Skip to main content

tv   Mad Money  CNBC  July 31, 2024 6:00pm-7:00pm EDT

6:00 pm
that's great. >> i mean, that's energy. that's the energy that we bring here every night on cnbc's "fast money." >> that's right. >> barrick gold is doing some things here. >> thank you so much for watching "fast money." don't go anywhere. "mad money" with jim cramer starts right now. my mission is simple. to make you money. i am here to level the playing field for all investors. there is 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. how you doing, my friends? i am just trying to make a little money, my job.so call me at 1-800-743-cnbc or tweet me @jimcramer. when i was growing up and i would laugh, we always heard
6:01 pm
wimpy, the cartoon associated with that bold cartoon character tuesday for a hamburger today. how desperate was wimpy that he did not have the money for a hamburger. now, all of a sudden, we have millions of wimpys in our country . we spoke to fed chair jerome powell about how he need to cut rates. he threw gasoline. the s&p jumping 1.98% but the nasdaq 2.64%. on the way to rate cutting, this is the quarter where we discovered that we have a lot of people who do not have the money for a hamburger in this country. it is a quarter where we learned that too many things are way too expensive. and interest rate costs, they are too onerous. you see, the fed knows that although job growth is moderate, inflation still has not been tamed.
6:02 pm
but powell has to pivot. he cannot allow consumers to be priced out of places like mcdonald's. yes. you heard me right. mcdonald's. whether we are talking mortgages, credit card payments, can powell make them at least go back down if he cannot control the rate of hamburgers? if it is already this hard for wimpy to afford a burger, imagine what happens when unemployment really starts picking up. and the market cannot wait for those rate cuts. it is always moving ahead of them, specifically in the beaten-down tech sector. consumers are hurting far more than we might have expected, even a few months ago. right at about this time every quarter. i like to look for themes. so far, i have seen one overriding theme that details. it is how the consumers become tightfisted, frugal, and mistrustful of most companies that have rice prices. most companies have riced prices too far.
6:03 pm
you rollback your earning prices in your forecast. but this is the quarter were companies cannot afford to not rollback prices. money managers know which companies have raised prices too much. they are not waiting for companies to lower prices. they had taken down the stocks in advance to wake up to consumers' new attitude. if you listen in on the mcdonald's conference call from earlier on, you can tell what is going on in america. quote, our restaurants in upstate america have been running a local five dollar meal deal that was highly successful. performing well with lower income customers and driving sales. from within our system, we brought this to light for customers across the u.s. we have seen a lot of enthusiasm and the number of five dollar meal deals sold are above expectations. they are highest among lower income consumers and sediment towards the brand around value
6:04 pm
and affordability has begun to shift positively. consider wimpy appeased. but also consider this as something you may see it as happening. mcdonald's was a go to place for cheap food for decades. rather than being a value stable for those who cannot afford to eat out elsewhere, mickey d's has incredibly now become part of what the wall street elite call the discretionary category. something that is discretionary. something that is no longer essential. the fact that this happened, that mcdonald's food got so expensive, it was not something anyone expensive. 29% of consumer discretionary companies have missed their quarter so far this earnings season. according to robert hum, that is almost double the 16% average missed from previous quarters. that is incredible to me. kudos for mcdonald's to recognizing they had to come up with a cheaper alternative for
6:05 pm
wimpy to afford. it is now beginning to dawn on other players that they may have a wimpy problem. a terrific premium tequila brand. this brand has what they called extraordinary growth, but, now, get this. in the last fiscal year casa amigos saw it climb by 22%. that is breathtaking. a terrific place to find prices for liquor is now featuring a one liter bottle for $33.56. cut in half in the previous site price of $66.30. by and get one! welcome to the wimpy world! no wonder one of the greatest bargains these days is made with lunazal tequila, which is cheaper. you can trade down from casa amigos with no consequences, and america is doing that. of course, some are fighting this. starbucks reported last night and had a better story.
6:06 pm
it is giving you a good pairing menu with lower prices than you are used to. but nonmembers, i don't know, the numbers are week. i think wimpy is not impressed. you may want to become a rewards member. and without a cheap cup of joe, i do not think it is going to happen. this story is getting pervasive. regular viewers know i have been a great champion of the stock of chipotle, and i love the food. the stocks have been flying in part because we finally found a price people will pay for the great meals. the incredible cfo talked about how the company raised prices in california by 100 base points. quote, we normally do not see much resistance. we so resistant to the point where we did not get the 100 basis points at all. and otherwise, it did not work. chipotle, meat wimpy. now, i know there are plenty of enterprises that are doing quite well. nvidia. amd. met up. buyers are
6:07 pm
getting ahead of them. the homeowners. the mortgage rates could limit. why is powell waiting to cut rates? why not today? people are not doing well enough to afford to buy them and interest rate charges are too high . the sellers are not all willing are smart enough to come down in price. sure. mcdonald's realizes it. and there will be other companies following in their footsteps in the next few weeks but the bottom line is the economy is getting worse, not better. if you are selling things that people can live without they will gladly not pay you tuesday because they cannot afford the hamburger today or next week, either. let us take calls. dan? >> boo yah, jim. greetings from the pacific northwest where it is always green and most often raining. >> that is true. okay. what is up? >> i took a pretty good position in a stock that has steadily gone up. it pays a dividend.
6:08 pm
and with the infrastructure money coming in now and in the future, i am wondering if it would be better to hold the stock or to looks for something in a different sector that could perform better and that stock is caterpillar. >> okay. caterpillar is an amazing company. it was really great. we probably left the stock too soon. i do believe -- i do not want to play russian roulette with the quarter but it is still an inexpensive stock. i do believe you have a winter. take off a little and let the rest run. >> hey, jim. how are you doing? i have been listening to you since the radio days. >> that was a long time ago. real money on the radio. >> my 19-year-old son has a small clothing company. he uses shop a five. they are coming out with earnings on the seventh of august. what you think about that spot? >> i think your kid has got
6:09 pm
horse sense. i think it is a really, really good position to be able to take, let us say, to be able to take advantage of what i think was some price decline that they put in that are now starting to do much, much better for the company. they did not want to, but they had to. on "mad money" tonight, do rates and raises go together? it is finally time for you to return to the office. and do not touch the dial. i will run down the media stocks in an already heated election season. and ul solutions has been around since the advent of electricity. i have a post earnings exclusive with what turned out to be an incredibly hot stock, so stay with cramer.
6:10 pm
6:11 pm
6:12 pm
when we're young, we're told anything is possible... ...but only a few of us go out and prove it. witness the greatness of anna hall on a connection worthy of gold: xfinity mobile. only xfinity gives you the most powerful mobile wifi network, with speeds up to a gig in millions of locations.
6:13 pm
and right now, xfinity internet customers can buy one unlimited line and get one free for a year. get the fastest connection to paris with xfinity. three weeks ago, we got a cold june consumer price index report, and the whole market turned upside down because the fed can now start cutting rates, probably in september based on what we heard today from j. powell. probably some of the biggest losers in the market became some of the biggest winners. they will benefit from rates. take one of the lower one's. reits. earlier this year, it was one of the worst groups in the entire market. they needed less office space.
6:14 pm
so in the fed's rapid rate hike on top of higher demand and this whole business model seem to be following apart. these stocks eventually bottomed in the spring of last year. they have been working their way up ever since. they felt like riley because the office simply had gotten too low. the big rally over the past few weeks though is different because it is based on the presumption that office real estate is about to get a whole lot better. something that very few people think. we have heard from some of the officers this earnings season. i want to walk you through what is happening because i think it is very different from want you are hearing and reading about. i will start with the largest office landlord in manhattan, with a stock up more than 16% since we got that call cpi reading on july 11th. big move. a week later, a surprisingly
6:15 pm
impressive quarter. that is profitability for the region. $2.05 per share. also, $1.59. you see? that is the kind of comparison that people jump on. at the same time, sl green raised its forecast. the new skyscraper right next to grand central station in midtown manhattan that i am embarrassed to admit i have not gone to yet. a lot came from midtown this time, and midtown had been a wasteland. those who wrote off new york city were wrong. he laughed about the idea that the financial cycle was something he cannot do for south florida, noting growth in south florida does not make contraction here in new york and pointed to companies like blackstone, wells fargo, bloomberg, and j.p. morgan, which are all expanding their footprint in new york. in particular, park avenue and the entire eastside are quite strong at this point. whether small deals are small
6:16 pm
and medium-sized once. overall, sl green said it signed 38 manhattan office leases. bringing a total up to 98 manhattan office leases to the first half of the year. as of july 17th, that number had already risen to 100 five leases with the rent center 12.8% higher than hat they were getting previously. where is this crash of office real estate? meanwhile, they are all getting occupancy. it ticked up to 90% and they expect to reach 91.5% by the end of the year. clearly sl green is not just surviving. it is thriving. the stock fell but i am not right about that. sl green bounce back and it is selling for less than nine times the midpoint of the funds from the operation forecast. you have a 4.5% dividend yield. so potentially better than what you get from the office of the
6:17 pm
treasury at this moment. here's another interesting when i am following. bxp. this is more geographically diversified. their places in boston, new york, washington, d.c., and san francisco. the stocks rallied 15% since the quarter earlier this month. this is where all the action is. and bxp backed up that move when it reported some solid numbers just last night. not as impressive as what we get from sl green. more importantly, this company had to cut its four year funds from operations guidance because the fed was not cutting interest rates as quickly as they expected. this time though bxp raises funds which is now higher at the midpoint in the original forecast released in january. why? okay. the portfolio is doing better and they seep non-cash interest expense, which is really great to hear. however, bxp also mentioned anything from, and i'm going to
6:18 pm
quote, higher termination income. that is what they have to pay when they decided to break the lease. positive momentum with new leases versus the past quarters. while their total rate fell, they are more focused on properties in central business districts because that is where 80% of their rent comes from. they have a 90.4% occupancy rate. that is great. that is what were talking about in sl green in midtown manhattan. the strength this quarter came mostly from boston and north virginia , although manhattan was solid, too. the west coast markets are liking. what bxp really needs is a broad recovery for tech and life sciences, which would let their tech bounce back. there are some startups but not much else in life sciences, not yet. but if you get a better ipo market, you will see good numbers. now, bxp stock fell almost 2% today. but i am not going to sweat . that is often a pattern when
6:19 pm
the stock has moved up too much and a quarter. it's funds from operations guidance on the stocks have a really generous 5.5% yield. once again, you are getting paid very well to wait for the turn. we will wait for the next big office one, vornado, next friday. i am now talking about cbre. can i delivered a big sales and earnings beat that sent the stock into overdrive. and cbre is doing much better. guess what? that has very good things about the entire commercial real estate space. here is the bottom line. after years of hearing about office space unexpectedly, the stocks are doing just fine, and the stocks are now starting to truly be roaring. now, we are seeing strong leasing activity that can justify these moves. i met sl green and bxp will
6:20 pm
keep running. >> coming up, it is "mad money," not mad politics. buck of the upcoming presidential election make legacy media stocks great again? icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot.
6:21 pm
so this is pickleball? it's basically tennis for babies, but for adults. it should be called wiffle tennis. pickle! yeah, aw! whoo! ♪♪ these guys are intense. we got nothing to worry about. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? got him. good game. thanks for coming to our clinic, first one's free. what is cirkul? cirkul is
6:22 pm
the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.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.
6:23 pm
as much as i hate politics
6:24 pm
we have got to talk about the election. not who wins or loses but the actual impact of the race on the stock market because there is money that could be made. member, a few weeks ago it felt like the election was over and it was a shoe and after president biden's sub optimal performance. then there was the assassination attempt on john. but then biden jumped out of the race and harris became the de facto nominee and when you look at the polling we have a close race. what matters is the expectations. because wall street is a expectations machine. in the days after the assassination attempt on trump and during the republican national convention, bettors were giving trumpet crayons as high as 89%. harris entering the race has changed everything. it is essentially a dead heat. so what does a close presidential rates mean for the stock market? i think there is a big opportunity to make money in
6:25 pm
shares of select immediate wants. americans follow the race and both candidates spend fortunes on advertising. take fox quarter, the parent company of fox news. back in april, i put fox corp. at that top. the stock is at 22%. since then, and since performing the other major media names, there is no major reason to overthink this one, people. in this new challenging cable media landscape were cutting is still a big problem, things need to be watched live. mostly that means sports but lucky for me it is also news. fox corp. has a strong position in both an nfl season is just around the quarter and i bet fox news will bring plenty of viewers and with the three months leading up to the election, especially if the results are contested like last time.
6:26 pm
keep in mind, it is the second quarter and my goal is mainly with the second half of the year. next up, the new york times company. i would feel better about this one if trump wins even though the times dislike trump, some people say, and trump dislikes them back, everyone says. it does better when your core leaders hate the president of the united states. this stock did nothing in the final years of the obama administration. it actually fell 16% at the end of 2013 through 2016 and then it soared during the trump year until biden's inauguration january of 2021. they rally 338%, more than quadrupling what you would have made with the s&p 500 drying that period. but since biden took cover, it is only up 9%. do not take your eyes away from
6:27 pm
washington. one trump was in power, he was a great driver of subscriptions for the new york times. it increased at a 42% annual compound growth rate. in the first three years of the biden administration, it is a 11% growth rate. much is coming from people lord and by new york times' games like word oh . i do not bother my wife when she is playing wordle. more news would certainly be a positive for the business, and i and sing a close election helps. finally, there is one media stock i am really excited about. i see it as a close, really big winner from a close election, and that is a company called nexstar media group. i have mentioned it a couple times already. you probably have not heard of
6:28 pm
it. it is the largest local broadcast company in the country. 220 million people for heavens sake. they also on the cw plus news station. and local tv station websites to the hill and newsstationnow.com. what is so great about local news? look, as we get into the heart of election season, both major party presidential campaigns, all the down ballot candidates, and all the supersized political action committees will be flooding the airwaves with political ads. what a great way to target that spending. just yesterday, the harris campaign announced a 50 million ad by, and these are ad dollars going to a lot of different destinations. a substantial part, a big portion, will go to local media like nexstar. and nexstar is a small enough company that this influx of ad
6:29 pm
dollars is enough to move the needle. especially in the big battleground states that both campaigns are fighting to pour money into. nexstar is more of a trade than an investment. the stock has been solid. 300% since the past decade. i am only interested in this one during the campaign spending thesis. because in old-school tv will come right back into play. look at this one. wall street expects nexstar to deliver $5.5 billion this year. but the analysts see that going to $5.12 billion next year and then 16.1 in earnings. as the company could still surprise the upside for the next couple of quarters and strength are much higher than they expected with political ad spending now that we have a genuine race on our hands. as much as i do loathe talking politics on the show, i think the suddenly close election gives you an opportunity to try
6:30 pm
to jump in on those media stocks. like fox corp. or the new york times and nexstar. the lateral only works as a trade. not as an investment but it should be a darn good trade. jason in florida. jason? >> hey, jim. a whole lot of respect down here in naples, florida. >> i appreciate that. how can i help you? >> what can we expect from netflix this quarter? >> all right. this is a tough one, jason. i will tell you why. i thought netflix had a great quarter. i write down what shows they recommend. always some good ideas. but i will tell you that the market did not like it. i thought it was a terrific quarter and i would stick with it but the market did not like it. it was very confusing to me. i like that company very much. let us go to philip in north
6:31 pm
carolina. philip? >> hi, jim. how are you doing today? >> how are you? >> i am doing okay. kind of meddling. >> it is up here, too. >> i was just watching the yankees and the phillies for the last three days. >> okay. so what is your stock? because i am going to tell you i don't really like it. >> okay. what is going on as far as the stock and -- >> i will tell you the truth even though i stayed up late to watch the extra innings fiasco, that one is done. you have got to sell that one. there was some bogus rumor today that something happened. you made all the money you are going to make in p.a.r. so take the money and run. anyways, i think the election season gives you the
6:32 pm
opportunity to try to cash in on some media stocks. and ul solutions. this safety sciences company, it is a reason i love the stock market, it just beat out at second quarter. it should be certified for your portfolio. this is the kind of stock. a lot of people do not know this company and they ought to. and what is benefiting from the a.i. boom? i don't know. i will give you my companies that get business from a.i. a lot of the abbreviations are coming up. and then rapidfire lightning round. stay with cramer. frustrated by skin tags? dr. scholl's has the breakthrough you've been waiting for. now there's an easier-to-use at home skin tag remover, clinically proven to remove skin tags
6:33 pm
safely in as little as one treatment. (reporters) over here. kev! kev! (reporter 1) any response to the trade rumors, we keep hearing about? (kev) we talkin' about moving? not the trade, not the trade, we talking about movin'. no thank you. (reporter 2) you could use opendoor. sell your house directly to them, it's easy. (kev) ... i guess we're movin'.
6:34 pm
i'm andrea, and this is why i switched to shopify. it gave me so much peace of mind. if we make a change, my site's not going to go down. and just knowing that i have a platform that we can rely on, that is gold to us. start your free trial today. 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? it can. on the servicenow platform, ai transforms your entire business. because when your people work better, everything works better. so, let's get to work. idris elba works here? mm-hmm. ya, he's super nice. (vo) meet fargo, the new virtual assistant from wells fargo. fargo makes banking faster, and easier. idris elba works here? (woman) fargo, turn off my debit card! (vo) lets you pick up the tab, even if you forget your wallet...
6:35 pm
(kaz) i got this. (ben) fargo, send kaz $145 dollars with zelle®. (kaz) smooth. (vo) fargo puts important information at your fingertips. (dad) fargo, what did i spend on groceries this month? (son) hey dad, can the guys stay for dinner? (dad) no... (vo) want to see everything fargo can do? you can, with wells fargo.
6:36 pm
we are seeing some real winners from the ipo class of 2024. take when you would like. ul solutions, a global leader in safety sciences. the numbers were great. we are talking a big top and bottom line. all three other divisions. that is why the stock jumped roughly 10% today and at this point it is up more than 80% since it became public. so is it too late to get in on this rocketship? let us take a closer look. we will learn more about the quarter. welcome back to mad money. >> thanks, jim. it is great to see you today. >> you put up some amazing numbers and you have some categories that really did shine. they are kind of part of the megatrends we are seeing. i would like you to tell me what is going on in batteries. that seems like something they
6:37 pm
are talking about on wall street and you are involved globally in the battery issue. >> we are absolutely involved globally on the battery opportunities, and they are of course in the mobility space with electric vehicles, but they are much broader than that when you think about the industrial scale batteries that are needed to supplement all of the energy, you know, generation, transmission, and use. we are excited. i have announced the opening of our new north american battery lab in michigan in august. i'll be the first to tell you, jim, it is wednesday and we would love to have you come out. >> that level of flexibility. my life would be a lot better than it is. but tell us about it. what will we see if we go there? >> you practically have to build a bunker to test batteries. it takes a lot of concrete. to test products for safety, you have to do inherently
6:38 pm
unsafe things. so, in addition to battery performance, there is a whole host of battery safety testing that we are doing in auburn hills that we have been doing in china and korea, and we continue to do all over the world. >> so people probably ask you when they are listening, who pays? does tesla pay? does gm pay? how about some of the korean car companies? how does this process work? >> so the way it works is this. we are involved in the early stages of innovation and r&d. but as products are going to the new product in a moment cycle, those manufacturers, those that you named, they all need to know that their products are going to pass the regulations and standards in markets all over the world. so we work with them to help them understand what is that level of certification that they need.
6:39 pm
what type of tests come together. and then we put together a pricing package and perform that testing as part of their new development process. >> so not all batteries are created equal? some are better than others? >> not all batteries are created equal, and not all consumers understand the inherent danger of lithium ion batteries, particularly if they have not been certified. and we saw his in the new york market earlier this year. when the city of new york passed a law that said any type of consumer imo ability product, you know, bikes, scooters, have to be certified to be leased, sold, or used in the city of new york, and that type of legislation is happening all over the country because people have died from counterfeit batteries, overcharging, swapping out batteries that have been compromised. not all batteries are created
6:40 pm
equal. and the newer ones that have just greater performance can also have greater safety challenges. >> i wanted to get to hvac, but i am intrigued by this. in other words, you can have a battery in a car that the government allows but you are the only one on the fence because the government is not as focused? >> well, no. it is not quite that simple. but the way it works is you could have a standard that the legitimate manufacturers around the world will adhere to, but there is a world of potential counterfeiting or a problem of someone breaching. you know? let us say the enclosure that battery or charging it with a noncertified charger, and our parent company, ul standards and engagement, has written standards for the safe use of lithium ion batteries. and we test to that safe use.
6:41 pm
so we are not performing a government function, per se, but a safety function on behalf of manufacturers and consumers. >> and hvac. a big area. these are companies that are very much involved with the environment and they're trying to clean their products up so they do not impact the environment. what angles are you testing for? >> well, the big concern there is that there are a number of new colons that are much more sustainable and much better for the environment but they are much more flammable. so you have to think differently about the signs and the ways that those customers that you mentioned engineer their products and the way those products are manufactured and used by consumers. so we has seen a big uptick in what is known as gwp. we are excited about the use of those products safely in the hvac industry. >> i have to tell you, i find
6:42 pm
your industry fascinating. people do not even realize that ion may be more dangerous in the second thing is what the hvac companies are doing and whether they are dangerous, we do not think of it like that. we just think of earnings-per- share. i want to congratulate you on really some incredible numbers, and what to me seems like an annuity stream. you have some long-term customers. don't you? >> this is not one and done, jim. 62% of our revenue is recurring revenue. and from inspections we do all over the world where products are manufactured. also, remember, 10% of our business comes from software and software as a service is a recurring revenue we offer to our customers as well. helping to manage the transparency of their supply chains as well as sustainability needs. >> well, thank you so much for extending that to us. jennifer scanlon is the president and ceo of ul solutions.
6:43 pm
thank you. great to see you on the show. and "mad money" is back in a minute. >> t up your toughest questions. cramer takes on all colors in the lightning round next.
6:44 pm
- [narrator] we just signed the lease on our third shop. my assistant went to customink.com to get new uniforms with all the locations. he found great products, uploaded new art, and had boxes sent to all the shops. custom ink makes it so easy. get started today at customink.com.
6:45 pm
6:46 pm
it is time for the lightning round. it is time for the numbers in stock. buy. buy. buy. sell. sell. sell. let me start in austin.
6:47 pm
>> how are you? >> how are you. >> it is just another day here. >> good for you. the company has gone down about 10% this month. it was up around 5%. i am just not sure if it is the time to buy. i am talking about vrt. >> i do prefer it. it was down and you bought the stock from dover. dov. it is just not as concentrated. let us go to bill. boo yah, bill. >> and i do say one thing about being in the club? you told us early in june about the rotation. the new expansion. then you told us about that tech. you have to be a avid man. >> thank you very much. >> jim, what you taught me, i
6:48 pm
looked, and what you taught me was that they do not make money now. so with the economy, it is not a good time to bye-bye that company. what you think of robotics? >> well, there is a gigantic secondary coming up. and i do not like that. i do not like to see that because the company is losing a lot of money. i do not want to be there. here is jason in new jersey. >> boo yah. how are you? >> when my very favorite areas in new jersey. what is going on? >> thank you for all you have done with the investment club. >> as jeff parks said, we are doing it as best we can. how can i help? >> looked up a company. they appear to have good earnings. where you fall on bml?
6:49 pm
>> that is a very, very good buy. that would be a buy right here. let us go to russell in new york. >> how are you doing, jim? >> boo yah. what is going on? >> xl cs. >> i have got to get to the bottom. this thing has fallen. it looks like it has taken a splat. we are going to get to the bottom of it and then we will come back. let us get to craig in missouri. >> boo yah, jim. the stock i have is amb. >> just go buy some. i am restricted. >> from tampa, florida, how are you? >> i am doing well. boo yah. what have we got? >> great. great. i watch regularly. my question is on carnival cruise. i have several thousand shares
6:50 pm
at an average of $18.62. i noticed the midterm and long- term sediment and also the long- term valuation is very high. so thank you. >> what was the stock? carnival? i like royal caribbean more and i like biking more. let us go to dave in illinois. dave? >> jim cramer, my gardening friend. how are your german johnsons? >> i ate them and there is nothing like a german johnson. nothing. >> really? >> they make a good sandwich, dave. >> really? >> what is going on? >> caught it. jim, this $14 billion swiss company seems to be properly
6:51 pm
positioned to take advantage of the recent upsurge. logitech international has beaten earnings estimates in the last four quarters. although it legs so far this year, jim, your thoughts on loti? >> now, the one thing i would tell you is that we are -- not as excited about the pcs yet. so it could be a christmas play. not so much now. that is my thing. thank you for that ne. let us go to george in massachusetts. george? >> several months ago i asked about a stock,10. back then it was in the low 30s and you said you like it. it is in the 80s now. should i hold onto it? >> this is one of the winners of the year. i have been talking to the chief scientist and researcher for "mad money." the stock has no quit in it.
6:52 pm
it has no quit. it is just the best. let us go back to mike. >> cramer, how are you? >> i have got another 47 callers so let us handle this one right now. >> service now? >> it is service now for goodness sakes! and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by charles schwab. coming up, and video leading the semi stocks. what is driving all those gains, and can they continue?
6:53 pm
6:54 pm
(vo) with fargo, the new virtual assistant from wells fargo, you can pick up the tab even when you forget your wallet. (kaz) i got this. (ben) fargo, send kaz $145 dollars with zelle®. (kaz) smooth. (vo) want faster, easier banking? you can, with wells fargo.
6:55 pm
what else can fargo do? (woman) oh, come on! come on! (vo) fargo lets you do this: (woman) fargo, turn off my debit card! i found it! i found my card! (vo) and also, this: (woman) fargo, turn on my debit card! (vo) do you fargo? you can, with wells fargo.
6:56 pm
it is hard to analyze this whole generative a.i. thing because it is not obvious what anyone is doing with it. that leaves you to one of the whole thing is a bubble or maybe even a scam? put a man on the moon or allow us to have a foolproof self driving car? who the heck needs it? maybe it is just a gigantic waste of money. now, i think that is very wrong but we have had a few conclusions to the corrupted.
6:57 pm
seem to be on a mission to become the largest company on earth and it briefly did passing microsoft entitle. june 20th, we now know as the beginning of a correction. the stock had gotten too expensive. nvidia had $3 trillion. next thing you know, cannon had shed $800 billion. put that in context. there are only seven companies bigger than $800 billion. we had to wonder if it was just another cisco from the early 2000's. a huge company to merely another beaten-down tech play. the analogy has stuck with us ever since. secondly, we had this also that fiasco. they were asked why the company was spending so much on a.i. he said, and i'm going to quote, the risk of under investing is dramatically greater than over investing. that is a great answer for anyone trying to justify spending too much, but maybe
6:58 pm
alphabet is doing it purely out of fear. up it is out of fear rather than pursuing the terms of your investment, then spending is not just fun. we wanted to hear something more like what you got from microsoft last night which is a basically cannot live without these chips because they need the computing power they give you to satisfy the clients. you see, they need the power. it is not like they are doing it out of fear. that is something lisa, the ceo, told me this morning. she is not building a ton of expensive chips hoping someone may want the more fear otherwise but because that is exactly what the customers demand. nvidia may finally be out of the doghouse. plus, when you consider the potential earnings from next year, consider they sell at the same rate as procter & gamble and coca-cola. the same as companies that make toothpaste or diapers or sugar water. look, i totally understand why
6:59 pm
nvidia's valuation wrangle people at the highs. it is a semi conductor company with a huge product that can be used to enhance productivity. it is real boring. make you think maybe it is a scam. can anyone actually come for a use case for artificial intelligence made from expensive chips? the answer is absolutely. but none of them are consumer- oriented. every enterprise may be superb us if you figure out how to play some of the nvidia chips. there are other businesses that may be outsourced that involve designing something that may have taken four hours and have now come down to three. all right? all of these things will make businesses more profitable, even if they are not more exciting. the fact that right now a.i. seems squishy can no longer be held against it. microsoft explained that the company's need the computing power so desperately. at they do not need the chips,
7:00 pm
if they do not need the computing power, then why do customers keep reordering? even as nvidia tacked on $337 billion in value today. i say you should own, not trade, nvidia. i am i promised i would find it for you on mad money. see you tomorrow. their own hs by working h we took a huge chance. i quit a full-time job. ...by working smart... who here would like to help us refine the gentleman? we are still blazing a trail. for those who take their fate into their own hands by working hard. >> we took a huge chance and acquit a full-time job. my dream is want to come america to be a fashion designer. narrator: and tonight, legendary nba star and investor charles barkley joins the tank. barkley: anytime it comes to investing, you're really investing in people. you seem to be on the right track, and i'm willing to take the chance. your margins suck. i think your valuation is gonna need a haircut.

48 Views

info Stream Only

Uploaded by TV Archive on