not making overall, big, dramatic moves >> it's the one known catalyst without a doubt and i think you can get an economic lull or acceleration from the numbers that will be even without trade news >> thank you very much we're out of time. that does it for "closing bell qwest bell." fast money be gones right now. i'm melissa lee. your traders on the desk are tim seymour, brian kelly and jim grasso >> the tesla sinking 6% to a fresh, multi-year low and karen says there's more trouble under the hood and she'll give us the fine print mark yusko of morgan creek capital is back and he says stocks are in for a double-digit decline this year and he won't believe what he says to buy instead. we start off with the markets lower today as we are in the thick of retail earnings and there's been one key theme amid these reports.

tariff anticipation. everyone from macy's to walmart, and target, steven mnuchin is monitoring the situation chosely. is there more pain to come for the group, tim >> the retail community or the consumer is supposed to be pretty healthy where you've seen jobless claims we're at peak labor and this is a dynamic. you talk about the xrt the xrt is down about 8% in 20 sessions and basically has given back half way to where it was on december 24th when we would all acknowledge the world was in a pretty scary place i think we're in a dynamic where the net cost to them on imports, they're looking at a consumer that's retrenching and more importantly there are sector issues like department stores and even some of the consumer discretionary names that i don't think are in control of their

destiny as they once were. those were issues that were plaguing retail for the last two years and they're coming back to light in a global growth slowdown >> we've had highlights and low lights from the retail earnings season. >> we've definitely had some of each and we've had self-inflicted wound, right? and we've had some really great performance. obviously today, target did a great job. i was very impressed with target and they seemed to be doing all of the right things and they seemed to withstand the potential amazon threat and they're doing a great job onso many fronts and making the transition to have digital business be very important growing nicely on the flipside, lowe's today i view much, but not all of lowe's as very much self-inflicted wounds and why should it be materially different from home depot. it shouldn't we've known that for a while and why they've had new management, but they seem to have shot themselves in the foot so lowe's now, they've gotten

close to a home depot valuation and home depot is still the premier name in the industry and home depot is now more expensive, but i think the execution risk of lowe's is much greater. i would much rather be in home depot than lowe's at this price even though home depot is more expensive and we'll see how lulu does they've been a constant performer through any market, but if you look at things that have furniture exposure like if you look at a restoration hardware and macy's cited it, and i think maybe if you're a retailer and you have the china trade situation manageable, why come out and put out an aggressive number. right? why do it? is it more of that it took the last sentence to talk about the trade woes that we're seeing in the retail sector i have to throw that phone, it was flashing, but is it more secular?

or is it really trade? because you would think they have the trade issues. >> so you're figuring if there's something to look through or if it's a real problem. >> if it's more than what the two of you have said, but i think they should already be confronted with whatever trade tariffs that we're seeing. they can see more coming on, but they should have work arounds, and i like the fact that mnuchin is talking to walmart. it makes me think more positively >> i'm sorry to interrupt. there's been uncertainty for a while and it's very difficult to change what's been your sourcing structure for a long time. i know cavry which has traded terribly, which i own, has been somewhat successful in doing that and it's very hard to do. >> the stock doesn't have to wait as long as there is some sort of a workaround it's not an instant fix, but the stock price will move higher. >> the whole market has been anticipating that trade tariffs are something we work through and we look through and there will be a challenge to it.

bha thi what i think is starting to say, wait a second, maybe this is going to last longer than expected and maybe just an incremental improvement isn't going to be enough and this is starting to impact our actual business in terms of retail, they're getting hit on both ends we have the secular change in how products are sold. this digital revolution coming in and then at the same time you have a tariff hitting them as karen pointed out, it's all about execution. if your management team is not executing on point in this environment, you just get crushed. >> i just think it's impossible to not think about all of this and we're dancing around macro and this to me is all about macro and even though i want to point at the secular issues or bottom up in the form of management teams that aren't executing, you have to look at commodity prices that are falling and bond yields around the world and bunds are back and all-time lows and copper's down almost 20% in the last 25 days

and it broke down today. so one of the conversations yesterday was how it seems the market's done nothing and it looks pretty nasty to me, retail is the place you're going to be suffering if you're starting to see deterioration in the leading index and the consumer which is the backstop in this economy and it's 70% of the economy certainly has no reason to go out there and be spending at will right now >> consumer confidence and sentiment is at all-time consumer highs >> i look at the commodity complex coming in as deflationary, and i look at that assal most as almost a tailwind for the consumer names in the back half of the year we set up deflation and lumber prices with home depot and trade worries and the back half of the year will be much more positive. >> i agree i think the consumer's in good shape. i think that, you know, look, we have interest rates down so i think, i've been surprised that we haven't seen more of a home buying bubble or more activity,

let's not call it a bubble, but home buying activity and all of the spending that goes on after that at a home depot and maybe less at a lowe's apparently, and i think consumers for good shape and employment is going up. >> and some of what can withstand the macro issues >> ones that have done well. walmart and target, those two and target is probably better positioned than walmart in that they have more moves they can make walmart has made this digital transformation and look at the ones that have performed and somebody like a walmart might do well which oil does go lower and that's the so-called tax cut for the consumer and impacts the walmart customer than anyone else. >> i also would liken to be on the phone with maybe a macy's cfo or the cfo as something like a wayfair. of all of the retailers, walmart would be the best equipped to deal with tariffs, to find a

work around solution, to squeeze their suppliers and absorb some of the costs. >> why macy's? to find out where department stores are factoring in to find different suspect pliers. >> and it's not just the largest retailer on the planet. >> you haven't given us time and i realize that the china dynamic has been going on for 15 months now. maybe that's flimsy, but i think in the case of stepping it up and getting to this place and this impasse where now obviously, huawei's been -- okay, maybe the headlines tell you that we're going have another delay and that was yesterday's rally and i don't think a lot of companies have any sense that the administration is giving them the head's up that they need that phone call may be well placed, but what are they going to say i don't know that they'll be able to -- >> i think that they're going to say, hey, we're handling it pretty well because we can.

>> that walmart will say that? >> yeah. >> on the phone with wall street, different dynamic? >> no, the calls ingoing to the trump administration from the ceos are going to be really sort of, hey, you have to do something to fix this situation. not oh, how are we managing it or pressure on the trump administration. >> which is ultimately the -- if you get a sell-off in the stock market, in, ceos are calling saying you have to do something about this it's going to look ugly and we'll probably have an after-hour show called markets in turmoil >> don't knock markets in turmoil. >> i like those days >> if you were to put together a basket of china-leveraged stocks that will go higher and have that outsized move to the upside if there is a trade deal, should retail be in there >> it's using that as a major headwind and then it's all of

the china-related names and you want to go retail and china you, you go ali bah bah >> a man says we are already in a bear market and it can only be worse from here and let's look at the morgan creek capital management good to see you. how much more do you have to go in this bear market that you say we're in >> we talked about it last october that we thought the end of 2015 we singled down single digits and we thought we'd get a couple of bear market bounces and by the end of the year we'll see low double digit losses and the credit cries that's coming to 20, 12 to 14% of the street -- has your views changed at all and certain ems changed

>> yeah, it's great. back in october we talked about the karshs, rush a argentina, south korea, i don't really like south korea, but i needed an s >> carbs, nice >> if you look at that, since september those five countries are actually ahead of the s&p. the s&p is down. brazil is nicely china is up nicely and argentina is quite flat. going forward from here to answer your question, we still like china a lot we think it's very cheap and any time you buy china below ten times earnings that's a good thing. i kind of like argentina because people hate it i'm usually drawn to things that people hate. i'm more skeptical about brazil short term and russia, and i agree with the commentary from a few minutes ago that with oil prices heading a little lower i would probably step back a little bit from russia what's interesting about soult korea. south korea is in freefall and it's one of the four horsemen of

the growth apocalypse. you have oil prices and the kos pea, when those four things are declining like they are now you're usually going to have gdp surprise to the negative and earnings surprise to the negative and stocks surprise to the negative. >> hey, mark it's tim i agree with the concern on the credit dynamics and we talk about the debt to gdp levels and et cetera and the triple beats and the rep that's out there how has em outperformed the technology and, i look at the blowout in em currencies and it's about to blow out to 15-month highs how do em currencies reconcile that >> that's a really important point, and if you look over the past 12 months em currencies have been a really big drag on e in, returns. i think the there are rally is peaking out here i think we'll roll over the success half as we see a lot of

weakness particularly around oil, and i agree that this has been a headwind and i'll use '70s music and in em we'll use "go your own way." em is so cheap relative to the rest of the world. now, look, if we have a really bad downturn, em will go down, too. so i like to intermittent fast here so we carb loaded first quarter. let's do an intermittent fast over the summer and then we'll carb reload in the show. >> when you take a look at the feds and the feds were released and they opened the door to a possible rate cut if inflation remained to the downside and was anchored below 2% is be, or is it an aek cell rant of this

apocalypse scenario. >> it is hyperbell onic for effect and it's one handle for the second quarter and maybe lower for the third quarter and recession some time late this year and early next year again, shallow recession like 2001 people forget, for the whole year of 2001 growth was positive we just had two negative quarters and they weren't even back-to-back and it was still a recession and the market still fell a lot over the next 18 months so the fed, to me is reiterating the problem. when they say that they're closer to a rate cut than a hike, that says to me that we're closer to economic weakness than strength high interest rates are a sign of economic strength low interest rates are a sign of economic weakness. that's been true for centuries and it's true today, so any time that the fed has paused and gone into rate cut mode after a rate hike cycle look back. they did it in 2001 and they did a bunch of cuts and we had a 58%

peak to trough drop in the markets and we had a recession they did it again in 2008. they did a bunch of rate cuts and we had a 65 peak to drop in markets and the recession and we don't want the fed to pause and start cutting because this means they see weakness, not growth. >> mark, it's b.k. this all sounds pretty terrible for most investors what do i put my money in and please say bitcoin >> oh, come on, why do you ask that question! a softball to knock out of the park >> what do you think here of bitcoin? do you think that it has legs? >> i'm even wearing my bitcoin tie on for you guys. look, you know, i was lucky. i happened to be on melissa's afternoon show back in december the week it was at 3100 and i said what do you think i said, look, we issued the morgan creek digital crypto challenge and we will take bitcoin over the next ten years

and starting january 1st and the million dollar charity bet just like the buffett-style bet and we got no takers it was a good thing they did not take it because bitcoin is up over 100% and the s&p is up 14, but going forward from here, even over the next year and over the next ten years it's not going to be close. bitcoin is a great, diversifying asset and has very little correlation and should be in fsh's portfolio. >> i'm sure we'll speak to you before the end of that bet, that term >> thanks, guys. appreciate it. >> some people would say he lost a bet wearing that tie >> hey, b.k. gave him that tie >> that was a gift >> i agree with him they think cutting rates is a sign of weekness, and weakness and the fed is running out of bullets the problem with cutting rates and the problem with the whole macro environment is there is no inflation and every commit can't tell you why there's no

inflation. i don't know if it's a products of the global environment that we live in he's overlaying the metrics that doesn't exist any longer, but i'll touch on the bitcoin thing. i think the gold bitcoin and inverse correlation if you think bitcoin is going higher then you saw gold >> i sort of believe in -- and who knows in the short term, but i, you know, i love bk >> i have no idea where it's going go i wouldn't take the other side of that million dollar bet, right? so in terms of the other thing and the thing that he said about the fed cutting that would be a bad thing and the fed would be in resposhs and it's sort of saying you have to have this treatment. you don't do the treatment you're not sick, right i think the underlying data is what it is and the fed responses. >> so that part i don't agree with, but he's a smart guy. >> coming up, tesla inferno. karen says there's something under the hood that could signal

more pain ahead. plus, qualcomm's sinking almost 10% for its worse day in the few years after a judge ruled it violated anti-trust laws a handful of stocks are at or near all-time highs and we'll tell you which have more room to run. we're live in new york city. much more "fast money" right after this you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.

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be the first to discover the secrets. at the fandango early access showing may 25th. welcome back to "fast money. a major buzz kill for qualcomm a federal judge ruled against the chipmaker in an anti-trust case saying it suppressed competition and the ruling coming a month after qualcomm and apple ended a two-year legal dispute between the tech giants involving qualcomm's licensing practices which sent qualcomm shares soaring and how does the shake-up affect this chip space? first of all, it really impacts qualcomm for two years since 2016 they've been trading in this range from 50 to 70 all on the idea that there's uncertainty about what's going to happen with apple and they've finally got their mojo back and qualcomm individually is probably a no touch it probably goes back into this

range trading so if you like to range trade that's probably the way to do this and on the broader chip space that will trade a lot more with the economy and everything we talked about previously chips are more of a macro trade -- >> but does this lead out to the rest of the chip space this is their whole existence. if you have to re-negotiate your existing licenses and separate those businesses and you have a licensing business and a chipset business, and you don't survive and this is the worst-case scenario i'm just saying that i wonder -- i don't know if this is a stand alone issue with just qualcomm i know qualcomm is the biggest that we could talk about, but it's not good for the entire -- >> we were talking about how this completely changes how you can trview the revenue stream of sales then how do you think of what money they bring in.

>> i wonder what it means for the apple deal. >> right that deal which you have to give apple credit for standing in there and actually pushing back. who else could do this but apple? and it was devastating for qualcomm for a couple of years so i think this -- look, this has far-reaching effect for the entire cell phone industry even though people are doing cart wheels today probably in the hardware world i don't think we've heard the end of this. >> for more on qualcomm and the chips go to cnbc.com i'm melissa lee, you're watching cnbc first in business worldwide. here's what else is coming up on fast. >> as wall street waivers on trade fears, there are a handful of stocks that look untouchable to the volatility. well tell you what they are. plus -- ♪ ♪ >> you bet you do because bike and scooter sharing is taking the world by storm and it could be the next big thing in the ipo rush the co-founder of lyme will be

here later this hour much more after this

>> welcome back to "fast money." tesla, saying their $36 is the worst-case scenario and one group on wall street has been cashing in on this move and leslie picker is at the headquarters. >> music to the ears of short sellers. those with bearish bets on tesla have raked in more than a billion dollars in profit this month. they've made nearly $4 billion on tesla's declines year to date and this comes after three consecutive years of losses for tesla's short sellers as the stock price moved higher for those longtime tesla bears like david einhorn, the wait

appears to be finally paying off, but this is really one of the few bright spots for shorts as the hedge fund industry increasingly abandons that side of the trade overall short interest relative to market cap of the s&p 500 is at 1.7%, the lowest level in 13 years. 2006, before the financial crisis short selling and individual names has become less and less common in recent years as the bull market pulls stocks higher and investors have been warned too many times on their bearish bets so they've been making fewer and fewer of them. the biassed hedge funds have gone out of business as a result, and short sellers may be partially to blame for some of tesla's recent stock plunge. one bank of america analyst writing, quote, it appears much of the pressure on the stock over the past few days and weeks has been driven by shorts pressing aggressively. the firm said that may mean shorts jump on good news, but others seem less convinced and

tesla has seen 12-month estimates get cut a dozen times in just the last month and bad news continues to trickle out with consumer reports saying the auto function raises serious safety concern >> leslie picker, back at headquarters tim seymour is one of those shorts how do you think about the short position now >> first of all, we know elon musk was exercising companies and he is doing it at a level won. >> to me, morgan did a call to me and ultimately this is a guy that has at times seen a bullish side and he talked about a lack of demand and he talked about a lack of demand also in a place like china at a time, by the way we're going through a technology cold war in a company relying on robotics a robotics and something to think about and tesla's debt becomes a big problem when the company is not growing.

debt for any company becomes that and he stressed restructuring. to me if you're a short here, i don't care how long the stock's gone down and i think people, this is what you've been waiting for, and i think the focus on short sellers and the social media stuff here, i've never seen a sideshow like this. this is not the story. people are vilifying work on the company and it's not been noise. >> i think the bulls and the bears on this stock have been vilified and nothing in between. they've both been right. in terms of not thinking about how much the stock has gone down if you are short, shouldn't you think about how much you've made on the way down and and take something profit and i went from 240. >> just taking your profits as you go along. >> right i do think at some point and maybe it's 150, maybe at 150 you start to get a bit of a short squeeze and that's where you would stick your toe in for a

trade. >> grasso? >> when the sec news hit we were sitting on the desk. >> which sec news? >> the first one >> okay. >> that's where i thought the stock would be cut in half and i believe it was anywhere on a daily basis could be anywhere from 280 to 300 and i agree with b.k. on the price level and it was a 13150 and this is no longer the cult stock where everyone has to get in and you're starting to see top ten holders, big, big accounts that are liquidating and they were never liquidating before >> it's want just the single quarter and the institutional base kept this thing alive and again, the call today, i'm not going to put words in anybody's mouth, but there was a focus this is a restructuring opportunity for a company that maybe doesn't want to do that. the stock has tumbled and you say could be singling more pain. >> i do. >> give us the fine print.

>> the debt investors are much smarter than the equity investors and i think the debt investors have something to tell us here. so let's take a look at these are the new bonds that they priced on may 2nd of this year and i think the stock was 244, and so the first day the stock, actually traded up to 255 and the bonds traded above par and that was fun then you started to see concerns about tesla get worse and worse, and so these bonds have traded down to 89, but let's remember, they only have a 2% coupon let's remember, some of the value of these bonds is you have a five-year call if tesla starts to trade over 310. these bonds are convertible into tesla's stock. so convertibles are very bullish, but let's look at just the credit part of tesla let's look at another, and let's go to the next month there's no convertible element here and this is tesla credit. so we saw right here when they

announced they would do a financing and the bond's traded up and there would be more capital in the company and that's good. concerns again and these bonds have started to trade down and if we look at where they are now, remember, this is just credit only and there's no element of inversion here. let's look at our next chart and let's look at the credit cost of these bonds? these bonds yield over 9%. okay over 9%. so that means if tesla wants to go back into the market, this is the yield to match arity, if tesla wants to issue more debt it may be difficult, but they'll have to be paying over 9% to do that so it's difficult to get a deal done, but it's also, remember, difficult to service debt when you have to pay 9% just as a reference, if you think about gm or ford if you look at similar senior unsecured bonds they're trading at 4, 4.5

or so and this should be a concern for tesla share holders about how poorly tesla's debt is trading. >> that's where we get into the vicious cycle where the stock goes down and the bonds trade badly and the cost of service and the debt goes up much more and that's even more trouble for the company. >> the company's gross debt to market cap has never been higher so i guess the question, karen is ultimately, what do you envision -- >> i guess this is really. what do you envision the impact over the next kind of the short term is there a press against these bonds as well that will be more aggressive and downward pressure on the equities? >> that could happen i'm not sure i think that one of the things, though, you could see in the convert some trading around the stock, but it makes me think first, they should have done more of an equity at the time and we've all thought that and the second thing is maybe they need to start issuing equity which is dilutive, i know, but when your debt costs this much maybe you need to start issuing

equity >> go ahead. sorry. >> when you look at this, this is a number to me when i look at the equity >> wait, you see adam jonas' $10 bear case when you look at the chart. >> it looks like it can't survive, but is there an element to the -- when we start to see apple was sniffing around a couple of years ago, when we start to see that google was sniffing around a couple of years ago? is there any element to that where he could be looking for a white night to come in and save the day? it's possible, of course that would be the largest deal apple has ever done. i mean, i don't know, maybe google thinks they don't need it i'm not sure it's an expensive company even with the trading down it's still an absolute dollar value and it's a very big company to me issuing equity solves some of the problem. >> chairwoman, thank you for the fine print well done. >> coming up, check out these untouchable stocks sitting near 52-week highs as the markets are

under pressure and find out which the traders say could be headed higher and scooter mania turning it into a multibilonolli-dlar industry overnight and we'll talk to lime, two minute away. good! so good to see you. it's late, where are you? i'm at work. oh gosh, so late. i know, but guess what? what? i've saved enough to come visit you. well, that's such great news! at u.s. bank, we believe that hard work works. and for everyone working toward a goal, we're here to help.

>> welcome back to "fast money," trade worries putting them through the ringer and untouchable stocks sitting at highs, like mcdonald's, visa, hershey and costco all reaching records. >> love hammer great pants. >> this is more than 3% from its high and the dow hasn't seen a fresh high in eight months so with these stocks bucking the market trend we thought it was time to play a little -- trade it or fade it! >> we know how it works, i think. so let's kick things off with hershey. grasso, trade it or fate it? i'll tell where you what i'm doing and fade it. everything looks good and at all-time highs you stated up 22% and great cash flow and double digit eps growth and the problem is they were helped an enormous amount by the tax cuts you're not going to get that going forward. growth is slowing, fade it >> no.

i'm fading this one, too i'd love to trade it, but ultimately again, this valuation makes zero sense to me what do they do at hershey >> they make chocolate >> sorry, i'm out. >> that was a group fade the first in fast money group history group fade. >> i'm long mastercard so you can't possibly be long mastercard and want to fade visa in any big way i believe in the structural change it's happening, been happening, continues to happen and the growth is still there. the only thing that gives me pause is the valuation is high, but i'm still hanging on i'm trading it >> i'm trading, as well. both of these names look really good and the great thing about the stocks that are at 52-week highs, anybody in them has a profit and you don't have a lot of overhead resistance which i like and both master card and visa, i'll be trading them >> you have more people and more digital payments and the chart, long term is unbelievable and

like no not and mastercard is outperforming and you have to own both vase and mastercard and that will be a trade it. >> i'll fade this just to not have another clean sweep and weren't we talking about the concern about retail and the consumer, and maybe i was, so i'm fading this one, just out of consistency is what i'd like to be >> next up, mcdonald's, brian kelly, trade it or fade it >> i am a fader of mcdonald's. it's wanot necessarily that they've done a lot of things right with their men and yu, an this market environment i'm looking for places to take profits and mcdonald's is the place. >> i'm trading this one all day long and when i look in the fast food space i realize that maybe you can't compare it to a fast casual and valuations almost don't matter and look at shake shack and changing the perception of mcdonald's being

fast food death to where you're getting cool gimmicks and some electronic and tech and healthier food >> i have to agree with tim, when you have a company of this kind of brand around the world that is executing again and again and again and it's not crazy, pensi crazy expensive. >> technically, $200 is a huge headwind for the company and you have to get over that. 70% of revenue comes through the drive-throughs and they did the all-day breakfast and they're doing healthier choices and they're rejiggering it, and i still think it's a trade it. >> last, but not least, waste management, trade it or fade it, tim? >> i have to fade it if you think we're going into a period of lower growth and obviously being in the waste management business, these guys are in a pretty noncyclical business and they're in a business with a lot of

efficiencies, at some point at 25 times and i think it's a little bit rich at this point and it's been a function of people looking for defensive plays of which this has been >> i'm going to trade this for the exact reasons that they're fading the non-cyclical portion, right? if we are going into a slower economy and the recession. >> sell the consumer and we can't go back to visa. >> there is a secular growth story going on there, waste manage am, the last thing you do is cancel your garbage peck up maybe you cancel your, phone after that most people like their garbage picked up. >> forget about it >> 23%, up 23% this is the slow and steady one. they figured out a way to grow the business and they figured out ways to grow the revenues. >> we apologize to waste management >> why >> the sensation is in overdrive and we have the co-founder of rental company lime to tell us what it means for the future of

the sharing economy. you won't want to miss that. plus check out the mystery chart. this stock feeling turbulence today with the 52-week low they'll tell youhane wt's xt for the stock and all of that and much more when "fast money" returns. ealth. make sure you're working with a wealth manager who can grow with you. cfa charterholders have the investment expertise to unlock opportunities other advisors might not see. learn what a cfa charterholdr can do for you at therightquestion.org

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welcome back to "fast money. amid the ride sharing boom the demand for bike and scooter sharing has gone into overdrive and one company cashing in on the trend is san francisco-based lime lime is the eco-friendly

transportation rental company founded in 2017. lime offers an at-base rental service for electric bicycles, scooters and now cars. for more on the future of ride sharing economy, we are joined by brad, at the company summit in las vegas >> thank you for your time >> thank you for having me here. thank you, everyone. >> i have not encountered a lime scooter or bike. what makes you different from the city bike which we may know here in manhattan is you can rent this bike and leave it anywhere you want. do you make money per ride doing this? >> yeah. for those who does not know lime and the service that we are a dockless bike share and scooter share that has the flexibility to pick up anywhere and drop it anywhere that's legally and by using the gps technology and

auto tracking devices we are able to do it efficiently and not only do we give the user a faster and more affordable ride, but also we get the flexibility from truly from a to b and the global leader in the mobility business and we are happy to report we have dozens of markets already that are profitable. >> do you make money overall, brad how much for one, do you charge a consumer to rent one of these bikes or scooters? do you make money per ride and i would imagine that the cost of caring for a scooter that could be left anywhere would be higher than if you had to return it to a docking station. >>. >> yeah. first of all, on average that our ride costs $3.50 and it's significantly cheaper than a car share business in terms of the same trip and sometimes even on par or cheaper than the public

transit and that's the value we provide to the users meanwhile, the per-trip basis, yes, that is a very -- very profitable potential business given that we keep 100% of the revenue and this is a significant difference compared to the ride share business in terms of the -- where it's not necessary to be worse than the dock share business and the device is the device we added the flexibility to the service to provide a benefit to the user. >> even if you included the cost of damage and upkeep and all of that, you are still largely profitable >> not as a company yet and most of the markets that were relatively new in the market it takes a little bit of time to mature and for the markets we are operating that we already have 14%, 15% of the markets are profitable >> how do you think about total

addressable market i am curious that there's overlap with lyft, uber and taxis like a city bike. >> the way we look at it, the short trips and all of the data shows in the city which i think yourself included everyone that live in the city anywhere globally that we also face the short distance travel challenge. there's no good alternative today, and too long to walk and too short to drive the short trip less than two miles in a city is about 300 million trips per day, and we as of the rest of the world we're talking about a $1 billion trip on a daily basis and apparently, there's overlap with the shorter trips that our overlap is roughly about 30%. 30%, to 40% and it depends on the city that our users are

replacing car trips and the ride shares and personal car trips with the lime services and it is a new category that if we think about it every day that in new york or chicago and paris, london, wherever you are that there's no other choices or creating a new segment of the micromobility, and on top of that, i think compared to the bike share in the past it's entirely different and the business model is different and the addressable market is different and our broader user base data range from the age group as well as gender and that is much broader. >> brad, fastening brad bao, co-founder and executive chairman of lime tim, you've actually been on a lime. >> i've gone from being a major skeptic to a user -- >> of city bikes. >> we don't lime yet at least part of the city i live in, but the irony is the ride share

world has created such urban traffic that it's created the opportunity for the scooters and the books. there's no question that uber and lyft have created a congestion issue in a lot of major urban centers that people want to get on a bike and a scooter. >> you can leave this anywhere >> you have to dock it >> i have to leave it down in front of the taco stand down there. >> i can steal her scooter while she wasn't even looking. >> if i'm leaving there, you will have to rent the scooter again. >> cities will not allow that. >> it's scooter littering. >> there's going to be a prk lemm with that, and what i don't understand how they account for injuries >> probably sign archway your life >> he's saying, wear your helmet >> take a look at the stock ussing ground today and down 30% in jt the past year and we'll tell you the name and how to play the move when "fast money" play the move when "fast money" returns.

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do any of you know captand here we go. [ "good to be alive" by andy grammer ] it's snowtime baby. [ screaming ] oh, snowball. uh, is he ok? not in any way no. take that ok. you were just beaten by a rabbit. you don't even know it. [ ding ] oh, my pizza rolls. welcome back check out the airlines hitting turbulence today and american getting hit the hardest nearing the 52-week low and it's predicting an even bigger move for the stock and dan nathan in vegas with the options a action.

what are you seeing, dan if. >> the iyt, the transports got hit today down 1.6% and aaa, american airlines was down 4.5% and options volume was two times average daily volume this for a stock that's down 7% on the year and just a few percent from its 52-week lows. today when the stock was trading just above 30 there was a buyer of volatility buying the june at the money straddle, paying about $2.30 for that they're betting between now and june expiration and that stock will move up in either direction. we have a one-year chart and you see how important that $30 level is on a one-year basis and then back it out five or six years and you'll see that's a massive, massive support level in an air pocket below it. so obviously, this stock not having a whole heck of a lot of mojo to the upside and this trader is probably leaning toward a downside move as it relates to the volatility and the name >> karen, you're in the airlines

you're in american >> yes, sadly. it has been bumpy. i don't know i think it's cheap and if this is the 737 max, i think it's overdone. >> probably mostly been fedex's move and fedex is down almost 20% in the last 20 days and that's a bad sign for the leading indicators. >> dan, nice to see you. dan nathan in las vegas and that's friday at 5:30 p.m. eastern time up next, the final trade you traded options. thought i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

tomorrow morning at 8:00 on squawk box, secretary of state mike pompeo on the agenda trade and trouble spots around the world. don't miss secretary of state mike pompeo at 8 clo:00 a.m. tomorrow the final trade. >> same-store sales in the u.s. are decent again as in they're growing sloatly and mcdonald's is an interesting call here. >> karen >> i liked a lot of what i heard out of target today and i know it's hard to buy a stock as much as it is today it doesn't mean don't buy. take your time take your time let it settle in. >> oil went down on bad news and so it says to me it's time to sell out on oil and xl

probably time to get out of that. >> grasso. >> you know what makes me feel fz about walmart that mnuchin is meeting with walmart and i know they'll be in the administration's ear. >> see you back here tomorrow at 5:00 for see you back here at 50 don't go anywhere, "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 call me. this part got real simple, real fast we got a new rubri