>> i like that enowns this fund despite what he's saying about shanghai for the last few minutes. >> what are you going to do? >> a lot of contradictions in this world, kelly. >> for a lot of people the question is going to be what are they going to do? but we'll leave that hanging for you guys. that does it for us on "closing bell." take it way. >> thanks, kelly. "fast money" starts right now live from the nasdaq marketsite overlooking new york city's times square i'm melissa lee. pete najarian, dan nathan, karen finerman and guy adami. one area of the market is spelling trouble for the rally. we will tell you what it is and how you can protect yourself. but first we've got breaking news on three major stories happening right now. phil lebeau is covering tesla's shareholder meeting which kicked off just moments ago. bob pisani is digging through a decision that could be one of the biggest ever for chinese stocks. and julia boor zinn is gearing up for the netflix shareholder meeting where the company could vote for a groundbreaking stock split. we start, though, with phil lebeau who is monitoring the tesla meeting as it is getting under way. phil. >> and melissa, this next hour could be interesting. elon musk last year made a few

comments that had people talking the day after the annual meeting. let's see what he has to say this year. here's a preview, if you will, of what we expect to come up within the next hour as elon musk is not only updating shareholders about the company and where it stands but also taking some questions from some of the investors who are at this meeting. first of all, the model x. an update on where the company stands as that new suv is going to be rolling out sometime late summer, early fall. we don't expect a whole lot of details from mr. musk regarding that but perhaps an indication as far as orders and where they are as far as deliveries and timing. also the government subsidy debate. remember the l.a. times article last week in which elon musk then called in to cnbc and said wait a second, these guys have got it all wrong, he will definitely have some comments regarding that. and the growth in the next year. where is it coming from? part of that will be from the electric play here. the power wall business, which by the way we're going to be

talking he says with greater clarity today in terms of what it will cost the end user for this power wall to be installed at their home. again, the meeting is just gepting under way. we're going to be monitoring it. as you take a look at shares of tesla in the last year, in particular pay attention to where this stock has been over the last month or two, trading at around or now above $250 a share. again, it will be interesting to see if there are any comments from mr. musk which move the stock even higher after hours. melissa, back to you. >> thank you, phil. we'll check back with phil later in the hour. let's trade tesla. fwhoefted the remarkable move in the stock since its recent lows of 181 or so, pete najarian. >> the model x and repreorders that's something everybody's waiting on. this move since late march has been spectacular to the up side. guy adami's been all over this thing since it bottomed out around 190. when you look at the implied volatility of the options just how cheap they are this is a great candidate, something we call a stock replacement. you get rid of your stock you buy the options. that way you can still be there for the up side run.

but if you're wrong and the stock ends up going the wrong way at least you have a defined risk to the down side and you have some protection. or you buy puts to protect yourself. but there are ways to actually trade around very interesting stocks like this with the kind of events that are in front of us. >> i'm going to take the other side of your trade because you're pro tesla right now with the firm break above 250. the risk to the down side right now unless elon musk says definitively that the model x launches on time for the third quarter. >> i would push back and say the potential risk is to the up side. here's a stock with 25%, 26% short interest that although it's gone up significantly it's gone up in a pretty orderly fashion since the end of march like pete said. there's been no reason nor shorts to cover because it hasn't had the capitulation moment. i think the risk is to the up side. and the strategy that pete's been talking about, he's been talking about for a while now, and you probably are better off doing that than owning the stock. i would push back and say i think the rhys sak to the up side. i do think we can trade up to 290s, the level we saw in september. and if there is a sell-off on anything he says you buy it. >> i think what's interest to go

is if he actually outlines a potential or the orders for the power pack or the power wall, it being the residential and the commercial aspect of it, that's something that analysts will nienlly be able to plug into their models because right now it's sort of a -- >> then they plug in and they may not like what they find on profitability. yesterday on this network bob lutz, former chairman of gm, he said -- and he is obviously full disclosure he's on the board of via motors which is a hybrid electric car company, or truck company. he said do not buy this thing, they're massively unprofitable -- >> he said that 30% ago. >> but the way the stock's moving, from 290 down to 180 back to 255 it could be back at 190 very quickly. so to me i think this stock has traded off a lot of really good news here. if you're getting into the story right now at this moment after this move i think the risk is to the down side. >> i think pete is really on the way you've got to play this because there's two stories. there's the fundamental business, what's happening in the car business, what's happening in the battery business, is there really anything there. or not. and then there's the momentum of

the stock which goes in and out. to really know how much you have at risk, you've got to deal with the options. particularly if the volatility's coming along. >> more on tesla as well as what elon musk says later in the hour. meantime to the other big breaking story of the hour. a major announcement regarding the chinese stock market. cnbc's bob pisani's got the details from the new york stock exchange. bob. >> hello, melissa. we're waiting for word from the world's largest indexing firm, msci, which will rule momentarily on whether shares in mainland china will be included in the firm's global indexing scheme which is used by fund managers and etf providers around the world. msc sxichlt other indeckers already include hong kong stocks in their indices but they don't include the much bigger mainland china market. that's because authorities there have previously restricted ownership of mainland china stock to chinese citizens. that's all now changing. the question is whether it's changing enough to satisfy msci and other indexers. this is a big deal for a simple reason. indexers rule the world. many investors are increasingly investing through these indexes, which are used in the 1600 etfs that are traded every day in the

u.s. and talked about here on cnbc. it could be billions of dollars come out of other emerging market countries like brazil and south africa and flow into mainland china stocks. let's take the msc emerging market index. this is about a trillion and a half dollars, 1.5 trillion, pegged just to this index. china's right now 25% of the index. but this is all china stocks that are just listed in hong kong. not mainland china stocks. adding mainland china could significantly increase china's waiting. this index is used in the biggest market etf, the ishares etf or eem. my guess is what's likely to happen doing this all at once will cause way too much chaos, so msci is likely to announce they will slowly add mainland china stocks to the index. the initial partial inclusion will likely add 5% of china's mainland shares initially. that would increase china's waiting by a modest 1% to 2%. melissa, if all of china's added the weighting could go up msci estimates to 37% china. by the way, get ready to own a

lot more chinese stocks here. and by the way, we have seen some increase in the amount of shares traded in some of the "a" shares etfs that are china-based. these are the mainland china ones. there's the ashr, that's the most widely held. these are all down today. the crane shares and one or two others that are actively traded. i'm not sure if there's going to be a lot of front-running on this, melissa. that's an interesting question. they haven't announced when if -- what time they will actually be added. i would suspect if something happens it will likely be about six months from now. so it will be a little bit of a lag in the time. but certainly some people will try to get a bit of a jump ahead of others. >> bob, just quickly. do you have a sense of what happens? because if you wanted a short eem that's a very easy bar to get. but to short china "a" shares in china is very difficult. >> how do you get the borrow? >> how do you get the borrow? and they've been trying to allow, for instance, mutual funds are large holders, to lend their shares for borrow. so what happens if they are included and it's much easier to short the eem versus the

underlying, what the impact would be on that. >> well, you could get some disparities potentially in net asset values. that could potentially happen out there. but look, all of this is very good news. down the road it's going to be easier to borrow and short these shares. the chinese government wants it. they're pushing very hard to integrate china into the world economy. and making their shares more available to the rest of the world is an integral part of their overall political and economic gain. i'll bet you a couple years down the road we won't be having this discussion. they'll be much more readily available. >> keep us posted. bob mipisani from the new york stock exchange. this is a major step forward for china. >> i'm wonder field goal it makes sense to do it in the future, to do it incrementally, but do they want a giant bang for their buck and would they consider doing it in a more, i don't know, forceful, less gradual way. i don't know. it's been trading so badly the last few days. it makes me wonder if somebody knows that not good news is

coming. >> interesting. >> eem, right? that's what we're effectively talking about here. if you look since 2012 the mid-point of this thing has been $41. you go back and look at a chart, it has been $44 down to $38 no fewer than five or six times. you're at the lower end. if you just look at it that alone you're probably toward levels where maybe it was a sell on news buy the fact type of thing. but it's getting to the low point of the range that it's held now for the last three years. >> great tool. i'm just going to say this real quickly. when you think about chinese listed adrs here in america, right? there's a lot of disconnects between what's trading there and here and sometimes there's some very big discrepancies in the value. i think the addition to a shares into the index and eem and etf that's readily available and very liquid is a great tool for u.s. investors who are looking to diversify and you're going to basically get the raw holding without the currency risk, without all the fancy things that karen have to do when they invest overseas.

>> it's a great thing if you're in favor of the china story. >> and if you're in favor of china story put on your seat belts bautz shanghai volatility over there trades at 40%. consistently over the last 52 weeks, six months, one month, whatever you want to look at. 40%. also look at the shanghai composite in terms of the growth this year, 58%, 125%, or 152%, rather for the entire year. this is something really that has to be taken into account. i think it adds a lot of volatility to eem. >> still ahead on "fast" the one sector that's hitting turbulence and could take down the rest of the market with it. the big reveal after the break. and chip wrecked. semiconductor stocks hitting major trouble this year. we hear from intel's ceo about what part of the world is hurting it most right after this break. plus what do hedge fund titans leon cooperman, david einhorn, and david tepper all have in common? they could force gm's hand in a major deal. we'll have a special report explaining when and how later this hour. much more "fast money" straight ahead.

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chip stocks facing major headwinds and that kicks off our top trades tonight. intel ceo brian kurzani clchlt

on the halftime report talking about where chip makers face the most trouble. >> china and emerging markets in asia continue to be soft. we're seeing some pickup there now but it's still relative to what it's been in the past relatively soft. north america, most of eastern europe looking strong. rest of the emerging markets kind of a mixed signal. and the consumer, the consumer's hanging in there but nothing's outstanding. >> you know, it's funny because since, dan, the intel altera deal the sox has had some trouble. >> the stock has sold off 10% since they actually finally came out and announced they're buying intel, or excuse me, altera. that was a very expensive deal not just on the price tag but valuation basis. it's important to remember in late april when these rumors started circumstance laithing the stock was at $30. down 15%, 16% on the year. and although it has that 3% dividend yield and a monster buyback and it's generally kind of a cheap stock, trades below market multiple, investors are having none of it.

so when you hear the ceo speak the way he does and make an acquisiti acquisition, their largest ever, and he's not too excited about anything going on, it doesn't make investors feel particularly bullish about it. i suspect you're going to see 30 again before their q2 print in july and i don't think you want to own it here. i think my man pete over here thinks otherwise but i think it's a bit of a value trap. >> but this buy doubles the size of the network, gets them in the data center area where you've got to remember short term you may be right. short term maybe it does hit 30 again. it's a possibility. no doubt about it. but i actually like the way it reversed today. it traded pretty well today, give or take, given the market, given how the chips were trading themselves. but again, the ceo is not looking short term. this is something that's actually a mapped out for them five years down the line. this is the growth area -- >> we talk about mcafee. this company five years ago. where is it in the revenues? low single digits. it was a very expensive acquisition and generally it was probably a big waste of money. altera a lot of stuff i'm

reading about it it makes little, little sense here for a company that is really kind of listless at the moment. >> timing is off on mcafee and cyber security one could argue. >> why couldn't they have executed internally in intel? huge secular shift. they missed the boat. >> the action, micron, another new low in the stock. drexel downgrading the stock just two months after it already downgraded the stock. >> they downgraded i think to sell from a hold. talking about continuing pricing pressure. that's painful. valuation is cheap but not that it can't get significantly cheaper. i mean, we've seen how volatile this space can be but i'm hanging on to it. drexel hamilton which -- >> drexel hamilton. >> not drexel burnham for the old crew. >> oh, no. drexel hamilton downgraded the stock. next up, wild ride for the airlines today. the sector initially getting hit hard after american airlines and southwest both warning that passenger revenue per available seat mile, prasm, a key metric, is expected to fall in the second quarter. but many of the names in the

sector reversed loss, higher on the day. is the would worst over for the group? ari wald head of technical analysis at oppenheimer checking out the charts at the smartboard. is that a good sign that they managed to reverse? >> for a trading basis, yes. i want to update some thoughts we have on the group. we were on cnbc's "trading nation" last week saying to stay away from these stocks, there was 10% down side in the xal. now we're seeing what the result is. and indeed, xal has broken down following this big top, failure to get above the neckline, and now we're at support. we're at support. it's the prior highs from last year. we're oversold. and you hit it on the head, melissa. this is a reversal day where we're seeing some exhaustion of sellers. however, it needs more time. and we think the high conviction trade actually is to sell any sort of bounce attempts in airlines. turning to delta, the biggest weight in xal, probably the one with one of the bigger tops and

breakdowns, staying away from a broken trend. $43. that's your neckline. that's where you want to sell delta. the leader in the space. jetblue. while the other airlines are topping, i think jetblue's consolidation is a little bit more healthy in nature. i think this is just letting off some steam. the pullback i think is where you want to start to build the position. but i think you can still make it back to the $17 level. these were the highs for jetblue going all the way back a decade ago. jetblue becomes attractive on the pullback. i'm just not sure, there might be a little more time needed here. >> all right, ari, thanks so much for that. guy adami, jetblue's been a favorite of yours. do you still stick by despite this volatility? >> it obviously has been volatile. we've been looking for the capitulation date in the space. you go back june 9th might be the day you say that was the day. i say that because look at delta today. pete was talking about it in the green room with me. this stock was trading with a 38

handle earlier in the day. reverse, closed effectively unchanged on more than two times normal volume. maybe today is the day. i would take it as a sign that we finally reversed, we blew some people out, maybe the up side can get back intact. out of all of them i still like jetblue the best although i really like the way delta traded today. >> i like it as well. guy points out 29 million shares today. normally about 12 million a day. certainly looks like a lost folks decided to hit the exits. as they hit the exits maybe that's the opportunity, stock hits upper 40. love this thing gets approach and put a couple back-to-back days together though. and the airlines, they've been broken since they broke those 200-day moving averages. they've got to find some footing. >> moments ago fda voting on a new drug that could be worth billions of dollars. we've got the details after the break. but first here's what else is coming up on "fast." >> announcer: are hedge funds about to force gm to make a deal? >> i think the lawyers have told me i'm really not supposed to discuss it. >> announcer: phil lebeau has a special report on why gm could be closer to a deal than you

think. plus, eddie is at it again. >> crazy eddie. his prices are insane. >> reporte >> announcer: not that eddie. talking about eddie lampert. and his latest deal has the chairwoman up in arms. she'll explain why and how you can profit in a special "finerman's fine print." that's all coming up when "fast" returns.

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welcome back to "fast money." bob pisani on the floor of the new york stock exchange. msci, the world's biggest indexer, says it will include china's a shares in its global benchmarks after a few important remaining issues have been resolved. they define these issues, there are three of them. first are quota allocations. second are capital mobility restrictions. and finally, daily liquidity. capital mobility is a big issue. remember, foreigners have been restricted in the amount of a shares. those are shares that trade in mainland china. they've been restricted in the amount they can own. they've been trying to change that in the last year or so. we're expected to have additional ways to have foreigners own these foreign stocks in the next few months. and i think that has been an issue for msci. this is a bit of a disappointment to people who were anticipating they might move a little sooner rather than later, but msci clearly

indicated they are not going to wait until next year. if they can resolve these issues, and i strongly suspect that if they can get this proposed shenzhen hong kong stock link in addition to the shanghai stock link that has already been in existence since november, that will deal with a lot of these capital allocation issues and liquidity issues that are out there. so again, they are not doing it now, but plan to do it in the near future soonz as these issues are resolved. melissa, back to you. >> at the same time, bob, in terms of the stocks that would be included in the emerging markets index, many more of them would be on shanghai versus the shenzhen, correct? >> yes. for sure. but remember, shenzhen is the really big one this year. shenzhen is sort of the nasdaq of china in that a lot of the real small tech companies are involved there. and this year when they announced that stock link that was out there, a lot of these tech stocks, the smaller ones that on shanghai took off, shenzhen also took off. shenzhen over 100% this year.

that's twice as much as the shanghai. so the expectation is that the shenzhen is the one where there's the most potential for appreciation. >> okay. bob pisani, thanks so much. so disappointing. it's not a no forever. but it's a no for now. in terms of inclusion. >> again, i think you hit on it. i think you're going to want to see some a shares in there. you're going to want this. if this is a vehicle you use to get exposure to emerging markets. i think you don't want shenzhen. that's going to be ground zero for a chinese stock market implosion when it happens in the next few years. and like bob said, it's up 150% in just the last year. it's nuts. >> fda advisory panel coming to a decision on a drug that could be worth billions. regeneron and sanofi. the details. >> after a lot of discussion the panel of outside advisers to the fda did vote yes that the risk-benefit profile of this drug from regeneron and sanofi called preleron supports its approval in some patient

populations for high cholesterol. they voted 14-3 yes. but then when they started discussing which patient populations it should be approved for that looked a little narrower than some people expected. they had approval for genetically defined form of cholesterol but then when you got into the areas for people for whom statins don't work well enough, high-risk patients having heart attacks or strokes can't get far enough on statins like lipitor, that was only 7-9 yes. 7 yes, 9 no. even fewer for folks who can't tolerate statins. so that may be a little bit conservative. it will be interesting to hear how the panel discusses the amgen competitor drug tomorrow. that advisory committee meeting starting tomorrow morning. but again, regeneron coming in with a positive vote but a potentially narrow patient population, melissa. >> meg tirrell, thanks for that. guy adami, how do you trade this? >> first vote, the 14-3 vote was expected p. as meg said the second vote was narrower than anticipated. the stock was halted regeneron

but just on valuation if you want to get back at brass tacks i'd rather own amgen with 14, 15 times earnings with potential up side of their drug than regeneron which has been on a monster run trading closer to 40 times. i think there's more down side risk in regeneron, there's still up side in amgen. >> we've got a market flash. change in the s&p. >> tobacco-related. we know that reynolds american is buying lorillard. lorillard already a member of the s&p, is now no longer going to be there. s&p, dow jones indices says the new company is qorvo. the ticker qrvo. it will replace lorillard in the s&p 500 effective after the close of trading on thursday the 11th. effective the open on june 12th. so again, qorvo, a wireless communications company based out of north carolina, about a $12 billion company, will replace lorillard in the s&p 500 because lorillard will be acquired by reynolds american, melissa. back over to you. >> dom, thank you. coming up, general motors ceo mary vara speaks out about hedge

funds targeting the stock. we hear directly from her right after this break about whether a deal is in the works. plus tesla shareholder meeting under way as we speak. we will hear the latest from ceo elon musk up next.

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welcome back to "fast money." the dow finishing slightly lower marking its first four-day losing streak since march. the ten-year yield touching its highest level since october. today's big mover was crude oil. it rallied 3%. here's what's coming up in the second half with "fast money." showtime for netflix. the media giant getting set to hold its shareholder meeting in just 30 minutes. and there is one key thing the company may say that could propel the stock even higher. we'll tell you what it is. plus jack ma says there's something he regrets about his alibaba and it has to do with the company's ipo. we'll hear from the man himself in just moments. but first tesla shareholder meeting well under way. cnbc's phil lebeau's got the latest. and phil, he's making some comments on the x i understand. >> and he has talked about the x. three to four months down the road is what he believes the first delivery of the model x will be. they're make the final touches on that vehicle. this is a live picture of elon musk talking at the tesla annual meeting. he talked about the x. he also is briefing the audience

there, the shareholders about the power wall which they just announced within the last month, melissa, clarifying in terms of first deliveries going to those who are getting a solar installation and we also expect him to perhaps do a little more clarification regarding pricing around the power wall. and then the question ever growth for teslas. you take a look at shares of tesla which are now trading above $250 a share. here's whaelon musk had to say ten minutes ago about deliveries and the expectation he has for growth over the next few years. >> it's really unprecedented for a car company to grow -- to have this level of percentage growth. we're going to try to maintain it for as long as possible but it seems, as i've said before, it seems likely that we'll be able to maintain a roughly 50% average growth rate per year for several years to come. >> he went on to say that it

will average 50%, melissa, in terms of deliveries for the next several years. didn't put a time frame on that. and he also said, look, it's not going to be exactly 50% every year, but on average over the next several years he expects the delivery cadence to grow by 50% every year. melissa? >> and phil, let's switch gears to general motors. sergio marchiani, the ceo of chrysler, reaching out to activist investors in gm about emerging automakers. >> this is the report today that he has reach reached out to some of the hedge funds that have positions in general motors basically saying look, it makes sense that there's consolidation within the auto industry. nobody disputes that. the issue becomes whether or not general motors is the right partner for fiat chrysler. mary barra at the annual meeting today was asked about whether or not gm and fiat chrysler maikz make sense. certainly in terms of scale and in a number of other ways. she doesn't think it makes sense at this point. swheerz h here's what she had to say.

>> we have scale. we've leveraged the appropriate opportunities where we can benefit from co-development. that's something we've been doing for several years. so when i look at it the focus that i have is truly on the general motors shareholder and making sure we execute our plan. >> and again, that plan does not include fiat chrysler. remember, sergio marchione, he sent an e-mail to moory barra saying look, there are some synergies, we should look at this and the cross-savings could be enormous for general motors. but gm is in no position right now to take on fiat chrysler at least in terms of the desire. it's not there. and i don't think it's going to be there anytime soon, melissa. >> phil, thank you. well, it's uncollar at this point which of gm's top shareholders have been approached by march yoeni. but here are some of the moat v most notable shareholders right now. david tepper's appaloosa management. david einhorn taking a 9.4

million share behind appaloosa. and taconic. and omega advisors took on a nearly 2 million share stake. carl langen is ubs's auto analyst. colin, could they force mary barra's hand? >> that's always possible. but to be honest i put it at a pretty low problem bilt. i actually think what mary said today is very accurate. i think gm is behind a lot of the other global automakers in terms of their global platform strategy. and they really haven't fully harnessed their own internal economies of scale. they have 26 platforms around the world today, and that should be going to 15 over the next five years. there's a lot of opportunity just inside the company. so fiat will clearly be a possible distraction. >> so fiat clearly wants a deal with somebody, if not gm. is there another potential partner in your view? >> i think it's going to be a challenge. this industry doesn't have a

great success rate with m & a. even though the economics make a ton of sense and i don't disagree with fiat's view around the need to actually create scale in cost. there's really no obvious targets i could point at this point. we'll see what happens over the next few months and years. >> i want to switch gears, colin, to tesla. in terms of the promise of the model x to be delivered in three to four months. that's sort of on the bubble of a q3 launch. is that good enough for a stock that's run 30% in the past few months? >> yeah. i mean, i think what people are really looking at for tesla is that they're delivering on their targets. and that is consistent with the target that they, you know, gave out at q3 launch in the last quarter. so people just want to see that they're hitting their targets. this gives confidence that the future launches, particularly the model 3 mass market car, will also be on time if they could continue to execute in the near term. >> colin, going to leave it there. thank you for your analysis. colin langan of ubs. a lot of trades here. karen, where do you go for gm? >> gm, i agree, i think it's unlikely. i think the board gives mary

barra a lot of room and a lot of time. and that group of shareholders together sounds like a lot. it is a lot. you gm together they're not even a d filer if they act as a group. that's a big battle. and tesla that doesn't sound terrible in terms of the delay. it's not like the dreamliner. >> that's true. >> it's a month. >> ford said in 2013 everybody was talking about ford. alan mullally stud. since then the stock has done absolutely nothing. it has held 14 a couple times. if for some reason after those great auto numbers it feels as if it wants to trade there again. but just on valuation alone i think you start dipping your toes in letter f. >> i think you dip your toes but the up side comes from gm. this is a stock that's had so many speed bumps in front of them, so many issues outside of what they'd really like the issues to be, which is selling cars, and i think this is a stock that very easily can reach 40 again. it had tumbled down. we know all the different reasons it had. but i think this is a stock at

35 trades really inexpensive and it can go to the up side. >> it may be cheap but it doesn't trade well when you think of how good those may numbers were and all this chatter about consolidation and the stock has sold off 3 1/2% from the highs earlier this month. it just doesn't trade well. i don't know what the heck's going on. maybe it's pricing in some peak stuff. if you're going to be long in here because i think it's cheap and you think there's a lot of up side throughout the balance of the year i'd use a $34 stop on this thing. >> let's button this one a would you rather. tesla or gm? >> i'm going to say right now the way things stand i'm going to go with tesla. and the reason i say that is i don't think this looks like a delay to me at all the. i think this is exactly when the x was supposed to be coming out. if they can deliver on those promises the stock's going higher. >> i'm with the pit boss. but we've been on the tesla bandwagon now. whoo, whoo. giddy up. >> ring that bell. >> we're less than 25 minutes away from netflix's annual shareholder meeting where we could get news about a major stock split. we've got the details next.

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away from netflix's shareholder meeting where some investors are hoping for a big stock split. just how big? cnbc's julia boorstin's got the details. julia? >> reporter: the most important thing to watch at netflix's shareholder meeting is a vote on a precursor to a stock split. netflix is asking sharltds to vote for a significantly expanded reserve of capital stock spanned spanning from 170 million to 5 billion on par with other silicon valley companies. netflix says it aims to recommend a stock split but it doesn't disclose at what ratio. sources close to the company say the ratio would be somewhere between a 5/1 and a 10/1 split. with shares up more than 400% over the past five years a stock split would make shares more accessible to retail investors as well as employees. today's meeting comes on the heels of netflix announcing it aquiertd distribution rights to brad pitt's movie "war machine" and on the company's expansion into southern europe. this all sent the stock soaring to a new all-time high today over $648 intraday.

all that ahead of this evening's meeting. melissa, back over to you. >> all right. thank you, julia. now, some out there may think that stock splits are irrelevant, you take one unit split it up. take a look at how some notable stocks have performed since their stock split. star bhoivthz recent up about 8% since its stock split back on april 9th. apple which pulled a 7 but exactly one year ago today is up 37%. mastercard. that stock is up 11% since then. going back a little further, exxon split in july 2001. its stock is up 94%. and finally, lockheed martin which split back in january of '99, is up a whopping 368%. now, if netflix announces a split tonight, is it a buy signal for the stock? is it yet another support for the stock? >> you just mentioned five of the premier companies. not that i'm ken show or tesla. we've been on this netflix

bandwagon. i don't believe the whole split thing either. but there is some credence to it. but i think the story alone is reason to continue netflix. the story being anytime you hear consolidation in any of these industries, all roads lead back to netflix. on top of the international growth that we talk about all the time. >> yeah, but you know, it's kind of a monkey play. >> what does that mean? >> i mean like to buy it on a stock split news. the stock was up 20 bucks today. if they announce it tonight and you're going to go buy if because in two months from now you're going to be able to buy seven times as many shares that have the same economic value? i don't think you chase it. >> time for pops and drops. big movers of the day. pop for lululemon up 11%. dan. >> pretty upbeat move. sentiment going into q1 was pretty poor. the stock had sold off 13% from the previous 52-week high made a couple months ago here. i don't think you chase it. i think the stock's going to see some resistance at 70 bucks. remember just about a month ago nike said they plan to increase

the women's apparel sales by $2 billion in the next two years. that's going to come out of lulu. i don't think you chase it. >> drop for burlington down 8%. karen. >> yeah, it was a miss on earnings from this retailer. a lot of the reasons that you've heard from everybody else. whether it's not getting the good cost, same-store sales down. they do talk about increased sales through the year but at a high-flying multiple like this ways think it's going to come in more ugly. >> massive drop for hovnanian down 10% to a new low, pete. >> yeah. and by the way, ken show. you're no ken show. i know ken show. >> he's a friend of yours? >> big friend of mine. these numbers were absolutely awful. they doubled loss. missed on earnings. missed on revenue. a couple of positive comments coming out from the ceo. of course you do that. 52-week weeks lows. i think the stock is a no touch even though it's off the lows. stay away. >> drop for t-mobile down 2%. >> verizon said not interested

in t-mobile. maybe not. it trades at a huge valuation compared to at&t. but john ledger, ceo you talk about stud of studs. >> stud of studs. implying he's the studliest stud. >> what's studly about him? he's prolific on twitter? >> huge disruptor. the stock 5 1/2% dividend. i think you buy this weakness in t-mobile. and i'm inviting john ledger on the show. right there. in your face there, sedan. >> he's welcome anytime. >> after the break we'll hear what alibaba founder jack ma said that shocked the world in a speech at the economic forum earlier today. that and much more. "fast" straight ahead.

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ahh... steve, other than making me move stuff, ces. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. 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. if i have another life, i would keep my company private. i'd do it not for myself. i'd do it for the shareholders, customers, employees. they need it. i don't need it. it's life is tough when you're ipo. before ipos are really tough.

now after ipo it's much worse. but you know, then we can help more people. then we can use our money -- when we ipo-ed, the company is more transparent. >> that was alibaba chairman jack ma today, talking about his regrets surrounding the company's ipo at the economic club of new york. now, alibaba has lagged its peers so far this year. down 15%. while u.s. competitors like amazon and e bay have widely outperformed. so do you buy this weakness? karen, you're already in this stock. >> i'm in. i've been for a while. >> disappointing, yes? >> very disappointing, yes. i'm hanging on. i'm patient. sticking with jack. >> it's funny because he was also asked why the new york stock exchange and he said because we were rejected by hong kong. >> which is absolutely amazing, right? i'm in there with you, karen. i continue to hold on to this stock. >> why? >> well, it's over the 50-day. and i think the reason it sold off was all of those issues with the counterfeiting, right? that -- >> they've gone away? >> it feels like maybe it will

slow down, i'm hoping so. because that's the entire impact on the stock right now. >> i thought it broke out when it traded over $91. i'm in pete and karen's camp. i do think there's more up side here. it's amazing that yahoo! can't get oust its own way here at 41 1/2, 42. but i think if you do believe in the baba story going back to '95, you've got to like yahoo! here at 42 bucks. >> programming note here. done miss david faber's exclusive interview with alibaba executive chairman jack ma. that's 2:00 p.m. tomorrow on "power lunch." in the meantime, alibaba attracting some bulls in the options market today. dan, what did you see? >> call volume was two times that of puts today. when you really think about what's going on today, the stock like you said has really underperformed chinese markets. and thoeftd most of these chinese listed adrs, these chinese internet stocks that have been parabolic of late and one of the things is trying find a new investor base. you had all these guys in late

2014 after the ipo and you've really seen a whole host of issues that caused some investors to move out of it. but today the most active option on the day was the july 90 calls. and that's also the biggest option -- the biggest change in open interest on the day. when the stock was around 87 it was a buy of 1200 of the july 90 calls, pegged about $1.65 for those. those break even up about 5% on direct expiration. let's look at the chart. pete mentioned it. 50-day moving average. the stock bounced on it today and actually closed toward the highs of the day. i think this $90 level is going to be a really important technical support level for it to get through and possibly hold as we get into the summer. i just want to make one last point about buying long premium trade structures to kind of express a bullish view in alibaba. this is implied volatility. the price of options has been low as they've been since the options were listed late last year. long direction trades with long premium is one way to do it to define your risk, especially for

a stock that's been underperforming and is as volatile as alibaba's been in the last few months. >> and you like baba, correct, dan? >> yeah, listen, this is one again, i think it's like finding a new investor base. i would much rather own stock of this company that's going to be around for a very long time here. so i think to these guys' points, they're not thinking about it in the next few months. they're thinking about legging into a position that they're going to own. this is going to be the amazon for the next ten years. >> thanks for that, dan. for more "options action" check out the full show 5:30 eastern time on friday. by the way in case missed it guy was periscoping dan at the smartboard and keith was tweeting guy periscoping. that's what's going on behind the scenes. which want to draw your attention to shares of sanofi. this after the fda backed a drug made by sanofi in partnership with regeneron. meg told bus this earlier but we do see this spike in the after-hours session. meantime, coming up on "mad money" tonight cramer will have

a lot more on this deal. the huge impact of fraud. plus making a bull call on the roller coaster retail. and going off the charts on all that correction chatter. "mad money" is next.

welcome back to "fast money." i'm phil lebeau. let's take an update of what's going on out in mountain view, california where tesla's annual meeting is taking place. in fact, we have a picture of the webcast streaming of elon musk, the ceo of tesla. he's answering a question regarding autopilot, which the company expects to put at least beta versions out with test drivers within the next month, perhaps by the end of this month. and he's explaining that the first versions of the autopilot, by the way, you'll be expected to pay attention even though you're on autopilot. also we want to note that just a few minutes ago he announced the cfo of tesla who's been there since 2008, deepak ahuja, is going to be retiring and he'll stay on while they look for a success ovr, a new ceo. but again, deepak ahuja, the cfo, will be retiring. two bits of news coming out of the tesla annual meeting which is taking place out in mountain view, california. melissa? >> thank you, phil lebeau. we should note the tesla shares in the after-hours session holding pretty steady at 255 and

change. stock closed 1256 today. sears falling after announcing another plan to unlock value but eddie lampert's past efforts haven't paid off. karen's got the fine print on this. >> they really haven't paid off and there's a series of them. land's end. that was something they were spinning out to shareholders. you didn't have to pay anything but you got a share of land's end or a portion of that share. if you held on to that and didn't sell it, you are down about 25%. then they tried to give you another chance at value. sears canada, rights offering. you got the opportunity to buy sears canada u.s. kind at 9.50. that stock now 8.21. then they tried something else. a package you get of debt and warrants. and these warrants are actually fantastic. but to get any of those you've got to buy the debt. where is the debt trading? started at 100. now it's at 92. those warrants, they're great but you only got a tiny amount of them. you're down money there. at although you did get some interest from the bonds. and finally today they're giving you the right to buy seritage

reit. this is a reit from sears properties with macerich gdp and simon. i'm just guessing. eddie said he's going to buy in like he has in the past. i'm just guessing this opportunity isn't all it's cracked up to be. i wouldn't buy it. >> so basically, he's bought into every single one but he's a billionaire, he can afford to be down. if you're just an average guy buying in it sounds like eddie's selling -- he's like i've got a bridge to sell you and people are like oh, yeah, i'll take it. >> he'll take part of the bridge that he's selling you. >> yeah. >> so i don't know. i think you've got to be very wary here. >> time for the final trade. let's go around the horn. pete najarian. >> eli lilly, some options being bought in there today. a couple weeks ago. the stock's skying higher. >> dan nathan. >> i like playing off 2900 level for bailish trade. i closed my bullish opths trade today. up about 8%. >> quairn finerman. >> myelin and teva.

both saying show us what you've really got. there's more to come in myelin. >> guy. >> risk reversal. nice job on that linked in. delta like the way it trades two times normal volume reverse adl. >> quid my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you a little money. my job is not just to entertain you, but to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. sometimes the world seems divided between companies that are doing something to help their shareholders a