bottoming. they should buy that company. >> guy? >> gate reat having mcc. mount rush more. every time macy's trades down, it's support. >> all right, thank you for watching "fast." see you back here tomorrow at 5:00. 5:00. meantime, "mad money" with jim cramer starts right now. 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. other people make friends. i'm just trying to make you a little money. my job is not just to entertain, but to educate, teach! call me at 1-800-743-cnbc newsom. tweet me @jimcramer. here what's the bulls want to happen in this environment. we want weakness throughout the economy, except when it comes to

our companies. we want rate cuts. even if inflation is only somewhat under control. we want our companies to be less cyclical, less beholden to interest rates. we want their demand to be so great that they don't have to worry about the yield on the two-year, the five-year, whatever. i got to tell you, it's all very confusing. >> buy, buy, buy! i sell, sell, sell! >> the nasdaq gained .56%. we want dr. pangloss. all is for the best in the best of all possible worlds. but there is no such thing as pangloss reality. even in candide he is a joke. it doesn't happen. other than utilities and some drug companies, there are very few companies that can make their numbers unless things speed up. we know they need a faster economy because we have anni sm report today that was eye-popping. it showed that, and i'm going to

quote here, manufacturing in the manufacturing second contracted for the second consecutive month for the 18th time in the last 19 months, end quote. come on, man. it goes on, quote, the new orders index remains in contraction territory, registering 45.4%. 3.7 percentage points lower than the 49.1% record in april. that was i think a little -- a little frightening. and it goes on the say, quote, demand remains elusive as companies demonstrate an unwillingness to invest due to current monetary policies and conditions. end quote. that is pretty disconcerting. i'm not sure that earnings are weaker out there. we know dell was down last week over concerns maybe the business world is not strong enough by beading data centers. and they are dell's bread and butter. anything that makes us think twice about the ai fueled data that triggered so much stock buy until last thursday everybody figured was the biggest demand

generator out there. more on that later. dell's decline could lead people to are a very negative conclusion about one of the fastest growing parts of the economy, data center. i think they're absolutely wrong to reach that conclusion. but what do i matter? we see oil in total collapse, right? now again there are major mitigating factors, including a road map for how big producers can eventually bring more oil to market. but just dell's weakness could mean weakness in the data center, we're just at the start of summer driving season. they don't think that lower oil could lend to rate cuts themselves. i think that's a big mistake. as for me, like with dell, i want to buy the oil on weakness. i don't care about technical breakdown. i think the economy is we can enough to crimp demand for gasoline. i like kotera. oil is less cyclical than it used to be, but totally in a hostage decision of nation states. and it's only in the 70s because the war premium from ukraine and the middle east. retail's got the same darn feel.

the haves like costco, walmart, tjx are all about saving money for you, the consumer. people see them as acceptance that prove the rule, the rule being that retail is in slowdon mode. but man, when you look at the gap, best buy, dick's sporting goods, williams sonoma, ralph lauren, these are retailers that are doing fabulously. the action is more hit or miss than recession around the corner. you just have to be a little more discerning. today a long-time bear from citi who started covering best buy on march 8th of 2021 with a sell double upgraded the stock because it might be the biggest beneficiary. as investing club members know, i agree. bby -- >> buy, buy, buy! >> -- is a terrific name. the machinery play may be throwing off the scent too. we're beginning to see cracks in companies that buy equipment because they don't knee it now that there is a lack of new home building. devastating for caterpillar bulk materials, isn't it? devastating for the stocks, not

the businesses which are doing just fine and are far bigger than housing. transportation, okay, what the heck did happen with fed ex? it's getting crushed. union pacific, oh, my, can you believe? old dominion freight, j.b. hunt, all signaling that things are getting very tough out there. >> the house of pain! >> but these stocks are highly emotional stocks. entities that respond to a host of did inputs. so do the airlines, which aren't truly getting hit. only american is weak because they had a strategy that isn't working. finally, there is one black hole throughout that is unequivocal, and it's called enterprise software. we know these stocks are weaker. but as i wrote to members of the investing club this weekend, i wish you guys were members, because this one ruined my weekend. i thought it would be good for you guys. i where it with my wife. it's okay, good for you. didn't come out right. it's good for you. every business is wondering how many people they have to lay off because of ai. why in on earth would they sign up subscriptions for more users? they need to figure out what

their workforce will look like before they make these decisions. i think there is a depression developing in enterprise software that is happening. but so far it hasn't spread to enough companies to impact the tape. that's the only area i know that is in real trouble. against all of this, you might have watched the keynote of nvidia's jensen huang at the conference in taiwan this week. you got to watch this. this is really great. jenson believes if you buy one of his chips it will make you more money than it costs. as he put it this week, the more you buy, the more you save. nvidia is so far ahead, geez, maybe they're the only real winner in generative ai. there are so many partners that regard themselves as winners because they're in the same room as jenson, it seemed like a comeuppance. i think that's a mistake, though. the idea there can only be one winner nvidia and nvidia alone is inconceivable. wall street is too hung up on dell's meltdown to believe it. that's wrong. nvidia raises everybody's gape.

johnson & johnson announced some breakthroughs in fight against cancer this weekend, specifically for heretofore intractable situations. astrazeneca seeps like a steal. j&j litigation risks i don't care for. eli lilly, even more than your typical drug stock. but let me give you my brief. when you read the statement from the manufacturing pmi, it is weak, weaker than feared that will cause inflation to cool. fewer price increases, more price cuts. housing goes down. young people move mack with their parents. the old car will do just fine. you'll change your auto insurance. that's ultimately what could sway the fed if we get any sort of job weakness on friday's numbers. the bottom line, you may think that these negatives are happening right now. many of them happened already, though, and they've been baked into the relevant stocks for months. your best bet is to accept the degradation and just wait. there are now brown suits everywhere, and frankly, i think

it's exactly what the bulls needed, as long as jay powell sees the weakness and knows kit still be corrected. bob in illinois. bob? >>. >> caller: jim, how you doing? >> i am doing well, bob. how about you? >> caller: well, i'll tell you in a minute. i've been short a nice run on cava. the last couple of days, it's declined, particularly today. and i got stopped about 93. and it's off about five points today. >> right. >> caller: i'm wondering if it could point to get back in, which i plan on doing, or shall i wait it out, or is that a good place to get in? what's a good entry point? >> okay, let me tell you. have i some rules in these that might help us. for cava, okay, the stock's high was 96. it's down to 88. i would think that on a red-hot stock like this, as we saw with arm, you've got wait until you get maybe a 15 to 20% decline. we're not there yet. when we get that, i would indeed

pull the trigger. zack in pennsylvania, zack? >> caller: hey, jim, big boo-yah from eagles nation. >> i think saquon -- he still playing for the giants? he is the best running back in the league. if we could get him, everything could change. how can i help? >> caller: i am in my mid-30s. i'm looking to start moving some things. i want to sell after this position, and i want to move it to possibly the s&p, but my stock is carrier global. >> oh, man, don't sell carrier. david is doing such a good job. i think you leave -- he's got work to do. he wants to get that stock much higher. he will succeed. do not sell carrier. go birds! there are now brown suits everywhere. i think it's exactly what the bulls needs, as long as jay powell sees the weakness we do and knows it can be corrected. "mad money" tonight, names that came out on the pack this

may and what's behind dell's 20% decline? i'm breaking down the quarter to see if investors are getting a buying opportunity. and during this turbulent time, i'm sitting down with former yum! brands david novak to get his take on a host of market moving news. so stay with cramer. >> don't miss a second of "mad money." follow @jimcramer on x. have a question? tweet cramer, #madmentions. send jim an email to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss setngomhi? head to madmoney.cnbc.com.

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month. s&p climbing 4.8%, nasdaq jumping nearly 6.9% -- >> house of pleasure! >> when you dig deeper, there were lots of big winners coupled with big losers thanks to a dramatic earnings season. before we get too far into june, i wanted to go over the biggest winners and losers in the s&p 500 last month, because they can tell us a lot about the great -- really about what this market is saying to us. so let's start with the top five. the best performing members of the s&p 500 in may. it was first solar, yes, the cramer fave, mostly domestic manufacturer of industrial grade, that means not rooftop, your own personal rooftop. industrial grade solar modules. first solar shot up 54% last month. i've long recommended this one as my favorite solar play because the company is profitable because of lots of exposure in industrial scale projects, which is where the real money. sure enough, on may 1, first solar reported a monster 20

cents earnings beat. but the real rally came down to regulatory developments. the biden introduced a new round of tariffs on chinese goods including solar cells where they raised the tariff from 20% to 50%, woo. the tariff worked. the very next week, the chinese government told their solar companies end the price war that's been crushing the entire industry. [ buzzer ] that's sent first solar up 18% in a single day. it has been running ever since. i wouldn't be surprised if it's got more room to run. that tariff hike hasn't really gotten into effect yet. second best performer in the sp 500 last month, deckers outdoor. the company has iconic footwear like ugg, teva, and most importantly, hoka running shoes. i don't know about you, but everybody is running hoka when it comes to my crowd. i just highlighted this company as one of the few sources of growth in the footwear and apparel space. a few weeks ago, i really stuck

my neck out. i was a week before deckers reported. fortunately, they delivered a fantastic quarter. ♪ hallelujah ♪ $29. -- $2.97 thanks to the strength of hoka sneakers. third best, up more than 30% in may. this soothe company that's on our radar. i talked about it as a homework game a week ago. this is one of the few unregulated independent power producers in a world where a country is desperate for electricity thanks to all the data a centers. it's got nuclear exposure, and i gave you my blessing to buy it on weakness, along with constellation fave -- cramer fave constellation energy. have i these in my mind because these are the weakness that i've been waiting for. that means you have to do some buying. in the last two trading days, vistra has pulled back as part of a broader decline in infrastructure. i think people are overreacting

to dell's seemingly lackluster quarter last thursday. that did get to people. we'll give you more on that later. for now, just know that i think you're getting a buying opportunity in vistra. >> buy, buy, buy! >> and its nuclear fellow traveler constellation. the fourth best performer in the s&p 500, hp inc., with a gain of nearly 30% for two reasons. first, on may 20th, hp unveiled a new class of next generation ai pcs at a microsoft ai event. people laughed. they yawned. they shouldn't have. like i told you before, there is a pc refresh cycle coming fuelled by new ai functionality. and hp's looking like it might be first to market with one of these computers. theirs debuts next month. that's why we're recommending best buy so hard for the club. hp followed that with a good old-fashioned earnings beat last wednesday night. unlike dell where the expectations got way too high for the quarter, hp inc. was up less than 5% over the previous year going into earnings. so when the company turned in

modestly better than expected results with positive commentary about the upcoming pc upgrade cycle, its stock soared almost 17% in a single day. [ applause ] frankly, i still like dell a bit more than hp. but hp deserved every penny of its may gains. rounding out the top five performancesis a stock we haven't thought of as a winner in years, moderna. the high-tech vaccine maker saw its stock rally more than 29% last month, even after pulling back from 166 to 142 last week. but started running on what's better than feared quarter on may 2nd. then got another boost when we learned that they were in talks with the u.s. government to develop a bird flu vaccine. remember, we've got a horrific bird flu epidemic that has already jumped to other animals. for most of the month moderna got a boost as people expected the fda to approve the country's rsv vaccine. last friday, that's exactly what happened, but the stock tumbled 6% on the news, investors locking in profits. honestly, i'm not sure what to do with moderna here.

i'm happy to see the company do terrifically, finally, but moderna is expected to lose money for the foreseeable future and i think there are better opportunities in the biopharma space that are not lose as much money. how about that. now let's talk about the five worst performers in the s&p for the month of may. a lot of similarities here, even though it looked like things were glaring. the biggest loser in the s&p 500 is a name you may never have heard of. it's called epam systems, down more than 24%. this is a hybrid tech consulting and outsource software engineering company. oh, man! [ booing ] unfortunately, that's about the worst business to be in now that companies are trying to figure out how to spend less on enterprise software. earlier last month epam reported an okay quarter with dismal guidance. got stock kill. right behind are few human capital management software plays. stop me before i hurt you. another in bear market move.

pay com software down, down more than 19%. same tory. we have too many enterprise software companies that do the same thing. even the best player in the place is struggling. next worst performer, global payments, down 17%. this is a financial technology play that's part payments company and part, yes, enterprise software. they help companies process payments and automate their accounts payable and accounts receivable options and also do payroll software. enterprise software is a bad place to be. i have a half does companies that do the same thing. global payments reported on an okay quarter may 1 but left the four-year forecast unchanged and sent the stock down 11% in response and it kept falling as it realized the whole cohort is in trouble. finally rounding out the worst performers in is expedia which fell 16% after the company reported a bad quarter early on and the stock never recovered. a slowdown in travel demand here

in the u.s. and some company's specific issues like disasters tech migration project that caused a multi-day outage in their home rental platform. vrbo, and that's why for booking holdings, that has much more exposure to rest of the world. as for expedia, putting that one right in the penalty box, at least for a bit. bottom line, when you look at last month's biggest winners, they come from a wide variety of sectors. but when you look at the losers, it's enterprise software all the way down with the sole exception of expedia, with its exposure to the wrong parts of the travel industry. like i said at the top of the show, the companies doing poorly are visible but deceptively powerful. they don't deserve to take the whole market down. but some of them truly worry those who don't understand how corporate-specific these stories really can be. "mad money" is back after the break. coming up, tech was a wreck last week, but one venerable name took the hardest hit. cramer finds out why dell fell,

and what you can do about it, next. morikawa on 18. he is really boxed in here. -not a good spot. off the comcast business van. into the vending area. oh, not the fries! where's the ball? -anybody see it? oh wait, there it is! -back into play and... aw no, it's in the water. wait a minute... -alligator. are you kidding me? you got to be kidding me. rolling towards the cup, and it's in the hole!

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its value, foresaking another 5% today, all because dell reported a highly panned quarter on thursday night. whoa, was it ever. keep in mind, though, going into earnings, this was one of the hottest stocks on the planet. from the end of 2022 through thursday's close, this thing had given you a phenomenal 323% gain. the previous two quarters caused the stock to instantly roar higher. sure, it came in as hot as you possibly could add, and was pretty much priced for perfection. worst, the devastation in del doesn't really jibe with everything else we've seen in tech. we know that enterprise software has become a no-man's land. we established that. customers still need to figure out how much to spend on the stuff now that ai is changing the world. that's also been a major opportunity for the hardware side, the dell side as businesses have been fortunate to build out their ai capabilities, dell is an nvidia partner, for heaven's sake. a report that sent the stock into the stratosphere.

we need to find out what went wrong with dell because it really does call a lot of things into question. it shattered a lot of people. before we start jumping at the shadows, you need to understand that dell's actual results, that i were fine. a clean revenue beat with better than expected sells for both infrastructure solutions, their server and storage business as well as client solutions group which is all about peripherals. the infrastructure division up 20% year-over-year including serverings and networking up 42%. the earnings lines weren't as clean. dell only posted a 2% earnings after 25% share basis and both were operating net income payment a bit light while free cash flows was down a little 9% year-over-year, a little unfathomable. management guide call it mixed. revenue outlook was higher than expected but earnings outlook was a dud. for the full year management raised the sales and earnings forecast but warned of larger gross margin declines than previously expected thanks to

inflationary costs and a higher mix of ai optimized servers. problem is they didn't raise the earnings forecast enough. it really caught up to what wall street was already looking for. ooh, boy, that's bad. what went wrong here? the first is simple. the examinations got too high. just in 2024, this stock has more than doubled up to 122% for the year as of the close last thursday night. and much of the gains came in the weeks leading up to earnings. dell was just under 125 at end of april and roared to 170 before the end of the quarter. it did look unsustainable. as the stock rallied and rallied, analysts raised the price targets and then were forcefully raise the experts to justify themselves. when del reported last thursday, wall street considered that merely in line figure. but attend of february, those same analysts only expected to earn 7.60 the year. they spent the next few months aggressively bumping their numbers. by the way, dell's still on the stock treadmill.

over the last few years the earnings consensus crept up to $7.74 and i'm talking about the sale side analyst numbers. the whisper number, the numbers that its bullish shareholders are really expecting, these aren't tracked anywhere. so there is no such thing as an official whisper number. but bullish hedge funds were looking for something a lot higher than even the analysts projected. to them, the four-year forecast was a flat-out disappointment. they were big sellers. so the main problem is that dell failed to live up to irrationally high expectations. the expectations that fueled the stunning rally this year. that's the main reason they got clubbed. this is more meaningful, basically, this quarter investors came to realize that maybe dell's ai business, the big growth opportunity here might not be as profitable as we thought. at least not initially. of course, the ai numbers that dell reported were pretty strong. in fact, the sales numbers were incredible. management says the shipments of specialized ai server morse than doubled versus the previous quarter and the ai server

backlog increased by more than 30%, just versus the previous few months, those numbers are insane. but it's not doing much to drive higher earnings, at least at this moment. during the q&a session, in a momentous time on that conference call, the very tough, very smart tony from bernstein put it bluntly, i'm going to quote this because it was so tough. you add $1.7 billion in operating servers and operating profit was flat. does that subject that operating markets for ai markets were effectively zero? and if that's the case, how do you square that circle? end quote. oh, man. they explained that they are expect operating income on the enterprise side to improve over the course of the year. but for the moment she indicated that the ai business is not as profitable as dell expects it will be in the future. ideally the not too distant future. right now large enterprise customers are diving the orders, and they tend to get better deals than smaller and medium-sized companies. later management went on the say

that there are other higher margin parts of the ai business, physically networking storage equipment and fully managed solutions where dell will basically build your entire nvidia-based ai hardware stack for a fee. but those business also scale later on. for now, much of the ai business consists of selling ai optimized servers to large customers that negotiate good deals for themselves. so it's not as profitable as wall street seems to have wanted. so that's what happened. expectations got out of whack. now that you know that, let me ask you, do you really think that dell's stock deserved to be down 22% over the past two days? i certainly don't. for some perspective, with this pullback, the stock is back to the lowest level since may 13th. it didn't even role back three entire weeks of gains. dell is still up 72% for the year. i think it was a healthy pullback for a stock that had gotten overheated. let me put it another way.

before the quarter, dell was selling for almost 23 times this year's earning forecast. now the forecast is higher and the sock is a lot lower. so it's trading at roughly 17 times this year's numbers. i want that stock. i want it for the portfolio. bottom line, dell just got substantially cheaper while the expectations were more in tune with reality. meanwhile, i think the fundamental ai story is very much on track. it just might take a little longer to play out. so i'd be a buyer. let's go to john in new york. john? >> caller: hey, jim. how you? thank you for taking my call. >> of course. john. what's up? >> caller: tesla. >> yeah. >> caller: i know that that's a lot ofvolatility in the company, but also i'm concerned about the unpredictable behavior of elon. >> right. >> caller: again, i'm in for the long-term. drop it? buy more? >> no, no, look, i'm not saying 560 billion the thing is done. i think if elon gets the contract, that he deserves by

the way, because it's really etched in stone that he was supposed to get what he got. and if they can make the cars into more autonomous machines that go do things for you like you say hey, go pick me up a pizza at the pizza vida, and it goes pizza vida and the guy brings into it the car and it comes back to you, that is what i call an autonomous driving. when that happens, well, maybe it's just worth holding tesla at these prices for what it does. let's go to nick in florida. nick? >> caller: boo-yah, jimmy chill. >> boo-yah! >> caller: i want to thank you for your keen insights every day and for your thought provoking angles that you create with your introduce. >> well, thank you, man. that's awful nice. >> caller: i know you have to keep it fresh, and you have no problem. every day is so interesting. >> well, you know, if talked about what she would say, what are you reading? what are you reading? well, i'm reading about, dell. and she why don't you just put

it down. and the answer you. it's because of you. i can't put it down because then when you call me about a stock, i won't know it. so let's go to work. >> caller: well, two things have changed a lot since i've been watching this show. one is more transparency with the ceo selling, insider selling, and the market speed has changed. sometimes with bad news it's face-ripping market speed. and my question tonight is regarding the company iot. it has ai capabilities, a promising future. but how much is the stock affected with the recent insider selling by their ceo? is it a buy, a sell, or is it a pause and buy, jim? >> you know, i do think that the selling was large for the ceo relative to small size of the company. but that said, what really bothers me is that i am not an enterprise software guy right

now. i don't like these stocks. they're too expensive. and my take is that samsara is not a stock that you want to own. period, end of story. all right, now dell just got substantially cheaper while the expectations are more in tune with reality. so i say dude, get yourself some dell. much more "mad money" including my exclusive off the tape with david novak, a leader among people. don't miss my chat on leadership and more with the man behind so many of our favorite foods, including cool ranch doritos, yes! and what should we make of the market's meme stop action? i'm going to give you my take on roaring kitty as he continues to make the headlines. which by the way, it's hey, it's like cole porter. we have a cole porter market with the s.e.c. anything goes. and all your calls rapid-fire in tonight's edition of the "lightning round." so stay with cramer.

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when we talk about what makes a company great, most people don't give enough credit to leadership, which by the way is a good way to pick stocks. the difference between top-notch leadership and mediocre is night and day. what makes a good leader? we're going to david novak, co-founder and chairman of yum. yum is still doing pretty darn well. david's new look "how leaders learn" comes out tomorrow. it's about the essential habits and strategies of the world's effective leaders. tonight we're lucky enough to have david back on set with us to learn more. mr. novak, welcome back to "mad money." >> jim, it's always a pleasure being with you.

a pleasure to see you. >> i listen to your podcast. you have great wisdom, even more than when you were running the joint. i got tell you, this book is terrific. and i want to focus on some of the people people may not have heard of, because you have some great leaders throughout this. and i want to start by saying what do you do when you inherit a company where the culture is broken? what do you do when you're charliecharlie sharp is crowe o wells fargo. he went in there and had to deal with a lot of stuff. they had 13 consent orders, knocking all those down. but he had to build accountability into the organization. he had to let everybody know that he believes in them. but he had to tackle the hard stuff. the great thing about charlie is he had a sense of urgency to go after the things that had to be dealt with immediately so that this stock could really take off. and the company could take off. and as you know, it's starting to move. >> oh, boy is it ever. and his confidence is back. he didn't want to stick he's head up until what he had to do, he had to do.

but it's amazing, you're absolutely right. he went after the hard parts. he didn't go after the people underneath. he went after the hard parts. >> a and the other thing he did is he really brought in a lot of top-notch talents. he is a winner wherever he has been. >> he is getting people from the best of firms. another guy who came in, really quiet, self-effacing, i tried to get him to take a bow, he would never do it. but what frank blake did at home depot, coming in at a very uncertain time. >> you know, it's interesting. i just talked to frank blake. he gave me a call. and he read this book, and he was very excited about it. but frank blake is the smartest ceo i've ever met. >> really? >> absolutely. >> you've met everybody. >> this guy is rocket smart. but he's humble. and he really has that unique combination of what i think makes a great leader. it's the humility you have to have to say that you don't know everything. you need other people. but you also have to be confident in your capability, which he is. it's just understated. >> but he was a lawyer.

he wasn't a guy who was with a hammer or did any stuff with plumbing. >> but jim, what he was more than anything was an avid learner. and i like to say action learner. you can be an avid learner, and you can be book smart, but you got to put it to use. and you got to pair that learning with real insight. and there is nobody better at it than frank blake. i know one of the things he did with me is he best practiced our company on recognition. and he went back and made that a big driver at home depot. just outstanding person. >> i met him because i complained to him on that my tomatoes that i bought from home depot weren't copping up. and he sent me a bag. and it was being of tomato seeds. he said go do it from seed. don't bother me. i loved him ever since. came on, the greatest guy. there is a fellow, neil bu buescherry if there work day. i always try to figure out how he developed such an amazing culture, because it is an

amazing one, and they're believers. tell me what you say in your book about him. >> it's hard to believe this, but he interviewed along with his co-founder the first 500 people he hired at workday. and let me tell you something. you know, he then said, okay, i'vehired you. you're going to make this company what it is, and i'm going to turn the keys over to you to keep our culture going. but he made it a priority, because he knows that having people capability is the biggest driver. and all the best leaders do, jim. they know that's the key. >> i want to ask you just for some help on a couple of things. how you handle -- how would you say is gop on a crisis for people who run places like yum or mcdonald's or these weight loss drugs? is it a crisis? >> i don't see that there has always been something that people said is going to take the industry down. but if you have affordable, convenient food that's good, you're going win. and i think he'll be winning in the year 2050, the year whatever. >> i like that. all right. so how about some crystal ranch

and pepsi and cool ranch. tell me what's good, what's bad. tell me what works and what doesn't. >> when you think about cool ranch, this is when i worked with frito-lay, i called it pattern thinking. what we did is we went to the grocery aisles at that point in time. we found out that the ranch flavored dressing was a hot flavor. we said okay, can we make a cool ranch dorito? and guess what? it happened. and it was a big hit. >> observation, curiosity, execution. >> pattern thinking. >> pattern thinking. i like that. and then pepsi. >> there is a case where i did crystal pepsi when i was running marketing at pepsi-cola company. and that was a great idea. it was a clear cola. but what i didn't do is i didn't listen well enough. i didn't listen to our franchise bottlers who said if you're going to call it crystal pepsi, you should make it taste a lot more like pepsi. dfnt do it so it didn't have the success it could have.

>> you are humble. the stories in here are stories of great humility, but credit. when someone does something good, you say credit them. and it doesn't cost you anything. >> absolutely. i think recognition is the secret weapon of every leader. and i say recognize on purpose. people ask me all the time how do you drive culture? well, what are the four or five behaviors that you know if your team executes them, you know you're going to have success, then recognize the heck out of the people every time you see it. and guess what happens, jim. they do more of it. >> absolutely. that's why you're so successful and others who read "how leaders learn" will be equally successful. that is david novak, yum brand's co-founder and author of the book "how leaders learn." it's out tomorrow. i learned a lot. you'll learn a lot. "mad money" is back after the break. coming up, hit us with your best shot. an electrifying fast-fire "lightning round" is next.

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everything works better. so what are you waiting for? let's get to work. idris elba works here? mm-hmm. ya, he's super nice. ♪ it is time! it's time for the "lightning round." cramer says buy, buy, buy, sell, sell, sell, play this sound -- [ buzzer ] >> and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round." cramer is going to start with dan in new jersey, dan? >> caller: oh, hey, jim, thanks for taking this call. >> oh, my pleasure. >> caller: real quick, i was wondering what your thought was on amazon. for the last -- >> amazon to me has a lot of room to go higher. >> buy, buy, buy! >> i think advertising is going to be great for them. i think the price of a package

going to go down. but most importantly, what i like about these guys is they've got religion when it comes to dominating aws. they're back with a great group number again. let's go to chris in florida. chris? >> caller: boo-yah, jim. >> boo-yah. >> caller: first off, if you ever need a co-host, i'm your guy. >> i didn't know that. write the guy's name. it's chris from florida. okay. >> caller: i need your opinion, here. >> okay. >> caller: i've been in the logistics industry for almost two decades. >> okay. >> caller: and i've never seen a stock beaten down like this one, sdrd, forward air. what are you thinking? >> here's what happens. i got a person on the line who knows this business better than i ever will. am i really going to opine or go do homework so i'm not embarrassed? the answer is i am doing homework to figure out why this stock is down 72%. i'm note going to have someone who knows better than the business than i am to

request me the question. i'll get it. i promise. >> caller: big boo-yah monday, jimmy chill. i have a question for you. >> okay. >> caller: old school stock. it's been on a heater for about the last three years. trend, buy or hold tight. >> hold on. they are a reconstituted company. they're doing a lot of things right. the fact that it's been flat says it's about to re-accelerate. do not touch. maria in south carolina. maria? >> caller: haya, jim. >> how you, maria? >> caller: good, very good. thanks. prior to the recent dividend cut by cracker barrel and the fact that it was down more than 50% since last year. >> right. >> caller: i purchased a few hundred shares. >> okay. >> caller: you think it's a buy, sell or hold? >> i like this julie mesi ino oahu. everything touch she has to take on, she is doing. that to me shows leadership. it shows courage. i'm with her. i would not sell that stock.

let's go to trudy in florida. trudy? >> caller: hi, jim. thanks or the taking my call. >> of course. >> caller: i sure appreciate your wisdom and guidance. >> oh, thank you. >> caller: i'm wondering what your opinion is insm symbol? >> when you see that kind of pricing of the offering that they had and it went up so much, i think we missed it. we missed insmed. that's all we can say, we missed it. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> the "lightning round" is sponsored by charles schwab.

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♪ i kept thinking there had to be some method to the madness when someone posted a june 2 screen shot showing 5 million shares of gamestoppurchased outright, 21 bucks. a huge number of owned that could control another 12 million shares. that's all we know about this house-sized purchase by someone who may or may not be keith gill, also known as roaring kitty, gamestop's chief of the game busting saga. everything about the person behind this trade, every news report is pure speculation. still, why would you ever show your hand like that? who would disclose that they have so-called massive stake as one of the news outlets described it, even though it's

not all that big considered gamestop's $10 billion plus market capitalization. it doesn't make any sense, of course you're planning to sell under your own hype. it opened up about 75% this morning, it would be a decent trade, right? >> sell, sell, sell, sell, sell, sell. >> but is it a legal one? "the wall street journal" reported earlier today that e trade is considering removing keith gil, or the person behind the screen shot from the platform. in the same report the journal said, and i quote, the securities and exchange commission has also been reviewing trading in gamestop pull options around the time of the social media post according to people familiar with the efforts, end quote. then i had an epiphany. maybe this is no different than what ryan cohen did with bed, bath & beyond, now the ceo of gamestop and most revered by the gamesters publicly bought bed bath along with a bunch of co-options and dumped everything fife months later for a $68 million profit. he dumped it as he replaced three board members he had been highly critical of.

cohen really made it seem like he was there to stay, but sold his whole stake, about four months on august 15th 2022 and dumped his entire stake right after. by next april, bed bath bankrupt. can you imagine? he had three people on the board and he just gets out of dodge, selling it all as the hype generated among his meme stock accolades? the s.e.c. never formally charged him with anything. so i can see why someone might want to follow in his footsteps even if there might be an s.e.c. inquiry ahead of the sell. c'est la vie. if you're a smaller player, whoever revealed the position, possibly keith gil, possibly someone else, the lesson is simple. ryan cohen, take a big position and undervalued retail, getting loud without getting loud, okay? i'm sorry, getting long without getting loud. no pump whatsoever, just disclosing your position with some silent memes as well. then they dump everything into the hoopla caused by the screen shot, because the s.e.c. probably won't care, as long as you don't have a man on the

board or own more than 5% of the shares outstanding, which is the reporting threshold. and you don't out to the stock. given that some people come on air and cash in their positions after praising them, i doubt the s.e.c. will make a move against whoever has toyed with gamestop as long as they stay below the threshold. if this is roaring kitty, i don't know that he can change anything that ceo ryan cohen hasn't already come up with, frankly, to say nothing of the ceos that preceded him. i know if i were ryan, i would invite him on the board. i just wish they would find another stock to play around with. gamestop is tired and without great prospects. if it's going to have a chance to reinvent itself, it should be issued new stock right now to all the people buying it in response to that portfolio snapshot. right now if gamestop is feeling like a play, a stock that is something to fool around with, again, not to invest in. and again, the s.e.c. is pretty much said by its inaction that it's not going to go after anyone who owns less than 5% of the company for this kind of thing. that's unfortunate because if

you bought gamestop at $40 this morning, you're already feeling like a moron. and i bet everybody who bought it today ends um feeling the same way. maybe the s.e.c. should just say you know what? caveat emptor. i always like to say there is always a bull market somewhere. i promise to try to find it for you right here on right now, call it the nvidia in the room. could it be a bad thing? more billionaires rushing to back donald jay trump. democrats have an answer. we have mega donor tom steyer. and has a narrative of corporate inflation just been popped? belly up or buckle up on this monday. last call is up right now.