up slightly because the nasdaq 100 and the etf will go with apple. >> fang moves all together, it's usually hot or not >> has been over time, yes >> is this the time when they move in opposite directions to some degree and i don't think you necessarily are going to be able to extrapolate from what apple does tomorrow and a net positive. >> that does it for the show today. thanks for watching. >> have a good evening, "fast money money" with carl quintanilla starts right now. >> fast money starts now from times square our traders on the desk, tim seymour, karen finerman and guy adami and we will start with the big after-hours story, it's apple surging on the top and bottom line and the conference call kicking off, and up 5.5%. full team coverage, josh lipton in duper tino and let's kick it off with josh who spoke to tim

cook. >> i did have a chance to catch up with tim cook the greater china call, that was up 22% and i asked cook, what are the trends he's seeing there. is he seeing signs of improvement? and cooke telling cnbc he is march was better for the average and we adjusted it to take back the weakness in the currency and next we rolled out the trade-in program that had gotten success in the united states, and i believe that the trade relationship, i don't mean the tariff, i mean the tone is much better today than it was in a november/december timeframe. that affects consumer confidence in a positive way. it calls about the replacement cycle and we know that's lengthening and people are keeping their iphones longer and it's something apple itself has talked about on the conference calls. they do have leverage they can pull and they talk about pricing

plans and they talk about the trade-in programs and i asked cook how well those are working and cook telling us a combination of the trade-in program and the installment plans have led a retail and online performances to be marketedly better than they were and i feel that is gaining traction and clearly the price in china and the part we did and the government in april that they led with the stimulus program and the value-add tax reduction. >> finally, carl, i did ask him about qualcomm, obviously, a very nasty, legal fight there covered on cnbc and those two companies made that deal right during opening arguments in that courthouse in san diego. i asked cook, listen, what changed? what brought you to the table there? cook telling us we came to an arrangement on three things. one was the multi-year supply arrangement and a direct license which was very important to both parties and the third thing was get rid of the bloody litigation and those three things lined up and we found the intersection of

all those things that would be good for both companies and it was good to have that behind us. the conference call is on right you in and i'll bring you headlines as they come in. >> we'll check in with you later. apple is up 45% from the january 3rd low. are apple's woes behind it and do you keep buying the stock guy adami? >> this is your maiden voyage. >> it's not about me >> welcome back! >> clap him in >> carl can't believe he's here. he just can't believe it for a lot of reasons >> i'm not going to pretend i'm disingenuous most of the people on the desk have, i haven't. one thing we said is as revenues continue to grow in services and now they're 19.7%, the valuation of apple has to get better and then, i think what's happening now and the question you have to ask yourself is as that number of services goes from 20% to 25, what is the right multiple for

apple and i would submit it's close to a market multiple and maybe 18 times that gets you a $235 stock thereabouts if you want to give him a bit of a discount, 16, 16.5 and fairly priced here and that's the calculous that you have to do going out of these numbers >> what's interesting is the street now seems to be giving you a hybrid valuation and they're giving you essentially a software valuation or at least proportionate to the revenue and services blended with the hardware, and it does get you around the s&p, which i think if you count apple x cash there's still a lot of value here. when you add in the fact that this company will do 50 billion of capital markets activity probably in the form of buybacks and maybe they increased the dividend, but they pay you well. despite a stock that was so overbought and so outperformed the rest of the market >> although going into the print, it didn't run in hot. >> last night's google disappointment clearly, i'm

surprised it wasn't hit worse and they did increase the dividend and the buyback is big. that's a really aggressive buyback. google, you could learn a lot from the buyback activity. i agree. with you it's about fairlyish priced which you wouldn't think something this big would be -- it's fairly priced i own it, it's not a giant position i probably wouldn't add here, but i think there's a big sigh of relief that china didn't get worse and in fact it seemed to have gotten better and they talked about repricing a little bit in march and maybe that's why some of the hardware gross margin was, i think, a little bit softer, i don't know we'll see what they say on the call i don't know a big sigh of relief. >> to cook's comments about tariffs, right and china tone being better, does that mean we can stick with the cyclical hardware unit story a little bit longer? >> maybe i mean, i think, listen, a lot

of this is priced in and we're off 45% off the lows and we priced a lot of this in. i think the risk to apple here is this is as good as it gets and a lot of stock in the report were fantastic we have year over year revenue declines apple hasn't really seen that. we have some concerns about the iphone sales, yeah, they were better than street expected, but they were still down are they going to be able to take the share back? we saw google spending a lot of money on the pixel and so at the fairly valued price that it is and someone agrees on here. >> i don't >> maybe this isn't as good as it gets, but i think this is about as good as it gets >> i think in terms of valuation and in terms of what the market has expected here and in term of what the consensus is. consensus is double-digit declines on iphone units there's no secret to that and it's in the price. to me, if this company has any upside both from services which is, let's face t the delta in today's move from a flat number to where it is is all about services because the market

could have been at 17% of the services >> in this market, and where we are at whatever stage of this rally you want to call this, apple to me seems to be one of the safest plays relative to what i think is a market that's probably a little frothy. >> we love to talk about cash levels and cash quarter on quarter down 8 to 225. interesting. >> which is still a staggering number. >> it is interesting, but to karen's point at least they're putting the money to work. you can argue maybe they're making acquisitions and the $75 million buyback is want insignificant at all brian makes an excellent point if service revenues were declining and 14% from the numbers you cited we would have a much different story now and the product mix is changing. >> and is it that's the question. the services depend on iphone growth that's how they get their services people aren't all of a sudden just signing up with apple services without a phone if they have a decline on the

core product do you still get that growth? >> i think people do sign up with services with a phone they already own. they didn't buy a new one. that would be the best case scenario they buy a new one and loading up of all kinds of services. >> don't you think that cook's story, a billion phones around the world, that doesn't ring to you? >> i think it's in the price i'm not arguing that the story doesn't work i'm just saying at these levels, 45% off the low these are all things that we know, so the risk here is to the down side that's all i'm saying. i don't think you have to short it i don't think apple is going out of business. all i'm saying if you caught the 45% run, take some off the table and buy yourself a new iphone. >> are you an investor or are you a trader, right? i think people line up on both sides of this, and this is a great time if i may interpret some of your criticism. >> please do >> this is a time to be a trader ultimately, look, i want to own

apple long term and i want to own it because if you guys are -- carl, you bring up the very important installed base. outside of facebook, who has a more ludicrously -- let me work on my hyperbole, but just say this is a tremendous asset to apple and they continue to lever. we all agree they haven't levered this enough and when i think of the services they get whether it's aws or sales force and i think of the management team in apple why wouldn't i be giving the guys a premium to be an investor long term and maybe be cautious on the short term. i think you can be tactical and i don't think you want to run far away >> karen and i were talking about it before the show what's the right valuation of the services business? we went back and forth maybe 25 times and i don't know if that's right. you can make an argument that it should be more than that, i don't know i think 25 is reasonable and you can do the market in your head >> hold on did you say i can't do math in

my head? >> i said you can do the math in your head. it's the synonyms creating problems >> let me get out of here. >> it's been a good trading stock. if you think about it? this was a $225 stock at the end of last year and here we are again, for traders that's a panacea. so you can make the argument, but quite frankly, this has become a good trading stock. >> for more on apple let's bring in fast money friend gene munster. your big takeaway from the quarter so far >> carl, i think there are three that aren't as obvious and this is an earnings powerhouse. i want to put that into perspective. we gloss over the eps number and they'll earn more money over the last five years and this is what we have to overall fang combined or, call amount and this is underappreciated by investors in the important part and gap earnings powerhouse. to put a finer point on china,

it did improve specifically the iphone was a paint last quarter and it was down 40% and 4-0 in the december quarter and it was likely down 28% in the march quarter, so that was the magnitude of the improvement. and the last is the significance of the buyback i've been on the call here and i not have heard the full conversation that you've been having and this is a huge deal and just to put into perspective is that if they make good on their promise and we'll be liss toej t listening to the call on the net cash neutral that theoretically should raise the stock price by 25% and we'll go through the details and the math on that, but those are my three biggest takeaways and this is probable the best play on 5g and we'll get tired of hearing about apple and 5g, but stay tuned for more on that. >> let me just ask you about

something that aggressive a buyback and i know they generated a ton of cash and do you think they should hold back some of that in case they have to do a meaningful acquisition and become indebted if they have to >> they will still have net cash neutral, they'll still have about $en that 0 -- excuse me, 115 in cash. karen, they'll have $100 billion, if you will, to make a massive acquisition even at cash neutral. >> hey, it's tim remind us where you are on apple tv and what you think the time line is for this being meaningful or truly accretive to the story we're talking about here >> it's still early. probably the best play will be on the services side and what we'll hear about in the fall in terms of the $7 a month video subscription piece and it plays into the services segment. i was wrong for years of them

coming out, and you buy a samsung tv and lg has one, too i just want to wrap this up before i jump back on the call, carl i think investors are largely underappreciated with what the stock can do and this story could be a $350 stock over the next couple of years and i think they'll surprise people on this earnings power >> we were checking about it later in the hour. >> put a point on all of this, careen what do you think? >> i'm long and they have a little bit of momentum after what was a disastrous start to the year, so i'm staying long, but i'm not pounding the table here i wouldn't be adding a lot. >> and have we answered the question of trade it don't own it >> i am a trader and that's why i know what i do three weeks to three months is my time horizon. i will wait on apple i will play the 5g rollout, but it won't be tomorrow morning. >> price action tomorrow should

be interesting it opens at 214 on big volume fades the rest of the day that might be a tell and brian could absolutely be right. no disrespect to tim or jim cramer it's providing great opportunities and not to say i've got 10 right, but as a trader you can absolutely trade this and tomorrow in terms of volume and price action that will be the tale for the next week. >> this is 10% of the qqqs and 10% of the xlk and 3.5% of the s&p. so it's a big deal for markets tomorrow to state the obvious. >> indeed. we'll keep you covered on all of the big news after hours and bring you the headlines after they break and check out amd and amgen pretty volatile this afternoon and we'll bring you the very latest and mark zuckerberg taking the stage at facebook's developer conference, but will wall street buy in? >> we've got those details and we are live in times square in new york city and a lot more fast money right after this. 401(k)? where do i start?

empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov.

on investor.gov. here'sshow me making it. like. oh! i got one. the best of amy poehler. amy, maybe we could use the voice remote to search for something that you're not in. show me parks and rec. from netflix to prime video to live tv, xfinity lets you find your favorites with the emmy award-winning x1 voice remote. show me the best of amy poehler, again. this time around... now that's simple, easy, awesome. experience the entertainment you love on x1. access netflix, prime video, youtube and more, all with the sound of your voice. click, call or visit a store today. welcome back to "fast money. amgen, the drugmaker pretty volatile in after hours. let's go to meg monitoring the call >> hi, carl. a tepid response to wall street to amgen's first quarter beat. let's get right to the wall street reaction, jefferies jared

holt, one-timers, and drugs facing patent cliffs and i.p challenges which will probably not be viewed as sustainable over at baird, brian telling us there isn't a lot to be excited about. the big new migraine drug looks pretty bad for what people think is a mega blockbuster drugs at this point and that drug coming in at $59 million and analysts were looking at $89 million. again, enbrel reported a noteworthy beat and rapatha and a cholesterol drug were somewhat discouraging and you can see why amgen are not trading much in the after hours. >> it's worth noting so far this year, biotech more than tripling the performance in the broader health care sector and both underperforming the s&p and just had more to do with biotech and the historic underperformance of the broader health care space. >> i'm not really sure you overlay the political

climate, and for me, even though they're down a lot i can't live with the overnight. i just can't live with that kind of uncertain so if you want to be, posed with the xpi or ivp >> they traded horribly coming into this. i think tomorrow morning for the next couple of weeks it's not going to look good for this. they didn't trade well and they've come off their highs and closed near the lows of the day and now you have amgen coming out with what looks like lackluster results not that they were lackluster results and the response is lackluster i would stay away from this. they beat on eps and they beat on revenue and raised the guidance by the beat which is good as meg mentioned, enbrel was a beat is it sustainable? we'll find out same thing with lun asta and the dru, they just started promotional campaign and you can't watch tv without seeing a advertise am for the migraine drug and it was 60 million and light. this is a drug that can grow

so valuation is compelling the stock hasn't traded well and bk's right and i think you can own it here. >> also, rapatha sales are up. we've gotten so used to talking about the big three or four in the biotech world and the pipeline that's going dry and people forget about the balance sheets on the companies and the strategic positioning. the sector is as poor as we've seen it in a couple of years and based upon that, these numbers were fine and i don't see a turnaround overnight and i think you're stave with the balance sheets. >> when you talk about policy and uncertainty in the health care and are you worried about the crackdown in congress? >> i think it's out there. once you see, obviously, the democrats will pound that hard and maybe it's a bipartisan issue, and i think for a while that will still be around and every single time that's happened it has been the chance to buy it if you can just hang on for long enough. >> all right >> coming up, check out where we stand with apple and tim cook speaking on the conference call

right now as it inches closer to a trillion dollar mark to $212.08 and as we go into the month of may, tony dwyer says don't chase this valley. much more "fast money" after a quick break. i consulted with your grandmother's doctor.

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welcome back to "fast money. the s&p 500 to end the month of april and let's get to bob pisani at the new york stock exchange for more. >> carl, the win streak continues, four straight months of gains with a surprising sector on top for april. banks who would have thought the rates would have stayed low and it's been an ending in the last

couple of years and banks have dramatically underperformed the s&p 500 and the last two years, only 6% for the banks. this is just the last two years, but not this month banks are up 9%, outperforming just about everything else including techs up 6%. communication services up 6% and consumer discretionary is good and lily and merck are lagging on concerns about drug pricing and health care providers like universal health and they're down on medicare for all concerns earnings surprises were the major reason the top companies outperformed last month led by disney up 23% and not a typo there and that's the best month for disney since 2000, the same for united rentals and great earnings reports up 23% and ford was a surprise with twi23% and . morgan up 16% anadarko petroleum up 60% after the bidding war between occidental and chevron

and qualcomm up 51%. you know why in april it settled the royalty dispute with apple carl up 0.7% for the s&p 500 no earnings recession. >> as you called it, bob >> do we like any of these names here what do you think of the overall market >> in general, i think we're extended on the trading aspect of it, but in general as long as the federal reserve wants to be easy money and the talk about potentially cutting rates, you have to be long stocks in some fashion. you can trade around them and maybe there's a pause coming and we'll talk about that, but as long as we have this environment and you have a good gdp, you have global growth why not be long some stocks >> i'd like to talk about energy for a second because this anadarko bid will continue to ripple throughout the energy sector and even though there are awful stories down 10% today and let's call them the high-quality epc, et cetera, relative to the current price of brent which by

the way, is one of the best charts of any market, these things are trading very cheap relative to an oil or asset price and they're companies that are being run differently. the energy sector is underperformed and they have interest near record highs with the fundamentals that have gotten a lot better. >> real quick, disney has gotten ahead of itself and disney, and it was a $99 stock and legalized gambling and that was the lifeline and we had the conversation and now some 32% later you're wondering if the good news priced in crushed numbers on may 6th and otherwise they're 21 times next year's numbers in my opinion they're just pay too rich. >> bank leadership, how important is it right now? >> well, thank god it's been a long time coming and i've been waiting for that for a while. >> i still think they have room to run united rentals is the most interesting. it's upon a lot if we get this infrastructure deal >> did this meeting seem to

you -- >> 2 trillion is great, but it's the how do we pay for it meeting that will be less kumbaya. >> which is another way of how do we pay for it, with a deficit that's getting almost absurd and 2 trillion in stimulus at a time when we have a fed meeting where people expect zero out of this fed and we have a payroll number on friday which has a big, big number and people are way offsides on any type of hawkishness. so you throw in an infrastructure bill and i think you get to a place with a 3% economy that you can have a lot more fed that everybody knows about. >> now up more than 17% a year our next guest it is and welcome, tony. good to have you >> we should mention, too. the fed decision tomorrow on a day today where the president says cut by a full point and embark in qe4. why is that not good for equities >> we're expecting a bit of

pause here which is why he teased it the way he did the stimulative effect to two and a half and having a re-steepening on the u.s. treasury yield curve, i think that's way more important than what the fed is going to say tomorrow because it's likely to say nothing other than the data is coming in and it's skewed to the downside and the first quarter inventories and this is all and we talked about it on the show a bunch of times, carl and this is all kind of a rhyme to 1995 where in 1994 the fed had doubled interest rates and the gdp numbers were great because inventory was ballooning the gdp numbers and the economy was starting to slow down, housing autos, consumption and you had the rate spike very similar to what happened last year you came into 1995 where the time rate hike in february on good data and payroll numbers suggested and by july, just five months later they cut rates with the market up almost 20% and did

it again in december, up 34%. >> do you think that's why the chicago pmi is rolling over and the purchasing manager is beginning to feel the inventory blow the whole story isn't great data you want to keep the fed off the game a dovish, low inflation and the dovish pivot by the fed, and slow, but positive growth, calls better earnings and you're getting a multiple recapture from last year's ecline. >> what happens? say the fed does -- you sound bullish, by the way. >> until you shut down credit i'm going to be bullish. there are times if you remember at the end of december i came on the show and one of the indicators was a 14 weeks to cast it on the s&p 500 it was five. it just never stays there. now it's 98, probably be 99 tomorrow after apple and it doesn't stay there long either i just think you've got to own them if they come in i just -- there are times when you don't want to chase them

aggressively on some of the names that the guys have talked about. >> say they've come in a bit and they get an even dovish fed and that they might take the president's suggestion and cut rates? >> he goes ban anas people keep thinking the fed knows something and they've been wrong every cycle in their history and we keep thinking they know something? you know who knows smaomething >> one of the things that's a pet peeve for me is when the bond yield's down at 2.5% and people say the bond market's quote, unquote telling us something because the high yield market hit a record on the barclays high-yield total return index. define which bond market we have strong risk on move and that decline in the ten-year and it brought a full percentage point decline on the 30-year fixed. >> somehow that's just not bad when you haven't shut down credit >> tony, the u.s. dollar strength has been pretty unbelievable in the wake of

everything you just talked about? at what point did that come ahead, if at all >> i don't think it will be a headwind if you look at a real strong dollar, look at 2013-14, that's a strong dollar. this is trading around in a pretty narrow range after that 2014 move. the dollar index is exactly where it was, almost exactly where it was at the end of 2014, so you've had some up moves above it and you've created this trading range and it really isn't, the dollar is one of those things that's a negative and if it's a tailwind, it's not organic and when it's a headwind, the dollar is a headwind and it's one of those things that discount >> you mentioned this '95 template you've been hearing the word insurance cut and in the 95-type framework. does that make sense to you? >> if i'm in the fed, let's pretend i'm in the fed i'm scared as well that we've had the kind of stimulus we've had for ten years and we can't even get to the 2% we want as average.

there are 1.8% on core pce how are you going to get to an average of 2% if you haven't changed your policy? so i think all of us would agree at the end of last year they made a policy mistake by raising rates and you have a 0.2 spread on the yield curve somewhere around 40 to 50 basis points exactly what happened in the middle of 1995 and again, the global economy had some to pivot in the middle of '95 the u.s. economy reaction cell rated from the middle of 95 after a 35% move in early 1996 because they're scared of inflation and that's a bigger problem when you can't get inflation where they need it when trying to stop it >> tony, thanks. >> your thoughts and ahead of the decision tomorrow. the fed's got some structural issues on inflation that they didn't have 20 years ago >> they're fighting windmills. >> they can't -- they'll never get inflation where they want it

based on it, and i think inflation in all the wrong on. >> con don quixote. >> you can do math and you can do it in your head now i lost my train of thought they'll never get the numbers they need because those numbers don't exist anymore. inflation is in all of the wrong places and i don't want to admit it i actually think they're on the right track, the fed in october and i think they're making the policy mistake now and that's for another show >> i think they're gone and they've absolutely left the building and it doesn't matter what we print on a gdp or inflation and they'll let it go, above two. >> just remember, in june, they are actively revamping their policy and in june they're likely to come out with this policy and framework for it which may include inflation targeting and say even they were able to target inflation which we know they haven't been able to do and even if they were you

want to be long the stocks, and even if it's not at 2% or 3% that's not horrible. >> of the fed being missing in action and infrastructure bill you want to buy europe right now. you want to buy emerging markets because if the fed is not your issue these are markets that massively underperformed and arguably have better earnings profile with the other parts and i realize china and data, and none of you see this inflexion higher the european markets are breaking above 200 days than they're breaking out >> we've been hearing that more and more, is europe the new long given the gdp numbers and german cpi this week surprised on the upside for more on the marks and what to buy at record highs head to trading nation.cnbc.com. still ahead on fast and check out apple surging after a big beat and cook is speaking on the call right now and it is coming just a touch on after the bell highs and facebook ceo mark zuckerberg doubling down on his commitment to the company's

developers conference today and will that move the needle for thstand those details when "fast money" comes back.

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>> welcome back to "fast money." facebook soaring this year after

micki making a comeback from the concerns mack zuckerberg pitching a whole new vision for privacy to redefine the social company. julia boorstin was at the annual developer conference in san jose and she's with us. hi, julia. >> well, carl, mark zuckerberg says the future of facebook is private and the encrypted end to end messaging and private messaging that they're focused on now will end up being more valuable to the company in the long term than the more public forum of the news feed take a listen. >> i get that a lot of people aren't sure that we're serious about this i know that we don't exactly have the strongest reputation on privacy right now to put it lightly, but i'm committed to doing this well. >> zkerberg unveiling a redesigned facebook app

featuring groups and stories from close friends and showing new tools to drive e-commerce and consumerson mess efrmgengerd directly from instagram developers on that app and they're creating the upcoming messenger redescribe and that's the centerpiece of the new focus on private messaging >> now we are working towards making encryption and reduced permanence and the default across all conversations and when we do this, across both messenger and whatsapp, we're going to enable more than 2 billion people around the world to have their most personal conversations with each other privately without having to worry about hackers, governments or even us being able to see what you're saying >> now facebook shares didn't move much on today's news, but last week they did gain over 8% on earnings results and also ceo mark zuckerberg reassuring

investors that the shift in strategy to focus privacy would not have any negative long-term effects over the long run and that they would be able to achieve their long-term potential revenue goals. etsy share, though, i have to say, etsy shares did drop on today's news that facebook is so focused on e-commerce and giving those tools to developers. >> fascinating, julia. thank you very much. >> public, private do we know what this company believes in terms of soebl ricil right now? >> no, but i believe they want to make money. they're committed to that cause. obviously, they've had a very difficult year, but i don't think they are the sole poster child for bad privacy behavior and that is small fading and i think put aside the ft reserves for the ftc charge, they're asking for legislation so they know how they can comply so they're not always in trouble, and i think also one other thing

we have slack and maybe that gives us a little bit of sense of whatsapp, maybe what could that be worth. i don't know how the privacy ultimately plays out, but i am long i do think at this level -- that last earnings quarter was phenomenal in light of google's complete whiff yesterday. >> can you compare it to mobile? >> they're getting religion on privacy is something they've had no choice and i don't think they've led innovation there and they've obviously been following their tale and it's one of the reason yes and i kind of have been clear on this view. i think facebook is not going to outperform the qqqs and the rest of it in the social media space and socially the broader tech world as it hasn't for the last three years until we understand what privacy means at this company and i still think the jury is out even though there's no question that there are 2.4 or 2.6 billion daily active users is a ridiculous inside

advantage. >> they a lot of competition in the messaging space, and in particular the privacy messaging space giving it away for free and the massive base there and i am skeptical that facebook will pull this off and i'm skeptical that they will be money off of this and the entire business is taking the data and selling it and they'll sell ads against this and they'll turn the business and make it an e-commerce pbs and may e-commerce business. >> 93% is mobile it's remarkable nonetheless, right? and the head count increased 36% year over year that's a significant number and how much is left this is a $210 stock give or take in july of last year and we obviously know it traded down to and we are right back there again, and this thing will go blowing through and a lot of analysts upgraded it with the

$240 price target and i'm inclined to tell people to take profits at these levels. >> i love your page, by the way. >> my pinterest page is ridiculous it's pinterest which, by the way, has done very well. >> you are on it >> we have to get carl on it if i can remember my password. >> maybe another time. check out some of the earnings movers as we go to break apple and amd soaring as conference calls are under way full team vecorage, josh lipton, gene munster monitoring apple and we'll get coverage when we come back.

welcome back to "fast money. apple's conference call going on right now and let's go to josh lipton for details >> carl, on the conference call apple ceo tim cook talking more about the iphone and not just how it did in the quarter and also the trends he's seeing in the iphone franchise take a listen. >> for iphone, while our worldwide revenue was down 17% from a year ago, declines were significantly smaller in the final weeks of the march quarter. looking back at the past five months, november and december were the most challenging. so this is an encouraging trend. we like the direction we're

headed with iphone and our goal now is to pick up the pace >> now, cfo luca maestri was also on the call going through the other segments and maest ri talking about services and 11.5 up 16% and called the double-digit growth in the app story and apple pay among other segment, they could for 20% of revenue in the quarter and one-third of gross profit dollars. he also talked about wearables and they set a new march record for wearables and now the size of a fortunate 200 company and apple introduced the watch four years ago. maestri saying the watch produced the best sales for a non-holiday quarter. maestri saying they ended $225 billion in cash and it was 113 billion and they returned 27 billion to shareholders in the quarter and the additional 75 shares and they raised their

dividend to 77 cents and an increase of 5% and the outlook, 52.5, and remember, the street was at 59.9 billion. >> let's go back to gene munster. what's the most important thing you've heard tonight >> burr ed ied in cook's commend i want to decode what that means is that the iphone upgrade program that's had some success about buying your phone on the subscription basis and the hardware piece it sounds like they were tinkering with extending that to other products and they don't expect announcements in the next quarter or two and thematically, longer term and this is important for the stock and the reason is if apple does start selling products more holistically and the one-stop shop and you're buying it on a monthly basis and that would be a higher multiple for investors and i was very much encouraged by the little nugget that tim

cook gave us >> you want to grade your quarter in your view, gene >> carl, it's an a-minus and spikily, it was -- when they're doing in terms of cash buyback and just the strength of this earnings is largely misunderstood. i suspect analysts tomorrow will bump up their price targets and i want to impress upon people that this would be a much bigger company. we talked about the $350 if you put a low 20 a coca-cola multiple on this gets you a $250 stock. >> all right, gene a-minus. >> professor munster has done a phenomenal job this week in the full spectrum of students and frankly, i think on apple, i think the call here is this is a capital markets story no matter what you think will go on with iphones, it will continue to be a major support and it's 25% upside on the stock alone, and this would be an exciting day

for apple ooeceven though they didn't expect it >> we have an a-minus quarter which i would agree with gene and we have a stock that's bumped up against resistance and most of the stuff priced in and nothing in the conference call that changes my mind i still think you take profits tomorrow. >> what was your worst grade in college? >> a-minus >> like melissa lee. a minus, the worst grade gene's been a pretty fair grader that was a solid quarter >> i don't know what else you have to do >> you have to see north of 20 from services. i think the guy who signed china was better quarter over quarter and the snon comparable quarters, but i do think getting china back in line to give them the net boost. >> can we say they're back on offense in any way >> they can talk about other things and wearables all of that being said, i'm just

doing nothing tomorrow >> isn't it also fair to say that apple swings the pendulum in terms of people being overly ebullient to being on the other side of it and i don't think we're on the overly ebullient side. >> good point. >> that is good. >> i said you can do the math in your head. >> check out advanced micro. the stock up more than 60% this year do not miss an exclusive with lisa su on mad money tomorrow night at 6:00 p.m. eastern we are live at the nasdaq in times square still much more "fast money" ahead. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler.

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is that everything? i can see who's online. i'm gonna sweep the sofa fort. well, look what i found. take control of your wifi with xfinity xfi. let's roll! now that's simple, easy, awesome. xfinity xfi gives you the speed, coverage and control you need. manage your wifi network from anywhere when you download the xfi app today. >> welcome back to kwaet fast money," ge rallying after affirming guidance for the year and some traders betting the rally will be short lived and mike ko in san francisco with the options action mike >> ge saw two times the average daily options volume today and that made it the second most active single talk option after apple in terms of content. despite what was widely viewed to be a better-than-expected result, the most active options were the june 9th puts and over 36,000 of those traded in total today and that included a

purchase of 33,600 of those for 19 cents and someone is making a bearish bet that this relief rally might be over within the last seven weeks and the stock could see a decline of 13% from the levels where it closed today. >> mike, thank you very much >> tim, gueie, one of your draft picks. >> the number one pick and i'll tell you, it's a lot of pressure and people were booing me out of the arena and here's why ge was a good pick of the stock draft on cnbc's powerlunch one of the great events on financial tv this is a balance sheet cleanup story and this is something that a company to me, you're playing a sum of the parts and today's free cash flow outflow 1.3 billion, and that, to me, is what this is all about, folks and i'll stay long and it's a long season, carl and unfortunately, being on first place on day four. >> hold on my pushback that day, and ge would have been there at 11.

i happen to know that. >> the ladies who shaked me out of picks every year. here's the important thing, investors are starting to buy into the story >> we this this turnaround story for a long time and investors didn't buy into it so i think that's the big difference here i'm with this are timo this one. >> out at the milken institute today and hes are says you can sort of feel we're starting to get our sea leg again. to tim's point they are turbo charged and they could go to zero, but that would be good if they could get a positive momentum. >> for more options action check out the full show at 5:30 p.m. eastern time up next, the final trades. see that's funny, i thought you traded options. i'm not really a wall street guy.

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>> great to have you, q. >> great to have you >> the fun show. mckesson, very bad over the last couple of months seems to be turning and you get long into their may 8th earnings release. >> guys, thanks for having me. >> that does it fo my missioe to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere. i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome into "mad money. welcome to cramerica i do want to make friends but just trying to educate and teach you so call me at 800-743-cnbc or tweet me at jim cramer. every now and then i worry we live in the dumbest of all possible worlds. i look at some of the digital stocks and they ar