integrated and can they really believe the production numbers? >> clarifying the 5k and 10k figure. what it includes and doesn't include. facebook? >> are costs going to have to ramp up? head count will continue to go up and that's the longer term story about margins and not about this quarter. listen for that as well. >> that does it for "closing bell." let's go to "fast money". >> fast money starts right now live from the nasdaq marketsite overlooking times square. pete najarian, tim seymour and guy adami. is the apocalypse already here? a top analyst took down media stocks on a cutting that shocked the street and he'll be here on why it's only going to get worse. jim cramer will be here to talk about the most important thing apple's ceo tim cook just told him. when we started off with the two big names that just reported earnings and facebook crushing expectations, but the stock is down about 2% and tesla posting

a massive loss and that stork is do sto down almost a percent. phil lebeau is gearing up for the tesla call which starts in 30 minutes and we'll check in with him a little bit later and we have david garrity manning the red phone for the conference call. we'll hear his instant reaction later. first, we cake it off with julia boorstin who just spoke with sheryl sandberg moments ago. >> i just got off the phone with sheryl sandberg and we spoke after the earnings crossed and she wanted to talk about what drove the costs to better than expected revenue and earnings. the brands are moving to facebook and mobile. advertisers are moving dollars over to reach them. here's what she said about growth outside of facebook's core app. >> instagram is a growing part of our business. we have now 8 million business profiles on instagram that are small businesses and we're seeing a lot of usage and we are

casting ads and stories. messenger is really in a much earlier stage and something that we are really focused on user experience and beginning to think about how businesses and people connect. >> just today, facebook said it will hire 3,000 new employees to monitor videos posted on facebook. i asked sandberg if advertisers were pulling back in response to outcry over the video of a murder shared on facebook last month. here's what sandberg said in response to that question. >> we are in constant conversation with advertisers and we have not seen a revenue impact from this yet. so that's not why we did this. we did this because as mark said in his post, there is no place for this kind of content on facebook, and we are going to take every step we can and that includ includes hiring more people and building better tools to keep our community safe. >> facebook's earnings call is just getting under way right now. sandberg didn't provide any specific guidance for the next quarter or the rest of the year,

but we're hoping to learn more in the call about how expenses are expected to increase and if facebook still expects ad revenue growth to slow dramatically in the second half of the year as the company hits limits to ad load. how many ads they can have on that app at just one time. guys back over to you. >> thank you, julia boorstin. the stock is not getting much of a boost in the after hours and tesla is out with a big miss and the stock is down by just a percent in the afternoon session. so after huge runs in both of these names, what do you do? how do you interpret the stock movement on the back of these reports? >> i thought the facebook quarter was great. i think year over year quarterly revenue up 49%? it's a staggering number for almost a half a trillion dollar market cap company. i mean, their growth is ridiculous. there are 7 billion people on the planet, 1.94 billion are now on facebook which is, if you think about it pretty remarkable and maybe people are saying where is the growth going to come from and that could be it, but i'll tell you flat out this is a significant quarter and

maybe the sell-off is people taking profits in the name. >> the stock did rally 10% and that's serious market cap and obviously incorporating a lot of good news and not too different from what we saw with apple last night. i know the comments from ms. sandberg was suggesting hiring and there was a number on the table about 3,000 employees and they've hired 38% higher this year than they did the prior year. here's a couple of other good things and i'm not trying to be sanguine about the story right here, i was just running through the numbers. there is a big boy announcement right here. they'll stop reporting adjusted gts and they'll start reporting gap. a lot of times we'll sit here and say it's trading 40 times, no, it's trading 30 times and that's the differential and that's something that investors should like to see that level of transparence. >> and around the levels the stock's trading 26 and a half times and it's probably fairly priced and for a guy that tends to complain about the valuations and getting year-over-year

growth and 51% year over year for this quarter is awesome and think about the things that are most important and the daily average users are growing and their average revenue preuser and think of the people that would like to be monetizing the way facebook is. mobile ad is 85% of their number which is staggering. i'm almost surprised we're even talking about mobile because effectively mobile is -- but think about it, that was a big question for the company at one point. >> that was the big thing, could they convert to mobile and obviously it was not executed perfectly on that. >> the issue they start to run into, and it's something if i wonder if we thought about this in the past much. at some point are they too saturated with ad is that going to be an issue for them and what kind of growth does that limit them? but you still have to figure out how they're going to revenues out of messenger. she talked about that and the instagram numbers are absolutely

impressive and i still think there are levels they can pull and it does make you pause a little bit for facebook and say at what point are there too many ads and are people going to say enough is enough? >> in the past quarter they've proven that each with a competitor like a snap that had been a threat before the ipo and they could put out features that just compete directly been on one with one of the fastest growing sub-18-year-old demographic. >> there was an interesting article i saw today that was app annie which looks at some analytics about users on different mobile platforms that snap chat does have a unique demographic and they're not on instagram and those sorts of numbers there. and they have some runway. one of the things that's pretty clear. messenger, they haven't told us how they'll monetize whatsapp yet. if they're short messaging and they're not going to use it for payments, the one thing i will say is the guy who runs messengering which is whatsapp

mess erjer is a former pay pal. so if they ever do show up one day and talk about the massive agenda to monetize pages and something like that, but i'm with these guys. i don't know how you buy the stock here at 150 and 148 and it's had a 10% run. just like apple, there has to be a level where it can settle in. >> what is that level? what do you think? >> to dan's level, the real level is back down to the 140 level, i think. that to me makes the most sense. with that said, we're looking at it at 152 now and that's a significant move to the down side, but if you'rie asking me,i see dan eyeballing it there, right? as we speak. >> the other thing that's very important about all of these mega-cap names that have reported this week over the last two weeks and the ones we're talking about is the component that they make up in the qqq. so if you think about the passive investing that's going on, you can't be surprised. you could have expected this number maybe to sell off even

though i think they were fantastic numbers as dan pointed out, but you have this passive money elevating these stocks and that is what scares me because i think -- >> apple, too. >> and amazon and we're not getting a full read on the sensitivity. >> what happens to the nasdaq? what does this mean to the nasdaq's moves? >> i don't think it's been as negative and i've heard about the passive investing and the etf money and all of that kind of a thing. i think that's in effect and they've executed like they needed to when they've come out with earnings so far when you're talking about the majority of the big-cap nasdaq stocks. so far i think it's oppressive including facebook. i still think facebook has upside. i don't know necessarily that the 1.48 level will go to 140. i still there's more room to the upside. >> i saw you today on halftime. >> thanks for watching. >> i love the show.

but blase about the stock and really being unchanged and this stock is basically unchanged and after a 10% run. >> the thing that makes me nervous about the nasdaq is this concentration, i don't care about paths and i don't care about this. people forget that stocks can sell off. big stocks can sell off. apple a year and a half ago sold off 33% and this stock, facebook sold off 10% in november from its highs, pre-earnings to its lows and during election. i just think the fact that investors don't feel any risk right here is a real nerve-racking thing and the concentration in these five stocks only exasperate this. >> we'll talk about this move. apple's move yesterday in the after-market session was down 2.25% and it finished flat and that was a pretty remarkable move. and we have tesla, by the way, after hours and if you had to choose, i know you wouldn't choose tesla. >> i know. >> picked out of the game again. >> what's the game? >> would you rather?

both have just reported and we've seen massive runs into earnings for both of the stocks. tesla or facebook? >> would you rather? >> tesla, 308 and facebook at 148.5. >> tesla. ding, ding, ding! tesla! >> i think there's a chance it trade out from current levels, but i will continue to say that the upside in tesla is significant from the levels wooe currently trading. >> why is there upside in the stock? >> because they're believers. >> that's gone through the mono and in fact, we're betting on half a million cars by 2008. >> then we're having interesting things. you're buying a dream. >> so then why do we care about deliveries. and rarely will i have it? >> where is the upside? >> how high can it go? >> no. where is the upside in the valuation? >> he talks about the power grid and revolutionizing. if tesla can somehow figure it out. >> if it comes out with a pup trick that would be upside, wouldn't it? if they could tap into that

market. >> i am a pickup guy and i own several and that is a giddy up to me. >> and a couple of them, i said. not seven of them. >> your choice. but my choice is the one they own which is facebook right now and the reason i rolled up and i still wanted to be involved in the earnings call is i thought the numbers would be that they delivered, but we'll find out tomorrow and the next day how that reaction might change. tesla is an interesting one because the guys that are long tesla do not sell under any circumstances and that's to your point why there is a lot of upside. >> he buys every time the company sells. >> well, then isn't that a great floor under the stock? >> unless you think it's just a giant ponzi scheme is another way to think about it. >> can i play? >> yes, of course. >> facebook over here and dan will give it up. >> go ahead. >> i would be -- i think they have less risk to the execution, but i would rich rather over at guy's level at 140. >> three facebooks and one

tesla. >> three facebooks and one tesla. >> by the way, tesla's conference call kicks off in 19 minutes and we'll stay on top of the two big stories, but coming up, the man who took down media stock are putting out a note on cord cutting that caused mass selling and he'll explain what has him worried about the space. jack dorsey turning into a jack-of-all-trades and both his companies twitter and square, taking another leg higher on earnings. is jack suddenly their best asset and cook and cramer, the interview everyone is talking about right now. cramer will join us live from san francisco when "fast money" returns. whoa, this thing is crazy.

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of the metals and mining stocks, they take the stairs up the peak of the trade is probably mid-december. i think this is weak there is to buy. i don't know that you have to buy it tomorrow. and ultimately when i look at copper, i think it has the best supply/demand in the fundamentals space. >> that to me won out. >> i have to ask emerging markets this. we can talk about dnb they talk me. we used to talk china, shanghai, shanghai is quietly down 5% over the past month. you see the crude. now we have metals here, is there something going on as relate os edemaas relates to some demand? >> i don't think following shanghai will give you a great read on china. it will give you a great read on some level of what the government is trying to do to cut down on speculation t. spec

we saw in the coal the ore and some of the copper markets out there was unbelievable. so i think they are leaning on this i think that's what this is. ultimately, yeah, copper needs to hold 250. i think it's an important level. if anything, i have been looking at consumption trends in china. they're up. >> that will give you the greatest read. >> that will be lumpy. ultimately, that i are pulling back on production. >> we invest in the equipment makers, if you like metals and mining? >> for example, caterpillar. >> or others. exposure. >> i think cater bill e pillar on valuation is ridiculously expensive. you got to think that every hole that is dug over the next ten years will have a tractor behind it. i'm not surgeon that's the case. think think that stock is too rich to be low. >> i tend to agree with you, especially at these levels. i think an area seems to be going, very stealth for the rail. when you look at what they've

done for the performance they've had, going into earnings and since earnings, it's been really impressive. csx, all these various names. all of them fairly strong. to tim's point, he's not necessarily bashing the upside or whatever in metals, but when you start to look over at the rails, what is being moved around the country, boy, these guys are all doing very, very well. >> looking at glencore, looking at u.s. steel, some of these carts are in no man's land. glencore traded below 310. the next stock could be 240. it may be around 18. this is a stock having massive pullback. there are people out there on the street, a couple houses are bullish. they cleaned up the balance sheet. steel prices are not collapsing. so it's an opportunity. it may not be tomorrow. ahead, tesla is down a percent following the earnings report t. conference call is about to get under way. we will tell you what ceo elon musk says later this hour.

facebook 52%. gafd gary is on the old red phone, listen to to that conference call which is under way. we will check in with him after the break. in the meantime, here's what's else coming up on "fast." the apoapocalyptic tv is he. now might be a good time to buy. we'll tell you what that is. plus, cramer, cook, and the interview that will rock wall street when "fast money" returns. .

>> take a check on shares on

facebook in the after hours session, hitting after hour session lows. it is down by three and a quarter percent. this is a move that happened in the past few moments. let's check in for his take on what happened, david, what happened on the conference call? david? >> reporter: hi, gampl. on facebook after hours basically is reiterating our call in the second half of the year ad revenue growth will slow because ad lows are not significantly increasing. their ad watcher, software, the efforts to fight ad blocking on desktop. >> that will be the main area of weakness, from that standpoint, nobody has asked questions, management did reiterate the back half of the year, facebook will see slower growth from revenue from advertisers. >> david, we will check in with you later on. we know you are an active kind of guy in the after hour session the pre-market session.

if you missed facebook this whole way, would you go in? >> i don't think so, i think based on exactly what we we heard there, which is all of a sudden you are talking act the second half of the year, that's something that i think is on my mind and something i would have been concerned about, wanting to know about f. that's what they're projecting for the second half, that makes me a little bit nervous zpli think that was out there, though the second half, guys, the things that you are really concerned about are offense and what these guy versus to spend to keep -- >> that has been a problem in the past in terms of the software. >> absolutely. meanwhile, maybe they should be doing it. let's face it, this company is starting to blow through cash. i mean this. >> $30 billion and no debt. >> i guess my point is they got a ton of recaps per generation. they should be spending it. it's going higher. >> this is a story that i wanted to hate here and there and whatever. they are doing a lot of things. >> a lot? ? or there's times, ki think back

over the last ten years, guys like bezos is the second coming of steve jobs, he would get crucified for spending, all that kind of stuff. they're actually telling you what they will do. they told you they will hit a limit, they will not jam too many ads. to me, i think that's impressive. you don't want to buy it here. >> that will be a shot lower. >> this is a session by practically 4%, still we will bring you developments as you have them. the numbers pointing to more pain for paid tv, dom chu is in the newsroom with more. >> mellissa, life comes at you fast, the entire landscape is shaking around. it only took a few years to hit that next evolution. by that, we are talking the whole forbes cutting thing, more and more folks are down with ltt yeah you know me. over the top ways to access entertainment content outside of the traditional cable and satellite box is gaining traction. we got a new entrance as google

announced it will offer on its live tv streaming service, 50 channels, 40 bucks a month, but that may have been one of the big reasons why you saw that table content provider, disney, via com, discovery, the idea that spread compression may hit content companies as consumer costs continue to be driven by new skin my bundle offerings. now another part of that story, moffett issued a more bearish note telling kwients clients, the quarter has arrived. we are seeing the pace here to see the worst ever numbers for subscriber losses in a first quarter. he estimates to be around 762,000 subscriber losses which is more than five times in the quarter last year. now it wasn't that long ago we were talking how content was going to be in and consumers would be up for it. just how much will they pay? of course, we got a story from

the wall street journal today saying sources familiar, verizon is striking a deal with the nfl to stream the jaguar's london games september 24th. they will pay around $21 million. those sources can you watch it for free on aol that day. by the way, speaking of huh will you, ceo mike hopkins, joining the ""squawk,"" a big interview, mem lisa, on the future of the media business. one we'll all be watching closer, guy, back over to you. >> certainly will. thank you, dom chu. the man behind the call of the day is here with us on set. craig moffett is here, a senior analyst, craig, thanks. is this the apocalypse? is this what it looks like at the beginning here? >> it wasn't our call. all we did was observe something is that i think our clients have seen throughout earnings season, right? which is that the ad numbers were weak on the media side and now you are starting to see really weak affiliate numbers and everybody thought that the

affiliate numbers were going to be held up by these ott guys. >> that all of these virtual cable operators over the internet were the salvation of the media companies. suddenly realized, wait, that's not working. everybody is going down with the ship. you saw weakness in the media stocks. i think $12 billion of market cap, you saw another billion wiped out in satellite and telecom. there was carnage everywhere. i think people are looking around and saying this trend is not going to be good for anybody. >> in terms of the subscriber losses, though, you point out that this is even happening on top of very, very strong household formation in the first quarter. it was 157,000 new households formed in the first quarter according to census borough. as you say as you point out in the note, direction ally, that's right. the numbers look horrendous. >> look, there is no way to put a good spin on it. and the, it was the worst quarter we've ever seen for the

rate of sublosses. the category is shrinking by 2.4% right now per year. it was the worst acceleration we have seen. 70 basis points acceleration, quarter to quarter and it was the worst quarterly loss we have seen in the first quarter, since five times we saw last year. so again, it's sad, but the really interesting part was it's not just sad for the distributors. it's not that these customers are leaving and going to virtual over the top players. because those guys were weak, too. so the content category was also down by about a percent-and-a-half and remember for any individual content player, they're doing worse. because they're not included in every one of these packages, they're on some but not others. >> right. >> so it puts real pressure on the affiliate feed story for the content companies and it puts real pressure on the media business for the distributor. >> it sound like you are saying everybody hurts in some way, but

in terms of stocks, which stocks are okay? >> look the cable guys are by far the best insulated here. because i have been saying this on your show now for a good ten years. the cable companies are not media companies. the cable companies are infrastructure providers. they got the winning infrastructure. they're fine. the satellite guys are not fine. at&t will struck him. you saw dish if real trouble today because people are realizing the core business, separate and apart is going to really struggle. so on the distribution side, i would say, stay with cable and not the other names. >> in this sort of environment, what sort of deal making would you anticipate? do you think this causes deal making and what sorts of deals would be made? >> ultimately, for the media companies, we have been waiting a long time. my partner michael nathanson covers those. michael has been waiting a long time.

you inevitably see people doing cost cutting deals to get the synergy to a lower revenue model by having lower costs. so you are likely to see that activity. on the distribution side, i think everybody is sort of frozen for a missouri. when the auction quiet period ended and everybody said, we're about to see the tsunami of deals, that, remember, they weren't able to talk to each other for a year so suddenly, everybody said sprint and t-mobile and verizon an charter and every one of these things, people need to cool their jets a little bit. it's going to be a lot longer i think for any of those big deals to happen. they're complicated. they're there are a lot of tasks not taken that these companies need to work to to say, if i commit to this, it means i will not comblit to this, this, and this, you don't know the deductibility and interest, people need to sort of slow down a little bit and anticipate a longer wait before some of this big deal-making happens. >> all right. craig, thank you, craig moffett.

you are pointing out the media stocks today, so what do you think? >> i'm not certain, the time warner at&t thing looks like it's a go. you may see a mad rush for this sort of thing. luckily, at&t has the spectrum the wireless, they have directv and they will go for content. so it's all going to have to line up that way. i don't know how you can have one behemoth and the rest will piecemeal sort of thing. i agree with him about the cable company insulations the pipes, if you are ott, you are reliant on your internet connection. a lot of people using cable for a long time will not be sachd. >> i think there are different part of the content sphere that are better protected than others. disney is a billion globally. this, i think, largely independent, consumer products is taking it theme parks. but you also have, you think about sport franchises. think about content that people are overpaying for. think about the contracts. pete might be in with me on the

nfl. it seems this is that secular thing that can hit ticket master, can trickle all the way down. i think the profitability to dlivgs present that product, may be under pressure because of this. >> people think netflix is in the crosshairs. >> i do. we talked about it for a long time. does it make sense? i can make it compelling that it does. you know what will happen, i think there is maybe a 25% chance. i think if you look for a succession plan, reed hastings will probably step in. in terms of stocks, via com traded as if it has the most to lose from this happening. they reported earnings tomorrow. dan points out, that will be interesting. >> speaking of which, cbs reports tomorrow. so dan what is the options market complying? >> obviously, two names considered combinations, too, when you think about it. tomorrow morning with estart off before we open. about a 5% move in each direction. that stock was down almost 7% today. it closed down very near its

lows. the options on average for the last four quarters, the stock has moved only 1.5%. >> that shows trepidation in a low vol market. one of the things that was interesting to look at. we have a couple chart here of vi a com, it broke below the 200 day moving average right there. really interesting technical support. it was down about 15 or so percent from its 52-week highs. still up on the year. so i think there is a little bit of room to go here. i have a longer-term chart here. this thing, when you look at that support, there is a lot of room all the way down here. let's go to cbs real quickly. the afters market is about 4%. >> that thing on average only moved about 2%. i have a couple of charts here. we have the one year to start out with. this stock is actually only about flat on the year or so. to me, though, what itself really interesting here.

this thing kind of broke, this uptrend here. tomorrow, they have to hold, that i have some important technical levels. >> all right. thanks for. that for more "options action," check out the slow friday 5:30 eastern time. let's us check on the big earningings as we head to break. we have off the session lows down by almost 3%. tesla is sort of recovering here. it's down by about a half a percent. we got comments from mark zuckerberg, elon musk and jack dorsey on square and tim cook sits down exclusively with jim cramer talking everything from earnings to job creation. cramer will bring us those comments when "fast money" returns. [pony neighing] what? hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly

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>> welcome back to "fast money". it is the interview everyone on wall street has been talking about all day. sitting down with jim cramer. he joins us from san francisco. it has been exactly one year cook was on your show. what was the most interesting thing of the interview today? >> first, thank you so much for having me on the show, mellissa. 50s points he came on.

this time he is talking job creation, what apple is doing for the world and u.s. economy. take a listen. >> we have a developer community. in this developer community is almost one.5 million people now. -- 1.5 million people now. this is folks, a party of one to larger companies. they're writing apps that clang the world. we're giving them the platform and we've created an incredible store that allows them to sell their product in 155 countries in the world. it's a really unbelievable empowering experience as any business. >> why i like this, melissa. because this is a part of the service revenue stream if you are going to get a bigger price per multiple it must continue to develop. it's a virtual circle as tim cook points out in this evening's interview. >> i look forward to that jim, in the meantime, i want to ask

you about facebook, it's now down 2.8%. it seemed kind of strong. what do you make of this price action? >> well, i think the cfo has done his best once again. this is the third quarter in a row to try to explain to people there will be a meaningful slowdown, keep that word "meaning." and spend has to go up. he's done this the last two times. people get scared. they get freaked out. tomorrow they open the window for insider selling, get hit again this stock moves intraquarter, it doesn't move on earnings day other than down the last two times. >> thank you for that analysis. we look forward to that full interview with tim cook and jim cramer tonight on "mad money." thank you for joining us, jim. let's trade this apple we mentioned earlier, yesterday, was staring at a decline of more than 2%. it finished the sex basically flat. >> there is again on some levels the next couple quarters, people

say they could be throw away quarters t. services business at least the high margin business, they're keeping their average selling price. that's going up, margins are better. people can buy into this story. you need to buy it now. >> that itself the case the stock is being elevated by index funds. >> i mean it was a $7 billion quarter in revenues. you know, 18% year over year growth. it's okay. it's not fantastic. >> not fantastic? >> it's fine. >> when china was a big driver, stock was 100% year over year, also, my point is they have half subscribers for apple music than spotify does. they don't have a video -- >> did they grow on the last quarter on the music side? >> they have a billion installed base, how can they not grow? >> wouldn't you want a company that has the ecosystem -- >> i'm saying that disney is not going to have a shot to buy netflix. apple is going to have to buy it. if they're going to have a real video product that's a part of

the services, they will need to ramp up their music. they should buy spotify and they should buy -- >> they can hit their target by doubling service revenue by 2020 without an acquisition. >> they can do 30 billion this year. here's the thing, you talk about a base, you talk about a hardware business that the margins will not be maintained. they have 40% margins on the iphones. they will have 7% margins for services. >> talk to me about the price action today. and i don't know if you saw this uvs note saying apple is owned by active fund managers. >> i wouldn't have thought that. >> exactly. you would have thought it was the most privately traded on the planet. >> google is the most actively owned. >> yeah, right. right. >> if that's true. i am surprised. the price action today was great. i will say for ap to him get the multiple they deserve, services which are now 13% of revenue needs to be in the low 20s without hurting their hardware or their core businesses.

i think if they can get to that it go es to whatever multiple to a high teens multiple. >> got to get this clear now. it is jumping in after hours action. jack dorsey is on the calm. let's head back to san francisco. deidre will tell us what he had to say. >> reporter: lately it's been an upside from dorsey's other company. his square has been on a rom for three quarters in a row now topping street estimates. that has sent shares surging more than 50% over the last six months. it shot up to a fresh all time high in the after hours. they are optimistic about capital and retail on the earningles calm, dorsey mentioned caviar. it's the delivery service she says is turning into a food delivery platform. also notable this quarter the subscription and services base revenue is up more than 100% year over year. they are expanding to new regions like the uk, this past march, dorsey says there is an

opportunity for hardware in particular. >> the uk is interesting for us, corresponding to our hardware the chip card reader was built to be a global platform. but the uk is interesting because it's over 70% of transactions are tap transaction nfc-based. so we have a perfect product market fit. >> reporter: mellissa, no questions yet on the call, on reports of an apple competitor and the money transferred to compete with forecasts as well as then, we will be talking to cfo sarah fryer later today and we will be sure to ask her. >> thank you on this big move on square. props to grasso, he had square into earnings. everybody on the desk that night went along, they said they would buy as well. where do we stand? >> i bought it. i longed it. the question is what's the multiple? there is a lot you bought. i think this is at a time when there is a reinvig racing of the small business, these guys are

the toolkit. they've proven that, think of all those services we we heard about. they are nailing it. the opposite of what apple is doing. these guys are kicking it on four, five different channels with existing customers, good tore them. >> jack dorsey. >> a month where twitter is up, a month where square earnings is up 6% on the back of the report. should we be breathing easier? >> i think it's a tough day. here's the thing, twitter and square seem to be both executing a plan they laid out a long time ago. they have one thing that's consistent, we talked to dead reand sarah fryer, she's a very receptive person. anthony on the other side, very respected coo. they have great number twos. i don't know how big the benches are. if 245i want to get involved, that i can say, listen, things can go a lot better if jack was with one. >> still ahead, tesla lower

after a big mess. you won't believe what elon musk said, we will bring you those comments. it's not just after hours earnings, facebook is trading lower, in spite of the beat. gba research manning the red phone, he has been listening to the call. you are watching "fast money" on cnbc, if irs in business world wide. she said the future freaks her out. how come no one likes me, jim? intel does! just think of everything intel's doing right now with artificial intelligence. and pretty soon ai is going to help executives like her see trends to stay ahead of her competition. no more sleepless nights. - we're going to be friends! - i'm sorry about this. don't be embarrassed of me, jim. i'm getting excited about this! we know the future. we're going to be friends! because we're building it.

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money". i'm phil lebeau in chicago where we are monitoring the tesla earnings call. it began a couple minutes ago. elon musk had a couple questions about production. they did mention that model s and model 3 might be causing some confusion with people placing orders. he said they cannot quantify it. they have seen cases where people believe the model 3 will be like the model s. only offered at a lower price point they are saying emphatically in the investor letter, that is not the case. it will not have the same level of sophistication or features that you will get with the model s. here's elon musicals talking one of the first questions was on the future of electric mobility and whether or not it extends beyond cars. >> there is not any segment of transport that will not be electric.

in fact, i am confident that all transport will go fully electric with the exception of a rocket. >> all transports going electric except rockets. >> of course, not rockets, phil, that would be inane. in terms of the shareholder letter, tesla is one of these companies that has a different distribution method for earnings. it looks like everything is on track. they expect to bring 2 billion by the time the model launches in july. >> reporter: correct. >> is that what people want to hear, the launch is still on for july? >> reporter: in theory and first sales happening, deliveries happening by the end of this year. although we haven't seen that quantified. in terms of production, there was a little confusion ability this. it wasn't properly written or the writing in the investor letter is a little confusing. model 3 will be overall proukts production by the end of the year, at some point it will hit

all vehicles sometime in 2017 and all vehicle production at 10,000 per week, not just model 3. it will be 3 and x. >> the outlook looks solid. even on a gap basis when you include the credit sales. the margins improved sequentially, which i would think investors want to hear. >> reporter: right, that's why so far, i say this, it's been an uneventful call so far. you never know when elon will hop back on. >> thanks, phil, phil lebeau, uneventful the stock is down 6%. >> the negative story, every time they sell a car they lose money. they probably have a billion-and-a-half dollars. you have to really believe in his visions, their vision to own the stocks at this level. people that have been nay sighers for a lot of reasons fail to understand the power of

the name. is the story over or just beginning? i think it's just beginning. >> pete. i tend to agree with guy. he has that short interest as well. it continues to build. the stock continues to hold onto it. not just elon. many of the original shareholders are holding their stock. so there are reasons why when they hit certain levels, it seems to bounce back very quickly. we seen it time and time again with the stock. it's an interesting story, i don't know about the electric. i still question. i actually get the pickup truck. i wonder whether or not the semi idea which he pulled a few weeks ago. i'm not sure that one is as doable. >> can ski an important point? >> quick. >> if the stock is at a 30% sell justify, you don't have to have an all time high. >> facebook, it is just wrapping umm. ceo mark zuckerberg commenting on the issue of fake news. >> doubtful, we make changes to our news feed ranking to our review motivation to spread

hoaxs, we are, whoing with independent fact checkers to give more people whether or not on article is disputed. we launch educationals in 14 countries to spot fake news. >> let's go to david ger gerity, what do you make so far? >> well, what we are seeing right now is cheryl sandbergtalking about how videos are more important. they want to have longer format videos. but they haven't fixed out yet how to exactly put ad units into those longer form videos, so what we really set up here is a situation where dwell time on facebook will rise, but the monetization arguably, they haven't yet found a way to make it constant. so if anybody is thinking here that this is something that helps to drive deceleration of ad growth in the second half of the year, they're probably not far off the mark. >> sock.

so in light of this decline we are seeing in the after hours session, i know you took down your cellfy shingles. is this a chance to pull back buy? >> certainly the story on facebook long term remains quite strong, but i would argue that you are looking here at the second derivative turning negative, which arguably is never good for a stock and facebook has had a great run so far this year. so if people are concerned, might as well take some money offer the table. see how they make the transition and as better indications arise, this monetizing video then maybe go back in. >> all right. david, thank you. david gerity dba. you agree? >> i think ultimately that valuation needs to trade 25 times. it's growth they are getting right now, 49 performance. i think a lot of that is a net price. >> gooi, quick in terms of levels. >> >> i say again the level we saw early april is 140.

if it trades 85, it's close. >> up next, final trades. when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and.

>> time for the final trade. >> i thought about, facebook's gotten sold off, waiting for that opportunity. i think you own facebook tomorrow, giddy up. >> tim. valuations in banking. european banks, if you think the feds are moving faster, european banks. >> i sell his facebook. >> buy it back at 140.

>> bring it. >> which reversal. you can learn about it. >> "options action." >> guys what's your final trade? >> spirit, the sucker has taken off, mel. >> i'm melissa lee, thank for watching. don't forget jim cramer's . my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. hey, i'm cramer, welcome to "mad money," welcome to cramerica. my job is not just to entertain you, but to educate and teach you. call me, email