"fast money" starts right now. the nasdaq market site overlooking new york city's times square. pete and tim, and guy, tonight on fast, facebook surging on earnings. a rare bright spot in tech. that call getting under way right now. we have team coverage with julia boorstin, and bob peck, bringing you breaking headlines throughout the hour. an interesting take on apple that might make you take a second look. first, we start off with the story of the night, that would be facebook. absolutely crushing estimates on

every possible metric. the stock is soaring, as we see there. after-hours session highs. this comes as every other major tech company has basically tanked on earnings. so can facebook save technology, and should facebook be a core holding in your portfolio. guy, what do you say? >> listen, i've been wrong about a lot of things, most things, but i think categorically, collectively we've been right about facebook. if you look at facebook, the one thing that stuck out to me is, forget about active users on the mobile app, look at what they did in operating margins. up to 55%. i think the street was looking for 51%. if the stock opens here, i believe it's a new all-time high. i think facebook will continue to go higher. can it back and fill? absolutely. should it be a core holding? without question. >> at least a 52-week high, if not an all-time high. >> this stock has a knack of gapping to new highs.

you had 52% revenue growth year over year. i would just mention this. this time last night, we were talking about facebook -- excuse me, twitter, down 15%. after really horrible earnings. this is not -- i think you can separate the fact that facebook's gain is really at a lot of these other ad budgets' pain. you talk about twitter and these other things. they seem to be dominating. listen, i do not buy stocks at all-time highs, especially stocks like this. >> i'm curious, if last night we're having a question about apple, where do you have a conversation about so much could be happening for facebook. clearly they're still growing. u.s. group, very impressive. but in terms of how they're dominating the digital ad space, to the extent that this is really where people are paying them, and paying them multiple, i think it's a case where at some point it's not going to get any better. google and facebook, at this

point, dominate digital ad in a way that i don't think they can forever. >> for this particular line of business, they've got all kinds of businesses. >> i disagree. i think a lot of bullish sentiment. that's where i would disagree is, this is no longer just a facebook story. how about the 50 acquisitions that zuckerberg has done. how about messenger, and instagram, and everything that he has created over this very short period of time that they've been a publicly traded company. it's absolutely amazing to me. go back to mobile. can they get mobile. can they really figure this out. now it's 82% of the revenue. up 73% year over year. but they've also got the transition. zuckerberg talked about that today. he made that point. he said, look, we're doing these acquisitions, we're doing all of what we're doing. this is a ten-year game plan. this isn't a this year or this quarter, it's a ten-year game plan. what he's doing now is filling up with the free agents that can

ex explode. >> it's trading higher on a gap basis here. stocks like this, we've had this amazing run from 2012, i think as low as high teens. so, you know, a lot of that good news is in the stock. you're telling me that they're going to basically monetize, when it paid almost $20 billion for. let's see it. let's see. >> virtual reality is right around the corner. >> they have like six apps here. sooner or later they'll have to get the operating system. there's not much more share they can get. we'll have to see how effective their video ads are going to be. >> i think you make a good point. 35 times earnings. make the case, why facebook should trade at a premium because you like it. >> because, again, look, like many things, like google, i don't think it can be easily replicated. i do think, although it makes me

sick to my stomach, virtual reality is going to be something that can -- no, without question. >> like a grouse possibly? >> like an angry grouse, yeah. >> i digress. you mention instagram. i want to tell the folks at home. i'm on the gram now. >> maybe that will make it pop. >> does facebook's results make twitter and google look that much worse? >> what it does, as we talked about the impact of the competitive landscape, the gram, as guy likes to refer to his three followers, is ultimately between snapchat and instagram. we talked about a deteriorating asset. that is what the concern is. in facebook's case, very difficult to argue, i would just point to the fact that, again, you've got the highs and holds.

they could be much more moderate in terms of where they want to guide expectations. and cap x and op x for this company, especially looking for the fly in the ointment, people are wondering if they're going to overspend on the next thing. >> i heard you talk about that earlier. all these buys versus sells. everybody focuses on apple now. but that same paradigm was out years ago. now all of a sudden people are getting more concerned. >> facebook's got time to run with this. >> years to run. >> they have to make the same case for apple. you could have said that five or six years ago for apple. >> and trading at a historically high. why shouldn't facebook trade at a premium? you see the road map in terms of

catalyst for growth. >> i'll go back to google. this is a company that always traded a premium to its peers. but google in 2011, 2012, they can't just grow to the sky. facebook's going to have -- >> where was there growth? where was google's growth? was it mostly search when it was stagnant for so long? with facebook, these acquisitions are something they're making money on, and they will be making money on going forward. >> if you think about it, facebook for all intents and purposes is a one-trick pony. it's mobile ads, that's how they make their money. and google made their money on desktop ads. now facebook's eating their lunch. i need to see what's going on with video and that sort of thing. we heard twitter talk about how much better roi was, promoting tweets and that sort of thing. threats's see how it's playing out with facebook. >> tweeted it right out. i decided, you know what, i

talked about it in the noon show. i said, look, because of all the reasons i laid out, i think they're actually stealing from twitter, stealing from google. that's why i expected this report to be strong. i didn't think the stock would go to 119. but i thought it would be up $3, $4, $5 maybe. the options were implying 8% move. >> were they weekly? >> i bought the ones that expired friday. >> short-term. who is buying here? is it a buy? >> it's going to take money off the table. i think there will be, like facebook has de many times, but remember, a lot of people took their numbers down ahead of this report. a lot of people sold the stock once google reported. they're going to have to play catch-up. >> 117, march 31st was the last time it ticked up there. technically, if we hold the lesms after hours, this is important for the stock to -- you could make an argument it

was putting in a base. we're starting to build off of that. watch the technicals on that level. >> tech has broadly underperformed the market despite the facebook outlier. investors should take note. carter, what do you see? >> obviously that's a lot of carnage as of late. what i want to look at is the key level. what we know is, you have a failure right at the prior peak. but here's the really important thing. if you were to look at the lows of january, february, even as the etf, xlk has rallied, that's basically the problem. here's the setup i think that is very interesting. this is going back some four, five years. but we have literally bounced off this relative line to get in the bottom panel, relative 30r78 answer to the s&p. about six times, we're just now on the cusp of breaching this.

that is a very bad development. so as negative implications for the market i think is the biggest sector. also, we have the pre-condition of outperform arngs right? xlk, i've done it from the exact high of october 2017, you've got an aggregate up 80% versus the s&p up 60. the here and now chart. and this is now a two-year sending channel if you want to call it that. but literally, quite precisely, once, twice, three, four, five, six, that's a so-called interday slash crash where prices were canceled. seven, eight. this is perfect. now, by my eye, having failed at the double top, we're going to continue to work down towards the low end of this, which puts pressure not only here, but the s&p. >> who's a buyer of carter's chart? >> anything carter's selling, i'm buying. he could be in the middle of the

desert, selling bottled sand, and i would say, how much? >> come on. >> i mean, look. technicals don't lie. look what he's pointed out. >> you agree with the technic s technicals? >> again, think about the resilience of the s&p on a day where it should have been down big on the back of apple, and it wasn't. >> eight of the top ten holdings have all reported and disappointed. when you think about this, it's holding in pretty decently, if in you can take intermediate term view as i've done looking out to september, i think large cap tech is going to be in the hurt locker for a while. facebook has nothing to do with it. i like the xlk with the vehicles. >> the price action was pretty good, even though most people -- they were lousy. doesn't that -- pete, doesn't that make a difference in terms of your views to how resilient technology should be? >> i find it resilient. we talked about intel, great call on intel. the flip around from 30 off of bad numbers, frankly and moved

to the upside. ibm, just the opposite. numbers come out, they sell it off. i think the real leader in the market is energy and materials, right? you look at oil each and every day. now it's traded up to 45 today. conoco, philips, chevron, exxon, everybody moving to the upside. if the second half of the year is any better at all, which i think we're seeing, or projections are we'll see some of that, i think that's -- >> a lot of these companies, we are getting to a place their business is very commoditized. not a bad thing. >> up next, the most important question on investors' minds right now. how should apple be valued. the surprising take after the break. plus, move over earnings, bank of america said there's something much bigger. we'll tell you how to play it. you're looking at a live shot of bill ackman getting grilled on capitol hill. he's just had an interesting

response to one of the senator's questions. meg terrell is there. she'll bring us all the headlines. much more "fast money" right after this.

welcome back to "fast

money." we've got an earnings alert on paypal. kayla? >> paypal shares of up sharply after hours. three takeaways on paypal's first quarter. first, pretty stunning growth. in a world of very little growth, for a lot of tech companies, paypal saw revenues up 19%. earnings up 28%. growth, $3.2 billion in payment volume was up 154%. user growth, although better than wall street expected, was up just 2.5%. so that could be a point that investors try and take apart on the conference call which is just under way now. another sticking point for the company is the take rate. although they did see trims action volume bigger than expected, those transactions are getting more expensive to maintain. the take rate was just short of wall street expectations. the transaction margin 64%, was showing pretty steady decline from quarters prior.

so investors are going to want to see how paypal will make it more profitable to continue building up this transaction volume. but finally, the company was able to affirm its guidance for the full year. earnings, $1.45 to $1.50 per share. for a company that has only reported publicly three times, they're getting pretty good at it, and they're putting some pretty good numbers up to show for it. >> thank you, kayla. being able to stick to guidance for the year. >> not like they were a startup last year. the faster growth in a business here. obviously a lot of competition. kayla mentioned the transaction volume. that's really the kicker for this story. the peer-to-peer electronic payments here. if we want to go back to facebook for one second, that's how they hope to monetize some of these things. competition coming online. this is growth at a reasonable

price. i actually kind of like it here. you know, trading about 25 times expected earnings, i think it's pretty reasonable. >> what's interesting about this stock, it's been stuck in the mud. it's done nothing for a year. yet people know about the growth. this growth, though, was extraordinary. what dan's talking about, not just a button on your website anymore. it's truly merchants. the fact that they're growing. the take rate, you know, we can deal with that. the growth internationally, again, barriers to entry, i think are actually harder. and the leapfrogging of technology makes payments go this way a lot faster. >> apple ticks off our top trades tonight. no, not just what -- today was the worst day for the stock in two years. but instead of just taking a look at that decline, we've got a bigger question we're asking tonight. how should investors value the tech giant right now. like kimberly clark, let's say, let's look at this breakdown.

apple is down a whopping 26% in the past year versus kimberly clark, which is up by 12%. apple stock products, the iphone, and kimberly clark, that's kleenex. you could make the case that iphones are just as essential as something like kleenex. so let's go to it. >> well, if you can make that assumption, then there's all kinds of growth ahead for apple. this is crazy. we're saying it's actually a product that the people in india, these other places, or china, can no longer afford that's why they're buying the cheaper phone. if we're saying it's toilet paper and everybody can use this, apple's doing a 180 tomorrow. so i actually think eight times x cash, the fact it's trading cheaper than chkimberly clark, people are putting it in tech companies. is that the reason to throw the stock out the window today? absolutely not. >> my view on apple has been overshot on the up side.

now it's likely to do so on the down side. comparing it to consumer staples, not nearly the balance sheet like apple has. i think the key issue is cyclity. obviously this quarter just reported, the guidance that they gained for this current quarter, speaks to the fact that i'm getting -- >> buying toilet paper and toothpaste -- >> it may be cyclical. that's the feeling i'm getting. >> i think it's really the big issue here. listen, the issue of hardware companies, and they are hardware companies, facing the end of a cycle. >> we're getting at the question of why are investors -- >> not to make light of it. but listen, kimberly clark and apple, chipotle, devastating, but those folks had a lot more reason to buy kimberly products than -- it's true.

>> i don't know. i'm going to turn it over to -- i'm not -- i'm not connecting those dots. i'm not connecting those dots. let those dots hang out there. the reason i make this comparison, we're basically asking why are investors more willing to pay for consumer staple products, putting a higher multiple on them than an apple. >> i think some of the staple types are going to actually eventually come back to reality and find their way back to historical levels. that will be a problem for the people who have been chasing this, and they love the yield. they'll lose that yield as soon as those things start to pull back. because all of those gains that they think they're having, that's going to pull away from them. the most interesting thing for me about apple was services, and growth. we talk about no growth. services was growing. it was growing 20%. it's only 12% of the revenue. that's something i think people should look at a little more carefully. >> but it doesn't move the needle. >> but it will. the second highest revenue

driver. >> yeah. all right. as we head to break, let's look at shares of facebook. off sessions high, up about 8.5%. the company seems to be firing on all cylinders. we will be hearing from the ceo zuckerberg in his own words. in the meantime, here's what's coming up on fast. >> cheesy video of shoes falling are a literal interpretation of what could happen when amazon reports tomorrow. we'll tell you how traders are setting up for amazon earnings. plus, think earnings are the most important thing for stocks right now? think again. bank of america strategist says there's something else that could determine the market's next move. he'll explain when "fast money" returns.

welcome back to "fast money." i'm seema mody. shares of cheesecake factory moving lower after hours. the restaurant chain's first quarter earnings beat expectations, while revenue missed, up about 2%. the company expects to open as many as eight company-owned restaurants this year. internationally, the company is expecting as many as four to five restaurants to open under licensing agreements in fiscal 2016. this includes the first cheesecake factory in china, which is scheduled to open mid year in disney town, part of the shanghai disney resort. keep in mind, shares every up about 12% year-to-date, but falling after reporting earnings after hours. >> thank you very much, seema mody. of course, we had disappointments from buffalo wild wings, from chipotle. guy, i go to you. i know you've gone to a cheesecake factory. >> you know, because you went

with me. >> absolutely. >> it was nice. listen, i've got to tell you. i don't think cheesecake factory at 17 times forward earnings is crazy expensive. what concerns me is they failed a 54 a couple times. i think it trades down to 47.5, 48. i think you buy it. short interest in 11% will grow. the shorts will be forced to cover. >> what's your pick in this restaurant space? mcdonald's? >> one that just got beat up the other way, buffalo wild wings. they had a very difficult quarter. didn't come in for them very well. i think down at this level -- >> you're a buyer on that. we have all been to buffalo wild wings together, in fact. >> yeah. they don't make a very good margarita. i'll have to scold the bartender there. still a little rich in my blood on buffalo wild wings. mcdonald's for sure. remember, all these things, i think the multiple is a self-correcting mechanism. i think this time 19 times on cheesecake is fine. >> tonight on "mad money," jim

cramer will be speaking to the ceo. coming up next, you see him making his way on set. bank of america's head of eye yields, and our friend. he's back. he said there's something else that could determine the market's next move. plus, you're looking at a live shot of bill ackman.

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because we should fit into your life. not the other way around. welcome back to "fast money." the dow and s&p ending higher after the fed said it will not raise rates. or hinted it probably won't much the nasdaq ended lower. apple was the worst performing stock, down more than 6%. here's what's coming up in the second half of "fast money." facebook shares taking off in the after-hours session.

we'll be hearing from ceo mark zuckerberg on what is driving growth. amazon on deck for earnings after the bell tomorrow. will it join the tech or follow facebook's lead. all the details later on. we turn to the markets, because with the fed on hold for now, risk assets like stock, oil, high yield bonds all rallied. but a note put out saying you can buy in may, but the fed will make you pay. he joins us now on set. michael, always good to see you. >> thank you. >> what do you mean by that? >> we think the fed is likely to hike in june or july. when they do, if they do, it's going to mean that much of the, you know, stimulus that we've seen from the ecb and japan is going to be played out. and rising rates in the u.s. is going to matter more. i don't think the markets are prepared for it. i think it could lead to a stronger dollar. which could lead to lower oil prices. and retesting of more this year.

>> when you say you will pay, everything that was inflated by the fed's monetary policy will come back down to earth. >> that's right. the market is very clearly not paying attention to fundamentals right now. i think actually the fed hasn't been the key driver of the rally, it's more draghi and karata. i think the fed will be the voice of reason, the grown-up in the room that ultimately brings the markets back to fundamentals that really aren't that strong. >> there's obviously high yield, and within high yield there's obviously garbage, and credits that are going to get through a difficult period. we're talking about 25 byes in the fed. i don't care what you think is going to happen this year with the fed. so if we're really talking about a world where the fed is ultimately about getting credibility back, we're a long way away. i guess argentina did 16.5 billion largest em debt offering. because the market needs yield.

isn't that going to continue even with 25 or 50 bits from the fed? >> no doubt about that. that's the biggest driver of the high yield markets to date. and really since february 11th. that's not going to change from the 25 base point hike. what changes is the divergence in central bank policy. the market thinking that the fed may have made a mistake, because growth is weak. economists tracking models for 0.9%, q-1 gdp growth. we see very broad based, retail sales, vehicle sales, durable goods orders, manufacturing is lower than it was back in december now. right? so it's not that you have 25 base point hike, it's this shift in policy and the divergence in central banks that causes risk off and a little bit of a perception that -- >> it's all about the dollar. stronger dollar. >> stronger dollar often means lower oil. oil has been one of the key drivers here as well. >> i agree with almost

everything you said, except everything you said is relying on the fed hiking in june, offer maybe july. if they don't hike, though, what happens to the market? i don't think they're going to move at least until december, if not next year. >> yeah, guy, i think you need to have some sort of catalyst for markets to sell off. whether it's the fed, whether it's a major default, whether it's a chinese, you know, yuan devaluation, i think we could drive from here on out. >> michael, good to see you. by the way, what happened to your beard? >> the beard left with spring. >> it's amazing, though, equally hot with the beard. without a beard. >> say it, mel. >> i'm not going to say it. >> high yield hottie. >> i'm not going to say it. >> i'm fine over here. >> what's more important right now to the market?

oil or earnings? >> i think it's -- i think michael's right, guy is right, the fed is all about this. but waiting for this moment i think is what's getting a lot of people in trouble. it's been very painful for people that are playing forward credit event. michael's fundamental analysis is smack on. but right now, you've got people starved for yield. that event is not something you can game as an investor. >> you can't time it. i think 2015 told you that. think about where the dollar is, the dxi, the same place it was a year ago. we were talking about a lot of the same things a year ago. the fed hasn't made a whole heck of a lot of progress since then. it's probably some sort of external event, not too different from what happened last summer in a very weak growth environment globally here. he mentioned some of the data here in the u.s. is not great. although employment is. so i think we do probably muddle

along in the range-bound thing which we did last summer and risk very fast. >> we talked about oil. i still think it's oil. we've watched the markets moving around. apple you would have thought would drag down the entire market, but it did not. tech certainly has been a drag. microsoft, not so great. look across, ibm, not so great. suddenly you look at the oil names, the $45 number, over $44, by the way. pay close attention. >> the way that's moving the energy stocks to the upside. >> still ahead, facebook crushing its earnings report. we'll hear from mark zuckerberg about how he's going to keep the momentum going at the social media giant. bill ackman and michael pearson in the hot seat in front of the senate to try and justify rising drug prices at valeant.

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welcome back to "fast money." facebook is higher after hours. julia boorstin is monitoring the call in san francisco. julia? >> melissa, mark zuckerberg kicked off the call talking

about basic success in the quarter noting that the company is seeing more than 1 billion people access facebook on moeblg devices every day now. the stock split a new class of shares. that enables him to keep control of the company while selling shares for philanthropy. it's all about enabling facebook to focus on fresh urs. >> facebook has always been a founder like company, so we can focus on our mission and build long-term value. this structure has served our shareholders well. early on we received some generous offers for companies trying to buy facebook, and our structure helped us resist that pressure. >> zuckerberg said he sees more bold moves ahead, and that some of their virtual reality won't pay off for years. talking about how the company's working to help marketers easily make effective video ads and

measure their impact and people are sharing three times as much video on facebook than they did a year ago. wehner noted that tough comparisons are coming in the year ahead, k0compared to a yea ago. he also noted full year capital ex pend turs will come in on the high range from last quarter, saying the company is investing to support the fast growing business. >> julia, when zuckerberg said short sighted pressures, did he mean short selling? >> no, no, pressures that are all about the short term. for instance, he has been able to resist things such as selling the company. there might have been pressure for him to sell the company early on. he was able to make acquisitions like instagram. but being able to have a long-term vision as opposed to a short-term vision, that's what he really wants to focus on. >> julia boorstin from san

francisco. let's bring bob peck who's monitoring the call from the red phone here at the nasdaq market site. bob, good to see you. >> thanks for having me. >> we're seeing facebook up 8.5% in the after-hours session. what in your view supports the valuation at this point? >> the number one takeaway, the concern in the marketplace, macro and general ads was weighing on the big names. you saw it in twitter, google, et cetera. you had active users, monthly users in all regions. refused the axiom that there's pressure on the u.s. ad revenues up 63%. they did this in better margins, too. incremental margins of 66%. strong free cash flow. and all of this with, we still haven't seen them start to monetize yet, messenger. there's still a lot more to go. >> facebook, does that make

twitter and google look like they're losing? >> yeah, one of the themes out there that facebook may be taking share from some of the smaller players, the pinterests, linkedins, don't forget snapchat out there taking share as well. but these solid results make you wonder where the ad budgets are coming from. the bulk is coming from print traditional media. >> i know you love the pinterest, but maybe your best bet is to -- >> what's on it? >> you'd be shocked. >> i encourage you to take a look at it. >> with that said, listen, again, i think facebook is a monster. i understand exactly what dan is saying. but i agree with pete, i think this is a stock that has many levers to pull. i think their best days are ahead of them, not behind them. a lot of people sold the stock on the back of google and the back of a couple of analysts that took down their numbers in the end of the quarter. i think facebook goes up higher. >> what do you say to 8.5%?

>> look, i've been very constructive. i feel like i'm in the same place as with apple last night. i don't need to buy either of these stocks, except i think facebook should be a core. i think ultimately when you have a place where their margins are growing, i think there's absolutely their earnings are growing. the correlations with google to this quarter were very, very tight. the fact that they're accelerating past google, much better numbers than google's quarter. that's actually something to pay attention to on the positive. but buying it tomorrow, wait for this. 117 level, i want to see if it can hold that level before i would be a buyer. >> bob peck made good points as the future levers they haven't begun to monetize on. >> look, i can't help you with it. when you have a company like this eating everybody else, it seems like a one-sided trade. have a ball, get in there. it's going to a hundred. it's just not my cup of tea. they do have some levers. if they are able to show the sort of monetization that was a

much cheaper acquisition with messenger, i don't know how you monetize a messaging system. i think of aol, instant message 15 years ago -- >> they can do it with what's out. >> how do you monetize messenger? >> through business purposes they talked about so far. customer service, special offers, all on an opt-in only basis. that's how they'll go about monetizing it as well. we don't this it will be traditional advertising. >> amazon reporting tomorrow. bob, you covered that as well. what should we expect here? >> we're looking at $27 billion in revenues, a little over $1 billion in operating income. the real question marks will be on the margins. margins going forward. competition to aws with google and microsoft coming in there. how much more expenses we'll see dedicated to that going forward. >> $625 price target. >> this is one where i'd go to dan's side of this whole thing

where i'm a lit more negative. because -- >> skeptical. >> time to be skeptical. in any case, look at amazon right now, you can never get your arms around the valuation. look at each and every one of the segments they dominated, including the cloud, i'd expect it to be a strong quarter for amazon once again. >> these guys are spending a ton of money on things such as content. aws continues to dominate and rocket. the rest of the company is something that's not growing as fast. i don't need to buy forward earnings. >> bob, what are the odds it gets spun out? >> going into '17, very different business with very different margin structures. on the sidelines with a neutral rating. it trades around 35 times or so, versus 20% top line growth. >> bob peck, man. bringing it. >> we'll let you get back on

that facebook call. we'll tell you the three big biotech stocks that could cause a $10 billion move in the market. bill ackman and michael pearson are feeling the pressure from congress. our own meg terrell is in d.c. with the details. meg? >> melissa, that's right, intense grilling. we'll bring you all of the details. what they're getting asked and what they're saying, right after this short break. and that in a new house, you probably don't share the same tastes as the previous owner. ♪ [ dolphin chatters ] so when you need a little house painting or a complete remodel, we'll help you get the job done right, guaranteed. get started today at angie's list, because your home is where our heart is.

outgoing ceo of valeant michael pearson and bill ackman both in the hot seat today testifying in front of the senate on valeant's skyrocketing drug prices. meg? >> it's been tense in this testimony here. starting out with mike pearson expressing regrets over the business model of acquiring drugs and drastically raising their prices. ackman coming in saying he'll make sure this never happens again. as the committee members started grilling these guys, look at clair mccaskill asking about the raising drug prices. >> can you find me one drug valeant didn't raise prices on?

one drug, after you acquired it? >> not in the united states. >> mccaskill then asked howard schiller, the former cfo, and he volunteered one drug that didn't have a price increase on it. they said they're going to fact check that. some members of the committee focusing in on bill ackman, as he is now a director of valeant. >> so, a lot is going to change. we have a new ceo. starting probably monday. a lot of the board is going to turn over. so we're going to have a new board for the most part. we're going to have a number of the new directors that have a tremendous amount of pharmaceutical industry experience. and pricing will be top of the line. to your point on the decline in market cap, i think the -- right now companies where price has a meaningful profit, that will -- >> part of the testimony has been going on for an hour.

we understand that senator elizabeth warren just came in and sat down and may ask these guys some questions. expect it to get more intense before it wraps up. >> should be interesting. the fact that pearson and ackman are basically saying these big drug price increases will not happen again, and ackman saying essentially the board is going to be brand-new, this underscores the point that the business model is out the window. it seems like investors really at this point do not know what they're buying, if they are buying valeant shares. >> that's right, melissa. the point that both pearson and ackman are trying to make and the committee is not buying it is this is a part of the business model. a few drugs they acquired and raised the prices drastically on. and saying the other assets are competitively priced. whether investors agree is another question. >> this really turns the spotlight back on valeant. i wonder, meg, if this benefits

biotech overall as it portrays this as a valeant issue or just raises concerns once again about drug pricing overall across the industry. >> that's a good -- that's a very good point. they actually named this hearing valeant's business model. it is clearly focusing on valeant. what you're seeing is it stretching across the industry, into companies with more similar model to valeant much the pricing pressure is felt across the industry. as long as there's any company that's considered a drug company, which valeant is, it's bad for everybody. >> meg, thank you. meg terrell in d.c. at the valeant hearing. >> the most difficult thing about this thing is there's no clarity. we don't really know what valeant is. what do they stand for? it's very confusing right now. we know that there are a couple of companies that are real companies that they acquired. but there are some that we don't know now about it. i've personally been staying out

of this thing. it's had incredible volatility. the stock down 60%. still the sell is still on. i'm staying away from it. >> also, think about the companies that these guys bought with their stock as currency. a case where, i mean, you could make an argument that management was really shrewd in being able to use that. and inherent value here. i agree with you guys. ultimately their core business is not something we're investing in at this point. the valuation is not really relevant. >> this comes ahead of a big week for biotech earnings. dan had to move over to the smart board because there's so much in this space. >> some of the things you're talking about, valeant, obviously extended over to a lot of other names in the space. the s&p, biotech, etf still down 40% from the highs last year. up about 25% from the lows. we have big biotech reporting

this week. big expected moves. these are three of the largest names in the space. amgen expected to move 3% in any direction. when you do the math, you know, it's $3.5 billion, $3.3 billion, $5.5 billion. here's the thing. if this sector is going to get back on its horse in a very difficult regulatory and political environment, it will need these big names to do it. the either direction moves to go to the up side, or see the xpi probably making a move back for those prior lows. >> amgen is more after the bell. look at the fourth quarter a few months ago. they crushed eps. they raised guidance, 12 times forward earnings. it's cheap. whether the stock goes up or not, i don't know. but i think amgen is one of the best in the space.

>> up next, final trade. stay tuned. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and 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. td ameritrade.

final trade time. we want to get the final word on facebook. bob, what are you telling investors tomorrow morning? >> strong advertising driving this acceleration revenue of 60%. 2 billion more users to monetize. grade "a." >> all right. bob peck, thank you so much for being here with us. time for the final trade now. we go around the horn here on the desk. >> to bob peck and zuck, it's going to go higher. >> interesting. tim? >> very nice. starbucks in a position again. they have growth across multiple channels. i think the pullback is overdone. >> xlk, carter's call to sell at the top of the channel, i agree with that. i think facebook is the only name in the top ten holdings that's been better. >> you're going on vacation. >> i am. >> you have yourself a good time. >> thank you. >> wherever you're going, have fun. >> thank you. i will. >> you know what else is

important? >> what? >> gold market. look at pete over there. >> i like it when you make that call. >> thanks so much for watching. tune in tomorrow at 5:00 for more fast. . my mission is simple. to make you money. i'm here to level the playing field for all the investors. there's always a bull market somewhere and i'm here to help you find it. "mad money" starts now. i'm cramer. welcome to "mad money." other people try to make friends. i want to make money. call me or tweet me. you're crazy. that's what i would have said a year ago if you told me the market could hang in there with the biggest company