mccall. >> genius. >> right? >> not really. but anyway. >> eww, melms. i think mexico may have bottomed out. >> thank you for watching "fast." see "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 isn't just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. i found out i got a call from american health, yada, yada, yada. it was a hijacked name from some

real outfit. some dummy company has a lot of my information, way more than i thought, way more than my wife has. there's nowhere to turn. the deal is done. does anyone care my data, my life is stolen? then i listen to the apple worldwide developers conference and, yes, there's one company that really does care about not ripping me off and that company is apple. sure, they couldn't stop a third-party health insurer hack like the one that distressed me, no one can but do their best to keep your information private including from openai and chatgpt which they announced a shocking partnership today. your ip is safe. can't be -- thank heavens. when i spoke to ceo tim cook after the event this afternoon, he couldn't stress enough about how much info will stay on your phone, privacy, job one, if not for this, i'll tell you the

truth, i'd be hiding under a blanket. all right, it didn't matter to the market whatale said. today was business as usual. anything that makes semiconductors more powerful or power for data centers cheaper went higher and that's why the dow gained and s&p advanced. nasdaq gained 3.5% but it sure didn't even matter for apple's stock. that dropped nearly 2%. >> oh, no! >> maybe it didn't have anything revolutionary. people were yawning about it. are you kidding me? apple partnering with a company with deep ties to microsoft. tim told me chatgpt may be the first of many services, though, that will be included in apple's a.i. efforts so, therefore, i say, he did but i say don't discount gemini from google. could happen. all day i heard there were no reasons to upgrade your iphone from this including before tim said anything, people were saying that. were you watching the same presentation i was?

for me this apple conference sparked the beginning of generative a.i. for personal use. not corporate, personal use. anyone outside of those with the apple 15 pro and pro max will want to upgrade because everyone else will. you have enough daytona on your iphone it can make great predictions and give you great insights about yourself. if you let apple put it to work it can make your life be easier, make it more fun and that's what cook kept stressing to me. this is personal a.i. not enterprise, personal. as tim sees it what apple added was so new in the future you won't believe you ever lived without it. i agree. see, it's not just the phone. i saw a way to learn math that i wish i had years ago and saw the vision pro 2 taking my 2-gig pictures and making them 3d. i want to go back in time to geno's steaks in philly with pop in 2012 and have a couple of

whizzes together and how it looked so many years ago. tim reminded us vision pro can do that. you got to focus. see, for me on a day where i was frantically trying to contain the damage of some horrendous hack where the criminal enterprise sounded so convincing, i was trying to figure out who is in my corner and the answer is tim cook as far as i could tell. he's in the corner before i go into the ring including those who only want my daytona for profit which is kind of like everybody. the new phone lets you lock individual apps. when they steal your phone, if it's unlocked, and that's why i found developers conference so, i don't know, soothing. apple intelligence, its version of generative a.i. is using your own personal information from fixing your handwriting to interrogating your in-box and putting through things in your own personal contacts and the machine knows you better than

yourself but doesn't sell it to anybody else. plus, you know it's whimsical. how about jm emojis. i was tired of sending the one with sunglasses. let's be more creative. i need quick response. it's got that. animation sketch, illustration, they understand me or as tim said a layer of intelligence not on the market, of course, i'm sure changing the whole darn thing. there is a ridiculous amount. searching photos in natural language, i want to see jimmy with eagle stickers on his face, whatever, type in a description and pick your best photos with story lines. find what it knows is you and it will appear ahead of when you think of it, it really will. i'm not saying it's a mind reader but it's pretty close or put it another way, you can make stories your own stories like they do when you start the day and do what you want. so cool to be creative. you can ask it to design what

you'd like. you have a slide deck and you want to figure out what to put on it, just go ask chatgpt but, remember, they can't track your ip. they're doing it for the rest of us, not the enterprise. they won't be able to offer an app to figure out when to call on customers or onboard new employees seamlessly or redo contracts or certify an application for a mortgage 32 times a day or something internally about projections involving your own balance sheet or how many dees we closed or how much is being sold per second. we won't be able to use it to put ourselves to sleep. all pedestrian stuff that means to help you compete with other businesses in the least creative ways possible. apple intelligence won't be able to figure out the 3% of your staff you got to fire because of a.i. but we will be able to imagine things then have them appear or not even imagine them, let the iphone imagine it for us. let it personalize using the knowledge you've given it for

years while not allowing anyone else to access it. the analysis is that this is incremental and those same people were sheepishly upgrade their phones in a few months because they want apple intelligence and want to make their own emojis like their friends sent and want to be able to use a touch-to-touch phone. get rid of venmo so you can see yourself, learn about yourself and no one can steal your info. that's a good deal, one that enhances your life and will eventually enhance the stock. not today. doesn't work like that. bottom line, it is revo revolutionally incrementally or incrementally revolutionary or even better, apple, own it. don't trade it. joe in florida, joe. >> caller: jim, good afternoon. how are you? >> joe, i'm real good. i'm fighting mad about some other stuff but real good here.

what's up? >> caller: i just want to start by saying i am a proud club member and your continued teachings and education are the best. >> oh, man, you're a good man. that piece i did yesterday, whoa, i read it like 1e67 times but my editor made it better. what's going on? >> caller: my stock is boeing. since it's slow in april the stock climbed 12% to close today at 190. i have two questions. first question, one of the problems is boeing has reduced its bill pay so much to address quality issues it can't make enough planes a year thus affecting its revenue. boeing has a backlog of $529 billion in planes. how long in your opinion will the build slowdown go on for? question number two, with the new executive management team coming on board in january and the quality control issues being addressed, is this a buy, hold, or sell? thank you in advance. >> sure, look, i think you can hold boeing. i can't encourage people to buy

it. why? it's not in boeing's hands. it's in the government's hands. i got enough companies that have enough problems but to have a company in the crosshairs of the government every single move that makes it too difficult for me so i'm going to have to pass on any recommendation and brian in oregon. brian. >> caller: brian in wisconsin, how are you doing? >> well. what's up with you? >> caller: oh, we're doing well today. quick one for you here, given the current economic conditions what is your outlook on caesars entertainment going forward. >> caesar's is good but when my travel trust owns it for the club, i cannot believe it is down at 92. doing so well. so much better than caesars but no one is focused on it. craig billings, come on the darn show and talk to us about wynn. apple intelligence lets you imagine yourself, learn about yourself and like apple, what can i say? not steal yourself or at least they won't try. it's a good deal.

one that enhances your life and will eventually enhance the stock, not today, not tomorrow but you know how things work. this was never meant to be a market mover. on "mad money" after the latest s&p 500 shake-up i'm seeing if the removal of three names to the index should be an sign for investors or an opportunity? then i'm kicking off a new series on health care stocks by digging lew the sector to find some player that might be worth a closer exam and apple is only the latest to announce a.i. integrated computers. let's talk to the ceo of hp to see if its own slate is a growth signal. stay with cramer. >> announcer: 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 something, head to madmoney.cnbc.com.

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. a slow network is no network for business. whose resumes on indeed matc that's why moreria. choose comcast business. and now, we're introducing ultimate speed for business —our fastest plans yet. we're up to 12 times faster than verizon, at&t, and t-mobile. and existing customers could even get up to triple the speeds... at no additional cost. it's ultimate speed for ultimate business. don't miss out on our fastest speed plans yet! switch to comcast business and get started for $49.99 a month.

plus, ask how to get up to an $800 prepaid card. call today!

♪ on friday night s&p global buried three stocks in the s&p 500 and replaced them with three newcomers, crowdstrike. we had them on the show last week, along with kkr and godaddy, the website builder and digital marketing firmg. that's why all three jumped like they did because everybody knows the index funds will be forced to buy them when the change becomes official two weeks from now. you know what, something different, i want to twist things around. i'm going to focus on the three stocks that got cut from the s&p 500. comerica, a diagnostics company and robert half.

i'm wondering what happens to these companies aside from the initial wave. any hope for them? are they doomed? the answer is nothing good happens. not just by the seat of the pants but recent expulsions of the s&p 500. the last two stocks were vf corp, the troubled apparel play and dense play serona that happened in april. both have continued to go lower since the initial announcement. meanwhile the index got kicked out of rallied more than 2% over the same period. vf's decline was worse than that for most of april before it started showing signs of life. the company reported yet another very bad quarter on may 22nd and the stock fell to a 52-week low of $11 the next day but then

rebounded going into the close and since then, acted a little better climbing to $13 and change as it came in. i like the new ceo. this is a tall order even for say hercules. s that is with a 6% single day decline. let's go back further. on march 18th supermicrocomputer and deckers outdoor made room and dumped whirlpool. yes, whirlspoon and zion's bancorp which is another troubled regional bank. when you look at the performance since march 1st they are a mixed bag. whirlpool beset with a consumer that's less willing to shell out for big ticket items and stock fell more than 17% but zion's bank held out better, stock up more than 6.5% since the announcement actually outperforming the 4.4% gain for

the s&p 500 for the same period. that's not company specific but zion got hit insanely hard during last year's mini banking crisis seine and it's been recovering ever since we realized it was off the table. it's not doing great but not doing terrible either not to the point we're worried it might go under. of the four stocks dropped so far, three have underperformed 1igly in all cases since the announcement, well, just one, zion's outperformed since it got the pink slip. we looked at the ten stocks that got kicked out of the s&p last year and still exist today and you can see the same trends. specifically of those ten stocks only one has outperformed the index, lincoln national, major insurance company, the linc where the eagles play and they're an insurance bull parke. the other nine have lagged the s&p. some a lot mar than others. for example, packaging company sealed air is up more than 13% since we learned about its dishonorable discharge last

november. not bad at all but not as good as the s&p up almost 17% gain over the same period. hey, same deal with the drug company that's all about women's health, it's up nearly 20% since the dismissal 5 from the s&p was announced. a fine performance except the s&p has a 4% gain over the same period. of course, there are huge declines to. of the ten, five are down since we learned they were being remove even though the s&p was up double digits. lumen technologies, debt laden telecommunications company known as centurylink formerly lost 66%. solar edge is down more than 43%. remember rubbermaid and newell brands dropped. this analysis excludes the four other stocks that got kicked out of the s&p 500 last year. three of those were regional banks that got seized by the fdic in order to prevent

bankruptcy while the fourth was dish network acquired by echostar but dish's stock was at $7.30 when we learned it was a goner. when you look at the echostar shares you would have gotten in the takeover they're only worth $6.26 so down 14% during a period when the s&p is up more than 25%. what a list we produced here. now, why go through this? because when i saw the companies being expelled last friday night, comerica. i illunmina and half, that's not bad. but it would be fine if rates come down. . llumina had trouble in the post-covid era and it jumped last week after their cancer testing business later this month. feels like it could approach a bottom. robert half the staffing firm suffered from hiring trends and some of the markets like tech but still a company with a pretty good long-term track record. however, when you look at how these former s&p 500 components

tend to perform it's hard to get behind any of the new ones, sure, removal from the s&p is not a death sentence but the numbers here are stark, aren't they? over the last 14 names that have been removed from the index and still exist dating back to the beginning of last year, only two have outperformed the s&p since the announcement. bad odds. don't forget. people talk about buying in indexes and passive invest but the s&p 500 is more actively managed han people realize. they do a fantastic job deciding which to add and which stocks to subtract. that's one of the reasons why i'm so comfortable with telling you to put a big slug of your savings in an index fund that mirrors the s&p. nothing passive about that. the bottom line when you see a stock that gets expelled from the s&p 500, please don't bother to try to catch a bottom. you're most likely catching a fulling nugget. historically the odds are against you. if standard & poor's doesn't want them, you probably shouldn't want them either. "mad money" is back after the break. >> announcer: coming up, new

health care names to consider? cramer reveals a few healthier choices next. [crowd chanting] they ignored your potential, and mocked your ambition. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them. because you know what it's always been. inevitable. ♪♪

♪♪ - "best thing i've ever done." that's what freddie told me. - it was the best thing i've ever done, and- - really? - yes, without a doubt!

- i don't have any anxiety about money anymore. - great people. different people, that's for sure, and all of them had different reasons for getting a reverse mortgage, but you know what, they all felt the same about two things: they all loved their home, and they all wanted to stay in that home. and they all wanted to stay in that home. - [announcer] if you're 62 or older and own your home, you could access your equity to improve your lifestyle. a reverse mortgage loan eliminates your monthly mortgage payments and puts tax-free cash in your pocket. call the number on your screen. - why don't you call aag... and find out what a reverse mortgage can mean for you? - [announcer] call right now to receive your free no-obligation info kit. call the number on your screen.

as we get closer to the second half of the year, i think it's time to start thinking about what else can work in this market. sure, the s&p 500 is up more than 12% for the year but the vast bulk of that comes from tech.

so, what do i like for the second half? look, i think it's clear that we're going to be getting a softer economy, even if that softness isn't spread evenly or even isn't that evident right now. if it leaves interest rates higher longer in order to have, let's say a slowdown and what goes well with a slowdown, what you need exposure to in industries that do just fine even in a recession, forget discretionary spending we need necessity spending. that brings me to health care. specifically the drug stocks. over the past couple of years the best story from pharma involved over diabetes and weight loss drugs, it's why i've been pounding the table and why we still own it for the charitable trust. even with the big fda advisory meeting on their alzheimer's's treatment, it was positive and drug stocks that haven't had spectacular runs but a bit up, every day we'll run a series on my favorites, non-eli lilly

pharma because i think they can win the second half once you figure out which ones you like. let's start with one that i'm really starting to feel great about is astrazeneca. i don't think it gets enough love. you don't hear about it that much, do you? even just focusing on european drug companies it tends to get less coverage than novo nordisk or even the big swiss drugmakers like roche and novartis. but this company has a much stronger story. for starters it's got an amazing oncology franchise, among the best in the business. remember we interviewed their ceo last week? the company released three important daytona sets that the big american society of clinical oncology conference got a standing ovation for one. we're talking positive phase 3 daytona on two different lung cancer drugs and a breast cancer

drug, potential blockbusters. they got the daytona ota. this reduced risk of disease progression or death by an astounding 84% in patients with a specific type of nonsmall cell lung cancer. no wonder it got a standing "o." insane number that can save a lot of lives and affects 15% of american was get the disease and, well, for many it's a death sentence. but maybe not now. by the way we've had updates on the research since the conference. last monday they said they got a recommendation from a key committee in the european medicine agency saying it should be used along with chemotherapy and this morning we learned they've been granted priority review by the fda in term of expanding its label to include this type of lung cancer. all great signs. as for the other two data sets

we have limited stage small cell lung cancer treatment and it implies it could offer an improvement in progression-free survival versus chemo. that again is a very big deal. but frankly these readouts are just the icing on the cake. the truth is they've been chugging highly for years now basically since the end of 016 including a nice steady rise over the past five years. in fact, the stock's doubled in the last five years. >> moo! >> why? astrazeneca never got a huge revenue boost from the pandemic. they made an antibody treatment but weren't trying to make money off it. in retrospect the lack of a covid boom was a positive because after the pandemic there was no bust from the comparisons. contrast that with pfizer. astrazeneca, it was much easier to focus on the strength of the

core business. nothing obscuring it and it's doing great. astrazeneca reported in april and delivered a blow-out quarter, monster revenue beat with a 15 cents earning beat off $1.91 basis and reviewed the quarter ahead of our interview and was struck by how wide-ranging the strength was. all four of their major segments grew by double digits and beat expectations. the only exception was the company's vaccine in the immune therapy division, too small to matter. down 35% but still well ahead of expectations. the one part that went through a post-covid bust but again tiny relatively to the rest of the business and strong enough to kick off a big rally even as they reit rated full year forecast. since then it's been able to continue running in part because of the data i mentioned and held an investor day when management lady out incredibly bullish long-term targets talking about doing $80 billion in sales by 2027 which is a stunning number. one that implies they can deliver an 8.5% compound annual

growth rate. that is -- that's incredibly strong. as part of the path to 80 billion in sales management said they believe they can have 25 multibillion dollar blockbuster medicines by 2030. nearly double the 13 the company has right now, 25. i foe it sounds incredibly optimistic. better than almost every drug company but given their track record i'm inclined to give them the benefit of the doubt. at the moment it's not a major player in the space but might be at some point in the not too distant future. they are not going for blanket superpowerful weight loss drugs. instead they have a more nuanced approach recognizing the difference of overweight people with different goals so they're working on three heading to phase 2 testing later this year, each intended for different subsets of the obese population. as the market starts to mature i bet they could see success with this kind of strategy but it's not in your story. the bottom line of this exciting

situation, as we head into the second half of the year i think you want some pharma in your portfolio to cushion the blow from a slowing economy and do a heck of a lot worse than astrazeneca. stay tuned for more drug ideas through the rest of the week. let's take calls. bob in maryland. >> caller: i noticed that walmart had a split recently and they're doing very well and they sell a lot of procter & gamble products. procter & gamble have been doing gangbusters. like 169 last week, fell back a little bit now. what do you think procter & gamble's chances are in the near future? >> okay, i think it's a very interesting announcement of about what's in walmart and what does well, actually limit procter & gamble directly. it's going to be more of a function of the different products that they sell well everywhere including at costco or kroger. i think we own a big position

for it for my trust, yields 2 1/2. we like the situation, don't chase but we do like procter & gamble. dave in virginia. dave. >> caller: greetings from beautiful virginia. professor cramer. >> great to have you on the show. what's up? >> caller: hey, bristol-myers is down 30% over the last year and lower eps expected for the remainder of the year but notice on their public website they were recently granted fda approval for a cell therapy treatment for non-hodgkin lymphoma. do you think it's time to invest in bristol-myers? >> i think bristol is going to be a long-term coming and i don't think that -- i think there are other pharma that are better. i do think, though, it does seem to have reached a bottom when it hit 5.75% yield. we're thinking about but have to go long term. maybe 2029, '30 before you get really good news. as we head into the second 4568 of the year and possibly towards the slowing economy, i think it's worth owning some

health care names like astrazeneca. one that doesn't get enough love. you might want to consider it. much more including my exclusive with hp talking to the ceo of the personal commuting and device company. find out where we stand on the a.i. pcsand more. then what should you make of the new activist stake in southwest airlines? i'm mapping out the story to see if you should get on board. then "the lightning round," so stay with cramer. will the fed signal cuts later this year? fed chair powell's remarks and message to investors. you need an idea. it's a pillow with a speaker in it! that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh! solution-oriented. [jenna screams] and most importantly...

is the internet out? don't worry, we have at&t internet back-up. the next level network. i sold a pillow!

♪♪ sandals jamaica sale is now on! with rates from $199 per person per night. visit sandals.com or call 1-800-sandals

i keep talking about how we're on the verge of a brand-new personal computer cycle. a whole new generation of machines with built-in a.i. that will force people to upgrade.

who is leading the way, hp inc., the old hewlett-packard. hpq is the symbol unveiling its line of pcs about three weeks ago. it then reported a great quarter a week and a half ago and sent the stock up 17% in a single session so can this thing keep climbing? let's check in with enriques lores, the president of hp inc. welcome back to "mad money," mr. lores. >> thank you, jim. good to be here. >> i'm beginning to believe as you've been saying we would get to an inflection point where you would see that the rate of decline slowed for four straight quarters then after it, we would begin to see pcs with or without a.i., we'll get to a.i., really start to turn up. are we at that point in the cycle? >> yes, jim, we are pleased with the performance wide in the quarter and grew operating profit. we grew eps but more important we started to see growth of pcs again driven by the momentum that we see in the commercial

category that as you know is the most important category in the pc space and not only that but also our service business grew and we have very good momentum and we start the second half of the year and are pleased with the progress and the momentum we have now. >> all right, let's talk about something that will supercharge the momentum. a.i. pc because maybe people don't realize, we spent a lot of time talking about what apple is doing -- they're doing their a.i. which they talked about today but what you've got going is rather monumental. i want you to describe to people what this new pc will be like and what it can do for us that your current ones can't. >> well, we are really excited about a creation of the new category and there are three major things that people will be able to do. first of all, they will be able to experience what today they experience in the cloud locally. and this has three big advantages, cost, security, and speed. second, and really very interesting, as well, is pcs will personalize their

performance. we are building models in the pcs that we learn how their users are using them so basically my pc will be personal lyzed for how i use it and will perform differently than your pc or the pc from someone else, which will help us to optimize performance and battery life. and, third, especially for commercial customers, these pcs will be most secure than any other product before. because they also have built-in models that will learn from the new attacks and will be able to prevent from attacks or viruses that have not been invited yet so great improvement in terms of security as well is there that's very good because security is top of mind for many, many people. let's talk about co-pilot. what can an individual do with co-pilot? we know corporations can use it but how will we integrate it into our lives? >> just think about the key productivity that anything does, creating a spreadsheet, a

document, doing an analysis, you will be able to do that with local information. let's say you have in your pc analyses you have done before or the emails you have got, if you use one of the cloud applications, they don't have access to that information to provide your insight. running the models in the pc, running co-pilot in the pc, you can run all these things locally and get the same advantages that you have in terms of getting fast insights, just doing it locally, again, faster, cheaper and more secure. >> now, a lot of people are saying to me, jim, you've emphasized that amd is a good partner with hp. maybe you ought to focus more on how nvidia is a deep and trusted partner of yours, and we have nvidia in a lot of different hp machines. >> we are working with nvidia. we are working with qualcomm. we are working with amd. with nvidia we have learned a new line of work stations and

software to design language model we call a.i. studio. we learned it in march in our conference and it provides a much easier solution for data scientists to develop their own models which we start to see and have very big business in the a.i. transformation that is happening. with qualcomm and amd, we are launching the new a.i. solutions. i watched last week with both christie and lisa showing the new portfolio that is coming to market now or in the next week, so it's a very exciting time to be in technology and a lot of changes in our category. >> okay, now i know i talked with best buy last week, they have a good relationship with you talking about the hp omni book pc. you mentioned it too. if i go at the end of the month will i be able to find it? >> you should be able to find it at the end of the month and definitely it will be ready for the back-to-school season which

is one of the most important selling seasons for best buy and within the u.s. in general and as you said we have a very strong partnership with best buy. we have exclusive products for them and we are excited about the opportunity this is creating for both companies. >> i don't want to lose sight of the fact that early on i've been following 3d printing and refuse to give up on it because it's too economic and makes too much sense. where are we? >> we actually in the last three years we have seen the 3d printing business impacted by the situation and we start to see some signs towards recovery in the industrial space and especially on the industrial side of minute we start to see some good recovery, we just had a major event in germany during the last two weeks and it was great to see the excitement in some of these categories. >> your future ready plan, which is going to be the whole time you've been remarkable with cash flow, but it sounds like there's even more to be gained because

the cash flow here is extraordinary. you throw off a lot. tell me about that plan. >> well, we are making progress, executing that and it has different elements, first of all, it's about continuing to build a stronger hp and building a more growth oriented portfolio and both with investments we are doing in a.i. and also in our growth categories we start seeing the momentum that is going to be generating. we're also doing a lot of work to increase the effectiveness and efficiency of our operations and this is what is translated in better profitability and higher cash flow and also continuing to invest in our people because at the end we want a long-term sustainable company, and we need to continue to invest in themes but we are pleased with the progress and the strong financial results we delivered this quarter are a clear consequence of the progress we are making executing our -- >> i think people are -- how do you pay opposite above 17% on a single day? i think the answer is this stock has got -- you have an

inexpensive stock versus the future which is very bright and want to hank enriques lores, president and ceo of hp. the new pcs are coming and will be brought to you by hp. thank you, enriques. >> thank you, jim. great to be here. >> "mad money" is back after the break. >> announcer: coming up, pop open the umbrellas and tee up your toughest questions. cramer takes on all comers in "the lightning round." next. business. it's not a nine-to-five proposition. it's all day and into the night. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business.

powering more businesses than anyone. powering possibilities. [thunder rumbles] ♪ ♪ ♪ ♪ 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?

♪ ♪ [thunder rumbles] ♪ ♪ (office chatter) is it me...or is work not working? at least, not the way it could work. your people are buried in busy work. and you might be thinking... can ai make it all work? can ai help your people work... without all the workarounds? feel better. make customer service work the way customers expect? that one. make your old tech work with your new tech? thank you. and todd here is wondering, can ai do all that... now? no pressure. it can. on the servicenow platform, ai transforms your entire business. your people work better, your customers are happier, and todd... well... he's practically euphoric. practically. because when your people work better, 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. -unnecessary action hero ... the nemesis. -it appears that despite my sinister efforts, employees are still managing their own hr and payroll. why would you think mere humans deserve to do their own payroll? because their livelihoods depend on it? because they have bills to pay? hear me now, paycom! return the world of hr and payroll to its rightful place of chaos or face a tsunami of unnecessary the likes of which you have never seen! >> announcer: "the lightning round" is sponsored by charles schwab. trade brilliantly. it is time. it's time for "the lightning round."

play the sound. [ buzzer ] >> then "the lightning round" is over. are you ready, skee-daddy. we'll start with coles in north carolina. coles. you're up. >> caller: hello. >> you're up, coles. it's jim. >> caller: boo-yah, jim. >> boo-yah. >> caller: calling from north carolina. this is the seventh time i've called and talked to you. that's how much i value your advice. >> ah, i appreciate that, sir. how can i help? >> last week, i made a purchase of advanced micro devices and the following day it went up $6.18, giving me a good profit. but the last three days it has dropped and in a day it dropped over $7.50. giving me a huge loss.

>> well, but let's remember, it's been a great stock over a long period of time since lisa took over. i think it's just trying to settle. it got downgraded today. i thought the downgrade made some since. the problem is nvidia is so powerful but i won't write it off. i think you should hold on to the stock. melanie in south carolina. >> caller: boo-yah, cramer. columbia, south carolina, gamecook country and interested in bwxt. >> another nuclear power play and totally get that people want those. that's why i keep sending people to gev because they're nuclear. they're also natural gas and they're also wind and you want all of those. that's what we need to get out of this jam we're in and paulette in louisiana. paulette. >> caller: hi, jim. this stock is supposed to split

into three different companies. it's dupont. >> yes, and i think dupont must be bought. we've been buying it for the charitable trust and telling club members, dupont must be bought below 80. it must be bought. let's go to tom in rhode island. tom. >> caller: i bow to you, thy cramer. i wish i listened to you two years ago. instead i got caught up listening to my kid's college professors pumping up alternative energy ideas. they never amount to anything. >> no, they don't. >> caller: they don't. maybe this one is now cheap enough and in your wheelhouse, though, or is it just going to give me more bad gas? it's bloom energy, be. >> i don't want that. again, i'll say gev. i think bloom energy has been a very, very problematic stock for a lot of people and i'm not going to say it's going to get any better. i think you can do better. they have not been able to make any money, and i think that's

important for a stock. let's go to ruben in california. please, ruben. >> caller: hey, jim. sending you a friendly boo-yah from sunny california. >> thank you, ruben. i'll send you one right back from manhattan. lower manhattan. all right. fair enough? >> caller: thank you. hey, with the holiday season approaching, what do you think of shopify? >> what holiday? geez. are we there already? man, time is flying. well, let me tell you i think shopify at 63 is a good stock to own. it last been going down and down and down. it's kind of like -- it's like a springsteen song. i think this is the right level to buy. i think it is. let's go to hassan in georgia. hassan. >> caller: hi, mr. cramer. what are your thoughts on post holdings -- >> it's an inexpensive stock. i like inexpensive stocks. i think they're doing fine and

it's a great call. john in illinois. john. >> caller: first-time caller. it's an honor, jim. >> i'm glad you're here. what's up? >> caller: boo-yah and go, eagles. >> go, birds. what's going on? illinois? i didn't know we had fly, illinois, fly. what's up? >> caller: live nation. >> live nation. okay, so live nation, look, the government is after them. that's never a good thing, and so i'm going to have to take a pass on this one right now and that, ladies and gentlemen, is the conclusion of "the lightning round." [ buzzer ] >> announcer: "the lightning round" is sponsored by charles schwab. coming up, cramer's to do list when an activist buys a stock. southwest airlines has a recent case study. next.

trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more - all crafted just for traders. and with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. trade brilliantly with schwab. ♪♪ ♪♪ ♪♪ chewy, a citi client, uses citi's financial expertise to help drive its growth and keep its supply chain moving, so more pet parents can get everything they need... right when they need it. keeping more pets, and families, happy. ♪♪ for the love of moving our clients forward.

for the love of progress. this is our future, ma. godaddy airo. creates a logo, website, even social posts... in minutes! -how? -a.i. (impressed) ay i like it! who wants to come see the future?! get your business online in minutes with godaddy airo

♪ when i see an activist investor take a major stake in a company i do three thing, rate the work of the activist and consider the prospects of the 2g9 and, third, i try to gauge what are the chances of anything happening that could bring value. this morning we learned elliott management, one of the smartest activist firms on earth took a nearly $2 billion stake in southwest airlines, once a stellar performer. it released a letter with a pretty thorough analysis. a company with a winning strategy. elliott puts it, southwest revolutionized the airline industry with a commitment to providing customers with a low-cost alternative to the legacy airlines end quote. that was then. this is now. quote, today, however, poor execution of leadership stubborn

unwillingness to evolve the company's strategy have led to disappointing -- sorry, deeply disappointing results, end quote and says, southwest share prices 15 declined by more than 50% in the past three years, end quote. in fact, until today's rebound in response to the announcement it was trading at levels last seen during the depths of the covid-related shutdowns. elliott has worked on southwest for 18 months and they are, well, let's just say, quote, convinced southwest represents the most compelling airline turnaround opportunity in the last two decades. i like that. what can i say other than i agree. it's stunning an airline could deliver this during a travel boom. it seems odd given the circumstances, the people running it seem owe privilege use. there is a pause in quotes when bob jordan came on cnbc and after the first quarter of this year, a bad quarter, he said, we had a strong first quarter, despite the financial results. oh, despite the financial

results. um, is that kind of like other than that, mrs. lincoln, how was the play? second question, what are the prospects for the company itself? i have to tell you i think southwest would be amazing if they embrace some of the big changes along with what elliott is proposing but they can't get there on their own. in fact, southwest has been going backwards with costs headed higher thanks to a great deal of what elliott calls, uneconomic flying, end quote. the sky is literally the limit if they can be brought in as a change agent. yes, some heads might need to roll. maybe a lot of them. but these numbers aren't good enough to management's credit they haven't played the blame game and could have laid blame at the neat of boeing which hasn't delivered the planes southwest needed to operate effectively let alone take advantage of the travel boom. this company needs a major shakeup. what are the chances of anything happening that could unlock value? let's look at what the company said in response. quote, we maintain an open dialogue with our shareholders & value their

perspectives, okay, open dialogue. the company says they were just contacted by elliott yesterday and they, quote, look forward to bitter understanding the views on our company, end quote. surprised that it wasn't a little more contact but may be a sign that maybe there's no one elliott thinks they can even work with all that constructively. maybe a thorough housecleaning is needed. at the same time southwest felt compelled to tell us the board of directors is confident in our ceo and management's ability to execute against the company's strategic plan to drive long-term value for all shareholders, end quote. translate that into english that says it sounds like we're committed to the status quo. unfortunately, that's not good enough. i don't think anyone is sat satisfied. the fact they're sanguine is smug and gratuitous. maybe the board needs a total shake-up if they're satisfied with this level of underperformance. that said my judgment, the stock is too cheap. southwest misjudging the shareholder loyalty. it's to better financial performance, not to the board of

directors or the ceo. i believe elliott can start making things happen. to me that says you should buy the stock because going forward the status quo will no longer be accepted by the actual owners of the company and that's the shareholders. i like to say there's always a bull market somewhere and i claim to find it for you right here on "mad money." i'm jim cramer. right now on last call, europe stamping to the right. what will it mean for the markets ? america and your money, billionaire david sachs is here. game stop shares getting wrecked again but a far better speculative frenzy could be warming up. it is make it mondays. we will meet at the entrepreneur who turned a cookie side hustle and a $200 million business. yes, there will be food. all that and more over the hour. belly up or buckle up, last call is up