guys asking? >> we've got a heck of a lot of earnings but obviously the clarity on the sms and what they're saying about revenue growth specifically for twitter. but we've got panera yelp, a whole host of others tracking the conference calls on and trading. >> good luck to you. straight over to you guys. >> "fast money" starts right now. live from the nasdaq marketsite overlooking new york city's times square i'm melissa lee. one of the biggest nights in earnings is here and cnbc's live team coverage continues throughout the hour. julia boorstin listening to the twitter call. just kick off right now. josh lipton is covering yelp. meg tirrell's all over gilead's conference call. plus one the top twitter analysts on the street suntrust's bob peck is here for instant analysis on all the headlines as they break. let's start off, though with the biggest story of the night and that is twitter beating on both the top and the bottom lines. the stock is seeing a wild ride in the after hours session. julia boorstin has more on the quarter and what to expect as the call gets under way. >> investors seem to like twitter's revenues and earnings beat. the big questions on the call will be about the slower than projected user growth. the company just adding 2 million users of its core

service from last quarter. also in focus any update on twitter's ceo search and of course guidance on upcoming quarters when the company expects its product overhaul and when it expects that to help start adding user at a faster rate. back over to you. >> thanks so much julia boorstin. what's our reaction to twitter? it's this whole mau-sms user growth quality which is really in question right now. >> to use your term it's interpret meh. we could see the stock unchanged. rallied 5%. sentiment was poor. i don't think expectations were particularly high. but those two numbers right there, that's the problem here. that audience isn't growing and until it starts seeing some real growth there advertisers just -- there's other places to go with much bigger audiences. listen, i'm long the stock. i'm sticking with it. i think there's a certain scarcity value about the product here. but a lot of things have to go right over the next few months especially in a market environment where internet stocks, and this is a $22 billion market cap are going crazy. ones that are ten times greater in value.

so to me i'm pretty unimpressed right here. >> isn't the bar kind of low -- and it's a headline away from saying we've got a new ceo, bam, catalyst in the stock. >> exactly right. and i think when you're looking at twitter right now one of the things that stuck out for me is how well they're doing in mobile. the negative certainly is the maus. it's not impressive at all. but it's about what everybody expected. when you look at mobile, now it's 88% of the ad revenue. that's pretty impressive. and i like that number. and i think that's what people are grasping to right now because trying to figure out how are they going to monetize and they're actually showing us how they're going to monetize, different ways but this is one of them and they've got to work on mobile very similar to what we did a couple years ago talking about facebook. could they get mobile? were they able to monetize it? it's exactly what they did. >> we'll continue trading twitter here. we want to bring in suntrust's bob peck has a neutral rating on the stock $40 price target to get his take on the quarter. bob give us some colors to the quality of sms versus regular monthly active users, why people are so freaked out about this number. >> yeah, so the core numbers there, they did about 304 million core.

we were looking for 302. they finished last quarter around 302. really not seeing much growth there. and particularly in the u.s. you saw no growth as well. obviously one of the big problems with the company is can they introduce new products to increase user growth as well as user engagement? the monetization looked good. the q3 guide was sort of weak and actually for the full year guidance which was raised slightly really didn't take the carry thru from the quarter. that's sort of down slightly in the back half of the year as well. >> but in terms of the quality of sms-only users versus regular active monthly users, give us an idea of how much of a lesser quality sms users are. >> so those types of users are typically feature phones typically based in india, much more difficult to advertise to much less data there to target. so they haven't given an exact ratio as far as what the percent monetization is to a typical user but it's something much much less. we just don't know the number right now. >> so bob, dan started off the show saying a lot has to go right with the stock. but a lot went wrong with this stock to get it where it is now. the fact that maus are where

they're at the fact we didn't see a bigger slippage is that positive for you? is this basically a kitchen sink enough for you to dive back into this stock? i know you that guys obviously have a rating on it already. but is this the place where you say okay the bad news is all out? we already know all the unknowns we think are out there. >> i think what you're seeing in the reaction so far is it's not as bad as feared. for us what we want to see is some of the traction on the products some of the traction on the monetization and see if they can actually grow this user base and that it can be a 500 million going to a billion-user marketplace or if it's going to be more of a niche around 300 million or so. >> bob, who would you like to see in the ceo role? >> it's a great question. right now i think it's between jack dorsey and adam bane. we've said publicly and written in our notes we think adam bane would be a fantastic candidate. we think whoever does do it though, it's a full-time role. and i think the search committee has also said they won't take a part-time ceo here. so our favorite right now is adam bane. >> we'll talk on bob peck a little later on in the hour.

meantime we have an earnings alert on panera. its report just out. let's get to dom chu at headquarters. >> what we have is a stock that's up about 3 1/2% on 20,000 shares of volume after hours. relatively light trade. we'll put that out there right now. earnings per share coming in at $1.61. that misses the average analyst's estimate of $1.63. also sales coming in slightly below. $677 million. estimates were for $679 million. comparable store sales for company-owned stores up by 2.4%. that's smack in line with analysts' estimates as well. also the company saying that its full-year guidance remains the same as it has been. so reiterating its full-year guidance for earnings as well. that's apparently not moving the stock very much. but we're going to take a look also at system-wise comparable store sales. coming in at 1.8% in terms of a gain. analysts were looking for on average a 2.2% gain. so if you factor in company-owned stores as well as those that are franchised the

total comparable store sales is up 1.8%. analysts were looking for 2.2%. nonetheless, you've got a stock that again we are showing some signs of life here. panera the last trade that we're seeing up about almost 7% now on 33,000 shares' worth of volume. we'll keep an eye on this bring you more details but for right now it seems like generally a miss on the bottom and top lines, a reiteration of the guidance but the stock is up 7%. back over to you. >> dom chu, thank you. what is this short covering rally? what's going on here? >> reminds me a little of chipotle too. it made a new all-time high after that report or butted up against it. but these are companies, or these are stocks that are trading at 30 times earnings and there's not a whole heck of a lot of growth here at panera. i don't see it but breakouts are happening in this market. >> " bit of an optimistic lead to this. panera 2.0. it's lagged the restaurant group. it operates in three segments. they're doing an overall in their biggest segment which is the restaurant group. it's probably $65,000 to rehaul each of those locations. so they're saying this could be

a catch-up trade. the market seems to believe it at this point. >> more on panera ahead. we saw a broad rally in the markets. more than 1% gains in the dow and s&p 500. that is the backdrop of all these earnings reports. really positive -- and what was remarkable about this rally was that it was driven by the beaten-down sectors. does that make it less convincing to you? >> no. i think what stood out for me today was ups. of all the names that reported i think that name stood out and i think the international segment really surprised people and the strength there and that was up 17%. there was a lot of reasons i think early on. then we saw oil turn and we talked about this last night. we were talking about how technically this set up very nicely when you look at the s&p bouncing off the 200-day. we looked at the health care names. then you get merck and pfizer and that didn't hurt today as well. but those names hitting off the 50-day. then you look over and see other areas, financials bouncing on the 50-day. a lot of technicals working in their favor today but i think ups really did give that extra fuel to the fire. >> i get that but look at energy. energy stocks up almost 3%. material stocks up 2%. >> yet the airlines were

rocking -- >> these are stocks trading with -- not good. into the session. >> i think it was somewhat of a relief rally. i wanted to see a tuesday where the market comes in, sells off, and then trades up. that is a much more i think solid base than coming in with it higher. so that actually did happen. we did start to sell off. that consumer confidence number was actually surprisingly weak. i don't know if that gives the fed cover to wait. i don't know. but we're just back to where we were five or six days ago. >> it does give the rally less credence when you started off with pete when you see energy materials and industrials -- >> freeport-mcmoran, right? recouping -- >> i think those names do stand out to me. absolutely. >> i just think guys use this -- out of the clients that i cover, these were pension funds, mutual funds, hedge funds, they were using this pop to sell. they don't -- we're still in rangebound market. as to pete's point. we did bounce off that 200-day pretty convincingly. but to me nothing has changed. you should be selling the pops. >> and i just think the underperformers today from the

s&p to the russell and to the nasdaq was notable. it was like 30 bips or something like that. so you know i don't think this market can break out if it doesn't have the leaders of the nasdaq 100 and that underperformance today is interesting. so in the s&p when you get to 2100 that's going to be your tell. if we fade we really are in this 2050 20100 until there's some event that breaks us one way or the other. >> we mentioned commodities. be sure to tune in to the halftime report tomorrow 12:30 p.m. eastern time goldman sachs's global head of commodities research jeff currie will join scott live. that's tomorrow 12:30 p.m. eastern time. as we head to the break, take a look at two other big afterhours movers. very different stories. gilead popping on earnings and yelp getting taken to the woodshed. the latest from both those conference calls. how to profit off it after hours, straight ahead.

welcome back to "fast money." i'm meg tirrell. check out gilead. the shares trading up after hours after a big beat on both the top and bottom line. the company in the midst of its conference call right now. hepatitis c numbers that really showed a big beat in the quarter. the company saying it has 90% market share in hepatitis c right now. 470,000 patients wofrldwide have

been treated with either harveoni or civaldi. the company also saying the hepatitis c market right now looks to be in the early days. however, it is saying that some patients aren't getting their prescriptions filled because they're having trouble with reimbursement. the company just saying that some patients are taking legal action against their insurers for not getting coverage. that's very interesting on the hepatitis c front. of course there's a lot of questions on the call about m&a. what's the company going to do? they're not giving a lot of guidance there but saying they have the capacity to do either smaller deals or larger more transformative ones. we'll keep listening, bring you any more updates. >> meg, you mentioned 90% market share for hep c for gilead. what was the previous -- is this a sequential build on market share? if so who do you think they're taking share from? >> hey, mel. i'm not actually sure what it was in the first quarter. i can look up those numbers for you. however, i don't think abbvie has necessarily been gaining much ground on gilead. it did come into the market after gilead did. so gilead a big lead on maintaining that big lead. >> all right. meg tirrell. thanks a lot. >> thanks. >> for gilead it's interesting

because a lot of analysts are saying oh the hep c franchise it's slowing. we've got the abbvie numbers last week that showed hep c numbers were disappointing and here we are. bam. >> bam. and this is the second quarter in a row at least where they've had really really great numbers. across the board, though. it wasn't just there at hep c. and i feel like gilead it's up nicely. it was up a few points today. but i think it should be up more. this happened last time they reported. very big numbers. the stock was up a few bucks and then a week or two after that started to really really move. we'll see the iub up tomorrow. gilead is a member there. but every company is coming out like a gilead like a pfizer saying we've got to do deals, we'll find the right deal. they're all going to be disciplined but they've all got to do deals. >> but amgen was up 5%. one of the biggest names on takeover spec. it seems a bit frothy here. i know you guys talk about valuation and you talk about a company that has 90% market share in hep c as gilead has here. but if you look at consensus estimates for next year for earnings and sales, they're

basically flat. so you have a stock trading ten times that. and this is a defensive sector. we get it. they're very cyclical based on these product cycles. we know this is a stock that sold off 20% in december when all of those fears about pricing were around. so to me i know it bounced off 100 last year and went straight to 120. here you are in the mid-point here. you're going to have the stock butting up against 120 again. i don't think you play it for a breakout right here. >> i do disagree because it's so shareholder friendly, when you look at them they've shrunk the share count 7% in the last five years. now you have 10 billion. they're going to shrink it even more over time. when you look at the growth -- and, by the way the hep c, now that they're approved in japan as well that's going to open up even more for them. this is a company that i think is not just about hep c. they still have the hiv as well. but if they do an acquisition, they've still got plenty of cash in the oncology world. the multiple trading ten times forward. >> but consensus estimates are calling for flat growth year over year. tell me where that acquisition is and where the growth comes

from. >> and that's what a lot of us are holding on is with that cash are they going to make an acquisition? >> earnings alert on akamai which is getting crushed in the after hours. dom chus got the details. dom. >> just to give you an update, we're watching closely fwautsz down 10% on over half a million shares of trading volume. this after the company reports its earnings and sales. the earnings come in at 57 cents a share. that narrowly misses analysts' estimates. revenues come in slightly better. $541 million. analysts were looking for $540 million. but here's the thing. on the conference call they gave weak sales guidance for the current quarter, q3 and that's what's really taking down this stock in the afterhours session. remember, these are shares up about 17% just so far year to date. up about 24% over the past 12 months. so a little bit of optimism perhaps built into these shares. but it's down big. this is the company that has a lot of these cdns or content delivery network services. basically in jargon in layman speak, it makes companies deliver internet content faster.

it's a cloud computing company. back over to you. >> dom chu, thanks so much. steve grasso. >> it makes internet companies deliver their online content faster. 15% to 30% of what traffics through the internet pipes. you're always shocked, maybe there's a ramp going on, maybe they're getting set up it's in the news they're getting set up for apple tv streaming. so maybe there was a spend on that side. i'm a little shocked at the sales but this stock does not spend a lot of time below its 200-day moving average. it's below it now. i would use the three-day rules in effect but i would use it as a buying opportunity. >> i agree. you can understand a little bit of the selling because of the fact that with the weak guidance suddenly everybody says you know, what we've had a great run, 17%, let's take a little bit off. i think you're right, though. this does create an opportunity. you don't have to do it tomorrow. you give it a couple days. >> as we head to break take another look at twitter still higher but backing off its gains in the afterhours session. we'll hear from interim ceo jack dorsey and cfo anthony noto later on in the hour. in the meantime here's what's

coming up on "fast." >> announcer: it's not just twitter and yelp dominating the headlines tonight. a slew of other big movers hitting the tape. and one of them could be signaling trouble in the economy. we'll tell you which one. plus facebook out with results tomorrow. and there's only one thing that matters to traders. we'll reveal when "fast" returns. a chance to try something different. this summer, challenge your preconceptions and experience a cadillac for yourself. ♪ take advantage of our summer offers. lease select cts models in stock the longest for around 399 per month.

the wild ride continues for twitter in the afterhours session. looks like we are at afterhours session lows now down more than 4%. looks like we could be breaking the $35 level. let's get back to suntrust's bob peck for his reaction. what happened? >> a big part of the after call was growth in maus. the cfo says they have yet to prove why someone should use twitter. this is going to take a considerable amount of time and they don't look for maus to grow in 2015. daily usage is also down fewer users, using it less, and then lastly he added on that advertiser demand remains weaker than supply they have. so don't look for that to take off in the second half of the year either. >> advertiser demand remains weaker which would imply advertising revenue would remain weaker as well? >> exactly right.

then ultimately it's about the engagements. if you don't grow the users and don't grow their engagement you therefore can't monetize and looks like 2015 will be a tough year to grow users. >> bob, we'll check in with you a bit later. thanks for the color on that. again, twitter afterhours session lows on comments about flat growth pretty much and m.a.u.s for the rest of the year. meantime also following yelp tanking on an earnings miss. josh lipton has been listening in on the call from san francisco. josh. >> melissa yelp with that surprise second quarter loss. also lowering that full year revenue guide. but on the call jeremy stoppelman trying to sound a note of optimism of confidence talking about the road ahead. take a listen. >> we will wrap up our marketing efforts and expect to spend approximately 20 million of that 30 million in the third and fourth quarters of this year. our tv advertising campaign will highlight the many different uses for yelp such as finding a mechanic golf instructor or restaurant. but we don't anticipate an impact on specific metrics in the near term we expect our

advertising programs will benefit awareness and therefore consumer usage over the long term. >> now, we also saw these reports, melissa that yelp at least for now has decided not to pursue a sale. analysts questioning jeremy stoppelman on the call about that. yelp executives simply saying they're not going to comment on speculation, they'll pursue fiduciary duty review formal bids as they come in. i'm going to hop back on the call, melissa, bring you more headlines as they cross. back to you. >> thanks so much josh lipton. already in the regular session yelp hit a fresh 52-week low. if it opens where it's trading right now, that would be yet another low. two downgrades going into earnings in just the past ten days or. so. >> if they get taken over they get taken over. if they have to go to tv to tell people yelp exists. all you have to do is do a google search and you see their stuff you that don't generally trust. it's a flawed business model and doesn't seem to be a low that's low enough right now. >> deterioration of the business is absolutely awful.

and strategic presents nothing right now. still trades at a 68 p/e. so there's all kinds of different issues going on here right now. i'm usually not a bear on very many things but dan, i'm right there with you. >> giddy up. >> what's amazing with these downgrades is they said the competition in local is much fiercer. and the only thing you see for yell subpoena a shift in strategy, which means an increase in spending. not good things. >> i never think a company should say that they're not looking to be acquired. let it go. i don't think you need to do that. because that was a lot of the pop in the stock, we had shorts cover but the competition is out there. priceline bought open table. google bought zagat's or zagat, however you want to pronounce it. amazon's out there in competition. i always thought this was a crowded trade and now it's coming to fruition. >> i don't get that in terms of fiduciary duty for a ceo to say we're not interested, we're not going to do it anymore. >> i think there's a few reasons to do it. one you don't get badgered with questions all the time. and two it sends a message to your employees, we are not for sale, we're moving ahead, this

is what we're doing now. i think that's an important focus for them. >> but switching strategy that you brought up that's a very dangerous endeavor. >> still ahead, facebook earnings on deck tomorrow. the stock is up slightly on the back of twitter's beat. you won't believe how much the stock is expected to move on tomorrow's big report. we'll give you what you need to know. plus, more "fast money" on this big earnings night when we return.

welcome back to "fast money." looking at twitter shares off session lows 35.15 is the last trade down 3.7% recovering a little from the comments of ceo anthony noto about flat growth and low wrer than expected advertising revenue. want to check in with suntrust's bob peck who's been on the call. any new developments here? >> a lot of questions on the strategy, how you're going to grow the user base, how you're going to grow the engagement from each user as well. the product cadence, what are the products that are going to get people there. and one of the big questions as well is the ceo, is jack dorsey interested in being ceo, how's that process going and ultimately how do you get executive stability in the organization to and get the right team in place.

a lot of questions about the execution of growing these maus. >> what has dorsey sid? >> he has not answered the question yet. >> and he has not answered -- so he's been asked the question but he hasn't answered? he's deflected it? >> he hasn't been asked the question yet. it's what people are focusing on. it will come up. >> i'm sure it will. thanks, bob. >> thanks. >> what when you saying about dorsey as ceo? >> i think bane would be disappointing. he mentioned bane and dorsey. i think both would be disappointing. i think if you announced that right now i think the stock would sell off. i do. >> you want somebody from the outside? >> i think a lot of things. >> reporter: working there. one thing that's a positive is i think they've lowered the bar for the balance of the year. i don't think expectations are very high. but i think the next big headline is going to be that ceo and i do believe if either one of those two guys, and we'll check in on that day, i think the stock goes lower. >> interesting. in the regular session twitter shares were up 5.3%. looks like now we're we are going to break the $35 mark. >> and i'll tell you what. the options market dead wrong on this one. they were expecting a huge move 12 maybe even up as much as 15% depending on what you were

looking at. but i'll tell you what, bob's talking about a lot of different metrics that are not working right now. one i'll keep an eye on how do you get sticky? how do you get people to stay there? >> we do have some breaking news right now on dow component procter & gamble. cnbc's david faber's got all the details. >> thanks very much, melissa. we can confirm something the "wall street journal" had this morning, namely procter & gamble has announced that david taylor will become its ceo effective november 1st replacing current ceo a.j.lafley. of course mr. lafley in his second go-around if you will in that position at the company. mr. lafley will remain as chairman of the board of directors but will step down as ceo on november 1st to be replaced by the 56-year-old mr. taylor. many have pegged him as a front-runner for the job for quite some time. certainly as of earlier this year when he received a new title running the beauty grooming and health care businesses. he's a 35-year veteran of procter & gamble which has had

its share of challenges over the last couple of years, not the least of which of course has been the stronger dollar but also simply getting organic revenue growth out of its wide array of brands. those brands by the way, have been paired under the leadership of mr. lafley over the last couple of of years. and he will now be handing the reins over in a number of months to mr. taylor. we are joined by the aforementioned a.g.lafley on the cnbc news line. a.g., are you there? >> i am david. good afternoon. >> good afternoon. we're pleased you could join us. why did you as the chairman of this board and the rest of the board choose david taylor as your successor? >> well, it really ended up being pretty straightforward after an incredibly disciplined and thorough process which

involved outside advisers appropriately, an outside search firm and a thorough search of external candidates and vetting of internal candidates. the directors came to the conclusion that david was the person to take us forward through this transformation, which we're well into operationalizing and executing. it's fairly simple. david has a broad array of experience around the world, across our businesses, and he delivers consistently. and that's what we're looking for, someone who could operationalize strategy with excellence, someone with a real track record someone who's an outstanding leader that people will follow. >> you mentioned the transformation that's been taking place at p & g over the last couple of years since you rejoined as ceo in may of 2013.

is that transformation which of course is included pending sales of almost $20 billion. the divestiture, as many as 93 brands and a lot of the revenue that goes with it. is that transformation completed? >> in capitalism the transformation is never done. but as john moller and i said several times, this is 95% to 100% done for the foreseeable future. and as you pointed out, we have moved to a company of ten focused core businesses. these are businesses that we understand. these are thare currently the worldwide leader with a lot of up side. these are businesses that play to our strengths. these are businesses where consumers buy our brands customers support our brands and we generally have done a good job of leading product

innovation and executing wealth. so if you step away back and say we've moved out of about 4% or 5% of our profits 15% of our sales, probably 40% or 50% of our complexity so we have a much simpler, much easier to operate, much more strategic business going forward through the end of the decade. >> a.g. there are no shortage of people or certainly a number of them, bernstein amongst them. but a number on your most recent analyst's call, your last earnings, who say it's still not enough. and if i could quote from the bernstein report that came out not long ago, if lafley can't run this complex business easily and improve it perhaps no one can and perhaps it should be broken up into three or two major companies. do you agree? if you can't run this complex business easily and improve it can no one?

>> i think it's not the right question. i think the question for us is always not what businesses are you in but what businesses should you be in? what businesses play to your strengths? what businesses can you uniquely serve markets and consumers and frankly win? and by the way winning is measured. and we've been very explicit about this. in terms of operating total shareholder return. and that's very simple. it's operating cash flow productivity. it's your operating profit and margin progress. and it's your sales growth. so i would say we have selected businesses that are a good fit for us and that we have operated well. and now the proof will be in the pudding. >> and so mr. taylor is handed this portfolio that you have pared down significantly, and now it's his issue to actually get the organic growth that investors have been looking for?

>> okay. the first thing that we have to be incredibly clear about, especially at a company like p & g, is we have a p & g strategy. okay? and everything that we've done in the last two years plus has been the result of the best thinking and careful deliberation of everybody from our directors to our management team to a whole bunch of outside and inside advisers critics. okay? and supporters alike. so we listened. we debated. we discussed. and in the end we decided rather i would say expeditiously, we locked on to a plan and a program and a strategy moving forward. so yeah. david is going to be operating and executing with me the next 95 days, and then he'll be

picking up the baton. but it's a p & g strategy. he was involved in it every step of the way. as were some of our other colleagues depending on the industry for the region. >> specific to you, mr. lafley this morning's "wall street journal" in writing about this pending change also spent some time talking about your latest tenure as ceo and quoted some people saying that you were impatient with the company's bloated operations, its long and numerous meetings and its top-heavy management structure. that according to current and former colleagues. is that true? >> i think impatient is probably a good description of me. but i don't think i've changed. i think i was impatient when i was 8 years old and i'm just as impatient at 68. look those are the "wall street journal" characterization of the company and i'm not going to comment -- >> did you change though? did you change, you know over this last two years? was it a very different approach

for you than during the, what nine or so years that you were ceo during a very successful period? >> i don't think i changed, david, fundamentally, but i obviously benefited from four years away. and i benefited from nine to ten years of experience doing the job. right? but you know, you learn as you get more experience on the job, and i was away and i worked on everything from private equity at clayton jubleer and rice to venture capital to some work with corporates and industries other than our own. the other thing that i think is really important to understand is that conditions change. we had one set of problems and opportunities in 2000, the first time around. the company had another different set of problems and opportunities when i came back in mid 2013. and you just have to adapt.

and you have to be agile. and you're constantly working back and forth trying to understand what is it going to take to win in the market with the consumers you're going to serve, with the brand assets, products and capabilities that you have, the people that you have, and you have to get very realistic about what you're not going to be doing anymore. and that's what we've tried to do. are we leaner? yes. we're leaner. are we more productive? yes, we're more productive. are we more innovative? i believe you're beginning to see innovative new products coming in business category after business category and you will see more which i'm not going to talk about today for obvious competitive reasons. but if you don't get better -- you only have one choice in this world. you get better. if you want to compete you've got to get better every day. and that's where we're headed. >> and finally, a.g. of course not many people get the opportunity to lead a company like procter & gamble once let

alone twice. what do you think your legacy is going to be, particularly as a result of these last two years that you served as ceo? >> well, i hope in the end -- first of all, i'm a bit uncomfortable commenting on my legacy. okay? because as i said this is p & g's next chapter. okay? or new chapter. you don't hang around for 178 years unless you can continuously change and rejuvenate. but i hope it would say two basic things -- that i helped the company make the choices that it needed to make to be successful and win in the foreseeable future and secondly and this relates directly to david, i helped the company select the leadership not only the chief executive but also the leadership for the function that's are going to help our management team and organization

achieve the results. >> well, a.g., we appreciate your taking the time to join us of course. along with this important news of a change in leadership. a.g. lafley chairman and ceo of procter & gamble. send it back to you, melissa. >> our thanks to you, david faber, with that "first on cnbc" interview with the outgoing ceo of procter & gamble. let's get down to brass tacks, though. when you take a look at this stock compared toyotas peers, colgate, clorox kimberly clark, year to date as well as the past 12 months this has been an underperformer. dan, you actually own this shockley to me you own p & g. >> i own puts in p & g. >> that's something else. >> they report thursday morning before the opening. and here's my take. david said it. they still have 60% revenue exposure overseas. a ton of emerging market exposure. and now this piece of news puts uncertainty into it. it's going to take a while for them to turn it on. i think it makes a new low below 78 in the coming days. >> we want to check out some big social movers that we are following. twitter hovering near afterhours

session lows. yelp getting crushed in the after hours. after the report. coming up we hear straight from twitter ceo jack dorsey and cfo anthony noto on what they expect for user growth the rest of the year. much more "fast money" straight ahead. i thought you said you were gonna test drive this buick first. i am test driving it. for 24 hours. where's the salesperson? at the dealership. nice buick! i guess that test-drive last night went well. actually, i'm still on it. you know, we're test-driving this buick for 24 hours, right?. yeah. so what are you doing? test-washing it. okay, well let me know when you're done, i'm gonna take it test-shopping. introducing the buick 24-hours of happiness test-drive. it's on your terms and a better way to take a test drive. need to hire fast? go to ziprecruiter.com and post your job to over one hundred of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. and now you can use zip recruiter for free. go to ziprecruiter.com.

i got a glimpse at the worst earnings report of the year. want to know which one it is? stay tuned because i'm revealing it next. plus what the market's fear index could mean for your money. "mad money" is next! welcome back to "fast money." i'm julia boorstin reporting on twitter's earnings call. the shares turning negative in the midst of this call after cfo anthony noto warned that

twitter's challenge growing users isn't going to get better anytime soon. here's the comment that sent twitter shares trading down. >> to be clear, however, we do not expect to see sustained meaningful growth in m.a.u.s until we start to reach the mass market. we expect that will take a considerable period of time. what i can tell you today, though, is we will be bolder move faster, and raise the bar on everything we do to unlock value for shareholders by ensuring disciplined execution. >> that shot is from the periscope that twitter is showing of its earnings call. meantime interim ceo jack dorsey saying he's not satisfied with twitter's user growth. he's talked about he's realized just how many changes the company needs to make and how he's focused on simplified twitter's service and communicating that value with a new marketing strategy. >> over the past few weeks i've had a chance to get a deeper understanding of where i need to focus our team. we need to do three things. one, we need to ensure a more disciplined execution. two, we need to simplify our

service to deliver twitter's value paster. and three, we need to better communicate our value. >> on the up side cfo anthony noto said he thinks twitter's ad load is currently just one third of where the company sees it over the long term. he also said there's plenty of room to add new advertisers to the service. melissa? >> all right. thanks very much julia boorstin. let's check in with suntrust's bob peck. bob, you know anthony noto said he doesn't expect growth in maus for a krshl amount of time. any clarity on what considerable means? >> the only thing he said was through the end of 2015. so after that it will be based on their products their product cadence, and how that ultimately resonates. they talked about increasing ad r.o.y., increasing engagement. jack did answer the question about the ceo search and actually said no comment, but at least the question came up. we think the story's going to be a show me story for the rest of the year. we also think you'll see more questions now about m&a for twitter as well. >> got a neutral rating on the stock. why at this point would you say

to hold it when there's such a lack of clarity for the next, you know five months? >> we're very big believers, actually, on the long-term opportunity around twitter. they have 500 million logged out users they can tap into. it would be a big lift for them if the products hit. you can see a big lift for them as well. there's ultimately strategic value as well. as the m&a conversations come along there is a lot of opportunity long term. short term we wait for the fundamentals to change and improve. >> we'll check back with you later, bob. bob peck of suntrust. what do you make of it here? we don't know who the ceo's going to be. we don't necessarily have clarity on the path toward m.a.u. growth through this year. >> and somehow they've got to give that to us. we've got to figure out, and as bob mentioned, talking about the 500 users that have logged out. we talked about stickiness. they have got to get more sticky. i've actually heard numbers that over a billion folks have tried and we look and we see 300 million. maybe it's even a bigger number than what bob thinks right now, but i'll tell you what they have got to figure out, and if they simplify in some way as was said by mr. dorsey then

potentially this thing does have leg room to get a hire. >> maybe that logged out user is going to be caught up in the google searches. maybe mazthat's one strategy. but that did feel about a contrived kitchen sink comment when they talk about maus to purposely lower the bar so much. it still does have that three-day rule but you have to look at the technicals on this. it busted through everything. >> i get this kitchen sink kind of feel but the issue is this is a ceo that's not necessarily going to stick around. so when we get that new ceo and they have the liberty of throwing out a kitchen sink quarter as new ceos do we could be in for another one. we don't really know what the situation -- >> i don't think you can get a double. >> so are you a buyer of twitter here? >> no i already own it unfortunately. so i'm getting smacked with it. but the point is when you go to technicals if there's a vast unknown in the name you have to look at technicals. it popped through all of them. so if you want to look at the next one here you want to look at the 34 level and then it goes right down to the 29 1/2 level which is the 2014 may low.

so if you're going to hold on white knuckled you'd better bail with it buy pops through that. they're there. >> it's holding on to 34 right now. coming up facebook earnings on deck for tomorrow night. we've got the three most important things you need to watch. much more "fast" straight ahead. why should over two hundred years of citi history matter to you? well, because it tells us something powerful about progress: that whether times are good or bad, people and their ideas will continue to move the world forward. as long as they have someone to believe in them. citi financed the transatlantic cable that connected continents. and the panama canal, that made our world a smaller place. we backed the marshall plan that helped europe regain its strength. and pioneered the atm, for cash, anytime.

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welcome back to "fast money." twitter isn't the only big name social stock reporting this week. facebook due out with earnings tomorrow as the stock hovers near the $100 mark. we caught up with mizuho securities analyst neil dos hichlt to find out what he'll be watching when facebook reports earnings. take a listen. >> hi. i'm neil doshi for "fast money's" earnings edge. tomorrow facebook reports its second quarter earnings and here's three things that i'm watching for. one, total revenue should be about 3.7 billion but ad revenue for mobile should be about 2.8 billion. second we are looking for operating margins on a non-gaap basis to be about 53%. and finally, we're looking for any commentary on videos. facebook had about 4 billion video views per day last quarter. we're expecting that to be about 5 billion video views per day. google and yahoo! indicated strength in video advertising. we think this could be a

positive indicator. facebook hits these three points, we think the stock could break that $100 bare year and we could see massive upside from here. this is neil doshi with "fast money." >> pete, what's your trade ahead of facebook? >> looking at instagram and looking at the videos. and because of that i'm going into this bullish because i think they are the premier right now. they've taken over the space. they own it. and twitter unfortunately right now is well behind. >> yeah. you also? >> definitely the leader in the space. i'm so glad i sold this one and kept my twitter. but seriously -- >> sarcastic. >> up 22% year to date. this is the one when you want to talk about where the bar is. but this is definitely a momentum play. so if you're still in the name i think you've got to stick with it. >> options traders are pricing a pretty big move on the name as well, dan. >> 8 1/2% in either direction. the average of the last four quarters about 4%. when you think about this this as options makers looking at that move in google amazon, and not wanting to get caught offsides here. but this is a massive move-b $25 xwl in market cap in either direction. today call volume was two times

that of puts. so obviously traders are really gunning for $100 on the up side here. i'm not with these guys. i think it's a very dangerous stock to own here. >> i think gravitationally it's got to -- yeah. there's just -- >> for more "options action" check out the full show 5:30 p.m. eastern time on friday. coming up on "mad money" tonight, cramer's got two hot exclusives. the ceo of oil and gas play core lab fresh off a 7% rally today. and the ceo of agco on meeting expectations. plus cramer's going off the charts to show how china's affecting your portfolio. meantime the prards give the final grade on earnings tonight. much more "fast" straight ahead. got a glimpse at the worst

earnings report of the year. want to know which one it is? stay tuned because i'm revealing it next. plus what the market's fear index could mean for your money. "mad money" is next! can a business have a spirit? can a business have a soul? can a business be...alive?

welcome back to "fast money." suntrust's bob peck has been monitoring the twitter call for us. let's get the final word from him. bob, you stick by your neutral rating here? >> yeah, there wasn't much more in the call. it's very much going to be an execution story going forward. proving they can do what they say they're trying to do. ceo search will dominate headlines. proof of product traction will be very important. we think you'll also see periodic rumors of m&a back and forth. we would stay on the sidelines here until you see some sort of fundamental change in the users. >> all right.

we do a thing, bob called grade the trade. so give us your grade for twitter's earnings. >> for this call for the earnings this quarter as well as the guidance going forward we give it a c-plus. >> a c-plus. all right. bob peck thanks to you for sticking with us for the entire hour. suntrust's bob peck. all right. quickly, what's your quick trade on twitter? >> i think you'd be really happy to sit here and wait. these guys talk about a gap. i think you can wait and see if you get the gap down toward $30 a share. >> dan. >> i just think the scarcity value of the platform, when you think the enterprise value of $21 billion is less than of that what's app when they got bought by facebook last year it's just too cheap. i'm going to stick with it but i'm cognizant of the fact it could see 30 sometime soon. >> do you think, karen this makes it more likely to be a takeout target? >> every day that goes by is less likely. so i'm going to go with less likely. >> going to still wait there, grasso? >> i would have given it a c. so i felt like i was too optimistic. but being as though bob peck gave it a c-plus i felt like i'm

right in the wheelhouse. there's no better guy on twitter than bob peck. i'm going to hang on to the stock. obviously if it starts to work its way down into the low 30s these white knuckles are probably going to be doing this. >> selling. >> let's grade the trade. pete najarian, which earnings report? what grade? >> i think when you look at gilead it's hard ton give it an a-plus although i'm going to give tay b-plus only because i wanted to hear more in terms of acquisition, what they wanted to do with that money. >> grasso. >> the cat was out of the bag. i gave tay c. re average. twitter. i'm sorry. >> i was like what are you talking about? >> they lowered the bar so much that i think going forward they can only be better than what they are today. >> karen finerman. >> yelp. i'm going to give it -- expelled. come back when you've -- you know. just not working. on so many fronts. expelled. >> kind of disastrous. but soon as they say up for sale again, who knows? >> hey, gilead i'm going to cheat off of karen in this one. sounds like a pretty solid b-plus. kind of a quarter here. if you're long i think you use the 200-day moving average, 105 as a stop to the down side.

>> i'm melissa lee. thanks so much for watching. see you back here tomorrow at 5:00 for more "fast money." mean tooirnlgs don't go anywhere. "mad money" with jim cramer starts right now. hey, i'm cramer. my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm trying to make you some money. my job is not only to entertain, but to teach and to coach. call me at 1-800-743-cnbc. or tweet me @jimcramer. finally, finally we got a good set-up. for once