systems make decisions in ways that people don't really understand. >> right. >> and i don't think that in 10 or 20 years in future that we all want to build we all want to end up with systems that people don't understand how they're making systems where peopl don't understand how they are making decisions so doing the research now, to make sure that these systems can have those principals as we are developing them is certainly an important thing. >> you bring up the principals, as you are well aware, ai systems especially in complex environments where you have machine learnings it is sometimes difficult to understand how decisions are arrived at and if you are not careful about how that occurs. and so, is your company, you mentioned principals, is your company developing a set of principals that is going to guide that development and will you provide details to

us. >> yes, senator, i can make sure the team followups and you get the information on that. and we have an ai team it is not just philosophical principals >> thank you >> thank you, senator peters we will recess for five and come back in. so to give mr. zuckerberg a quick break here >> i'm melissa lee, you are joining us of special coverage of mark zuckerberg's testimony it began 2:30 p.m. eastern time. investors appeared to have like what they saw, shares jumped 2.5% facebook has had its best day. "fast money" time is here.

all here for instant reaction. and jim cramer will be joining us in a few minutes. julia, what was the most interesting thing you heard today? how would you grade him? >> i think he is doing well. he hasn't broken a sweat and he has been grilled by the 43 senators who are in the room still probably almost an hour left of questions yet to come. and fielding questions on a wide range of topics, everything from election manipulation to data security, to cracking down on hate speed and even social media addiction. an assortment of questions and a number of questions about regulations. he said he was open to regulations. and also asked about the sustainability of facebook's business model here is what he said >> is an alternative to facebook

in the private sector? >> yes, the average american uses eight different apps to communicate with their friends to stay in touch with people. >> the same. >> is twitter the same as you do >> you don't feel like you have a monopoly >> it doesn't feel like that to me. >> he had to clarify how the time line works. how you can make phone calls through messengers how what's app works. and he was quick to dismiss the idea that facebook had a monopoly and also said there would be a free version of facebook and didn't dismiss the idea of potentially having a paid version and he had to explain to senator hatch that they have a sustainable business right now

because they offer ads a number of times zuckerberg had to keep his cool and explain what is going on and the hearing was going on for over three hours and quite a few more to go. >> thank you very much the senate taking a five-minute break. and as julia had mentioned, we will be resuming later on this evening. zuckerberg will be back on the hill tomorrow morning at 10:00 a.m. kayla, there are interesting moments, senator durbin asked him what hotel did you stay at would you like me to share that with the public? he said no bringing home the issue of privacy and public. >> what you saw with that line of questioning was democrats specifically trying to get zuckerberg boxed in. trying to acknowledge there is

certain information that facebook has about a person that he wouldn't want to disclose about himself. started in response of the specific data breach, cambridge analytica. the line of questions that we saw, broadened out to privacy complaints and the lack of regulations. bemoaning facebook's privacy terms and how difficulty it is to understand them senator joe kennedy of louisiana had this to say. listen >> and if i were mr. zuckerberg, i would go back home and tell my $1,200 an hour lawyers, y'all take a break and let us take a crack in writing this thing in

non-english. >> appreciate of zuckerberg's attendance, but critical about the response to cambridge analytica and privacy policies in general i think you are likely to see that tomorrow on the house side when 55 members of that committee put zuckerberg on the hot seat yet again. >> thank you as we mentioned before, facebook shares soaring as the testimony kicks off. how did he do today? have we seen the low the cambridge analytica low in facebook shares already? >> i happen to think you probably did see a low is it going to trade lower in the next couple of days? probably will. in my opinion, this could be, it

would be bad form to report some ridiculously strong quarter after this happens not saying they could mess with the numbers. 165 here, you see it back in the high 150s. >> they are attacking these issues on privacy and data to me, i think today was a good old fashion short squeeze. that stock ran up a few bucks and stayed up. i think there is going to be lower lows one important point that we didn't talkabout, mark zuckerberg agreed that for all intents and purposes they are a media platform and that changes the dynamic that leaves a whole other set of regulations. >> during the course of the

testimony mark zuckerberg made remembrance to the fact that the company is at an inflection point. and forinvestors who bought into a business model of a year ago, that business model will be different and how do you value that >> i don't know how to value it will be different but it will be a powerful model. it is not new that they are a media company. if it, you know, quacks like a duck, swims like a duck, it is a media company. for the short-term tomorrow it will be on the front page of every newspaper. the testimony he does tomorrow will be less important just because so much ground has been already covered. after that, it will receive to the lower part of the paper, then the second page, the third page until the earnings. that is the next important thing. you are right about the numbers, you are both right that it is

going to be about the expenses going forward. we don't know what that is going to be. we talked about the business margins, the margins are huge, they can afford expenses. >> the guidance on the expenses will be interesting. they said in the testimony in the prepared remarks that they are intending on increase in the number of humans tasked with viewing content for security reasons to 20,000 by the end of this year, i'm not sure if those are baked into the numbers that they have given already or in addition to. >> i don't know if we are clear on that. we are still talking about a powerful very dominant company, they literally are the google of the space they are in right now. they dominate. the idea that i think they are going to crush numbers, by the way. their margins are so incredible and so strong the previous couple of quarters that if they

can continue that at all, it is going to make up the money that they will have to spend. i think it is going to be a significant number in terms of the security alone and everything that goes into what they are going to have to be spending more and more money on. these guys are making money and the ownership of the ad space, it is similar to me like google where they own it. >> the narrative of higher spending and compressed margins for 2018 has been in the stock, the wall street community already. we do want to bring in "mad money" host jim cramer for more on zuckerberg's testimony. how did he do? >> i thought he was polite and did not resort to jargon when there were things to explain, he explained them welling, try to do it in english, i know the senator made fun of him, but i thought he was a nontech geek the stock is still telling 3me

there is still something wrong and the only thing that i could say that would make it wrong, is geez, they better not have another cambridge analytica. he did feel that it was like, i'm sorry, i apologize, but they can't have any more of these if they have any more, then there is going to be legislation and not just questioning the stocks price earning multiples say we are not done. it is too low and when it is this low, it means the earnings are not going to be there. >> would it be good form for them to have some ridiculously strong quarter after what we have seen in the last couple of weeks? and is that even an issue? >> we have to believe that they spent a fortune.

morgan stanley said google, now alphabet is going to have higher expenses i think people haven't cut numbers yet. and when numbers are cut, stocks go down. notice, there have been people who say i am concerned but numbers have to be cut here. and when numbers are cut, we are going to find out where folks go they can't have a new cambridge analytica. that is how bad it will be if there are more of these breaches there can be no more breaches. >> jim, let me push back on that point a little bit they have gone to great lengths to say we don't know what else is out there we can't tell you for sure this hasn't happened with other apps. they have tried to set the stage for we are going to get more of this kind of news. so i sort of thing that if there isn't anything else, that would be surprised.

>> well, i think that is a good way to look at it, but what i think happens is the american people don't like this guy american people don't really like facebook. they like to post pictures up. they don't understand what happened here. they have no idea. but when you have one, two, three, four, five, you say something is the matter with the way people use this product. we have to protect people from it so it is true, if they say, you know what, there could be more of these, but there can't. they can say whatever they want but there can't be then the whole dialogue is going to change and they are going to crush these guys and it won't matter how apologetic it is. >> would you buy facebook. >> i would be reserved in investing in it. >> you would only invest by option jim, i know you have a big show

ahead of us. take it away >> all right you heard a little of what i heard about zuckerberg's testimony. and we are going to talk about that more later in the show. i will tell you that i am concerned that perhaps while he was apologetic and sorry, there can't be any more breaches the american people are forgiving to people who say they are sorry and people who apologize. but not forgiving to people who make the same mistake over and over this has got to be the last big breach there are a lot of things that happened today besides mark zuckerberg and we have to do an old fashion "mad money" take on today's market i know we watched the hearings

and i was fascinated we now know what drives the stock market it is not earnings it is not the feds, or presidential lawyers raided by the fbi or zuckerberg's testimony. no it is about china. specifically how well we get along with china last night when president xi spoke in favor of an open market with low tariffs on imported cars, it was a way he gave us a green light to roar higher the dow surged 429 points. the s&p climbed 1.67%. and the nasdaq vaulted and the market was strong all day. it picked up steam when our president tweeted and i quote very thankful for president

which i's ki xi's kind words. a tweet from trump despite always claiming to be great friends with their leader. combined to be a combustible positive take. nostalgia. when president trump was on the higher stock price team. when he cared more about the s&p 500 than he did about the steel and aluminum industries. in reality, trump campaign taking a tougher line on china and trade. he just put off doing anything about it until after he got the tax cuts passed. and i don't think by any means that trump is done with the chinese. the people's republic has a tendency to promise one thing

before doing the opposite. still investors hate the idea of a trade war. the fact that we have reached some kind of truce allows buyers to go back to what they were doing. that is how stocks boeing and caterpillar to lead the stocks today. the companies that are perceived to have the most to lose because they have done so well on the prc. not just china, demands for planes is so great that even if china switched all to air bus, if china put a big tariff on caterpillar machines, might be able to make up gains elsewhere. eventually numbers would have to

go down. and take the stocks with them. it wasn't just cat and boeing. we have been worried that china might want to put a tariff on apple iphone remember how the market looked like it was going to be down and then took off? now it doesn't seem like it is possible after the peace breaking out between the two presidents therefore apple rallied a quick three bucks. intel has plenty of asian exposure another green lights because of xi's olive branch. it was almost a happy days are here again celebration and i feel that preparation those who listened to president's chief economic adviser told you he was

optimistic about the talks with china, he got it right he made you money. of course today was not all about china. in the afternoon it was all about facebook mark zuckerberg's testimony on capitol hill try to get it wanted to know, what he intended to do, it is not even easy to explain frankly to make facebook's user feel more in control of their data. now i am using that touchy feely language because it wasn't like they tarred feathered or pillared the guy they have to pay us to look at them if anything, it was the opposite that is why facebook stock was one of the best performers today. rallying perhaps ceo mark zuckerberg wasn't going to lose patient and

blow up. for mark to answer questions in a coherent respectful way. imagine what facebook could have rallied if he could do a reasonable impersonation of a human being. amazon soared 30 points. maybe it takes respectful words from president xi, and the fbi raid to take the president's mind off of amazon we this things from amazon today and they were stolen today do you think that is what happened today next week the online entertainment company could crush the numbers. alphabet jumped 16 points or

1.6% even as morgan stanley questioned if it was too high. are we getting tired of that the other great performers, remember i anointed those cloud movers red hat 3.5% adobe up. the star of the show, splunk up 3.6% these truly a replacement for fang what happens now as long as the two presidents make nice, i think we could have a couple of days of peace until we get into earning system we need the president to hold back from firing a bunch of people or else we are back in the washington red hot griddle with our portfolios.

just like z man was in the senate when we look at the world in the stock market, we have to recognize that what matters right now is the president of china and the president of the united states will get along and there will be no war, trade or otherwise. the idea that we could have earnings cut by the government, cut by government fiat is something that no one expected from trump a few months ago. maybe we are back to the joyful days of 2017 when you bought stock and watched them be higher is that the way it will be no we will be worried about interest rates investors watch mark zuckerberg, they bought everything including the stock of the company he invented in his harvard's dorm

room alex in alifornia. >> caller: booyah. i am so glad you answered my call, i am lost and need your help my question is about apple's announcement in investing $9 million since that announcement, fin finnisar is this a case of keeping the price down >> no, finisar is doing a lot of things right but a lot of the optical components aren't doing well if apple puts a big order in with finisar by apple.

up next, more on my take on facebook and it is scandal laden cohort including a car company that we don't talk that much about on the show >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. let's begin.

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what do you do with a former

market darling turned train wreck? last month we had not one, not two but three household name tech stocks rocked by scandals facebook, tesla and amazon with all three names rebounding nicely today, along with the rest of the market, with facebook stock soaring off a calm collected zuckerberg in front of the senate. how did he do that he sat like that all day amazing. i think we need to conduct an assessment can these three titans keep rebounding facebook had the cambridge analytica data harvesting blob in order to build voter profiles

for targeted election advertising. thanks in part of management moronic response, the whole thing has snowballed you don't ever want to be there. someone may see he did a great job, memo, you never want to be in front of the senate it been a loser. a week later tesla came under fire after a tesla model x driver died. the poor guy had autopilot feature engaged. ability it meet its production targets and need for capital stock has come down 4% since the accident and a lot lower before the run

of the past week as for amazon, the story is simple they are on the wrong side of president trump. two weeks as axio ran a story. trump has lashed out for amazon several times. told you these are really not that great so many stocks going well at this point starting with amazon, the most clear-cut. even though the company is facing intense criticism from the leader of the free will, i

think the stocks buying is plain and simple with all due respect, the president should fire whoever has been telling him this stuff about amazon they are obviously not as well informed as they should be does amazon pay sales tax? yes. does amazon take advantage of the postal service no the postal service turns a profit you raise prices for amazon, i don't know, the president may hate bezos, but at the end of the day it is hard to see how this will impact amazon's earnings the president is not a king. if the post office tries to play hardball, amazon will take its business elsewhere

where trump can hurt them is with government contracts. trying to win a $10 billion cloud contract from the department of defense. being out of favor with the commander in chief may hurt the prospects. amazon has the best technology in the defense department. more important most of amazon's come p competitors don't have the ability to win this. this is not a real scandal, i think it is a buy into any additional weakness. how about tesla? now their woes began with the fatal accident first responders had a hard time putting out the fire when tesla's batteries ignite, they turn into a blazing

inferno. the whole incident seems to strip musk of his whole teflon status then tesla announced a voluntary recall because of potential power steering issues. elon musk response, on april fools day, he sends out a joking tweet, tesla goes bankrupt, investors not amused thanks to some better than feared production guidance and reassurance that tesla doesn't need it to raise capital where do i come down short-term tesla ends up needing

to raise capital then you will get slammed if you own this thing long-term, my friend jim stewart just published an incredibly positive review. the stock ran up today never the less, i think it is too risky to bet on it at the moment and i am torn on this one. do i think the financials make sense? no. do i love the car yes. finally, how about facebook? did you see them they are at a hearing today. the data handling scandal has painted a target on their back which is why mark zuckerberg got raked over the coals

we know a few advertisers have put a moratorium on the facebook advertising. but according to zuckerberg there hasn't been any changes in meaningful behavior. if lawmakers decide to apply new regulations to facebook's business, banning what i would regard as being the way they use personal to help the advertiser. then it could hurt the numbers now i think zuckerberg really did handle himself quite well in front of the senate because he showed humility. he apologized and said he was sorry. and then sure enough after he apologized he said he was sorry. and he may not have passed the touring test but he has another chance to come across as human when he addressed the house of representatives tomorrow they are doing an independent audit but i want someone from the outside to come in

i think the stock is probably a bargain, but you can't buy this unless you are prepared for the fallout when the company disappoints. or if something bad happens and you can't handle the scrutiny that zuckerberg is getting by the way, that is the real crux of the situation. that is what you have to be following. the bottom line, looking at these three damaged tech titans, amazon is the best shape tesla, too risky for this guy. as for facebook, my travel trust owns it. be careful there is a chance congress could take action to force the company to be more up front about the way it takes your data and routinely matches it with advertisers. believe me, if there is another big breach, well, it is not going to be enough for zuckerberg to say that is the business model stick with cramer.

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. while we are fretting about fbi raids on presidential lawyers, the latest chatter out of china are mark zuckerberg's testimony. let's not forget what the stock market is really about it is about companies. those pesky little things we trade pieces of every day. i think they are fun in the end my job is not to talk about foreign policy you are not supposed to talk about it that is what i learned from my mom. i wish i could get away with ignoring washington all together which companies are doing better than we think so we can pick the stock that has more potential. throw away the others. every morning, i focus on wall street research just to get a handle on what might happen. now this research is far from

infallible just today i saw an admission from a very honest goldman sachs analyst saying she has been wrong on proof point had to drop on a per person b e basis and instead they went higher proof point ceo has done a great job executing. you know, i have been thinking about this, too many analyst dig in their heels rather than getting something wrong. lots of people admit they make mistakes arguing the fears of a stunning decline in nvidia's aided cryptocurrency mining. those crypto worries send invida plummeting this stock had been trades as if

it was joined at the hip not linked at all with core businesses autonomous driving and gaming. that is what ceo jenson wang told us. and i believed him i guess morgan stanley agrees. while we are add it, morgan stanley updated a forlorn sea gate in response, seagate rallied 5% today. we have seen analysts raise their price targets. of course once they raise the bar, it becomes harder for netflix to beat the numbers but i can't really complain. this fang stop is up another 3% today. ulta beauty was ready to bottom,

and today we got confirmation of this ulta vaults 4.2% one of the major dogs in the dow exxon mobil. caught an upgrade. merrill lynch, the thesis, exxon trades like an oil when oil was much lower so it deserves to go higher. if you take a look at where oil prices were when exxon was at this level before, they were dramatically lower big shoulders on that one. especially when it rallies almost 3%. big move for exxon including a fantastic piece from steve how nike just acquired a

start up doing body scanning the ability to scan your feet can give them a major up here. i need these i have to buy two pairs of nike -- anyway, too much information. nike has been one of the best performers in the dow. finely, paypal, a company that has been battered from competition of amazon. laying low by talking about losing business. venmo is more beloved by the younger generation than ever there. no michael cohen, no china battles. no federal reserve and a zuckerberg free zone companies doing the same thing, more money for themselves and for you the shareholders stick with cramer.

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mark zuckerbe >> announcer: lightning round is sponsored by td ameritrade >> on a stunning day for the

averages, we have a reprieve from china when the stocks surged higher. you know what else was on fire, oil. but there is no denying that crude oil is doing well here as the middle east heating up the price of oil is down less than five from recent peak and moving up nicely today gaining 3.3% founder of explosive openings.net as well as being the brilliant technician we are going to get a better read on the energy names that are working here you might think that crude on the rise in the mid 60s, should

be in high heaven. makes sense, they have plenty of natural gas. nice cramer winners here anadarko, phillips lot more demand for alternative energy sources and why they have been making a monster comeback as of late. let's start with u.s. oil. anadarko, stocks gave me a series of higher highs, higher lows just as important, anadarko is strong volume trends, when the stock goes up, it tends to do it on higher volume for technicians, volumes like a

polygraph, let's you know when telling the truth. anadarko always a positive sign. let's check out this moving average convergence. before they happen and lang's view, the mac d is a bullish cross over tends to be pretty consistently bullish. if that happens, he thinks anadarko can break out and move to the 70 area production mix that skews heavily towards oil and not nat. conoco recently made a classic w shape bottom stocks had a low in february and tested that low in march and

right around the time of the retested, the mac d buy signal what else? the chakin money flow. that is a classic of institutional buying conoco's volume turned positive. he says that it may stall for a bit. a bit of sideways action, lang bids conoco to go higher again personally i prefer anadarko sign for a renewable energy stocks couple of renewable energy stocks that lang likes here. solar edge actually made an all time high last week. so feast your eyes on the daily

chart of one of my old faves, first solar. the recent sideways action took place in low volume. see, declining which implies the big institution money market is flowing around stock is currently in a wedge pattern, all right but eventually it is going to break out to the upside or the down side. after first solar spends more time trading sideways, lang passes i say hey, come on, be cautious. finally there is the daily chart of solar edge technology one of his faves stock doublings the last seven months the company reported a blowout quarter thanks in parts to china

tariffs. just like with first solar, lang points outs the sideways action points to low volume that means the big money is not ready to ring the register a monster surge of money flow in late february and march. this indicator is still on positive territory lang notes solar edge is ahead of all of the moving averages here in lang's view, solar edge may need to take a bit of a breather but for the moment he thinks it is digesting its gains bottom line, the charts interpreted by bob lang determine that all managed to put at least partially defy the gravitational pull i think he makes a compelling argument although i would be more

selective. stick with cramer face anadarko. up next, the "lightning round. and then a facebook update stick with cramer. you know, it's made me think, i'm closer to my retirement days than i am my college days. hm. i'm thinking... will i have enough? should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though. yeah. schedule a complimentary goal planning session today with td ameritrade.

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at what they do is indispensable, and i couldn't ask for a better partner. it is time it is time for the lightning round on cramer's "mad money." that's where i take your calls rapid fire -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning

round on cramer's "mad money." >> let's start with jeff. >> caller: paychex. >> i think it is a buy, buy. clive in california. >> caller: booyah. triple m. >> the analyst conference, they indicated the month of march wasn't as strong as they thought. >> caller: is fitbit currently under valued >> no. nate in washington. >> caller: booyah. i recently purchased 5% discount on their stock >> i think that gva is just okay

let's go to cal in massachusetts. >> caller: expo logistics. it has been doing well i feel like the best time is behind me. >> no. my travel trust told me keep holding it is going to go down it is the last mile. it is everything and that, ladies and gentleman, concludes the "lightning round"" >> been sitting in that mark zuckerberg testimony, so julia, what is the latest from capitol hill. >> testifying for four hours in a testy exchange with senator kennedy, he just stressed that facebook's users and not the company controls the user data asking zuckerberg how he believes facebook and the whole industry should be regulated. >> i'm not the type of person who thinks that all regulation

is bad so i think the internet is becoming increasingly important in people's lives and we should have a full conversation about what is the right regulation and not whether it should be or shouldn't be. >> dismissing the idea that facebook is a monopoly he also said just moments ago that there is no caindication ta people have stopped using facebook in the wake of the data scandal. zuckerberg has been apologetic he has outlined a number of ways in which facebook is trying to change that and implement policies to make things safer. back to you. >> thank you so much another day tomorrow in the house. i have to tell you, i think he did quite well for what it is worth. in the end, he apologized and

showed humility and he was sorry. if he show humility in this kind of situation, i think you are fine what would i do with this stock? it is simple they cannot have another mistake. they can't have another mistake. if they do, what is going to happen is the senate is going to be in front of the fcc and this is going it involve you opting out or going in and make it really hard for them to make the kind of money that they used to make. and i am not sure they still can. the price earnings multiple is way too low. i get a feeling that means the earnings per share are going to have to come down and come down big. so get ready for number cuts > li tsathe'als what is ahead. >>i keo y ers ways a bull market somewhere. i promise to try to find it just

for you right here on "mad money. i'm jim cramer, and i will see you tomorrow when everything's connected, it's simple. easy. awesome. >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ my name is nick romero. i'm 30 years old, and i live in venice beach, california. ♪ venice is such a creative place, and my store is completely based off creativity. ♪ my store is called the ave, and there's no place like it in the world. what we do is, we allow for people to come in and custom create any article of clothing--