just enough time to say thanks for watching. that does it for "closing bell," "fast money" picks up the earnings coverage right now. "fast money" starts right now with an earnings extravaganza more than $2 trillion at stake in some of the largest companies in the mark reported earnings, facebook, microsoft, paypal getting ready to kick off their earnings conference calls and we are still awaiting earnings from tesla. they typically report at 4:15. it's 5:00. nothing yet. we've got full team coverage on all of these names including facebook which julia boorstin is monitoring in los angeles and gene munster is keeping tabs and we start off with facebook and that stock soaring after the media giant announcing daily and

monthly users in line with estimates and it has set aside $3 billion to cover an unexpected fine from the federal trade commission, one of the large nest history it looks like the privacy concerns over the platform isn't impacting the bottom line. safe to buy facebook guy? >> the eps revenue beat i get it, but you talk about daily active users and you're not seeing a lot of growth there and monthly average users and maybe that's okay. in terms of this number stuck out to me, head count up 36% year over year that's a pretty significant number i think the market is looking past that to $3 billion. maybe that's a one-off, tim can speak to that, but given this, i thought the last quarter was much better than this quarter and the price action was justified last quarter i'm not certain it's justified necessarily this quarter although it was, i think, better than most people thought it was going to be. >> i think we thought about the price action this year and it was down 60% and that's a sufficient bear market and they took a lot out of this and the

way it responded to earnings on january 31st and similar response here after hours and we'll see how it holds tomorrow, but if you look at the response from earnings today across the board we have to give the market the benefit of the doubt here and all of the risk names that are active here, and microsoft is up, lam research is up and that's a pro-growth message coming from this market. >> and social media, to carry over from twitter and snap and facebook is the monster in the group and it's really all about them, but it does tell you that there's monetization that it doesn't show signs of letting up and the average revenue per user continues to tick higher so i have to say that for a guy that's been very critical on the stock they certainly haven't lost their user base the stories for the stock that have been the drivers to me for the last 20% have been about instagram monetization and e-commerce and the potential there and these are things that give people some sense that the multiple which i think without them is expensive and relative

to itself, facebook at this point is trading relative, roughly 18 times forward and that's not cheap for facebook. >> i do think it's cheap and it's cheap when you look at the revenue growth side of things and earnings, this quarter is something that's a little bit of a blur, basically because it could be 3 billion or 5 billion, but the fact that they added 8% to the monthly active users and the daily active users, i think that's pretty amazing because think of the negatives thrown at facebook because of the demise and the mistakes they've made, but think of all of the negative news each quarter over the last couple of quartes and yet they continue to grow a lot of people said, look, i'm done with facebook forever maybe not because they're coming back they likely could be an instagram. i love the snap numbers. i love the twitter numbers and i love what we're seeing there and there's competition there and facebook still owns the market in social media. >> the bears might have said six months ago or a year ago,

privacy concerns and that could be real and that could really translate into the ad revenues going down, et cetera, should those bears go into hiding. >> to pete's point, people can make all of the excuses and nobody's leaving >> governments can shut it down in the face of terrorist attacks and governments can demand regulation on the industry and find the stock and we'll still be okay. >> we've seen that happen, right? the market doesn't seem to care and i don't think it will happen in the united states and quite frankly, the fact that you've want left his sight is astonishing. i'm not saying a-okay, and they made a bit of a business pivot on the one and one dynamics and they're trying to find out what's wrong with the internet and i think we heard this before

from mark zuckerberg there's more at rick here. >> i disagree -- >> no, about securities and privacy forever. >> but think about the money and why did that stock go down as much as it did and it wasn't just about privacy concerns. it was, look at how much money zuckerberg was willing to throw at this issue. it gave the opportunity. i still think there's opportunity and this is very much like apple where if we're all just going to focus facebook, we should be looking at instagram because holy smokes, when you compare that to snap is there any competition at all? no the reality is, if you have 2 million sets of eyes here and you've got 150 million or whatever it is for snap. we know where the ad dollars are going and we have the political world starting to stir up more and more and as that gets closer toward the end of the year and as that pushes out, this is going to be something that we'll see more and more dollars going to faksbook. >> speak to your point, these are no note, right

these are not new issue, the privacy stuff and the way the stuff dimest that, going up bad news and that's how you of the the stock to respond to negative, and 220 and 221 are the old highs and that's certainly in the cards as we move through the year. >> when are the elections, guy i asked you this the other night and i don't think you'll have a problem answering this correctly. >> it was a trick. >> november 2020, melissa lee. >> ding, ding, ding. that iscorrect is there a risk being in facebook into those elections given that was the start of the entire -- that was in 2016 and they've got us down to 135 and the risk is something that none of us see coming and i wish i was smart enough to understand the head count's up 36%. that's a staggering number, right? to me, at least it's a staggering number and more costs associated with it, but the market continues to look past any potential pitfall.

to your point, to chris' point, good price action on bad news, that's the definition of a bull market. >> and on big volume the breakout on january was on big volume i will suspect we'll have big volume and the pause was on no volume i don't want to bet against that. >> it tells you the stocks being covered. >> there were a lot of short positions in the stock and there was no question people are waiting to see and i would be scrambling this thing if i was short and the momentum in the social media space and there are a dearth of ways to invest with it, call it new media. this is how advertising, and does it tell us where we are in this market cycle and the setup last year was terrible for facebook and maybe that's why that name is catching a bid right now. >> sure could be, and let's look at them fundamentally trading at 20 times forward earnings. they have 10 billion in free cash flow coming in. the numbers are there that tells

me the stock has still upside on it because of the numbers. they have virtually nothing in terms of debt and the head count, a lot of that is the money that's being spent for everything that zuckerberg said they were going to be spending their money on and that's the contributor for why we're seeing the head count go up because of the dollars and we're talking about billions and billions of dollars and people are willing to say you know what it's hard to say facebook is going higher it's gone 60 to 180 over the last few years and 20 times doesn't seem speculative given the backdrop that we're in right here >> for more on facebook earnings let's brick let's bring in fast money friend gene munster he wasn't sure if the after-hours stock was merit period upon what's your take on what's going on in the stock in the quarter? >> as someone who has not been a believer in facek boo, i think the rise is merited and the simple reason is that these dau

numbers and the 8% growth which by the way, all of that came from outside of the u.s. is impressive despite the news. you probably have covered that well i've been listening to the call and the first thing zucker called called this is a platform of privacy and this will take a few years and he mention the the clfrgzs being prief and the and they're not permanent. there is hypocrisy amongst users and he's getting where this platform or privacy that everyone talks about thises did trust they have on face book, but at the end of the day on on if they can have good will around privacy they will not tie in the usage across the board.

most impressive. >> do you think the privacy concerns need to be put to bed at this point? >> yes, it does. unfortunately, that piece was the biggest outstanding negative here is the massive research that they have $3 to $5,000,000,015% will be a reserve this year for contingency around litigating these future regulations it's hard to determine what, in fact, of the timing of those they will come undoubtedly, but i think what we're seeing here is consumers are voting with their usage and they ultimately, i'm very puzzled by this and they want to continue to engage in a platform at a very high rate and so i think that any sort of legislation even though would be headline risk isn't going to change the fact that this is a platform scale that's hard to compete with. >> normally at this team we would also be table to ask you tesla earnings

typically in the 4:00 hour and it is 5:10:40 and weave not gotten the investor letter yet what do you make on this delay >> i think there is bad news coming i think they will ultimately guide down on the near-term demand and still a believer in the story long term. i don't think that that's the reason why this is a delay i think the simple reason is elon musk is sending a message that that he is always late and he does it with products and he does it with events and now he does it with earnings calls. >> the stock is down a percent in the after-however it is session. the left time they reported in the 5:00 hour, joe, in that quarter they reported a big big

in that investor letter is typical space, small fosht a lot to go through. >> you do control-f to see what they talk about the expense piece. i also believe that the company will raise money and i think it's the right thing to derisk the story, but i'm also going to be looking through the letter to see if they have language for that and this is the right time to do it for a lot of reasons and it will undoubt lead give some of the skeptics fuel for their story that the company needs to raise money >> 5:12 and counting still no shareholder letter. gene, we'll check back with you later on more, let's get instant reaction and over at the resident chart actor, chris verone to the plass room >> what we have to remember is a lot of these stocks included in

after hourin after wil8%, and the next larget draw down was last year and the stock was down 20 and 45 last year that bear market in this stock is over, getting back above that 190 level we think was key it's done it you have to imagine this at least will give a run at those new highs near 220 and when you look at the big name that reported out there, another positive response from microsoft here up about 3% and it's another name when you look at the story and it's been the better part of the last five or six years and first broke out in 2013 it hasn't looked back and its had two cyclical drawdowns and you had one in 2015, and 2016

any it was down 20% over that period and it recovered this loss in 43 days and it made new highs. this decline also down 20% and it's now recovered this loss and about 55 trading days. so this deep response to the deep, oversold conditions and iti think ultimately, you can look at microsoft as they move through the course of the year and we have to like the response to both their companies with their earnings this year. >> chris, thank you. by the way, we do have tesla's results. they are out phil is combing through this letter, the shareholder letter and we'll bring you the details as we have it. meantime, pete, let's talk microsoft. i know you're in this name >> i think it was plenty of upside i think it was last week or two

weeks ago, i'm talking by the end of the year and look at the growth in revenue, and look at the growth you've got in gaming. this is a company that just continues to pump out exactly what the market needs especially given the run that it's had. microsoft has been in this almost straight-up move it feels like and it's been one of the most impressive. how much cash they've got, minimal debt and they've made acquisition acquisitions and this is slowly eating away at the market share from aws. >> there say decent read for enterprise and if people want to look for clues on the economy, the fact that they're continuing to see the operating leverage and pete talked about azure. exciting >> we want to go to phil lebeau. tesla's stock down 2% and just got the numbers. phil, give us thehighlights. >> it's a bad number if you're looking at the top and bottom line for tesla in the fourth quarter, a loss of $2.90 and

that compares with the estimate and a loss of 59 cents per share and in terms of revenue in light of what they were expected to come in with, they had revenue of 4.54 billion dollars and revenue was expected to be $1.59 billion. in the top and the bottom line they are way shy of what was expected cash and cash e giquivalents and they have enough for the near-term whether or not that means a capital raise in the future and certainly that will be coming up in the conference call in 15 minutes and they're also reaffirming their guidance for 360 and 400,000 model three or total deliveries, i should say for all of 2019 and finally the shanghai plant that they are currently building, that is scheduled to be up and running some time early in the fourth quarter according to tesla

a big miss on the top and bottom line and the conference call starting at 5:30. >> 14 minutes' time. the last two paragraphs of the shareholder letter 2019 capex, a vast majority will be to develop new vehicles $2 to 2 amount, and operating cash capex should be positive and every quarter including the second quarter and are on on it is -- as i understand it, it is. >> okay. >> go ahead. all right, phil. we'll go to gene phil, we'll check back with you. >> gene munster, we have a massive delay and a massive miss on both the top and bottom lines. now what >> think you and phil were getting the substance of this where cash is at and i'm not quite clear what the guidance is for the june quarter and what

that implies for deliver res stock there's going okay a in the of tock adthey kind of flushed expectations particularly how china and europe are wearing off of the tax credit independent is goed to know, melissa, but still we don't have the key facts yet in terms of how to think about the state of the business right now. >> when the conference call kicks off in 12 minutes' time do you expect them to give eps and revenue guidance as well for the second quarter >> i think they'll give a little bit more in terms of what the potential loss could be. you outlined some of that, but i think they will flush that out, but those details and to think

about that, all of that will help us triangulate what the view of the june quarter will look like. and so that's the reason why we just don't have all of the information right now. >> they say at the end of the let, gene, we expect to return to profitability in the third quarter and significantly reduce our loss in the fourth quarter what is your take on that? >> i would say that was generally expected as for more of a loss in the june quarter. i would point out so in some ways they were guiding down for the june quarter, but generally that was expected by investors i think there was something else that was important when phil talked about the 360,000 vehicles and for them to hit that number for total deliveries in 2019 i think will be difficult and specifically, it implies about 100,000 vehicles per quarter and they just did 63,000 in the march quarter and because it's difficult and i

define the market it doesn't mean the company won't make it and i think they'll be wildly successful and there are still risks to some of the street estimates on deliveries. they will be likely below that 340 to 400,000 range f >> gene, we'll let you get back to work and very volatile trade in shares of tesla and we watched it downs a loss of 2% to a gain of 1% >> b.k. alluded this and we talked about this for a long time and they've been short this sucker for a while and 249 was the low back in october and we attempted to trade down there in the last 20 minutes or so, and i'm not suggesting anything that's happening now and it's viable with that said, if tomorrow this thing doesn't get hammered again, for the first time in a wall -- you should pre-announce a month ago before this is a

disaster with that stock doesn't sell off on this that's an interesting price noop is t price. i don't know many stocks that hold it, and i think what we want to watch here is watch the respond from the bonds i think they trade 86, 87 cents on the dollar and they're at new lows if there is a problem, the bondholders will cover that. >> did you cover going into the quarter short? >> no. the most important numbers i just heard were the 2.2% in the balance smeet because wherever they could have found that cash they did, and they reported. i'm sure it's all fine, but that's the most important number about a company cutting capex and you get 10% fewer deliveries and a dynamic where there's concern about suppliers and you've had this public spat with panasonic who they have commitments to essentially to

fund battery production. so cash in hand, very important. guy talked about 360 to 400. he's skeptical i don't each know how you can get there especially with fewer delivery numbers and no one's been bothered to care if delivery numbers and there's been a lot of news this week there's been an avalanche of news and i think we wait >> the chairwoman brought up this interesting point, what if fess la recently go -- like apple in terms of the communities and they said continue reporting total revenues, but why focus therz? . >> it's interesting they wanted transparency and now they're moving away on it. i'm not sure that the market will like hearing that and i don't think they want to see that they want to see what's going on with tesla, and to tim's point what you are alluding to is the numbers are coming out of wherever, and the idea of listening to numbers that are so far off, mel, from whatthey ca

deliver oftentimes >> when you see a loss that's wider by two bucks a share in the quarter, do you think i can't invest >> it mikes it tougher, and we all try to decipher as much as we can and a will have till trade on tesla the conference call will start off in seven minutes' time meantime, we are all over the market movers and we'll bring you the biggest headlines. check on the shares of chop on the le after rallying this year again and the traders will fl, and a number of names in the group are still way off their highs. which one should you buy for a catch-up the traders will weigh in. we're live in times square in new york city. much more "fast money" right after this

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a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. sgr welcome back to "fast money," kate rodgers is in the newsroom with more >> chipotle beating analyst estimates on the top and bottom lines and same-store sales improved above the 7.3% the street had projected from q1 the 9.9% comp on top of 5.8% and transaction growth is the clear highlight of the quarter he added that with ebb mo mobilr and the loyalty program likely continuing to gain steam we being see high single digit

comps in 2019 and as far as 2020 digital also grew 100.7% in q-1 year over year and now accounting for 15.7% of sales. take a listen. >> digital sales totaled $206 million during the quarter and represented 15.7% of sales we also re-launched a new chipotle.com, with conversion. we are pleased to be averaging more than 1 million digital transactions per week. >> niccol talked about the loyalty program that enrolled members in march and they're continuing to lean into mobile order and pickup as well as delivery with pick up shelves in all relevant restaurants and now 1300 stores with digital second make lines in place and delivery is also the fastest growing part of the business. the company said on that call the stock is up 60% year to date and it is the best performer in the restaurant space and we also have ceo brian niccol that will

join us exclusively tomorrow on "squawk on the street" after the opening bell to talk all about this >> thank you this is an example of a stock that's run way up and kate mentioned the monster performance into the earnings report and it's flat >> and you'd expect it to be running way up and they can do nothing that would absolutely give the market what they wanted except for the fact that instead of $3 they gave $3.40 a share and when you look at that and the digital growth and she's talking about deliveries and every single aspect of the business is doing well and the thing you can't get your arms around though, is the valuation. it's presently valued at 100 times earnings and i think it's really difficult for anybody sitting on the desk to say, you know what? this is a buy and brian niccol has done an amazing job to traps forming to into everything he did at taco bell been it was a $309 stock in december and it's trading north of 700 now and it

trades 45 times forward whatever numbers you want to put. >> i've got 60 let's call it 60 it's a ridiculous valuation. i'll say this as well. operating margins were disappointing and remember the huge run in domino's and steve grasso said correctly when it is a technology company and i think that's what people are saying and as crazy as that might sound, october 2015, the stock topped out at 750-ish. that's a level you might want to look at now. >> let's check out in terms of the other after-hours movers facebook, that stock is up 10% and see if mark zuckerberg, and microsoft sitting at an all-time high and then tesla, and it is up by 1.3% despite a big loss. we will bring you the very latest on these reports and the tesla conference call kicks off in 30 seconds: i'm melissa lee. you' wchreating cnbc first in

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welcome back to "fast money. ziel efrpgs, t xilinx, the stock has run up 45% this year. guy, what happened >> i'll tell you what happened, they beat eps by a penny and beat revenues and margins were basically in line, but valuation got away from a stock that's gone from 88 to 138 and effectively a straight line over the last couple of months and the quarter was fine and guidance okay, not good enough, let's take profits i'm not comparing the companies, but i'm comparing the price action and we've had the stock with the huge run and the quarters to fine and they sell off the stock to a new all-time high and if you look at the qua quarter and they did everything you need to do

>> you would buy the 11% decline. i want to see how it shakes out tomorrow, yes, i would be, to be honest with you. the smh semiconductor, despite the big run-up this year, a number of chip stocks are still a long way from the top. nvidia off 30% and applied materials down 22% and advanced micro off by more than 17% and for more on these chips and how to play catch up with the group. chris verrone. >> he's going up again twice? >> animal style. >> triple. >> i think we want to stay long here and what's compelling is sometimes we forget what the longer term price action looks like this is the semis over the last 25 years we're only just now beginning to take out those highs from 1999. this was on a 20-year basis, a net return of zero just breaking out to new highs

this high, 1475 and the low here is 1057 and that's about a 400-point difference and we can then extrapolate and we think ultimately 400 more points before we get your next target and that's how we measure price targets and when you look at the semis just in terms of message, i think one the really important stories is you're starting to see the semis now outperform software and that is a big change from last year in the low growth scare environment, semis underperformed all year and that's started to change here. i think this is a reflection of cyclicality. i think it's a reflection of global growth. what names can we play catch-up with because the index is up something like 35% year to date. are there any that have trailed? this one stands out to us and about a $17 billion company and it's up 19% year to date and it's done half of what the semis have done and it's quietly put in this nice little base and got above 60 today

we suspect this one gives a run back at those old highs near 70, and we have room here, 60 to 70 and it's a way to play catch-up and when you put the group in context and this is 20 years of nothing and outperforming software is a pro-cyclical and pro-growth message and that's what we like to see. >> would you say long here one of the names i'm still in is xilinx and i know it's down. i've been taking pieces off here and there a little bit and i still had some going into earnings and i made a mistake and i held onto it and intel, which i own, and amd which i own and xilinx, which i own and i like those names 44% in 84 days and this is ridiculous and relative to the s&p and it's up 20% since january. to be clear, you've actually taken the highs relative to the market in march of last year and november of 2017 if you think the fed is going to

change course at all i would get out of the fed on this >> it's a cyclical leverage to the economy. it's always super cyclical and it's particularly leveraged to the fed and we're at a point where we expect something from the fed and the financial conditions are loosest they've been in a long time and it's something to think about >> let's get a check of the big earnings movers and facebook cracking 200 at one point and 199.73 right now the call is under way. microsoft meantime hitting a new after-hours high and then there's tesla and it is higher right now by a percent and elon musk is on the company's webcast and we'll hear from mark zuckerberg and elon musk right after the break.

welcome back to "fast money. we have an earnings alert on facebook and mark zuckerberg speaking on the call as the stock is in its after-hours high let's get to julia boorstin in los angeles. >> facebook shares are higher as mark zuckerberg reassured investors that his shift to create a privacy-focused business for the vision of networking, what he'll be working on for the next five years won't hurt long-term expectations for the business and it won't cannibalize facebook's core ads. >> the reality is any impact is going to be longer term, and we don't know exactly how this will play out yet, but on some of the questions like whether encrypting content will hurt our business i'm more confident that

won't be a significant issue we don't use the content of messages between people to target ads today and encrypting that content won't change what we do and it will strengthen people's privacy without meaningfully affecting our business. >> zuckerberg didn't specifically comment on facebook's $3 million charge due to the inquiry by the ftc, and he left that to his cfo and he was outlining areas where he wants countries to regulate and take the decision making away from facebook. >> part of building trust will be deferring to a public process on how to make these tradeoffs i understand that any regulation may hurt or business, but i think it's necessary getting these issues right is more important than our interests and i believe that regulation will help establish trust. >> cfo david wayner did have the expense outlook higher due in part to the operating expenses

will grow to 5 5% from the prior 40 to 50%. revenue will continue to decelerate with headwinds to ad targeting and due to a number of things including regulation and enabling people to opt out of ads and all of the new services that facebook is offering the users to enable them to opt out and not to mention this private messaging that they're working on melissa? >> julia, thank you. >> let's get to gene munser. i want you to use your rosseta stone, and the sound bite julia just played and he says on the one hand he doesn't think there will be impact near-term, but the long term there's no way to tell what the impact is. i don't really understand what i'm supposed to believe here. >> what he says is a subtle shift to the business, melissa, and he doesn't think if it was a big impact in terms of how people were using the facebook products like instagram or stories, that will cost something that would be jarring.

so i think what he's essentially foreshadowing here is that this is going to be this privacy platform will be subtle new features that will be added that will not fundamentally change how people use the platform. >> he alluded to advertisers and not cannibalizing its core ads and i mean, we've seen a whole lot being thrown in the advertisers and they still haven't left the platform. what could be the concern, though, as facebook pivots to this privacy-oriented platform >> ultimately, he talks about privacy and specifically on how data is used and that's one of the reasons what makes this platform so powerful is the specific data allows this incredible targeting and the second piece is the raw number of users and the reach that it has and going back to the first point, the way that this platform could have an impact on monetization if they start to take away some of the data, some of the tools that er targeting d that could impact monetization

>> what's a grade for the quarter, gene? >> i'm going with a b-plus here and a great job of growing users despite the negative press out and there's still regulatory overhang here, and the last positive piece is they do have some optionality around messaging and e-commerce with instagram and virtual reality. >> all right, gene we'll check back in with you let's trade this, gene gave it a b-plus pete, what would you give facebook >> given the quarter, i think overall, i would say in that ballpark, b-plus makes sense to me and they cut some of the capex forecast that they had, but there are still headwinds that they talk about for the second half of the year, so i don't know i get nervous after the run that facebook's had and what i'm seeing here i'm starting to think i need to take a little bit off. i own the stock, and i don't know -- i don't like what i'm hearing about the second half of the year >> i want to take gene's classes because i think he's mr. b-plus. >> you mean like a grade inflation kind of thing. >> are you a b-plusser

>> look, i'll take it. i'll take it now and the bottom line is on facebook, what i think is different about this call is these guys are taking a tone with regulators that basically bring it on in a very respectful way in other words, they're saying it's not up to us and we're willing to take our medicine and we'd like to listen from you and also the, pences a expenses and higher than expected and other quarters are a big deal for the stock. >> it is up 9% and i would love to see what an a is. i think it was a fantastic quarter. the stock reflects it, and i want to press it long. the executives welcome regulation and they know it prevents competition and that's the message from this quarter here >> you've made that point a number of times and regulation is good for the big guys and gals and i would take a b-plus any day of the week and although that was something that would make you weep, number one, and number two, to pete's point, this is coming off facebook and

continue to expect, revenue growth rates will continue to regulate through 2019 and that should be somewhat concerning to your point again given the run the stock has had, and i don't know if it's a b-plus a and last quarter, everything they said was far better than this quarter and i would expect the shares are up a bit >> they're up 2% after the earnings report. elon musk is speaking on that call right now and we'll bring you the comments in just a few minutes and it's not just tesla. check out microsoft and the new high in the after-hours session and visa, the only name lower right now. much more fast on this very busy night.

>> welcome back to "fast money." boeing up slightly after reporting earnings before the bell and they came in light on revenue saying it took a $1 billion hit due to the grounding of the 737 max, but options traders think the stock is about to take off and mike ko is in san francisco with the action. mike. >> hi there, we did see above-average options following the earnings release and bullish bets outpaced bearish ones and one of the trades that i was looking at was a purchase of the may 10th 382 1/2 calls and someone paid for those and boeing will exceed the 382 1/2 strike price and that would take it above $388.50 by may 10th i think is interesting because on the earnings call they did indicate that they had to

withdraw prior guidance and they did release new guidance and some new indication would come out shortly and the stock would likely recover the prices that it hasn't seen since they announced those 737 max production cuts on april 5th >> pete, what do you make of the action >> i'm amazed at the resilience of boeing is absolutely unbelievable and when you look at free cash flow, it's actually down 10% and it's still amazing. it's an amazing number at some point in time, you have to figure this will be on the backburner and because of that, i think mike's right, a lot of people are starting to bet on the idea that this is a stock that no longer is going down and it seems to be going up. for more options action, full show, 5:30 p.m. eastern time and tesla holding on to gains despite reporting a bigger than expected loss. the always-colorful ceo, elon muve musk is speaking on the webcast and gene munser is on the call and we'll bring you the latest

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welcome back volatile trade in tesla. it is up right now in the after-hours session and elon musk speaking on the company's webcast. let's get to phil lebeau for the details. phil >> melissa, the q and a part of the conference calls where the analysts are getting a chance to ask questions is just now beginning. during the prepared remarks elon musk kept his comments fairly brief although he did allude to

the fact that he had very lumpy production and lumpy deliveries in terms of surges as well as gaps in those deliveries here's what he had to say about the rush of deliveries at the end of the quarter >> all deliveries occurred in the final ten days of q1 as a result, a larger vehicle deliveries shifted into q2 and it was negatively impacted as we could not get the vehicles to customers in time. in response to this we are in the process of balancing our vehicle growth throughout the quarter. >> by the way, keep in mind that they expect to have the shanghai plant, melissa, they expect that to be up and running by early in the fourth quarter we will hop back on the call and we'll bring you more as elon continues to talk with analysts. >> phil, thanks. phil lebeau. let's get back to gene munster what's the grade on tesla? >> melissa, i'm going with the

b-minus. the reason on the negative side they're having logistics problems in china and europe and on the positive side the cash balance was half a billion dollars more than what i was expecting and they also announced other products and other initiatives and other upside to the story and musk announced on the call they'll come out with an auto insurance product and this will compete with the likes of geico and state farm and the reason is that geico and state farm are basically fleecing the tesla owners and they're less likely to get in an accident. if you put this all together, the quarter was largely as expected the company will continue to have a rough 2019, and i still feel confident that they will reach an escape vels onity and change transportation. >> why do you want a company like tesla go into auto insurance? they're going into autonomy and the difference lines of

businesses don't you want them to just focus cars >> in the near-term, absolute pea. the near-term is focused on cars and some of the difficulties that they're having logistics, they're very open to talk about the long-term opportunity to get investors to open on the different, long-term picture and it does make sense for tesla to play an insurance game because they're the besten sane terms of the reliability of these cars and i had a chance to do a tech drive where the full driving features and i can attest that i am not a good driver, melissa, and i welcome to improve my insurance. >> this won't be the last of gene by far. pete, what's your reaction so far? >> first of all, he's not a great driver and that's why he rides a bike around minneapolis and we see each other all of the time. >> they missed on earnings and missed on deliveries and they have a lot of issues that i think are negative

i think he's pretty generous >> what would your grade be? >> i would be closer to a c-minus, but the cash balance was something that i thought was interesting and i'm not sure how that came out the way it did and the fact that they have the cash balance that they do, that's impressive to me >> i'll tell you what, i'm incredulous and they'll produce 90 to 100,000 deliveries after doing 61 and again, this comment about the last week of the quarter and this and that it's to me getting to a place where that's an absurd thing to say. they're cutting capex, and how are you growing? if anything, this is a company that's slowing down everything there's nothing good here. >> quick, do we hold the quintuple bottom >> i don't think we do it's the fifth time we're down here and there's nothing that prevents the name here, but 270 is good resistance and your seller above 270

>> that's a d in my d for dog. >> that's a d in my d for dog. >> final trades up next. cfa institute.

let's stop talking and actually be more diverse. as investment management professionals, let's measure up. cfa institute. final trade time pete >> energy's been on fire i think oxy and that they were huge buyers. >> tim >> biogen to me, long-term pick. >> chris verrone. >> the antitesla trade i like it long term. >> draft tomorrow!

power lunch at 2:00. >> on the ocho >> and the balcony. >> and the sell-off. too much all right. that does it for us. meantime, don't go anywhere "mad "mad money" with jim cramer starts right 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 isn't just to educate but to entertain and teach s call me at 1-800-743-cnbc. or tweet me @jimcramer if you wait for a green light to start buying stocks you'll end