fireeye, greater than 50%. i think what the market missed in terms of how we described it was we have multiple components in the business that's changed. we have a product component. we have a product subscription component. we have a services component and a support component. when looked at in total, we grew very, very well, well over 100%. if you break down the pieces, people are looking at that saying could there be weakness? what was happening organically or inorganically on the business? you have to look in totality of all the components together. it was a record quarter for transactions, big deals. number of assisted deals with partners. across the board, it was a really good quarter. >> when you're saying investors have to take a look at the business in its totality and people are focused on the organic deceleration, you're saying that we shouldn't focus on that? that's the wrong metric this what's going on in the organic business here? >> the organic business got blended with the mandiate components. a

fireeye salespeople could sell both products.t became almost organic. >> i have never believed in this all organic thing. >> they were a private company. the bottom line was our product subscription. it is the most important part of our business for the most part. it grew well over 100%. so, we have had a lot of high-end growth. having said that, i think the market expectation is even more than that. all of the components are going over 100%. we have got to keep irking hard. we're doing well. so, so far, so good. >> what about a broader tech selloff? do you think it is environment or the talk of the bubble? >> i think you're hitting on it more than anything. not only has it moved toward profitability and more mature companies from these high-growth companies, we are also facing a time where we have a very large expiration of shares coming. you put the confluence together. we be confusion over the results. couple that with the lock of expiration and what it together with a tilt, we are getting some results. >> sprinkle some high e

does this mean more business for fireeye? >> it probably does. on one side it's good for the company. we're seeing tremendous need for our products. much like pat's company, we invebted machines that study security behaviors. the product works very, very well and the company's technology is being deployed to target examples to ebay examples and it works and we're seeing a lot more thrust for our products now. we're in an important place as a private company. but at the same time, we have got to be responsible with what we're doing with reporting as well as partnering. >> are you worrying about retaliation from china? >> no matter how you look at snowden and all of those issues, it was a black eye for the u.s. and by implication a black eye for u.s. it. obviously it's in every conversation we have with foreign customers and governments. our business model is focused on enabling governments to run on their premises with their employees in their networks and on their data center. we're least affected by it. but see it as a overall effect for u.s. it

good question. >> dave dewalt of fireeye. thank you for joining us.e will have more of "bloomberg west" talking about facebook after this quick break. ♪\ >> welcome back to "bloomberg west." i am emily chang. facebook is looking to make better friends with small business owners. they are launching a program designed to keep businesses have a better use of the site for advertising. my guest is with me in the studio. you guys are launching basically refresh and you are going personally. how is this going to work? >> thank you for having me. great to be back. we are having a series of five small business events around the country. it will be great to get on the road and meet them in their community. camp forit like a boot a chance to get their businesses into shape whether you're getting things started or your business is looking to add more expertise. we'll work to help them understand how they can grow their business, especially on mobile. they can grow and benefit their communities. >> what are you telling them? >> we're helping them to grow. what can

we've seen three horrendous examples of this phenomenon in just the last 24 hours -- twitter, fireeye, and peak digital, the maker of portfolio -- candy crush. when twitter came public it soared from the get-go. the growth was also accelerating. accelerated revenue growth. arg. which is the actual metric people key on. when twitter reported that we saw a deceleration in their rate of growth, which triggered a mass exodus among the momentum-based institution that's want accelerated revenue growth. then when the lockup expiration hit yesterday it was katie, bar the door. it has lots of funds that owned twitter before it became public and lots of employees who received tons of stocks, simply couldn't take the pain. they wanted out. you can't blame them, right? they wanted out before the stock slipped below what they actually paid for it. >> the house of pain. >> you know something? twitter hit my down side $29 target at last today, although i think we're still not where a stand can be made by the twitter bulls. as for fireeye, which we want to start calling shark bowie knife in the eye,

fireeye. how great the threat is now and if today's charges will have any impact whatsoever on economic and business espionage. speaking of security problems, how many times a day do you swipe your credit card? can your banking information ever truly be safe? one start-up has the solution. level up is the name. they're leveling the playing field against would-be identity thieves. it's a fox business exclusive with the ceo. seth's coming up and, yes, he wears orange glasses on his head all the time. ♪ ♪ all stations come over to mission a for a final go. this is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. ♪ ♪ liz: here's a dow fun fact for you. in keeping with the low volume relatively directionless day on wall street, although we've been up to the upside

and it got him out of fireeye. and now fireeye is back down here, jim. question is about float. when you change the float, the amount of shares, judge, that are out there, i think you've changed the dynamic pretty significantly. what's your take? >> well, few of us have talked about this, and one of the problems that the small cap and the growth area had as it did in a much greater extent late '90s is that a lot of the valuations of the companies were being set on very, very small floats. 10%, 20% of the stock outstanding. and as time goes on, those floats increase. shares outstanding might not have to increase, but you could actually have the float increasing. >> exactly. >> and it's much harder to keep aggressive valuation when maybe the investment bank and a few big hedge funds, or whatever, controlling the float, when it triples and quadruples. and i think that's what fireeye had and all kinds of other companies, we had stratospheric evaluations, the float increased. >> so as we've seen this peel off from these high-growth names, what's been taking p

wow. >> fireeye did miss. >> fireeye. >> 53 cents. lower on increased r and d. >> yeah. >> why are they spending so much and is this a move away from legacy era. >> fireeye is a sharp stick in the eye. you know, they're talking about well they have a new business. man deyant they bought. there is a gigantic lockup coming. the customer -- this is a call that doesn't understand what happened in the world. this is a call about customer account, a call about new subscriptions. the world moved away from that in the last week of february and these guys are still playing the game. >> yeah. >> you can't do that. people want profit profits, you. they talk about zero days. reminded me of twitter the conference call. if you look at our timeline and tweets per oscars we're doing well. it's like no, earnings per share, please. >> william blair does say they're perplexed by the stock action -- >> i love that. perplexed. i'm not. >> [ inaudible ] does keep it as a buy. >> look, in the end this is an enterprise value to sales story and it's still one

>> sellers aren't there. >> stock up 3%. >> fireeye, my relationship with fireeye, let's just say it's and the fact that the stock is hanging up here and not taking out these mid-20 levels, remember, this is a security company. when you see something like paypal, when you hear about target and they were able, i believe, they had a relationship with target, they were like the good guys, believe me, i just say this is an expensive stock but it's not coming in. it looks like the big sellers don't want to clear out. there's a huge short position in fireeye. there is huge short position in all of these. by the way, remember, 18% of the s&p is banks and banks need these rates so much. we didn't even talk about jamie dimond and his return to detroit. >> $100 million over five years in loans and donations. he calls it investment but this is to attack housing blight, renewal, job training, all the thing detroit so badly needs. >> immediately people say hold it, if he were to give his salary to detroit they would be able to have a new symphony or artwork. i can be polemical. when rates go higher

but on the other side, fireeye.o rename it sharp stick in the eye frankly. more guidance cuts. we had the good trade on, but boy, that stock had not so great pit action this evening. let's not forget this is a market dominated by value. sell the growth. there's always a bull market somewhere. i promise to find it right here on "mad money." i'm jim cramer. see you tomorrow! >> i go inside a. stein meat products, a wholesale meat supplier in brooklyn, new york, that does $50 million of revenue annually. >> good burger. >> it's the best. due to high operating costs and razor-thin margins, stein is hemorrhaging cash. >> everybody you order from, wants their money in ten days. we don't have the money to pay them. >> i can't turn this business around... this business is two weeks away from closing. this 75-year-old company will close for good. my name is marcus lemonis. i fix failing businesses. i make tough decisions. and, frank, you are no longer the general manager. and i back them up with my own cash. it's not always

. >> we saw fireeye upgraded today. barclay's. fireeye is controversial.jim cramer on twitter a couple things i say periodically, fireeye is the best product. but the stock got too high. it then went down because people felt there was a big lockup expiring that people from the acquisition would sell. they haven't. next thing you know you've got a stock that had been more than cut in half that's coming back. just remember that the company's product doesn't necessarily always have to do with the stock price. >> right. i mean that -- if there was ever a story about multiple compression, fireeye would be it. >> yes. >> and then also a lot of stock for sale as you said. also they did a -- >> no. >> they sold a lot of stock. >> but the company -- i want people at home appro po of mark haines' three year passing, we're trying to do something different here. we're trying to analyze both the company and the stock. that's a lot harder. on the conference call with hewlett-packard you had all these analysts, good analysts saying meg help us we have to make our model.

joining us now is fireeyes ceo, kevin mandia. so, we know about target.bout ebay, but that is just the tip of the iceberg. i know you know about a lot more and i guess my question is how bad is it out there? >> well, right now, i feel like we're getting sucker punched in cyber space. it's just the state we're at when you look at cybersecurity is the whole of the issue is going through a transformation of legacy security practices that have proven ineffective to more capable security practices. dourg that transition and we are getting better every day at cybersecurity at the retailers and a lot of these companies. during that transition, unfortunately, we can't pitch a perfect game every day. z zbh. >> but i'm sitting home read in about this, i am a target shopper, i shopped during that time frame things were being stolen. i have an ebay account. how worried should by? >> i'm not that worried and i do both as well. in general, there are cybersecurity incidents and these retailers and companies are working hard to prevent the security, but just because you'

but some of the biggest gainers yesterday are really taking a big breather if you look at fireeye and twitter and gogo. >> right. and certainly, i think you can stick with the theme of what's been working consistently. it's been the big-cap names. that continues to be the story. you look at the transports yesterday, the industrials yesterday, even look at the financials. i mean, really didn't get covered yesterday. the financials back above the 22 on the xlf, you're talking the big-cap names. when you get an 18-point move in the s&p, you're sweeping everybody along the way, and the mo-mo stocks absolutely were able to ride along with it. can they do that consistently? i don't know. i like the big-cap names and i prefer them, particularly big-cap tech. >> steph? >> yeah, i would agree with pete. what's most important this week is retail earnings, right? sales were disappointing today. there's no sugar-coating that one. i don't think earnings will be that good for the retailers, but i think it will be about commentary and we'll have to look at april and may trends together. and here wit

twitter, whole foods, and fireeye.he model measures how much capitulation there is, and in some of these cases, 70% of the float of the shares have traded in the last few days. >> so people are taking advantage of these big dips in the twitters, the whole foods, and, as you said, a fireeye, larry, to have an opportunity to get in? >> yeah. well, remember, technically these are bad situations. if you look at apple, in 2012 into 2013, apple had seven bear market rallies of 10% to 18%. okay? so that's -- you know, i see accounts taking advantage of those moves and selling those rallies, as well. in other words, these are -- you have to be very careful, because these names may go up 10, 15% and retest the lows and go lower. >> larry, thank you for calling in. appreciate it. >> thanks. >> interesting on the twitter question. twitter gets upgraded today. >> yeah, morgan. >> cramer raising the question this morning of whether the stock has bottomed, hit his price target of 29 bucks or around there. it makes you rethink sort o

you see fireeye come way down. box is a company growing quickly. lots of great customers.will be able to raise capital. it will set the expectation mark high. >> i don't think it is a full bubble in the context of 2000. there are companies in a bubble state. when the hype cycle gets ahead of reality, eventually that comes into equilibrium. groupon, xanga, that happened in the public market. that is painful. the hype cycle get so far ahead of reality it comes into equilibrium. we're are seeing that happening for some companies today. >> you mentioned fire eye. is that even worse because it is insiders? >> there are all kinds of reasons. if you haven't made any money and your 29 years old, you want to get some liquidity, it goes back to the hype ahead of reality. if you took a line and drew it from when someone join twitter four years ago to its valuation today, that is a massive win. in between then, that hurts. >> how do you see this playing out? how bad is it going to get? >> i don't think it's going to get that bad. i call it a mini correction. you have massive new marke

no the stock should be up more. >> why do you like this more than fireeye?ly there's enough hacking, you've done so much work on cyber hacking, there's business for everybody. fireeye was a stock that got overvalued no one will quibble with their technology. palo alto has superb technology and do it by the vertical management superb there, glad they settled this, stock can go to a hundred. >> security. >> the biggest growth market in the world. >> they're all offering this product. >> yeah. >> security is important for the enterprise. more so than ever. the chinese are not going away. >> no. >> the opening well not going away either. only 4:30 from now. stay with us. i know what you're thinking... transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much

things had better be better than you said they were going to be, that is what we see from fireeye . the auto sector because today the fita ceo is laying out plans to romeothe rants of alfa and jeeps while increasing deliveries to 7 million vehicles. he described the plans as bringing all of the various pieces of the mosaic together. matt miller is in auburn hills, michigan. i know you are listening to him speak, tell me about how the reception in the room has been. what are people saying? >> you know, people are trying to wrap their heads around such a big overarching news. he has been talking about plans for this company with profits to rival the great numbers out of fireeye. billions in 2018. they are talking about rearranging every single brand from alfa romeo through jeep, chrysler, dodge, and fiat. there is a lot going on here. at this moment, he is breaking down the first quarter earnings of 2014. fiat missing what analysts were looking for. we got 622 million euros, which id minus one-time items. really the news that alfa romeo wants to invest five million dollars with new ei

. >> fireeye.n, you know, use that the fire in the eye of the tiger. now it's got the eye of like i don't know, maybe a pussycat. whole foods does have a lot of price competition. couple notes saying be careful and the notes seem cogent to me. fireeye, yeah, having another bad day there. sharp stick in the eye. >> you mentioned athena health, down 12%. you mentioned einhorn's comments. excellent company that could fall 80%. >> it's cloud but not really cloud. it's medical records. it should maybe have never gotten all the way up that it did. now it's in freefall. when a guy comes out -- remember the green mountain coffee presentation, there's people who give presentations that are negative and they tend to resonate far more than the positives. >> they do. it was a -- speaking of our colleague scott wapner there telling me peppered with video of mr. bush, the ceo, of athena health and sort of at his expense. i would point out last year, the people who appeared last year, when you look at it, perform

fireeye, varrone that systems 3% lower. david: trip advisors. we're about to get their financials.'re way down at the announcement. >> trip advisor, whole foods, just to name a few. this is earnings season. [closing bell ringing] david: if i'm not mistaken this is the session lows. cheryl: we're sitting at session lows for dow, s&p, nasdaq. watching small cap names, really taking a hit over the last few sessions. that is continuing. david: it is low of all of the indices. we have inverted pyramid here starting with the dow. that is not a good sign either. the dow suffering least losses, if you call it that, 12points to the downside. going down to almost a 1 1/2% loss in the russell 2000. small and mid-sized caps taking it on the chin. "after the bell" starts right now six big names coming out with their financial reports. disney, whole foods, trip advisor, whole lot, groupon

i still have 90 plus percent of all my holdings in fireeye. we'll work very hard to improve the value of this company over the long haul. i have a track record of doing so. i apologize to you if you feel like you've lost faith in me. i will work hard for you. i will be there. >> good discussion. fireeye stock down 5.5%, continuing that fall. >>> alibaba has struck one of its biggest deals with a u.s. e-commerce company. they've agreed to help amazon rival shop runner expand in china. that will allow chinese buy from retailers in the united states. it takes less than 10% for each sale it helps facilitate. >>> u.s. retailers help report april same-store sales today. spring my finally have sprung for these stores. courtney has more for us from cnbc headquarters in the states. >> it's pouring outside right now. overall, things have gotten better. there shouldn't be any more excuses for the retail sector now that that weather has turned warmer. we are feeling spring following the severe winter. the easter holiday prompted shoppers to hit the stores

. >> fireeye dropping. coming in a bit light.ment without this rotation that you would have thought would get a bid, it would be this one. if you're looking at security on the web, you would think this would be where you want to put your money. it's caught up in this rotation and show-me attitude, right now still on free fall and broke all levels of support. no touch. >> is this jds uni face. >> missing both the top and the bottom line. making a stunning reversal. >> the quarter came out. they missed eps. stock got sold. i think i saw a $70 print. >> look at that dip there. it's like the grand canyon. >> some 40 minutes later they came out and said full year revenue is going to be high 20s to low 30s. which justifies the 29 time forward pe they have. big short interest. i'm going to say something i'll probably live to regret. i think you can buy this stock and it's going to be deep, but a $75 level which is where we traded and held in the fall. yeah, i think people are clearly confused on the knee jerk and i think this stock has

amazon, facebook and fireeye all seem weak. is the nasdaq fall getting close to the bottom? we're talking about the divergence and how one is telling us one y. >> 15 s&p poi time high. everything is fine. i would prefer to look at the russell. that to me is struggling. dan and i were talking about this. valuations,ic look at the russell and nasdaq and say i get why we're selling these things off. 65 times. s&p, 16 times. i think there is a real argument into rotation into stuff that has a more sustained model. what's going on with the nasdaq and tesla, it's not been a surprise to me for a long time. >> i don't disagree with anything you said. i would say the longer -- if you want to call it a rotation goes on, it has the potential to snowball. to me, as long as i have been in this business since the late '90s, i have never seen this sort of damage done. you want to talk value. there's no value still here. what's changed is investors psychology and the change may come to the s&p that's trading 16 times forward. >> this divergence will be solved in terms of something like the

. >> fireeye up 8%. >> still after it being down $80, $90. but they announced they're going to have an analyst open house. trying to get the creditability up. i would still stay away. >> drop for allergan down 1%. karen. >> they rejected the offer from valeant. so valeant stock was down also. i don't think the rejection should have been a surprise. cheryl is maybe concerned they won't agree to go easily. >> pop for trip adviser up 6%. >> right after the bell, the knee jerk was to sell the stock down to the mid 70s. then 40 minutes later they guide revenues higher for entire 2015 i believe. we said that. this would trade in the high 80s. here we are now. i think a $95 price target -- or $107. i don't think it gets there but room for the up side. >> and apple reported $3.2 million to buy beats, dr. dre. set to close on a $50 million home on tom brady and gizele bundchen. i mean you got a house, a moat. >> dr. dre. >> do i have to wear those -- they put them like on their neck. does it sound good like through your head? do you ever see that? >>

the fireeye bounce. two guys saying salesforce.com where it started, the last week of february, is going to have a better than expected quarter. we see a lot of people coming out and saying the internet security names are good. they can make a stand, david, and no one can get in the way of the stand for a couple days. i think these do bounce. >> take a name like rack space that's going to open up what, 16, 17%. >> manage internet cloud. a piece yesterday in "the wall street journal" a guy who tends to be too negative saying it's going to miss. that was a terrific setup. who does in is? elizabeth arden. consumer package good company that is a horrendous quarter. i was negative on "mad money." they sent me like 5,000 products, told me everything was going to be good. that was wrong. you could have a situation where wall street says i have to cover my shorts on the service now. use that as an example. cover my shorts on the work days. let those rally based on sales force which is the umbrella company making

that's the kind of thing that happened in 2000. >> is fireeye just fireeye or a bigger metaphor for thisket in any way? >> it is the ultimate metaphor. i call it sharp stick in the eye because i like to have fun like the software as a disservice stocks. but yeah, i think rocket fuel, you have the $82 secondary that clearly didn't hold that was filed after the stock had burst up to 96. they didn't care that they sold at 82. yet $90 million coming off lockup on may 22nd. if that stock gets hit again you really say, okay, that stock is year 2000. i surrender. not all companies are year 2000. many companies could show a profit, a la zillow if they wanted to tomorrow. the notion of growing without worrying about profit is now out the window. now you got to worry about profit. a lot of these companies we're using an amazon model, meaning hey, i don't need to do profit. the market has changed. >> not that many -- there's not that much room for too many amazons probably. >> turns out there's room for one amazon. >> up next, it is jim's mad dash as we count you down toward the opening bell on a f

same thing tuesday when we hear from the w bedraggled fireeye. this top-notch cyber security company, it's traded erratically, how about from 97 down to 40?y, its crime, nothing, actually. delivered on metrics but there's been vicious insider selling, and that's hurt the stocks more than the fundamentals have helped. then we had three quintessential growth stocks reporting. first solar, disney and whole foods. all tuesday after the bell. boy, it's going to be busy. i want to hear that first solar's putting together a new company with a good yield that can be a conservative solar growth utility stock that so many of the younger people i think would love.pl i'm looking for a huge number from disney, but so is everyone else because frozen was such a monster hit. two quarters ago, disney reported a fabulous quarter and the stock was crushed.ou last year the stock soared. here's what i'd do, if disney comes down on monday, i think you should do a frozen sing along and pick some up before they report. don't forget, i suspect bob eiger will start talkin

as far as fireeye, the stock lost 53 cents a share on $74 million in sales, or revenue. that's a terrible quarter, any way you slice it. does the stock deserve to be down here? i think it deserves to be down here allot more it deserved to be over 90. >> i think the difference between the dow 30 and a lot of the names we're talking about is multiple expansion. they had significant multiple expansion in the high-flying names and now those multiples are contracting. are those dow 30 stocks in the position where they saw significant multiple expansions? certainly not to the degree that the others did. therefore, i think you extrapolate you won't see the contraction in those names. >> scott, i want to go back to what steve was talking about, in terms of the fed monitoring bubbles and some of the investment markets, and where their concerns may lie about excessive debt being built up in the system, i would take the under on the fed's track record and ability to actually do what he's talking about them thinking about or trying to do. prior to 2007, there was a single bloomberg

when you see money come flying out of fireeye and workday and all those stocks, that money doesn't have to be reallocated. all you're talking is margin debt coming out of the system, and it could go nowhere. it could go to other places but it doesn't have to. that's an important concept to understand. >> no, i think that's absolutely true. money doesn't necessarily have to find a home. it can sit on the sidelines. >> do you see a catalyst to having the averages, the small caps go down further or will they bleed lower? >> what's interesting is tapering. this is something we spend a lot of time looking at. if you go back to the post-financial crisis environment, every time the fed said we'll come out and do stimulus, small caps got a massive pop relative to large caps, and we've noticed that just ahead each of the past few fed meetings small caps have started to sell off again. so i think the fed's a big catalyst here. >> health care. it's an area in the small-cap universe you do like? >> market weight, i like the area ex-biotech. there's still a lot of issues with the biotech being overp

. >> how about fireeye, a spending story?me thing although they see cash flow negative for the year. >> that gaffed people but they did talk about china. if you ever say anything negative about this company, evidence is such a battleground but this is a -- the cfo of tesla, i only read, not talk. at a high level for the gigafactory. >> that's right. that's right. >> all right. let's go to bob pisani. >> there are other things going on. >> sprouts almost recovered from the loss of yesterday. >> when i have sprouts on, they have a small store format. by the way, they have a quinoa and salsa flax that knocks your shocks off. they have these combinations of food. it's a small format and they are not directly come pet tibl. >> cheetah priced towards the high end of the range. the price talk is 12.50 to 14.50. they priced at $14. that's a good sign not obama nl the ipo market. remember, this is ahead of alibaba. this is a very good sign overall right now. there have been four chinese ipos, by the way, and three of the four are belo

rhythmic when you see clorox up, people starting to take salesforce.com, kimberly up, start taking fireeyex. this is a trade and the trade is when the economy is slowing which people are reading off the retail sales you buy the consumer package goods. not going to miss the quarter. the highest growth stocks because they'll make the quarter. >> they or al gor rithles. >> it's algorithms. the machines think they're smart but they're not. stupid trade. >> you can beat the machines? >> if they don't believe their quarters they don't believe like they used to. these are not monolithic. they used to all do well. kimberly downgraded yesterday. i think they're doing okay. you can't go in and do the stuff. the machines have no nuance. >> yeah. people have to be careful with that trading. the market is headed down. wait right now. >> interesting. what's on "mad" tonight some. >> okay. i think we're in the fulcrum of what i talked about. salesforce.com on. they report. go back to february 28th, stock jumped up to 67 in the closing hour and fell and has been bottoming in the high 40s. if marc benoff d

amazon, facebook and fireeye all seem weak. is the nasdaq fall getting close to the bottom?w one is

she's going to be talking with mark and the ceos of fireeye and it's going to be a huge show and of courseg to be starting right now. >> jam packed. i'll let you get to it. >> "fast money" starts right now. we live in the nasdaq market inside new york's time squares. live in silicon valley. and has an exclusive interview with marc andreekken. let me introduce our traders tonight. we have ti