will return about 60% of its free cash flow to shareholders >> got it. good to talk to you. today. george, i appreciate you being on with me it's all about tesla in "fast money" because the conference call begins at the bottom of the hour and they'll of course have that i'll see you tomorrow and "fast money" does begin now. live from the nasdaq marketsite overlooking times square this is "fast money. i'm melissa lee. tim karen, guy on "fast. tesla up revenue up 81% from last year. the stock higher after hours and we'll go inside the numbers and hear from elon musk. a netflix nosedive the streamer ending the session down 35% its worth day since 2004 down over 60% this year so is netflix dead money and what about the rest of the entertainment stocks later united airlines just out with earnings minutes ago, the stock insuring up 7%

first on cnbc interview with the ceo scott kirby and straight off with the big move higher in tesla popping by 5% after the company beat on the top and bottom lines revenue jumping 81% from year ago levels and deliveries topping 310,000 vehicles tesla's call kicks off at 5:30 p.m. eastern time. elon musk could join, maybe he won't. hopefully he will. phil lebeau has all the numbers and details. phil. >> hey, he says he'll be on the call i think he has something to say, maybe something about twitter. we'll talk about that in a little bit the numbers they just reported much better than expected and that's the reason the stock is surging right now. a beat on the top and bottom line, check this out, earning $3.22 a share for the first quarter, street was expecting them to earn $2.26 blew it away by a buck and revenue coming in $1 billion stronger than expected at 18.76 billion and the final metric, the one i think, you know, the people who look at the

numbers, think they'll be excited about, look at the automotive gross margins excluding government credits expected to come in at 28.9%, came in at 30% that 30% is an improvement on the fourth quarter when it was 29.2%. as you mentioned, the conference call starts in about a half hour we do expect elon musk to be on that call. he said earlier he will be on that call and a lot will be focused on tesla but you can bet, melissa, there will be analyst questions regarding twitter on a whole number of subjects is it going to divert his attention from running tesla will he collateralize his stake? lots of things coming up so more anticipation than usual for this call >> phil, as far as i write in the investor shareholder dec, it seems like they were sticking along the guidance in terms of delivery vehicles for the year. >> yes. >> which seems surprising given the shutdowns we've seen in

shanghai >> well, remember, they have said for some time they expect to grow annual deliveries by 50% give or take some years might be a little above 50%, might be a littlebelow 50%. if you take how many they delivered last year, 936,000, what's 50% of that, i think 1.45 billion, something like 4 or 5 million that's what they're expecting. so i'm not surprised that they didn't get into more detail. you can bet during the call there will be a lot of questions about the state of production in china which as we know was shut down at the end of march and shut down for the first week in april. local reports say that they're starting to fire it back up again. we'll find out more detail in a little bit >> all right, that call will be a fascinating one. phil, thank you. see you in a little bit with the ceo of ual let's trade tesla here dan nathan, what do you make of the quarter? >> you know, phil said surging in the after market up 4%, down 5% today it is a trillion dollar market cap up 30 or so percent from

lows a month ago do the math. guy can do it, $300 billion in market cap so if we're talking about what the expectations were and they handily beat them, companies that are disappointing, i'd say that's fantastic i'm not that excited about the fact the stock is up 4% and tell you this, the theme of the market over the last let's call it year and a quarter now is stocks that are divorced, right, from like reasonable fundamentals will correct and they will overcorrect to the other side and so the fact of the matter is this stock, a trillion dollars moving around the way it has over the last two months is not healthy to me when everything is firing at all cylinders, can you imagine what will happen if there's any bumps in the road. >> okay, so far there aren't, though, karen. >> no. that's no bumps in the road. impressive to your point it is right back to where it was last night if you hadn't known last night, you could buy the stock here and this would be the earnings that would come out, you would have thought, yes, that definitely would want to do that.

interesting to me where we are flat but those were impressive numbers. gross number was impressive. you and i were talking before the show started was it because of the mix because china had the lower priced cars and that was out of the mix, they must have good pricing, so i mean there's a lot to really love if you're a tesla fan here the valuation is high. but this quarter, i mean, very impressive. >> yeah, and they were able to deliver in stark contrast to some of the other automakers who have been promising but have been snarled by supply chain issues and here we are, tesla's really looking like a standout we knew that but with these results, tim, maybe that sort of underscores this notion of at least for now perhaps tesla's safe, quote, unquote safe from competition. >> our audience knows what my view on it has been over the tesla and hard not to argue what's gone on here. first of all i thought the report, the contribution from

berlin and texas is huge and the fact that they're also able to begin delivering ys and the battery cells and packs out of that are very important. i look at the asp growth and look at the gross margins. if they're drawing production 50% a year, this kind of a profit model, the stock is actually going to probably hold on to a lot of the valuation i hear what you're saying, dan, on the chart it's probably the best megacap chart tech company chart out there right now so, no, i don't want to chase this but i have to tip the cap and also, again, their ability to derisk their ability out of china somewhat, shanghai should have been a much bigger deal than it was this quarter. >> that's interesting. so, guy, would you agree with tim this perhaps looks like the best megacap tech chart out there and if so what do you do not in the stock right now could it be a buy right now? >> yes, i don't know if it's the best-looking chart i'd have to look at the other good-looking charts to make that determination. i'll say this, though, you know,

this is the quarter that people have been buying the stock for years waiting for. so there's seemingly growing into the valuation we've been concerned about. everybody points out we're right back where we were yesterday the one number i took away, operating margins close to 20% is really good i mean it's a really strong quarter but now the stock needs to prove itself. what does that mean? made an all-time high in november, 1243 had a sell-off went back to 1145 earlier this month. now is the time where the stock needs to prove itself, the bears tried. now the bulls have to try and see if they ket get through the 1150 quarter. >> let's bring in gene munster great to see you what are you focusing in on in the quarter? >> melissa, the key takeaway is traditional auto can't keep up with tesla there's two points i want to enumerate. on the profitability standpoint i agree with karen completely is

that this upside on the critical gross margin x credits number was based on higher margin, the higher margin performance skews. the price increases we say had little to do with the beat they come when delivery, many of those deliveries are pushed out three, four, five months so we'll see that price increase forward. when we think about the gap between tesla and traditional auto, just beyond thespecifics of the numbers is that the profitability and why are tesla consumers paying up for these performance models essentially to jump the line to get them sooner is because they want their products and automotive companies don't have demand for their evs. second is what what happened with their tax credit revenue. this is a metric, a line item that largely gets ignored. it's basically when tesla sells these compliance certificates to other automotive companies that aren't making enough evs

and the quarter was 690 million. last quarter was 314 million they had been given guidance that that would decline over time as more automotive makers, the traditional ones made more evs they would need to purchase these credits and so ultimately that surprise is testimony to the strength that tesla's having competitively so i think that the takeaway is it's not a good spot this is not a good quarter for traditional auto. >> gene, i'm curious to whether or not you think what's going on in shanghai, the shutdown will affect ultimate numbers for the second quarter and for the year. >> it will some of that on the call, my guess is somewhere between 30,000 and 40,000 vehicles assume things get back up and running in early may that would amount to about 2 1/2% of total deliveries in 2022 so it is measurable but it is transitory assuming i do believe

it's trance tory and investors are largely going to look back it. >> when we think about tesla versus the traditional automakers, them highlighting advantages they have in terms of their in-house production, simplification of the process, fewer number of parts that are cast, the 4680 sells out of texas. those sorts of things seems like it's a deeper mode or do these others also have that sort of technology in the works? >> first i'm impressed that just the level of detail there, second is that there is a distinction, a gap and i would just simply look at two videos, look at the video -- do a video flyover, a drone, some video of giga factory, texas, compare that to gm's new electric vehicle factory they just came out with it is about as stark of a

contrast and one example looks like something out of the 19 0s from gm with humans moving things around. when you look at tesla how they've done with robotics it looks like something out of "the terminator." this is the detail and this is what goes beyond, i think, again, i think getting in my view is overly focused on the metrics and understand why they're important. the bigger picture is what you're talking about on the production side, the machine that makes the machine that also is something that doesn't come through in these numbers that you don't see it but if you are -- if you work at one of those other automotive companies that's what you're thinking about tonight, that factory and wondering how in the world am i going to compete with that >> what's the one question that you would like to ask elon musk about the quarter when it comes to tesla >> what's his -- how many delivery backlogs do -- how many vehicles do they have in backlog because that obviously is going to give you some confidence

about that 1.4 million number estimate that phil was talking about for 2022 >> all right, thanks, gene you're going to stick around for us see you later. let's trade. karen, how are you feeling about traditional automakers >> not good. not good just funny, though, gene look at the brain on you not surprising to all of us who know you but, no, not good just way ahead and, you know, the valuation chasm has gotten even bigger if that's even possible mathematically. as it should that is the direction it should go no doubt. >> or is this the moment, dan, where tesla is on the cusp of facing very steep competition that everybody else is underestimating? >> that's what michael thinks. someone just tweeted at me that says dan hates tesla i don't hate tesla he's obviously doing an amazing job. i hate the stock and i've been

in the business for 5 years and we've seen stocks like this before, maybe not get to a trillion based on this sort of sentiment or the founder or the period in which we are and feeling about the destruction within a specific industry, every single time they come crashing down. every singing time so it is a matter of timing and the stock has really only worked for the last two years, okay now, it's worked to the tune of $900 billion, okay, so a lot of people have made money on it but it only actually makes them get more into the story which presents more risk so buying into it here based on the best quarter they've ever had after the stock has gone up 900 points in the year and a half doesn't make any sense every step of the way you could have bought every dip and would be making money except the last two months here's the thing, let's see how it acts tomorrow maybe that's as good as it gets. >> we've gone earnings alert united posted a miss on the bottom line. they expect to report a profit for the full year 2022 after a

tough first quarter. phil is back with a first on cnbc interview with united's ceo scott kirby. phil >> thank you, melissa. scott, i don't know how else to say that but that's some serious guidance you gave for the rest of the year. i don't want to focus too much on the first quarter but on the reason the stock is moving higher profitable second quarter then the rest of the year i just looked at before i came over here, the analysts are expecting you to lose 230. what's changed >> i've never seen -- really what changed is demand i've never seen in my career and been in this a long time hockey stick increase leisure but business demand and expect our business revenue, booked business revenue to be above 2019 levels in just a few weeks and already booking more business revenue than we have capacity it's really amazing. >> we know that it always goes up in the summertime spring and summer is the busy

time you expect it to go well beyond. how long does this last? >> i think we're in the first inning this is really the turning point, the inflection point for coming out of covid as we transition from pandemic into endemic and this is the first quarter. we still have a long way to go on the business travel recovery, ways to go on europe asia is basically not open and another way i think about this back to 2019 revenue levels and we're producing the kind of 10% operating margins this quarter, but nominal gdp has grown since 16%. that would sort of tell you we just get back to the normal trends, another 16% to go. it really is an amazing turnaround. >> the skeptic would say look at airfares and you are capturing that early pent-up demand and at this level where you're making up the full increase in jet fuel costs, you're not going to be able to keep it at these levels for this long. the industry won't. >> look, i think demand will continue to grow you know, you look at business travel it really is -- you look at the

charts that we have internally they are just heading up and to the right. a ways to go european travel, you know, it's really strong right now. but we still have testing requirements there's going to be a step function increase when that happens. asia demand is not there we're still 16 points behind sort of where we should be and fares have gone up compared to pandemic levels but still a great value and still probably back to kind of 2017/'18 and inflation adjusted levels. still a great value. still a great bargain to travel and i think demand is really just -- we're just in the first inning of the real travel recovery. >> scott, melissa has a question for you. melissa? >> hey, scott, i was wondering how you think about what the trajectory looks like and whether or not there's a certain element to pull forward travel that is going on we talk about revenge spending a lot. maybe there's some of that going on in terms of travel and leisure and that spending won't be done later on or next year because it's being done now because it's the first time

people can get out and go. >> yeah. >> well, look, i think it's still to be determined question. my own opinion is that that's not the case and particularly we're still well behind trend relative to gdp so there's a long way to go i would also tell you that a year ago people were saying the exact same thing about domestic leisure travel all put forward, pent-up demand and i think what happens here particularly after what we all went through in the pandemic, you know, the value of experience, the recognition of going on a business trip and meeting with a client, going on, you know, a business conference and networking, i think people appreciate it even more. i think there's going to be at least as much demand as there was before and arguably more certainly am traveling more and expect to do that, you know, forever and i think there are a lot of people out there who are going to travel even more than they did before the pandemic started. >> and will you be more judicious in terms of your

capacity i know you're already being more judicious in the second quarter. does that continue >> there are a lot of challenges around the industry in terms of being able to support -- you see a lot of airlines having meltdowns. as united we hired 6,000 people. we have great careers but there's all the other infrastructure challenges and because of that we're taking our time bringing capacity back. number one, focus on long term and operate reliably i'm proud so far this month we're number one on on time performance of all airlines in the country and completion factor and our team is doing a great job but we're not going to let the possibility of short-term profits put the customer experience at risk and we're prioritizing operational reliability so we'll gradually add back capacity and making sure we can do so and do so reliably. >> scott kirby, on a huge day with, yeah, the top and bottom for the first quarter, they were a miss but not why the stock is moving higher.

by the way so you know ceos do have friendly wagers with their cf oscar he told the cfo, i bet you we top 50 after this earnings report, the cfo said, oh, no look at him smiling. >> you weren't supposed to tell him hat. >> what did he win, phil >> what did you win? >> 20 bucks and pride? okay, national bad 20 bucks and pride, 5007 is where the stock now. we've only begun to scratch the surface. be sure to tune in tomorrow at 7:30 a.m. for an interview with american airlines ceo robert issum and from alaska airlines, tim, big, big guide here >> not big guide this is massive the fact that you're talking about long haul and international increasing rapidly, business travel increasing rapidly he mentioned actually capacity is down 20% from a year and yet so total revenue per seat mile

is up almost 17% airlines are more efficient and more profitable today. now, that's the real key watch airlines because often they've disappointed investors and that's what investors watch in the space is how efficient they can be but right now at 52 bucks on the chart should get an even bigger prize. that's where you've broken a one-year downtrend for the company and i think it's an important day. profitability and return to the front of the bus. >> yeah, return to business travel is just beginning, guy. i know that you like to stay home you have not been at the nasdaq for quite a while if we are weigh on the cost and return of business travel there's a lot more to come in terms of demand for airline tickets. >> i could take one of those united planes to morristown in the city and be there every day. it's a remarkable guide and for context, precovid united was a $92 stock. today it's a better run company

to tim's point far more efficient i get fuel costs okay. but that's in the stock right now. i'm not saying it's going back to 90 but this should be midst-60s and made the case for delta a couple of days ago, the airlines to me still have a lot of room to the upside. >> what is the re-open trade >> well, i thought your question was a good one i think there is some pull forward. doesn't need to be all or none but one thing i want to point out comparing it to 90 i look at the enterprise value, that value is all the way back to the high, right, when you include that debt that they had to take, so maybe it should be, maybe to tim's point better run airline now. if they have capacity constrain meaning they'll get much better pricing i can see how it makes sense. i don't own them. >> acknowledgement of that bet almost ensures it closes 50. i'm just saying that flat out. >> the cfo, so -- >> fine, they both win >> 50.25 so let's say scott kirby is the winner. moments away from tesla's

conference call. elon musk planning to join and dig into the company's quarter we will give you the headlines out of that call plus, the latest on the netflix plunge, shares dropping more than 35% for its worst day since 2004 more on the fallout when "fast money" returns

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what happens if you ever need to miss work for a long time? why would i miss work? you could sprain your ankle... get hit by a school bus. get kicked by a horse. scurvy. plan today. feel comfortable about tomorrow. massmutual. welcome back to "fast money. a look at netflix's eye-popping loss, the stock dropping 35% after the company reported its first subscriber loss in ten years. let's take a listen to what some of the experts had to say about the results. >> you're in growth purgatory. you go from growth to value instantly, it's not cheap enough for valued investors yet cash flow is ultimately at the

floor. this thing, we think it could keep falling and until you see the turn in revenue growth which is probably months away, this is dead money in my view supply found yesterday very blamy of external factors and them reacting and i think they need to put more of that blame on their decision-making being slow so i'm hoping that this sort of, you know, slap in the face of these numbers they're reporting is a wake-up call because many streamers are doing much more innovative things. >> so that was just laura martin and upgraded netflix to a market perform amidst all of the downgrades and price target cuts on the street. this notion that nathan brought up of purgatory is interesting where is it? >> it's closer to i guess the good end of purgatory. i don't know the spectrum. you know, it could without --

you know, we talk about the three-day rule yesterday at this pace, there will be zero if they go down this much every day by day three, i want to own it there if it starts to have something south of a 2 pe. 20 p/e that to me is interesting. watching it today i could barely contain myself, yet i did. i did not buy any. there was a mass exodus that i don't everyone made it out the door despite the huge volume so i think there's more downside. analysts were rushing to just get out. but i think it's -- i mean when you think about the valuation. the $100 billion 225 million subscribers, it's not that much per month compared to something like a peloton, i know it's not apples to apple but at $2700 for subscription, i don't know i think this is kind of a unique property i realize it was a giant,

giant -- you don't need to jump in but starting to get compelling >> buyers -- >> of stock, of stock may be interested >> there should be google should buy it if they're going to do ang add supported product -- >> they can't -- >> because of youtube. maybe? i don't know there could be a big platform that could do it though it's not really -- i don't know why the justice department would care if something doesn't have a huge overlap so google wouldn't make a whole lot of sense quickly, if you look at the margin structure that you have over at roku with their ad supported business this would help netflix's margins if they would have a real meaningful add supported business that captures a bunch of those users were not paying on their family's account so to me i think you're probably right. at some point in the not too distant future this is going to become a good value stock. >> let's get back to gene and get his thoughts a couple minutes before the tesla call starts, gene, did it deserve a 35% haircut in a

single day >> simple answer is, yes, keep in mind is the second time they did this over three months we had the big drop when they reported the december quarter. a lot of investors who thought let's give them a chance to rectify things really just hit the sell button today. when the stock was down 15% in the after market i thought we're not done yet this needs a rerating. we have to get growth investors out of here. when the stock was down what it was today, loup decided to start a position, not a full position, considered half a position because i would agree with your trade that's this is something, difficult to pick the bottom but at some level, it becomes attractive we call that fair value and it hit that threshold i love karen's three-day rule. that's why we didn't do -- build all of it here but i would simply go back to what i believe is -- i've been negative on netflix for a long time and here we are starting to build a position and one thing i've

always believed in is that this company is going to be around for a long time and when you have an opportunity to -- what in my view take advantage of what i think is some emotional selling and invest in a company that's going to be around and have the luxury i guess we do to have a luxury to own something for two years plus i think you'll see that lift you'll see the comps starting to get easier and talked about a year plus out. i think it will probably happen maybe sooner than that but i actually -- a tale of two cities, first needed a rerating and i thought it got the proper one but this is getting most attractive. >> it can last for a long time can exist for a long time. that doesn't necessarily make the stock at this point a good investment or make it valued where it should be i'm curious on your take of the management aspect. karen and i were having this discussion prior to the show i was sort of surprised at sort of the acknowledgement that, you know, password sharing is a

problem. we were growing so fast it wasn't a priority and ad supported tier is not like this is a new model that all of a sudden came in out of the blue other platforms have had this for awhile and surprised me they would say finally it's time to do that. it's going to take another couple of years to do that they hadn't been doing this in parallel to the growth that there was sort of no -- there's no possibility in management's brain that this growth would possibly slow >> yeah, yes, it was a miss for a management team that largely excluding the last couple of quarters has done a great job at getting there and so i think this is -- it's a strike there's no question about it the fact when i think about that, i think that plays into kind of the emotional side of some of the selling that happens today when you see that and start to question, i would say that if you want to run a streaming service, there is a handful of people, i put netflix at the top and put probably

apple ahead of that. i think they're going to build something that is still in its infancy powerful but i would just suggest don't run to the extreme that management is incompetent because they've made some mistakes. yes, they overestimated what the growth i was embarrassed by their commentary about the password share ago and felt like a defensive excuse it is a fact of their business and i think that they're going to find ways to try to monetize that at the end of the day, investors should be happy that this management team is still in place. >> yep gene, always good to get your take maybe we'll see you later on in the show after tesla -- tesla's call is under way right now. guy, what would you say to gene who started to build a position here >> gene, he's been spot-on as negative as he's been and starting to build a position people should take that into consideration when somebody looks at something and says it

makes more sense than it has, absolutely, gene does great work i thought it would hold 260. that was wrong the rest of the panel, steve grasso, three-day rule coming into play. i'll say this quickly and this is not directed at gene, but the negativity surrounding the stock today specifically is sort of juxtaposed to the euphoria literally a few months ago in november when there was a $700 stock. now, somewhere in the middle is the truth, right it did trade 135 million shares today. we thought it would trade close to 100 you blew a lot of people out i think you're getting close to pretty tradeable bottom for sure >> all right well, no surprise today's netflix washout spread a blizzard of repositioning among options traders. let's bring in tony to break down the action. what did you see >> yeah, today amongst that 35% decline we saw 16 times the average daily volume here on netflix but one particular trade really stood out a trader sold over 5,000 contracts of the june 225 calls

and used that people number to purchase over 13,000 contracts of the june $215 puts for an average price of about 70 cents or so in terms of the net credit he received so just to put this trade into perspective they laid out $22 million in premium to bet on further downside here for netflix while collecting about $9 million in premium by selling the upside calls right now we don't know whether this is an outright new speculative bet or outright edge on an equity position but it certainly reflects a fairly bearish view on them continuing going forward. >> tony, thank you for more "options action" tune in friday 5:30 p.m. eastern time take a look at a couple of stocks getting a boost from netflix's struggle omnicom, interpublic, wpp.

magnite. if they getadvertisers, where does that ad spend come from >> well,i just would be carefu about chasing some of those because these are high multiple tech stocks also in the same -- in a whirlwind look, the extra ad dollars, it's hard to know i get very worried to hear with netflix that actually the churn related to the price increases, they claim they can build upon a 700 million user total addressable market i'm concerned about that and i'm not sure if there are people that will trade down to the ad model and obviously those are the folks that the advertisers are going to be counting on so i think there's cannibalization and something people should be concerned about. >> i think the cannibalization we saw in meta today and also alphabet which i love, you got to think that youtube would be hurt by them becoming an ad supported subscription. >> meanwhile, tesla's earnings call just getting started. four minutes in or so.

we'll monitor that and bring you all the headlines. coming up, not just netflix on the move digging into some other big movers, the names straight ahead, plus the battle for twitter isn't over yet and the man who hired the currency is wearing in on musk's bid. "fast money" is back in two. it's a thirteen-hour flight, that's not a weekend trip. >> announcer: options action is sponsored by think or swim by td ameritrade thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪

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welcome back we wanted to get a check on other big earnings movers. meta dropping. analysts say their checks pointed to a major drop-off in ad business in the current quarter. shares down over 40% this year disney also dropping, florida's senate approving legislation that would remove its special tax district it goes to the house tomorrow. governor desantis is expected to sign it if it passes and lululemon down 4.8% announcing a membership program saying it aims to double annual sales by 2026 wasn't all bad news, though, procter & gamble appears to pass off higher costs to the consume.

tenet had been up more than 5% during the regular session guy, this is one you were watching, tenet. >> i think the quarter was good. more important than just the first quarter they give the full year guidance came in better than the street was looking for and people are starting to do math and say valuation they can wrap their head around hospital, no nobody loved them years ago, i think the stock can continue to grind higher and i think valuation makes sense here so thc still works in my opinion. mel. >> karen >> guy has been on tenet for a long time. lulu traded up in the premarket. i thought those were pretty impressive numbers doubling in five years a management team that deserves to be taken at their word and, you know, that kind of growth and the sort of pricing power they have, i'm very surprised. just seemed like with the

netflix news today was the day growth multiples died. doesn't matter what you said or, you know, how much people love the stock they were just going to sell it because how can we ever know what if we run into that brick wall and still holding it but i think lulu was impressive i haven't owned it in a while because it seemed expensive to me maybe it needs to come in more before it gets to my value area. i think it's much better today with this news than yesterday. >> by the way we're about ten minutes into the tesla call and headlines crossing tesla management is saying this i've got a reasonable shot at 60% delivery growth this year. that compares with the 50% that they had been predicting pretty much year on year. they also say they're working on a robo taxi vehicle which will not have a steering wheel or pedals and seeing the stock higher by 5.7% and keep you posted on the other headlines coming out of the call coming up, the man who hired twitter's ceo is weighing in on the twitter musk drama what he needs to do with the

details next and we are monitoring that conference call and we'll continue to let you know about all the big headlines and when he starts to speak, he's speaking right now, "fast money" will be back in two ♪ ♪ at cdw, we get today your hybrid organization depends on different networks, different devices and different ways of working. so how do you manage to keep everything together? cdw can orchestrate a cisco sase solution or secure access service edge. converging security and frictionless connectivity in one cloud based approach. so your dispersed team feels closer to home. for a unified hybrid workforce, trust cisco and it orchestration by cdw. people who get it. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay...

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welcome back to "fast money. twitter closing around session highs, it cops seven days after elon musk made an unsolicited $43 billion bid for the social media giant and now a former twitter senior vice president is speaking out saying the company must drown out external and internal directions alex brought parag agrawal in and now general partner at moxie ventures. thanks for joining us. >> thanks for having me. >> i'm wondering what you think of elon musk because shareholders in general, if you take a look at how the stock reacted think elon musk has some sort of silver bullet for twitter. >> i think that's a problem with twitter. they've always had this narrative this they have a silver bullet with a new ceo or new head of products there are a bunch of smart peopleworking there for a long time if there were a silver bullet they would have found it and the role of the board or owner is do not hand pick favorite feature

ideas. they do corporate governance unfortunate distraction. >> give us your insight into what parag is like and what you think he will bring to twitter if he remains ceo? >> i'm a huge fan of parag i did hire him when i was running ads engineering. s's smart, rational, deeply technical, data driven and will make a decision and then stick with it until there is new data but not hem and haw beforehand he has the context of everything that happened at twitter it's important to know what didn't work out and what did work out so you don't reinvent the wheel trying to do things again. when i took over all of engineering of the company from the ads team which was working relatively well i handpicked just a few people to come over and work on areas of the company that were extremely important and in dire need of help and he was on that very, very short list he is truly excellent. >> alex, what do you think the

biggest disconnect between active investors involved in the name, twitter, that is, for a couple of years now and elon agitating and what let's say the board or what the current management thinks, because there seems to be a big disconnect the stock has reflected that over the last few years. i'm not asking you to come out on the stock but where do you think they can find some common ground how to turn this platform around and maybe just grow faster with more innovation? >> so, i think one of the problems is it's constantly compared to something it's not it's compared to facebook and instagram. these multibillion dollar, both billion user networks that have a use case that makes sense for a couple billion people every month to use i mean things like, you know, sharing photos online, catching up with old high school friend, billion user activities. twitter is great at whatit's great at but probably not on the same scale that realtime news and breaking events and interacting with pundits and politicians. that's not something that a few

billion people a month want to do to be compared to that is setting them up to failure hopefully they can find common ground, really monetizing and extracting value from what twitter is good at great at sharing realtime information, figure out a way to monetize that. their tweets everywhere. tons who never use it consume tweets because they see them on shows like yours and media and web so figure out how to extract value from the mine share they have instead of focusing on monthly usage. that's not what the product is. >> i think that's interesting you mentioned you know that people get the greatest bits of twitter for free just because they're published. they're shown in other fors of media. how do you think twitter could monetize that? >> i think it's a complicated question and i do think the last thing twitter needs is outsiders and i'm an outsider now just suggesting product ideas but there are all kinds of models where there is content that gets distributed to other platforms but people make money off it

i can't go to youtube and for free watch every video ever created. whereas that is true on twitter. i could go to the news and on many platform where they extract no value and can get all the content on twitter and they make no money so i would sort of look at different ways to monetize that content, license it or something like that but has to be something that gets the value of the twitter content the way people consume twitter which is usually off network instead of trying to force people into the same usage metrics that facebook and instagram are really good at. >> it's clear that you are a fan of parag, alex but also a fan of elon musk. it's just you think elon musk should go and do bigger and better things. if he were to become ceo of twitter, own it or take it private, whatever form this transaction could shake out, you know, do you think that could be a good thing for twitter ultimately since he is obviously very intelligent and has a lot of good ideas. >> he's extremely intelligent. that's not the criticism of elon

i know plane at twitter who are also extremely intelligent i don't think the world needs another person with an extremely stong point of view about free speech on either side of the political spectrum telling twitter what to do there are a million people like that it's not clear he could add value where he has a track record of adding massive incremental value in other problems which ultimately are more impactful on the future of humanity than what happens either way. >> alex, so good to get your perspective. thanks for coming on to "fast. >> my pleasure >> all right, so 4/20. april 20th, 4:20 p.m. has been asked and no tender offer so far. if there should be a tender offer, what does the board have to do next >> so if there's a tender offer, the board would need to respond to the tender offer. they would need to issue a 14d9 which is response to that offer and in that they would need to say where -- what's the recommendation that share olders

do whether they should tender, whether they should not or remain neutral it's less likely but importantly the board will also need to talk about how they're coming to their conclusion and what kind of toss or background there has been with in discussions or not with elon. that in elon's 14d1 his tender offer he would need to show where is the finance coming from and he would also need to detail his view of what the back and forth is between him and the board. i think that's -- puts him in a minefield in that i would bet he was having discussions with the board that made him seem more like a passive investor than the -- prior to the final he filed a 13d. that's a land mine for him and his lawyers. >> coming up we are still monitoring the tesla conference call, we're 20 minutes in. elon musk is speaking a. apparently he said they'll be able to produce $1.5 million cars which is greater than 50%

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i'm dan o'dowd and i approved this message. you are watching actual videos of the tesla full self driving technology as recorded by the drivers. from turning too tightly and hitting a pylon... [ expletive ] to swerving toward a pole.

jesus. watch the bicyclist on the right almost get hit before the driver takes over. sometimes it seems the tesla doesn't want the driver to take over. i'm trying. this driver had to hit the brakes when the tesla didn't understand a detour sign. ok. here it almost hit a truck. obviously, i had to take over. and here it swerves into an oncoming lane. look at that! often, the tesla doesn't know what it wants to do. what is it doing? or just doesn't know how to turn. jesus, oh my god! tesla's full self driving software for drivers and pedestrians, it's unsafe at any speed. tell congress to shut it down. welcome back to "fast money. tesla's q1 earnings call under way. elon musk saying he has never been more optimistic about

tesla's future than he is right now. phil listening in, what is the news >> the news is basically not basically it is all tesla related. if you were expecting him to say something about twitter he has not received a question. right now they're in the prearranged questions from investors that they then ask elon he hasn't gotten to any of the analyst questions yet and it is all about tesla. he did say that the company lost about -- several weeks worth of production in china but that they are slowly ramping up and expect china tree sdukz in the second quarter to be roughly in line with the first and substantially increase in the third and fourth one of the primary questions that analysts have in terms of the outlook over the next couple of quarters. let's listen to what he had to say about china production a few minutes ago. >> they really had a significant challenge due to the covid shutdowns and we are already

back up and running with the shanghai factory >> he also said the company has a decent shot, those are his words, decent shot at making a 60% increase in deliveries this year so, melissa, if you take a look at what they delivered last year, 936,000 vehicle, 60% of that would put them up somewhere around 1.497 million vehicles. you know, a very outside shot at hitting 1.5 million vehicles in terms of deliveries this year. we'll hop back on the call and see when somebody asks about twitter. >> thank you, phil phil lebeau. the stock is off its after-hours sessions high. karen, sort of a surprise given how bullish elon musk has been so far and we're just talking about why, why would a ceo, any ceo and we know this is elon musk in a category of his own, why would a ceo be so optimistic right now when you don't have to be this optimistic given so many

other unknowns in the world? >> i know. where you could just say we'll be up 40% to 50% instead of the 60 that doesn't make sense to me. the only conspiracy theory, guy, for you, i know you love them is all right, he wants to get tesla stock higher so if he's looking to margin it to buy twitter he will have move room to do it. >> when it was up, about the size of the twitter bid fun fact $53 billion in market cap gained up next, we got final trades

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with infliegs eating regard highs could the pain be nearing an end netflix, plunged 35% after earnings watch or listen live on the cnbc app. time for the final trade let's go around the horn tim seymour? >> merck, a company that has a 10 billion opportunity, cardiovascular starting to break out on the charts. >> guy adami >> halliburton reported yesterday. good quarter, good guidance. stock sold off short-lived halliburton. >> karen finerman. >> united rentals had a big run. is that the chart? i decent know. but i got to sell some calls against so soing some upside calls. >> dan >> yeah, if you like what you all had to say, that's united, i

think jetblue might have good stuff, so beaten up that looks interesting and guy adami, happy 4/20 >> yeah, happy 4/20 to everybody celebrating. thank you for watching "fast money." right now. 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. welcome to cramerica other people make friends, i'm trying to make you some money. so call me at 800-743-cnbc or tweet me at jim cramer i said it before and i'll say it again. you want companies that make things and do stuff at a profit and then return some of the profits to you, the shareholder, with stock