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tv   Mad Money  CNBC  January 3, 2020 6:00pm-7:01pm EST

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on how to play snap calls into the first quarter. >> so i think this is pretty constructive the stock has moved significantly higher over the last couple weeks. broke out above the $15.50 resistance level this is continue to climb up to t8. >>hat does it fo "mad money" 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 other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to educate s call me at 1-800-743-cnbc. or tweet me @jimcramer. after terrific performance in the final weeks of 2019, what can i say? the averages, they got hammered today. dow tumbling it 34
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s&p shedding 0.71% as wall street started to worry about iran now, when i went away for the holidays i really wasn't expecting 2020 to start off so bad as the u.s. government took out iran's most important generals and the stock market hates surprises almost as it hates geopolitical instability which brings me to the game plan for next week. seems almost certain the iranian regime will retaliate although we have no idea how. and that's the big open question for monday maybe they'll start more trouble in iraq. well, we know iran is good at storming embassies maybe they'll shut down the straits of hormuz or paralyze the oil market or attack our allies in the region like they did saudi arabia maybe they will launch a cyberattack which we are going to talk about later in the show with crowdstrike the truth is we don't know that said we have so much oil in this country that there's not much the iranians can do to wreck the global oil market.
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and we saw this when they blew up that saudi oil refinery in september. it's also why exxon and chevron stock both ended in the red. pretty stunning, isn't it? more on that later too while the averages could get hurt monday please don't panic no one ever made a dime panicking. we have important macro data coming that will relate to stocks it all starts with purchasing managers index of pmi numbers monday that gives us the first snapshot of how the economy did last month decent growth, nothing too exciting and that is the optimal situation for higher stock prices when things get too exciting and growth is more than decent the fed may feel compelled by raising interest rates i don't see that happening why do i feel so sanguine? we had a new wrinkle rate cuts from the fed are working and that should give us a nice boost i know a lot hate it when the
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federal reserve gives us easy money but these stimulate the economy and responsible for a weaker dollar. always -- i always have said it will work because they always do and my 40 years of investing experience you know rate cuts have mattered every time except during the great recession when they were a little too late. yet, every time the fed cuts there are a bunch of naysayers who insist it will do nothing. you know what, every time they're wrong. they know nothing. tuesday we get durable goods not to focus on this but this number has been fairly strong for years. biggest durable goods, airplanes and the biggest one in term of sales, oh, boeing 73max. now, we don't know if that will ever fly again i need to consider that verdict within the realm people. i think that might be one of the biggest problems in the economy. my take, boeing's new ceo david calhoun needs to find a retired general, how about the major general from the air force, there's a general from the air force academy that is retiring
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how about -- got great flying experience a crisis manager to help get the story out correctly and need to bring in a major well respected law firm to help earn back the company's lost credibility and, boy, does the nation need that in other words, boeing has to start thinking about ways to make it so that the max isn't the max anymore. even if it means -- i know something again that people aren't considering, gutting and retrofitting every single one. whatever approach they need to stop insisting this is merely a software problem i don't think calhoun can do it alonement he doesn't have to thought to be petulant but why don't they listen to me once the previous ceo didn't. wednesday we get the first big earnings report for the year and many consider them suspect crippled by the idea it can't win in the front of the store for walgreens thanks to competition from amazon and can't win in the back because of the way we buy drugs go buy the higher quality cvs
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which has its own manager and own maintenance organization aetna has it all lennar also reports. doesn't get enough respect seemingly endless margin expansion and millennials are starting to buy homes in large numbers but the commentary is boorish. drives me crazy. not just them, the most hated home builder, kb homes keeps rattling off that much an awesome endorsement after multiple years i shake my head. what is the deal results from two of the most controversial stocks in the entire market, constellation brands and they love it and modell low but lately they have moved on to hard seltzers. i hate them and constellation
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seems late to the game and $4 billion investment in canopy is looking different now that the market has turned against ganga. legalized weed has failed to measure up and the new focus on the dangers of vaping, whatever that is, well, constellation turned canopy into a powerhouse of sorts and a nice house in an ugly neighborhood. >> the house of pain. >> that's the address. let's see what they say. i think it's too good to be written off. at some point it will be worth dominating but that might not be very soon. then again in one of the democrats other than joe gateway drug biden ends up winning in november legalization could be on the table and you know what, that's going to turn this stock around real fast how about bed, bath & beyond, i think the recent rally here is all about a short squeeze. most people don't believe that the ceo can turn it around
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they say it's too late i'm inclined to be skeptical too although there are so many easy changes they could make and the balance sheet is so robust the stock makes sense for speculation. giving up on this incredibly undermanaged chain right now just seems premature maybe this isn't the breakout quarter. too soon just got there if it gets hit, bye, bye, bye. finally friday we get the labor department's nonfarm payroll important and most important number could change the trajectory unemployment number will start factoring in a slew of rate hikes that never come. a too weak number creates a cascade of hope for more rate cuts that may never come good or bad i think the stock market will exaggerate either forecast if stocks run too much into the employment report and get a strong number, expect the average to get hit as the armageddonists, i can't get them out of my head start arguing that the fed needs to tighten tighten as soon as possible. if that happens, i'm betting on it will be a buying opportunity.
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the iran situation has given us something new to worry about but the economy remains strong so stay opportunistic as we head into the first full week of a fabulous new decade. let's go to ann in indiana ann. >> caller: jim, welcome back >> oh, thank you, ann. great to get away for a little bit. my family was ask bring ngry dad, finally, finally and they're right and i've been wrong. what's up? >> caller: so, the ceo as you know from idex departed so what is best agreed in the health care and humanization of pets neighborhood >> well, it still works. they have a new ceo, miss peck she's very good. very talented. i'm inclined to buy it over idex labs and want the new ceo to come to the show that would help us
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to maureen in arizona. maureen. >> caller: hi. how are you doing? >> i'm back from vacation, ready to roll. >> caller: i'm 67 years old. i have 145 shares of 3m stock. down 21.5% and has been almost three straight years, no profit. should i sell it and buy more amazon which is up 33% >> yeah, i think so. i know that steve tusa from jpmorgan upgraded it from a sell to a hold. i'm not looking for a sell to hold not looking just to make income. especially where there's some troubling -- there's some troubling anti- -- troubling pollution stuff going on there in terms of groundwater. amazon, you know what, it's too good not to own. i know the market always has something think to worry about we sure got it with iran but the
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economy remains strong, and that's what matters. job growth, low inflation. opportunityism is going to be a theme again. iran is showing a talent for cyberattacks geopolitical tensions rise how can the u.s. prepare itself? i'm talking to the ceo of crowdstrike to find out. we'll find out about that ukraine situation too. plus, 2019 might be in the books but you know what separated last year's winners from its losers could be the key to a 2020 and i'll dig into stocks that made the s&p 500 and the dow. you know what, you don't need to be an inside story spot the stocks that made the dow go up so much. but will these winners take a victory lap? are they sustainable or could new names take up the charge in the new year we got to find out so stay with cramer >> announcer: don't miss a second of "mad money."
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after a fabulous run in 2019, you got to ask can the stock market continue to roar in 2020 that's all i heard two big pictures, the election and situation with iran. whether you love trump or hate him, i know, a lot of people -- there's no denying he's good for the stock market i don't want to hear anything. no denying it. on top of that the trump white house really cares about the health of the stock market some of that is the influence of larry kudlow, the president's chief economic adviser, my former "kudlow & cramer" co-host. a lot are worried about iranian retaliation for the strike on
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one of their top generals. we don't know what they will do. will they close the straits of hormuz or storm our embassy in iraq but these are a new set of risks that didn't exist two days ago every year at this point i like to look at the biggest winners in the dow jones industrial average and s&p 500. get a sense of whether the rally is sustainable this year making three assumption, first, the election matters to the stock market and the democratic nominees matter too and expect the market to do better in a trump buying race or a trump/sanders race i'm bette the economy will keep humming along at a healthy pace that won't make the federal reserve compelled to raise interest rates they've learned their lesson, third, whatever happens with iran, it won't be a big enough deal to upend our economy. could there be other events that knock us off course? absolutely but then we do what we always do when the facts change, we change our strategy with that in mind, let's drill down the best performers in the dow for 2019
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apple. apple was at the top of the heap, roaring 86% last year. of course, apple got clobbered in the fourth quarter of 2018 erasing losses accounting for some of this move but the stock was able to do that because the company did much better than anyone expected. especially after that hideous preannouncement that occurred a year ago today apple's released a string of products like the iphone 11 and airpod pro i always tell you to own apple don't trade it still, i wasn't expecting this success. i figured the company's transitioning to more of a play on subscription services which meant the hardware component would become less important while the subscription business is on fire the harbor is doing great too. ray lot by the way is this, the camera which is just remarkable. everyone thinks i'm a professional photographer. even tim cook. can apple keep climbing? two firms bumped their price targets big time although the stock fell almost a percent but i think it can go higher
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my recommendation remains the same, this one made you money, don't trade it the only exception when the stock runs up going into the quarter, sometimes it makes sense to wait for a pullback but otherwise, please don't overthink this one the second best performer, microsoft. up 55% unlike apple mr. softee's gotten more expensive on a price to earnings ratio accounting for 26 times earnings but that said microsoft's not expensive if you believe azure will continue to grow while the pc remains strong and the gaming business keeps bubbling up it's become the senior growth stock of this year and i bet it stays this way. if you watch wildcard weekend you will see it all over the place, jpmorgan fueled by other stocks got so expensive the consistent banks like jpmorgan deserved a higher valuation. it was relative and that makes sense. they have a ton of consistent growth and this whole industry thrives on the trump
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administration's light-handed approach to regulation of course, depending how the election comes out it could look different. really in play in 2020 fourth, visa, up 42% this remains a fantastic investment, a great way to play the global transition from paper to plastic that's virtually with no -- no great expense and -- without that interest rate exposure, well, this becomes the pre-eminent fin tech stock so much of the world uses paper. can you believe it by the way paper is up about 6% in 2018. plus, if visa gets a real chance to operate in china the stock could have more upside united technologies up more than 40% rallied in part because it's merging with raytheon and getting closer to breaking up in three separate companies scarcity of high quality industry, united technologies one of them. raytheon is ramping, merging
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because of iran. like all the defense stocks still one more good reason to buy the stock but, remember, i think the defense move is a little bit ephemeral up so much. sixth, goldman sachs you might wonder how they could gain 36% with that malaysian risk, the answer, simple the stock never deserved to be as low as it was in the process of transforming itself becoming a retail focused outfit that teamed up with apple on a new credit card that could soon start delivering terrific numbers, did a lot of work on it, a great coup that goldman got this it can't stay this cheap given how much it can make if goldman gets out of this for less than 5 billion of which 2 billion u.s., 3 billion malaysia, that's a win seventh, nike. which has done the unfathomable picking up an incredible amount of chinese business at the height of the trade war. not even starbucks can say that. when your weakest market is the united states that tells you that's plenty upside likely it's become more of a
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tech company reminds me of the way starbucks embraced technology makes perfect sense to me that john donahoe of service now formerly is the new ceo just like kevin johnson formerly of juniper networks now runs starbucks. i think it can go higher even though up 36.7%. eighth, procter & gamble is back the kingpin has figured out how to become a more accountable company while taking back share in emerging markets. most important by bolstering its organic growth, project tcter r and it's got even more upside, i think. don't forget they've been flattering for years and just started to play catch-up and, remember, the dollar has been down for nine straight weeks fantastic for an international powerhouse like procter & gamble nine, disney last year the mouse announced a cheap new "on the money" streong service. over the past couple months seen
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the results, they're incredible. tloes days people are paying more for entertainment and disney is the last of the pure plays -- last of the senior growth entertainment pure plays. scarcity is a wonderful thing in the stock market hey, everybody i talked to on vacation has got the -- has bought the package including people in the family finally, number ten, american express. the stock up 30% last year still not compensating for the immense scale of the china opportunity thanks to the phase one trade deal that may open in markets to u.s. credit card companies that nobody has told them about iran. stock isn't that expensive especially if the global economy is back in a growth mode as i think it will, the bottom line, look, there aren't enough large capitalization stocks with buybacks that benefit from a stronger global economy. many are in the dow and these ten are most emblematic of the upside potential in 2020 as long as the current environment persists
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which is exactly what i'm expecting. stay with cramer do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.
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at the start of every year i like to review the biggest winners and averages and while the top ten players in the dow are pretty straightforward in the s&p 500 they're a lot harder to fathom about what happened. first there was amd that faulted 148% last year there are a lot of reasons for this run but all start with lisa su, the visionary ceo who saw what the pc, server and gaming markets needed can you believe it she executed a tour de force turnaround the question is, can amd repeat that performance listen, when the company reported last, we heard endlessly it had a weaker than expected quarter you didn't hear that from me and
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after dabbling in the low 30s it erupted to the high 40s. i think this was crazy when you consider all the issues that are plaguing intel and its main competitor. i think it has a bright future second best performer, lam research up close to 115% this semiconductor equipmentmaker benefiting from its new ceo who brought back a massive amount of stock when lam research was a lot lower even better, the semiconductor cycle is bottoming which is when lam's stock is bouncing back you know what, candidly we've been ringing the register here at least on some why? because the stock simply isn't as cheap as when we first started buying it which by the way was along with tim archer. still, i wouldn't sell everything here. when the semiconductor cycle turns like it did in the fourth quarter you can throw money at this group and make a fortune. that's why kla ten corps was the third best performing at 99%
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however, the trick with these stocks is to buy them before everyone realizes that the turn is at hand that's why we're ringing the register easy money has clearly been made in both stocks the fourth biggest winner nothing short of incredible talking about target with its 94% gain there's been a dramatic schism in retail between the have and have-nots. the haves are embodied by w.a.t.c.h., walmart, amazon, target, costco and home depot. all five of w.a.t.c.h. are remarkable in their own way. target is the best performer thanks to the leadership of their ceo brian cornell. as you look back, i am astounded how many of these companies were thought to be second rate operators. same deal with amd and lisa su with target lots saw them as roadkill for walmart and amazon thanks in part to their lack of
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a serious omni channel strategy but he laid out big bucks to buy shipt and doubled down on high quality private label brands with where the money is and defied all wisdom and developed a multiple form factor strategy, small, urban, large urban and hith hitherto underserved neighborhoods that others had given up on, college campus, cornell is one of the greatest turnaround artists in the history of american business speaking of that, the s&p's fifth best performer chipotle, cmg. everyone who gave up on this thing after its health scare watched the train leave the station. it is never coming back, people. >> all aboard! >> historically we know it usually takes the american people roughly 18 months to forget about food scares and that's what happened here but chipotle got a major boost after it brought in brian niccol as the new ceo in 2018. oh, the skepticism was thick he used to run taco bell which
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seemed to be the polar opposite of chipotle. in the end he preserved everything good about the company while getting up to speed on throughput, technology. when the customers started coming back they found it as scrum house as ever and far more convenient sometimes they didn't even come. they used the chipotle through lane the chipotle or even better had it delivered throughout the downturn, the amazing ceo never strayed from coming on the show no matter how weak the numbers were. hey, that's another sign of a tremendous company the fact that chipotle's just going back into the double digit same-store sales, tell me there is more good ahead the special performers on 5g and though it was up 91%, i think you ain't seen nothing left. 5g like corvo, lots of profit-taking. qorvo's stock was so hated coming into the year not as hated now number seven, you may have never
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heard of it. it's called copart we hear about the digitization of entire industries but the vehicle salvage business was that digitized nationwide? yes, by copart when you have a natural disaster like hurricane harvey it takes care of the car and truck detritus just wanted to say that word and even though it is a powerful story it is underfollowed by wall street and sells for 32 times earnings and can keep going higher until we start hearing from analysts recommending it then maybe it's time to sell it is like cintas. own special category without much competition i'm betting that makes the stock even more likely to rally in 2020 and if this turns out to be a bad year for hurricane, holy cow, the sky is the limit. eighth best performer, quandary.
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xerox, this is a restructuring play it made a fortune with a joint venture with fuji film now trying to sell itself to hp even as management is presenting itself as the buyer, not the seller quizzical. only two years ago they tried to buy xerox. i don't get the aversion except, of course, xerox stock is up 86.6% last year. i think that may be running out of gas i recommend selling some xerox if you own it. number nine, applied materials semiconductor equipment has been roaring the same reasons as kl and lam. finally number ten, apple. the only dow stock to make it in the top ten of the s&p i know i covered it well i remain a champion like i told you earlier. own it, don't trade it still working. bottom line, when you look at last year's best performers, the s&p 500 you see a lot of companies with phenomenal management that were unfairly written off as losers then came roaring back thanks in part to improving fundamentals driven by
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the ceos i think the ones that are riding powerful secular trends have a lot more room to run i need to speak to buddy in connecticut. buddy! >> caller: hello, jim. first off, happy new year and, jim, i want to wish you many more. >> oh, same to you and your family thank you so much. >> jim, currently, i have a large holding of mastercard and seeing it has had such a long-term run-up and hit all-time highs i want to ask you your opinion, should i hold, reduce or purchase more shares >> you may know we have this club, action alerts plus and i discussed this back and forth email with the group with jeff, mark and zeb and decided, no mastercard will have terrific double digit growth. no, not time to sell if anything on a dip, buy, buy, buy. marsha in kentucky, marsha >> caller: yes, hi, jim.
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>> marsha, how are you >> caller: good, i'm calling from bourbon country in kentucky. >> all right >> caller: and my question is concerning twitter i purchased it right after the ipo in 2014 for $30 a share. so should i hold it or sell it and what stock would be a better investment for this sector if i sell it? >> on "mad money" we believe it doesn't matter where you bought, it matters where it's going and i think that stock can go higher i believe i was talking to my writing partner, matt and looks like it's finally basing that's the stock the business is okay not as great as i'd like it but i think it can be owned, not sold new year same mission last year's best performers are riding powerful trends or have unbelievable ceos or both. watch more "mad money," tensions in iran are escalating what does it mean on the cyberfront boy, the stocks were hot today
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what a lucky break the ceo of crowdstrike what is he thinking? and worried about geopolitical tensions with iran why that may not be the real issue in this and rapid-fire, tonight's edition, the first one of 2020 of "the lightning round. so, skee-daddy, stay with cramer that is amazing. you wanna see something amazing? go to hilton instead of a travel site and you'll experience a whole new range of emotions like... the relaxing feeling of knowing you're getting the best price. these'll work. the utter delight of free wi-fi... . oh man this is the best part. isn't that you? yeah. and the magic power of unlocking your room with your phone. i can read minds too. really? book at hilton.com. if you find a lower rate, we match it and give you 25% off that stay.
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expect better. expect hilton.
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finally safe to buy crowdstrike? the cloud-based cybersecurity company became public in june of last year a couple months before the ipo window slammed shut and went higher priced at 34 then surging all the way to $101 and change at its peak, august 20th but then wall street lost its taste for turbo-charged growth stories and crowdstrike's stock plummeted back to earth. 44 in its october lows now the company reported a terrific quarter with strong guidance but it sold off anyway because the lockup on selling expired. stock down to $50.75 you got to ask, is it time to buy? a closer look with george kurtz
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to learn more about how his company is doing welcome back to "mad money." >> pleasure to be here i'm sorry i missed you when you were in california. >> that won't happen again we'll see you. i have to tell you, i'm excited because your stock has come down but it looks like your revenues are explosive. you're almost -- i can see a clear path to a billion dollars for your company >> well, you know, jim, you said it we had a great quarter i think strong execution we've got great technology and we're solving a really important problem and that is keeping companies secure and stopping breaches so we're excited about the quarter and delighted about the future >> okay, so let's talk about how you can get -- half billion dollar run right now i got to tell you the revenue growth i see is unfortunately n unlimited because because of what happened just last night. is it possible to expect that the retall indication from iran will come in the cyberworld and
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not in the physical world? >> well, it is certainly a possibility in terms of kinetic and cyberretaliation and i think what's important for folks to realize is that this happens all the time behind the scenes obviously we had a geopolitical event yesterday which was large. but these sort of determined adversaries are constantly attacking our corporations and critical infrastructure, 24/7 and most people don't realize the extent of these attacks and the damage that they can actually inflict. >> you use a particular method that has artificial intelligence embedded in the cloud. what is the artificial intelligence say right now about nation states and what they're up to? >> well, we detect many of the nation state attacks and we prevent many of those, and the reason why these artificial intelligence, unlike traditional legacy anti-virus vendors, artificial intelligence doesn't require signatures meaning we
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don't have to ever see an attack before to know that it's actually bad we look at the previous attacks, how they operated and their techniques and able to program that into our falcon platform so we can identify attacks that have never been seen before particularly attacks from nation state adversaries. >> i want people to understand you have an absolutely terrific -- we stop breaches, it's called that you have -- an array of customers who love you and the one i thought was most interesting that i need to know more about, pokemon which my kids still play. why does pokemon need crowdstrike for? >> as companies move to the cloud, it's really important to have great protection in the cloud and that's what we're seeing as a great opportunity for crowdstrike. when you have these organizations who may start on premise and move to the cloud, pokemon has cloud infrastructure as many do, they need the best protection and that's why they chose crowdstrike so like pokemon and many of the others we're focused on delivering value to them and
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keep their system safe and security. >> well, i have to tell you, there are also another element that people i've heard crowdstrike from and that's when president trump named your company on his phone call with the ukraine's president and claimed that your -- let's say, obscuring or hiding national democratic server in ukraine and your company is ukraine based. what do you say to what sounds like maybe just not as informed comment about crowdstrike. >> this is a debunk conspiracy theory a few facts with you first number one is we protect and we have the trust of many of the largest global 2000 companies. number two is we're headquartered in sunnyveil, california and publicly traded on the nasdaq and, number three is none of the founders are ukrainian or have any ties to ukraine. so i just focus on the facts and just tell you that that's a debunk conspiracy theory and a lot of noise and we'll focus on
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protecting customers. >> i'm so glad you did that because i don't want crowdstrike to be known assome company involved in any sort of thing that sounds nefarious. i think you have stopped a lot of nefarious behavior which is terrific i also want you to talk about we spend a huge amount of time describing workday for the hr cloud, surface cloud, salesforce for the crm cloud. you talk about the security cloud. how does that a category definition help our investors -- our people choose your stock >> well, we think we're one of the companies that really will be a cloud pillar and the companies you mentioned whether workday, service now, salesforce are cloud pillars in my view and before crowdstrike there really wasn't a security cloud you had many of the other legacy players, whether it was anti-virus or fire wall players that were out there but no one built basically a cloud platform from the ground up delivering security which is what we focused on and the reason we've
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seen such tremendous growth is because of our modular approach. once you have our single agent architecture, you have the ability to add new modules without adding any new agents and we store all that data and create new workflows and use a.i. to solve really hard problems people want security delivered from the cloud, not only because it's better and has better efficacy but also consolidates agents no one wants more of these agents on their end points or their workloads than they need to and we found a way to be able to consolidate that and to the only protect on premise technologies and servers but also those cloud workloads which are exploding with the large cloud providers. so we're excited about what we're doing. >> well, i'm glad you said it's exploding because i did want to ask whether there is room for everybody. you know carbon black had a merger with a company we like very much. are things getting crowded are -- is there still enough business to go around or is it share take when you have something like that?
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>> well, we see it as a natural evolution. either, you know, you have to adapt or you die and i think a lot of companies get sold off because they needed to in our opinion we've created the cloud platform and i think our success has really forced a lot of companies to rethink what they were going to do in the future in our standpoint we haven't seen a better competitive environment. we know the cloud is the future and we focus mers like our technology, love our technology and we're solving really hard problems for them and i think the cloud workloads represent really an amazing opportunity for crowdstrike to be able to protect those workloads as they continue to proliferate. >> i should mention as part of this $500 million run rate that the annual recurring revenue here is extraordinary and also includes amazon web services which is very important. george, i want to thank you so much for coming on what a great level to get long crowdstrike. great to see you, sir. >> great thank you. >> that is george kurtz, co-founder and ceo of crowdstrike.
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we told you to wait until it goes down. we don't suddenly back away when it goes down this is ripe stick with cramer. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate... to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.
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>> announcer: "lightning round" is sponsored by td ameritrade. it is time it's time for "the lightning round. >> buy, buy, buy >> sell, sell, sell. [ buzzer ] >> then "the lightning round" is over are you ready, skee-daddy? time for "the lightning round. i'm going to start with joe in india indiana. joe. >> caller: i've been listening to you for around 12 years >> thank you. >> caller: my stock is shake shack. >> i think they had a really good quarter and the shack is back and i think it's okay to buy although i have to tell you wendy's is the cheapest burger company. tim. >> calle speak to me tim. >> caller: hi, jim. >> what's up >> caller: how are you doing tim from the wooden spoon from the beautiful florida keys. >> i love the keys. >> caller: with the disappearance of double digit
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income from cds, reits seem to be in favor again. your thoughts on -- >> i don't like that particular reit >> caller: -- agnc. >> it does yield 10% but i can't recommend something which don't know what they own dominic in california. dominic. go ahead, dominic. >> caller: i'm dominic's grandfather. he has a question for you. >> boo-yah, question i'm calling about a company with a great ceo and great leadership and even rumors of a takeover like companies like goldman sachs. do you think u.s. bancorp would be a good investment for me for the future >> i do. let's be careful in terms of the takeover they got smaller than usb. otherwise, 14-year-olds you are rocking and i think that's a good one how about this audience? as we start 2020, it's amazing to joyce in new york joyce.
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>> caller: hi, jim how are you? happy new year. >> oh, same to you, joyce. how can i help >> caller: yes, i'm really looking for your blessing to buy lk tomorrow, luckin coffee. >> i don't deserve your question i don't deserve your trust on me on luckin coffee not that there was anything -- i said it peaked i was dead wrong i can't tell you, you know what, i'll give you the best advice on luckin i did say starbucks and starbucks has been a great stock too. i got to be careful. i didn't understand the short squeeze that would become of luckin and recommending alibaba as the only stock in china we like on the show lori from pennsylvania lori. >> caller: hi, jim this is lori from eagles nation. >> oh, my. we need you. home dog let's go >> caller: we're going to -- you
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know what, we're going to wing i call in every holiday and you always -- there's always something going on i mean, we have the best practiced team they're going to win it for us. >> got you i like it. we got guys who are -- who are playing for dinner what's up? >> caller: they're hungry. they're hungry our eagles are going to win. >> definitely. >> caller: actually i also wanted to say happy and healthy new year to you. >> same. >> caller: i'm looking forward to your action alert conference call i hope i'm not jumping the gun here but i'm kind of curious what you have to say about viacom >> well, i'm glad you mentioned it that's going to be a focus of the call why? it's the cheapest and seven times earnings viacom is ridiculous it's so low and that, ladies and gentlemen, is the conclusion of the first "lightning round" of 2020. "lightning round" of 2020. [ buzzer ]ee?
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>> announcer: "the lightning round" is sponsored by td ameritrade nning service, and a trade desk full of experts, available to answer your toughest questions. and i see it with zero commissions on online trades. i like what you're seeing. it's beautiful, isn't it? yeah. td ameritrade now offers zero commissions on online trades. ♪ doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.
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the headlines this morning were stark "the wall street journal," trump's strike kills a top iranian. "the new york times," strike kills commander of iranian force so the market reacts swiftly i see the futures down 47 ticks. going to be a rough day. sure enough it was ugly at the open as anchors struggled to
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make sense of who major general soleimani was. what is next after our government has taken him out these were all top of mind one after another our guests speculated oil was headed for 70, maybe $80 once the mighty iranian regime retaliated. some made it sound like they're more powerful than the u.s oil picked up just a bit as my friend rusty told us, don't look now but the most important indicator of where it is going, where you can buy billions and billions of dollars worth of crude, it barely budged up 43 cents, five years, nothing no wonder the stocks like ex-shonn and chevron finished down for today down iran can shut down the strait of hormuz and could blow up more saudi refineries like they did in september with the drones yet the market doesn't seem to care. why not? over the past 15 years we've discovered massive quantities of
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oil right here in these united states the moment the price of crude goes up our producers sell oil futures to raise capital because they have more oil than they know what to do with and need ready cash to make sure they can keep drilling with less and less money. they're still drilling many of these don't have enough in the till. others simply trying to live within their means in short if iran takes out -- takes out capacity over there our producers will easily make up the difference. the world has changed since the days when the middle east controlled the price of oil. the marginal producer is now the united states. that's why crude is so much trouble getting any kind of lift and really once the economic impact of any retaliation, even though, of course, the airline stocks will go down when it happens. does that mean we should use this iranian reeled weakness to buy everything in the market i think we're coming into a more complex period, earnings and makes sense to have cash when the big players come back next week and see the market isn't down enough if iran retaliate, hard to figure out what the next move will be
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one thing for certain i didn't hear that the assassination had to take place to ensure iraq would rule itself rather than being a puppet state that commits a lot of mayhem. i don't know if it's possible. sectarian reasons by iraq and iran have gotten real buddy-buddy but what i think is known. going forward you need to be wary of analysts eager to demonstrate big wins sure a couple of price target bumps for apple one-year anniversary after its preannouncement and got an upgrade of humana from goldman sachs along with two cautionary reports from walgreens and should be lower. these are all small time next week watch out for analysts and strategists at last back from vacation that try to convince you the sky is falling because of iran. i don't think there is a whole lot that iran can do to hurt our stock market long term although if they decide to ratchet up their support for terrorism that could lead to some real tragedies. i think the oil stocks by the
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way are already overdone now, wait, if you insist on buying oil i like bp, my travel trust owns it and rebound drilling worldwide you could go with pioneer national resources for speculation if you bet the price of oil will zoom higher and otherwise i'd much rather play the iranian situation with the cybersecurity stocks which are not at all overdone and sell the conventional defense the hardware contractors into this giant leap into overvaluation. stick with cramer. our trashy back ribs? oh, that sounds great... everything is locally harvested, farm to dumpster to table. uhhh, what do you... what else do you got? (stammering) w-we have a melon rind stew. comes with a pork and bean reduction. yeah, we're going to just do a lap and we'll come back. okay. well, we'll be here. man! why isn't this working? my mouth is watering. i think that's just your rabies flaring up. with geico, the savings keep on going. just like this sequel. 15 minutes could save you 15% or more
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on car insurance. we got gristle pot pies! ...it's almost like a mywchallenge everyday to seeey. how well i can eat and still enjoy myself all day long. i wake up every morning to see how much weight i've lost and how much better i look. myww join for free + lose 10 lbs. on us. if you listen to the political it sounds like we have a failed society. but nothing could be further from the truth. americans are compassionate and hardworking. we aren't failing. our politicians are failing.
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that's why i'm running for president. to end the corporate takeover of the government. and give more power to the american people. that's how we'll win healthcare, fair wages, and clean air and water as a right. i'm tom steyer and i approve this message. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. i don't know about you but i really like that crowdstrike it is the pick of the litter right now. it's good and it has amazing things i always say there's a bull market somewhere i promise to find it right here for you on "mad money. i'm jim cramer i will see you monday.
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>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ my name is stephan aarstol. i'm 39 years old, and i live in san diego, california. i've always been what you might call a-a geek, you know, i got good grades, i was on math team. i've kind of always played things by the book. coming out of graduate school with an m.b.a., uh, you're sort of groomed to n towards really corporate jobs, management consulting type jobs,
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and i-i did it,

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