floyd killed him this wasn't policing this was murder. the defendant is guilty of all three counts, all of them. and there is no excuse >> the prosecutor insisted he knew better, he just didn't do better then after a break, we heard from chauvin's defense attorney who spoke for nearly three hours. the judge at one point interrupted him to give the jury a lunch break. the defense tried to sow doubt over the cause of death. suggesting drugs, heart problems even carbon monoxide from the patrol car exhaust may have played a role. the defense also insisted the use of force was reasonable because george floyd was big, appeared under the influence and fiercely resisted getting in that patrol car. >> mr. floyd was able to overcome the efforts of three police officers while handcuffed

with his legs and his body strength the use of force is an incredibly difficult analysis. you can't limit it to 9 minutes and 29 seconds it started 17 minutes before that 9 minutes and 29 seconds. this was an authorized use of force. as unattractive as it may be the state has failed to prove its case beyond a reasonable doubt. and therefore mr. chauvin should be found not guilty of all counts >> you a ho a live look inside the courtroom now in rebuttaling with, the prosecution distilled the case by saying derek chauvin didn't let up and didn't get up. right now, the judge is giving final instructions to the panel. after which they'll likely begin deliberations. cnbc legal analyst david hend eshz said neertd side did a

great great argument he said it should teach the law and apply the it to to it fax. in this case that didn't happen. here are the three charges the jury lass to consider, murder in the second degree, murder in the third degree which carries with it 25 years, murder in the second as you can see up to 40 years. and second degree manslaughter is the third available decision here which would carry up to 10 years in prison. the judge says they'll deliberate from 9:00 in the morning until 9:00 at night central time through the weekend if necessary once there is a verdict we'll bring it to you live from the courtroom here on cnbc and we'll have full coverage on the news ton and each week night 4:00 eastern right after jim cramer and mad money right now time for fast money on cnbc here is melissa lee. >> thank you, shep you heard i'm melissa lee. this is fast money guy adami karen finerman and dan nathan tonight on fast after the after hours action shares of united and ibm both stocks on the move ibm's call

untd way we are on it plus tobacco stocks smoked the reports from the white house sent this trade up in flames the paris trade, the chart master lays ou moves to capture the upside in the mechanic carter werth straight ahead. starting with the story on tesla, the stock falling 3% today. two federal agencies launching an investigation let's get the details from phil lebeau. >> still more questions with answers with the crash you sought pictures there. let's set the terms in ferms of what happened over the weekend this was a crash killing two people in spring, texas, just outside of houston what's interesting is that the police at the scene said, look, there was a person in the passenger seat and there was a person in the back seat. there was nobody in the driver's seat which immediately had people saying how did this crash if there was nobody in the driver's seat? was autopilot engaged? by the way, it's unclear if it

was engaged. so nhtsa, the national highway traffic safety administration is opening a special crash investigation into the accident. nhtsa has launched 24 probes of tesla autopilot in the past where they have looked at crashes and so forth there have been no recalls of autopilot technology now, tesla has amended the technology over time and has been engaged in conversations with nhtsa but there have been no recalls drivers are expected to stay engaged. nhtsa said that repeatedly elon musk and tesla have also said that. at the same time critics say that elon musk has suggested it's not long before we have completely self-driving vehicles over the weekend tesla released its safety report. and in that report ee loan musk said, look, if you look at the autopilot, it has a lower crash rat, ten times lower than the average vehicle. keep in mind, any driver assist technology will lower the crash

r rate impaired to every other vehicle on the road where it's you and i driving, melissa, because humans make a lot more errors than the technology assisting drivers to keep them in lanes, prevent collisions, et cetera the chief of the ntsb, robert sumalt has been critical of tesla in the past. he says the company shouldn't be testing beta versions of software with people driving and testing out the beta software. it's unclear if there was beta software in in tesla model s it's a 2019 version. again, still unclear if autopilot was engaged at the time of the accident one last thing regarding tesla, look at this video this comes to us from shanghai auto show. and the reason it's getting attention is because there was a woman who got on top of a tesla, wearing a shirt saying that tesla's brakes are unsafe. it's getting attention for two reasons. one, you don't see this very often in china, let alone at the

shanghai auto show which i've reported from several times. the other thing to keep in mind, this woman has done this other parts of china this is not somebody inspired for the first time to stand up and say i see a wrong and i'm protesting about it. she has been videotaped and it has been documented she has done similar types of protests in other parts of china nonetheless, getting some attention online today melissa. >> supposedly her father was involved in a crash that was in a tesla. so that's what motivated this woman torg across china and protest. >> sure. >> but in terms of the self-driving feature beta tested that's marketed as full self--driving. i would think this they would come under scrutiny. >> correct. >> for what it's called. >> that's what critics are saying, melissa. critics say you saulo call it full self-driving. elon musk was on joe roguen podcast a couple months ago and said we're not far from seeing autopilot get to the point where you don't have to drive unless

you want to. now, he didn't say, look, you can take your hands off the wheel and never have to drive again. but, the critics are pointing out that you add the title full self-driving, you see the videos that are out there you see a company that in the eyes of the critics is not doing enough to prevent drivers from not being engaged, all of that is in the mix of people saying, something should be done by the federal government when it comes to tesla's autopilot the flipside of that real quick, the federal government will say, if they're telling people -- drivers to stay engaged and drivers are not, and drivers do stuff they shouldn't be behind the wheel, it's not the technology that's at fault. >> right. >> it's the driver. >> they cya so to speak. >> you bet. >> thanks, phil. a lot of questions surround being tesla, a stock some might say at 714 bucks a share is priced for perfection almost what do you think? >> it's interesting. i mean, used to be if you would say anything even remotely negative about apple, the

vitriol that come back would be astonishing. tesla has taken over the crown i've seen it firsthand a number of times not least of which on thursday when we opened the show with elon musk and the tweet about game stonk and those things. appear the feedback i got was remarkable i ms. henning that because we try to stay agnostic and don't let the doing ma come into play. i thought this was a stock that traded extraordinarily well today given the news how do you trade the stock which is all yee we're here to talk about? i think the march 5th low was 539 and a half and all time high 900. the close is a 50% retracement of the move. you trade it against the 715, 720 level. let the market decide you fop i think it's simple. say stay long above 720. we're there now. and on the downside if you break down you look for reentry coming in the form of 650 or so if you

do the math. >> part of a nhtsa investigation into the crash and in the past crashes is what happened to the car after the crash? because it bursts into flames as it has happened before dan, i would imagine this is an ongoing issue, this is not the first time we heard of this kind of response in a tesla car crash spre specifically i don't know if you think this is a tesla before me this is the nature of a battery operated vehicle. >> it seems like before we were focused on the autonomous issues and crashes interest it seemed to be once a month or so there was the issue about the batteries launching on fire. i thought elon used to deal with that well when you would look at fires in other cars that didn't have batteries, the instances of fires were far less. we know they own the ev space right here in the u.s. every time there is a battery fire it's of specific interest to me, listen, they're doing the right things probably. i think elon talks up the

autonomy and the capability but the company is very specific about what you should be doing with that. you know, should that be regulated? probably a lyle tighter than it is when you see the instances of people in the back seat or something, you know, they can't regulate that. i will make one point. tlvts a judge from consumer reports on the "closing bell" who used work for the nhtsa. and he said there is other auto makers like cadillac whose operations do a better job to wake you and touch the wheel and engage with driving. that could be the issue where the company should just get ahead of that and figure it out because he'll he will they'll have less issues with that. >> maybe there is a week to wake you. but tim we showed the video in china because the video has gone viral. part of the dialogue surrounding that video is to not -- not buy teslas, to buy other ones. x pang, neo, they are presenteding at the shanghai show as well operating in china

they are chinese champion state companies. there seems to be sufferings assumption that teslas atlas has only. >> we've talked about the competitive land escape opinion gm mass a gav in china haste that's been successful and the sense that tesla is the only game in town and of course at times the china story for tesla has been a marilyn driver, including a factory, including, you know, the -- the demand there. so, look, i kind of fall in line here with the two things that have been said ahead of me one is that tesla is an easy target and so i think the competitive landscape is certainly going to focus on that. i think tesla, the stock, you know, this is -- i think there are two different things i'll leave the safety issues to those that focused on that i think the stock pat 714, defy talked about a key level it's holding the uptrend from november which has been an extraordinary uptrend even for tesla on a relative bass

yet you had a bear cross a couple days ago. it's a very important level for the stock. valuation makes no sense i've said that for a couple of years and i've been very wrong on that. but at some point you talk about the competitive forces and you talk about charts and talk about high multiple tech tease been under some pressure, those are the things i think you focus on. >> let's get to the broad are markets because stocks pulled back from record highs all three averaging post-ing losses s nasdaq falling more than 1.1%. following. semietf down more than 2%. swe saw big also losses from names like nvidia and equal come karen what did you make of the action today it looked worse as around noon and then in terms of the tech pullback and got better. >> yeah, it -- it was more subdued by the end of the day but certainly ending up in the red. i don't know, it seems like a little bit of a pullback, not a big deal, certainly if you step back not a big deal given what

the market has done in the last few weeks. "fast money," i like that we are switching over from the more macroeconomic data, i think we have very little coming out in the next couple days and switch to the more micro, stock specific data. we'll see from all kinds of companies j&j lockheed and csx across the spectrum of the key to see how is the recovery really going and then what are they looking -- what do they think they will see in the business the rest of the year it's a little bit of a pause if you step back it's not that big of a move. but the vix had gotten low spiked up today. i'm not surprised that the vix traded high are. i won be surprised to see it trade a bit higher still but i'm optimistic on earnings for the quarter. >> dan you were zeroing in on the chip weakness not only nvidia with questions around the a.r.m. acquisition but doentd if you heard dan niles on the -- we are abuzz

over the chip shortage but we are seeing building inventories in the supplies for chip phones that -- chips that go into phones i tried to say and he is shorting those names >> yeah, and listened, follow dan niles. he has been doing that cyclical trade in chips for like 25 years. and probably doing it really really well. i think it's important to kind of think about if the narrative in front of su supply constraint start thinking about what comes next, that might be that build, and especially if we don't see the 5g supercycle that a lot of people were expecting, if a lot of the chip demand is in industrial and that kind of wanes the next couple months as it gets filled. that makes sense one last point look at the nasdaq composite it's the only major u.s. index that has not made a new high since, i don't know, february or something like that. we know the russell had made new highs. and then it basically was unable to do so over the last month or so the s&p and the dow seem to be

narrowly making new highs every day the last few weeks the nasdaq composite has not it looks like a textbook guy adami double top the a time the navers are switching and high value and high growth names and then on things we thought supply constraints would give the tailwind to chips but maybe smart investors are thinking oisz. >> guy. >> i miss those days certainly lax that way i miss the days of textbooks i long for the days when ultd bring six textbooks and your arm would be sore by the time you get home obviously, a -- a buy gone era as they say i'll say this about chips. you mentioned the shortage, interesting. all the chips ex-n riddia. they all seem to top out just around the rhetoric around the chip shortage got loudest. amk, my favorite has been

sideways to slightly lower since i power pivrpd around 83 the one i worry about would be a name like texas instruments which on valuation doesn't make sense because they don't have earnings growth to back it up. earnings is going to be fascinating. amd my favorite has not traded well the last few weeks. >> tim, what do you think? >> well, there is a few points from today one is the dollars 50 backups is weaker is now 25 weaker you've had copper almost -- almost near fresh highs. you have oil back up near the highs. and i think you have a dynamic where some of the trades, again, it looks like some rotation to me semis have underperformed the s&p by 6.5% in the last ten days notable. and it gives room for other trades with the weaker dollar, rates that are largely sideways. although you had a small move higher in yields today, that is the notable, also that archegos

strips dplevt discovery lower, tme lower, iq lower. and it tells you that we're not out of that in the system. >> well stocks pulled back from all-time highs, the chart master is laying out the ultimate pair trade to catch upsides carter werth to break it down. hey, carter. >> how are you well, it was this morning's report was just simply getting long health care relative to the mechanic but before we look at the charts it's important to remember when things get loved it's important to go the other way and vice verse aa everyone loved tech in to it autumn and hated industrials and financials and energy now it's the opposite they hated tech. what's hated right now is health care look at a few tables and charts. the first it's a tree-month simple -- you see it there, the three-month performance spread 10% plus for the market. the sector up three. look at the next six months nothing you don't know but it's good to stair at the numbers

six-month performance. doubling, right? i mean the sector up 14, s&p up 22%. nine-month performance, 21% for the sector, 48 for the s&p so the question is, when you get a spread like this, is it worth calling it as so bad it's good take a look at the next chart, all data chart back to 1981 when gic sectors were created or changed before the different gnomen clat yur. the bottom panel is relative performance of the health care sector to the s&p. we've come down to a trend line that the sector bounced off to the penney every single time now, wray going to make the bet that's going to happen again if it doesn't, we'll take measures but that's the bet. one more chart, this is simply the -- the etf of the spdrs. it's a conventional rising, ascending triangle doesn't matter what you call it. it just broke out.

keep in mind this in terms of valuations for those who care, the pe spread with the s&p right now is is the lowest since '09 the price to cash flow spread, the low of the since '07 the surprise to sales spread lowest ever. sometimes value traps exist but we think you get offense and defense from health care the market is going to keep going and going health care will participate it has a lot of juice. if it does not there are defensive characteristics in health care serving you well. >> is there subset in the the xlv that you think fares better than others pharma is 37%. but health care equipment and supplies, very diversified sort of basket. >> right with domination in the big pharma names and things like united health care we like the managed care bet that's a heads you win tails you win area to be into. >> carter werth of cornerstone macro. karen i ask that question for you since figure big pharma

recently a favorite trade. >> yes, i'm used to having things in my portfolio that are so bad they're good or ugly they're cute stuff like that. as tim likes to say when things go from terrible to bad. that's when you make money i don't think it's that terrible but the valuations to for big cap pharma relative to the market are really cheap. it's a big position "fast money" spread out over a number of names. but i think there is a lot more to go. and i'm very glad carter brilliantly thinks so as well. he might be mbue right. >> he is really smart since he agrees with you. >> really good. >> tim what area of health care do you like right now? >> tim, sorry. >> that was to me. yes, no, hi, how are you i think megacap farm aivr, the combination of value balance streets and construct i like j&j and all the noise around the vaccine -- i don't mean to be insensitive to real health dynamics at work leer. i just mean that's not moving the needle for the company in the long-term flaur did we think

it would it's about a pharma pipeline overall. when you look at medical devices and some of the consumer products businesses, to me this is the most defensivive of the megacap pharma but like karen i think these are very easy valuations to get comfortable with and stay with even threw difficult periods in the market. >> yeah, guy, i thought it was interesting that carter says managed health care specifically is the area he liked. >> yeah, i mean, look at some of the names that have been on fire and you talked about some of the devices as well. medtronic within a whisper of all-time high. unh made all-time today or late last week. even the hospitals wento ten et health care left for dead in the early $23 area look at the move that stock had since then. i'm with him in the kxlv closing around the all-time. i'm with carter on this one. if you look for the underloved big cap pharma nam, lily has pulled back, deeson day i think

eli lilly the best in breed. >> come up the safety warning on peloton that sent shares skidding, the details and how the trader play the fullback and later crypto kryptonite was it a warning shot or more selling ahead? we have that and much mo wn asmoy"etnsrehe wealth is your first big investment. worth is a partner to help share the load. wealth is saving a little extra. worth is knowing it's never too late to start - or too early. ♪ ♪ wealth helps you retire. worth is knowing why. ♪ ♪ principal. for all it's worth. lately, it's been hard to think about the future. but thinking about the future, is human nature. at edward jones, our 19,000 financial advisors create personalized investment strategies to help you get back to your future. edward jones.

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welcome back to "fast money. we have a news alert on oatly. let's get to leslie picker with the details. >> hey, melissa. oatly finally for an ipo in the united states, the swedish maker of oat milk and oat-related products set to list on the nasdaq upper back under the symbol otly pmt they filed with $$100 million place holder here. but we reported back fl january they were going public and looking to raise about $1.0 billion at the time so you can expect that place holder to increase substantially by the time they actually go public morgan stanley, jp morgan credit suisse leading the offering. saying it plays into several key trends number one the sustainability trends investors wanting to invest in companies do good by the planet and so forth also the minimal yanlial gen z

demographic are huge consumers of oat milk. their financials, very impressive on the top line you've got more than double top line growth year over year in 2020 to about $420 million. although still unprofitable at this time. of course there is also the nascent starbucks partnership that they have to include oat milk in starbucks across the united states and china. as for risk factors, they note they have a history of losses, maybe unable to of a and sustain profitability, also some issues potentially pertaining to the supply chain which could become a problem for them given the limited availability of oats as they put it, melissa. >> the limited availability of oats i guess yeah, the market -- there is a limit at some point. >> a high commodity. >> thank you leslie. not to make light of the potentially block bluster ip with a lot of celebrity backers. karen, i think you're a consumer of oat milk? >> well, there is a ton in my

house. i mean, i use it occasionally as a last resort and it's fine. but, i mean, it's the beyond meat of what casamigos was to tequila this was to milk there is no doubt the sustainability push is real. that's a secular trend and vegan is well or vegetarian. this would be vegan i -- and i mean, millennials, put it altogether, i think this is going to be superhot i don't know the valuation yet i don't know the street cares about losses in the short-term then one day i think somebody buys them out. >> i think you're right in terms of the blueprint of this is like a beyond meat. and it's interesting, they mentioned the limited supply of oats that was potentially a bottleening for, the limited supply of protein. how do you think the ipo would be received, dan nathan? >> i think well -- mel -- or

karen makes a good point ultimately we have seen the unbundling of all the consumer products then we are seeing the re-bundling of them. they'll make a nice part of some broader product company's portfolio at some point. but if i'm trying to maximize shareholder value, i want to get to the public markets. to the public markets when they are superhot and don't care about valuation. and it looks like oatly on the path. >> all right more ahead on "fast money. here is what's coming up next. >> announcer: crypto crashing, coming up next the traders are digging into what had bitcoin going bust over the weekend. plus, a bull case for disney barrens saying this stock has the magical toh.uc we have that and more when fm returns. kes care of yourself. so why wait to screen for colon cancer? because when caught in early stages, it's more treatable. magical touch. we have that and more when fm returns. ns saying this stock hae magical touch. we have that and more when fm returns. ons saying this stock hh magical touch. we have that and more when fm returns. even in early stages. tell me more.

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welcome back to "fast money. we have a bitcoin alert. the crypt ocurrenty crashing over the weekend before rebounding slightly today. let's get more on the incomes crypto with najah roberts found are and ceo of crypto blockchain welcome, najah good to have you with us. >> i want to get more details or your exchange but first your thoughts on bitcoin as well as the coinbase ipo. >> absolutely. well one of the things i can say you just spoke about the fall of the price of bitcoin, i think this is a prime opportunity for individuals to get in and get much more of the action. because the price has fallen quite a bit, 20% and so it allows for us to purchase satoshis. for those who doesn't satoshis is the smallest unit of bitcoin,

just there are 100 pennies there is 100 million satoshis in a bitcoin. it's exciting times in my opinion. >> your exchange focuses specifically -- or targets black investors. i read something very interesting, an article just last week. it cited some harris pole information saying that blacks and hispanics are more accepting of cryptocurrencies and trusting of it than white americans i wonder why you think that is and how that's helped new building your business and going after the audience. >> well, this is the first time in history that we've been able to actually control the narrative. and bitcoin teaches self-sovereignty, teaches really being in control and it just -- it offers hope in changing the trajectory of the community, and specifically our families individually. and so when we're able to have that type of power and control, it's something that gives us

hope and i think a lot of individuals have been looking for avenues that they can begin to invest in, that they can take a part in and have some sort of stake or stay? the matter and so combine affords us that opportunity that i think everybody is really excited about. >> and coinbase, what do you think of this ipo? do you think about what your exchange is worth? i know you're not necessarily thinking of selling it or ipoing or anything like that. but what does this mean to your business. >> i think it's an incredible move because from the beginning i think most of us in cryptocurrency have sought to see things that valid fi or make the industry valid and that ipo coinbase has done exactly that individuals that may or may not have taken notice in the cryptosurnt currency space are saying hey, wait a minute there may be something to this, because here we have an exchange

that is actually embarking on a phenomenal opportunity for the present themselves to the mass world. and so this is a huge step in our space. and i'm very happy that coinbase has taken the leap and i think it will prove to be a great one. and i think anybody that's involved with either bitcoin specifically and/or coinbase will see the type of returns that they would like to see. and i'm excited about that that as well. >> najah, greats to have you with us. thank you so much. good to see. >> you absolutely. thank you. >> najah roberts karen, i don't know what you made of the pullback in bitcoin. last week we dared to say when bitcoin started to pull back on the coinbase ipo we dared to say does this mark an intermediate top? we got lots of asset and responses on twitter, et cetera, et cetera. what do you think? right i guess at 64 and change that was the morning of bitcoin

coinbase direct listing that is the short-term fop it was interesting to me how precipitously it fell with not a lot of volume within 20 minutes down maybe 7,000 or so i'm i'm not quite sure call the bk ball are he thought it was a lot of noise. potential regulation anti-money laundering regulation, but also just stop losses that kicked in as people have -- had -- as we had more retail investors and more margin accounts that, you know precipitous loss trying reported that i don't know i don't know what to make of it except that pullback this is not a giant move considering what's happened over the last year, even the last three or four months still, not a giant move. >> yeah, what's interesting, though, is dogecoin went in the opposite direction, today, dan ahead of what is being pro

claimed as doej kind 4/20 today tomorrow which it thought was cannabis day but i guess doej has taken over with the celebrity backers even the sneakers account is tweeting about a doej, a dog on a snickers bar the tim horton tweeted about doej as well what duj of this hype? >> i think it speaks of where we are with this sort of craze. you put the cryptocraze. there is a lot of people think this is a movement that pastor guest is talking about emboldening different groups of people who have had not accesses to financial opportunities or markets. i fear what we are seeing right now are a ponzi, like doej is a ponzi, nothing more than that. the white paper put that up against satoshi's bitcoin white paper and you wouldn't wipe something with it do you know what i'm saying? when i think about what's going on here there is multiple things going on i think the opportunities when you see these sorts of selloffs based on leverage, based on some

headlines, based on the fact that we got overly excited about too many things, i think it does present opportunities. listen, if you love ee therm and everything built on it and you think that's the way to play it. you saw it from go from 2,500 to 2000 overnight be on the good exchange have good stop orders good to cancel orders and be ready to play. but i would -- to me the alt coins are the alt coins and there is a couple ways to play. >> all right elon musk responding to the autopilot crash phil rhee bow lass the details phil. >> a couple of tweets from elon musk he says first of all data logs recovered so far show autopilot was not enabled. remember we are talking about the crash over the weekend in spring, texas, just outside houston. not enabled. and this car did not purchase fsd, stands for full self-driving, the feature that allows you to have autonomous or autopilot on your vehicle. more over, standard autopilot

would require lane lines to turn on which this street did not have that's elon musk basically saying, you think this car had an zen on autopilot? think again. the data logs say there was no autopilot engaged. nor did the people who purchased this car also purchase full self-driving technology as well. so, that is the latest on the crash involving this tesla model s that killed two people down in the houston area melissa, back to you. >> thanks, phil. looking at the chart of the day's action backup. but after hours shares are high by 1.5% on the back of this tweet from tesla coming up peloton hitting the brakes as regulators put pout a warning on the safety of a product. we are breakinth o dn g atneow next when "fast money" returns

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welcome back to "fast money. shares of peloton dropping today, the u.s. consumer product safety commission issuing an urgent warning to stop using the peloton tread plus coming after the investigation into the death of a child turned up dozens of instances of injuries peloton calling the advisory and misleading trade oh saying the tread mills are safe when safety recommendations are followed jp morgan pout putting out a

night saying buy any pull barker related to the tread plus warning product. a lot of analyst came out defending peloton. dan you got one in the background i got to go to you on this your thoughts. >> it's obviously a serious situation, the thing about the child is horrible. but, listen, i have two cats and a little dog running around opinion and i actually have to lock them in another room for the fear there is something that has to happen here with the design of the product. it could be as easy as something putting a barricade around it. but when you have human death like that it's obviously to be taken seriously. the other issue i ms. henning as it relates to peloton, know they are buying prekor, making a lot of these devices this is something that i think investors all of a sudden now we have to worry about regulatory issues and tim's cannabis or in bitcoin and stuff like that. now you have to worry about them in tread mills, tow. >> the smu is slightly different involving human death, specifically of a child. whenever that happens our hearts go out to that family and we

really think hard about whether or not we're going to use that product again. tim, i think this is about a liability issue. what will it cost for peloton to get its reputation back, to fix the problem, fix the future, peloton sending out of its warehouses. >> well, look, i can't speak to the legal extent and the liability here i'll say that peloton has gone out of their way to build a brand that is as high a association with innovation, leading edge and home fitness. and i think as much as this is a -- clearly a -- add covid accelerated trend, i think this is one that stays with us. i don't love the valuation and peloton is 35% and 65 sessions or something. i think it's trying to find a base but this is the vertically integrated player that is innovative on the hardware side, has a software model pan recurrent revenue model. i think it's in a sweet spot right now. it's not losing this tailwind. it may not be as extraordinary we need to figure out the

multiple this is tragic, tragic, news i think the market will separate the difference here. >> yeah, we talked about all the analysts defending poll tennessee. guy with a 7% pullback, would you. >> yes, we go back to october when the stock was making all-time high. i want to see in the 130s traded below a 100 but november 5th 1091.90 and made new all-time high off that. you trade on the longside kbens the 1092 level jp morgan note was accurate, irk. obviously a tragedy without question we're not speaking about that. we're speaking about trading the stock. into earnings on may 5th you stay long against 102. >> mink up ibm on the move in after hours. results call wrapping up we'll bring you the highlights and later gearing up for netflix earnings taking a trip to the options market for a setup "fast money" is back in two.

welcome back to "fast money. we've got an earnings alert for you on ibm deidre bosa has thedale. d.bo. >> melissa green schutts at big

blue appear a positive year over year revenue growth, only the second in levies the question remains is this another blip or can ibm sustain it? wall street has been awaiting more details on the spinoff of the information services business recently named kindrep the cfo said on the call it's on track to spin off by year end and productivity actions are leading to gross margin improvements now, just a moment ago, bernstein analyst tony sack nagy always huss great tough questions for the company. he prepped cf on an as ai company. asking what roles does watson play noting it wasn't mentioned on the call and asking for clarification on reports that watson health was exploring a sale krish that responded saying that watson, quote, remains critically important to us to be absolutely clear, watson is the brand product name for our ai capabilities

melissa, it's also notable this quarter, though, that capital expenditures, if he they will 30% in the quarter this for a company saying it competes with amazon and microsoft in the cloud keep in mind that it's capex was way employee below that of the pierce more active in a and i can ibm be a contender here in cloud and ai a question coming up every quarter. >> deidre, thank you, deidre bosa zbi be i will ask you the question deidre started the report off with. is this a blip or could it be the start of something sustainable? >> well, since march of 2013, every one of the these has been a blip you look this is a $220 stock and citizens then literally eight years of lower lows and lower highs. and i think that's one of them now. i'll say this, the quarter was good gross margins came in north of 47% better than the street was looking for. but, you know, we have seen in movie before, i think.

the caveat is if you get a close above 141, i think that changes that entire eight-year well defined downtrend. i just don't think you see that, mel. >> dan, what do you think about the turn around what some might consider a turn around >> well, it's interesting, mel, when they report reported the q4 was the down 10% like that supposedly this is a good report, good guidance, they endorsed the full-year view and the stock up 3.5%. i think investors are looking for any opportunity to get out of this. the thing is a roll jum. any of the cloud growth coming from the red hat division they have legacy products and businesses that don't work to me this is ultimately broken up i suspect. >> coming up a stream buy. options traders bet on big things when netflix reports after the bell he breck down the action when "fast money" returns that building you're trying to buy, - you should ten-x it. - ten-x it? ten-x is the world's largest online "fast money" returns ak down the "fast money" returns

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so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. welcome back to "fast money. we are gearing up for netflix earnings the company reports tomorrow after the bell in options traders are betting the stock could be in for a major move higher. let's get the action with bon within. >> yes, the setup is constructive for netflix into

the earnings release with calls on out output puts 6.6 to 1. volumes are slightly elevated from what with we see on average. options imply a 7% move in either direction between now and friday's ex-ry and the 23rd. compared to the average move that's about 8.5%. the notable trade jumping out to me, the most active option about 8 now of the netflix marp 23rd exfree in friday, 60 oh calls bought for a price of 4.30. putting the break even at 604.30 109% of current spot this is a name moving quite a bit on earnings. this is but this is an aggressive move particularly on short dated options. >>s in a tech stock today tum that did well. in anticipation of earnings. what do you think for the quarter? >> look, i think the comps expectations are low i think they got them back depend -- i read piepers they have them back to 2017

levels the bulls will i say the stock has done nothing since july of last year. the the bear will say the the stock has done nothing since july of last year. for a guy that's been very, very vocal against the valuation on this, slowly, slowly, the company is earning itself into a more respectable valuation upon '22 at $13 a hair it's 42ish wsh 43ish so look, the would you rather, which you -- i'm going to stop right now -- it's not disney i didn't mean to would you rather myself but i just did no, ultimately i think this is a case where there is a better way to play streaming. and we'll call it dis. >> kaern, why don't you chaim in on that. i'll just throw it out there you guys do whatever you want i'll sit back at headquarters mind mine my own business. >> do you want me to ofine on the self-would you rather? i don't know how to control it

>> but in terms of, like -- i know you don't netflix because of the valuation but. >> yeah. >> do you think the streaming has a reason to be in disney >> i do. because before what was -- what was a weight was, you know, parks and cruises and hotels and all of that will become a tailwind so it does not -- it is not all on streaming and sports opening as well pl so espn i reluctanty -- yes qb disney much better valuation streaming. >> bon within nice to see you. be tune in the full show friday 5:30 p.m. eastern time up next, final trade ♪ ♪ ♪

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time for the final trade let's go around the important horn tim. >> i think the pause in the bank sector after very strong earnings is the one that refreshes as we have seen multiple other periods bank of america. and i think rates moving higher. >> karen >> yeah, i love carter's trade, the xlv gives you everything pharma, some insurance, some lab. it's all in there. xlv. >> dan

>> yeah, they're good spacs appear bad spabs ipoe that's a good spac. you buy it into the low teens. >> guy >> nasdaq in earnings on wednesday. >> all right thanks for watching fast see you back here tomorrow at 5:00 mad money with jim cramer starts right now. >> pie mission is simple, to make you money, i'm here to level the playing field furor al investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm trying to make you money. my job not just to entertain but educate and teach you. call me or tweet me @jimcramer listen up, we got two markets here that's right

we