it certainly already is in terms of regulation. crude oil is down from the high, so that's why you have the energy companies -- >> 100 ceos. thank you very much. michael, thank you. that does it for "closing bell." "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlook new york city's times square, i'm melissa lee. tonight on fast, president trump in israel as his international trip continues. a major storm could be brewing here at home. we've got the details. netflix is up nearly 15,000% since its ipo 15 years ago. but are the big gains behind it or is this still a must-own stock? a major move at ford as it kicks out ceo mark fields amid the falling stock price. we've got a special report on the road to a possible turn-around. but first, with estart off with a rally in the market, the gain

since the one-day sell-off last week now approaching record highs. tech stocks driving the rally. up 1%. energy is the sector closing lower today. and that's what we've seen all year. check out the sector leaders for 2017. tech, up 18%. consumer discretionary, up. financials basically flat for the year. stocks grind higher. here's the question. do you stick with what's working or start buying the laggards? >> what has been working recently, but not all through 2016, in my opinion, is biotech. 2016 was a lost year for biotech. it's come back in the last month, month and a half, but still in my opinion has a long way to go. i'm a big believer in the market doesn't give you this long to sell the highs, which in my opinion means we're going to continue to grind higher. my one concern last week where

it flipped-. market continues to grind higher. i think biotech which lagged all of last year will start to find its mojo once again. >> transport is an area you're starting to look at? ? i like the quality within the transports basically. doesn't necessarily have to be the rails. you saw good earnings power in the last quarter. fedex, the numbers they put out were fantastic. and they are the best of breed. when fedex is going sideways, even underperforming, we actually see global growth. i believe the energy sector. we're going to have an opec meeting this week. energy stocks have been trading essentially with a negative bias to the underlying spot prices. i think laggards could outperform. this is a little concerning if you think it's like 2015 when the market went straight into tech anding else was selling off or not performing. you could make an argument this is very disturbing for the market right now. >> if you had $1 to invest today

in technology, anywhere in technology, versus let's say your transports, your fedex, your ails position, what would you choose? >> what's my time line? >> next six months. >> i think you could buy some of these. i think big cap tech has had a tremendous run. that's a tough call to make, but yes, i would put it on transports on the six months. >> from my book, what do i have? pretty big technology bid. it's almost back to where it was before googt was down, what, $22 on last wednesday's close? almost all the way back. i still like it here. if you went long it, it's the same as buying. i have financials, a day like today, nothing. hasn't been great this year. but i still like the underlying story there. i go long it, which means i'm buying it every night. >> listen, i've heard transports, higher highs and lower lows. your answer to that question is, it's proper.

what is my time horizon. the next bit could be lower. same for the russell 2000. that does not act well, a few percent off the highs. the bank stocks -- >> but it looks ready to break. >> i don't like any of them. if you ask where i put a dollar in right now, the s&p 500 seems to are the safest. it's heavily weighted through the large cap tech stocks. it's my opinion, it's been my opinion for a while, the only thing that gets done with the president's legislate you have agenda is probably repatriation. >> you said you would like to own the s&p which is dominated by tech. >> and that does well under that environment. what i'm saying, i'm giving it an either/or. >> you have a negative call on transports and negative call on the russell. >> and banks. >> but what does it impact the s&p 500? >> the s&p 500 is grinding right now, low volatility, despite the underperformance of the few sectors. you could look at that and say it's quite bullish.

if we get any surprises on the legislative agenda, the s&p is going to break out. it will probably go at least 5% higher. very low vol. it looks poised to do that. that being said, it's susceptible to volatility shock to the down side. >> is it? i don't know. we saw one wednesday and here we are right back here. anytime we see the sell-offs, here we are back here again. >> i agree with you, karen. i also think that from the positioning perspective, think where we are on the ten-year and dollar. we're back to 2016 levels, march, when people were so, so offside. the ten-year, back to pre-election levels. to me, no one is playing the transport trade. i like that. i like the fast that the market is so not positioned, yet we'll have the european pmis tomorrow that will show they're still at six, eight-year levels and the economy is doing fine. >> oil field services, i feel i'm a little underweight energy.

haliburton and schlumberger, names like that, the analyst community, it's almost universal buy. >> buy? >> yes. with price tar gets significantly than where they're trading. >> who's left to buy? >> once one of them turns, maybe that starts negative pressure there. i don't like to see the whole analyst community in agreement. >> but they've been wrong. right? isn't that kind of the -- >> right. >> haliburton, i actually like haliburton here. especially if people are saying u.s. oil services are going hire. it's just a matter of time. i think they are very well positioned. i think the balance sheet is fantastic. the cash flow. is that your point, they're offsides on this? >> i think if the story is that compelling, why does the stock keep trading like they do? i'm long gm. trading under five times earnings. you know, if you can't get out of its own way, it doesn't -- i don't know.

fundamentals don't seem to matter. >> it's traded as if there's a major, major problem there. we've had sideways oil, people, for a long time. i realize it's been a wide band. you've had ten times to buy oil and energy stocks only go sideways to lower. >> the next guest said energy is the one lagging sector to buy. julian emanuel is here to make his bold case for energy. you heard some of our traders here who see the energy trading. >> in all kinds of volatility environments, oil and energy stocks have tracked each other reasonably closely, until this year. essentially what you've seen is the value trade gets slammed. the trump reflation trade gets slammed. even though energy has recovered. i mean, you traded to the mid-40s a couple of weeks ago, and have since recovered back over 50. it looks like opec is going to have an accord. for us, this is the time to

think about a levered type play to the fact that the economy is going to move out of the first quarter slumber. the fed has said they're not concerned with the second quarter. everything that we see says that this is 3% or better. and that's the kind of environment where energy stocks can do better. >> why do you think there is that sort of disconnect between the price of oil and energy stocks to this point? is there anything you can say, oh, that's the reason why? maybe investors are seeing that there will be more -- so much more supply, that will overwhelm any sort of opec accord at this point? >> no, when you look at it, the rig count has risen dramatically, no question off of very low levels, and will probably continue high e. but it's really more about the fact that in a contained low interest rate environment, people continue to gravitate, as we said, towards tech, towards

the things that are working. >> when you say levered, are you talking about leverage on the companies? balance sheet leverage, or sort of like a -- >> a shell play. >> no, geared to a better economy. and look, you can find them in a lot of different sectors. but again, for us, this is the point where we've made it through this first quarter. 0.7%. the fed more or less told us they're going to hike in june, because they're not concerned that that weak spot is going to continue, you know, looking like north of 3%. that's the kind of environment where energy stocks, again, they're not an investable, they are a trade. we were on your show several months ago saying that, you know, these stocks were a buy in the low to mid-40s on oil. and a sell in the mid to high 50s. we continue to feel that way. it's just there's an

opportunity. >> if there's a trade, is it a trade you want to buy the sort of sector that's underperforming? so therefore, you want to trim some of the winners? is that the short-term view that you have at this point? >> well, look, the market is consolidating here. so if anything, we continue to like technology. but there's no question about the fact that a number of our discussions for the last several weeks, people are starting to get a bit uncomfortable. we will continue with it. but would not be surprised if you see a modest rotation out of technology, while the market continues to grind sideways. >> it's a valuation concern at this point. >> yes. >> thank you, julian. >> thank you. >> guy, do you agree? >> it's interesting. i think to the levered place, to karen's point, there's clearly something going on with the big integrated names. oil's going basically sideways. the s&p is at an all-time high. this stock is trading at 82. something's clearly amiss there. but haliburton, which has had a

horrible couple of months, seems like it's found the bottom. if you like the space, haliburton at 17 times forward earnings to me probably makes more sense than schlumberger who's been equally lousy. >> if you want to trade it, look at the xle, etf, 40% of that i tli is exxon, chevron, schlumberger and haliburton. you know, you just want to focus on a balance. i think what julian is talking about, 10% tradeable balance, not investable. that's the vehicle to do it without the syncretic list. >> the etfs, the osx, to the point, were they dividend plays? and that was what was -- >> they should be again. we're in a yield environment. let's not forget, people, this is the same environment we had six months ago. i'm not in your grill here, i agree. >> i didn't feel you in my grill. >> you'll know when i'm in your

grill. but you ultimately have a place -- they have a case where a lot of the guys aren't on the top line. i think the guys you want to own in the energy space are the ones that have exposure to nonconventionals. but i think still best of breed with balance sheets that can withstand a 15%, 20% move in oil which i don't think we're going to get. ford stocks slip, and the ceo is out. is now your best chance to buy the embattled automaker. plus, apple sets a trillion dollar market cap. the one thing he says will get it there. trump's trip abroad continues. jim vand ehigh with what could be a storm brewing for the administration waiting for trump's turn. lots more "fast money" still ahead.

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welcome back to "fast money." ford making a sudden move to oust its ceo off worries over its lagging stock prices. for the latest gets's get to phil lebeau. what's the latest here? >> i know there's been a lot of reporting on the palace intrigue

in the removal of mark fields as ceo of ford. but i want to focus on jim hackett, now the ceo of ford who replaced mark fields. it brings up the question, what does he have to do? really three things. three broad things ha he has to do. first of all, he's got to revitalize ford's culture. this is a company that has historically gone through periods where it doesn't work as efficiently as it did. it also has to move faster. this is an industry that is quickly developing new technology. and that's the last thing that jim hackett has to do. he has to develop future technology from autonomous drive vehicles to monetized data in these weeks. i had a chance to talk to him about the perception that the smart mobility unit before he became ceo, just not moving fast enough. here's what he had to say. >> i understand that pressure. i understand that anytime you're describing the future as

ambiguous until you can prove it, the way we're going to win the hearts and minds of everybody is have great ideas of work. and ford has put a decade into the av development. it's really coming along. and when we're ready to talk about it, we're going to be really clear about it. >> it is the communication of what ford is working on that is key here. and that's why we're showing you this chart of tesla and ford. i've had a lot of people e-mail me and say, tesla is not that far ahead of ford in terms of ford autonomous drive vehicles. with investors, it is farther ahead than ford. you can make arguments here that ford is working hard. but the bottom line is, the perception is clearly dominating what's happening with the stock prices. we talked with bill ford earlier today, on "squawk on the street," about that perception. >> we're just not talking publicly as much as some companies. partly we don't want to tip our

hand, and partly we want to make sure when we do, our messaging is very crisp. i feel very good about what we're doing. >> he may feel good about what they're doing, and again, there are many who believe ford has a lot of assets out in the silicon valley and they're developing nice future technologies, but the key now, communicating with the investors and wall street, and how they bring those to market, how quickly they bring those to market. that's what people are going to be watching from jim hackett. >> phil, i don't really understand how somebody, like a bill ford or anybody can make a case that they haven't been talking about their efforts on autonomous. i get it, but tesla is actually out on the road with semi-autonomous vehicles collecting information every single day. every time a guy goes from his driveway to the corner store, they're building on that data constantly. >> ford said they're collecting data as well and building on it. you hear this from other automakers. they are collecting data. the issue is, this is sort of

old school versus new school approach here. a company like tesla will say, we have the technology, let's put it out there. companies like ford, general motors, other automakers are saying, we're not going to put it out there until we know it's as good as it can be. or as close to as good as it can be. they don't want to put out something that in their eyes is half baked, or not as proficient as it should be. that's part of what's fueling the perception here. >> that's what it is. a beta test. that sounds like the difference between the silicon valley mentality and old line manufacturing mentality that ford wants to break free of. >> that's going to be the challenge. can you break free of that. i've heard some people from the company who said, look, we're kind of optimistic what could happen under jim hackett. it's only one day, but they like what they've heard from him so far. he'll get the benefit of the doubt for a little while from wall street. >> phil, thank you so much.

let's trade forward here. do you expect a rebound in the share price? the bounce in the stock today seemed a little underwhelming. >> well, but this is a maybe, not a definitely moment. this could be an inflection point for the company. but we don't know. i think mr. hackett certainly comes from, you know, operational mobility. i think this is certainly where these guys need to go. at least of the about ig three, you do hear more from ford than any of the other two. and in that sense, i think ford should get the benefit of the doubt for being hard at work here. half baked means you're not that close. frankly, i'm not sure there's anything ready to challenge. it's an interesting time. the sector has priced in so much uncertainty. >> sure. >> that's been for two to three years it's been doing that. >> you're talking about gm before and how you're frustrated by that. >> very frustrated. there's macro issues, to all of them. what is it going to be like to be in the auto business five or

ten years from now? are people going to have their own cars? >> i love this game. a great game. >> tesla or ford? >> who are you asking? >> you're looking left. >> i'll ask you first. >> i'm waiting for tim to -- >> i know what you're going to say. you're a tesla boy. >> i asked ford, because maybe he thinks this is a point of -- >> in 2014, ford was an $18 stock. around the same time the s&p was 2000. since then the s&p rallied 20%, ford from 18 to 11. arguably the golden three years for auto sales. my question would be, if the stock can't perform under those set of circumstances, when is it going to perform? that's why tesla is the answer. >> the proper answer, guy, is -- >> oh, so that was the wrong answer? >> -- risk versus potential

reward. that's a clear one. i think your down side risks in ford are pretty -- maybe down to 10 or something like that. >> limited. >> i think the way tesla's been moving, it can rally 30% in a month. that's your best case scenario in ford, that you get over the next year or two, maybe a 30% sort of move. there's not going to be any meaningful results. maybe they get cost-cutting issues and people perceive they get their house in order. >> but i don't understand what you're saying. would you rather own ford because there's less down side? >> what i'm saying is, we're playing -- it's not even your game. >> i actually think, to be honest with you, i think there are a ton of other ways to play this. you don't have to go to ford or tesla. look how much m & a has been driven by this move, with intel, harmon cardon got bought by samsung.

>> he said ford, but -- >> i think ford is an easy one. >> you just want to play so badly. >> i'm giving the benefit of the doubt until we know that the model 3 is going to be coming out at some point. >> can i ask a question, though? >> do you want to play? >> i'm already playing. the requequestion to me is, tes in the disruption of mobility, period. why shouldn't ford be able to compete with their balance sheet, free cash flow and the fact that they're already there? why shouldn't they get a piece of the valuation the same way that tesla is? they're talking about it on some level, not a lot different than the -- >> you're saying ford in the battle of ford versus tesla? >> absolutely. that should not be a surprise to

anyone on this desk. >> to the risk/reward -- >> everybody's playing by their own rules. >> like frat night. president trump continuing his first international tour since taking office. investors might want to keep their eyes right here in the u.s. jim vandehei said a storm is brewing here at home. he'll explain what it means for the markets right after the break. here's what else is coming up on fast. >> there can be no false steps now. the higher up the mountain, the more treacherous the past. >> up nearly 15,000%. is it too dangerous to own after the monumental run? >> it's just bit coin. exploding to record highs. could the major move be a bad sign for the market? we'll explain. much more "fast money" still ahead.

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welcome back to "fast money." we're live at the nasdaq market site. starting off in the green, rallying 90 points. the nasdaq was up nearly 1% while the s&p was up half a percent. here's what's coming up in the second half of the show. bitcoin up 120% this year alone. could it signal a top for stocks? plus, 15 years, 15,000%. netflix celebrating its ipo anniversary this week. how the company changed the media landscape and what is next for the streaming giant.

first, we turn to a developing story as president trump today became the first sitting president to visit the western wall of jerusalem. for more on that historic visit, ayman is here, for a respite from here at home. >> a chance to turn the page from the russia headlines, the visit to the western wall highly symbolic today in jerusalem. the moment the white house staff had been looking forward to because of pictures like these of the president acting boldly on the world stage. that's what they wanted to put out there today. the president also wanted to take the opportunity to contrast his administration with that of his predecessor. here's what he said earlier today in israel. >> we are great allies. we have so many opportunities in front of us. but we must seize them together. we must take advantage of the

situation, and there are many, many things that can happen now that would never have been able to happen before. >> that line from the president about things that would never have been able to before, not so subtle dig at the obama administration. the trump team viewed this very much as a reset of relations with israel. and they also think that over the next 24 hours or so, they're going to have the opportunity to get more favorable headlines showing the president in the context they want to see, taking a look at the president's schedule tomorrow he meets with mahmoud abbas. delivers remarks at the israel museum. and flies from tel aviv to rome where they're hoping for more good headlines and good pictures like they got on the israel leg of the trip. of course, though, melissa, this russia story continues to dog the president. we're getting drip, drip, drip throughout the day of new revelations, new details. it's not something that's simply going to to away. but the white house does feel they can showcase the president on the world stage at a time

when the headlines are happening domestically. that works, they think, to their advantage. >> part of the drip, drip, drip is the letter from representative elijah cummings, correct? >> that's right. this is a letter from elijah cummings, a top democrat on the oversight committee. in the letter, they're talking about michael flynn, and cummings writes, the oversight committee has in our possession that general flynn lied to the investigators who interviewed him in 2016 as part of his security clearance renewal. that's a letter from cummings to chaffe chaffetz. saying michael flynn lied when he talked to investigators last year. that is part of the ongoing story of what michael flynn did, what he told his superiors and people who were investigating him at the time. all of that part of the reason why michael flynn is now deciding he's going to take the fifth. he's not going to provide

documents to the senate intelligence committee that has requested those documents. a source close to flynn telling me earlier today that's just the only prudent course of action for him at this point given all of the news that's swirling around and all the political angst swirling around flynn. he's going to have to take the fifth and refuse to turn over those documents and presumably he will refuse to testify as well. the presumption is if he gives over the documents he will be waiving his fifth amendment rights. >> is it off the table that we will hear from flynn at all? that we won't see these documents? or could there be a deal where he's granted immunity and we see the release of the documents? >> that seems to be what's going on behind the scenes. early on, his team put out a statement that said that michael flynn has a story to tell, and wants to tell it, but so far, he hasn't done that publicly. and he's now taking the fifth here in terms of the committee. so clearly if you're michael flynn, and his attorneys, you

want immunity in exchange for testimony. it may be the case that nobody involved in this investigation wants to give it to him. that would indicate that he would be a target of the investigation. on the other hand, if the investigation is looking at somebody higher up the food chain than michael flynn, then, you know, maybe investigators could be incentivized to give him that immunity and he could flip on whoever else is above him. >> eamon, thank you. all eyes on president trump overseas as commander in chief. the next guest said a bipartisan storm is awaiting the president upon his return to the united states. jim is the co-founder of axios. great to see you. >> good to be here. >> let's be clear, you say this trip is a vacation from hell. >> it really is. i think hell awaits the president when he returns. eamon's right, he gets some decent stories, good photo-ops. when he runs, it's inconceivable

that the next few months aren't a nightmare for this president. you've got two different congressional committees. just right now we're hearing that the president is going to hire an outside counsel, maybe a team of lawyers to be able to handle this investigation. you've got almost nobody in this town incentivized to help him. in fact, you've got republicans, the fbi, permanent government employees, all heavily incentivized probably to hurt the president. or certainly not to come and help him. so there's going to be lots of subpoenas. there's going to be lots of investigations. and endless stories about this topic. and there's no way to avoid it. >> i understand that that is going on. but at the same time there are elections in 2018, and there are going to be members of congress who want to prove they've actually done something. is not helping the president, does that also equate to not getting any part of the agenda done? >> it slows things. it doesn't mean nothing gets done. as we talked about in the past, i think health care is a long

shot. i don't think there's a compromise that brings the sk s conservatives and moderates together. but when you're spending your time having to answer questions about the president, about russia, about michael flynn, when you have members of congress not working on tax legislation, or infrastructure, working instead on investigations, it slows things down. so, yes, republicans are heavily incentivized to do something with all republican rule of washington. and i think, therefore, they'll keep pushing a tax reform in particular. but everything is harder. when the president sits with gallup showing his popularity down to 37%, he doesn't have the power that he would have at 50%. he doesn't have a unified republican party that would say, hey, we're trump guys, we're trump women, we want to help him get things done. so i think when he gets back, people are going to lose their jobs. i think there's still going to be a shakeup inside this white house. he wants to figure out a team that can get things done. there's so much structural work

that has to be done to allow him to start to get things done. and he's four months in with very little legislatively to show for it. >> you mentioned the gallup polls. they're not going to get any better over the next few months, as you mentioned. is there a scenario where the republican conference actually, what they do is they choose to kind of oppose his agenda so they can go back to their states and actually say, we made a mistake, but here we are to fix it and that's how they save their own skins in 2018? >> they're in a box right now. that's why you have most republicans not commenting on trump. they're not embracing him, not running from him. that's why you see so many republicans in the house in particular still behaving like tea party republicans. authentic conservatives, fiscal conservatives who will look at his budget, who will look at some of his spending and say that's nonsensical, that won't work. they'll try to say, listen, we're serious conservatives. they're fighting the good fight. you need to keep us in there to

keep fighting that fight. it's a harder story to tell when people say, come on, you've had control of congress, you have control of the presidency, we're not getting tax reform or obamacare repealed. when you look at the special elections in georgia, or this one in montana, it should be 20-point wins. bad winds are a-blowing. >> thank you, jim. >> take care. >> wasn't the sell-off we saw last week, was that the markets taking out the probability of any probability, any little hope, glimmer of hope of tax reform? >> i think the market is taking him out of the office. it was just that breaking up the status quo of the clean sweep is the problem. i don't think the market is pricing in a whole lot of fiscal anything. we talked to the trump trades and we just went through the sectors. the things that should have been the most important are in

trouble. first of all, a lot of companies, what's been responsible for this rally? think of the multiple expansion that we've seen in companies that are some of the biggest companies in the world. that has a lot to do with what's happening. >> the silver lining, this is the point that steve grasso brought up last week, when there's gridlock, markets typically like it. they like it when the government is divided against the parties. >> they have liked it, yes, let's be clear. >> i think that a lot of the air was taken out. a lot of it was already out, though. for a while, we've had -- you had to be skeptical when he said three months ago that, you know, or four months ago we've got a phenomenal tax plan coming in two or three weeks. that worked a few times. they said we have a phenomenal tax plan, and they put out a one-pager. >> he's actually neutering some of his best assets. look at cohen, your boy, mnuchin, they go out with an 8 1/2 by 11 tax reform plan.

that was a month ago. we haven't seen or heard from either of those guys in a month. i think you'll have a lot of people distancing themselves from this guy. because it is going down in flames. this is all happening. >> let's say that's a given. >> can the markets go higher? >> i think they're massively underpricing the potential risk for a full-blown scandal in washington. >> you didn't think the plus 300-point day on the dow -- >> and now they're back. they continue to underprice. that's the point i'm trying to make right now. i think if you get a series of months where people just don't want to hear from him anymore, that sort of thing, look how he hasn't tweeted in a couple of days, he's on the run. >> that doesn't mean the markets don't go higher. >> the reality is, the s&p is at an all-time high. go back in november, december. what was the first company he went after? i think it was lockheed martin. 20% of their revenues.

we said, lockheed will find a floor. guess what, this emade an all-time high today. what was the first stop on this world tour for president trump? it was saudi arabia. what did they announce? they announced about a $350 billion defense bill over ten years, of which apparently lockheed martin stands to earn about $28 billion or so. quid pro quo? i have no idea. now defense stocks continue to win. >> netflix shares surging since going pupick 15 years ago. is there still it time to buy? bitcoin hitting a new high today. could it be too hot to touch? we'll explain when "fast money" returns. what if we could bring you better value

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welcome back to "fast money." netflix celebrating its 15th ipo anniversary this week. they've come a long way since the dvd rental details. julia, i know i had two dvds a month. that was my plan. >> yeah. i mean, it's amazing what a different world it is now. we don't even have a dvd player in the house anymore.

netflix shares have skyrocketed, as it's transformed into a global powerhouse. a lot of that is the original content. that stock is not the only thing that's changed. look how far reed hastings have come. netflix has 600,000 subscribers, only in the u.s., $20 a month for dvds by mail. but 11,000 titles to choose from. now the company has subscribers worldwide streaming. the company says it streams more than 125 million hours every day. what's going to drive the next leg of growth? it will come from continued globe expansion and exclusive content. releasing more than 1,000 hours of originals this year and spending more than $6 billion on content. so it says it has no plans to move into live news or sports.

they say, quote, this will still be early in the global story for netflix. the primary risk is competition. particularly from amazon which offers movies for free from prime members. they pointed to the risk of the stock. incredibly volatile. there's also pressure to execute as netflix pushes further into producing its own content instead of licensing it. of course, all about making sure that netflix has content, when there are so many different alternatives. >> thank you, julia boorstin. guy, i think you like netflix, right? >> i've loved netflix since reed hastings started this. >> hold on a second. the stock is up 80% in the last year. that's a lot of love, dude. >> that's a lot of love. >> it's in the price. it's a great company. >> what did you say? >> you heard what i said.

>> you go chart yourself. >> guys, you both go chart yourselves. >> go, tim. >> what do we call this machine now? >> i'm going to go first. >> you clearly challenged me. >> go for it, man. >> i'm going to write some words here. okay? stay with me. here's a word for you. i'm going to go slow for you, tim. what does that say? >> jell-o. >> i'll write another word. what's that say? band-aid. can you see that? you see that? >> you're wasting your time, man. >> this word is kleenex. what did julia say the problem could be with netflix? she said competition. i offer you this. jell-o has competition. it's gelatin. but everybody knows jell-o. band-aids are adhesive strips. everybody knows band-aids.

kleenex are facial tissues. >> i don't know how long you're going to -- >> the products, netflix is the product. they don't have competition. off to you there. >> first of all, let's clear all this garbage. we forgot about this -- how about amazon? in terms of competition? kleenex, band-aids, jell-o, bounty, whatever. netflix is a fantastic company. but there's four major problems here. first of all, international. this is their great place to grow. you've got a place where ultimately this is a stock that added 3.43 million subscribers, street expected 3.7. this is after they launched in 130 million countries last year. the balance sheet, reed hastings said we're going to be free cash flow negative the next few years. valuation to me doesn't make sense. and clearly, we've got a case here where we've got this kind of a move, straight up, evaluation that is 80 times, and

competition with over-the-top, amazon, hulu is insane. that's a problem. a great company, but it's expensive, with competition, and international not drawing as fast as people think. >> i offer you the next ceo of the walt disney company, his name is one reed hastings, as disney will buy, i believe, netflix this calendar year. >> why are we sneaking in a takeover? >> hey! hey! is there anything that would make you not be a bull on netflix? >> if they made another misstep. i think they made two over the last ten years or so. if they make a misstep in terms of raising their prices and people balk, that would be awful. but they haven't done it since two or three and a half years ago. >> who won the battle over netflix? we'll let you be the judge out there. go to twitter right now and vote in our poll. and we'll reveal the winner

later in the show. we'll tell you why bitcoin's explosive run could be an ominous sign for a run in the stock market. ♪ ♪ i'm dr. kelsey mcneely and some day you might be calling me an energy farmer. ♪ energy lives here.

bitcoin topping the story. 9% today and jumping past 2,200 at one point for a new all-time high. investors are piling in against political chaos in d.c. and abroad. could bitcoin be the new fear

gauge, dan? >> possibly. when you see this thing double in almost two months, a lot of the argument is the same argument that your people moving in toward gold, that sort of thing. when i see this price action and low volatility in equities, and fear index, in the vix, it signals something about sentiment for at least a portion of the market. >> you're in bitcoin? >> i am. but not as much as the player over here. i'm the johnny come lately, i'll tell you that much. >> i do have a bitcoin investment. it is really a bet. i make this bet knowing, you know what, this could go to zero. i've got to be willing to lose a bet. i don't see it as a fear indicator as we could be looking at a very monumental evolution in currency. bitcoin and other digital currencies, i don't know which one or ones may end up winning. i think that this could really han that we see a monumental change here. it could go to zero. but i'm going to let it ride. you can't look at it every day

because it's so volatile t is ridiculous. >> you've got regulators around the world trying to stop the flow of money that they can't track. this is a big, big problem. that's why the ransom for these guys was through bitcoin. i think someone's going to come down on it. >> to karen's point, this is why it's moving, a technology that actually enables these currencies. that's the most important point. >> bitcoin surging, could it be a sign to buy gold? dan's got a way to do that. >> before bitcoin got really hot, we used to talk about the gld, the track of gold. the market cap of bitcoins passed that of gld. which is interesting for all intents and purposes. here's the one-year chart of the gld. one of the things that's interesting, if you are looking at the price of bitcoin and said, wow, this could be telling me something, normally you would

go for gold, like i just said. this could be a scenario with options in the gld that it could set up as a decent sort of buy, maybe with defined risk. here's the chart over the last ten years. consolidating here. we have a lot of volatility over the last couple months. i would look out to august expiration if you want to make a defined risk play in the etf, you could buy the august 120, 130 call spread paying $2.53 for that. 2% of the underlying price. if it would go back to 130, the previous two-week highs you could make up to $7.50. >> thanks, dan. full show friday 5:30 eastern. time to vote for the winner. the winner is revealed right after this. [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 with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade. bp engineered a fleet of 32 brand new ships with advanced technology, so we can make sure oil and gas get where they need to go safely. because safety is never being satisfied. and always working to be better. (shouting) more power tools. more power suits. (shouting) more power... chords. with customized loyalty programs and data-driven insights, synchrony financial can help bring more... power to your business.

iit's where we end up.t, expedia. everything in one place, so you can travel the world better. time to reveal the winner on the go chart winner on netflix. the winner is, razor thin margin, 50/50. 50/50? >> come on! >> come on, people! >> final trade, tim? >> fedex. you want a quality company in an environment of underperform.

>> gm, double duty. >> snap. >> haliburton will get it done. happy birthday. >> "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. and i promise to help you find it. "mad money" starts now. hey, i'm cramer, welcome to "mad money," welcome to cramerica. other people want to make friends, i'm trying to make you money. call me at 1-800-743-cnbc or tweet me @jimcramer. and the winner is, cloud computing going away.