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tv   Mad Money  CNBC  March 22, 2024 6:00pm-7:00pm EDT

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beneficial for the housing sector, i think this is a good way to play that. >> steve. >> coming full circle we started off the show talking about the consumer and the changing tastes of the consumer. look at whir pool stock, bottoming it out, i think they're going to start buying more appliances, whirlpool. >> thanks for watching >> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always an i promise to help you find it. mad money starts now. >> hey. welcome to a special west coast edition of mad money. welcome. i'm just trying to make a little money. my job is not just entertained but teach. so call me. all amazing things must come to an end. today we bid adieu to the west coast where we learn about all
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things ai from nvidia, apples business-to-business product tied to the biggest platform and reiterate you should own, not trade both stocks. as apple is now under assault from the justice department for unfairly putting out a good phone. another week ago we shared the bounty of one more week of record-breaking action. this will be the .14%. nasdaq advancing. i'll take it. what awaits us when we come in next week? as early as monday, a familiar symbol returns. tgt for donald j trump which is converted friday into trent mediate technology group. i mention this vehicle because it could produce a windfall for former president trump whose sticking the company is worth about $2 billion now and worth which more if the stock stays above certain levels. his stock will be blocked up,
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but he could petition the company's board to begin selling his shares immediately. with noting is his company and campaign need money. rarely do you get a spot like this with political indications. we get new sales and we know houses at the heart of the federal reserve's dilemma. the fed needs more homes to be built. he's got to bring down the cost of rent but the homebuilders have been reluctant to increase construction because of higher mortgage rates. if they want more homes to be built he should be cutting short rates. if he does that that price of housing will skyrocket. yesterday the justice department came after apple with everything which was not much. apple had a stop and the soup poured out were sellers. i'm letting you hear from apple and google about an artificial intelligence tie-in. maybe more about the vision pro for the enterprise like what we saw when nvidia live streamed to the device. we almost bought a car that didn't exist. the resolution was great. a success as the men cheat
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managed to place enough stock but didn't sell. the company isn't making money yet, but it's on track to get there eventually. the stock started to pull back. i'm less interested in the company and more in whether they will return in force to focus on stocks again. i expect this quarter. of course. that never stopped anyone from the wall street vets department. i don't expect them to repeat from three years ago but perhaps they will pop up after another tremendous set of numbers. i think we're in for better expected numbers from mccormick. the last quarter is subpar. this terrific house of flavor branch without a lot of fattening product. the last two reported more general meals both had surprises. let's see if three is the charm. wednesday we hear from sent us. that's the rental company and expended to providing all sorts of essential fire and safety
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services. a small medium-sized and large business. cintas repeatedly blown away. i expect nothing less this time. bankable. there is a wildcard. the cruise line. royal caribbean has pulled away. can carnival catch up? it'll be hard not to. kimberly-clark. a great brand and almost 4% yield, this company may be ready to play offensive for some slowdown caused by the persistence of this work from home ethos. there's a lot of enterprise business to be in the office bathroom stock. i think the stock is interesting here. thursday reports and for once i'm actually excited about the drugstore stock because there could be a turn in hand now that they've brought in tim wentworth. a seasoned healthcare ceo. it may be too soon to make big changes. i'd love to hear a plan to return the growth. he has what would never take on
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the job. he's one of the most successful benefit managers ever which he sold for 67 billion. we just cut through the torture of a fed meeting so i would like to keep the fed speak to a minimum but i do want to point out that on friday we get the personal consumption numbers. this is jay powell's favorite. we are no longer fighting the fed. they don't seem inclined to raise rates when they are supposed to be cutting them. even if we hear a lot of noise about overheated inflation numbers i would consider it a buying opportunity. let's go to sean in texas. >> hey. i have a question about a stock i originally bought for the dividend yield. pioneer. it's going back up some in the merger with pioneer and exxon. would it be a good idea to sell?
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>> you should will that money. i tell members what they should own. ct ra. that's a better value now. pioneer is trapped by the price of exxon. let's go to kevin. >> hey. what's up? >> what's your thought on nike with the shift in strategy? traffic is up 36% and of january and february seems like a buying opportunity. >> i've been struggling. there's a really good quarter. i don't want to hear about them not spending money on sporting goods. nike has to try to bottom before i'll recommend it. it's got a great name but the next quarter. let's go to greg in illinois. >> so happy to peak to you.
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how are you? >> i'm great. >> i'm such a big fan. general mills. >> it was really really good. it's a good quarter. i recommend the stock. that is one exposure. i think you're good to go on that one. we are no longer fighting the fed. if we get inflation -related turbulence i consider it a chance. i'm wrapping up my time in san francisco with some bay area top companies including block. can you square up the stock for the portfolio? then i'm talking to the ceo of one of the most powerful stories of the last three years. i'm finding out how roblox has been building up its market value and billions of users and i'm liking it. let's see what the company says. a data breach wasn't enough to keep octave down. can the company keep performing?
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stay with cramer. rylee! from rylee's realty! hi! this listing sounds incredible. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪)
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my name is oluseyi to m and some of myhicle favorite moments throughout my life are watching sports with my dad. now, i work at comcast as part of the team that created our ai highlights technology, which uses ai to detect the major plays in a sports game. giving millions of fans, like my dad and me, new ways of catching up on their favorite sport.
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>> the financial technology company formerly known as square finally got its mojo back? it's been a couple years lost. they reported a much better quarter last month and the stock is more than doubled since the end of october. we checked in with the cfo and
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coo of block. take a look. since i've seen you this has got to be the most exciting time i can recall for block. you focused on so many different things but right now it's the one all the younger people tell me about. cash app. it's about to explode. >> thanks for having me here. we are excited about the opportunity we see with cash app to thank our base. we have 56 million monthly actives. more important is the engagement of those on our platform. two and three of them are weekly actives, one in for our daily actives. they are using our financial services products regularly. like cash app card, which is a free visa debit card that is customizable and really popular with jen the. >> it's the first thing they had and i realized that there are 13-year-olds who are with it. they'll be there for life.
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>> we have a family offering that is unique because this is a population that is pretty underserved and we get to go with them. they are about 30% of our monthly actives but only 20% of our inflow. imagine the opportunity to grow as they become the spenders and earners of the future. it gives us a chance to go upmarket. we get to reach their parents and aunts and uncles and community. >> i love the fact that as they get wealthier they get more of their wallet. >> that's right. as people use more and more of cash app they adopt more products. not only 23 million on cash app card, but 3 million using more products. cash app borrow is a fast access line of credit, a chance to use your stored funds within cash app. so many merchants around the world. paycheck direct deposit. when a customer is direct deposited into cash app they bring 6 to 7 times more inflow which is an immense
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monetization. >> that's why you've got great leverage. you are doing a lot of exciting things and doing them with a thin group of people in terms of encouraging productivity. a cap of 12,000. something jack dorsey talks about as being a great way to re-center. >> this is a way for us to use constraints to drive creativity. constraints here are the numbers we have of the company and it drives a focus on what matters the most. it helps us prioritize our work and think strategically about what most benefits our customers. it also benefits the bottom line and that's where we see significant margin expansion opportunity. what we have guided two is rd eight points or more of expansion and we want to do more as we hit bull of 40 in 2026. >> i think people should recognize a lot of financial services has to come to that level of growth. some other things are cutting
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edge you do fractional shares. is it working? >> within cash app you have the opportunity to buy a dollar or $10 of nvidia. it's an exciting opportunity to bring people into stock investing. when we launched in 2019 what we saw was over half of u.s. households not investing in the stock market. this is an opportunity to make it accessible and bring people in to the significant wealth creation opportunities that others already have. >> we are big fans of that coin. we are not against it, we think it's great. do you think we can go back to where people thought at one point it would be used as currency? >> we want to drive utility debate coined and we have multiple ways to do that. we do with our lightning network . initiatives he has an opportunity to use that coin as currency but we look at a multitude of ways. buying and selling bit coin,
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mining and global remittances are our efforts. they're relatively small and experimental but we see an opportunity to drive utility and bring more people into the economy. >> if someone wants to open an account are you a place to do it? >> we only do bitcoin. >> is it time to expand? >> bitcoin is the longest lived, best brand, open developer ecosystem . we see a significant opportunity behind bitcoin. >> fair enough. i want you to be expensive because it's hard to find places you trust that can allow you to buy the others. maybe because he vetted them. not sure they're the right ones. >> trust is critical. focus is critical. that's where he focuses with that coin. >> you spent on after pay. how is it working? >> it's an opportunity to bring commerce into cash app. we had over 20 million consumers on an annual basis
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using after pay with increasing frequency. these customers don't trust the negative death spirals you see from credit cards. with after pay we grew our merchandising volume by 25% in the important seasonal q4 quarter and i think there's more opportunity to integrate it into cash app and bring those local commerce opportunities out between the combination of square, cash app and after pay. that's where we think it's differentiated. >> you work closely with jack dorsey. can you give us the division of labor? real on the decision to cap? >> absolutely. this was a joint decision. driven by jack in an effort that was really brought up my clarifying our investment to our financial targets, which is to reach rule of 40 in 2026. we believe we will get there by 15% growth rate. hopefully more. or 25% or so adjusted operating
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income margin. to drive that margin expansion we need constraint and to drive continued growth that scale we need focus. >> when you say 40 i always question how much your balancing profitability and growth. i'm not sure right now. you can clarify for us. equal, or growth? i love the growth but the pivot occurred after the fed changed. i want more profitability. >> we want profitable growth two. because we invest in high unit economic businesses when we drive a point of growth at the top line that drives high incremental margins at the bottom. growth is ultimately a creative to both profitability. >> i didn't ask out here, you do a lot of work from home. what is your feeling about san francisco as a place to work to start business? is it safer? are more people coming back? >> ttalent here.
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there's a real buzz in the air that said we want to be a global company and we want to access talent around the world. that's why we allow our employees to work in a distributed manner and we can find diverse talent in many cities around the world. >> help people understand why because i like profitable and they are making people. they do it for life. i love it when you come in. thank you so much. >> headwinds in the omni verse. can this be our stock find its form? cramer asks the tough questions next.
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>> while we are out here let's check in with one of the most powerful growth stories around. even if it's not a great profitability story i'm talking about roadblocks, the online gaming platform that's insanely popular. 71.5 million daily active users in the last quarter. they never pivot their profitability the stock hasn't gotten as much love. cannot change? let's go straight to the source with david baszucki, the founder and chairman and ceo. welcome back. >> i can't believe we are life. >> it's the right time. such an amazing quarter.
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this is the beginning of the great resell. daily average of 22%, hours engaged up, revenue of 30%, bookings up, japan, india. it's the re-acceleration we wanted and it is deserving because he always had the best product. >> it was a great quarter. we have so many driving growth. more older users, international, japan and india going over 40%. for those not familiar, 100% powered by our community. everything on roblox made by amazing creators, some single people, some studios. a lot of innovation on our part to help accelerate that and a lot of headroom. >> let's talk about this a job situation. when people call and say what is so important about aging up? when you tell us. >> historically there are more users on roblox under 13 than over 13 years old. when we think of the united
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states there's so many people over 13 relative to under. as we age up and have more people over 13 then under there's amazing headroom for all of those, not just plain together, but hanging out on the platform, learning together, educational experiences, socialize, some are starting to go to concerts. there's room. >> you actually use ai. if you're in all these different countries you have to have real-time ai language translations happening. >> that's right. we have over 70 pipelines on our platform behind the scenes driving stability, safety. as you mentioned, it's driving the dream of a classroom in the united states with a classroom somewhere else hanging out together and communicating in real time. as we venture, all of the millions of hours on a platform being kept safe and civil with ai.
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we are starting to introduce ai tools that allow creation. imagine you and i wanted to create clothing. you'll be able to create clothing on roblox by describing the clothing. ai will help everyone be a creator. >> when i was on it there's sports. there's some key things. there's lots of different kinds of programs. it can be boys who are 13, lots of stuff for everything. they are all safe. no matter what, i couldn't find anything i felt was edgy. >> since we started stability and safety has been the foundation. we have thousands in safety. we improve that with ai. as noted, you saw an incredible variety, diversity, freshness of content. it's what's been driving our growth having this giant community of creators build awesome content.
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>> when i hear that i think what i like to advertise against that. i'm not trying to get you to talk about numbers, advertisers are getting interested. >> we are starting to introduce both traditional and more innovative advertising units. partners like lamborghini, adidas, mcdonald's. what they are offering is not just brands but the ability to interact. the ability to go to a place like vans world, trial issues, go skateboarding, connect with the brand. we have more coming. >> that would be good for mehdi quest. >> it's amazing. we've been live in q4. we introduced sony playstation. those are both in line with the vision of what a creator make something on roblox he runs in every language that we support. it runs in all devices, computers, consuls. meta quest and vr devices are
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the most immersive ways to experience. >> he used the term interesting candidate when it came to vision pro. is there another word we can use? >> i would say several devices are obvious candidates. the vision pro is a lovely device as far as mixed reality, the quality of the device. we architected on meta quest. without giving any ship date. >> understood. sometimes it's difficult to talk about different relationships. not all are equal. how is the special event the hunt going? >> we have this long tradition of events on our platform. what's interesting about roblox events , they leverage everything the community has built. we build a lightweight layer. imagine a modern-day scavenger hunt where you go to 100 different places except the places are literally the
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individual experiences made by our creators. there's 100 creators participating in this event. they all have a special scavenger type item you can go find and it highlights the variety and diversity of our platform. >> people are looking? >> they are going on large scavenger hunts, live streaming, doing different things in different places highlighting. we are building the event itself , but all the cool stuff is built by our creators. >> nice thing you mentioned it. one of the things i was worried about was there can be boisterous areas that say the community polices them. that's not enough. >> we do a wide range of things. we use human moderation, ai moderation, predictive moderation, you look at content on our platform, communication on our platform. voice safety is something we rolled out carefully and slowly. we developed some innovative ai
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in the world to monitor voice. i got called out in a interactive company office setting for using a swearword because we had set the voice safety level to very high and one of my employee engagements. it's really good. >> i think that's why teachers all over the world feel very safe having their kids be in your world. >> leasing educational experiences like first robotics and stuff her students are able to build stuff they can't in real life. >> i knew you would get to the acceleration you're at. this is q1. there's many going your way. that's david baszucki. i've been waiting for this one to take off. it is taking off. >> coming up, this stock soared
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>> this october there was a big data breach at okta. they handle identity and access management. ironic. if you thought that would lose them business let me tell you three weeks ago they prove you wrong with them at pheasant quarter that sent the stock into the stratosphere. i don't think it's done. we sat down with todd mckinnon. take a look. you have revenue growth. some is because the bad guys
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went in but you've also done customer identity and privilege access manager. we haven't talked about them together. i want to give you the floor. these are clear verticals. >> our strategy is we want to be the leading identity management company. that means having products in every category. we have been known for workforce identity that was helping employees and partners login to all of their technology. now 40% of our revenue is from customers logging in to websites and mobile apps. a great example is when you use chat to beauty you login through okta. we connect them seamlessly to chat gpt. this is a big important part because if you take a step back and think about it from a ceos perspective or board of directors perspective we want to be there identity platform of choice. we have to cover all of these cases. they are customer experiences and the new apps launching and
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experiences are as important as their employee experiences. it has to work together. >> i want to be on chat gpt quickly. i want to be on every single site as quickly as i can. for the most part, there's been a trade-off. if i login quickly then i'm more likely to hack you. you are somehow able to toggle both. >> when you think of technology there's trade-offs. speed, performance. in identity there has been a trade-off between how easy do you want it for end-users, for customers and how secure can you make it? we have a lot of technology in our favor. we have more biometric sensors now with every phone having a biometric sensor. that is a good step up from the traditional password where we can scan your eye or look at a fingerprint and get you on the sites right away. there's new technology out there called passkey which is away all the different operating systems can agree to share that biometric sensor data
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and seamlessly connect users across all platforms. with our cloud we are in front of that helping developers make it super easy to adopt passkey's and power their websites. >> are these free enterprises? >> across the board. we have almost 19,000 customers and one of the fastest-growing segments is our cohort of million dollar plus customers. customers pay us. >> you had your own hack that i was shocked to see. the way you can measure the way you've come back is the number of customers. it's an incredible surge. one thing i think is why it's been searched is there are many enterprises that deal with the public. a big casino company, a cruise line. everyone is hospitable, but hospitality can be the death. they want to help the customer and the customer may be a bad actor. what you do to make it so these workers can do the best, be as helpful as possible and not
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infiltrate? >> one reason i'm so excited of where we are going is we can be the partner to a lot of companies that are moving their business is online. if you're at a casino or gaming company 20 years ago there was no online connected experience but now the default for consumers is they want everything available from gains and reservations to customer experience checking into the room. they want to have that flexibility and all the consumer internet companies raised the standard. it's up to us to partner with them to help them branch out and bring the business online whether a cruise line, app, really any industry. >> your videos make it clear it's the company. it's not brought to you by okta on a cruise line. you don't want that. you want the company to be responsible. >> it's all about the customer and how they extend their brand to their base whether you're an airline building a loyalty
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program, any industry with consumers. >> that customer doesn't have any knowledge. it cost too much money for them to do what you do. >> learning is the keyword. learning can be very expensive especially when you're talking about when were business processes and interactions get online the risk of security breaches is higher. you have to not only get the experience but also get the security right. that's painful for companies to learn. >> you've made it clear there are individual moments, acquisitions, complex use cases where you have to bring an okta. there's too many people's names being left out. they infiltrate through that. >> we pride ourselves on being the leading identity platform covering all of these cases. also we pride ourselves on being just identity and focus on identity because that makes us neutral. we don't favor a certain platform or application or
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system. we give them choice across many different technology. when you talk about these key business events like a merger big strategic decisions and boards of directors are making the company irvine probably has a different deck. it's not like your company which means a platform that can connect you in a neutral way to that technology is going to help you drive business and get that done faster. what do they want? drive growth, do it effectively , get their brains out, extend businesses. identity can be at the middle. >> i have a feisty comment here . i'm looking at a screenshot. okta is the superior choice versus microsoft every time. your taking the gloves off. you had data. you had data that shows people are choosing you over microsoft. >> microsoft is a significant player in technology, but in
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the identity industry itself they are different than us and that they are selling more than just identity. by default, there platform is going to favor their technology. we go to the customers and che you can choose any app you want you want to be locked in or be beholden a keeper. the stats. out. at a philosophical level we are differentiated and i think customers see that. >> you are winning. it's great. i've known you for a long time, you stumbled when you talked about it, you were open, people loved it, you have the best technology and you're going faster than anybody in the industry. that's todd mckinnon the ceo and cofounder of okta. a company i ike for a very long time. thank you. >> when we return, master the markets one stock at a time. the lightning round is up next.
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>> it's time. time for the lightning round. the lightning round is over. are you ready? thomas. >> cramer. what a great national treasure you are. thank you very much for all you do for us. >> thanks a lot. we had a great time. how can i help you? >> r jf. what are your thoughts? >> it's a horse. higher than j.p. morgan so i say it's too late. we missed it. find the next one. jeremiah and california. >> thanks for taking my call. this stock has been bouncing up
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and down. >> i like arm very much. it looks like it's finally going. i think you have a good situation there. michael in georgia. >> first-time caller. my question is around unity software. >> i would've told you to sell the stock. you can anymore because jim whitehurst is now in charge. whitehurst is a winner. i change my mind because he's running it. let's go to george. >> i'm calling on c rk. >> i think there's so many that are better that i have to refer you to get ctr rate which is a better situation. let's go to josephine in florida. >> hi, love the show.
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i would love your opinion on huber. >> needless to say, who did we say you should bet on? now it's a double. john in pennsylvania. >> hello. thanks for taking my call. i have a question about general electric's. >> people are saying this is overstimulated. it's one of the greatest in the book but because boeing is so screwed up people say give me an aerospace and they keep going back to ge. i can tell you to hold it if it drops down, but i can't tell you to sell it. it's too good. sam and colorado. >> how are you doing? i'm all right. it's pharmaceutical. the company can set up now that the opioid settlements are
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over. what do you think? >> you are right. i've been hard on them but their situation is improving and it's ridiculously inexpensive. i'm not knocking them anymore. i'm going to go in. rebecca in new york. >> hi. pleasure talking to you. thank you and your wonderful staff. >> i've got a good staff. we have a good staff. how can i help you? >> i was thinking about buying nbo. >> i think you should buy lily instead. in the next three months they can have some good news i think on its anti-dementia drug. let's go to rob in pennsylvania. >> hey. how are you? i'm fine. i've been doing a lot of reading and some homework on
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the ai field. there's one name that stands out and keeps coming up. i wanted to know your take on sound hound. >> i said i would not buy but i would immediately kill it. that is the conclusion of the lightning round. >> sponsored by charles schwab. coming up, cramer wraps up his week out west. the mastermind behind nvidia goes in-depth once more. ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds.
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>> we came out to the bay area for nvidia's big event. when i got to speak with jensen huang, the visionary founder, president and ceo you better believe i tried to speak with him for as long as possible. here's highlights from my discussion with perhaps the most important business person on earth right now. i want to talk about the things that seem frivolous. entertainment. the way we sing, the language. people don't realize the music that it can write. how does it have so much creativity? >> it understands music the way it understands language. today, when you ask chad gpt a question answers your question. based on the context of the conversation. you could have a context of music and the computer doesn't
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know the difference between letters words and sentences. it doesn't know it anymore than it knows sounds and bars. it can create music in the same way it creates language. >> the same way it creates a better operating room, and operation, a better machine. these are all things. >> better chemicals for drugs. better proteins for enzymes or antibiotics. >> let's bring it back to wall street. wall street is trying to pigeonhole. the truth is your earnings have always exceeded even if you go back to 2016. how do we try to value what you talk about? >> the opportunity for our company and the impact of our company has everything to do with the size of the industries we serve. there's never been a computing company that has directly impacted so many large
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industries before. artificial intelligence is not a generic thing, artificial intelligence is an intelligence related to a particular domain. the artificial intelligence of information is one, healthcare is another, transportation is another, industrials, for each one of these industries the technology that's associated with making the impact for that industry is different. our opportunity is very large. >> you can't be demand and there is a miss understanding there's a difference. all of that seems like it is nonsense to me. it is a continuum and people -- there's a lot that have never seen an h 100. it works. you can create a giant liquefied natural gas boat. >> the demand is so high. every
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customer wants to have their hopper right now. they are more than happy -- >> if i said i can get you another hundred thousand would he be happy? he would be delighted. 1 million more? >> they want to build and run the business today. not wait nine months from now. they want today. our chips are not a consumer product you can wait next week or a year from now to buy. it's an operational part of your company and you want to run your company today. hopper will be in great demand and great supply coming. great demand for sometime. >> i thought one of the amazing things was there are many companies that have nothing to do with technology. john deere. they make tractors. they need you? >> i love the fact john deere is here. they made robotic tractors,
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make it more efficient. the farmers can be more prosperous. you have retail, consumers, incredible industrial. >> if you don't use you -- >> rockwell automation is here. one of my favorite things was a demo i couldn't do because we ran out of time but microsoft, rockwell automation, hexagon did a digital factory completely in simulation and it was fantastic. industrial digital. it was a fantastic demonstration. i hope they will put it online. they did a great job. >> what world issue do you most want to save? >> artificial intelligence has its two greatest opportunities i would say. most greatest opportunity is the hardest. one is to learn the language of life. that's healthcare.
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if we can solve that in this generation the impact to society would be enormous. the other is to understand physics, science. multi-physics, very large scale all the way down to small-scale so we can predict the climate. the ability for us to understand these two things are so profound to society and we are so excited. that's the reason why nvidia has healthcare and so we can help contribute to the industry and all other scientists working on this from our perspective of understanding how computers work and our perspective and our scale of computing. we might be able to make a contribution in these areas. >> i want to thank you for the contribution you've made to watch our show who believe in you and are correct to do so. that's jensen huang, the
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founder, president and ceo of nvidia. perhaps the greatest company i've ever seen. >> i'm jimmy cramer, see you monday. last call starts now.call start >> right now on last call, teslas tumble. what should elon musk do to reverse the recent fall? famed entrepreneur, elon confidant david sachs will join us. an urgent plea. tension spike around ukrainian strikes on russian oil refineries. we are with kyle betts on what may come next. the moment of truth. investors taking a roller coaster ride amid aid from social media merger and wait until you hear what may be fueling it. plus, click. a new report should bring a major wake-up call for all the

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