>> we didn't mention, but tim looks -- >> senatorial. he has two pockets on the front which you can't see. >> anyway, you thought i forgot. semantic, just slowl upside >> see you back tomorrow at 5:00ment for more "fast. "mad money" starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there is 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 the make friends. i'm trying to make you some money. my job is not just to entertain, but to educate and teach you so call me at 1-800-743-cnbc or tweet me at @jimcramer she loves me she loves me not with earnings season kicking off tomorrow, everybody is playing the game, trying to anticipate the quarters

will the numbers be good or not so good? it's all people in the:00 to world want to talk about people are paralyzed and they're polarized and they're scared they're scared about what will happen this earnings season. that's why the averages meandered too. the down dipping 14 points, the s&p .5 the nasdaq .21%. the fear is palpable earnings could be down. stocks are the only game in town, even though we had a real slowdown since the fed's last rate hike, the bond market offers only paltry returns [ booing ] let me make one thing real clear. over the long haul you'll do just fine on a diversified profile. healthy balance sheets especially compared to the 2.5 yield you get from parking your money in the treasury. so i don't want to get too fixated on earnings season but i want to help you i want to help you get through this tense environment i want you to have some context

about why everybody is so worried. so let me give you an earnings cheat sheet. kind of a mini game plan for navigating the bit falls and opportunities from the first companies that report out of the chute, the banks, as they do so often set the tone for the entire reporting season. the first thing you need to consider when analyzing earnings reports is nothing 20 do with the reports, nothing to do with fundamentals it's all about where the stocks are trading going into the quarter. remember, expectations are everything in this business, and that's good news for the bank stocks, because for the most part, they've been trading sideways for a while now, and expectations seemed low for most of them, which is very positive story line let's begin at the beginning with jp morgan and wells fargo both of which report tomorrow. i think colin powell "jurassic park" is problematic here because it's already up 15 bucks from its december lows but as i said yesterday to a nice gentleman in the elevator ride down from jp morgan's retail conference, any time you can buy a premier bank in

america with a 3% yield, you know what? i would gladly pull the trigger. you know what would be even better, though buying at a 3.5% yield which of course would make it go down it's not going to raise the dividend that much, which brings me to the first rule of bank earnings season. these stocks are completely and utterly ungamable. [ crying ] there are so many moving parts to banks so, many line items, so much arcane jargon that it's almost impossible to figure a way a bank stock will trade from the headlines. as it rallied in premarket trading, boom, boom, boom, take it all the way up, and then they're taking a beating by the time marianne lake, the excellent cfo finishes her portion of the conference call lake just can't seem to help herself. she insist on telling the bad with the good. her honesty can make you feel like this isn't a good time to buy any bank stocks. it's not that lake means to be

downbeat she just seems to enjoy telling people what's not so hot while ceo jamie dimon tells you what's working. they have a good cop/bad cop thing going on that call that's where jp morgan comes in. with a 3% yield, i think we'll be more interested in the positives from dimon than the negatives from lake. remember, we just got dimon's annual letter. and while he is as bullish as ever, i'm betting we're going hear a lot of nonsense from the peanut gallery about how the earnings have peaked after the call's over. that's what the story line is going to be. that's the new conventional wisdom it will be difficult for jp morgan to change the story but what about wells fargo well, that's a horse of a different color. honestly, on earnings basis may be the cheapest i've ever seen in this stock. it's nine times earning, 3.8% yield. then again, it doesn't have a ceo, probably a pretty big deal. as the now chief executive who fell on a sword to protect the company from bad pr, i've got

say it's not like he quit when the going was tough. he has left his successor with a clean bank that's returned to growth in very short period of time now that long-term interest rates are back down and wells is rebuilding trust with its customers, i want to own this stock before the board appoints a new ceo. why? because you're going to hear that warren buffett, the bank's biggest shareholder likes the new choice and that's going to bring in buyers. >> buy, buy, buy, buy, buy, buy, buy, buy, buy! >> that's how it works people. so supporting the biggest yield of the majors, i think wells fargo is a much better buy than jp morgan at 106, given that wells is only up 5 points from its december lows. and i've got to tell you something, that does matter. i'd rather have jp morgan than i would wells, but wells has come down, and jp morgan hasn't next week we get the rest of the major banks, and once again i'm not betting on any upside surprises because their stocks are so low, they don't need upside surprises monday goldman sachs and citi.

we own both in my charitable trust you. follow along on our monthly club call tomorrow i'm going to tell club members while both stocks are cheap, that may not be enough to move the needle unless their quarters are really great. citi has developed a nasty habit of missing numbers while it's been buying back stock by the bushel the buyback has meant nothing, nothing to shareholders, as they want to see growth citigroup didn't visit i kept thinking when you buy 7, 8% of the bank's stock back year after year, people would kind of be enamored of it. not working. it won't do much for the stock because until they're involved in this huge malaysian fraud scandal gets paid up and the fines are cleared, i can't see it going back up to its old high so where it was last year, so the risk reward is positive. i believe the malaysian scandal will be small potatoes, costs at most a couple of quarters ofenings, and i don't think it's

going to be near that. people will wonder why the heck they sold the best investment bank when it was trading at 8 times earnings and david solomon is rammedly getting a reputation for creating tremendous incentives to win for shareholders i see many good headquarters ahead for goldman sachs, but they'll be obscured by this malaysian thing until it's in the rear view mirror next is bank of america. this one is tough. just point off the 52-week high. that worries me as i'm not sure the stock can rally from these levels unless a massive upside surprise, and this simply isn't the way these guys do business while bank of america is a great company at nine times next year's earnings, its stock simply more expensive than most of its peers with a smaller yield. so i don't know if it can draw many buyers, which leaves the bank that in my view has the most potential to put up shockingly good numbers. that's the bank of morgan stanley. ceo james gorman has gotten this place humming after less than stellar previous quarter i've rarely seen a chief

executive two seems more motived to crush the numbers this quarter than this man. here's how you have to look at it basketball fans, you'll understand this. morgan stanley is kind of the university of men's basketball team of banks. last year they were beaten by the worst, by the lowest seed. never happened before. this year they won the crown i'm betting morgan stanley will do the exact same thing this earnings season. the bottom line, the banks are the group that sets the tone for earnings season, and that's a lucky thing because this time is stocks are coming in ice-cold, which means that they should be able to rally on even the slightest positive provocation let's go to shane in arizona shane? >> caller: boo-yah, jim, thanks for having me on today. >> my pleasure, shane, my pleasure. >> caller: real quick, i want to give a shout to my dad, a real fan of the show. he is in the philadelphia area a shout out to him. >> yes good to have him. >> caller: my question is about carizo oil and gas they've been taking a pretty bad

beating the past few quarters, but it looks like their earnings are on point they've been beating the expectations last year they are high on debt, but their production levels seem good. >> i like carrizo. i think they've done many, many good things. they've financed correctly they've done the equity offerings, but it's an oil stock, and that of course, shane, means people don't want to own it. let's go to steve in new york. steve? >> caller: hey, a big long island boo-yah, jim. >> hey, i'll be there early last weekend boo-yah. what's going on? >> caller: thanks for everything you do >> you're welcome. >> caller: now that wol pay is being acquired by fis, i want to know if i should wait until the trans action close. >> go on let's find the next worldpay ka-ching, ka-ching let's go to bill >> caller: hi. >> hey, bill >> caller: how you, jim?

thank you for taking my call. >> of course >>. >> caller: i'm talk about melco resort with their properties in macau and successful resorts in the philippines, and now a new one being built in cypress, my question is i see an upside for meclo in the long run. my specific question to you is should i keep melco in my portfolio for the long haul? >> i don't mind you owning melco, but i have a real hankering for las vegas sands. it yields 4.6% it has a lot of momentum and this is the one that could have the most upside now that wynn has already moved so i like lbs. the big banks kick off earnings seasons tomorrow they do have the potentially to go higher and therefore set the entire bar in a positive light for earnings season. on "mad money" tonight, was it is a bloodbath at bed, bath & beyond after earnings and just

challenging amazon's retail rivals to outdo his $15 minimum wage i asked midwest's ceo when he thought about it when hi visited him in herald square and how a pair of sneakers could cost you hundreds or even thousands of dollars stay with us >> don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an email to madmoney@cnbc.com. madmoney@cnbc.com. or give us at 8074cn a1-0-3-bc miss something head to madmoney.cnbc.com. miss something

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so what do you when they refuse to replace a clueless ceo? in other words, what do you do if you own stock in bed bath & beyond there is only one answer, revolution you need to storm the bastille, take over the staff general, set up a new regime. i'm not saying it's time to get in touch with monieur guillotine the quarter beth bath and beyond reported last night, it wants to take some heads. metaphorically, speaking, of course for the last five years this has been a catastrophe, and the stock reflects it. down from 80 bucks at its peak to 17 and change right now 17 and change! including a hideous nearly 9% decline just today when i look at bed bath & jobbed on, i see two real positives the company has a positive balance sheet so, in theory it

could be salvaged with the right leadership and the uprising has already started with a group of investors pushing to oust the ceo and everyone on the board of directors, everyone. last week legion investigators teamed up to take a 5% stock in the company. they've been very aggressive about pushing for change i bet last night's absurd conference call hands them all the ammunition that they need to pull off their corporate coup d'etat why am i getting worked up because he has had years to get his house in order he has preside over a slow motion train wreck it's bad enough that he never saw it coming. what's unforgivable is that he still seems lost let me read you the bill of mr.s from a few week ago and then we'll get into the atrocity that was last night's conference call atrocity first, while bed bath's stock is up dramatically from its

december lows thanks to a better than feared quarter with reporting in january, it wasn't totally awful, along with a more benign environment for retail, its long-term track record is horrendous the activist pointed out in their letter a few weeks ago that since steve temeris took over as ceo in 2003, bed bath & jobbed on had lost 58% of its value over a period when the s&p was up over 342% and its closest retail peers were up 592% all of that pain is from the past five years what went wrong. bed bath has failed to live up to a new retail landscape where ecommerce is king. the company has thrown out a bunch of half hearted initiatives over the years they keep saying that private label brands are a priority. it's a good way to boost margins, but more than three years later we can detect no evidence of a unifying margin-enhancing private label strategy they talk about embracing furniture and home decor, even

though that hasn't really worked in the past. in 2016, tomorrow started telling us he'd made the store morse experiencial temeris has done 10% of 100 things as opposed to 100% of ten things and now bed bath is trying to compete with amazon on price yep, despite having a network of 1500 physical stores, they'll match amazon's price on identical items. and to get people to join the loyalty program for $29 a year, the company offered not only free shipping but 20% off every single order this strategy has been devastating for bed bath's -- i'm trying to make a little bed bad, bad gross margins what they make after the cost of goods sold which have fallen from 40% in 2012 to under 35% in the latest quarter. all the way down bed bath has created maybe the most idiotic buyback i have ever seen five years ago, the company had

204 million shares outstanding and an $80 stock now it has 132 million shares outstanding and a $17 stock. 2014 alone, they borrowed money back to buy back $2.25 billion of stock at $68 a share. crazy when you realize this is now a $2.4 billion company if he had just sat on the cash, he could have taken the company private right now. he could have acquired wayfair which came public in 2014. it's now worth $13 billion it's no wonder these activists want to replace the whole board of directors the average board member has been there for 19 years. two co-chairman have been there for 48 years over the past 14 years where bed bath stock has lost roughly half of its value, the chairman and two co-chairman, they received over $300 million in compensation after these activist firms got involved, the stock caught fire as investors finally had reason to think the situation would change but if you bought bed bath in

the past few weeks, you burned when the company reported last night. at first the headline numbers seemed okay. sure, bed bath's same-store sales shank by 1.4%, but an impressive earnings forecast for the full year. so the stock jumped to $20 in after hours. as son as people looked deeper, though, they realized management was guiding for horrible results in the next quarter, including same-store sales down 5 to 6%, basically asking all of us to trust them to get things back on track by the end of the year but after bed bath's conference call, there is no reason anyone would give these guys the benefit of the doubt how does test mhe intend to fix this he has new store concepts. they're using results that are 2.2% better than regular stores. but but that's too great given the scale of deterioration here. for all its bluster about a turnaround, they're looking to moderate the declines in earnings per share with the

expectation of returning to earnings per share growth by 2020, end quote. well, that's a low bar, and i can't explain why they're assuming a return to growth next year i didn't hear anything in fact, the quarter was so bad that the analysts in the q&a session seemed stunned by a lack of real plan to change the company's trajectory there was kind of an open rebelian when steven forbes from guggenheim asked, quote so, you're saying you're not going to provide no additional color other than that? it was a crystallizing moment. these guys don't know how to fix the problems give the actors what they want the current management, i say their motto is this. if you don't know where you're going, any route looks fine. bottom line, it's time for a wholesale change with the management at bed, bath & bey d beyond i think it can be daved, but i got to tell you something, not with this management team. not at all much more "mad money" ahead. macy's just announced a new

approach to retail i got a firsthand look at the concept when i visited the square flagship this morning they're not doing with bed bath is doing i'm going to bring it home for you and you will love what you're seeing. and is there a nasdaq for sneakerheads i'm finding out how one ecommerce site is taking aim at the luxury sneaker and how jeff bezos taught moe me more about business than my first days at goldman sachs.

♪ the stock of macy's finally ready to play catch-up oh, it's been a tough 2019 so far for shareholders but with so many of the retail names making comebacks, i've got to wonder if macy's stock is too cheap to ignore. it's got a 6.2% yield and a much improved balance sheet earlier today we had a chance to talk in with jeff agagennette

jeff, i was going say this, but i don't like burying the lead. we're at herald store, and i just came through your store this seems like the mark that you're trying to make on macy's. >> i think this is the evolution of what brick and mortar needs to be at brick and mortar needs to go from a place of transaction to a place of experience. and so story is one of our first steps in really doing that at scale. >> i saw it was filled with color. >> yeah. >> gorgeous, sensory beauty, which is something that reminds me you had to fix the balance sheet first, but now you're playing offense. story is offense. >> story is offense. we threw off a lot of cash and we had to get the balance sheet right. the first thing is we want to use the cast to invest in the business we want to make sure that we have a good dividend that is something we have committed to our shareholder we had to get the balance sheet right is step three. so getting the debt out, we spent the last four years, got

$2.5 billion off of the debt and a bill and a half just or 1.1 billion just in 2018 and now we'll think about share repurchase in the future and we'll talk about that. but for now making sure we get back into the leverage ratio we want to be at. >> that's important, because the 6% yield, we get so many calls about your stock i always say look, the balance sheet is good. the dividend is good that is something you prided yourself on. >> we do >> but i'm so glad at this point you're able the do all the things you told me you had in your head, beautiful things that really are exciting for anybody that comes in. >> yes you know, jim, when we look at kind of the brand right now, there are the four stages of growth we needed to get store growth. well started doing that in the fourth quarter of 2017, now five quarters in a row. the second thing is how do you get market share growth. so we had a 4.5 gap at the end of 2017. we narrowed that to two points in general market in 2018. we're note going to be satisfied until we're taking over all

market share and doing that business by business the third point of growth is making sure the customer franchise is healthy and we get new customers into the grand with the same speed we've been taking care of the existing ones and then the last stage of growth, which we need to show the street is how we get profitability growth. >> right. >> so right now we're very focused on that. we've got our new cfo paula price and hal lawton focused on that we call it funding the future we have all these efficiencies and productivity buckets because we're going to keep growing the top line, but over time we're going to show how we're going to be able to grow the bottom line as well. >> so when i get out of college, what do i do i get the macy's credit card, the first one. it's one of the great assets that you have. but i knew to come the macy's because it was exciting and new and different and i finally had a couple of bucks in my pocket how do you get the next generation to come in? >> this sour opportunity to be where the customer is fishing in terms of marketing where are we going to be in the social space what are we doing with all of

our experiences? the thanksgiving day parade, the special events, products that we do and what do we do in the communities. one of the things i think is macy's competitive mode we stand for fashion, we stand for celebration, and we stand for community. so our opportunity with all of our great teams to be in the communities through our partners time initiative, what we do in terms of donations, customers do care about our brand a lot and if we give them a reason to come into our store and create experiences like what you see around you, they're going to keep coming back that's our mission >> you used the word "celebration." what happens if i'm here the moment the door opens? >> right now what we're looking at right here is our beauty hall you're going to see fragrance testing. you're going see special events. in story up there, it's like the store just opened. you saw crafts going on. you saw kids being engaged they were on the light bright wall you see parents basically are making pom-poms out of key chains you go into the men's side of the floor, you're going see the market at macy's in a flagship, we've got that

wired. in our magnate scores, we're really working on that and our neighborhood stores, the other part of we're working how we can be the most efficient experience for stores customers still want to be in. >> your scale. how many can you put story in? you've got the growth 50, going to 150. >> yes. >> how do you get this across your whole panel >> yeah, so this is one where we opened this. we normally would have opened this and done it in one store and tested it. we brought story about a year ago, and we got this thing up and running and scaled in 36 stores in eight months that's the speed we're now trying to work at in the company. we have new teams of people that are focused on multihats and how they're able to contribute to that so this thing could scale to a lot more doors and what am i doing in each of the doors is really where i'm focused. so i've got many new mechanisms that i can bring experiences and bring all five senses into our building >> okay. i am enamored of the blue mercury which is about a quarter mile from me that's where we go we like to go because my wife

likes to try things on you fabulous things with blue mercury? backstage you have great growth. how do you decide, okay, that's the area i'm going to fund >> so what we did in 2018 was we really focused on five insurance. and we have five initiatives that we're taking into 2019. three of those continue. two are new. our beauty destination, which includes blue mercury is a must-win in beauty so when it comes in different pieces and part, fragrances we're already the nation's headquarters skin care, we figured in crack the code in 2018 we're growing that color cosmetics, we're really trying to figure that out. we're using blue mercury as a laboratory for that. we've got blue mercury now in macy's so blue mercury fits into our overall opportunity to win in beauty >> i'm hearing you the most enthused which is why we're also at home for you. i have to believe that some of this is because the both high-end and low-end consumer are spending at your places. >> that's correct. that's really where we wanted to go in the backstage.

we're kind of in the middle land in price points that can be a deadly land or the opportunity to flex up or flex down depending on your consumer so backstage is going out the door at about a third of the retail as the balance of macy's. we've now got that built into almost 200 of our brick and mortar stores and successfully >> all right let's talk about the competition. >> yeah. >> the amazon is foremidable bezos is focused he is challenging rivals to match him on $15 minimum wage and benefits what do you say to jeff bezos? >> what i say is your chirlt is everything and how your team of colleagues feel about you as a brand and as a trusted employer and how you take care of them is really important. so this is something we are hyper focused on. >> wage? >> in wage we look at every single community we're in. what we decided to do with the tax savings in 2018, we decided to put that back into the community of our colleagues. so we created this thing called path to growth so every single colleague, all

130,000 get a quarterly bonus as a result of the production of that store, that call center so i was in cumberland, which is in our atlanta store last week i went on to the dock. so this is colleagues that you generally don't see. they receive goods i went up to one of them and say how do you think about path to growth and this colleague said you know what if i get these goods off this conveyor belt and i get it on to the sales floor, i know it's going to be a faster sell through, the store will do better, that's going to improve the overall production of this building and i'm going to be able to get my incentive program. 96% of our colleagues in 2018, we paid an incentive too and we just took our poll survey this were we measure how the colleagues feel about our organization 70% of our 107,000 employees took it, and we were four points higher, our all-time high in terms of how they're feeling about the brand, how they're being treated. our retention rates are up our turnover rates are down. we're always looking at how we take care of our colleague. >> turnover, we talk about the

great retailer, jim senegal, frank blake, if you stop turnover, then you have people who know their customer. >> right. >> and you don't have to waste all that money and time training so this is really great news. >> it's great news we still have problems well still have areas where our turnover is up we have it in certain stores where you don't have the right leader we're always working on it and you're never done in our business. >> what do you say about people who continue to say brick and morter in the mall is dead >> you know, i would tell you, jim, this is one of the big things for news 2018 if i look at things that i'm most proud of what happened in the last year was the change in our brick and mortar trend you know, we figured out the right investment strategy to get a bank of our stores in good positive comps with good profitability. and this works when brick and morter is working in addition to robust digital growth and a mobile experience. that's our competitive mode. we're healthy brick and mortar, strong digital, great mobile

experience we've got toe get brick and mortar healthier, and i think we have the right formula for it. >> i know you were not that happy with the last quarter. >> i wasn't. >> how is it going to change what did you do? because i know you're not complacent. >> yeah. >> i know you didn't say we're going to keep doing the same thing, it will get better. that's not you >> the point of 2018 for us, it was a good year. we were going into the fourth quarter with a great year. and we did stumble in the fourth quarter. we had our fifth quarter of positive comps, but it is not what we planned for. we have taken that apart we have analyzed it every which way there are some events we don't expect to repeat there was a fire butattend of the day, was our content what the customer wanted was our marketing as sticky as it needed to be? did we need to have new public customers coming into our brand. we were highly self-critical about that we have the game plan. we're not going repeat that. i expect that the investors need to see that we can win in the holiday of 2019, that we're a show me with respect to that, and we're very committed to doing that. >> all right i've leaving it right there.

that's jeff gennette, chairman and ceo of macy's. thank you, jim. >> great to see you. -i call it my comfortable future plan. -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.

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new trends and for some of the coolest things i've ever heard of, like stock x, which is a kind of stock market for things mainly limited edition sneaker, watch, handbags and street ware. it got its start as a centralized marketplace for sneakerheads to buy and sell very expensive shoes it's been such a hit it keeps expanding into new territories remember when bay started? this is unbelievable and then it becomes a billion dollar this is what is going to happen to these guys. josh luber, the ceo and founder of stock x welcome to "mad money. good to see you. >> glad to be here. >> i'm a little more excited than usual, i was having dinner with marc benioff, and his nephew is trading. and i'm having dinner. is that stocks it's after work. he said no, sneakers i said that's the silliest thing i've ever heard. he said why don't you do some homework why don't you look at stock x.

>> you know what is funny. i happened to be sitting next to marc at nba finals game. and i sat down with him, and at the first tv time-out, his wife leans over to me and look at her phone, are you the stock x guy and it was his nephew that had reached out. by the way, the flip side, i got a text from a kid you're sitting next to marc benioff for a 15-year-old kid or however old his nephew is, this is life. >> i think that this is the most amazing thing, and my first reaction was why didn't i do it? and darn it off, i would like to be you and dan gilbert's partner. that's how cool i think this is. >> yeah, and the thing, look, sneakers are massive we can talk about the shoes we have here and why this is such a big business, but it is about the model. we've created a stock market for consumer goods, right? >> yes >> we've basically taken how ebay used to work. this is how marketplaces used to function why don't they function like stock markets?

and we say that and people immediately think about investments. it's not about investments per se, although it can be. >> it can be. >> it's about the method of connecting buyers and sellers. you think about how a stock market connects buyers and sellers with bids and asks around a single asset, that's been the single most efficient form of price discovery forever. all we're doing is pointing it from stocks and bonds and oil and gas to new commodities, to sneakers and treat wear and watches and handbag. >> what defines value. have i sneakers. they're worth more than i paid for them >> or maybe less if you've been wearing them >> right >> this is just supply and demand this see con 101 >> he puts out a limited edition of 200 pairs of sneakers the limited edition jordan, okay if i go buy ten of those and i wait six months, am i going to make money >> maybe maybe. well you got to ask the demand side of the equation, right? what's phenomenal about this, maybe even more so than the actual market in terms of supply and demand, in the actual market

ultimately the company's performance has a direct impact, right. this is just supply and demand and so i chose these shoes for a reason it is the purest part, right this shoe right here, this was kanye's first shoe with adidas it's called the adidas yeezy 350. >> you can move where i can't change it. take a hammer to it like michelangelo. >> this is the first shoe they released with adidas it's kanye's first show. it's called the yeezy 350 turtledove we don't know supply the brands don't tell us supply, but we know it was limited because of kanye, demand was through the roof. >> am i holding a $200 pair of sneakers >> at retail. >> what are they trading on stockx >> about 1200. >> this? so this is worth $600. you know what i mean it's a five by two situation. >> we don't do a lot of selling of individual shoes. >> got you >> and by the way, this is the least expensive of all the shoes we have up here. this is a $1200 pair.

>> but maybe these are tulips. >> they're not tulips. >> tell me why they're not tulip. >> transparency. tulip, baseball cards. baseball cards everyone thought they were the only one whoed that 1289 upper deck ken griffeys. >> they print today many. >> and there was no transparency to know what was out there first of all that, was before the internet when you have transparency into a market, then you can have true supply and demand and not worry about a bubble and burst >> but what's the zone >> that's fair that's how -- you can crash the market nike or adidas crash the mark if they made every shoe available in infinite supply. >> but they know all about you and they won't do that this is key for them they know where things is trading. >> a thousand percent. a thousand percent this is marketing. this is great. this shoe, this is a collaboration, this is an air jordan 1, but with virgel

abelow, a designer from off-white and now designs louis vuitton. this shoe now retails for about $1500. >> i'm afraid toe even touch them what if i scuff them >> we're going to work our way up in value. >> my friend kareem, and he is waving at me and telling me this interview is over. and i'm not ending it. i'm not ending it because i'm having too good of a time. tell me how you got the idea and where you see this thing going this is too much fun i got two more minutes just two more minutes. >> value this whole thing is about price. it's about true market value before this, i had a price guide for sneakers we were scraping ebay to create the kelly blue book for sneakers. >> cool. >> that's the start of all of this what is a sneaker actually worth? if you understand the value of one pair of sneaker, you can create sneaker portfolios. you can look at your whole sneaker collection like a stock portfolio. and then it's just one step to say an actual stock market for

sneakers that's how this thing started. >> how about the greatest of all time how about your opponent g.o.a.t. just got 100 million from footlocker powerful >> what that shows is the retail sector and the resale sector are converging it's going to be one market. >> who is the people young or old >> it's everybody. >> when i thought they were working with me. i thought they were doing this show, but they were trading sneakers >> yeah, it's about access maybe you don't want to pay $1500, but you want a pair different. there is 35,000 on stockx. >> i wish if i could do a special. this is brilliant. that's josh luber, ceo of stockx have i tremendous respect for what this man has done "mad money" is back. for your heart...

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"lightning round" is sponsored by td ameritrade >> it is time! it's time for the "lightning round" cramer says -- buy, buy, buy. >> sell, sell, sell. >> buy, buy, buy. >> sell, sell, sell! [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round. jerry in illinois. jerry? >> caller: hi, jim

first of ah, thank you. >> you're a good man thank you. >> caller: so the question is about fox. i've been in it since almost the beginning. it's a terrific company, but lately, i don't know it's flat as a pancake what's going on? >> i totally agree with you. i feel like they're in the penalty box. i would not own the stock here they are slowing look, companies like okta are accelerating companies like box are slowing they better do something that accelerates the growth rate or it's not going to go anywhere. tom in florida, tom? >> caller: hey, love your show thanks for taking my call. >> caller: oh, you're welcome. what do you got there? >> snh >> senior house? this is a bad business this yield i do not think can be maintained senior citizen housing cannot be maintained right now

let's go to melissa in pennsylvania melissa? >> caller: hi, jim how you doing? >> i am good how about you? >> caller: good. i'm an action alert club member. i want to thank you for everything you do for us. >> thank you see you on the call tomorrow at 11:30. >> absolutely. i have a position in forescout technology i'm looking to add to it do you recommend buying more >> you know my favorite in that space is palo alto i don't think you need to buy inner more forescout this one is coming with high expectations let's be careful it is up 60% and thank you for being a member of the club. let's go to palo in florida, palo, i hope >> caller: yes thank you for taking my call. >> how you >> caller: i'm doing excellent, sir. how you? >> i'm good. >> my question is plug power, pl-l-u-g they design hydrogen an fuel cell systems for forklifts. they also do stationary power

packs such as battery. today there was an announcement that they agreed with la parry poods to get together with them and la parry foods supports companies like walmart and amazon. >> it's a good partner look, here is the way i've been saying it. i know it's been asked many times on twitter, it's a speculative stock. does visit the momentum? yes. have i seen it flame out a couple of times? yes. speculators only, but they are doing some interesting things. how about sunil in minnesota >> thank you i have a question for you. spotify. your take on spotify >> caller: you know what look, i know that i am maybe people think i'm too bullish on it we use it everywhere. we do the encryption we know a lot of people are migrating from free subscription i think it's a matter of time. i don't mind the podcast people hated that podcast acquisition. i think it's bad that they

hated. i think it's a good acquisition. and i think that spotify is a good stock to buy. >> buy, buy, buy >> let's go to leon in new york, leon >> caller: boo-yah, jim. >> boo-yah go ahead >> caller: hello boo-yah, yes i would like to layer your opinion about sun run. >> i have to do a deep dive on all the solar stocks because they keep changes the darn state laws let me come back on sunrun we're going to throw in solar too. and that, ladies and gentlemen is the conclusion of the "lightning round"! "lightning round"! >> ♪♪ sponsored by td ameritrade

i'm a big believer in life-long education. but when you get to be my age, it's awfully hard to find new teachers that's why jeff bezos annual letter to amazon shareholders was such a revelation. i learned more about business from this one document than from almost anything else i've seen since my earliest days at goldman sachs 37 years ago forget the crazy stories about his personal life. who the cares. bezos has some serious sage wisdom, and he is as focused as ever first time amazon's best businesses are businesses that nobody asked for, like amazon web services the gigantic cloud infrastructure platform with a 47% growth rate. bezos writes, and quote, no one asked for aws, no one. he continues, it turns out the world was in fact ready and hungry for an offering like aws,

but didn't know it so why did amazon even get into the web services base? they had a hunch, he says. follow your hunch, he tells you. go the curious road. take the financial risk, and then it rate until you get it right. bezos talks a lot about, and i quote, the power of wandering. amazon encourages people to like to explore and invent. he calls it a culture of builders none of this is random when you know where you're going, bezos says, you can be efficient. but when you're not sure of your destination, he explains that wandering is an essential counterbalance to efficiency you need to employee both. the outside discoveries, the nonlinear ones are highly likely to require wandering i got to tell you something, in my all years of business, all my years of working, i have never been encouraged to wander. and i got to tell you something, i sure wish i had. i could have done a lot more with my life

next, bezos says you must feel not only that, you must, you need to fail to scale. your businesses get bigger, your failures should get bigger too why? if the size of your failures isn't growing, you're not going to be inventing at a size that can actually move the needle plus, failure can create some incredible ideas amazon started developing the firephone and the echo but at the same time we know what happened to firephone he says failure. but they took what they learned and applied to it the echo and to alexa of course, some of this stuff sounds a little out there. and if you didn't know any better you might think bezos has lost his mind. but you know what? there is a thin line between madness and genius listen to this no customer was asking for echo, he writes. this was definitely wandering. market research doesn't help if you had gone to a customer in 2013 and said would you like a black always on silder in your kitchen about the size of a pringles can that you can talk to and ask questions that also turns on your lights and plays

music, i guarantee you they'd have looked at you strangely and said no thank you. yet since it's launched, amazon has told 100 million 100 million alexa powered devices. what else? bezos notes amazon raised its wage to $15 an hour along with benefits it's a good thing to ensure that your workers are happy in fact, he is super competitive about paying his people more than the other guy put it all together, and you can understand why amazon remains such a fantastic story and its stock remains viable even at this ...& that way you can focus on expanding into eastern europe... ...& that makes the branch managers happy & yes, that's the branch managers happy. stick with cramer. & when this happens you'll know how to quickly react...

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you tomorrow welcome to the sha, where entrepreneurs seeking ana, 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." ♪ first into the tank is a radio deejay from san diego, california, who's pitching the sharks his syndicated radio show. hi, sharks. my name is r dub. i'm the creator and host of "sunday night slow jams." i'm seeking $75,000 in exchange for 10% equity.