowout tech earnings from least biggest names on the nasdaq on a day the nasdaq composite hits a new record high. google soaring despite missing on both the top and bottom lines. amazon hitting a fresh record high after hours on a top line beat and guidance says the stock is turning and microsoft higher on a soiled beat all of this happening the nasdaq to record highs. team coverage on all the conference calls as the headlines roll n.plus comcast and time warner one of the biggest media deals of the year could be going bust possibly as soon as tomorrow. david faber will be here

momentarily with the latest breaking developments. our traders tonight are tim seymour, brian kelly, karen finerman and guy adami. google volatile and higher in the after-hour session. guy adami, opex 35% of revenue this quarter versus 37% of revenue in the previous quarter so down. >> that's what tim was talking about. that's the reason. it's hard to find another reason why the stock would be higher other than the fact that it's probably cheap, and other than the fact that i think people sold into this expecting a worse core. typically what happens is you do the inverse of what the stock is doing in earnings and we got this one right. now it's imperative the stock takes out the $600 level-ish that we topped out in 2013 or 2014 excuse me. welcome back karen. >> i think guy hit on it. it wasn't as bad as it could have been or as bad as people thought or as bad as stocks have been reflecting. it's had a real not good run in the last month or so and with

the antitrust charges i think that maybe was the final straw for a lot of people so it could have been worse, and the bar was set low, so here we are up 25 bucks. >> you're long too. >> i'm long, and i think it was the capital intensity, so in other words, last quarter it was 20%. the previous quarters 15% to 17%. people have been very concerned about how google is spending money. therefore, they have been worried about the margin. this stuff, it looks better this quarter. i also just think that people are starting to understand where there's value and people are rewarding facebook and saying how great they are doing in ad tech, for example. i think google has more opportunity in part of the business in both of these companies. there's hundred dresds ofs of billions going to ad revenue. i think people are underestimating their scale. >> i think that's exactly why it's up. talking on call big corporations especially media, are coming to them for youtube, and that's a real advertising platform that they are making a

lot of money off. i know a lot of people are said they are not profitable at it. a lot of revenue there, and if they can shift the big corporate ad spends to that area. that's a way to monetize mobile for that so i think that's one thing. other thing, look at currency impact. such a big currency impact. a lot of people saying that's not going to happen as a guy long the u.s. dollar. i hope they are wrong but in terms of google i think they have so much more runway here to monetize those ads. it's a great buy, i think. >> speaking of that pay clicks paid clicks estimated to rise 13 pes year on year and cost per click, down 3% year on year and it actually came down 5% year on year so a little bit of a mixed bag there. >> it is a mixed bag but hit it right at top of the show. you're getting a relief rally which trades up to $600 which was a level we saw in early 2014 and we'll see what happens there. if it fails there, which it could, you could see a move right back down to the 525 level

that we spend most of this year as. >> look at other big-cap text and big cap names anywhere this, has the best rick-reward, and even after today's after-hours 5 has move i see now your bottom is 520, 10% downside. you have 10%, 20% upside on technicals, i believe, and once you get through guy's level but on fundamentals this is 17 times at about 18 times multiple. very very interesting still. >> the question still is in a google, as good as things may be, the ball sheet, et cetera it is still an underperformer versus the nasdaq year to date. karen. it's enough to perform in line with peers. >> i don't think quite yet. do i hope the capital allocation strategy instead of none whatsoever is on table. hopefully we'll push that a little bit. they really need to do it. >> all right. we'll bring you the headlines from the google conference call as they roll n.meantime other big story of the day, cable stocks moving on news that cnbc parent company comcast could

drop its $45 billion bid for time warner cable as soon as tomorrow. cnbc's david faber has been all over this story and joins us now from 30 rock with the very latest in this developing news story. david? >> reporter: yeah, expectation is that comcast, as said, our parent company will drop its pursuit of time warner cable having faced simply too much opposition from regulators particularly in the form of the fcc. while much was made about meetings yesterday that took place between executives with comcast and the department of justice staff, it was meetings with the fcc that my sources tell me turned comcast particularly towards the idea of simply terminating the deal a deal, by the way, that will end with no break-up fees should it end with time warner cable and has wide-ranging implications for it not just those two companies but many others which i'll get to. as for why in terms of the fcc, it was such a concern. well, the fcc had made it colleagues according to my sources that in fact it was willing to go to a hearing to

what they call a hearing examiner and that hearing examiner would then rule on whether or not the deal should occur, but that hearing would not take place for quite some time, and while that was being weighted for conceivably as long as a year you also had the possibly still of more in investitures so it was decided to step away from the deal, a deal announce 14d months ago. it would face significant scrutiny but would not be ultimately resisted particularly by the doj given there was no lap in competition between warner and comcast. expectations were while the fcc might ask for companies it would

not oppose deal. it does appear the size of the market share in broadband as defind as 25 megabits coming down the pike which comcast/time warner would account for 57% of all households with broadband in the country was a clear problem for the fcc and one that it did not appear it was willing to get past. what happens, of course now, melissa is a key question. comcast shares us a noted, were up today, perhaps somewhat surprisingly though there's some speculation that should the company announce its decision to exit this deal it would embark on a large share buyback, something it was planning on doing once the deal closed so that perhaps helped aid the shares and also some short covering by those who were playing the arbitrage between it and time warner cable. it was an all-stock deal. charter communications is in a deal to buy brigshouse networks. however, that deal may not occur. it's contingent on this deal happening. my sources familiar with the situation indicate that charter

has great interest in acquiring trarner cable. you may recall it was in june when we first reported june of 2013, that charter wanted to buy time warner cable leading the eventual comcast deal to buy it. and remember another case greatland communications a last cable company made up of the divested subs of time warner and comcast. that will no longer be happening given that the deal will no longer happen. what's time warner's strategy? does it want to go it alen? does it want to try to consolidate the networks make a push for brighthouse networks. and, finally, the fees for wall street on this thing were going to be enormous. time warner cable/comk569, that was enormous fees. greatland, which was going to become a public offering in a sense was going to be another 350 million in fees. throw in charter and brighthouse

and everything else this is a huge blow to a lot of bankers out there. >> amazing what the domino reafect will be. we'll check back with you later on for any other developments. for instant analysis let's bring in chris move yet, a top analyst in this space. i was talking to somebody in the industry who immediately said john malone will be the beneficiary. >> in almost every scenario. >> look you know the irony here though is the big winner may actually be of all people time warner cable because as david said charter has already said they are interested in time warner cable. if time warner cable does decide to defend itself from an acquisition, remember, they didn't want to be acquired by charter back in the end of 2013 then you're likely to see time warner cable do a levered recap to try to defend themselves, and shareholders may win either way. >> so a levered recap, how much do you think they could look to lever up and buy back? would that -- where would that support the stock? >> if you take time warner cable back up to the old leverage

target of three3 1/4 times this is a company with less than a million shares less. that is company easily with their leverage could do a $10 billion buyback over the next couple of years, and with the anticipation of further buybacks, remember, this was a monster stock for years because of their capital strategy you could see them -- some of that get discounted in the stock today. that's precisely what they would be trying to do and make their stock effectively too expensive for charter to buy and make sure that charter can't use time warner's own balance sheet against them. >> so on a stand-aloniesies, and breaking up of this deal is a negative for all the players, including charter on this although they can be aggressive. who is most interested on a stand-alone? you mentioned time warner. how about comcast? >> here's the problem with all of that. time warner cable ends up being a relative winner because there's a bidder out there. charter ends up being a relative winner because now they get the stage to themselves to roll up

the industry. you can make a good story for everybody relative to each other, but you have to be careful about overplaying this relative game because nobody is stepping back and saying wait a second, what are cable assets really worth right now because you step back from this and say, okay, but we just had a momentous regulatory decision that hangs a cloud over this whole industry about broadband pricing power because of title 2 regulation. that never got priced in because of all of this other noise. >> interesting. >> is there a real risk to cable valuations, and i think that's my concern. >> that would make it seem like comcast would be the best out of bunch since it not only has a distribution but because it has content. >> well, it depends. also have some problems on the content side. advertising is real weak. everybody is very concerned now that ott and cord-cutting is a bigger problem for the content guys ironically than it is for the distribution guys. so comcast has a challenge on its hands now in that -- the

buyback will immediately help assuming they do it but then where's the sizzle and the stock come from longer term because you probably can't do anymore m & a of distribution if you're comcast. you may have to look overseas now for expansion strategies. >> craig, thanks for coming by. thank you. >> how do we trade this? >> wonder what it means. does netflix play into this? craig has an interesting call on cablevision. i'm not looking to go back but has a sell rating and a $9 price target, a $19 stock so in a space where everybody seems to be in play he has a stock that he thinks is going to get cut in half. they report on may 5th. that might be an interesting play from the short side vis-a-vis puts ant actual stock. >> am zorn soaring after hours. the conference call kicking off in less than half an hour. headlines as they break and crude oil's big reversal. behind the massive day intraday spike and how to profit from it

and starbucks hitting all-time highs in the after hours on earnings. tim is long and he'll tell you how when we come back. stay tuned.

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earnings fast track. amazon taking off 7% and coming in with a loss per share of 12% and google trading higher in the after-hours session despite missing on the top and bottom lines and microsoft coming in strong with beats on both earnings and revenue. that stock up about 3% in the after-hours session. let's kick it off here with amazon and beating on revenue sending shares to record highs. let's get to julia boorstin with the conference call kicking off at bottom of the hour. >> reporter: amazon growing revenue at 15%, $1.7 billion. its loss of 12% a share was right in line with expectations. the company's guidance for second quarter was lighter than projected but the number one thing to watch is amazon's web services business. ceo jeff bezos saying in the company's earnings release it's a $5 billion business and growing fast and, in fact it's accelerating. the company announcing amazon web services grew 49% to $1.6 billion.

division's operating margin was 17% in the quarter, groun 23% a year earlier on higher expenses. as the company breaks out its cloud division, the fastest growing part of the company for the very first time investors are going to be looking for details on its growth potential, maybe whether it could potentially be spun off as a separate company. melissa, back with more as soon as the call starts. >> thanks so much julia boorstin. according to one research firm, the infrastructure services market cloud market was a $9 billion market last year. right now jeff bezos says it's $5 billion. that's amazing. >> when you look at these guys coming into these numbers, i don't think the bar was as low, for example, as on microsoft, but you have a case where the company last quarter showed some margin improvement and showed that they could start to focus on the core business and followed through on that and i think that's a very important thing. look at the stock on chart, consolidating around 380 for the last really since that announcement and looked like it was poised to break out and the numbers that everybody wanted to see, top line growth better

margins. >> the amazon web services is stung the growth there. 49% growth. half the market and the only thing that worries me is they have a lot of competition and now that this is broken out and the fact that it's growing so fast that will come into play here, and i say that only because the stock is up so much in after hours. tomorrow morning do you go and buy it? no, you don't. if you get a pullback and let's call it down to the $200 level and everyone is running around with their hair on fire that's when you buy amazon. >> operating margins stood out. non-gap operating 3.2% i think the street was 3.9, able to put the levers to get margins improved. that's a big deal. tim mentioned the fact they were hanging out around 385, the stock doesn't give you that long to set highs. we had talked about that yesterday. that's why i think you're seeing the bounce now. >> another check on google. higher in the after-hours session. evan has an overweight rating on the stock. great to have you with us. >> thanks. >> is it all about the operating

expenses? >> at google it's about two things, one, managing expenses and while there's no new hit product catalyst and biding our time until we get the next chrome or next android or whatever it is chrome book. right now google's valuation is trading like a stock. not one of those product cat lifts out there so we need to keep expectations and expenses low until we can get to that cat lift. >> i'm a little surprise thawed said the next chromecast or chrome book. does that really make a difference to google? isn't it still all about the core business in search? part of the problem for google is that it lost being the default search engine for firefox? >> to a lot of long-term investors that may be the case but here on "fast money" people looking for cat lifts, the cat lifts are very important, and i think the one we've identified is the new ceo, ruth porette, a very famous internet banker back in the 1990s and then the cfo of morgan stanley coming over to google. what we're hoping for is some

cost cuts potentially like you mentioned or some more details on the catalyst and the financial impact of those because right now we don't really have that catalyst and that's why on a growth-adjusted basis you're seeing google traded at a discount valuation to a microsoft or apple in the megacap space. >> it's karen. so what do you think it's worth here? >> our price target is 675, and we think that you know really just closing the gap in terms of valuation with the other two bank stocks could get us there and we need some product catalyst to make us think that growth could potentially accelerate rather than the deceleration that we've seen. >> evan how about the ad world and digital advertising and something that people think two guys will dominate if not dominating right now. i think google is in the pole position. i think people are doing their facebook, and this is one of the things that the competitive advantage goes to facebook. what do you think on this front, and is this something that's being underestimated in terms of the growth to the total revenue stream? >> well, google still obviously dominates search market and i don't think there's a big

competitor there and even though they have lost a share with firefox in the near term. all the talk is about the display advertising side and right now facebook is the bigger company. this isn't facebook killing google, facebook and google having a big share google trying to catch facebook and display advertising, you wouldn't believe how fragmented it is, and i think you'll see both companies grow share and a big growth driver for. it doesn't have to be either/or. >> evan, got to leave it there. evan wilson of pacific crest. overweight rating 675 is the price target here. are you convinced that ruth porette will be the catalyst to perhaps close the gap. >> perhaps, i think that's the case. again, it goes back to the ad revenue that's coming from youtube and the fact that they can get bigger corporations coming in in here. now, i would also extrapolate that to facebook as well. i didn't like how facebook traded today so i still like the stock. facebook, just be a little careful with how big you get in that position.

>> facebook trading. >> once again, down obviously last night in the after hours, traded as low as 82 and traded up above 85 again and for whatever reason 58 can't hold and closed lower on the day. i think the quarter was fine and that the stock should trade high, but have you to admit when a stock has as many -- it's failed as many times as it has at 85 you have to be a little concerned. >> we'll continue to track google in the after-hour session. microsoft's ceo is about to start earnings call in the next ten minutes. everything you need to know ahead of that call and crude oil staging a massive turnaround dragging stocks along with it behind the huge intraday move and how to play it. that's next.

the real question that needs to be asked is "what is it that we can do that is impactful?" what the cloud enables is computing to empower cancer researchers. it used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. whatever i can do to help compute a cure for cancer, that's what i'd like to do.

microsoft trading higher

after beating out the top and bottom lines. let's get straight to cnbc's josh lipton for a breakdown of what the analysts will be looking for in a call that gets under way in four minutes. josh? >> melissa, i just got off the phone with microsoft's head of i.r., and here's what he said about the report. devices and consumer revenue, 9 billion, up 8% and better than expected. the real strength was coming from search ad revenue, up 21%. surface revenue up 44%. microsoft also selling at 1.6 million xbox consoles in the quarter. the focus though from analyst to investors on of course the commercial division where revenue rose 5% to 12.8 billion. that better than expected. you saw commercial clad revenue jump 6.7%. the commercial division is not growing at same rate as it was in prior quarters. that's things to a rising dollar softer xp tailwind and a

souring business in japan, according to some but microsoft bulls saying this was a welcome step in the right direction, and i just got off the phone with brent till of ubs. he says he's going to be focused on that call an azure now that amazon is breaking out aws, and the sustainability he says of the strength in the commercial side of the business. melissa, back to you? >> we'll check in with you a little bit later on josh lipton. let's trade this. i mean this is a pretty strong quarter. >> very strong quarter that people weren't expecting, but let's not put the cart before the horse here because we have a stock that's trading up to 45 which is that gap that we had from the last earnings so tomorrow morning when you go out there and you see the stock trading 44.75, i would be very careful. can't find too many faults with the quarter, talking trading-wise, don't get too aggressive here. >> he makes a great point. last quarter back in january when the stock went from 47 down to 41. listen, we got it wrong. i got it wrong. on friday we played that game. >> would you rather? >> not quite, but it was

basically who would buy into earnings, and nobody wanted microsoft. >> with that said b.k. is right, fills the gap. >> that's exactly why the stock went up. >> the expectations are so low so kwengsly. if pc and servers continue to suffer like they have how does this stock do anything and i also just think that the change here happened way too fast in terms of how they price it had into the stock. the build developer conference in the 29th, they will be out there talking strategy. that's the next event for the stock to watch. >> oil topping the tape today as it hit its highest level of the year staging a huge reversal in today's session rallying 3% and taking stocks with it helping to push the dow and s&p higher around noontime. soil now up more than 35% from the march lows. what a -- i mean when you started the day, right, got the bad data out of china and you thought, hmm, maybe won't be such a strong day for oil. >> precisely and bad data out of europe and thought it won't be such a strong day for oil and it is a strong day for oil.

production has come off but not to the extent you need production to come off and here's why this is a stealth issue for the market here. the reason is cpi is running at about 1.8% your core cpi excluding oil. oil is up 35% from the lows. you'll have the fed in a position where they are going to say we have to worry about our 2% inflation target and that's also why i think you saw bonds down or down in the morning, even though economic news was bad. >> it is really interesting. who knows why it turned exactly. i don't know why, but at some point people think, you know what? i've been waiting to bottom out. i missed the bottom. i got to get in and have some oil exposure at this point, and i think you do need oil exposure. who knows whether this is a bottom or not, but i think you've got to step in at some point and start to -- >> such as? >> well for me oah which gives you a broadway to play the oil services index, hopefully that business is bottomed. we'll also see the stocks bottom before the commodity. >> can we touch on petrobras.

>> these guys are trading on oil, on improved oil and if i had to look how to trade petrobrass and last night by announcing the numbers they removed the technical default from the things that could happen and the equities traded below 5 bucks three weeks ago and ultimately being priced in. pulling back on cap "x," very good news $25 billion and 29 billion in the noakes five years and they will cut the div for common shares and this is a case where people need to see something. what do you do after this move in the stock moved 75%, up 5%. a lot of shorts left out there. i don't think you need to buy this thing tomorrow, but do i think that this stock is starting to trade almost as much on brazil macro which is changing, not necessarily because of anything fundamental but because things were oversold. the currency rallying. i've been long the stock stock and stayed long through it.

>> that 2 billion with the ridiculous madeup number out. >> it was big enough where it looked like people were dressing it and then the impairment charges were also a big enough number. >> still ahead we're covering every number of the major earnings report after the bell from amazon to starbucks and google and check out the move in google. that call about to wrap up. we've got the headlines and you need hear from ceo larry page right after this break so stay tuned.

google.

still ahead on "fast money," live from the nasdaq market site in no,'s times square amazon higher after hours. the call starting right now. we'll bring you all the headlines as they break. plus, it's not just google and amazon dominating the headlines, a slew of other big reports out from starbucks to pandora. the trades and all the big after-hours movers ahead. and microsoft's ceo kicking off the conference call now. the headlines moving the stock. we've got the wrap-up next. first, let's start off with google the conference call wrapping up. let's get to jon fortt for latest thon. >> it is over and the questions you've been asking and finding various answers to if they missed on the top and bottom line, why is the stock up so much? well, they had a number of items of good news. here is the cfo laying out a

couple of key ones. >> two positive stories to tell here today. first, as i mentioned earlier, we're experienceing real strength in mobile search and the cpc in the core business is continuing to growth year over year so it's doing very well. second viewership and youtube videos and ads are growing significantly and youtube's contribution to our advertising revenue continues to grow at a strong rate year over year. >> in other words, facebook is not the only one that can talk about mobile and video. one of the more interesting metrics that they talked about or details that they talked about is the true view ads on youtube, the ones with the autoplay when you're starting a youtube video. well, it turns out people are actually watching the entire ads instead of skipping them which they have the option to do, and when people do that that counts as a click. that is increasing the raw clicks and also driving down the cost per click. when you "x" out the true view ads google says the costs per click are actually pretty

healthy on a going forward basis. also, they talked about the currency impact which was pretty significant. international growth and constant currency was 24%. currency impacted that of course, head count growth was modest, and as you mentioned the opex was very much in control compared to revenue. >> amazon ahead of their call. what do you think the next step is for amazon web services? do you think they are charting a path to spinning this business out? >> i actually doubt it. i think that there's a strategic reason that they are in the business and probably more than anything i think they want to control all data on the planet and figure out what everybody is doing all the time. i mean think big brother, but in a good way so that they can make sure that they get us what we need. i really think there's an overarching retail and media strategy, and i think they just

want to see all information flow. >> your price target is below where the stock is trading now which is of course an all-time high in the after-hours session, michael. you would say to sell the stock at this point? >> i mean obviously now that i have earnings and i say what aws is doing i can re-evaluate my target so i guess the premise is if i don't move my target maybe. let me ruminate over this overnight and i'll have a note out tomorrow i promise. but, you know i think the big surprise, and i think the reason that the stock is up, is aws is profitable, and, you know in talking to a lot of investors, can i tell you that we're all all over the place. nobody really knew. i think -- you know i heard people estimating as much as $12 billion in annual revenue and baseos said 5, the quarter coming in at 5.6 billion so it's at a 6 billion run rate. i think most people thought it was break even at best and probably even losing money. not only is it making money, but pretty healthy. it was making money a year ago and i think that's a shocker to

most people so when you see a business that grew by 50% in the past year throwing off $1 billion of operating profit on an annualized basis and think maybe it can grow another 50% a year for the next several years this could be a big profit driver for the company. so i think they will probably hang on to it for a while, use the profits to reinvest in other videos and all their different consumer devices and maybe tilt at windmills occasionly. i think they have a clear strategy to be a much much bigger company. >> michael, do you think this will get institutional investors to change the way they think about the stock, and i'm asking this question on the back of a reuters article today which basically asserted that large-cap funds essentially have reduced their holdings in amazon, so on average right now they have 1.4% of their assets in the stock of the ones that hold it, and that's down 23%, and over the past year 116 funds have either cut entirely or reduced their positions in amazon. >> yeah.

i think that's a good point and a good question. i think that the perception of amazon is that it's you know, a giant retailer that will be the world's largest retailer and retailers aren't quite as exciting today as they might have been a couple years ago. there's lots of others areas to invest in. i think the aws story brings them back, to you know front and center to being a tech story, and i think that you might in fact see big funds start to add to positions. that's probably why the stock is hitting all-time highs right now. people want to own the tech story. they don't want to own, you know the old slow growing retailer. >> all right. michael, going to leave it there. thanks for phoning in. >> michael pachter is going to ruminate over the results and come out with a note and sounds like he's telegraphing that he'll do something to the price target or what not. >> raise it. >> raise it that's what it sounds like. >> i don't know what he'll raise it to. i shouldn't speak. stay long the stock against 385. again, we talked about the fact that it hung around the levels for so long and indicated it

would make this move. operating margins are so much bet certain couraging. i get the stock is expensive. that's been an argument for a while and do i think the stock can go higher even from here. >> just a moment on the big picture in the after-hours session. the nasdaq closed as a record high nasdaq amazon and google three of the biggest components trading higher in the after-hour session and significantly higher. >> makes b.k. a little scared frankly. >> scared, not feeling good? >> would i feel much better if this was happening when we're at the all-time lows because then that means nobody sees what's going on. now everybody is kind of buying into it. ultimately you get to that last buyer. i'm not saying things are going to fall apart. you know i don't like things up 3%, 4% all-time highs. >> but the all-time highs were 15 years later, an astonishing amount of time to get back there, and these valuations are so much more realistic than i mean, just the vapor that things used to trade on. amazon is still vaporish to me.

>> and what's important about today's all-time high is look at companies leading the nasdaq now, a very interesting group of people. what's interesting about today is google amazon and microsoft are war horses guys that transformed their buses and they are still here and very vital. would i argue that google and amazon, if you're looking at old tech that's new tech. these guys are two of the most important companies in the world. microsoft has recrafted its business and why people rallied it hard last year too far too fast and google as the stock is the most important one and i think can take the market higher. >> are you with b.k. guy? >> i'm always scared. >> i thought he was going to say i'm always with b.k. >> scared. >> scared. >> would like to live with b.k.? >> seriously. i understand what he's saying completely understand what he's saying but the transports finally seem to have bottomed out. tim was way ahead of the curve and right about oil. >> yeah. >> that's cooperating now. the russell, the iwm, stayed above that 121 level for a while now, so everything indicates the market wants to continue to

grind higher. >> so on the whole, positive about the market. >> a new game called on the whole. >> let me tell you something. >> the bottom line is? >> positive about the markets but scared crazy scared about the underlying global economies. that's another show. >> all right. >> time now for pops and drops, big movers, drop for texas instrument instrument, down 7%. guy? >> first quarter was lousy, guidance worse. margins better but if you want to be long this stock, $52 on downside is your stop loss level. >> drop for general motors, down 3%. tim? >> a pretty bad miss in the first quarter. i don't think these numbers were that bad especially when you look at one off south africa european restructuring still a part of this. i would be a buyer of this weakness. 35 is a key level forth stocks. i'm long the stock. >> drop for united airlines, down 2%. b.k.? >> up earlier. earnings good and i think it got hit by oil and for me i think soil going higher and you have to left swipe which means sell. >> big pop for skechers up 15%.

>> yes skechers gigantic beat pretty impressive from these guys anthink it bodes well for other footwear retailer finish line. i'd rather have those. >> still ahead, microsoft moving higher after hours. the conference call sunday way. we talk to an analyst who sees a lot more upside in the stock. he'll explain why after this. plus not just the big tech players reporting earnings tonight. we break down the trades on starbucks and newmon mining. still more "fast money" still ahead. still more "fast money" still

we've got a news alert on duncan brands. let's get to morgan brennan. >> dunkin' brands will join the s&p mid-cap index. it will replace riverbed technology and that change takes place on monday april 27. shares are up 3% after hours and riverbend unchanged. back to you. >> thanks, morgan. this is on top of an 8% move in the session. we had other huge outside moves in this sort of sector. dominoes pizza, that was a massive mover as well. >> for me dunkin' is -- the growth has been fantastic. to me it's like a lot of companies that have done so well that the comps are very tough and multiples unreasonable whereas the starbucks multiple

for a lot of people unreasonable and it's a multi-channel and multi-segment story that continues to grow. the perks plan to give something a lot of people belief it can go higher and a lot of first quarter weather and starbucks all day long for me. >> speaking of starbucks. let's stick with coffee. coming in line beating revenue. the stock taking off in the after-hour session adding the all-time high. tim, you've been long for quite some time. >> yeah, and it's because there's three or four reasons to own starbucks. one is an international expansion. schultz talked about 1,700 new stores in china. they didn't think they could there especially with a tea-dominated society. nation growth the term he uses unbelievable, the u.s. comps core business is what's surprising people. 7% comps. people thought this business was going nowhere and all these new products. i think howard schultz is doing a phenomenal job.

very long. >> j.c. jim cramer had a terrific interview with howard schultz and technology being a very good driver. getting people in and out of the store very quickly. same with domino's pizza. better stores are using technology to get people in and out of stores more quickly. >> you can make the argument that he's one of the best one out there. stock expensive and the growth is still there. innovation is still there, and i think the stock continues to grind its way higher. >> grind, get it? >> grind. >> is this a stock that you could look at given that it does display the growth and you do have an excellent management team? >> all those are great. >> the valuation is really hard to get past. did have that little stumble with the race together but he is a phenomenal ceo. 31 times though i can't get there. >> pandora getting hit in the after-hours session following more than 3%. b.k.? >> i think this is actually the opportunity for pandora.

one, a stock that's been killed already over the last year or so. not only that i meaning the obituary for pan dore are a has been written for soefrl year yet it continues to survive no matter what happens with the streaming. i think on this drop it's an opportunity to buy pandora. >> why do you like pandora. spotify came out and has a crazy multi-billion dollar organization. >> they have survived through all of these things. apple radio coming out and rumors of everybody streaming, amazon streaming, all of that and they have survived. the model has survived and that's why i like it. not very short term as a trader. seeing the uptrend and coming off the bottom. i want to buy weakness on that betting that that's going to continue. >> pandora looks like it could be a takeout. >> going to validate the model or prove that it's losing out. >> it has bounced since the spotify valuation a couple weeks ago. i think from 16.5 from 17.80 to 17.92. with these guys. if this sells off anymore down

to 17 bucks, you buy it. >> still ahead, microsoft moving higher after the break. we're talking to the analyst that says its earnings report is a step in the right direction for the ceo. that and much more "fast money" straight ahead. ♪ ♪ ♪ (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.

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welcome back to "fast money." i'm josh lipton on the microsoft conference call right now. the ceo saying he's pleased with the business performance. he says the momentum in the cloud business was a real highlight, saying microsoft in his words can transform and perform simultaneously. as for commercial cloud business he mentions azure and office 365. says that business is now at an annualized run rate of some $6 billion with 50 million office and as for azure 60 trillion objects stored in azure. more than 5 trillion in march alone so indicating strong usage there of azure. melissa, back to you. >> thank you so much. for more on this let's bring in dan ives who has an outperform rating on stock. good to have you with us. you and many other analysts most analysts out there, believe it is all about cloud and azure and at the heart that have is windows 10. you getting updates on the time line of windows 10 on that

platform? >> windows 10 we still think it's summer early fall time frame, but this quarter was a huge step in the right direction. last quarter was a jaw-dropper in terms of what happened the quarter in terms of guidance. microsoft is back on track and it's really the meat and potatoes of microsoft. the investors went into this quarter white knuckle. the cab driver was expecting a miss and a lower here much better than feared and now the key question is can they get this into windows 10? can this product cycle be real in the big thing that investors are focused on. >> my cab driver was talking about a potential spin of the xbox business. >> you get the point. is that a possibility in your view? >> yeah i still think the xbox spinoff is potentially out there. i think nadella and his team is looking at where that strategically fits. we look in the cloud and at windows 10 that's really a big question mark.

well do, they an accelerated buyback, a lot of options out there what he can do but now investors have confidence back in the strategy. after last quarter, the honeymoon period, that was a big speed bump and now we feel like we're back on track. >> what is the next catalyst at this point? >> next cat lift developer conference, which will be key upcoming and over the next week and i think also the timing of windows 10. does that really start to be the real product cycle, and that -- if window 10 is successful then microsoft has a 5 in front of it. if not it goes back to the drawing board and that's where spinoff, more cost cuts really become front and center. as ofno now i think investors went from a glass half empty view to a glass half full view now that we've had this quarter. >> all right, dan. good to speak with you. dan ives fbr, $53 price target on this one. >> i would still fade it at 45. you know people are thinking that windows 10 is going to be a

huge upgramptd whole xp is a huge upgrade is they cut support so they had to do it. i don't know that people are actually going to choose. >>? >> macro headwinds are still mac oak bay-gordon headwinds. >> it moved to 45 a 50% correction. >> wow, three fades. >> more when we come back. stay tune. time and sales data. split second stats. it's so close to the options floor. you'll bust your brain-box. all on thinkorswim. from td ameritrade

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the market twists and turns. >> we're in a treacherous moment. >> but cramer's got your back. >> avoid the danger zones. take the path to "mad money" next on cnbc. time for the final trade around the horn. tim? >> what has been outperforming everyone is the emerging markets. key levels on the road to outperformance. 33.60. get long the em and trade this thing up to 45. >> bk? >> this morning you would have thought the bonds were ripped on all the economic slowdowns and they didn't. today is throwback thursday and you buy tbt. >> karen? >> a name we haven't talked about in a while, dorian lpg. i like this one. if oil moves higher this moves higher as well even though they shouldn't be connected. >> guy? >> missed karen while she was gone. you know what we did before every show put that picture up. that's her with a camel. >> my new friend. >> camel on right.

>> fantastic. >> yeah. >> nice to have you back. >> harley davidson. we talk about a capitulation bottom the other day, check it out. hog. >> i'm melissa lee. thanks for watching. see you back here tomorrow at 5:00out. >> all right. thanks so much for watching. see you back here tomorrow for more "fast money." "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. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. my job is not just to entertain but to educate and teach you. so call me at 1800-743-cnbc or tweet me @jimcramer. sometimes it's as simple as asking what is