tv Fast Money CNBC April 29, 2015 5:00pm-6:01pm EDT
"fast money" coming up in just a few moments. my thanks to the panel. melissa lee, what's on tap? >> love triangles. we love them, right? we're going to have the latest on this brewing potential love triangle. one of the traders looking at a way to play this so she will share what she's found. >> over to you guys. >> thank you, "fast money" starts right now. live overlooking new york city's time square i traders are dan nathan, brian kelly, karen finerman and steve grasso. tonight, yeplp's cry for help. the stock is down 14%. we'll talk to one onlyist who had it locked in as his top pick. plus, yields in oil soaring together. is the u.s. rally in stocks about to take a turn for the worse but moving even higher in the after hour session on reports it could be taken out in what would be the biggest tech deal of all time. how likely is this and who could the potential buyers be? dan nathan, first to you, do we
see some unusual activity now? >> not a lot there was a buildup in all activity into salesforce last earnings report which was a . oil at its highest levels for the year, now some traders blowout. i don't think there was a lot of speculation because of the size are running from their baearish of the company in general but when you think about what people have been focused on with bets on energy stocks. microsoft and oracle, two of the >> the energy select btf, exxon names that are often thought to be acquirers, especially in the and chevron make up almost 30% cloud space, who've moved into of the weight, when that was software as a service, they've traded around 83, there was a made a big, big push, these two trader selling out of some puts, players, i mean, they're some down side puts in june. there was 5,000 of the june, 75 obviously the likely candidates here, they're growing sales very puts sold to close at 45 cents fast, their stocks have benefited from this in the so, like mel just said, exiting from a bearish trade and so when cloud/software as service space and obviously these are the two you think about what's going on that people will focus on. here, you have this massive i want to make one big point, rally over the last couple though. oracle is the name, though, that they are not growing sales and months here, $75, that's where when you see salesforce growing they broke even. it looked almost like a triple their sales at 20%, expect it to bottom here and the thing is have maybe $7.5 billion in sales breaking out, that's the one-year chart. this year, they would be the when you go further out here, ones that could really use them, the seven-year chart, look at right? whereas microsoft maybe less so. this uptrend that's been in i think microsoft with the place. it held that uptrend and looks stock's 20% rally in just the ready to make a move higher and
last month, i think people are i want to make one more point on the options front, this is making a realization that he's implied volatility. the price of options are getting down to the lows of the year so what does that say to me? it says that option traders who the one. >> the only other make i would are looking to make directional make with microsoft's move is they have a lot of currency they bets in the oil patch, this is one way to do it right now. didn't have so a 20% move gives it wasn't the case when options prices were much higher a couple them something to play with months ago when oil was in a freefall. >> for more action, check out here. the live show 5:30 p.m. eastern time friday. let's check our position on a that's going to happen. couple big oil names reporting will he go to the few company? earnings tomorrow. exxon as well as conoco i doubt that. reporting before the bell and it will fade into the sun set. there's a lot of dynamics going oil does seem like it's found some sort of support here. on here. how do you trade it? >> it certainly has. you have to be in crm if you're like i said last week, you're safe to buy these names because going to trade it because if you have one or two coming after all the bad news is in. now you're seeing oil going higher. oil is just a little technically getting to the point where crm, you have a floor in the you're getting multiple buyers stock. >> it gives a boost to work day. in there, getting momentum players coming in and also the whole space. getting the inventory numbers coming down at a faster rate. so there's a tail wind for oil years ago -- we could see pop. >> did you pick crm? >> i agree. we've done it through the oih >> yes, it was a shameless plug. which i think hopefully led oil so when you spoke -- >> when you said "we" you meant out of it.
i do think that it's interesting we. >> so turn that "w" upside down. solar which had -- they kind of when i speak to clients about diverge. solar has lost its momentum with this, their favorite cloud space was crm. the oil move up. >> so does that make you more it was ignorance, they never bullish? associated it with cloud when it was cloud. you're long -- so at this point they love the name and to bk's point, you can >> i'm long on solar edge. play other names but the true way to play it is probably crm. i'm going stay long. this is a much longer term play. people love the name, people but i also think -- it doesn't will stay with the name, there's matter which one you own, exxon, uso or you probably did through a host of names that could take it out and at this point work a different instrument than that day will get a balance but i but they'll all move together. don't know if that's the true >> these large integrated names plan. >> you see the move in crm and have been seen as a safe haven in the after hours we mentioned or defensive play a couple of it's moving higher but during months ago, not so much anymore. the day it hit a new -- what people are reaching for those looked like an all time high. service names, they're reaching at this point, when you think for it, they had reached for the about a premium that could be refiner names, now it's the put on it, it would be on top of this already-elevated price. service names. now it seems like everything is leveling off here but you could get hurt here if rates start to >> it further limits in that you talk about how big it is as a rise. these are high-yielding stocks. deal. that's one hurdle. conoco is a 4.2% yield. but how expensive it is as a exxon is a 3.3% yield, somewhere deal. not from size, just in terms of multiples, and what you're roughly there. paying. they're both maybe around flat you're paying a lot of money. year to date. granted, if you have cash i would go with a refiner or a
sitting around, that earns service name, i think you're nothing, you could put that to work here. better off for growth there and i think, though, they wouldn't we've seen money coming out of sell it unless it were at a refiners into service names just in the last couple months. decent premium. so i agree there's some floor >> this may surprise you, i'm more skeptical than you guys. when you think about the gdp print we saw today, you look at there for a while unless a company says this is not true. the global growth picture right we haven't gotten a confirmation from the company. >> that's interesting. >> you would think -- it is now -- t upheaval for your employees. >> the head winds were you would think they would transitory. >> that's what the fed said. comment. they don't need to but you'd but they told us in 2008 and 2007 that the subprime crisis think they would. >> the salesforce developments was contained so transitory, i don't know what that words come, ironically, on the same day that microsoft, a potential means. >> passing, not lasting. >> if you're getting all in soute right here after 30%, 40% suitor, kicks off its balance in the understood lying i think you missed -- >> but there's a difference development conference. between getting all in and job lipton has some details. josh? >> reporter: you noted that having some position. >> getting so defensive here. salesforce could be in play. the next question, who the >> i think that -- you probably potential buyers are. as our colleague ari levy had a good shot like weeks to pick the bottom. pointed out on cnbc.com, it's a >> i think this is an unwind small list. the only u.s., internet and trade take longer than we thought in a liquid market but i software companies that are don't think it's a trend change. valued bigger, larger than sales force, it's small, microsoft, i don't think we're going to see -- and this will come back
google, facebook, oracle and to haunt me -- without a middle ibm. it's worth noting, though, that east headline, i don't think we're going to see $85 a barrel salesforce see you mark beniof was here at the developer oil anymore. >> so for me, just to be clear, conference this morning. i'm not saying this is a he was listening to satya's long-term trend in oil, i think there's a chance for a breakout, keynote and tweeting about this you have multiple buyers coming relationship between salesforce in, there's a tail wind there so and microsoft. remember that is a relationship it's great breakout. i bought oil futures today so a that's got gotten deeper and leverage play on a breakout and then, you know, over the next couple weeks if that works i'll strong stronger since nadella took the take it off and won't be in it anymore. we'll be right back, stay tuned. helm. his job was to excite the 5,000 here at td ameritrade, they work hard. developers here about writing apps for his cloud platform and not rivals, whether that's amazon and oracle. he also talked about windows 10, that new operating system. a single unified system that's run across tablet, phones, p.c.s and game consoles. so developers write one app, potentially reach that many more users. one thing that always strikes me is how comfortable and confident nadella is when he addresses
developers. these are clearly his people. it's a selling point of him being the ceo, just the technical chops he brings to the wow, that was random. job. random? no it's all about understanding patterns >> thanks so much, josh lipton. who else could be in a like the mail guy at 3:12 every day or salesforce suitor. dan nighs joins us on the fast jerry, getting dumped every third tuesday. line. you say it's got to be oracle this happens every third tuesday. we have pattern recognition technology on any chart, for a number of reasons. plus over 300 customizable studies >> we view oracle front and to help you anticipate potential price movement. center for a number reasons. oracle is desperate when it goes to the cloud to make what i view there's no way to predict that. as a game changing acquisition. for all the confidence you need. td ameritrade. salesforce has been the gold you got this. standard here. this would make a lot of logical you are gonna need a wingman. sense strategically, financially, especially in terms and with my cash back, you are money. of where oracle needs to play on the cloud. forget him. my airline miles will take your game worldwide. they've been late to the game what i'm really looking for is -- and with salesforce, that would i got two words for you -- re-wards. be them making the big bet on ♪ cloud. it's always been talked about, there's got to be better cards than this. oracle and salesforce and even [ male announcer ] there's a better way with creditcards.com. though we couldibm, this is the compare hundreds of cards from all the major banks to find the one that's right for you. it's simple. combination. search, compare, and apply at creditcards.com.
it would be cheered by the street and take oracle into a first round's on me. different sphere in terms of the search, compare, and apply at creditcards.com. why do we do it? cloud. >> this would truly be why do we spend every waking moment, thinking about people? transformative. this would be, in fact, if a why are we so committed to keeping you connected? deal goes through, oracle's biggest acquisition to date. why combine performance with a conscience? it looks like the last-biggest one was peoplesoft in 2005 for why innovate for a future without accidents? about $10 billion or so. why do any of it? dan, what's the balance sheet why do all of it? look like? i noticed that just i think last because if it matters to you, it's everything to us. week oracle did a $10 billion the xc60 crossover. from volvo. bond deal. >> interesting timing. the $10 billion bond deal, i lease the well equiped volvo xc60 today. have this capacity, $45 billion visit your local volvo showroom for details. in cash, $40 billion in debt. but they generate about $15 hello. billion a year in cash flow so i am a fully automated investment advisory service. they definitely have capacity to do a deal like this and like you i can help you choose investments. monitor them. alluded to before, they've been and rebalance your portfolio. struggling in terms of growth. i can do a lot of what humans can. they're not in the right area in except have a real conversation. terms of traditional more mature software. if you'd like that, you can always speak to someone at schwab. they need a cloud acquisition and in terms of beniof, the they aren't algorithms. oracle pedigree, keith block, try not to hold it against them. the president, it would make strategic and financial sense, especially on the cloud strategy
where oracle needs to be over say hello at intelligent.schwab.com the next five, 10, 15 years and the current portfolio is just big day? not doing it. ah, the usual. >> all right, dan, got to leave it there, thanks for phoning in, moved some new cars. we appreciate your analysis. hauled a bunch of steel. dan ives of fbr. kept the supermarket shelves stocked. >> so i was going back and looking at my notes from oracle's q-3 call in mid-march made sure everyone got their latest gadgets. and larry ellison on the call what's up for the next shift? called out salesforce. ah, nothing much. he said "we are going to do a just keeping the lights on. billion dollars in sas sales (laugh) nice. doing the big things that move an economy. this year." >> software as a service. see you tomorrow, mac. >> software as a service. see you tomorrow, sam. and he said "our competitor just another day at norfolk southern. salesforce said they'll do a billion dollars in new sales." he basically said "let's see how it goes." so when you think ellison has moved back to the chairman role, he has that cto role, he has a massive rivalry with beniof so to lay down the gauntlet, there's better ways they can accelerate their sales growth n this space than make a $55 billion acquisition. >> just from takeover history, i tech shock continues in the think ellison is one of the most sessions, final shares of yelp, interesting players.
he is not afraid to be extremely it's down about 15% after missing on both the top and bottom lines and also look at aggressive, hostile. if that is who it is, it could baidu, down about 3% right now. be an interesting show to watch. are there any buys amidst this >> we have some breaking news here. rubble? oh, you look at that game! on apple, we're at headquarters from the news. i wish we caught that on camera. >> if you're wondering why >> i want to say something about there's such a shortage, because yelp. they talked about mobile active according to a dow jones report users. if mobile active users aren't there's been a defect in the going up they'll be dead sooner than they already are so that's apple watch called the taptic engine, that vibrates on your not something you want to hang list to let you know when a your hat on people, it's like moatfication has come in. eyeball circa 1999. one of two suppliers, aac >> so i guess no. technology based in china showed that some of their products for grasso, what do you say? >> barriers to entry are nothing this taptic engine had some here. >> for yelp? issues with their particular >> and mark didn't mention it, but amazon could do this in components. another supplier, japan's nidec their sleep. everything he rattled off -- >> or google. >> but amazon's already there. corporation, did not appear to it's so conducive to their be any problems. business model right now. so this is not that apple tomorrow. shipped bad watches, this is >> also, remember, google owns that the supply -- the lack thereof, i guess is the best way to put this, is because they that and they have maps so it's couldn't get enough good a broken -- it's been a broken components to make all the watches they wanted to, at least story for a long time.
that's what the report looks i'm not discovering something like it's saying. new here. but i don't think you buy this so, again, apple having a on a dip at all. >> time for the final trade. around the horn we go. problem with one of its suppliers for its taptic engine. dan nathan? that's one of the reasons why we >> twitter, i was not happy. i think it's a very unique have seen such short supply since the launch. property, i did buy the stock on melissa, guys, back to you. yesterday's close and again today. i've -- it's been good to me >> so basically none of the watches that are on the buying it at 38 over the last marketplace has this defective year so i like it here. taptic engine? >> right. >> bk? the story goes on to say the >> xle, i like the energy sector reasonbly there aren't as many and this is for a trade. watches on the market is because >> karen finerman? they've ditched the ones that >> anthem, the old well point, have shown defects and have kept came out with earnings today. i thought even though the stock the ones that have not shown the defects so that's why you're traded off i thought there were seeing supply shortages. impressive numbers there. >> don, thanks for that. we'll look at shares of apple. i like it. still not expensive here. they've been trading lower all >> grasso? >> bakers hughes, bhi, up 22% session long, underperforming in the markets. year to date. to dan's point, you're not is this a big deal? it's a new product. exactly early but if you want to >> it's a snooze. play the energy space, play here remember we had antennagate with at shortstop. one of the iphones, then i $65. keep it on a short leash. >> i'm melissa lee. couldn't wear my skinny jeans see at because of bendgate. 5:00. >> was that the reason? >> thank goodness for bend-gate. my mission is simple. >> the company held their to make you money. conference call. i know bernstein was pressing i'm here to level the playing
tim cook asking about this field for all investors. supply/demand situation for the watch and cook said on a couple there's always a bull market of occasions he said "we're somewhere. i promise to help you find it. thrilled with it." i have to assume they knew this "mad money" starts now. the other day, i'm curious why they didn't say it on their conference call and say, listen, a lot of people, it's been all over the social web that people are disappointed, they preordered on april 10, thought they could buy them on april 24 and people are getting responses that they'll get the phone i'm cramer. sometime? june. >> they're saying the company welcome to "mad money." was shady on the conference welcome back to san francisco. call. >> i think it probably knew this a couple days ago when they were talking to the entire world. cnbc market. i am trying to make money. coming up next, a big day for the markets. my money is to educate and rates in oil both moving higher. teach. call me at a look at what it means for the record rally in u.s. stocks. plus not such a big win for wynn resorts. could bit a sign the china bubble is bursting for good? we'll give you the other names that could be next to fall. and yelp tanking to the tune of 15% after hours which is unfortunate for one analyst who has it as his top pick in the social space. that analyst will be here with some explaining to do.
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yahoo! says in a regulatory filing that ceo marisa mayer's 2014 compensation clocks in at $42.1 million. that's an increase over her compensation of $24.9 million in 2013. again, according to a regulatory filing. to put that in context, yahoo's shares were up the 25% in full year 2014 so it appears as though marisa mayer's total compensation rises. back over to you. >> thank you, dom. karen? >> i think you have to back out alibaba. that was an asset they had before she got there that they had no control in over the short term so it seems one should back that out in which case compensation seems on the high side. >> on the high side. time for the chart of the day. look at the u.s. ten-year treasury. yields ripping higher amid the global bond selloff. how big a threat are higher rates to stocks?
you're looking at this today. >> well, yeah, i think this was the story of the day, we saw coming into the u.s. session german yields were really jumping and there was because some of the economic data in europe got better so people started to unwind these trades. that started the flowover to the u.s. so even before we had the bad gdp, you had the german dax selling off, yields going higher, u.s. yields going higher. so for me as i look around the globe, that's what's leading us around here and you can get all these trades that have been happening over the last couple months, the last six months or so, so i would watch the dax, i short it had dax today. i'll still authority tlt equivalent via the 30-year bond futures. that's a trade that works into the june fomc meeting. >> so what happens to u.s. stocks? >> i think they're very challenged because rates are going higher because oil's going higher. so we've already seen the consumers save whatever tax cut they supposedly got. now they're getting a tax increase is that's going to challenge u.s. earnings. >> well, listen, just look at
consumer and retail stocks. today is a great example, i was looking at kohl's and t.j. maxx. these companies were expected to benefit from lower oil. they didn't have the head winds of a strong dollar. they're off 10% from their all time highs. they broke out a couple months ago and couldn't hold it so investors are repositioning. i'm going to name another one you all love, home depot. it was down 7.5%, it never confirmed the recent high in the s&p. so i think you're seeing u.s. consumer and retail stocks discount this benefit from lower stocks. it's still much higher than it was when stocks were pricing in lower for longer. >> you have a bunch of relationships. everyone was long dax, everyone was short the euro, so you have that unwind. you had everyone long dollar, short oil, that's unwinding so a lot of these things that should make sense don't make sense right now but the european markets were held up by a weaker euro. if that reverses, that's in trouble. if that's in trouble, we're in trouble with u.s. equities as
well. >> so what happens to banks? we got higher yields, right? so theoretically they should go higher. we did see the back of the fomc statement banks go to session highs. >> they did go to session highs. what we want to see, though, is smooth. we do not want to see jerky bond movements. that's not good. it's hard to adjust your balance sheet but slightly up over time is a good thing. >> was this the all-clear for -- >> that's the key. if you're betting on the financials, i don't think they're bad. this is the first time you liked the financials but you're making the bet the fed is going to do a one and done or one and gradual type thing. if they're on a hiking cycle, this economy is not strong enough to handle that. >> if you're one and done that could be considered jerky. >> it's a tough call. it's not my favorite sector out there. >> it's not their desire to be jerky, though. i believe that. they do not want to scoop the market. >> but we don't have that slack anymore from short-term rates to the ten-year where we used to
have the buffer. you could invert the yield curve quicker and that's what pushes you into recession. i don't know what people think about that but we don't have that slack we used to. >> coming up next, the google of china falling hard after hours. is the wynn deal in trouble? and we dive into the saga of my lynn, pair go and teva, back in two.
line revenue numbers but beat on profits. now its second-quarter r eer re guidance came in below estimates. shares down by 2%, not as bad as they were earlier on. lett's look at shares of glu mobile. they'll have a stake bought by tencent from china. glu mobile is partnering with pop star brittany spears on a gaming platform. the game will "allow players to interact with brittany and experience the glitz and glamour of that entertainment business." so earnings, also brittany, also a ten-cent investment, all of that powering those glu mobile shares, mel lis sanchts i would never think those three things could come together in one sentence,dom. thank you. how do we trade this? >> oops, baidu did it again. >> oh, good! >> oh, yes! >> the kids throughout will remember that one. here's the thing, baidu, this is the second revenue guide down in
two consecutive quarters. stock bounced off of 200 when it reported in early february and just rallied into this event here. so i would think some of this report is in it. the fact that stock is only down five or six bucks is telling you i think things are okay. if the stock is below 210 you take a shot and use a very, very hard $200 stop on this thing. >> we've had the ceo of glu mobile talking about the kim kardashian game and how it kills it. yet they're putting brittany in the pipeline, too, now? >> why wouldn't you. she'll get some users. >> plenty of people want to interact with her. >> and experience the glitz and celebrity of britney spears' lif life. >> at one point we wondered about glu mobile's viability and kim had it not turned out to be kim. >> what if there were an entree be into the china it that
correct. >> and also want the brand name, global brand name which is a kim kardashian is and a britney spea spears. >> wynn getting taken to the woodshed falling 16% after a big earnings miss. steve wynn cutting the company's dividend. dan nathan? >> this was a bit unexpected. i think the violence of the move to the down side, lvs reported i think it was down at bun point 5% after disappointing results that were expected then it closed down 2% at the day. so wynn gets 70% of their sales from macau. macau is a just flat out disaster but that was known. so the magnitude of the move is surprising. i will tell you this, though, the stock is going back to 100. and just like it overshot on the upside in 2014 to $250, it has the very strong likelihood to do so on the down side here. so i think if you were a bottom fisher and you think the thing is really oversold, a lot of short interest, i think you use a hard 100 stop to the down side
if you take a shot. >> with the dividend coming prior, the dividend yield had been almost 5% and some analysts were saying maybe a dividend cut will be coming so that combined with this big flush to the down side, that could be -- >> obviously it's the one being killed the most. las vegas is down 9% year to date. the investors -- the investment community have picked their winner and it's mgm because of everything dan said, you hold that will up to the mirror, you have 70% coming from macau for wynn, the reverse, only 30% coming from macau from mgm. so if you want to be in this space, you want to be safer, m mgm, you want to go torqued, you go dan's way as well. >> coming up next, yelp's cry for help and it's one well-known analyst's best bet for small-cap internet stocks. he'll explain where he stands now on that stock. plus big oil and big earnings from exxon to conoco. we're playing take your position on some of the biggest names in the space. stay tuned. d like you to know. d like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard
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numbers. the stock is down by about 15% right now in the after hours. the social review web site recorded a two cent per share loss. analysts were expecting a penny per share gain in terms of earnings. yelp forecast revenue below some expectations for the current quarter as well. the company did, though, report a 29% year-over-year game in average monthly mobile unique viewers so there are positives and negatives but you can see where the verdict is for investors. down by 14%. i also want to point out, melissa, one more story with regard to the apple story we just brought you and our viewers about here. with regard to that story, our own josh lipton has reached out to apple and apple has said they are not going to comment on that speculation in the article. so, again, just an update to that story with regard to possible defects in the apple watches. back over to you. >> thank you,dom chu. let's get to that yelp story. mark mahaney has yelp as his top pick among small cap internet
stocks. mark, good to see you. >> good to see you, melissa. >> is it still? >> i guess we'll find out. this was a clean miss in lower quarter that they've come in below the high end of their ranger. they came in at the low end and most metrics decelerated, too, there's very few positives. >> i asked you if it's still your top pick and you said "we shall see." or something to that effect. is it or is it not? >> i have a little time to figure that out. >> so you're evaluating your options at this point? >> oh, always. >> what are the options for yelp? you look at the stocks pattern, it's down about 50% from its 52-week high and things look like they're getting worse. could this be a takeout candidate? >> i think there are three things we need to figure out. where's trough valuation? we've seen if you look at the tape it seems generally to have found a floor in the mid-30s range. so the question is will that hold going forward. if the story hasn't broken, it
probably should. second is there a takeout play here. the one advantage this thing has versus twitter is market cap. it's $3.5 billion there are a lot of companies that could take a shot at this. finally the question is the knew guidance implies a reacceleration in growth in the back half of the year and the question is do they lower the guidance enough or adjust down estimates enough. we're trying to do this in realtime. >> the problem for me has been barriers to entry with the stock so i would have missed that massive runup initially for it but i also would have missed this massive decline in it. so when you talk about barriers to entry, j us to tackle that first question, melissa asked you about mna, would anyone think about taking this one out when an amazon could do it themselves? >> yeah, now, what you'll have to do, if you want to replicate yelp, you'll have to get two million businesses to kind of sign up about 90,000 of them to be paying you on a monthly basis and about 140 million consumers to go to you on a monthly basis.
that would take anybody some time and get consumers to think about you as a local review site. if there's competitive risk i think it comes from two sources and what could be behind the slowdown. one is, of course, google and the second could be facebook that's building up more of a local reviews presence. that's what the biggest concern should be and it's one of ours. >> i want to pivot to twitter, you lowered the price target to $47 from $54. it was a falling knife in today's session on the back of yesterday's huge decline in the final minutes of training. what is the read through here? is the read through that facebook and google are that much stronger? where are they losing out to? >> i think that's exactly the read-through. they're two well-bished advertising platforms on the internet. there's the thing called google which is great for direct response advertising which it seems like twitter is having problem then there's brand advertising. a beacon called facebook which is larger with rich detail proed files on actual users, not just made up people but actual users. twitter is stuck there in the middle. it's been one of our biggest concerns and this is one of the
major reasons. the second thing that's happened with twitter is they're warning about mau growth decelerating. now we have to worry about the consumer value. there's a lot to be concerned about with twitter. we're not buyers. >> i don't know if you got a chance to hear dick costello on squawk alley but let's listen for the benefit of our viewers who might not have seen this. what he had to say about the stock market's negative reaction to the earnings release. >> we had a slight missile in revenue. anthony and talked about that on the call. it was due to our direct response business, those products are new, less than a year old, we know what we need to do there. we have to run the company we're running. i have every belief that twitter is and woreful, beautiful, independent viable long-term company. we have a great long-term strategy. >> is he still the right guy for the job? >> i think you have to increasingly question that. there are a lot of people
involved in running this business. the fact that they have yet to find the right advertising solution for enough advertisers, that's probably causing the slowdown in revenue growth. maybe that's -- i don't know if that's him or the head of sales but something needs to be done there. on the product side, they're not seeing the mau growth rejuvenate, then there's something on the product side not gaining the intrinsically attractive products that the mass market can love which is what twitter attempts to be. so i'm not sure. every quarter -- two out of the last three quarters have been more skeptical he's the right person. >> mark, great to speak with you. mark mahaney, rbc capital. >> i think he's a buffoon. i think he showed up looking the way he did, that was $20 million revenue miss on a $455 million number. that's not "slight." i think he's entirely not the right guy for the job and i think he should be out very, very soon. and mark just said a sales guy -- they've moved out all of these high-level people, i'd be
surprised if kos toll low isn't gone. this company is executing poorly. they have an amazing product with unique scarcity value and they're squandering the brand. >> on the steps last night you said twitter was a trade based on the selloff. it didn't bounce today so now what? >> i still think it's a trade only, not an investment. if you have people questioning whether or not the ceo is going to go or there's going to be some seat rearranging, then you have a catalyst there. however, the story has broken, they have an execution problem which dan just talked about but they have a strategy problem. if they're really thinking about going mass market, it's never going to work. they need to take the 300 million users they have now and focus on them and generate revenue off them, not generate more users, just change the strategy. i don't think the management team -- i don't have any confidence in the management team being able to do that at this point in time. >> i have a longer term trade on. so it was 50% of my original
position but i'm trading around that so i bought more today. i bought more at 40, i bought more at 39 and i probably almost got hit at 38 but i didn't so for me it traded terribly today but i would have to think -- and i said it last night and kaucar will probably push back on this, there has to be an activist that has something to say about something. >> is that the right reason to buy the stock? >> it's been the right reason for a couple of years. look at dupont. i bought that because of pelts. >> you didn't think that somebody like a pelt might step in. >> i think this one is failing tragically and i think that there are -- there is a short list out there of people that can take this over, companies that can take it over. it would be a great social arm for a lot of different companies out there. and if you even get an activist out there, and that comes to my trading part, if you get an activist sniffing around at all, the stock pops to mid-40s just on that alone. >> you get a headline in a chat
room. time now for pops and drops. pop up 5% for mondeles. >> it looks great on a technical basis. i would wait a couple days on a pop like this. >> pop for starwood hotels up 8%. karen? >> this is on the news they are exploring alternatives to shareholder value. this is up for sale or financial engineering, they can do both. i always say trophy properties get sold in any market however this will take a long time. you can wait a little bit here. >> big drop for stratus, down 22%. >> much like wynn. this is what it looks like when a bubble bursts. this stock was trading at 20 times sales a year ago, it's much cheaper than now, expectations are coming down dramatical dramatically, there is a strong secular shift towards this technology and short interest at 25% at some point very soon i think the stock will get washed out and you will start to hear some chatter either about consolidation within the space or potential mna so this one
stratasys or triple d, that's when you start to look at them when they get washed. >> pop for gopro. >> this is on earnings and good guidance and irv has kind of shunned this one name but i still like it here. you know, i tried to explain it last night but i'll try it again in that you can buy ketchup from anybody, but people want heinz ketchup because it's a good brand, it's got everything you want. this is your heinz ketchup as opposed to hunts tomato catsup. >> we got a drop for apple's tattoo-gate. apple watch writers say their ink prevents the sensor from blocking it on your wrist. buyers said they couldn't use apple pay receive notifications, place calls or access certain alps however the watch -- brian kelly, i think you ran into that problem. >> i had that problem because of
my tribal art. i can't get the apple watch or the i watch. >> you had to put on the bare naked wrist. >> i have it on my ankle. i won't have my anklet on anybody. >> i thought you put the watch on and that's what happened after which is really quite a weird -- >> i got the samsung version and this is what happened. coming up next, the stakes getting higher in a biotech buyout bid. mil mylan trying to buy perrigo in this health care love triangle.
vertex falling on the bell. megaterrell has the details. sneg. >> -- mega? >> the stocks are confused because the earnings came in line with expectations. of course their biggest drug is the cystic fibrosis drug, it came in line at about $130 million in revenue, reiterated their guidance for the year but all of the questions on the call are about this company's big combination drug in cystic foy brosius which is expected to be approved by the fda in july. getting a lot of positive
comments on the call about how they're preparing for that launch. there will be an fda advisory committee meeting in may examining that drug. they say they're preparing for that, talking to payers already about getting reimbursement for this drug because a lot of the questions here are around the price of this combination therapy. so sounds like a pretty optimistic reaction on the call so just trying to figure out what is driving that stock down so we'll be paying attention to that. essentially all eyes looking forward to this summer when this big drug in cystic fibrosis, or camby gets approved. so q-1 pretty much in line. back to you. >> meg, there's a lot of biotech news. a bidding war is heating up. teva wanting to buy mylan after mylan wanted to take out perrigo. what's going on, anybody biting? >> nobody is biting just yet. we have to see how long this chain of increasing offers, rejecting offers. i mean, this one came back immediately, perrigo rejecting
this offer from plomylan. they're claiming the offer is lower than what mylan put on the table. it came out before it laid out the details of the bid at $205 share and now perrigo is arguing that even though mylan based on its current share price, it's offering $75 for cash plus 2.3 mylan shares for every perrigo share in this newest deal which, based on mylan's share price, would be about $246 per share. but perrigo argues that it's the right thing to do to calculate this based off mylan's unaffected share price before teva was speculated to be interested back in march. then it says based on that the offer is only worth $202 a share. so these are the semantics that are getting argued about right now. mylan has its own offer from teva on the table which it's rejected. teva hasn't come back but sent a letter saying "why you being so mean to us" and then saying "we don't make sense together" and picking on teva and its big practices.
>> meg terrill, thank you. a lot of moving parts here. >> i think meg red the subtlety just right. "why are you being so mean to us." now we see teva coming back being a little mean themselves saying "you mischaracterized what was going on there." so we've seen these menage the trios before. it seems to make sense that they're maybe artificially inflated, perrigo saying they're worth more. the last time we saw this multiple bidders, it was all over the map and it turned it the right way to do it is to own all of them. somebody's going home with somebody else. >> oh, really? >> yes, at some point. >> so when we had that hexagon or whatever it was -- >> all of them. >> so are you doing this with these three? >> you know, it's distasteful but i think -- i don't own them yet, i should. i wish i had owned mylan. i think perrigo is okay to own
here. i do not think it's over. mylan -- the way mylan -- they can't do with shares, they need -- their shareholders need to approve this deal. the shareholders won't go for it if it force teva to walk away so there's still more to come. that's why you can own any of them. >> it's a zero sum game. who has the most to lose? mylan up 32%. that's the one -- as karen started off, that's been inflated. if this gets longer in the tooth that probably comes off more precipitous than the other two up a third. >>. coming up, two big oil companies, exxonmobil and conocophillips out with earnings tomorrow. the traders take their positions ahead of the reports after the break