>> karen? >> signet. >> bonawyn? >> nike. it's starting to base here. >> guy? >> see, you don't have to be that quick. >> slow it down. >> you're going to see ron howard tonight. i don't know if i'm doxing you or not. guy biogen. >> "fast." "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" startsnow. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you a little money. my job is not just to entertain you but educate and teach you. call me 1-800-743-cnbc, tweet me @jimcramer. people, we're losing some themes and that's causing trouble for this market even as the averages were basically flat today.

dow dipping 65 points. s&p inching up .23% and the nasdaq advancing .34%. it's narrow. unless more companies and more sectors start doing better you aren't going to get the kind of healthy breadth that so many investors want to see before they dive in. we've had a terrific market for most of the year but many if not most of the people i talk to believe the rallies are unsustainable. they think we'll have to pull back unless things broaden out. we know the rally's driven by a handful of stocks, nvidia, apple, alphabet, microsoft, amazon, ork sxl now broadcom which we own for our charitable trust. we put oout a bulletin to all club members that told the tale. broadcom's integral to generative ai. it makes much of the plumbing that goes into the data center. it has many other tech businesses including a very big telco division that's been in the doldrums for ages. but its incredibly strong artificial intelligence revenue totally outshone anything negative. as we told members of the club it's ai-related business saw a continued surge in sales.

management raising its full-year outlook to $11 billion backing up our view that this is one of the best ai chip stocks in the market. and that's how this $770 billion company that you may never have heard of could jump more than 12% today. oh, that and the 10 for 1 stock split that's decksed to make the stock more enticing to home gamers. hasn't even happened yet and it's already working. as usual there was the pin action from a major tech company that reported a good number. nvidia rallies, dell. arista. micron. tech might continue to lead tomorrow as adobe which is on later in the show record aid stellar quarter. it does so much more than graphics. it gave an excellent forecast. the stock is soaring in after-hours trading. we could have an exact repeat of what happened today. bears and tepid bulls dislike that this market's led by a handful of tech stocks. i don't blame them. i'd prefer to see many more sectors participating, sure. that would be great. the problem is that they often

can't participate because of issues in their sectors that make it difficult for you to own their stocks without the potential to lose a lot more money than you do if you own tech. so let me take down some of these issues so you know what i'm talking about and have a better idea why we are not broadening out and making a decision whether you want to be in tech because of the issues that i'm talking about. let's start with the banks. this group of bellwether sector for the market had been producing really solid gains. we got solid beat and raise numbers when they reported their first quarter results. but this week the winning streak ended. and it ended in a very strange way. an unnerving way frankly. huntington bank shares hban, one of the best regional banks, cut its forecast because of what's known as lower net interest income or nii. this was totally out of the blue, people. just last week huntington's cfo traveled with ubs to europe and told a really compelling story. earlier this week the same cfo went to a sector conference and

said net interest income guidance would come up short, projecting it would be down 1% to 4%. previously it was supposed to be flat, maybe somewhere between plus or minus two. that may not sound that much to you. but when you think everything's fine you get gaffe like that you start thinking huntington can't possibly be just huntington, right? who else has to cut numbers? someone else is lurking. that's why investors decide to sell the banks first and ask questions later. why take the risk with the averages at such high levels? i personally think huntington will prove to be an aberration but it doesn't matter what i think personally. what matters is that stock which was about 14 1/4 a month ago is now at $12.34. that's a roughly 13% decline. for the moment nobody wants to get near the banksfor fear they'll have a huntington on their hands. second, health care has been reliable until recently when it started rolling over. once again i like the stocks down here. we're doing a week-long series on the most attractive growers in pharma. they're what you should be buying in a slowdown where inflation's going lower. that could fit our description of a market. but last week we got a very

strong employment number, robust hiring. so we don't know the direction of the economy overall. certainly no call from the fed saying a slowdown is imminent the recession means health care stocks would be getting hammered. i already recommended astrazeneca, merck and novartis earlier this week. i've got one more tonight has a good dividend, still one more tomorrow. i like these stocks when they're going lower, not higher. but again, sadly that's not what most people like to do. they like to chase. i don't like to chase but most people do. third there's the transports. now, this is a fulcrum group that does have me concerned because the transports are trading like the economy might have a much more abrupt slowdown than we, especially me are thinking. now, some of these names have underperformed for quite a bit. united parcel for example. the stock fell 14% for the year with a precipitous drop in the last month. that to me is worrisome. truck giant j.b. hunt down 20% for the year thanks to multiple points of weakness when it last reported. intermodal down 9%.

contract services off 2%. integrative capacity solutions off 26%. truckloads where revenues sidelined 13%. operating income nose dive. that is terrible. how about the action in the rails all of a sudden? this normally robust group has been smacked down hard. csx and norfolk southern. union pacific down 9% for the year. these are relentless grinding downward moves and they don't seem like they're stopping anytime soon when you compare that to apple or broadcom or adobe, i mean, geesh. fourth we witnessed a sudden precipitous decline in the food and beverage group. the very reliablemolson coors symbol tap has gotten clobbered. over 17% for the year. it just dropped from 69 in april to $50 and change. today hitting a 52-week low today. kraft heinz is down 12% for the year. pepsico which is not known as a wild trader, right? it's gone from 183 a month to 163 today. that's just unnerving. and obviously there are stocks

like mcdonald's which has fallen from 302 in january to 253 and change today. just eight points up from its low in october of last year before the fed's big pivot. it joins the likes of starbucks which is off over 14% for the year and can't seem to get any traction. the restaurant cohort has been very disappointing aside from some extremely positive exceptions to -- wingstop dominos. ge got smacked climb declining more than 3% thanks to a number from jpmorgan related to supply chain issues. boeing's 1% loss. boeing always seems to be thrown for a loss. the problem is i'm not cherry picking here, people. those are the largest sectors in decline. i could have widened my net to include oil and gas, retail, non-pharma health care, drugstores, entertainment. these are all very weak sectors. but weaker for reasons that are understood. numbers are either bad or starting to roll over. their stocks cannot hold these levels if numbers are being cut. lots of land mines. it's not that the market needs

to broaden out. it's that buyers can't -- they're afraid to go. buyers are afraid to broaden out. it's too risky. too much uncertainty away from tech. too much certainty in tech because of the coalescence of accelerator computing and generative ai because of what jensen huang has told us. he's the ceo of nvidia. here's the bottom line. ask yourself without the ai-related tech names where would we be. but more important if you sat them out because you waited for the rails to catch fire or the foods to catch fire or the banks you've missed out on? major gains and that's our job is to find them. sometimes you have to accept that it's worth trying to make money in a market that has some really bad breadth and no mouthwash in sight. let's go to bill in massachusetts, please. bill. >> caller: boo-yah, jim. how are you today? >> i am good, bill. how are you doing? >> caller: can i just take 30 seconds and talk about the club, jeff marks, the morning meeting and you? >> sure. that would be nice. i didn't put you up to it.

i'm thrilled that you mentioned it. thank you. >> caller: it's all me. i just want -- i want to give a special shout out to jeff marks. he's coming into his own. he keeps you grounded in the meetings. i love how you guys bounce things off each other. today's meeting was great. >> well, thank you. that is what i -- bill, thank you. jeff and i sit next to each other and what you see is what we try to do for the club. the whole day we're doing that, back and forth and back and forth including for broadcom, which we had and was terrific. but for starbucks which we had and was miserable. so we go over the good and the bad. how can i help you now? >> caller: well, jim, i've been doing my homework on this company. i feel very bullish on american express. please give me your opinion. >> i like american express very much. i was sad to see it downgraded the other day. i don't think it should be. i think steve skurier's doing a terrific job. the stock's 22 points off its high. it makes a lot of sense to me. i know the chart looks terrible. i think that's driving a lot of the downward momentum. i think you buy some and wait

ten. i'm going to tell -- well, jech jeff's watching the show and i know you're going to make him feel great because he is great. he's just a terrific partner. anyway, look, sometimes you just have to accept that it's worth it to try to make money in one particular group even if there isn't participation away. we must always be opportunistic, people. if you've been sitting out the big tech names in hopes for a broader rally then you've missed some once-in-a-lifetime gains. on "mad money" tonight signet jewelers reported light sales sending the stock lower but could an uptick in engagements be an opportunity to get in on this name? i'm chatting with the ceo. and it's really a forecast. i thought the quarter was pretty good. then i'm continuing my series on health care stocks by seeing if pfizer could be poised for a comeback. and later i'm checking in with adobe's ceo and hear where the software stock stands in the competitive digital design space that i think they dominate. after a big earnings beat. so stay with cramer!

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plus, ask how to get up to an $800 prepaid card. call today! did the stock of signet jewelers deserve to lose 15% of its value today? going into the quarter the stock was up more than 80% over the past year thanks to recovery in engagement ring sales which finally started bouncing back from the pandemic. but this morning signet reported 26 cent earnings beat off an 85-cent basis slightly weaker than expected sales but then it gave lag luster guidance for the quarter plus management left its full year forecast unchanged which implies the rest of the

year's not so hot. in response that's why the stock plunged 15%. could it be an overreaction or do we need to get a little more worried than i have been for some time about this stock? let's check in with the ceo of signet jewelers to get a better read on the quarter. welcome back to "mad money." >> hi, jim, thanks for having me. >> it's great you're here. you can shed some light on things. there's kind of like a valley of the shadow of death snapback thing you're predicting this quarter good, then a little dip and don't worry because the second half will be great. i just -- a little more confidence because the last time the stock got hit it just then soared. i'm worning if the same thing can happen again. >> i think the key message on the quarter, jim, is momentum. all of retail saw a sluggish start to the first quarter in february. but we began to rebound. after valentine's day we saw that continue through march and april with an even stronger may. we're still holding our

increased full-year guide. we raised that in april. 9% to 10% on eps. and that guide includes our belief that the business will inflect to positive same-store sales growth in the back half. >> if that happens and you do what you talked about, or your cfo talked about, which is possibly buy in all your preferred, you have a lot of firepower beyond that, this may be a situation where like a week from now you can say look, we're going to do all these different things because we have excess cash and earnings per share may turn out to be light. that could happen. right? your forecast could be lower than what would happen if you bought back the preferred. >> well, we definitely have cash on hand to buy back the preferred. as you know, cash has been a very strong story for signet. our balance sheet is healthy. our working capital is healthy. we've generated free cash flow over $600 million each of the last four years. we've reduced our debt by 70%

versus pre-pandemic. and we have the cash available to be able to take out the preferreds which it's our intention to do before the maturity date. >> all right. good. i don't want to get too stuck in the weeds but i want people to know that this may be a short-term blip down because of the way that you have the financial firepower to take care of things. i do want to get into this notion of the height -- what you actually called the heightened competitive discounting in jewelry. now, when did that start happening? >> well, we've seen independent jewelers be overinventoried. so you know, a lot of the impacts of covid were pretty easy to predict. one that wasn't as obvious was that because of lockdown people would stop dating and so therefore multiyears later, three to four years later we would see a lull in the number of engagements. our data analytics, our consumer insights are proprietary, and we

did predict that. that's why our inventory has been so healthy. but a lot of the industry didn't. so for the last year independent jewelers have been overinventoried and the level of discounting has been significant. now, that said, we have a number of strategies to mitigate that kind of pressure on our business. one is to bring significantly more newness to our business. we've done that in both bridal and in fashion. and i talked on our call today about how we've seen engagement unit trend go up by 400 basis points in the quarter, and we've seen the fashion same-store sales go up. that trend has changed by 500 basis points over the last three months. so we're seeing broad-based momentum in the business based on that strategy of newness. not only that, we also now have a loyalty program so we can target our value propositions to

customers better as opposed to making them broad scale, and our services business is a fantastic offering that's also a high margin business for us. >> how much of your revenues is the extended service plan? >> we don't talk about percentages of the revenue, but what i can tell you is it's a fantastic add-on purchase for people who are buying engagement rings or higher-priced fashion. in fact, 80% of the time that we sell an engagement ring in store someone purchases our extended service plan because it offers a great value to our customers. >> but at the same time if i want to be able to get a lab-created diamond i probably don't necessarily want that service plan. >> well, we're not really seeing consumers distinguish that way. the service plan covers much more than just the diamond. so a tightening of prongs. if you want to, you know, go in and have the diamonds checked to

make sure that they're fighting exactly right. resizing is something that our service plan would take care of. these are things that consumers are interested in whether they buy a natural diamond or a lab-created diamond. >> so a lab-created diamond, let's say it's great, they've grown tremendously. so we all want people to have a chance to have a diamond. these are diamonds. is it good for signet or bad they've now taken 50% of the market? >> i think our diamond strategy has been working very effectively. we saw that work very effectively in the first quarter as well. and that is that lab-created diamonds can offer the opportunity for people with a challenged budget to be able to get a larger or stone with a higher color or clarity. in that case, though, we most often see people trade up. so the average transaction value on a lab-created engagement ring

is higher for us than on a natural diamond engagement ring. but the really interesting story is in fashion jewelry. we said on our call today that our lab-created fashion jewelry was up 14% in the first quarter at an average transaction value more than double the balance of our fashion merchandise. and so that's a significant opportunity for customers to trade up into something with a bit more bling. >> look, i think you're making the best of both worlds. i do think that it was an overreaction today, particularly because you've been such a great steward of the balance sheet, not just the business. i want to thank gina drosos, ceo of signet jewelers for coming on. gina, you always give us a great perspective on everything. thanks for coming on. >> thank you, jim. >> okay. "mad money's" back after the break. >> announcer: coming up, known for major patents, pfizer has rewarded investors for decades. what's in the pipeline for this

housolna? icwi cehd mestk thramer.

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all week i've been recommending my favorite big pharma stocks because this group's exactly what you need if we're headed for an economic slowdown. and with the fed planning to keep rates higher for longer with just one rate cut this year, maybe fewer, who knows, i

think a slowdown seems pretty likely. all the commodity price declines we've been seeing since last night. so far i've given you three high quality drug stocks trading at or near their 52-week highs. astrazeneca. merck. we've had rob davis on. he's fantastic. novartis. interesting story. tonight arguably the most hated stock in big pharma. that's right. i'm going to talkpositively about pfizer. can you believe it? this company was one of our save jorz during the pandemic. they developed one of the two major covid vaccines. along with paxlovid. just those two products have given pfizer $100 billion in sales. they had 42 billion in sales in 2020 which jumped to 81 billion in 2021 before peaking at just over 100 billion in 2022. but then we started getting over the pandemic and pfizer's sales

came right back down. along with its stock price. after falling to $26 thanks fought covid crash in march of 2020 the darn thing charged to an all-time high of $61 and change at the end of 2021. since then pfizer shares -- what can i say? they've collapsed. coming down to $27 and change now after a 44% decline last year. it's basically erased the entire run. so what the heck do he can do with this stock? how did pfizer go from pandemic era darling to seemingly the most hated stock in pharma? we know what the plan was, pfizer was going to put its covid cab to work buying assets that represent the future of the company. and they do need new assets, by the way, because covid sales have evaporated and because the company's got some major patent expirations coming in the not too distant future. that's why it looks like it's cheap but you've got to be careful about these things. from this year, this is pretty amazing. from this year through 2027 pfizer's got six blockbuster drugs, current ones, that are going generic. and you know how much -- they

make almost nothing on a ge generic. that includes eloquis the blood thinner. it loses patent protection in 2026. their best-selling cancer drug, brought in 4.75 billion last year. loses palt nent 2027. specialty care drug comes off patent in a little over six months. pfizer's got to work, announcing six small to medium size takeovers in 2021 and 22. in 2021 they acquired amplex pharmaceuticals with an early stage anti-fungal drug for an undisclosed sum. then over 2 billion to buy chilean therapistics, a critical stage oncology program for blood cancers. in 2022 four deals. sthapd up arena pharmaceuticals. that's a clinical stage company developing treatments for immune initial inflammatory diseases. then reviral. then they brought global blood therapeutics. a specialist in rare blood

disorders including sickle cell disease. for 5.4 billion. and pfizer also directly purchased a couple of drugs including biohaven pharma's migraine treatment known at nurtec odt which cost them 11.6 billion in a unique deal that let biohaven's management team keep the rest of its pipeline as a newly spun out business that's called biohaven limited. that trades independently. final lei last year pfizer did its biggest deal yet, shelled out 41 billion in cash for seagen which already had four cancer treatments on the market at the time of the zeal. i always really liked that company, spoke to them many times. they just completed the seagen transaction in december. so what went wrong? first pfizer's covid sales tapered off much more quickly than anyone expected. this started to become apparent in late 2022 when people would have been getting their covid shots in the fall except not that many people showed up. pfizer covid-related products ended up a disappointing quarter after quarter. it's just been wrong. management projected -- this is what's really bad. they originally projected 21.5

billion in koifd product sales in 2023. the actual number turned out to be just 12.5 billion. man, was that awful. the worst part, this was death by a thousand cuts. with each successive shortfall doing more damage to the stock along the way. other than the collapse of the covid business pfizer's been hit with a series of disappointments from both its own drugs and the ones it's acquired in recent years. for example, i've been following this nurtec odt for ages because i get migraine and i am the spokesperson for the american migraine foundation. i think it is a miracle drug. popped one the other day when i thought it was going to rain. no pain five minutes later. so i was shocked by the slow ramp after pfizer acquired it in late 2022. even as a small independent company biohaven achieved xlebt growth from nurtec odt. i think it can supercharge its growth. didn't really happen. but the company's finally given the drug marketing it deserves and i think those numbers are going to go up big. now, i don't know how big nurtec can be but i think it can help

bridge the patent cliff for certain and i don't think that's in the stock. some of the other takeovers have also been slow to produce results, though, which became more of a problem as pfizer's covid products dwindled. as for the homegrown stuff pfizer failed to advance its glp-1 weight loss drug candidate from phase 2 to phase 3 trials because of gastrointestinal side effects. oh, and just last night pfizer's gene therapy for deshay muscular dystrophy, dmd, failed to hit the primary end point of its phase 3 trial. again, disappointing. so why the heck then would i recommend pfizer on this show as one of my best ideas in pharma? a couple reasons. needless to say it's a very contrary view. but first the business filing does need to be stabilized. as covid sales have gotten low enough that they reflect reality. meaning no more constant disappointments. when pfizer reported its latest quoert on day one it was actually strong with a sizable revenue beat and a huge 30-cent earnings beat off a 52-cent basis. management also raised their full-year earnings forecast because they've gotten very

aggressive about cutting costs. just three days ago pfizer's ceo albert bourla said he's, quote, very confident end quote pfizer will make its full-year forecast. second big reason i like pfizer they just picked up seagen's excellent cancer franchise. yes, pfizer paid a lot for it but i think the price was worth it. frankly i'm surprised biden's antitrust regulators let this deal happen. but they did. and now pfizer could profit from the incredibly profitable oncology business. third and most importantly i think the bad news of pfizer is baked into the stock at last now that it's trading 27 down 55 from its peak in 2021. at these levels it sells 12 times the forward earnings space. and remember the estimates take into account you will at the patent expirations. 6.1% dividend yield covered by the cash. honestly it's absurd this stock would go this low with such a safe dividend. what makes me so confident the down side is pretty limited? look what happened today. remember, pfizer issued another

disappointing clinical trial result last night. as a result it seemed natural the stock opened down 1.7%, at its lowest this morning exactly what you'd expect, right? but then it turned around and finished the day off just a penny. doesn't that feel like a bad news bottom to you? so here's the bottom line. pfizer is not one of the best operators in pharma but it's definitely among the best opportunities. two different things but they can both pay off the company's coming off a tough xum years but now with the stock barely above its march 2020 lows i think pfizer's too good to ignore especially as can't gets its house in order and we start seeing the benefits of the tremendous seagen acquisition. let's take calls. let's go to dexter in california. dexter. >> reporter: jimbo, how are you, sir? >> i am doing well. how are you, dexter, what's going on in. >> caller: i was in south america visiting my boy in brazil and argentina but i'm happy to be back. i missed you. >> i'm sorry. you can't get me down there. that's just -- you can get the eagles when they open the

season. all right. >> caller: you sure can. but when you turn on the tv you just don't get "mad money." so i missed you, man. i have questions. listen, i'm calling about a stock you introduced to me on the show probably a few months back. they're a pharmaceutical delivery company. they've since broadened their products to include compound glp-1 injections which are cheaper than lilly's and novo's if you can get those versions. the stock's moved nicely, though. looks like it wants to keep moving. what's your opinion on him and hers health scarehealthcare? >> that thing is a rocket ship. i think the last ten points might have been a short squeeze. i donate know when a short squeeze is going to end. which is a problem. i don't think it's necessarily trading on the fundamentals right now. it's a very expensive stock on the fundamentals. but if the short squeeze is maintained this stock goes still higher. but i can't give you -- first of all, welcome back to the country. i can't give you a definitive look about what to do because i think it's the short that's controlling the stock, not the fundamentals. but thank you for mentioning, we

did talk about the stock when it was lower. anyway, pfizer isn't like our top ideas. it's not like the other guys. it's not astrazeneca. it's not merck. it's not novartis. but you know what? the stock is priced too low for what pfizer really is and therefore i think the stock represents a good opportunity at these levels. much more "mad money." i'm talking ai enhancements -- advancements and more with adobe. holy cow. top brass write off their earnings report which is pretty good. and then an iea report yesterday warned of end of decade oil excess. where do i stand on the future of energy? i'm drilling down on the news and giving you my take. and of course all your calls in tonight's edition of the "lightning round." so stay with cramer. ♪♪ ♪♪

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did the market get too negative on the stock of adobe the digital media marketing software kingpin? people have been questioning the value of traditional enterprise software in a world where it's very easy to ask computers to do things you thought you needed expensive software for. that's in part why adobe's stock had tumbled from 638 to down to 4589 at the close tonight. however, what we got tonight from adobe was i asharply better than expected quarter and a fantastic forecast. the stock's flying in after hours trading. what comes next? let's take a closer shan'tar yue narayen. this was a remarkable quarter. a great forecast. i just want to ask you how do you think the market so misjudged adobe the company and all the amazing features that you get when you take your product? >> well, i think, jim, there's

been so much focus around ai and infrastructure and chips. and rightly i would say. people have been seeing a lot of spend in that particular category. but at the end of the day at adobe we're completely convinced that it's the interfaces rather than the models where the real value is for customers. that's where they're going to be performing their tasks. that's where they better their work flows. and if you want to do creativity or if you want to do marketing that's where adobe comes in. we've always said we've embraced ai, we think it expands our market opportunity. and i think there's been more questions around, you know, does ai replace these folks. and i've always maintained it's actually people who use ai who may replace people who don't use ai and there's no replacement for human ingenuity. this is playing out as expected for us, jim. >> yes. and this is really the most important point. it was right up at the top of your statement when you said

adobe's highly differentiated approach to ai is rooted in the belief that creativity is a uniquely human trait and that ai has the power to assist and amplify human ingenuity but it's a human trait. and people don't seem to understand that. >> well, jim, you know, it's our job at adobe to continue to show how our products can be made more accessible, how people can be more productive when they have this incredible creative idea that they want to communicate across any campaign or media tape that you know through products like photoshop or adobe express or with our models like firefly where we saw over 9 billion generations to date. that that's really the magic of taking what's in somebody's head and making it available as a campaign, as a flyer, as a video. again, we don't worry about the short term and how the market might view it because we raelds that anytime that you can get more people into the platform,

fliem th anytime that you can deliver and delight your customers good things will happen. >> there's been an existential threat from an outfit called can va which has a good product no doubt about it. but i was tinkering with adobe express. you pushed some good stuff last night. it was fabulous. you offer a much better free alternative than the paid alternative of canva. that's what the new stuff is offering. so we don't understand the dilemma. i think the pickup of express is extraordinary in the short time it's been out. >> well, i think with adobe express and the adobe express business you're talking about, these were big milestones for us. we completely redeveloped express, both across mkcross mo across the web. and the products are incredible because we believe it's a leapfrog in terms of how they actually use ai to be able to accomplish your task. you know, for a long time we were a product company, we were focused on the product, and now we're going to pour gas on the go to market and how we getmore awareness of the product, how we

get it out in the hands of more people, how we continue to leverage the incredible insight sales that we have, the enterprise, you know, certain traction that we have to make sure that people are hearing a lot more about express. so i think the product is phenomenal, jim, and now it's all about the go to market. >> how about the existential hit that you got when sora came out? we looked at that. absolutely. it's great. but it's basically a product that is fun. it's a fun thing to fool around with. but you're the gold standard. when we looked at sora all we could say is if you don't want to fool around with creativity, if you want to outsource creativity, maybe you give this a try. but if you want to be creative, which is what i think you and i know is the essence of adobe, there really is -- there's no comparison. >> if you take a step back, jim, and think about what these models are able to do, the models are able to absolutely accelerate ideation, which is you're just starting off, you

want a little bit of video to jumpstart the process. all that that means is all of these models, and they're all going to be personalized in different ways, you know, our image model might be different from sora's in terms of the personality that they have. but it's zbgoing to create more content and all of that content will have to be edited. and that's the belief that we have. we invented and we created firefly because it was really important for adobe to understand how these models work, how hallucinations work, how we could do it in an ethical way, how we could do it in a responsible way. but we've also said and we've actually demonstrated at n.a.b., where on the video side whether it's sora, whether it's other models like runway ml or pica, the power will really be in enabling all of those within our editing applications and he this may have different applicability for different use cases. but if you want to do that color correction, if you want to transition the video the way you want to, you still need an

editing application in order to be able to do that. so i think while the attention has been on this model creation the value will eventually accrue to the interfaces and what people use to accomplish their task. >> and i think to go a step further i know there are people who will listen to you and say but wait a second, there are these cheaper alternatives. but if you go to any school in the country nothing has changed. every major design school in this country did not flinch. they're all adobe. i feel the newer things you're going to bring on will make it so people who aren't in design schools will go to adobe and not others because they are very accessible. so you've decided i think to make a free part of adobe for people who don't really know how to use even computers. >> well, i have -- and the company has always had a passion for education and the education segment, jim. i used to say growing up that reading, writing and arithmetic were the three skills. you have to add creativity to that particular skill. so ensuring that adobe is

focused whether it's a k through 12 student or whether it's the best design school in the world. and making sure that we work with them, we get their feedback, we understand what's on the minds of that next generation creative is really important to us. so we're thrilled with the engagement and the partnership that we have with those schools. but it truly is a passion for us at adobe to make sure that the education segment in particular is both embracing and partnering with us for us to be able to deliver the most innovative products. >> i've got to tell you this is a remarkable quarter. obviously things are just getting stronger as the quarter went on. i really want to thank you for coming back on "mad money." i you this was going to be a big quarter. a job well done, sir. fantastic work. >> thank you, jim. and thank you again for having me on your show. >> of course. shantanu narayen chairman and ceo of adobe. even up 75 believe me you're in good shape with this one. "mad money's" back after the break. >> announcer: coming up, pop open those umbrellas and tee up

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it is time! it's time for the "lightning round" on cramer's "mad money." buy buy buy sell sell sell -- play until this sound. and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round" on cramer's "mad money." start with penny in california. penny. >> caller: jim cramer, thank you for the knowledge and the encouragement you provide. >> well, just out there trying.

thank you. i'm sorry? >> caller: i want to know if novacare, nvcr, is a buy, sell or hold. >> i featured them many times, and i've got to tell you i was hoping they would start making money. and they don't make money. and at a certain point i made a decision on this show that i was not going to recommend stocks that lose hideous amounts of money. and i am not changing my mind. not going back on that. let's go to kevin in arizona. kevin. >> caller: 110 degree arizona boo-yah, jim. >> boo-yah back at you. what's going on? >> caller: about three years ago i picked up some paypal. now my largest holding by far. 22% down. but i have confidence in chris and his team while doing my homework. should i hold it until it gets to my cost basis of 80 or sell early? >> do you know i was going to sate same thing. since alex chris has come in i've gotten renewed faith in paypal. i know there's a lot of competition. but this man, this gentleman seems like he's really knowing what he's doing. i would hold on to p but i wouldn't buy more until i see

better numbers. let's go to alex in new york. alex. >> caller: boo-yah, jim. >> boo-yah. >> caller: since nvidia's blackwell requires 100%, wouldn't hpe be a winner given their liquid cooling advantage? >> 100%. until i saw this quarter i didn't know how well they're doing. i think it is just a terrific situation. i know i was going back and forth with my friend herb greenberg who'sgot this wall street beat, this kind of cool thing he does. he used to work with me at the street. and they have a lot of positive commentary about hewlett-packard enterprise. i think it goes higher even though it's at a 52-week high. let's go to max in new york. max. >> caller: boo-yah, jim. >> boo-yah. >> caller: i called you on may 6th about aerovironment. ava. wanted to know if i should continue holding it. i know they're going into earnings at the end of the month. >> it's had a very big month. we do know that president biden was over in europe and they're talking about -- obviously there's a new deal.

aerovironment's going to get more money i believe. it's an expensive stock but i would hold on to it. and that, ladies and gentlemen, is the con cloourgs of the "lightning round"! >> announcer: coming up, what will elon musk's pay package mean for tesla's ability to compete? start your engines with "mad money," next. trading at schwab is now powered by ameritrade, unlocking the power of thinkorswim, the award-winning trading platforms. bring your trades into focus on thinkorswim desktop

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will there really be a staggering surplus of oil by the end of the decade in this world as the international energy agency said yesterday? this organization does pretty rigorous work and they say we'll have 8 million barrels a day of spare capacity because reduced demand as the world goes electric the middle east switches to renewables and the chinese economy's slowing down. if you read this report you'd think the world's gotten religion on global warming that the entire globe's turned against fossil fuels and there's nothing oil companies can do about it. to me this is pure wishful thinking. we aren't selling nearly as many ev cars as we were not long ago and the market's not growing as much as expected. hybrids are in vogue in this nation now, not pure electrics. we know the two candidates for the president have very different attitudes toward fossil fuels. so i think this iea forecast, it may not be accounting for the white house possibly changing hands. if we allowed chinese cars into this country without tariffs instead of the 100% tariff we're putting on them electric vehicles would be much, much bigger here. but that could be a huge threat

to the american auto business. they would take over europe too if it weren't for the eu's 38% tariff they just slapped on most chinese cars. the average price of a chinese electric vehicle's about 10 grand. my wife just got back from italy where she drove in a $10,000 sedan from china and thought it was every bit as good as a tesla. you might say, well, at $20,000 with a 100% tariff it may still be worth it and it would be the standard bearer here. but if that starts happening i think our government would just raise the tariff again. our government wants to protect the american auto industry. it's not like tesla can bring down the price of its sedan to match even the tariff price of chinese electrics, no matter what happens with musk's contract or what he can do. he just can't. and while i'm consistently bullish on the future of the i will industry and i remain that way i think it's possible we reach peak output here, we're beginning to run out of new sites to drill even in the oil-rich permian basin. now, on a day where we saw the producer price index come down i will say this. if the iea is right about oil we could have dramatically lower

inflation. >> buy buy buy! >> we already know oil would be cheaper if not for the war in the middle east and war in the ukraine. crude's now at nearly $78. if the world were at peace i think you could easily imagine it in the low 70s or even the high 60s. second opec plus only controls about 48% of the market these days. if demand shrinks the way the iea's projecting opec would be powerless and the price of crude could be just down dramatically. but i don't see that happening. the supply situation may still be perilous and amazingly the discipline of the u.s. drillers is just plain shocking. when oil shot up is this year u.s. producers did not ramp up production. they kept it steady. there was a time when they'd be mumping like mad to get these new prices. so we can hope there will be an oil glut, which would be fabulous for inflation. but as i see it the iea report is merely wishful thinking. there's just tomb too much resistance to free trade with china to make it so its electric vehicles are cheap enough to be widely popular in the developed world. even as china will be using much less carbon itself.

if we take china's cars in at the chinese government's subsidized price i have no doubt the iea report will be correct. but the only thing trump and bide aern gree on is the need to stay tough on china. so my bottom line i say don't hold your breath. i like to say there's always a bull market somewhere and i promise to try to find it just for you right here on right here on mad money, i am jim cramer, see you tomorrow."last call" starts now. we start with breaking news. good afternoon, i am brian sullivan. tesla's annual shareholder meeting has just wrapped up and the votes are in. and now we know that we can say this, elon musk can afford to feed his family. tesla shareholders have approved the multibillion- dollar pay package, about $45 billion, and that is not all, they have said bye-bye, delaware. they are incorporating in texas. that news is not helping or hurting