tv Mad Money CNBC November 16, 2016 6:00pm-7:01pm EST
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it's a fricassee, pete. >> he can't wait. >> cisco holds 30 bucks. giddyup. >> i'm brian sullivan. "fast money" tomorrow "fast mon" "mad money" with jim cramer begins 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 some money. my job is not just to entertain but to teach, educate, put in perspective. so call me at 1-800-743-cnbc or tweet me @jimcramer. there are wacky bids underneath all over the place, and they're making for far more orderly stock market retreat than you might expect after this remarkable rally. hence why the averages have
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failed to get crushed, which is what you'd expect after a move of such great magnitude. dow backsliding 55 points. s&p declining 0.16%. nasdaq rallying 0.36%. it was indeed a benign selloff. before i give you some examples, let me explain the consent of bids underneath because this is a technical term used by professional money managers. i want you to understand this stuff. these professional money managers have actual experience in buying and selling large chunks of stock. they don't just do the analytical research about why a stock should be liked or disliked. that's what we usually talk about on "mad money." now i'm going to talk about trading mechanics. a bid neeunderneath means as st sinks, buyers are lurking and they're ready to pounce. how do you know they're there? if you're an smusinstitutional trader you're often asked for what is known as a picture, meaning what is the actual
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supply and demand balance in a given stock before you pull the trigger. so what does that picture look like when a lot of stocks in this market? let's start with the first example of my bids underneath situation list. disney. see, if i wanted to buy disney in size, and that's another technical term that means if i wanted to buy, say, at least 100,000 shares of disney, that's size. i would ask my trader for a picture beforehand. they'd ask around to various brokers and in this case they're likely to reply, jim, it's much better to the buy side, meaning there are more buyers line the up to purchase the stock than sellers willing to let ago. given that disney stock has had a nice move since it reported, it's an encouraging stock. now, if the stock comes down, these buyers will be ready to snap it up. why? because they're lurking under
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yaeth. so my trader would come to me and say, jim, it's so much better to buy that we might actually have to pay up. translation, if i really wanted to get in all my disney, all my 100,000 shares, i'd have to bid aggressively, meaning i'd have to get in front of other buyers by putting in an order above the lurkers. if there were tons of equally aggressive buyers, i most likely have to lift the offer. my final technical term, meaning i'd have to move the stock itself by paying up from the last sale and taking whatever stock's out there for sale. even if it's all the way up to get in my 100,000-share order. and that's how demand overwhelms supply. it's how stocks like disney can go ever higher even on a down day. it rallied $1.42 in that process. the lurkers stopped lurking. they paid up. they lifted offerings, and they took the stock. so what transpired at dizmy to make traders want to lift the offer? why were they so willing to do
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it? a week ago this stock was swooning on concerns that espn's business was losing subscribers. these concerns were not alleviated by disney's earnings release, the press release. but in the q&a portion of the conference call, ceo bob iger said he was feeling more bullish about espn lately and there were encouraging signs connected with the business. today deutsche bank upgraded disney from hold to buy, giving big buyers the conviction they needed to step up from where they were lurking, lift their offers, take the supply, and move the stock. so even when the market turned down, this stock didn't go down. it didn't go down because the lurkers underneath and the more aggressive buyers who decided we can't wait any more for disney's stock to come n. the opportunity was just to great. they didn't want to miss it, so they took it. two weeks ago there was a lot of tepid praise for the quarter reported by starbucks.
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52 bucks it traded down to. now, starbucks has rallied back above 55 bucks. the picture looks better. how much better? bruce kachish changed his tune and said the momentum is now with the bulls. that es those lurkers paying up even in a down tape, saying that whatever people disliked on the call may be less relevant than all the good that's going on, especially in china as ceo howard schultz told us right here when he came to the show. then there's tjx, the discount retailer. yesterday this company gave you a bullish conference call, although management still gave you its famously cautious guidance. somehow this time the guidance was viewed as gospel, but buyers were lurking underneath. today the sellers didn't come back, forcing the lurkers to
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lift offerings and take the stock ever higher. it closed plus $2.90. this was the same stock that went down yesterday. same information. lurking. how about uber discounter target? the giant chain had missed projections for the last couple kwaers and when cvs reported its miz ral results, so the stock of target didn't participate in last week's great retail rally. in fact, it was heavily shorted or bet against going into today's report. but, bam, it was a strong report, and those who wanted to buy it were in a furious battle. it was like hand to hand combat. furious battle with those who wanted to cover their shortages and the ones who were betting against the company had gone awry. the result? the stock rocketed up more than 6%. oh, and make no mistake about it, the guidance was so good that i expect a second-day move in the lurkers underneath will probably have to pay up again to get in their positions. there are lots of stories like
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that out there these days. people were perplexed about the ruls from illinois tool works and caterpillar so they told those stocks down when they reported. but ever since the election, there have been bidders underneath. you can see the positive action pretty much every day. what looked like obvious instances to cut and run turned out to be classic buying opportunities because of the trump rally. remember, this market regards trump as builder in chief even if he had to take down his buildings from myriad buildings because of conflict of interest. i can't believe how much caterpillar must be killing the short sellers here, especially when the strong dollar, right? that was before trump's election. now post trump, cat's widely held as the stock to own. why? because maybe trump will make the federal highway administration use only american equipment if it's going to get the money it needs after trump issues the $500 billion, 30-year
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make american highways great bonds. it could easily happen. by the way, it's my plan. i'd like to get some credit for it. let me give you one more example to round things out. yesterday, just yesterday, "mad money," what did i do? i said, hey, there's this compa, its stock is too high, nvidia. the stock had just moved up 20 points and the best earnings 2016. all i did was say i don't think it's done. but that it should come in. i saw there had been buyers lurking after that run. i sensed that they would be impatient if it didn't pull back. but even as much as the nasdaq opened lower today, nvidia hung in. it was unchanged. next thing you know, the patience wore over the lurkers and they frantically started lifting offers and the stock finished up more man $5 on
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nothin nothing. when the s&p 500 drive stock down off of some event, they prop up the stocks they're lurking under and then the patient ensz wears off skpt buyers start to compete with one another, pushing these stocks higher. here's the bottom line. buyers can't wait for this market to come down. they're stepping up each day for a host of stocks. the result? i always say at the end of the show there's a bull market somewhere. right now there are almost too many to count. elaine in new york, elaine. >> caller: hi, cramer. thanks for taking my call. for about a decade, i've own ten na pharmaceutical, an israeli pharmaceutical of generic and specialty drugs. it's done quite well but the last few months have been disappointing i'm wondering whether possible drug deregulation and medicare's desire to control cost all might give more upside. or whether the risk of trump's tariff might mean more down
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side. >> generic issues. they paid $40 billion to allergan which owns 10% of the company. so i say teva, i don't know. if it can get -- back -- no, no. i would sell this tomorrow. there is something -- this is not working out. bob in new york. bob. >> caller: hey, jim. how are you? >> i'm good. how about you? >> caller: not bad. first of all, you're our family's financial gps. wanted to let you know that. >> thank you. >> caller: and over the past week, visa has taken quite a hit. i'm thinking in terms of a trump administration, quite frankly in any environment, visa seems like a company that would thrive unless the fundamentals of the company have changed, and i don't see that. >> bob, it's total flawed funds. here's what happened. visa, mastercard, and american express, they're considered to be faux financials. they're what you buy when you don't like the banks but you want to show that you own financials if. banks are good, you got to sell something. so they're selling the faux
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financials. i agree with you. we think visa is a buy down here. i think you're right. patient ensz. dorothy in massachusetts, dorothy. >> caller: booyah, jim. good to talk to you. >> same. >> caller: i need some of your wisdom, jim. i want your opinion on two stocks if i may. >> two. >> caller: first one is new york mortgage trust, symbol nymt. the other one is empire state realty group, efrt. what do you think, jim? >> not a fan of either. you're reaching for income. i don't like to reach for income. i know people want to get that yield, but i don't like to do that. i think these are red flags. if you want yield, you got to stick with some of the higher quality real investment trusts that we talk about or at this rate just wait. you're going to get a chance for better yield. they're there, right under the surface. they're lurking. they're the buyers and they're putting bids in underneath a
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stocks in this maerkt. on "mad money" tonight, shares of netflix haven't been putting up marks. after hitting an all time low in february, has the company turned its grades around. then warren zevon. and helping thousands of businesses have a bigger presence online. can wicks help you score some clicks? i'll serve the ceo. stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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more and more of your life is going digital. you can order virtually anything via amazon. you can tweet an emoji to get a pizza delivered. lately even education at last is starting to go digital after spending years still stuck in the stone age. take chang, i company that's transformed itself from a textbook rental service. selecting classes. last week, chegg reported one of its final quarters before the transition is complete. they delivered a higher than expected rev flew. we last spoke with chegg's ceo in february. and all but a few of us had given up on it. since then it's given us a phenomenal 127% gain. we got to ask can it keep climb something today the company is hosting its fir analyst day ever. let's check in with the ceo. mr. rosenzweig, welcome back to
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"mad money." you said don't give up hope because you have a smarter way to student. >> we do. first of all, i want to thank you for the opportunity as a small cap company to have somebody like you give us a forum to explain the transformation. makes a big difference to us and our employees. >> you're quite welcome. >> things are going extraordinarily well. every bins is being transformed. education has taken a long time to do it. when you look at what's going on today, which is the demographics of the student today is different. there are more non-white students than ever going to college. 72% of all college students have to borrow money. 25% of all college students have to take a class in writing or math just to be able to start to get credits. >> where does chegg make its fees in this and how does it help people? >> clearly when they self-report, 90% say they get a better grade. 84% say they master the subject better. what we do is help them pick a
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right college. we save them money on textbooks. that was the original business. but we're building this giant student graph which is where you went to college, what your major is, where you struggle, where you need help, what your interest is proernlly. we can use all this data, and we make money by advertising through subscriptions and through ee-commerce. >> one of my favorite ones is for career. how does my major affect my career choice? i can't tell you how many people say if i major in x, what will that allow me to do? i mean they shouldn't have to ask. there is no forum. this is it. >> you know, it's amazing. given that $10 billion is spent annually to recruit kidding coming out of college, there has never been a site for it or data for it. we now are building the opportunity to be able to say if you go to, for example, a college and you put in your major, we'll tell you where other kids who went to that college and took that major, what their career paths have been, what their earnings have been, how much money you can borrow in order to do it.
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we'll match you. we'll tell you which skills you got and which squirrels you'kil missing and then match you to that skill. no one has ever done this before. >> you're catching people at the high school level. have you found people go all the way, high school through college and then go through this counseling? >> we now reach 40 million unique visitors a year. so imagine easy , if you have a college kirksd the chances are they use easy bid which does your citations and bibliographies. 30 million students or 30 million people use it a year. it takes what used to take hours, which is doing your citations and bibliographies and does it automatically. what we can learn about you is what class you're in. what paper you're writing tells us what textbooks you use and tells us whether you know how to
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write. we can actually teach students to write now. >> what i thought was interesting is it's got anti-plagiarism. how does that work? >> the funniest thing is if you talk a little bit about the election, when melania trump gave that speech, we were able to know in five minutes exactly where that speech came from. because we have that 1.4 billion citations, it uses algorithms and identifies the original source. >> at college, one of the jobs i had was i actually to check for plagiarism. that was a paying job. i was desperate for money. that job is gone with chegg, right? >> that really is "mad money." >> but you don't need that with your software. >> you don't need it anymore. what chegg wants to be able to do is step you every help of the way. our chegg study, which is our most explosive product, it gives you step by step solutions, has this giant expert answer network. 7 million questions that have been asked and answered. we answer within four hours on any new question. everything we're doing is trying
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to help the student get a better grade, learn the subject, master it and get a job. >> the total adjustable market of the company, because of all these additions -- >> much, much bigger. just the learning services online, 80% of college kids use a service outside the classroom to help this learn. our market went from just textbooks to 30 on a much higher growth, much higher margin and more profitable business. >> you've made this into a much bigger and better business. which is why the stock doubled and i think can go up far more. that's dan rosenzweig. chairman and ceo of chegg. "mad money" is back after the braid. >> announcer: it is one of the most surprising outcomes of trump's rise to power. one group of stocks has been soaring. cramer finds out when "mad
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money" returns. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.
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always discreet for bladder leaks. we've talked a lot about how donald trump's stunning victory has caused a massive rotation in the market as investors have been forced to swap out of stocks that benefit from a democrat holding the white house and swap into the stocks of companies that thrive when the republicans control the whole federal government. so far we've seen some very extreme moves. the bank stocks have come roaring back. hey, some of these were up about 15% until today's selloff. and the industrials are on fire. while they've already run a lot, i think these rallies make perfect sense. sometimes the pendulum does swing too far and there are a couple of groups where i think the stock market has overreacted to the election. i'm talking about the private prison operators and the gun makers. the prison stocks have rallied
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harder than any other group after trump won because both president obama and hillary clinton hated the for-profit prison business while the gun makers got slammed. you have to remember that gun sales surge whenever a democrat wins the presidency has people try to buy weapons before more restrictive laws are passed. firearm aficionados don't feel the same kind of urgency. though know nobody is going to try to take away their guns now. while there's some logic, i feel this is a case where you don't want to take your cue from the crowd's immediate reaction because to me, the crowd seems to be very short-sighted. let's start with the private prison stocks which had some insane post-election moves last wednesday. the two big publicly prison plays are corrections corporation of america, which is in the process of rebranding
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itself as core siecivic and geocorp. corrections corp. was even more extreme. its stock shot up 43% last wednesda wednesday. since then it's advanced another few cents. let me give you the background on these companies. corrections corp. is structured as a real estate investment trust. it's the nation's largest owner of correctional, detention and residential re-entry facilities. geogroup is another real estate investment trump that leases and operates prison and detention centers. just to give you some context, if you've seen the last couple of seasons of "orange is the new black," they were a pretty vicious critique of this industry. both corrections corp. and geogroup put up some terrific performance the last time we had a republican in the white house. and at least for a while, they did pretty well under president obama too. however, both stocked peaked in
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early 2015 as the industry started to come under scrutiny. they get paid for inmate. some judges have been caught taking bribes to give people the harshest sentences. you can see how there might be some perverse incentives for some of these operators. that's why this past august, the obama administration announced that the justice department's bureau of prisons would be phasing out the use of private prisons. wow, that's a big chunk of business for these companies, which is why corrections corp. fell 35% on the news and geogroup plummeted. that's selloff was probably an overreaction since these companies make most of their money from the states. now, fast forward to a week ago after trump's surprise election win, and these two stocks snapped right back. the reason? some of it is because trump ran on a law and order platform. but mainly it's about illegal immigration. corrections corp. and geogroup
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both have major contracts with ice, immigration and customs enforce many. given trump ran on a platform of mass deportation, that could mean a lot of additional business for these companies. i've got to wonder, is geogroup really worth 20% more because trump was elected? is correction corp. really worth 40% more? trump has already started moderating his tone with the deportation issue. so far he's said they're only going to start with illegal immigrants who are also criminals. it the not clear what he'll do after that. plus obama has actually been very tough on illegal immigration. he's deported more people than any other president in history. second, while criminal justice reform is often seen as a democratic issue, it's one of the few years where we could see some bipartisan compromise in washington because a lot of republicans want to fix the system too if only because we spend so much darn money incarcerating non-violent offenders. so if they're looking to cut costs, i wouldn't be surprise if they start with these private
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prison contracts. granted a trump presidency is definitely better for private prisons than a clinton presidency. well, certainly. after all, she campaigned against them. but in the end, these companies have very high debt loads. they don't have that much cash and they won't have sky high dividend yields, which i see as a big red flag. corrections corp. has a 10.5% yield. geogroup has an 8.5% yield. and whenever the yield is that high, you need to be very concerned that a dividend cut could be in the cards. worst of all, while they may not be shawshank, they're both on the wrong side of public opinions. if the prison stocks rallied too far post-election, i think the gun stocks sold off way too hard. stern ruger plunged last wednesday.
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that's a 14% decline. then it sank to 48 on thursday for a 12% decline. although since then it's bounced back to 51%. meanwhile, smith & wesson lost 15% of its value last wednesday and tumbled thursday. however, spimith & wesson bounc back to 24 on monday and is still sitting there. the story with the gun makers is much easier to understand. as i explained earlier, these stocks always rally in response to anything that might cause more gun control legislation because it makes many people want to buy lots of guns while they still can. for example, every time there's a mass shooting, the guns stock surge higher since these terrifying events make the public clamor for stronger firearm regulations. for the same reason, both gun stocks have been rallying going into the election because the polls said hillary would win and hillary is pro-gun control. when trump won skpt republicans kept both houses of congresses,
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these stocks plummets because there's no short term reason to buy lots of guns. that krinlly short sighted. while fears of gun control laws might bolster sales in the near term, any actual gun control efforts would hurt these companies long term. but now we know that's not going to happen for the next four years. and however you feel about the politics of it, and remember, we leave that at the door here on "mad money." it just doesn't help us. we know that what happened is ultimately long term good news for stern ruger and smith & wesson. plus given the recent selloff, both stocks are very cheap at these levels. so we have to make decisions based on the stocks. you muight not want to buy a gu, but what i'm saying is the stocks are cheap and if someone wants to try to make money buying gun stocks, that's fine with me. here's the bottom line. sometimes the market overreacts. after trump's surprise victory, the private prison stocks roared higher, but i don't think a
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trump presidency fixes their long term problems. meanwhile the gun sales got slammed. they may not get a short term bounce, but they've got long term stability, especially smith & wesson, which has fallen way too hard since the trump rally that is so far ashoed these stocks. let's go to ricky in alabama, please. ricky. >> caller: yes, sir. jim. waur eagle, ak steel, us steel. what do you think it's going to do since trump's president? >> these have had a big move. they also have the same time have better opportunities if we do put some more tariffs on asian steel that's being dumped. i think you have to wait. when the quarter is reported, i don't think we're going to be excited about the stocks after they've had such a big move. i think you got to wait for a pullback. i think a few days from now after this particular phase of the rally wears off, you might be able to get both these stocks cheaper. i prefer to own nucorp, nue, and
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that i would buy own though it's had a big move. i'd buy that right here and buy more lower because you're buying quality. eddie in new york, eddie. >> caller: how you doing, jim? it's eddie from oceanside new york. thank you for taking my time. i'm going to brooklyn. >> what's up? >> caller: the question is i own philip morris and i notice since the election is over, the stock has been going down. i've been in this stock over 30 years. i reinvested dividends, which is a good thing but the stock has been going down and i can't seem to find a reason why. >> i'm glad you called me, eddie. the reason why they're going down is because they are regarded as bond market equivalent stocks. instead of buying bonds, people buy those because it's steady, slow growth, but they pay a good yield. now as the interest rates go higher, people would rather own
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bonds than they would owned the dividend extreme that comes from those tobacco companies. that's why they're going down. i say they're fine. as a matter of fact, i think p.m. is very attractive here. the market is a lot of things but nobody ever said it's a completely logical beast, at least in the short term. i think we've seen overreactions to trump's surprise in the big win in the private prison and the gun stocks. i'd be wary of investing in prisons. the gun stocks are beginning to show some real value. much more "mad money" including my exclusive with the ceo of wickes.com. has it figured out a template for profits? then despite today's decline, does the post-election rally continue to have legs? and dial for dollars. i'm taking owl your calls rapid fire in tonight's edition of the lightning round. so stick with cramer. aowl your d fire in tonight's edition of the lightning round. so stick with cramer. lowl your rapid fire in tonight's edition of the lightning round. so stick with cramer. lowl your rapid fire in tonight's edition
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of the lightning round. so stick with cramer. wl your ca rapid fire in tonight's edition of the lightning round. so stick with cramer. l your cald fire in tonight's edition of the lightning round. so stick with cramer. your call fire in tonight's edition of the lightning round. so stick with cramer.
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while many tech stocks fell out of favor after the election, most investors started selling them as a source of funds to buy the kinds of companies that are likely to thrive under a trump administration. there were some exceptions that mlged to keep roaring higher. take wickes, wix.com, the cloud-based web design company that helps individuals and small businesses create their own websites much here's a stock that's more than doubled for 2016. it's up more than 70% since we spoke to the ceo five months ago. wix has been able to buck the rotation out of tech in part because they reported a very strong quarter last thursday. the company delivered a smaller than expected loss with higher than anticipated revenue. management raised their full year forecast for 2016. that's why the stock jumped from 42 up to 47 on the news. they offer free service where
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they'll help you build a website and they also sell premium subscriptions where you get to use more advanced features. it seems like business is doing very well here. so we have to ask can the red hot stock keep roaring through the end of the year. let's take a look with the co-founder and ceo of wix.com, find out more about how his company is doing. welcome back to "mad money." good to see you, sir. you created quite an impression when you were on last, and i know a lot of people bought the stock and a lot of people went to the website because they wanted to know how to design their own site. 94 million people? >> 94 million users, yes, absolutely. >> that's dramatically more than you when here last. >> we're going very fast. mort y the more you get a product better, there's more roonl m to grow. >> people can go to the site and see all the plans. i was most intrigued by something you didn't seem to be
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emphasizing, which is this artificial intelligence wix. >> yes, absolutely. we launched a new product called wix adi, which is we use artificial intelligence that helps you design a website. we learn what works, what don't work. we take that information, using really sophisticated algorithms. it's super fast. you can build a website within five minutes in this technology and it will look good and work well. >> the reason i ask is i'm sure people who design their own sites and everyone likes a bargain, but they may be doing things wrong that this artificial intelligence would say, immediately, that has cut back business when you do that. >> what it does is it will not let you actually build the wrong things. it will build for you the right things. and in some places we just say the conversion, making our customers' businesses more successful. it's a new product, still very young. it's going to be incredible.
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>> when i looked at it, i said that's kind of what you really need because you will make mistakes. what i thought was interesting is once you're in, there's no churn. >> well, we have negative churn. we actually get more people -- >> which is pretty amazing. >> people at wix five years ago, they actually have more websites active than they used to have. we actually have negative churn, which is really good. >> 40% growth, that must mean every single country around the world is involved. >> 198 countries for now. >> 198 countries. >> which is pretty much everywhere except north korea and a bunch of countries you're not allowed to sell in. >> let's talk about the way you get in. some might go with the $5 version where you can put ads on. but you say the most popular is unlimited. that's $14 a month. why are people selecting that? >> i think that it's the combination. it's got unlimited bandwidth, it
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makes you really build a business on top of that. i think the total value of that, which is unlimited, hosting unlimited traffic, unlimited everything, that's pretty much what brings it. >> you also talk a lot about how people get started pretty early now. i know my daughter, a student, knew wix, said this is how you do it. students use it. >> i think what we've seen in the last couple of years is we're actually now being taught in many, many schools. so high schools and colleges will actually -- wix is part of what you learn at school. and we actually go all the way to people like in the third and fourth grade that actually do homework on wix in some places. that's amazing, right? those are not paying customers. >> that's something you understand. you get hooked, though. >> well, and we also look at it that's what signified how easy the platform is, right? >> let me ask. people out here that are craft people. one of the largest companies happens to live near me in book lynn is etsy. i have to imagine etsy is filled with customers of wix. >> i think a lot of people use
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etsy and at some point want to grow beyond being on that websi website. and we have a lot of people who do both. it's not a competitive business. one is supposed to bring you your customer and the other is growing your brand. >> you're running your restaurant and changing your menu items. what program is the right one? >> well, we have one more restaurants, which is very similar priced. then you have ordering and online menu. >> you can press a button and it goes right to the restaurant? >> exactly. you can order everything from the website. everything is done. they're fully online managed for that. >> i got to tell you it's a remarkable story. when i first heard you, i said this is it because people don't know how to do it. they can pick out they want to do it. artificial intelligence. that's the ceo of wix.com. i'll tell you this artificial intelligence thing is very, very exciting. "mad money" is back after the
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you can spend hours doing that yourself ... or you can call healthmarkets ... and let us do the legwork for you - with no cost or obligation. healthmarkets has access to thousands of medicare plans from nationally recognized companies. we find the coverage that's the best fit for you ... at a price that fits your budget. and we'll do it at no charge to you. just tell us what you're looking for ... what deductibles you prefer ... what doctors you want to see. let us know if you want prescription drug coverage ... or vision care. not sure what you want in a plan? at health markets we evaluate your needs and offer options that meet them. at no cost or obligation. you can talk to us over the phone ... or meet with a local licensed agent in person. why pay a penny more than you have to for a medicare plan? healthmarkets has enrolled americans in more than 3 million insurance policies ... put our free service to work for you. at no charge. leon of california did and he says ... healthmarkets was excellent. they explained all our medicare choices and
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followed up at every level. and here's what judy of indiana writes ... medicare shopping was very confusing - if only we talked to you first! remember, you may be able to increase your benefits and lower your costs ... but it's not automatic. call healthmarkets. we help find the right plan for you. because we know you have better things to do. call this number and let healthmarkets find the right medicare plan for you - without cost or obligation. you have only weeks left call now before the medicare deadline. call now. >> announcer: lightning round is sponsored by td ameritrade. >> it is time!
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it is time for the lightning round! that's where i take your calls rapid fire. you tell me the stock. i tell you to buy, buy, buy or sell, sell, sell. we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." i want to start with tony in new jersey, tony. >> caller: booyah! >> booyah. >> caller: how are you doing, jim? listen, church and dwight. in the past 15 years, every five years that stock price has doubled or more than doubles, but it seemed to have stalled out now. >> it's out of favor. people want to own these big industrial cyclicals. they think the climate is going to be better. that's when we put church and dwight away a little bit at a time on the way down because you're right about it's long-term forecast. you are right. joe in massachusetts, joe. >> caller: jim, a big boston booyah to you. i'm calling about the company high max technologies. >> too high risk, my friend. way too high risk. we're not going to go there.
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i've seen that company miss a bunch of times. if we want integrated circuits, we're going to go with broadcom. let's go to terry in west virginia, terry. >> caller: hello, jim. booyah. my stock is bank of america. >> bank of america, thank you for sponsoring some of that brooklyn historical society. fantastic educational event last night. i think it's a buy when it gets to 18. it's had a big run here. let it pull back only a dollar. those who are aggressive, you can buy it here. by the way, they also say that morgan stanley is very cheap too. let's go to chris in california, chris. >> caller: hi, jim. my stock is newell brands. >> newell brands is liking like church and dwight which we talked about earlier. it's acting like all the different. don't expect instant reaction, but remember when we had mike polk? it's a longer term.
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mike will deliver. mike has delivered before. mike will deliver here. let's go to rick in florida, rick. >> caller: booyah, jim. >> booyah. >> caller: december 1st, ulta cosmetics comes out with earnings. what your thoughts? >> my thinking is the stock has spent enough time in the penny box. mary dylan has done a fantastic job. i think it's a buy at 240. it's one of those companies that has got thrown away because it doesn't make machinery. there's no hurry. let's go to slavko in illinois. >> caller: jim, how about a big chicago booyah? >> why not, right? right back at the booyah. what's up? >> caller: man, here's my company. hez ca. >> i'll see your hez ca and i'll raise it with idexx labs.
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the ultimate companion animal company. that's where we first heard about the theory of the humanization of pets was idexx. let's go to chuck in oregon, where my daughter lives. chuck. >> caller: booyah, jim. >> booyah. >> caller: i acquired some lucent years ago, put it in a drawer and forgot it. now it's noek ya. i'm 70 years old. does that have any upside in my lifetime? >> you got a big drawer full of other stuff you got to forget about and that includes nokia. that's in the no fly zone. i'm sorry. let's go to steve in florida, steve. >> caller: hey, jim. greetings from one brown derby happy vip to another. >> okay. how about a stock? >> caller: how are you? >> i'm good. how about you? >> caller: i'm good. i purchased a stock kiwi, and it
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was doing well until russia invaded ukraine. >> it's from cypress. we're not going to mess with that. if we want payments, we can go either western union, which i like, or why not go visa? and that, ladies and gentlemen, is the conclusion of the lightning round! >> announcer: the lightning round is sponsored by td ameritrade. em for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade.
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get your head around what's really driving the rally we've had since donald trump won the election, isn't it? i mean is it because we're more laz day fair, maybe make the government get out of the way business can do its thing? in large part, the trump rally has been tough to quantify because trump himself is a political oddity. in a typical election, you've got a democrat who wants lots of government spending, helpful to the economy, but also lots of regulation and higher taxes, unhelpful to the economy. then you've got a republican who wants tax cuts and deregulation -- helpful -- but they also want to take a hatchet to government spending. unhelpful. trump, though, wants tax cuts and deregulation and more spending, which is an unusually positive combination for growth, at least short term. and the novelty of it has been propelling many of the large capitalization stocks we follow higher. but how about the small cap
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stocks? they're also on fire. this one's on trump too, i think, because there's another big change coming that people aren't spending enough time talking about, and that is the deregulation story. i can't speak for the american people, but i know that business owners are sick of washington getting in the way. they're tired of complicated new rules and changes in health care policy and taxes that make them want to export jobs overseas to places like mexico, where they can produce things at one tenth the price by the way or maybe make them fear expanding their businesses entirely. the stocks and small kpapization companies are roaring because they can least afford the endless rules and regulations that the obama administration has put out. i don't like talking politics, but i founded many businesses myself and i can tell you that small business owners deeply fear the government. it's hard to think of a thing that government does for you. f from the perspective of a
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business owner, as i am, there are too many rules and regular laze, and too many people you need to pay to figure them out for you, too many lawyers and accountants and services you need. you got to pay them simply so you don't screw up with the government. i think these small cap companies are generally much closer to the kind of situation i find myself in both as a director of a very small company, the street, and as an owner of an inn and running a bar. if you're running a small bids like those, you don't want to do anything wrong to the point where you don't want to do anything, including expand. it's easier and less risky not too. now, look, i know the president doesn't write all the rules. they keep popping up, many of which happen at the state level by the way. some of them are way too deep to up root. and obviously some regulations are good and even totally essential if you don't want to end up living in an upton sinclair novel. but for the last eight years, small business growth has been hampered because the federal government has been focused on protecting workers and the environment and consumers, even if it means less job growth down
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the road. now, look, i totally get where president obama was coming from. he took over during the financial crisis, which was partially cause by the bush administration's ridiculously laissez-faire attitude. so obama wanted to figure many of the things that went wrong, heps all the new rules and regulations. the problem is these regulations also make it harder for business to grow, and growth is what makes capitalism work better for everybody. the fact that we're about to get a wave of deregulation is good news for the stock market. that's why i think the trump rally will have legs over time. a business person in the white house who built his career on expanding his business isn't going to suddenly change his stripes. the market has lapped up the new ethos. you know what? judging from the rhetoric so far, it may be a worthy foot race. stick with cramer.
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[tires screeching] >> flags are up. [screaming] >> hi, i'm jay leno. all: hi, jay. >> hi, everybody. how you doing? and this is a show about cars. it's fun to drive cars that are really different. >> this one's a death trap. >> oh, i see, because-- >> because it's dangerous to ride. >> and motorcycles, and well, anything that rolls... like driving a two-story building. oh, my god, strong as an ox! explodes... i love the smell of napalm in theorning. yeah! or makes noise. >> you ever run a dragster? >> no, i haven't. [engine revving] this is "jay leno's garage." >> start your engine. [wailing]
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