tv Mad Money CNBC September 6, 2018 6:00pm-7:00pm EDT
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i am a buyer of pfizer. >> i don't like semis and i don't like usmc. >> big game saturday night twin cities line, and check it out, on the internet twitter and cbs will get you done. >> that does it for us stick from the canyons of wall street to the heights of broad street, from the opening bell to the liberty bell, when the road is long, you roll up your sleeves, you get to work and you run with the bulls in the city of brotherly love, you fly with the birds it's the countdown to kickoff and cramer is coming home from philadelphia "mad money" starts right now
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whoa >> give me some! give me some i'm cramer welcome to "mad money. welcome to cramerica welcome to the countdown to kick off. coming to you from my hometown, the hometown of the super bowl champs, the hometown of the philadelphia eagles! a lot of people want to make friends. my job is not just to make you money. i'm here to educate you and
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watch the eagles you can catch on nbc we're in the city of philadelphia tonight for the opening of the nfl season. all i could think today was man, oman, tech is getting slaughtered. banks have no defense. fang has been defanged, getting toasted by the old guard the dow advanced 21 points and s&p 500 declined 3.7% and nasdaq nose-dived .191%, holy cow let me try to put this whole thing this move in context what's the real reason a football team has no defense, it's typically because they can't cover the wideouts and they can't get to the quarterback! today, every tech company was covering the quarterback facebook keeps getting sacked! it didn't help one bit the beg
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sime conductor company, micron got hit and there are shutdown corners everywhere we look to belabor the analogy, let's do that, we're in philly. since we're at the comcast center we will be talking to an eagles alum just plus brian rogers today is the third day in a row and tech needs a buy and some buys i don't expect a rally yet although a decline for some and it looks like cloud stocks are starting to bottom led by stalwart adobe there's always a tendency to play pin the tail on the sell-off is it digitalization cutting on consumer growth consumer behavior? is it so darned easy to say, uh-huh, this is the reason, there's a sea change and it
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explained everything the thing is this kind of thing sounds rigorous to help make a decision it's not rigorous at all and your decisions may turn out to be very bad, because there's no sea change in this technology business at all. this sell-off is about the money management business, not about tech as i told you in tuesday's show, high flying tech stocks tend to get hit in september trying to take profits before someone takes it from you. in the old days i would have run the hedge from here. let me put my old hat fund on to explain. at any time there's three shareholders the buyers who own a plurality of stocks, 25-30% stock. they don't count for the sell-off soliliquy because that money just sits there. the mutual funds overrated in tech, more tech than represented in their benchmark in the s&p 500. and the hedge funds many take their cues from algorithms and
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ets. right now the hedge funds are in play, they, not the companies themselves, not the stars, if we're going to get all shakespearean about it, they are at fault for this sell-off you start thinking, wait a second, there's got to be something wrong, there has to be this stop it! if you're an overwe'd mutual fund up 15% for the year hallelujah >> you'd have to be crazy to let those gains ride when i was at my old hedge fund, i'd sell everything and spend the rest of the year going to the movies you couldn't get in trouble going to the movies and watch "the fugitive" because i didn't kill my wife the money managers are to take profits. they aren't interested what to sell they sell your stocks, they don't care if they're up more than 35%, a
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stock, let me tell you something, you'd be reckless not to sell some you can't defend against that bulls make money, bears make money and hogs get slaughtered the hedge fund managers that take their algorithms with ets there are 10 ets, 10, that hold a whole lot of fang! suppose any of these companies gets called down to the capitol for a fist class pansing, is that a term too fancy for philly you know what happens? you have a two musketeers going, all for one and one for all. if facebook boecomes persona non-grata, you get those smelling blood in the water, you need to understand the consequences although you'd rather be richard driver or roy schneider when the show is over because you don't want them to eat your lunch
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it brings me full circle to the index funds. the buyers of index funds are almost by wrorote, down on up d and down days. they are already stabilizing package good stocks like clorox and some desperation, think of boeing, don't have big gains, they don't need to be protected because they're not falling victim to profit taking because they're not allowed profits. that's qui those stocks are doing better even though they aren't giving money managers what they want big cap tech is not known for having good defenses their buybacks are smart at best and rarely pay dividends, which means it's easy to crush them when things start to go south. i've said over and over again, it takes time and price, time for weaker share holders to finish panic selling, official end of the games and new prices, new buyers get in because stocks are attractive
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just like work day, wdi, two nights ago a fantastic cloud-based purveyor of financial resources, cloud-based, ridiculously reportings, one any company would be proud of with status growth it got none and got pulverized and today, down a couple bucks the aforementioned adobe, today rallying at 4 bucks. these bottoms are a good template how it will work. what else is like a work day and adobe, lower evaluation techs, microsoft looking good, cisco looking great. lateral with a big buy back, big dividend and other cloud kings, like salesforce i suspect, believe it or not, alphabet, if it can keep its head down it will find a bottom. amazon is the most likely to fall the hardest absent a tweet
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from the president and netflix ready to hit bottom after a multi-day rally. facebook, wit, micron, they'll be busy plumbing the depths of the bottom the whole time, they're estimates are too high microsoft sells four times of -- the cheapest of all stocks of the s&p 500. what does that tell you? it says no way this company can make the numbers if you want to be a spectator and not a gladiator, i see rallies in healthcare seems sustainable. retail is the place to be, starbucks with the opening of its roastery, seems to have bottomed i suspect the financial tech stocks continue to work with the jack dorsey other vehicle, square the bottom line, tech's defenses, getting toasted. it's basically the wrong bird tonight. it's a falcon, not america's bird, the eagle!
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[ cheers and applause ] questions, number 92, you're up. >> my name is gene, a proud philadephiian and student. you have mark zuckerberg testifying to congress and others i'm looking at a stock that beat the revenue the previous two years. i want to know if you think they will continue, if they're in a unique position to continue moving forward >> which stock it's hazards to hear >> fortinet. >> it's a great cybersecurity. fortinet is better the only one i like better is fortinet number 2. great call who's next >> hey, jim, luke from temple
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university >> pop and mom >> i got a question on marathon petroleum. do you think u.s. refineries can continue to benefit from the bottlenecking in the basin and how will this acquisition shake up the market? >> who came up with these smart people where are these people on the phone when i take the questions. >> you're absolutely right the deferential may go as high as 30 bucks. you're absolutely right. we had them on a bunch of times, you're so smart. good call! >> thank you >> now, we're done i'm just getting started tech was the wrong bird tonight. it was defense it was a falcon! hey, it happens. the eagles live from the city of brotherly love that time of year again. getting ready for football at comcast plaza. with kickoff a few hours away on
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nbc, i'm receiling my dream stock for you for your portfolio. >> i'm sitting down with brent celek to catch a glimpse of the entrepreneurial side and basking glory, i'm here to watch my eagles win! also a great time to visit my parent company, that is, don't miss comcast ceo, brian roberts, and stick with cramer!
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believe it or not i didn't come to philly just to watch the eagles, an opportunity to visit the mothership, meaning comcast, the mother of nbcuniversal, the company that signs my paychecks in the town i grew up. anybody whether ever heard me say the word "water" or "merry christmas" knows philadelphia is my real home all the people with high mergers in space with comcast currently trying to acquire sky, the big media conglomerate or talking about cord cutting they grew 30% last quarter and not your father's cable company anymore, a tech company focused on connectivity, you the customer it's up 10% for the year you're getting a chance to buy a nice blue chip stock for a discount with 30 times earnings. do not take it from me, check in from our special guest, brian
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roberts, the ceo of comcast, who happens to be my boss' boss' boss mr. roberts, welcome back to "mad money." great to see you welcome home and glad to have you back >> thank you for making home precious and fabulous. let me ask you, seven months ago, a game was played, a 60 minute game. i think that game, and its outcome changed the city that your family's from and my family is from. i know it was 41 punts us, 33, them do you feel it how can one game change a city so much? >> you can feel -- and everyone is so excited tonight coming back with our friends' super bowl ring and it just means you're the world champion. for philadelphia we've been starved my whole lifetime. we've been to three super bowls. this was it. being on nbc was pretty special, just icing on the cake >> we're business people i searched for a metric, some
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measurement that would indicate how much more valuable our great city is than it was before that win. how do we put it >> you're great at figuring that stuff out. i'll tell you what we did. we put a william penn statute on top of the building. there had been a curse when the city above william penn's hat was the folklore the first building we put a statute there, won the world series and second building we won the super bowl how do you measure the value, pretty exciting. >> i think you measure it by saying, we're winners now and not losers let's talk business. about a year ago comcast flagged the slow down of video subscribers about the cord cutting and death of broadband slowing. i think the death of cable seems very much exaggerated, video sublosses seem to be decelerating and broadband seems to be accelerating
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is time to say the renaissance is back? >> i do think there is something in that big time we saw a shift with streaming video. first reaction is this is bad. reality is you need broadband, you need the fastest internet, best wifi. we have the best in the nation for the second quarter throughout the first half of the year, particularly like you said in the second quarter, we had the best broadband sales in 20 years. it's a 20-year-old product is that a one month, one quarter phenomenon i don't think so we're doing well and continuing. i think that's because we've got reconnectivity as we pivoted the whole company and said video is critical some video customers don't want the big package, fine. we're focusing our video on the full experience we call x1, it's been great on broadband we're selling broadband untethered, we're
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finding lots of customers enjoying that product. we move into business services with broadband and have a $7 billion business that didn't exist 10 years ago the company is more connected than it's ever been and having great success. >> what do you say to people who just listened to what you just said and wait a second, the stock is the reason they have to make an acquisition at sky and why we have to say it's not as you said >> comcast has been in business a long time and you know steve burke at abc, dave watson, who runs cable is really doing a fantastic job. that's one of my disappointments this year is that fox and sky, driven by rupert murdoch's decision to sell the company, not our desire to change who we are, why wouldn't we look at it? we found it was undervalued. we put in a price, eventually disney offered more and we walked away.
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people then took that and made a narrative that said we didn't love our core business when in fact our core business is having a renaissance, because people want to be connected, they want wifi everywhere, we now have 20 tablets and devices in a home. our power users use 10% more 10% of our customers, 60 gigabytes a month nearly triple what they take what does that mean? we all want to be like the power users and that's our capacity coming >> the connectivity allows you to answer exactly what a customer wants this is a different kind of cable company. those who have comcast, we have a cable company we couldn't have to like them or know what we want sounds like you've been able to harness what people want and give it to them.
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>> we've pivoted the company what you're seeing behind you is our technology center and we had a chance to walk through it today. about 10 years ago we said the world is changing and we wanted to change the company. we had a new chief technology officer back then, tony werner and built an entire organization we ran out of space here i said it's time to pivot the company from products to innovation to something you won't recognize. >> brian, i respect history when it comes to picking stocks i know when you make a big acquisition, stock drops, average is 7%, then after that, it's off to the races. give us that narrative maybe that's what we should think about sky because we don't know what will happen with sky >> can't talk about sky, historically, whether qvc, nbc, each acquisition, we have to prove it a show me attitude by investors,
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i understand that and respect that and our job is not let that jacket the mission at hand, build value for the shareholders you say what are you most proud of my dad took comcast public in 1972 if you bought 7,000 shares you would have $12 million, 17% compounded return for 48 years and in the s&p 500 you'd have 15 times less money we're looking for value opportunities, we're looking for strategic fits and we have a management team that likes to build shareholder value. sometimes, when we see something, by definition, you're the high bidder at that moment, it takes a little while to convince people, you have to prove it i hope we've done that nbc is the best acquisition we ever made. at the time we were a cable company. we saw content being more valuable over time now everyone wants to get into content and looking what we bought eight years ago, nine
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years ago. the same thing can be true in international and connectivity and broadband, our job is to be one step head of the competitors and prove it >> there is a lot of news today. lex looks like he might be out and controversy in sports with colin kaepernick is this an era where entertainment is influx. i tell you, i'm used to talking about inside the lines, not outside the lines. >> you know, it's a very unusual period we're all learning and playing by a new set of rules everyday again, i think what makes come cast great is a certain consistency of our team, our focus and trying to give our customers ultimately and viewers products and services and news and we don't always find that an easy or comfortable time to be we do the best we can. by and large, we have a unique
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company with comcast universal, the culture, team work, ultimately over 20 years, 10 years you get the results i just said in the stock, doesn't happen in one moment and you have to turn the noise off and have core values >> i think turn the noise off. our viewers think long term. we're not trying to be in today and out tomorrow i like that perspective, the $12 million respect. the way to be. brian roberts, chairman and ceo of comcast corporation cmcsa! stick with cramer!
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white we're down here getting ready to celebrate the official kickoff of nfl season with my beloved world champions philadelphia eagles, let me remind you there's a lot more we as investors can learn from football, especially fantasy football trust me, there's a story "in the money" league, got me to thinking about the similarities of portfolio stocks and filling out a fantasy football roster. because i'm trying to find new ways to teach you about the stock market, let's play some fantasy! first, we're going to start by the most important position in fantasy. it's not quarterback for those who know the game, it's running back the great insider, adam shefner tells me you can't have enough players because you want
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consistent quarterbacks week after week you want something strong or straightforward. right now, that's either retail or medical devices for a retail running back you want a stock to play like hard to say, devonta freeman from the falcons. i drafted him, nothing i can do. i'm thinking home depot and not because they own the falcons, just like freeman, home depot is a long time outperformer and hitting its groove and 15 from the bottom, still worth buying we do need a medical device stock. remember him lesean mccoy, former eagle now plays for the bills. they tend to burn out in the first few years in the league. mccoy, exception this is his 10th season with a remarkably consistent career to me that looks like abbott labs with extraordinary value for shareholders year after
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year abbott probably won't do it year after year but the kind you will see going steadily higher. >> i know everyone's todd gurley, go for intuitive or d dexcom we're looking at two of the most explosive groups in the market, fang, yes, fang and the cloud kings, even if they're now in the dumps, you want player like antonio brown from the steelers. there are flashier wide receivers right now but i defy you to find one with better production over the past five years. that's salesforce! the cloud-based software kingpin. of all, this is my favorite. it has more than doubled the last two years and cloud compatriot adobe both seems to have bottomed here but so have other techs. let's not count our chickens, we
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need eagles if we're going for a bird metaphor. for a second wide receiver, i like larry fitzgerald from the cardinals. everyone is speculating when he will retire. he's 35 and people sometimes forget he's really good right now. reminds me of alphabet, company formerly known as google credible company but doesn't get the growth it deserves from the growth obsessed investors as younger sexier startups do and cloud infrastructure in youtube and the self-driving car business we need a quarterback. i got to tell you, i nearly had a nervous breakdown when carson wentz from my beloved eagles got injured last year against the rams i knew they would be back. fortunately, they had a backup in foles, but make no mistake, wentz is the quarterback for the birds, even if he is not quite ready to play here he'll be back soon
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to me, that is comcast, we just spoke with ceo, brian roberts before the break and explained how comcast is transitioning from a cable provider, but just like wentz, they have been hungry just as wentz, despite the chatter. and we need a tight end, the most important position, and seem to be disrespected and if you have a good one, it racks up a lot of catches and yardage yes, you need one like rob gronkowski we shot him down from the patriots when we need to and to me, that's interactive and delivers spectacular results. take 2 has a new game coming out, called "red redemption 2" and zach effortrtz, tight end fe
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eagles we could do worse. and the jags, they broke out in a big way last year. we want a defensive high yielder, the kind of safe stock to protect you in any environment. we're going with clorox. like the jags' defense, clorox broke out and had a rough season getting slammed by rising transportation and raw costs and rising interest rates making it less attractive. it's been on the mend, hard to beat. >> finally, how about a kicker most fantasy football players wait until the last round to draft a kicker, not a life or death position let's have fun with this go with a marijuana play the closest thing to a blue chip stock in the cannabis business is this company, take major
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stake in and can be bought, too. this company is hazy to say the least, canopy growth constellation and canopy could do more than go up in smoke. i thank they're both buys in weakness when you build a portfolio you don't just need companies in different industries, classic declassification, wide receivers like salesforce and alphabet, a quarterback like comcast and tight end like take 2 interactive and clorox and constellation brands, especially going into october 17th, when canada officially repeals marijuana prohibition. let's start here >> upon the liquidation of the sports authority in 2015 under armour was hit quite a bit they have a large glut of inventory now starting to sell to off price retailers
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but under armour seems to have a good understanding of its size an implementation and skew rationalization, along with this selling to off price retailers my question to you is whether you believe under armour is at an inflection point? we're seeing rises in pricing. >> the inflection point was 14-15, and you mentioned the price channel that scares me and why under armour is suffering. the trick is to recognize under armour will be neutral despite the controversy, under armour is still number two thanks for that question >> i'm from philly quick question seems like the u.s. and mexico came to a consensus on the revised nafta. >> yes >> given the conflict with our current political environment, do you believe there will be a renaissance in the domestic car manufacturing?
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>> i do not think there will be a renaissance but if you want to play nafta, go to union specific great play >> boo-yah, jim. >> go, birds don't stand on the sidelines grab the ball, i mean, grab the bull and run with it you can learn a lot from fantasy including how to build a team. much more ahead. i'm catching up with philadelphia eagle celek, stepping away from the field and to congress. where do advertisers stand when it comes to facebook and twitter in congress this week? the "lightning round," coming up stay with cramer
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about football, let's run with it i'm too excited about the kickoff to stop. i'm glad brent celek is with us tonight! [ cheers and applause ] he was with the greatest team on earth 11 years before he decided to retire after the last season's shattering football win. like i'm saying, know when to hold them and fall them and when to walk away i got that from kenny rogers let's welcome brent to the show about what it's like to be a super bowl champion and what it's like to retire after winning a super bowl in football let me ask a question. am i the only one that has a signed brent celek i think you may have signed a few others >> maybe, this is game worn so it is special. >> first of all, you are heart
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and soul eagle what will it like tonight to not be in number 87 but knowing this whole town loves you >> it's going to feel good i think it will be hard when i see my guys out there getting ready before the game. but once that game gets started, i will be the biggest cheerleader out there for them i can't wait for it. >> you have actually been, unlike a lot of athletes, because we have to talk financial literacy i know you because we talked a long time even when coach reid was in charge. you always cared what happened after football why are so many fabulous football players not aware it doesn't last forever and don't make good decisions about money? >> i think it's starting to change now because of all the media that's gotten out there of all these guys going broke obviously, you have some now going broke but they're starting to focus on it more. it was on the headlines when i was young. i just wanted to focus on it
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as you know, i've met multiple different financial advisors, picked what really worked for me and showed you kind of my plan and i think it works for me. really, it comes down to whatever works for you as a person >> one of the things i love about you, you believer in index funds, but you also like "mad money," for instance, battleground stock, you like the stock of tesla give me the reason >> i love it i love elon. i think some of the stuff going on out there, a lot of the media, they portray this, you know, different tesla than it really is. when you read the articles, it's one good article and then there's like 10 bad articles the shorts are just trying to crush them all the time. i'm a firm believer in them. i like the model 3 they came out with personally, i want to get the pickup truck can't wait until they come outside with the semi. they have a lot of good things
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in the pipeline, solar roof they're coming out with. they're a great company. i think right now is a good time to buy, to be honest >> it's come down. i always say look at the balance sheet, too the bonds are not doing that well obviously, this is "mad money. you have the bedrock mutual s&p funds so we don't have to worry about what happens to brent celek. >> yes now, if tesla goes bankrupt, i will be very disappointed. >> this is something i need to ask you. brent celek's name is worth a fortune in this town we all love it you pivoted and not doing hospitality, you're quietly doing what i call building up a bit of a real estate empire. why did you go that way? how did you do that? it's "mad money" and we don't care how it's made >> i got into the restaurant industry and when i did that i
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think i realized the value of real estate. that's what turned me into real estate i love real estate i've bought and sold homes i've developed -- i'm building my house right now at the end of the day, i want to get into the selling, transactions me and my partners bought a re/max franchise and started our own mortgage company and have our own title company. kind of a full-service real estate company we started here in philadelphia three years ago and it's starting to grow really well right now i think i can just add to that >> you're a winner on the field. i think you'll be a winner in this particular pursuit. i want to thank you, brent celek, number 87, former terrific tight end and super bowl champ "mad money" will be back after the break.
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philadelphia edition eagles of the "lightning round" in "mad money. we take your calls play this sound! the "lightning round" is over! are you ready, skee-daddy? hit me >> i'm jared from temple university my question is about carmax, car, buy or sell >> i remain a believer the cars have peeked and we don't want to touch anything involved in that sector >> my name is jonathan what is your opinion on the exxon sector >> i don't think it's that good. it was exxon, right? i'm trying to hear >> excelon >> no. i like exelon very much. >> hi, jim with chrysler being down nearly
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20% since last earnings, due to their earnings and the death of their legendary ceo sergio, is now a good time to buy >> no. because you just said it right legendary ceo, he was the company. i'd wait to see who they get next yes! >> a big city of brotherly love boo-yah to you, jim. >> on your way >> welcome home. my firm is a small cap, up 200% over the past year usa technologies, usa t ticker, stay or sell sell sell >> we know in philadelphia we tell the truth we're honest i do not know that stock and i have to do work. i will not cuff it and say i do. i liked mallford but too rich when i was growing up. >> i'm michael han he isser bush is reaching 52-week lows >> i can't go with them.
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anheuser-busch >> i can't go with it because i think the world has gotten way from traditional beer. yes, sir >> zac from temple university. >> why don't you go out and tell people to -- i like miles white. >> t.j >> 107-109, the quarter was unbelievable people will start buying go ahead >> leslie collins. quick question on u.p.s. >> no, buy it! just buy it! buy u.p.s. something is going on. ups. >> brandan miles from temple university amex and semis >> i think they will go all the way down to the low 40s and stay awamp from that. go buy amd yes. i'm not done >> how do you feel about ex-ellexis >> i liked that a long period of time and nobody liked it so it
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makes me say, don't buy it. >> from drexel university, how do you feel about bank of america? >> probably goes to 35, 36, 114 and city at 71 sells at one times the earnings yes. >> what do you think of nuance communications >> i don't care for it we have so many techs that are down, let's go high high high. >> hey, jim. from temple university what do you think of indo pharmaceuticals. >> i will pass and we will do amgen, that formulation is still very good. and that, ladies and gentlemen, is the end of the "lightning round" >> the "lightning round" is sponsored by >> the "lightning round" is
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you know what, i've got a sneak suspicion the so-called experts who bloviated about the death of advertising on the web don't actually communicate on the web as we look at the dumb stuff facebook and twitter did and amazon, people keep thinking advertisers will break with social media, and hearing they will take their money away leaving the foolish social media
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high and dry one problem with that story, not true 23 years ago, we had a fabulous board member who worked in advertising. he explained to me we weren't going to get a lot of packaged goods ads because our demographic at that time, people in their 40s, was too darned old. i said, what does that mean? he explained people make their minds up early about what brands they like and typically what their parents used advertisers called them wherever they were. they were at ci talbot and magazines and radio. consider today, millennials have a different attitude they have zero brand loyalty they don't care what their parents want and don't even know and concerned about sustainability they look at the back of the label more than the front and google the ingredients they don't have much time to do this between ordering pizza, drinking, going shopping,
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uh-huh, they like to stay and shop millennials shop online. when they find what they want on the web they buy it. since the internet is the point of sale, television can't compete, they can't, and why they're taking potshots at advertising saying they're modern day lo ites i'm including congress they think facebook is uncool but uncool as cbs? would the younger generation sit down and watch sitcoms rather than the internet? and still impressionable despite all the hostile hearings and the naysayers, ignore it at your own peril remember, congress isn't doing squat.
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there's no government appointed social media czar who will reign in these companies or stop them from growing no better media that can replace them love it or hate it, social media remains the best way to advertise and in the end, that's all that matters stick with cramer! for your heart... 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 discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.
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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." ♪ for the most important member of the family. oh! hi, sharks. my name steven blustein. and i'm sean knecht. both: and we're the founders of pridebites pet products. we are seeking $200,000 for 10% of our company.
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