economics, conservative leaning and never, treatment and had all sorts of views on the fed. >> very authoritative. >> and he ran the bureau of economic research for many years. >> was a guest recently. >> very recently and very sad news our thoughts and prayer goes out to his family and loved ones on that somber note that does it for "closing bell. >> "fast money" begins right now. "fast money" starts right now live from the nasdaq marketsite overlooking new york city's time square i'm melissa lee. your traders on the desk are karen finerman and tesla is heating up and we're moments away from the company's shareholder meeting and we'll tell you what elon musk says is driving the stock and stocks are within striking distance of all-time highs one top technician says do not start this rally stocks sitting out this rally and nearly 50% of the s&p 500 is

in a correction or worse, down 10% or more from their highs and check out some of the biggest names on the list. intel, ups, exxon, sales force all falling from their 52-week high do you buy any of these names for a catch-up trade or are they a no touch pete, where do you start with the list >> i see a couple of names i already own and i will start adding to because i think they've been pushed down enough from the 52-week highs and i think there's room to the upside i would start with finish with intel and add ips. the execution is there and the fundamentals are there and for me they've also got growth when you put that all together, mel, when they pull back, that's an opportunity and those are names i would be adding to >> what do you think of intel? >> you picked one that has some very specific issue to their own execution and they're very involved with what the headwinds are to the macro situation and that's an interesting list and the same thing as far as macro

headwind sales growth and they made the $15 billion acquisition deal and it had been trading very well for the better part of this year in a tight range and the upside so it is an interesting list and crude took it lower, so i think at the end of the day i think you have to look at the s&p and it's only a couple of percent from the all-time high and it hasn't made progress for 18 months so when you have underperformance like intel you better be prepared to wait a while unless we have a massive breakout in the market. >> intel, what i'm seeing they're losing a lot of market share to amd and they're forced right now to compete on price rather than innovation i would much rather put my money in the companies competing with innovation right now the companies i like right now out of that list is sales force and united health care they've been punished under the prospect of potentially there

being some medicare for all plan that roles out next year and i think that plan is very unlikely and i think there's upside with unirighted health care and sales forth is another one we like quite a bit and software is a great area to be and you're looking at high margin, recurring revenues and they just had a blowout quarter and they hit the ball out of the block and i like those >> so for me, i'm always value oriented and if i had to be in the semis intel one where i'd go i have a i have anthem and it trades closely to unh and they were idio siidiosyncratically linked and i sold part of it today. i'm pretty bearish you know, i think we have not seen the effects of the trade

war take hold yet. we have them that are more expensive. i have a friend who makes supplies that home depot and ace hardware and lowe's buy. they've gotten them and they've made them more expensive and about to pass the prices on to consumers. we haven't seen that yet i am very concerned about that even though i'm value oriented i am not inclined to buy here. the one thing i did buy, s&p puts and that vix doesn't go down even with the markets going up pete can speak to that a lot better than i, and i want to own more protection and i don't think the all-clear signal is right. >> that's one thing about sales force because i think what you're talking about from the fundamental standpoint makes total, total sense, but when you think about this stock in february, march and april they're about to break out to new highs and they've made a $15 billion acquisition about 10% for a market cap that's 10% of their sales at a hundred times earnings and to me, that's the sort of thing that could keep

the stock like this rangebound for much, much longer and investors will have to digest these massive acquisitions and the similar sort of thing and ultimately, i just don't of course how at some point if we have the lower market when they focus on value that this is a tough one. >> ooi'm looking at this from a different perspective. how many ceos can we put in an all-stock deal and the fact that tab low is taking a 100% stock deal and in my opinion that's a huge vote of confidence that it might be >> sales force which on a gap basis got profitable two years ago and i think that is correct. they're using their currency which has massively outperformed the nasdaq in the same 15-year period and they've been buying stuff up and they've been buying some of those not so sexy roll-ups for all intents and

purposes and they're the things that you look downstream and you say the writing was on the wall. >> i would push back with karen when she was talking about home depot and lowe's and can they pass along some of the price stuff. >> i do, too that's why i think there's inflation coming and that scares me >> the february and were weatherwise, as bad as we've seen across the country ever it was really, really bad. february was cold and had all of the different storms april a lot of rain and everything else and very cold so it pushed everything back, and that's why i think this spring time/summer will be very big for them and will people spend they've been spending other places and it's all been about quality and when we look at who's winning in any category and it's quality and the rest of the guys they didn't have their pricing right and they didn't get it quite right and now we have -- as does home depot ago slew of

price increases and home depot can better handle that than lowe's >> i've traded lowe's and i've been to home depot a lot in terms of an investment and i haven't seen any option activity that would draw me back into it, mel, but when i looked at lowe's i've never looked at the management and they've mismanaged things and home depot, it's execution and they're doing it in all different phases including e-commerce that continues to grow >> how do you packer in the trade war and pete, you like ups, for instance, if you believe there is a trade war going on and there might be a few moving around the world and because of trade wars and it can't get out of its own way >> it's something that you have to decide how big is this going to be and when do you think this is actually going to get done? i think there will be a deal and i don't know how long into the future it's going to be, but i think in the meantime, you have

a great dividend yield and the fundamental story is there and it gives you an opportunity to sell calls against an opposition like this in case it's to the upside >> i'm probably 50/50 that it gets done and there's been talk about them possibly banning iphones and i don't know how true it is and i would be sticking to the companies that are more immune to the tariffs and the trade war. that's one of the reasons we like software right now. >> dan, if you had your druthers, would you pass on this entire list? >> i guess my main point is this, the s&p 500 is up 15% on the year and it's approaching the prior all-time highs and it's rejected twice over the last 18 months and you say to yourself as we head into the q2 reporting season in july, and they just reported strong q1

results and it's not going to be the laggard and it's not going to be value that leads it higher and it will be the names that actually put up big numbers and microsoft is a great example and microsoft is probably the first mega-cap name that made a new high since we made that prior high in april and what did it do it literally rallied 10% in the last week and a half those sorts of names will power the market higher and it will not be the laggard >> it will not be value, dan says, karen. >> i own ups and fedex i've been wrong there. some of their trouble trade-related and some self-inflicted for sure, ups trades higher and the ups ebls poesh you are is more u.s. sent riblg, more so than fed. >> look at how quick the move has been since oil got to the point where it made a little bit of a turnaround just in the last couple of weeks. all of a sudden that's traded their 75 and that's short for a

massive company. it is all about what is the backdrop right now >> has it hit a place where they've got support, and if that's the case i think 81 through it quickly. >> stocks may be ripping through june, but our next guest says if you try and chase this rally look out below, and head of global fixed injure and u.s. equity ta equity technical strategy. it's a little bit of a good news/bad news situation when you look at the chart. so we'll start with what's happened one, the market traded in the broad pattern that it broke down in late may, particularly if you look at the trend following signals that were set at that point in time and a number of moving averages and the markets broke down through those at a time when the news story wasn't looking good where it could have generated downside momentum and one on the good news front, the fact that the bears weren't able to do a heck of a lot with that despite the news headlines after

the breakdown and the subsequent move and taking the market right back through that important inflex above the 200-day moving average and normally that would be associated with a good medium term outlook and it suggests that there aren't weak hands ready to panic out of the market and long that you're seeing the s&p and you can generate bullish momentum and on the flipside of that for jp morgan, 29.50 and 3,000 caps the market into the third quarter and we're getting in close proximity to that and most importantly, this is a headline-driven market over the months >> we have g-20 coming up and the trade story is in focus with what's been talked about on the show so with the market near 2900 and a number of the cyclically sensitive groups not performing all that well yet and things like copper semiconductors we are less inclined to chase the market here and we are seeing the market trade well for a few

weeks before we look at that to focus more on cyclically sensitive group ofs it came down in a virtual straight line as the trade headlines started to turn negative. yes, we bounced off of key support and there's no clear base pattern topost up against a technician to say for sure that this has bottomed and this could be a bear market bounce for semis and going after g20 for obvious reasons you want to see how they hit before we're trying to touch this group so what we'll watch as we move over the next several week is one, is the s&p going to consolidate and hold the 2800 level and two, watching copper crude,ing the semiconductor and likely that will be headline driven and maybe we have to move the objectives up to the s&p if the headlines go south, one of the things we look at is year

on year growth for semiconductors and it tends to line up well with global pmi and it is sitting above 50 on the manufacturing side to fully reprice semis for the 50-type number there's weakness that can happen here and we'll see how things shape up. >> concerns about the ten-year yield, jason, had been a damper for the markets last month and you're the perfect person to ask because you do technical strategy and the head of global picked income. so where do you see the ten-year yield going and what do you think this yield is telling us is it being driven by forecasts for the economy or forecasts for inflation? what's the key driver here >> we'll start with over the near-term and we have strategy to help us navigate pivot points and the last time i was on the show the market was trending strongly and the yields were staying don't stand in front of it yet and before they're set to fire sell signals. a couple of those sell signals have triggered over the last

week or so so tactically, we're actually in a bearish ten-year note position right now and that's been a question for the market for the first three days and it was utilities and consumer staples that benefitted from the drop in yields and helped lift the s&p 500 and our view over the near-term is now that the 10-year yield stabilizes over the short term and we get backing and filling over the 225 and 230 and that's where yields try to base out in march and again in may and they couldn't hold it and they sharply dropped to lower levels. that's probably, you will find a lot of treasury buyers on the retracement toward that level now as the expectation are the traits in the market because that starts to work its way into the economy and individuals that are bearish on rates going into that that maybe start to flip a little bit and looking for opportunities to buy and they'll be up to 225 >> great to have you with us thank you. >> jason hunter of j.p. morgan

dan? >> it seems that people want to talk about the level and if breaks below there, it will rec assets because when you think about how much sovereign debt outside of the u.s. is in negative territory and just interviewing larry kudlow today, he was talking about europe and the problems they have and how slow it had been to stoke inflation. if we get to a point where we are this far into the recovery ten years on, i've got to tell you, rates going back in that direction will not be good for the stock market >> so what i'm wondering right now is how much of this rally has been a head-fake you have gold outperforming copper and staples outperforming discretionary and defensive sectors are leading and personally, i think we're at a spot right now where the market will trade rangebound and sideways unless and until we get a trade deal >> you're cautious >> i am.

this is about as cautious i am, but i'm always long. always long. the fed is in a bit of a box and i think the market is already pricing in some movement of the fed down and a likelihood of the trade deal that i don't know i don't know how you can be that comfortable and karen hit it at the top of the show and i think you can still own this market and you have to buy that put protection that gives you the ability to feel good about it, mel and that gives you the room to make trades to the upside and regardless of why the market is moving to the upside and yet different rotations are that are moving us to the upside. every day we see opportunities that are oversold. we've seen it out of apple and out of facebook and those opportunities are there, and when they are, you can buy that protection right now as cheap as it's been in terms of the 15 to call it 21, if we even get as

much as 21 because we haven't been able to check out 20. >> beyond meat's worst day since going public as one of the lead underwriters is the stock dead meat sometimes an analyst says there is one that might be better off after a split and tesla, in a meeting that starts in just moments. there's one chart that could point to major gain ahead. we are live in tesim square in new york city. much more "fast money" right after this (osamah) cancer is... the ugliest disease mankind has ever faced. (henry) i thought it was unfair. when-- when you hear those words that you get diagnosed with cancer. (osamah) successfully treating it

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when you're not, you pay for data one gig at a time. use a little, pay a little. use a lot, just switch to unlimited. it's a new kind of network. call, visit or go to xfinitymobile.com. welcome back to kwoe"fast money. beyond meat, a big buzz kill, when it was downgraded from neutral to overweight. the analyst behind the call was on "closing bell" moments ago. >> i think what you will see is more iterations and it came out with the beyond burger 2.0 which is made with a little bit less protein and more ingredients to give it more quote, unquote, marbling and that's the kind of rnd that we'll see from them if someone wanted to copy the 1.0 and someone could have a better burger going forward and

i don't think this is about ip and there are many winners in the future. >> despite today's sell-off, shares of beyond meat still up 400% since going public, but could this be the end of the beyond meat boom karen? >> who knows pete and i were talking in the green room before the show and we were checking on a bar just to see well over 100%, so that's just crazy. you are trading on some other realm which has nothing to do with anything, than supply and dem and short dynamic and it has nothing to do with the ultimate sales are. i think we will see lots of competition and it's not that there are aren't other competitors. there are no other shares available, right of any public competitor good for the analysts for issuing a buy when the stock was 86 and then reiterating and that was three, seven days ago and

now four days ago so good for him. good for him for taking that buy recommendation off nice job trading it. this is insanity. >> the price target is still 120, by the way. >> nailed it >> we've seen this a little bit in this new ipo season that we've been in and the ones that actually have large shares outstanding and a very small float and it becomes a supply and demand thing i think the fever probably broke and if you look at what's happened, investors want to make sure that the story they told on the roadshow was very consistent and it was and it was better and you sucked everybody in who has been waiting to get in here so i think you probably have this thing back probably to a level back below 100 where the analyst community wants it so they can start doing their work on it again because right now it's out of whack >> i agree i love the health and wellness theme and i'm not sure it's this company and definitely not at this valuation and first of all, i don't like to eat health

anything and i prefer my burger any day of the week and with the valuation we saw right now and we saw one analyst downgrade and we'll see several more over the course of the next few weeks and months and that's not good for any stock's price and i think the stock's going suffer >> who is the underwriter on this >> j.p. morgan >> that says it all to me right there. >> they're amongst the lead. >> why is that a problem >> why is that a problem >> they're being transparent and showing a level of credibility. >> i think it is up 500%. >> they believe in more. >> they know as well as anybody, that's my whole point. so the fact that he pulls back, goes to the level where he has in terms of the rating and 120 is the price target, i think that says a lot about what they really think this is a $99 stock the day of earnings that suddenly goes to 183 and back to 125 and it's really, really interesting the movement we've had out of this stock, but i have to tell you,

when you say valuation or whoever brought it up. is there a valuation >> i don't believe the analysts talked about the 2.0 burger. less pea protein and more fake marbling that doesn't sound very attractive. >> this is a $7.5 billion market cap company which is an rnd factory, right whatever this trend is going to be going forward if this was a part of a big food company like alphabet likes to call it and we wouldn't be talking about it and unlouk shareholder value or something like that and it's a trading vehicle. >> for more on beyond meat go to cnbc point com i'm melissa lee on cnbc, first in business worldwide. here's what else is coming up on fast ♪ ♪ breaking up is hard to do ♪ >> yes, it is. but a top analyst thinks there's one big tech giant that might be better off broken up

we'll tell you the name. plus -- that's what wall street looked like after seeing one of the most frightening charts on the market we'll tell you what it is and why it has investors running scared there's much more "fast money" after this in these turbulent times, do you focus on today's headwinds? or plan for tomorrow? at kpmg, we believe success requires both. with our broad range of services and industry expertise, kpmg can help you anticipate tomorrow and deliver today. kpmg

welcome back to "fast money," the calls for breaking up big tech are getting louder as the committee is launching an investigation to silicon valley's former tech darlings and the fears are front and center going on right now. take a look at the head of instagram. >> if we split it up it might make a lot of my life easier, and it would be beneficial for me as an individual, but i just think it's a terrible idea and it depends on what problem

you're trying to solve if you're trying to solve election integrity and trying to approach issues like hate speech, and you split us up it would just make it exponentially more difficult particularly for us in instagram to keep people safe right now there are more people that work on integrity and safety issues on facebook than anybody who works on instagram. >> youtube warning that heavy handed regulation may do to the company. >> i think what we have seen is that a lot of times regulation is well intended pep people want to change society for the better, but it has all these unintended consequences. what i would say that's really important is for us to be able to work closely with these different providers and the different governments and be able to explain, you know, how can we really implement it in a reasonable way and how do we make sure we don't have unintended consequences that they don't think about >> breaking up is hard to do,

but that is not the case for alphabet and the tech giant is too cheap rid now and the stock could actually surge 50% if the government stepped in and forced it to break up so is big tech maybe better off splitting up dan. >> i think the big tech is up for the genie that's out of the bottle are you trying to secure an election system? those are two separate issues and if you regulate the companies and the sum of the parts and that's what the analyst is saying might be worth what they are and it will stifle innovation and some of the tech investors will line up and tell you if you do that then basically these companies are going to start buying smaller companies and they'll be once again, trillion dollar market cap companies with huge, huge moats. so at the end of the day i'm not sure what breaking them up really does and it probably makes it harder and more eb entities that have to be watched by the government. >> do you think that would gain value? >> i do.

the ridiculous pile of cash would be completely naked, right? they have to do something about that and distribute it among those companies and also, i mean, who knows what you tube would get, right who knows? who knows what waymo would get i think your point is a different one as to whether or not it stifles competition i'm just looking at it as a shareholder i think it would unlock value >> if we look at the big tech that's under fire not every tech company could break up so easily and apple would break up in terms of the services business and the hardware business because they feed off each other and maybe facebook the same way perhaps because of the platform that ad buyers buy into. i'm not sure what do you think? >> you have to keep that company together, but when we're talking about the sum of parts and valuations and if you strip out all of the different parts of google and it becomes worth

more what they're not taking into consideration is the synergies that exist from it being one company, right so as soon as you start stripping out the different businesses and applying the higher multiple to them, you have to subtract out the synergies as well. >> they're already, they have their whole pile of money losing bets and it's mixed in, right? you have actually a on eye think, you have a subdued multiple versus what you would have. >> because of the moon shots. >> yeah. >> the incredible thing for facebook is they have the money and all these companies have incredible cash force, right they went out there and mark zuckerberg they've taken the hit from -- and i remember sitting on the desk with you mel with how much money they would have from a regulatory standpoint and i think it's interesting that they've got the money to do it instagram, the valuation would be far higher than people would guess when you do the sum part of the deal and it's stillity

company that has this incredible moat so what do you want to do with these companies and are they really using what they've got against everybody else or does the competition just have to get better >> let me make one other point about facebook when you think about earnings growth and what happened since july of last year we know that earnings were expected at that point earnings were expected to grow 20%, 30% year over year on 30% sales growth sales are still expected to grow 35% in 2019, but earnings are actually expected to decline year over year so what has happened they guide it down and that was one of the reasons why the stock cratered in the second half of last year and analysts have taken their estimates down and they've started to spend money on what they think the future looks like this and this stock whatever action comes out and they're prepared for it, this thing could be a moon shot to the upside

>> i'm sorry, the pretext was going to be worse. what did we see earlier this year when the expenses were lower than what people expected and it was 15% than the straight line and they think that estimates are probably low enough for what is likely to come down the pike as far as regulation and what this company has to do and tim used to write these op eds this year left and right and it's coming for google and it is underperforming right now. it's a timing game and ultimately, estimates will come down in terms of google. >> grub hub heath up today after amazon announced it was dropping out of the food delivery wars and will it serve up more gains and elon musk expected to begin at the companyhahoer sreld meeting at any moment. we'll bring you the headlines. more "fast money" still ahead. always wants to hang out. sr and you should be mad your smart fridge is unnecessarily complicated.

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>> welcome back to "fast money," tesla shareholder meeting kicking off with elon musk set to take the stage any second now. phil lebeau is here to tell us the most important things to watch. hi, phil. >> robert denholm, the chairman of tesla is speaking to the share hoerls in the meeting and we expect to hear from elon muveng momentarily does he address the three topics and there are three of them in

terms of what people want to hear about from elon musk. what's the latest with the autopilot development. he's on the road by next year and a lot of people gave him criticism for that will he talk about that and whether or not the plan is updated and what's going on with the model y and any kind of guidance in terms of q2 deliveries and he might not say anything at all and you never know with the investor committee. sometimes you get a very chatty elon musk and sometimes you don't get very much from elon muveng and we'll watch the shareholder event and we'll let you know if he has are says anything that's significant or if he has a day when elon is quiet. >> musk has q2 deliveries in the leaked e-mail a couple of weeks ago. >> the e-mails come out and they help the stock in opportune times and being that they set record delivery, right >> record deliveries in terms of i'm trying to remember exactly if it was for the month of may

and in terms of their cadence and what they're expecting we don't know much about where they are as they start the month of june as far as what we can e trap late out of the e-mail about record deliveries and whether or not that portends that this is the ramp up that he's been talking about. remember, we've been down this road before, melissa, where they indicate that things are improving and they have deliveries that are ramping up and the numbers come out and it's not what they indicated or what many people extrapolated out of their e-mails >> if elon says anything juicy, keep us posted. >> we will. >> tesla's stock is rallying this week and it is still down 35% this year and this action reminds him of another big tech stock that ended up making a monster comeback, and author of "super consumer, a sustainable path to growth." what made you think of netflix >> netflix had a similar problem

as tesla has now they announced a price increase and changes to the product when there was a reaction and they lost 23, 24 million and the stock tanked 40% and it took them two years to recover and they went from 20-plus million subscribers to 150 million and what you see is the same phenomenon irrespective of what the quarter to quarter numbers say and the category has a huge tailwind behind them when i looked at the streaming opportunity back then, what i saw was the exponential opportunity was much, much bigger and regardless of what happened quarter to quarter and i see the same thing for electric vehicles and it's 2% of the market now and it probably has a tail wind to get to 20%. 60% of the grand's growth comes from the category tailwind so given that i think the long-term demand is not an issue here. >> are there places where the comparison, you believe falls short and i wonder if netflix

blames the same scrutiny or the concern about cash burn that is a huge concern that tesla faces right now? >> clearly, streaming and cars and if you remember back to what net fluks w netflix was like, original emmys were not there and it was b and c-level content that was streaming and it was a subpar offering and they were able to take pricing and that's what i felt i was in a virtuous cycle that i see there, too and importantly, a part about netflix that i thought was quite interesting was who they were compete against. they were competing against boredom. you work for eight hours and sleep for eight hours and. >> that's an easy win for netflix. >> tesla, their competition is against compromise because i've studied consumers for 20 years you have two tiecypes of consum,

people who buy fun cars and the people who choose functional now with tesla, you don't have to choose. from my date at bulk of the people buying teslas today are not necessarily luxury car owners before. some of them are prius owners. that's been going up quite a bit and what you see is the prius sales has dropped precipitously and there were 184,000 in the u.s. four years ago and now they're half that. if you calculate the sum total loss that prius has had over the four-year time period magically and coincidentally, it's that demand that's owl there and by my analysis the people who own honda accords and toyota cameras want a tesla and can afford either a $60 up-front cash piment or a $10,000. the vast madge oifrt car majori

are leased or financed. >> do you think tesla has a rough week or two weeks ahead and then to the moon. >> when you judge a growing category, it's like driving a car through the lens of a microscope looking backward. it's not really helpful. when you look at all of our concern and their grandchildren, will there be a tenth fewer electric cars? it will be the former answer and with that in mind that will be insurmountable >> eddie, thank you. hope you come back soon. eddie yoon, what do you think about eddie's analysis >> we had a chance to talk earlier and we were talking about the variables and the comparisons with netflix and netflix is one of the names i continue to be bullish on. tesla is a crazy name that it's almost impossible to get your arms around because of the tweets and dan and i were always looking at the buyer's world and 10,000 of the august 250 calls

were for over $2 that was someone putting down money, saying that is some form of recovery. now here it is up almost $30 from that points and i'm looking that the and this is a trade this is not something where i think long term i think tesla's going to scream right back to 400, but i do think this thing gets into the ranges and guy talks about the ranges all of the time and where support is and i think it's in an upward swing and you say it's unusual. >> i'll say this, and that was a succinct comparison and i don't think it makes a whole heck of a lot of sense to me and if you think of the pie that they've grown, i'm very skeptical if tesla has picked up the prius buyer and the average prius is twef 27 grand or something like that and tesla's new model 3 comes at 55 gs or something like that so obviously -- >> but those numbers were pretty clear.

>> no, they're not the pie has grown and prius is selling less it's not just a great reflection and i don't think you're having a prius buyer buying a model srns or a three >> in 2011 netflix had a mark cap of 10 billion. they had $200 million in debt and they had total debt to ebitda of 0.5. right now you have tesla at about 38 billion they've got almost 12 billion in debt and the total debt to ebitda is almost 8.0, so netflix wasible to make a mistake here and there. they have to hit a home run every time they step up to the plate. >> we'll give you more on tesla as elon musk gets ready to take the state at the committee and the setngerisomhi beneither the

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>> welcome back to "fast money," amazon taking its nim out of the food delivery race as competition heats up let's get to deirdre bossa with the details. >> even amazon fails sometimes four years after the company entered the food delivery space it is bowing out and this chart tells you almost everything you need to know this is a market dominated by a few big players trying to call share from each other.

according to second measure, a research firm that analyzes debit and credit card purchases, grub hub has nearly a third of the u.s. market followed by door dash and uber eats and postmates. amazon is grouped into the remaining 7%, barely making a dent in the landscape. the others have been far more aggressive in signing up big restaurant chains. door dash has wendy's and chipotle and uber eats has mcdonald's and starbucks, grubhub has taco bell and kfc. this is a cutthroat market where a few customers are loyal to a single service and it is better for the restaurants to boost their sales than it is for the food delivery companies who are accepting smaller and smaller cuts and not one of their competitors, but they're able to do so because investors are betting on the decline of at-home cooking and they're putting billions of dollars into the space and amazon has other initiatives like requiring capital and delivery of whole foods is now available in nearly

90 cities and the company recently made a bet on british food delivery company, deliveroo, leading a funding round. while this is a rare retreat for amazon, it may also be an acknowledgement that it may not be ready to make a huge big bet on another unprofitable business. >> thank you, deirdre bosa >> grubhub in my opinion is the pure play. uber is doing a bunch of different things you know, the runway is very long they have the ability to continue to build in tier 1 cities and expand to tier 2 and tier 3 the valuation for grub hub's extremely attractive and we really believe in the long term story. i mean, they've had two great quarters in a row. they're running five times as many commercials now as they were a year ago and they're really reaping the benefits of doing that >> i have to believe it's the consumer, right? five of them have a lot of money and the doordash and postmates

and uber eats has laid this out as central to the core of the business going forward this is going to be a really competitive market for a while and the consumer's going to win. >> which means companies will not make much money. >> we'll survive >> jeff bezos, your margins and my opportunity and he does not see a margin where it's going to be subsidized by vcs and subsidized by a let of public investors and it's a smart move to be in business. >> as the markets fear gauge telling a different story. we've got the details. we are live at the nasdaq marketsite in times square more "fast money" coming up. if these industrial plants had technology that captured carbon like trees we could help lower emissions. carbon capture is important technology - and experts agree. that's why we're working on ways to improve it. so plants... can be a little more...

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really? really. that was easy. yup. plus, with two-hour appointment windows, it's all on your schedule. awesome. now all you have to do is move...that thing. [ sigh ] introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started. welcome back to "fast money," the stocks rallied to within reap of all-time high and even though the vix is still heading higher, is wall street's ear gauge something to be afraid of mike ko is in san francisco to brake down the options action. what do you say? >> it's interesting. generally speaking when the market rises, we will typically see the vix index which is a measure of implied volatility in the market fall. we have seen some situations recently and where the vix has gone up. is that a cause for concern?

what we need to do is put things in context and the long-term average for the vix going back to 1990 is 19.2. so far this year the average has been about 16. that might give us the perception that it's elevated and what does that mean for returns and if you look back over the course of the last 30 years or so and the four-week return for the s&p has.76% and that's significantly higher than the level that you typically see over four weeks when it's lower than 16. so actually, sometimes when you have this slightly higher volatility it and it can be higher and that might make some sense for us and the reason for that is when the market is less complacent you might have situations when you might have these short term oversold conditions and the market bounced back actually having a vix level around here might be healthier than not for the market. >> i would say one thing that a

lot of the activity in the options market today in the vix were july calls. the two most active strikes and when you think about it and they're a dollar cheap in a way and we were talking about it earlier in the show and we had the uncertainty about the g-20 meeting at the end of june and that could spike volatility. >> let's not call it the fear index and it measures what movement should be so 16 tells us 1%. that says it all and that's about the movement we're getting each and every day, whether it's up, down or the intraday it's bigger than that >> serious man spplaning on that, dude you're the father of daughters, you don't talk to the ladies like that. >> i'm want afraid of it >> man karen? >> yeah. no, i understood every word that pete was saying. pete and i talk about this a lot. i like -- i get mike's analysis saying we might have a hire

outperformance, but if you're a long orienter and you have to be long and i'm always long i am nervous about this market so i want to own that protection i think it's worth it. >> all right t r more options action check outhe show on friday 5:30 eastern time up next, final trades. 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 so, every day, we put our latest technology and unrivaled network to work. the united states postal service makes more e-commerce deliveries to homes

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tesla ceo elon musk taking the stage. here is the headline moving the stock in the after-hours session. musk said there is no demand problem for tesla and the stock is up almost 2% in the after hours. this is one to watch throughout this evening to see how this stock trades tomorrow morning. in the meantime, time for the final trade, to go around the horn. >> dan and i have opposing sides of this thing and old one sitting next to me, tesla, giddy up going to 230. >> palo alto networks. siren security is not going anywhere they had a great quarter in my opinion. the stock shouldn't be trading down so we're buying it. >> also kate and william are graduating tomorrow, the royals as we call them. congratulations, guys. >> go lions! >> go lions!

>> we're not really on the staple pa stap same page. carter worth laid it out for us on june 3rd. >> that does it for us we'll see you tomorrow here at 5:00 for more. meantime "fast my mission is simple, to make you money. i'm here to level the playing field for all investors. there is 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." i'm trying to make you some money. my job is not just to entertain but to teach you. i know today's action didn't feel great, averages started real strong and then rolled down closing down about 14 points.

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