comments off the conference call. and speaking of retail, children's place is a couple dollars off its 52 week high, but we'll talk to an activist looking for either change in management or perhaps a sale of the company itself. >> all right. straight over to you guys. >> live from the nasdaq market site, i'm melissa lee. traders are on the desk. tonight on fast, the apple tv mystery. the journal says apple is pulling the plug, but carl icahn reveals something he shouldn't have. plus walmart tanking, could it be good news for stocks? but first to the news of the night. yahoo!'s stock tanking into the close on fears that investors could be hut hit with a massive tax bill. dom chu has more. >> it's a tax implication here. we don't know exactly what it will be, but this is a bloomberg report and story saying the irs

may be looking at changing some of the rules and regulations that go into spinning off parts of the company. yahoo! hold as very large stake in ali baba and that stake will be spun off eventually or the plan is to be spun off into its own separate publicly traded company. now, what the irs has concerns about with regard to the report is that they are also going to lump in a smaller ancillary legacy business into that company with all of the appreciated shares and whether or not that should be taxed a different way. so this is very much about the irs and whether or not a certain company can just be lumped in with a certain group of other assets that have really nothing to do with it and how that may or may not complicate an eventual spin off of the company. shares did go up by about a percent going into the close in heavier than average trading, but still yahoo! drop was what caught a lot of people by surprise there. and melissa, we should say in that last minute of trading, shares it hit as low as 39 bpt

$12 in regular soeession. about 3 million shares. >> that was a dramatic move. and at the same time, that spike higher in ali baba. how did you interpret that? stock telling us it's a big deal. >> a couple rumors going around. also that tax free spins might be treated offshore differently, so that was one people were focused on. i just wonder as you start to hear rumors again. and before the company announced plans to do the tax free spin, there was talk maybe ali baba would buy yahoo! and that would be a more efficient way to have a foot hold here in the u.s. and some businesses that rparen't particularly working. >> a number of companies have announced spinoff, ebay, pay pal, danehar. none have as much on the line as yahoo! does. until you get clarity, i

wouldn't jump in right here. this could be 90% plus of the entire valuation. you have to wait to see. >> we've heard time and time again that the core business is basically zero in the shares. >> right. everyone thought of this as just it was a gimmee on everything else. so if you look to karen's point, hell of a lot of room to fall here and it's based on ali baba, period. that's it. ali ba ali baba down 15% year to date. yahoo! 18% and going lower are. so it broke through all moving averages. you have to wait a couple days. >> in terms of what you had mentioned the possibility of baba buying yahoo! stock moving higher tells me that's not on the table. sgri >> i think what is happening is people are starting to position in on baba. you're playing yahoo! to play baba plus you're getting yahoo! rest of the businesses -- how

there is uncertainty. if i want to play baba, i'm going into baba. >> last week yahoo! popped off of the aol deal. so people woere looking at yaho! as a catalyst for them. >> possible catalyst for baba trading higher would be instead of all the yahoo! shares coming on the network, if baba were to take them all in, then you wouldn't have that overhang. i don't know if that's the case. >> i see. okay. for more, let's bring in bob pecky on the fast line. what happens next? >> thanks for having me. first to your point on the fast. what happens next? >> thanks for having me. first to your point, whattic is important for investors is to look at the sum of these parts. if you took yahoo! japan and even taxed it 20%, it's about $7 a share. if you multiply it by five,

discount at yahoo! 7 1/2 takeout. and six dollars cash is about $18. even if you fully tax, $40 share price. mid point is $46 share price and if you take 0% ftax, you're talking in the 50s or so. so worst case is being priced in. >> so $40 is the worst case a area i don a area yoe. >> we think it's an opportunity for investors. you'll have event guys that may unwind positions. but you're getting the core for free. actually at a steep discounts. >> so you must have thought then earlier today yahoo!ed a 40 wherever it was three with the potential -- with this not hanging out there, wait a great buy. >> correct.

headlines come out of the office of associate chief of counsel for the irs. it it's unclear if it affects deals going forward or already in the pipeline. so i think you're just seeing event guys react to the headlines. but i think it's important to do that fuchndamental sensitive ma. >> if you go back to aol, where between you think the right bryce for yahoo! is this i heard the whole metrics that you slapped on it right there, but take today out. where was the right price? >> so the right price, we have a year end target in the high 50s. and that would apply a multiple to the core. similar to aol around that 7 times multiple. >> this is dan. ali baba has taken some stakes here in the u.s. and there was talk in the fall before the tax free spin was announced that they would possibly buy yahoo! to get those 290 million shares

back here and do something with that core. is that something that you consider and is it something that would be an alternative if the irs was to rule adversely in their favor? >> you yeah, it's definitely something that is feasible, but we don't think that's what alley ba about ali baba is looking to do. they're expanding their reach in geographies as well as verticals. >> this is bk. so back of the envelope analysis, it's been trading at a negative for a long time. why? i mean nobody -- we can all do the math. why is it trading there? >> it's a great question. one is this transaction ties up a lot of people until you come to fruition on how the transaction will go. but i think that public investors don't value yahoo! correctly, i wouldn't be surprised if private investors

do sf do. >> all right. bob, thanks. appreciate it. all right. so the one question that we need answered tonight is would you step in and buy. >> where i started on this conversation, i hear all his an until sis and i agree with all of it, he's a smart guy. always on point. but i think you have to wait a couple days on this. my three day rule. you have to give it. it's a slow week. people will be looking to push stocks around. >> well, if you thought it was great at 43 and this is really hanging out there still, i don't know why it's better with this out there at this price. i don't get it. i would wait. everybody waits. he's right. >> i was in the kamcamp of yaho.

i was al at 80 in the line of the sand. i'm more inclined to be there. but there is 1.5 billion shares coming off lock in september.sa. i'm more inclined to be there. but there is 1.5 billion shares coming off lock in september. so baba could set up for a pop above 90. >> but bottom line is don't touch it right now. coming up next, reports that apple t vcv has been scrapped. but the slip of the tongue that has apple fans in a tizzy. plus we'll hear from one of the largest fixed income asset managers. and later, yes, we can have it all. we have three stocks that are ready to deliver you big returns.

if you want to succeed in business, mistakes are a luxury you can't afford. that's why i recommend fast, reliable comcast business internet. they know what businesses need. and there's a no-mistake guarantee. if you don't like it, you have thirty days to call and get your money back. with comcast business internet, you literally can't mook a mistick. i meant to say that. switch today and get the no mistake guarantee. comcast business. built for business. welcome back. it's the first earnings report for etsy. and with only a handful of estimates, doing the best of understanding the details.

online marketplace posting revenues of $59 million. that is about it line with analysts expectations. posting a loss of 84 cents per share. etsy does say it has 20.8 million active buyers. 1.4 million active sellers. and while there is no second quarter guidance, it does note that a continued strong dollar will likely hurt international sales. a lot one time items, too. melissa, back to you. >> thank you so much. dan, you were rightfully down on etsy all this afternoon. >> yeah, here's the thing. a lot of these new ipos haven't had great first quarters out of the gate. they get trumped up into their ipo road shows. but this company should probably not be a stand along company. >> looking at one that is very similar, wayfair. also in the same space.

they also came public and first quarter out of the box big any. i'm actually a little surprised when comes do that. i know they want to get out the door, but you one did ter if there is exposure to doing a road show shortly after missing. >> apple kicking off top trades tonight. "wall street journal" reporting the tech company has dropped its plans for an ultra high definition apple tv which was originally thought to hit the market in early 2016. but carl icahn seems to think those plans are still actively in place. take a listen to what he had to say earlier today. >> obviously we're one of his larger shareholders and we talk from time to time. i believe they will do a tv. that's my belief. >> who do you believe? >> i believe carl icahn. that guy owns 53 million shares of apple stock. >> do you believe a car will come out by apple by -- >> i don't think those intimate

dinners that he had with tim cook that there was anything revealed there, but i think apple will do something on the tv. i think next month when we have the worldwide developers forum, they will focus on the tv service. maybe it's a wall, maybe it's not the 55 inch thing that you think of. maybe it's something different. >> i think that's what you have to look at. let's call it tv as a service or car as a service. all of these as a software type of plat the norm similar to all the apps. whether or not -- i don't think carl knows more than anybody else. >> doesn't matter, does it? >> it's not thin my thesis. carl has $14 billion. i don't. i feel like he's right, he wins. >> i don't think the refresh cycle really works for apple

with the hardware. i can see apple tv being rejiggered, but to have something hanging on your wall from apple i think is kind of a misfit for them. they're looking to upgrade this every year and a half, every two years max. they want this to change in your pocket. to take something off your wall doesn't work. >> you don't think they have to come out with something completely different? >> i don't think carl cares. the math works. you astronaput that 240 price t it, these numbers are getting there. next up, walmart falling, but could walmart's woes be good for stocks? maybe what we're seeing is money they are saying in gas prices an spending it on things not at walmart. >> this stock has had its problems. it's down 11% year to date. if you look at fx, fx alone took

out 14 billion from this company. so just understand karen and i were talking about earlier today, just understand the magnitude of this name, how much revenues that they actually generate. i would stay away from walmart right now. the dollars are obviously going somewhere else. >> but they're going to apple. i don't know where they're going, but not going to any other retailers. look at the disasters that we've seen just in the last week. we've seen urban outfitters, look at that list. t.j. maxx did a nice job and even home depot. but home depot raised their guidance for this fiscal year to what they basically had before when they cut it back in february. they bought $4.5 billion worth of stock already. so to me you have a lot of financial engineering here, you don't have a lot of sales growth. >> would you agree? >> i thought that the walmart stock reaction was kind of overdone. when you think about walmart a company this size, that was a very big move on what i didn't

think was a monumental miss for that big fx i realize. >> were you tempted? >> not really because it's cheaper than a lot of other things, but not so attractive to me. i do think, though, that the customer isn't spending at walmart and a lot of other retailers replenishing savings that we talked about. but i don't think that will continue to happen. i think that the american consumer just cannot stop spending at some point. >> and so then to me then you buy walmart. if that's what you're betting on a rebounds we haven't seen that spring rebound, although i would take the other side of dan on home depot, at least things are looking better than they did a couple months ago. so you buy to bet on the american consumer in the second half of the year. >> just one update. i did sell some may sis's today out of the money calls even though i love the name. but it's had an enormous bounce since last week. >> all right.

take a look at the home builders getting a boost today. up more than 20% from last month to their highest levels in seven years. so housing trade back on and has it hit the sweet spot? megan mcgrath joins us on the fast line. great to have you with us. you not the number wasn't so hot when you took a closer look. >> yeah, curb your enthusiasm a little. we know the census data can be quite volatile. and as you take a deeper look, three month rolling average, single family housing starts only up 3.6% year over year. also if you look at the regional breakdown on that same basis, two of the four regions still down here year over year. so is housing getting better? yes, but rid rising tide is floating. >> you did see some pretty pronounced reactions in the

stocks. what is the best way to play what might be an emerging housing recovery? >> we're telling investors that be selective, you don't have to rush into it get. this is typically a pretty weak seasonal time for the builder trade coming off of the spring selling season. so pick some stocks where you think there is a story here. either undervalued or they have an interesting story going into 2016. so we like toll brothers. we think their california properties will nix nicely for them. and we like kb home. if you really think housing will start to pick up here, then you want to buy some of these high beta names, the ones that have been yupd performing until now. and they're trading below book. >> megan, thanks for phoning in. >> i was in kb homes, but the problem is the catch up trade

where you think kb homes should start to perform. if you look at the house hold formation chart, this thing is a screaming buy for home builders. tomorrow broth toll brothers is up. we've been waiting for the correction trades. they haven't really happened just yet. so you want to playhouse i housu still with toll. >> broke through 292, 293 today. can come off at the end of the day, but you have a nice risk/reward set up here where 290 is probably the line in the sand. so you have $2 worth of risk and if we do get any type of housing recovery, or even if this is just a one or two offseason al, this this thing could go to a blow off top. so you're in with a $2 risk. >> feels like a snap back from some weak data. and when you kind of like back it out, you look at the other data, last week we had really poor retail sales.

haven't seen any wage inflation. >> 140,000 members or whatever it is, more of a survey versus real numbers. so i think this one today carries more weight. >> because of the other -- not just the retail. that's more interesting. but the kb homes, you do not chase that thing. that is in a massive down trend. i think it will probably see 12. >> don't do that. all right. coming up, we're heading to the cloud for the one stop that could see a massive 10% move on the back of earnings tomorrow. and here's what else is ahead tonight. still ahead on fast, higher rates are coming. but have no fear, we have two ways to profit and protect your money from the threat of rising rates. plus don't look now, but we may have found the holy grail. in investing that is. because we may have found the three stocks that are ready to

deliver you massive returns on both value and momentum. and later, a board room brawl that has investors heading to the children's playground. we'll hear from the activist investor who is trying to chase things up at children's place in a first on cnbc interview.

where should you put your money in arising rate environment? heather lewis is jpmorgan private bank's west coast director. great to have you with us. first of all on the rates question, in terms of the rise in rates, what part will we see? bumpy or a gradual ride into the end of the year? >> i think it will definitely be bumpy. there are disconnects between when the fed could raise rates versus where the market is expecting and all of that will create volatility. i think the ultimate direction could be higher from here, but to the extent that europe keeps quantitative easing and even adds to that program, that will keep a lid on yields.

>> and you like banks here in the united states. what wins out, rising rate environment here for banks in the united states or just the liquidity trade in europe pushing all stocks there higher? >> i think both. there are tons of cash on the sidelines right now. the flows into equities haven't been strong relative to bonds. and as you begin to see yields increase, banks look very attractive both financials, bank, regionals. it's good for their net interest margins and they're attractively valued on kind of a price to book basis right now. >> it's karen. let me ask you something. will we see the first spike up from mortgages, do you think we will see huge volume as people think, you know what, the low mortgage environment is over, that could be a good thing for banks only in the short term? >> i think there is a good probability of that because you've seen people get job, get raises in terms of increased wages. and you've seen people save money. we've seen it before, a lot of the gas tax in savings has

actually been saved creating a better ability for a down payment. so, yes, i think that as people get scared and see what was the end for a low right cycle there, could be a jump into mortgages. >> you saw the ecb reiterate their qe. and what did it do, it september o sent bonds down and the dollar much higher. are those potential headwinds?n sent bonds down and the dollar much higher. are those potential headwinds? >> well, i think that you have to definitely have to consider the dollar. and i think that the fed has especially as they have been thinking about when their first tightening will be. we just finished digesting first quarter earnings which while they were huge dollar headwinds, they managed okay. but going forward, i think you need to take a broader investment and say if this this quantitative easing is bigger than expected, should we add more to euro based investors just hedging out the euro as

it's so much better for european earnings. >> heather, we'll leave it there. thanks so much for joining us. taking a look at the charts, outperforming the s&p 500. >> and in this environment, you have a steep yield curve and bond yields potentially stabilizing here. really spiking bond yields is a problem. you potentially have mortgages, people won't take out as many. but if you can get stable steep yield curve, that's great. the other side of it, the dollar, look at what happened to oil. could be long xlfnd short xle. >> the best way that i've seen with charts to play arising rate environment has been the wealth management centers. so e-trade. dan jokes that i should be be the spokesperson, but stock up 22% year to date. if you're in arising rate environment, this stoill explods even higher. >> when we talk about the

volatility that we saw in crude oil in the dollar, in bonds today, massive volatility in massive risk assets here. and what do stocks do? closed flat on the day. at some point this has to come home to roost. we saw the vix. >> stocks closed flat, but banks did well. >> and they're breaking out. jpmorgan keeps going higher. but there seems to be building complacency here in the u.s. >> coming up next, we're serving up a triple platter as we hover near record highs. the 30 stocks that could appeal to both value and momentum investors. etsy, the stock in fact is tanking in the after hours session. conference call just about to get under way. we'll bring you the headlines.

still ahead, activism is much more than mere child's play. we're getting an inside look at the board room brawl over classroom clothes and talking with the investor trying to shake things up. plus the latest from etsy's conference call and their first public earnings report. and later, sales force has been

a huge source of takeover speculation. some traders are betting on a big move in earning tomorrow. find out how big. but first, with the dow and s&p 500 hitting intra day records, where can investors look to find value some d value? dom chu has three bargain stocks. >> these are momentum stocks. we figured for the fast money crew and trading guys over there, we want to hit some of the stocks that have a lot more value tilt associated with some of the names. so let's take a look at some of these guys. tesla, first of all, right now it's bumping right up against where it could be potentially. only about 4% away from where the average analyst target price is. again, 4% implied move higher. so it has a little bit of gain maybe to squeeze left. it has a nice amount of short term momentum, about 17% up side move if just the last three months. but it's been a roller coaster ride. just starting to catch a bit of a bid. also amazon.com, analysts think

here that we could see about 9% more potential up side if the average analyst target price is correct and it has gained 11% over the past three months. so a good at amount of three mo relative strength. amazon up 42% over the past years. and then big drug name, gilead, up with 8% higher. so it has momentum and you can see here the longer term chart as well showing some signs of strength here over the past year, up by about 34%. so three names, momentumish in nature. all it be modest. >> thanks so much, dom chu. steve, where would you go? >> if you look back on amazon,

you had the huge gap higher. it's closing that gap. almost 50% retracement. it has a little bit more room to fall, but amazon, you have to look at the cloud presence. i would still an buyer. >> quit thoughts on tesla. 250 seems a level it cannot hold. >> i'd say it's running out of steam. i think you'd probably see a pull back at 220. but i wouldn't be buying at 250. >> i'm actually long gilead. stock was up a few bucks, but that was a blowout number. because really the earnings thumb was fantastic and the stock didn't really react. now it's up about 7, 8 bucks. not expensive here. so i like gilead. >> type for pops and drops movers. go pro oigopro. >> upgraded. the street is liking it better now that it's had a huge decline

from last year's highs. i don't love it at 50 bucks. i think in the 40s it has some support down there. i don't think you buy it right here. >> big drop for intercept. >> if you want to play this type of space, ibb, everybody talks about rubbing out of gas. still up 18%. i'd rather play it that way. still above its 50 day moving average. rather than looking at binary events, intercept up 69% year to date. too risky for me. >> drop for trabs transocean. >> they had three idle ship, never a good thing. >> pop for royal caribbean. >> got an uptrade from jpmorgan today. this is why we were talking about analyst price targets. this goes from 66 to 77 in the last month. so in this particular case, you fade this move.

>> still ahead, it is a battle in the board room. the activist that one retailer described as erratic makes his chase for changes. [ male announcer ] your love for trading never stops. so if you get a trade idea about, say, organic food stocks, schwab can help. with a trading specialist just a tap away. what's on your mind, lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move, wherever you are. and start working on your next big idea. ♪ older son: father! he's doing it again! father: jebidiah, i told you, it's dangerous! jebidiah: but pa, i'm planning my retirement! don't be afraid of technology. use futureadvisor. the award winning platform that analyzes your portfolio and recommends investment decisions to help you retire sooner. signing up takes minutes and the advice is free.

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auto desk shares down in after hours trade. cut its profit and revenue forecasts for the year. the company says stronger dollar did hurt its revenue in all regions except obviously the united states. of course melissa, we all know or maybe people notice auto desk most famous for its autocad software. >> a lot of the software is used in order to design things and print things out. you've beening active in the tr. >> it's a complicated issue. everybody was so bullish about everything. in my way of playing it, it was always a thoughtful way of saying hugh let paewlett-packar ability to scale. i wouldn't play it with one of these smaller players.

although i do think m and a will happen in the short order. activist groups have taken a stake in children eye place and are proposing two members for the company's board. just days ago chairman wrote a let are saying the disowe denies have displayed erratic behavior and have a poor track record. one is john dustin, he joins us first on cnbc to respond. great to have you with us. >> thank you very much. >> john, can you hear me? >> i can. >> great. good to have you with us. thanks for joining us. first of all, let's just have you respond to that because saying you have erratic behavior and terrible track record, those are hefty allegations. >> you know, they resorted to mud slinging. it's clear they don't have much of a case left. we've laid out a pretty

extensive literature with facts about what has happened to the children's place over the board and ceo's tenure. gross margins are down over 500 basis points. inventory has declined. we've laid it out with a substantial amount of facts and they're indisputable. unfortunately, for the company and the board, all the major proxy advisory firms have assumed us. they said we made a compelling case that chain change is required. all major proproxy advisory fir recommended a vote for change. so we appreciative of the support we've gotten so far. we're pleased with how it's gone. really not much left for them to do, so they're starting to sling mud. >> and it shows performance under the ceo's tenure versus

s&p 500 and sews that the stock has actually underperformed during that time frame of the ceo tenure. stock is trading at $67 and change, just a couple buck off of the 52 week high. what do you think the stock should be valued at? >> if you look at multiples, stocks generally trading between six times and eight times ebitda. it's where i think the earnings power is and i think the company has left a tremendous amount on the table. again, ebitda declined dramatically, inventory turns have closed. we think this is a company that can more than double earnings. we layout our assumptions in our proxy material. so this company should be earning well north of $6. >> john, this is karen. i know your partner and i think you guys have actually had a really good track record of

being active in the retail space. a couple things that i think you for got that as a shareholder really pissed me off. one is moving up the shareholder meeting to earlier than it typically has been. the reason that you would do that if you're under a threat is to give john and his partner less time to go out there to speak to the shareholder base to support their slate. so that is really irritating. another thing that john has pointed out but the company didn't really reply to is the enor plus ceo pay package here. it has been ridiculous. i've often thought it would be an excellent takeover candidate. are there other corporate buyers out there that you think could have an interest here is this. >> i think there are a lot.

first thank you, i concur with almost everything you said.is t >> i think there are a lot. first thank you, i concur with almost everything you said.s th >> i think there are a lot. first thank you, i concur with almost everything you said. thi >> i think there are a lot. first thank you, i concur with almost everything you said.this >> i think there are a lot. first thank you, i concur with almost everything you said.his. >> i think there are a lot. first thank you, i concur with almost everything you said.is. >> i think there are a lot. first thank you, i concur with almost everything you said.s. >> i think there are a lot. first thank you, i concur with almost everything you said.. >> i t the shareholder date is an interesting one. they're not trying to let dissonance be heard. we believe they're misleading investors. we talked about the performance. they altered the peer group they're comparing themselves against in their proxy materials, they compare themselves against one peer group and their presentation they removed the six best performing companies and replaced them. it really is a self-serving action. we think they did just to try to put their performance in a better light and i think the results speak for themselves. >> john, we'll leave it there. thanks so much for joining us. we'll be following the vote on friday. >> thank you. we did reach out and invited children's place management on to the show. we got the following statement. the children's place board and management team have delivered on all fronts our robust quarterly results, capital rush program and share price performance prove that. we believe we are just beginning to see the impact of our

transformation plan and can realize additional benefits if our nominees are reelected and can continue to execute on our plans. >> isn't it interesting that they're just beginning, just now right when these two guys surface to be on the board? that's ridiculous to me. >> we'll continue to track the story. meantime etsy take a look at the shares, sinking in the after hours session. we where he down tbreak down th after the break.

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okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this. welcome back. etsy reporting its first quarter as a public company ceo chad dickerson on the call making a couple comments here. quarterly gross merchandise sales, $532 million, that's up 28%. that's the total value of everything that is sold on the website etsy. either city's reported revenue comes from the combination of promoted listings, shipping labels and direct checkout. 44% increase year over year.

active sellers increased 26%. mobile apps have been downloaded 25 million times again according to either significatheir ceo. more than 23% are using google to sign into the android app. again the call is ongoing. they have yet to take questions. right now it's just the team members going through some of those financial metrics. back to you. >> courtney, thanks. let's get to an analyst. buy rating in the $23 price target. tom, at this point the stock is down 18% after hours session lows. what is your biggest question? >> well, i think it's created a buying opportunity to the extent that i think this is a compelling marketplace company with multiple levers to pull as far as top line if you look at both extending the marketplace and then their seller services basically advertising pavements and shipping. so i think the numbers were good, not great.ements and shipping. so i think the numbers were

good, not great.ments and shipping. so i think the numbers were good, not great.yments and shipping. so i think the numbers were good, not great. my concern is the strong dollar is having a negative impact. we knew that they would ramp the marketing spend, but it also looks like they will increase their head count in the second quarter. so i think the combination of the strong dollar pressure and head count investment is putting pressure on the stock after hours. >> so strong dollar pressure, increase in expenditures going forward and the results were good and not great. is this a stock that you want to recommend owning at this point or do you want to wait and see? because it seems like it's extremely -- if it will trade off 18% first earnings report, maybe that's one you want to settle into. >> i look at it as an opportunity to buy a compelling company that has multiple levers again to pull long term growth and i think that you take advantage of the opportunities to get those companies when you can. i have a $23 target that is based on the at for the company to achieve a 21% long term adjusted ebitda margin. i don't think you have to get

too key on cute on this name. >> it sounds like you bought it right of the ipo and nothing but sellers since. way back on the facebook deal, people got excited, investor nightmare for months. >> if it breaks its ipo price, i think it's time to back up the truck. by comparison, facebook was under significant pressure from the ipo. so i think this one practical p ply doubled on open 37 so it's a compelling opportunity and i think the market is reacting to good not great report. i think this is a buying opportunity. >> all right. tom, we'll leave it there. $23 price target on this. anybody here question with tom? >> i think the one thing that you have to realize, it could have a yelp moment.

>> why would they go through the ipo, that book the time -- and then sell. >> oh, stop. from no, you stop. >> there is a risk to a headline. i wouldn't short it, but i wouldn't be a buyer of the name. i think other people barriers to entry are probably nil. >> so you leave it alone. >> i would leave it alone, but be cognizant of the headlines. >> the market is reacting to e fact that they will ramp up headline and market spending. without any return. so that is what everybody is concerned about. i think you have to let it lie for at least a quarter to see how that plays out. if this thing really is as great as everybody is saying, buy it at 18, but buy is on the way up when it's going through 18 with momentum. wait for it to bottom out.

>> salesforce.com reports earnings tomorrow. dan nathan has the action. >> implying a 7% move in either direction. that's in line with a four quarter average here, but here's the thing, today the stock had unusual options activity that people buying upside calls in june. and when the stock was 72 bucks, there was a buyer of 3,000 of the june 80 calls paying $1.70. they were likely closing a short position that could have been against long stock. maybe a yield anden hans the position. you'd ask yourself why would somebody do that, why would they go and reach out all the way up there and cover what was an existing short position. well, maybe they just don't want to cap the up side. the rumor would be $55 billion or $60 billion deal. if you look at the chart, that would place it well above these recent highs, probably between 80 and the 0. so you wouldn't want to cap your up side. and this is the price of options implied volatility. it's obviously had a massive

spike here. and i'll tell you what will happen. if there is no deal announcement, people will be selling premium to kind of take out some of the takeover premium in the stock. >> thanks. for more, check out the live show 5:30 p.m. friday. ♪ building aircraft, the likes of which the world has never seen. this is what we do. ♪

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time for the final trade. let's go around the who were. >> xhb, i don't think you buy into the housing starts number. failed again. i think you take profits or maybe even a short down to 35. >> brian. >> i'm going to be on the other side of dan here and i like whirlpool for a trade because if you get this renovation trade that is going on, excitement coming from home debow, this is the way to play it. >> karen. >> yes, i would like to see new direction on the place board.>>. >> yes, i would like to see new direction on the place board.th. >> karen. >> yes, i would like to see new direction on the place board. >> dupont. you have to use it as your stop. so that level it traded down to, 69.30. i'm still long the name. company will be forced to do

something even in peltz's absence. >> thanks so much for watching. catches again tomorrow at 5:00. "mad money" starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. i'm just trying to save you a little money. my job is to teach you and to coach you. call me at 1-800-743-cnbc or tweet me @jimcramer. sometimes making money in the stock market? it's as