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