some growth. >> there you go. guys, thank you so much for joining me. a lot of conference calls about to begin. that does it for us on "closing bell" today. "fast money" begins right now. "fast money" does start right now. i'm melissa lee. we're bringing you full team coverage in all the big after-hours earnings throughout the hour. it is our ultimate earnings lineup. all the headlines and everything from apple, twitter, at&t, and ebay. and the one man who thinks outside the box, always, bob peck, he's with us for the whole hour with analysis on things twitter. if you missed the rally, credit suisse said there is a stock you have to buy right now. later, there are biotech stocks that traders are betting will have massive moves this week, could total more than $12 billion in market cap. but first, we've got to start off with the biggest story in corporate america right now and that is apple, missing on both

the top and bottom line. we're at the after-hours session low. by the way, $38 billion in lost market cap in the after-hours session alone. the first quarterly revenue drop in 11 years. the company did say it would raise its dividend return $50 billion more to shareholders. but investors didn't care about that. they don't care about that right now. let's get to josh lipton, who just spoke to the ceo, tim cook. >> it was down 16%. i did just talk to ceo tim cook. pressure points that number, he talked about tough comps. the iphone 6 was a blockbuster. a year ago, apple shipped 61 million iphones. he talked about the macro economic weakness and headwinds. the key question for investors is where is the iphone franchise heading from here. cook sounding very confident and

very upbeat. he's still bullish on this franchise. he talked about new markets to india. a small market share there relatively. india popping more than 50%. he talked about the iphone se with the smaller form factor, relatively cheaper. he said that's opening up the iphone to new users, and talked about taking market share from rivals. a number of android switchers. also, greater china, you saw revenue down year over year. cook was telling me to break apart that region. hong kong he said was down hard on a stronger dollar. mainland china was down 7% in currency, off a tough comp. he continues to be confident about china, that it's stable. recognizing it's not growing like it did last year at this time. this conference call is just ticking off. i'm going to hop on it and bring you more headlines as they come. >> josh, thanks so much. apple shares after-hours session low, down 7.8% right now. karen, it was also the guidance for the current quarter on the

revenue side that was disappointing. >> i think that was more of an event. down 5 bucks in the first part and maybe another 3 or so in the second. that part is more disappointing. the revenue miss that they're guiding toward for this q-3, $4 billion, $5 billion light. that's a little disconcerting. it used to be that apple would sandbag. they no longer sandbag. i think they give you what they really feel is the true guidance. the gross margin isn't quite there either. not surprising. but this is not delightful, i've got to say. as a long holder, not delightful. >> josh is highlighting comments from tim cook, talking about the iphone franchise and the importance of the se. the importance of the se immediately is the impact on gross margin. >> last quarter, the average selling price worldwide was $690 for the iphone. this is about $645. you have year over year,

sequential increase in china. but they're optimistic about markets like india who have the same sort of population as china has. and we've been talking about it at the desk, it's likely to have a different ramp and take its toll on gross margins. when you think about what it costs for a chinese citizen, 13%, 14% of their annualized income, in india, 30%, 40%. to me, i think it really is a situation where investors are getting their arms around a much slower upgrade cycle in saturated markets like we have here, in developed markets and what will 9 ramp be like. you just don't know at this point. >> i guess i kind of feel like what they did in china they can largely do in india. i know what dan is saying. the gross margins are really in trouble when you start thinkinging about apple cars and things that are supposed to be innovations for this company. the things you need this company to do, relate to business service, apple music, relate to

apple pay. things that are very, very important in terms of generating revenues and using the ecosystem. but getting so worked up over this number, i think the market has overreacted a little bit. the numbers were probably better on the units. as we get to another repressed cycle, the iphone 7, maybe it won't be as glorious as the iphone 6. asia is now 28% of operating profit, still a place they're going to grow. the four-inch screen, yes. that seems to be selling more in china. maybe it's indicative of where fps are going. this is not a full-fledged disaster by what it's doing after hours. >> the conference call is five minutes in. do we have enough information to say, you know what, this 8% pullback in the after-hours session could be the buying opportunity for all those people looking at the cash on the balance sheet, the dividend yield? >> added $50 billion to their stock buyback program. this quarter specifically, people say it's a hardware

company. i'm probably one of them that gives them something to stand on, right? all hardware companies over time have the same fate. we've seen companies that were impervious to anything, sony in the '8i i'80s. xerox. i think apple pay could be tremendously huge. when you sell things that people want to buy and prices go lower, this is what happens. >> i've got to come back at tim a little bit. the stock down 7%, 8%, you think it's an overreaction. i guess simply, there's a lot of uncertainty here. i think the back half of the year you'll see numbers come down pretty dra mat lick i. people who rode this product cycle for so long saying it's a second half story, this may be the hiccup. remember, back in 2012, i think they topped out at nearly 44% gross margins. if everybody in the planet bought that 5 1/2-inch screen now we're going back to the original sizes, i think you're going to see margin prices -- we

just saw china down 30% year over year. >> they still have massive room to grow. i don't think these numbers are fantastic. but i don't think the move to the 4-inch phone is waving the white flag here. they're seeing incredible growth, this is what tim cook is talking about. to me, the expectations, i think, are more about what's going on right now. 44 buys, two sells, four holds. i brought this up yesterday on twitter because i think the expectations are still very high. where do you end up with? you end up with a company that trades eight times x cash eight times. they're not falling apart. there's going to be another iphone 7. >> do you think they'll downgrade? if they haven't downgraded to this point, you look through to the 7, to the curved phone, at this point they're going to say, you know, pull the rip cord on the stock? >> i think that's the nature of the beast. yes, they'll follow the -- the

guidance is going to be what worries them. again, a place where if you look at the shipments in the fiscal 2-q, those shilts were fine. we're talking about a year over year decline. we knew that number last week, last month. $108. >> we did not know the guidance. >> let's bring in collin who is one of the more bearish analysts on the iphone maker. collin, good to have you with us. >> great to be here, melissa. >> down 8%. does it look attractive at this point? >> i look at a five-year look for this company. that's where i get most concerned. smartphone market is going down to 5%. we know they're valued like a hardware company. tim cook, is he a steady hand or applauding hand? let's see houp the stock shakes down for a little bit. but there's no need to jump right in front of this on this weakness. when you look out to the 7 cycle, i don't see the same

demand happen that happened for the 6. >> what's the wild card for apple? could apple be as huge as everybody would lead you to believe it will be? >> you know, again, it's a slower adoption, and the margins just aren't there. apple pay is a service that helps drive the sale of more hardware. the wild card needs to be building up that subscription layer. let's see what they can do with television. >> i hear you. i don't think one needs to jump in right now. when i think of the ecosystem, versus the hardware maker, the walkman didn't dovetail with the vhs system at all. so this is a very different kind of ecosystem that apple has created. i don't know that apple is the be all end auflt i think there is value to the ecosystem. i wonder why you're less optimistic on that. >> i think there's value there. i do think it could get picked

apart. i would like to see a bit more urgency in adding layers into that value system. because they are losing market share pretty steadily. that's where the se comes into play. a company of this size and weight, the dependency on the iphone and the dependency on the geographic regions, particularly china, remains troublesome. >> colin, are we going to look back on this quarter and think the best days of apple are behind it? >> possibly. i was wondering if it would be this quarter or next quarter. that will prove out when the 7 cycle hits. and we'll see, hey, it turns out that the 6 wars the anomaly, that there was just pent-up demand for the larger screen. again, let's see at what pace the company and management drives innovation. steady or plodding. >> colin, thanks for phoning in. appreciate your analysis. i'll pose the questions to the desk. >> i like this. >> apple's best days, behind it?

>> i just want to say this. if i didn't think that two weeks ago, i don't think it today. and i think people need to assess this in the bigger picture of what changed today. dan said it's revenues, that's fine. he may be right. again, i don't need to buy apple tomorrow. i don't own the stock. i've owned it, and i've owned it recently. in terms of margins? probably. in terms of top line sales, absolutely not. in terms of their ability to take more market share, by the way, they still have market share to take away from samsung, now they will be the leader. >> i think the margins of the best days are behind them, the best days are behind the stock. the stock had an amazing run. we talked about the lost decade, goldman sachs hasn't gone anywhere in ten years. i think you could see this stock banging around for years and years to come in a fairly tight race. i think the highs are probably in. the ability for this company to accelerate revenues above the

$230 billion mark is just not there. as a company, i don't think the best days are behind them. that being said, they have to prove to us they've release nothing but duds since tim cook has taken over. innovation is not there right now. they create incrementally good products. people have been making the argument ten times this, eight times that. it's been trading that -- >> karen's been making that argument. why are you still in? >> i don't believe the best days are behind it. i don't believe this is the beginning of the end for apple. i really don't. >> we should note that the qs are down by 1%. we're seeing definitive declines for the semiconductor makers. they're all trading lower in the after-hours session on the back of the apple news. >> i don't think the watch was a dud. i think the watch was actually surprisingly good.

if you compare it to some of their other rollouts -- >> you took off your watch. >> i returned it after two weeks. >> it isn't a dud? >> i'm just looking at a $50.5 billion revenue quarter. if you want to just look at 2.18, is that other products in billions, and $6 billion in the thing where it's watches. it doesn't move the needle. until they innovate on wearables, it will not move it. >> come on. >> i think -- i'm going to give them a couple more quarters. i still think innovation-wise they have genies to pull out of the bottle. >> they missed on expectations. >> all that cash, though, let's face it, if they hadn't been continuing to buy innovation, google has been buying innovation, apple will buy innovation. they won't sit tight. this is where we may agree. the company's not doing anything differently with their hardware other than tweaking it.

>> you haven't really heard that from the company. >> they're not going to tell us. the data they have, the infrastructure, the ecosystem, this is one of the most dominant companies in the world that didn't change today. in fact, with the cash pile, they can do almost anything they want. >> do you own apple? >> no, i don't. >> are you going to buy apple on this decline then? >> i'm not going to buy it tomorrow but i think it's setting up for an overdone condition. >> we'll have more on apple. you'll hear from john skulley to see if the best days are behind it. and at&t is lower. ebay is lower as well right now. we'll bring you the headlines from both of those conference calls. and take a look at chipotle, making a comeback a little bit. what is the company saying about e. coli. and later, the head of credit suisse's strategy said there is a stock you should own right now. she'll be here to tell you what those are. pursuit of healthier.

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they're calling it a very good quarter. one of the reasons, its 2015 acquisition of directv. here's cfo john stephens. >> the first quarter demonstrated our ability to deliver strong, consistent results. as we execute the strategy we've laid out for you. our approach has been methodical. our results have been consistent. >> the firm also crediting the better than expected earnings on growth and video, which offset pressure from lower equipment sales which was expected. in a $500 million hit from currencies. coming in ahead of expectations, thanks to growth in the wireless business. and international revenue came in a little life. stephens touted the entertainment unit which provides high-speed services to its customers. at&t added a more than expected

328,000 fee subscribers in the quarter. however, it lost a little bit more than that in its internet and u verse clients. at&t also affirming its full year guidance of double-digit consolidated revenue growth. and cap x in the $22 billion range. stephens saying the company is going to go ahead with plans to shut down its 2-g network and that might have a slight impact on revenue this year. at&t also saying it will meet or beat targeted cost savings from its directv acquisition of $1.5 billion by the end of the year. now, let's go to courtney regan for ebay's results. >> spiking initially after the hours. but since retreated. now basically flat. the outlook for the second quarter coming in mixed. ebay forecasting a 4% to 6% foreign exchange neutral growth rate. its earnings forecast is below consensus. the marketplace calls this gross

merchandise volume of $20.5 billion stable. ebay stub hub revenue grew 44% on the strengths of sports and concerts and new products like the new ticket recommendation and reality view. analysts are looking for more detail on the new ebay following the spin-off of international growth. especially as amazon ramps up its prime membership both domestically and internationally, and also hoping to see some metrics on increased user engagement. melissa, back to you. >> thank you. let's trade these names. guy, on at&t, this is a dividend play. lots of people love this stock, going into earnings. >> 5% yield. when they reported their earnings, the stock actually spiked to $38.75. for the last 10 to 12 years has

been in this range. here we are pushing up against 40 bucks. what's going to take us to the next level? they looked at the quarter and said it's just not there. you take profits. i think that's exactly right. not ridiculously expensive. i think the stock back down to 35. the wild card is, can they direct the tv the right way. i don't think you're close to seeing that follow-through. sell the stock even with it lower. >> even in your world, where bond yields go lower, and people still -- >> that's one of the reasons the stock's had a nice run. you're at the upper end of the range. that's one of the things that's gotten them there. yes, i do think bond yields go down. i think you're buying at a top end of a very established range. >> quick on ebay? >> first of all, the guidance was already out there, pretty muted. what would be worried about is the international. international gmv about 60%.

of that actually germany and uk are another 65% of that. and it's eroding. this is really where you've been getting the growth out of the company. i think expectations are still pretty low. therefore, i would be neutral here. but i think they have some risk. >> we're all over the biggest stories in corporate america. apple down by a little more than 8%. we'll be hearing from former ceo john skulley on what he thinks the company is getting wrong. that's later this hour. in the meantime, here's what else is coming up on fast. >> that sums up biotech of late. we'll tell you which names traders see having weirder moves later this week. while everyone is focused on these guys, it's this person. it will matter most to your money tomorrow. we'll tell you why investors are so excited about what she could say, when "fast money" continues.

welcome back to "fast money." steeper losses in the after-hours, a conference call is under way for chipotle. eps, that actually beat street estimates. when it comes to revenues, down more than expected, down 23%. and comp store sales fell. steve els is optimistic customers are coming back. >> while we have used promotional programs to entice many of our customers to return, we encourage the signs that the promotional traffic has translated into repeat paying customers. return of customers to our restaurants improved our

same-store sales comp by 11% from january to recent levels. >> maybe that's the reason chipotle is not slowing down their expansion plans. they're looking to open 220, 235 stores in 2016. the stock is down 40% from record highs last year. analysts are the most bearish on the shares since the global financial crisis. about a year ago, no one on the street rated chipotle as a sell, now at 20%. >> susan lee, thank you very much. stock just taking a leg lower here. susan mentioned how everybody on the street is still bearish on the stock. apparently not enough. it's still down 5%. we still don't know what the source of the e. coli scare was. >> we probably never will. what she was saying is there was not a sell sound a year ago. and now this is clearly a high momentum, very richly priced stock. and then when the momentum's gone, people head for the hills.

at some point it's attractive. not nearly enough for value investors. >> it was a $400 stock in january at the height of this craziness. the stock went from $400 to $550 in a month. this is a rich stock regardless of any e. coli. they have not addressed what happened. they should at some point tell folks what happened. just giving people two for one burritos ain't cutting it. i think it retests the $400 level we traded back in january. >> what happens when they stop with the free guac? are the people going to come back? >> should they be coaxing them on the rate of change rather than the absolute level of change. they're supposedly surprised by things getting better. i think there's a longer lasting impact. there's a lot of competition in this space now. i don't think there was this kind of competition, even a year ago. again, this is due to my own

channel checks, walking the streets getting something for lunch in new york city. there are a lot of chipotle rip-offs, and places where dan goes to get a salad and whatnot. i think the environment is much more difficult. we're back to 80 times 2016. it's not even cheap. >> i'll be a little contrary here. last year they had about $15 in earnings. they're expected to have 567, down 65% or so. it's probably not done going down. the problem is, next year they're expected to have $13 in earnings. that's probably way too high. so the company really needs to have a blood letting on their forward guidance. then investors can start to think, what a normal itzed earnings look like. it probably breaks 400. >> chipotle's cfo will sit down with jim cramer tomorrow at 6:00 p.m. in an exclusive interview. that will be interesting. twitter, stock at the lows

in after-hours. the competition and the monthly active users. and later, apple is down still on earnings. that call officially halfway through. we'll bring you the latest headlines. plus, instant reaction to the news in the stock. much more with john skulley. ict, the infamous traitor.

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welcome back to "fast money." here is where we stand right now. apple shares off the after-hours session lows, down by 7.7%. take a look at twitter here. this is down by 12.6%. we've got full team coverage. julia boorstin is at twitter headquarters, and josh lipton at apple. we start off with julia now. >> well, melissa, while twitter shares are tanking, the ceo jack dorsey is on the earnings call

bei ining periscoped live. he spoke very calmly about the company's focus on live, and how they're seeing a benefit from all the tweaks they've been making to the service. they're giving the consumers more control. take a listen. >> we've seen increases in tweets, and replies, and retweets. and also likes obviously. we want to continue to make sure we're refining that time line and making it better and better. so when people come back to twitter, they see what's meaningful. >> the coo responding to questions about advertising coming in lower than expected. saying there are signs of strength that will kick in starting in the third quarter, including a new kind of video ad. he decided a study of finding $6 return on investment for every dollar spent by major beverage companies, saying there is hope that the brand advertising will really improve starting in q3. bain also talked about the

opportunity to sell ads around the olympics, as well as arnold the election. cfo rg talking about the nfl deal which will also kick in in q3, saying that will bring more people in to twitter. after the earnings call, and i'll be sitting down with the ceo jack dorsey for an interview which we'll bring you on cnbc first thing tomorrow morning. >> we look forward to that. for more on twitter, robert is monitoring that conference call. bob, what do you make of this 13% decline in the after-hours session? >> the quarter itself was actually okay. the real reason why the stock is down, the 2q was pretty bad. it implies a deceleration in the advertising revenues for the second quarter. they talked about brand dollars being weak. to get the reaccelerated, they'll be rolling out some new technology in the back half of the year. double click will now start in the back half of the year as well. this really weighs on the 2q guide.

the margins for next quarter are supposed to be a little bit lower. can they really accelerate users? and number two, grow the modernization and get it back to the levels it should be at? number three, are other platforms like snapchat eating into the brand budget twitter had before? >> that would be my question, bob. i think ultimately, is the competition now -- is twitter an asset that's losing value? and they're losing to competition like instagram and snapchat at a time when it's never been more intent to go after the video market. i'm not sure they can wait all day. >> it's interesting, because if you don't have the user growth driver, you need the modernization engine. we're actually seeing brand advertisers shift some budget away from platforms like twitter, to other places like snapchat. >> bob, that revenue miss is so big, that i wonder if -- i know the decline in the stock is big, but on a revenue miss like that,

could there be more to come on the down side? >> the question is, especially if the users don't grow, q2 could be weaker than people expected. remember, we don't have full guidance for them on revenue. this could persist into the third quarter. >> bob, we'll let you jump back on to that conference call. what do you make of this? >> listen, again, i thought this stock was a buy $5, $6, $7 ago. i'm surprised it's as disastrous as it is. this monthly average users, don't talk about it anymore. i think it's a valuable content delivery product that they don't seem to get their arms around. maybe i'm way offbase, but i still think twitter is valuable if you're a user or voyeur. >> when you consider how bad the revenue guidance was, and really what the sentiment was going in, when i think about this, q2 in the tank, hopefully not worse than what they just guided to,

you think about the q3, we have the olympics, we have the election, we have the nfl. if this does not drive users to the platform, then they're not really proving their content. >> what about new users? >> the bar was low going into these earnings. >> i understand that. don't forget the stock was trading $15, $16, and went to $13.5 in late january. it did find some support down there, and rallied 50% off the lows. i would be careful of pressing it here. if it didn't get overdone, you probably buy it. high shortages, very poor sentiment. with less than a $10 billion enterprise value, this is a cheap asset. i think somebody, a big media company or google, they have to own it. >> my problem is we were looking for stabilization. and now revenues are eroding. i'm long the stock, too. i'm not sure this is -- >> you're not going to sell it here, right? >> no. but this is not good. and i've got to tell you, the

competitive landscape is really tough for these guys. >> check out shares of apple. they are still down in the after-hours session by more than 7%. that conference call under way. we'll get the latest from tim cook on the quarter coming up next. plus, we'll get instant reaction from the former ceo of apple, john skulley, and what he thinks the company is doing right, and wrong, after the break. tokyo-style ramen noodles.

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welcome back to "fast money." i'm josh lipton. apple ceo tim cook sounding a bullish confident note about the iphone franchise. take a listen. >> iphone sales come from three sources. customers who upgrade from previous iphone models, customers who switch from android and other operating systems, and customers who prmp a smartphone for the first time. as we look at each of these three sources of iphone sales, we see a business that is healthy and strong. >> so cook telling analysts the same points he made to me earlier in a conversation. he's still bullish on the iphone franchise, talked about new markets like india where sales were up 55%. new models like the se and

continued number of switchers. after-hours, it's clear investors are more focused on the q3 guide which missed on both revenue and gross margins. also the average price at $642 versus $659 a year ago. the company's cfo chalking that up to weak international currencies and the popularity of the mid-tier offerings. i'll bring you more headlines as they come. >> josh, thank you. we're joined exclusively by john skulley, the former ceo of apple. john, a pleasure to speak with you. >> thank you, melissa. >> what's apple's biggest problem at this point? >> i think the thing that people are missing is the silicon valley is the way people really do pull the genie out of the bottle. think back three years, people were talking about facebook the way they're talking about apple today. they said facebook is over.

the old people are using facebook, all these new services like snapchat are taking over. they pivoted in three years, and 76% of facebook's users come from mobile. i can give you some examples how i think apple at least has the possibility of pulling genies out of the bottle. >> what's the low hanging fruit then for apple? i don't want to mix met a informations, but in terms of the genies pulled out of the bottle? >> first of all, i'm a huge tim cook fan. i think apple is a long. but here's an example. two weeks ago, mark zuckerberg told the developer conference for facebook, he talks about his ten-year vision, and the big message was exactly that, smart messagi messaging. smart messaging is a true game changer for anybody in mobile devices. what it is, what are called bots. small transaction tasks, logic

based, software sub routines. when you combine those with apps, you can embed them into different mobile products. and you get these little smart digital systems. and what if the apple watch, which is beautifully designed from a hardware standpoint, but people are saying, so what's the utility, what if the apple watch became the perfect device for this next generation of smart messaging services. and what if tim cook and mark zuckerberg got together and said, gee, let's make the apple watch a great platform for facebooks, what they call messaging, or "m," and all of a sudden you have a whole new path of utility for something like the apple watch. i'm sure there are other ideas. but i'm giving you that as an example, that you really can get smart people like tim cook and mark zuckerberg and others to come up and pull genies out of

the bottle. people are beating apple up because the numbers weren't as good this year as they have been in the past. >> john, do you think it's safe to say, you just talked about zuckerberg's ten-year plan, the company because they have hit an innovation wall at a lot of levels, and you say they should be partnering with this guy or that guy, wouldn't it benefit apple stock, and ultimately investors, and feel more comfortable about what the road map was, if they laid out this sort of plan? right now they have a bunch of products that fit into the ecosystem, but a lot of them may be cannibalizing each other. that's my biggest concern. >> well, i think that is a good idea. you can see how well mark zuckerberg's ten-year vision has been received. everybody's talking about it. everyone recalibrates. when you're a huge platform as facebook is, as apple is, as android is, people in the industry have got to know what your long-term vision is.

and it would be a great time for apple to do exactly that same thing, whether it's done now, or whether it's done six or eight months from now. but at some point in time, it would be a grit thing to do. >> you talked to tim cook, john, i'm curious if he agrees on these sorts of levers that could be pumd to improve performance. >> i've not talked to tim cook about this. you know, tim doesn't need any help from me. he's an incredibly talented executive. he's got a great team around him. i'm just giving you some examples that i think people are overreacting, because they don't appreciate that silicon valley is the one place on the planet where people really do pull genies out of bottles. >> but the stock is down. >> the stock is entirely respected. here's the thing that i think people forget. steve jobs is always given credit for being a brilliant genius, and designing beautiful products, which he did, of course. but what people don't give him full credit for is what a

brilliant negotiator he was. i mean, he outmaneuvered the entire music industry. he outmaneuvered the whole publishing industry. it's a real opportunity, i think, for apple in its strong position to start to say, how do we take a new industry, like messaging, smart messaging, you know, with these personal digital assistants, and figure out what can we do with that, whether it's on the apple watch or the iphone or other mobile products they have. apple's in a strong position to do that. and they have a lot of talent in that company. >> john, pleasure to speak with you. thanks for phoning in. we appreciate it. >> thank you, melissa. >> the former ceo of apple. that genie sounds fascinating. i'm sure there are other genies in that bottle to be pulled out. but i don't know what tim cook is thinking. i don't have a road map for the next -- >> hold on. >> these guys are moving to services. they can't be a hardware company forever. they don't have to be first in the market. they can actually take somebody

else's product and make it better. their growth in other products is up 25%. i realize it's a small thing. but how can we give microsoft the benefit of the doubt in changing and transforming their business when apple is in a better position to do that. >> that's a fair point. but we were tearing apart ibm for moving the needle. >> they stink on software. do you guys remember mobile needs? do you remember icloud, every glitch we've had on every major ios release? they're not good at it. the watch doesn't have a utility because they don't have good ap apps. >> i thought the apple operating system is the whole reason people used apple. >> on the mobile end services. they have a good desktop thingamajigy thing here. >> they're moving the services model. meanwhile, they've got the best cash cow in the world. >> they just spent $20 billion two years ago, 1 billion people

short messaging. a lot of them are on devices. they missed the boat. what have they been doing? >> why can't apple be partnering with somebody -- >> tell me this company has to turn about their entire fabric. they have to turn -- >> i'll say they'll continue to grow. they'll generate. meanwhile they're converting a lot of the people to services businesses. >> i get that. service a small part of the business right now, though. we don't know if they'll do the big acquisition that people want. >> their balance sheet, if they want to get into automobiles, they could buy tesla, it wouldn't be crazy. >> it would be awful. >> you know what? >> i don't like that. still ahead, after-hours earnings. you're watching "fast money" here on cnbc, first in business worldwide.

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and find out how to get the most out of your service. so when you get home, all you have to do is enjoy it. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. our next guest is the chief executive strategist at equity suisse. we've had a number so far of high-profile misses.

yet the market seems to recover from them. google, microsoft and intel for instance, and be fine. what do you ma of the way the markets are trading at this point? >> we do think the bar is set pretty low for the earnings reporting season. i think the problem, though, is valuations are still a big problem for the broader market. we're going to be vulnerable to bad news from time to time. >> do you tli with the apple news, would news like apple's laying out in just the shear magnitude of the market cap, that we will feel an impact from that? >> one of the big themes in the market this year that's rocked investors is the underperformance of crowded names, particularly crowded growth stock. i think we have to be on guard for those kinds of misses. >> where we are right now with the economy, sort of muddling along, and rates, i don't know where, what do you think is the right level for the s&p to trade in? >> our firm is looking for 2150 year end. i'm personally neutral on the broad market. we said there could be a little bit of lift going forward if we get good news out of reporting

season. bottom line, valuations will keep a cap on the upside. >> everybody is expecting this nightmarish scenario. >> yeah. >> how would you argue that, you know, credit is going to be not as bad as people expect? we know earnings are -- we've been in an earnings recession for a long time. but 2150 sounds pretty sanguine. someone after a big rally could be more negative than you are. >> i think the key thing about the market is that as a whole it's not interesting. but there's interesting stuff that's developing underneath the surface. look at retail stocks for example. a couple of months ago they were looking good. the large cap guys did bad in the first quarter. and we've got interesting stuff to buy. there is still money flowing into equities. value managers have been getting money to put to work. i think you want to look for those valuations. we do like small cap.

we upgraded retail to market weight. we think it's time to put money back to work. >> laurie, thank you for stopping by, from credit suisse. you like retail. >> i love retail. bodes well, i hope. the final word on both apple and twitter.si both still down in the after-hours session. uh oh. what's up? ♪ ♪ ♪ does nobody use a turn signal anymore? ♪

live shot of the twitter call, via periscope. bob, we go to you as the stock is down 13.5%. what do you telling investors to do. >> so, with twitter, obviously big concerns on user growth. this quarter, you'll have questions on the monetization side of it. this transition should last through the fall. expectations are also very low. as far as the report card for the quarter, it was okay. we give it a c. >> a c? wow. >> i would like to be in that class. >> what kind of grade would you have given twitter on the quarter? >> i guess i'm very concerned about the ge tigs.

frankly, they haven't begun to monetize. growth at 36% isn't enough right now. a d. >> that was a disaster. >> terrible looking. bob, thank you very much for your analysis all this hour. bob peck of sun trust. >> he's on a rotary phone, so i don't know. >> let's get the final word here on apple. we are seeing apple as well as its suppliers. we didn't hit this too much, but we've had sort of a rocky road for a lot of the semiconductor companies. today we saw a little bit of a respite, now all of a sudden they're getting whacked in the after-hours session. >> final trade? >> no, no, the suppliers. >> i think a lot of people bought these in anticipation. but if you go back juniper, intel, a lot of stocks were telling the story that we're seeing now. i think you've still got to wait on those names. >> apple down by more than 8%. buyer of a stock down 8%? >> no. but again, that's because i

don't need to go in and buy this stock tomorrow. everything i said about this company, nothing's changed. >> again, qs down by about 1%. "mad money" 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 c cramer oi ca. call me or tweet me. if you want to judge the health of a given market you have to think of how many days there are to win. or lose. which is tech