industrials. but somehow the tech growth stocks manage to keep it afloat. they didn't. so what you're look for i guess is the market is kind of the bottom end of the range for some group to stop the bleeding >> all right we'll look for that group. in the meantime, that does it for "closing bell. thank you as always. "fast money" with all the earnings coverage begins right now. ♪ sure does. "fast money" startings right now with an earningspalooza. we have full coverage in all the big names reporting after hours. what do you call that, covering these conference calls, julia boorstin on facebook deidre bolsa on paypal and bertha coombs handling all the other type of chips but chipotle we're going to check in with everyone throughout this hour. so don't move. and plus, "fast money" friend and earnings, gene munster, look at him he is monitoring the facebook call from the red phone in minneapolis that call kicking off right now. and that's where we start, facebook the stock is soaring after

hours, following what has been a rough quarter for the social media giant, juggling a major scandal surrounding its privacy and data policies. but so far numbers are looking good the stock is jumping more than 4% after hours and the company announcing a big buyback the worst over for facebook? guy, cambridge analytica, who cares. >> if there is not another cambridge analytica, it's over the operation margins close to 46%. i think the street was looking at 40% so just about every metric you look for the quarter was outstanding. i thought there would be some sort of tepid guide. they'd be cautious in their tone clear they weren't to manifest itself in stock buyback as well. the stock is back to the levels we saw a week and a half ago of 167 or so. facebook in the same range that it's been in or is it about to break out? i still think it's in a range. >> they haven't guided operating expenses yet that's going happen on the call. you have potential for a big reversal of a move. >> like google for example.

>> listen, i think that no one expected this q1 to be material impacted i think mark zuckerberg told us that in march. really that does have to do with the guidance they did add 5,000 workers in q1 they're going to add another 5,000 over the course of the year listen, the worst over as far as what we saw a looming regulation no it's just the first inning of the thing. you have a stock that as of the close today was down about 35 bucks. down about 18% from its all-time highs the day that it reported its q4 earnings that people thought were going to 200 and higher i think you to curb your enthusiasm little bit. >> riddle me this. even before cambridge analytica, they warned -- remember, they were going the change the algorithm in the feed, the user engagement was probably going to go down. everybody was quite nervous about that and guess what they beat expectations and went up >> look, i'll say this i think zuckerberg did an amazing job. i think he throttled it. he basically stood up for his

core investors after the interview, after he testified, i said it i think on this show. he is an arrogant guy. let's call a spade a spade the reality is he wanted to make sure this is a slam-dunk quarter. the buyback, everything is a testament to that. the spend we're going to wait on the spend is important but that's how they throttle the street so they can look at spend, and you're going to hear whatever commentary they have. they'll dial it back in one area if the spending increases, if they have to spend more to offset this privacy issue. so my look is the spend is going to be fine i think the stock actually moves higher from the current level where it's trading after hours and tomorrow should be sort of all clear zone if you will for the near term at least. >> despite 50% in last three months >> yes, absolutely gotten hammered but the spend is going to be the key. that's something we've already known about. they started getting into more and more money getting into the security side. so that's where they've been focused. let's not forget, it's not just about facebook there is messenger, there is instagram. and they really are social media at its finest. they've got the whole thing. and they compete basically with

google and as long as they coo keep some of these numbers even close to where they've been. >> right. >> those ads are going to stay now the one thing that i think has ban little bit more consistent is people are spending a little less time on facebook over the last couple of quarters than they once were i don't think that's the biggest issue in the world but it's something if you're going to look for a negative, that's one of the negatives. >> here is the thing facebook has a discounted multiple relative to google. that deserved? i mean, you talk about potential regulation i mean, if it's going to happen to facebook, i got to think. >> think of the moat that facebook has just because of everybody's concerns about privacy. that's something we talked about day one was this actually in some ways will help facebook because the money they're going to be putting in there keeps others out that much longer. because they're going to have to spend if they want the same price. >> the arpu in the united states is the highest it is all over the world except it's not growing. they had 1 million user here is in the united states to me the growth story

internationally is really the most important going forward we know they're never really going to be in china at the end of the day, i think you have to think about this if you think that zuckerberg went in front of congress and then they print this quarter, and they talk about hiring more people and they're going to be more focused on our privacy and all that and you think it's done you're crazy, just crazy you go back and think about in the late '90s when microsoft started having government breathing down their necks a little bit here is a stock that once it kind of topped out in early 2000 underperformed the broad market for decade i'm just saying. >> it's important back to mcc's point about the expectations, as far as growth expectations, this is a company that is going to grow earnings this year. i think it's 40 plus percent next year i think 25%. decelerating a little bit. but my point is 25% in earnings growth next year where are you going to find a stock like that that's got -- >> operating margins were expected at 27%. came in at 22% because of all

the spending this is before -- >> right google spend was $7.6 billion in the street so you're talking about a massive, massive shock to investors. i think it took them offguard for a day or two but i don't think that story has changed at all >> would you rather facebook or google >> would you rather? >> would you rather? >> i -- personally, i'd rather alphabet i think valuation is more compelling they have probably equal moats i think the regulation -- i think regulation is more prone to hurt facebook than going until my opinion i'm probably with you but the verticals are the interesting part when you compare this to microsoft and going back to facebook a second you compared to microsoft in the '90s, they just sat there, though, dan. they didn't go forward and move on to the next the one thing with facebook is zuckerberg either buys it or builds it to compete >> with the government scrutiny right now, they're not going to be able to buy anything except their own stock. >> the focus on from a

monetization standpoint. you have 800 million people on instagram. 1.3 billion people over on some of the other two products as well outside of the facebook $1.2 billion. >> are you arguing that this could be dead money for ten years like microsoft no. what i'm saying for 2018, the ranges in this stock between 150 to 190 to the upside, i think you may get trading opportunities. and if you're going to buy it, for all the reasons you guys are saying, i think i don't have you to look bhast is going to be an initial round of regulation. this industry has proven like almost every other industry they cannot self-regulate it's coming. zuckerberg told the senate and he told the congress that, that they're open to regulation so to me, i'd actually rather if we're going to play would you rather works you rather, i'd rather buy a twitter and a snapchat that i don't think are going to have the same issues as it relates to regulation and i think twitter show you'd by the regulation growth they have, they're focused on

monetizing their 336 million monthly. >> i disagree. >> yeah, but this is my game right here i think those are more interesting. i think those are more interesting games right now. >> twitter's revenue growth came from basically international their u.s. growth the revenue was flat so look at the quality of the revenue growth that twitter posted it was like japan. that's garbage, garbage quality revenue growth >> you don't like the japanese what's wrong with the japanese >> the market is just not that big, if you will i look at twitter and say this problem has plagued them for a while. they're not growing the way they should be. their user base isn't necessarily strong and they probably have the biggest tailwind to their story they've ever had with the president being in office using it as a podium >> let's get some technical analysis now on facebook let's go the charge of christopher verrone. what do you see in there, chris? >>. >> certainly a strong response

with this number when we look at this stock, set to open about that 167, 168 level. but when we step back and we put this name in context, i think the big question that we need to ask ourselves here, is this a rally we should embrace? frankly we're skeptical this 170 area is now resistance let's remember, the weakness in facebook is not snag is two or three weeks old. this is a stock that relative the s&p has been deteriorating for the better part of the last six months we don't think this reemerges as a leadership name here when we look forward, it's not just facebook. we have amazon this week as well this stock has corrected continually right back to its trend line over the last three years. we think ultimately this correction is no different we think there is $200 of risk here $14.60 the last fries. we think $12.50, $12.60 is back at the trend line where this shakes out what does this mean for the broader market right here? i think what is actually a

little bitten couraging away from these big names, if you actually look under the surface, selling pressure has gotten less bad. this is volume this is the s&p. we've tested this 200-day average three times over the last couple of months. and on each time, volume has gotten less. so less selling pressure on these declines and i think maybe most importantly, what we've seen, the equally weighted s&p has broken out relative to cap weighted s&p so the average stock is actually faring better here we think that's a decent backdrop away from some of the big names. >> should we invite chris over to the desk after all that, guys >> yeah, bring him in. >> come on over! ♪ avoid tech, go to other areas of the market >> yeah. i think we want to use this as an opportunity to suggest that the average issue here that's been neglected for the last two years in this tech move is actually the winner here

and i think that equally weighted s&p chart is really important for investor when you the equal lay weighted s&p outperforming, the market is typically in pretty good hands sell some of the bigger names. overweight the average stock. >> i found the amazon chart really compelling, and worrisome about another $200 decline if we're going to retest that, that key level. >> so peak to trough, that would be be about a 22% decline for amazon if you look back since amazon went public in '97, the average correction for amazon every year is down 30 that's the average, every single year down 30 we haven't seen that trend line in about a year and a half i think it's reasonable to suggest as we move through the summer which can be a tough seasonal for that stock, you will revisit that trend line i think that adds to the case that you want to be light were some of these big names and get bigger with some of the smaller names. >> if amazon goes to 1250 level, the whole market is going to implode. that's going to take the whole

market down. am i wrong in phrasing it that way? a negative spin on amazon looking it go to 1250, this entire market is in trouble. >> i'm not convinced about that. let's look at yesterday's price action as an example s&p down 40 handles. but declining stocks only outnumbered a vanishing stocks 1.5 to 1 the internals weren't that bad despite weakness among some of these bigger names i think that lends itself to an environment. we're actually selling pressure for the average stock is getting less bad and less bad and less bad with each retest of this 2600 area on the s&p >> what you got? >> it's interesting. to be long facebook here in my opinion, you have to believe there is not another cambridge analytica out there, that everything is behind them, that all tboogiemen have been put to bed. it's really not that big a deal. >> in terms of the buyback >> in terms of the stock buyback there are a lot of things to like in this quarter the quarter was expectational. i think we all thought the

quarter would be great i wondered outloud, is number one cockroach i guess. >> thank you coming up, earningspalooza is going to go on and on. at&t, qualcomm, chipotle, they're all on the move. look at chipotle more than 10%. our all star earnings crew listening to all the biggest conference calls right now, getting ready to give you the latest headlines and instant analysis we're going check with them in just a few minutes and later, don't look now. bitcoin is tanking, and this time ethereum ask to explain brian kelly is here to explain what what is shifting in the crypt couniverse we're live from times square in new york city. and we've got lots more "fast money" coming up right after this trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling

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show me the billboard music awards. the billboard music awards knows how to party. [ cheering ] what up, dog? show me top artist. unbelieveable. i've got my whole family up here. look at my dad looking all sharp. with just the sound of your voice, xfinity x1 gives you a front row seat to the billboard music awards, including throwback clips from some of your favorite artists. the 2018 billboard music awards, sunday, may 20th. only on nbc. welcome back to "fast money. we have an earnings alert on at&t down 4% after hours. seema mody standing by with more. >> hey, michelle, this earnings report is seen by many as exactly why at&t, the telecom provider needs a deal like time warner to work out earnings and revenue, disappointed due to weakness in wireless and tv sales. we haven't heard from ceo randall stevenson speak yet on

the call but here is what john steven said on the call regarding the company's proposed $85 billion takeover of time warner. >> both sides are wrapping up their cases and are now preparing for closing arguments on april 30th. after that, we'll wait for the court's ruling based on the court's determination, we stand ready to close. funding is in place. even after we settle the special redemption bonds. >> other important stats, at&t adding 158,000 post paid subscribe owners a net basis in the three months ending on march 31st of which 49,000 were domestic in terms of price action, worth noting that at&t shares have vastly underperformed the s&p telecom sector this year, down over 13%, and lower by 4% in after hours trade as investors react to this disappointing earnings report. michelle >> got it, seema thank you so much.

deal nor deal, dan what do you think? >> listen, it is a coin flip should it be approved. and i hope it does because i think it's actually going to be something that helps level the playing field. and thing is a way a lot of the tell con and media deals are going to happen from here on out. sate vertical deal i think there was one headline that was really important i think randall stevens said or maybe the cfo said higher phone upgrade rates are history. and it kind of reminds me like the cataract or the cfo's commentary yesterday we already know that it may mean a lot for the likes of apple >> i'm a journalist so i'm a cynic would. you want to have a blowout earnings quarter when you're in the middle of a trial where you want to convince the world -- >> effectively. >> and wouldn't you want to say, gosh, you heard seema's opening line this earnings report shows exactly why they need to do this deal. >> look at this. our community has been blown up. and rxpi, this particular telephone time warner deal, they have been annihilated.

so the risk has been off these things have unwound. i think telephone is a layup i think it's a buy here. 5.8% dividend yield. i understand the whole price issue and the struggles they have as a company. i think the deal gets done i don't think there is a question this deal gets done and i think the trade is to be long telephone >> is it a buy if they don't get the deal >> i think it's been derisked to the point where it doesn't go down the risk sought of the story if the deal doesn't go through. and you get a 5.8% dividend yield right here it's only upside if the deal gets done. obviously they need the company. if the deal gets done, the stock is going to rip. >> some of the changes in accounting, that's find. eps in line. the question comes down to this. it better hold $33 because that was the low in november. i think that's a critical level. we're close to that. now and what's the right multiple for a company that really doesn't have any eps growth in this space i get the whole dividend thing i think pete would agree with me dividend is the cherry on top.

>> it's the last category you look at is what the deal is. >> it's a company whose valuation might have to start to look at a little more critically >> to answer your question, ten times next year, ten times the year after that too? >> you tell me >> not that exciting on earnings growth i think $33 is your line in the sand >> got it. all right. coming up, facebook shares are now up nearly 7% and at after-hours highs following the earnings report. conference call is under way right now. we're going to hear what mark zuckerberg is telling wall street right after this.

welcome back to "fast money. we have a bitcoin alert. uh-oh. take a look at crypto currencies they're getting crushed as a bug has been found in ethereum smart contracts that could make them vulnerable to hackers. our very own crypto baller, that's what they call you in the show bk is at the plaza, breaking down what happened what does this mean for your coins, bk? >> there is a lot going on here, but it has a limited impact. we'll go through exactly what is going on look what happened today. we have ethereum, litecoin, bitcoin, all of them falling significant amounts. we had a nice rally off the lows we're up almost 50, 60% in some of these things off the lows, and now we're having a pullback. look what happened with this bug. to me the bug is overblown it only impacted 12 different coins. bit checks came out. they checked every single one of

the ethereum tokens. didn't have the bug whatsoever the reason why, it's not part of the standard ethereum smart contract they're called erc-20 contracts. this bug is not part of that necessarily. you'd have to add in this piece of code. only 12 coins did that number three, this isn't just a crypto bug. this is a known bug throughout many different coding languages. so there is easy fixes to this so i think, you know, bitcoin falling down, ethereum falling down all on this, totally, totally overblown. not to say that the bug isn't serious, but totally overblown for the rest of the market now let's go to the charts and see where we are on this we're going to start with ethereum look this is the rally we've had right off the bottom there remember, we've been in this big, big downtrend and that broke last week so now we are going from the sell, the rips to the buy the dips and where is ethereum right now? it's at just below, just above

600 or so, which was the breakout point now let's look at bitcoin, which interesting, should not have gone down on this. because bit bitcoin doesn't have this here is the big downtrend we've had since december remember, we talked about last week that $8500 level. there we go. that was the breakout? here we are. we've dipped a bit in fact, this morning we dipped almost to 8600, right to that breakout so that resistance is now support. and i think you buy these dips in bitcoin >> all righty. come on over to the desk, bk >> come on over! >> what a great job on that. >> the bitcoin woes. >> does everybody get a trophy on the show? >> the bk thing, we've been doing this for a long time you know there are 12 people all taking videos of bk. he has groupies now. >> bitcoin groupies. hello, hello >> powerful media.

>> very powerful >> i have an entourage wlarks is the best trade in crypto right now >> best trade right now i would say bitcoin because it's broken out above its long-term downtrend. it's dropped back to 85. i think it's 9100 now when i got on set but even that, that's a rebound off the resistance i think bitcoin is the best one out there. >> you made a great call last week on bitcoin cash nobody wanted it you wanted it. you bought it. how much it is up in the last week >> i'm still long it and i think -- 1600 is next resistance, around that level. we got there we pulled back i think we blast through that. that's my call right now but if you caught them at 700, and it's here at 1400, it's not a bad deal. >> do you take some off forever a discipline standpoint? >> absolutely. that's pure trade. don't be afraid to take the stuff off. as much as i love to thodl as everybody talks about, don't be

afraid to take profits in these things they're still trading vehicles. >> so the backlog, and we talk about consensus all the time and what they're doing over there. the backlog they have and the amount of companies coming to them with projects is massive. so what will that do ultimate supply you should see ethereum just ratchet it up much higher as the projects really start to come out >> right so to the extent that the value of any of these protocols are built on what's on top of them, ethereum has massive, massive lead what joe lubin has done at consensus is amazing he has thousands of people around the world, some of the smartest minds building apps on top of this. he does have competition i think they can all exist together >> bk broiler, good have you. >> the broiler. >> he is the broiler >> that's right. >> emcc. >> he is on it >> giddyup >> giddyup >> around too long coming up, it's an earnings extravaganza here on "fast money. facebook, qualcomm, advanced

micro, chipotle, they're all soaring in after hours we're going to bring you a tllhe latest headlines as they break much more "fast money" on this very busy night. how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.

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welcome back to "fast money. time for a very special earnings whip, chip style qualcomm and amd are higher in the after hours following their,s report and we have a dynamic duo, jon fortt and josh monitoring the names. josh is keeping an eye on amd from san francisco let's kick off this chip whip with jon fortt. >> i'll take a chip shot first, michelle a lot of talk on this call about china from two angles that i brought to the fewers before the show started, before the call started, talking to ceo. analysts asking about china when it comes to the licensing business the weaker guide than some were expecting for q3 that's the current quarter really has to do with what's happening q1 smartphone demand in china we're getting more detail on that mxp. qualcomm executives saying they still expect this deal to go through, that china will approve it, even though they put this delay on it. analysts asking why, and they

got the same answer i got. eight out of nine jurisdictions have already approved it qualcomm executives don't believe china is going to want to be the one holdup and be seen as being a blockage in global trade. but if it doesn't go through, they have other plans in what to do with capital. the stock kind of came off the lows after hours, after they explained that q1 was the cause of the weak guidance and they don't see the issues continuing >> got it. thank you very much. now let's get to josh lipton he is on amd josh >> michelle, let's dig into the numbers here a bit besides the bottom and the top computing and graphics revenue segment, $1.12 billion, up 95% year-over-year up 23% sequentially. that's going to include desktop and notebook processors. it's also going to include graphics chips for pcs this is where cryptocurrency demand would show up that was about 532 million that was down 12%

year-over-year, though up sequentially that division is going to include a game consul chips as well as chips for data center. as for the guide, michelle, that second quarter revenue guide of about $1.73 billion, that is stronger than what analysts had expected and they're also calling here for gross margins about 37%. analysts covering the name will be quick to point out that cryptocurrency noise has been a big driver for amd over the last few quarters we're going to listen to what ceo dr. lisa su is going to say. tomorrow dr. su will be on cnbc at 9:00 a.m. eastern, diving deeper into these results. so be sure and check into that one. michelle, back to you. >> you bet we will thank you very much, josh. >> i'm interested. before we dive into these earnings. >> fell me. >> as our wont to do were you a pi magnum fan as a young lady >> that's tom selleck. >> that's tom selleck. look at him! >> it's ridiculous tom selleck on magnum never had a beard.

>> but he had a mustache. >> if i were a rich man. circumstances he looks like the most interesting man in the world. >> he does you're right that's a good comparison. >> a good set of teeth. >> what a friend now can we talk about call qualcomm amd >> amd, susquehanna cut their price from 7.5 to 13 talking about all the things that josh just talked about. all the noise in cryptocurrencies that sort of took the wind out of the sails of the stock. i thought the stock was buy at $12.50 clearly i was wrong. you look at his name on valuation, you look at this quarter, looking at the operation margins. maybe crypto is overdone and maybe should it be a 12.50, $13 stock. >> you're right. 29,000 of the january 13 calls were bought last week. huge it was part of a trade where somebody was taking losses they can write their losses off in the stock they were able to roll into the calls in case the stock can make a move by january. i think crypto is a big piece of

this data is a big piece of this. the biggest piece, the ceo is going to be on tomorrow. lisa su is outstanding a lot of people don't know, relatively new, they don't know who she is and what she is capable of doing for the company. i think that's a huge myself piece of this. >> what about the uncertainty because of the situation with qualcomm, the u.s. government saying this is a national champion, and being very concerned about china, which was the biggest buyer out there. we're seeing the potential ramifications of an xp deal that josh highlighted but if the biggest buyer isn't allowed to buy in the united states in the chip sector, don't you have to take some bit out of all of these stocks? there. >> has been $300,000 in ama in the last three years. >> right. >> i don't know if there is any other two combinations to happen at this point. i'll say about qualcomm at $50 this is a stock that last year when it was trading down here that >> had $40 billion in cash a $73 billion market cap net of debt they have been 20

billion. they have a lot of things they can do here. it's a very cheap stock. once they get some of these situations and licensing front sorted out, thing is going to be a combination candidate, one way or another for somebody. they're going to find somebody they should combine with investors clearly do not support their vision on going at it alone. >> i like amd. i think amd is varied from a valuation aspect you listen to brian kelly talk about the crypto market and the projects in backlog. just consensus alone, there is a tremendous amount of competition for ethereum but that just adds fuel to the fire in my opinion look at it and say there is a backlog there. they're coming to market it is coming on fierce i'd be a buyer of amd. >> intel is the next big chip name up to bat the company reporting earnings after the bell tomorrow. options market is beth betting on a rally. >> you're going to walk and talk too? wow! >> either direction here. >> he is a pro. >> and on average this stock has

moved about 5.5% over the last four quarters. intel's report can't come quick enough for the semiconductor space. 15% from its recent highs. it's sitting on some pretty important support. i think obviously the bounce we're getting out of qualcomm and amd should help in the space. and don't forget, texas instruments which has been a really poor performer for the better part of the year, reported a good number last night. was up in the morning. did not do a reversal like we saw in a lot of names. let's go back to intel the implied movement pretty big one way or another this is a stock that is massively out performing that its semiconductor peers up 11% on the year. the stock sold off yesterday with the market. but it had a really nice upgrade to estimates by citigroup saying the stock could be $70 this year let's talk about the activity they saw today 5,000 in the october 55 calls traded they looked like they were bought if they were bought that >> break even. up at 57, 58 on october expiration

that's up about 12% from current levels here. i just want to go to the charts. real quickly here, when you look at this thing, we talked about this outperformance here it really has a nice base here in the high 40s. it topped out about 54, like i said some traders targeting a breakout of that and i just want to go one more point to the long-term chart, the 20-year 2000 chart at intel. this is a company that has made a ton of acquisitions over the past few years. >> altera, mobile i, they're positioning themselves for next ten years. we're looking back at a last 20 years. this is one of very few stocks, obviously it's gone up with some enthusiasm about their move, into emerging tech this is one of the few stocks that has not recaptured the all-time highs so to me, when you have a build bold bank like citi bank coming out swaying could see 70, maybe 80 in this stock and it's trading up 13 times, this is one you're going to pile into. >> wow that would be one heck of

a return thanks, dan. for more "options action," check out the show friday. we are all over the after-hours action tonight facebook, paypal and chipotle all soaring. look at your screen, amazing we're going bring you the very latest from the company's conference calls in just a few minutes. we are live at the ndamaet te in times square see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

welcome back to "fast money. we've got an earnings alert on chipotle that stock is soaring after hours. let's go to bertha coombs. she has the details. hi, bertha. >> hi, michelle. we had a pretty good beat on the bottom line. a lot of that is from cost management but also what we are seeing here is a bit of a honeymoon happening for new ceo brian niccol, who was appointed on valentine's day, february 14th among the things he outlined on the call are the things they're doing to turn things around at chipotle they're going to focus a lot more on mobile and digital that was one of the highlights during the quarter that. >> said. they really pushed that. and they really saw an 8% increase in that and they're going to really focus on that to give people

more access so they don't have to complain about the long lines waiting at the stores. another thing they're going to look at is more menu innovation. they're going to do a lot of pilots in a lot of different stores and try to see what they can bring forward on a national level, including perhaps extending hours to make it a longer day at chipotle to give people more access, and also they said also looking at different day parts, maybe different pricing for different day parts. one of the things obviously they did at taco bell where niccol was really instrumental in the turnaround there and the big thing they're going to do is much more targeted markets, he says because he says this brand has been all but invisible, telling analysts on the call that he think there's is a real opportunity to make this more visible, this brand, and to really remind people about why it is they love chipotle, about the fact that thecompany does -- has very big fans already. and one of the big surprises for him has been that people really

love this brand. and he wants to remind them about that, and remind them about chipotle's commitment to sustainability and to really good foods and organic foods you know, it's one of those things where the stock itself has not been visible, down three straight years, more than 20%, michelle but take a look. since he has been appointed and with this afternoon's surge,up now about 49%. back to you. >> a tremendous trade if you got in at that point thank you, bertha. let's trade it anybody like chipotle here >> you know who loved it last week jim cramer you know that guy? that >> guy is so smart. >> i'm telling you i was watching the show at 9:00, with faber and carl. and he said he went to a screen and he started marking something up and he said the lines are back >> the problem is they didn't talk what their issue is their issue, they have a food quality problem. i mean, they got to talk about investing in food quality. >> they have been talk it. for years. >> marketing marketing this, he is a market

background, the new ceo. so the spend is going to go up no question about it you look at the stock right now. it's trading at an astronomical multiple i get it but spend is going to have to increase and the food quality is going to have to get better. they need to address that issue. >> four times next year's earning. >> it's about the digital. it's about the mobile. sorry, guy. >> no, go. >> the fact that this guy came from taco bell, whether people like it or don't like it, they made huge changes in that franchise in how they were able to react and they did it in such an unbelievable way if we can bring some of that, including the extended hours i've often wondered why their hours are what they are. because that could get much more out of the customer if they were open earlier, later. >> what time do you want to go to chipotle? >> breakfast why not breakfast? >> the breakfast burrito family, i don't know >> which everybody offers that type of a thing. >> inventory and it's going to be great >> he has an innovative background and brings that to table and that gives you

excitement. >> i love a good breakfast burrito. >> just real quickly on that 40 times earnings here is a company that was earning $15 a share back before they had all these food quality issues and it's a company that is now growing earnings meaningful in a way. and i think a lot of that spend has actually happened over the last year. so here they do. they going to have high single digit revenue growth they get that brand back together you get back towards peak earnings, and you have a stock probably trading around mcdonald's multiple. to me maine, that's the way i thing about it you have to give this turnaround a little more time. >> restaurant margin up 300 basis points that counters your argue about the spend. they're doing something right there at cmg giddyup. paypal moves higher after an earnings beat. hey, deidre. >> hey, michelle investors focusing on the good results this past quarter, though guidance was a bit of a mixed bag. paypal upping the revenue but lowering the 2018 eps guidance

john rainy said part of it had to do with a restrucinstructing charge >> to 1.76 this outdated for nongap adjustments. 38 two-thirds is attribute to stock compensation based on our financial outperformance the remaining third is from a restructuring charge that we recognized in the quarter related to reductions of our global workforce and the decision to wind down t.o. networks operation, which was not in our original guidance >> investors, though, guys, deciding that there is more good news in the report than bad. shares popping by more than 5% since the call started some of those bright spots i got mention, payment volume up by nearly a third

pal pal adding 8.1 active users. the venmo still going strong that's up 80% year-over-year i want to flag one other thing something we look for with paypal is the take rate that is the average revenue that paypal takes from each transaction that it facilitates this quarter, the downward trend continues. paypal attributing it to growth in p to p businesses led by venmo. still looking for ways to monetize >> anybody buying, selling what >> valuation is going to matter at some point. it's probably trading 30 times forward earnings, give or take. >> 31. >> pretty good >> a series of lower highs, pretty much from the fall. in my opinion, g-swizzle's opinion needs to close above 80 to buy it. i'd rather buy it on a breakout. >> would you rather paypal or visa >> visa, no question. >> visa. >> i'd rather paypal i just want to go back and make one point. the stock was trading at an all-time high when they reported

their q4 reports one of the things it really sold off the stock that and it has been in this range since then is ebay announced they're going to take paypal off as their preferred option that is rolling off. it's going to take years and years and years. the venmo numbers up year-over-year on $20 billion in the quarter, i think that's really important so to me, i don't think this story really should come off hinged because of that ebay the thing. and i think the results look good and this just fine. >> this venmo thing, i got a memo, send lilly adam may $15 for being a fantastic daughter how does that even happen. >> and you sent it >> of course not i have to download the application. >> in the old days can i have an increase in the allowance. now they text you and give you the app to do that. facebook soaring mark zuckerberg and sheryl sandberg were addressing the company's privacy issues on the

earnings call moments ago. well will bring you those comments and get instant analysis from gene munster from w.h.o. is standing by on the red phone right there. look at that all that and more when "fast money" returns [whistling] hello. give me an hour in tanning room 3. cheers! that's confident. but it's not kayak confident. kayak searches hundreds of travel sites to help me plan the best trip. so i'm more than confident. forgot me goggles. kayak. search one and done.

show me the billboard music awards. the billboard music awards knows how to party. [ cheering ] what up, dog? show me top artist. unbelieveable. i've got my whole family up here. look at my dad looking all sharp. with just the sound of your voice, xfinity x1 gives you a front row seat to the billboard music awards, including throwback clips from some of your favorite artists. the 2018 billboard music awards, sunday, may 20th. only on nbc. welcome back facebook is surging after hours. mark zuckerberg is speaking on the conference call. julia boorstin is listening in she is in los angeles and has the details. hey, julia. >> sheryl sandberg saying on the call moments ago that a month ago some advertisers paused spending on facebook, but that

they've come back. ceo mark zuckerberg focusing his comments on the call about the company's accountability and its focus on improving the service and protecting users zuckerberg dismissed the idea that facebook's focus on advertising is fundamentally problematic. >> i know that a lot of people have had questions about the business model and this is something that i just think we at facebook are very proud of, and we think that it is the right way to build a service that connects everyone around the world >> as zuckerberg stressed, the company's investment in safety and privacy, facebook's ceo david wayner warned controls which will be made available worldwide, they expect daily active users to be down flat, down sequentially in the second quarter saying there is some potential for ad impact. the company they're rogue its expense growth range to 50 to 60% and saying that capital expenditures will be around $15 billion. that's at the top end of the

prior range. sheryl sandberg focusing many of her comments on reassuring investors about the health of facebook's tidesing model. >> at facebook, we have always built privacy protections into our ad system. we use the information you provide and that we receive from websites to target ads for advertisers. but we don't them tell them who you are. we don't sell your information to advertisers or anyone else. >> sandberg as well as zuckerberg talked about the potential to grow revenue from what's app as well as facebook messenger. they also commented on the health of ads on instagram, though they don't break out the instagram numbers. >> got it. wouldn't be facebook without "fast money" gene munster on the red phone. hey, gene, what was the most interesting thing from the call? what do you think about the $15 billion spending number? >> michelle, before we get into that, i just want to point to something that really jumped out to me on the earnings. i haven't had a chance to listen to what everyone else is talking about here but the dau number, the 13%

year-over-year growth in line with the street expectations is incredible because they basically had a nuclear bomb dropped on their brand, and they still were able to power through and deliver those users in the face of a delete facebook campaign i think it really speaks to how sticky this platform to answer your question, what stuck out most in the call, i think your previous hit covered two of the three in the spending there was one piece about some of the changes that they're making on the controls so these are new tools that they're allowing users, and they're doing this in europe but they interestingly said they expect the number of daily active users to be flat to down in the june quarter as people in europe start to use these tools. they're going to roll those tools out across the globe over the next several months. so maybe you do see some bumpiness in that dau number over the next couple of quarters >> all right give us a grade for the quarter. despite all the things you're saying right now, facebook still up 7%. >> put it all together it was an a-minus.

>> a-minus what would have been an a-plus >> a-plus would have been if they exceeded some of those metrics. i mean, the fact that they made them is impressive it would have been an a plus if they grew daus at 18 to 20%. but overall really impressive. >> got it. thank you. gene all right. let's trade facebook what do you guys think >> i'm buy i look at the free downloads, free downloads on apple, on any of these platforms they're top ten. facebook, core, messenger. you've got what's app, snapchat. all that is top ten and consistently top ten so i look at it as a gauge you stay involved in the story here. >> google the other day turned around on the spin number. snow they had told us, facebook had talked a lot more what the spin might be. and it's not turn thong number. >> what do nuclear bombs do? they have fallout. you don't just -- listen, if you're buying this stock at 171, you're trading it kind of wrong. especially if you have a

near-attorney time horizon finger you're chasing it here. this thing's got legs, this story. so the european regulations going into effect pretty soon. we're going to have u.s. regulation. >> did you like the messenger stuff and the other things they mentioned in other areas >> sure. we've been talking than for a long time. i think that billion what's app use sers going to get monetized at some point. but for me it's really important. tres e sic. >> the final trade don't move start by asking questions like: did you understand all the fees you were paying? was your broker a fiduciary? were you satisfied with the attention you were getting? then i explain that being independent gives our firm more freedom to act in their best interests. independence lets us do that. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com

time for the final trade pete

>> we're going to intel. it's going up. giddyup. >> seaburg >> at&t. i'm a buyer. >> twitter on the pullback. >> thanks for being here, mcc. you're a pro hca, day two. >> all right cool "mad money" with jim cramer begins rightow d'tove. n great having you 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 just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. after spending most of the day in the red, the market roared higher thi