Every possible metric. The stock is soaring, as we see there. Afterhours session highs. This comes as every other Major Tech Company has basically tanked on earnings. So can facebook save technology, and should facebook be a core holding in your portfolio. Guy, what do you say . Listen, ive been wrong about a lot of things, most things, but i think categorically, collectively weve been right about facebook. If you look at facebook, the one thing that stuck out to me is, forget about active users on the mobile app, look at what they did in operating margins. Up to 55 . I think the street was looking for 51 . If the stock opens here, i believe its a new alltime high. I think facebook will continue to go higher. Can it back and fill . Absolutely. Should it be a core holding . Without question. At least a 52week high, if not an alltime high. This stock has a knack of gapping to new highs. You had 52 Revenue Growth year over year. I would just mention this. This time last night, we were talking about facebook excuse me, twitter, down 15 . After really horrible earnings. This is not i think you can separate the fact that facebooks gain is really at a lot of these other ad budgets pain. You talk about twitter and these other things. They seem to be dominating. Listen, i do not buy stocks at alltime highs, especially stocks like this. Im curious, if last night were having a question about apple, where do you have a conversation about so much could be happening for facebook. Clearly theyre still growing. U. S. Group, very impressive. But in terms of how theyre dominating the digital ad space, to the extent that this is really where people are paying them, and paying them multiple, i think its a case where at some point its not going to get any better. Google and facebook, at this point, dominate digital ad in a way that i dont think they can forever. For this particular line of business, theyve got all kinds of businesses. I disagree. I think a lot of bullish sentiment. Thats where i would disagree is, this is no longer just a facebook story. How about the 50 acquisitions that zuckerberg has done. How about messenger, and instagram, and everything that he has created over this very short period of time that theyve been a publicly traded company. Its absolutely amazing to me. Go back to mobile. Can they get mobile. Can they really figure this out. Now its 82 of the revenue. Up 73 year over year. But theyve also got the transition. Zuckerberg talked about that today. He made that point. He said, look, were doing these acquisitions, were doing all of what were doing. This is a tenyear game plan. This isnt a this year or this quarter, its a tenyear game plan. What hes doing now is filling up with the free agents that can ex explode. Its trading higher on a gap basis here. Stocks like this, weve had this amazing run from 2012, i think as low as high teens. So, you know, a lot of that good news is in the stock. Youre telling me that theyre going to basically monetize, when it paid almost 20 billion for. Lets see it. Lets see. Virtual reality is right around the corner. They have like six apps here. Sooner or later theyll have to get the operating system. Theres not much more share they can get. Well have to see how effective their video ads are going to be. I think you make a good point. 35 times earnings. Make the case, why facebook should trade at a premium because you like it. Because, again, look, like many things, like google, i dont think it can be easily replicated. I do think, although it makes me sick to my stomach, Virtual Reality is going to be something that can no, without question. Like a grouse possibly . Like an angry grouse, yeah. I digress. You mention instagram. I want to tell the folks at home. Im on the gram now. Maybe that will make it pop. Does facebooks results make twitter and google look that much worse . What it does, as we talked about the impact of the competitive landscape, the gram, as guy likes to refer to his three followers, is ultimately between snapchat and instagram. We talked about a deteriorating asset. That is what the concern is. In facebooks case, very difficult to argue, i would just point to the fact that, again, youve got the highs and holds. They could be much more moderate in terms of where they want to guide expectations. And cap x and op x for this company, especially looking for the fly in the ointment, people are wondering if theyre going to overspend on the next thing. I heard you talk about that earlier. All these buys versus sells. Everybody focuses on apple now. But that same paradigm was out years ago. Now all of a sudden people are getting more concerned. Facebooks got time to run with this. Years to run. They have to make the same case for apple. You could have said that five or six years ago for apple. And trading at a historically high. Why shouldnt facebook trade at a premium . You see the road map in terms of catalyst for growth. Ill go back to google. This is a company that always traded a premium to its peers. But google in 2011, 2012, they cant just grow to the sky. Facebooks going to have where was there growth . Where was googles growth . Was it mostly search when it was stagnant for so long . With facebook, these acquisitions are something theyre making money on, and they will be making money on going forward. If you think about it, facebook for all intents and purposes is a onetrick pony. Its mobile ads, thats how they make their money. And google made their money on desktop ads. Now facebooks eating their lunch. I need to see whats going on with video and that sort of thing. We heard twitter talk about how much better roi was, promoting tweets and that sort of thing. Threatss see how its playing out with facebook. Tweeted it right out. I decided, you know what, i talked about it in the noon show. I said, look, because of all the reasons i laid out, i think theyre actually stealing from twitter, stealing from google. Thats why i expected this report to be strong. I didnt think the stock would go to 119. But i thought it would be up 3, 4, 5 maybe. The options were implying 8 move. Were they weekly . I bought the ones that expired friday. Shortterm. Who is buying here . Is it a buy . Its going to take money off the table. I think there will be, like facebook has de many times, but remember, a lot of people took their numbers down ahead of this report. A lot of people sold the stock once google reported. Theyre going to have to play catchup. 117, march 31st was the last time it ticked up there. Technically, if we hold the lesms after hours, this is important for the stock to you could make an argument it was putting in a base. Were starting to build off of that. Watch the technicals on that level. Tech has broadly underperformed the market despite the facebook outlier. Investors should take note. Carter, what do you see . Obviously thats a lot of carnage as of late. What i want to look at is the key level. What we know is, you have a failure right at the prior peak. But heres the really important thing. If you were to look at the lows of january, february, even as the etf, xlk has rallied, thats basically the problem. Heres the setup i think that is very interesting. This is going back some four, five years. But we have literally bounced off this relative line to get in the bottom panel, relative 30r78 answer to the s p. About six times, were just now on the cusp of breaching this. That is a very bad development. So as negative implications for the market i think is the biggest sector. Also, we have the precondition of outperform arngs right . Xlk, ive done it from the exact high of october 2017, youve got an aggregate up 80 versus the s p up 60. The here and now chart. And this is now a twoyear sending channel if you want to call it that. But literally, quite precisely, once, twice, three, four, five, six, thats a socalled interday slash crash where prices were canceled. Seven, eight. This is perfect. Now, by my eye, having failed at the double top, were going to continue to work down towards the low end of this, which puts pressure not only here, but the s p. Whos a buyer of carters chart . Anything carters selling, im buying. He could be in the middle of the desert, selling bottled sand, and i would say, how much . Come on. I mean, look. Technicals dont lie. Look what hes pointed out. You agree with the technic s technicals . Again, think about the resilience of the s p on a day where it should have been down big on the back of apple, and it wasnt. Eight of the Top Ten Holdings have all reported and disappointed. When you think about this, its holding in pretty decently, if in you can take intermediate term view as ive done looking out to september, i think large cap tech is going to be in the hurt locker for a while. Facebook has nothing to do with it. I like the xlk with the vehicles. The price action was pretty good, even though most people they were lousy. Doesnt that pete, doesnt that make a difference in terms of your views to how Resilient Technology should be . I find it resilient. We talked about intel, great call on intel. The flip around from 30 off of bad numbers, frankly and moved to the upside. Ibm, just the opposite. Numbers come out, they sell it off. I think the real leader in the market is energy and materials, right . You look at oil each and every day. Now its traded up to 45 today. Conoco, philips, chevron, exxon, everybody moving to the upside. If the second half of the year is any better at all, which i think were seeing, or projections are well see some of that, i think thats a lot of these companies, we are getting to a place their business is very commoditized. Not a bad thing. Up next, the most important question on investors minds right now. How should apple be valued. The surprising take after the break. Plus, move over earnings, bank of america said theres something much bigger. Well tell you how to play it. Youre looking at a live shot of bill ackman getting grilled on capitol hill. Hes just had an interesting response to one of the senators questions. Meg terrell is there. Shell bring us all the headlines. Much more fast money right after this. Welcome back to fast money. Weve got an earnings alert on paypal. Kayla . Paypal shares of up sharply after hours. Three takeaways on paypals First Quarter. First, pretty stunning growth. In a world of very little growth, for a lot of tech companies, paypal saw revenues up 19 . Earnings up 28 . Growth, 3. 2 billion in payment volume was up 154 . User growth, although better than wall street expected, was up just 2. 5 . So that could be a point that investors try and take apart on the Conference Call which is just under way now. Another Sticking Point for the company is the take rate. Although they did see trims action volume bigger than expected, those transactions are getting more expensive to maintain. The take rate was just short of wall street expectations. The transaction margin 64 , was showing pretty steady decline from quarters prior. So investors are going to want to see how paypal will make it more profitable to continue building up this transaction volume. But finally, the company was able to affirm its guidance for the full year. Earnings, 1. 45 to 1. 50 per share. For a company that has only reported publicly three times, theyre getting pretty good at it, and theyre putting some pretty good numbers up to show for it. Thank you, kayla. Being able to stick to guidance for the year. Not like they were a startup last year. The faster growth in a business here. Obviously a lot of competition. Kayla mentioned the transaction volume. Thats really the kicker for this story. The peertopeer Electronic Payments here. If we want to go back to facebook for one second, thats how they hope to monetize some of these things. Competition coming online. This is growth at a reasonable price. I actually kind of like it here. You know, trading about 25 times expected earnings, i think its pretty reasonable. Whats interesting about this stock, its been stuck in the mud. Its done nothing for a year. Yet people know about the growth. This growth, though, was extraordinary. What dans talking about, not just a button on your website anymore. Its truly merchants. The fact that theyre growing. The take rate, you know, we can deal with that. The growth internationally, again, barriers to entry, i think are actually harder. And the leapfrogging of Technology Makes payments go this way a lot faster. Apple ticks off our top trades tonight. No, not just what today was the worst day for the stock in two years. But instead of just taking a look at that decline, weve got a bigger question were asking tonight. How should investors value the tech giant right now. Like Kimberly Clark, lets say, lets look at this breakdown. Apple is down a whopping 26 in the past year versus Kimberly Clark, which is up by 12 . Apple stock products, the iphone, and Kimberly Clark, thats kleenex. You could make the case that iphones are just as essential as Something Like kleenex. So lets go to it. Well, if you can make that assumption, then theres all kinds of growth ahead for apple. This is crazy. Were saying its actually a product that the people in india, these other places, or china, can no longer afford thats why theyre buying the cheaper phone. If were saying its toilet paper and everybody can use this, apples doing a 180 tomorrow. So i actually think eight times x cash, the fact its trading cheaper than chKimberly Clark, people are putting it in tech companies. Is that the reason to throw the stock out the window today . Absolutely not. My view on apple has been overshot on the up side. Now its likely to do so on the down side. Comparing it to consumer staples, not nearly the Balance Sheet like apple has. I think the key issue is cyclity. Obviously this quarter just reported, the guidance that they gained for this current quarter, speaks to the fact that im getting buying toilet paper and toothpaste it may be cyclical. Thats the feeling im getting. I think its really the big issue here. Listen, the issue of hardware companies, and they are hardware companies, facing the end of a cycle. Were getting at the question of why are investors not to make light of it. But listen, Kimberly Clark and apple, chipotle, devastating, but those folks had a lot more reason to buy kimberly products than its true. I dont know. Im going to turn it over to im not im not connecting those dots. Im not connecting those dots. Let those dots hang out there. The reason i make this comparison, were basically asking why are investors more willing to pay for consumer staple products, putting a higher multiple on them than an apple. I think some of the staple types are going to actually eventually come back to reality and find their way back to historical levels. That will be a problem for the people who have been chasing this, and they love the yield. Theyll lose that yield as soon as those things start to pull back. Because all of those gains that they think theyre having, thats going to pull away from them. The most interesting thing for me about apple was services, and growth. We talk about no growth. Services was growing. It was growing 20 . Its only 12 of the revenue. Thats something i think people should look at a little more carefully. But it doesnt move the needle. But it will. The second highest revenue driver. Yeah. All right. As we head to break, lets look at shares of facebook. Off sessions high, up about 8. 5 . The Company Seems to be firing on all cylinders. We will be hearing from the ceo zuckerberg in his own words. In the meantime, heres whats coming up on fast. Cheesy video of shoes falling are a literal interpretation of what could happen when amazon reports tomorrow. Well tell you how traders are setting up for amazon earnings. Plus, think earnings are the most important thing for stocks right now . Think again. Bank of america strategist says theres Something Else that could determine the markets next move. Hell explain when fast money returns. Welcome back to fast money. Im seema mody. Shares of Cheesecake Factory moving lower after hours. The restaurant chains First Quarter earnings beat expectations, while revenue missed, up about 2 . The Company Expects to open as many as eight companyowned restaurants this year. Internationally, the company is expecting as many as four to five restaurants to open under Licensing Agreements in fiscal 2016. This includes the first Cheesecake Factory in china, which is scheduled to open mid year in disney town, part of the Shanghai Disney resort. Keep in mind, shares every up about 12 yeartodate, but falling after reporting earnings after hours. Thank you very much, seema mody. Of course, we had disappointments from Buffalo Wild Wings, from chipotle. Guy, i go to you. I know youve gone to a Cheesecake Factory. You know, because you went with me. Absolutely. It was nice. Listen, ive got to tell you. I dont think Cheesecake Factory at 17 times forward earnings is crazy expensive. What concerns me is they failed a 54 a couple times. I think it trades down to 47. 5, 48. I think you buy it. Short interest in 11 will grow. The shorts will be forced to cover. Whats your pick in this restaurant space . Mcdonalds . One that just got beat up the other way, Buffalo Wild Wings. They had a very difficult quarter. Didnt come in for them very well. I think down at this level youre a buyer on that. We have all been to Buffalo Wild Wings together, in fact. Yeah. They dont make a very good margarita. Ill have to scold the bartender there. Still a little rich in my blood on Buffalo Wild Wings. Mcdonalds for sure. Remember, all these things, i think the multiple is a selfcorrecting mechanism. I think this time 19 times on cheesecake is fine. Tonight on mad money, jim cramer will be speaking to the ceo. Coming up next, you see him making his way on set. Bank of americas head of eye yields, and our friend. Hes back. He said theres Something Else that could determine the markets next move. Plus, youre looking at a live shot of bill ackman. Mary buys a little lamb. One of millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of the at t network, a network that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. Youto get the help yourefar looking for. Thats why at xfinity were opening up more stores closer to you. Where you can use all of our latest products and technology. And find out how to get the most out of your service. So when you get home, all you have to do is enjoy it. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Welcome back to fast money. The dow and s p ending higher after the fed said it will not raise rates. Or hinted it probably wont much the nasdaq ended lower. Apple was the worst performing stock, down more than 6 . Heres whats coming up in the second half of fast money. Facebook shares taking off in the afterhours session. Well be hearing from Ceo Mark Zuckerberg on what is driving growth. Amazon on deck for earnings after the bell tomorrow. Will it join the tech or follow facebooks lead. All the details later on. We turn to the markets, because with the fed on hold for now, risk assets like stock, oil, high yield bonds all rallied. But a note put out saying you can buy in may, but the fed will make you pay. He joins us now on set. Michael, always good to see you. Thank you. What do you mean by that . We think the fed is likely to hike in june or july. When they do, if they do, its going to mean that much of the, you know, stimulus that weve seen from the ecb and japan is going to be played out. And rising rates in the u. S. Is going to matter more. I dont think the markets are prepared for it. I think it could lead to a stronger dollar. Which could lead to lower oil prices. And retesting of more this year. When you say you will pay, everything that was inflated by the feds Monetary Policy will come back down to earth. Thats right. The market is very clearly not paying attention to fundamentals right now. I think actually the fed hasnt been the key driver of the rally, its more draghi and karata. I think the fed will be the voice of reason, the grownup in the room that ultimately brings the markets back to fundamentals that really arent that strong. Theres obviously high yield, and within high yield theres obviously garbage, and credits that are going to get through a difficult period. Were talking about 25 byes in the fed. I dont care what you think is going to happen this year with the fed. So if were really talking about a world where the fed is ultimately about getting credibility back, were a long way away. I guess argentina did 16. 5 billion largest em debt offering. Because the market needs yield. Isnt that going to continue even with 25 or 50 bits from the fed . No doubt about that. Thats the biggest driver of the high yield markets to date. And really since february 11th. Thats not going to change from the 25 base point hike. What changes is the divergence in central bank policy. The market thinking that the fed may have made a mistake, because growth is weak. Economists tracking models for 0. 9 , q1 gdp growth. We see very broad based, retail sales, vehicle sales, durable goods orders, manufacturing is lower than it was back in december now. Right . So its not that you have 25 base point hike, its this shift in policy and the divergence in Central Banks that causes risk off and a little bit of a perception that its all about the dollar. Stronger dollar. Stronger dollar often means lower oil. Oil has been one of the key drivers here as well. I agree with almost everything you said, except everything you said is relying on the fed hiking in june, offer maybe july. If they dont hike, though, what happens to the market . I dont think theyre going to move at least until december, if not next year. Yeah, guy, i think you need to have some sort of catalyst for markets to sell off. Whether its the fed, whether its a major default, whether its a chinese, you know, yuan devaluation, i think we could drive from here on out. Michael, good to see you. By the way, what happened to your beard . The beard left with spring. Its amazing, though, equally hot with the beard. Without a beard. Say it, mel. Im not going to say it. High yield hottie. Im not going to say it. Im fine over here. Whats more important right now to the market . Oil or earnings . I think its i think michaels right, guy is right, the fed is all about this. But waiting for this moment i think is whats getting a lot of people in trouble. Its been very painful for people that are playing forward credit event. Michaels fundamental analysis is smack on. But right now, youve got people starved for yield. That event is not something you can game as an investor. You cant time it. I think 2015 told you that. Think about where the dollar is, the dxi, the same place it was a year ago. We were talking about a lot of the same things a year ago. The fed hasnt made a whole heck of a lot of progress since then. Its probably some sort of external event, not too different from what happened last summer in a very weak growth environment globally here. He mentioned some of the data here in the u. S. Is not great. Although employment is. So i think we do probably muddle along in the rangebound thing which we did last summer and risk very fast. We talked about oil. I still think its oil. Weve watched the markets moving around. Apple you would have thought would drag down the entire market, but it did not. Tech certainly has been a drag. Microsoft, not so great. Look across, ibm, not so great. Suddenly you look at the oil names, the 45 number, over 44, by the way. Pay close attention. The way thats moving the Energy Stocks to the upside. Still ahead, facebook crushing its earnings report. Well hear from Mark Zuckerberg about how hes going to keep the momentum going at the social media giant. Bill ackman and Michael Pearson in the hot seat in front of the senate to try and justify rising drug prices at valeant. Youre watching cnbc. You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. 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Its all about enabling facebook to focus on fresh urs. Facebook has always been a founder like company, so we can focus on our mission and build longterm value. This structure has served our shareholders well. Early on we received some generous offers for companies trying to buy facebook, and our structure helped us resist that pressure. Zuckerberg said he sees more bold moves ahead, and that some of their Virtual Reality wont pay off for years. Talking about how the companys working to help marketers easily make effective video ads and measure their impact and people are sharing three times as much video on facebook than they did a year ago. Wehner noted that tough comparisons are coming in the year ahead, k0compared to a yea ago. He also noted full year capital ex pend turs will come in on the high range from last quarter, saying the company is investing to support the fast growing business. Julia, when zuckerberg said short sighted pressures, did he mean short selling . No, no, pressures that are all about the short term. For instance, he has been able to resist things such as selling the company. There might have been pressure for him to sell the Company Early on. He was able to make acquisitions like instagram. But being able to have a longterm vision as opposed to a shortterm vision, thats what he really wants to focus on. Julia boorstin from san francisco. Lets bring bob peck whos monitoring the call from the red phone here at the Nasdaq Market site. Bob, good to see you. Thanks for having me. Were seeing facebook up 8. 5 in the afterhours session. What in your view supports the valuation at this point . The number one takeaway, the concern in the marketplace, macro and general ads was weighing on the big names. You saw it in twitter, google, et cetera. You had active users, monthly users in all regions. Refused the axiom that theres pressure on the u. S. Ad revenues up 63 . They did this in better margins, too. Incremental margins of 66 . Strong free cash flow. And all of this with, we still havent seen them start to monetize yet, messenger. Theres still a lot more to go. Facebook, does that make twitter and google look like theyre losing . Yeah, one of the themes out there that facebook may be taking share from some of the smaller players, the pinterests, linkedins, dont forget snapchat out there taking share as well. But these solid results make you wonder where the ad budgets are coming from. The bulk is coming from print traditional media. I know you love the pinterest, but maybe your best bet is to whats on it . Youd be shocked. I encourage you to take a look at it. With that said, listen, again, i think facebook is a monster. I understand exactly what dan is saying. But i agree with pete, i think this is a stock that has many levers to pull. I think their best days are ahead of them, not behind them. A lot of people sold the stock on the back of google and the back of a couple of analysts that took down their numbers in the end of the quarter. I think facebook goes up higher. What do you say to 8. 5 . Look, ive been very constructive. I feel like im in the same place as with apple last night. I dont need to buy either of these stocks, except i think facebook should be a core. I think ultimately when you have a place where their margins are growing, i think theres absolutely their earnings are growing. The correlations with google to this quarter were very, very tight. The fact that theyre accelerating past google, much better numbers than googles quarter. Thats actually something to Pay Attention to on the positive. But buying it tomorrow, wait for this. 117 level, i want to see if it can hold that level before i would be a buyer. Bob peck made good points as the future levers they havent begun to monetize on. Look, i cant help you with it. When you have a company like this eating everybody else, it seems like a onesided trade. Have a ball, get in there. Its going to a hundred. Its just not my cup of tea. They do have some levers. If they are able to show the sort of monetization that was a much cheaper acquisition with messenger, i dont know how you monetize a messaging system. I think of aol, instant message 15 years ago they can do it with whats out. How do you monetize messenger . Through business purposes they talked about so far. Customer service, special offers, all on an optin only basis. Thats how theyll go about monetizing it as well. We dont this it will be traditional advertising. Amazon reporting tomorrow. Bob, you covered that as well. What should we expect here . Were looking at 27 billion in revenues, a little over 1 billion in operating income. The real question marks will be on the margins. Margins going forward. Competition to aws with google and microsoft coming in there. How much more expenses well see dedicated to that going forward. 625 price target. This is one where id go to dans side of this whole thing where im a lit more negative. Because skeptical. Time to be skeptical. In any case, look at amazon right now, you can never get your arms around the valuation. Look at each and every one of the segments they dominated, including the cloud, id expect it to be a Strong Quarter for amazon once again. These guys are spending a ton of money on things such as content. Aws continues to dominate and rocket. The rest of the company is something thats not growing as fast. I dont need to buy forward earnings. Bob, what are the odds it gets spun out . Going into 17, very different business with very different margin structures. On the sidelines with a neutral rating. It trades around 35 times or so, versus 20 top line growth. Bob peck, man. Bringing it. Well let you get back on that facebook call. Well tell you the three big biotech stocks that could cause a 10 billion move in the market. Bill ackman and Michael Pearson are feeling the pressure from congress. Our own meg terrell is in d. C. With the details. Meg . Melissa, thats right, intense grilling. Well bring you all of the details. What theyre getting asked and what theyre saying, right after this short break. And that in a new house, you probably dont share the same tastes as the previous owner. [ dolphin chatters ] so when you need a little house painting or a complete remodel, well help you get the job done right, guaranteed. Get started today at angies list, because your home is where our heart is. Outgoing ceo of valeant Michael Pearson and bill ackman both in the hot seat today testifying in front of the senate on valeants skyrocketing drug prices. Meg . Its been tense in this testimony here. Starting out with mike pearson expressing regrets over the Business Model of acquiring drugs and drastically raising their prices. Ackman coming in saying hell make sure this never happens again. As the Committee Members started grilling these guys, look at Clair Mccaskill asking about the raising drug prices. Can you find me one drug valeant didnt raise prices on . One drug, after you acquired it . Not in the united states. Mccaskill then asked howard schiller, the former cfo, and he volunteered one drug that didnt have a price increase on it. They said theyre going to fact check that. Some members of the committee focusing in on bill ackman, as he is now a director of valeant. So, a lot is going to change. We have a new ceo. Starting probably monday. A lot of the board is going to turn over. So were going to have a new board for the most part. Were going to have a number of the new directors that have a tremendous amount of pharmaceutical industry experience. And pricing will be top of the line. To your point on the decline in market cap, i think the right now companies where price has a meaningful profit, that will part of the testimony has been going on for an hour. We understand that senator Elizabeth Warren just came in and sat down and may ask these guys some questions. Expect it to get more intense before it wraps up. Should be interesting. The fact that pearson and ackman are basically saying these big drug price increases will not happen again, and ackman saying essentially the board is going to be brandnew, this underscores the point that the Business Model is out the window. It seems like investors really at this point do not know what theyre buying, if they are buying valeant shares. Thats right, melissa. The point that both pearson and ackman are trying to make and the committee is not buying it is this is a part of the Business Model. A few drugs they acquired and raised the prices drastically on. And saying the other assets are competitively priced. Whether investors agree is another question. This really turns the spotlight back on valeant. I wonder, meg, if this benefits biotech overall as it portrays this as a valeant issue or just raises concerns once again about drug pricing overall across the industry. Thats a good thats a very good point. They actually named this hearing valeants Business Model. It is clearly focusing on valeant. What youre seeing is it stretching across the industry, into companies with more similar model to valeant much the pricing pressure is felt across the industry. As long as theres any company thats considered a drug company, which valeant is, its bad for everybody. Meg, thank you. Meg terrell in d. C. At the valeant hearing. The most difficult thing about this thing is theres no clarity. We dont really know what valeant is. What do they stand for . Its very confusing right now. We know that there are a couple of companies that are Real Companies that they acquired. But there are some that we dont know now about it. Ive personally been staying out of this thing. Its had incredible volatility. The stock down 60 . Still the sell is still on. Im staying away from it. Also, think about the companies that these guys bought with their stock as currency. A case where, i mean, you could make an argument that management was really shrewd in being able to use that. And inherent value here. I agree with you guys. Ultimately their core business is not something were investing in at this point. The valuation is not really relevant. This comes ahead of a big week for biotech earnings. Dan had to move over to the smart board because theres so much in this space. Some of the things youre talking about, valeant, obviously extended over to a lot of other names in the space. The s p, biotech, etf still down 40 from the highs last year. Up about 25 from the lows. We have big biotech reporting this week. Big expected moves. These are three of the largest names in the space. Amgen expected to move 3 in any direction. When you do the math, you know, its 3. 5 billion, 3. 3 billion, 5. 5 billion. Heres the thing. If this sector is going to get back on its horse in a very difficult regulatory and political environment, it will need these big names to do it. The either direction moves to go to the up side, or see the xpi probably making a move back for those prior lows. Amgen is more after the bell. Look at the Fourth Quarter a few months ago. They crushed eps. They raised guidance, 12 times forward earnings. Its cheap. Whether the stock goes up or not, i dont know. But i think amgen is one of the best in the space. Up next, final trade. Stay tuned. Im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. Final trade time. We want to get the final word on facebook. Bob, what are you telling investors tomorrow morning . Strong advertising driving this acceleration revenue of 60 . 2 billion more users to monetize. Grade a. All right. Bob peck, thank you so much for being here with us. Time for the final trade now. We go around the horn here on the desk. To bob peck and zuck, its going to go higher. Interesting. Tim . Very nice. Starbucks in a position again. They have growth across multiple channels. I think the pullback is overdone. Xlk, carters call to sell at the top of the channel, i agree with that. I think facebook is the only name in the Top Ten Holdings thats been better. Youre going on vacation. I am. You have yourself a good time. Thank you. Wherever youre going, have fun. Thank you. I will. You know what else is important . What . Gold market. Look at pete over there. I like it when you make that call. Thanks so much for watching. Tune in tomorrow at 5 00 for more fast. My mission is simple. To make you money. Im here to level the Playing Field for all the investors. Theres always a bull market somewhere and im here to help you find it. Mad money starts now. Im cramer. Welcome to mad money. Other people try to make friends. I want to make money. Call me or tweet me. Youre crazy. Thats what i would have said a year ago if you told me the market could hang in there with the biggest company