tv Mad Money CNBC August 14, 2024 6:00pm-7:00pm EDT
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really the anchor. you were the big toe of that show for three hours this morning. >> it's a long show. >> andrew was also present >> yeah, but you carried andrew. an andrew's watching right now. pru. >> zero chance that does it for us. see you tomorrow at 5:00 "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 am jim cramer. don't make friends, i'm just trying to make it a little money. my job is not just to entertain but to put it all in context. call me, treat me. maybe there is nothing that can be done.
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maybe it is a hopeless situation or a situation where someone can figure things out. they have to come out of retirement or have experience that they don't need to be taught, they just happen to have another job elsewhere. sure, the average had a good run, the nasdaq up, .03%. but so many big-name companies are struggling here. i found myself wondering which ones can be saved and have their stocks go higher and which ones can't? look at what happened with starbucks. this is an amazing business story. here is a stock that had been in freefall that all it took was bringing in one person, a talented food executive, a ceo, and then it soars. the new guy, brian niccol , isn't genius at what he does. he turned around aaa but it is not like his predecessor, laxman narasimhan, was a knucklehead. laxman narasimhan was beloved at pepsico and beloved where
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he was the ceo. when he took over starbucks all i heard was he worked in snacks and beverages and packaged goods, he really understood the process. he was supposed to be the logical considered choice. i don't know what happened between then and now but it became clear that starbucks is a great company with loyal customers and not so hot management. the new ceo, brian niccol, might have to take a page from the former ceo of panera bread that had developed a whole new model for stores because the old locations were slow, unappealing, expensive, could not handle mobile ordering. that is the exact problem starbucks is dealing with. maybe it can work for starbuck , tested and ready to roll. maybe it'll roll out in another city. of course the old ceo, he did not want to do that. he thought he had all the answers. behind the scenes, many are blaming founder and former ceo howard schultz for lording over his successor. i think howard had more pulled by the lack of contrition then by the current's execution which he did not like but if you are blaming schultz for firing buxman, maybe you should thank him. because he just
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created $20 billion in value when we learned that the post the blanche ceo from aaa. i would like to take credit for that, we all take credit for the brick if we are looking for what can be saved you need a big change of this topic. starbucks is going to become the model. now let's talk about love. not love, southwest airlines. we saw the potential directors from the activist investor elliott, they want to bring in these tend to replace 10 on the board. everything would change if they do that. every one of elliott's nominees excels in the fields of southwest means technology, revenue magnets, safety, government. on the other hand if left to its own devices i bet southwest would keep it lower. there still time for the board to accept their lack of diligence and move on with their heads high but i am definitely betting on elliott here because his people are better and they will get a
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better ceo. starbucks. another one, disney. this in itself legible. lino nelson wanted to join the board, spent a fortune keeping them off because they could not stand the guy. disney stock went from the 80s to 123 but ever since he lost, do i need to tell you? fell back to 86. what does that say? this is a company that dozens of executives would like to have a shot at running. to me disney is withholding because it simply has got so much value. valuable franchises like starbucks, it is hard to destroy no matter how hard he tries. you just need the right team and it is a winner. you need a change agent as ceo, not just as director. in the case of southwest, maybe you do need to change up the whole board. let's take a look at another while we are going over these things, let's talk about nike. i think it s time we have to come to terms with the idea that something may be very wrong with nike, the had ask blaine the stocks plunging? we have seen a resurgence in new balance. some startling positive number
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, adidas has made a real comeback. nike, not so much. maybe there is nothing that can be done but they ceo, just like the one who got booted from starbucks. these two management consultants have something else in common. they always upset and agreed that they are doing a great job even when the saving pops. i can tell you is no shoe dog, the stock stood at 101 when he started a ceo, it is now at 78. that does not seem like value creation to me. people would take the nikes off and walk on hot coals to get that ceo job. maybe there is someone who can do something better. they think there has o be one? took a stake in nike, we have no idea of is intentions,
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maybe recognize the salvageable situation and wants to make money, maybe has already sold it, we do know he has been an activist and the stock sorely needs on, someone has to say the truth. about a former those tiger? this is a totally different story. rhinitis being run into the ground but i can't blame him. walgreens has been a slow- motion train wreck for ages. i thought this was doomed from the day amazon puts same-day delivery into motion for thousands of things you get to -- used to get at the drugstore pick the damage may be so great that a turnaround is impossible. i believe in tim wentworth is there -- if there is a possibility of a turnaround, he will do it. look at until. the chipmaker is overextended and losing share. it just one of its best assets. until's building plans all over the place, the ceo seems to believe that he too is doing a great job. is reminiscent of the ceos from starbucks and nike. intel to do something, though. it brought in 270 firms as
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construction partners. my advice, the people who run brookfield, you people should take a crash course in how to actually make semi conductors because looking at until's current trajectory, you're going to be doing a lot of that. if there were five aircraft makers in this world i would think boeing would have been done for and out, but there are only two. these guys can afford to make in less mistakes and they have taken advantage of that. a company that can make it, ge, but will take you out to get good work and great execution. from what i can tell the new ceo should be up to the task. i would suggest moving the headquarters to washington. he has already done this back it's going to take a lot of time to turn around boeing. it is probably too soon to buy the stock giving the bounty is so hideous. he was considered an excellent executive. i bet he does pull it off, just not the time to buy it.
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but we can bemoan companies that can't shoot straight or we can look at what he did when he came in and saved ge from collapse. we can see the mmediate faith and market places. this can be done. the companies have to stop fighting it, though. here is the bottom line. right now it looks like the board seemed pretty happy with how things were going with these companies. maybe if stanford put the page upside down in the board pack and the directors were pleasantly surprised or maybe the ceos and board members don't on much stock and just don't feel the pain. otherwise i can't imagine how they can just sit there and accept the status quo. in each case you and i both know it is simply unacceptable. let's go to jason in connecticut. jason. >> mr. cramer. how are you, sir? good to hear from you, what is happening? >> i am a longtime follower and club member here, thanks for
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all you do for the investing community. >> i hope you like the color today, i greeted some of those guys pretty hard coming up that. >> my question is on chevron, i am a longtime shareholder, the stock has been good to me and it pays an excellent dividend. should i pick up some more shares at this level? thanks. >> i think that chevron is a buy. i think they do a great job. i think their net worth is terrific and i think you should pick them up. it is a nice little, buying back a lot of stock. i think it is terrific. is good to elfrid in virginia please. alfred. >> hi, thanks for taking my call. i am down 30% on my position on the. should i buy more, sell or hold? thanks again. >> oh, my. this is such a hard one because i think at the is such a great -- it is one of those where i buy so much stuff from them, many other people do but that doesn't cut it. i think you're going to have to
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understand that if you're going to buy time for a while, that's what you're going to have to do with etsy because it's not going to go right back up. let's go to peter in maryland. >> jim, peter calling from baltimore. i got my mom all over me on this occidental petroleum stock. >> she should let up. >> oracle of omaha is all in on it also, would love to get your two cents. >> it is good! it is not my favorite, it has come down a lot but that is because it is an oil company. i don't like the yield, the balance sheet, i like chevron much more, i like diamondback much more and of course i like could hear a much more. it is just a given that i think every one of those is superior to this company. at the same time a foreign buffet owns it, even if it is like also, the stock goes up 10%. monday this stuff is not going to be like this. you are dealing with buffet versus chevron, i want to take chevron but the world wants to take buffet. maybe the ceos and board members don't on much of their own stock, otherwise i can't imagine how they can just sit there and take this kind of pain.
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take two shares of underperformance, is it game on or game over when it comes to investments? i am talking with the ceo. stock tumbled 10%, what is behind the drop? i am going to the ceo. first, a clear sign of what is to come with housing and the fed. i will reveal it and what it means for your money, so just stay with me. don't miss a second of "mad money." follow @jimcramer on letter! have a question? treat him. send an email to mattmoney@cnbc.com. or call us at 1-800-743-cnbc. miss something? go to madmoney.cnbc.com. t you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet,
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eureka? i have found it. the most perfect analysis of what can happen to housing. if the fed decides to be our friend and start cutting rates. right now this is incredibly important. it looks like the magic number is 6.5%. that is the market rate where it all seems to come together. that is where according to home depot's ceo, ted dekker cummaquid, he saw an immediate increase in housing activity, mortgage applications, then unfortunately the recent spike back up to almost 7%. you can be much of home depot's as a plea for lower rates. srs is professional building supply offices specials and pools, landscaping and roofing. it seems like so much spinning on new homes, remodeling and renovation is controlled by
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that rate, either through mortgages or home equity loans. plus, it is taking share which is what you need when your core market isn't growing much. i think it is worth the price given how much you can expand the total. honestly -- i don't know if it has ever been this tight. as the ceo told us, components of the large project kitchen bath flooring and lighting are all under pressure and our customers tell us it is because that large project is being deferred. that is huge, it is being deferred because of the rates. that is what i want the fed to pay attention to. there is a direct rate that you see picking up internally. that seems natural to me but some analysts argue even if the fed cut rates it simply will not matter. we have such a severe housing shortage in this country and homeowners haven't been too eager to add new capacity. meanwhile, existing homeowners are reluctant to sell because they don't want to eat is the
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cheap market-rate. it seems like it is a box you can't get out of, however if mortgage rates were to come down close to that 6.5% for the 30 year fixed, i would say we with the weimar remodeling and restoration work, bolstered by home-equity loans. these are all areas that got caught in supply-chain disasters during covid and never really boomed in post covid world because the fed rapidly raised rates in 2022. lower rates would really help this our and our usiness, don't take it from me. again, he says point blank, consumers have seen their home values go up 50% in the last four years. their home equity has increased almost 70% since right before the pandemic. that there has been pressure on larger products tied to construction. that is in part this housing turnover down 40%. they are saying everyone is expecting prices to fall so we are to foraging those products. we all believe the fed is going to cut. that is why we have this downturn. on top of it he notes there's a lot of noise with logical and
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geo-political environment, inflation, all at disposable income. i think people just took a pause as we have progressed through the quarter. that is exactly what amazon said but nobody seemed, when we had the same story of home depot, we all think the customers will come right back moment the fed starts cutting rates. that is not just for people taking equity homelands, management also talked about the so-called golden handcuffs where people got mortgages at 325% when rates were much lower and now they refuse to sell their homes. perhaps the most, really, the smartest moment of the whole call, decker explained what he called golden handcuffs problem will only last one or two years thanks to family size increase, and retirement. in other words, much of the housing chain -- those people will move with lower rates. consumers will take out more home equity loans with lower
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rates. refi 35% in one week because the rates at their lowest level in a year. it demonstrates what happens when rates come down but it is too ephemeral. the fed reserve is making things too tough right now by not cutting rates to keep that momentum going. i think they have not done enough to slay inflation. even at the cost of shelter is still high as we saw from the components this morning. in the end, home depot made -- they gave me hope that we can avoid a hard landing for housing but only if the fed unlocks is: in custody created by taking reese to superlow levels a few years ago. i bet that is what happens in clearly home depot agrees or else he would not have shelled out 18 billion for a professional supplier. here's the bottom line, housing is waiting for the calvary to come to the rescue by which i mean it is waiting for the fed to cut rates. while that is not something we desperately need, at least for the moment it could be a major positive catalyst for a huge
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part of the county. lower rates will work but not until the fit gets off the bench and gives them to us. let's go to charles in arizona. charles. >> greetings to cnbc's finest there. >> thank you, charles, how can i help you? >> i just want to mention a couple weeks ago a caller from florida insulted your phillies on air, how dare he comes into your house like that. >> akamai was going to put him down like a dog but i like dogs, so go ahead. 2 all right, jim, i am an american express card holder and i want to be a shareholder. is now the time to wait? is it time now or wait -- >> i think it is a traffic time to buy american express. i don't know about the blackcurrant, i have been trying to assess the advantages of that. it seems like it is cool, but what do i care. i think the stock should be up more than it is, i love the last quarter. everyone hated it and they were wrong. let's go to alejandro in new york. >> hey, jim. i would like to hear your
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thoughts on airbnb. i have a buddy who has got 40% of his portfolio in this thing and i am wondering if it is time for him to part ways, given the weak guidance they provided during their most recent earnings call. >> reporter: 40%, that does not have more sense, you cannot do that. the airbnb call was not a good call and it wasn't a good call because they didn't want it to be a good call. it was not us, it was not me making a determination, you have got to avoid airbnb. it was the company. travel is not as good and i think about hotels are too expensive but airbnb, i have to say the stock has to go lower before i can recommend it because i was so shocked at how negative brian was on the call, he is the ceo so he knows more than i do. home depot's conference call told me the housing market is waiting for the fed to rescue it by cutting rakes. i think when they do we can avoid a hard landing for housing. right now we need housing back. we don't have it. gentle this back after the break. coming up, rising costs took a bite out of earnings.
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♪♪ for[inner monologue]nce. in this gig... you get comfortable being uncomfortable. ♪♪ the enemy is always adapting... deepfake: hey handsome. ♪♪ [inner monologue] ...always iterating. ♪♪ what the heck happened to brinker stop today? i thought this was one of the few restaurant change that worked in the world consumers were going against high prices but the stock plunged more than
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10%. what went wrong? not clear. they were originally getting hit because the company is investing heavily in labor and sicilies, your ordering a guest experience. they don't have a pressing problem, traffic is actually up big at chili's, sales are amazing. i think this is a stock that was up big going into the quarter where shareholders were looking to an excuse to even register. of the new investors can keep feeling the company's growth, that sounds good to me. let's check in with the president and ceo of brink international. welcome back to "mad money." we do need your help because i see someone who has made a tremendous success of a chain that i really did not think that much of, with the most important metric. what you want to do is continue that momentum going but in order to do that you need to spend a little money. what is the matter with that analysis? >> we had a great quarter. we outpaced the industry by 16 points on sales, which is kind of like videogame numbers. we did it through incredible value with great service in a
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fun and friendly environment. those of the fundamentals of casual dining. every quarter we keep getting stronger and stronger. i think what happened today was pulled forward some investments. number one we wanted to have a little more labor in the restaurants we had this influx of guests that came in to make sure they had a great experience. most of those guests were actually first time people to chili's, so we need to make sure it is a great experience and it was. our guest metrics did not suffer. the second thing is, e pulled forward some facilities investment, we saw the opportunity given how well we were doing in the quarter, and i think that is what happened. i think allstate expected a certain level of flow through on those incremental sales. we reinvested it back in a business and that is where we are. that we are very much on the trajectory that we want to be. >> let's compare this very moment to starbucks. starbucks got the big influx but they did nothing. they did not and people in the
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back, they did not fix the facilities. next thing you know you're in a long line, next thing you know, you hate starbucks. i can't believe that all restaurants are the same. if i start going to see a big line a place i'm going to another place. to avoid that you need to make some changes that are positive. >> that is exactly right, we have been at this for almost 2 years now, where we are making investments in labor, we are supplying the restaurant so that there are less things for them to do so they can win with the guests. be kept over 22% of our menu since we started this journey, right? and then we are improving the facilities. the whole idea is we have been beating the industry for 18 months. we thought this was even a better quarter and it is just another stairstep in our turnaround and it is happening and it is real. >> if you had done nothing, you as an expert in this business have to believe two or three years from now is going to come
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back to haunt you if you did nothing. >> it will be sooner than that, we have new guests that come in and they don't have a good experience, they're not going to come back, we will not sustainably grow the business. we don't want to have two or three years of record growth and record profit, we want to have a dynasty. >> i am looking at the making of a dynasty right here. this is not a cheeseburger, fries, diet coke and a little back and you don't want to spill the ketchup on yourself. this is a sitdown meal for a similar price. >> that is exactly it, you have a half pound burger, fries, limited chips and salsa and unlimited soft drink and it is at $10.99. we continue to say it is an unbeatable value. when you see it altogether like this you realize it is unbeatable value and that is what the guest is saying. that is why we are really schooling the industry right now by double digits and i think it will continue because we are doing all the right things. >> how many more units can you put up if you figure it out? >> now we are focused on investing in our current facility. >> if i were you, i perfected the formula, it is time to start putting them up. >> we build anywhere from 10 to 15 a year. but your thinking accelerate and i think we have got to continue to focus on the quarter. i think we cannot get bored of the fundamentals. coach k used to say if you do the fundamentals so well, can be here competitive expand two.
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>> talk to me about how you got a same-store sales number. people are saying aaa is great, there is better. how? >> it is the fundamentals, right? you talk about when the macro gets a little soft, we know guests are going to pull back, they're going to choose the places that have superior value and they know they can trust. they know they can have a good experience. when you are making less trips you don't want to go to a place, i might have a great experience, you're going to go to the places you know you're going to have a great experience and that is the reputation we are getting in the industry. >> in the industry are also getting a reputation for knowing how to market drinks. there are many large companies including some major liquor companies that somehow think that there better brand is more important than your drink. you have broken that mold. i don't know the tequila you're putting in but it tastes every bit as good because it is able in and they are all the same anyway. >> we do use great brand of
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drinks, though. and we have all the different segments covered. so you can go to a stellar margrethe of the month, our current one is a mango mamba, it has got triple sec, fresh sour, you can get that for 6 dollars. that is unbeatable. >> i found it unbelievable, that is a $12 drink everywhere in this country but you are willing to what, make less? >> actually not, we have what is called the barbell pricing strategy. you have got to meet guests where they are. some guests want great tequila, they wanted at a great price and they wanted to taste great. we have that with a six dollar margarita of the month. other guests want something a little smoother, superpremium, we have these ones, and those things are obvious a lot more than six dollars. no, we don't just sell the six dollar margarita, we saw the margaritas. if you want something more premium that rounded out for us. we are able to make a lot of
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money on alcohol, drinks, because we have a barbell strategy. we are doing that with the core four segments, for that extra price point guests, the guess that is a low price, we have that, you can go all the way up to pretty much whatever you want in the restaurant. >> a lot of attention on tiktok. secret nashville hot mozzarella sticks but football starts in five weeks. are we going to see major presence in football, nfl? >> i would not call it a major presence but we are certainly going to have all the games on sunday ticket, we obviously have amazing food to watch the games and we create an environment people want to come to watch games. are we going to be a sports bar per se? no. that are we going to have amazing food at a great price point and you can come watch your sports? absolutely. i think we are ready for it. >> i am glad you cleared everything up, there are a lot of people who look at the stock, honestly, and say something is wrong. they never think, investing for the future is what they have to do, new year, it's going to be amazing. and that is what i think is going on. >> that is exactly right, we don't want two years of amazing stock price, we want a dynasty and that is what is happening right now.
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>> we have seen the two are many times, people are afraid to take the hit and you weren't. that is terrific. that is kevin hoffman, president and ceo of brinker international. not only is nothing wrong, what is happening is right. "mad money." is back after this. coming up, more than a game? cramer has got the fun making stock the place by its own rules, next.
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gina costa... looking simply stunning... what's this? she's opening her fidelity app.... to buy that stock... with no fees or commissions... because what does gina got? gina's got the look. that never gets old. talk about easier investing. we know the videogame industry has been through a wild ride. many stocks have stalled out in 2024. i am wondering if the dynamics of this business have changed over the last five years. best known for grand theft auto, one of the largest
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entertainment franchises, let's just call it the largest ever. a growing portfolio of very successful games. after a nice run last year in the early part of this here come the stock right now is now down 10% from 2024. so what gives here? what is the streak doing wrong and not realizing? they always seem to care about whether grand theft auto is on track. even though their network earnings came in tight, the stock rallied 4% because they didn't even like grand theft auto six. what else does take two have going for it? the chairman and ceo gets a better sense of the quarter and what comes next. if i am frustrated, it must drive you crazy but you're not promotional which i love. could you clinically tell me what the company is made up of right now so we can kind of figure out what that is worth
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rather than what happens in the future? >> look, first of all it is nice to be here. >> i'm sorry, i am frustrated. >> thank you so much. i am not frustrated. i am thrilled. we are, today, the number two pure play interactive entertainment company, we will have about 5 1/2 billion in net bookings this year, we are a highly profitable business. and, look, we do have grand theft auto which is the biggest entertainment property of all time and we are thrilled that rockstar games as part of our network and that they are bringing us grand theft auto six, how could we not be thrilled? 50% of our net bookings come from mobile. our mobile company is showing it is a bigger and better trader than anyone else in the business. in the last year we have delivered match factory, a massive hit from our label, peak . >> tapper hit. >> we have star wars hunters, we have recently launched game of thrones questions, we have a title you haven't heard of which is another huge hit. 10 blast which has been around for 7 years and still meaningfully up in the last
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period. we don't have the biggest mobile title right now that we have a bigger collection of new hits than anyone else. >> the acquisition worked. it worked. highly creative. let me tell you what i was thinking. i happen to go over this, i happened to go over your release before, which, i can't talk about it. i thought the stock would be u . i just did because it not only is grand theft auto on time but it is so lucrative it is amazing and other things are good and you have got a bunch of other things, we have sid meyer which matters, and a lot of guys play in the office, and i come back and i say, how could i have been so wrong? humor me. i am thinking that there is a myopic group of people who focus on only one title, but that is because it is the biggest title of all-time. and nothing else can move the needle against the biggest title of all-time. is that a possible analysis of why the stock is being [
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inaudible ] >> i think there are times when we have been seen as only grand theft auto. but remember, grand theft auto with 15% of our revenues last year. 85% is our catalog, our other new titles, nba 2k and the like. we are thrilled we have that title, we have a lot of other things going on. the truth is, though, if the markets were always efficient, there would be no buying opportunity. >> true, but i am talking about a company that may turn out to be selling at the lowest when the stella comes out. >> we feel really good about the position we are in. of course our view is we go do our work, we never take anything for granted. it is our job to create the biggest hits in the business. we now have 11 franchises that have each sold at least 5 million units with one release and a title that we don't really talk about that often is red dead redemption, red dead two sold 65 million units, that is good and virtually anything
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else in the market aside from grand theft auto. >> so how big, really, is the digital advertising market? maybe we are looking at that wrong. maybe that can be far bigger than we realize. >> that is a very significant part of our business on the mobile side. we are exciting, he mentioned screw jam, we have another title called to stuart ingle, they come from a studio that used to be in the proper casual business which only was ad supported and now is in the hybrid casual business where we have in app purchases and advertising and that business is booming for us. >> on grand theft auto six, let's just go there, the technology, the nvidia technology is so great that i have to believe this will be something that is a giant step function higher versus all the others. so what do you do? you don't really need to do anything, that is what is so nutty. you can just wait for that to come out. with this stream of income that the other games generate, i know you always want to innovate, i know you're constantly doing that but again, this is the biggest problem i had if i were you,
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which is, are you seeing what numbers we are going to put up? >> waiting in the early part of my program, so we have a three part strategy, try to be the most creative, the most innovative in the most efficient. we obviously have really high hopes for grand theft auto. i would note that grand theft auto five cost over three generations and remains both the technical and creative standardbearer after the third generation. it has been 13 years since the title was released and it sold in over 200 million units, it continues to sell every quarter. so if history is any guide, six should be just amazing. at the same time, as you mentioned, we have nba 2k, ww 2k, we just bought gearbox so we have borderlands, it is an amazing franchise. libation, we just munched available version in china, that is huge. there are a lot of other things that are going on at the company. >> let's go there with the movie. the movie was not that successful. >> no, it was not, it was a disappointment.
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interestingly and the dialogue on border locks catalog sales it was kind of amazing. we were criticized for the movie, and i remember, we had no financial stake. >> that is really important, the mattel movie comes out, blasting, why don't you on more of it? you think, look, that is not the way it works. >> we don't want to be exposed to that business, however it is pretty amazing we got a marketing halo from the movie even though the movie was seen as a disappointment. by the way, we and the team with -- worked really hard on it. >> if you don't mind, let me sum it up. i think that the rest of the company is worth a great deal more than people think because if it is only being valued in large part for grand theft auto six, then you get all these other things for free. and that is the only way i can come up with this. you get them for free. it doesn't mean that they shouldn't be, maybe people think they should be free, it is hard to imagine given the cash flow that they should be valued at free. >> i tend to agree with you, jim.
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let's see what the market does. >> i would buy every share i could. i would get a lot more cash in from grand theft auto. i find it frustrating because you are doing such a great job. >> thank you. >> symptoms life is frustrating. >> we have an amazing team and we have a lot more work to do. >> fair enough. that is a chairman and ceo of take-two interactive. you just saw a discussion about how to try to value something that is worth a lot more than it is selling. not about how to promote, how to push, but just how to value . coming up, hit us with your best shot, an electrifying fast fire lightning round is next. we teach you how to develop your own investment strategy. >> go to cnbc.com/joinjim.
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this is remington. ...he's a member of the family, for sure. we always fed them kibble— it just seemed like the thing to do. but ...he was getting picky we heard about the farmer's dog... and it was a complete transformation. his coat was so soft, he had amazing energy. he was a completely different dog. it's a no-brainer that (remi) should have the most nutritious and delicious food possible. i'm investing in my dog's health and happiness.
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lightning round is sponsored by charles schwab. trade brilliantly. it is time. play the sound! and then the lightning round is over, are you ready? we will start with todd in new york. >> jim, good evening. >> are you doing? you makar you doing today, jim? >> let's make some money. what is up? >> soon, my question for you is on global foundries. >> i don't like the foundry business as much. it turns out the only people who really know how to make them cheaply is taiwan so if you want another foundry, taiwan semi is a want to do it. let's go to bill in connecticut, bill. cmac thank you for taking my
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phone call. >> my pleasure. >> the stock i am talking about is that no one. >> i had not been a believer, he is coming after that guy. but i do think sentinel is picking up some business, therefore i'm going to tell you i actually supported only for a trade. matt in ohio, matt. >> hey, jim, thanks for taking my call. one that i am calling about tonight, it has done well over the last two months, it got hit pretty hard after hours trading today, it needs some guidance. clorox. >> so, she has done a remarkable job, she was not delivered a good hand. i do believe she is -- the wishy and covered -- recovered from the incredible cyber attack, i like the way that she hurt all the vitamins and supplements. i like her, i am a buyer of clorox. let's go to dave in iowa. dave. >> hey, jim.
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>> i love northwest iowa, what is happening? >> 10 years ago i purchased a couple hundred shares of all chair for my roth. shares have doubled, where would you put it for a dividend high flare? >> this is so hard. used to be their biggest supporter, and is the ceo, and then some things happen in your life and you see people die and you see people die and it is connected to cigarettes and then you just thought, you know what, i can't take the money. i know that they don't care. i know if you buy, it doesn't really matter. i can't live with myself having seen what happens, i have to take a pass on that question, the people have a better answer. let's go to anthony and new york. anthony. >> thanks for taking the call, love the show. >> thank you, buddy. >> wanted to ask you about delta air lines. >> i am not recommending any airlines. they couldn't make that money with the extremely full flight and overhead and you can't get in to move around, i can't get
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the seed, they take my seat for hundred dollars, forget about it. how about jake in south carolina? jake. >> hey, college football player here. just wanted to get your thoughts on alphabet. >> d1, d2? are you d1? he has done? a d1 player just called in, that is a big deal. here's the problem with alphabet, it is my least favorite of the seven, because they don't from the company well. i did like the fact that jonathan cannon wants to do at least some of the situations, the problem is he is in the justice department, he is not an analyst. jonathan, a corporate finance guy, that stock would be doubled. is that it? no, give me some more. let's go to georgia and massachusetts. george. >> hi, jim. i bought [ inaudible ] when it was right around $50. the stock is now around $450. should i hold onto the stock order -- >> george, do you really need
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me? look what you did, he brought in 50. i am sitting here nursing the stuff that i own, i am down 20% in me no more than anybody, take out your cost basis and let the rest run. you are my cohost first -- from now on. that will do it for lightning round! >> the lightning round is sponsored by charles schwab. coming up, entities the took your question in today's monthly meeting. he is not done yet. we hear more from you, next. >> your integrity makes you the saint of wall street. >> quadrupled, that is a lot.
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earlier today we held our cnbc investing club monthly meetings. once a month my partners get together, walk club members through the process of how we make decisions for the portfolio. we discuss our current homes, then we take questions from our club members. my favorite part of these meetings is taking our questions. since we didn't have enough time earlier today to go through all of them, i will give you a look at what we do for the club on tonight's show. if you wanted to take a look at what you must and you are already a member, the full video-on-demand will be at cnbc dot calm/investing club. if you like what you hear and want to be part of exmouth's monthly meeting, scanned this qr code or go to cnbc.com/join theclub. we have a question from nick in indiana who has an interesting opinion on general motors. it seems all signs have been very positive but the stock has not been reluctant to the level i would respect -- expect. am i wrong to think the industry will get a boost?
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you are right, it is one of the biggest beneficiaries of lower rates because people buy cars on credit so to speak, on-time. what you need to know is gm is doing much better than ford. jim has a big buyback, and i like the stock very much. and extensive stock, good place to buy. let's see a question for martin who asks, one of the time, if ever, to buy crowd strike? i said it wouldn't go around -- below 230. i think it's going to be up from here but i do like palo alto networks more. i think george kurtz is going to pull back. other than delta i don't see a lot of people, companies, leaving the world of crowd strike. next up, glenn and california asks, both presidential candidates have said they want pharmaceutical companies to lower drug prices. how would this effect companies like eli lilly? eli lilly has a gop one drug and has summoned different things that are helped by it that all we need, if you on eli lilly stock, is to get approval from
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medicaid and a couple healthcare companies and there is nothing in health insurance not able to do anything about it. let's go to game in michigan who asks, with strong earnings, free cash flow, guidance and dividend, it appears to be a strong buy, what are your thoughts? i shared similar sentiments to clump members. i am wondering whether devon might be better. and why i say that is because devon has made a series of -- getting a lot more oil and i think he is doing a good job. next, question from james who asks, what do we do with dell technologies? listen to me, it is michael dell, you'll catch a bit. i think you should buy some now and buy some validity, you will get a better basis and be able to write it up. that is a favorite partner of nvidia and that is what matters. let's go to kim n arizona who asks, i know gold is at its highest level but i would like to know if you recommend getting it at this point or wait for a pullback.
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also is it better to buy actual gold? cold starks or an etf. i like them all, gold you can go to cosco, gold etf's, very good. best gold stock, they all work. don't buy it all at once, you can buy people you know, don't store at your house, start a big deposit. next up we have a question from jason in pennsylvania who asks with celsius dropping in the 30s would this be a good time to buy? i was not sure about the answers, i feel the energy drink category has slowed dramatically. i am concerned about that, i fear getting involved in a value trap because if they don't pick up the growth, you don't want to be there. let's wait for a couple of months. lastly we have a question from andy and virginia wants to know, should i name my new puppy nvidia or do you have a name that might suit him better in the long run, longtime member, thank you. i think we have already had amazon, a terrific pup. it was a great stray dog. i would name your -- you know what i would name your dog right now? oh, yes, there is nvidia. and that is a ragu.
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we also have tony. here is what i think you should name your dog after. i think you should name your dog starbucks in honor of june 15. it is kind of a good name. anyway, thanks again to all our colors. remember to join the club ahead of next month's meeting. there is always a bull market somewhere. i am jim cramer, see you tomorrow. they'll invest their own money or fight each other for a deal. this is "shark tank." ♪♪ a guilt-free version of a favorite treat. ♪ hi, sharks. my name is gabe wolff. i'm ani blinova, and we're from stamford, connecticut. our company is wink frozen desserts, and we're seeking $300,000 in exchange for 15% equity in our company.
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