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tv   Fast Money  CNBC  April 14, 2022 5:00pm-6:00pm EDT

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about whether they could hit those numbers and i think that is what that skepticism is about. >> see if maybe there is another bidder out there who knows. julia, thank you so much we'll have details coming up from that all hands meeting with twitter employees. it does it for us here on "overtime. have a great long weekend and holiday. "fast money" begins right now. live from the nasdaq market site overlooking times square, this is "fast money. i'm melissa lee. tonight tim, karen, dan and guy. ahead on "fast," it is the talk of the take. elon musk's unsolicited take over bid for twitter, littered with his 420 weed references we have musk's brewing battle with the board for the potential for other bidders to step in and breaking down all of the other companies and ventures that musk already has besides hi crown jewel tesla. and we'll break down the day's action for big news higher by nike and caterpillar to the message in taiwan semi may be
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sending to the markets but we begin with twitter. and as we come on the air, all hands on meeting is starting management along with rank and file gathering to digest a wild day. today's move by musk to buy twitter the latest move in the chess game between the social media company and the world's richest man. a tech talk in the middle of the day. musk laid out his reasons forbidding $43 billion for what he called the defact or town square. >> this is not a way to sort of make money you know, i think this is -- it is just that i think this is -- this could -- my strong intuitive sense is that having a public platform that is max malally trusted and broadly inclusive is extremely important to the future of civilization. >> musk did acknowledge that he might not actually be successful in his bid twitter's board saying it is
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evaluating the offer but prepared to adopt a poison pill to ward off musk if needed the stock closing down over a percent and a half and trading higher in the after-hours session. karen, what is your take on this fascinating situation? >> it is crazy but my take is that a poison pill might be enough, because it is a delaware company, it might be enough cover for the company to just say no it is a valid defense. cour courts in delaware don't like to overboard what board is saying and there are shareholders really pissed at you saying they're not negotiating with me and i'm out of here and selling my stock and it will trade materially lower not because you have a 9.2% seller and a company that doesn't want to sell so, i get why it is trading well below that offer i mean, it is interesting. he is the richest man in the world but he's seen as a joker
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of a buyer that is sort of eironic. >> right. >> and i feel like you never know what he's going to do but you i do this he could do if it he wants to do it but will he change his mind tomorrow. >> and if he changes his mind tomorrow, i think there is a lot of frustrated shareholders i think shareholders owe a great degree of gratitude to elon musk because i don't see any major strategic or media companies stepping up to compete with this this is the problem. he walks away, he walks away and this is a company that i think there has been some frustration and a bit of activism around jack dorsey and elliott management but largely a company that has been left to do whatever they want to do and that includes how they are ruling censorship an the internatiet and that is something else and the subscription model is one that at least right now looks to be a very interesting alternative and if you look at the valuation of where at least
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the stock would be at the noted $45.20, six days away from 4/20, that puts the company at -- it is six times sales 28, 27 times ebidta. pretty fairly valued relative to where the street is right now. >> i would say he's a bit of a bully. this is a weak board they've been pushed around back to what you mentioned with elliott here he didn't articulate a great plan at any time over the last couple of weeks. why this is a great business and undervalued when activists come into a story, they lay that out for the other shareholders and try to garner in interest and this is about some techno utopia free speechy kind of thing and there is a lot of stuff regarding s.e.c. and his prior tweeting, you know what i mean so i do think that he'll lose interest and move on and i don't
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think this is a particularly useful exercise but there should be some strategic interest we've talked about this for a long time. as we've seen the market cap, we've seen the ad business within amazon dwarf that of twitter this company doesn't not monetize it. it is poorly run and should be part of a larger platform. >> i don't know why i ask this question because i'm going to ask the question any way and the question is, you said that elon musk hasn't offered anything in terms of what he could do better but has management though? >> he has offered $54.20. >> but the shareholders -- >> subscriptions so they just launch a subscription they 330 million monthly active users i guarantee that there is low single-digit paying for it but look at facebook and google over the last 15 years how their ad businesses have grown look at the secular shift toward
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online ads could you would be killing the golden goose. >> you don't know what will happen to the business once you get to a model. >> it gets smaller. >> and product development gets worse. >> i don't think amazon is an option i don't think regulatory -- the regulators would let that happen. >> they are the same revenue base right now and snap's revenue growth is nearly 2 x that of twitter right now. >> but the political issue though of running the world's town square. if that is -- >> that is scary. >> he probably doesn't want to do that. >> guy, what is your take here >> there is so many fascinating sub-stories. for example, and please tweet at me if i'm incorrect. but i think elon musk hired morgan stanley as his adviser and twitter hired goldman sachs as their adviser what i find really sort of interesting and maybe this shows the system works, i don't know but i think goldman has a sell
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rating on the stock and a $30 price target so if their advising, if they're advising twitter, we think it is a $30 stock, take the money and run at $54.20 people i think the stock vacillates between 45 and 55. we said this in his first foray in so by definition i think you buy the stock here >> elon musk is a genius i think that most people here will agree with that general notion that he's a very smart individual and has a knack for seeing the possibility in things that other people don't. karen and a were discussing about reasonable rockets and nobody had thought about that before and that was a genius idea should we just say elon musk could probably figure this out he probably has a couple of good ideas under his hat. >> he's going to try and agitate and push faster. this is a company that doesn't seem to care a company for investors, they
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have had a whole bunch of initiatives to monetize and i'll say this for the fifth time in the last two months, that bothers me about a year ago when they were going to double revenues and get to 320 and their mau's and they're not even close and to me, i don't know where they're making statements from because we haven't seen anything from a product perspective to get them there >> i think we're talking about two different things elon doesn't seem to care very much how profitable he could make it or not >> right. >> he seems to want to control the discourse. and that is not been -- >> but maybe, i think that that is sort of his notion all along -- maybe i'm extrapolating too much but in terms of thinking about the best product possible, right. the best product possible. >> for the user. >> and the rest will follow. >> and the rest will follow economically but didn't he say he doesn't care about the economics which i think it would be hard to raise other funds, knowing, this
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guy -- >> what do you think the mau's go to if this goes to a subscription model. >> down. it becomes a worse product and it is wonkier and more man ip lated and because of all of the trust and safety issues that will open it up and it is going to be a free for all and i'll just say this, the one thing that if you think that musk a genus, he's been a business genius and he had so many nay sayers about tesla and it become a $1 trillion market cap company but if you're a tesla shareholder and he's going to spend all of this time, then do it with tesla money because he's going to have to lever up his holdings and borrow against his holdings and there is stories about margin calls over the years and that puts him in a tight spot in a bear market or if the stock has any issues so if you're a tesla shareholder, you say eye buy into you, that is why i'm here do it out of tesla. >> so have tesla buy twitter
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>> correct because he's got to lever his stake anywhere to buy it and you run the risk if you're a shareholder because there is so much key man risk with him any way. >> i hear what you're saying there have been plenty of tales whf he was getting squeezed on his own personal loans but i think he's in a different place but is there any strategic value there. and is there ability for -- >> to go after -- >> i was on a meta -- >> facebook meta. >> no it was on a twitter, listening to guys and they were talking about and he said if he buys this thing, he's thinking 20 years out and thinking about tweets banging around in satellites in the future out in the universe maybe that is the case i don't know but i thought that was interesting. he probably has a broader master plan rather than just trolling all of us. >> there might be another bid in the work there is a report to that toma
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bravo is making things juicier so maybe this does put twitter in play. the stock doesn't trade as if there is a lot coming out bidding for it >> it doesn't. i mean that is a private equity bidder it is a big check. i don't know if they'd be a consortium but it is a tough model for a private equity you have to feel good about what you could do with it, which the company hasn't been able to do and you could v to do at least $54.20 because if elon could pay that, then they have to accept that bid instead of accepting one that is lower. >> right you are next guest said if a twitter takeover does happen, there is only two ways it could shake out. let's bring in packy mccormick to get his take. what are the two scenes, packy. >> i think there are a couple of scenarios here one, i have to say it, there is
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the potential decentralization scenario if he takes it private. i think that you have a kind of a moderation kind of dynamite on your hands if you're elon musk and even if he's the world's most benevolent dictator, i don't think he would want that interesting to see what he does there. and on the other side, what happens when elon, if he doesn't do that and he is kind of running this company as a private owner of twitter, i think he actually leads into the decentralization piece here but that might be wishful thinking on my part. >> that is interesting because that is sort of one of mark cuban's idea on twitter, for the dao to buy twitter and tokens will vote on what is trending and who gets verified that is out there as well. do you think he's thinking that far out. that would be a fundamental change for twitter in the structuring and it could have
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huge implications for how other social media networks are run? >> so this is, this is elon we're talking about so i do think he's thinking way far out. if you're buying twitter, it is this asset where the core user growth and while they have not out of the 300 m vows, the core base is not going anywhere any time soon and if you don't care about the economics like elon doesn't, you have a long time to experiment twitter has blue sky in the works. there is a lot of kind of web 3 approaches to take down twitter with a more decentralized approach to governance and all of those different things. twitter is twitter and think it is really hard to get people to do something very similar to what they do on twitter on something else. so i think if you're elon, maybe you have the two core products running in parallel. you have twitter blue and you have twitter dow or
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decentralized twitter that you're experiment with it blue sky that they already had in the works. and not a single person including elon musk wants to put on their own shoulders and nobody has solved that perfectly yet so i do think it is an interesting approach to put that back in the hands of community and building product around that but i think it is inevitable that the dialogue is decentralized owned and moderated. >> there is a notion that web 3 is the future of the platforms going forward, but how do you think a platform that has been around for almost is a years that has a couple of hundred million users, it the know grog here and it is not really attracting the sort of -- listen, if it is all about shared ownership and web 3 going forward, i don't know how you take something decentralized and break it down and make it something that they're going to have the incentive to build the products that you want going
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forward. and i know that is a bit of a mess here but it seems like he doesn't care about web 3 and it doesn't seem like that is a likely sort of thing. >> he cares about the content moderation piece and so pain he puts that on his own shoulders. think he's experimental and i think he's open to playing about it he talked about using doge coin on mars. do i think it happens in the next two years probably not but z it need to be seamless and baked in, absolutely the other alternative is that he opens it back up in a non-web 3 way and people could build user interfaced on top of it. and i heard your concerns there and i think that is valid. but when you have no kind of economic worries about what you want to do with this but you care deeply about the future of humanity and if you believe that the discourse that humans have with each other is an important piece of that, i think you could get pretty experimental if you're willing to throw up 38 to
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$40 billion down the drain. >> you said that well, packy good to see you as always. packy mccormick. guy, what is your -- it is true. if it is private, any private company has a little bit more of a leash to try things out when you don't care if it turns a profit. >> agreed. but if the future of humanity rests on shoerms of the vie shoulders of the viability of twitter, we're all screwed but we're tested with figuring out how to trade the stock, there are more headlines to come and i think the next headline will be bullish rather than bearish. you buy it at -- but it is worked over the last couple of weeks. >> the future humanity rests on twitter's shoulders, we're all screwed. that is true but social media in general is a way of communicating and a way of disseminating information this is going to be the way of the future so if we can't figure out how to make that an open discourse that
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we could trust, then we are screwed. and i think that is true and so could this actually just be his playground, this is what he could buy this is what was up for sale potentially. could this be his way of figuring that problem out. he likes to figure out big problems and find solutions, tim. >> well, i look at it from the perspective of what is not is working. look at facebook it is not working. and this is -- i think there has been an indictment out there for the companies in 3.0 is very different from the world that facebook lives in now. i'm sorry. they may talk about meta and call themselves meta, that is not the world they're in so i do think that first of all you could have two or three, you could have an ad plus. you could have a subscription model and a decentralization and try to do all of the things and we've seen how rabid there are parts of both the social media space and the meme world and, look, and elon is following. and do think that back to guy's
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point on the stock is that we touched lows on the stock because i think there was no sense of what was going to drive it the fact is that there is something going on here and a year ago this was a $65 stock with elon nowhere in sight and people believing that they were beginning to monetize. so i think this is a stock in play. >> stick around. later we'll look in elon's empire how stretched will he be if he ad adds twitter to his portfolio. and the dollar stocks bringing ou y ash highs shldoudd these names to your shopping cart "fast money" is back right after this just ask your cvs pharmacist. we search for savings for you. from coupons to lower costs options. plus, earn up to $50 extra bucks rewards each year just for filling at cvs pharmacy. the pursuit is on. plus, earn up to $50 extra bucks rewards the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients
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welcome back to "fast money. check out the dollar store surging to yet another set of all-time highs d dollar gen and dollar tree guy, you've been talking about this for a long time. >> i don't mean to it doesn't seem like a nice thing to do. but the point is we've been on this for a while now and i think -- but i did it. it speaks to the environment that we find ourself in. it is not just dollar, look at walmart. an all-time high so it makes you wonder what environment are we in.
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and regardless of the answer, i think it works for both dollar gen and dollar tree and throw walmart if there as well and people will knock the dollar stores maybe you don't have the underlying revenue to back it up, but it feels as though we're in the sweet spot and i think they continue to grind higher. >> people are spending in the month of march according to retail sales. they're spending on gas mostly that is most of the increase that is environment we're in. >> guy, kudos to you, i've been on this for how many points, for so long. i'm surprised how well they're doing in it environment when you think that now they're a doll sar and a quarter store. but how pressed they must be on the margin so i come to somewhere like walmart and with tim and a target but those are great charts you didn't -- i don't think you added me on those, guys. but they're really good. >> to me, this is the environment that they're going to continue to shine it happened every time we've seen this, especially when
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consumer sentiment is deteriorated and we've never seen this type of inflation. and this going to grow 20% but think they're backing into the 36 to 37% gross margin that they ta talked about this $1.25 thing frustrated me i like handing my kids five bucks and coming back with four things and they're not happy they just raised prices 25% across the board stock trades at 20 times, it is $185 stock it is largely there. it should trade through the multiple. >> i saw that consumer confidence number and was surprised and we're going to see wonky data, but i go back to home depot that is the granddaddy of them all and i know this is a different segment but we talked about the housing trade and the -- this stock is down 28% from a few months ago. it is trading near 52-week lows and it looks heavy
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this is a stock at trades at a market multiple. when you could get home depot at a market multiple. it feels like we're on the precipice of this but retail seems like a really tough spot and i know we're not getting those earnings until next month as we get through the bulk of banks. but they didn't have a lot to say great about consumer credit and the lag as you get to the other retailers have happening in the next few months. >> we're gist getting started. here is what is coming up next. >> get ready to lace them up shares of nike jumping we'll hit the options for what is next for nike plus, choppy waters on wall street what does this week's volatility mean as we head into the heart of earnings season we've got the answers. you're watching "fast money. live from the nasdaq market site in times square. we'rba rhtft ts.e ckig aerhi
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welcome back to "fast money. major indices losing steam the s&p closing down more than a percent wrapping up the second down week in a row nasdaq was down more than 2% and take a look at losses in big tech apple down more than 3% cutting $83 billion from the market cap. the moves come at the end of a holiday shortened week that saw record high inflation and the start of q1 earnings season. is this the start of more pain to come? we've had this -- there are so many more earnings next week, karen and so many more glimpses into the economy and the consumer >> right well starting -- if we talk about banks now or when. >> let's go. >> okay. let's do it. >> what do you got. >> we're starting to see where they trade down on the same news
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every day. so one announced yesterday and they trade down today and bank of america because they're going to report monday, they have two extra days of trading when they may trade down on their earnings i understand why guidance is conservative and i understand why they're trading poorly however, i like them i have some xlf against my banks and way longer than the xlf hedge. i kind of feel like they're getting oversold we know what was bad, the trading and investment banking and goldman had outstanding trading but i think it is getting overdone and people are still employs and the economy is still moving along. >> banks will be guilty until proven innocent. they were that way in may and june of 2020 as the rest of the market was starting to move. i think there will be some concern about the consumer even if they are not there right now. this first glimpse into earnings, when they talk about
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extraordinary sales in trading and yes, it was, and i think it was a great environment for a lot of the banks especially the ones well positioned in the secondary markets but is that sustainable and come that comes with the volatility price. so again back to where markets are more broadly, today what happened in yields was another, i think, shocking move in the ten-year we sold off, i don't know, 1.points in the ten-year and got to 282 the short end of the curve also moved higher between that and the dollar is not boding well for multi-nationals and folks that are exposed to the cyclicality of the consumer. >> the banks act horrible. they should have rallied no matter what they put up, they should have hallied. the fact that they act this way is badp and i think the way that bludgeon tech and the names going down for months and months, the ones down 50%, 60%, 70%, the way they acted today is really bad the market feels sick. again, i think that s&p and the
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nasdaq, they're just kind of having the benefit of that concentration. >> quality trading day you have to point some of that volume was like one-third of what it should have been >> take apple down 3% and close it on the lows that is real action. so i just think that everything i'm looking at is bad. the things that actinged with are defensive. you have the u.s. treasury yield closing at highest level since 2019 it doesn't feel good. >> the glass half full because that is what i like to do but it is an even better setup for big tech to have this sort of you know work down in shares ahead of their reports. >> i think that is exactly what you want to see. if you want to be bullish for this back half of this year, which, by the way, i am. you want to see these things sell off in a meaningful fashion and flush some of this exuberance out of the names. but i've said the bond market is
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broken there is no way again in any opinion that ten-year yield should go from 2.81 up to 2.85 in the course of four trading days it is broken and the market is trying to come to grips with it. what is working and been working. oih very quietly traded down to the 245-ish support level and now north of 300 and in my opinion will continue to go higher look at the move in caterpillar and look at deere and company an all-time high and still a very reasonable valuation those things work. those will continue to work and throw miners in as well. >> and so everything related to inflation, energy and inflation and grain inflation and you name it everything that touches crops and things that you dig out of the ground, those things go higher, i guess. >> if you think about how we all complain for a while the multiples that were going on, even in the defensive big cap tec techs and think about how much
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tech hoovershop look at staples and health care and it is okay to overshoot. but there are parts of the market that i don't see giving up the ghost it is very impressive and all you need to do is look at rig counts and read from companies what is going on in terms of the investment in their business and they can at this point because the balance sheets aren't levered. those are just getting going. >> coming up, nike shares going higher, should you just do it. up next shares of taiwan semi getting chipped, should buyers beware we have that trade next. >> get your trades to go with the "fast money" podcast catch us any time, anywhere. follow today on your favorite podcasting app wee ckig aerhi'rba rhtft ts.
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welcome back to "fast money. check out shares of taiwan semi tanking. the chip name out with earnings today beating on the top and bottom line. it is what the company said, guy, that investors didn't like. yesterday you said this is the one to watch this is very important for the whole sector >> yeah and if you told me what
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that second quarter guidance was going to be, i'd be like that is great news semis should explode off of tsm and if you have a little information it is a dangerous thing. i'm not looking what the street is but i'm let price determine that so how does that auger from names that are more expensive. zan will tell you correctly that tsm is trading like it is a very expensive stock. it means in my opinion it is going to drag down some of the other higher valuations semi names. >> i thought the comment about their end users potentially over-ordering right now during the chip shortage was sort of a negative thing because that implies that the pendulum will swing the other way, and they're overstocked and there is pull forward here, tim, in terms of order. >> and the increased importance on the pc for some of the chip companies that have a lot of exposure there and how long that could last again, i'm just not sure
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so back to the charts and back to the sector, which i still until other wise is the most important chart for the sector or the smh you're right back to those lows. that we said and it closed on the lows. and if you look at under-performance to the overall market, it is shocking so you go into a long holiday weekend with no technical support here one move lower >> and i'll just say this, i mean, apple, 25% customer in taiwan semi. so guy thought the guidance was good and now that is in apple sentiment. they are still above the 150 level that it bounced from and when it got to 180 and it is coming back. so that is the one to watch, if last night it baz taiwan semi. we know we'll get apple in a week and a half and if you have a guide down there. >> for apple. >> for apple, i think the rest of the large cap tech gets penalized. and here is a stock on this year that is expected to do mid to
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high single-digits and trading 27 times you could do the math versus where the s&p is trading about 18 1/2 times and it is expensive. maybe a couple of other mega cap techs. >> every day that shanghai is locked down, i read a stat today, 87 of the top 100 cities by gdp in china have some sort of covid restrictions in place right now. of the top cities by gdp that is major market for apple, karen. those people would are locked down, they're not buying iphones or air pods. >> that is true. it is a lot of implications from that, right, the supply chain not getting any better so that is bad and they're not -- they're home and not buying and making less money or no money. there is that as well. in addition, though, there is -- is this going to be something that really helps inflation kind of peak because you have oil demand and all demand from china getting, you know, crushed with
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everybody at home. i haven't seen that as much. i would have thought we would have seen that more in oil and we haven't so i don't know. we'll get to nike in a bit but i feel like that is part of the story as well. >> absolutely. actually we have this some news here twitter shares are adding to the gains. let's look at the char the company is holding the all hands on deck meeting. the ceo telling the employees that the board is evaluating the offer for the company but not held hostage by the bid. i'm not sure that is not anything that we didn't know already. but that is what he elaborated to the staff at this moment. we also have the new york post article reporting that tomah braffo is preparing a bid for twitter. we gist want to bring that to your attention coming up shares of nike running higher and that had options traders lacing up. how they're trading it up next and april is financial literacy month, here is karen finerman. >> financial literacy is
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welcome back to "fast money. peloton hitting the skids falling about 5% after the company cut prices for its bike and treads but hiked subscription fees. it is all access membership going up by almost $13 to $44 from $39 sending a letter to members saying that the price is going up because members are getting so much new content and many new features. >> it is 13% -- i mean $13 >> yes bucks. >> 39 to 44. even guy could do that math, that is 13%. so the key here is really for many people, i think for the analysts community, it was the subscription service that was where you are having some support for the stock. fact they're cutting hardware
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dynamics and most saw this as positive news. this may tell you all you need to know. >> it is almost an acknowledgment that their growth is not coming from the sale of new equipment but it is going to come from further monetization of what they have. >> which if you go back, way back when they wanted to be a content company, everybody was all giddy about it that is the -- that is the format, that is a market that they wanted to be in in the first place and now getting punished for it. they basically right now, peloton is in the penalty box. i think in march of 2020, trading back at a 19 handle and it feels like it is going to do a round trip toten tire move to me >> to me it is interesting, the stock was down but that doesn't mean it wasn't the right move. i think it was the right move. i think it is got -- there is some hard moves he has to make and cutting the price seems to be way better than cutting the subscription price. >> but if you're giving away the
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hardware, aren't you inducing people to take on the subscription that is a growth move. if the subscription is the stickier part of the model. >> it is the growth -- the better part. >> if you hand me a bike i might try it a few months. >> and users are very engaged. >> ask guy guy, how are you >> what you don't know is he's on the peloton right now am i right. >> look at him. >> extraordinarily low impact. >> okay. let's check out shares of nike they are getting slam dunked today, the retailer jip jumped more than 5% after some bullish calls and had options traders up for gains. mike khouw has the action. >> nike saw the options volume and calls outpaced puts by almost 3 to one and the sent 135 calls we saw institutional buyers of these things
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they were blocks of 3,000 contracts. ultimately 11.5 traded all day for just under $8. prior to the calls are betting that nike could go above the 135 strike price by the nearly $8 that they paid that would put it above 143 which seems like a modest goal when you put it into the context of where nike has been and compared to the five of you, if anybody needs a peloton, it is certainly me and i have room for one. if they're going to give them out for free, i'll give it a try. >> too. >> thank you, mike karen, you were mentioning nike and what they could say about china. nike has been giving us a reed early on. >> it is interesting jp morgan saying better sequential so that is good. so i would be a little bit surprised if it was very good. but i'm wondering why are they saying it. they must have a feel from nike that that is so. nike is a fantastic company. however at this price, i feel
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like a lot of good news is already priced in and i won't short it but i can't be belong at it price. >> they have been this harbinger in terms of supply chain as you said so everything they said is that they have manufacturing going full bore. it seems to run contrary to the same news on the rest of china on the lockdowns it gets back to what you were willing to pay for nike and consumer discretionary i think they're margins continue to get pressure. i don't see how their margins hold up here even though the dtc is a big part of the story i'm a nike shareholder and i'm not running for the door. >> nike trades higher than apple. would you rather >> whoa. >> with bike shorts on. >> i'm going to get in trouble for this one i think i would rather nike, quite frankly. nike is trading at about 29 times next year's numbers. it trades at a premium to apple. but the taiwan semi news scares
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me a little bit and maybe apple is due for a pullback. you've seen the pullback in nike valuation notwithstanding. so in this high end game of would you rather, it is nke. >> all right for more "options action" tune in next friday at 5:30 p.m. eastern time coming up, we're digging into the elon empire. do you know how many other big ideas he's dreaming up without twitter taking up so much space if his brain we'll go inside of the mind of musk after the break when "fast ne rurns
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welcome back here is a sneak peek at the cramer cam he's talking with the cfo of zoom and you could have cramer delivered to your in box with a cnbc investing club sign up now at join the club or using the qr code on your screen. back to today's battle royal elon musk fight for twitter and the potential impact on the growing empire he's building cnbc phil lebeau has what is under his umbrella and the thoughts in his head and the things he intends on doing phil, take it away. >> you think i know what is in
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elon's head. nobody knows what is in his head i heard that he'll be to tao distracted if he's running twitter. if you think he's distracted right now, he's added things over the year and he keeps on growing and having success starting off with tesla. and i'm suring you the stock back to when he was part of the ipo in 2010. i was there at the nasdaq that day. we interviewed him he talked about having a dream of growing the ev business since then the stock is up more than 21,000% why? take a look at the tesla sales annual deliveries and how they've grown. this year they're expected to hit 1.47 million so he's ceo of tesla but he's also the chairman of spacex he started spacex back in 2002 i remember people were like he's off playing with his rockets in the desert no longer are people saying that the valuation for spacex,
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$100 billion that is the estimate what about the boring company. starting in 2016. >> we were out in los angeles when people were running around with flame throwers and saying that he will solve traffic problems they one tunnel in las vegas and has teslas going from one part of vegas to another. boring company, it has not exactly panned out and then he has a bunch of other interests out there. there is neurolink, he don't hear about that and doge coin and crypto and he likes to talk about that on twitter and then finally his other interests, it is ai development, humanoid robot and things like that so i hear the suggestion all of the time, he'll be too distracted tesla is going to suffer from he's running twitter could that possibly happen yes. but i would argue if you talk to people who have worked for elon musk they the same thing, extremely demanding that could drive people nuts but gets performance because he sets goals an targets and he said, why don't we do it this way and
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a lot of times they ultimately do succeed sometimes they don't but a lot of times they do >> they're are other crazy things -- i don't want to say crazy. but the notion that tesla should have a nickel minor that tesla has a patent for lithium extraction all of these things that we don't bring to the surface but they're in the works, rattling around in his head and things that he's working on simultaneously. >> things that may pan out or may not pan out. full self-driving is a perfect example. he said for years this year we're going to have full self-driving and release the full beta. you'll see it all over the place and it hasn't panned out yet i don't know if you could crit criticize him for that but he throws out grandiose plans and he likes to tackle the big problems and with twitter what would he be tackling in social media. can the world benefit from social media in an open forum
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the way he wants it to be a open forum. that is a huge question. >> phil, thank you >> you bet. so maybe he does have the mind space to deal with twitter. but will he actually get ahold, get control of the company and karen that is the next question here as we sort of see the headlines about the potential tomah braffo bid what would another bidder have to do to have the superior bid in this care. >> they have to bid more than elon 55.20 or more. they could match it or more. and the board could say no they're allowed to say no. but they can't say yes to one bidder and at a lower price and no musk at a higher price. so they have to come in at least that much for a private equity it seems like a really giant equity ticket to right, you can't lever this up in a huge way. so i mean, who knows we might here all kinds of names. but right now, it is -- it's elons to buy if he wants it,
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unless the company said no, $54.20 is not enough. >> say the board gets the ability to put in a poison pill and say no they all of a sudden have an urgent mandate to come up with something. >> good luck. >> because the reason we saw the stock price get goosed because elon musk got involved. >> an this is a company that knows that all of the issues that they have and they anno announced multi-billion dollars share buy back, that is the management and that is a new ceo. this wasn't tim cook taking over apple ten years ago and saying hey we generate so much cash, we're going to give it back or to sindar chi or anyone else >> up next, final trades
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look looking to do. >> dan, are you -- >> a little. i won't buy it here. would you be a seller. >> thank you for watching "fast money. i'll see you back here monday at 5:00 here v a great passover and great easter and great weekend "mad money" with jim cramer startsig n rhtow >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it "mad money" starts now >> hey, i'm cramer welcome to "mad money. welcome to cramerica my friends, i'm trying to make you money. my job naupt just to entertain you but to echducate you and teh you. call mero tweet me the algorithms have taken over and it's not dwgood for the average said s&p bummalin


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