on for two years if that happens. the dollar plunging against the peso on reports the president is pushing for a nafta deal within two weeks and stocks closed well off the lows of the days 4 c 4.58 looks better than 7:59. >> thanks for joining us dominic chu. "fast money" starts right knew. i'm melissa lee. tonight on fast, tesla ceo elon musk with the tone-deaf april fools joke about bankruptcy. the company is facing issue after issue. are we witnessing the unraveling of the eccentric car maker plus, the markets are tanking, we have you covered. we're live for the next two hours and if you are distraught after the selloff, give us a call 800-743-cnbc we'll answer your questions live

on the air the dough syncing more than 700 points, the nasdaq joining the s&p and dow. all three in correction territory which means they are down 10% and it started with tech general motors down 24% from its highs. look at other names that have crumbled, exxonmobil, home depot, boeing, goldman sachs in correction territory the question tonight is, is this selloff signaling something might change object the economy, and not just the stock market? guy? >> i'm not sure it's about the economy but karen fineman who's been doing the show as long as i have, she's not one to be hyperbolic but i think it was the 14th of march karen said this was the most concerned she's been in years in terms of the market and she was buying put protection and that's proven to be peres frerescient and the economy is fine. it's about everything else going on and there are a number of different reasons. we can talk about bond yields

going the wrong way, we can talk about things in the trump administration, we can talk about technical levels be they're adding up to what we're seeing now people got too complacent and what we're seeing is a continuation of something that started in the beginning of february so it's not about facebook, it's not about tariffs, it's about something more in my opinion, it's about the federal reserve putting themselves into the conversation on the wrong side. >> how do you feel about the markets weeks after you made that call? >> i'm concerned but there are things starting to get enticely cheap to me. so lighten protection. as difficult as that is to do. you want to hold on to it when it's so volatile but it's too expensive right now to have that much protection so we opened the show with a quote on gm. i'm long gm. that's been a painful one. there's so much bad news built into gm at this price. it's extraordinary i don't know if it's tesla related as a car company or

totally independent of that but there's stuff i'm looking to buy. i just think this is getting overdone i don't love the uncertainty but you have to buy when there's blood on the streets, even if t it's your own. >> this market selloff may signal we had been pricing in an economy that had been very good and that there was no room for error and when we're starting to hear from the ism data today, all these manufacturers talking about tariffs and the impact of tariffs on their factory activity, you have to wonder how much leeway is there in these expectations very good ones for the economy. >> that's why i'm not 100% sure this is over yet technically we have more down side but look at the ism manufacturing. today we have prices paid going up, employment going down. that's not what you want to see. those are the beginnings of a stagflationary environment people haven't had a raise for five years or longer so that's

what the market has been pricing ins n since february and we've done a good job of talking about that and you say now there's higher rates, how will that impact consumer spending when you looked at it today at about 9:45, 10:00 when this data came out, you saw bond yields go higher, the dollar go higher and that's when the market ing accelerated to the downside. so until that's resolved i think it will be treacherous waters here. >> to me there's been a tell and it's been walmart and home depot these stocks did not rally when the market bottomed in mid-february as the nasdaq shot back up, the s&p never made a new high so when you think about the s&p 500, those big tech names that surged back up, they're 10% apple, microsoft, amazon, google and facebook of the s&p 500. the russell got back up there,

small caps did, the nasdaq made a new high so walmart and home depot have been telling you a story, is there something going on with the consumer i don't know did you see one of the hardest hit sectors were the home builders to me -- we just heard from peter navarro from the white house gone, the economy is great, he called it the trump economy. it's actually the economy of the last president for all intents and purposes because we haven't seen wage growth, we haven't seen job numbers that have been much above the last few years average and suddenly these actions they're taking are going to cause inflation, that could be the very thing -- listen, man, interest rates haven't gone up that much where's the ten-year 2.73, you know where we started the year 2.4. so i think there's a lot of self-inflicted wounds going on in this market and the economy. >> did he listen, man? >> he was manning you i think. you mentioned short term borrowing cost it's the shorter curve that has

gone higher. >> which is maybe that -- >> and that's tided to consumer mortgages. >> you've been in california but that's my point. the back end of the curve is stubbornly low libor is something nobody talks about, at levels we haven't seen in eight years and it's gone up in a parabolic way what does that mean? $350 trillion worth of debt. >> $1.2 trillion in consumer mortgages. >> so it's not insignificant and we have talked about deutsche bank i have no horse in this deutsche bank race but this is the stock that makes aer two year low. there's something clearly going on and it's manifesting itself in rates. >> so in the past, what, six and a half minutes or so, we've probably listened to four different reasons why one could be cautious about the markets. should we feel better or worse that there's a pastiche of concerns as opposed to one thing you can put your finger on

>> that's a great question i don't know it's interesting to see, if you're an anxious person you can find anything to be anxious about. a lot of these things to me the two that are the most important, a big trade war, i don't think we're in that yetbut i don't know some days he's fully on board, some days he seems to be backing off. i don't know, the other thing is not a rise in rates, a spike in rates. a spike in rates to me would sort of put a wrench this things that's my biggest fear i have to disagree that trump deserves no credit for this economy. i can't agree with that. the tax cut is clearly helpful business. >> so we just reversed that entire move from the tax cut that's -- see, to me -- >> we did, for not for the first year of his presidency the market was up a ton. >> you know what's funny, karen? for the second half of 2016 i think most of us thought if hillary clinton had won the election that the market was going to continue to go higher and it was going to be the exact

opposite we thought he were going to get this market that we have in 2018 in '17 if trump won so i was wrong on that. but i thought we were going to have that gentle glide because everything was in place for the market to continue to move higher as the economy was seeing green shoots, as we were getting a global synchronized recovery even as people were taking their foot off the pedal for qe and zero interest rates. so i think that was in place so that was what was supposed to happen but it wasn't supposed to happen that he won and we were supposed to go straight up. >> at this point it's neither here n there. >> whose economy -- >> what we spent the last couple beex talking about is the chaos in the white house and it started to reflect itself in the stock market this is a white house that says that is their score card. >> that's what we're looking at now so we can argue until the cows come home about what happened over the last year but going forward to me, i still think and we saw in the the data

today, the biggest thing are the tariffs, are those going to raise prices >> that and the tweets about amazon have got to get you concerned. what other target could he pick on next? how much in market capitalization has amazon lost since trump started tweeting >> the stock is probably down -- i'm spit balling here, 12% give or take? that's a significant number for amazon what company is next i don't know it's funny for somebody who claims to be the most business-friendly president of all time in a lot of ways he might with the more -- more teddy roosevelt than ronald reagan but neither here nor there. there will be another target i think in terms of amazon they will report in a couple weeks. i don't know anything but i would be shocked if they didn't report a ridiculous quarter. the reason why is because they can. they can tweak numbers, they can make those margins look fantastic. >> amazon to me is like netflix.

if they raise my membership by five or ten bucks, i'm going to order the same amount. >> we were just talking about how people weren't getting wage increases. >> it's the same with netflix, right? >> they will pay for that? >> if they raise it to $300, that's a different story but five or ten bucks to cover higher postage, i think it doesn't matter >> if you think about walmart and amazon, they have nearly a trillion dollars in sales annually in america for the most part and what are they doing it's a massive deflationary thing. so the fact we have a president who is attacking them, is he going to come after walmart next this is a great thing for consumers. you know what's not great? a trade war because walmart will have to pass those increased costs on to consumers so he's not pro-business, he picks and chooses and to me it's a political setup. >> when the market first sold off back in february, our next guest said this. >> whether we go lower now or lower over time or back and fill i think friday it will stand as

an important intermediate top, whether it's three months or six, it's not likely to be exceeded any time soon. >> the s&p has fallen more than 6%, now he says something bigger might be at play let's find out why hi, carter. >> hi, guys. >> it's not the paradise that it was. let's talk about it. we're so dependent on just a few names. to put that concept in real visuals, the entire russell 2000, they could be outperforming or could make the new high, you add up the entire russell 2000, get $2.5 trillion, that's the same as not shown here the top three stocks in th s&p. top three. it's all about a handful of names. in fact just to move along here, if you were to talk about the top 10 stocks at $5 trillion,

that's a quarter of the value of the s&p, so 10% of the names represent half of the market we are so dependent on a few and those few are finally under real pressure where might they be headed so again just to put this -- numbers. 10, 20, 50 stocks. 50 stocks, 50% it's not a market, it's just a handful of names and those handful have started to come under pressure whether it's home depot, boeing, caterpillar and so forth so ileading ladies, 150 moving average to the penny it bounces, netflix to the penny it bounces. to the penny it bounces. the presumption is it has not had a full checkback that's a lot of errors still to go the other is amazon but the principle is the same. we're likely to get a check back to trend as is the case almost with all stocks, for instance home depot is here now, caterpillar has done it.

these two ultimately will which speaks to the market a handful of names control everything here this is key, we know that we're basically close or very close to the prior low what's important is this -- we've made new lows here in terms of the percentage of stocks that are still in uptrends so the internals continue to deteriorate even as the market is sold off meaning it is not oversold you know this new index, it has twitter and baba look at this to the penny, to the penny, to the penny, to the penny and the presumption is we're going to break. how can bit thit be that the s& identical? because the s&p is so dominant and this is the all country

world index, german stocks, french stocks, japanese stocks, u.s. stocks, canadian stocks and it is literally to the penny, to the penny, to the penny february 9 low and we closed on it today the problem is the balance was insufficient there's every indication we are going to break trend for the first time in two years. >> carter has to come over day like today come on over, carter thank you very much. nice chair job is there -- >> everything i just said is nonsense sure. >> in terms of the 150 day moving average you think for world stocks that could break? for the s&p 500 it would break also for thenasdaq. >> individual stocks, very few

are in the circumstance. you have stocks that are too far above that haven't had a complete selloff, netflix/amazon or others in freefall and well below trend so the optics of adding that up gives you a mark that looks as though it's still on trend but it's not. stocks are still vulnerable mean they have more to go and stocks that have already rolled over and have really quite frankly come apart. >> we are talking about faang and the roll of faang but now it seems to be broad based so what's your technical take has the characteristic of the market changed not just the leadership group has deteriorated but we're seeing massive declines across sectors. >> but if you take the market's performance, there are two sectors that are outperforming the market, tech and consumer and consumer only because of two names, amazon and netflix. so it's a very thin sort of proposition.

>> carter, if i take the decline and measure it and say it's going to do 100% decline, you get about 24, 63 or so, if you say it's going to do 1.5 times you get 2300 is there anything that supports those numbers that say that's a turning point? >> i'm in the middle i think 2400 plus/minus and it depends on you get there a one day collapse is how you set up for reversal. if you deteriorate over weeks and weeks then it can work lower over time. >> let me ask you something. you have that chart with five times or so that it hit that trend line wasn't any of those prior times the same scenario about a few leaders being way high and a few others falling down? what makes this different. >> not to this extent.

it's broadly participated on the down side. >> carter, thank you, thanks for your help today. carter braxton of cornerstone macro. >> love him. is he coming back in hour two? >> we'll see that's a tease what did we do today >> biotech we'll talk about some of these stocks we have talked about, for example wynn resorts, it held up well today. we did what we call that thing where we go over to the smart board and i pitch that if anything styx out to me, it's the relative strengthof wynn. >> i didn't do much today but tomorrow i'm looking to sell some put, certainly if we open down lower i'll smell puts and there's a couple things i'm looking at i like citibank. i like gm. google, i like it, i've owned it

all the way up but if you look at the valuation of google, it's ridiculous this is not an amazon type valuation or a netflix type valuation. this is 12 times ebita that's crazy. >> well, for me i play bullfighter and got out of the way. that's what you do in this market that being said, i am looking for a place to buy and maybe it's 2400 like carter was saying, somewhere between 2400 and 2300 we're going to get one or two of those days, big reversal, high volume. >> i've had three shorts on. qqq, iwm and spy spy and qqq i'm most convicted on we stopped at those trends lines but the iwm have taken off i don't like the relative strength i was early in that, i got bailed out so to me i'm focused on qqq and spy

coming up, it's a biotech bloodbath. the group sinking as momentum stocks get crushed we'll tell you which traders are buying the dip, plus the battle of tech ceos mark zuckerberg and tim cook exchanging harsh words later, tesla shares in reverse, the stock getting slammed down 35% from its 5 -week highs and elon musk's tweets might make it worse we'll explain. you're watching a special edition of "fast money" live from times square n yk inewor city we have much more for you right after this we've been preparing for this day. over the years, paul and i have met regularly with our ameriprise advisor. we plan for everything from retirement to college savings. giving us the ability to add on for an important member of our family.

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welcome back to "fast money. time for buzz kill look at the nasdaq etf the ivb down 4%. some of the names bringing the names lower is alkermes. regenr regenron, gilead and biogen. so buying opportunity or more pain ahead >> i think for -- these guys were talking about looking for valuations there's decent valuations. let's go over the xbi chart. that has come down to the uptrend and that has reasonable valuations versus some in the ibb. if you put that chart up, there was a massive double top so you want to see how it act s at thee technical levels but you continue to get the fundamental news and you know this is a seconder that is in the cross hairs of washington. >> it's in the cross hairs but it hasn't been in the cros hairs. i think there are other fish to

try but to me it was the tape and al kemes, you get a refusal to file letter from the fda, that's like getting something from the imf they have to restate earnings or regive earnings. there is a big short interest, stocks remain under pressure but it should not drag the rest of the space down. >> i'm concerned about the space giving what's going on in the health care space and the pbms and hmos and the merger activity how can there not be tremendous pressure on pricing? maybe it's not the sole driver but how can that be a good thing? still ahead, the bitcoin bear market raging on and the irs has you shaking your crypto boot, don't worry. brian kelly will give his top

bitcoin tax tips i i'm melissa lee. in the meantime, here's what's coming up on fast. >> announcer: as shares of tesla crash, what ceo elon musk doing? >> i got a joke. >> announcer: yup, telling jokes but shareholders aren't laughing and there could be more pain ahead. we're taking your calls on the red phone on this big market selloff. so call us 800-743-cnbc talk soon. ♪ mr. telephone man this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances.

hey, what are you guys doing here? we're voya. we stay with you to and through retirement. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement. welcome back to "fast money. it's not just the broader market taking it on the chip. how about tesla's week from h d

hell you see elon musk saying "bankwum rpt" but given how things have been going with tesla, we can't help but wonder how much of a joke it might turn out to be. musk's tone-deaf tweets aside, he has been plagued with controversy over the autopilot system following a deadly crash and production issues, all this within the past week shares of tesla plunged as much as 7% on monday, the stock is down 29% from 2018 highs so are the tweets a sign tesla is unraveling and what, if anything, should the board be doing about it >> if you're an nova scotiaor, we've called this as a venture capital deal in a situation like this, you have to ask yourself will there be another funding round i think yes.

the big holders are in for a ten-year time frame. they're saying tesla is not a car company, if it was it would trade at a reasonable valuation. they're saying this is a disruptive tech company that not only will disrupt cars but also disrupt the electric grid. it's also going to disrupt the housing market the question is, who what price will that financing be at? maybe this is enough to do that but i think ultimately there will be another round of findings that people will be satisfied with. >> the point is an interesting one. a lot of the institutional base have gotten in on levels that are much lower than where we were here so they're still whole and probably therefore not going to sell. >> it's important to remember that in every fund-raising elon musk has participated on the buy side not the sell side every time and since 2014 this stock has sold off

so where is it now 30% fine, whatever this is the name that people have that time horizon, you're happy to see sentiment get bad it overshadowed the upside last year it may do is on the down side but i suspect the stock won't be below 200. >> what's up we lon musk the joke on april fool's for a lot of investors, that wasn't funny. >> tone deaf. >> particularly when all the talk on wall street is whether or not this company can get a funding round done on top of it you say him tweeting at various publications saying why didn't you cover the recalls of other auto companies? why do you just cover tesla? things like that he's on twitter and tweeting back at these people. >> almost seems like a rage and a waste of his time. there's a hot to do.

hopefully it's a sideshow. interestingly, a year ago march 17 of last year they did a convert, the stock is right where it was now and they were able to just -- they could have done probably multiples of what they raised last year and they did it at 2-3/8 and stock conversion at 328. they could do that again i think the market is still open i agree with bk, i think they should do it very soon, right away they couldn't do it at that price but i think they should and maybe he knows -- musk obviously knows when they'll try to do it but maybe knows he can get that done, this bankruptcy thing is ridiculous. >> yeah and he tweeted about it, too. the bankruptcy joke, he said why would i tweet about something that isn't even a possibility? you tweet about it because it's not. >> you prefer not to have the ceo out there tweeting like this he's eccentric.

>> for more on tesla's hellish week and what it could mean, let's bring in gene munster. good to have you with us. >> hi, melissa. >> you wrote your patience is being tried with tesla where do you stand right now >> i'm still a believer and i think what brian and dan said sums up how high feel about it this company is uniquely positioned their mission statement is to accelerate the globe's adoption of renewable energy. this has little long term to do about a car and more about energy capture, storage and batteries and ultimately using the vehicle. so i'm still there irritated by what musk did over the weekend as i can imagine the investors were also irritate bud i'm still a believer. >> why should you be irritated shouldn't it be up to the board to say something to elon musk or are there too many board members who have a connection to elon musk a couple of them sit on the

spacex board the board has been in question in the past in terms of the ties to elon musk shouldn't they step? and say maybe now isn't the time to do stuff like that. >> i think you have to get some sense of how big a personalty elon musk is at tesla. my interactions with people close to the company is this is a larger-than-life figure and he inspires people to try to walk through walls and so i think that's part of the reason why the board doesn't do anything. i think in some ways they probably look up to him as well so they'll let elon be elon and he'll make mistakes as he did over the weekend but it doesn't change he's still the right person for the job ultimately and what he is shepherding the company through is the same pain other automakers will have to go through around this move to batteries and autonomy and ramping production around that so i think that's probably why you get this dynamic. >> gene, if the car production

part of the company isn't so much of the story, why the focus then people seem to care they're missing production again and again and again. do you not care about that >> that is the one thing elon musk needs to change is that he's still putting out these targets that they can't hit and haven't hit and they'll struggle and get to 2000 exiting the weekly run rate of model threes at around 2000 vehicles per week 2500 was their target. but that's one thing a ceo can do he would probably say the reason why he throws out those big targets is to inspire his people to reach for them but there is a level where you can't keep missing. this will be the third quarter in a row where tesla has missed their model 3 production number so i think that is one thing he should change but i don't think it changes the story is that it's fascinating to look at these news events over the past week but that can take your eye

off the bigger picture this company is still exceptionally well-positioned for what will be a massive transformation around transportation. >> where do the holdsers of this stocks start to get concerned? the holders have been steadfast in their belief but is there a price in your opinion where they start to think maybe we got this one wrong? >> my sense is there's two camps. this is one that it's going to be a fun story to watch because there's such divided camps and have good arguments on both sides. one is that they'll run out of cash and the other is that they'll be this transformative company. as far as the shareholders, they believe even if they're wrong that there is still a bid to buy tesla that has been muffin talked about, current market cap is $42 million if you knock 20% off, that's a $33 billion market cap that that's probably like a fire sale type of a price for tesla if apple or waymo from google would want to buy this so i think

that's been the guiding principle is that they know there's a backstop in the forms of mna. >> gene, we'll leave it there, thank you so much. gene munster, good to see you. >> that's interesting. >> it is back in 2013 it was widely reported the google guys were going to buy it. and don't forget the saudi crown prince is going to silicon valley to meet we lon musk they're making massive investments. i can see this as diversification away from the oil trade. >> the price action was miserable. i thought 280 would hold, it didn't but in my opinion how you trade the stock is buy it as a break above 280. so right here you're flipping coins. if you go back and look, 195 was a significant level. coming up, as the facebook fallout continues, mark zuckerberg snapping back at criticism from apple ceo tim

cook we'll hear the latest takedown in tech's war of words and later tax season is here and even if you're a billionaire, you have to pay your taxes so bk is breaking down your top tax tips much more "fast money" right after this

welcome back to "fast money. task season is a daunting time of the year but it's frightening for crypto investors who traded at the highs in december

seema modi is at the crypto desk some retail investors are selling their holdings to account for the capital gains they owe on last year's profits. if you're preparing for your return; it's important to know that the irs labels bitcoin and other kroicryptocurrency as proy not currency record your transactional history this data includes when you bought bitcoin, the spot price and what date you sold it at that will determine whether it's a short or long-term capital gain once that's taken care of, you fill out the 8949 form, any schedule d, any expenses accrued from account maintenance can potentially be deducted as high as 30% while the guidance from the irs involving cryptocurrencies has been limited, you could be subject to penalties like a

sizable fine or a deficiency notice if you don't declare your holdings in 2016, the irs accepted records from 2013 to 2015 for bitcoin holders and found that less than a thousand people reported their bitcoin gaines. melissa? >> thank you, seema. if your cryptos had you freaking out, bk has tips to make sure you're much better this year. >> so let's talk about next year this year it's already over, you'll have topay your taxes let's talk about next year people took the profits and they're down and they're saying where am i going to get that money? let's look at what you should do this is a volatile exit class, as you're trading this year, take 30%, maybe do it once a month, once a quarter, take 30% of the profits and put it aside in a savings account you know that will be roughly where your taxes are

it could be a little higher or lower but at least you have some side cash on there very volatile asset class. number two, realize crypto-to-crypto trades are taxable so that means if you take bitcoin and by ethereum with your bitcoin, that's a taxable event. a lot of people thought that perhaps only when you take u.s. dollars it's crypto. so that's very conservative. and finally something that seema mentioned, monotour your short and long-term capital gains, the tax rates will be different so if you hold something for over a year you'll have a lower tax rate so as you're buying and selling, take that into account when you're thinking about selling smrks. do i want to hold this for the next year? is this a place to sell it what is my tax liability going to be? so these three things as you're trading crypto this year should keep you going. >> bk?

>> yes >> let me ask you a question since so many holders of bitcoin are outside of the u.s., i'm a little -- i'm thinking the weight on bitcoin's price isn't tax-related, people have to pay taxes. are those related at all >> i think there's part of it. part of it is tax-related selling. you also have the telegram ico which is the poster child, that's about $2 billion that otherwise may r maybe would have gone in the bitcoin. so i think that's weighing soless buyers, more sellers, lower price. >> thanks that coming up, this year's next big unicorn is about to make its public debut spotify's direct listing is tomorrow we'll talk to a top venture capital itself who says he can't wait to buy the stock. plus mark zuckerberg and tim cook going head to head over facebook's privacy scandal but who do you think the traders think is right we have much more fast right after this

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. we're looking at every app in detail. what is it doing is it doing what it's saying it's going is it meeting the privacy policy that they're stating and so we're always looking at th that should we raise the bar even we're always looking at improving and raising the bar. but we do carefully review each app and police now we don't subscribe to the view that you have to let everybody

in that wants to or if you don't you don't believe in free speech. >> that was apple ceo tim cook taking a swing at mark zuckerberg on recode's revolution msnbc special last week criticizing the facebook ceo as a social media giant faces an intensifying privacy scandal. but zuckerberg wasn't about to let cook off the hook. here's what he had to say in a podcast interview today with vox's ezra klein. >> i find that argument that if you're not paying that somehow we can't care about you to be extremely glib and not at all aligned with the trut truth. >> a showdown between two tech titans we have one, a veteran of the tech world since cook took the helm in the other corner, we have the young maybe a bit himmer mark zuckerberg outweighing cook with

a net worth of $62 billion the stock is up about 309%, has a market cap of $450 billion so who do you side with in this battle of the tech titans? >> it's an easy one go with the hardware and go with apple. at the end of the day, apple catch a lot of grief about what they would let on their platform and what they wouldn't and they have power here. you didn't hear what mark zuckerberg said that he describes to the bezos theory that we want to charge as little as possible. i don't think there's any doubt that the world believes that you are their product. >> you own facebook, you own alphabet you want to own more alphabet? does this worry you? >> well it does worry me i think that facebook has a lot of bad stuff priced in could there be more bad stuff to come

that's possible. i wish that he weren't getting attacked from all sides but they haven't handled this as well as they could have. i'm not selling it here. i don't know when you said they want to sell for as little as possible -- >> he was quoting jeff bezos in terms of companies have to work hard -- >> they're saying their business model is to charge their customers little as possible whereas apple is trying to charge as much as possible. >> that's more troubling to me that apple -- i wasn't a fan of cook sort of attacking mark zuckerberg on this because you never know what he could be facing at some point down the road it wouldn't shock me if they have a situation that isn't wildly dissimilar. >> on the same day karen said she was the most worried she's been in some time. i think that was the day roger mcnamee but he said it was

basically corporate malfeasance and the stock was trading at 184 and he was really concerned about the stock. he's been right. the stock has turned over tremendous volume but there's no bounce which leads me to be there's another flush to the down side. >> didn't trade badly relative would you take a flyer >> i would not i think they've all got problems i think apple and facebook and google face this idea of peak centralization it's a longer term type of view but i think once you lose the trust of your customer, look what happened with the bank. they lost the trust of their customer in 2008 and that's not the say there's a crisis or anything, i don't want to compare the two, once you lose the trust of your customer you have a hard time getting it back. still ahead, did tell's selloff have you running scared? we are sticking around for the 6:00 p.m. hour to take your phone calls live on the air so stay tuned plus, as spotify gets ready, will it follow dropbox's lead and be the next unicorn do steal tech thunder

we'll talk to a top investor stick around so lionel, what does being able to trade 24/5 mean to you? well, it means i can trade after the market closes. it's true. so all... evening long. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you?

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starts trading back to you. >> let's bring in an early airbnb rick heitzmann, rick, good to see you. >> good to see you again you would like to buy spotify shares, correct? >> i will. >> would you buy tomorrow or do you wait >> i'll buy tomorrow those shares will come on tomorrow and i agree it will happen closer to lunchtime than breakfast time tomorrow as

there's limited supply in the market i get up early, put your water in early and anticipate that supply-and-demand will drive up price later in the day. >> rick, you're a fundamental investor where do you see the opportunity? a lot have been focused on netflix's business model one of the knocks on spotify is they don't have the gross margins. what do you see as the opportunity? >> over time you'll get to those margins. it's the same dynamic. you're reselling content from someone else but you have an enormous user base if you think about all the potential buyers of spotify, it's the companies that enormous war chest and all the faangs who would love to have those 200 million plus users. >> we were talking about dropbox as the other tech unicorn that just recently went public. are you invested >> i'm not. >> so here's a question for you. this is a question that i pose to these traders a lot. >> i like this game. >> dropbox or spotify. which would you rather own >> spotify it's more unique it has a faster user growth base

around over time it will be harder to replicate that growth base apple threw everything at it they threw beets at it, apple music, and it only accelerated spotify growth. >> how closely are you looking at this in terms of future exits? do you think this could actually set off a wave of direct listings it could save millions of dollars in fees. >> it's -- we're thinking about also in terms of liquidity, what does pricing mean tomorrow what does pricing mean in terms of price stability what does that mean in terms of future lock up which is is for early investors thinking about liquidity down the road. the direct listing advocates are saying price will stabilize quicker, there will be more liquidity at each different volume threshold sooner the way you might see in a normal ipo so a lot of early investors are looking at this as a case study. >> rick, great to see you, thank you for your time. rick heitzmann. >> what does this say about the

nyse getting this kind of listing. >> i don't know. maybe it's the more the bangers that are being shut out more that would be more problematic i guess. it's interesting i'm very curious how this trades, i'd probably be at the sidelines but it's interesting. >> >> it's extraordinarily important for the new york stock exchange they've had a series of -- i don't want to say missteps it's not like the eagles greatest hits, i think the greatest selling album of all time, i know you're a fan. >> i was just thinking about that. >> we were just talking spotify. that being said, it better be extraordinary, it better be seamless for the nyse. that does it for us for our first hour of special vegecora we have another jam packed hour coming up right after this short break. stay tuned it's why brighthouse financial is committed to help protect what you've earned and ensure it lasts. introducing shield annuities, a line of products that allow you to take advantage

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wall street. >> a big drag today as well as a lot of disappointments investors are asking some tough questions. what's behind the selloff? how long will it last? and what do i do with my money cnbc's special coverage of the market