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tv   Mad Money  CNBC  June 8, 2018 6:00pm-7:00pm EDT

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vertical spread because you'll take some premium off the table. >> final call, mike. >> call spread going into next week's ruling. >> carter. >> home builders and home depot in particular. >> dan. ciree 't smoke but that e-gatt-- >> ch 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 save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. as expected, the market had its best week if ages. dow gaining 75 points.
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s&p rising nasdaq gaining that is what happens so can the dow and the s&p take out their january highs from before the market had its big tariff induced blow off? there is a chance it might had been not because of earnings, we have almost no reports but because of the president and the fed. before we get to our game plan, i want to point out there are too many people who trade-off of tweets and fears whenever the trade hard liners members speak, the market gets hammered trade is a work in progress. so i continue to buy the market in any severe downturns. we had the best action three months ahead of the dow and ahead of the g7 meeting, ahead
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of the summit. on monday morning, we will get to see the fall out of the canadian g7 meetings i don't think i have ever mentioned one before, not even in passing this is not your usual g7 meeting. we know our relations are souring. and they introduce the notion that russia, once booted from the then g8 should be allowed to come back in that is conventional wisdom. so if anything good does actually happening, good meaning some give by our allies, then we can get a real boost next week we also have an norimportant retailer, reporting, restoration hardware i have to believe it will be spectacular. i think we are witnessing a once
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in -- i bet restoration will experience something special nobody really expects anything big to come out of the g7 meeting. again, the odds of something we should also get the court's decision about the government challenge time warner deal i had the privilege of interviewing the assistant attorney general for anti trust. i think his brief holding that the consumer could be a loser has a good chance of winning although i am very much in the minority here. he talked about an anti trust
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enforcer which suggested he might be blocking the merger how he expects comcast to make its bid to snap it away from disney maybe comcast will try to do the same thing to avoid the justice department's wrath either way, it will mean momentous day in media land but not as momentous as the federal reser reserve meeting. in the fog of fed, almost anything can happen. it might be another chance to buying into weakness into this day. always someone who doesn't know or doesn't believe that the fed is going to tighten. that is where your opportunity comes in
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it comes in between 2:00 and 3:00 in the afternoon. holding an investor conference i would be a buyinger of this stock. a salesforce, their market cap is approaching $100 billion. i bet you will hear multiple justifications i expect he will explain how this was nothing aberrant as the growth of the cloud. we just went through a big gauntlet of retailers. i am expecting good report of this chain we have always got results from a company called jabil a contract manufacturer that handles a lot of apple business.
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apple is like fight club no one talks about fight club. even in ableak mention on how well apple is doing, could go a long way towards putting the company back finally is centene that said, it is at a monster move and i think it is too late to buy it at least for the moment here is the bottom line, next week washington dominates wall street but i am betting the rosie view will not be dimmed by anything coming out of north korea, or the federal reserve. jim in florida. >> caller: calling from the
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sunshine state big booyah the stock i am calling about is igt. i bought this stock. and the stock held up around 30 and since then it has been falling on its face with no bad news what gives >> too much hot money is in it company is doing fine. i would stick with t i am tempted to buy the stock here. let's go to bill in utah. >> caller: hey, jim, great to be with you i follow your advice and your an analysis both with the guys, the opening bell and on "mad money." you did a segment called off the charts where you analyze oil. probably likely to go down
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i have been following a company called den burry resources and have been investing in it. it follows oil closely is this a good time to buy more. >> no. we are going to follow what carly garner said, oil has not been acting that well. and we do have a lot of problems with oil and there is no way to get the oil out of the permian i am not a fan of dnr. oil is going to hit 62, 63 and then we will reassess. verizon ceo is announced he is stepping town. i am talking to tim armstrong for what is ahead. >> and chip and joanna from
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fixer upper, probably is not going to renovate your house soon don't miss our exclusive with house. 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. >> announcer: lightning round is
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roughly a year ago verizon turned itself to a digital media tig titan. last year produced oath. great assets in here but by far the best asset that oath has is its leader
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tim armstrong. and i think he can start doing impressive things. we checked in with him the ceo of verizon's oath subsidiary earlier today. so take a look before we get started with our interview at oath, there is a change at the top with verizon. >> impact is great because it is about 5g and verizon has been a leader and today's announcement tells you how serious we are in building out 5g. we want to be the largest media company at oath. for us this is a pure signal, pure leadership sign that verizon is going to be the leader in 5g he is staying as executive chairman, so you will be working with him
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both lowell and hans will be spending a lot of time with lowell and lowell's vision is he was the first real executive to say hey, linear is fantastic and digital is where it is going so the combination, we are in a great position to capitalize >> you don't hear media execs talk about the speed and the technology that gets it to you this does make oath and you, because of your background a little bit different so the advantage of what you are doing over what everybody else might have, if you do go fast for 5g. >> 5g for our business represents a really quantum shift, ten times the speed of what consumers get today the compute power within 5g, you are a big sports fan, if you
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love fantasy right now, you are will love vr, it will bring you an enhancement that feels like vr, ar services. >> so let's talk about what happened with oath and let's talk about the arc of oath you were, aol, you did fantastic at aol, you made people a lot of people, and you come here, and at yahoo and then it gets murky not sure where oath fits in. can you define the vision for people right now people understand that oath is a real company within a company and has great prospect. >> oath on its own is a fortune company. traffic from 175 countries, oath is a big property on its own,
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big piece of where zeverizon is going. our mission is to build brands that members love and if you think about where the world is going flat with technology, we have been trying to be the company that really breaks brands out as separate things, recently, we signed a huge deal with samsung directly on to samsung devices. oath is probably the largest brand media brand company built for mobile in the world right now. and we are going to continue to scream down that path. >> what is the advantage of being the largest built on mobile versus a typical journalist. >> we are very much into high quality content. when you see what is happening with fake news and all the
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things in the world. you and cnbc do high quality content for the financial industry and we believe that going to work well with mobile people want to have good use of time and where they are getting the information from and trust it 3 billion connected right now, another 3 billion people are going to get connected we can be the first company that brings trusted brands to that size audience that represents an unbelievable opportunity and that is what we are excited about. >> i never lost my affinity into yahoo. and then one day, someone said we are moving to espn. i don't know who did it, but someone who is younger than i am i came up through yahoo and what happened and how do you get that
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back >> so fantasy sports online and the drive to digital, you were there at the beginning of it fans want to be enabled. and the enablement of fantasy sports brings is incredible. it is allowed you to be a fan dom connected to other fans. i would say one thing we are doing differently, and i am going to visit your rotisserie league we are in a space where we are connected the yahoo ecosystem. we basically have pivoted away from things like search and some of the areas that they were publicly going after so when we think about sports, you are exactly the person we want on that property. we want your rotisserie league on there and there every day yahoo, sports, news, weather, all of those things matter a
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lot. our ability to get you off of espn and to think about us as the number one partner for fantasy, we just signed a huge deal with nfl. so we want you back. >> now we know that at&t is trying to close on time warner, next week we get a court decision but how about original program >> we are big investors in programming and when you think about our programming right now, the linear areas where people are going to, lots of series getting created. and we have taken a different path which is wide open in our mind largest live entertainment product online which is down the street on our build studio 1,200 live celebrity interviews.
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investing in sports. >> no movies. >> no movies yet. >> look at, we have seen this where someone comes through with a movie and then regarded as being an entertainment company and not just media. >> let me tell you something, we are, probably the only digital company that was nominated for emmys for oscar's this year and you may not see it as much as a netflix investing $800, we are going after ar/vr and the future of where digital is going. they look at us as the 5g future of ar/vr future of where we are going for those. we are getting more hardware awards in the space of content and you will think of us as news, sports, finance, and entertainment and seeing us in
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deep ar/vr related programming. >> i am glad to hear us. they want armstrong, but are they going to get him? >> i have had a long career and a career that has been fortunate. i was, i knew you at star wave back at the day. and worked at google and came in to aol a great run as a company and when i took the job here, when we sold to verizon, my passion is about serving the billion consumers we have and so i am really passionate about what we are doing and i would say those are rumors. >> one last question, do you think it is because you happen to be in a company that is one of the biggest revenue basis in
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the world. >> the biggest asset that we have is every consumer in the world is going to mobile one of the largest highest qualities behind us. and we are all mobile and digital. so we are in an awesome spot you know that content maltertte. i saw you at the super bowl. and so you realize that digital content matters. my son watches nfl, and watches "mad money." and the only picture he wanted was with you so really, it is an amazing opportunity for us. >> always a delight to speak to tim armstrong. tell your boy i said hi. >> i will. jack, will be happy. into retirement...
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♪ how the heck do cramer fave five below shoot into the str stratosphere five below, which is a retail chain where everything is, you got it, five bucks or less see? five bucks i mean like sleigh okay i issued some amazing guidance in this conference call. i told you it would have a five quarter. but even i didn't know how
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strong it would be better to be lucky than good rarely enough to send a stock up more than 20%. last night it was a $5.5 billion company and didn't get a take-over bid. added billion dollars of value in 24 hours. why? something changed yesterday. it wasn't just the quarter or at least not by itself. these results were a wake up call for wall street i'd argue this story was there all along, though. it is why i have been such a fan of the stock yesterday, a lot of skeptics were converted into believers. for those of you who don't know five below, it is a philadelphia chain that has been growing like a weed
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more than 650 stores across 32 states think of it as a higher end tlar store. $5 and one that has a lot of appeal to kids. because they have all sorts of toys look at the great toys it is up nearly 135% over the last 18 months so even before yesterday's move, five below was a monster winner. for years now, i have been making the same case five below is a fabulous regional to national growth story. i even have a graphic, it is putting up new units left and right. graphic. targeting 20% sales growth and 20% earnings growth.
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the stores have a treasure hunt vibe that makes shopping there, kind of fun. i mean look at this thing, it is a pinata and this is a pinata we're both pinatas on top of that, five below knows its audience, customers are young betweens and millennial or gen x parents. the core of this story is all indeed about this map. so take a look at the map. see, look at, this five below has been expanding across the country starting in the middle atlanta, they are from philly. just put up their first california location last year. and by the end of this year, five below plans to have 750
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stores but management's goal is to bring it up to 2500 they think they could triple that footprint and that is huge. the average pay back period for these stories is less than a year this is just a lucrative business investors have been somewhat reluctant to fully embrace five below. it started with the note from the fantastic matthew from jpmorgan and at $87 price target at the time it was $71 stock. the stock was too cheap given incredible numbers so on that report alone, the stock spiked 8% just on that report and sure enough boss was dead right. the results were so stunning they exploded higher anyway. this quarter five below reported
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growth their same sales growth sales came in light. and initially the stock looked like it was going to trade down. but the market went up dramat dramatically allowed the customer to grow its earnings at a monster clip five below raised every part of its full year guidance every line of their second quarter forecast came in higher than expected. every line i have not seen that the secret sauce here was the margin what they make after the cost of goods sold increased by 100% basis points in other words, the company is becoming more efficient and disciplined. oh my god.
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guys, my favorite candy. smarties i have a smarties hat. trust me remember, the story is all about putting up new stores. this quarter was powerful evidence that the company can do just that. because you know a lot of these things, i know you think this looks like a $30 plush toy but they make big money off of these things oh, geez now you're talking suddenly, the analyst rush to raise their price target which begs the question, is five below worth buying here? between the jpmorgan initiation in the quarter, the stock is up 40%. at these levels, the stock isn't
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exactly cheap. so that would be the definition of chasing and we don't chase race cars. if you own five below going into this amazing quarter, i want you to feel free to real the register in part of your position if you don't own five below and you want some, i would recommend for the major market pullbacks so i wouldn't be surprised if you get a better buying opportunity here as long as you are patient. five below is a phenomenal long-term story which is why you don't need to feel pressured to buy it immediately i want you to take your time after this monster move. wait for a better entry point and then, and only then you can pounce now you're talking about anthony in new york.
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>> caller: hey, jim, how is it going? >> i'm doing great. >> caller: wondering about costco. >> costco over $200 is still cheap. so i will continue to buy the stock. let's take another question. that's it? >> yeah. >> oh my god i mean, he and i were just becoming friends look out for five below. what a terrific long-term story. wait for better entry and then you have to pounce it is a very fine house and it just earned a spot on cnbc disrupter list when you spend a whole day listening to more than a dozen people, you will come back with take aways revealing all that i learned at the deals conference that i ran. and tonight's edition of the
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"lightning round." stick with cramer.
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>> one disrupter is putting those options all in one place are the foundations of american housing now strong enough for homeowners to embrace a new way to make their house a home >> every homeowner knows remodelling their house is a huge pain in the neck. all of the available options can
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make you insane. that brings me to houzz a privately owned company that helps you remodel. download their app and you can visualize what all of this stuff will look like inside your home and then use houzz to see what you are looking at earlier this week, i got a chance to speak with the comp y cofounder and ceo of houzz congratulations. can you describe to us what you do for so many people? >> hi, glad to be here and talk to you today what we do is provide the best platform for everybody that is interested in remodelling, building, and designing their homes and collaborating with 40 million people a month and
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getting the best tools to execute their dream homes on houzz. you have millions of people, but also multiple revenue streams. can you describe them to us? >> so you are correct. we do have 16 million different images with lots of data attached to these images for our community members, 40 million people a month that are using it, it is not enough to see the pictures and get great ideas but also want to execute so when it compaes to our reven stream, both of us were born out of our community and what our members want to do we have 1.6 million professionals and what they wanted to get from houzz is the ability to get local exposure to their brands
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and one of our revenue streams was born out of this necessity and need and it is a subscription model which allows the professional on top of their organic completely free exposure that they get to build a robust local profile and interact with relevant users on houzz. the and the second one is built out of the communities today we have over 16 million of them, but they wanted sync the tags and purchase the materials they see right away from houzz and that helped us to make a decision to build a robust marketplace. on houzz we have over 10 million products on houzz.
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get it out and that second channel would help you get all of the products and material and that is what created both revenue channels the demand from our own community. >> my wife is an avid user of houzz both for our apartments and to decorate our restaurants. she should be using my view with this 3d. t tell us about that. >> so viewing my room 3d is an ability to use your mobile device to empower you and envision everything how it is going to look like in your own roonl. sin since we introduced that tool last year, we had over 2 million
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people to use it in order to use it for their home remodelling and design and it is really empowering the users to envision everything in their own space. >> now, how have so many people heard of you when i asked my house, how do you know houzz, she says i use it all the time. how do people find out who don't use it all the time. >> from the beginning, it grew a lot about word of mouth to that enormous community many people refer each other, both homeowners told their friends about it, their professionals and again, professionals are using it to work closely with their clients, to plan, to see what it is that works well with their clients. so many professional designers and architects as well as the builders and the general contractors.
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they use it as the most essential tool to collaborate with their client. 1.6 million professionals on houzz collaborate with 40 million homeowners and that interaction is important so they introduce each other to the tool and work with it on a daily basis. >> if someone has a project overseas, international, how can they use it? >> this is a great question because you know, when we started it, it was a very local project for us which over time expanded dramatically all over the u.s. today, more than 50% of our new users are coming from countries out of the u.s we decided back in 2013, to expand platforms we expand through europe and
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through asia was well. this is very meaningful for us because the market itself, we are talking about $1.2 trillion market just between north america and europe with asia aside. the ability to go and localize it based on the needs of each industry and each country was tremendous for us. they have it local and connected to the global community we have on house so prioritizing. >> thank you so much and congratulations of being a disrupter. you have a fantastic product that is ceo of houzz "mad money" back in a moment
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>> announcer: lightning round is sponsored by td ameritrade it is time it is time for the lightning round on cramer's "mad money." that's where i take your calls rapid fire you tell me the name of 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." start with mike in florida
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>> caller: hey, how you doin'. great i finally got through. >> thrilled for the weekend. how can i help >> caller: how does the future look for rockwell collins? >> you know, look, i think you had all you are going to get there. and congratulations. let's go to michael in florida. >> caller: booyah. mr. jim, from florida. so many questions and so little mr. cramer i am a data center engineer by trade and i know how great cisco gear and equipment, why is the stock so low >> people didn't care for the last quarter they felt the guidance isn't strong either. use that to buy chuck robin's
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great company. rare opportunity to buy a high quality tech stock below where it should be joel in pennsylvania. >> caller: booyah to yah what do you think of sharcharleh wab? >> coining money cha-ching. jim in new york. >> caller: i bought it in february, 88, 89 what a disappointment. >> you know, thor came back and thor is trading with oshkosh so let's give oshkosh some time. i think it can rally vijay in south carolina. >> caller: what do you think of
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mgm resorts. >> i've got to tell, you $30, you have to stay in there and buy it allen in kentucky. >> caller: i wanted to ask if you think it is good to buy into the mattel stock >> i can't recommend the stock on a take-over basis where i think the fundamentals are going on particularly when i think hasbro is so terrific. that is where i would own. harry in new york. >> caller: big booyah from harry from new york. how are you? >> good. how are you? >> caller: wonderfully my question is i held on to cl for 20 years down a few. >> the last quarter was not good the stock is overcompensated and i think you should buy it. and i think buying pepsico right
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here is brilliant. and that, ladies and gentleman, concludes the "lightning round"" >> announcer: lightning round is sponsored by td ameritrade >> my dad and i are calling from tampa florida. >> booyah, dr. cramer. >> doctor. where is the stethoscopes? >> del taco, el pollo loco, bar san miguel not even public yet. what do you make of the stock of what do you make of the stock of pallo allo
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>>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early
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at hollidayinn.com save up to 15% when you book early i we worked with pg&eof to save energy because wenie. wanted to help the school. they would put these signs on the door to let the teacher know you didn't cut off the light. the teachers, they would call us the energy patrol. so they would be like, here they come, turn off your lights! those three young ladies were teaching the whole school about energy efficiency. we actually saved $50,000. and that's just one school, two semesters, three girls. together, we're building a better california.
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when you spend a whole day hearing from more than a dozen people at the deals corporate governance conference, you can
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come back with take aways. this time after the commerce secretary said will make accommodations for zte, the chinese smartphone maker, i think china will acquire long time favorite nxp. the combination of the nxp deal getting done which will help equ qualcomm diversify and for apple, it could be huge for the stock. second, i got a good feel for proctor and gamble told us the company is considering his plan to give each global business accountability and that can give us a nice pounce to the stock.
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more importantly ge didn't cut the dividend former ceo of wyndham, and shawn connelly, they made me feel bullish about their businesses i think they are cheap stocks. i think they told both very compelling stories i think macy's remains a buy ceo is proving himself to be a miracle worker brought in people from e-bay and a banker buying back debt and not stock. figuring out what the customers really want. jeff's thoughts made it clear it me that the survivors here are the change that are using technology to fend on amazon and
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bring back their old customers all of the people who loved macy's, the concept but didn't like the way the macy's was executing. remarkable, humaniility from the ceo who engineered one of the greatest turn around i have ever seen seen stick with cramer. and that 2% cash back adds up to thousands of dollars each year... so i can keep growing my business in big leaps! what's in your wallet?
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no one thought much of itm at all.l people said it just made a mess until exxonmobil scientists put it to the test.
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they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's not small at all. energy lives here. the market is back in a positive rotational road the day before that we had the tech stocks, the industrials going. that is exactly what needs to happen and throughout this retail has been good because last week at this time we had unemployment number that showed you great growth without inflation. that is ideal. the fed can do what it wants in that environment and we will still like stock i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money. i'm jim cramer, and i will see you monday
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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." ♪ who believes she has a new and improved version of a ubiquitous product. ♪ hi, sharks. my name is ivori tennelle, from irvine, california,

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