it has 27.1 million active accounts that is up 4% after hours. >> tomorrow the focus will be fed speak. we've got a ton of fed speakers at this monetary policy conference as well as a monetary policy report as the fed pivot continues to drive overall a much better tone in the markets even though we are down for the week. >> that does it for "closing bell." >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq marketed site overlooking new york city's times square, i'm melissa lee. tonight on "fast" the biotech beatdown that group of stocks on track for its worst week in two months there's one name wall street is turning its back on. plus an epic nike fail shares slipping as a duke superstar breaks a pair of the brand's sneakers during a game. faang biting the dust, having a rough february with the exception of netflix

facebook, amazon, all in the red as the nasdaq is on track to snap an eight-week winning streak so what is wrong with this faang trade? what does it mean for the broader markets? guy, can i interrupt your dancing for the show >> it's not my favorite queen song but i'm a huge queen fan. i don't think it means anything necessarily in the broader market facebook, self-inflicted wounds. i think there's still downside there. google, cloud computing, a vast third behind amazon and microsoft. that coupled with the fact that maybe regulation is coming down the pike netflix has been doing okay and amaz amazon, i think people concerned about valuation and maybe the retail climate is slowing down i don't think it speaks to the broader market i'm sure dan has views i think a lot of what's happening is people are rotating into other names. >> it most definitely has a huge impact on the broader market despite the outperformance over the 18 months prior to faang

topping out mid-last yoear, the were disproportionately a part of the gains if you put appear nell there faang, those five names were up to 40% of the weight of the nasdaq it was an accident waiting to happen they topped out mid-last year. they continue to make lower lows the fact that you have apple, amazon and facebook down from their highs, they can't get going. if you look at the equal weight, the s&p tech index is only 3.5% from its all-time highs. but if you look at the faang index, it's 18.5%. but there's a lot of stocks that aren't mega caps that are doing very well. so that's bullish. but you need the big ones to get back to the prior heights. >> if you look at amazon, that 1600 level is the mendoza level and it has to defend it here if you go away from the faang stocks, looks at salesforce, look at microsoft today, great

action there look at adobe, that's accelerated up so there's more than just faang. under the surface tech is a lot better than people are giving it credit for. >> if you talk about just over the couple of weeks, apple has done pretty well so far, netflix has turned it around, they're doing pretty well. yes, there are other names within faang itself but some of the other areas where we're seeing that growth, look at the semis, for instance. we brought that up again last night. look at the growth that we've seen out of some of those names in terms of the moves they have made off of those lows they have had an incredible run. intel today back over 51 a lot of these names have captured and moved back up to where i think they need to be to support a broader rally rather than just the faang names themselves boy t by the way, facebook, if they can ever get out of their open way -- >> i thought they got out of their own way, the last earnings

report. >> it seemed like they had the stock was up to 170. all of a sudden there's another story about facebook and it's down to 160. >> xilinx, here's a semi conductor stock who made new all-time highs but take 15 xilink and add the market caps together and you get a facebook. that's my point. if you want to talk about maga -- >> it's so catchy. >> microsoft, apple, grade school -- google and amazon, we haven't seen some of the participation in some of the groups we'd like to, like banks. energy has done well but it's way off the highs. >> you've got industrials and different parts of technology that are working if we just focus on just those big names, it's funny because people say there's only four names moving the market. the reality is how far off are we from s&p all-time highs >> without faang. >> forever highs and yet you're seeing a lot of

these names that aren't participating right now but you're getting a broader swipe that i'd rather see. >> who's right, chris? >> facebook is 40% off the lows here it can pause back to 155 and there's no damage done netflix has been the star of the whole group. you get that breaking out and i think the faang worries go away. but look under the surface, the oracles, the sciscos, those are the leadership stocks right now. >> should we be talking about faang right now? >> woe started the show talking about faang. >> but maybe we're too hung up on this grouping of stocks which no longer move as a momentum trade as they once did when the term was first coined. >> so we should have the funeral for a friend type thing. >> i wasn't going down that road obviously. >> you sort of led me there so i was going there. >> whether it be maga or -- >> the thing about maga, i don't know how you get the maga thing because when i look at it it's ma -- it's no longer google,

it's alphabet. number two, you're right about netflix. it's had a tremendous run. netflix is bumping up against levels we saw last october i think netflix rolls over i thought it was going to roll over $20 or so ago in terms of facebook, i hear you, it's off the lows but i think it's headed back there again. i think the headline risk for facebook is significant. >> i just want to make one point. what you just talked about, chris, is an important point we're seeing value outperform growth in technology right now you mentioned oracle, cisco, intel, these are all good balance sheets, low single-digit growers. to me that's very defensive. they have dividends, buybacks, all that sort of stuff so i don't see those things near 52-week highs, it's actually bullish. i know it shows pretty good breadth but i don't know how we'll get to new highs if we don't have maga -- >> i would push back a little bit. value working is the market's

perception that growth on the horizon, economic growth, may actually get better from here. when you're buying stocks with lower valuation, you have comfortable about the future. >> how do you say that >> look at the improvement in disney, in comcast, in charter. >> those are staples if you want to talk about tech, the fact that we're saying that faang or maga ex-microsoft are holding on for dear life but people are buying up cisco, oracle -- >> it's like the tech bunker. >> thank you, mel. to me it's very defensive. i've got to put my money somewhere, they're acting well i put it there i'm not going to touch the other things. >> i look at all those about do they have growth yes, they have growth. are they doing everything right? do they have the right fundamental story? >> what are their valuations compared to the faang trade? what are their dividends >> they definitely have difficult denividends let's not be too crazy

google is not that high of a valuation. apple clearly is not and i know that's part of aang. so we're not talking about 40 multiple-type stocks except for maybe netflix. amazon has obviously been very, very high. that's the one everybody says, well, but we're using a different measuring stick. it's kind of like boeing everybody says, yeah, but it's free cash flow, which is true, but now it's starting to catch up with itself because the earnings growth has been so high -- >> what i would say, though, back to tech if you were comfortable buying cisco and oracle and microsoft because we're going to see a weak acceleration in global growth, wouldn't you go for faang? that's what you would do. >> i think the pushback is you don't need to overpay from a multiple standpoint if you believe growth will reaccelerate today you had terrible economic data but yields were up, transports outperformed, small caps were in line.

that's not the result people would expect when you have a big miss on that data. >> what's your take on the tech bunker >> xilinx hasn't been a bunker, that's a tremendous growth story. i understand where you can say cisco is sort of a bunker. but you look at oracle and microsoft, these are stocks that have bun relatively well so you can't throw them in the bunker with everything else, number one number two, i wish i had thought about this before the show, but you look at netflix since december 24th, it is paralleling almost to the tick what's going on in the s&p 500. so you go back to october, look where netflix topped out look where it went in december look where it is now the s&p is now rolling over at its 2800 level the same level that it topped out at in mid-october. very interesting price action. i would suggest maybe, and steve grasso would agree -- >> this is the key to the market this is the new gm the gm of the modern time?

>> he obviously didn't give this a whole heck of a lot of thought. >> you said you just thought of it. >> i was just looking at it. i do things like that. >> we've got a top technician right here on the desk today and he says despite the day's sell-off, the rally this year still has life chris, head on over to the plaza and break it down for us >> when we look at this market, one of the big differences is the momentum surge that we've gotten off the low 93% of stocks on the s&p are currently trading above their 50-day moving average right now. that is historically very rare it tends to only happen coming off major bottoms. we got it off the '16 lows, the '11 lows, the 2009 lows. when you're coming off a low, you want overbought conditions it's a reflection of momentum. so looking out forward six-month returns, when you start to get

more than 90% of stocks above their 50-day moving average, your returns six months out tend to be about 9% that's versus about 4% over the historical averages. so the forward returns when you get these momentum surges tend to be really impressive. and i think the other big story here that's under way, this is the equally weighted s&p versus the cap weighted s&p as we know over the last two years, it has been defined by this underperformance, very pronounced underperformance for the average stock. that is starting to change a little bit if we put some lines on this chart, equal weight versus cap weight is actually starting to break out here this is the first evidence that we have that the average stock is starting to do better than the cap weighted index or the faang stocks we think that's a positive, we think it supports the market here i wouldn't be shocked if we pause but you have support in that 2600 range, maybe 2700 i'd

be a buyer. >> i think chris deserves to come back over to the desk i'm just kidding geez a lot of people out there buy etfs, and if you had to pick between an equal weight s&p etf or a normal market cap weighted etf, the better bet right now is >> there's a reverse weight s&p etf. >> reverse weight? >> where the apples and amazons and facebooks become your smallest weights in the index and the smaller stocks become your largest weights i think this market right now is about the average stock getting better it's something we haven't seen in two years we should welcome it it means there's more things to do under the surface. >> except for the fact that for two years prior to the top last year, like those five stocks that we're talking about were masking a lot of really bad performance in a lot of different sectors. so the fact that we have had some calibration i think is bullish longer term for the markets.

again, i'd rather own equal weight too because i think maga is an accident waiting to happen i think the qqq, if you're looking for a play to the downside, if you're looking for any sort of retest back towards those christmas lows, that's the best bang for your buck because they're already struggling, the top 35%, four names, 35% of the weight of the qqq, the nasdaq 100. if we do turn, that thing is going to flush. >> might i skate in pety's lane real quick. >> are you talking options >> i was going to mention the fact that if you look over the last year and a half, two years, every time the vix gets down to 13.5, 14, it pointed to a topping out of the s&p 500 in the immediate term period of time i think that's what's going on now. you saw it get down to 13.5 or so that's been the bottom of this thing. now the vix is north of 14 so i think the vix is telling you the next couple of weeks that maybe this market is going to turn. >> guy makes a great point because that's what i was talking about the other night in terms of what did i do with my

portfolio? implied volatilities are low, 14 in the vix, and because of that it gives you an opportunity to still be in the market but with a lot less risk exposure. >> f a lot more head over to trading nation.cnbc.com. as faang sits out the rally and growth takes a back seat, another group of stocks is taking the reins one portfolio manager says this will be the year of the value trade. he will explain. later, pete najarian is acce stepping up to give us one name that he thinks will heat up your portfolio this winter. yes, that is a hinting mu me asmoy"igchor"ft ne rht after this ♪ ♪ put your data to work on the cloud that drives business. the ibm cloud. the cloud for smarter business.

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we need to find the hidden world. woo hoo! we have one shot at this. i thought this was supposed to be a "stealth mission." yep, we forgot to fire proof his butt. [ screaming ] ♪ show them what you've got, bud. [ mumbling ] wow. try to keep up. sorry we're late for the party. [ screaming ] [ bleat ] [ low growl ] welcome back to "fast money. we've got an earnings alert, kraft heinz sinking in the after-hours session. >> pretty disappointing quarter for kraft heinz missing on the top and bottom lines blaming the profitability miss on some inflation costs and commodity price pressures they faced during the quarter

also announcing they received a subpoena from the securities and exchange commission, the s.e.c., in october of 2018 related to some of their accounting practices. they say they recorded a $25 million increase to the cost of products sold, as the company determined the amounts were immaterial in the fourth quarter, but nonetheless they say they're implementing certain improvements to their internal controls to mitigate their procedures to prevent something like this from happening again interestingly, they said that some of the -- on the earnings side, some of the commodity-driven pricing action in the u.s. was due to increases in prices for dairy and coffee on the bottom line they reported 84 cents adjusted, which was about a 10-cent miss from what the street was expecting top line $6.89 billion compared to $6.93 billion that the street was expecting. melissa, you can see shares down about 11% in after-hours trading. back over to you. >> yeah, they are sinking. leslie, thank you. leslie picker back at

headquarters this is going to mean pain for two very big shareholders of kraft heinz and that would be warren buffer it's berkshire hathaw hathaway >> it's been a disaster since the beginning of 2017. it was a $95 stock i think it was making an al all-time high. people said valuation, valuation for the last two and a half years. guess what, valuation is not working. the ceo talks about iconic brands and all these great things you can have iconic brands but apparently nobody is buying those iconic brands. the ketchup, i'm a big believer in it but i must be the only one because they missed eps by 10 cents and continue to miss on the revenue line i still think it's on the downside. >> i feel like snark is coming out of his mouth. >> this goes back to that conversation we were having. today kraft heinz closed at a $60 million market cap it has $26 billion in sales and $3 billion in net income

xilinx will have $3 billion in sales and a billion in net income there are just some disasters lurking and bigger disasters and they have a bigger impact on s&p earnings >> this is the wisdom of price this is a stock that was $96 two and a half years ago it's $46 today those are not names you buy into earnings you don't buy downtrends into earnings i don't think we should be terribly surprised with this response you look at where it can go from here >> we figure out we're going to cut a bunch off of kraft and add just a little in xilinx, but kraft at $60 billion is going down 10% and xilinx has gone up 20%. just do the math that's how you're getting a more expensive market because the companies that don't have the earnings, right, it's just math. so you can talk all you want about these high fliers and some of these things, it just -- >> to dan's point quickly,

general mills has been no ball of wax or whatever. >> it's a difficult space to be in commodity costs, competition, generic competition, amazon competition, all these things. >> they have got pressures they don't have pricing power. what do we talk about, those with pricing power win those without it and obviously kraft heinz is one of those, they do not have the pricing power. look at netflix, they raised prices and it seemed to work those that have that -- >> procter & gamble in this space has pricing power. >> there are absolutely some in the space, but they do have inflation worries. >> this is not a problem distinct to this stock look at campbell's soup the last number of years or altria the last number of years there's a problem with these big consumer staple stocks they haven't been leaders and shown us nothing over the last couple of weeks that would change that opinion for us. >> soup and cereal, no one is eating that stuff. >> i tell you what, i had special k this morning. >> with the berries? >> no, no, no.

they're real berries, but the flakes change in the berry product. they're different flakes i'm dead serious they have to coat them with something. that's more you know. >> on to much more important news here, check out shares of roku the stock is jumping in the after-hours session. it's up by almost 4% we'll tell you what has investors so excited about it. i'm melissa lee. you're watching "fast money. in the meantime, here's what else is coming up on "fast." it was the video that nearly broke the internet a nike shoe exploding during a college basketball game and the stock is paying the price. we've got those details. plus pete najarian is stepping up to the plate for a fast pitch like you've never seen before. he'll tell you the one under-the-radar name that he thinks is about to break out e's much more "fast money" right after this rheumatoid arthritis. because there are options. like an "unjection™".

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welcome back to "fast money. something strange is happening in the market as the rally takes a brief pause. let's get to bob pisani down at the nyse with more on why investors are finding value in value. bob. >> it hasn't happened very often, but it's happening this week it's back, that value trade, at least for the moment the russell 1000 value index is up fractionally this week. the growth indexes down fractionally now, value stocks are typically companies that trade at a lower price relative to their fundamentals right now they are largely financials, health care, consumer staples and teleconnames like verizon, procter & gamble, berkshire hathaway they're up growth stocks are companies that are growing earnings and usually

growing sales as well. techs are the classic growth names for the most part and the faang names, you noted this earlier, melissa, they have the names that are all down this week so coincidence here. so what's behind the sudden value spurt? technology and industrials, both typically growth sectors, have had huge outperformance since the december 24th bottom while value sectors like consumer staples have underperformed there appears to be some much-needed rotation going on. still, don't get too excited about this growth has outperformed value for the last year, the last five years, and even the last ten years. why has this happened? because growth after the recession became very hard to come by, so investors paid up stupid prices to get growth. value investors like warren buffett have been shaking their heads ever since melissa, maybe this time they'll finally be right back to you. >> thank you, bob pisani our next guest says 2019 will be the year of the value trade. let's bring in todd walsh, the

ceo of alpha investments welcome to the show. >> i appreciate it. >> in terms of your style, are you always a value guy or was this an active change? >> yeah, we're kind of go anywhere i agree with your technical read of the market, animal spirits could kick in and take us a lot higher we go guardrail to guardrail sentimentwise all the time so it wouldn't be unrealistic to expect that. we're optimistic but not wildly bullish. when we look at what's really happening out there, to get away from all the volatility recently, you've got earnings on the s&p still coming in on the low single digits. then you've got comps that are going to be pretty difficult going forward quarter by quarter. the 10-year has pretty much decoupled since the christmas eve massacre, kind of suggesting what the fed suggested yesterday that maybe global growth will be less than we expected. all that being said, we've got europe, we've got china, kind of

wild cards out there we want a margin of safety and we want dividends on our portfolios. >> before we get to your picks, when did you pivot when did you go from growth to more of a value tilt >> we were a little early. so when we saw the market rush up in 2017, everyone made a lot of money early in january 2018 the market went up about 10% in one month the fed was clear on their rate path hike. i've been doing this since 1987, believe it or not, and i've seen this movie before. the fed will keep raising until they break things. so we did it a little early in january of 2018. and then we kind of sat around and waited so now that the volatility or the fed or the test the fed has happened we think it's time to do some investing but we want a margin of safety. >> let's go into one of your picks. exxonmobil has been a hot trade this year. are you getting worried that exxon or energy might not be value much longer? >> we love the dividend there,

over 4%. the ceo is moving away from the domestic, high cost, long-life products into the frontier resource-rich products that he's looking at we think that's a good strategy and love the dividend. we want to wait, let management execute and enjoy that defensive den -- dividend >> we were just talking about bunker stocks and i see one of your names is texas instruments. >> yes. >> you were also talking about how earnings estimates have come down and continue to come down i look at texas instruments trading 21 times 2019 estimates that are actually supposed to be down 10% or so with sales down in the single digits what is attractive to you there? is it that expectations are so low and the stock will get cheap if it starts to -- >> you're hitting part of it expectations are low they have some headwinds with the china trade wars going on. we think that's going to get resolved in the next quarter or two. we're moving to europe now with the trade wars but we think texas instruments will benefit from that. we love the dividends.

we want the dividends to do the heavy lifting this year. we see a range bound market and we need that push from the dividends. >> todd, how important are the banks tom this call how important are the oil and gas names to this call where are you jpmorgan and bank of america >> i think banks of critical we love jpmorgan, one of the best global leaders out there and one of the best management teams but also a leader in return on equity we love that 3% dividend we think they'll keep executing. if this comes into a muddle along kind of market or muddle along kind of economy with none of these things blowing up, not the soft landing but more of a muddle along type of market, these types of stocks will do really well and we'll really benefit from these dividends. >> do they need yields up? >> it's not going to hurt. there's kind of a yin and yang there. feds will start make noise about raising again. they're not 100% market driven but that's going to come into play. >> todd, great to have you with

us thanks for coming by todd walsh, alpha cubed. >> maiden voyage for todd. didn't to have him on board. no doubt he'll be back in terms of exxonmobil, i happen to agree with him. it's trading 15 times when historically it's probably cheap for them you're not going to get eps growth but you might get margin expansion or multiple expansion. you start doing the math and this $78 stock could easily be a $90 stock. >> sectorwise what is the biggest value trap right now >> i think you have to be careful with energy. you just had exxonmobil go 65 to 78 in the matter of a couple of weeks. if you're looking for value, bank of america creeping back toward 30 is interesting to us you start to get jpmorgan above 108. i think those are more timely longs than the energy names. >> i think todd's names made a lot of sense to me i actually bought jpmorgan just last week and i bought exxon, i've had that for quite a while. i like that name the free cash flow is unbelievable there also you get the dividend yield

and they're pivoting from where they were internationally to where they are now the most incorporamportant thinn you look at texas instrument, i would rather be in intel i think this new ceo even though it's not the one i would have selected, i think he's going to be able to direct this company the right way. roku skyrocketing up more than 70% this year we'll tell you whatinvestors have tuned into the stock. plus pete is going to pitch one stock he thinks is about to break loose. find out in a special fast pitch. more "fast money" still ahead. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials

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welcome back to "fast money. the rally taking a brief pause this week but pete najarian says there's one hot retailer that's about to soar to new heights pete is over at the plasma with his fast pitch take it away. >> i'm going to pitch a stock that's a little different than what i normally do this stock trades at a much higher multiple. what i like about this company is just about everything i love a family run business that's been around for a long time although they recently ipo'ed a couple of years ago

canada goose has been very, ver impressive the growth story is something that's really important. i talk about growth all the time free cash flow, that's been growing. this is year three of that which is something we love to see. revenue growth of 50% year over year you've got to love seeing something like that. by the way, when you look at this direct-to-consumer business that these guys have got, it's absolutely spectacular it's nearly doubled year over year went from 131 million to 235 million. that's pretty doggone impressive but the margins. that was one of the concerns maybe that helped push this stock down recently on earnings and that's why the opportunity was there, why i bought. the margins went from 76.6 to 76.1 i think i can live with that this is a company that's growing. they have got a great distribution network and because of what they have been doing and they're doing it at such a high level, i like what's going on with canada goose. >> all right you know what? "fast money" miss tore here. >> come on, wait a minute.

what are we doing? >> we've got a curveball chris is going to walk over there. chris, what's your curveball. >> we've got to look at the picture and let the chart tell us about the validity of the call i think at the end of the day when we look at goose here over the last year or so, that $50 level here is key. this has been the line in the sand really for the better part of the last couple years here. so we hold 50. that's the line in the sand. remember, this has been a lower high, i lower high, a lower high, so the chart is working against us got to hold 50, get it back above 65 i would point that earnings miss that you talk about was 4x, so there's supply on top of this. we need to hold 50 and get it back above 64, 65 before this could really work. >> so obviously we want to get the rest of the desk in here dan is feverishly writing on his white board.

you just had to write yes or no. >> buy or sell it. >> i'm a buyer i don't have a board here. i'll just tell you what happened to this stock over the last few months seems like it's something that was out of this company's hands. they have this massive opportunity in china that seemed to be the thing that was discounted in the last few months here. so as we get into the bulk of 2019, i think you see this thing recover and get back toward the highs. >> this is a cryptic guy adami vote. >> yeah. what do i write there,mel? >> meg ryan. >> the "fast money" folks, they're smart. meg ryan was married to goose. she loved goose. >> married to goose where, when? >> "top gun. >> i didn't know she was in "top gun. >> i will tell you why the stock sold off on earnings pete probably knows this because inventories were up 74.5%. people said wait a second. too much inventory, the margins will get killed next quarter

maybe that's true. dan talks about the growth opportunity. maybe there's an inventory build because people are buying all those canada goose jackets, which is why the stock reversed an went higher i'm with pedro. >> this is a "fast money" first. are you at home, though, we want to know what you think are you siding with pete or chris for the canada goose pitch? vote on our twitter poll and we'll reveal the results later on in the show. plus nike sneaker fail taking down the stock today and the charts are pointing to more hurdles ahead. we've got more details ahead uh-oh!

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now, this is a video taking the sports world by storm. a packed basketball stadium watching as zion williamson falls to the floor spraining his knee in the process and putting him out of the game against north carolina this is what less than a minute into this game the culprit here, his nikes with the left sole just exploding on the duke blue devils superstar nike shoe troubles haven't ended there. owners of the nike shoes released at the nba all-star game are reporting that the app-controlled self-lacing shoe -- yes, it's self lacing, isn't connecting well to its

android app. the stock is up 14% this year but could nike be tripping over its own laces. >> well, look, i mean -- >> that's a deep sigh. >> it's really pathetic. this is its own show, self lacing if you folks have self lacing shoes action you're playing the game of life wrong that's me talking. i understand, number one number two, it's odd that how this nike move comes on the heels of potentially and kris verrone it the pinnacle of the chartists, you're talking about a major potential for a double top going back from september, october. that's not good. coupled with that valuation and the story gets a little dicey here i think nike can turn this negative into a positive if they do something quick as pete will point out correctly, adidas will swoop right in. >> guy, i've got to push back. >> push back. >> the stock just spent the last few years against 40 to 70

any pull back to this low i think is an ability to add exposure it is making new relative highs versus the s&p as well so this is a leader relative to its peers. it's a leader versus adidas, versus under armour. i think you want to use this opportunity to be a buyer right here. >> should we be worried about the quality of these products, of the supply chain? >> that's a great question i mean i have never seen that happen to a shoe before and maybe we'll never see it again, let's hope we don't because that was absolutely awful maybe it's because of the sheer massive size of this soozion if i'm at adidas, this puts me into the nba you know why i sign that guy to a contract as soon as humanly possible. >> he's a freshman right now. >> i know, but he's going to be in the nba not too many months from now as a matter of fact, there's a possibility he might not play in college again the rest of the season that's unlikely, but there are some people who would probably suggest to him, hey, look, just go into the draft and be the first pick of the draft. >> it could go the other way. >> high multiple stock, nike.

>> as nike shares slid today, dan, break it down. >> it was short dated options activity put volume and overall options volume was about two times average daily volume the most active put strike was the feb 22, this friday expiration, 84 puts about 2700 of them traded for about 70 cents. really short dated, playing for a continuation of this move. i've got a couple of charts here these guys talked about the technicals i want to show you the price of options. this is 30-day implied volatility look at that quick spike those are the sorts of spikes that you would see on a much bigger move than a down 1.5% move or something like that today. that shows you the short dated putt buying that we are seeing today. to the charts. here's the one-year -- when i look at that and think about this company reporting earnings in a few weeks, i think about the guidance they gave about china in december. i say this thing double top, i don't like the prospects of

better-than-expected guidance. five years, chris talked about the consolidation. i don't know, man, i see a move back towards 70 on any disappointment over the next month or two for me, i am not playing for the breakout. >> for more options action, check out the full show tomorrow 5:30 p.m. eastern time. coming up, it's a bird, it's a plane, no, just roku raur ucun higher adding 80% to its market cap this year. we'll tell you if any of the traders are buying into this roku rly ch more "fast money" still ahead. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price.

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welcome back to "fast money. check out shares of kraft. we mentioned the company missed on earnings and received a subpoena from the s.e.c. over its accounting practices the company is also now slashing its dividend by 36%. the company conference call is underway as we speak you see they're down about 16.5% right now, but the subpoena, cutting the dividend, it's hard to hold on to a stock when you do that. >> you shouldn't hold on to it and we said that 20 minutes ago when we talked about it and i'll reiterate it now

i think becky quick will have mr. buffett on tomorrow. i'm sure she'll ask him what do you think is going on with kraft heinz. that being said, people have tried to play this on valuation. to chris' point earlier, it's not a valuation story. there's no growth, there's no margins, there's no nothing. at a certain point you'll see activists come in. i don't think you're there yet, though. >> that's the thing with these rallies and bear markets when you see craft go 40 to 50 the last several weeks, it disappears real fast when the news breaks the wrong way. when you buy stocks in downtrends, you've got to be prepared for bearish price action 40s will be where this opens tomorrow we're sellers here >> we mentioned before that berkshire is a major shareholder. about two-thirds of the shares are held by berkshire and 3g >> when you start hearing about subpoenas and accounting practices and that kind of stuff, mel, that never ends up well so i don't think any of us are surprised to see the stock getting hammered the way it is right now and the fact they're having to slash dividends. the combination of all of this,

it's like all the bad news is coming at the same time. >> they didn't expect the s.e.c. investigation would result in a material impact. the quarter was bad. so what else are they seeing that causes them to slash the dividend, which is a very drastic action to take >> you know, at first blush there was something about cogs and this and that, the one-time this it seems like they were throwing everything around there. but i think the point about two-thirds of the shares owned by two shareholders are not going to be selling tomorrow i don't know if they buy more but you know most of that stock is locked up. now let's move on to roku. another after-hours mover to the upside leslie picker has the latest. >> hey, melissa. roku's stock gaining on top and bottom line beat today, largely thanks to cord cutting 3 million american households cut the cord roku added 8 million accounts in 2018 the conference call is ongoing but moments ago the ceo said the

popularity of streaming skyrocketed last year. >> we continue to see growing engagement on the platform with 2018 streaming hours up 9.2 billion year over year to 24 billion. as we mentioned in our shareholder letter, roku users streamed more in the last year and a half than in the entire prior nine years combined. not only are more people choosing roku as their streaming platform, but they are also streaming more than ever >> now, melissa, adding accounts is one thing monetizing them is another roku says this will be the year they reach $1 billion in revenue by scaling the number of households that use their platform ceo anthony wood noting on the call that he believes the company is in its early days of growth roku launched the roku channel in late 2017 to get more ad inventory under their domain the company also expects to benefit as more users shift to streaming on their mobile devices where the advertising spend has caught up, they say.

roku shares up about 4% in after-hours trading but still about 30% below their october high, melissa. >> thank you, leslie picker at headquarters what's the read-through, dan >> it's a tough one. this stock has 25% of its shares outstanding. if you look at the chart and how this stock sold off in q1 last year, 50%. then rallied 150% and then it sold off 65% and now here it is back up there. it's kind of untradeable if you want to play this as just a secular play on streaming, but i could make a whole host of fundamental reasons why the big platform companies can put them out of business at any point pretty soon. >> like apple? >> apple, amazon, you know, the list goes on. >> that may be true long term. when a quarter of the shares are held short as you mentioned you don't want to be caught on the wrong side what has stood out to us, the updates have been on very big volume, almost 4x. i think the stock is being

accumulated. i think it's on its way to 60. >> do you use the roku guy >> i love it every time i go shopping, i use roku. >> it's different from haiku, you realize. >> let me mention this and i'll push back on dan nathan. if tim seymour would here, he would mention rpu and you would say average revenue per user >> you spit on me. >> arpu is up 17.5% and that's a big deal ebitda increased by 17%. >> when you've got a company like that and see the growth potential trajectory going forward, do any of you guys have another leg? >> i just think tivo tivo was this really -- >> i loved my tivo when i had it. >> you were the only time that bought the lifetime membership. >> somebody find value there it's a $5 billion company. >> i'm not telling you the stock is not going to work for the next one or two years but i look

at a stock as volatile as this and think about the players they're stacked up against. >> do some of the players need to add anything. >> with a market cap like this, doing a billion dollars in sales, it's probably an easy takeover candidate >> that's what i'm saying. >> i get that. but they're trying to get you to use rokus to get rid of expensive boxes. so they still have a runway as people are cutting the cord. they're cutting the cord sometimes on the cable company's dime but ultimately they're going to be gone. >> what's the differentiation -- what is the difference between using apple tv -- >> there is none >>s athe source for all your various subscriptions. >> apple made a huge mistake by not giving away the apple tvs. they called it a hobby and wanted to get into the living room they should have been giving them away when you buy a mac or iphone or something like that and they'd be in 80 million households in america. >> there would be criticism for why they are giving it away. >> this is a cheaper product than apple tv.

among the recent ipos, this is one that never broke price that's a different story than what we saw in a lot of those names. this has been an ipo-driven market the last few years. there is a tone to this tape where you don't want to be short names like this. i think you stay long. >> all right, up next, final trades (vo) the only network to win in all four major awards is the one more people rely on. choose america's most reliable network, and get apple music, on us, when you do.

time to reveal the results of our twitter poll for pete's fast pitch and it was a dead heat unfortunately, though, pete, to know -- toni braxton, queue her up they're siding with chris. so that means that chris is having the time of his life because he wins. so there we go we got them both time for the final trades. >> a lot of things in that chart. by the way, there's great buy right opportunities in that goose. but kmi, keep an eye on this richard kinder keeps on buying. >> chris. >> oracle, 52 to 60 is the trade. >> dan. >> nike, i think you sell here,

the double top but you use put spreads to pay it. >> guy. >> watch this. medical device, love boston scientific breaking out, sister >> that does it for us after at marvelous haiku. see you back here tomorrow at 5:00 for more "fast. "mad money" with jim cramer starts now 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 make you some money. my job is not just to entertain but to educate and teach so called me at 1-800-743-cnbc or tweet me @jimcramer every night i come out here and tell you what happened during the day, why it happened, and what you can do with the