probably 30 times, but this one, you'll thank me for when it doubles. >> legend? >> legend. >> thank you for being with us. psx. >> all my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always a work in somewhere and i promise to help you find it. mad money starts now. hey, i'm kramer. welcome to mad money. mike jobs not just entered -- my job is not just to entertain you but also to teach you. today certainly started out as a good day.

it looks like we would have one more move but as the afternoon wore on sellers swarmed in. perhaps because this is one of the most overbook tapes in ages and it is likely by the end of the day we had a serious and total route on our hands with the down -- dow and nasdaq plummeting. >> cell cell cell. >> you have to take days like this and you have to do some selling. you have to take something off the table. it's been too good for too long and now it's time to pay the piper. i know even though most of the

damage stem from the not so hot quarter from fedex with just got pancakes falling almost $34, 12%, there was a ton of finger-pointing at the usual suspects. i thought that was a long --. that was trading in alphabet, formerly google. i want to talk about resilience. mag seven style of this crazy stock market. -- had rallied five dollars adding nearly $63 billion in market capitalization. if stock goes up more than 60 billion you must pay attention. i looked around and saw some stories. this company might be

reorganizing. now they can use machine learning to figure out what works best. who needs 30,000 add people in ad sales? ai can tell you the smartest way to advertise. we know adobe's artificial intelligence platform can tell us what colors to use in an ad so why can -- do and different thing -- do the same thing? we now have machines that can simply tell you the right answers. and those machines don't get paid. they don't take vacations. they never have a sick day. you don't need to cover with health insurance and you don't have to take them to a christmas party either. this department restructuring could be worth anywhere from $.08-$.20. per share.

machines can do a better job. this one did get me thinking. this is one of those things that the magnificent seven has been so magnificent four. at any given time especially on a down day like today some jokers can find an idea that might be worth more than $64 million. for example when i saw half of it was up that much i thought of i have to does in other ways they could have created --. i wondered if they could get rid of waymo. gm blue $8 million on its self driving business. self driving is not a home run. maybe there will always be resistance. maybe alphabet should just sell waymo. that would make the stock go up

although 63 billion is a lot of money. waymo has a real following in san francisco and it's moving to austin. second, alphabet could easily rally that much if they decide to spin off google cloud services as a separate company. -- disappointing the bulls who were hoping for 8.5 million. even though we are only talking about less than a 200 million difference the stock dropped value in response. $180 billion. if they close down google cloud it might not have been down that much. can you imagine how much -- great it would be if -- kept about 25%?

if we simply hear rumors that they are telling people those numbers are credible then the stocks will roar. fourth if we hear that youtube shorts jumped by millions in views and are generating revenue that may sound crazily optimistic but i think it's within a relevant pop ability to get $100 billion increase in the stock. they can tell the justice department here is $1 million. you get 1 billion and you get 1 billion. full opera mode. let's say alpha throws in the towel gives the interest rate to go up by breaking up the country -- company. youtube, that cloud. hi markel. the grab bag other bets.

if you break them into separate companies i think they are collectively worth much more than one $60 per share. not bad for $138 stock. some of these are out there but i could literally create a list like this for everyone of magnificent seven except nvidia which is a straightforward graphics card company. there are so many moving parts that if they decide to split up or trim a losing division they can propel their stocks up. today was a crummy day in the market. these stocks have been up for forever. unlike the others, the seven or at least six of them actually can control their own destinies at least over short periods of time. is it fair that with a wave of an eight cents wand alphabet

stock can rally five dollars this morning? of course not. this is the problem. we have thousands of stocks less than 50 billion and only a handful worth more than 500 alien. if mark zuckerberg came out today and said he was closing his metaverse division i can't imagine how high the stock would go. i don't even know if you could open it. if amazon could spin off alexa this stock would soar. long-term maybe it's a mistake but the bottom line when you look at the landscapes of stocks in the red you should be thinking about one thing. the magnificent seven have the most option analogy of any public traded company in history. you can forget they have this kind of incredible power. let's go to jiminy or jib? >> ooh yeah, jim, first-time

caller. i have a $10,000 game and pioneer natural resources. should i sell or i wait until exxon takes over. >> just sell it. i want you to take the gain. that would be terrific and i say congratulations. how about we go to garage in new jersey. >> hello, bouillon benchmark i have all access membership with cnbc and i enjoy your text messages and coverage. it has been a wonderful experience. >> thank you. >> my question is about the nvidia, it has been going up consistently and today there was a pullback.

should i continue holding with them? >> nvidia had the biggest blowout in the history of the western world. a lot that wasn't enough on the stocks are meandering. a lot will try to sell and say can reach a double top. i think nvidia is an amazing company. here in pennsylvania? >> hello, booya. i am a first-time caller. my question is about stock one year ago about $50 per share. now it is at 28. by sell or hold? pfizer? >> pfizer just don't have a

good enough pipeline. i think the stock with the 6% yield is fine but if it's at 27 and went to 32 here is what i would tell you to do. >> sell, sell, sell, sell! i wish i could be more positive. all right amid the red scape of red in the market today, the wind streak for the nasdaq may be over. there is one name that has recently caught fire that might be worth buying into the week. and fedex is following with the rest of the market down 12 percent. what could it mean for the delivery giant going forward? i will take a closer look at first you know there's a monthly meeting for cnbc subscribers and we cannot get

to your amazing questions so we decided to keep the momentum going and give you today. question and answer and i think you will like them. so stay with kramer. >> don't miss a second of mad money. follow @jimcramer on x. tweeting him #mad dimensions. or give us a call at 1-800-743- cnbc . miss something? had it to madmoney.cnbc.com. >> cnbc, live ambitiously. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills

with an immersive online education crafted just for traders. all so you can trade brilliantly.

loving this pay bump in our allowance. wonder where mom and dad got the extra money? maybe they won the lottery? maybe they inherited a fortune? maybe buried treasure? maybe it fell off a truck? maybe they heard that xfinity customers can save hundreds when they buy one unlimted line and get one free. now i can buy that electric scooter! i'm starting a private-equity fund that specializes in midcap. you do you. visit xfinitymobile.com today. yesterday the cnbc investing club had our monthly meeting. we ran for your questions and

the thought process of the club. we discussed each of the current holdings and then we can the questions from you. we always have more questions than time and my favorite part is hearing directly from you so tonight we give you at an -- an inside look of what we do. and if you like this segment i suggest that you join the club. you can sign up ahead of the next monthly meeting by going to cnbc.com/join the club or by holding your phone up to this qr code behind me. we have a question from dorothy in new york that asks how do i know when to sell a growth stock that i believe has long-term potential? is it best to sell a little at a time and buy some more on the next dip? more specifically i am talking about alf. >> if you just sold it every 20 points up you would have none i the time it got to 80.

i think you don't sell any of these quality gross stocks like this until you have what i would say the house is money. an elf sells at double and you take something off and then if it goes up even more again say almost another w take something off but nothing more aggressive. we used to take off much more but it is so hard to find great growth companies. we like to hold onto them for dear life and get rid of other things for the thesis has changed. that's a -- how i feel. now a question from richard who wants to know what percentage do you consider a short position to -- too high? when you know is a good time to buy overly shorted stocks? >> i think the game is opportunistic. if you take a look at i format with a 20% short position and upstart even higher, all that is is a data point.

if you don't like the company you can buy the stock because it has a big short position. if you like it, then that's more gravy. now let's go to stephen in california who asked i noticed your trust does not have a defense stock. what is your recommendation for defense type of stock? lockheed martin? l 3 harris? >> i was looking at rtx. rtx, the old ute acts, rtx technologies. i also like the l3 harris. by the way arrow environment people forget that they also have tremendous drones that do really work as a way to be able to get to the enemy. next up we have jonathan and we ask whether we consider louis

as an own it don't trade it kind of stock? >> i like it for both gop 1's and also what they are doing with anti-alzheimer's. why did we do it that way? literally i think that your question, my thinking, jeff marks thinking, it would've been the right thing to do but we made a mistake. we also felt that there was many opportunities for things to go wrong with gop 1 and it turns out that they didn't. so the answer is the reason why we didn't do it is because we got it wrong. now let's go to stephen in massachusetts who says i am interested in abnb. i bought one month ago at $117. it is in bullpen. take profits and find a better entry or hold it? >> take profits and i tell you why. it has moved up so rapidly and there is so many analysts and people who do not like it and i think this market as i said over and over has been just up and up and up and do not want

to own airbnb all the way up here. i think you will get a better chance to buy. brandon in new mexico wants to know are there any companies that will benefit from the chips act that have not already run.? >> we think quantum will benefit. probably the cleanest. we did think that jacobs was good but i think that quanta is better. next up, mitch in connecticut asks now that interest rates are presumably coming down does this have a greater or lesser effect on a decision regarding high dividend yield stocks versus growth? >> it makes the high dividend yield stocks much more attractive. if you just care about getting income, the answer is it makes it much more attractive and

that's what you should think about dying -- buy-in. there were others that we looked at. we did have j&j but we didn't like the telco exposure. we are constantly on the lookout for dividend stocks in our favorite right now is not a drug or food company. it is stanley black & decker and i think that should be bought by everyone. there you have it, that was an exclusive look at what we do in our investigative monthly meetings. if you want more of this i think jeff and i would urge you to join the club, watch our morning means. so much more. mad money is back after the break. >> coming up, did the rally in this tech giant happen out of the blue? kramer explains the recent rocket ride at ibm, next. >> don't miss a cnbc premiere

episode of shark tank tonight. it's you, with l'orange on top.

ever since the market bottomed in late october we heard a lot about software plays but do you know what else caught fire intact? ibm. on october 25th big blue reported a strong quarter and the stock has not looked back since. this thing is trading at levels we have not seen in more than five years. ibm has finally managed to breathe new life into it stock. in the moment long-term interest rates started coming down that dividend got more attractive but is not just about the wall street dividend fashion show. the fact is the most recent quarter showed this is no longer the ibm of old. they reported the first and second quarter results their cells came in lighter than expected. that was a sore spot so even though they also posted big

earnings investors could not look past the sales softness. when they reported again in late october they had a higher- than-expected revenue up six point oh percent year per year or 3.5 percent on a constant basis. most only looking for one .1% and they beat that. this represents a major acceleration for the previous quarter when sales were up just --. on top of that ibm delivered a defense earning feet off a $2.12 basis with terrific priests -- buyers won over by the clean top and bottom line beat. they have been willing because ibm was able to change the narrative. there is a goal when the cloud became the biggest story ibm wired rab -- red hat. part cloud part old-fashioned software.

andy was supposed to drag ibm into the future and to some extent that story played out like it was supposed to. i think investors got tired of -- talk about the benefits of the hybrid cloud on every conference call. it made me realize that because on the latest call he explicitly pointed out that he would be devoting the time he normally spends on the hybrid cloud to a discussion of everything ibm is doing with artificial intelligence. here they also have a hybrid strategy helping clients create their own ai models selling their own prebuilt models and helping clients take advantage of open source stuff. many said ibms is making artificial intelligence -- it into artificial intelligence. second ibms data and analytics platforms can help clients make the data more useful for ai models.

third and most important. ibm, key ai platform is called watson x which they launched last spring. this is something that trains deploys ai models. you could even provide prebuilt models for coding, language, cybersecurity and all sorts of other uses. very few people can do that. -- went into great detail explaining. ibm is also a big consulting business which has more than 20,000 data and iai consultants. these teams help their clients figure out ai and make the best use of it. at the same time they can tell ibm product teams customers actually want for their ai offerings. you better believe that -- with an ai focus will get a much higher evaluation. doesn't hurt that they spun off

their slower growing legacy business as can grow a couple years ago. after a horrific decline in his first year of training -- shares bottomed and they have been quietly moving up very well in 2023. it up 80% year to date. still candles growth rate remains negative and we think it was the right call for ibm. no i can't take quite a credit for seeing the move coming but it was gettable. you had to listen to the right people. specifically bought rice at million research. he gave 172 price target back in july. they had a terrific consulting business. for many years ibms consulting division came under fire often seen as a bloated and ardent business. now though this analyst argues that ibm's consultant division

has brought new light because many know they need to embrace artificial intelligence but they are clueless on how to do it which is why you higher tech consultants. in fact all the way back in july they were arguing that ibm's tech business for they make ia products -- ai products means they should be much more helpful consultant than say accenture which is a pure plant fulfillment. think about this. accenture trades almost 20 times next year's earnings. ibm sells for just 16 times next year's numbers. if ibm can take consulting market share, if is doing better than a censure, wait a second, it has to get a higher price when it's mobile, doesn't it? at the same time like i mentioned before this is your -- no longer your parents ibm. company now gets 43% of its sales from software. 32% from consulting both areas have higher recurring revenue

and are not hardware. wall street is always willing to pay more. third quarter results were reported a few months ago and both saw for and consulting had -- earlier this year -- took a well-deserved victory lap. >> he thinks a continuous wall street gradually realizes that the new ibm is structurally different from the old ibm, specifically is a much better business to generate consistent revenue growth. that's where they raise the target price. this was aggressive because they went all the way to 210. my view? i think the righteous is dead right. when you look at the breakout it's clear that arvin christian finally change the narrative. here's the bottom line. earlier this year we saw so

many people bid up everything with famous exposure to ai. now that they have realized ibm has legitimately been in the ai business the stocks have taken fire. two reasons why i bet it has a lot more room to run. i want to speak to rick in virginia. rick? >> hello, how are you? >> okay. >> margo gp last time they had good order and it sold off the next day. i've heard a few times but i don't know why i did buy. >> he put up a great note. that me tell you this about mongo dv. the stock did an unbelievable performance. this is a stock you want to buy

rick. if this thing comes on tomorrow or the next day because the markets ugly i want you to think about buying more mdb because that is a good company. >> what are your thoughts on -- >> on qualcomm? well, we left the stock to early. we bought it wrong and sold it wrong. maybe we got everything wrong. i tell you this. i think this stock is a sale even up here. i think my client is a better company i think qualcomm is too much hype. why don't we go to ted masters. ted? >> hey, jim, thank you for taking the call. i am a longtime collar and listening. i am very interested in your position on at&t. ever since they ame in the 90s i went changes, consolidations are given to be by my dad and i

always invested dividends over years. my question is with the recent strategy of directv and also getting rid of -- media, is that still a hold? >> it's just a hold. it's doing better. the last quarter was good. it got rid of a lot of the problems they had. warner bros. is supposedly in talks with paramount, i don't know that, just a rumor. it is better than it used to be. now that investors have revealed that -- much more mad money and fedex was the worst performance yesterday. they had a miss on the top and bottom line. could the move in the red

continue? that is the latest hack in -- the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com

way back in 1982 we took care of about forty kids and had to turn away over two hundred and fifty. with a partner that always puts you first. it's the emotion of that moment that said man that just isn't fair, and i think it was at that moment that operation smile was born. every three minutes a child is born with a cleft condition. thousands are waiting for the cleft surgery and care your support gives. they need you. give joy and a new smile. scan the code or go online to give today. ♪ unnecessary action hero! ♪ -missing punches? -unnecessary! -check reversals? -unnecessary! -time sheet corrections? -unnecessary! -unentered sick time? -unnecessary! -go! -unnecessary! -go! -unnecessary! -when you can take this phone, you'll be ready. -make the unnecessary, unnecessary. let your employees do their own payroll.

(sfx: stone wheel crafting) ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪

what we do with fedex stock? down nearly $34 or 12% today. now it is pulling back hard. there is a whole move that

might be derailed or is the market overreacting? let's start with the numbers, total revenue was down 3% year- to-year weather adjusted operated income grew by 70% -- making matters work manager cut there for your forecast. previously they have been talking about flat rather growth now they expect to have low digit shrinkage. nobody wants to see more sales -- when you think deeper it's clear the problems are mostly coming from the fedex express business, which is unfortunate because that is also the largest. so fedex ground is solid. it's the express division on the biggest and baddest revenue coming in below expectations and they are saying that -- 49%

from the year before. that is less than half of what wall street was looking for. not good. what is wrong with fedex express? they move with fewer packages and margins were worse. on the message side some businesses deem to move from the remium fedex express to the cheaper fedex ground. that makes sense with consumers looking for bargains this holiday season. why pay up for express shipping when you can wait longer for ground? the international express business has been tapering off. you see less international air freight reports around the world that are backed up. the prices to send a 40 foot container from shanghai to los angeles has flatlined to about $2000. a year and a half ago it cost $8000. then there were these idiosyncratic and she was --

idiosyncratic issues. fuel source charges. with energy down charters were lower which transfers into a revenue hit. they say there was less volume from the u.s. ps deal than they anticipated but fedex is contractually obligated to maintain regularly high service levels but it now seems unnecessary. finally the company reopened its international economy service in europe, the middle east and africa which is good for customers but is also a lower margin business. one reason for the weaker profit and then there was one factor that was hard to explain. see, fedex is in the middle of a long-term trend mission plan dubbed the drive program. imagine always targeting $4 million with 1.8 billion in savings this year?

fedex needs to redesign its whole global internet to better serve e-commerce. ceo raj -- explained it in detail. what you need to know is that the new era network will save the company a lot of money. they haven't actually thought of yet. feels like wall street got ahead of itself assuming the savings would happen immediately plus wall street loves -- so what do we do now? listen, while the problems this quarter are frustrating, i don't think they are reason enough to give up on the stock after today's big loss, imagine describing the -- i am inclined to believe them. fuel source charge coming down and that's irrelevant. problematic contract with the post office ends next year and people switching from express shipping to cheaper ground shipping -- that seems like

something particular to the holiday season and not necessarily permanent. while fedex earnings took a hit they did not evaporate. the fact that the numbers were so resilient and management even kept their full-year earnings forecast in place shows you just how successful these guys have been and cutting costs. so even though it doesn't feel good to be a fedex shareholder today, it is important to recognize the company is in a much better position cross rise -- wise than it has been in ages. now whether the steady buildout of amazon's logistic network damaging fedex. we learned amazon's internal shipping had passed -- volumes and become the nation's largest delivery business. when i hear about fedex talking about the manpower for express shipping, people can get free one or two day shipping if they

just put the order and with amazon because they are prime subscribers. we also know that amazon is growing its third-party assistance application and we wonder how much they could take in that business. fedex did not mention the amazon issue specifically. i think it's going to start coming up in the next few quarters. i don't know how much impact it will have on that x but if it really hurts them that is a serious problem. it means there is nothing transitory about amazon's competition. they are for real. bottom line while fedex reported in ugly set of numbers i feel management when they say most of what dragged them down was temporary. i will emphasize the word. especially if the stock plummeted 12% today. the stock might be -- for the quarter and we still need to monitor -- in the end fedex is the kind of name that actually gets cheaper as it gets lower.

mad money is back after the break. >> coming up cramer takes your calls and the sky is the limit. it's a fast fire lightning round next. >> last call on cnbc. >> we are at the intersection of business. >> and money -- last call, next, cnbc.

lightning round is sponsored by charles schwab. trade brilliantly. >> it is time! [ indiscernible ] and the lightning round is over, are you ready? let's start with charlie in california. charlie? >> i called a few weeks ago and we had talked about --

therapeutic. i was overly invested it -- in it and now i am looking at a stock called redneck. >> rad net we had dr. berger. you have to wait for it to come down maybe a five day percent before you pull the trigger. now donnie. >> hi, jim. i have been watching your great show for over 10 years and i want to personally think you for your knowledge that has made a significant impact on my finances and i'm about to retire come ugly and god bless you jim. my question jim is about a company purchased back and went down, middle position and now it's just flat. should i sell, buy more or hold bhc? >> we ourselves are in a quandary about it. can't believe how poorly it was done.

we feel like we were bagged by management. i have no feeling for it other than to say i am just stunned at how poorly is asked. i need to go to eric in michigan. eric? >> hello, jim. we spoke a few months back. i called in and asked you about rocket companies. back then you said look eric, if the fed even hands that they will cut rates this thing will do significantly better so i took your advice, thank you, i bought a major position. my question to you is do i hold this for the next 10 or 12 months and if i do could you see this thing in the 20s? >> this thing has exploded and i'm glad you did buy it. again, i will point out it has a power bolick moved which means you have to sell half for the company and hope that it comes in, but if it goes higher that's all right too. you have to sell half because it moved up way too far too

fast. shauna massachusetts, sean? >> jim cramer. i enjoy you and quickly too i enjoyed -- >> he's funny. i want to talk about southwest life-sciences. what is up with visa substance? >> this one got too expensive and that's one of the reasons why i have taken it out the table. i am not paying 38 times earnings for this. i have to have some discipline and that says don't buy 38 times earnings. chandra in texas. >> booya, jim. i want to start with -- upswing [ indiscernible ]

>> i like pinterest but it was at 15 now 37. too high, ring register, let it come in a little bit. sally in florida. >> hi, kramer, booya. >> thank you. what is going on? >> my question is on the research. you know, when you said something like in 2018 about writing i bought it like it was between 140 and hundred 60. >> it is up -- it is at 750. i really like to lamb back

them. they merged with novellus and now to 754 and i have to tell you i am reluctant to recommend the stock all the way up here when the stock is up 80% for the year. we will take profits, we are not going to buy and that ladies and gentlemen is the conclusion of the lightning round! >> the lightning round is sponsored by charles schwab. coming up, will a cyber attack on this outfitter leave you in rough terrain? when the cold wind blow, call on kramer. after the break.

trading at schwab is now powered by ameritrade, unlocking the power of thinkorswim, the award-winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization. and track market trends with up-to-the-minute news and insights. trade brilliantly with schwab.

>> last call on cnbc. next, cnbc. people pay for any market, my guy who is in the club. joy in my exclusive club. >> joined the cnbc investing club. go to cnbc.com/become a member. >> baby, it's cold outside. for many americans that means it time to buy north face. for people like me it means buying stock of parent company, vf corp. thanks to a vicious cyber attack you can order through

the website. they have no idea if those orders could be fulfilled. the website finds there is still time to find the perfect gift but if you needed by the 24th you should go to the store. they have not from a cause of the problem. what a blow to the new ceo. this happened at the worst time of the year. of course hardly a day goes by without seeing some sort of data breach although most of them are not the severe with the expulsion -- exception of -- the ceo of palo alto said the companies need a i to stop the bad guys. there is a key that will surface immediately. a i can spot it that humans may not notice. i mention this because the cybersecurity stocks caught one more upgrade.

another recommendation for palo alto. and then crowds direct -- strike gets one. these only happen because the cyber criminals are becoming more sophisticated where you can keep raising numbers and price targets. if you are running a business that might get targeted you can only hope that they work like the car thieves at a mall parking lot. if anything they avoid things with four doors locked. i thought that is where it ends but now i feel i was being nao■e. i now realize that bad guys -- about you. they can find out so much about any individual online which

allows them to impersonate you to their coworkers, to anybody to break into employers networks. just think about all the form letters you get in the mail about how you have been hacked. nvidia. -- makes me feel like their clients know they need to pay out to get the best protection. i wish every business thought that way. i know it's possible that there's no way vf corp. would've known he had a problem the same way clorox did not know but i do think generative ai can help. if you have the most data of any cybersecurity like palo alto you know hat a normal model looks like and what is an anomaly. this happens before they turn into a correct digital sabotage type situation.

it's no longer okay to get mediocre cybersecurity. it's too risky as the people who run vf corp. are just finding out. i don't know about safe but in this racket it sure beats sorry. i would like to say [ indiscernible ] i am jim cramer. hello, everybody. i am contessa brewer in for brian sullivan. deal fever strikes hollywood . two media giants me soon unite and we have breaking developments. micron on the move, why investors are cheering. the first major companies raise the red flag on supply disruptions in the red sea. dropping like flies. why the outlook is so bleak for so many tech startups. the thief