tv Mad Money CNBC March 5, 2019 6:00pm-7:00pm EST
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>> i think there's nothing wrong with salesforce or oracle. let that one come to you prior to the earnings and that's where you buy it. >> great stuff thank you. 5:00 tomorrow night here at the nasdaq "mad money" begins right now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull 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 some want to make friends and i'm here to help you make money. call me at 1-800-cnbc. who would ever think i'd start a show with that if we don't get a trade deal
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with china some time soon, i think this could be a real problem which is one reason yet market couldn't get much traction today or yesterday. today the dow backs the 13 points and it really gave it up in five minutes and the s&p declining .11 and the nasdaq with 2% and i know it seems like a from the line and there was more tweak than that look, when "the washington post" prints a headline, and i quote, china's communist party is battening down the hatches as the economy slows, end quote, you know these worries have gone mainstream as they prepare to celebrate the 70th anniversary, the article talks with a probably slowing economy china's gdp growth is at 6.6% already the lowest number in decades and obviously some of that is on us and the trade war is not good for the people's republic, but this story gives you a sense that people in china are increasingly dissatisfied with president xi's economic
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mismanagement. the wall street journal published over the weekend about how xi has doubled down on authoritarian measures in order to stifle descent, aside from china's all-powerful presence for leave, the people's republic may be in a more perilous position remember, the old conventional wisdom was that china had an advantage in the trade war because they're a totalitarian regime that don't have to worry about pesky things like public opinion. xi can just wait trump out now we're hearing a very different tune president xi has been frantically trying to stimulate the chinese economy to absolutely no avail. china's stock market started rebounding, but why? only because there is a newfound sense that there's some hope, some hope, that he might make a deal with president trump. there was a piece behind china's desire for a trade war behind trump, who contends that the regime is in real trouble. listen to this, and i quote.
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if the chinese economy teeters further mr. xi will have to address his abiding worry, instability. the write er goes on to suggest that he works hard to ingrash yat his subjects huh? the president of china he -- he's got to worry about public opinion. i mean, this is not how we're used to hearing about xi, but if you remember, even chairman mao, he got side lined when he wrecked the chinese economy. president trump seems a lot less concerned about ingratiating himself, and exactly what i'm talking about is simple. if president trump reads the papers no assurances there that he may say to himself, wait a second and i have this fellow, xi, i have him on the ropes and the manufacturers pouring out of china and the heck with the guy and wait until we walk away. if you're the president, have
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your minions have a series of impossible -- and a commitment to buy apple iphone xs and i pledge to build the world's biggest factory in detroit, and he makes it with $100 billion and the intellectual property and the insistence that the companies can operate in china without joint ventures and i'm starting to think he might be then i can see the government making a series of possible requests that would allow president trump to walk away and they will accept much harsher terms than they'd be willing to when the process started come on, he'd love that. the base would eat it up, the base and while that might be good for the united states over the long haul and in the short term there are a lot of american stocks without a trade deal. i'm not saying this is how things will play out and i see plenty of signs that investors will bet on the outcome in today's session and yesterday, too.
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first, let's see, what are someones that i'm looking at, and it's been trending down and it's been pretty ugly and it's a stock that's caught up in the trade war and the semis ended up being excluded with chinese goods in favor of chips from korea and i see the semiconductor equipment stocks and they're part of the thain that could be hurt the most. take a look at the the stocks of 3m, caterpillar and boeing and they've all gotten weaker and apple stock seems to have run into a wall. these are all signs that a trade deal might prove to be more elusive than we think either because the talks aren't going well or because trump might realize that he's got the upper hand and he's got the cards from walking away from the negotiations and now that he's clearly, clearly, i'd say oh, man is that symbolic, that he's clearly got the upper hand don't forget, trump's all about the art of the deal and right now that may mean it's time to play hard ball mike pompeo said it could be happening right now. the stocks get hurt in a no-deal
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scenario and the real standouts are the winners here and the stocks that have no exposure to china and my acronym for amazon and google, they're flying and there's a lot to like about these companies and they're still spending a fortune on instagram for influencers and that's all facebook, and i think that's a huge buy here and yet right here, but the analysts who like it, they're all so afraid to pick up the paper and it will turn out that they sold, i don't know, their mothers to whatever, who knows what they do at facebook we write the stuff, right? alphabet showing some leg these days and even letting sales force become like it's a super important climate. it's got so much going for it and it's not getting enough credit and as a matter of fact, one of the most underowned and hated stocks i know, and remember, they have zero exposure to china and amazon's far flung and the latest initiative has nothing to do with the republic and basically making the strip mall power and the center for the charges and
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ckss and that stock is going down until they started to talk about the amazon partnership i don't -- when i think of calls i don't think of china >> netflix suddenly the bank stocks are the perfect growth stocks for the moment can you believe it trump can walk right from the negotiations and it's not just a visible text and the health care insurers and they'll finally start catching a bid after the hideous days and these winners and losers may be logical hedges based on the trade war and he's given big business enough of a boost with his tax cuts and he can afford to alienate the china. the wild card, the president may not want the stock market to go down because he views the average as the nielsen ratings the bottom line, at the end of the day, i don't think these bets on the trade negotiations are being made with great conviction, however, if the president reads or hears enough about the xi in trouble stories you have to believe there is a decent chance that he'll walk
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away and see if he can get a better bargain position that would be good for the country and in the near-term they'd be pretty darn rough for the stock market i want to go to tim in new jersey tim? >> how are you doing, jim? >> good. how about you? >> i'm 54, and i recently retired and i'm calling about boston beer, symbol samsam and i bought it as an ipo at 13. >> wow >> i've had it for over 15 years now. the question i have is it seems like it has this head and shoulders effect a few times in the last few years and i don't know whether to buy, sell or what and it almost seems to hit resistance at 310. i don't know what to do with that, actually >> look, first of all, congratulations this is how you make big money in the market and it does happen this gentleman retired and i think that sam is one of the few beer companies that's doing well if you take your basis obviously, because then you play with the house of money. they're doing well
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geez, they may be doing better than constellation right here although sec is responsible for loads of the growth in the category let's go to john in new jersey john >> john on the boardwalk from the jersey shore, exit 98, ball bell trading approach for 2019 i did great with hfc i wanted to know your thoughts on lthm and live and corp and a spin-off of fmc. >> i'm exit 103. i also can take 105 if i have to all right. i don't like the lithium markets and i do like philadelphia where that company is and i go to ocean grove and in ocean grove we don't buy event corp. we don't buy lithium and we buy nice people and say hi to each other. these shorts and longs aren't in a great condition, but you have to believe that the president will walk away if he starts reading the articles about how xi has to be worrying about popular opinion. i'm telling you, that xi might
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be a little more precarious than people think "mad money" tonight, inspired to use more than 1 million surgeries and you have the johnson & johnson moving in there will it position itself? how about medtronic? the ceo is joining me here for the first time tonight it's a big book, booking and someone worked for a year to get it and bank stocks are in this market and a few of these stocks soon pull away i'll go off the charts and a small corner of jack dorsey's empire can help countless businesses and i'm talking with the head of square capital i know you love that company and see how it differentiates itself in a competitive market. so stay with cramer. ♪ 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
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♪ ♪ right now we are witnessing a wave of consolidation in the health care space. you know all about the big pharma players that are acquiring smaller biotech firms. and we are seeing something similar in the medical device space and next year in medtronic and a few weeks ago j & j, and clearly these companies think they're a value with this industry and the key of the space is intuitive surgical and stocks since we basically started the show and isg for you home gamers. it helps doctors perform all kinds of invasive surgical procedures and i have to tell you this business is on fire. when they had the most recent results and the quarter had a little hair on it and minor earnings miss and the stock sold off and upon further review the whole mess was a $25 million charitable donation and meantime the business is doing great and they sold 34% up year over year
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and more than 70% are now recurring because they sell consumables and every time the doctor performs a procedure on their hardware that's huge. no wonder the stock quickly turned around and there was an fda approval and the ion, lamineral system and it was a tongue twister for me for conducting minimally invasive lung biopsies and we'll call it the ion. >> let's check in with the president and ceo of intuitive surgical have a seat. >> thank you for having us out >> basically since we started the show, and i know the product. i think it's just fabulous, but it's now more than a product it's a big ecosystem and i just wish you'd tell people how huge it is and can be. >> thank you for having us out i know we've been trying to get this >> yeah! so glad it worked out. >> the way we looked at that time we're in the business of helping our customers which our hospitals and surgeons deliver
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for the patients and better outcomes and better patient experience and better experience for the health care team and lower total cost our total experience to date is 6 million procedures and in 2018 we grew surgeons and their procedures grew 18% for the year and as you said we're getting ready to launch the product and a couple of other products and xp and it's an exciting time >> talk about the eye and these are things that people may not be familiar that you have that are really in your arsenal now >> wonderful the way we think about it and you talk about great outcomes and one of them is how do you get into and out of the body with less damage to healthy tissue and we know lung cancer is a major disease state and the early diagnosis of lung cancer is likely to create better long-term outcomes for people if you can find them sooner and this product trends orally into the lungs and it uses computer
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systems to help navigate. >> trends orally what does that mean? >> this flexible catheter goes through the mouth. so instead of making any cuts. there are no cut ps upon it goes into the body and navigates the lungs with computer-aided control and the idea is to pull forward definitive diagnosis in time so a person with a league gets definitive diagnosis and that's the goal >> that's incredible. >> it's fantastic. >> this book came across fantastic voyage that's a fantastic voyage. >> it is a lot like it >> yeah. that's remarkable. now talk about reliability because i think that when i did a fund-raiser for my local hospital the thing that stuck out for me is the da vinci machine was that you should go to our hospital because our hospital is now more reliable than ones that don't have it >> so what are hospitals seeking to deliver for their patient community? they want to have the best outcomes, but they also need predictable outcomes and have
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ecosystems and not just the technology and the product and everything that goes around it and analytics, training and proctoring and other things that help get a great result. so you want that great result to be predictable and not just possible, but predictable. so the products have to be reliable and the process has to be reliable. >> j & j and medtronic are two great companies and they want in they see that there are great profits to be had and there are fabulous companies in being reliable and we all respect them can they come in and are they in different parts of the body? >> we'll see over time clearly there are some companies that have entered the space in orthopedics. hips and knees and spine, and intuitive is not currently in that space in some places they're bringing robotic surgery to other parts of the body and there's clearly an interest to do the things we kind of do, as well and honestly we see that as the validation and we've been at it for a long time and i started in this space, and i didn't start the company in 1993.
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so to us inevitable and i think the way we think about it is the following. there is an assessment and what can be improved? customers will share with you that they're very open and then there's design, development and deployment and those are hard to do the magic is doing all of that well, and i think they have smart people and they'll have to do it. >> sure. >> think we're quite well positioned >> when we talk about the goal on the mystery and we have better outcomes and the recurring revenue model and i always say intuitive surgical is consumables because, look, these are institutions and you make money in a terrific way because the more you use it, you should be paid for that and it happens. >> so we look at creating value with our customer and so how does that happen so if you get better outcomes and you're more predictable and you can lore the cost per patient episode and these are sensitive and sophisticated and so we want the performance of
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our instruments, the things that snap on to the robot to be highly reliable throughout their useful life and so they're used multiple times and clean with the hospital and when they wear out we replace them. >> how about china, they have a quota system which is surprising to me, and why wouldn't they have more irg machines and they have huge hospitals and they have a million people die of respiratory illnesses and this is a natural fit with china. >> over time, we are very interested in helping the chinese health care market both in the da vinci space as well as the ion space and we have a good partner in china, and we created a joint venture with them. right now we are a supply constrain -- >> supply constrain? >> not from the point of view of production, we can produce system, but in terms of how many we can deliver we've just gotten a new quota sx and we have the latest
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appreciation for xi and we are getting excited about it and you are absolutely right lung cancer is a big issue in china and we expect to see ion over time make a difference in the market >> do you follow the trade talks or is this something totally separate by the health care system which saves as many lives as they get. >> we are impacted by the environment as it is. >> on the one hand, for sure we would like to see easier business opportunities and relationships and we deal with the world as it is and not as we'd like it to be we are quite pragmatic about it and right now we feel like we're making progress. >> all right you've made more than progress for the shareholders and for the system any most importantly the customers which is the patient >> that is gary gutter, ceo of intuitive surgical isrg and it's one of the stocks that in every sell-off you should be buying the stock of isrg. "mad money" is back after the break. for your heart...
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for ages the fang stocks, and then in the fourth quarter of last year the fangs fell out of favor netflix had started rolling over and then amazon, alphabet and google joined them in the meat grinder and the whole group sold off dramatically and even when they rebounded in the christmas and fang never regained the leadership status and fang has been a big problem for the market because they are so deadly instead what happened the growth-oriented semiconductor, and while fang was demoted to rear echelon duty. with the market suddenly turning against the highfliers and tonight we're going off the charts and the terrific tech mission who is the founder and president of stock market mentor they've always been my colleague and friend at realmoney.com
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because he's seen something incredibly intriguing in facebook, amazon and alphabet. based on the action, he thinks they could be ready to roar particularly facebook and alphabet look at this fitz has a record and it's a great track record and battered internet stocks. high told us many of the chinese stocks had bottomed and since then jd's stock was down 35% and off the chart it gained 20%. we certainly attacked me enough on twitter and it's the kind resurfacing a bad college draft. so when he tells us the facebook and amazon and alphabet have potentials here and particularly facebook and alphabet. we have to take them seriously so let's start with the chart and it will be beautiful and you'll be surprised facebook which was obliterated last year with the company's bad behavior and it was selling your personal data to the highest bidder
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this stock went down too far too fast, though and as the new year turned around, facebook's business didn't dry up and they had a blowout quarter and turns out nobody seems to care about privacy. we love that the company seems ready to rein in its spending and the stock was higher although it's still roughly 47 points away from its all-time high these levels, facebook has broken out after the 200 day that's a long-term measure and huge for technicians and there are tons of traders who never even considered owning a stock and for them, facebook is buyable. now you see these black lines bordering the action they're known as bollinger bands and facebook has been
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experiencing what's called a volatility squeeze the bands are separated by 7%. look at how tight things are, okay why does this matter bonds are cyclical stocks tend to get sleepy and trade sideways for a while before making another big move and that big move is huge and facebook was in the resting phase since the big spike. look at this it's doing nothing that's doing absolutely nothing. late last week, facebook started breaking out and thinks the volatility squeeze can result in significant upside it's not just dressing it's about to take off it's 50% of the decline to december and it's 5-0 of that and often stocks experience profit taking at a 50% retracement and that's not happening here and again, that's a very positive sign and facebook could be rallying to 200 and the stocks breaking out at 170 and if it breaks down below that level, if facebook
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falls below 150 and it invalidates the bullish thesis, and today's breakout above 70 is a huge step and you watched that stock all day and you watched how it did yesterday, and this thing's got mojo the next is up is the daily chart that looks good. this is the parent of goggle and this is another stock that has been working lately and it still remains well off its highs and like acebook, it's been an uptrend since breaking out above the 52-week moving average people don't talk about it much and alphabet had a failed breakout in early february and that was a true bummer and this is what really kind of faked people out, right? and the stock popped above the 200-day moving average and the fakeout. fitz says there wasn't enough demand for new buyers and the supply from the sellers and in
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short they had more time to show with facebook rest fast forward and it once again breaks out above the 200-day moving average and the stock has now rallied for eight consecutive days and the rising volume and that was good volume, all right? to fitz, that means urnd under accumulation and money managers are able to find it hand over fist and the stock couldn't seem to rally above its persistence which forms a symmetrical triangle pattern okay this is a continuation pattern where stock marks time before resuming the previous move and it is on fire, with the stock currently at its highest levels as long as it is above 1,100, and he thinks the stock can keep climbing and it might have a lot more room to run, so again, like facebook, this is our goal
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that's our target and this could be breached. so i think that this and facebook are fabulous, fabulous charts and finally, there is the daily chart of amazon which is different. facebook has already broken out and amazon has done well over the past week. what's the deal? amazon is still trapped between the 52-week moving average people don't like to buy it below the 200-day moving average and that's a no-buy zone, so according to fisk, there are supply levels that need to be absorbed and he liked the fact that it was on friday and the 200-moving average of 1,726 continues to act as amazon's ceiling of resistance can't seem to get past that it is too early to -- there's very little advantage if it breaks out. >> and this is how technicians fuel the world
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for fitz it's confirmation without triggering the cascade of profit taking and you may pay a slightly higher price from a technical perspective, but there are fewer ways for your trade to go wrong do you remember? ooum doing investing we don't keir about any of this. you think it will go like this, but traders want to wait for confirmation above the 200 it's the stock to watch, but not to buy if the stock can rally 30 points from here and hold at that level then he thinks you've got to step it up on the other hand, if amazon drops below the 50-day moving average at 1610, it's probably not worth the effort now my view. i like the fundamentals here i think the stock gets cheaper as they go lower it's not something you should dump, but you may need some patient fence you're going own, not rent amazon here the bottom line is that at least some parts of fang got the back and you should wait for a real
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breakup before you pick up some amazon and based on fitz's recent track ridiculous along with the fundamentals i'd be a buyer of both alphabet and more importantly facebook right here. the latter is particularly tempting, facek bo, we're learning about how the company may be finally reign aening in itself profit any something that's not about to believe tha% would happen. >> it's a pleasure to speak with the goat from wall street. me my friends listen to you every kay. so thank you for where you what do for us. >> thank you >> i want to ask about zora, and i'm recently noting the downgrade from goldman sachs with the $18 price target. >> right >> as well as a lot of recent insider selling. i'm getting a little concerned about that as a long-term holder, should that be a concern? >> sarge guilfoyle who writes
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with me at the street, it's his favorite stock of the year i thought the downgrade was really a little too much and i think team zeus is doing a good job and it's not an expensive stock and i, too, am a big believer in subscription economy and i would own the stock and i'm not that fearful of it i'm not. i think the business is good let's go to mark in europe, please, mark >> hi, cramer. >> hey >> i'm talking about the storage d , and mixed guidance for q4 and now their co-founder and vice president dave heights is retiring i know you don't like to see that, but what do you think? >> i've got so many that made the quarter that are down anyway i know that sounds too brutal, but that's the way i play it why did they miss? and then you have to stay away from that one. no reason to own it. some parts of fang have
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definitely gotten their above back i think they're worth buying right here and maybe you wait to pick up amazon and charitable trust owns all three, biggest position join the club. much more mass money is not worth for the small card reader and can they elbow it aside because you guys love square we answered your -- i'll tell you why history says that that may be the wrong move and tonight's edition of the lightning round so stay with cramer ♪ (butcher) we both know you're not just looking for pork chops. you're searching for something more... ...red-blooded.
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♪ ♪ one of the great underappreciated stories of the year is the way paymentech tech companies are branching out into the money lending business take square which you probably recognize from the point of sale technology that can turn any phone or tablet into a credit card reader or the cash app that's taking share in the peer to peer payment space. for me the most intriguing part of the story is square capital thank to the point of sale systems, square has an enormous amount of data about how much money their clients are actually making if you're one of the small
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medium-sized businesses that uses square they literally have the finger on the pulse of the cash register and that gives them a better view of your prospects than say a bank. square capital doesn't have to worry as much as being paid back because they can collect interest payments from a business receipts and we'll talk to you more about how they have been one of the most conservative lenders i've ever seen and after the company reported and the next quarter given the stock that had run up dramatically and anything less than perfection and i had heard since it was 12 bucks and 72,000 business loans totaling four 72 million last year and up 55% year over year and i think it's time to take a closer look and the chief officer of square and the head of square capital to hear more about how they're revolutionizing the industry welcome to "mad money". >> thanks. >> how are you >> wonderful
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wonderful. >> i'm a client in full disclosure of square i'm surprised we haven't crossed there. welcome to the show. >> i'm happy to be here and i think the points of the access that square provides is spot on. we extend to small businesses that never had access to credit and i'm appreciative for your comments >> you have the restaurants that have 650,000 reps and i'm in that business, unless you're incredibly well capitalized you're going to have trouble. >> yeah. >> but you may be a real good payer. only square empowers you, though >> yeah. no agree, and we've done a lot of business with restaurants across the country it's a huge portion of our business, and i think one of the unique differentiators of our product is that we can see the data that comes across payments and we can see the success of restaurants who historically have been left out of the feignable system because of the type of business that they are, but the reality is they're wonderful businesses and if they just had access to credit we
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could help them grow we could help them get through weekends we could help them get through variations in their cash flow, and i think that's why we're so proud of the product that we have >> when i first met sarah fryer who has now moved on to next door which is a cool opportunity. >> yep >> i said come on, the restaurant thing with capital and you have a couple of thunderstorms on the weekends they don't stiff you no they're great risks for you. >> they're great risk. what happens is a seller, assuming that they're processing consistently on square, on their dashboard we let them know that they have a loan that's available, and it shows up every day that they continue to be eligible and they can click on a screen, three screens through and with the next day they can have the capital and so when you see that weather might change, you might need to buy something. something breaks you want to build a new facility, you take out the loan and it gives you the flexibility where let's just say in that
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situation where it snows and you're close for three days and you pay back with a percentage of car swipes. so in slow days you wouldn't pay any of the loan back and then on faster days it obviously pays back more, and so the average payback period for our loans is about ten months, but it gives small businesses that flexibility when they need it in just the situation you're talking about. >> it's appreciably lower than most lending institutions. >> we're proud of our default rate and we say that it is approximately 4% and the way we think about defaults is that it's an input and not an output and so we look at how we manage risk and how we make sure that we're being prudent from a risk management point of view and we can open up access to small businesses that have otherwise not been allowed into the financial system. >> you have the cash app and the deposit and i like the square to
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square seller where you actually waive the 2.75 which is really empowered. >> and the new square card we announced not too long ago, the beautiful square card and it's white and gorgeous and it's a debit card for businesses and so it makes a business' life much easier that they can go spend on the receipts that they've brought in liquidity and giving instant cash to our sellers has always been really important to us and it's about speed. >>restauranteur you see it, too. >> of course >> if you need to buy something friday night you need a square card to spend at your local supplier and the square card gives that ability to small businesses and it's a really great tool that we're proud of. >> we use caviar because it's the best and it's a competitive environment. >> greatrestaurants on caviar. the best, right? >> last thing.
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room for everybody, 47.6 billion downloads and they're doing 42.8 and you're pretty competitive. >> so cash app has been on a great run and we announced on the earnings call that we now have 15 million monthly active customers and they've seen incredible growth, but if you look at what they've released in the past year, buying bitcoin in a really seamless way, a debit card, atm access and their cash app card is absolutely beautiful, black, laser-etched hand writing and it is so easy to use that it's just a great product. >> i am so glad you came and we want to do more and more with square because it's part of the new economy that i like, empowerment, that's what matters. that's jackie, the head of square capital, doing good, purpose led, okay? the purpose led companies are the ones that we want to bank on in 2019. "mad money" is back after the break.
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the lightning round. b [ indiscernible >> and then the lightning round is over. are you ready skee-daddy it's time for the lightning round and we'll start with greg in minnesota greg >> jimbo jam borree. how are you? >> i'm doing well, partner how are you? >> not bad amt, buy, sell >> ameriprise? boom it actuals back periodically and you have to be a buyer let's go to chase in california. chase! ♪ >> hey, jim. big boo-yah from irvine, california >> oh, man i love irvine. nice and warm. what's up? >> a great place i want to give a shout out to my dad who introduced me to your show. >> that's what i like. >> yeah. if i'm bullish on the solar industry is vivid solar, visr the right stock to be in >> no. first solar.
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i'm not bullish on the solar industry and you did qualify it and my gift would be first solar and not vivid. >> let's go to ledaren in washington ledaren? >> hey, how are you doing, jim >> i am well how about you? >> i'm doing great i'm calling about ship finance international. >> i don't trust the shipping stocks and we're not going to do that and not that anyone can invest and they've been losers let's go to charles in california charles! >> boo-yah, my brother >> yeah! >> iipr. innovative industrial properties. >> honest to god, i do not know why that does better than the reits that i like. we'll have to do more work it doesn't make sense to me so i can't just say buy it. it just doesn't make sense to me let's go to burns mr. burns in pennsylvania burns. >> hi, jim, i've been listening since november of 2015 >> all right that's good enough to do the job. how come we don't work together?
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first-time caller. i'm interested in international paper. it's a cycle to buy them, but it does have a 4% yield i'll never steal 4% yield in a good balance sheet and they make paper and i am very environmentally more prone to paper than i am to plastic jacob? >> i'm looking to take a risk on the software service company and black line that specializes in continuing accounting software >> it is a cloud-based accounting and it's a small vertical your hope there web that they would be bought by a larger company because it doesn't have the scale you need, but i'll endorse it because it is in the right spot let's go to jules? >> jim, bah-bah-bah-boo-yah, my man. how are you? >> good, how are you >> i'm looking at ca >> which one
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i'm not getting it, look, i want to own autozone if i'm going to own that area. autozone is as close as i want to get to that and that, ladies and gentlemen, is the conclusion of the lightning round the lightning round is sponsored by td ameritrade 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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sometimes it seems like the bulls lack all conviction and the bears are full of passionate intensity. the moment it goes down they were right the buyers were wrong, and it's seen differently look at sales force. the last time the company reported about the next quarter and not the next year, by the way, which is terrific and the stock got crushed although if you sold it at the lows this morning, the stock not only rebounded closing off just $1.53. at one point the stock was down four points and still the bears know they're right, don't they otherwise the stock isn't down at all, and here's the thing and sales force has worked higher for years and all along the way there's been a legion of doubters and they feel vindicated and they act like they have finally been proven right. every time it's been a mistake and that doesn't deter them. i used to be in 2007 and 2008
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and the stock was on the great procession and it lost more than half its value and i told people to stay away from this company with revenue growth and no earnings i just had them. but then i met mark benioff and he never once called me a knuckle head at first i didn't understand why businesses would pay this guy and his company something like seven figures and now they do eight figures just to figure out what the customers want. don't they know? stay in touch with them? don't you know they take it outside of the servers that you have on the premises and rip out oracle which is your database and you end up more money and understanding your customers what arrogance many of us weren't deterred
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during the darkest days of the great recession, in 2008 and he predicted sales force which was $79 million in sales would hit a billion in sales the next year well, next thing i knew the stock was back to eight and he exceeded that revenue target big time during this period, sales force could generate this type of revenue the company would give me all of the earnings i wanted and he also said he would never stop investing until he hit 10 billion in sales and they were signing up customer after customer and i realized that benioff was the real dial. now and then the company would hit the speed bumps, they were all buying opportunities and that is why i've been pounding the table on the stock i got spooked with some people last night and i regretted it. and i beat them and beat them and beat them and sure enough the company has more earnings than they know what to do with
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them last week the stock hit an all-time high of 156 and last night benioff gave the short term, and he didn't miss the quarter and he said the next quarter will not be what the consensus is, and then he said look, the future will be as great as ever and the fact that he raised this full-year revenue guidance to 16 billion at the midpoint is more than 20% growth year over year and it didn't matter that benioff had it organically and it's not what people focused on. they saw the stock go down and they read the guidance for the next quarter and they saw the headlines and hey, i've got to sell and that's putting it mildly and you will see people calling me a fraud and a meathead and an idiot and it will go down 15, 20, 25% thank you. why are they so self-assured because the stock pulled back from 166 to 156. never mind that 166 was the stock's all-time high and it's been a huge multiple winner and
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to me this is all kind of nutty and you know what happened to mae? a buying opportunity and guess what i'm betting this time no different. stick with cramer. cramer's exclusive ceo interview, full episodes, analysis and even your own sound board. plus special access to madmoney 101 with rules and techniques to break down the market for all investors. in the red flag that makes me drop a stock immediately >> it's everything you need right when you need it the new madmoney.cnbc.com. -i call it my comfortable future plan.
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-it's our confident forever plan. -welcome to our complete freedom plan. -it's all possible with a cfp professional. ♪ -find your certified financial planner™ professional at letsmakeaplan.org. ♪ i should have talked more about the start of the day which is kohl's kss, a nice tie-up with amazon. i like to say there's always a market somewhere this is "mad money. i'm jim cramer and i'll see you tomorrow
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>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ inois. my company is echo valley meats, and we specialize in the best meat products in the world. thank you. have a great day. i actually pitched my business on "shark tank" a year and a half ago and walked away without a deal. i can't call your business plan bad because there isn't one. you make a great product, but you're coming in unprepared. that doesn't cut it. i'm out. alwan: i kept my chin high, but inside, it was gut-wrenching.
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