monday and "fast money" in moments. >> hey, kelly, people are getting the iwatch and one person or the apple watch, one person got it and his first reaction was to take the thing a apart. we've got him on the ceo of i fix it, the watch tear down. >> over to you guys. >> thank you. have a great weekend. "fast money" starts right now. live from the nasdaq market site overlooking times square i'm melissa lee. tim seymour, david seeburg, steve grasso and guy. here's what's on the fast track the apple watch being released but not everyone is handling with care. the guy that did a tear down of the watch to tell you what he found and the mining stocks on fire today. is it too late to buy into the move? we'll debate it. start off with our top story the nasdaq closing at its highest level ever and we are in the center of it all. amazon, microsoft flying on the back of earnings but the sector is not showing green. chip names like intel, broadcom, qualcomm all sitting out today's rally. are these semiconductor stocks flashing a warning sign for the

tech rally or do we take google, microsoft, amazon as heavier weights. >> when it's time for chips, but broadcom to me, qualcomm we've talked about for a while been a disaster since july and will continue to be as disaster. qualcomm -- broadcom not expensive, great quarter. we caution and said listen this thing traded up to 47.5, 48 back at the start of 2011, be careful. if it spikes there post earnings and fails and that's exactly what's happening. so broadcom scares me here. i think qualcomm goes lower. intel hasn't traded that well the last couple months. >> what do we do with the earnings winners? we have not seen a move like microsoft's move today, ever? >> microsoft is a case in point you saw the news monday morning. technically so you know the stock is at the 200-day, and hasn't gone through the 200-day on the way up since october. when you had a lot of dreams being priced into this company. a lot of the same old stuff. this is a company for the last

six quarters has missed the mid-point guidance of the street and they did it in the numbers. next week the analyst day, the build conference, things you could get more news. why would you do something after that move before that event, i would be a seller monday. >> you guys have been skeptics on microsoft, sitting here a week ago a ahead of earnings i did not have a single buy into the earnings. >> a shock. >> shocky move but to tim's point i don't know if this is his point but there's secular changes going on with microsoft. they have to move towards the cloud. the street was shocked at how quickly or the results they've been doing that with but nonetheless a sell. office pop a dramatic sell. >> everybody was caught off guard by the numbers. tremendous amount of momentum. people are under weight. a lot of chasing in the stock today. i was surprised. i agree 100% with tim. a sell here. as far as google is concerned as far as amazon is concerned the momentum is solid and they will continue. >> go back to the chip space. micron we talked about it on this desk another one that i've been shocked with, dependent on

ram prices. look at a commoditized business but d ram if you look at the chart, the only thing that looks worse or equal to that is coal when you look at the chart. it's declining. it's getting crushed. at a certain point my kron is a buy and looks like it leveled off in the mid 20s soon to be over 30s. >> you're using the coal argument but yesterday btu -- >> who was shocked by the way. >> you bought ahead of that. >> i did buy ahead of that. let's think about this how are we squeezing coal and -- >> making a metaphor and i had to ask him about -- >> let me -- >> my kron -- >> coal terms -- >> sorry. when you look at coal, who was shocked at the decline? who was shocked at the report in coal? >> apparently a lot of people because it was down 22%. >> that was a momentum trade. people trading it like an option. no one says i didn't know nat gas prices were negative for coal. >> rick sherlin the name upgraded the stock to buy only a $50 price target on it.

>> 52-week high. >> yes. >> so i think what rick is telling you, i think he was actually caught off guard. a lot were. that last quarter on january 26 was not good. it shocking they were able to change around that quickly. >> before we move on, amazon fade that also. you never looked it? >> no. >> you don't fade it. >> what i was saying is happening their fulfillment is bringing the costs down. investment in the stuff is coming out in gross margin improvement and increasing revenue sellers. i'm not going to buy amazon tomorrow or monday but i think of all the guys that reported, they showed the most change in their business and investors are most on board with that. >> i think one thing that's important to look at capex. they brought it down. always assume this is a company that has a spending problem and i think there's momentum here to the upside. they've reversed that. >> until next quarter. >> until next quarter. >> until next quarter. >> momentum here. >> chip stocks may be getting hit but quite a few trends from earnings season taking off in the tech world. amazon, for instance, announced for the first time ever total sales for the company's cloud

segment, ceo jeff bezos saying a business accelerated quickly. satya nadella said sales doubled. so let's trade the cloud. all part in and parcel to the amazon story. all the upgrades today cited the upside in cloud here. >> crm, sales force, a hidden cloud name. when you ask somebody what their favorite cloud space name is this name comes up. up 14% year to date. quietly all the short-term momentum indicators are racing higher. i think it's still a buy. >> interesting because you take a look at a rack space, 52-week high on the day, on the back of aws. >> another one that rallied today, seemingly on the back -- look at what ibm has done qui quietly. earnings released, stock spikes over 170, down to 163ish. overs the last couple days a nice rally in ibm picking up on that theme. i don't think it warrants this price but clearly something going on over the last couple days in ibm.

>> another big earnings trend. video. facebook announcing 4 billion videos are watched on its site every single day. that's a lot of individuals. google touting youtube success. one third of all internet users watching hundreds of millions of hours of youtube video every day. what is the best trade on video growth? >> i think it's google. everyone has priced it in to facebook already and good for them. monetized like no one thought they could in advance of that winning. google has much more scale to put to work. this is a $300 billion ad tech market i think revenues, plenty for these guys and i don't think people priced it to google. the best risk/reward in big cap. >> that's the give and take when we saw cost input come down declines faster because of the increased clicks to youtube which are less. >> and i agree, i was going to say google, but ac ka mine improves. look i think it's a great play, an incredible stock here. it's going to go higher. but i agree with tim on the google side.

google stock play here from the video perspective. >> the way to play the video side but everyone forgets about the anti-trust headwinds still prevalent. >> you don't think -- >> a reason why -- >> who cares. >> why has underperformed last year, they trailed this year. i sold google at 564ish, traded down to 530s, still haven't bought it back. get another shot, once anti-trust headline hits the tape in google the stock comes in. >> it already hit. >> so what -- >> we know about it last year. >> march to now. >> knew about it last year and still affecting the stock this year. >> facebook but for whatever reason it can't hold 85 bucks. i think the guys are right in terms of google. >> comcast/time warner merger is not the first big media deal to fall apart. why the end of a deal could be great news for shareholders and look inside the apple watch the man who did a tear down of apple's newest product what he found and we will trade that. a big fed meeting and lots of major earnings next week. the first move you need to make on monday morning coming up. .

shares of time warner cable and cnbc parent comcast higher after news of the proposed merger has been called off. earlier on "squawk box."

comcast ceo brian roberts explained why his company walked away from the deal. >> obviously we wanted to bring the products that we've got that we're very proud of to new markets. but it's not going to happen. so we reached that conclusion. we always structured this deal in a way that will allow us to walk away if it looked like it wasn't going to happen and that's where we're at. >> the end of the deal doesn't always spell trouble for the stocks involved. for example, the after charter bid for time warner cable in 2014 both stocks were higher with charter climbing 24% and time warner cable up 6% and sometimes the results aren't as rosy as comcast failed bid for disney both stocks sank. sometimes a failed bid benefits one as not the other as was the case with 21st century fox with time warner, 21st century jumped and time warner fell. what to trade on comcast and time warner cable. >> today it's always good when you get a little bit of a sense

of where the bodies lie. today a headline past the tape where it intimated that charter was going to buy time warner and both stocks spiked. you know where the torque is and leverage is. time warner is in the best spot here or charter. charter up roughly 11.5%. time warner up 2% year to date. i think that the safe bet would be time warner stock goes much higher. >> time warner obviously seems like time warner is the one in play at the same time comcast has this money and it could go after another acquisition or -- >> back to investors. >> or buyback. >> one on the stand alone that looks the best and valuation wise and their flexibility i think time warner clearly is obvious and they probably will be buying back stock if they don't do something. comcast is the play on the stand alone. >> in terms of walking through why you would invest in time warner, they've already jumped. justify that or no. >> i like the charter is the way to play it, be long charter. >> really? >> long -- >> charter goes higher.

charter reports in the 28th right. is there a possibility they come out on the 28th and make announcement they're going to do something like that? we have a gentleman on the desk going through the details today and it was incredible today. investors talking ability that right now. if that heats up that could be an interesting proposition. >> as long as bob iger stays at disney 20 times earnings dis is the best. >> next up, mining stocks like cliff natural surging as iron ore prices trading and a boost from news that bhp will show production expansion. >> that's it. iron ore has been in mass production, producers haven't carried about prices, down 70%. dal leon futures in china up twice this week, five-week highs and a number of names i think largely are pricing in. i think prices stopped going down, demand isn't there, valley up 40%, cliffs is up 35%. a lot of things have had big moves. like emerging markets, when

things go from terrible to bad is when you make the most money in these things and that's what happened. i sold half my position today because after a 35% move in three or four days, you know, we're at a key level of the stock. i'm happy to take profits. i would argue as much as i've been following this company this was as much luck. i didn't expect this kind of move over the last couple days. >> stay this now? >> half the position, but i think we're at a key level and i moved my stop up and i will jump out quickly if i need to. >> and check out the airlines stocks getting a boost across the board today on the back of positive earnings results from american airlines and hawaiian holdings. >> american airlines is interesting. i mean they had some numbers in line. they weren't spectacular. passenger revenue. >> correct. >> and they cut -- look, they -- i would say one thing, i'm worried about the integration of their reservation system with u.s. air. that's a problem for them. it's coming out in october, it's going to be a confusing event. the stock it's up, we called it on the desk here, a trade in the airlines. they set up well as a trade.

i think the trade has been had. american airlines if i could pick one name to be short is getting to the point i think it's a potential short. i like the domestic players. alaskan air the one to buy. you know, if somebody is not willing to buy back the stock they'll buy it themselves. massive buyback program. >> hawaiian, american, united southwest out with good earnings. >> jetblue is next and that's a stock that's been catching up and i think that's a stock you plight get the most acceleration in the upside with. >> still ahead most can't unwait to unwrap their brand new apple watch the one company that couldn't wait to crack it open and tear it apart. the ceo of i fix it joins us live on the apple watch tearedown. take a long look at these bare-chested abercrombie models. good-looking guys. may be the last time you see these guys. the details next. >> going to miss doing that. >> looks like you. >> a lot like life.

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. time now for pops and drops, big movers of the day, big drop for 3d systems down 10%. >> it's down 10%, 17% year to date. stratasys the other name. they said they're hurt by a strong dollar and lower oil. maybe that reverses but still i would stay clear until they settle. >> pop for dunkin' donuts 5%. >> dunkin' crushing it beat on the first quarter numbers. baskin-robbins doing well, the perks and rewards driving more traffic. i think the trade is actually long starbucks and short dunkin'. i prefer to own starbucks when both stocks have run. >> drop for biogen down. >> they missed on one of their key ms drugs. it was a lot weaker than people expected but they have alzheimer's data in july which is going to be key for them. i love the stock ahead of that. i think it's going higher.

>> pop for whole foods. >> big sell-off since a couple months ago, held 48, resistance way back in november stay long the stock into their may 6th earnings release. >> and we got a drop for bp. >> what? >> like those. teen retailer abercrombie & fitch is giving a brand make-over and shirtless models the first to get axed. the company announced no longer hiring staff based on how hot they are as retailers scaling back racy traditions set by the former ceo jefferies in an effort to rework its image. one exception, the company says the models will stay on the cologne. >> those were fun shoots. >> our own guy had a brief stint as one of the beefcakes, back in his hayday. >> full body wax a couple days ago and now out. not even in vogue anymore. >> anyway, let's move on and talk about the apple watch. apple reports earnings on monday but the watch is launching today and the first customers are getting their hands on the new

product. tech company i fix it has dismandled the watch to get a look at what's on the inside. joining us is ceo kyle means. great to have you on the show. >> thanks for having me. >> what did you find inside the watch? >> we pulled apart, the first thing we found assembled similar to the ipad. the glass on the top is glued on to the frame. we popped that open and what we found inside was a battery, apple's tactic engine a force feedback mechanism and their s1, their system on chip package designed specifically for the watch form factor. >> so in terms of the components was there one supplier you found had the dominant share? of what's inside the watch? >> so that's the interesting thing. they glued the whole thing together and we don't know all the suppliers yet. normally immediately we have a list of here are the ten major suppliers inside this. we have an analog devices arm micro controller powering the

touch screen and that's it. they apple branded the rest. we have more investigation work to do. >> kyle, you said in the span of two minutes that the thing is glued together. doesn't sound very good. but that's typically the way the product is made? >> that is the way electronics are being put together these days to get them thin and get them water sealed, they'll glue the digitizer which is the glass that has the capacity sensors built in, glue that down, in order to disassemble it for repair if you have a watch with a cracked screen or need to replace the battery you have to heat it up, carefully lift that up and then reglue it when you put it back together. >> what's your estimate then based on the components you've stripped out of the watch? how much this thing costs by components? >> we don't have an estimate on it yet. what i think is going to be interesting is to see with the addition, with the gold apple watch, selling these for $10,000 and up how much is the commodity gold value. >> and so you're waiting for the gold or too expinsive to buy a

gold and tear it apart is this. >> absolutely we're buying a gold one and going to tear it apart and figure out how much gold is in it. they haven't sold any of the watches. unless you're beyon say and if you're watching this let me borrow your watch for a few minutes and i will tell you how much gold is it in. >> put a ring on it. >> put a watch on it. >> thanks so much for your time. kyle means the ceo of i fix it. it's interesting because for the watch at least, it seems like wall street is coming around to the idea of the numbers are starting to go up actually, and the margin people are thinking that the margins could be better than originally anticipated. >> so this takes you into the trade for monday. do you think the watch is going to have any impact in their guidance? because this second quarter fiscal is still about iphone shipments, 55 to 60 million. this is kind of the waning period after this and i think you price it in. as much as i love this company i'm not buying this company. >> as we mentioned and tim mentioned, earnings are out on monday and it's april report is a big one for the stock. in 2012 apple launched its

dividend in april 2013 upped its dividend and last year in april apple increased its dividend again and announced a share buyback program and 7 for 1 stock split. now time to take your position ahead of monday's report. do you buy apple into earnings? what do you say? >> no. i'm not a buyer into earnings. i like the stock long term and i think it's a stock that you want to own long term but i would not be a buyer here. it's priced to perfection tore at least the near term, a lot of high expectations in the quarter they have to do a massive amount of shipments and 58 i think it's 58 million units shipped a big number, the whisper number for the street. it's priced to perfection and i'm not a owner. >> i own it and the track record it spikes or moves higher after five out of seven it's moved substantially higher after that. just look at the chart on the name i'm not looking for the apple watch. i'm looking for the capital return plan. i think that's what's going to move the market higher. it's up 18% year to date.

yes, it's front loaded but i still think it has juice. maybe gets the 140 level. >> tim has been right on so probably better off listening to him. the pattern we're seeing in apple is the same pattern september into december, tapering off around 125. wants to take the next leg higher and stay long the stock into the number. >> what do you say? >> i think the stock is pretty fairly priced here and for all the people that are putting the 180 numbers on it this and that, starting to put software and services ahead of hardware. stock again, wonderful company, but should -- 14, 15 times puts the stock at 135, 2015 numbers. i want to own it, want to see it pullback, 122 a level i would jump back in. 112 is the bottom for the stock. >> before we get to our final trade today we wanted to say good-bye and good luck to our page daniel, an amazing work, thank you for helping. >> never seen her do one thing on this set. >> every single page. >> never -- >> it's never funny.

>> next time it's going to be -- >> we got the pick of the liter. >> best ones. >> clearly the best. >> by the way, it's not the only good-bye today. >> what do you mean? >> where are you going? >> i'm not going anywhere. today we have to also say good-bye to lisa our executive producer. she's been a terrific team captain for "fast money," team "fast money." >> yeah, lisa. >> past 17 months, been an amazing producer, terrific teacher and better friend. so thank you, lisa. she's not going far. she's going to become the executive producer of "closing bell." "closing bell," you're now in very, very good and capable hands. we will miss you. yeah, lisa. >> we will not be the same. >> time fort final trade around -- she said love you. tim? >> i sold half my veil today, take profit. the trade is far from over. take profits where you have them. >> i like a way, awaw. the stock has been beaten up. look at the on-line travel industry the only fame that's not performing. i think an activist could come in and take an investment here

and see the stock trade higher. >> grasso, full circle where we started, the cloud play maybe not hidden cloud play, crm sales force. >> freeport, breaking out. bye, lisa. >> bye lisa. >> that does it for us on "fast money." catch us monday at 5:00. but did you miss the rally in technology? coming up on "options action" we have the name that is poised to pop. next week. stay tuned for that.

live from the nasdaq market site as a record week for stocks comes to a close, carter, are you excited? i guess he is. our guys are getting set up behind me. here's what's coming up. ... >> forget the apple watch or iphone we have the reason why apple is about to break out. and it's a thing of beauty. >> unless you like hot -- >> i'm so hungry i could eat a sandwich from the gas station. >> might explain why dining stocks have been on fire. except one. which is about to break out. we'll give you the trade. and talk about shocking. >> i'm edward kimberly. >> maybe not that shocking. we'll tell you about the sector that could surprise investors with next weeks earnings. the action