great steakhouses in a few minutes, if you are looking to have dinner with brian sullivan. cvx turning higher. >> guys, thank you very much. i will see you, everybody, on "squawk box" tomorrow morning, 6:00 a.m., so, i'll be sleeping right outside the studio right the studio. "mad" with jim starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to make you a little money. my job is not just to entertain you but to educate and teach you about how these crazy days work. call me at 1-800-743-cnbc. or tweet me @jimcramer. turns out nvidia's mortal after all. even though it reported a great

quarter last night it wasn't able to deliver its key product fast enough to allow the company to do what it's done so many times before, blow away the earnings. yeah. raise its forecast to unfathomable levels. nvidia didn't define today's trading because it failed to dazzle in the way that so many money managers have come to expect. didn't even seem to matter to the averages, though. dow advancing 244 points. s&p basically flat. nasdaq dipping .23%. my response to all this, all i can say is goodness gracious -- ♪ hallelujah ♪ with this quarter's results the albatross and perfection is now gone. the mill sstone shredded. as much as i love nvidia i'm thrilled that we can finally return to a market where there are many important stocks representing many important trends instead of one stock that's captured the attention of legions of investors, many of whom have no idea what it does let alone where it fits into the technological food chain. i stand by my view that you should own the stock of nvidia and not trade it.

after all, i've spent days warning you the buy side expectations were too high and the stock had run way too much going into the quarter. i told you the quarter needed to deliver a gargantuan beat and raise quarter in order to make it rally something that seemed very unlikely if not downright impossible. but i never backed away from my belief in the value, the ultimate value of the company. what i'm saying is that in the end nvidia isn't a concept. it's not a cult. it's not a miracle maker. it's a company that designs really fast chips that allow for rapid calculations that help companies speed up the solving of problems while improving productivity. you can't ask nvidia's blackwell chip to cure cancer. you can't do it. it won't put a man on mars. it certainly can't bring about world peace. yet when you look at how this stock was trading in recent weeks the market was basically asking ceo jensen huang to do all these things and more. instead right now it looks like it can expand customer gross margins. important but not earth shaking.

especially because the enterprise is the client, not you. you won't even see it. now that this quarter's in the rearview mirror my hope is that those who wagered on the stock notice wagered as opposed to invested in the company will finally move on. no more exacta box with and to place, please. we have to go back to try to value nvidia like any other company. put a reasonable price to erin aings multiple, p/e multiple on it given its growth rate. wall street are saying it can earn $5 per share in 2026 which i think is a reasonable time frame when you're evaluating a big growth stock. we have to figure out what it should be worth based on that dollar number. given nvidia's growing much faster than the average company it deserves to trade at a premium to the benchmark s&p 500. right? you with me? that currently sells for roughly 24 times this year's numbers. since we're using the 2026 estimates for nvidia, the results are at a little more of a discount. let's say 24 times $5 of future earnings per share. what does that give you?

$120. it's just a few bucks above where it's currently trading. i could easily argue nvidia deserves to trade at a premium since it grows much faster than the average stock. so let's give it twice the p/e, twice the price to erin aings multiple of the s&p. that would put it at $240. that seems pretty high. let's split the difference and say it deserves to trade at 36 times the 2026 estimate. that takes us to 180. but more than $60 above where it's trading. but realistic. i'm going through this entire exercise of boredom because after this quarter i'm hoping nvidia becomes just another company. maybe even a boring one. one that's valued based on earnings rather than intangibles. and this is how we value a typical high-quality growth stock, which it is. i just gave you the process behind where a stock trades, all stocks. now all stocks including nvidia. it is a tedious process. this valuing of a stock. but in the end that's what

nvidia is. it's a stock. doesn't matter how brilliant jensen huang might be. i call him da vinci but it doesn't matter. he's the ceo of a public company, not a magician or alchemist or an artist. i'm thrilled nvidia brought a whole new set of enthusiasm to the stock market but i'm bummed so many people are more gamblers than investors. they only got in because the valuations went from 500 billion to 3 trillion in 18 months. they dets prattly needed that progression to continue. they were unrealistic and i sense they go and be unrealistic betting on games of sports or chance. they were always sunshine soldiers. they were always summer. some were patriots and soldiers. i'm disappointed in these people but i sense from the action at the end of the day they're gone. summer soldiers. i think the situation makes room for something great, though.

i want to turn it into as we talked about -- we'll talk about later in the show lemonade. let's turn to lemons and lemonade. we can focus now on all the terrific companies that were lost in the nvidia shuffle. how about amd? which also makes chips, including chips for that. while not quite as useful for artificial intelligence are still basically in the same league. plus amd makes chips for traditional computing and servers that compete against a hobbled intel. amd's is very cheap. 2026 earnings estimates versus stocks. others in the s&p. oh, and by the way what happened to nvidia was actually good, not bad for amd. they are a competitor, for heaven's sakes. how about a company like apple which is about to issue a new phone that will soon be offering the latest in artificial intelligence for the consumer? the stock's historically pricey but historically apple didn't have a revenue stream that's sticky and prickable and creates a whole new level of stable earnings plus apple will be using chatgpt which has cost openai and microsoft billions of dollars to build yet these guys

are getting it for free because apple's such a huge highly valued installed base. how about amazon? down 29 points off its high. even as we've just seen some surprisingly strong numbers from a series of major retailers. best buy this very morning. walmart and target. the consumer's clearly doing fine as long as you give her good value. and that's amazon's middle name. plus they've got the best beat on how to use ai to figure out your buying patterns and same day delivery, something that only costs costco and walmart the only ones that can possibly beat them when it comes to price but not delivery. maybe walmart plus for delivery. how about salesforce? they reported last night. they know how to use a generative ai to create smart agents that can answer pedestrian questions. very important because pedestrian questions are about 90% of what customer service reps need to happen. it will allow for massive expansion across margins as bots are a lot cheaper than people. we'll learn more at the company's dreamforce festival in three weeks. again, not a barn burner but

that's the point of artificial intelligence. ai doesn't burn barns. it simply imitates us which can be pretty valuable if you run a business. that stock should have been up not down today because the use cases were so compelling. i don't know what happened, it was a mistake to me. i say goodbye to the nvidia watch parties. let's go back to the days when jensen huang was seen as a brilliant engineer with a black leather jacket and lots of amazing ideas. not an other-worldly miracle worker. nvidia's not the hope for the future of mankind. it's a company that's very, very good at what it does. it's winning the ai revolution, which doesn't cure cancer or even the common cold, but does help businesses do things quicker and for less money than ever thought possible. bottom line, nvidia's not sexy, not legion, not superman, just an excellent computer company led by a ceo who's one of the best at what he does. just remember, though, even with nvidia it's not personal. it's strictly business. let's go to sam in pennsylvania,

please, sam. >> caller: jim, listen, after listening to nike's fourth quarter earnings call i've got to tell you we've got a bigger issue than just the consumer. it's quality control. you see, i've been buying nike my whole life. i'm a runner. i ran in college. and what i've been noticing is the shorts are just falling apart. and until they fix this issue i think it's going to act as an overhang stock. i need nike to understand the quality of the products matter to us consumers. >> wow. i was talking to mary dill orn of foot locker. foot locker had a good quarter. she swears by nike, swears by the jordan's, all that. but i get the same feedback you do. i've been emphasizing hulka. i agree there are real big issues with nike, bigger than we can handle in this two-minute call. but they have to be resolved if that stock is going to go higher. now that national nvidia day is finally over -- >> he this know nothing!

>> -- i think we should remember that even with nvidia it's not personal, it's strictly business. on "mad money" tonight crowdstrike reported its first quarter since it took down millions of computers worldwide. some people are having a hard time picturing the applications of generative ai. i'm listing all the important use cases and how to invest in them. and gap shares, after the company's second quarter results were accidentally released early but the stock still finished the day higher. i'm hearing what wall street liked in the report when i sit down with the company's top brass and i'm liking that company's stores. stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on x. have a question? tweet cramer. hashtag madmentions. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something?

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oh, it's been a crazy couple months for cramer fave crowdstrike. the cybersecurity company that made headlines for all the wrong reasons on july 19th when a botched update caused widespread tech issues shutting down millions of systems around the globe. there was a ton of speculation that these outages could hurt their business but last night crowdstrike reported a strong sales number, excellent earnings beat, terrific customer retention. as a result the stock jumped nearly 3% today, was up a lot more at one point, while it's still down over 30% from last month's all-time high it's aalso rebounded 35% off its recent lows. let's check in with george kurtz, co-founder and ceo of crowdstrike, to get a better sense of the quarter. mr. kurtz, welcome back to "mad money." >> great to be here, jim. >> george, when you called me

that morning, that friday morning and said listen, this is what's occurred, no holds barred, you came clean, the textbook way to handle this. i thought for sure you would lose a lot of customers or perhaps that it would freeze the process in all the big deals you were working on wouldn't come to fruition. it was the exact opposite, wasn't it, george? >> well, jim, obviously it's a challenging time for customers and for crowdstrike. and really what we wanted to do was to be transparent as we could. when you and i talked about the incident, we worked with our customers. we explained what happened. and yeah, it was a tough quarter, but we got big deals done at the end. and i think what we're seeing from customers is the positive response to how we responded to this particular incident. big challenge. but obviously we've had many customers for many years that we've created loyalty with. and i think it's the sign of a true partnership if we can work through them, through difficult

times. >> would you put me in the room? tell me what it wakz like. i understand you tried to call the ceos instantly, you personally, and get to work on this. that it was not one of these things where you basically said listen, let's call some of thooez these people that are big. no, it was everybody that was important to you. and that you did it personally and then you put your team on it. was that the way it went down? >> it was. obviously we have a great team. it was a bit of divide and conquer. but i was on the phone obviously all morning. and really i continued to be on the line over the last six weeks. it was calling everyone from government agencies to ceos to everyone else in between. that's always been a philosophy of mine, is making sure that we get in front of the customer, we do right by them. obviously we had an impact and we had an issue. we wanted to make sure that we owned that issue. and more importantly, we were focused on getting them back to recovery. and doing that in the most expeditious way that we possibly could. >> there seems to be one that i

thought was going to be common parlance that turned out to be an outliar, and that was delta. suing you. did you not try to reach out to senior management at delta? because it sure seems like you kind of dropped the ball on this one. >> you know, it's an unfortunate incident. obviously, we caused an impact and we tried to work through it with them. they've expressed that from a legal perspective they haven't decided at this point. we'd love to work with delta, fiend a resolution around this, and at the end of the day we're trying to work with all customers to make sure we address their issues, they understood what happened and we can go forward in a constructive fashion. that would be our goal. >> i think that's the correct response. there were some people who were basically kind of mischaracterizing what happened here, including people in your industry, who don't seem to realize that this could happen to anybody. i don't know how anyone in business didn't understand that. because this was not core

competence that was in question. tell me about what people aren't getting right. >> when we look at what happened here, jim, it was a configuration change that was made to software that was tested and running for the better part of five months. we encountered a bug. it went through i avalidation process. and obviously we had an impact. and when we think about the industry we're in in i.t., and i spoke to many customers who talked about many vendors that had impacts and issues. it happens in i.t. this obviously was something that was visible. and it happened to a lot of customers. but from our perspective we've identified what it was. it was a process issue. obviously, there was a big in the validation process. we've corrected that. and more importantly we're focused on making sure we have the best process in q.a., rollout deployment and resiliency, and we want to be a hallmark of transparency and resiliency in this area. and that's really what we talked to customers about, giving them control, giving them assurance it won't happen again.

and moving forward. and that's been well received by our customers. >> and it clearly worked. your part of the conference call was really a clinic you put on that had this beautiful arc where you finished with -- you had a couple -- you had a nine-figure, and then you finished with a major player in your own industry that clearly endorsed you. but then there was talk of customer commitment packages. this is a term i'm not familiar with. it sounded like to me rebates or discounts. and that that may be a concern that perhaps not everything is as well as i thought it was. >> well, jim, from my perspective always try to do right by the customer. we had an incident here. we want to sit down with customers, want to have a business conversation. what can we do to help make things right? and the customer commitment package is really a framework around that where we're leveraging our flex licensing model to basically create a pool of dollars where we can work with customers, perhaps give them some modules, maybe extend

some time out, also provide things like services. so we want a framework to be able to sit down, solve business problems and make sure we're coming to the table proactively with them to show our compliment and partnership. >> i was joking with david faber about how when they say you worked around the clock that you meant it, and david said yeah, sure. but there is another sidelight to you that you race cars. you race cars. and where it seems like you never have to sleep. so around the clock for you is not the same as everybody else. is that not true? >> everything is endurance. it's about the small little details. putting the team together. it's about focusing on the outcomes. and we took all of that preparation and put it into action with our crisis management team. we worked around the clock.

so did a lot of our customers. and that's what collectively we needed to do. and we worked hand in hand and bringing them back to health. in automated ways and in many manual ways. but we were out there with them and our partners solving the issue at happened. >> i want to make sure i got this right. so you're in talks. no actual papers filed. it could be anything -- because obviously when you talk about law it could be anything. but this is not something -- you're treating this as this could be ameliorated. >> well, i think that's it, jim. if folks can sit down, have a business conversation around this and try to come to a resolution, obviously we're open to that. delta's a customer. and like any customer you want to try to get this resolved in the most expeditious way, and we're certainly open to doing that. >> of course you never want what happened to happen, but i think we'll look back at the way you handled this, they'll study it

in business school, we'll study it as people in journalism to say this is the way you come back from a terrible mistake. that's why i was so glad you came on the show. george kurtz, founder and ceo of crowdstrike. george, thank you for being so forthcoming about this whole thing. >> thank you so much, jim. >> excellent. "mad money's" back after the break. >> announcer: coming up, putting the gpu to good u-s-e. ai applications in the real world. next.

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like i said at the top of the show, it finally happened. nvidia disappointed. well, not exactly. they blew away the analyst estimates. but the size of their upside surprise is decreasing. that and the delay of the new iteration of chips disappointed the traders, causing them to sell the stock today. it's still up 37% for the year but it's not as good as it was yesterday. now, all kinds of people coming out of the woodwork and not just knocking nvidia but they're claiming the whole ai theme is kaput. of course that's not how i see it. all things considered -- look, nvidia reported a really good quarter. one that was strong enough to keep the stock from nosediving despite the sky-high expectations. i've been telling you all week that money managers were expecting this company to deliver yet another insane beat and raise quarter. but given the super high whisper numbers, ones they were expecting from behind the scenes, portfolio managers were quietly hoping for these and the fact the whole industry seemed to be treating this quarter as

make or break for the entire market, i think in the end it was probably a decent outcome. nvidia got dinged but there wasn't much collateral damage to the other ai plays. as we told cnbc investing club members last night i think you should wait for some of the hot money to come out of nvidia before looking to buy the stock on a pullback. but i certainly didn't hear anything about the thesis changing last night. in other words, there is a thees skpis it's ai. there was nothing that makes me want to change my stance you should simply own nvidia, not trade p t. so many people trade td we're looking at how much money was lost. that said i feel compelled to address something that's been bubbling under the surface for months now. this idea that artificial intelligence is some kind of sham with no real use cases. some people still can't seem to envision what businesses can accomplish with generative ai or accelerated computing. those are the two trends that jensen huang continually cites. they've seen how much money nvidia and other ai-related hardware plays are making from selling necessary infrastructure. we saw good numbers tonight from dell, from marvell tech.

same deal. they've heard from the so-called microscalers like amazon, microsoft and meta. all of them talked about investing tens of billions of dollars in ai infrastructure. they might even use some generative ai applications like open ai. meta ai. it's cool and somewhat ironic and funny too. but hard to get your head around why all these big companies are spending fortunes on artificial intelligence. it almost seems fatuous. no matter how much fun you have with chatgpt it seems ensane for tech titans to spend tens of billions of dollars for something like that. lots of folks have been asking whether anyone's seen any actual return on investment, ai investment. has anybody's gross margins been boosted by this? the most compelling ai use cases have been slow to develop. much of the early investment goes toward training. that's the key word. training ai models. it's only after that process comes to fruition that you get

artificial intelligence that can actually do something for users. just as important most of the areas where ai's truly useful are enterprise-oriented. as a consumer you never know how effectively these models can write code. keep that word -- you've got to keep the word enterprise in your head because that means it's not you. i'm going to keep a running list of some of the best ai use cases we've heard about. some of these have already been out there for a while starting with the big generative ai platforms. there's a free version of chatgpt but open ai he makes revenue from chatgpt plus subscriptions as well as higher price offerings for enterprise customers. there's that word again. higher tiered gemini and claude offerings cost roughly the same amount plus microsoft's co-pilot functionality and adobe's firefly tools have been part of the product suite since late last year. those are both moneymakers. but now we're starting to see more compelling use cases of ai popping up i want to walk

through the ones we heard from last night. last night we had salesforce ceo marc benioff on the show and he told us how his agent force. ai platform is starting to gain traction. agent force helps companies create fully autonomous ai sales and service agents. on last night's show and really kind of exciting to tell you the truth benioff talked about some of the companies that have already deployed agent force in & seen meaningful results. that includes the number one payroll processors, adp, the restaurant reservation platform open table. marc's most compelling samples were wyndham hotels and resorts and wylie, the college textbook company. because these companies are able to use it to handle seasonal demand trends that in the past would force them to do a lot of seasonal surge hiring. very expensive. bad for gross margins. they don't have to do that anymore with agentforce. here's how benioff put it. >> let me give you another great example of wylie, the textbook

company who's also using agentforce. they have incredible seasonal demand right now when kids are going back to school. and they're able to use agentforce to directly expand their customer service capability. and instead of hiring or trying to surge their customer service organization and train all these folks, which by the way is what they've done in the past, now they've able to just use agentforce to take that additional capacity. >> what a great explanation of what i think is something we'll be talking a lot about when we get out to dreamforce september 17th. now, how about the use cases nvidia mentioned on last night's conference call? these are companies that are all -- they're all using ai and are already seeing results right now. so here are some have software vendors. amdoks. service now. s.a.p. that's a giant company that helps coordinate technology i.e.

enterprise. snowflake. electronics manufacturer and accenture. another aggregator of concepts that goes to companies to help them figure out how to integrate tech. nvidia also called out, quote, every auto maker developing autonomous vehicle technology. by the way that's a big deal because there have only been a couple automakers before this. plus nvidia's microservices call mim which allows them to run ai models on high-end chips are being used by lowe's, uber and saudi aramco. at&t apparently realized 70% cost savings and experienced an eight times latency reduction by making it slower. this speeds it up. by using its platform. went through all these examples on the call we're talking about ai powered chat bots which is also by the way the agent power that marc ben yor was talking about generative ai co-pilots and agents that help build new applications and enhance employee productivity. for example, am docs used nvidia's technology to reduce customer service costs by 30%, very impressive. wiztron, that electronics

manufacturer i mentioned, using amani verse to better plan factories. you make changes in amaniverse to test what will happen in the real world helping them to cut back a lot of waste. that's that digital twin thing i talked about. the automakers love. ai because autonomous driving requires massive amounts of computing power. last week amazon ceo andy jassy put a post on linkedin where he noted that the company's in-house generative ai assistant for software development amazon q can help software engineers by doing the most tedious but most important as tasks like updating foundational software. specifically with amazon's in-house generative ai assistant software developers can take i aproject that usually takes 15 developer days and get it done in a few hours. there's something that i think is tangible. apparently amazon has already saved the kwiequivalent of 4500 developer years worth of work. jassy said they have enhanced security and reduced

infrastructure cost providing an estimated $260 million in annualized efficiency gains. bingo. bottom line, next time you hear someone ask what ai's actually being used for you can tell them that big established companies are already seeing huge cost savings from deploying this technology in part of their business. and believe me, when i say this is just the beginning of what i expect to be a very, very long list, pay attention. this is not khchimeraical. >> caller: i know how hot under the collar you are that ford will not start a buyback program. but i read that based on the ford family's unique stock ownership structure the only way they'll ever return value to shareholders is through regular and special dividends. this reminds me of a phrase you've used in the past, which is getting paid to wait. when you're on campus in miami you said ford was a company that you liked long term and regarding the share price you said "i can take the pain, can you?" ford has an excellent yield but

by closing your position in the travel trust and advising us to stay away are you suggesting that your philosophy of getting paid to wait does not apply this time and if not do you no longer believe the company has a bright future? >> this is just a great question. and let me tell you what made me angry besides the fact that they didn't do the buyback and the stock is the cheapest, one of the five cheapest stocks in the s&p. it's that they keep having problems making cars. and making trucks. it's the warranty problems that kept me from embracing it any longer. it was too hard when i keep reading about the billions of dollars in mistakes basically they're making and i found that to be unacceptable. listen, established companies like amazon, apple and meta already are seeing huge cost savings from deploying ai and i think that list is only going to get longer from here that means exploding gross margins. much more "mad money" ahead including any peost-earnings exclusive with gap. i'm hearing what the new gap looks like with the ceo.

and you know i think he's doing a good job. then few things in this business are more satisfying than outfoxing the short sellers. i'm selling some of the names of the stocks that did just that. and all your calls rapid-fire in tonight's edition of the "lightning round." so stay crwith cramer.

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the strongest numbing pain relief available. it's the only solution with two max strength anesthetics for fast penetrating relief absorbine junior pro. nothing numbs pain more. tonight after the close of the market we were supposed to get results from gap which has been performing very well the past year thanks to the leadership of new ceo richard dickson. this morning somebody posted the company's numbers on the website so we got the quarter early and wouldn't you know it gap's done pretty darn well. it's all the more impressive when you consider just a few years ago gap was in terrible shape now it's very much in

turnaround mode so can it keep climbing let's dig deeper with richard dickson president and ceo of gap to learn more. mr. dickson, welcome back to "mad money." >> jim, thank you so much for having me again. >> okay. so richard, it's been a year and a week since you took over and if you can give us your reflections from when you took over till now we'd love to hear. >> first of all, jim, it's been a very exciting year, as you know. and certainly a successful quarter. it's another successful quarter. we exceeded our expectations. net sales up 5% growth which is really, really solid and it's on 5% less inventory. 500 basis points of gross margin expansion and we also expanded our operating margin by 490 basis points and you know that is a new narrative for gap inc. six consecutive quarters right now we've grown market share. so it's really indicating our customers are responding well to our brand reinvigoration efforts. we've been working very hard as a team to drive brand purpose,

brand relevance and drive brand revenue, and ultimately the results we're posting, another quarter of successful positive comps is demonstrating we're actually doing what we say we're going to do and we're very confident as we continue to drive this strategy. >> let's take an important category for you, dresses. something tangible about how you're doing. >> category growth is really important in the context of our strategy. we've gained share in categories that are really important to the company. denim. dresses. number one dress business in the country right now with old navy. also number one brand for kids and baby with old navy. we feel really confident particularly in women's. the team's been focusing on really reasserting old navy's style authority. the gap brand has driven seven consecutive quarters of growth in the women's category. the marketing that we're driving is really resonating. i know you're showing our new get loose campaign and our back

to school campaigns with gap. and those are the type of efforts that really drive relevance and revenue and you're going to continue to see much more exciting work coming from our portfolio. >> i can tell you're a man of your word when you came in first i said banana republic. you took me recently to a beautiful banana republic which is stellar. literally top to bottom. tell me where that brand is because i know that had flat numbers. that's not appealing to you. but it's going to be supercharged by what i just saw. >> first of all, jim, we really appreciated you taking the time to visit our new store in soho. as you saw, that store is really the first full-force expression of the new brand identity, and we're making progress with this brand. first of all, it's also a very important brand in our portfolio. it represents nearly $2 billion in sales. it's focused on the premium lifestyle space within our portfolio. we've been making adjustments on pricing, on assortment

architecture. we've been implementing new merchandising strategies. as i shared with you very transparently, our men's business is in a stronger position right now than our women's. so we've got work to do. but i am very confident in this heritage brand that we can really unlock it, our potential growth in the future. >> tonight we had numbers from lululemon. they weren't that bad. but i know you said on your call that you're gaining confidence in the turn at athleta. i go to your stores athleta and they're not -- i just can't imagine you actually like the way they look now. but you have a vision of what could happen. tell me some of it. >> well, look, we are very transparent in recognizing we have work to do across our fleet. in our store experiences. but to your point, i really am gaining confidence in athleta. our team has been working so hard to reset this brand and set this brand up for sustainable growth. net sales for the quarter were down 1%, but we are also lapping

very heavy discounting from last year. and underneath the hood there's really good progress being made. we successfully are broadening our customer base. we're seeing better sell-throughs at full price. our new marketing is gaining traction. our fashion product is resonating. so we're really starting to feel like the turn is upon us. and confidently i can tell you we now expect to see positive comps for the remainder of the year. this brand is one to watch. we're setting it up for sustainable growth in the long term. it will be i think -- >> how is that possible? positive comps? honestly, i'm not kidding. how is that possible? >> because we've been working hard. what do you think we're doing here, jim? >> no, i don't mean it like that. that's so exciting that you can do that. because that just says in one year and a week we have clear visibility for every single division, flagship doing great, old navy so important. i saw banana republic with my own eyes. and i have to go back to look

athleta -- i'm missing something with athleta. but you see it. so dlfr, i must see it. you use terms like -- you're talking about trend right. a lot of people just talk about newness. is there something beyond newness that you have to do? >> newness is incredibly important no matter what brand you're operating, but particularly in the apparel space. innovation is also a big part of the fashion quotient, if you will. we've been really well known for basics across you are o'portfolio, we've been dialing unthe fashion quotient, and it's really important to keep consumers engaged, to keep people interested you have to be interesting. so we've been driving a lot of that idea through our brands. design-led innovation is a really important part of our reinvigoration strategy. at the end of the day product has to look, feel, and present with great value. and you can see it in our

inventory. you can see it in our stores. you can see it online. our brands are expressing new great storytelling through better product. and we're seeing those results show up in the scoreboard. it's also really encouraging. i might mention this. that we've seen growth across all income cohorts. which means we are really resonating, our brand and our proposition is resonating with consumers and we think, again, we're headed toward the right direction of unlocking the incredible value of this portfolio. >> and back to school. obviously, what you just said, back to school's doing very well. >> we love back to school. first of all, marketing has been really strong. old navy and gap -- it's been a good back to school, and we believe it's a great runway into the back half of the year. >> well, richard, i have to tell you you're a bit of a miracle worker. i've always cheered for your stores. you had three ceos. i know they all did their best. but that wasn't good enough versus what you're doing. richard dickson, thank you for

showing me around banana. thank you for fixing an icon. how about that? richard dickson, president and ceo of gap inc. so good to see you. >> thanks, jim. >> "mad money's" back after the break. >> announcer: coming up, hit us with your best shot. an electrified fast-fire "lightning round" is next. ( ♪♪ ) sometimes, all the tenacity and grit in the world... ...can't overcome the boundaries we face. ( ♪♪ ) so morgan stanley is partnering with the women's tennis association to remove them. ( ♪♪ ) because this game is for everyone. ( ♪♪ )

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it is time. it's time for the "lightning round" on cramer's "mad money." rap'd-fire calls, say the name of the stock, buy buy buy, sell sell sell.

play until this sound. and then the "lightning round" sofer. are you ready skee-daddy time for the "lightning round" on cramer's "mad money" start with pat in north carolina pat. >> caller: hey, jim, thanks for taking my call this evening. >> of course. what's going on, pat? >> caller: adma. would love to hear your thoughts. >> this is a very speculative situation. it is up huge. i don't know whether i'm coming in at the right level but i have to tell you anytime there's immunity-compromised patience there's some big money down the road. it's hard to talk money along with this. but i'd love to have them on the show. i think they sound like they have something breakthrough. let's talk to faddi in ohio. >> caller: mr. cramer, thank you for taking my call. and thank you for your guidance a in our u.s. economy. >> you're very kind. how can i help? >> caller: i love your show and god bless you and your associates. >> thank you. >> caller: i'm a first-time caller but a very long-time listener.

my stock is about usa rare earth mining, mp materials corp. mp. >> i think this is one of those situations that's very difficult. they need to make a lot of money, and they have been trying. we want rare earth to do well but in the end we have to have companies make money and if they don't pull out of the tailspin of losses then it just doesn't matter. and that's where i am right now on mp. it doesn't matter. joseph in florida. joseph. >> caller: hey, jim, boo-yah! go eagles! >> go birds. >> caller: let's go! so i have a great question for you in regards to stock ticker dcth. i wanted to find out if it's time to invest or should i wait to see -- >> there's no investing -- liver cancer they're look at. there's no investing. at this point it is speculating. and i think you can certainly speculate on any biotech that you want.

but please just understand you have to be able to lose a lot of money if you're going to make a lot of money. and that, ladies and gentlemen, is the conclusion of the "lightning round"! . >> announcer: the "lightning round" is sponsored by charles schwab. coming up, how do you like me now? stocks that hit the skids before paying off. next. okay, team! oh, thank you so much i couldn't have done it without you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns?

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few things in this business are more satisfying than outfoxing the short sellers who bet against one of your favorite stocks that then runs higher breaking free of the negative rap, shedding the shackles of poor performance. ♪ hallelujah ♪ that's how i feel about best buy, the consumer electronics chain that reported much better than expected sales this morning defying the predictions of those who called me a moron when we bought the stock for the charitable trust. they said we were buying the next circuit city, a flameout

from yesteryear destroyed by amazon. after this excellent quarter i think it's all coming together for best buy because the quarter had what's known as better than expected cadence, key word cadence, meaning sales improved into the end of the period. they even gave you a guide up. the quarter was about thor than july. the ceo told us in a very confident confidence call, quote, we delivered strong results in our domestic tablet and computing categories. those two categories, by the way, put up 6% same-store sales growth i wi bodes well for back to school season and the new ai entabled f abled pcs that will ship in volume this quarter. the bears believed best buy would lower estimates thanks to its appliance exposure. but the good news is the computing part of the business trumped the softness in appliances which had been such a drag. the stock shot up 14%. with a little momentum i bet it can go still higher. we saw something last night, i don't know if you caught it, we

had a great -- we saw even boater from affirm. that's the buy now pay later kingpin which operatored a stunning number after the close. now, leftchin he talked last night and made it crystal clear his buy now pay later business is best in show. the big worry here had been that the bigger arm's business gets and it is getting big including credit card the dicier the loans would be. that turned out not to be the case. as max said on the conference call and i quote in terms of credit just a friendly reminder to everybody these numbers are not an accident we decide what we want to see end quote. he went on to say, quote, what you see today are the numbers that we wanted to have and we're happy with that. so much for the bad loans theory. this company will be wildly popular. i think that it can still go higher. 10% of the float is short. that's way too much for a company that's growing this fast with really excellent risk control. those people will be wrong. crowdstrike which we heard from earlier in the show back on july 19th the cybersecurity company

put out an update that caused possibly the largest i.t. out nj history affecting millions of pcs worldwide. it was a major blow for a company that previously had a pristine reputation so you might have thought it would translate into a hideous quarter, would customers really stick with crowdstrike after such a massive fum snbl but the quarter turned out to be excellent with some huge contract wins including a nine-figure deal. ceo george kurtz worked nonstop to ameliorate the damage. and it worked. yes, he'll have to offer some concessions to get all the business he wants this year but there were many people who told me this company was kaput. clearly it's doing just fine. the resilience the integrity, the quality product saved crowdstrike from an ignominious moment. instead they came as close as possible to turning lemons into lemonade from this disaster. it was up most of the day. for shareholders none of these names were without risk but what matters is the payoff was sweet. because the people running these dpz are tireless and relentless in their drive for excellence,

not to mention customer satisfaction. successful businesses put customers first. when they do you get these kinds of incredible gains but only if you're willing to be a believer. i like to say there's always a bull market somewhere. i promise to try to find it for you right here on "mad money." i'm jim cramer. see you next time. i always look for stuff that is breaking the mold of what's out there today. so we are a little more expensive. i'm gonna go out! it drives me bonkers. you want a participation trophy. what we have here is not yet a business. i have put my blood, sweat, and tears into this. i love these guys! oza: i'd like to give you an offer, but you may not like it. ♪♪ narrator: first into the tank is a product to help you survive the most crucial hours of an emergency.