tv Mad Money CNBC December 5, 2017 6:00pm-7:00pm EST
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giddy-up >> love toni braxton home depot as well stay there >> qqq i think we see 150 >> guy >> again, great having you on. it's been an outstanding job discovery communications >> catch "faston" meyat 5:00 p.m. eastern. money again 5:00 eastern tomorrow. "mad money" with jim kramer begins 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 somewhere and i promise to help you find it "mad money" starts now hey, i'm cramer. welcome to "mad money. i'm trying to make you money my job is to the just to entertain you, but to educate and teach you. call me at 1-800- -- tweet
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me@jimcramer the internet gives you the ability to comparison shop for anything younger people reach for what's on sale or what can create the most exciting experience those choices are rolling the whole market a lot of investors fail to understand the implications, especially on big rotation days like we've been having the dow dipped 109 points after being strong for a while s&p declined -- nasdaq dropped 1.9% for those who have been struggling with that it didn't used to be this way. in the old days children bought the same brands their parents bought to deviate was to disobey. or question the judgment of your elders that was a big no-no it sure made stock picking easy, didn't it? whoever had royalty won, those were the stocks you wanted to buy, those were the days now it's the absolute opposite now nothing's etched in stone and consumers, well, they often
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see big brands as ripoffs. of course, some of us are throwbacks i'm a throwback. i use old spice deodorant, my grandpa used it. i got an american express card when i finished school, my father told me that's what you're working toward. i use heinz ketchup, my mom said that was the best. i buy golden's mustard, that was what was on the table. marv would tell you what to dye buy at the drugstore chocolate, hershey's cars, ford when i grad walted from college because my father drove fords. for ages this is how everyone shopped and how you were invested now it's all out the window. the foods i like, they've got
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too many preservatives the deodorant i like, too many chemicals. the shave, dollar save is sent to my house. the credit card i signed up for, are you kidding me, paypal local drugstore, wiped out years ago, replaced by walgreens, they don't know me. i have to beg for medicines if the doctor forgets to update my prescriptions. i'm waying a fortune what am i going to do? cvs. candy, buy what the local guy is making don't buy the man's chocolate t man being hershey's. most of the things we purchase, my generation, well, we surprise shopped a couple places, browsed the mall for a bargain, found what we wanted, hardware, sears had everything we check the circulars in the weekend papers for deals, sunday morning we'd flip through them in fact, at one of the more pathetic points in my life, of
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which there are multiple ones, i stuffed those inserts from 11:00 a.m. to 2:00 a.m. on saturday. it was my fault. how else could you afford to take your girl out now we search on google or buy on amazon, whatever's cheapest $24 for two at the movies. that's four months worth of netflix. ain't you people heard of uber or lyft? in this environment, unless a brand has enough -- it was very difficult to value all sorts of companies. that's why we spend a huge amount of time trying to figure out what certain stocks are worth as this next generation takes over, a lot more people than we are. what does have customer loyalty these days why do we like certain stocks? customer loyalty first things first, who's got it how about amazon prime, facebook, nice self,
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google they don't let you do fifth grade homework with it anymore these things become integral to what we do and what we know and what we are. they're all washed up, right sell, sell, sell, sell for good measure all three companies are really just for posatories of data powered by artificial intelligence and search algorithms in case of face book in fact, you could argue these companies are big data farms filled with what you tell them to be filled with. amazon has to find a way to deliver goods to you and they've created a major web service, bedrock of the cloud alpha bit has billions of hours of programming and youtube, as well as a cloud business of its own growing rapidly, facebook has the best setup they do nothing. and they provide you a platform. you've got to do all the work. you do all the copy. man, i worked at a newspaper and we had to write it we gave it away. now you have to write it and
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they profit from it. that's why fang, my acronym for facebook, amazon and well, you stretch the "a," apple, netflix and google have stuch staying power. everybody's eager to dump these stocks, hate them, out of favor. the sellers will come back tomorrow hey, you know, i've had enough of fang oh, good for you enough of the stocks, how about the companies? those are companies. they're not just fangs now you may be calling or texts people to tell them that apple stock is on its last legs, all washed up. but you're using iphone to do it and apple has its own ecosystem. have you looked at that bill even when people turn on the stock they won't turn on the product. it's got loyalty everything else, i don't want to be too generalizing, what's worked in tech in recent years involves systems that get you to
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google or amazon or facebook or apple or netflix and make them work faster and mooter and better or allows you to choose this one is best for your business ask products, including entertainment. that's tech circuit 2017 throw that away, god love you, go ahead, buy all the colgate you want that's terrific. do it, okay, do me a huge favor and buy clorox i don't drink it i like it. it makes your clothes cleaner. of course the whole industry is devoted to the consumer, not like retail suddenly stops existing lack of brand loyalty, and chains start feeling -- if i put you in lowe's, a dollar tree versus dollar general? would you know if you're wearing nike versus adidas anymore you got the picture. in this void of boring, humdrum and, yes, lonely world, like the
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psychiatrist in me, millennials have started suddenly to embrace things that create experiences so they can document their lives so that they like can be humans, and they do it on facebook and instagram or twitter they started doing it on snap. you see that stock snap's up a dollar, they must be using it kids go on carnival, airlines take you where you need to go to document your vacations with photos, anything that makes you look younger is part of the package. i know i'm oversimplifying here, but i think the ho among anization is obvious the banks trade together, they're beholden to the fed. it's not like western savings, do you really bank at the bank because your parents banked there. open an account at city, my folks loved city materials trades, yeah, because they're all hostage to china
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health care traders, bound by etf. so many professionals say go buy an index fund, it's too hard to pick individual companies. i come back and say no, it isn't. don't get away from index funds. those are fads that way i don't have to be attacked by index funds. i love them. the more rays and methods of the next generation are not unfathomable they like pets, protein, tyson foods. they like restaurants. lie like strips, that's expedia. the commonality, here we go, what is it it's the stocks they've been throwing away because they're too expensive. facebook, amazon, apple, netflix, alpha bit, should i just talk about union pacific? well, you know what? you should buy all the union pacific because, like, well, it's union pacific it's not -- now, it's why we
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keep coming back to these stocks not because we're bored, it's because that's what the younger generation uses, it's not because we're hacks. that don't know any better it's because it's what's worth something. the bottom line, if you're looking for long-term things you can call back on when the market's unsettled, remember the baby boomers no longer rule the earth. the millennials aren't hurting it as we speak, and the handful of companies they like, are the only ones that benefit from any kind of brand loyalty here that's the story for years the come get used to it if you want to be on the right side of it, better do it now or else let's to go to chuck in ohio >> caller: hi. >> chuck, what's up? >> caller: i want to know if iconic would be a good buy, if they're going to -- if honey well is going to buy them.
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>> i would postulate at a recent fuel economy, honnee wael, splitting into two aerospace, arconic is the only one left the answer is two down, ten up, i believe. let's go to peter in connecticut, please, peter. >> caller: hello, jim. >> you bet. >> caller: 20 years ago we did contracting for a company could copart i bought their stock it's smart, faith-pated. what do you think? >> this is a stock that we recommended at the -- in maybe the first or second year of what we were doing, and you know what i know it's moved up a lot, but i'm still on board i think you're absolutely right. why don't we go to august in new york. >> caller: jim, how you doing?
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big boo out to you from new york. >> okay. >> caller: my question about car max. i've been tracking this company about ten years since i heard an warren buffet getting involved that was a miscommunication. it was really geico that got involved with them also two years ago it was said he was going to possibly buy them out instead of buying some company, nuyl. >> he did buy a big one. he likes the auto dealer business so do i. there's a boutique outfit called m science. it mentioned the firm cautiously and that crushed the stock my take, i like your thinking. i would buy if i wanted to have a full position of say 300 shares i would buy my first quarter tomorrow and then build down it's an excellent company doing kplent excellent things. the younger generation holds the key to your investment needs they are the bedrock this age, that's why we focus on fang.
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not because the stocks go higher when they start going down then you say i've got to sell them because the stocks are going lower. they're real companies, the bedrock of what wall street and individuals and millennials care about. "mad money" tonight, clouds, big data, i'll spare you the buzz words, big trends, part of fang. could worries about tech and the tax code impact profits? i'll speak to a ceo of a company in real estate to understand whether this game in trend is all over facebook, apple, netflix, stocks seeing pullbacks i'll tell you how to evaluate to tell you whether to -- know how to evaluate them up to you to figure out whether you want to play i'm going to find the sharks on these stocks who says this isn't the most interactive show on investigation. last week a caller asked me about hour ex. tonight got the ceo.
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stick with fang. doesn't hurt me. >> announcer: don't miss a second of mat money. follow@jim cramer on tweet send e-mail to "mad money" at cnbc.com give us a call at 1-800-743-cnbc missed something head to mad mown.cnbc.com. ♪ let out your inner child at the lexus december to remember sales event. lease the 2018 es 350 for $319 a month for 36 months. experience amazing at your lexus dealer.
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all with an xfi gateway. find your awesome, and change the way you wifi. sooner or later rotations come to an end everything connected to hottest trends in tech sold off hard yesterday. not that anything is wrong with the companies. the senate's passage of the tax bill made a bunch of other sectors, domestic players like retailers, restaurants and banks seem more attractive the themes that were fabulous a week ago remain fabulous today sooner or later they'll come back into vogue on the wall street fashion show. they always do cone for home gamers, real estate investment trusts that provides customer with mission critical -- massive server farms. give the tremendous growth of the cloud i think the long-term story is very much intact.
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cyrus one stock tumbled yesterday. even though it bit today i have to wonder if you're getting an incredible deal here the company's latest quarter was strong and game-changing partnership with gds, chinese data firm. let's take a look a gary rotazik. good to see you, sir one of the reasons why we've had the selloff is a belief that somehow the cloud and data centers have peeked, that there's not going to be a need for anymore and that we're about as far as we've gotten you would have a better handle on that than anyone. true or false? >> false, yeah. >> tell me why. >> if you just look at this quarter, every single company, whether it was amazon, microsoft, oracle, sales force, everyone exceeded their expectations of the quarter.
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we're a derivative of that it's not slowing down. we see this, as i mentioned before, early stages of a trend that's going to go on for a decade. >> verticals are good. >> yeah, we had one of our strongest sales ever, geographies, closed 5,000 net companies. one of the strongest we've ever had. >> as big as it is in the u.s., the opportunity, china, what you did with this gds, no penetration in the cloud in china. >> you know, you have the fangs here, they've got the tabs there. so between 10 cent, ali baba while our business is growing quick, gds is the fastest growing company in the world right now. and, you know, the chinese market is really just the first inning there. >> what i thought was interesting there's cross
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pollination. >> that's right. >> we do work there, they do work here. you're at the folcrum. >> i met the ceo, willie and dan, we had several meetings we realized we're basically the same company we have a dominant position in cloud like they do we thought there was an opportunity to work together we bought an 8% stake in them and it's up 60% since we purchased. not bad. >> can you just hold onto them is this one you want to own long-term? >> we did it strategically because of the bigger opportunity to help their customers grow into the u.s. you had jack monn earlier today, big ambitions globally our cloud customers want to expand to china. both companies are trying to help each respective company or customers grow in each other's country. >> you were real estate constrained, you've been able to put up property and make it so
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you can continue to both gain share and also increase rent right? >> we were basically sold out in the four, you know, leading markets we had from about the fourth quarter of last year. so this last quarter we brought on, you know, close to 800,000 square feet of capacity in the biggest markets we have. so we're heading into the year, into '18 with a strong position, lots of inventory available. more coming online. >> why would there be a perception among people when you see these rotations we're further along and perhaps everybody that's on the cloud is on the cloud >> i don't know. i think that's a lack of understanding. >> okay. >> you know, the enterprise market is about a trillion dollar market. cloud is a billion of that 4 hkt, 5% penetration. up to 60 or 70 over the next decade i don't think people realize how early we are in this outsourcing trend. >> last question, what do we do about security how much money do you have to spend on it? >> it's becoming a much, much
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bigger issue, outside of reliability. all these facilities always need to be up and running security is the biggest issue. we spend a lot of time and effort making sure that all the physical security that we put up, we don't really touch the logical security. >> right. >> is basically, you know, up to speed. biometric scanners, physical perimeters, armed security guards that's what we're providing our customers. >> you've got ash glad you cleared that up. i've heard too many people say in the last 48 hours is reason we're having rotation is because it's done. that is silly. >> not at all. >> okay, that's guy ortazik, president and ceo of cyrus one far less penetrated in china back after the break
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the theme of tonight is. senate passage of the tax bill totally changed the face of this market domestic oriented companies are certain to have dramatic earnings growth. courtesy of much lower tax rate. if money matchers want to buy the stocks they need to sell something else that's why they've been dumping technology names, very convenient particularly the ones with international exposure that will see less benefit from the tax cut. this is a position that has less to do with the fundamentals and more to do with the mechanics. when fundamentals don't tell you enough, it helps to consult the technicals tonight we're going off the charts with carolyn broaden. she's a brilliant technician she happens to be one of my colleagues at real money.com the paid site for the street.com to get a better sight of what's
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happening. drilling down into the action of now say despised and left for dead road kill, facebook, apple. when we look back. will the pullbacks in these stocks look like fabulous buying opportunities or have they reached an important high? lower prices going forward by now, i think that's the perceived general wisdom where does broden come in all this she says it's what we should have expected. many market moves tend to terminate around what are known as price extensions of pricing swings methodology, 800 years ago a smart italian guy named leonardo fibonacci ratios repeating themselves over and over again in nature. stranger things, shells, pine cones, flowers the list is endless.
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for some bizarre reason they show up in the stock charts. they do. how does it work a past swing in stock or index and runs it through the prism of fibonacci ratios this is what they're referring to the results give her a series of important levels where a stock is likely to change its trajectory we don't know how it works it sounds like pseudoscience, stock market astrology but the fact is it does work what does it have to do with the stocks of facebook, apple and netflix? simple, broden pointed out they all three reached extensions, ran up another 27.2%, or 61.8% of that move wherever that happens, whenever, that he takes it as a sign to get more cautious, rallies often terminate or at least go to hibernation hat these levels
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what can we learn from the charts now that the pullback has arrived after the so-called hibernation? let's start with the weekly chart of netflix when netflix dipped to 178 yesterday at trading, gasping moment, got a support there, and stock quickly rebounded and now back at 184. second and more important, broden likes a stock recently declined, last two major pullbacks there and there. or these when netflix got hit or not august and september, here we are, the stock lost $26. the previous decline in the spring and summer of last year also lasted for $27. last week's decline was $26. so if the pattern holds it could already be over. now in the past those $26 and $27 declines were followed by much larger rallies, in excess of 40 points it gives broden confidence the
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trend is intact. the 177 to 178 holds, she thinks this thing could run to 211. however, if netflix does start falling again and breaks down below the floor of support, that's the level to watch where the big tech selloff picks up again. week weekly chart of another, despise a stock, despise it here, despise it here, now they've got a new despicable level just like with netflix, broden says it's a garden variety pullback, not a lot of emphasis on it. apple at 161.8%, fibonacci extension of previous swing and starts to come down, that's what her methodology predicted. he will still like the chart even if the decline continues, as long as the stock stays above 149, where it bottomed she doubts things are going to get that out of hand apple's latest pullback, most
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recent lasted for around $14 you can't help 14, 14, all right 15, not exactly 1514 but that happens again, takes stock down to 160. apple's many floors of support, 170, and potential downside target, 166 to 167, floor of 164, 165 and one month 159 and 161. that's a lot of areas where things could turn gain and stocks rallied suddenly today. it's possible the pain is already over she's clinical about this. she's not saying, oh, i'm worried about the 10 she's worried about the chart. next the weekly chart of the most perhaps despised of all, facebook how many times it's rolling over, rolling over hey, facebook's rolling, rolling over anyway, again, as we saw, facebook hit an up side fibonacci extension. 15 above that level. we don't know why this stuff
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works. creepy how it does, isn't it netflix and apple and facebook, the declines have lasted 10 or 11 bucks, now down more than $10 of where it was traded a week ago. garden variety pullback. today's rally could have the beginning of some legs if it's the start of something worse we need to look for the important zones to support that facebook's likely to rebound from down the line apple and netflix, facebook has a lot of support here, we like that 169, 170 third floor, 157 as long as the price holds above one of these floors, even the lowest one, broden's optimistic. when it was here, no, she thought it was going to do this. not as if she's come in, the opposite, the bottom line. the charts interpreted by kyle and broden, recent declines are nothing to get too worked up
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as she sees, they're garden variety pullbacks like you get often. my view, these tech titans may not be in the sweet spot but they're fabulous companies i use id to buy somewhere on the way down as if they've been thrown away as if they were never worth anything to begin with steven in florida, steven. >> caller: hey, jim, i'd like to ask your opinion on interactive and ea and virtual currency backlash from battle front has changed wall street view of the industry. >> we like all three of these. i know they've been under tremendous pressure and a lot of people feel they're done too i say no, they've built a great business i know the chart looks bad strauss is not looking at the chart, he's willing at the business, darn good. >> caller: i was hearing about a company called cls
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should i clear the screen. >> here's what we're doing, j bill is better than they are after you have one of these declines in technology, you go for the best the ones that are tried and true don't go for the tertiary. that is the fifth quadrant have no fear, the declines to netflix, apple and facebook, don't get worked up. use the weakness to buy some if you don't own any of them. much more ahead. we're the only ones talking about this move. can the move the alteryx continue you ever heard it. we've been recommending. i'm sitting down with the ceo. tech stocks are falling. what should you do with the group going forward? i'll reveal again what to do and all your calls, rapid fire, tonight's edition of the lightning round, stick with
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cramer there he is. your new brother-in-law. you like him. he's one of those guys who always smells good. his 5 o'clock shadow is always at 5 o'clock. you like him. your mom says he's done really well for himself. he has stocks and bonds. your dad wants to go fishing with him. your dad doesn't even like fishing.
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call from chris in connecticut about alteryx. it's the provider of self-service data analytic software, simplifying the data analytics process, making it more accessible to you i recommended it back in march it's gotten a monster 65% gain in the wake of that move, i told chris to let the position run. i hear nothing but great things about this company word got back to alteryx and they asked to go on the show what can i say we're all ears when a company is giving us phenomenal gains let's check in with dean
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stoecker to learn more about his company. dean stoecker, welcome. >> thanks for having me. >> there's a phrase you used, i thought it was so exciting code free analytics for the citizen data scientist i love that. >> platform is code free for the citizen data scientist and code friendly for the quants around the world. >> you deal with everyone, i have never seen be as agnostic as you why is everyone willing to work with you and other guys say you're with sales force, i'm not touching you. >> we're agnostic to the persistence layers and the consumption layers in analytics at the end of the journey. data vendors love the fact we can ingest data into the alteryx memory flat form and push out analytics to any plane of glass, power bi or pdfs, machine learning models back onto
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salesforce.com. >> first, wait a second, data does the same thing, they're your partner. >> they are our partner, a great partner and customer one of the great things about tableau, many customers love the experience of being in visual dash boards. there are way more panes of glass than visual reporting. and so the majority of our customers actually write out to other panes of glass, share point and pdfs and word documents. >> you've got an incredible client list. i mean, you've announced these it's not a secret. jp morgan, ford, walmart, target, coca-cola. j&j what about j&j, what i would want to see from alteryx >> we cover a broad swath of analytic use cases it's a horizontal platform we have no concentration in any vertical around the world. >> very important. >> most importantly the footprint of analysts or citizen
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data scientists and enterprises is very broad across every use case from h.r. to supply chain, to analytics, fp&a, we have not yet seen a flattening of our s curve in retention numbers that's because we see 30 million citizen data scientists around the world who want to get their lives back. >> one of the things you have, and i sometimes these numbers glaze over people. i won't let this one 52% growth, but you're not a new company. you've been around. >> we have been around we were not one of those overnight successes. >> why >> we didn't actually raise any money for 14 years we were self-funded for 14 years. based out of irvine, california. the thought of risking our founders' money was tough enough the thought of risking investors' money was untenable we went as long as we could to get to the point where the self-service data market opened up as widely as it possibly could. we raised 163 million in three
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rounds and took the company public march of this year. >> we loved it immediately one of the things we were gripped with, the total addressable market versus the market cap, it's too small versus what you can accomplish. >> well, this is a $28 billion addressable market it is a massive market, grown every year for the last four years. i think the people are realizing that we're living in this data deluge they're trying to get value and analytics out of that data our flat form is the platform that allows people to prosecute analytics. >> i think you also have to highlight for us, because people don't get this, how long it took before and how long it takes now with you. >> yeah, so the analytic process in enterprises has been completely broken. context around a business question exists, how do i optimize my retail shelf set to improve same-store sales, mitigate churn in my wireless
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contracting business, risk in underwriting practice. what has happened without alteryx, people go to i.t. and stand up teams, analytic experts, all with dispa rat -- technical specification, you get the answer to the question you forgot why you asked what we've done is we've put the thrill back into problem solving. we've taken analysts who have resorted to spread sheet hell and we've made it so that we've gone from the end of their rope to the edge of their seat so that they could actually drive value for enterprises around the world. >> when i was going, at goldman, hedge fund, we looked at excel that's not enough anymore. right? >> no, we're living in a big data world where our customers are seeing billions of rows across disparate data sources, excel what's it got u a million row limit?
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people are looking at -- get over that to drag and drop user interface. it's all over with that's why we see such expansion. >> i am so glad you're on. ever since i recommended you -- no, it's too cheap as a market cap. people might say it won't make money. it's the market cap that matters to me. versus the opportunity you're way too dean stoeks, back after the break. ♪ (news anchor) downtown traffic is still bad. expect massive delays. (radio channel changing) (news anchor 2) all lanes on highway 50 remain closed at this hour.
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(news anchor 3) the stats are in and this city leads with some of the worst traffic, with the average driver sitting in gridlock the equivalent of three days a year. for every hour that you're idling in you you're sending about half a gallon of gasoline up in the air. that amounts, over the course of the week, to about 10 pounds of carbon dioxide. growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener. the solution was right under our feet. asphalt. or to be more precise, intelligent asphalt. by embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to study and analyze the flow of traffic. then, we will take all of that data and we use it to optimize the timing of lights, so that traffic flows easier and travel times are shorter.
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and sacramento is just the beginning. with advances in cameras, sensors, and network speeds, we have the ability to make cities smarter, and happier. what excites me about this technology is that we're using some of the most cutting-edge machine-learning, and ai, to help solve the most fundamental challenges that cities face around the world. who knew asphalt could help save the environment? (lani) and the possibilities are endless.
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it is time and then the lightning round is over are you ready in start with josh in california. >> caller: thanks for talk my call love your show. >> thank you. >> caller: i bought back in january at $25 now i'm wondering whether issued buy more. >> don't buy more. that yield may be unsustainable. do work on that.
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i think your initial impression is correct, that there is some value there. go to travis in washington travis >> caller: from our nation's capital, kramer. stock cyprus. >> half a dozen people, pound the table on the stock i think it's inexencive. lewis in texas. >> caller: jim, how you doing? >> i am good, thank you. >> caller: calling about trivago. >> stay away i like the concept of price line, expedia, and -- this group is headed lower, they're not done going down yet. let's wait jeremy in north carolina jeremy >> caller: hey, jim, how you doing? >> good, how are you >> caller: it's been a crazy month from matell with tons of hue for. >> unless hasbro buys them, you're in the house of pain.
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dave in missouri, dave >> caller: yeah, is this jim >> yeah. >> caller: yeah, jim, i'm the lumber liquidator guy i bought stock in i've been in the industry for 50 years, believe it or not, i'm always on the manufacturing level and wholesale level. and carpeting used to be the big deal. >> okay. >> caller: the past 20 years it's switching to hard surface, laminates. >> yes. >> caller: hardwood flooring, ceramic tile all those sorts of products. >> okay. >> caller: i bought lumber liquidator. >> that is the strongest part of what home depot talked about i'd rather see you in home depot. gary in new york >> caller: jim, how are you? >> thanks for taking my call. >> of course. >> caller: one of my favorite stocks this year, universal display. >> one of my favorites 90 points. i want it to come down
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in amazon, in netflix and apple. so wait. david in texas >> caller: from lone start state, mr. cramer. tell me about magellan >> insanely valuable, ridiculous, yields 5 1/2 everybody needs it and knave got it i'm a lonely voice in the wilderness that, ladies and gentlemen is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by t.d. ameritrade
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see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
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we are the driven... the dedicated... the overachievers. we know our best investment is in ourselves. we don't take no for an answer. we fight for what we want. even for the things that were once a given. going to college... buying a home... and not being in debt for it for the rest of our lives. but we're only as strong as our community. who inspires and pushes us to go further than we could ever go alone. sofi. get there sooner.
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undervaluation when you look at them rigorously, the tech stocks i like are surprisingly cheap on the out years, especially compared to packaged good names, everybody's huddled in, hiding in, love so much value stocks are totally straightforward or mystifying. it's much more of an art than a science. value of netflix, you're hostage to the total addressable market or t.a.m. for internet entertainment around the world no one would think it was more than cvs similar with companies like amazon and tesla you either believe in jeff bezos and ylan musk, or you don't amazon is web services, now, i can see the first being worth $750 million and the second $250 billion. stock could double when you think of it like that
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it's easy to see the recent selloff long-term buying opportunity rather than reason to panic even though i think people chose panic over common sense and wisdom tesla, okay, total beauty in the eye of the beholder. both because it has no earnings and because it has an inconsistent track record. but to elon musk ba-- valuationi justified, or they can rationalize it valuation is sometimes very straightforward. it seems confusing because of widespread but mistaken perceptions. colgate, we know what that is a totally respectable brand. why despite 7% growth rate, 7, colgate trades at 24 times next year's earnings. may pay to write these down, 7, 24 the priced earnings multiple single best way to compare stocks on apples to apples basis, i don't mean this kind of
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apple, metaphor call clorox, respectable brand, trades at 24 times 5% growth rate i don't know if it has node bleed valuation. ever hear that associated with clorox i haven't. we accept these valuations despite uninspiring growth rates and meager dividends because stocks have run so much. it's stereotyping, plain and simple no one thinks of them as being expensive or dangerous, because they're the low-risk, sleep at night safety stocks. with the same token, what have we decided that's going to get crushed in 2018 if not the last month of the year. stocks like alpha bit and facebook, last i looked have much bigger total adjustment
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markets than any -- much faster growth perform the same exercise. go to school apple's got a huge upgrade cycle, some predicting driving growth rate up 25% that's nonsense, let's say let's be conservative, cut it in half, 12.5%. a arbitrary. where is apple trading that's -- even being very cautious with the numbers, i mean ridiculously, cut the estimates in half, apple is going twice as fast as clorox or colgate. stocks trade at monster discount to safe stocks alphabet, 17%, 24 times earnings that's three times the growth rate of clorox or colgate. roughly the same price, multiple, ridiculously cheap, advertising, cloud, youtube. when i look at facebook, i like to examine the out years, that's his corically been the best judge of how it's been doing, look out to 2019 estimates, not
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that far away, facebook is trading at 21 times earnings, 21% growth rate. i think it's nuts these stocks sold off so hard in the last couple days. less attractive commodity, disk drives or flash memory people love to claim that facebook and alphabet or apple have gotten so expensive you can't possibly own them. when you do the exercises i do, and get all mathematical, you don't get that conclusion. techs much cheaper than you think. it doesn't usually get explained in comparison to what's really expensive that we all hold so dear and exactly what should happen when it's been crushed as has been the case these last few weeks. stick with those, stick with cramer for your heart...
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your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets-
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i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor. i like to say there's a market somewhere, and i promise to find it for you right here on "mad money." i'm jim cramer and i'll see you tomorrow
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>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ my name's steve gadlin and i live in evanston, illinois. (bird chirps) i live a really normal life. i'm a dad. i'm a husband. i love my family. i work a 9-to-5 job building web sites. a lot of that's just sitting at a computer staring at code all day. so i think it's important to fill your daily life
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