tv Mad Money CNBC December 12, 2018 6:00pm-7:00pm EST
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think about that. >> you don't have to tell me. >> it's amazing. thing for filling in brian honest to god. jw nordstrom bottomed out brian. back to you. >> you like the jwn. >> i won't be on ♪ my mission is simple -- to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to teach you put it in context. call me at 1-800-743-cnbc. >> announcer: don't miss a or tweet me @jimcramer. finally, a day made sense. this morning we learned that the chinese government may be willing to level the playing
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field on trade, at least to a certain extent the prc is scrapping the made in china 2025 plan. we hope which was the communist party's attempt to dominate high-tech manufacturing by shutting out the other countries. backing way from the great digital leap forward, that's a win the united states. which is why the dow gained 157 points and the s&p jumped up and the nasdaq and we were up even more. something we have to start getting used to. because these days rallies have a hard time staying strong into the close as it becomes increasingly risky for traders to go home long as they say. meaning owning stocks from one session to another frankly though the rally was the most logical move we have seen in a while
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let's go through it. throughout the whole tortured trade war the white house has never settled on the single policy there's the trade war camp the guys who want to do business with china, but on a fairer basis. then there's the cold war cap. led by vice president pence. trade is simply one front in a much larger struggle with the people's republic. the prize -- world domination. i am not kidding ever since the fall of the soviet union, america has been the world's sole superpower. china wants to take the place and they want to do it by any means necessary. including some egregious trade practices like forcing foreign companies into joint ventures and then looting the technology. now the chinese government sayed they're willing to drop this made in china 2025 plan. if it's true, that's a big deal. as long as they mean it. but here's the rub we have no indication that china's operating in good faith
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here if the people's republic wants to convince us they should show us with deeds not just words and not just buys of corn and soy. maybe allow mastercard or american express to do business in china like everywhere else on earth. we're now finding out that the chinese companies have violated the sanctions on iran while china's intelligence agency has been hacking american businesses including the big marriott hack. more on that one when we speak to fireeye that's the cyber security specialist the communist party is more than capable of saying one thing publicly and then doing the opposite in reality. ugh! on the other hand, china has plenty of reasons to come to the table. if this news is the real deal, then it is a game changer. don't want to be too cynical how so let's use the stock for example that everyone is focused on. kind of like the market. talk of the collapse of apple stock.
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we know that the iphone maker -- really has the share of challenges but we hear about the weaker sales in china people are worried about that they might target apple. especially after we got canada to arrest the cfo of one of china's largest companies. for example, the court banned a host of iphone models because of the long running patent dispute with qualcomm. the communist party controls all courts so presumably this ruling came with the government's blessing not good but if china is suddenly willing to make nice those apple worries they could go away second, the industrials have been obliterated beyond belief i mean, just terrible. based on that there was nothing china could do to mollify the hard-liners in the white house our people but the 2025 plan is that the crux of the grievances against the prc and if the chinese government is serious about dropping it, then suddenly a deal seems more likely
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the industrials have been a drag on the averages. they get a lot of growth from china. let's call it a whiff of hope. at one point it seemed like a whole cloud of hope. that disappeared in the last half hour. third, investors are starting to realize that contrary to the reputation the chinese government is fallible hey, they're only human. when the first shots of the trade war rang out, i told you that china was a paper tiger nobody believed me because my judgment flew in the face of the conventional wisdom in the myriad apologists on air every day. now though the china economy is slowing, slowing at a level we didn't think it could happen so quickly. fueled by exports though and we cut off the fuel supply. finally, nobody is talking about this that could explain the prc's real reason for softer stance it's the president
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donald trump it turns out is not some implacable foe of china like the hard-liners even as he calls himself tariff man on twitter. as strange as this may sound, i think the chinese are making a calculated bet that they might be on the wrong side of u.s. history if they don't get their act together why? guess what the vice president mike pence. he's the real hawk who above all, above all else, he wants to contain china's geopolitical ambitions when you listen to pence's speeches it sounds like he's talking about the old godless soviet union compared to pence, i bet trump is much more likely to make a deal now let's talk bigger. why did almost every stock fly up on the news today even though they gave up some of the gains this afternoon because without a trade war, it's worth more. hence why so many buyers went for the s&p 500. it goes up one day, then tomorrow more selective. what stays strong on day two
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like the indictment of say high level chinese officials by our justice department, over hacking. i bet that it will be tech again. but some new ones. i think the semiconductor will bottom they could get a boost i like the faster growing chipmakers like amd. i like the prospects of the companies that are trying to move away from chinese suppliers even as it's causing some quality issues along the way think about rh, yes the old restoration hardware dollar stores, they work too remember dollar tree came on i like that. dollar general too they have a decent percentage of goods like kohl's. and there were some other positive distractions today. the endless brexit soap opera might be reaching the conclusion we are hearing that the italians
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are trying to get some logical closure on their budget issues germany is making some noises that maybe the problems with deutsche bank can be fixed that's good. believe me, that's been pulling down a lot of financials because people don't know how big those are. those are three boring issues that there are clear well known paths that can end somewhere, anywhere but at least end, please as these problems hang over like a dark cloud and shroud. oh, then there's the federal reserve. we have a tame producer price index number today there's little inflation because of the massive decline in oil prices the fed powell thinks he needs to stop the wage inflation and every other type of inflation is disappearing what will powell do when the fed convenes next week wait a month but he's committed to one more rate hike and i bet he does it the economy slows down more than necessary and we hope he's done. it's not optimal but i think it's the most likely scenario. i just wish you could create a million new workers to ease the
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shortages. an interest rate hike lays off people to have them be hired again. bottom line, even if the chinese government may be trustworthy, but if the chinese do blink on trade, maybe because of mike pence waiting in the wings we enter a positive, more benign atmosphere that traders don't mind owning stocks after 4:00 p.m. janet in texas janet. >> caller: merry christmas, jim. >> right back at you >> caller: hi. i am looking at united rentals but as you have told us, do your homework make sure the company isn't broken and i have i cannot find anything wrong with this company. for action alert members, we have read your book, "get rich carefully" which has helped me immensely. >> thank you welcome to the club. i think you're right on uri. i was going back and forth with my friend. they really gave out great numbers, buying back 12% of the
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company. i want to get mike back on the show i think this is done to the downside it's insane it's acting as if we are having a recession but we are not i need to go right to matt in florida. >> caller: big booyah to you from sunny florida. >> what part >> caller: tampa. >> because my wife is looking for beach front property where does she get the money for this stuff it's driving me crazy. >> caller: well, i have a question about the hometown steel company, cleveland cliffs. late september, they were testing a major line of resistance in the $13 range towards the upside and with q3 earnings they picked them nearly $150 million of revenues against q3 last year it's now trading 35% lower and i remember you talking about some of the catalysts after the last earnings call. >> but here's my problem
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we have so many high quality stocks that are down a lot cleveland clinic -- i remember, i'm older, i do remember when they had issues with their balance sheet that were -- that overcame them. i feel like that we ought to be much more involved with some of the higher quality ones. if you want to go minerals, let me just say i think that you have to be -- you have to be more in the caterpillar. okay today's rally made sense even though the chinese government isn't the most trustworthy authority it seems they're starting to understand they're on the wrong side of history if they don't get their act together. trade war tensions aren't the only concern when it comes to china the u.s. secretary of state confirmed that china hacked marriott and stole the information from me and other people how do you protect yourself against new cyber warfare? i'm talking to a company doing that don't miss my exclusive with
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fireeye. and signet beat expectations but the shares sank after the report is it a diamond in the rough or really a cubic zirconia? i'm talking to the ceo. and wix has been struggle like the rest of the tech sector but that's just the stock. there's the business that's red hot. i'm going to talk to the ceo so stay 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. (toni vo) 'twas the night before christmas, and all thro' the house.
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♪ there's no place likargh!e ♪ i'm trying... ♪ yippiekiyay. ♪ mom. ♪ the recent breach may be pointing to hackers in china. >> what does it mean for the national security and could they be doing more with our data? >> we do see nation states compromising organizations on a regular basis. >> you can actually lose a lot off the stock price, lose a lot of money from the attacks. >> that companies absolutely need to be doing more when it comes to cyber security. >> you're a pretty sophisticated actor here. >> some stocks rallied a lot
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harder than others just look at the cyber security cohort these names have rebounded dramatically since the lows last month and today they got another boost when we learned that chinese hackers were behind the marriott breach that exposed the security information of 500 million people it's part of a broader campaign of the ministry is of state security, the equivalent of the cia. when it comes to the trade talks this news throws another confounding variable into the mix. if your company wants to avoid an incident like the one that marriott disclosed last month, you need to spend more on cyber security one thing to protect your information against someone in his mother's basement, but another thing to go up against china. fireeye has the best forensics division in the industry, meaning businesses bring them in to investigate after they get hacked fireeye reported a strong quarter at the end of november and we spoke to the ceo on the veterans day show but after the latest revelations i have to dig
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deeper let's check in with kevin mandia welcome back to "mad money." good to see you. have a seat. >> thank you. >> i'm confused. we learned today that the chinese perhaps are going to soften their world dominance in 2025 plan. we hear that the president might intervene positively for the cfo of huawei. but i pick up "the new york times" and i read that the person who hacked my wife's data at starwood was communist chinese. how is this possible >> i think what you're witnessing, jim, is we're still trying to figure out the rules of engagement in cyberspace. go back to 2014 you had the sony pictures breach. first time in my career you see a nation deleting data at a private company. 2015 you see russia change the rules of engagement. 2016, you have seen elections where documents are leaked by
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another nation 2017, you see iran get out in front doing more intrusions than ever before on u.s. soil 2018, we're figuring out where's the boundaries, where does it end? >> i love how you put it in the notes you're not a compliance company, but a software company. if you went into the companies ahead of time and you say, look, here's what bad actors are doing. here's what to expect. you need to know instantly would any of this have been stopped? >> you know, you always want to say you the stop them, but this is a nation with billions of people i liken it to this like going up against wayne gretzky on a penalty shot. he'll put the puck in the net and we're talking about a nation picking on hospitality it's not a fair fight. it's what we do for a living, we respond when these types of groups are successful in their intrusions so we know their fingerprints but you can't really expect
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every company to withstand a cyber military attack. >> what do we do with red team >> well, i think it's important. i think red teaming, that's a ceo's opportunity to figure out unvarnished truth how good their security is. >> explain it to people. >> it's not just hiring people from outside your network to break in, but to break into the corporate network and get customer data. get the ceo's e-mail get to the industrial control system perhaps influence it. your chief information security officer is going to brief the ceo with here's -- you know, we're in the green on this thing. but in the red on this thing as a ceo when you see things in the red, you go i have to do something about that when you see things in the yellow based on judgment by your ciso how do we feel about that are we really in the green and the only way to get truth about how good your security is with red teams.
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>> now, in your most recent discussion at barclay's, you have an interesting talk about how you got people 120 individuals to work outside of our breaches outside of the red team they're in 19 countries. this is your team. >> yes, it is. yeah we want to know -- first, we learn a lot, you know, on the front lines. responding to all of the breaching. figuring out what happened and we want to know who's doing it ultimately, attribution does matter otherwise, there's no risk of repercussions or no deterrents in cyberspace if we don't know who is doing it. >> can you go to the government, to homeland security or maybe you go to the defense department and say, listen, you have to understand these guys are doing this to us, they could be doing it to you. >> we have a strong partnership with the government and with other 60 governments both on the intelligence side as well as on the forensic side but ultimately, we're in the business of protecting our customers from the exact threats that are successful if you're not prepared ahead of time. >> you use the term unvarnished
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truth. almost as if there are companies that don't want to hear it. >> how else do you know truth in security a lot of places it's a compliance drill if you're regulated you want that nice pie chart for regulators you have this control, these people assigned to this control. we're in the green but a lot of products -- what i have learned over the years not every product does what you think it does. and a lot of times you get hit by both sides. the product doesn't defend you from everything it claims and you're only using the 40% of the capability of the product. that's so much user error and mistakes a lot of the pie charts are just an assessment, a subjective assessment that we're doing okay. >> so let's have a database has 500 million names and that is the treasure of what i have. i know that my business is going to take a hit. if those names come out. can i employ you, five other firms and just make sure that that never gets into the hands of the chinese >> well, you do the best you k. but again, i think there are people probably in uniform going
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into the building that did this breach realize this, a lot of times the information has to be shared to dozens of other companies so it's accessible to many different customers. so outside looking in, a lot of people may have the response i can't believe they lost this information. >> right. >> don't forget there are professionals on the other side and the asymmetry is you're not going to pitch a perfect game in security every day you're just not. you're up against some of the best hacker ins the world. >> okay, but has it stepped up here we are trying to have a good relationship with china but we're being tough. they're just piling on, huh? >> i think there have been real changes ever since there's been an agreement between the united states and china that was signed in september of 2015. >> people say they're going back on that. >> people do say that. it comes down to what is fair game for espionage you know, there's a fine line between hacking for security and hacking for economic reasons because those would argue a
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strong economy is security so i think there's always going to be aggression in cyberspace i think globally right now, nobody wants it to dial up another notch. but what i have seen over the last three years is the rules of engagement have broken i'm not sure what's going to happen next. for many nations with the modern capabilities >> all right are you being brought in as part of a suite of products i know chuck robbins at cisco he has an end to end solution are you a part of that or just kind of -- listen, if you want us, we do it alone >> well, we can do it alone, but we like to do it with a lot of other players as well. i don't think any one company will ever own incident detection. there's always a human that can detect an issue. and realize my frame of reference is responding to over 600 breaches every year. so we see the kill shots that you know go through the vest as they say we have six ways into the customer we have services, intelligence, network security and end point and e-mail security and then the brains you know, a box that's like
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adding 1,000 people to your security program. >> we are well past the notion that it's a nuisance we got hacked this week, pressed the wrong button on apple. it was almost impossible to clean things up. what do you do if you know - >> well, you know i did a radio show once. somebody called in from saskatchewan and said, hey, same question i wrote a 500 page book on what you do if your machine is compromised it depends on how. cleaning it up, i hate to say it, you need a brain surgeon to do brain surgery you'll want somebody to clean it up for you. >> do you think that the lines are now beginning to blur between corporate and military i do feel that the military is working on behalf of chinese corporations. >> you know it's been explained to me -- i don't have firsthand experience, but it's been explained that the chinese don't believe our government and our private sector is truly separate but it actually is when i heard it explained that way i got it
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that their economy isn't separate from their governments in many ways that difference just the cultural divide that we have to learn to live with. >> they have the edge on us in some ways. they do. well, we have you. we got your guys got the red team. >> you got it. but we saw legislation people working for the bottom line, what i have observed, the u.s. government is holding the nations accountable. doing it with publicly facing indictments against the north koreans. the dutch came out, they did it with the uk on chinese hackers sooner or later, if you really want to be part of the global economy you have to play by the rules that the other nations want you to play. >> in the meantime we have to have fireeye kevin mandia, he's done remarkable work on how they have transitioned from being an appliance company that comes in after to offering a suite of programs that work your muscles look good, but we should be seeing
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♪ every kiss begins with kay timing is everything in this business the case of signet, the jeweler retailer you know as jared or kay's. signet brought in a new ceo last year drosos boy, is she spear heading the turn around. and signet erased all the gains and then some, they're down 50%, including the 18% decline last thursday alone the problem -- nothing the inversers are worried about -- investors are worried about the competitors. we need to get a better sense of what's happening here which is why we visited virginia drosos, the ceo, in edge water, new jersey take a look. 'tis the season.
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tell me about this store and how you're going for holidays. >> well, thanks, jim great to have you in our store we're in one of the best performing footprints. we are excited about the holiday season we have 90% of the ads that are new. so we're driving traffic into the store where customers are finding lots of beautiful new merchandise. our love and be loved collection, three stone rings. beautiful products so we are very excited. >> those of us who bought neil lane know this is a high end jewelry for what we regard as kay. at least the old kay. >> you know, kay has a range of jewelry for everyone's budget. in our bridal collections for example, we start down in the hundreds of dollars and go all the way up over to $10,000 depending on what kind of center stone people want to choose. >> you have done remarkable work in trying to repair what you call -- it's troubled -- let's say a troubled culture where are you in the
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transformation >> well, we call it a three-year transformation we are seeing some good green shoots in our customer first, omni channel and the culture initiatives. i think our team is really passionate about what we're doing. i mean, you know, look, i mean, this is an exciting place to be at the holidays. i think you can just feel the energy of our team. >> now, on your conference call in december, some people were concerned when you say you see a more competitor environment, you actually talked about the idea that there could be clearance. i did not know the things. you're so transparent. a very big change from the previous culture how can sales be so good then? >> well, we're very transparent about what we're seeing in the business, jim, for sure. we always have clearances as part of the business all retailers do ours has been a little higher this use because we have shipped in so much new product about a year ago, 20% of our sales were in new merchandise. this year more than 30%. so it's really representative of
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the strategy change that we have put in place. >> everybody wants to be in this business, i know the department stores are stepping up jewelry you have more than just kay. how is everybody doing in the different name plates? >> well, we have some competitive advantages that we're leveraging for this holiday season certainly our service is one of those. and our omni channel experience. so a lot of retailers, people can just go online and buy things and that's absolutely fine the jewelry business, people want to connect at omni channel journey. 40% start their search online for bridal jewelry or for gifting but for bridal, certainly more than 90% of the sales actually happen here in the store with our expert consultants. >> seems like the bridal has good gross margins. >> well, our business in general, we think is -- you know, healthy from an operating profit as well as a top line sales standpoint. >> i know you're a conservative person and yet, you bought back from
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2016 to 2018, from 79 million shares down to 51 million shares that's pretty aggressive is that the right use of capital the stock has come down. average price of $55 i know there are people who a are -- took profits after this quarter. is buying back stocks still right? >> well, we're very thoughtful about our capital allocation strategy and what we declared at the time that we outsourced the credit portfolio we would use the proceeds to buy back stock what we said about capital allocation, first we'll invest in the growth of the business. like in the same store sales growth so that's by -- you know, far and away the number place. >> i know you were troubled when we first started to talk about the way about some of the credit issues you did talk about claims experience that did seem to be -- hurt the bottom line a little are we through that?
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>> well, the concerns that we had last christmas season were real we had operational issues with how we had worked on the outsourcing of our credit portfolio. we fixed those and we feel very good about that in fact, we invested four hours of training for every single one of our jewelry consul tapts in kay, so they can help the customers buy the products they want this holiday. >> i'm thrilled you want to grow where's the money being put? i saw the piercing pagoda numbers. it is on fire. why not put some money toward that, because that is -- i know for my kids, piercing is the millennial experience. >> yeah, piercing pagoda is on fire we are excited about that business one of the things that's doing so well at piercing pagoda is gold we have beautiful gold jewelry, chains, earrings, bracelets. so we have outstanding gold
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selections here in this kay store ranging from $50 up to $9,000 for a beautiful diamond encrusted statement necklace. >> okay. so just last thing i want to spend some time on the culture because this is something that -- you came in to a situation that there had been some negative press. had nothing to do with you about a male dominated culture you have brought in fresh people who are trying to root out anything that's wrong. where are you in this transformation because you said it would take three years. >> yes first and foremost, diversity and inclusion have been hallmarks of my career i would never be part of a company that wasn't pristine on that front so i think we have got that very clear in our culture it's also an exciting place for talented people to be. >> tell me. >> look at our store manager here district manager our vp of regional operations. our division vp. women, all the way up the ranks. >> i think that's fantastic. >> 70%. >> 70% - >> 70% of our store managers
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across the country women. >> top management? >> more than 50% and 50% of the board of directors for a public company you would know is a fantastic result. >> definitely. >> but it's not just having women in the organization. it's about having a place that everyone can bring their full talents to work every day. >> still able to find good people it's tight labor market. >> it has been a tight labor market we are fully staffed in the stores we are feeling good about that. >> sounds like -- i know some people are struggling right now. some of the mall based obviously you're giving a pretty positive picture even maybe even more positive than the december 6th. i mean, that's not that long ago so obviously you're having a good look at it. >> i'm trying to give the same picture actually that i gave on december 6th which is we did raise the full year same store guidance after having a good first three quarters we feel like we have the right merchandise in place right marketing. the store teams are raring to go so we're focussed on executing a
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averages like this one, what do we make of the stocks that refuse to levitate look at wix, the cloud based web design company that helps regular people and businesses create their own sites they're down $3.41 today i scoured everything, nothing in particular institutional chatter about selling. i mean, i think that this story is a solid one, maybe you're getting a chance to buy it when it underperformed. until roughly three weeks ago, wix had more than doubled year to date. going to the end of september thanks to the series of strong quarters like many of the cloud based peers though, the stock got annihilated during the market meltdown wix reported a month ago that the numbers were solid but the stock can't seem at this moment to get any traction. even though they announced a new suite of small business software we have to hear about. let's look at this one with avishai abrahami the cofounder of wix
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find out more about how his business is operating. good to see you, sir i had to put the stock in context. because i can't find any reason why your stock went up -- the new products are great the numbers -- talking about 20% -- you have 137 million registered users >> yes, we do. across 140 that was the last quarter. >> all over the world, right >> all over the world. 190 countries. >> how many languages? >> we support 17 just in our product but people can load into that whatever language they want i think we have 300 languages used by wix. >> i know the numbers are good but something you and i have not talked about your company empowers the little guy to look every bit as good as the big guy. i defy anyone to be able to tell whether one company is rich and the other company is poor if they use wix. >> it is true. we focused a lot on giving the tools, the small guys against
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the big companies. by having an amazing website and everything they need to supply high quality service to their customers. >> so the new product, what is send by wix going to do? >> when you build the website the next thing to do is start bringing in customers and then you have to communicate with the customers. chat with them, send them messages this is what ascend is it's a way to bring more traffic to your website. okay, then it's a small crm and communication tools to talk with your customers what would be 20 different products and integrated them into one consistent experience. >> how much is that per month? >> starting price is $20 the most expensive is $40. >> we use you in both of our restaurants. it's not expensive you managed to keep it at a low price. how do you do that, frankly? i know you hiked the price for some older products, got rid of the lower tier
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but you don't cost that much. >> so we believe that, you know, if we have a really good product, all right, and people just learn how to use it and then they use it themselves, support the marketing and by doing that it enables us to deliver great service with a reasonable price. >> okay. i'm very interested in payments. you say you've got a payment system in brazil you use the term massive adoption. >> yes. >> tell me about it. >> so we didn't announce the full numbers yet, but we see in brazil it's very hard. if you have an online business, you want to be able to charge credit cards it takes between three to six months initially. it is completely, completely insane. >> okay. >> so we did something that you can go and do it in 20 minutes all right? that's the thing put it in the e-mail, set it up, you're done. you can start charging money now we're taking this and offer it in the united states and the europe in the united states obviously it's much more easy to charge money online
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but we do believe this product brings a lot of additional benefits >> how about code? >> code for us is one of the most amazing things we did we opened wix programming into wix so you can build anything you want on top of the wix and we take over your databases, the security provisioning everything else. we do it for you so to build an application, instead of renting services, taking databases, use the wix to build something. and then it's ready. >> now, i think maybe wall street wasn't ready for the fact that you decided that you dropped the lowest tier. that you'd rather have a lot of good, high paying customers. i mean, to me that makes a lot of sense i mean, i guess people didn't understand you have 26% growth in premium subscriptions. it's fantastic business. why do the other >> well, the way we look at it, we had -- we had the advertisers, more advertisements for wix. and it didn't make sense.
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>> no. >> a lot of the customers were complaining about it people said, i'm paying you, why are we having it let's get rid of it. >> it was a good move. >> really it was actually up. >> one last thing. i need you to talk about the idea that there are some people that -- a lot of people are using the code some people have it four times you said, multiple subs. what that is you have a lot of professionals uses wix. >> yeah. we have about 50,000 people that we believe are building websites for other people. >> but you refer people. as you describe. >> yeah. we don't do it ourself people come to us. i need help. we refer them to one of the resellers or the developers. >> how do you find those because i thought that was fascinating i said to my wife, ask wix >> so a lot of them approach us, can i find the -- i'm a designer
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and we matched them. we have the wix arena where you can find a lot of them. >> you're a god send for small businesses like us who frankly are over our heads but we're not anymore. >> you should try it it will help you maintain the relationships with the customers, know when their birthday is, send them gifts >> thank you so much avishai abrahami, the cofounder and ceo of wix.com no reason why this stock should be done other than some macro reason that somebody didn't like high growth stocks "mad money" is back after a break. duncan just protected his family with a $500,000 life insurance policy.
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>> announcer: lightning round is sponsored by td ameritrade ♪ >> it is time. it is time for the lightning round. sell sell sell sell -- buy buy buy buy -- sell sell sell -- [ buzzer ] -- then the lightning round is over are you ready, skee-daddy? james in virginia. >> caller: i'm calling about stylus one. >> i like that company it's got great growth. 3% being not that high i believe in the data center i don't believe it's slowing
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down to john in new york. john >> caller: how are you, jim? >> i'm good. how are you? >> caller: i have been following you since 1981 i have been in the market since 1981 in investing. if it wasn't for you, i'd be lost most of the time. >> you're very kind. >> caller: you're the only person out there that is making sense of this mess that's going on in the last three months. >> well, thank you very much >> caller: i think, jim, that the inmates have taken over the asylum on wall street because it makes no sense what's going on in this market at all. >> none that's why i want to see the town halls convened by the s.e.c. and we'll talk about what the real investors want like you and me, get real investors in. not flitting in and out. >> caller: the s.e.c. is not moving on the things they're killing the small investor. >> i agree with you. i have more faith in another s.e.c. -- the one that appears on another network
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how about a stock? >> caller: well, overall, i'm doing very well with my portfolio. thanks in large measure to you. >> thank you >> caller: but there are -- there's one stock baffling me. i invest in new core and u.s. steel -- >> sell u.s. steel keep nucor very, very good balance sheet. let's go to rocky in texas thanks for the kind words. rocky. >> caller: thank you for taking my call. and i'm a big fan of yours i like your energy and everything. >> thank you >> caller: my stock for today is southwest airlines >> boy, that stock -- it's down 22%. i really -- i think kelly is too good to tell you to sell it down here, but oh, man, other people like united a lot better bill in florida. bill >> caller: hi, jim happy holidays from st. augustine, florida.
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>> oh, beautiful oldest city. >> caller: so my question to you is about a regional bank pac west it hit a 52 week low yesterday it's got a - >> this yield is 6.7%. i'm not worried about the yield but i can't have you being in that stock it's too nightmarish any bank that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade ol. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.
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time to make a bold call i think facebook the stock is ready to bottom. maybe it already has maybe it can go higher why? because when you listen to the retailers that have reported lately they all sing the same tune the time has come to spend more money on digital media that's the theme of the quarter. especially those who have been left behind. digital is the best way to get traffic they say it's mentioned over and over again. practically every retail conference call i have been on facebook, it's become unavoidable. i know it's a hideous investment, manager made unforced errors and they're down to $144 as of today. the company is despised but man if a chain of stores wants to bolster the company, a chunk
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goes to facebook tastes change. instagram is a lower margin business but facebook owes instagram. if you want to hit influencers or get the word out, you can do it with facebook good luck driving traffic without the king of social media and plus you need to place your ads where everyone can see them. twitter, but they haven't been as successful. snap is falling apart. google is an option but it's clogged with ads while amazon is effective for most retailers it's a competitor that leaves facebook and instagram. there are only so many places to get the word out on the web. facebook owns two of them. so why is the stock so heavy despite having 20% growth? i think can three reasons. maybe the bad publicity is
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driving people away. and facebook's top executives adopt what i think feels like a bunker mentality i mean, look, that's what it needs, an adult to soouf r supervise. maybe all the advertisers are going to amazon because it's better at identifying consumers who want something to buy at the point of sale. we don't know how much these three issues are hurting facebook right now but we do know they lost a lucrative revenue stream they can no longer sell your data to the highest bidder we know they need to spend actual money to police their sites. those are dead weight losses look, if we all want to know -- we all want to know if facebook can be trusted can we trust it? for advertisers though that's not the same question. they want to peddle the wares with the best reach and i think that's still facebook and instagram. amazon is better, but amazon is a big competitor that's why i think facebook stock is bottoming here. the company has a mighty buy back, all but ignored. they just started it on friday
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people don't seem to care. they care now. i think they can start turning things around. i have to tell you, i think you can buy the stock. next time the market takes a header it's worth doing it. stick with cramer. or even tr. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad,
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-that more accurately assess a business' chances of success. this is a good investment. she's a good investment. get ready, because we're helping leading companies lead with digital. last friday when we did our game plan i said one meeting you must watch is the meeting for lowe's the analyst meeting led by ellison. it was a total tour de force they raised guidance they have laid out a way to compete with home depot. i think this stock is one that you can buy on any dip even if you don't like the housing cycle. that's because management is executing and execution is the key to a retail stock going higher there's always a bull market somewhere and i promise to find it for you right here at "mad money. i'm jim cramer see you tomorrow male announcer: the money,
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