We will tell you what has him so bullish. We start off with the biggest stock in the world, apple reported earnings moments ago. The stock was falling after a revenue miss. We got full team coverage. Our joan e own josh lipton is at apple headquarters on a brandnew red iphone. We will check in with him later often. Josh, we kick it off first with you. Mel lit i lisa, lets start with the this iphone, they were down year over year, in an interview with ceo tim cook who cold me in part that demand looks better than those units suggest because he did take down that channel inventory that 1. 2 Million Units in a quarter. He said iphone fans may be deferring that upgrade because of what they think is coming. He told me, we have seeing a delay in purchasing behavior, we think is a consequence of the number of groomers and reports about future products. That is happening. However. If you look at the iphone outside of greater china, iphone units grew very nicely. We had more upgraders in the first half than ever before and more switchers than ever before. There is a lot of good news in there. I did ask him, what about those ambitions in self driving car technology. We know apple did secure those permits to test that technology here in california, cook telling me, we are investing in a ton of machine learnings and autonomous systems. Can you use those for a variety of things, including temperatures im going to hop on the calm, mel lisa, bring you your headlines as they come. We have apple shares trading down 2 in the after session. They announced a huge buyback, dan, what do you think of the quarter . I think if you are along this stock yeartodate, its the market cap of chevron this years ago in and of itself. I think investors were expecting the fact that it is down a couple of a percent should not freak anybody out. Remembering the fact that they missed a 52 million iphone unit number by a million. Took down channel inventory. They sold 78 million last quarter. When tim cook is talking about buyers pushing out purchases of new phones, theyre looking again at that Holiday Quarter thats going to have supposedly two new phones with all the bells and whistles people have been waiting for the last few years, it was better than expected. All things being equal, a little conservative. This is an overreaction in the stock here . I dont think, its as good as last quarter was. This quarter pales in comparison to last quarter. Last quarter in terms of the significant move. You saw it go to levels we are seeing now. Now, postpeople are not inclined to trade the stock. Karen and tim have been steadfast, own it, it will go away. If you are so inclined to trade the stocks. There is a chance on this quarter you could see old highs from april of 2015 when it traded up to and failed at 134andahalf. Thanks for the kudos. I did sell it and went away. Instead of owning it and it went away. When we talk about is an agreement. Every phone they missed. By whatever they missed. People assume thats just the phone to be purchased later. A higher price margin. So thats great. Who knows if that will happen or not. Next quarter they have a free pass as well. I think there is a floor under this stock. We really got to wait. This does Say Something if apple is ready to purchase stock near record levels, right . I saskatchewan my head on how people suddenly are willing to wait and be focused only on hardware when, fact, a year ago or when the stock was at 90 bucks, people were complaining it was a Hardware Company and services werent doing anything. Services were up to 18 , thats not impressive. You get to a place where why are people more excited. Lets face it. Even you, dan, you are more resigned to the fact that things are not so bad. I totally hear that. I think that makes sense. But wasnt this story terrible threequarters ago, services were amess . Im just surprised after a 60 move year over year on the stock people are now saying oh, not so bad now. Didnt we have the conversation the other night . This is whats going on with these stocks. Its a massive September Imt bubble amongst a small group of names. So id look foolish. I like the show you see about google. Google had giant top line growth. I understand, look at what we are talking about. These five companies, including microsoft. They opened up that day within they supposedly missed. Its down 2 . What im saying is there are buyers in this stuff. Im not making a case to buy. Thats going to take a shift in Market Sentiment in my opinion. At this point if were saying this quarter is a free pass. We look forward to the eighth. What is going to stake sentiment down at this point . Can i ask the question back . Hes trying to be snarky. I appreciate the answer. I guess the question is what is different now threequarters later . Its not about being right or wrong im not long the stock right now. I havent been riding up either. I am curious what is different now whereas a year ago we were have been concerned this was just a Hardware Company. A year ago we were in a different market. There is so much uncertainty. Look at the volatility. Right now, this stock and four or five others are on the market. Thats it for me. Meshlgs you say, what could change the story right now . It has to be something fundamental. There was a rumor the other day. They will come out with their echo competitor in june. That would be great news, not because it will move the needle of the other profits. What would take sentiment down . Or if they had a galaxy meltdown. What if they push out to october . I think if you want to get a higher valuation, if they want to get a higher valuation for the company. I think services now about 13. 5 give or take of revenue, i think it has to be much higher and much higher means i think low 20s or. So if they can move the Services Number up and some have keep the hardware portion intact, thats why it gets a higher number. Let me ask you this, if you had to, its not would you rather, if you had to put fetch money to work, would you put it into am right now, tim . No, it go etc. To a place the same reason i was constructed or more constructive. I didnt buy the stocks there, the incremental buyer of apple handset right now is an existing owner of apple. Carolina is not going. Its not okay though, a replacement cycle . I think the install basis has plenty of room to grow. I think this is where you want the Services Growth to go. When you ask me, we have at least twoquarters to go before we get into prime time apple. We got out of the best two quarters of this company. I dont want to own it after a 60 move. At evaluation, thats suddenly not that cheap. People talk about it x cash, 250 billion offshore, you cant treat that as cash. Theyve already mortgaged some of that in the bond market. Karen, fresh market in apple yes or no . If i owned it, i wouldnt sell it. Okay. Thats yes. You wouldnt go out and buy it foreman 45 bucks. I wouldnt have owned it if there were something great happening today. So its still it means today for something happening in september. Me not at this price. I may regret this six months from now. Given the vix trading single digits. Given this was not a great quarter. I do think there was a chance you can wait for 134andahalf. 134andahalf is the prior all time high. Yes, there was. 2015, dan. Another ten bucks lower. The apple moving in the after hours session. Na applies for instant earnings reaction on the chart. Look at that. Lets talk about those levels you guys were talking about. Exactly, those 135s. Thats the key. But dan just mentioned, so, guys, lets talk about it. Here is a chart of apple. What . You can draw the line like this. Heres the after hours first. So what we know it closed at 147. Spot 145 today. This is what happened in the after hours. No big deal. Lets put this action in the context of the daily charts. So what we have here is the chart of apple as of the close. Essentially, again, just as the fundamentals are subject, so too are technic also. This is how subjectively i would draw the lines t. First thing you could say its a well defined head and shoulders bottom with a breakout above those tops you all were talking about. There is your breakout. Often you will get a check back after a breakout or a recast. So those from january until june, a breakout to 148, todays high, its every possibility. I would think likely that were going to check back to the point from which we broke out. About an 8 selloff. We are already down two now. No big deal. So thats something that has to be considered here as we look at apple. Now, i would also point out this. This is telling. All i have here, this is a threeyear chart. Its apple juxtaposed against the moving average. They are trend lines. How far above or below trend can you get . Interestingly, this was exactly 18 ae would have the average. It has stopped there every time. Guess whats happening . Per chance, its stopping there here, after the hours trading. So i think all of this adds up for no mu money to apple. Try to buy apple on some perspective dip. We are getting a dip here after hours. I . I we invite carter over, per chance. All right, come on over, carter. Thank you for meeting with us, carter. Breaking outfit. So just to underscore the highlights here, you dont see parental buyers. You see a check back. These guys are all over it. They know that. What does this mean nor the nasdaq . All right. I might have a chart here. If we can look at it. What it is is a chart of the top five stocks in the s p 500. So in this order, of course, apple, then google, then microsoft, amazon and facebook. These stocks represent some 3 trillion. Per chance the bottom 250 stocks in the s p 500 are the same value. Interestingly the bottom 250 and the the five are the exact amount precash flow. Bo pieces are trading at yield or 25 times. Heres the issue, you look at that chart, we have blown through the top. We we heard from amazon, we got facebook left. At this point, who can we rely on to push that higher . It wont be apple. They will pull lower. The issue, are we so crowded in a few names . We are. Heres the actual stock i think is important. 19 of the time, its not that rare. 1999 to the prempbt the top equal 50. When that circumstance is in effe effect, whiches now, invariably the top five start to under perform t. Last was in october. Thats exactly what happened, people get credit. Right . I think you fade it as a group. So they under perform the bottom 250. Dont necessarily go down . Go down more. Thats where the market is. The pushback from the fundamental point of view, why would you want to own the bottom 250, with big once like ford down there or what have you. Thats what makes the market. I think the line is too steep. Its gone too far. I dont think there is much that can move it higher from here. It sounds like theyre sure. Would you put that . Decide. Heavy block here ill say real quick. We talked about the day when the vix goes higher and the Broader Market could go higher, it could potentially be a move to the downside. We saw it today the vex traded single digits. We talked about the potential happening, so i think the stars are align, given what apple did might make some sense. I know this was a technical conversation. I think there is three things that can make investors feel a whole heck of a lot. Whether its 145 or 155. In the next few months if we get some clarity, what itself the product there . Whats the product in voice to compete with amazon and google and those sorts of things this is a company that needs to broaden out and extend services, obviously. Tim you are not so excited about 10 year over year, im not either. Its not growing gang busters how Many Companies do we know that has a quarter billion revenues. They havent done it yet. The iphone company. Carter. Thank you. Coming up, apple is not the only shore, gym add that Conference Call is under way. We will hear from the ceo about what he thinks the street is missing. Plus, auto sales are crashing. Are they flashing a warning sign to the rest of the market . Why the worst may be yet to come and oscar mun soz attempting to answer for the airlines forceful removal of a passenger on one of its flights. He will bring you the comments ahead, everyone talking, much more fast money still ahead. Tired of paying hundreds more a year in taxes and fees on your wireless bill . Only tmobile one gives you unlimited data with taxes and fees included. Thatll save you hundreds. Get two lines of unlimited data for a hundred dollars. Thats right. Two lines. A hundred bucks. All in. And now, the brand new Samsung Galaxy s8 is here. So what are you waiting for . Get the new galaxy s8. Plus get 2 lines of unlimted data for a hundred bucks. Taxes and fees included. Only at tmobile. Im dr. Kelsey mcneely and some day you might be calling me an energy farmer. Energy lives here. With e trade you see things your way. You have access to the right information at the right moment. And when you filter out the noise, its easy to turn your vision into action. Its your trade. E trade. Start trading today at etrade. Com welcome back to fast money. I want to draw your attention to smi technologies, this company las sped up the content over the industry, earnings are pretty good for the quarter, it was during the conference all, on the Conference Call, it gave a weak second quarter. Hence you are looking at the stocks are falling right now. Thank you, susan lee at headquarters. Guy, whats our trade here . The cloud portion wasnt strong enough, i dont think. Thats what theyve transitioned up to. But, its not a crazy expensive stock. Even if this guide. What is it trading 55andahalf . If it gets down to 52andahalf on the technical portion. You got to buy the name. What im looking at are a bunch of gaps over the last year, four massive gaps. When i see gaps like that in the chart. I start to think this company does not do a good job forecasting their own business. I dont know, to me, i will be a bit more conservative if are you a trade irand you want to buy his falling knife. What falling knife . Who said anything about a knife. Thats falling something. Go back five years on this company. You see a lot of air. This stock takes the elevator up and down . It crashes on the 40day rule. Or its 4 gdp, one or the other. Anyway, now the united Ceo Oscar Munoz is testifying on capitol hill. Phil, you spoke to munoz earlier today. So what did he say . Reporter the real question is whether or not united and other airlines following these hearings or more later this week will face more regulations, more rules when it comes to how they handle passengers, specifically overbooking flights. Heres what happened when we caught up with oscar munoz. A quick question, are you worried there will be regulations pushed because of this incident, whether with overbooking torreservation change fee, moving those away . Wait, thats a simple question. People want to know, oscar. I dont know. I think the sense in the room was one of the admonition to get your collective stuff together. You, the industry, and you can avoid us, which i think is fair, right . If we dont do what we said, we should be able to stand up to whatever they may offer, everybody. As you take a look at shares of united airlines, keep in mind, since april th. It was on april th, dr. David dao was dragged off that united flight in chicago. Since then the stock is up 5 t. Reason we point this out is many people believe unless there are strong regulations, those that were beyond overbooking. Its unlikely you will see rules that will impact the bottom line for the airlines any time soon. All right, phil, will you stick around, we will get to you in auto sales, in the meantime, by the way, let me replay it in slow motion, you see his hand on the wall, oscar will walk away, gently on the shoulder. He got him. Exactl exactly. Anyway, you are looking at delta today. Yes, that was helpful. I dont know if it was the testimony on the hill today. I think since the first 36 hours, munoz has done a greats job of righting the pr ship. Delta was good. We talked about this for a while. As terrible as that video is. There arent a lot of places to go. Whatever. So i like the om still. Long delta, united and american. Trade amongst fundamental also, valuation what is going on, domestic capacity for the spire industry is up 3. year over year delta came out was one percentage point better than expected. Which is good news for delta and saturday going into earnings was terrible. Playing the global economy, you own them here. Should we be worried about transports overall . 5 or 6 away from the 56week highs and where we are in the markets . I like seeing the transport, a line in the sand. It has held there heroic amy. Maybe the people at united should take a page out of mr. Le beaus book and get the point across. As you mentioned, he did yeomans work. They are cheap. Take a look at spirit airlines, we talked about it for a while, through 60 bucks, which is right here, its off to the races. Still ahead, apple and gilead reporting earnings moments ago, those Conference Calls under way. Weve got full coverage. Josh looking at cupertino and the blue phone, red phone madness. Well bring you all of the headlines, you are watching fast money on cnbc. In the meantime, heres what else is coming up on fast. Jack is back. Shares of twitter are surging. Well tell you why they can head even higher. Plus, shares of auto stocks are tanking and there is something to suggest its about to get a lot worse. Well tell you what that is and what it means for the market kwen when fast money returns. The power of innovative thinking. The power of 100 of the worlds top companies. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. After becoming one of the largest Broadband Companies in the country. After expanding our Fiber Network coast to coast. These are the places we call home. We are centurylink. We believe in the power of the digital world. The power to connect. And thats what drives us everyday. Better than a manual, and my hygienist says it does. But. Theyre not all the same. Turns out, theyre really. Different. Who knew . I had no idea. So, she said look for. One thats shaped like a dental tool with a round. Brush head. Go pro with oralb. Oralbs rounded brush head surrounds each tooth to. Gently remove more plaque and. Oralb crossaction is clinically proven to. Remove more plaque than sonicare diamondclean. My mouth feels so clean. Ill only use an oralb the 1 brand used by dentists worldwide. Oralb. Brush like a pro. [ music playing ]. It starts a chain reaction. Thats heard throughout the connected Business World. [ music playing ] welcome back to fast money. We are live at the nasdaq markets on this very busy earnings night. They posted lower in the postmarket. We have full team coverage. Josh is in san francisco, meg terrell is listening to gilead. It wouldnt be Apple Earnings without munster. Fittingly, he has the igone. Gilead is trading 30 in the after hour session. They just blamed uber for the selloff. First, we turn to more bad news for the Auto Industry. The sales continue to fall hard. Phil lebeau joins us with the details. These are rough looks at april. Take a look at the big four in the united states. Of these, they are down, only toyota did slightly better than was expected t. Rest did worse tan expected for the month. You look at the auto warning sign, a couple other warning signs out there. You look at whats happening in terms of inventory levels. The average incentive of more than 3300. Thats close to a record high as well t. Overall sales rate came in at 16. 88 million vehicles for the month of april. Two straight months, most are saying, yeah, we will not get to that 17. 5 million. Below 17. 5 as you take a look at shares of general motors. It was under pressure as was ford and other auto makers as well t. Primary reason is this. How far does it drop . Are we looking at death by a thousand cuts every month we see lower and lower sales, maybe down to 16andahalf, 16. 6 million. When do they make production cuts . Will they . So far, everybody is saying were sticking with what we have, even though there are ploeted inventory levels, guys, back to you. We are looking a at used Vehicle Market on the new Vehicle Market. Not only are prices falling precipitously, there is less competition from two to threeyearold vehicles. Preferably, a lot of leases will come due or expire next year or the year first half. That will put additional pressure on these cars. Right. We are just at the beginning of that cycle. You go back about four, five years ago the auto makers started ramping up leasing. A lot of those are three and fouryear leases, now were at the beginning of that cycle, maybe 30 into that cycle. So it will continue for a while. 3. 6 million leases to expire. 4 million will expire next year. A big wave of cars come dupe. Phil lebeau in d. C. What do we do with these other stocks . I think there is a Little Silver lining. Ive made at this time f15 before but theyre at 3. 3, p. Thats the most profitable sales to be clear until gm says it zbn reaffirm, theyre north of six bucks. I think theyre cheap. We have priced in this pullback and we priced in the fleets coming online. So to me, gm is the one to own. Value stock or value track gm . Im tracking it. Im not tracking anything. You are right. Its simpler. I shared tims thoughts. Its just that this phenomenon has been happening in gm a while, where people think, these are great, these are great, next year, next year, now this may not be that time. I dont know if we have to go through a whole bottoming out. I dont know, im very disappointed, though. Gm was a 40,000 stock in 2014. The stockmarket has only gone higher. You can make the argument the Auto Industry has been maybe the best in their history, arguably. Yet the stock is down 18, 20 from that. So my question has been and continues to be if the stock cant go up in that environment, when is it going to go up . We mentioned ford a couple times, well say it quick. Below 11 million. The downside of ford looks potentially dramatic. In the face of these potential head windzs the auto makers could see, someone like a David Einhorn comes in proposing breaking up the company. Its not breaking up, its the financials. The pain, a part of the company. Yes. And that helps gm shares. Is that what you are hoping for, for instance in. Its not what im hoping for, i think gm is continuing to execute. I like the cost efficiency. Phil said they have to cut back on production they are proposing to put a focus on where there are value parts in the chain. It will get you into some of the parts, which i think are cheap. This is a 5. 5 dividend stock. I think its smart. I dont think this flies at all. I dont think this is a chance this gets inactive. Speaking with the auto, tesla reports, dan will move with the Options Market. The Options Market is implying ability a 5. 5, in their direction. Which is shy of the average moved 10 since the ipo. We were talking about gm and ford. These are companies that sell thousands of cars globally. When you think about tesla having its market cap passed, both gm and ford over the last few weeks. We spent a lot of time focused on this Company Relative to the ones selling millions and millions of cars. This is the future. When i think of tesla, we already now the q1 unit sales and the capitals, they have pushed out the solar roof t. Vision. So we want to know about this model 3. This is a mass market vehicle. Thats the thing thats really going to compete with the u. S. Auto maker ford and gm. So lets just photo the chart. We have implied tomorrow. There is a lot of news in the stock, it made a new 52week high today. This morning it sold off a couple percent here. We have this move where the stock is up 50 . To my eye, i think using Carter Braxton wursts technology you have the breakout level from just a couple weeks ago and i just want to make one point, just for you guys who are long and strong and thing this thing is going, its a beautiful breakout. I would expect a consolidation knowing what we know in the last few months. You in dans camp . Not always in the same camp. Thats true. Bunchs. I understand, the levels that he is looking for in a downside is more 280 the high in 2014 and 2015. This year, stocks didnt trade particularly well. Made an all time high reverse. Maybe people are taking pockets ahead of the corner . I dont know. I say i think you buy the stock again. From options action, check out 5 30 p. M. Eastern time. Lets head to apple shares the stock is lower in the postmarket sex down now. Well check back with trujillo. Fast stock is down 30 . We will check with twilio. You are watching cnbc, first in Business World wide. Hey gary, whatd you got here . This bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at td ameritrade. I started buying twitter actually because i think they got their act together with Artificial Intelligence. Twitter the key to Artificial Intelligence is data and twitter hasnt been able to harness their data to deliver tweets and use information and how they deliver ads. No you they sort of hired the right people. Theyre starting to get higher. You see it in the results you get than chronological. You see things that are relevant that make difference. That was billionaire mark cuban talking to cnbc about his investments in twitter t. Stock climbed. The social media giant plans to add partnerships to the streaming initiative. For more, lets head over to Julia Boorstin in louisiana. Reporter hey the company unveiled 16 new content deals, the live video strategy as it looks to lure a broader range of advertisers and more ad dollars to reverse its declining revenue. I spoke to the twitter cto and coo last night, anthony noto. We think we have significant better value on return on investment that theyre makening on our platform. We have to continue to educate them on that and this new inventory will be within way for us to garner greater attention from them and hopefully better allocation of budgets. The partnerships spanned the News Entertainment including live wnba games and live coverage of the pga tour t. Verge and buzz feed are watching live news show. There is a new intertanew enter culture show. The areas on twitter are the most active with the most discussion. We are simply brigg onto the platform the live video of those events they are talking about. For example, our deal with via com brings on red carpets for award shows we know our audience already cares about. In the first quarter, twitter aired about 800 hours of live content with 55 of viewers under the age of 25. Twitters revenue is lagging user growth and no to wont say when that will change. Thank you, very much, judgmentia. Twitter has been on content or maybe mark cuban is right, maybe its the user lening. Back to when it was taken over in the fall. I think one of the main possible acquirers was salesforce. Com. They wanted it to be implemented across their platforms. To me, you have two separate things here. Mr. Kun is talking about learning, mr. Noto is talking a about the live strategy. People western buying it t. Sales declined year over year, they are sticking with it, signing a lot of teams. Well see what happens. You stick with vieia. Com. If you think about what the issue has been for these guys, yes, i know they need to monetize, i think the engagement for this ciancia what makes it so valuable. I say on the name and i still dont know what the value is. I know the valuation is 50 times next year. That doesnt sound terribly cheap. Mark cube isnt a smart guy. I would consider being he top picked the sale of his company. He knows a thing or two. We talked about twitter. He echoed a lot of things and am mr. Iified things. Maybe well look back and say last week is when twitter figured it out in terms of stock performance. Im with these guys. From twitter to twilio, the stock, twimio, tanking 30 in the after hours session, it was a hot idea adidi has more. Reporter the Communications Company missed on its 22 and full year guidance. I have been on the call, ceo jeff lawson says a part of the reason for that miss is one of its top clients, uber, has pulled back some of its business. Lawson says uber was pulling back its business because its changing the way they do messaging accounts for 12 of its total revenue. Lawson said absent uber the company grew 60 year over year in q1 and that they remain confident the company will be resilient without the ride sharing companys business in the long run. Analysts have twilio is as heavy dependent on their few big clients like uber and facebook t. Company says it has little customer concentration and well hear more from lawson when le joins jim cramer on mad money this thursday. Melissa, back to you. That will be a good examiner seau, adidi thank you. We knew this since it went public, its revenue base is concentrated. I harken back to the days of the late 90s when we saw a lot of darlgs like twilio providing services to these big growth industries, right. They were very concentrated. As soon as some started to fall, you saw them get decimated. I dont know what the value is. Expected sales growth 30 over the next few years. Lets see what jim has to say with the ceo. You go from there. Does it seem like the big clients sort of grow out of twilio, either do it by themselves and thats sort of a risk . Yes, to the business model. They are getting 12 of revenues from any one source. Uber and facebook. Yeah. All right. Still ahead, it is our big after hours movers. Gilead lower t. Conference call just wrapping up. You will not believe what apple ceo tim cook said about the quarter. Well bring those comments and much more when fast money returns. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. The shlike a bald penguin. How do i look . [ laughing ] show me the Billboard Music awards. Show me top artist. Show me the top hot 100 artist. They give awards for being hot and 100 years old . Well take 2 [ laughing ] xfinity x1 gives you exclusive access to the best of the Billboard Music awards just by using your voice. The Billboard Music awards. Sunday, may 21st eight seven central only on abc. Welcome back to fast money. Im meg terrell. Check out shares of gilead, trading down after hours after a mix on the top and bottom line for the first quarter. They did reiterate the guidance, everything looking light for gilead except a new hiv drug a. Cash file at the end of q1. Of course, all eyes are on what will they do with it . Will they pursue mna. There was a question on potential tax reform is affecting the situation t. Ceo said no, theyre trying to tune that out. They do have an eye on deals. Listen to what he said. We focus our efforts on broadening your team, adding some depth both scientifically and business experience so we, in fact, have much, much greater capacity to assess things and, in fact, fully engage with our teams accepting a number of different opportunities, which we think could play out over the coming years. We start to make progress in getting partnerships and potential acquisitions together. Not getting specifics on what gilead might try to pursue in the size of the deal, now, back to you. You mentioned the strength of the hiv franchise, there was a weak inside in the hepatitis see franchise. Was it greater . That week is greater than anticipated tore Competitive Pressures from other Combination Therapies that theyre much greater than an lests had thought . You know, it came basically in line, it was light. There was a miss overall in revenue in the quarter t. Company talking a lot about the new hiv drug, saying the uptick could be going pretty well. In terms of the continuation of the story, people expecting that to be pretty week e weak right now. Mech, thank you, meg terrell. On the gilead call here. A lots of people talk about gilead, they got a lot of cash. They will do a deal at some point who should they buy . Who should they boo i that would make gilead itself a buy . Any thoughts . I think they should talk to a immun no therapy company. I cant speak exact. Thats the direction they should go. The problem is they will wind up underpaying. If a company was needed in an activist, especially with the cash forward they have, its probably gym add. Than they been punished for it if they hasnt made that purchase. The ats was a little betterthanexpected overall. These numbers are flat. The hiv drugs looking at this release are bigger than the earnings before. Theyre at 52 t. Part of the hiv is better business. This stock has been destroyed. The last 20 bucks i have to say have been surprising. Its overdone. We have surprising comments from apple ceo tim cook on this quarter. Josh. Melissa, a focus on the call no surprise is greater china. Cook saying apple will perform in his words a lit better in that region. He talksed he is not forecasting here a return to growth. Take a listen to what he said about china and another market he is interested in, india. We continue to be very enthusiastic about our opportunity in china. With eset a new march quarter record ford india, where revenue grew by strong double digits. We continue to strengthen our local presence across the entire ecosystem and we are very optimistic about our future and this remarkable country with its very large and young techsavvy population, fast growing economy and improving 4g network and infrastructure. Mel lisa, you hear questions about apple and qualcomm that fight has gotten very ugly very quickly. Tim cook saying on the call there has not been a meeting of the minds and we are depending on the course. Lets bring in dean munster who has been on the brandnew red iphone listening to the Conference Call. Whats your take on the Conference Call . Well, theyre hammering the service, not surprising, the iphone missed. They want to direct attention to services, luka the cfo gave three metrics. They talked about the growth. The addition of 15 million subads in the last 90 days. Also the resiliency despite a miss in the iphone. I think investors got a little of the both here. The disappointing iphone the positive on the Service Force the longer term. Whats your interpretation of whether the Services Number was really that positive . I mean the growth was pretty decent. The absolute, number, though, not as big as many investors would like it to be. Is this like, look over here at this seeming area of strength. Look over here is this area of weakness, be i the way that area of weakness is our core competency. I think the frequency of services is probably an effort to get people to focus more on. That they inchristian rate issed their service itself growth to reach the 100 company at the end of this year. To expect a 20 growth on the next four years so it was the same as it was in december. It will probably be 20 of apple revenue in the next five years. So it will take time. This is one last note here is that the cfo mentioned the upside was a margin or partly contributed to the service. That reports to the importance. The iphone 8 doesnt happen until the fall. Is there a reason to own it now than december . There is, two reasons. Investors are likely to get opt mick. That hopes springs eternal, separately the june quarter is derisked. That was the big headwinds going into this fall. Now its up to investors imagination to guess what the growth rate of the iphone in this next cycle will be. That is usually good for the multiple. Thank you so much. We really do appreciate it. Thank you. Dean munster, practice around new red iphone, by the way. So stocks down by 2. 2 here. Weve adjusted the Conference Call. I think china is no longer this big story. People are ready to shrug that off. Do you think china should be the big story . I think china is an incredibly competitive market t. Deminization serves well for Electronic Payments on smartphones, et cetera. The growth from india is fantastic. The average selling of the cell phones three times that of androids. That is basically 25 of the annual household income. Tim cook said india is where carolina was six years ago. Dont hold your breath. Two years ago marks closely to 50 . Now the margins have to stabilize as well. Up next, clip is getting a rest today, guy has one name in the space he can buy. More fast money straight ahead. Our 18 year old was in an accident. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. It actually helped to know that somebody else cared and wanted make sure that i was okay. That was really great. Were the rivera family, and we will be with usaa for life. Usaa. We know what it means to serve. Call today to talk about your insurance needs. Its time for a final trade around the horn. How about yahoo, sum of the parts has not kept up. Its easier to do this valuation. Molina was up a lot on the fact the ceo and cfo molina are leaving. They own a bunch of stock. If you are buying it for a takeover just wait. Im with Carter Braxton. Wait. Shares of xilinx. Get you done, mel. Im mellissa lee. Thanks, for watching. Mad money with jim cramer starts right now. My mission is simple, to make you money. Im here to level the Playing Field for all investors. Theres always a bull market somewhere. And i promise to help you find it. Mad money starts now. Hey, im cramer, welcome to mad money. Welcome to cramerica. Welcome to our invest in america, defining the future series from cnbc one market in san francisco. Other people want to make friends, im just trying to make you some money, my job is not