moments. melissa lee, what's on tap? >> we're at records. what are the three stocks that are going to take us higher are? carton braxton worth will be here naming names. >> three stocks to take us higher. on that note we'll send it straight over to you guys. >> thanks, kel. "fast money" starts now overlooking new york city's times square. we have pete, gary, guy. tonight on "fast" why paying $127,000 for a tesla means you might have problems opening the door to get inside. a special report who called the all wheel drive vehicle, quote, undrivable. plus, the dow may have hit a new record today but we'll tell you why dow 20 k is much higher. we start with the news of the day. one of the world's biggest investors, carl icahn, taking to twitter saying it's worth almost its double ant. should be trading at $240 a share. here's a crazy stat. we crunched the numbers.

carl has made $3.2 billion on apple. that is 40% of what steve jobs was worth at the time of his passing. to the letter, he uses an 18 times multiple on fiscal year 2016 earnings. he names all sorts of things including a car, tv, you name it. it's a laundry list. >> throw it all in there. >> 12 pages worth of catalysts. >> you need to really. >> i think what's interesting about what carl's done here, first of all, it's come at a time. carl sabo. people were looking at the capital markets or capital reallocations back to investors was a big driver for the stock. carl is talking about tvs, i think a lot of people wonder whether the hardware is really the margin and the ecosystem that tim cook and ultimately his predecessor were talking about. i think if you look at the auto part and if you look at that part, people are at least extrapolating that, sure,

there's a lot more value here. the most interesting thing to me about carl's letter was the fact that the eps numbers he has for 2016 and 17 are more or less in line with the street. so he's not going crazy pie in the sky. he has the same number of cash per share. i think it's really where you start to extrapolate on where the other businesses can go. >> he specifically mentions the ecosystem, home kit, the health. all of those things. >> it's about the addressable market going forward. carl's reaching all the way up, not just near term but when you go out further talking about the automobiles. >> 2020. >> yeah, 2020. he's looking pretty far out there right now. you look at the apple ecosystem within itself. then go outside of the apple, mel, and what are some of the stocks playing really well with apple. serious logic establishing new 52 week highs. i think you focus on the near term. very strong. we talked about it earlier

today. we talked about how little penetration so far with the 6, 6 plus, into the asian markets specifically china. there is still plenty of runway right now right in front of us before we have to worry about the tv. >> the bottom line is he wants tim cook and board to buy more stock back. >> he does. if i were tim cookie don't know that i would hop to it when i got this letter. >> at this point? >> yeah. you know, they have moved a lot from where they were dividend buy back, that sort of thing. so aside from carl wanting the buy back and him being a big share -- i'm not really sure why -- >> it's there. >> why he did this. none of this is news to cookie would imagine. cook has a sense of what -- you know, where they expect to be making money. i mean, i don't think it changes the story in any way, but it's interesting that carl is being so vocal. i'm not sure why though. >> right. welcome back. >> well come back. thanks. in terms of price action, what the stock is doing, apple is doing what it basically did towards the end of november, end of december.

you had the big runup, subsequent selloff. it flat lined for a while. then it had the next leg higher. you had the big runup into may, early may, flat line for a while. now i think it takes the next leg higher. i believe the stock is impervious to bad news. you haven't had a lot of bad news. the stock, jim cramer talks about it, pete, you don't trade the stock, own it, put it away. i think what we wind up doing too often is we talk about the stock too much. when you talk about something so much you try to find the negatives. maybe the negatives just aren't out there right now. >> what i would say is i waited for this overly eboullient frothiness, i wanted to wait and see how the thing traded. i bought apple last week. it was my final trade last week. we had gotten a lot of that out of the way. i want to own this company. i see a valuation that's reasonable 13 1/2 times x bucks

in cash is not difficult to own if you feel like this is a company that is continuing, even as pete said some of the better part of the asian demand story ahead of it. >> carl, why did he write this letter? >> yeah. >> he's trying to show the catalyst, what's under the hood, what are some of the pipeline things. >> to who? >> to the general populus for those that don't believe in the story, those that think it's over valued, run too far too fast. whatever you want to say about apple. it's really interesting how carl wrote out that whole letter, i think, because some of what he was talking about catalyst wise, some of the geopolitical things, very interesting. >> yeah. >> scatter shock. >> when you get a letter written to the ceo of the country, you don't expect geo political rifts and the price of oil. it managed to find its way to the 12 page letter. >> let's bring in tony sakanagi. we did comb through the letter. we did find one expected reason. this is one we were referring

to, why he thinks apple will hit 240 bucks a share. the rising cost of oil, its impact on global warming, the geopolitical risks associated with global warming, followed more recently by the rise of cost effective alternatives presents a change the world opportunity for apple. it is widely believed that the electric battery will play a key role in this transition. toni, in your view as a research analyst, has this entered your model? has this entered a reason why you might want to buy apple at this point? >> look, to carl's credit, he's pointing to long-term opportunities, both in terms of the television and the automobile and saying there's a lot more. and certainly for most analysts, you know, modeling something that could be a product five years from now is not something we typically do. i think it's important to note that apple introduced the apple tv device in 2007 so it's been

eight years now. there's been rampant speculation over much of the last eight years that apple would come out with a television, that it would be a natural extension to what apple tv had started. and it hasn't. and apple is very, very deliberate in products that it comes out with and it only chooses to come out with things when it feels it request really make a difference and it has a very distinguishable product. that's why as an analyst i think it's very difficult to say, you know, we can count on a car coming out five years from now because, you know, apple is very discretionary about what it chooses to do and may put off for many years doing something until it feels like it has something truly differentiated. >> let's forget five years from now. let's just think a year from now. let's think 2016. is there a path in your view to $240 a share or is that pie in the sky? >> look, i think a $240 price target is aggressive over the next year. you know, i think carl has been

very thoughtful over the last few years in highlighting incompetent trin sick value in apple and highlighting capital return, but i think the near term and what the letter did not address is that apple right now is an iphone story more than it's ever been. iphone is 75 to 80% of the profits. iphone accounted for more than 100% of the revenue quotes over the last year. the rest of apple actually shrunk. investor worries are really around the iphone, that apple is enjoying a spectacular year this year. are they effectively pulling forward natural demand for next year? if you're enjoying that this year, then you may have the bubble burst next year, if iphones are down, the stock's not going to go to $200. so to me for the average investor and the average investor has a time horizon of 6 to 9 months, that's what they're

worried about and that's what they're focused on. is apple pulling together demand. it's a sensational product and want it and they may be upgrading sooner. >> tony, great to see you. thank you for phoning in. toni sacconaghi has $142 stock price. >> carl is the chairman of a board called icahn enterprises. iep. it is a tracking stock. if you look at it, that stock topped out at the beginning of 2014, end of 2013 at about $140. it's $91 now. a lot closer to the 52-week low than the 52-week high. instead of -- maybe he should focusing his attention maybe not on what apple should be doing, maybe they need an activist in iep. not knowing how the company is structured, there clearly is something wrong with the stock. if you were looking for proof

positive go back to may 7th. >> a sizeable holding is in fact apple. it has grown as apple has gone up. there might be an embedded discount because it's a holding company and not dollar for dollar. >> no. this is a horrible, horrible activist target because he controls 88%. >> the ultimate activist controlling stock. >> you know, it's really up t carl. >> defending against the people like him. >> yeah. so i think when you go back to apple, just to try to drop what carl said, i think if you look at his earnings numbers, the only difference really between him and the street is the treatment of the overseas cash. when he has 12 bucks in 2016 earnings, he's not that far away. so if people want to look at the other stuff and extrapolate and do a tesla 2020 anything can happen, that's what you need. they don't need to listen to him. i don't think tim cook cow toued. if you want to own the stock it's a very good multiple. as pete points out, as i say,

the china mobile relationship is an up to make fiscal third quarter refresh be very significant for apple. >> in terms of the applied volatility, is it as low as it ever gets? if you want to stay in this stock or do a stock replacement the options really play into exactly whatever -- >> is that what you have done or do you own the stock? >> no, i continue to own the stock and i wrap on top of that option and call spreads. >> news alert on starbucks. mandy drury has the details. >> hey there, melissa. starbucks is teaming up with spotify. what they call a first of the time music ecosystem. they're creating a multi-year relationship that links starbucks 7,000 company operated stores in the u.s. and 10 million my starbucks loyalty members with spotify's more than 60 million users around the world. how does it work? among other things it will allow starbucks msr to access

starbucks music on spotify also with the ability to influence in-store play lists which is pretty cool. the phased rollout will commence in the fall. here in the united states, melissa, followed by canada and the united kingdom. no doubt it will also be one of the topics that will be talked about later on today on "mad money" with jim cramer. howard schultz will call in. >> thank you, manldy drury. i took a check on pandora. not trading. >> close to 1831. tim mentioned this a week or so ago. we talked about that when the spotify came out a couple of months ago. that stock could be interesting. i think they're speaking at a conference tomorrow, jpmorgan conference, pandora is. i think there's still room on the up side. >> starbucks stock, may 6th traded down to 49 and change, high 48s.

stocks up 10%. every pull back has been a chance to buy the stock. howard schultz is the guy to follow. this news isn't a driver. it's multiple growth and those stores are actually getting a little more efficient. starbucks stay long. still ahead, google's mobile moment of truth. the tech titan adding five buttons. a look at what it means for the competition from amazon to ebay. the market mystery to end all mysteries. why isn't big box store walmart gaining? we'll look at their underperformance. with the dow records we'll look at the three stocks that will take us higher. that and much more on "fast." it's more than a network and the cloud.

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permits the purchase of 10 million shares. melissa, back to you. mandy, thank you. airlines of america, the largest airline trade association in the u.s., the largest number of passengers ever are expected to travel this summer. the group estimates 222 million passengers will fly on u.s. carriers between june and august. that's up nearly 5% from last year. tim. >> which many times means they might be adding seats and capacity which could be at the wrong time as fuel prices go up or you see weakness. a lot of people question whether the business environment supports that. i disagree. it's going to be about passenger revenue per average seat miles -- available seat miles, thank you, mel. ultimately that is where we think you need to see stabilization. lower fuel prices, they haven't been the head wind -- excuse me, the tail wind at least in the first quarter. fuel prices haven't gone higher. i think if you looked at the dollar, that may be a bit of a tail wind for these guys the second quarter. delta has had a very good run.

american is the place to play. totally lagged. jetblue, great company. we had robin on last week. huge run. i would stay clear. >> you're in delta? >> yes. >> okay. >> i would stay with jetblue. jpmorgan put a $28 price target. one of our themes in the fall would be that jetblue would catch up. delta airlines has topped out. yet blue has taken off, no pun intended. >> putting a little derivative trade, rental car companies, hertz. >> haven't they not been doing well? >> hertz is starting to increase prices and hopefully the whole consolidation of the industry, that theory will be borne out. >> jetblue is one of the most -- >> they've got levers as you like to say, levers. >> and it's unicentric. you don't have to worry about a lot of the other things of most of the major carriers. >> right.

still, i think there's plenty of up side. one of them is just the fact that richard anderson and matt crew, they're moving more and more towards a la cart. they have a lower end. that will be huge going forward. >> next up, go pro catching a bid after oppenheimer performed. it holds what it calls a long term negative bias. the basis for the upgrade being shipments in new markets. >> they talk about some of the notable head winds as well. this is a name that we've talked about on the desk many times. we talk about this being googles, kleenex. >> the revenues, growth margins. this is absolutely incredible. i like this name. i think there's plenty of up side.

>> oh. >> yeah, pete. good work there. i didn't know you could do that. >> look at him role. >> this whole nogs of being a brand name, you could have made the case for polaroid. eventually that -- >> this is very similar to me of what everybody says, why on earth are they going to pay for the iphone in china? why are they going to pay for more? we have the identical phone, looks like it, moves like it. doesn't have the same ecosystem, different company. when you look around the world internationally, people want certain products and they want a specific brand whether it's nike, whether it's apple, whether it's go pro. >> what do you think, ethan? >> i think they have a chance to get out of the hardware business. that was a $90 stock. we have been bullish on the way in october. i'm with pete. it's its own brand. a lot of catching up to do. >> i don't like the stock at all. that chart is very, very interesting. from 38 up to 53, 54. almost a straight line. look like it has a lot more to

go. >> i'd be afraid the brand is walk man. >> there you go. >> you still use your walk man, don't you? >> i walk home with a walk man. >> i like that mixed tape that you made in the 1980s. >> next up, google. they announce that they may be getting ready to introduce a "buy" button. when you search for a product on your phone, google's product listing app will let i order things directly, guys. >> which you would think is a good thing. the problem with google is pete just mentioned, it's an unbelievable brand. the stock has traded slightly lower over the last 15, 16 months. you wonder what's the next catalyst to get this higher. i believe in the stocks. i don't think it's expensive on valuation. the price action you have to question what's going on. how do you trade the stocks? personally you have to wait at this breakouts which we haven't seen for a while. if you want to buy it here the

stop loss level is $515. >> i'm long google. i like it here. i've liked it for a long time. last year nowhere, this year sideways. google suffers from being considered old tech. in fact, if it ipo'd today, this valuation hurts. >> yes, the risk reward on this multiple at 550, 5% down side. the chart will bear that out. up to probably 650 right here and if you upped it, talk about the deal last week the verizon/aol deal. the mobile ad deal that they will lead with facebook and are leading is a huge piece that people aren't considering. >> you if you want to talk about converting market, this is a cataly catalyst. >> the advertisers want a "buy" button, right? >> facebook, twitter, now suddenly google is getting

involved. if they can convert that traffic, they own it. they're 90 some odd percent. >> all right. up next, the real tell on the consumer arrives tomorrow. why hasn't the big box retailer seen a boost from the falling oil prices and could that be a warning to the market? the answer after the break. here's what else is coming up on "fast" tonight. >> still ahead on "fast." think dow 20 k is far off? think again. all it will take is three little moves from three large stocks. we'll tell you which ones. and -- >> you like me, right now! you like me. >> happy birthday, facebook. it's been three years since the social network went public, but we've got three companies that could be the next facebook. all that and more ahead on "fast money."

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weighed on margins in recent quarters. melissa, back to you. >> thanks so much, mandy drury. big decline but the stock has been doing doesn'tly. >> not really. if you look since march this was a $48 stock in march. now it's closed to 40. now here we are with 34.5, 35. i think it's on its way to 32.5. maybe it gets interesting. came in 18 times forward earnings. i think that's a tad expensive for the name. quarter wasn't great. short interest will grow tomorrow. tomorrow could be your capitulation. anything north of 20 million shares around it prints 32.5, you buy it. >> i agree with that. i wouldn't jump out and buy it. i think it will settle out. you'll have a chance to get it at a fair price. >> you've seen the stock traded at two different ranges. 32 hits the levels. we're basically sideways on a year with a lot to prove and a bar that's pretty low now. >> urban outfitters the latest retailer to get hit. tomorrow the largest retailer,

walmart. curiously enough walmart shares have not benefitted from the historic highs begging the question, why is that? senior managing director joe feldman is live to solve the puzzle. good to have you with us. have we seen that bump when gas prices have come down when it's come to walmart sales? >> we have seen sales pick up a little bit. maybe the stock hasn't. you know what, if you go back a little bit to the fourth quarter when they reported back in february, they talked about there was a big surprise to earnings for the guidance for 2015 where foreign currency, the raise in wages for their labor and then, you know, they've been investing a lot in the internet. that was almost 40 cents of hit to earnings that people weren't expecting. that's really what's caused the stock to suffer more so than what's going on with gas prices. >> it's karen. the stock is sort of a bit of no man's land. not so cheap, not so expensive. what do you think the bar has

been set low here? >> yeah. i actually do. i think walmart is set up where, you know, if they can come out and say, look, these expenses aren't having as big an impact, maybe they can adjust the guidance for the full year, maybe they put up a strong comp, everybody is always focused on the traffic levels. we're all expecting about a 1 1/2 same sales number out of the quarter. if that's a little bit better, that would be helped by a little gas price deflation that we've seen, that could help the stock tomorrow. >> it's tim. how about just some structural issues with the company? i was reading a report from scott mushkin. they were concentrating on ecommerce. they need to go back to being a price leader. this is what people need to see from them. what do you think of that? >> there is a big focus on the online part of the business and on grocery but all of that is because where the market's headed. i think walmart wants to be in front of that and to get in front of that.

i don't think it's just because of the pricing. i think they do have about the lowest price out there. all our price checks seem to show that, but i think the big issue is, you know, where do you take this business in the future and they believe that it is going to be more aggressive on grocery, have very aggressive prices but also online in delivery and pickup at store and have the flexible fulfillment that the customer is demanding these days. >> joe, great to have you with us. thank you. >> thank you. >> joe feldman. walmart does not seem like a stock that peter would trade. >> i've been in this fairly recently. i don't know if joe would have had an answer for this. they're getting beat up by the dollar names? >> yes. >> you look at how they're trading. they're actually all trading and pushing towards 52 week highs. walmart seems to be struggle bei ing, churning. >> hasn't that been the case? >> they're losing the pricing dominance. that's the bread and butter.

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later, home depot out with earnings after the bell. some traders thinking the stock is the tools to move by week's end. first the dow set a new record high today. what's going to drive them higher? carter braxton worth of corner stone macro.

he hashe three stocks that are going to lead the way to dow 20,000. carter, kick it off. what do you see? >> in a perfect world we would argue being long the dow and short the s&p. really the important thing is not just the outperformance of the s&p but the multiple. we know the state police is trading at 18.8 times and the dow is trading 15.8. if you were just to put an s&p multiple onto the dow, you're talking about 21,700, 3,000 points higher. let's take a look at the actual chart of the dow jones. a fairly good setup here. well defined, flat top if you will. lower highs. the presumption is some sort of breakout and a move to new high. what i wanted to look at is a few stocks that can lead the way here. the first is goldman. it's very similar to the setup of the dow. goldman has already started to break out so the breakout is new and underway. we would play this for another

10%. big name. it's the biggest weighted name in a price rated index. that's important. a second of three kinds of patterns. united technology, industrial. it's been a lager. this well-defined top at a common level, 120, the presumption is now that this cup and handle will be resolved and that we, in fact, break out and exceed the 120 level. then a third pattern, totally different and different business, apple. this is a stay long be long momentum kind of trade. we keep bouncing off of trend and each time you do that the presumption is you're going to make a new high, make a new high, make a new high and then make a new high again. these are three big names to the dow. we like them here. the implications are that the dow themselves will break out and we would in a perfect world be short the s&p against this trade. >> the crux of this whole thing, card carter, is that the dow should have the --

>> the dow is dominated by super cap names. the dow is close to the s&p 100 or oex. they have lagged for the better part of the last three years. if one looks at the relative performance of the largest stocks in the s&p 500, like the s&p 100, they have started to outperform over the trailing 30, 60, 90 days. we think that continues. that lends credence to being long something like the dow relative to the s&p. either way they should converge. >> carter, great to see you, thank you. >> thank you. so, in terms of goldman sachs, kre, right? >> yeah. the financials. i think the big financials, kre has been focused on more and more. we haven't heard as much about the big financials. goldman sacks over the last three or four trading sessions, new high, new high, new high. i appreciate carter since i'm long in their options with goldman sachs, but it seems like

it is breaking out. 202 seemed to be a level that couldn't get through goldman sachs. we close above that. if we can extend that, maybe there's an upside. you look at some of the names. phil's bank of america. >> yeah. you look at me. >> yes. >> i'm in there, too, though. >> of course i'm in there. i've been in there since i don't know how long i've been in there. i do know what it finally feels like. we are finally starting to see a little bit of momentum there. jpmorgan, citi bank's had a nice move. even bank of america is starting to show some life. >> blackstone all time high today. one of the things we said was the quarter is going to be outstanding in fixed income. it was. i think the company is doing everything right. i'm with pete on this. i think goldman goes higher. >> i like utx. they have overhangs for the stock. some of them are way overstated. it's a very, very well run company at a time in the cycle. >> time for pops and drops.

big movers of the day. wuevo down. >> a lot of people think weibo is one of the names that had the worst first quarter numbers. i thought they were really good. the relationship with alley pay is something people want to see more growth on. i would not jump out of the stock. >> green mountain coffee roasters? >> i think it's the same thing that was a drop on last week. traded very poorly on the new release. people thought about it, yeah, it's going to trade poorly on the new release. let's get this out. >> drop for endo pharmma. knocked it down 5%. it went from 60 to 100 until recently. today's move, 50% correction of that range on 10 times normal volume. here comes the fast fire in a week or so. i think you buy this stock right here.

>> self-inflicted fast fire. very honest. >> a week in advance too. skyworks, up 6%. >> a lot of it is on the the new switching. part of the internet of things and the application. this company hit 52-week highs. you look at their balance sheet, it's absolutely fantastic. the fundamentals are fantastic. plenty more up side. they ride on the apple. they have 110 in front of it in the first term. >> a pop for the president's twitter account. the president's twitter account is on this morning. he tweeted that has already attracted over 900,000 followers before today. he tweeted from the white house kd. mr. president, feel free to tweet us at cnbc "fast money." we'll read it on air. his account hit 1 million followers in just six hours. by the way, his first tweet was sent out by an iphone. >> a retreat from cnbc would help him double had a very

quickly, if president obama is listening. >> not that it matters, charlie sheen. >> he blocked it. he got to 1 million like that. no six hours. that's just a comment about the state of the world we live in. >> yeah, sure. coming up, starbucks ceo howard schultz speaks out in an exclusive interview after details of his new streaming service with spotify which just hit the wires moments ago. we'll hear from him when "fast" returns.

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starbucks just announcing a brand new partnership with music streaming service spotify. moments ago jim cramer spoke with howard schultz. cramer asked schultz whether more deals could be coming. here's what he said. >> over the course of months there will be a series of verticals that will expand beyond spotify. we thought spotify was the perfect first customer sequentially, one, because of the high degree of millennials we have, how important music is both to our own people and to our customers and how starbucks over the years kwinquintessenti has created an experiential brand. >> it's fuzzy, touchy feeley

sort of stuff. >> i had gotten done saying two blocks ago that i like the company. i think there are a ton of percs. the comp is up 10%. no one expected them to do that. unbelievable growth. to me there's so many places where i think this company is executing. i think if they get into mobile this is a major part of their business. >> do you think these kind of jbs matter to them though? seems like it's sort of around the edge. >> we've had this kind of conversation tonight. i think with starbucks it's a cult like stock for the followers. it's kind of like apple. people go out of their way, i am one of them, to go get a starbucks coffee. the whole loyalty program. they're looping people. some of their social kind of agenda. people don't like it. a lot of people love it. what they're doing putting kids through school. >> ecosystem. one of these apple ecosystems.

it's the food, the coffee obviously. then you throw in the tea. >> music. >> and the pay and all of a sudden the music comes in as well. music has been what coffee houses are. it's always been part of that whole scheme. >> yeah. >> got to admit, they try to do things for their customer base. they're trying to make the experience that much better. at a certain point the valuation will get in the way. i don't think they're there yet. trades towards 30 times forward. it's expensive but you can make the argument, it's a brand. >> when you look at the other guys trading at 40 and 50 times multi-till p. this is a much bigger business with scale. >> for more -- >> boom. >> catch the full and exclusive interview with howard's schultz at 6:00 p.m. eastern time on "mad money" with jim cramer. still ahead. facebook trading out its third year as a publicly traded company. plus, the one stock

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>> a bill dollars. >> that is a scene from "the social network." three years after its ipo facebook has a market cap of $220 billion which would be very cool. which private companies out there are destined for success like facebook. lou carter, good to have you with us. we're talking about completely different orders of magnitude. uber, we're talking about a valuation potentially of $100 billion at this point. >> yeah. i think that's right. what's going on, melissa, is companies are staying private longer and longer because they can raise all the capital they want in the private markets. companies are growing faster than ever. the private valuations we're seeing have really other than facebook never been seen before. >> does that mean that once these companies go public we won't have that sort of trajectory in the stock price that we've seen with others because they are private for longer? >> well, yeah.

i think it's unimaginable that you're going to see 100% ipo pops like we used to see back in the day. obviously investors are investing at these prices because they still think there's a long way to go in these names. >> we're showing a few or we have shown a few, uber, snap chat, taboola. >> i'm not an investor in either of them but i'm excited about all of them. uber is a name that people are talking about a lot. 40 billion plus market cap valuation. it's not replacing taxies. when i go traveling now i'm no longer renltding a car, i'm ubering where i go. >> it's karen. air bnb, where would you put that relative to the other names we have, snap chat, uber. >> air bnb, it's the renting

economy. people are renting out a car or an apartment that they own. i think air bnb has incredible growth ahead of it. again, they're growing the market. people are taking more trips now because there are more interesting places to stay at cheaper prices. >> lynn, it sounds like you're okay with the valuations so far in the private market for these particular companies. do you think that this is creating a bubble in valuation for other private companies? >> look, obviously we're seeing capital chasing after some of the leading names like an air bnb, like an uber, but, you know, we've yet to see companies come out at dramatically lower valuations than we saw in the private marketplace, even box which is a poster child for a company that they came out at 14, their last round was at 19. from a bubble standpoint, we're seeing some things that are pricey, we don't think there's a big bubble in the private market. >> are these valuations depressing or lifting any

publicly traded stocks out there right now? >> we're not seeing it. i'm not sure who uber might be hurting, maybe the rental car guys? i think people are renting less cars. we're not seeing a depression in the hotel stock from air bnb. we might in the future. again, what i think we're seeing is people are staying and traveling more often. so i think it's not a pie that's being split up, it's actually a pie that's growing because of these names. >> lou, great to have you with us. thank you so much. >> thank you. >> lou carner. he mentioned specifically the rental cars which you had just said you like. >> i do. >> are you concerned about uber displacing the need for renting cars? >> that is a factor to be considered. i wonder when we'll see something go public like a kleiner perkins? >> the people who invest? >> yes. >> that i wonder if that would be the top. >> interesting. >> if they would be looking to sell themselves. >> just like when we see private entity firms? >> guy.

>> do the valuations scare me, yes. everything points back to blackstone. the things they're doing in this world, they're so far ahead of the curve and the stock is catching up to where it should be. blackstone, the safe way is bx. >> i'm long blackstone, i agree with guy. i'll takes it back to facebook. somewhere around $81, i think the stock is ready to trade getting through earnings and a lot of expectations. sight, sound, motion, this is what they're getting from this, higher quality impressions. people paying more money for this. this is just the beginning. no one is touching facebook in terms of scale. >> i wants to go to another recent ipo, that would be alibaba. did poorly in today's trading. >> it's the whole area. this is the stock. until that started to come out, it's a stock that moved higher got through 100, 120. ever since this counterfeit

issue came up, it's the stock. private markets, not necessarily the bubble, but it's taking away the pop. >> home depot reports earnings tomorrow before the bell and some traders betting on shares moving higher. mike has the action. hey, mike. >> we saw well over 4 times the action in home depot. the most active options were the may 116 calls, over 6500 of those traded for 85 cents. this stock has mochd 2.8% on earnings and that's how much it needs to go higher. one quick point is this stock has had exlengths eps growth fueled by the buy back, wider margins and good top line growth. it is trading at a slightly larger ipo. >> thanks, mike, for that on home depot. we had two analysts on ""power lunch"" saying loewe's is more

leveraged to home and garden. now that it is spring planting season. >> it could be. i go to home depot for everything. i need a hammer, gardenia. >> gardenia. >> they are in season. they are blooming right now, grdenia. >> love gardenias. aromatic. >> potpourri. >> very true. check out "options action" at 5:30. we come right back. stay tuned. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade.

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time for the final trade. let's go around the horn. time. >> outperforming on emerging markets. take profits on tur. >> peter? >> we talked facebook a lot tonight. we talked about facebook a lot tonight. i think the stock is ready to break it up. we add some up side call buying. i think it's going up. >> karen? >> obviously we've had a big rally the last few days. i would have stayed long but i want to protect a little volatility. bought some s&p puts today. >> guy you were missed. >> i missed guys. >> i'm glad you're back. >> hockey in madison square garden. >> it's in the water.

>> pandora gets you done. you heard that spot si phi. >> i'm melissa lee. thanks so much for watching. don't go anywhere, "mad money" with jim cramer starts right now. starts right now. my mission is simple, to make you money. i'm here to level the playing field for all a investors. there is 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 a. call me at 800-743-cnbc or tweet me @jim cramer. too many of everything. that's right, too many of everything in the stock market and real economy so when we